Regular Session - April 10, 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                    April 10, 2006

        11                       3:02 p.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       Sunday, April 9, the Senate met pursuant to

        18       adjournment.  The Journal of Saturday,

        19       April 8, was read and approved.  On motion,

        20       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 Seward.

         8                  SENATOR SEWARD:    Yes, Madam

         9       President.  I move to amend Senate Bill Number

        10       6766B by striking out the amendments made on

        11       March 15 and restoring it to its previous

        12       print number, 6766A.

        13                  THE PRESIDENT:    So ordered,

        14       Senator.

        15                  SENATOR SEWARD:    Thank you.

        16                  THE PRESIDENT:    Senator Spano.

        17                  SENATOR SPANO:    Madam President,

        18       on page 22 I offer the following amendments to

        19       Calendar 335, Senate Print Number 2271A, and

        20       ask that said bill retain its place on the

        21       Third Reading Calendar.

        22                  THE PRESIDENT:    The amendments

        23       are received, and the bill will retain its

        24       place on the Third Reading Calendar.

        25                  Senator Skelos.


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         1                  SENATOR SKELOS:    Madam President,

         2       there are two resolutions at the desk, 4506

         3       and 4507, by Senator Flanagan.  Could we have

         4       the titles read and move for their immediate

         5       adoption.

         6                  THE PRESIDENT:    The Secretary

         7       will read.

         8                  THE SECRETARY:    By Senator

         9       Flanagan, Legislative Resolution Number 4506,

        10       commending Abby Cassella-Graeser upon the

        11       occasion of receiving the State University of

        12       New York Chancellor's Award for Student

        13       Excellence.

        14                  And by Senator Flanagan,

        15       Legislative Resolution Number 4507, commending

        16       William Lahti upon the occasion of receiving

        17       the State University of New York Chancellor's

        18       Award for Student Excellence.

        19                  THE PRESIDENT:    All in favor of

        20       the resolutions please signify by saying aye.

        21                  (Response of "Aye.")

        22                  THE PRESIDENT:    Opposed, nay.

        23                  (No response.)

        24                  THE PRESIDENT:    The resolutions

        25       are adopted.


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         1                  Senator Skelos.

         2                  SENATOR SKELOS:    Madam President,

         3       if we could go to the noncontroversial reading

         4       of the calendar.

         5                  THE PRESIDENT:    The Secretary

         6       will read.

         7                  THE SECRETARY:    Calendar Number

         8       188, by Senator Larkin, Senate Print 6259, an

         9       act to amend the Alcoholic Beverage Control

        10       Law, in relation to sale.

        11                  THE PRESIDENT:    Read the last

        12       section.

        13                  THE SECRETARY:    Section 2.  This

        14       act shall take effect on the 180th day.

        15                  THE PRESIDENT:    Call the roll.

        16                  (The Secretary called the roll.)

        17                  THE PRESIDENT:    Senator Duane, to

        18       explain your vote.

        19                  SENATOR DUANE:    Thank you, Madam

        20       President.  To explain my vote.

        21                  I'll be voting no for this bill.

        22       First, I don't really understand this bill.  I

        23       understand that currently the only soju that

        24       can be sold in restaurants is soju imported

        25       from Korea, but I don't know who makes soju in


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         1       New York and how much of an impact this will

         2       have.  So I'd like to take a closer look at

         3       this.

         4                  Secondly, it of course makes it

         5       easier for people to consume alcohol.  And

         6       while this may not be a problem for most

         7       New Yorkers, for a large number of New Yorkers

         8       I think it's safe to -- it's clear that many

         9       New Yorkers have an addiction to alcohol.  And

        10       since we haven't passed Timothy's Law in this

        11       house, a lot of New Yorkers are going to be

        12       denied the alcohol and drug treatment they

        13       desperately need, as well as other kinds of

        14       mental health treatment.  And so not passing

        15       Timothy's Law hurts New York's families.

        16                  So in an effort to get this bill

        17       into law, I want to point out to everyone that

        18       this is the middle of April and we're going

        19       away on break, and then we only have two

        20       months after that.  And we need to get this

        21       bill done.  The mental health of New Yorkers

        22       is obviously too important to ignore.

        23                  So I vote no on the bill, but I'm

        24       looking forward to voting yes on Timothy's Law

        25       this session.


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         1                  Thank you, Madam President.

         2                  THE PRESIDENT:    You will be

         3       recorded as voting in the negative, Senator.

         4                  The Secretary will announce the

         5       results.

         6                  THE SECRETARY:    Those recorded in

         7       the negative on Calendar Number 188 are

         8       Senators Duane and Padavan.

         9                  Ayes, 43.  Nays, 2.

        10                  THE PRESIDENT:    The bill is

        11       passed.

        12                  THE SECRETARY:    Calendar Number

        13       345, by Senator Nozzolio, Senate Print 1324,

        14       an act to amend the Correction Law, in

        15       relation to requiring.

        16                  SENATOR SCHNEIDERMAN:    Lay it

        17       aside.

        18                  THE PRESIDENT:    The bill is laid

        19       aside.

        20                  THE SECRETARY:    Calendar Number

        21       411, by Senator Little, Senate Print 3376D, an

        22       act --

        23                  SENATOR SCHNEIDERMAN:    Lay it

        24       aside.

        25                  THE PRESIDENT:    The bill is laid


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         1       aside.

         2                  THE SECRETARY:    Calendar Number

         3       586, by Senator Fuschillo, Senate Print 1951,

         4       an act to amend the Education Law, in relation

         5       to the transportation of children.

         6                  THE PRESIDENT:    Read the last

         7       section.

         8                  THE SECRETARY:    Section 2.  This

         9       act shall take effect on the first of July.

        10                  THE PRESIDENT:    Call the roll.

        11                  (The Secretary called the roll.)

        12                  THE SECRETARY:    Ayes, 45.

        13                  THE PRESIDENT:    The bill is

        14       passed.

        15                  THE SECRETARY:    Calendar Number

        16       588, by Senator Saland, Senate Print 5416, an

        17       act to amend the Education Law, in relation to

        18       the streamlining of planning.

        19                  THE PRESIDENT:    Read the last

        20       section.

        21                  THE SECRETARY:    Section 29.  This

        22       act shall take effect immediately.

        23                  THE PRESIDENT:    Call the roll.

        24                  (The Secretary called the roll.)

        25                  THE SECRETARY:    Ayes, 45.


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         1                  THE PRESIDENT:    The bill is

         2       passed.

         3                  THE SECRETARY:    Calendar Number

         4       594, by Senator Spano, Senate Print 5208, an

         5       act to amend the Tax Law, the Administrative

         6       Code of the City of New York, and the Codes

         7       and Ordinances of the City of Yonkers.

         8                  THE PRESIDENT:    Read the last

         9       section.

        10                  THE SECRETARY:    Section 13.  This

        11       act shall take effect upon enactment.

        12                  THE PRESIDENT:    Call the roll.

        13                  (The Secretary called the roll.)

        14                  THE SECRETARY:    Ayes, 45.

        15                  THE PRESIDENT:    The bill is

        16       passed.

        17                  THE SECRETARY:    Calendar Number

        18       598, by Senator Nozzolio, Senate Print 1973C,

        19       an act to amend the Energy Law, in relation to

        20       implementing.

        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, 48.

         3                  THE PRESIDENT:    The bill is

         4       passed.

         5                  THE SECRETARY:    Calendar Number

         6       619, by Senator Alesi, Senate Print 970A, an

         7       act to amend the Correction Law, in relation

         8       to the penalty for a sex offender.

         9                  THE PRESIDENT:    Read the last

        10       section.

        11                  THE SECRETARY:    Section 2.  This

        12       act shall take effect immediately.

        13                  THE PRESIDENT:    Call the roll.

        14                  (The Secretary called the roll.)

        15                  THE SECRETARY:    Ayes, 47.  Nays,

        16       1.  Senator Montgomery recorded in the

        17       negative.

        18                  THE PRESIDENT:    The bill is

        19       passed.

        20                  Senator Skelos.

        21                  SENATOR SKELOS:    Yes.  If you

        22       would recognize Rabbi Butman, please.

        23                  THE PRESIDENT:    Yes, I will.

        24       Thank you, Senator Skelos.

        25                  With us this afternoon now to give


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         1       the invocation is Rabbi Shmuel Butman, from

         2       Lubavitch Youth Organization in Brooklyn,

         3       New York.

         4                  RABBI BUTMAN:    Our Heavenly

         5       Father, we have gathered here today as we have

         6       once every year, and this year in honor of the

         7       104th birthday of the Lubavitcher Rebbe,

         8       Rabbi Menachem M. Schneerson.

         9                  The Rebbe is the one who said that

        10       every person, regardless of race, religion,

        11       color or creed, has a special spark and it is

        12       our obligation to ignite that spark.  And

        13       therefore the Rebbe encouraged all people,

        14       regardless of affiliation, to a greater

        15       plateau of dedication and service.

