Regular Session - February 13, 2008

                                                            361



         1                 NEW YORK STATE SENATE

         2

         3

         4                THE STENOGRAPHIC RECORD

         5

         6

         7

         8

         9                   ALBANY, NEW YORK

        10                   February 13, 2008

        11                       1:25 p.m.

        12

        13

        14                    REGULAR SESSION

        15

        16

        17

        18  SENATOR JOSEPH GRIFFO, Acting President

        19  STEVEN M. BOGGESS, Secretary

        20

        21

        22

        23

        24

        25



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        362



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

         2                  ACTING PRESIDENT GRIFFO:    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 to the Flag.

         7                  (Whereupon, the assemblage recited

         8       the Pledge of Allegiance to the Flag.)

         9                  ACTING PRESIDENT GRIFFO:    Today's

        10       invocation will be offered by Father Peter

        11       Young, of the Mother Theresa Community here in

        12       Albany.

        13                  Father?

        14                  FATHER YOUNG:    Thank you,

        15       Senator.  Let us pray.

        16                  As we approach Valentine's Day, we,

        17       O God, might expect flowers and candy, but

        18       instead we work and wake up to the snow and to

        19       the sleet and to the rain.  We thank God,

        20       though, for Your blessings.

        21                  And we here in the legislative

        22       body, we know that, God, You have never failed

        23       to provide our New York State citizens with

        24       dedicated Senators.  May God pour forth His

        25       blessings on our legislators and provide them



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        363



         1       with the spirit and courage to accept the many

         2       demands of their elected office.

         3                  We ask You this forever.  Amen.

         4                  ACTING PRESIDENT GRIFFO:    Reading

         5       of the Journal.

         6                  THE SECRETARY:    In Senate,

         7       Tuesday, February 12, the Senate met pursuant

         8       to adjournment.  The Journal of Monday,

         9       February 11, was read and approved.  On

        10       motion, Senate adjourned.

        11                  ACTING PRESIDENT GRIFFO:    Without

        12       objection, the Journal stands approved as

        13       read.

        14                  SENATOR SKELOS:    Mr. President.

        15                  ACTING PRESIDENT GRIFFO:    Senator

        16       Skelos.

        17                  SENATOR SKELOS:    There will be an

        18       immediate meeting of the Racing, Gaming and

        19       Wagering Committee in the Majority Conference

        20       Room.

        21                  And the Senate will stand at ease.

        22                  ACTING PRESIDENT GRIFFO:    There

        23       will be an immediate meeting of the Racing and

        24       Wagering Committee of the Senate in the

        25       Majority Conference Room.



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        364



         1                  The Senate stands at ease.

         2                  (Whereupon, the Senate stood at

         3       ease at 1:28 p.m.)

         4                  (Whereupon, the Senate reconvened

         5       at 2:00 p.m.)

         6                  ACTING PRESIDENT GRIFFO:    The

         7       Senate will come to order.

         8                  SENATOR SKELOS:    Mr. President,

         9       if we could continue with the regular order of

        10       business.

        11                  ACTING PRESIDENT GRIFFO:    Thank

        12       you, Senator Skelos.

        13                  Presentation of petitions.

        14                  Messages from the Assembly.

        15                  Messages from the Governor.

        16                  Reports of standing committees.

        17                  The Secretary will read.

        18                  THE SECRETARY:    Senator Larkin,

        19       from the Committee on Racing, Gaming and

        20       Wagering, reports the following bill direct to

        21       third reading:

        22                  Senate Print 6950, by Senator

        23       Bruno, an act to amend the Racing, Pari-Mutuel

        24       Wagering and Breeding Law.

        25                  ACTING PRESIDENT GRIFFO:    So



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        365



         1       ordered.  The bill is reported direct to third

         2       reading.

         3                  Reports of select committees.

         4                  Communications and reports from

         5       state officers.

         6                  Motions and resolutions.

         7                  Senator Fuschillo.

         8                  SENATOR FUSCHILLO:    Thank you,

         9       Mr. President.

        10                  On behalf of Senator Alesi, on page

        11       number 17 I offer the following amendments to

        12       Calendar Number 134, Senate Print Number 6634,

        13       and ask that said bill retain its place on

        14       Third Reading Calendar.

        15                  ACTING PRESIDENT GRIFFO:    The

        16       amendments are accepted, and the bill will

        17       retain its place on the Third Reading

        18       Calendar.

        19                  SENATOR FUSCHILLO:    On behalf of

        20       Senator Farley, I move that the following

        21       bills be discharged from their respective

        22       committees and be recommitted with

        23       instructions to strike the enacting clause:

        24       Senate Print Number 1845 and Senate Print

        25       Number 5251.



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        366



         1                  ACTING PRESIDENT GRIFFO:    So

         2       ordered.

         3                  SENATOR FUSCHILLO:    Thank you.

         4                  ACTING PRESIDENT GRIFFO:    Thank

         5       you, Senator Fuschillo.

         6                  Senator Skelos.

         7                  SENATOR SKELOS:    I believe there

         8       are substitutions at the desk.  If we could

         9       make them at this time.

        10                  ACTING PRESIDENT GRIFFO:    The

        11       Secretary will read.

        12                  THE SECRETARY:    On page 13,

        13       Senator Skelos moves to discharge, from the

        14       Committee on Health, Assembly Bill Number 9471

        15       and substitute it for the identical Senate

        16       Bill Number 6504, Third Reading Calendar 47.

        17                  On page 15, Senator Maltese moves

        18       to discharge, from the Committee on Civil

        19       Service and Pensions, Assembly Bill Number

        20       9820 and substitute it for the identical

        21       Senate Bill Number 6689A, Third Reading

        22       Calendar 73.

        23                  And on page 28, Senator Larkin

        24       moves to discharge, from the Committee on

        25       Higher Education, Assembly Bill Number 9401



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        367



         1       and substitute it for the identical Senate

         2       Bill Number 6458, Third Reading Calendar 278.

         3                  ACTING PRESIDENT GRIFFO:    The

         4       substitutions are so ordered, and the bills

         5       will retain their place on the Third Reading

         6       Calendar.

         7                  Senator Skelos.

         8                  SENATOR SKELOS:    Mr. President,

         9       if we could go to the noncontroversial reading

        10       of the calendar and, with the consent of the

        11       sponsors, lay aside Calendar Numbers 47, 133,

        12       156, 243, 275, and 278.

        13                  ACTING PRESIDENT GRIFFO:    Those

        14       bills are laid aside for the day.

        15                  The Secretary will read.

        16                  THE SECRETARY:    Calendar Number

        17       73, substituted earlier by Member of the

        18       Assembly Abbate, Assembly Print Number 9820,

        19       an act to amend the Retirement and Social

        20       Security Law.

        21                  SENATOR DUANE:    Lay it aside,

        22       please.

        23                  ACTING PRESIDENT GRIFFO:    The

        24       bill is laid aside.

        25                  THE SECRETARY:    Calendar Number



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        368



         1       344, by Senator Bruno, Senate Print 6950, an

         2       act to amend the Racing, Pari-Mutuel Wagering

         3       and Breeding Law and the Real Property Tax

         4       Law.

         5                  SENATOR DUANE:    Lay it aside,

         6       please.

         7                  ACTING PRESIDENT GRIFFO:    The

         8       bill is laid aside.

         9                  Senator Skelos.

        10                  SENATOR SKELOS:    Mr. President,

        11       if we can go to the controversial calendar.

        12                  And would you please call up

        13       Calendar Number 73, by Senator Maltese.

        14                  ACTING PRESIDENT GRIFFO:    The

        15       Secretary will read Calendar Number 73 on the

        16       controversial calendar.

        17                  THE SECRETARY:    Calendar Number

        18       73, by Member of the Assembly Abbate, Assembly

        19       Print Number 9820, an act to amend the

        20       Retirement and Social Security Law.

        21                  SENATOR DUANE:    Explanation,

        22       please.

