Regular Session - May 15, 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                     May 15, 2006

        11                       3:03 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                  ACTING PRESIDENT WRIGHT:    The

         3       Senate will come to order.

         4                  I ask everyone present to please

         5       rise and repeat with me the Pledge of

         6       Allegiance.

         7                  (Whereupon, the assemblage recited

         8       the Pledge of Allegiance to the Flag.)

         9                  ACTING PRESIDENT WRIGHT:    The

        10       invocation today will be given by the Reverend

        11       Peter Young.

        12                  REVEREND YOUNG:    Dear God, as we

        13       gather in Your name in these closing days of

        14       the 2005-2006 session, we accept the strength

        15       of Your guidance to meet the challenges of

        16       these major pieces of legislation that are on

        17       our agendas.

        18                  We pray that You will guide us and

        19       help us in these decisions now and forever.

        20                  Amen.

        21                  ACTING PRESIDENT WRIGHT:    Reading

        22       of the Journal.

        23                  THE SECRETARY:    In Senate,

        24       Sunday, May 14, the Senate met pursuant to

        25       adjournment.  The Journal of Saturday, May 13,


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         1       was read and approved.  On motion, Senate

         2       adjourned.

         3                  ACTING PRESIDENT WRIGHT:    Without

         4       objection, the Journal stands approved as

         5       read.

         6                  And we welcome the Lieutenant

         7       Governor.

         8                  THE PRESIDENT:    Presentation of

         9       petitions.

        10                  Messages from the Assembly.

        11                  Messages from the Governor.

        12                  Reports of standing committees.

        13                  Reports of select committees.

        14                  Communications and reports from

        15       state officers.

        16                  Motions and resolutions.

        17                  Senator Fuschillo.

        18                  SENATOR FUSCHILLO:    Madam

        19       President, thank you very much.

        20                  On behalf of Senator Saland, I wish

        21       to call up Senate Print Number 6762, recalled

        22       from the Assembly, which is now at the desk.

        23                  THE PRESIDENT:    The Secretary

        24       will read.

        25                  THE SECRETARY:    Calendar Number


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         1       546, by Senator Saland, Senate Print 6762, an

         2       act to authorize the Town of Wappinger.

         3                  SENATOR FUSCHILLO:    I now move to

         4       reconsider the vote by which the bill was

         5       passed.

         6                  THE PRESIDENT:    The Secretary

         7       will call the roll upon reconsideration.

         8                  (The Secretary called the roll.)

         9                  THE SECRETARY:    Ayes, 41.

        10                  SENATOR FUSCHILLO:    I now offer

        11       the following amendments.

        12                  THE PRESIDENT:    The amendments

        13       are received.

        14                  SENATOR FUSCHILLO:    On behalf of

        15       Senator Spano, I wish to call up Senate Print

        16       Number 4155A, recalled from the Assembly,

        17       which is now at the desk.

        18                  ACTING PRESIDENT WRIGHT:    The

        19       Secretary will read.

        20                  THE SECRETARY:    Calendar Number

        21       385, by Senator Spano, Senate Print 4155A, an

        22       act to amend the Vehicle and Traffic Law.

        23                  SENATOR FUSCHILLO:    I now move to

        24       reconsider the vote by which the bill was

        25       passed.


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         1                  ACTING PRESIDENT WRIGHT:    Call

         2       the roll on reconsideration.

         3                  (The Secretary called the roll.)

         4                  THE SECRETARY:    Ayes, 41.

         5                  SENATOR FUSCHILLO:    I now offer

         6       the following amendments.

         7                  ACTING PRESIDENT WRIGHT:    The

         8       amendments are received.

         9                  SENATOR FUSCHILLO:    On behalf of

        10       Senator Bonacic, on page number 43 I offer the

        11       following amendments to Calendar Number 726,

        12       Senate Print Number 6952A, and ask that said

        13       bill retain its place on Third Reading

        14       Calendar.

        15                  ACTING PRESIDENT WRIGHT:    The

        16       amendments are received, and the bill will

        17       retain its place on the Third Reading

        18       Calendar.

        19                  SENATOR FUSCHILLO:    On behalf of

        20       Senator Morahan, on page number 59 I offer the

        21       following amendments to Calendar Number 937,

        22       Senate Print Number 7664, and ask that said

        23       bill retain its place on Third Reading

        24       Calendar.

        25                  ACTING PRESIDENT WRIGHT:    The


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         1       amendments are received, and the bill will

         2       retain its place on the Third Reading

         3       Calendar.

         4                  SENATOR FUSCHILLO:    On behalf of

         5       Senator Marcellino, on page number 65 I offer

         6       the following amendments to Calendar Number

         7       1002, Senate Print Number 6737, and ask that

         8       said bill retain its place on Third Reading

         9       Calendar.

        10                  ACTING PRESIDENT WRIGHT:    The

        11       amendments are received, and the bill will

        12       retain its place on the Third Reading

        13       Calendar.

        14                  SENATOR FUSCHILLO:    On behalf of

        15       Senator LaValle, on page number 64 I offer the

        16       following amendments to Calendar Number 995,

        17       Senate Print Number 1477, and ask that said

        18       bill retain its place on Third Reading

        19       Calendar.

        20                  ACTING PRESIDENT WRIGHT:    The

        21       amendments are received, and the bill will

        22       retain its place on the Third Reading

        23       Calendar.

        24                  Senator Skelos.

        25                  SENATOR SKELOS:    Mr. President, I


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         1       believe there's a substitution at the desk.

         2                  ACTING PRESIDENT WRIGHT:    The

         3       Secretary will read.

         4                  THE SECRETARY:    On page 57,

         5       Senator Morahan moves to discharge, from the

         6       Committee on Veterans and Homeland Security,

         7       Assembly Bill Number 2747 and substitute it

         8       for the identical Senate Bill Number 1500,

         9       Third Reading Calendar 918.

        10                  ACTING PRESIDENT WRIGHT:    The

        11       substitution is ordered.

        12                  Senator Skelos.

        13                  SENATOR SKELOS:    Mr. President,

        14       there's a resolution at the desk, 5170, by

        15       Senator Robach.  If we could have it read in

        16       its entirety and move for its immediate

        17       adoption.

        18                  ACTING PRESIDENT WRIGHT:    The

        19       Secretary will read.

        20                  THE SECRETARY:    By Senator

        21       Robach, Legislative Resolution Number 5170,

        22       congratulating the Hilton High School Girls

        23       Cross Country Team and Coach Mike Szczepanik

        24       upon the occasion of capturing the Nike Team

        25       National Cross Country Championship.


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         1                  "WHEREAS, Excellence and success in

         2       competitive sports can be achieved only

         3       through strenuous practice, team play and team

         4       spirit, nurtured by dedicated coaching and

         5       strategic planning; and

         6                  "WHEREAS, Athletic competition

         7       enhances the moral and physical development of

         8       the young people of this state, preparing them

         9       for the future by instilling in them the value

        10       of teamwork, encouraging a standard of healthy

        11       living, imparting a desire for success, and

        12       developing a sense of fair play and

        13       competition; and

        14                  "WHEREAS, The Hilton Girls Cross

        15       Country Team are the Nike Team Cross Country

        16       Champions; and

        17                  "WHEREAS, The second annual Nike

        18       Team Nationals Competition was held on

        19       December 3, 2005, in Portland, Oregon.  The

        20       Hilton Girls Cross Country Team earned the

        21       all-expense-paid trip and participated from

        22       November 30 through December 4, 2005; and

        23                  "WHEREAS, Although the times were

        24       off due to the mud and water on the track, the

        25       Hilton Girls Cross Country Team defeated the


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         1       competition, scoring 85, with number-one-

         2       ranked Saratoga High School coming in second

         3       at 112.  The race was 5,000 meters; and

         4                  "WHEREAS, Prior to the Nike event,

         5       the Hilton Girls Cross Country Team won their

         6       second consecutive Section Five title and

         7       Coach Mike Szczepanik was named Monroe County

         8       Section Five Coach of the Year; and

         9                  "WHEREAS, In addition to earning a

        10       spot to compete for the national title,

        11       runners had the opportunity to experience a

        12       weekend of events related to the sport, both

        13       on and off the course, including educational

        14       seminars and activities; and

        15                  "WHEREAS, The athletic talent

        16       displayed by this team is due in great part to

        17       the efforts of Coach Mike Szczepanik, a

        18       skilled and inspirational tutor, respected for

        19       his ability to develop potential into

        20       excellence; and

        21                  "WHEREAS, The team's overall record

        22       is outstanding, and the team members were

        23       loyally and enthusiastically supported by

        24       family, fans, friends and the community at

        25       large; and


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         1                  "WHEREAS, The hallmarks of the

         2       Hilton Girls Cross Country Team, from the

         3       opening event of the season to participation

         4       in the championship, were a sisterhood of

         5       athletic ability, of good sportsmanship, of

         6       honor and of scholarship, demonstrating that

         7       these team players are second to none; and

         8                  "WHEREAS, Athletically and

         9       academically, the team members have proven

        10       themselves to be an unbeatable combination of

        11       talents, reflecting favorably on their school;

        12       and

        13                  "WHEREAS, Coach Mike Szczepanik

        14       Sports has done a superb job in guiding,

        15       molding and inspiring the team members toward

        16       their goals; and

        17                  "WHEREAS, Sports competition

        18       instills the values of teamwork, pride and

        19       accomplishment, and Coach Mike Szczepanik,

        20       Assistant Coach Jeff Merkel and these

        21       outstanding athletes have clearly made a

        22       contribution to the spirit of excellence which

        23       is a tradition of their school; now,

        24       therefore, be it

        25                  "RESOLVED, That this Legislative


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         1       Body pause in its deliberations to

         2       congratulate the Hilton Girls Cross Country

         3       Team, its members -- Amanda Griggs, Caileen

         4       Childs, Nicole Griffiths, Allison Sawyer,

         5       Caroline Schultz, Shelby Herman, Ashley Jones,

         6       Erin Pratt, Teresa Buechel, Kristen Campbell,

         7       Ashlea Keene, Hillary O'Sullivan, and Rebecca

         8       Smarcz -- and Coach Mike Szczepanik on their

         9       outstanding season and overall team record;

        10       and be it further

        11                  "RESOLVED, That copies of this

        12       resolution, suitably engrossed, be transmitted

        13       to the Hilton Girls Cross Country Team and to

        14       Coach Mike Szczepanik."

        15                  ACTING PRESIDENT WRIGHT:    Senator

        16       Robach, on the resolution.

        17                  SENATOR ROBACH:    Yes,

        18       Mr. President, if I could just rise to say how

        19       delighted I am to have the girls, their coach,

        20       some of their parents here joining us today.

        21                  This really was quite an

        22       accomplishment.  I've been here for four years

        23       now, and we've had a lot of great young people

        24       through this chamber for different

        25       accomplishments, but this is my first one of


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         1       national caliber.  And we're delighted to have

         2       them here.

         3                  In addition to overcoming

         4       successfully these rainy conditions, that cool

         5       track, and winning, they have really excited

         6       the entire community of Hilton.  They are

         7       great, great kids.  I think they have a

         8       cumulative average of 3.7 in addition to their

         9       great athleticism.  Their work ethic, their

        10       personalities are just wonderful.

        11                  And I am so proud and privileged to

        12       represent them.  I am glad they're here today

        13       to do this.  You know, the only thing I can

        14       say is not only do they represent Hilton very

        15       well, New York State and its national

        16       championship of 20 other schools qualifying, I

        17       think they really epitomize everything a young

        18       student athlete should be, both in terms of

        19       attitude and accomplishment.