        16                  The Rebbe also said that this is

        17       the last generation of exile and the first

        18       generation of redemption.  And we can do -- we

        19       can bring the redemption even closer by doing

        20       more deeds of goodness and kindness.

        21                  The Rebbe also encouraged the seven

        22       Noahide Laws, which are the seven universal

        23       laws that govern honest and decent societies.

        24       Each and every single one of you was chosen by

        25       Almighty God and by divine providence to


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         1       represent goodness and kindness, morality and

         2       decency in the state of New York.  And you are

         3       the ones who are the custodians of the laws of

         4       morality, of goodness and kindness and decency

         5       in the state of New York.  And you have a

         6       special -- you have a special mission that

         7       Almighty God gave you.

         8                  And I want you to know that every

         9       Saturday in our synagogues we pray for you.

        10       We say the [Hebrew], that all those who serve

        11       the public faithfully, Almighty God should

        12       send them a special blessing.  We ask for a

        13       blessing for everyone, but then for a

        14       particular blessing for all of you who serve

        15       the public faithfully.

        16                  When I opened the Senate the first

        17       time, the Rebbe said to me that I should bring

        18       a pushkeh and we should give charity while

        19       we're doing the prayer, so everybody should

        20       see what we are doing and they should know the

        21       purpose of funds and of money.  So therefore I

        22       will offer a dollar, where it says "in God we

        23       trust," in this pushkeh.

        24                  I don't want you to think that this

        25       is a fundraising campaign.  Nevertheless,


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         1       anyone who wants to do an act of goodness and

         2       kind is very, very welcome to join me.

         3                  So in the -- in the merit of the

         4       Rebbe, we ask You, Almighty God, to bestow

         5       Your blessing upon all the members of this

         6       great assemblage, the Senate of the State of

         7       New York, to their families.  Grant them,

         8       Almighty God, health, happiness, and

         9       fulfillment in all of their endeavors.

        10                  And let us together say amen.

        11                  THE PRESIDENT:    Senator Skelos.

        12                  SENATOR SKELOS:    Madam President,

        13       if we could go to the controversial reading of

        14       the calendar.

        15                  THE PRESIDENT:    The Secretary

        16       will read first ring the bell.  The members

        17       should take their seats so we can begin the

        18       controversial calendar.

        19                  Senator Skelos.

        20                  SENATOR SKELOS:    If we could go

        21       to the controversial reading of the calendar.

        22                  THE PRESIDENT:    The Secretary

        23       will read.

        24                  THE SECRETARY:    Calendar Number

        25       345, by Senator Nozzolio, Senate Print 1324,


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         1       an act to amend the Correction Law.

         2                  SENATOR SCHNEIDERMAN:

         3       Explanation.

         4                  THE PRESIDENT:    Senator Nozzolio,

         5       an explanation has been requested.

         6                  SENATOR NOZZOLIO:    Thank you,

         7       Madam President.

         8                  Madam President and my colleagues,

         9       the measure before us was originally passed by

        10       this body in 1997 and has been passed in each

        11       year subsequently to that year.  The purpose

        12       of the measure is to require inmates in state

        13       correctional facilities to pay a modest $7

        14       copayment for medical treatment.  This makes

        15       inmates partially responsible in some way for

        16       their medical treatment.

        17                  But that responsibility is in no

        18       way going to, under this legislation, deny any

        19       inmate medical treatment for a lack of ability

        20       to pay.  Emergency care would not be denied

        21       under this legislation.  Medical care for

        22       chronic conditions would not be denied by this

        23       legislation.

        24                  The requirement for a medical

        25       copayment is simply a way that we can say to


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         1       the citizens of the state that yes, inmates

         2       should pay a small portion of the cost of

         3       their incarceration.

         4                  And as some of you have

         5       consistently shaken your heads against this

         6       measure, I say to you this, that you have to

         7       tell me why -- and, more importantly, the

         8       taxpayers of this state -- why the states of

         9       California, Connecticut, Ohio, Pennsylvania,

        10       and New Jersey can require a copayment similar

        11       if not identical to this copayment and have

        12       any system of healthcare that's any less

        13       caring and supportive of inmates' needs than

        14       our healthcare system.

        15                  Frankly, it's an argument I believe

        16       that has been made against this measure that

        17       is totally indefensible, and that one need

        18       look only to those states and, if those states

        19       in and of themselves don't change your minds,

        20       certainly look to the federal prison system,

        21       which has also an identical copayment for

        22       healthcare as this one measure before us

        23       requires.

        24                  THE PRESIDENT:    Senator Serrano.

        25                  SENATOR SERRANO:    Madam


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         1       President, I have an amendment at the desk.

         2       I'm asking that the reading of the amendment

         3       be waived and that I be heard on the

         4       amendment.

         5                  THE PRESIDENT:    The reading is

         6       waived, and you may proceed on the amendment.

         7                  SENATOR SERRANO:    Madam

         8       President, my colleagues, this amendment to

         9       Calendar Number 345 would replace the $7

        10       inmate medical copay with a copay of 50 cents.

        11       It would also require the Department of

        12       Correctional Services to facilitate each

        13       inmate's medical application at least 90 days

        14       before the inmate's release, which would begin

        15       the process of enrollment before release so

        16       that there are no gaps in service for those

        17       who need medical and mental health services.

        18                  Now, I know that this bill precedes

        19       me coming to the Senate.  It's actually been

        20       coming before this house since 1997.  And

        21       while I firmly believe that inmates, based on

        22       the fact that they're not making any real

        23       money, should not be held responsible for any

        24       copays, I see this amendment as a sign of,

        25       hopefully, a compromise, to move this bill


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         1       along once and for all in the direction that

         2       it should be going.

         3                  It's really, I think, not the right

         4       way to go to require inmates to pay $7.  That

         5       may seem reasonable to the general public, but

         6       for those making 17 cents an hour, which is

         7       what the average inmate is making, that would

         8       be more than a week's pay.

         9                  So one of the greatest challenges

        10       for newly released inmates is avoiding

        11       returning to drug use and to incarceration.

        12       And I believe that the other part of this

        13       amendment, which would begin the enrollment

        14       process ahead of time, would also alleviate in

        15       that area.

        16                  So I hope that we can move this

        17       amendment along, and I ask my colleagues to

        18       support it.  And hopefully we can move this

        19       bill along here in this house with a much more

        20       reasonable 50-cent copay instead of $7, which

        21       I think is just unrealistic, given that

        22       inmates make 17 cents an hour.

        23                  Thank you.

        24                  THE PRESIDENT:    All those

        25       Senators in agreement please signify by


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         1       raising your hands.

         2                  THE SECRETARY:    Those recorded in

         3       agreement are Senators Breslin, Coppola,

         4       Dilan, Gonzalez, L. Krueger, Oppenheimer,

         5       Parker, Sabini, Savino, Schneiderman, Serrano,

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

         7                  THE PRESIDENT:    The amendment is

         8       not agreed to.

         9                  Senator Krueger.

        10                  SENATOR LIZ KRUEGER:    Madam

        11       President, on the bill.

        12                  THE PRESIDENT:    You may proceed

        13       on the bill.

        14                  SENATOR LIZ KRUEGER:    Thank you.

        15                  Well, I'm sorry that our amendment

        16       did not carry, because I think that Senator

        17       Serrano, through his amendment, was attempting

        18       to highlight what the real problems are with

        19       this legislation.

        20                  We've had this debate several years

        21       in a row.  Senator Nozzolio referenced that

        22       debate.  And while it is true this bill has

        23       passed this house, it hasn't gone anywhere in

        24       the Assembly, and actually each year there are

        25       more people who vote against this bill when we


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         1       have this debate.

         2                  So again, I'd like to just

         3       highlight some of the arguments of why it is

         4       necessary that when we imprison people we

         5       ensure they have access to healthcare.

         6       Because it's not just a humane question of

         7       ensuring that prisoners in the New York State

         8       correctional system have access to healthcare

         9       for themselves, it is a public health issue to

        10       ensure that an exceptionally ill population --

        11       because in fact the prisoner population of

        12       New York State is significantly more sick than

        13       the overall population of New York State.  We

        14       have disproportionately high rates of people

        15       who are chronically ill, who are HIV positive,

        16       have AIDS, have hepatitis C, have

        17       tuberculosis, have illnesses that not only put

        18       themselves at risk but put the overall prison

        19       population at risk, put the staff at prisons

        20       at risk.

        21                  And of course as people move out of

        22       prisons into their communities, if in fact

        23       they have long-term illnesses that may in fact

        24       be contagious that are not treated, they put

        25       the overall broader community at risk.  If


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         1       they are not treated appropriately through

         2       healthcare when they are in prison and they

         3       end up leaving the prison system far sicker

         4       than they would have been without good

         5       healthcare, they in fact then become a greater

         6       burden on the public when they leave the

         7       prison system.