        23                  ACTING PRESIDENT GRIFFO:    Senator

        24       Maltese, an explanation has been requested.

        25                  SENATOR MALTESE:    Mr. President,



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        369



         1       this is an act to amend the Retirement and

         2       Social Security Law in relation to the

         3       establishment of retirement programs, to

         4       permit members of the New York City Teachers

         5       Retirement System and certain members of the

         6       Board of Education Retirement System who are

         7       subject to such law to retire prior to age 62

         8       without a reduction in their retirement

         9       allowance based upon such earlier retirement,

        10       and to make conforming and technical

        11       amendments.

        12                  Basically this establishes a

        13       retirement program to permit members of the

        14       New York City Teachers Retirement System and

        15       certain members of the Board of Education

        16       Retirement System to retire prior to age 62

        17       without a reduction to their retirement

        18       allowance based upon such earlier retirement.

        19                  This bill is at the request of the

        20       Mayor and the UFT.  The City of New York, as

        21       part of their New York contract agreement with

        22       the UFT, provided for the parties to negotiate

        23       a cost-neutral 25/55 retirement for New York

        24       City teachers only.  This proposal will affect

        25       only the New York City Teachers Retirement



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        370



         1       System.

         2                  This is an agreement after

         3       discussions during the past year, and it

         4       consists of basically of two parts, one for

         5       existing employees and the other for new

         6       employees.

         7                  For the existing employees,

         8       existing employees would have a 180 day opt-in

         9       window to participate in the 25/55 retirement

        10       plan.  These employees would not be mandated

        11       to pay for the additional contribution of

        12       1.85 percent for their previous years of

        13       service, but they would have to pay the going

        14       forward for each year until they retire.

        15                  So in effect, if there is an

        16       employee who is 54 years of age and has 24

        17       years of service, they would only have to pay

        18       the additional contribution for that next

        19       year, when they could in fact retire under

        20       this plan if they wanted to.

        21                  The new employees would be mandated

        22       into a 55/27 plan.  These employees would be

        23       required to pay the additional contribution of

        24       1.85 percent on top of their current

        25       contributions for the full time of service



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        371



         1       until they retire.  Upon the attainment of

         2       both 55 years of age and 27 years of service,

         3       these employees could retire if they wished

         4       to.

         5                  Fiscal note.  For the fiscal years

         6       2009 and later, for -- let's see.  Generally

         7       increase beginning fiscal year -- the impact

         8       is -- the impact of this proposed legislation

         9       is dependent upon the actual numbers of

        10       members who elect to join the age 55 program.

        11       The actuary prefers to determine employer

        12       contributions based on those members who

        13       actually become participants as of June 30,

        14       2008.

        15                  It is estimated that employer

        16       contributions to this would increase in the

        17       fiscal year 2009 by approximately

        18       $99.2 million, and by a comparable percentage

        19       of payroll thereafter.

        20                  The Assembly counterpart, by

        21       Assemblyman Abbate, has already passed the

        22       Assembly.

        23                  ACTING PRESIDENT GRIFFO:    Thank

        24       you, Senator Maltese.

        25                  Senator Duane.



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        372



         1                  SENATOR DUANE:    Thank you,

         2       Mr. President.  If the sponsor would yield.

         3                  ACTING PRESIDENT GRIFFO:    Will

         4       the sponsor yield?

         5                  SENATOR MALTESE:    Yes.

         6                  ACTING PRESIDENT GRIFFO:    Senator

         7       Duane.

         8                  SENATOR DUANE:    Thank you,

         9       Mr. President.

        10                  How broad is the range of dollars

        11       that could potentially be incurred by passage

        12       of this legislation?  In other words, what is

        13       the lowest anticipated amount of money that it

        14       would cost as part of a fiscal note to what is

        15       the largest amount possible?

        16                  ACTING PRESIDENT GRIFFO:    Senator

        17       Maltese.

        18                  SENATOR MALTESE:    Well,

        19       Mr. President, according to the fiscal impact

        20       statement, the actuaries are indicating to us

        21       that they want to base it, as of June 30,

        22       2008, on how many members opt in.

        23                  They are indicating to us that it

        24       would increase in fiscal year 2009 by

        25       approximately $99.2 million and by a



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        373



         1       comparable percentage of payroll thereafter.

         2                  ACTING PRESIDENT GRIFFO:    Senator

         3       Duane.

         4                  SENATOR DUANE:    Thank you,

         5       Mr. President.  And through you, if the

         6       sponsor would continue to yield.

         7                  SENATOR MALTESE:    Yes.

         8                  ACTING PRESIDENT GRIFFO:    Senator

         9       Maltese continues to yield, Senator Duane.

        10                  SENATOR DUANE:    How many

        11       teachers, potentially, would we be losing from

        12       the New York City public school system if all

        13       of those eligible opted to take this

        14       retirement?

        15                  ACTING PRESIDENT GRIFFO:    Senator

        16       Maltese.

        17                  SENATOR MALTESE:    Mr. President,

        18       I didn't hear the end of the question.

        19                  ACTING PRESIDENT GRIFFO:    Could

        20       you repeat the question, Senator Duane?

        21                  SENATOR DUANE:    How many teachers

        22       would the New York City public school system

        23       lose if every teacher that was eligible to

        24       take this retirement decided to retire in

        25       June?



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        374



         1                  SENATOR MALTESE:    Mr. President,

         2       through you, we don't expect that to have a

         3       negative impact on the New York City school

         4       system.  Basically NYSUT, who requested the

         5       passage of the bill, has indicated to us that

         6       they do not feel that this would have a

         7       negative impact.

         8                  As far as the numbers, we could get

         9       the numbers of the present teachers at or

        10       around that age with that amount of service,

        11       we could get that to the good Senator

        12       subsequent to this session.

        13                  ACTING PRESIDENT GRIFFO:    Senator

        14       Duane.

        15                  SENATOR DUANE:    Through you,

        16       Mr. President, if the sponsor would continue

        17       to yield.

        18                  ACTING PRESIDENT GRIFFO:    Senator

        19       Maltese, do you continue to yield?

        20                  SENATOR MALTESE:    Yes.

        21                  ACTING PRESIDENT GRIFFO:    Senator

        22       Duane.

        23                  SENATOR DUANE:    What is the --

        24       currently, if a teacher with 25 years or more

        25       of service retired without this legislation,



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        375



         1       to what would they be entitled?

         2                  ACTING PRESIDENT GRIFFO:    Senator

         3       Maltese.

         4                  SENATOR MALTESE:    Mr. President,

         5       I think -- those figures I would have to

         6       obtain from NYSUT and get back to you.

         7                  But I'd like to just indicate from

         8       the statement of support by NYSUT:  "For

         9       employees, the enactment of this legislation

        10       would enable current and future members in

        11       affected titles to retire without penalty at

        12       age 55 or older after a full 25-year or

        13       27-year career in education, in exchange for

        14       an additional annual member contribution of

        15       1.85 percent of payroll.

        16                  "Currently, members in Tiers 2, 3

        17       and 4 experience up to a 27 percent reduction

        18       in their annual pension benefit for life if

        19       they retire prior to age 62 with less than 30

        20       years of service."

        21                  The enactment of an

        22       earlier-retirement-age benefit has been much

        23       sought after by our educators and

        24       school-related professionals alike, because it

        25       enables them to retire earlier in order to



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        376



         1       care for sick loved ones or to deal with other

         2       family or personal issues.

         3                  It is the position of both the

         4       Mayor of the City of New York, the Senate

         5       Majority, and NYSUT and the teachers union

         6       that this enables us to be competitive for

         7       teachers and not have our teachers from the

         8       city school system going to other

         9       jurisdictions to work and teach young people.