        20                  And I am really delighted again to

        21       recognize them, put this in the record so they

        22       can come back here with their kids,

        23       highlighting their record here in New York

        24       State.

        25                  And I would say, though he's not on


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         1       the floor, the only other team that made this

         2       national tournament from New York was

         3       Saratoga, which is represented by another

         4       Senator named Joe.  But I want you to know

         5       that Joe Robach's girls there won this for

         6       Rochester and us.  And I'm not going to let

         7       the Majority Leader forget that either.

         8                  If I could just take one minute,

         9       since the girls came down here for this.  If I

        10       could ask them to stand very quickly.  We

        11       having Amanda Griggs, Caileen Childs, Nicole

        12       Griffiths, Allison Sawyer, Caroline Schultz,

        13       Shelby Herman, Ashley Jones, Erin Pratt,

        14       Teresa Buechel, Kristen Campbell, Ashlea

        15       Keene, Hillary O'Sullivan, and Rebecca Smarcz.

        16       You've already been introduced or talked

        17       about:  Coach Szczepanik and Coach Merkel.

        18                  Ladies, congratulations.  Great

        19       job.  Thanks for being with us here today in

        20       the Capitol.

        21                  (Applause.)

        22                  ACTING PRESIDENT WRIGHT:    Senator

        23       Maziarz, on the resolution.

        24                  SENATOR MAZIARZ:    Thank you very

        25       much, Mr. President.


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         1                  I want to add my congratulations

         2       along with Senator Robach.  Up until a few

         3       years ago, I represented the Hilton School

         4       District and the town of Parma and the western

         5       part of Monroe County.

         6                  And these champions are truly, as

         7       Senator Robach pointed out, they're not only

         8       great athletes but great students too, and

         9       that's really important.

        10                  And I want to welcome them to

        11       Albany, and their coaches, and offer my

        12       personal congratulations and the

        13       congratulations of all of us.

        14                  Many times here we see state

        15       champions every year, but very rarely do we

        16       get national champions here.  And to achieve

        17       that great milestone at so young in life is a

        18       real tribute to you, to your coaches, and

        19       mostly to your parents.

        20                  Thank you, Mr. President.

        21                  ACTING PRESIDENT WRIGHT:    On the

        22       resolution, all those in favor signify by

        23       saying aye.

        24                  (Response of "Aye.")

        25                  ACTING PRESIDENT WRIGHT:


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         1       Opposed, nay.

         2                  (No response.)

         3                  ACTING PRESIDENT WRIGHT:    The

         4       resolution is adopted.

         5                  On behalf of Senator Bruno and all

         6       of the members of the New York State Senate,

         7       please accept our congratulations and

         8       appreciation for your visit to the Capitol and

         9       your representation of the State of New York.

        10       Best of luck.

        11                  Senator Skelos.

        12                  SENATOR SKELOS:    Mr. President,

        13       there will be an immediate meeting of the

        14       Rules Committee in the Majority Conference

        15       Room.

        16                  ACTING PRESIDENT WRIGHT:    There

        17       will be an immediate meeting of the Rules

        18       Committee in the Majority Conference Room.

        19                  SENATOR SKELOS:    If we could

        20       stand at ease.

        21                  ACTING PRESIDENT WRIGHT:    The

        22       Senate will stand at ease.

        23                  (Whereupon, the Senate stood at

        24       ease at 3:15 p.m.)

        25                  (Whereupon, the Senate reconvened


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         1       at 3:23 p.m.)

         2                  ACTING PRESIDENT WRIGHT:    Senator

         3       Fuschillo.

         4                  SENATOR FUSCHILLO:     Mr.

         5       President, may we please return to the reports

         6       of standing committees.  I believe there's a

         7       report of the Rules Committee at the desk.

         8                  ACTING PRESIDENT WRIGHT:    The

         9       Secretary will read.

        10                  THE SECRETARY:    Senator Bruno,

        11       from the Committee on Rules, reports the

        12       following bill direct to third reading:

        13                  Senate Print 7909, by Senator

        14       Wright, an act to amend the Tax Law.

        15                  ACTING PRESIDENT WRIGHT:    Senator

        16       Fuschillo.

        17                  SENATOR FUSCHILLO:    Mr.

        18       President, I move to accept the report of

        19       Rules Committee.

        20                  ACTING PRESIDENT WRIGHT:    All in

        21       favor of accepting the report please signify

        22       by saying aye.

        23                  (Response of "Aye.")

        24                  ACTING PRESIDENT WRIGHT:

        25       Opposed, nay.


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         1                  (No response.)

         2                  ACTING PRESIDENT WRIGHT:    The

         3       report is accepted.

         4                  Senator Fuschillo.

         5                  SENATOR FUSCHILLO:    Mr.

         6       President, may we please have the reading of

         7       the noncontroversial calendar.

         8                  ACTING PRESIDENT WRIGHT:    The

         9       Secretary will read.

        10                  THE SECRETARY:    Calendar Number

        11       432, by Senator Maziarz, Senate Print 5849B,

        12       an act to amend the Parks, Recreation and

        13       Historic Preservation Law.

        14                  ACTING PRESIDENT WRIGHT:    Read

        15       the last section.

        16                  THE SECRETARY:    Section 4.  This

        17       act shall take effect immediately.

        18                  ACTING PRESIDENT WRIGHT:    Call

        19       the roll.

        20                  (The Secretary called the roll.)

        21                  THE SECRETARY:    Ayes, 55.

        22                  ACTING PRESIDENT WRIGHT:    The

        23       bill is passed.

        24                  THE SECRETARY:    Calendar Number

        25       577, by Senator Maltese, Senate Print 101, an


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         1       act to amend the Real Property Tax Law.

         2                  ACTING PRESIDENT WRIGHT:    Read

         3       the last section.

         4                  THE SECRETARY:    Section 2.  This

         5       act shall take effect June 1, 2007.

         6                  ACTING PRESIDENT WRIGHT:    Call

         7       the roll.

         8                  (The Secretary called the roll.)

         9                  THE SECRETARY:    Ayes, 55.

        10                  ACTING PRESIDENT WRIGHT:    The

        11       bill is passed.

        12                  THE SECRETARY:    Calendar Number

        13       750, by Senator Spano, Senate Print 7316A, an

        14       act to amend the Labor Law.

        15                  ACTING PRESIDENT WRIGHT:    Read

        16       the last section.

        17                  THE SECRETARY:    Section 2.  This

        18       act shall take effect immediately.

        19                  ACTING PRESIDENT WRIGHT:    Call

        20       the roll.

        21                  (The Secretary called the roll.)

        22                  THE SECRETARY:    Ayes, 55.

        23                  ACTING PRESIDENT WRIGHT:    The

        24       bill is passed.

        25                  THE SECRETARY:    Calendar Number


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         1       753, by Senator Maziarz, Senate Print 7321A,

         2       an act to amend the Labor Law.

         3                  ACTING PRESIDENT WRIGHT:    Read

         4       the last section.

         5                  THE SECRETARY:    Section 2.  This

         6       act shall take effect on the first of

         7       November.

         8                  ACTING PRESIDENT WRIGHT:    Call

         9       the roll.

        10                  (The Secretary called the roll.)

        11                  THE SECRETARY:    Ayes, 56.

        12                  ACTING PRESIDENT WRIGHT:    The

        13       bill is passed.

        14                  THE SECRETARY:    Calendar Number

        15       788, by Senator Marcellino, Senate Print 6862,

        16       an act to authorize.

        17                  ACTING PRESIDENT WRIGHT:    Read

        18       the last section.

        19                  THE SECRETARY:    Section 2.  This

        20       act shall take effect immediately.

        21                  ACTING PRESIDENT WRIGHT:    Call

        22       the roll.

        23                  (The Secretary called the roll.)

        24                  THE SECRETARY:    Ayes, 53.  Nays,

        25       2.  Senators Bonacic and Larkin recorded in


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         1       the negative.

         2                  ACTING PRESIDENT WRIGHT:    The

         3       bill is passed.

         4                  THE SECRETARY:    Calendar Number

         5       841, by Senator Little, Senate Print 7347, an

         6       act to amend the Civil Service Law.

         7                  ACTING PRESIDENT WRIGHT:    Read

         8       the last section.

         9                  THE SECRETARY:    Section 4.  This

        10       act shall take effect immediately.

        11                  ACTING PRESIDENT WRIGHT:    Call

        12       the roll.

        13                  (The Secretary called the roll.)

        14                  THE SECRETARY:    Ayes, 56.

        15                  ACTING PRESIDENT WRIGHT:    The

        16       bill is passed.

        17                  THE SECRETARY:    Calendar Number

        18       842, by Senator Larkin, Senate Print 7355, an

        19       act to amend the Retirement and Social

        20       Security Law, and others.

        21                  ACTING PRESIDENT WRIGHT:    Read

        22       the last section.

        23                  THE SECRETARY:    Section 9.  This

        24       act shall take effect immediately.

        25                  ACTING PRESIDENT WRIGHT:    Call


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         1       the roll.

         2                  (The Secretary called the roll.)

         3                  ACTING PRESIDENT WRIGHT:    Senator

         4       Duane.

         5                  SENATOR DUANE:    Thank you,

         6       Mr. President.

         7                  I'm going to vote for this bill,

         8       which provides a disability retirement benefit

         9       for those veterans injured in combat.  It's a

        10       very good bill.

        11                  But it does remind me that many

        12       New Yorkers, including veterans, suffer from

        13       posttraumatic stress disorder.  And because we

        14       don't have Timothy's Law, they are unable to

        15       get help for this psychological problem.

        16                  So it's vital that we pass

        17       Timothy's Law this session, and I don't

        18       understand why we're not doing it.  And so

        19       while I'm voting yes on this bill, I'm hopeful

        20       that in the very near future we will have

        21       Timothy's Law on the floor of the Senate and

        22       be able to vote for it.

        23                  Thank you, Mr. President.

        24                  ACTING PRESIDENT WRIGHT:    Senator

        25       Duane recorded in the affirmative.


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         1                  Report the results.

         2                  THE SECRETARY:    Ayes, 56.

         3                  ACTING PRESIDENT WRIGHT:    The

         4       bill is passed.

         5                  THE SECRETARY:    Calendar Number

         6       909, by Senator Volker, Senate Print 7147, an

         7       act to amend the Criminal Procedure Law.

         8                  ACTING PRESIDENT WRIGHT:    Read

         9       the last section.

        10                  THE SECRETARY:    Section 2.  This

        11       act shall take effect immediately.

        12                  ACTING PRESIDENT WRIGHT:    Call

        13       the roll.

        14                  (The Secretary called the roll.)

        15                  THE SECRETARY:    Ayes, 55.  Nays,

        16       1.  Senator Duane recorded in the negative.

        17                  ACTING PRESIDENT WRIGHT:    The

        18       bill is passed.

        19                  THE SECRETARY:    Calendar Number

        20       913, by Senator Little, Senate Print 7346, an

        21       act to amend the Criminal Procedure Law.

        22                  ACTING PRESIDENT WRIGHT:    Read

        23       the last section.

        24                  THE SECRETARY:    Section 3.  This

        25       act shall take effect immediately.


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         1                  ACTING PRESIDENT WRIGHT:    Call

         2       the roll.

         3                  (The Secretary called the roll.)