         8                  So in fact I would argue that the

         9       prison population is the last population you

        10       want to decrease access to healthcare for,

        11       because it is a price then paid not just by

        12       the prisoners themselves but by the staff in

        13       prisons and by the greater community overall,

        14       a cost not just --

        15                  SENATOR NOZZOLIO:    Madam

        16       President.

        17                  THE PRESIDENT:    Senator Nozzolio.

        18                  SENATOR NOZZOLIO:    Will Senator

        19       Krueger yield?

        20                  THE PRESIDENT:    Senator Krueger,

        21       will you yield?

        22                  SENATOR LIZ KRUEGER:    Yes, I

        23       will, Madam President.

        24                  THE PRESIDENT:    You may proceed,

        25       Senator.


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         1                  SENATOR NOZZOLIO:    Thank you,

         2       Madam President.

         3                  Madam President, the question I

         4       have, does Senator Krueger have any evidence

         5       that the healthcare system for prison inmates

         6       in New York is deficient when compared to the

         7       states of California, Connecticut, New Jersey

         8       or the federal system?

         9                  SENATOR LIZ KRUEGER:    Thank you,

        10       Madam President.

        11                  I appreciate the question, Senator.

        12       Yes, I do.  In fact, there have been a series

        13       of reports done, newspaper proceedings, and

        14       even lawsuits arguing that in fact the

        15       healthcare system in our jails in New York

        16       State can, to quote The New York Times, be a

        17       death sentence:  "Private Healthcare in Jails

        18       can be a Death Sentence," February 27, 2005,

        19       The New York Times.  "A year-long examination

        20       of the prison health system by the Times

        21       reveals repeated instances of medical care

        22       that has been flawed and sometimes lethal."

        23                  SENATOR NOZZOLIO:    Madam

        24       President.

        25                  THE PRESIDENT:    Senator Nozzolio.


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         1                  SENATOR NOZZOLIO:    Will Senator

         2       Krueger yield to a question?

         3                  THE PRESIDENT:    Senator Krueger,

         4       will you yield for a question?

         5                  SENATOR LIZ KRUEGER:    I'd like to

         6       answer the first question on the floor before

         7       I yield, Madam President.  Might I continue?

         8                  THE PRESIDENT:    You may complete

         9       your answer, Senator.

        10                  SENATOR LIZ KRUEGER:    Thank you.

        11                  So this series, which I'm happy to

        12       share with all of my colleagues, actually was

        13       a 15-page series in The New York Times.

        14                  There was also a study done, a

        15       background briefing paper on healthcare in

        16       California prisons, a comparison.  A report on

        17       organizing principles of care and the

        18       importance of ensuring access to healthcare in

        19       our prison system.

        20                  So there are a series of reports

        21       that have been done that in fact argue that

        22       New York State's prison healthcare system

        23       actually is inferior to several other states,

        24       including California's.  And again, I think

        25       most tellingly, the series in The New York 


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         1       Times just a year ago highlights the answer to

         2       the first question by the Senator.

         3                  I'm happy to take an additional

         4       question.

         5                  THE PRESIDENT:    Senator Nozzolio,

         6       you have another question?

         7                  SENATOR NOZZOLIO:    Senator

         8       Krueger, I heard with some interest your

         9       bibliography, yet you didn't answer my

        10       question.

        11                  My question was whether or not if

        12       our system is inferior -- I think you answered

        13       the opposite of my question.  I asked was the

        14       states of California, New Jersey, Connecticut,

        15       or the federal system, who are requiring a

        16       copay, in some way inferior to our healthcare

        17       system.  You're saying that it sounds like it

        18       is -- like our system, which does not require

        19       a copay, is in fact inferior to those states,

        20       by your studies.

        21                  So if those states which have a

        22       copayment -- my question is this.  If those

        23       states which already have copayments required

        24       are superior to our healthcare system, then

        25       how could you be opposed to a copayment when


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         1       in fact we are not requiring a copayment now,

         2       those other states and the federal system are

         3       requiring a copayment now?

         4                  You are stating -- somehow listing

         5       studies that show our system is inferior to

         6       those states.  Well, if our system is inferior

         7       to those states, Senator -- we are not having

         8       a copayment, they do have a copayment -- I

         9       think you're making the case that says a

        10       copayment is irrelevant to whether a state's

        11       healthcare system is in fact inferior to

        12       another state's.

        13                  SENATOR LIZ KRUEGER:    I'm sorry,

        14       Madam President, is that a question?

        15                  THE PRESIDENT:    That is a

        16       question, Senator Krueger.

        17                  SENATOR LIZ KRUEGER:    All right.

        18       Well, then, I'll try to continue as best I can

        19       in response.

        20                  First off, my point in response to

        21       your first question is that yes, our

        22       healthcare system in our prisons is not a good

        23       healthcare system and we do need to improve

        24       it.

        25                  If your question is will copays in


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         1       some way improve it, since my understanding is

         2       the copays would go into the General Fund, not

         3       into the healthcare system in our prisons,

         4       it's not at all clear how payment through

         5       copayments would improve the healthcare system

         6       in our prisons, although I do believe we need

         7       to improve the healthcare system in our

         8       prisons.

         9                  As regards to California,

        10       conceivably California's system is also not a

        11       perfect system.  The report I referenced

        12       actually is a comparative study of many

        13       reports.  And I would like the time to

        14       actually review it with you, if you like,

        15       after session, as to what we learned from it.

        16                  The arguments on the federal system

        17       I think to some degree are a separate issue,

        18       because of course it's a very different prison

        19       population in the federal prison system than

        20       in New York.

        21                  To continue with my points about

        22       why I think this bill is not in the best

        23       interests of the people of New York State is

        24       does it answer that question of the Senator,

        25       will copay payments improve the quality of


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         1       healthcare in our prison system.  And I don't

         2       believe there's a basis to argue that it will,

         3       particularly since the money won't go into our

         4       prison system.

         5                  I would also argue that we know

         6       that copays decrease access, particularly when

         7       the cost of the copay is so disproportionately

         8       high in comparison to the available income.

         9                  And, Senator --

        10                  SENATOR NOZZOLIO:    Madam

        11       President.

        12                  THE PRESIDENT:    Senator Nozzolio.

        13                  SENATOR LIZ KRUEGER:    If I could

        14       finish my thought.

        15                  SENATOR NOZZOLIO:    Madam

        16       President, will Senator Krueger yield?

        17                  THE PRESIDENT:    Senator Krueger,

        18       will you yield for another question?

        19                  SENATOR LIZ KRUEGER:    I would

        20       like to finish my thought, and then I'll be

        21       happy to yield, Madam President.

        22                  THE PRESIDENT:    Please finish

        23       your thought.

        24                  SENATOR LIZ KRUEGER:    Thank you.

        25                  That again, as Senator --


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         1                  SENATOR NOZZOLIO:    Point of

         2       order, Madam President.  Is Senator Krueger

         3       refusing to yield?

         4                  THE PRESIDENT:    Senator, are you

         5       refusing to yield?

         6                  SENATOR LIZ KRUEGER:    No, I asked

         7       to continue my thought on my statement on the

         8       bill before I accepted another question.

         9                  THE PRESIDENT:    I understood you

        10       to say you do yield.  You'd like to finish

        11       your answer, and then you will yield.

        12                  SENATOR LIZ KRUEGER:    Thank you,

        13       Madam President, yes.

        14                  THE PRESIDENT:    Senator Nozzolio.

        15                  SENATOR NOZZOLIO:    Thank you,

        16       Madam President.

        17                  THE PRESIDENT:    Senator Krueger,

        18       please finish your answer.

        19                  SENATOR LIZ KRUEGER:    Thank you,

        20       Madam President.  Thank you so much.

        21                  So to continue my thought, my

        22       concern is that with Senator Nozzolio's bill,

        23       with the price of the copay being so

        24       excessively high in comparison to the actual

        25       possible income stream of prisoners -- and I


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         1       believe that my colleague Senator Serrano's

         2       amendment that just failed to pass highlighted

         3       that the average pay of a person in our prison

         4       system works out to an average of 17 cents an

         5       hour -- that the proposed cost of $7 of a

         6       copay to see a doctor will result in fewer

         7       prisoners having access to our healthcare

         8       system.

         9                  And as we know, when you are ill

        10       and you cannot get access to healthcare, you

        11       are more likely to continue to be ill, to

        12       become more ill, and to have increased costs

        13       associated with when you are finally seen.  We

        14       all know that it is far more expensive to be

        15       seen for emergency care than for ongoing care.

        16                  And we all know that there are

        17       long-term risks to a prison population, both

        18       the prisoners and the staff that work with

        19       them, to have people with illnesses that are

        20       easily transferable -- particularly in a

        21       closed population, as they are in prison --

        22       not having access to the appropriate

        23       medications and treatments to decrease their

        24       illnesses and to decrease the spread of their

        25       illnesses.