        10                  ACTING PRESIDENT GRIFFO:    Senator

        11       Duane.

        12                  SENATOR DUANE:    Through you,

        13       Mr. President, if the sponsor would continue

        14       to yield.

        15                  SENATOR MALTESE:    Yes,

        16       Mr. President.

        17                  ACTING PRESIDENT GRIFFO:    Senator

        18       Duane.

        19                  SENATOR DUANE:    Right now, if a

        20       teacher is in Tier 3 and they retire after 25

        21       years, what is the package that they get?

        22                  And the second part of that is, why

        23       was the decision made by the sponsor not to

        24       include Tier 3 in this legislation?

        25                  SENATOR MALTESE:    Mr. President,



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        377



         1       through you, I don't have the exact figures on

         2       that.  It's something we could obtain for the

         3       good Senator from UFT and NYSUT after this

         4       session.

         5                  We have been assured by all parties

         6       involved, and certainly in previous

         7       discussions with the Assembly, that this is

         8       something they need, this is something they

         9       want.  And all those legislators interested in

        10       the education of our young people should be

        11       for this legislation.

        12                  SENATOR DUANE:    Mr. President, if

        13       the sponsor would continue to yield.

        14                  ACTING PRESIDENT GRIFFO:    Senator

        15       Maltese, will you continue to yield?

        16                  SENATOR MALTESE:    Yes.

        17                  But prior to yielding, I'd like to

        18       remind the Senator and other Senators involved

        19       that this was a result of a contract

        20       previously negotiated and agreed to by all

        21       parties.

        22                  ACTING PRESIDENT GRIFFO:    So

        23       noted.

        24                  Senator Duane.

        25                  SENATOR DUANE:    Thank you,



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        378



         1       Mr. President.  The sponsor is continuing to

         2       yield?

         3                  ACTING PRESIDENT GRIFFO:    Yes.

         4                  SENATOR MALTESE:    Yes.

         5                  SENATOR DUANE:    Why was the

         6       decision made only to have this be for

         7       New York City teachers?  Why not for teachers

         8       statewide?

         9                  ACTING PRESIDENT GRIFFO:    Senator

        10       Maltese.

        11                  SENATOR MALTESE:    Mr. President,

        12       the reason for that is that this was a

        13       negotiation, as I've indicated earlier, a

        14       negotiation agreed to.  And they were the

        15       ones, the parties to the contractual

        16       agreement.

        17                  And, Mr. President, with your

        18       consent, I'd like to indicate, in view of

        19       many, many circumstances today, I'll be glad

        20       to entertain an additional question from the

        21       good Senator.

        22                  ACTING PRESIDENT GRIFFO:    Okay.

        23                  Senator Duane.

        24                  SENATOR DUANE:    Thank you,

        25       Mr. President, but I actually didn't catch



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        379



         1       what the Senator said at the end, after

         2       "entertain."

         3                  SENATOR MALTESE:    Mr. President,

         4       what I'm saying is that this contract has been

         5       around a while, it's been much negotiated,

         6       it's been much covered by the press.  Both

         7       unions have indicated by leaflets and mailings

         8       to their members.  The entire contract is

         9       available for perusal by the good Senator.

        10                  And in view of all that, I would

        11       indicate that I'll take one more question and

        12       that's all.

        13                  ACTING PRESIDENT GRIFFO:    Do you

        14       have any further questions, Senator Duane?

        15                  SENATOR DUANE:    Yes,

        16       Mr. President, I do.

        17                  SENATOR MALTESE:    Mr. President,

        18       if the good Senator would indicate what he

        19       feels is his premier, paramount question, I'll

        20       be very happy to answer it.

        21                  ACTING PRESIDENT GRIFFO:    Thank

        22       you, Senator Maltese.

        23                  Senator Duane?

        24                  SENATOR DUANE:    Thank you,

        25       Mr. President.



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        380



         1                  On an issue so important fiscally

         2       for the City of New York and indeed for the

         3       State of New York, it would be extremely hard

         4       for me to prioritize my questions, because

         5       they're all very, very important.

         6                  And so I'm not going to be able --

         7       I don't want my next question to be

         8       misinterpreted in any way as the premier

         9       question.  But I will ask the next question on

        10       my list of questions.

        11                  What is the average salary of those

        12       teachers who are eligible or those who will be

        13       affected?  And by that I mean, just to be as

        14       specific as I possibly can be, it's

        15       1.85 percent of what amount?

        16                  ACTING PRESIDENT GRIFFO:    Could

        17       you repeat that question, Senator Duane?

        18                  SENATOR DUANE:    Yes,

        19       Mr. President.

        20                  What is the average salary of the

        21       teachers who are affected by this legislation,

        22       those who could take this retirement?  In

        23       other words, when the sponsor said that it was

        24       1.85 percent of their salary, what is that --

        25       what I'd really like is to know the average



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        381



         1       salary and the median salary of those teachers

         2       who would be potentially taking this

         3       retirement plan.

         4                  ACTING PRESIDENT GRIFFO:    Senator

         5       Maltese.

         6                  SENATOR MALTESE:    Mr. President,

         7       I'm not an actuary.  One of the reasons that I

         8       became an attorney and a legislator is because

         9       I had a great deal of difficulty.

        10       Fortunately, my daughter is a CPA.  If she was

        11       here today, she'd be able to answer that

        12       question.

        13                  I suggest that Senator Duane

        14       contact the UFT or the mayor.  These figures

        15       were available to them.  I believe they're

        16       covered in the contract when they figured out,

        17       when the actuaries figured out the

        18       percentages.  And I suggest again, most

        19       respectfully, that the Senator read the

        20       contract.

        21                  ACTING PRESIDENT GRIFFO:    Thank

        22       you, Senator Maltese.

        23                  Senator Duane.  On the bill?

        24                  SENATOR DUANE:    Mr. President,

        25       I'd like to try to ask the sponsor another



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        382



         1       question.

         2                  SENATOR MALTESE:    Mr. President,

         3       I will not yield to an additional question at

         4       this time.

         5                  ACTING PRESIDENT GRIFFO:    Thank

         6       you, Senator Maltese.

         7                  Senator Duane, do you wish to speak

         8       on the bill?

         9                  SENATOR DUANE:    Yes,

        10       Mr. President, I will speak on the bill.

        11                  Well, first, I just have to put out

        12       there how saddened I am that the sponsor of a

        13       piece of legislation that is so important and

        14       has such an enormous fiscal impact on the City

        15       of New York and on the State of New York, that

        16       the sponsor of that legislation is unfamiliar

        17       with the range of the fiscal impact that it

        18       could have.

        19                  And I think that we're facing a

        20       downturn in our state's economy, we don't

        21       really know what the next revision of the

        22       revenue will be in New York State.  And the

        23       city hasn't by any means come close to

        24       completing their budget; they won't be doing

        25       it until June.  We have no idea what the



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        383



         1       fiscal downturn might be there.

         2                  And so for us to be doing this --

         3       and, you know, of course I think that I and

         4       probably most, if not all, of the members of

         5       my conference are very favorably inclined

         6       toward this.  But unlike others, we usually

         7       like to know what the fiscal impact is more

         8       precisely.

         9                  And it's nice that the sponsor has

        10       suggested I read the contract, but it sounds

        11       to me like perhaps we're both guilty of not

        12       having read the contract.  But I do have to

        13       say it's his bill, not mine.  So you would

        14       think he would have read the contract.  And

        15       maybe instead of -- maybe he didn't admonish

        16       me, but making the suggestion that I read the

        17       contract, maybe he should have read the

        18       contract first.

        19                  So, you know, I'm willing to be

        20       corrected on that, but there probably won't be

        21       an opportunity since I'm not going to be

        22       asking any more questions.  So there won't be

        23       any way to respond to that, which is always --

        24       I hate to not have a chance to respond, as

        25       many of you know.  Not that I always have to



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        384



         1       have the last word, but I like to be able to

         2       respond.  But I digress.