         4                  THE SECRETARY:    Ayes, 55.  Nays,

         5       2.  Senators Duane and L. Krueger recorded in

         6       the negative.

         7                  ACTING PRESIDENT WRIGHT:    The

         8       bill is passed.

         9                  THE SECRETARY:    Calendar Number

        10       916, by Senator Balboni, Senate Print 178A, an

        11       act relating to the procurement process of

        12       homeland-security-related goods and services.

        13                  ACTING PRESIDENT WRIGHT:    Read

        14       the last section.

        15                  THE SECRETARY:    Section 2.  This

        16       act shall take effect immediately.

        17                  ACTING PRESIDENT WRIGHT:    Call

        18       the roll.

        19                  (The Secretary called the roll.)

        20                  THE SECRETARY:    Ayes, 57.

        21                  ACTING PRESIDENT WRIGHT:    The

        22       bill is passed.

        23                  THE SECRETARY:    Calendar Number

        24       918, substituted earlier today by Member of

        25       the Assembly Towns, Assembly Print Number


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         1       2747, an act to amend the Real Property Tax

         2       Law.

         3                  ACTING PRESIDENT WRIGHT:    Read

         4       the last section.

         5                  THE SECRETARY:    Section 2.  This

         6       act shall take effect on the first of January

         7       next succeeding.

         8                  ACTING PRESIDENT WRIGHT:    Call

         9       the roll.

        10                  (The Secretary called the roll.)

        11                  THE SECRETARY:    Ayes, 57.

        12                  ACTING PRESIDENT WRIGHT:    The

        13       bill is passed.

        14                  THE SECRETARY:    Calendar Number

        15       951, by Senator Wright, Senate Print 7520, an

        16       act to amend the Tax Law.

        17                  ACTING PRESIDENT WRIGHT:    Read

        18       the last section.

        19                  THE SECRETARY:    Section 2.  This

        20       act shall take effect immediately.

        21                  ACTING PRESIDENT WRIGHT:    Call

        22       the roll.

        23                  (The Secretary called the roll.)

        24                  THE SECRETARY:    Ayes, 57.

        25                  ACTING PRESIDENT WRIGHT:    The


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         1       bill is passed.

         2                  THE SECRETARY:    Calendar Number

         3       959, by Senator Bonacic, Senate Print 7298, an

         4       act in relation to building aid payable.

         5                  ACTING PRESIDENT WRIGHT:    Read

         6       the last section.

         7                  THE SECRETARY:    Section 2.  This

         8       act shall take effect immediately.

         9                  ACTING PRESIDENT WRIGHT:    Call

        10       the roll.

        11                  (The Secretary called the roll.)

        12                  THE SECRETARY:    Ayes, 57.

        13                  ACTING PRESIDENT WRIGHT:    The

        14       bill is passed.

        15                  THE SECRETARY:    Calendar Number

        16       965, by Senator Nozzolio, Senate Print 505, an

        17       act to amend the General Municipal Law.

        18                  ACTING PRESIDENT WRIGHT:    There

        19       is a home-rule message at the desk.

        20                  Read the last section.

        21                  THE SECRETARY:    Section 4.  This

        22       act shall take effect immediately.

        23                  ACTING PRESIDENT WRIGHT:    Call

        24       the roll.

        25                  (The Secretary called the roll.)


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         1                  THE SECRETARY:    Ayes, 56.  Nays,

         2       1.  Senator Duane recorded in the negative.

         3                  ACTING PRESIDENT WRIGHT:    The

         4       bill is passed.

         5                  THE SECRETARY:    Calendar Number

         6       975, by Senator Farley, Senate Print 6966, an

         7       act to amend the County Law.

         8                  ACTING PRESIDENT WRIGHT:    There

         9       is a local fiscal impact note at the desk.

        10                  Read the last section.

        11                  THE SECRETARY:    Section 2.  This

        12       act shall take effect immediately.

        13                  ACTING PRESIDENT WRIGHT:    Call

        14       the roll.

        15                  (The Secretary called the roll.)

        16                  THE SECRETARY:    Ayes, 57.

        17                  ACTING PRESIDENT WRIGHT:    The

        18       bill is passed.

        19                  THE SECRETARY:    Calendar Number

        20       980, by Senator Saland, Senate Print 7238, an

        21       act in relation to creating the East Fishkill

        22       Public Library District.

        23                  ACTING PRESIDENT WRIGHT:    Read

        24       the last section.

        25                  THE SECRETARY:    Section 8.  This


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         1       act shall take effect immediately.

         2                  ACTING PRESIDENT WRIGHT:    Call

         3       the roll.

         4                  (The Secretary called the roll.)

         5                  THE SECRETARY:    Ayes, 57.

         6                  ACTING PRESIDENT WRIGHT:    The

         7       bill is passed.

         8                  THE SECRETARY:    Calendar Number

         9       1003, by Senator Balboni, Senate Print 6822,

        10       an act to amend the Waterfront Commission Act.

        11                  ACTING PRESIDENT WRIGHT:    Read

        12       the last section.

        13                  THE SECRETARY:    Section 5.  This

        14       act shall take effect upon enactment into law

        15       by the State of New Jersey legislation

        16       identical.

        17                  ACTING PRESIDENT WRIGHT:    Call

        18       the roll.

        19                  (The Secretary called the roll.)

        20                  ACTING PRESIDENT WRIGHT:    Senator

        21       Balboni, to explain his vote.

        22                  SENATOR BALBONI:    Yes,

        23       Mr. President.

        24                  This is the first of several

        25       measures that this house will be considering


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         1       dealing with port security.

         2                  After the Dubai Ports World

         3       controversy, we did a bunch of studies and

         4       investigations as to how the port security

         5       actually worked.  And what we found out is

         6       that the Waterfront Commission that handles

         7       one-third of the security concerns at the port

         8       had insufficient capabilities when it came to

         9       determining who should be licensed and who

        10       should not in terms of the operation of the

        11       port.

        12                  And what we found out is that

        13       New Jersey has already passed this bill, and

        14       it is waiting for us to get our act together

        15       and pass the same bill, which would give the

        16       Waterfront Commission the ability to prevent

        17       someone from getting a license if they have

        18       any connection to terrorist groups.

        19                  I believe this is a very good step

        20       towards security, and I'm hopeful that the

        21       Assembly will join us and make sure that this

        22       becomes law for both states.

        23                  I vote aye, Mr. President.  Thank

        24       you.

        25                  ACTING PRESIDENT WRIGHT:    Senator


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         1       Balboni will be recorded in the affirmative.

         2                  Report the results.

         3                  THE SECRETARY:    Ayes, 57.

         4                  ACTING PRESIDENT WRIGHT:    The

         5       bill is passed.

         6                  THE SECRETARY:    Calendar Number

         7       1004, by Senator Padavan, Senate Print 7109,

         8       an act to amend the Waterfront Commission Act.

         9                  ACTING PRESIDENT WRIGHT:    Read

        10       the last section.

        11                  THE SECRETARY:    Section 6.  This

        12       act shall take effect upon the enactment into

        13       law by the State of New Jersey identical

        14       legislation.

        15                  ACTING PRESIDENT WRIGHT:    Call

        16       the roll.

        17                  (The Secretary called the roll.)

        18                  THE SECRETARY:    Ayes, 57.

        19                  ACTING PRESIDENT WRIGHT:    The

        20       bill is passed.

        21                  THE SECRETARY:    Calendar Number

        22       1005, by Senator Leibell, Senate Print 7181,

        23       an act to amend the Waterfront Commission Act.

        24                  ACTING PRESIDENT WRIGHT:    Read

        25       the last section.


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         1                  THE SECRETARY:    Section 8.  This

         2       act shall take effect upon the enactment into

         3       law by the State of New Jersey identical

         4       legislation.

         5                  ACTING PRESIDENT WRIGHT:    Call

         6       the roll.

         7                  (The Secretary called the roll.)

         8                  THE SECRETARY:    Ayes, 57.

         9                  ACTING PRESIDENT WRIGHT:    The

        10       bill is passed.

        11                  THE SECRETARY:    Calendar Number

        12       1016, by Senator Wright, Senate Print 7909, an

        13       act to amend the --

        14                  SENATOR SAVINO:    Lay it aside.

        15                  ACTING PRESIDENT WRIGHT:    The

        16       bill is laid aside.

        17                  That completes the noncontroversial

        18       reading of the calendar.

        19                  ACTING PRESIDENT MORAHAN:

        20       Senator Fuschillo.

        21                  SENATOR FUSCHILLO:    Mr.

        22       President, may we please have the

        23       controversial reading of the calendar at this

        24       time.

        25                  ACTING PRESIDENT MORAHAN:    The


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         1       Secretary will read.

         2                  THE SECRETARY:    Calendar Number

         3       1016, by Senator Wright, Senate Print 7909, an

         4       act to amend the Tax Law.

         5                  SENATOR SAVINO:    Explanation.

         6                  ACTING PRESIDENT MORAHAN:

         7       Senator Wright, an explanation has been

         8       requested.

         9                  SENATOR WRIGHT:    Thank you,

        10       Mr. President.

        11                  SENATOR BRUNO:    Before us this

        12       afternoon we have historic comprehensive

        13       energy legislation that, first of all, begins

        14       by reducing the sales tax on gasoline.

        15                  This is a bill that was -- the

        16       concept was first introduced this past fall by

        17       my colleague Senator Robach, has been before

        18       this house on several occasions, and has been

        19       adopted by this house.  We have now reached an

        20       agreement with the Assembly so that we can

        21       move forward.

        22                  So the cornerstone of this bill

        23       this afternoon is to reduce the sales tax, cap

        24       it at a flat tax of 8 cents against a $2

        25       threshold, which was the capped amount that we


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         1       had targeted and believe most local budgets

         2       are predicated on.  It not only diminishes the

         3       increasing effect of sales tax, it also

         4       discontinues the practice of a tax upon a tax,

         5       which is a unique aspect of sales tax as it

         6       relates to gasoline.

         7                  We've all recognized that in

         8       previous debates on this floor we've spent a

         9       great deal of time talking about the global

        10       economy, the adverse affects of escalating gas

        11       prices and how that has hurt New Yorkers, the

        12       working men and women of this state, and the

        13       economy of this state.  We have also very

        14       consciously recognized the limited impact that

        15       the State of New York can make on those

        16       gasoline taxes, that being the tax aspect of

        17       that gas price.

        18                  So we have gone a long way this

        19       afternoon, by reaching agreement, to reduce

        20       that tax by one-third, then cap it, and then

        21       make it a flat tax as we go forward.  That, I

        22       believe, is historic in the history of sales

        23       tax as it relates to gasoline and is important

        24       assistance to the taxpayers of this state.

        25                  Furthermore, the bill contains


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         1       several additional elements, one at the behest

         2       and advance and sponsorship of my colleague,

         3       Senator Padavan, authorizing the City of

         4       New York to provide relief to its residents by

         5       eliminating the -- or reducing the sales tax

         6       on residential heating fuels.  This authorizes

         7       the city to do that.  It would certainly

         8       provide much-needed relief to many New Yorkers

         9       and is a relief that is currently being

        10       enjoyed by numerous residents across the state

        11       in other counties.

        12                  The bill further goes on to create

        13       a personal income tax credit for the

        14       replacement of home heating systems that are

        15       Energy Star-compliant, the intent being to

        16       foster a use of energy efficiency, greater

        17       conservation, and thereby ensuring long-term

        18       benefits and implementing a long-term policy

        19       that blends reduction of taxes with

        20       renewables, with energy efficiency and

        21       conservation.