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         1                  I'd now be happy to respond to

         2       Senator Nozzolio's additional question.

         3                  THE PRESIDENT:    Senator Nozzolio,

         4       you may proceed with a question.  If you still

         5       have one.

         6                  SENATOR NOZZOLIO:    Thank you,

         7       Madam President.

         8                  Senator Krueger's comments are all

         9       well and good, except she continues to fail to

        10       make the case that there is any causal

        11       connection between a state or the federal

        12       system requiring a copayment and the provision

        13       of medical services.

        14                  I think that, Senator, you

        15       certainly show compassion and concern -- at

        16       least you're talking about -- your interest is

        17       certainly an interest of having high-quality

        18       care for inmate medical services.  And on that

        19       score, we're certainly sharing your objective.

        20                  However, you continually spout

        21       study after study, newspaper report after

        22       newspaper report chastising the services

        23       provided in New York State, yet you fail to

        24       say how the states that require copayments

        25       already have any diminution of medical care.


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         1       And that, I think, is the essence of this

         2       debate.

         3                  The debate is to focus on the

         4       provision of services and how we should spread

         5       the cost of incarceration to those who are

         6       receiving benefits while incarcerated.  There

         7       is no causal connection that any of these

         8       studies have made or certainly that you have

         9       made on how copayments in any way, shape or

        10       form diminish the provision of services for

        11       inmates.

        12                  SENATOR LIZ KRUEGER:    Thank you,

        13       Madam President.  I would like to answer.

        14                  I think to some degree the Senator

        15       is asking me to prove a negative:  if we had

        16       copayments, would that decrease the quality of

        17       care in the New York State prison system.  And

        18       I suppose the dilemma is, since we are already

        19       starting with a very bad model of quality of

        20       care in the New York State prison systems,

        21       would it continue to harm it further if you

        22       made it harder for prisoners to get access to

        23       this healthcare system.

        24                  I hope, even though the Senator and

        25       I disagree on his bill, that where we do agree


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         1       is we want a better quality of care in our

         2       prison system, in our healthcare system, and

         3       that that really is the assignment in front of

         4       us.

         5                  That in the State of New York,

         6       where we are legislators overseeing the

         7       Department of Corrections and the prison

         8       system, that it is not in the best interests

         9       of the public or the prison system to have a

        10       bad model of delivery of healthcare.  That

        11       unfortunately, based on the evidence before

        12       us, we do have a bad quality of healthcare,

        13       that we should do better.  And where we

        14       disagree is whether copays will get us there.

        15                  I argue copays will not get us to

        16       where we need to go, because there is data

        17       that shows that copays for very low income

        18       people ends up decreasing their ability to

        19       access healthcare.

        20                  I respect that the Senator and I

        21       may disagree on whether or not copays will

        22       decrease access to healthcare for prisoners.

        23       But I assume we do agree that a problem we

        24       face in our prison system is that the quality

        25       of our healthcare is not at the standards it


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         1       ought to be and should be.  And I hope that

         2       that's where we can move forward in agreement

         3       in the future in both houses, and with the

         4       Governor and with the agency, that it is not

         5       acceptable to have a healthcare system where

         6       prisoners currently have such desperate

         7       healthcare needs that are not addressed.

         8                  And no, I do not believe that

         9       copays will increase the chances of improving

        10       the system.

        11                  Thank you, Madam President.

        12                  THE PRESIDENT:    Senator Nozzolio,

        13       on the bill.

        14                  SENATOR NOZZOLIO:    Thank you,

        15       Madam President.  On the bill.

        16                  My colleagues, I believe that the

        17       other side has tried to confuse the debate.

        18       This is -- the issue of healthcare in our

        19       prison system is certainly an important issue.

        20                  But the bill before us is trying

        21       focus on another important issue, and that

        22       important issue is that while our senior

        23       citizens are scraping to make copayments on

        24       their medical insurance, while state employees

        25       have to provide a copayment for receiving


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         1       benefits, while those who are abiding by the

         2       law are scraping to provide those copayments,

         3       those who are breaking the law are in effect

         4       given free medical care at taxpayers' expense

         5       with no sense of responsibility whatsoever for

         6       the cost of that payment.

         7                  This is not a unique issue.  It's

         8       one that other states have aggressively

         9       addressed.  And states larger than New York --

        10       witness California -- systems that are larger

        11       than the state system, the federal system,

        12       those prison systems require a copayment.

        13                  I was very pleased to see Senator

        14       Serrano stand up and support the concept of

        15       copayment.  At the risk of sounding like

        16       Senator Volker, I was honored to serve with

        17       Senator Serrano's father.  And that I know

        18       that his sincerity in bringing this amendment

        19       was one certainly that should be recognized.

        20                  I would ask Senator Serrano to go

        21       into the house where his father and I served

        22       and get the Assembly to also pass a copayment

        23       for the amount that Senator Serrano suggested.

        24       If they did, I certainly would look at this

        25       measure and move to compromise.


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         1                  But it's my understanding, Senator,

         2       that the Assembly has yet to support any type

         3       of copayment.  If you could get them to

         4       support the type of amendment that you put

         5       forward, I would move to support a similar

         6       type of procedure in this house.

         7                  So I think that your movement was

         8       fine, to a point.  But frankly, the Assembly

         9       has never moved on this issue.  That we in the

        10       Senate have taken leadership and have

        11       demonstrated what other states have already

        12       said to their taxpayers, to their senior

        13       citizens, to their government employees -- all

        14       of whom have not broken the law -- that we

        15       believe that the inmates in our prison system

        16       should not be denied medical care, but those

        17       who do have inmate accounts, those who do have

        18       funds to pay a modest copayment should be

        19       required, as the states that have been already

        20       enumerated, and the federal system, require

        21       copayments to be made.

        22                  Parenthetically, the $7 copayment

        23       that is part of this legislation was chosen at

        24       the time that the state employees' copayment

        25       was at a $7 level.  Since the time this


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         1       legislation has been drafted, the employees of

         2       the state have had to pay considerably more,

         3       almost 50 percent more -- more than that, in

         4       some cases -- where their copayments are

         5       greater.  So we took the model of the state

         6       employees' healthcare insurance.

         7                  If you're lucky enough to have

         8       healthcare insurance in this state, you are

         9       required in most cases for some modest

        10       copayment.  We believe that should be placed

        11       for everyone in the prison system who gets

        12       medical care at the expense of our taxpayers.

        13                  Before I sit down, I'd just like to

        14       address one other thing.  I don't know how

        15       many of you have visited our prison facilities

        16       or visited the healthcare systems in our

        17       prisons.  But I have, and I've heard from the

        18       doctors who work there, the physician's

        19       assistants who work there, and from the

        20       correction officers who work there.  And they

        21       can tell you, as they've told me time and

        22       again, that there are literally hundreds of

        23       inmates in our prison system that are using

        24       sick call as a form of sport; in effect, a

        25       hobby by many who are trying to get out of the


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         1       daily routine of prison and utilize sick call

         2       as a way to get out of that routine -- whether

         3       it be to avoid work, avoid the prison

         4       drudgery.

         5                  Whatever their motives, they're

         6       using sick call not because they're sick, but

         7       because they want something to do.  And those

         8       are the folks that -- the inmates that we are

         9       focusing this measure's attention on.

        10                  We believe the taxpayers deserve

        11       better.  We believe that those who are abusing

        12       the system should be held accountable.  And

        13       frankly, a modest copayment would tell the

        14       abusers, find another hobby.  That we believe

        15       that the hobby paid for at taxpayers' expense

        16       cannot be justified to the senior citizen, to

        17       the person on Social Security that is

        18       scratching to get the amount of money

        19       necessary for their own copayment.

        20                  Frankly, this debate is clouded too

        21       often by those who are saying our healthcare

        22       system is inferior, we need to do more.  Our

        23       conference is not denying that we should do as

        24       much as we possibly can to help those who are

        25       sick in our prison system.  What we're only


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         1       saying to you is to establish equity and to

         2       provide the same type of equity to those that

         3       are not breaking the law.  That, in effect,

         4       seeing that those who are breaking the law pay

         5       the same type of bill.

         6                  Madam President, that's why I'm

         7       supporting this legislation.

         8                  THE PRESIDENT:    Senator Volker.

         9                  SENATOR VOLKER:    Madam President,

        10       I just -- the reason I'm rising is that I'd

        11       like to see some of those so-called reports

        12       and studies.  First of all, I don't consider

        13       The New York Times to be a real reputable

        14       report on the prison system.

        15                  I have to tell you something about

        16       the New York prison system.  I've been

        17       involved one way or another for 34 years in

        18       helping to oversee the prison system.  I've

        19       watched when the Attica riot occurred back in

        20       '71.  I'm the first to admit to you that

        21       healthcare in the New York prison system was

        22       not the greatest.