         3                  Now, unfortunately, there were a

         4       lot of allusions made to it was negotiated and

         5       they negotiated.  And I would have liked to

         6       have had more precise language, because I

         7       think some of the time the negotiations around

         8       this piece of legislation were between the

         9       City of New York and the UFT.  Although some

        10       of it may have been between NYSUT and the

        11       state.  And some of it might have been between

        12       the UFT and the Majority, and some of it might

        13       have been with the UFT and the Assembly

        14       majority.

        15                  And I'm not going to ask any of my

        16       colleagues, but I'm sure the UFT also

        17       consulted with members of my conference.  And

        18       I'm sure that NYSUT consulted with members of

        19       my conference on this as well.  But since I

        20       have the floor, I'm not going to go there

        21       right now.

        22                  But you see where my confusion

        23       would have been with all of this discussion --

        24       it was negotiated and they negotiated and we

        25       negotiated.  And was it the chairs of the



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        385



         1       Finance Committees?  Were the rankers of the

         2       Finance Committees involved?  Was the speaker

         3       of the City Council involved?  Was the Finance

         4       chair of the City Council involved?

         5                  You can see where I would be

         6       puzzled by this.  But I guess I'll have to go

         7       without answers.  And frankly, I don't think

         8       the answers to those questions would be in the

         9       contract.

        10                  Anyway, now, I think that it is

        11       unfortunate, also, that we are not going to be

        12       able to get the answer on why it is that -- or

        13       a more precise answer on why this is just a

        14       retirement package or possibility, if you

        15       will, being offered to New York City teachers

        16       and not to teachers around the state.

        17                  I mean, it's possible that Nassau

        18       County teachers have the right to take

        19       advantage of this, but I don't know that to be

        20       a fact.  And it would be sad if they couldn't.

        21       Suffolk County, also sad.  Less time for

        22       people to enjoy those beautiful beaches in

        23       retirement.  I don't know whether Syracuse

        24       teachers have less time to go skiing.

        25                  It's always a shame when people are



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        386



         1       too old to go skiing because they're unable to

         2       retire, and the ski season is predominantly

         3       during the school year.  And yet those

         4       teachers who choose to live in the Snow Belt,

         5       unable to use the best years of their lives

         6       skiing -- not that the years later on aren't

         7       great years, but usually your skiing

         8       capability diminished.  I know, mine too.  I

         9       have a new hip.  I'm not even 55; my skiing

        10       capacity is vastly diminished.

        11                  But I would have liked to have

        12       known why it is that only New York City

        13       teachers -- and I represent New York City, so

        14       more power to them that they were able to

        15       negotiate this.  But I am curious as to why

        16       they -- maybe they're going first.  Maybe

        17       we're going to see how it works out with them

        18       and then we'll see how it is with other

        19       teachers.  Right?  Possibly; right?

        20                  Maybe Westchester would be next.

        21       Maybe the teachers in Westchester; right?  I

        22       mean, you know, there -- will this increase

        23       property taxes in Westchester?

        24                  Buffalo, who wouldn't want to

        25       retire at 55 if you live in Buffalo?  Right?



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        387



         1       Who among us would not want to retire at 55

         2       and enjoy activities in Buffalo?  Gambling,

         3       football -- but not gambling on football.

         4                  I would have liked to have known,

         5       but I'm not going to know, I guess, as part of

         6       this debate.  But I hope I'll find out

         7       afterwards.

         8                  I also am wondering who else is

         9       being entitled besides the New York City

        10       teachers to the 25/55 elements of this

        11       legislation.

        12                  ACTING PRESIDENT GRIFFO:    Senator

        13       Duane.

        14                  SENATOR DUANE:    Thank you,

        15       Mr. President.  So much to say about this

        16       bill.  And even though my time is not

        17       fleeting, I have decided to let people have

        18       their own thoughts about this legislation.

        19                  And I'm sure that the sponsor and

        20       all of the other people involved will be more

        21       than happy to answer any questions on the

        22       side.  And I'm sure that the contract could be

        23       made available to anyone that wants to read it

        24       by next time we're in session.

        25                  Thank you, Mr. President.



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        388



         1                  ACTING PRESIDENT GRIFFO:    Thank

         2       you, Senator Duane.

         3                  Any other member wishing to be

         4       heard?

         5                  Debate is closed.  Ring the bells,

         6       please.

         7                  Read the last section.

         8                  THE SECRETARY:    Section 2.  This

         9       act shall take effect immediately.

        10                  ACTING PRESIDENT GRIFFO:    Call

        11       the roll.

        12                  (The Secretary called the roll.)

        13                  ACTING PRESIDENT GRIFFO:    Senator

        14       Maziarz, to explain his vote.

        15                  SENATOR MAZIARZ:    Thank you,

        16       Mr. President, to explain my vote.

        17                  I was waiting here anticipating

        18       some of the representatives of the city of

        19       Buffalo to get up to take exception to Senator

        20       Duane's comments about the city of Buffalo.

        21       And since they didn't, I will.

        22                  Mr. President, as a proud resident

        23       of western New York -- not a resident of the

        24       city of Buffalo, not a representative of the

        25       city of Buffalo -- for the record, I take



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        389



         1       exception to Senator Duane's comments about

         2       Buffalo.

         3                  Buffalo is a great place to live,

         4       work, raise a family.  And it is the permanent

         5       home of the Buffalo Bills.

         6                  Thank you, Mr. President.

         7                  (Laughter.)

         8                  ACTING PRESIDENT GRIFFO:    Senator

         9       Maziarz, how do you vote?

        10                  SENATOR MAZIARZ:    I vote in the

        11       affirmative.

        12                  ACTING PRESIDENT GRIFFO:    Senator

        13       Maziarz to be recorded in the affirmative.

        14                  Senator Duane, to explain his vote.

        15                  SENATOR DUANE:    Thank you,

        16       Mr. President.

        17                  ACTING PRESIDENT GRIFFO:    May I

        18       remind you, under Rule 9, two minutes.

        19                  SENATOR DUANE:    Yes,

        20       Mr. President, I am quite aware.

        21                  ACTING PRESIDENT GRIFFO:    Thank

        22       you, Senator Duane.

        23                  SENATOR DUANE:    I believe that my

        24       comments may have been misinterpreted about

        25       Buffalo, a city in which I've spent a great



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        390



         1       deal of time and which I like very much.  In

         2       which I've spent, as I say, a very large

         3       amount of time.

         4                  My hesitation should not have been

         5       misinterpreted as anything but that I had

         6       actually used up a couple of things I was

         7       going to say about Buffalo for other areas,

         8       and so I was just trying to quickly come up

         9       with unique things to say about the city of

        10       Buffalo.

        11                  So, you know, I'm sorry if my

        12       comments were misinterpreted.  I would in no

        13       way and I would never, ever say anything but

        14       positive things about the city of Buffalo, a

        15       city in which I, as I say, have spent a great

        16       deal of time and which I have enjoyed spending

        17       time in and which I plan on going back and

        18       visiting many times in the future, and where,

        19       frankly, I've really not had any downtime

        20       because there was so much to do.

        21                  So I'm sorry if it came off that

        22       way.  I didn't intend for it to come off that

        23       way.  I am a big fan of the city of Buffalo.

        24                  Thank you, Mr. President, I vote

        25       yes.



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        391



         1                  ACTING PRESIDENT GRIFFO:    Senator

         2       Duane to be recorded in the affirmative.

         3                  SENATOR MAZIARZ:    For the record,

         4       apology accepted.

         5                  ACTING PRESIDENT GRIFFO:    Apology

         6       is accepted.

         7                  Announce the results.

         8                  THE SECRETARY:    Those Senators

         9       absent pursuant to Rule 9, Senator O. Johnson.