        22                  A fourth piece provides that

        23       consumers will receive personal income tax

        24       credits for the purchase of home heating fuel

        25       that contains biodiesel.  It establishes a


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         1       formula by law that incentivizes the

         2       utilization of biodiesel; again, a long-term

         3       aspect of our energy policy.

         4                  And the last piece requires that

         5       the State Thruway Authority and NYSERDA

         6       develop a plan by the end of this calendar

         7       year to make alternative fuels, such as

         8       ethanol, available at Thruway service areas.

         9                  When you look back at what started

        10       in the fall of this year under the leadership

        11       of Senator Bruno, and a number of energy

        12       initiatives that were advanced at that time

        13       and adopted with bipartisan support in this

        14       house, they have now in many instances become

        15       law, either through actions of this house,

        16       through the budget, or actions today.

        17                  So we look forward to advancing

        18       this bill, making it law and completing the

        19       process that we began last fall.

        20                  Thank you, Mr. President.

        21                  ACTING PRESIDENT MORAHAN:    Thank

        22       you, Senator Wright.

        23                  Senator Sabini.

        24                  SENATOR SABINI:    Mr. President, I

        25       believe there's an amendment at the desk.  I


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         1       ask that the reading be waived and I be

         2       allowed to be heard on the amendment.

         3                  ACTING PRESIDENT MORAHAN:

         4       Reading of the amendment is waived and,

         5       Senator Sabini, you may be heard on the

         6       amendment.

         7                  SENATOR SABINI:    Thank you,

         8       Mr. President.

         9                  What we do today is a good first

        10       step in this bill.  It's a step that we

        11       offered to take last fall.  But it's really a

        12       Band-Aid approach to what is, as I hope we all

        13       recognize, a much larger problem.

        14                  And that is the problem of

        15       increasing prices of fossil fuel, lessening

        16       supply, the fact that it's a global economy,

        17       that we all are affected, our gas prices are

        18       affected by the fact that the nations of China

        19       and India, two major powers in the world, are

        20       at the point in their auto economy where the

        21       United States was 60 or 70 years ago and

        22       they're catching up at a quick rate.

        23                  So our discussion here shouldn't be

        24       just about short-term political gain.  We

        25       understand that the public is appalled at the


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         1       price of gas.  It's even higher in Europe, $6

         2       a gallon in London.  The reality is that we

         3       need to get a comprehensive plan afoot.

         4                  And while putting a cap on the tax

         5       on gasoline by the gallon is a good thing, and

         6       I intend to support it, I think we can do

         7       better.  And we can establish, in effect, a

         8       Marshall Plan for energy independence within

         9       New York State by New York State.  So I offer

        10       an amendment which is in the form of Senator

        11       Parker's legislation, the "State Workforce

        12       Fuel Reduction and Conservation Act."

        13                  Americans consume six times the

        14       world average in energy consumption per year.

        15       We're the third most populous state in this

        16       union, containing 15 percent of the population

        17       of our country.  So New York is a big user of

        18       energy, and New Yorkers are big users of

        19       energy.

        20                  We can make choices every day and

        21       every minute of the day to make things better

        22       for everyone -- turning machines off when not

        23       in use, buying energy efficient appliances,

        24       consumption conservation measures that we can

        25       use, doing sustainable energy measures that we


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         1       can do.  But most of all, what this bill can

         2       do is to offer the advice of "Physician, heal

         3       thyself":  We can direct the State of New

         4       York, through this amendment, to get its own

         5       energy house in order.

         6                  New York's agencies and authorities

         7       annually consume 50 million gallons of diesel

         8       fuel and 55 million gallons of heating oil a

         9       year.  Our state's workforce numbers 160,000.

        10       Because the average American uses 500 gallons

        11       of gasoline each year, driving about

        12       12,000 miles on average, at $3 per gallon,

        13       that's $1500 a year in fuel cost per worker.

        14       That needs to go down.

        15                  We should address things like

        16       nonessential driving by state employees.  We

        17       should lessen the state use of SUVs.  These

        18       things could be done by executive order today

        19       if the Governor wanted to.  And although there

        20       have been modest efforts by the administration

        21       to enact by executive orders some

        22       energy-efficient standards for state buildings

        23       and vehicles, there really hasn't been the

        24       leadership we need.

        25                  This legislation aims to do that.


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         1       Implementing a strategy of conservation and

         2       efficiency measures, backed by strong

         3       educational components, outlined in this

         4       amendment will be an effective strategy.

         5                  We have to curtail our dependence

         6       on foreign oil, making historic strides in

         7       improving our environmental quality and

         8       reducing our energy consumption.  Here are

         9       some bullet-point things that this amendment

        10       will address.

        11                  It directs OGS to review the

        12       state's vehicular fleet as well as the use of

        13       that fleet to determine whether

        14       alternative-fuel vehicles can be used and

        15       whether trip reduction can be used to reduce

        16       gasoline consumption.

        17                  The amendment would direct OGS to

        18       develop and properly promote a comprehensive

        19       car pooling program.  It would direct all the

        20       state agencies to perform fuel-efficient

        21       audits of their own transportation systems and

        22       fleets.  It would authorize agencies to

        23       implement commuter-trip reduction programs

        24       that would encourage employees who drive alone

        25       to work to consider using alternative


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         1       commuting modes such as carpool, mass transit,

         2       biking or even walking.  And it would

         3       authorize agencies and authorities to permit

         4       alternative work schedules, telecommuting or

         5       other ways to save gasoline consumption.

         6                  It would direct the DMV to develop

         7       programs to educate the driving public on

         8       conservation techniques and would direct on

         9       OGS to develop a plan to reimburse state

        10       employees for their mass transit costs.

        11                  The best way to work our way out of

        12       this energy crisis is through a concentrated

        13       effort by everyone -- individuals, state

        14       government, all of us.  Let's make New York a

        15       leader on this issue and support a state

        16       conservation program that would be in addition

        17       to the pennies we're going to save people,

        18       which is good, but I think none of us really

        19       believe that that measure is going to actually

        20       help solve New York's gasoline crisis.

        21                  So I urge a yes vote on the

        22       amendment and thank Senator Parker for his

        23       work on this bill, and I urge my colleagues to

        24       consider the amendment seriously and vote yes.

        25                  Thank you.


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         1                  ACTING PRESIDENT MORAHAN:    On the

         2       amendment, those Senators in agreement please

         3       signify by raising your hands.

         4                  THE SECRETARY:    Those recorded in

         5       agreement are Senators Andrews, Breslin,

         6       Connor, Coppola, Diaz, Dilan, Duane, Gonzalez,

         7       Klein, L. Krueger, C. Kruger, Montgomery,

         8       Onorato, Oppenheimer, Paterson, Sabini,

         9       Savino, Schneiderman, Serrano, A. Smith,

        10       Stachowski, Stavisky, and Valesky.

        11                  ACTING PRESIDENT MORAHAN:    The

        12       amendment is not agreed to.

        13                  Senator Robach.

        14                  SENATOR ROBACH:    Yes,

        15       Mr. President.  I rise to support this bill.

        16                  And I want to really applaud

        17       Senator Wright, the Energy chairman, Senator

        18       Padavan, Senator Bruno for making a bill I

        19       think that focused exclusively on just capping

        20       the gas tax originally, expanding that and

        21       even making it better.  Including some of

        22       these other components is going to definitely

        23       help the overburdened men and women, working

        24       men and women of this state, overburdened

        25       taxpayers here.  And I think that's exactly


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         1       what they're asking for.

         2                  Passing the bill last year on

         3       capping the gas tax and taking that lead role,

         4       I know -- whether it's been online petitions,

         5       any press events that we've had -- when people

         6       have been interviewed, overwhelmingly the

         7       public in New York has said they want some

         8       relief.  And while no one is opposed to

         9       long-range plans, we have to do what we can do

        10       today.  And sometimes a Band-Aid is better

        11       than just letting it bleed.

        12                  And so I'm very, very happy that

        13       we're today, that this house, through

        14       aggressive action, driving this issue, trying

        15       to save people, whatever it be at the pump and

        16       other places of energy, we are going to be

        17       able to get agreement with the other side and

        18       really give them some degree, some relief, I

        19       think is very, very meaningful, very, very

        20       important.

        21                  Again, other organizations -- AAA

        22       has had petitions, and it has been

        23       overwhelmingly supported by people all across

        24       this state, young and old, urban, suburban,

        25       you name it.  So I think this is a good day


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         1       not only for the policy of giving something

         2       back but, more importantly, that by us driving

         3       it in this house and the public speaking up,

         4       we now have agreement in both houses.

         5                  And I want to applaud all involved.

         6       You know, again, not to sound too elemental,

         7       I'd say this is a populist move.  And there's

         8       nothing wrong with us being populist; that's

         9       who we serve, the people we represent.  And

        10       I've heard loud and clearly, being the prime

        11       sponsor of that gas cap bill, even from people

        12       in other people's districts, how much they

        13       want that.  Today we're getting it done.

        14                  And I proudly cast my vote in the

        15       affirmative and encourage others to do so as

        16       well.

        17                  ACTING PRESIDENT MORAHAN:

        18       Senator Robach will be recorded in the

        19       affirmative.

        20                  Senator Padavan.

        21                  SENATOR PADAVAN:    Thank you,

        22       Mr. President.

        23                  First, let me thank Senator Wright

        24       for his leadership and all of those who were

        25       involved in the development of this


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         1       legislation and negotiations with the Assembly

         2       to bring it to a point of fruition that we're

         3       dealing with today.

         4                  First let me comment on some of the

         5       things we heard in the course of the amendment

         6       that was proposed.

         7                  I would remind the members of this

         8       house that this state and this Senate has

         9       taken the leadership, time and time again, as

        10       it relates to developing alternative means of

        11       generating power and energy:  stimulation of

        12       wind energy, hydroenergy, all ways of

        13       developing alternative sources of fuel other

        14       than fossil fuel.  Which, was pointed out, is

        15       our major problem, since it's an international

        16       issue.

        17                  But even in this bill we go even

        18       further.  I draw your attention to those

        19       portions of it that deal with alternative fuel

        20       credits, technology credits, developing

        21       alternative and better means of creating

        22       energy.

        23                  Green building credit; buildings

        24       that grow grass and other types of plants on

        25       their roofs to not only keep away heat but


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         1       also to reduce the need for air-conditioning.

         2                  Qualifying emerging technology

         3       credits.  Credit for qualified fuel cell,

         4       electric generating equipment, biofuel

         5       production, and clean heating fuel credits.

         6                  All of these things are in this

         7       bill.  So we're going even a step further,

         8       perhaps many steps further in terms of dealing

         9       with the broader issue of conservation and

        10       developing alternative fuels.

        11                  But I also want to talk about one

        12       item that Senator Wright did mention, and that

        13       relates to home heating fuel.  Thirty-seven

        14       counties in New York State followed suit,

        15       meaning did what we as a state did, in

        16       eliminating the sales tax on home heating

        17       fuel.  Several others have reduced their local

        18       sales tax.

        19                  The one major taxer is the City of

        20       New York.  And if you go back in time to the

        21       creation of the Emergency Financial Control

        22       Board and other restrictions that were placed

        23       on the city, the sales tax was committed to

        24       pay off bonds.  Well, that is no longer

        25       necessary.