        23                  I would have to say, in my humble

        24       opinion -- and I don't know this for sure, but

        25       I do know we spend more money on inmates than


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         1       any system in the country.  I believe we now

         2       have the finest healthcare system in the

         3       United States of America.  Obviously, I can't

         4       say -- I can tell you one thing.  It's a heck

         5       of a lot better than California.  California

         6       is a mess.

         7                  In fact, when our commissioner, who

         8       I happen to think is the best commissioner in

         9       the country, went out to California, he was

        10       aghast.  They have 175,000 inmates out there.

        11       We have a little under 63,000.  The reason

        12       that's significant is in 1980, they had 40,000

        13       and we had 40,000.  Think about that.

        14                  The California prison system is in

        15       chaos.  They even asked -- well, rumor has it

        16       that they asked Glenn Goord if he'd be

        17       interested in taking that system over, and he

        18       just laughed at them.  There's no way that

        19       system is anything close to ours.

        20                  And let me tell you something else.

        21       I don't know who did a study on health, but

        22       someday, if you want, come on up to my

        23       district.  There's a hospital in Erie County

        24       at Wende -- it's called Wende.  It's kind of

        25       embarrassing, because it's the best new


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         1       hospital in all of upstate New York.  It

         2       treats inmates.  Specifically, it treats

         3       inmates with severe problems.

         4                  The inmates who say they're not

         5       being treated are phoney, I'll tell you right

         6       now.  In fact, remember this.  Most of the

         7       problems we have in our prison system, they

         8       don't come from inside the prison, they come

         9       from outside.  We get a lot of prisoners with

        10       TB and with AIDS problems and all kinds of

        11       hepatitis B, which is a lot of people.  We

        12       have people from all over the state there.

        13                  Frankly, I happen to know of

        14       inmates who want to stay in prison to get

        15       better healthcare than they can get outside.

        16       I defy you to show me any reliable study that

        17       shows that the corrections system in New York

        18       has poorer healthcare than some of the average

        19       neighborhoods in this country.  It is

        20       ridiculous.  In fact, the Times Union has said

        21       that too, because anybody that criticizes the

        22       corrections system, the Times Union will

        23       repeat it.

        24                  But I will tell you this.  George

        25       Pataki -- and I'm not supposed to say good


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         1       things about George, because his numbers are

         2       down, but I don't care.  Of all the

         3       governors -- and I've been here with a lot of

         4       governors.  I have to say to you that our

         5       system now, in my humble opinion, is running

         6       better, the healthcare is better, the

         7       supervision is better than it has ever been in

         8       this state's history.  And I'll put this

         9       system in New York above any system in the

        10       country.

        11                  And I have to tell you, certainly

        12       Senator Nozzolio's observations of the

        13       system -- I know he will tell you the same

        14       thing, and he's been very helpful to make sure

        15       that system stays what it is.  But I know a

        16       lot of doctors in the system.  One, I'll admit

        17       to you, who was the head of medical at Attica,

        18       happened to be my doctor.  He's gone now, he's

        19       retired.  But he used to tell me stories about

        20       what they did in the old days before what they

        21       do now.

        22                  The amount of money that goes in to

        23       take care of inmates is substantial.  But

        24       there's a problem.  One of the reasons that

        25       they decided to build a hospital is because


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         1       the inmates wanted always to go into the major

         2       cities -- and that, in this case, would be

         3       Buffalo -- so they could get a ride.  And they

         4       wanted to go there, and they'd feign injuries

         5       or sickness or whatever.  And of course under

         6       the federal rules and under all the rules,

         7       you've got to take them.  So they would take

         8       them.  But what they found was it was getting

         9       dangerous and expensive.  That's one of the

        10       reasons that they built this gorgeous

        11       hospital.

        12                  But I'll just finish by saying I've

        13       been in a lot of prisons.  I know Senator

        14       Nozzolio has been in a lot more than I have.

        15       But I have not seen bad medical care in any

        16       prison in our system.

        17                  I'll be the first to confess to

        18       you, maybe twenty years ago it was nowhere

        19       near as good as it is now, because we put the

        20       money into it, we put the doctors into it, and

        21       we put the people in it.  And some of the

        22       people who complain about the system were

        23       helpful in getting better care.  I'm the first

        24       to admit that.  I hate to admit it, but it's

        25       true.


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         1                  But I have to tell you, I just

         2       don't buy it that our prison healthcare system

         3       is bad.  And I have never seen a report -- a

         4       legitimate report -- that says that.

         5                  THE PRESIDENT:    Senator Parker.

         6                  SENATOR PARKER:    Thank you, Madam

         7       President.  On the bill.

         8                  THE PRESIDENT:    You may proceed

         9       on the bill.

        10                  SENATOR PARKER:    I really hadn't

        11       intended on speaking on this bill, but I've

        12       been compelled to.

        13                  I think -- I want to thank Senator

        14       Nozzolio with bringing this important issue,

        15       as he always does, really bringing important

        16       issues -- and this is something we ought to be

        17       debating and discussing.  So thank you.

        18                  I think that you are absolutely

        19       right when you look at what's happening in our

        20       prisons and say we really need to be providing

        21       some relief to administrators, to nurses, to

        22       doctors, to people who are there trying to do

        23       their jobs and being side-tracked from doing

        24       it.  I'm not clear that this bill is the way

        25       to do it, but I'm certainly with you and I


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         1       think we should continue to struggle through

         2       our attempts to get this done.

         3                  People have talked about their

         4       experiences.  I unfortunately have a great

         5       deal of experience with New York State

         6       prisons.  I've had family members, I've had --

         7       my brother was in a New York State prison for

         8       a great deal of time -- as a matter of fact,

         9       was in an AIDS ward and died in the AIDS ward

        10       back in 1988.  So I've spent more -- and this

        11       is not something I ever thought I would be

        12       standing on the floor of the Senate kind of

        13       confessing to.

        14                  But as I hear people talking about,

        15       you know, inmates wanting to be in -- you

        16       know, people staying in a prison, I'm just

        17       kind of outraged that anybody would think that

        18       somebody would want to be in prison to get

        19       medical care.  And although the medical care

        20       on the streets of the city of New York and in

        21       the state of New York are not what they ought

        22       to be, they're certainly, you know, better

        23       than being in prison.

        24                  And I'm not sure where people -- if

        25       people know of health clinics or hospitals


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         1       that are worse than prison hospitals, they

         2       ought to be reporting them to the Department

         3       of Health today.  And in fact I will help you

         4       fill out the forms and the paperwork, my

         5       office will write the letters today to make

         6       sure that we get some people into those

         7       hospitals and clinics if they're worse than

         8       the ones that we're finding in prison.

         9                  Access to affordable, quality

        10       healthcare really should be a right of every

        11       single person in this country, let alone the

        12       state of New York.  And I'm sure there's not a

        13       person in this body who would disagree with

        14       that.  And I think that's where we ought to be

        15       going with our proposals, with our

        16       legislation, is looking at how we in fact

        17       create a healthier society overall.

        18                  And I think that Senator Volker is

        19       absolutely right when he talks about the fact

        20       that, you know, many people come to prison

        21       sick.  And that's really an indictment of not

        22       the prison system, but it's an indictment of

        23       our overall health system.  And we ought to be

        24       figuring out how do we in fact make healthcare

        25       more accessible and more -- and how do we


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         1       raise the quality of that healthcare.

         2                  I'm not clear that this bill does

         3       that.  In fact, I think that this bill,

         4       despite its good intention, in fact

         5       discourages people from going to the doctor,

         6       people who may in fact have real needs, people

         7       who may have real concerns but in fact may not

         8       have the real money that $7 represents in a

         9       state facility where people are making, on

        10       average, 17 cents a day or whatever they're

        11       making.

        12                  We voted earlier on an amendment

        13       that failed in this body that would have

        14       lowered that number to 50 cents.  I voted for

        15       it, I thought it was a better move, but it's

        16       not really, frankly, the move.  We really

        17       ought to be, in fact, making healthcare free.

        18       Not just for prisoners, it ought to be free

        19       for everybody.  In fact, we ought to be trying

        20       to figure out, you know, models that are based

        21       on wellness.

        22                  In fact, people ought to be -- you

        23       know, we ought to stop paying our doctors when

        24       we get sick.  This is what I suggest.  Let's

        25       write a bill:  doctors get paid every month


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         1       you're not sick.  The months you are sick,

         2       they don't get paid.  A wellness model; right?

         3       Right now there's an economic incentive for

         4       your doctor to keep you sick, because he gets

         5       paid every time you come and sit in the

         6       waiting room.  So that's where we ought to be

         7       going.  We'd actually save money as a system,

         8       we'd have a healthier society and we'd have

         9       healthier people.

        10                  Again, I agree that in fact we do

        11       have some problems in our system as it relates

        12       to healthcare and how it's being abused.  I

        13       think that we ought to be working with the

        14       Department of Corrections to in fact address

        15       those issues.  I'm not clear that this

        16       legislative solution in fact is where we ought

        17       to go, and so I'm going to vote no.