        10                  Those Senators absent from voting,

        11       Senators Bonacic and Farley.

        12                  Ayes, 53.  Nays, 0.

        13                  ACTING PRESIDENT GRIFFO:    The

        14       bill is passed.

        15                  Senator Bruno.

        16                  SENATOR BRUNO:    Thank you,

        17       Mr. President.

        18                  With the consent of the Minority,

        19       can we at this time return to the

        20       noncontroversial calendar and take up Bill

        21       Number 344.

        22                  ACTING PRESIDENT GRIFFO:    So

        23       ordered.  On the noncontroversial calendar,

        24       the Secretary will read.

        25                  THE SECRETARY:    In relation to



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        392



         1       Calendar Number 344, Senator Bruno moves to

         2       discharge, from the Committee on Racing,

         3       Gaming and Wagering, Assembly Bill Number 9998

         4       and substitute it for the identical Senate

         5       Bill Number 6950, Third Reading Calendar 344.

         6                  ACTING PRESIDENT GRIFFO:

         7       Substitution so ordered.

         8                  Senator Bruno.

         9                  SENATOR BRUNO:    Mr. President, is

        10       there a message of necessity and appropriation

        11       from the Governor?

        12                  ACTING PRESIDENT GRIFFO:    There

        13       is a message of necessity and appropriation at

        14       the desk, Senator Bruno.

        15                  The Secretary will read.

        16                  THE SECRETARY:    Calendar Number

        17       344, substituted earlier by Member of the

        18       Assembly Pretlow, Assembly Print Number 9998,

        19       an act to amend the Racing, Pari-Mutuel

        20       Wagering and Breeding Law and the Real

        21       Property Tax Law.

        22                  SENATOR BRUNO:    Move to accept

        23       the message from the Governor.

        24                  ACTING PRESIDENT GRIFFO:    All in

        25       favor of accepting the message of necessity



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        393



         1       and appropriation from the Governor signify by

         2       saying aye.

         3                  (Response of "Aye.")

         4                  ACTING PRESIDENT GRIFFO:

         5       Opposed, nay.

         6                  (No response.)

         7                  ACTING PRESIDENT GRIFFO:    The

         8       message is accepted.

         9                  Senator Bruno.

        10                  SENATOR BRUNO:    Can we call the

        11       roll on the bill that's before us on the

        12       floor.

        13                  ACTING PRESIDENT GRIFFO:    The

        14       Secretary will read the last section.

        15                  THE SECRETARY:    Section 32.  This

        16       act shall take effect immediately.

        17                  ACTING PRESIDENT GRIFFO:    Call

        18       the roll.

        19                  (The Secretary called the roll.)

        20                  ACTING PRESIDENT GRIFFO:    Senator

        21       Diaz, to explain his vote.

        22                  SENATOR DIAZ:    Thank you,

        23       Mr. President.

        24                  This is a bill that we are

        25       appropriating $105 million, plus another



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        394



         1       appropriation of $250 million to an

         2       organization that this is the second time that

         3       this organization goes into bankruptcy.

         4                  When we don't have money for the

         5       City of New York, for the New York City

         6       Housing Authority to bail out the New York

         7       City Housing Authority, we don't have money to

         8       keep hospitals open, we are cutting services

         9       to senior citizens, we are cutting services to

        10       needy people -- and we are assigning

        11       $305 million plus $250 million that we did

        12       many years ago and they never paid.

        13                  This is something ridiculous.  This

        14       is something that's -- as Curtis Sliwa said,

        15       "Disgracia."  I mean, we need money in the

        16       City of New York for housing, we need money to

        17       keep the hospitals from closing.  The Governor

        18       is saying that we have a $4 billion deficit.

        19       Cutting services to senior citizens, the City

        20       of New York Housing Authority -- I'm going to

        21       repeat myself again, the City Housing

        22       Authority of New York needs money.

        23                  We don't have money for the poor

        24       people for the city housing, but we have money

        25       to bail out a gambling organization that has



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        395



         1       been bankrupt over and over and over.  And we

         2       know, no means of paying back already

         3       $250 million.  Together we are spending

         4       $605 million on this organization.

         5                  I think that this is a waste of

         6       money to an organization that has proven to be

         7       a neglectful organization, an organization

         8       that cannot run itself.  This organization

         9       should be closed.

        10                  So, ladies and gentlemen, I'm

        11       voting no in the name of the needy people in

        12       my district.

        13                  ACTING PRESIDENT GRIFFO:    Senator

        14       Diaz, how do you vote?

        15                  SENATOR DIAZ:    No.  In the name

        16       of the needy people in my district.

        17                  ACTING PRESIDENT GRIFFO:    Senator

        18       Diaz is to be recorded in the negative.

        19                  Senator Bruno.

        20                  SENATOR BRUNO:    Mr. President,

        21       colleagues, to explain my vote.

        22                  ACTING PRESIDENT GRIFFO:    Senator

        23       Bruno, to explain his vote.

        24                  SENATOR BRUNO:    There's a lot of

        25       confusion, apparently, in some people's minds



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        396



         1       about what we're doing.

         2                  What we're doing is something that

         3       has been contemplated for years.  We are

         4       trying to fix the model that runs racing in

         5       New York State.  And we are trying to fix and

         6       increase the economic impact, the tourism,

         7       money for education, by fixing a model that we

         8       know doesn't work.

         9                  How do we know?  Because, through

        10       many administrations, we are in bankruptcy

        11       with horse racing in New York State.  We are

        12       in debt $364 million.

        13                  Now, there are, Senators, 40,000

        14       people employed, many of them your

        15       constituents.  So while we talk about a

        16       bailout, what we're really talking about is

        17       putting New York State in a position -- and I

        18       think we do a lot of that with this

        19       legislation -- so that we can be the premier

        20       racing state in the whole world.  That's the

        21       objective.  And this is a giant step in that

        22       direction.

        23                  Is this bill perfect?  Does it do

        24       everything that should have been done

        25       presently?  No, it does not.



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        397



         1                  We deferred the OTB discussion.  We

         2       had problems with the OTBs, starting with

         3       New York City.  We have to fix that.  That's

         4       critically important.

         5                  We don't have VLTs at Belmont in

         6       this bill.  We don't have them at Aqueduct.

         7       But this bill indicates that within 30 days,

         8       that will get resolved and we will make

         9       decisions going forward.

        10                  Now, why is that important?  That

        11       drives tens of millions of dollars ultimately

        12       to education.  That's really the objective.

        13       To horse racing, which is an economic

        14       impact -- just had one small community in

        15       Saratoga, it's about $220 million a year

        16       outside of the effect of the horses running.

        17       Aqueduct, Belmont.

        18                  The rest of what this bill does

        19       that you want to be aware of when you're

        20       voting up or down is it pretty well fixes the

        21       standardbred problems that we have around this

        22       state.  Vernon Downs, closed.  Tioga talking

        23       about closing.  Yonkers talking about closing.

        24       There's thousands of people employed, and

        25       there's millions of dollars in cash flow that



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        398



         1       no longer will take place.

         2                  This bill, Senators, fixes that for

         3       the standardbred tracks around this state.  It

         4       fixes it.

         5                  So the economic impact that we're

         6       making here is extremely positive.  Creates

         7       transparency, accountability.  It fixes the

         8       model that hasn't worked in this state for

         9       years and years and years.  It's a very

        10       positive thing, and I am proud to vote yes.

        11                  ACTING PRESIDENT GRIFFO:    Senator

        12       Bruno to be recorded in the affirmative.

        13                  Senator Maltese, to explain his

        14       vote.

        15                  SENATOR MALTESE:    Mr. President,

        16       I of course echo what the Majority Leader has

        17       just indicated.

        18                  On behalf of the communities in

        19       Queens County, on behalf of the people in

        20       New York City, especially the people in Ozone

        21       Park and South Ozone Park, I want to express

        22       my appreciation for the Majority Leader for

        23       staying in there and fighting for the

        24       continuation of Aqueduct.