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         1                  And if you look at your home

         2       heating fuel, those of us in the city and

         3       elsewhere, mine has doubled.  I have oil in my

         4       home.  It has doubled in recent years.  And

         5       that sales tax that the city continues to

         6       apply was a windfall, is a windfall.

         7                  Now, what this bill allows the city

         8       to do is to follow suit with all the other

         9       counties throughout New York State and

        10       eliminate the local sales tax, which is a

        11       substantial savings to homeowners and co-op

        12       dwellers and others in the City of New York.

        13                  Now, those of us in the city have a

        14       chore ahead of us.  This is an authorization.

        15       We now have to get after our respective city

        16       councilmen and -women, and the mayor, to

        17       implement it.  And there's going to be some

        18       resistance to do that.  It has been a

        19       windfall, and we know the city has a surplus

        20       as a result of that windfall.

        21                  Just think of the millions and

        22       millions of dollars collected in sales taxes

        23       beyond that which were collected a couple of

        24       years ago, specifically related to home

        25       heating fuel.  That, I believe, is something


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         1       that should be returned to the homeowners and

         2       others who have been subjected to that tax.

         3       So we will have a job of convincing them to

         4       implement this authorization.

         5                  But this is the first step, and the

         6       most important one.  So again, Mr. President,

         7       I congratulate those who were involved in

         8       putting this all together and bringing us to

         9       the point that we're now at.  And I will be

        10       voting aye.

        11                  ACTING PRESIDENT MORAHAN:    Thank

        12       you, Senator Padavan.  You will be recorded in

        13       the affirmative.

        14                  Senator Marcellino.

        15                  SENATOR MARCELLINO:    Thank you,

        16       Mr. President.

        17                  I too would like to thank my

        18       colleagues Senator Wright, Senator Robach,

        19       Senator Padavan, and Senator Bruno for his

        20       leadership in working out an arrangement with

        21       the other house so that we could be voting on

        22       this bill today, this very important bill

        23       today.

        24                  I also want to thank the many men

        25       and women throughout the state who sent emails


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         1       and letters and made phone calls to members of

         2       the other chamber and got them to come up with

         3       legislation after a year or so when this house

         4       had passed, at least two times, a bill that

         5       would have capped the tax on gasoline and

         6       provided much needed to relief to our

         7       hardworking and overburdened drivers in this

         8       state, a much-needed bill.  A lot of promises

         9       were made, a lot of rhetoric was given out,

        10       but no action on the other side until just

        11       recently, after the pressure was applied by

        12       the public, who said enough, enough is enough.

        13                  Gasoline prices have risen, have

        14       literally doubled -- more than doubled --

        15       since 2003.  But for a few lucky winners of

        16       the lottery, I don't know anybody in my

        17       district whose income has doubled in that same

        18       time frame.

        19                  This is a most difficult product.

        20       It is not a stand-alone product.  It's not

        21       like a head of cabbage, where you can make a

        22       choice -- the price of cabbage goes up, you

        23       make a decision whether or not to buy it.

        24                  Gasoline affects everything.  I

        25       live on Long Island; many of you live upstate,


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         1       in rural areas.  We need our cars.  They're

         2       not a luxury for us, they're a necessity.  We

         3       have no mass transit to speak of.  We're not

         4       the city.  We don't have subways and buses

         5       that we can rely upon.  We need our vehicles

         6       to get to and from school, to and from work,

         7       get our children to soccer games and all kinds

         8       of situations.

         9                  This is the most important thing.

        10       The price of milk is dependent upon the price

        11       of gasoline, because it's trucked in.

        12       Everything we have is trucked in to us in one

        13       way or another.  Even turning on the switch is

        14       dependent upon the price of oil to get

        15       electricity.  And as Senator Padavan rightly

        16       pointed out, home heating oil in the future,

        17       future months to come, it will get cold again

        18       soon, and we've got to address that too.

        19                  This bill takes major steps toward

        20       doing just that.  It deals with the present

        21       problems on gasoline.  It deals with the

        22       present pressure on the driving public and the

        23       middle class that doesn't have a lot of

        24       discretionary money to play with.  Their funds

        25       are being eaten up.  The average driver is


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         1       said to spend at least $5,000 a year on just

         2       gasoline.  That's a huge amount of money out

         3       of their income.

         4                  So we need to address that.  We

         5       need to give them relief.  But we also go to

         6       the future, as Senator Wright correctly

         7       pointed out.  We're looking to incentivize

         8       alternative fuels -- biodiesel to heat our

         9       homes, ethanol on the Thruway, in the gas

        10       stations, to fuel our vehicles.  We're looking

        11       to do many different things, including

        12       increasing conservation by providing a home

        13       heating oil tax credit so that anybody who

        14       changes their home heating system can get a

        15       tax credit for that too.

        16                  This is a good piece of

        17       legislation.  It deserves our support.  I call

        18       on now all of our county legislators

        19       throughout this state to come together and

        20       pass that tax on too.  This is not like the

        21       clothing tax.  This is significant.  We should

        22       be passing that on to our driving public and

        23       our constituents.

        24                  I also call upon the Governor to

        25       sign this bill as soon as he gets it.  That's


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         1       a most important thing.  Our taxpayers, the

         2       driving public, absolutely requires it -- no,

         3       I take that back.  They demand it.

         4                  Ladies and gentlemen, I vote aye.

         5       I urge everyone in the chamber to join me in

         6       that call.

         7                  Thank you very much, Mr. President.

         8                  ACTING PRESIDENT MORAHAN:    Thank

         9       you, Senator Marcellino.

        10                  Senator Alesi.

        11                  SENATOR ALESI:    Thank you,

        12       Mr. President.

        13                  First of all, I'd like to thank

        14       Senator Wright and Senator Robach and all

        15       others, and of course Senator Bruno for his

        16       leadership on this issue.

        17                  I'd like to speak, as my colleagues

        18       have, on the benefits to our consumers and our

        19       taxpayers who have been overburdened for far

        20       too long with taxes.

        21                  But I think that I'd also like to

        22       take this opportunity, as chairman of the

        23       Committee on Commerce and Economic Development

        24       and Small Business to point out that this is

        25       an absolutely crucial thing that this


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         1       Legislature can do for those small businesses

         2       and large businesses, in fact, that rely on

         3       transportation, that uses gasoline and pays

         4       sales tax on that gasoline.

         5                  Yes, it is a good thing for all of

         6       our consumers, for those people who have to

         7       drive to work, for those people that have to

         8       pick their children up at care centers and

         9       things of that nature.  But for every business

        10       that has a vehicle on the road that uses

        11       gasoline that has to pay sales tax, this is a

        12       very good thing for the economy of New York

        13       State.

        14                  And in terms of the savings that

        15       those businesses will enjoy, they will then

        16       pass on savings because they're lowering their

        17       cost of doing business.  So the consumers in

        18       this state are not only going to save money

        19       when they're purchasing gasoline, but

        20       hopefully they'll also save on goods and

        21       services that are purchasing from our

        22       businesses and small businesses in New York

        23       State.

        24                  And actually, that's the kind of

        25       thing that can improve the economy and drive


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         1       economic activity.  And it sends a powerful

         2       message to business that you can continue to

         3       rely on this Legislature to do good things.

         4       As we have shown with our tax cuts and

         5       incentives for business all across New York

         6       State, we want to help business in this state,

         7       we want to help retain and create jobs.

         8                  And we have heard this time and

         9       time again:  This is a tax cut?  Yes, it is.

        10       And tax cuts work.

        11                  ACTING PRESIDENT MORAHAN:    Thank

        12       you, Senator Alesi.

        13                  Senator Bonacic.

        14                  SENATOR BONACIC:    Thank you,

        15       Mr. President.

        16                  I too stand to thank Senator Bruno,

        17       Senator Wright, and my other colleagues in

        18       their leadership in passing this reduction in

        19       the gas tax.

        20                  You know, many constituents reached

        21       in and they were upset at the fast escalation

        22       of the way the prices jumped at the pump.

        23       They couldn't understand.  And they said:  Do

        24       something about it.  What can you do?  And I

        25       would try to be honest with them.  I'll say:


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         1       It's limited what we can do.  But we will do

         2       something that was in our control.

         3                  And we did that by reducing the

         4       sales tax 4 cents per gallon.  And if the

         5       county wants to follow our lead, they could

         6       double this benefit to our constituents who

         7       rely heavily on their car.

         8                  But if we're ever going to look for

         9       a solution to the energy crisis, it's much

        10       bigger than us here.  And it involves

        11       participation by the federal government, it

        12       involves having the oil industry more

        13       accountable if price gouging is going on, at

        14       the distributor level, at the retail level.

        15       And those that take advantage of volatility in

        16       the price should be punished severely.

        17                  Conservation.  We have to be more

        18       intelligent and change our habits.  And that

        19       is going to take time.  Because, let's face

        20       it, New Yorkers and Americans are in love with

        21       their cars.

        22                  So it requires so many different

        23       attacks to the problem.  And alternate energy

        24       of course is part of the solution, whether

        25       it's wind turbines, whether it's hydro.  And


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         1       you've heard all of the other technology

         2       that's out there.

         3                  But, and last but not least, I

         4       think the auto industry and the way they make

         5       the cars, we have to have hybrids that will

         6       increase the mileage per car.

         7                  But in conclusion, these are

         8       long-term solutions.  And I compliment my

         9       colleagues on the other side of the aisle that

        10       have raised some of these issues.

        11                  So we're not fooling ourselves

        12       here.  We know there is some benefit today

        13       because we're just trying to show we're trying

        14       to help.  But there's still pain out there.

        15       The price per gallon is still high.  And it's

        16       looking at all of these areas long-term.

        17       Hopefully we can have a real national energy

        18       policy and we can produce long-term savings to

        19       our consumers and our businesses.

        20                  Thank you very much, Mr. President.

        21       I vote aye.

        22                  ACTING PRESIDENT MORAHAN:    Thank

        23       you, Senator Bonacic.  You will be recorded in

        24       the affirmative.

        25                  Senator Connor.


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         1                  SENATOR CONNOR:    Thank you,

         2       Mr. President.

         3                  You know, I have this feeling that

         4       I am part of a Legislature and that we as a

         5       Legislature are standing in front of a

         6       stampeding herd of elephants and we have one

         7       little pea shooter among us to stop them.

         8                  Because while I'm voting for this,

         9       and what we're doing today is something, and I

        10       guess something is better than nothing, I

        11       really don't think we ought to be proclaiming

        12       that we've solved the energy crisis and

        13       American dependence on Middle Eastern oil.

        14       This is a little teeny, tiny drop in a bucket

        15       here.

        16                  And unfortunately, there's very,

        17       very little the state can do.  Yes, we can

        18       save people a few pennies a gallon and watch

        19       in a few weeks when the oil companies raise

        20       those prices and they creep up and those

        21       pennies are chewed up.  And we can certainly,

        22       as a state government, encourage some

        23       development of alternative energy sources.

        24       But our resources as a state are woefully

        25       inadequate to really get something real going


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         1       that will solve this problem.

         2                  The economics of this bill kind of

         3       mystifies me.  We want to stop people from

         4       smoking cigarettes, and we raise the taxes.

         5       And now we're hoping people will conserve

         6       gasoline and so we and try and lower the

         7       price.  That's a little mystifying to me.