        18                  THE PRESIDENT:    Does any other

        19       member wish to be heard on this bill?

        20                  Senator Schneiderman.

        21                  SENATOR SCHNEIDERMAN:    Thank you,

        22       Madam President.  Very briefly.

        23                  I have to say I don't see that this

        24       is a piece of legislation that is going

        25       anywhere.  I'm not afraid of -- at the risk of


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         1       sounding like Senator Volker -- I'm happy to

         2       sound like Senator Volker.  This is all

         3       started many years ago when I was a police

         4       officer -- no.

         5                  (Laughter.)

         6                  SENATOR SCHNEIDERMAN:    The issue

         7       that is before us is very simple.  This is a

         8       bill that's been introduced since 1997, and

         9       every year it gets less votes than it got the

        10       year before.  This is not happening.

        11                  Maybe part of the reason it's not

        12       happening is if you look at the State of

        13       California, which was discussed earlier, a

        14       California state auditor's investigation

        15       determined that it cost California

        16       $3.2 million to collect $654,000 in copays.

        17       So this would actually reduce the amount of

        18       money available to our corrections system for

        19       guards, for transportation, and for other

        20       things.

        21                  This is not a good solution to the

        22       problem.  I would suggest that this is not

        23       something -- maybe it helps to have this as an

        24       issue to beat the Assembly up on.  This is a

        25       one-house bill that's not going anywhere.


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         1       There is not even a same-as bill in the

         2       Assembly, although I know Assembly Member

         3       Gunther has something similar.

         4                  Let's stop with the one-house

         5       repetitive bill passing.  Let's try and come

         6       up with a solution to the problem of

         7       healthcare in the prison system.  And as

         8       Senator Parker points out, let's make it a

         9       part of the broader solution to the fact that

        10       this is the state with the fastest-growing

        11       pool of uninsured New Yorkers of any state in

        12       the country.  It is something that we need to

        13       address.  More people who don't go to doctors

        14       make all of us less well and less safe.

        15                  I'm going to be voting no for the

        16       same reasons I have voted no every other year

        17       this has come to the floor.

        18                  Thank you, Madam President.

        19                  THE PRESIDENT:    The debate is

        20       closed.

        21                  The Secretary will ring the bell.

        22                  Read the last section.

        23                  THE SECRETARY:    Section 2.  This

        24       act shall take effect on the 120th day.

        25                  THE PRESIDENT:    Call the roll.


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         1                  (The Secretary called the roll.)

         2                  THE SECRETARY:    Those recorded in

         3       the negative on Calendar Number 345 are

         4       Senators Breslin, Coppola, Dilan, Duane,

         5       Gonzalez, L. Krueger, Montgomery, Oppenheimer,

         6       Parker, Sabini, Savino, Schneiderman, Serrano,

         7       A. Smith, M. Smith, and Stavisky.

         8                  Absent from voting:  Senator

         9       Connor.

        10                  Ayes, 39.  Nays, 16.

        11                  THE PRESIDENT:    The bill is

        12       passed.

        13                  The Secretary will continue to

        14       read.

        15                  THE SECRETARY:    Calendar Number

        16       411, by Senator Little, Senate Print 3376D, an

        17       act to amend the General Municipal Law.

        18                  SENATOR SCHNEIDERMAN:

        19       Explanation.

        20                  THE PRESIDENT:    Senator Little,

        21       an explanation has been requested.

        22                  SENATOR LITTLE:    Thank you, Madam

        23       President.

        24                  Before explaining this bill, I

        25       would like to say what this bill is not.  This


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         1       bill is not an IDA reform bill.  Last year we

         2       tried unsuccessfully to work with the Assembly

         3       to do an IDA reform bill, which many members

         4       on both sides of the aisle feel that there

         5       should be some reform made to the IDA

         6       policies.  However, we were not able to reach

         7       any kind of agreement.

         8                  But this bill is a more

         9       straightforward bill that makes permanent the

        10       IDA's authority to finance civic facility

        11       projects, because that authority expires July

        12       1, 2006.  Last year we extended the authority

        13       for one year.  In previous years, we've

        14       extended it for one year and three years.

        15       This bill would make it permanent.

        16                  The legislation also removes the

        17       $20 million cap for dormitories, public health

        18       facilities, and senior housing.  This is

        19       necessary because in 1986, when IDAs were

        20       given the ability to finance not-for-profit

        21       projects, there was an unlimited amount of IDA

        22       financing that could take place.  In 1997,

        23       dormitories, public health facilities and

        24       senior housing projects were added to the list

        25       of not-for-profits, and a temporary cap of


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         1       $20 million was put on these projects to see

         2       how this whole thing worked.  There have not

         3       been problems with it, and it has worked

         4       successfully, and we would like to see that

         5       $20 million cap removed, as the cost has

         6       escalated for many of these projects.

         7                  This is not about economic

         8       development projects in that sense.  It is

         9       about financing our senior housing facilities,

        10       libraries, YMCAs, group homes for the mentally

        11       disabled.  By making these provisions

        12       permanent, we give them the ability to plan

        13       and to apply and to know that they are going

        14       to be able to get this kind of IDA funding.

        15                  The law has allowed over 1,000

        16       not-for-profit projects with more than

        17       $8 billion in investment since -- assisted by

        18       IDAs since 1987.

        19                  I would also like to point out that

        20       this bill is 3376D, which means that the bill

        21       has been amended four times.  We have a

        22       same-as bill that's been filed in the Assembly

        23       by Assemblyman Morelle, and we have worked

        24       hard to reach agreement so that we could get

        25       this bill passed through both houses.


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         1                  THE PRESIDENT:    Senator Krueger.

         2                  SENATOR LIZ KRUEGER:    Thank you,

         3       Madam President.  On the bill.

         4                  THE PRESIDENT:    You may proceed.

         5                  SENATOR LIZ KRUEGER:    Thank you.

         6                  I appreciate Senator Little's

         7       explanation.  And I agree with her, this is

         8       not an IDA reform bill.  My frustration is:

         9       Where is our IDA reform bill?

        10                  We did a one-year extender last

        11       year in the hopes that both houses would be

        12       moving forward with significant reforms to the

        13       models used by Industrial Development

        14       Agencies.  And it's a year later, and we're

        15       not there.

        16                  And I also agree this bill has been

        17       modified and primarily addresses the

        18       sunsetting for not-for-profit civic

        19       organizations, who I know, based on the large

        20       number of calls I've been getting today, are

        21       very worried about the sunsetting provisions

        22       of this bill.

        23                  Although that raises for me the

        24       second issue:  Why is this bill not just

        25       exclusively, then, addressing the issue of


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         1       sunsetting for not-for-profit organizations

         2       hoping to be able to continue to draw down

         3       bonds through IDAs?

         4                  I am disturbed that we are, in this

         5       bill, doing a permanent lifting of a cap

         6       currently at $20 million for civic facilities.

         7       I don't think it is necessary to do a

         8       permanent lifting of a cap.  I'm not sure why

         9       it's required to do a permanent anything for

        10       IDAs, since we are still in the process of

        11       hoping we have serious reform of IDAs.

        12                  I'm equally concerned that in this

        13       bill we would be making permanent certain

        14       restrictions in IDAs that I don't think are

        15       what any of us in this house or the other

        16       house think are the right long-term model for

        17       IDAs.

        18                  This would make permanent the

        19       current restriction that antipirating

        20       provisions applied only if an occupant moves

        21       from one area of the state to another.  But

        22       we've never defined "area."  What is an area,

        23       in moving from one to another?

        24                  We've seen, in Albany alone

        25       recently, two well-known organizations take


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         1       advantage of IDA provisions when they simply

         2       moved, in one case literally down the block.

         3       Both HANYS and Time Warner drew down on the

         4       advantages of IDAs when they didn't move or

         5       create new jobs in any serious way.

         6                  I'm also concerned that we

         7       shouldn't be making permanent restrictions

         8       that are vague at best when it comes to

         9       exemptions on retail sales.  I am concerned

        10       that even for not-for-profit projects and the

        11       projects that would be allowed permanently

        12       through this bill, there is no mechanism, as

        13       there is none for any other IDA deal, that

        14       there's any review by either the PACB board,

        15       Public Authority Control Board, or the

        16       Comptroller's office.

        17                  I think that all of the research

        18       coming out in the last few years about what

        19       works and doesn't work in state oversight of

        20       programs where we play a role is how important

        21       it is to have standards and a review process.

        22       And if this bill is passed and made permanent

        23       law, we have also not built in these review

        24       processes or a reasonable set of

        25       across-the-board standards for the sections of


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         1       IDA approvals that this bill would again make

         2       permanent in the law.