        25                  I also wish to express appreciation



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        399



         1       to my Assembly counterparts, especially

         2       Assemblywoman Audrey Pheffer, who has fought

         3       for the people in the surrounding communities

         4       through these years of negotiations, as did

         5       Assemblyman Seminerio and Assemblywoman Titus.

         6       We represent the community most immediately

         7       involved.

         8                  At the same time, the entire State

         9       of New York is involved here, because the

        10       education of our children is at stake and the

        11       extra funds that would go toward that

        12       education.

        13                  This bill is in many ways a

        14       landmark bill, because we have been able to

        15       negotiate a place for an advisory board that

        16       can protect the surrounding community.  A

        17       community board, Community Board 10, will have

        18       input as far as the members of the advisory

        19       board.  That's important.

        20                  Tip O'Neill said at one time "All

        21       politics is local," and this is especially

        22       local for us in the surrounding community.  We

        23       are interested, we are concerned about the

        24       funds that will come to New York, that will

        25       come to our children for education.



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        400



         1                  We are also concerned that we have

         2       192 acres, a garden spot that can be returned

         3       to the city and to the state, a garden spot

         4       that at one time saw handles of over

         5       $1 million in one day, that saw attendance

         6       records being set at over 70,000.  We want to

         7       return that.

         8                  This is a step, this is a

         9       significant first step.  And I vote aye,

        10       Mr. President.

        11                  ACTING PRESIDENT GRIFFO:    Senator

        12       Maltese to be recorded in the affirmative.

        13                  Senator Larkin, to explain his

        14       vote.

        15                  SENATOR LARKIN:    Thank you,

        16       Mr. President.

        17                  You know, quite often around this

        18       house we get all wrapped up around the axle

        19       and there's no grease to move us.  But I think

        20       if you start to realize two years ago when we

        21       started this, two years ago was captured on

        22       the October 2001 that said we would do tracks,

        23       we would do VLTs.  The goal line was to create

        24       funding, to provide additional funding for

        25       schools, K through 12.



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        401



         1                  Everybody's not going to be happy

         2       with this bill.  I've never seen one in

         3       30 years that I would sign my life away for

         4       100 percent.  But the guidance that we were

         5       given from Senator Bruno and from the

         6       communities -- Senator Skelos and I had the

         7       hearing at Belmont, Senator Craig Johnson was

         8       there with us, when we went down with Senator

         9       Maltese and Aubry, with Aqueduct, and we heard

        10       their concerns.  And what we have in this bill

        11       is 99 percent of what they wanted.

        12                  They wanted an advisory, they

        13       wanted a way to say something, they were

        14       worried about the property tax NYRA had been

        15       paying which was planning to be cut out.

        16       Labor wanted to know what's going to happen to

        17       them.  And Senator Bruno said, "Listen, we're

        18       a community.  We're New Yorkers.  We're going

        19       to work for one another."

        20                  And, you know, you can all find

        21       fault with all of this.  But take a step back

        22       and look at that mirror and see what we have

        23       accomplished.  Some of the shortfalls, some of

        24       the money that we're going to put out, look

        25       and see how we're going to recover it.  And



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        402



         1       then we will be in a better position to raise

         2       additional money to put into that school.

         3                  So don't always look at the

         4       negative things.  Start to look at some of the

         5       positives.

         6                  At some of the meetings that were

         7       held here this week, that staff, Finance

         8       staff, Senator Bruno's personal staff, they

         9       were here 17, 18 hours a day.  It doesn't make

        10       them big heroes because they work in that

        11       vacuum of trying to create something so that

        12       we can vote on it.

        13                  Those of you who want to vote no on

        14       it, that's your business.  But let me just

        15       tell you one thing.  When you do it and you

        16       haven't looked at some of the issues upstate

        17       that we have, some of them that we have in the

        18       city -- our goal here was one thing, to create

        19       something that we could live with.

        20                  Can we improve on it?  Yes.  We've

        21       got to a budget to do, and we've a closing

        22       session to do.  So instead of going out and

        23       bitching, moaning and complaining, come to one

        24       of us and say, These are my concerns.

        25                  And I have to say thank you to



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        403



         1       Senator Sabini, because he was excellent in

         2       working with us on many of the issues that

         3       were essential to get this done.

         4                  Thank you.

         5                  ACTING PRESIDENT GRIFFO:    Senator

         6       Larkin will be recorded in the affirmative.

         7                  Senator Skelos.

         8                  SENATOR SKELOS:    Thank you,

         9       Mr. President.

        10                  I listened very closely to Senator

        11       Bruno and Senator Larkin.  And quite frankly,

        12       I want to congratulate them on, you know,

        13       bringing so many things to fruition, saving

        14       upstate tracks and certainly continuing

        15       racing.

        16                  My concern is, and the reason why

        17       I'll be voting no, is because of the failures

        18       throughout the year of NYRA.  And certainly I

        19       hope the changes that have been made will turn

        20       that around.

        21                  Since 1990, attendance at Belmont

        22       has dropped 60 percent, from 955,000 to

        23       378,000.  And betting has gone from

        24       $215 million to $93 million.  And certainly

        25       that is a hit on monies that we could be using



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        404



         1       for education.

         2                  My real disappointment in the

         3       process has been, quite frankly, the failure

         4       of leadership on behalf of Governor Spitzer,

         5       and the fact that Speaker Silver, day after

         6       day after day, has said no to putting VLTs at

         7       Belmont.

         8                  And as a compromise, when we came

         9       up with the concept of treating Belmont in the

        10       Elmont community -- because it's not just

        11       about Belmont, it's about the community -- as

        12       a host community where they could receive

        13       funding for economic development, they could

        14       receive funding for police protection because

        15       of the high crime rate that's caused by the

        16       track.

        17                  And the school district, where

        18       there are 77 different languages, 77 different

        19       languages spoke, they need the additional

        20       funding so that the young people can get the

        21       education that they deserve.

        22                  And I want to point out the great

        23       job that the Elmont school district is doing,

        24       despite the fact that it is a community in

        25       transition -- Caribbeans, African-Americans,



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        405



         1       Hispanic, Asians, white.  That high school has

         2       one of the highest scores in history by

         3       African-Americans in this country -- not just

         4       in this state but in this country.  And that's

         5       an indication of how well the school district,

         6       despite the odds against them and the lack of

         7       funding, how they're educating kids.

         8                  Now, NYRA.  They've fallen back on

         9       taxes by $21 million, deadbeats to Nassau

        10       County.

        11                  When the community, because of the

        12       state of disrepair, volunteered to paint the

        13       fences -- Home Depot was going to donate the

        14       paint -- NYRA said no.  They wouldn't even let

        15       them do that.  Wouldn't let them mow the lawn

        16       so the area is more presentable.  Wouldn't let

        17       them put flowers in flower boxes so the area

        18       would be more presentable.

        19                  And only when it came to the point

        20       where they were concerned, where they were

        21       concerned about the franchise being extended,

        22       did they allow the community to do something

        23       positive.

        24                  I thank Senator Bruno, because he

        25       has been there in terms of fighting to get



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        406



         1       VLTs at Belmont.  But I think we all know in

         2       this business that you need two to tango in

         3       Albany.  And the Speaker has repeatedly said

         4       no -- not to Belmont, I'm talking about the

         5       people of Elmont -- and the Governor did not

         6       show the leadership and partner with Senator

         7       Bruno to bring VLTs.

         8                  Now, the Governor has made certain

         9       statements that it's in his budget.  The

        10       Governor puts $250 million anticipated

        11       revenues from Belmont, but it is not linked to

        12       VLTs going to Belmont.  So that's a sleight of

        13       hand where I believe the Governor is wrong.