         8                  The interesting thing for my

         9       colleagues from upstate, and particularly from

        10       the suburbs and the far suburbs, is those

        11       beautiful homes with a quarter-acre or a

        12       half-acre, green upon all around them, are

        13       incredibly energy inefficient.

        14                  And those big old cities that we so

        15       often have turned our backs over these past

        16       decades, and from which people have fled to

        17       supposedly better environments -- if you look

        18       at all the studies now, a city like New York

        19       City is the most energy-efficient part of this

        20       state.  Where people live in multiple

        21       dwellings, it is cheaper to heat.  Where

        22       people depend on mass transit, it is cheaper

        23       to move people.

        24                  And when people move out in the

        25       suburbs and have to drive to get a quart of


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         1       milk and are heating a single-family home that

         2       the wind attacks from all four sides,

         3       depending on which way it's blowing, it's

         4       much, much, incredibly more inefficient.  The

         5       energy consumption for a million or two people

         6       in a suburban setting doesn't even equal --

         7       the energy, I should say, taken to sustain a

         8       city of 8 million does not even equal the

         9       amount of energy consumed by a couple of

        10       million people in the suburbs.

        11                  So it ought to readjust the way we

        12       think about things, not just in this aspect,

        13       but in where we think is the best way for the

        14       future.  The future belongs to our rebuilding,

        15       reborn cities.  That future belongs there

        16       unless America can figure out a way to get

        17       awfully cheap energy out of corn or some other

        18       replenishable organic substance.

        19                  I will vote for this because it's

        20       something and I guess it's all we can do, but

        21       we haven't exactly taken -- nor can we, this

        22       is not a criticism -- a giant stride towards

        23       solving the problem.  Because the powers of

        24       the state government compared to the powers

        25       that vest in that enormous federal government


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         1       headed by those two big former oilmen, and the

         2       resources at their disposal, are what has to

         3       be focused in the right direction.

         4                  And that hasn't happened, and it's

         5       not likely we suddenly woke up in the last

         6       year and said:  Oh, my, we have a problem.

         7       We've had this problem, we've known about this

         8       problem for a couple of decades.  And the

         9       United States' response has been woefully

        10       inadequate, at times, virtually imperialistic,

        11       and, frankly, a "we got ours and forget about

        12       the world."

        13                  And you look at Brazil, which a

        14       couple of decades ago we described as part of

        15       the Third World, and Brazil is

        16       energy-self-sufficient because they looked

        17       ahead a couple of decades and figured out how

        18       to convert virtually after all their

        19       consumption to ethanol, which is replenishable

        20       every year when the crops come in.

        21                  So I appreciate the sponsors of

        22       this and the effort that went into coming up

        23       with this bill.  But let's not kid ourselves.

        24       It's all we can do, and it's woefully,

        25       pitifully little that we're doing.


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         1                  Thank you.

         2                  ACTING PRESIDENT MORAHAN:    Thank

         3       you, Senator Connor.  You will be recorded in

         4       the affirmative.

         5                  Senator Schneiderman.

         6                  SENATOR SCHNEIDERMAN:    Thank you,

         7       Mr. President.  On the bill.

         8                  ACTING PRESIDENT MORAHAN:

         9       Senator Schneiderman, on the bill.

        10                  SENATOR SCHNEIDERMAN:    I join my

        11       colleagues on both sides of the aisle in

        12       strongly supporting some provisions of this

        13       bill.

        14                  I certainly think that the tax

        15       credit provisions are examples of what we can

        16       be doing at the state level.  Senator Sabini's

        17       amendment offered examples of how we can save

        18       hundreds of millions of dollars a year.  There

        19       are other bills that have been introduced.

        20       There are things that have been done in other

        21       states.  Senator Connor is correct; this is

        22       mostly a federal problem.  But there is a lot

        23       we can do at the state level.

        24                  The creativity shown by other

        25       states with energy planning, portfolio


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         1       standards, requiring energy-efficient

         2       mortgages, these are all things that the State

         3       of New York could do.  Unfortunately, in the

         4       last decade we have lagged many other states

         5       in terms of energy policy.

         6                  I would also particularly like to

         7       commend my colleagues on the other side of the

         8       aisle for one modification of this bill that

         9       took place after many of us on this side of

        10       the aisle voted against an earlier version,

        11       that there is an effort now to provide for

        12       some -- to ensure that the savings from this

        13       legislation get passed through to the

        14       consumer.

        15                  But before we dislocate our

        16       shoulders patting ourselves on the back, I

        17       would urge that there is much more work to do

        18       on that front.  There's not really a good

        19       mechanism in place to ensure that the

        20       consumers receive the benefits of this.  I

        21       note that in the Times Union on May 12 there

        22       was a statement from someone, a spokesperson

        23       for the oil industry, that they doubted that

        24       the consumers would see any of it.

        25                  So let's make sure that if we're


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         1       going to try and pass something that is

         2       questionable as a matter of energy policy in

         3       an effort to help relieve consumers from the

         4       crushing burdens of higher fuel costs, that

         5       that money actually gets to the consumers, it

         6       is not a windfall for the oil companies.  I

         7       note that in the Assembly they're looking at

         8       legislation to prevent that from happening.

         9                  We do have more work to do.  There

        10       is a lot more we can do as a state.  This is a

        11       step.  I'm going to vote in support of this.

        12       But if we do not ensure that there is

        13       enforcement, as my colleagues on this side of

        14       the aisle have said repeatedly and have

        15       demonstrated their strong feelings about with

        16       their votes, it doesn't amount to anything.

        17                  So let's make sure this gets to the

        18       consumers.  I will vote yes.  I'm pleased that

        19       there is an effort to do that in this draft of

        20       the legislation.  And I think this is

        21       something -- in spite of Senator Marcellino's

        22       exhortations, I think we may see this bill

        23       again if the Governor follows through on some

        24       of his earlier statements.  And it may be that

        25       there are more things we can do to ensure that


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         1       consumers get the benefits at that point in

         2       time.

         3                  I will be voting yes,

         4       Mr. President.  Thank you.

         5                  ACTING PRESIDENT MORAHAN:    Thank

         6       you, Senator Schneiderman.  You will be

         7       recorded in the affirmative.

         8                  Senator Volker.

         9                  SENATOR VOLKER:    Mr. President, I

        10       thought we were kind of explaining our votes.

        11                  Let me just say very quickly that

        12       it's always fascinating to me that -- when I

        13       hear that the City of New York is efficient.

        14       The only reason that New York City is not in

        15       an absolute electric crisis is because of

        16       9/11.

        17                  It's unbelievable the

        18       misunderstanding of New York City.  We just

        19       don't have enough power to send down to you.

        20       Because New York City uses a tremendous amount

        21       of upstate power.  When the new World Trade

        22       Center comes back up and the 10 percent that

        23       went down with it -- which is unbelievable, by

        24       the way -- New York City is going to have a

        25       crisis of epic proportions.


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         1                  You can talk all you want about oil

         2       companies, but the fact that we have not

         3       allowed any new refineries in this country --

         4       and your party has been very, very strong on

         5       that issue.  You can't locate anything around

         6       New York City.  It's refineries that are the

         7       problem.  If we still had refineries in this

         8       country, we'd have low prices.  But there's no

         9       sense in talking about it.  What's done is

        10       done.

        11                  I just want to say one thing to

        12       you.  When you repeal a sales tax, when you

        13       cap it, the benefit has got to go to the

        14       people.  There's no way around it.  I don't

        15       know how some oil person -- because a lot of

        16       the oil people don't even know how this stuff

        17       works.

        18                  I figure this will save my

        19       family -- I was trying to figure what it would

        20       save my family.  And remember, we're

        21       upstaters.  We're not in New York City, where

        22       you can take rapid transit and all that sort

        23       of stuff.  We have to drive.  You'll save

        24       between $200 and $300, is what I figure.

        25       We're not maximum drive -- if I was driving a


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         1       lot, it would be more.  And I figured it out

         2       based on every fill-up of a gas tank.

         3                  So you say, Well, you might not

         4       save it.  You've got to save it.  Once you cap

         5       it, it's saved.  There's no other way around

         6       it.  That's the way it is.  I mean, they can't

         7       get around it.  The theory because it's

         8       confusing you can get around it is baloney.

         9                  And that's why New York City

        10       doesn't want to chip in, and that's why my

        11       county is not chipping in.  Because my

        12       county -- who, by the way, is making money

        13       hand over fist, not only from gasoline, but

        14       from the Sabres winning in Buffalo.  And it's

        15       a huge downtown cost.  I'm told that the

        16       deficit has shrunk in Erie County by something

        17       in the area of $12 million to $15 million

        18       because of what's been happening, the activity

        19       in downtown Buffalo and in the County of Erie.

        20                  People have no idea what sports

        21       does when you sell everything and when you've

        22       got the hotels and motels filled up and all

        23       that.  That's what the New York City wanted

        24       with the Olympics, and I understand that.

        25       It's huge.


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         1                  But the bottom line is that we

         2       stood for a long time trying to get the

         3       Assembly to do something.  I said, Well, why

         4       don't we suspend the whole sales tax until the

         5       end of the year?  Well, the reason we don't do

         6       that is because the Governor would never go

         7       for that.  And that probably would be such a

         8       huge amount of money, that could be a problem.

         9                  But by capping it at 2 bucks, it

        10       probably is going to cost the state in this

        11       fiscal year probably in the area of

        12       $300 million to $350 million.  Which is a lot

        13       of money, but it's worth it given the times

        14       that we're in.

        15                  And by the fall, the prices will be

        16       below $2.50, which is fine.  Remember, it will

        17       still be in effect, this $2.  And if it goes

        18       below $2, it trips out.  So you're at $2 and

        19       that's it.  So there's no way you can lose;

        20       that is, the consumers.  The people that say

        21       it can lose are probably federal people who

        22       don't know exactly what to do.  Although they

        23       have done the right thing, and that is they

        24       got rid of the oxygenation, which ultimately

        25       will have some impact on the whole thing.


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         1                  But I remind everybody, those four

         2       refineries in New Orleans, Louisiana, are

         3       still down.  Two of them may never come back

         4       up again.  Two of them are going to come back

         5       shortly.  That's what tripped this whole

         6       crisis off.

         7                  Of course, there's one other thing.

         8       When the American oil companies controlled the

         9       marked, we had low prices.  But thanks to

        10       environmentalism and the Clean Air Act and all

        11       the rest of the stuff, we lost control of the

        12       oil market.  It's now run by people outside of

        13       this country.  We can talk all we want about

        14       alternative fuels and all that.  It's not the

        15       supply of oil.  The problem is the

        16       distribution.  It always has been, and it will

        17       be for about 30 to 40 years.  It will be more

        18       the distribution than anything else.

        19                  But, you know, it's hard to deal

        20       with that because no one really wants to deal

        21       with it.  Senator Wright is even more familiar

        22       with it than I am.  But on the other hand, in

        23       this country we forget -- for instance, this

        24       state, by the way, has done more to clean up

        25       our air than any state in the union ever has.


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         1       The only reason we don't have the cleanest

         2       industrial state in the union is because of

         3       New Jersey.  New Jersey's pollution drifts

         4       across New York City, Queens, and across that.

         5       Otherwise, we'd have the cleanest air in the

         6       darn country.

         7                  Buffalo, in Western New York, has

         8       the cleanest air of any new or old industrial

         9       city in the country.  Never speaks of this, by

        10       the way, by the people in Western New York,

        11       but it's very clean.