         3                  Just to highlight some of the

         4       issues that are not in this bill, as Senator

         5       Little said, and again are the problems before

         6       us -- although I suppose the good news is this

         7       is not the last week of session, and there's

         8       still time to work through IDA reform

         9       legislation -- that we need to truly evaluate

        10       the successes and failures and problems of

        11       IDAs, whether in fact they are doing a good

        12       job of remaining accountable and ensuring

        13       adequate public input into their proposed

        14       projects on a local level, whether the local

        15       governments have a say in the decisions that

        16       are made and the projects that are approved.

        17                  Again, most IDA projects are not

        18       not-for-profit civic projects but, rather,

        19       economic development, industrial development

        20       projects, projects where the IDAs have the

        21       authority to do lease deals where there are no

        22       taxes paid, where there is no -- there are no

        23       clawback provisions if the jobs are not

        24       delivered, where land is taken off the tax

        25       rolls, perhaps permanently, as part of the


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         1       arrangements between the IDAs and the

         2       companies they're doing business with.

         3                  I think it is critical that we not

         4       continue to go forward with these kind of

         5       models in the long term for the State of

         6       New York.  Every time there's an IDA deal for

         7       an economic development project and taxes are

         8       exempted or property is taken off the local

         9       tax rolls, let's remember that that's a tax

        10       dollar not collected for the school district

        11       or by the locality or by the county.

        12                  That means every time somebody

        13       isn't paying their taxes because of an IDA

        14       arrangement, someone else at the local level

        15       is paying those monies instead.  The costs

        16       don't go down for the localities, there is

        17       just a shift in who is paying those taxes and

        18       who is not.  And there hasn't been nearly

        19       enough review in the past about what has been

        20       happening through IDAs all over the state of

        21       New York.

        22                  I'm also equally concerned that

        23       besides not having adequate oversight or

        24       adequate standardized reporting requirements

        25       or ensuring enforceable clawback penalties or


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         1       ensuring transparency of who's making the

         2       decisions about who gets what deals through

         3       IDAs, that we're also not evaluating whether

         4       these IDAs have the technical capacity to

         5       provide the services being asked of them.

         6                  A recent report shows that the

         7       average IDA has only one to three employees.

         8       Is it realistic to imagine that a thorough

         9       analysis is being done of each of these deals

        10       around the state with operations where there

        11       may be only one employee or, in some cases,

        12       only a part-time employee?

        13                  I'm also concerned that we have let

        14       this go for so long between our failure to

        15       reform IDAs or evaluate the role of LDCs,

        16       local development corporations, in

        17       relationship to Industrial Development

        18       Agencies, that one report highlighted that

        19       Erie County had 35 area municipalities and

        20       42 separate government agencies within the

        21       county with the authority to make economic

        22       development funds available, 16 of which were

        23       local development agencies, six of which were

        24       IDAs.

        25                  Without a serious evaluation -- no,


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         1       to be fair, there have been serious

         2       evaluations.  The Comptroller's office has put

         3       out any number of reports with

         4       recommendations, including a new report that

         5       came out this weekend.  The Empire State

         6       Development Corporation contracted for an

         7       evaluation of the IDAs back in April '98 that

         8       put out a series of recommendations.  I have

         9       their report.  The Fiscal Policy Institute has

        10       made recommendations and done evaluations.

        11       Assembly Member Sweeney has a very detailed

        12       bill about IDA reform.

        13                  I don't know that we need a lot of

        14       time for evaluation.  The evaluations have

        15       been done.  What we need is to ensure that we

        16       pass IDA reform legislation in this house and

        17       the Assembly as well before we leave this

        18       year.

        19                  And while it is correct that this

        20       bill deals with just one set of subsections

        21       within the overarching concerns about IDAs, I

        22       think it would be a mistake to move forward

        23       and make permanent the prohibitions in this

        24       bill, given the fact that I think there is

        25       such a strong argument for full IDA reform


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         1       before we leave session this year.

         2                  So I would urge my colleagues not

         3       to support this bill but to please, please

         4       make sure that we move forward, in a joint

         5       conference committee of both houses, to

         6       actually address the real problems of IDAs

         7       before this session is over.  We still have

         8       time to do so.

         9                  And again, I would urge that if

        10       Senator Little wants to address the concerns

        11       unique to civic organizations within this bill

        12       that she consider a bill that just addresses

        13       those concerns, not the broader permanency of

        14       current sections of the law that also need

        15       reform.

        16                  Thank you, Madam President.

        17                  THE PRESIDENT:    Senator Little.

        18                  SENATOR LITTLE:    Thank you, Madam

        19       President.  On the bill, if I may.

        20                  As Senator Krueger said, this is

        21       not the end of our session.  It is April 10th,

        22       I believe, and we have plenty of time between

        23       now and the end of session to work on an IDA

        24       reform.

        25                  Last year we passed the public


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         1       authorities reform legislation, and in many

         2       ways that has some effect on IDAs.  I have

         3       worked with Assemblyman Sweeney last year.  We

         4       tried to have an agreed-upon bill.  I continue

         5       to work with him, and hopefully we will.

         6                  However, I don't believe that we

         7       should hold our public health facilities, our

         8       continuing care retirement communities, and

         9       these not-for-profits hostage while we try to

        10       work out the IDA reform legislation.

        11                  Therefore, I would hope that

        12       everyone would consider voting for this bill

        13       to allow these not-for-profit IDAs to be able

        14       to plan ahead, to know that their projects can

        15       be applied for, and to extend this bill by

        16       making it permanent so that they are not held

        17       hostage every year or every two or three years

        18       while we try to do this again.

        19                  So I would ask everyone to consider

        20       voting for the bill.  Thank you.

        21                  THE PRESIDENT:    Senator Sabini.

        22                  SENATOR SABINI:    Madam President,

        23       if the sponsor would yield for a few

        24       questions.

        25                  THE PRESIDENT:    Senator Little,


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         1       will you yield for a question?

         2                  SENATOR LITTLE:    Yes, I will.

         3                  THE PRESIDENT:    You may proceed

         4       with a question.

         5                  SENATOR SABINI:    Through you,

         6       Madam President, I'm just wondering if the

         7       sponsor can tell us why this method of funding

         8       would be better or more efficient or cheaper

         9       than the Dormitory Authority's methods that

        10       they already offer under the law.

        11                  SENATOR LITTLE:    Under the

        12       Dormitory Authority funding, I believe you

        13       have to have insurance and go through -- not

        14       always have the lowest interest rate as well.

        15                  The other thing that's important

        16       about extending -- making this bill permanent

        17       and allowing these public health facilities is

        18       the current IDA financing is available for,

        19       for instance, a $50 million parking garage at

        20       a hospital or healthcare facility, but it is

        21       not available for a $21 million cancer center.

        22       There is a cap on anything they would use for

        23       public health facilities.

        24                  This bill also has a great deal of

        25       support, in that it's supported by the


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         1       New York Farm Bureau, New York State Economic

         2       Development, HANYS, the New York City Mayor's

         3       Office, NYSAC, the Alliance of Long Island

         4       Agencies, NYAHSA, the Interagency Council of

         5       Mental Retardation and Developmental

         6       Disabilities, all of whom feel that this is an

         7       important means of financing their

         8       not-for-profit facilities.

         9                  SENATOR SABINI:    Madam President,

        10       if the sponsor would continue to yield.

        11                  THE PRESIDENT:    Senator Little,

        12       will you yield for another question?

        13                  SENATOR LITTLE:    Yes.

        14                  THE PRESIDENT:    She will.  You

        15       may proceed, Senator.

        16                  SENATOR SABINI:    I'm wondering,

        17       since the sponsor has talked about how this is

        18       not a reform bill -- and I agree it's not --

        19       why does Section 3 on page 2 of the bill go to

        20       such lengths to make the antipiracy provisions

        21       that many of us feel are so inadequate

        22       permanent?

        23                  SENATOR LITTLE:    Well, actually,

        24       in response, there are some things that have

        25       been considered IDA reforms that expire


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         1       July 1st of 2006, and so we intend so make

         2       those permanent as well.  And one of those is

         3       the provision which prohibits the financing of

         4       retail projects.  Another is the uniform tax

         5       exemption policy, which would expire on July

         6       of '06.

         7                  Therefore, in doing what we're

         8       doing to the bill, with the dormitories,

         9       public health facilities, and senior housing

        10       not-for-profit projects, because that expires

        11       July 1, 2006, we would also make permanent the

        12       other provisions which expire in 2006 which

        13       are in the bill, in the IDA legislation, and

        14       are working.

        15                  SENATOR SABINI:    Madam President,

        16       if the sponsor would continue to yield.

        17                  THE PRESIDENT:    Senator Little,

        18       will you yield?

        19                  SENATOR LITTLE:    Yes.

        20                  THE PRESIDENT:    She does yield,

        21       Senator.

        22                  SENATOR SABINI:    I'm wondering if

        23       the sponsor then thinks that the antipiracy

        24       provisions that we're making permanent are

        25       adequate enough for continuing fiscally


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         1       prudent operations of the state.