        14                  Now, some people may say to me, you

        15       know, it's not a lot of your district.  It's a

        16       good part of my district, people that live in

        17       that area.  Some people will say to you, you

        18       know, Senator Skelos, politically -- probably

        19       I get probably 30 percent of the vote there.

        20       It's a Democrat community.  And I'm sure that

        21       Governor Spitzer and some of the local

        22       Democrats that run there probably get 70, 80

        23       percent of the vote.

        24                  But it's not about the vote.  It's

        25       about doing the right thing for the great



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        407



         1       people of Elmont.  These are people, many

         2       people new immigrants, some of them

         3       participating in government for first time by

         4       being activated to do something positive for

         5       their community.  Not looking for a handout,

         6       looking for a helping hand from the Governor

         7       and the Speaker.  And that helping hand has

         8       been slapped down by them today.

         9                  So I thank you, Senator Bruno, for

        10       what you've tried to do.  And I'm hopeful,

        11       through your good efforts, that when the

        12       budget is concluded that we will have VLTs, we

        13       will have host community money -- not for

        14       Belmont, but for the people of Elmont.

        15                  ACTING PRESIDENT GRIFFO:    Senator

        16       Skelos to be recorded in the negative.

        17                  Senator Craig Johnson.

        18                  SENATOR C. JOHNSON:    Thank you,

        19       Mr. President.

        20                  To almost paraphrase from the

        21       famous movie Casablanca, I'm shocked, I'm

        22       shocked that Senator Skelos and I would agree

        23       on an issue.

        24                  I too do not support this

        25       agreement.  Simply put, this deal is a raw



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        408



         1       deal for the residents of Niagara County and

         2       in particular the residents of Elmont and

         3       Floral Park, which shares the Belmont track.

         4                  The fact is is that today we're

         5       bailing out a bankrupt entity, not once but

         6       twice.  As you may recall, there was a

         7       previous bailout of NYRA.  And we're bailing

         8       them out again today.  I'll take the phrase

         9       it's almost like we're throwing good money

        10       after bad.

        11                  The fact is is that we're not just

        12       bailing out a bankrupt entity, we're bailing

        13       out an entity that has not been a very good

        14       neighbor to the residents of Elmont and to the

        15       residents of Floral Park.

        16                  And I agree that there is a need

        17       for VLTs at Belmont.  I find it amazing that

        18       we sit here and we talk about and we hear how

        19       it's only been one partner, supposedly, that

        20       doesn't want VLTs.  But everything I've heard

        21       from the Governor is he has been fighting for

        22       VLTs at Belmont.

        23                  And this is a Governor who has been

        24       reaching out and helping the residents of

        25       Elmont.  Just two weeks, the Empire State



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        409



         1       Development Corp. announced a $2.5 million

         2       grant for the restoration of the Argo Theater

         3       in Elmont.  And I congratulate Senator Skelos;

         4       I know he had a lot to do with that -- you

         5       know, before my time -- and Assemblyman

         6       Alfano.  And I congratulate you on that.  It's

         7       a very important project.

         8                  But to sit here today and blame the

         9       Governor?  Quite frankly, the Senate Majority

        10       was at that table for over a year.  And that's

        11       something we've been fighting for and we've

        12       been asking for for over a year.

        13                  So before we blame and point

        14       fingers at one another, let's put the

        15       partisanship aside and let's talk about the

        16       needs of the Elmont and Floral Park community.

        17       Let's talk about the needs of the residents of

        18       Nassau County, a county that needs the money

        19       and the revenue from the VLTs, revenue that

        20       will go to Nassau County, hopefully go to the

        21       Village of Floral Park, go to the residents of

        22       Elmont through some sort of vehicle.

        23                  But let's talk about what's also

        24       lacking in this agreement, which is extremely

        25       troubling.  And Senator Larkin brought it up



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        410



         1       when he talked about the advisory boards.  And

         2       it's amazing that the advisory boards can

         3       exist in Saratoga -- oh, and they can exist at

         4       Aqueduct -- but no one seems to want to put in

         5       an advisory board for Elmont or for Floral

         6       Park.  There's no advisory board for Belmont

         7       Track.

         8                  The voices of Elmont and Floral

         9       Park deserve to be heard when it comes to

        10       Belmont.

        11                  I ask the Senators to drive down

        12       Route 24 -- I know Senator Skelos does it, I

        13       do it when we visit our districts.  And we do

        14       share Elmont.  And you can see the lack of

        15       economic development that goes on right by

        16       Belmont.

        17                  I listen to the voices, the same

        18       voices that came to that hearing at the Elmont

        19       Library, and they talked about wanting to have

        20       their voice heard.  And it's remarkable that

        21       in the negotiations, no one seemed to want to

        22       put in an advisory board for Elmont, or Floral

        23       Park, for Belmont.

        24                  Why is that?  Why are we silencing

        25       the voices of these residents?  These



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        411



         1       residents who work hard, who play by the

         2       rules, and who simply want to live a normal

         3       American dream -- and who have to shoulder the

         4       burden of Belmont Racetrack.

         5                  Do you know that there are chickens

         6       that run around the Belmont Racetrack, that

         7       run around the community of Elmont?  For

         8       goodness' sakes.  Why can't we have an

         9       advisory board?

        10                  Now, I will be fighting tooth and

        11       nail from this point on to make sure we get

        12       those VLTs, to make sure we get that host

        13       community money for Elmont and Floral Park,

        14       because there are two communities that share

        15       this.  But we need to have an advisory board.

        16       We need to make sure that the voices of Elmont

        17       and Floral Park that for years have been

        18       ignored by NYRA -- years, decades -- are no

        19       longer.

        20                  But today this agreement, this bill

        21       that showed up at 7 o'clock this morning,

        22       103 pages long, I cannot support.  I cannot

        23       support because it's not in the best interests

        24       of the residents of Floral Park, of Elmont,

        25       for the residents of Nassau County, for the



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        412



         1       residents of New York State.

         2                  I vote no, Mr. President.  Thank

         3       you.

         4                  ACTING PRESIDENT GRIFFO:    Senator

         5       Craig Johnson to be recorded in the negative.

         6                  Senator Sabini.

         7                  SENATOR SABINI:    Thank you,

         8       Mr. President, to explain my vote.

         9                  On a complicated matter like this,

        10       there's never going to be, as Senator Larkin,

        11       Chairman Larkin said, a perfect solution.  And

        12       there's lots that you can cite in this bill

        13       that aren't perfect.

        14                  I'm delighted that the Majority

        15       Leader mentioned OTB.  We really do have to do

        16       something for New York City OTB.  Our former

        17       mayor in New York City used to say it was the

        18       only bookmaker that couldn't make a profit.

        19                  That's not true; they make a

        20       profit.  We just have had a legislative

        21       construct over 40 years in Albany that had a

        22       lot of hands in their pocket before their

        23       balance sheet was finished.  They can't make a

        24       profit because we take the profit from them.

        25       They make money.



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        413



         1                  I'm delighted to see that there's

         2       going to be new appointments to the new,

         3       publicly scrutinized board of NYRA.  They'll

         4       have to respond to the Comptroller.  They'll

         5       have to have open meetings.  Because, frankly,

         6       their leadership has been calcified.

         7                  I voted against the last bailout.

         8       I had a lengthy colloquy with the Majority

         9       Leader on the floor here about that.  It

        10       shouldn't be lost on people that the Rosary

        11       Societies and the restaurants in Queens

        12       County -- Queens County, where Aqueduct and

        13       Belmont, some of Belmont is located, all of

        14       Aqueduct is located -- when they have a Day at

        15       the Races, where do they take their

        16       parishioners or their customers?  They go to

        17       Monmouth, in New Jersey, an hour and a half

        18       away, rather than going to Belmont.