        12                  The bottom line is this is going to

        13       save money.  Senator Wright, good job; Senator

        14       Bruno, the members of our conference.  Thank

        15       you for helping us, Senator Schneiderman and

        16       your people.  We always appreciate the help.

        17                  ACTING PRESIDENT MORAHAN:    Thank

        18       you, Senator Volker.

        19                  Senator Montgomery.

        20                  SENATOR MONTGOMERY:    Yes,

        21       Mr. President.  Thank you.

        22                  I want to rise and also thank

        23       Senator Wright, who has worked very hard on

        24       giving us at least a beginning of a way of

        25       addressing the energy crisis, especially the


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         1       gasoline-price crisis.

         2                  But I must say that the part that

         3       I'm very excited about that I think is

         4       incomplete, however, is the last part, I think

         5       it's Part E in the legislation, in that, where

         6       we refer to the role of NYSERDA, the New York

         7       State Energy Research and Development

         8       Authority.

         9                  NYSERDA has been extremely critical

        10       to having -- giving us an opportunity to

        11       explore some meaningful alternatives as it

        12       relates to conservation and energy use.  And I

        13       think that we need to look at what they have

        14       been doing and to put some of that in force.

        15                  I.e., I think we need to look at

        16       the possibility of requiring that builders and

        17       developers plan for green construction in new

        18       construction.  That is not being discussed, to

        19       my knowledge, or required of developers,

        20       certainly in New York City.  I know that

        21       NYSERDA has been involved, certainly in

        22       New York City in particular, and around the

        23       state, in looking at helping buildings,

        24       existing housing developments retrofit so that

        25       they are able to utilize other sources for


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         1       their energy; i.e., fuel cell production as

         2       well as cogeneration and other energy sources,

         3       alternatives.

         4                  I think that it makes sense now for

         5       us to go back to NYSERDA and work with them to

         6       see that we can in fact implement on a broader

         7       scale some of those advances that they've

         8       already begun to make.

         9                  I wish that this legislation

        10       included incentives for people.  I know that

        11       there is some -- I've had discussions with

        12       colleagues who say we don't need to provide

        13       incentives because people are already buying

        14       fuel-efficient cars.

        15                  But, Mr. President, when I look at

        16       our own parking lot downstairs, I see quite a

        17       number of gas-guzzlers.  And I think that we

        18       need to go on a campaign to ask people to quit

        19       the gas-guzzlers.

        20                  At least we're making a statement

        21       that we think this is a very serious issue,

        22       not just for now, not just for addressing this

        23       emergency, but for looking long-term.  We

        24       must, I think, become more energy independent,

        25       and one way of doing that is to change the way


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         1       that we look at how we ride around and what

         2       kinds of cars we purchase.

         3                  And lastly, Mr. President, Section

         4       E, for me, we need at least a Section F which

         5       talks a lot more about a heavy investment in

         6       the production end as it relates to

         7       alternative fuels.  We have a huge

         8       agricultural potential in terms of the

         9       agriculture in our own state, making that very

        10       much a part of this energy-independent

        11       movement, and including them in our programs

        12       and our plans so that as we look to develop

        13       alternative sources of energy, we're looking

        14       at building an economy within our own state

        15       which is an early-on participant and

        16       beneficiary of this program.

        17                  So there are some missing pieces.

        18       I certainly am going to support this

        19       legislation, because I think it certainly is a

        20       beginning.  But I think that I've heard many

        21       times Senator Marcellino refer to some of

        22       these issues.  I hope that the majorities in

        23       both houses, the minorities in both houses --

        24       all of us have ideas.  I think we all have

        25       experiences of one sort of another, to one


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         1       degree or other with this program, with

         2       this -- with the need for us to address this

         3       issue comprehensively so that all of the

         4       constituents in the state, no matter where --

         5       agricultural, rural, the suburbs, the

         6       cities -- that we're all able to come together

         7       and devise a plan that speaks to energy in our

         8       state.

         9                  So with that, Mr. President, I

        10       again thank Senator Wright.  And I'm looking

        11       at Senator Marcellino, because I'm expecting

        12       him to come forward with some of his bills

        13       that he's promised that he is going to be

        14       working on.  And hopefully we can have

        15       discussions together on what those might be.

        16                  Thank you very much.

        17                  ACTING PRESIDENT MORAHAN:    Thank

        18       you, Senator Montgomery.

        19                  Senator Oppenheimer.

        20                  SENATOR OPPENHEIMER:    Thank you.

        21                  I was just jogged out of my sort of

        22       somnambulant state here by a couple of things

        23       I've been listening to, and I'd like to talk

        24       very briefly about them.

        25                  The Regional Plan Association has


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         1       been pursuing what Senator Connor was just

         2       talking about for at least three decades now.

         3       And that is to make us aware that we don't

         4       have to get into our car if we look at things

         5       a little bit differently.  And that is the

         6       rebuilding of center cities.

         7                  Now, this is in part determined by

         8       the need for residential dwellings close in to

         9       more vibrant cities.  And so in Westchester

        10       County I am very pleased to say we are leading

        11       this movement, probably nationwide.  We are in

        12       the process of just a very dynamic rebuilding

        13       of our cities.

        14                  White Plains, a very large city,

        15       New Rochelle, a large city, were in terrible

        16       decline.  We have, over the last decade,

        17       attracted developers, and there are very large

        18       apartment houses, 30 stories high -- maybe

        19       that's overkill.  But it is certainly a sign

        20       that we are turning around the economies of

        21       these inner cities that were in really bad

        22       shape about twenty years ago.

        23                  If that happens, that means that

        24       there will be less need to drive a car,

        25       because these cities are located on rail


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         1       lines.  And the rail lines go into New York

         2       City; there are buses that fan out to all the

         3       other parts of the county.

         4                  This is really an emphasis that we

         5       have to really pursue, because we have to do

         6       less driving.  It's not a question of cost.

         7       Believe me, the costs in America are much less

         8       than the costs in most other countries in the

         9       world.

        10                  So it's a question of we have to

        11       think of what the air quality is, we have to

        12       think of what we're doing to the earth, we

        13       have to think of what we're doing to the

        14       water.  There's so many aspects to this.  We

        15       have to learn to drive less.

        16                  Now, I agree if it's in some

        17       upstate area that is rural, that's another

        18       problem.  But in your cities, I think you have

        19       your infrastructure in place.  You don't have

        20       to attack and put residential areas in green

        21       spaces that we hope to remain open.  And if we

        22       concentrate in the downtown areas, that's

        23       where your sewers are, that's where your water

        24       is, your fresh water, that's where your

        25       transportation is.  And we have to really take


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         1       a look back at what the Regional Plan

         2       Association has been talking about for thirty

         3       years now.  I just thought I'd enter that in

         4       the record.

         5                  I'm voting yes.

         6                  ACTING PRESIDENT MORAHAN:    Thank

         7       you, Senator Oppenheimer.  You will be

         8       recorded in the affirmative.

         9                  Senator Wright, to close.

        10                  SENATOR WRIGHT:    Thank you very

        11       much, Mr. President.  And I appreciate the

        12       observations of all of my colleagues this

        13       afternoon.

        14                  But I would point out that it's the

        15       taxpayers of this state that understand what

        16       we're doing today.  And that is we're reducing

        17       their taxes.  From what we can find in

        18       researching, we're reducing the sales tax on

        19       gasoline for the first time in the history of

        20       this state.  That is something that we should

        21       all be proud of.

        22                  Yes, it has a positive impact on

        23       the cost of gasoline.  Yes, that has a

        24       positive impact on the energy situation for

        25       working men and women who every day have to


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         1       pay the cost to drive to work, to drive to

         2       school, to drive for healthcare, to visit

         3       their family and friends, et cetera.

         4                  Regardless of whether you're in a

         5       rural portion of the state or a metropolitan

         6       area of the state, it will benefit you.

         7       Regardless of whether you're an individual or

         8       a small business, it will benefit you.  It's

         9       all about making sure there is not a windfall

        10       tax achieved, be it at the state level -- we

        11       will be returning some $450 million to the

        12       taxpayers.

        13                  And with the efforts of local

        14       government -- and I would encourage each and

        15       every one of you to encourage your local

        16       governments to do likewise.  If they adopt it,

        17       it doubles the impact in terms of the tax

        18       benefit to the consumer.

        19                  And we have thought about the

        20       consumer.  Now, we've talked about making sure

        21       that competition will keep them honest.  But

        22       we've also built in an enforcement piece, an

        23       enforcement piece using the Office of Consumer

        24       Affairs, using Taxation & Finance.  And they

        25       have measures available to them -- the


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         1       Wholesale Pricing Index, they have access to

         2       provider and wholesaler's records.  So there

         3       are means of enforcing this.

         4                  Our job was to provide a rather

         5       stiff penalty, $5,000 per incident per day.  I

         6       believe that will go a long way to ensuring

         7       that 1 percent that may abuse the system is

         8       penalized.  Most of the small businesses, men

         9       and women in small business in this industry

        10       are just as concerned about the price as we

        11       are.

        12                  So I think we've addressed the

        13       concerns that have been raised.  As to some of

        14       the other concerns that have been advanced, to

        15       his credit the Governor has, in fact, moved

        16       ahead on alternative fuels.  He has moved

        17       ahead on alternative vehicles.  The Office of

        18       OGS is in the process of implementing a plan

        19       of CNG and stations to provide CNG at state

        20       facilities throughout this state, doing it on

        21       a statewide basis.

        22                  So I think the administration has

        23       been moving forward.  I know that in working

        24       in partnership with them, we can continue to

        25       achieve advancements.


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         1                  And while we're talking about sales

         2       tax today, and we're talking about other

         3       provisions of tax benefit, it's not just

         4       today.  If you look at what has been

         5       accomplished in this legislative session,

         6       there's biofuel production tax credit, long

         7       term; cellulosic biofuel facilities

         8       investment, long term; clean fuel vehicle tax

         9       exemptions, long term.  Sales tax exemptions

        10       for solar, long term.  Fuel tax credits, long

        11       term.  And appliance and equipment energy

        12       efficiency standards -- first in the nation --

        13       long term.

        14                  The State of New York has a long

        15       history of addressing the energy concerns of

        16       its people, its taxpayers, its ratepayers.

        17       Today is but one more step to move forward to

        18       reduce the cost of living and working in

        19       New York State and at the same time setting an

        20       example for the nation of how energy policy

        21       should be addressed.

        22                  Mr. President, I thank my

        23       colleagues and I encourage their affirmative

        24       votes.

        25                  ACTING PRESIDENT MORAHAN:    Thank


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         1       you, Senator Wright.

         2                  Debate is closed.

         3                  The Secretary will read a

         4       substitution.

         5                  THE SECRETARY:    In relation to

         6       Calendar Number 1016, Senator Wright moves to

         7       discharge, from the Committee on Rules,

         8       Assembly Bill Number 11331 and substitute it

         9       for the identical Senate Bill Number 7909,

        10       Third Reading Calendar 1016.

        11                  ACTING PRESIDENT MORAHAN:

        12       Substitution is ordered.

        13                  The Secretary will ring the bell.

        14                  Read the last section.

        15                  THE SECRETARY:    Section 3.  This

        16       act shall take effect immediately.