         2                  SENATOR LITTLE:    Well, whether or

         3       not they're adequate enough I guess depends on

         4       which side you're on.  But we have not been

         5       able to come --

         6                  SENATOR SABINI:    That's why I was

         7       asking.

         8                  SENATOR LITTLE:    We have not been

         9       able to come to agreement on that.  And that's

        10       one of the things that would come in under an

        11       IDA reform legislation, and it's something

        12       that we continue to work on.

        13                  And nothing -- there's absolutely

        14       nothing in this piece of legislation we're

        15       doing today that precludes us from moving

        16       forward with an IDA reform package.

        17                  SENATOR SABINI:    Madam President,

        18       on the bill.

        19                  THE PRESIDENT:    You may proceed

        20       on the bill, Senator.

        21                  SENATOR SABINI:    I agree with the

        22       sponsor there's nothing that precludes us from

        23       moving forward with IDA reform.  However, I

        24       think that this makes the starting line for

        25       that reform a little further back and creates


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         1       a few more hurdles to that reform.

         2                  I don't think this is a step in the

         3       right direction.  I think the whole system

         4       needs to be overhauled and looked at.  I find

         5       it ironic that Sections 1 and 2 of this bill

         6       deal with agriculture, when the bonds we're

         7       talking about are industrial by title.  The

         8       agriculture business in our state is an

         9       important one, and maybe we should have a

        10       special series of bonds under a separate

        11       program that works better for agriculture.

        12                  THE PRESIDENT:    Excuse me,

        13       Senator Sabini.

        14                  Senator Little.

        15                  SENATOR LITTLE:    Thank you.

        16       Would Senator Sabini yield for a question?

        17                  THE PRESIDENT:    Senator Sabini,

        18       will you yield?

        19                  SENATOR LITTLE:    When I'm

        20       through, Madam President, I'll be happy to.

        21                  THE PRESIDENT:    You may finish

        22       your answer, Senator.

        23                  SENATOR SABINI:    So I'm concerned

        24       this is really not going to help what I think

        25       the Majority, what I know the Comptroller,


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         1       what I know our conference is hoping for,

         2       which is true authority reform.  We made a

         3       step that way last year.

         4                  I don't think -- this step is

         5       either a lockstep or a step back, and

         6       therefore I am not going to be voting for this

         7       bill until I see something a little better.

         8                  And I'll be happy to yield.

         9                  THE PRESIDENT:    Senator Little.

        10                  SENATOR LITTLE:    Thank you.

        11                  Senator Sabini, do you have print

        12       3376D?  Because we made several adjustments to

        13       this bill to make it agreeable, and we took

        14       out the agriculture part.

        15                  SENATOR SABINI:    Madam President,

        16       through you, the last copy I saw before I

        17       arrived here today was not D, it was C.

        18                  SENATOR LITTLE:    Well, D does not

        19       have the agriculture part in it.  It doesn't

        20       have the part where you could lease a section

        21       of the building to a municipality either.

        22                  So we've done a lot of changes to

        23       this to try to make it agreeable.

        24                  SENATOR SABINI:    Madam President,

        25       through you, if I could answer.


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         1                  Yes, the bill has had a lot of

         2       changes.  That's why it's on the D print.  And

         3       I apologize for not knowing that those two

         4       sections, Sections 1 and 2 were changed.

         5                  But the fact of the matter is that

         6       on the whole, I don't think this bill

         7       necessarily addresses the progress we're

         8       trying to make on authority reform, and I'm

         9       still going to be voting against it.

        10                  Thank you.

        11                  THE PRESIDENT:    Does any other

        12       member wish to be heard on this bill?

        13                  Then the debate is closed.

        14                  The Secretary will ring the bell.

        15                  Read the last section.

        16                  THE SECRETARY:    Section 5.  This

        17       act shall take effect immediately.

        18                  THE PRESIDENT:    Call the roll.

        19                  (The Secretary called the roll.)

        20                  THE SECRETARY:    Those recorded in

        21       the negative on Calendar Number 411 are

        22       Senators Coppola, Dilan, Duane, Gonzalez,

        23       Hannon, L. Krueger, Maziarz, Parker, Sabini,

        24       Schneiderman, Serrano, Senator A. Smith and

        25       Stavisky.


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         1                  Ayes, 43.  Nays, 13.

         2                  THE PRESIDENT:    The bill is

         3       passed.

         4                  Senator Skelos, that completes the

         5       calendar.

         6                  SENATOR SKELOS:    Thank you, Madam

         7       President.  Is there any further business at

         8       the desk?

         9                  THE PRESIDENT:    No, there isn't,

        10       Senator.

        11                  SENATOR SKELOS:    Would you please

        12       recognize Senator Savino.

        13                  THE PRESIDENT:    Senator Sabini.

        14                  Senator Savino, excuse me.

        15                  SENATOR SAVINO:    Thank you, Madam

        16       President.

        17                  Madam President, I believe I have a

        18       motion at the desk.  I would ask that it be

        19       called up at this time.

        20                  THE PRESIDENT:    The Secretary

        21       will read.

        22                  THE SECRETARY:    Senate Print

        23       6472A, by Senator Savino, an act to amend the

        24       Labor Law.

        25                  THE PRESIDENT:    Senator Sabini --


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         1       this time I was looking, too.

         2                  Senator Savino.

         3                  SENATOR SAVINO:    Thank you, Madam

         4       President.

         5                  I have a bill that I've introduced

         6       called the Fair Share Healthcare Fund.  And

         7       the Fair Share Healthcare Fund would require

         8       certain employers to provide minimum

         9       healthcare benefits for their employees.

        10                  This bill is intended to make all

        11       covered employers of the state spend a minimum

        12       level of funding on healthcare for their

        13       employees, based on the number of hours that

        14       they work in the year, in order to reduce the

        15       burden on the state and on taxpayers.

        16                  Specifically, we're talking about

        17       employers who operate at least one retail

        18       store and have at least 500 employees

        19       statewide, where groceries or other foods are

        20       sold for off-site consumption and where either

        21       10,000 square feet or 5 percent of the overall

        22       floor space in a store containing at least

        23       100,000 square feet are dedicated to the sale

        24       of groceries, that they provide minimum

        25       healthcare for their employees.


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         1                  No employee of a multibillion-

         2       dollar corporation or a multinational company,

         3       such as Wal-Mart, should be forced to go

         4       without medical care, nor should they be

         5       forced to resort to Medicaid.  This bill will

         6       ensure that large employers provide decent

         7       health benefits, ensuring that thousands of

         8       uninsured New Yorkers who work full-time for

         9       large employers will get healthcare.

        10                  Just as the minimum wage sets the

        11       standards for employee wages, this bill would

        12       set the standard for minimum healthcare

        13       coverage.

        14                  Taxpayers should not be required to

        15       subsidize private businesses by providing

        16       healthcare benefits to their employees.

        17       Currently, many businesses do the right thing

        18       and they struggle every day to provide minimum

        19       healthcare to their employees.  But these

        20       responsible businesses are being harmed as

        21       they try to compete against companies that

        22       refuse to pay their fair share for their

        23       employees' health benefits.  Responsible

        24       employers should not be penalized for

        25       providing health insurance to their employees.


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         1                  Stores such as Wal-Mart that do not

         2       offer their employees healthcare benefits are

         3       able to sell their products for a much lower

         4       price than their competitors.  But who ends up

         5       paying for the difference?  Taxpayers do.

         6                  This bill would end the business

         7       model that says "save money by not paying

         8       benefits and hit your competitors with those

         9       costs."  I urge my colleagues to join me in

        10       supporting this important step toward

        11       providing every New Yorker with quality,

        12       affordable healthcare.

        13                  THE PRESIDENT:    Thank you,

        14       Senator Savino.

        15                  All those members in favor of the

        16       petition out of committee please signify by

        17       raising your hand.

        18                  THE SECRETARY:    Those recorded in

        19       agreement are Senators Breslin, Connor,

        20       Coppola, Dilan, Duane, Gonzalez, Klein,

        21       L. Krueger, C. Kruger, Montgomery,

        22       Oppenheimer, Parker, Sabini, Savino,

        23       Schneiderman, Serrano, A. Smith, M. Smith,

        24       Stachowski, Stavisky and Valesky.

        25                  THE PRESIDENT:    The petition out


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         1       of committee is not agreed to.

         2                  Senator Skelos.

         3                  SENATOR SKELOS:    Madam President,

         4       there being no further business to come before

         5       the Senate, I move we stand adjourned until

         6       Tuesday, April 11th, at 11:00 a.m.

         7                  THE PRESIDENT:    On motion, the

         8       Senate now stands adjourned until Tuesday,

         9       April 11th, at 11:00 a.m.

        10                  (Whereupon, at 4:27 p.m., the

        11       Senate adjourned.)

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