        17                  ACTING PRESIDENT MORAHAN:

        18       Senator Saland, to explain his vote.

        19                  SENATOR SALAND:    Thank you,

        20       Mr. President.  I rise to commend Senator

        21       Wright.

        22                  I've been listening to the debate,

        23       and I think everybody agrees that this is not

        24       advanced as some panacea that's miraculously

        25       going to cure all the ills of everything


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         1       that's transpired to date, driving the gas

         2       costs to where they are currently.  Certainly

         3       supply and demand, what's going on in the

         4       Middle East, and a host of other things that

         5       are involved are things well beyond our

         6       control.  There has been some certainly

         7       comprehensive investigation and comprehensive

         8       action that more appropriately would occur on

         9       a national level.

        10                  Yet this is what we can do in the

        11       State of New York.  This is giving a break to

        12       already overburdened taxpayers.  This is doing

        13       our best to reduce the price at the pump as

        14       well as provide other means of alternatively

        15       dealing with fuels and fuel sources.

        16                  So again, my commendations to

        17       Senator Wright.  And certainly I would support

        18       this measure and think we have managed to

        19       accomplish an agreement here which, after a

        20       great number of months in which the Senate was

        21       at the point, we have come to closure.

        22                  Thank you.

        23                  ACTING PRESIDENT MORAHAN:    The

        24       Secretary will call the roll.

        25                  (The Secretary called the roll.)


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         1                  ACTING PRESIDENT MORAHAN:

         2       Senator Balboni, to explain his vote.

         3                  SENATOR BALBONI:    Mr. President,

         4       this issue, if anyone takes a look at the

         5       media, you'll see a very healthy dose of

         6       skepticism.  In addition to which, in this

         7       chamber itself, there are many concerns raised

         8       that in fact this is an imperfect solution.

         9                  But what must be kept in mind is

        10       that this is not only what New York State is

        11       doing for its state residents, but this is

        12       also part of a national effort.  The National

        13       Conference of State Legislators has a report

        14       out that indicates that over half of the

        15       states in the nation are currently doing

        16       something to reduce taxes on gasoline.

        17                  And so we play an important role,

        18       not just in terms of what we're doing here

        19       specifically, but rather nationally to

        20       continue to put great pressure on the federal

        21       government to understand that they need to do

        22       something as it relates to taxes also.

        23                  And you know what, ladies and

        24       gentlemen, keep this in mind.  With a

        25       $4 billion surplus, why not do this now.


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         1                  I vote aye.  Thank you.

         2                  ACTING PRESIDENT MORAHAN:    Thank

         3       you, Senator Balboni.

         4                  Senator Nozzolio, to explain his

         5       vote.

         6                  SENATOR NOZZOLIO:    Thank you,

         7       Mr. President.

         8                  Mr. President and my colleagues,

         9       this is an excellent step in the right

        10       direction.  It is providing leadership and

        11       results for our already overburdened

        12       taxpayers, and I congratulate this house for

        13       accepting this measure.

        14                  Skyrocketing gasoline prices

        15       whether you drive to work, go to daycare, go

        16       to the grocery store, it's a way of life

        17       upstate, and upstate is hit hardest by the

        18       spike in gasoline prices and the spike in

        19       taxes as a result.

        20                  We've taken good steps here with

        21       this legislation.  My colleagues are so right

        22       that a rational national energy policy needs

        23       to be established, it needs to be established

        24       in a variety of ways that ensures a broader

        25       supply, ensures alternative fuels, ensures


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         1       alternative vehicles, all of which we in

         2       New York are poised to establish posthaste.

         3                  But right now, immediately, this

         4       puts money in the pockets of our taxpayers who

         5       deserve it, and particularly those who need to

         6       drive so far to meet their everyday

         7       necessities.  Results, results for our

         8       taxpayers.

         9                  I vote aye, Mr. President.  It's an

        10       excellent measure, a step in the right

        11       direction.

        12                  ACTING PRESIDENT MORAHAN:    Thank

        13       you, Senator Nozzolio.  You will be recorded

        14       in the affirmative.

        15                  Senator DeFrancisco.

        16                  SENATOR DeFRANCISCO:    I also vote

        17       aye.

        18                  And you know, I just want to

        19       address one part of the bill.  I know there's

        20       many parts that are going to provide relief to

        21       taxpayers.  I want to talk about the gasoline

        22       tax and one aspect of it that hasn't really

        23       been addressed yet.

        24                  When we first passed our bill in

        25       December, in order to cap the sales tax on


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         1       gasoline at sales prices of $2 a gallon, there

         2       was a very important point:  not only to

         3       provide relief for the taxpayers, but to

         4       eliminate a windfall that the state was

         5       receiving.

         6                  We could talk about whether or not

         7       this is going to be a major impact on the cost

         8       of gasoline.  It probably isn't.  But what's

         9       happened is when the gasoline prices are going

        10       out of whack, beyond our control for the large

        11       part, the state is gaining a windfall and

        12       adding to the burden of the taxpayer as the

        13       price of gasoline goes up.

        14                  And since December, while we've

        15       been waiting for the Assembly to come along,

        16       there's been tens of millions of dollars that

        17       the state has collected from taxpayers that

        18       made their burden even greater on the price

        19       they pay for gasoline.

        20                  So this bill ends the windfall and

        21       allows the taxpayers to keep their dollars,

        22       instead of paying more taxes because the price

        23       is going up -- and it still may continue to go

        24       up -- to end that windfall.  And to not end it

        25       would have been unconscionable.


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         1                  I vote aye.

         2                  ACTING PRESIDENT MORAHAN:    Thank

         3       you, Senator DeFrancisco.  You will be

         4       recorded in the affirmative.

         5                  Senator Seward.

         6                  SENATOR SEWARD:    Thank you,

         7       Mr. President.  I rise to add my voice and my

         8       vote in favor of this very important

         9       legislation.

        10                  It's been said that we in New York

        11       cannot control gas prices.  Obviously we

        12       cannot control the weather or the hurricanes

        13       that hit us last year.  We can't control

        14       international oil consumption or oil

        15       production, for that matter.  Many, many

        16       aspects of this issue beyond the reach of

        17       New York State.

        18                  However, there are some things we

        19       can control in New York, and the level of

        20       taxation and the way that we tax a gallon of

        21       gasoline is one such way that we can have some

        22       control over.  And this legislation, by

        23       capping that tax, is real relief for

        24       overburdened taxpayers of this state.

        25                  Now, some have said it's only


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         1       pennies a gallon.  But you know what?  Those

         2       pennies add up.  This bill will provide close

         3       to $400 million of relief for the motoring

         4       public in this state.  That's real dollars,

         5       and that's certainly going to be helpful.

         6                  I was at a gas station a week or so

         7       ago, and a gentleman came up to me and said:

         8       "You know, Senator, I am not able to meet my

         9       mortgage payment this month because of these

        10       high gas taxes."

        11                  So this is an issue that hits

        12       New Yorkers in very practical ways.  It hits

        13       that family budget.  Because as the price of

        14       gas goes up, that money has to come from

        15       somewhere in a family's budget.

        16                  So I agree with my colleagues who

        17       said the State of New York should not be

        18       enjoying a financial windfall because of the

        19       high gas prices which have also increased the

        20       taxes.  So this legislation deals with that.

        21                  I'm also very pleased that we're

        22       taking a balanced approach under this bill,

        23       promoting conservation through a tax credit

        24       for the replacement of home heating systems

        25       which are more efficient.  Also promoting


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         1       alternative fuels and the distribution system

         2       for those fuels.

         3                  This is a well-balanced approach

         4       that helps everyday New Yorkers with an

         5       everyday problem that they face.

         6       Mr. President, I vote aye.

         7                  ACTING PRESIDENT MORAHAN:    Thank

         8       you, Senator Seward.  You will be recorded in

         9       the affirmative.

        10                  Senator Leibell, to explain his

        11       vote.

        12                  SENATOR LEIBELL:    Thank you,

        13       Mr. President.  I'd like to also rise in

        14       support of this legislation.

        15                  I think we have all heard from the

        16       constituency, we have heard from the consumers

        17       of New York State at their outrage of the

        18       price of gasoline.  This has especially

        19       impacted on those of us who represent

        20       districts that are more suburban and rural.

        21                  This legislation is certainly not a

        22       complete solution, but it does offer some

        23       degree of price and tax relief to our

        24       constituents.  It gives us also an opportunity

        25       to examine this problem in greater depth.


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         1       This is a problem that has international

         2       implications, and it certainly is a problem

         3       that we are not going to see in our lifetimes

         4       get any better.

         5                  This legislation leads us, though,

         6       to a point in time where we can now

         7       aggressively consider alternative forms of

         8       energy.  We should start to do that in

         9       New York State.  We should start to do it more

        10       aggressively.  I realize we can't establish a

        11       national energy policy.  But if we were a

        12       separate economy in New York State, if we were

        13       going to be compared to other nations, we

        14       would be one of the largest economies in the

        15       world.  That means that we can do certain

        16       things.

        17                  We in state government, also in

        18       municipal government, should lead the way.  We

        19       should make sure that our energy sources, our

        20       vehicles, our buildings are heated by

        21       alternative sources.

        22                  So this is a good piece of

        23       legislation, but it only begins the debate.

        24                  Thank you, Mr. President.

        25                  ACTING PRESIDENT MORAHAN:    Thank


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         1       you, Senator Leibell.  You will be recorded in

         2       the affirmative.

         3                  Announce the results.

         4                  THE SECRETARY:    Ayes, 58.

         5                  ACTING PRESIDENT MORAHAN:    The

         6       bill is passed.

         7                  Senator Fuschillo.

         8                  SENATOR FUSCHILLO:    Mr.

         9       President, is there any other business at the

        10       desk?

        11                  ACTING PRESIDENT MORAHAN:    Yes,

        12       we have a motion.

        13                  SENATOR FUSCHILLO:    Please

        14       recognize Senator Flanagan.

        15                  ACTING PRESIDENT MORAHAN:

        16       Senator Flanagan.

        17                  SENATOR FLANAGAN:    Thank you,

        18       Mr. President.

        19                  On behalf of Mr. President, could

        20       we call up Print Number 3091A.

        21                  ACTING PRESIDENT MORAHAN:    The

        22       Secretary will read.

        23                  THE SECRETARY:    Calendar Number

        24       698, by Senator Morahan, Senate Print 3091A,

        25       an act to amend the Banking Law.


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         1                  SENATOR FLANAGAN:    Mr. President,

         2       I ask that we move to reconsider the vote by

         3       which the bill was passed.

         4                  ACTING PRESIDENT MORAHAN:    Call

         5       the roll on reconsideration.

         6                  (The Secretary called the roll.)

         7                  THE SECRETARY:    Ayes, 58.

         8                  SENATOR FLANAGAN:    Mr. President,

         9       I now offer the following amendments.

        10                  ACTING PRESIDENT MORAHAN:    The

        11       amendments are received.

        12                  SENATOR FLANAGAN:    Thank you.

        13                  ACTING PRESIDENT MORAHAN:

        14       Senator Fuschillo.

        15                  SENATOR FUSCHILLO:    Mr.

        16       President, is there any other business at the

        17       desk?

        18                  ACTING PRESIDENT MORAHAN:    There

        19       is no other business at the desk, Senator.

        20                  SENATOR FUSCHILLO:    There being

        21       no further business, I move we adjourn until

        22       Tuesday, May 16th, at 3:00 p.m.

        23                  ACTING PRESIDENT MORAHAN:    On

        24       motion, the Senate stands adjourned until

        25       Tuesday, May 16th, at 3:00 p.m.


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         1                  (Whereupon, at 4:42 p.m., the

         2       Senate adjourned.)

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                                (518) 371-8910