        19                  Why?  Walk around Belmont, take a

        20       look.  The picnic tables are broken.  The

        21       grounds aren't kept.  They don't want those

        22       people there.  We don't market our tracks,

        23       NYRA doesn't market the tracks for businesses

        24       to have events like they do at the

        25       Meadowlands.  It doesn't happen.



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        414



         1                  So by putting these new people on

         2       the board, through the Governor's efforts at

         3       expanding the board, I hope he taps into some

         4       really smart people who, unlike the prior

         5       leadership of NYRA up until now, are just not

         6       interested in having their little horses run

         7       around the track, but understand that they're

         8       stewards of an asset of the people of the

         9       State of New York, that we now can claim

        10       ownership to these tracks as well as a result

        11       of this agreement.  Because it is an asset.

        12       We should be marketing them better.

        13                  And there are lots of people in the

        14       racing business now, thoroughbred and

        15       standardbred, that understand that.  And we

        16       should be tapping into their knowledge.

        17                  People like Jeff Gural, who doesn't

        18       need to be in the racing business -- he's got

        19       a very successful business on his own -- but

        20       he happens to love it.  And his tracks will

        21       flourish under this agreement.

        22                  People like Mike Dubb, who's a

        23       developer, who with his own money went into

        24       the backstretch at Belmont and created a

        25       childcare center for the children of the



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        415



         1       backstretch workers who live under deplorable

         2       conditions that NYRA let happen.  Deplorable.

         3       If we saw films of that in other countries,

         4       we'd be horrified by it, and it's right in our

         5       backyard.

         6                  So by putting new blood on the

         7       board and opening it up for public scrutiny, I

         8       believe we've done a good thing.  We shouldn't

         9       be killing off racing.  They had no right to

        10       say they were going to close today or

        11       tomorrow.  They have labor agreements.  They

        12       can't do that.  There's a state oversight

        13       board; they can't do that.  Shame on them for

        14       putting us on this brink.

        15                  And part of me said, you know what,

        16       let them try it and let them try and claim

        17       that they own the land and the plant and the

        18       equipment because they claim they paid the

        19       water bill for 50 years.  We can litigate it.

        20       We have lawyers.  They're in bankruptcy, they

        21       have other problems.

        22                  But we shouldn't play brinksmanship

        23       with what could a great asset to our state and

        24       an industry that employs lots of people

        25       throughout the state -- that actually is



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        416



         1       almost the perfect industry for New York State

         2       because of its agricultural component, because

         3       of its urban component, because of its tourism

         4       component in Saratoga.  It's a microcosm,

         5       really, of some of our economy in New York

         6       State because it has so many facets to it.

         7                  We can't let it close.  And we

         8       shouldn't let it wither on the vine, and

         9       that's what's happened for the last 25 or 30

        10       years.

        11                  So I hope that the people coming

        12       onto this board will bring new energy, new

        13       ideas.  You know, a lot of us got to meet the

        14       folks from Capital Play in this process.  They

        15       have some really brilliant ideas about

        16       marketing our racetracks.  We should be using

        17       them, using their efforts to make the tracks a

        18       place people want to go to again, so that

        19       corporate events will be held there, Day at

        20       the Races will be held there.  Places that --

        21       it will be a place that people will feel

        22       welcome at.

        23                  So rather than close down an

        24       industry that I think is important to our

        25       state, rather than lose the jobs in Queens



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        417



         1       County, I think we have to look at the

         2       totality of this.

         3                  I compliment the Governor and the

         4       Majority Leader and Chairman Larkin for their

         5       leadership on this.

         6                  I think there should have been more

         7       dialogue with all the stakeholders involved,

         8       including some people in the Legislature who

         9       have some knowledge of this.  But by and

        10       large, I think this is a solution we can live

        11       with that has the scrutiny, that has, in every

        12       four years, a sort of break point that an

        13       oversight board can stop bad things from

        14       happening, that has the Comptroller involved

        15       in scrutinizing the finances of it, that will

        16       stop things like the stupid selling off of the

        17       paintings they tried to do a few years ago to

        18       keep the doors open.

        19                  I mean, what are we talking about?

        20       This is -- it was run very, very poorly.  I

        21       admit that.  And that's why I voted no on

        22       every bailout.

        23                  I don't think this is a bailout for

        24       NYRA, I think this is an attempt to make

        25       racing good again for everyone in New York



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        418



         1       State.  And you will not recognize NYRA the

         2       way it was if the Governor has his way and

         3       this bill comes to fruition.  I believe we'll

         4       have better oversight, better management, and

         5       I hope better people involved.

         6                  I'll be voting aye.

         7                  ACTING PRESIDENT GRIFFO:    Senator

         8       Sabini to be recorded in the affirmative.

         9                  The chair would like to remind the

        10       members that we are on explanation of votes.

        11                  Senator Liz Krueger.

        12                  SENATOR DIAZ:    You called me.

        13       You called me.

        14                  ACTING PRESIDENT GRIFFO:

        15       Indicated by Senator Diaz.

        16                  SENATOR LIZ KRUEGER:    Thank you.

        17       To explain my vote.

        18                  I want to say publicly how much I

        19       appreciate Senator John Sabini's

        20       thoughtfulness about this issue and this bill

        21       and this industry.  I constantly turn to him

        22       for information and advice about where I

        23       should go on voting on issues around racing

        24       and wagering, because I confess I don't

        25       understand them very well.



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        419



         1                  And to be honest, I'm not sure I

         2       want to learn all the ins and outs of

         3       gambling, because there so many issues in

         4       state government to focus on where we haven't

         5       been doing a good job.

         6                  And yet -- and I listened to him

         7       earlier today, and I listened to him make the

         8       arguments pro and con, and I just listened to

         9       him now, and there are some better pieces of

        10       this bill, there are some parts of hopefully

        11       the future of NYRA that I can be more

        12       comfortable with.  But I end up finding myself

        13       voting no today anyway.

        14                  And I'm sorry, I do hold this

        15       chamber responsible and the Senate Republicans

        16       responsible.  You've been telling us for years

        17       you knew the right answers for racing in the

        18       state, Senators, but you didn't, and we keep

        19       making mistakes.  And we keep not having the

        20       right answers in racing and wagering.

        21                  So I heard the discussion today

        22       about all the things that couldn't be done or

        23       should have been done but aren't in this bill.

        24       And I say you've been the house leading the

        25       charge on racing and wagering.  The Assembly



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        420



         1       has been holding back in concern.  Senator

         2       Sabini's issues haven't been addressed.

         3                  I think the Governor, as Senator

         4       Sabini just said, has some good ideas that got

         5       put into this bill.  But when I sit here and

         6       ask myself the question -- we're encouraging

         7       more gambling, we're not clear, still, whether

         8       we'll actually make money for the educational

         9       system of the State of New York, we keep

        10       trying to do partial fixes that don't get us

        11       to the places other states are -- I'm not

        12       satisfied.

        13                  And I share the concerns of some of

        14       my other colleagues who spoke out before.

        15       We're in a budget year where we're told we

        16       have no money for housing, we have no money

        17       for healthcare, we're telling ou educational

        18       institutions either you can't have the money

        19       we hoped you could or you have to go into the

        20       gaming business also before you can get your

        21       money.

        22                  And I'm saying, why are we letting

        23       NYRA off the hook for the $250 million we lent

        24       them in the past because they never could

        25       figure it out?



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        421



         1                  And I share the concerns about the

         2       promise of all the money from VLTs when it's

         3       still not clear to me that we ever get the

         4       return that we say we're going to.

         5                  So I have mixed feelings about this

         6       bill and could have seen myself going either

         7       way.  But I do have to say that a bill that

         8       shows up at 7:00 a.m. in the morning on the

         9       day you're asked to vote for it, a bill where

        10       the person whose expertise I respect, Senator

        11       Sabini's concerns were not factored in enough,

        12       the fact that we've known about this issue for

        13       years and that this is the best we could do --

        14       I don't think it's good enough.  And I'll vote

        15       no.

        16                  Thank you, Mr. President.

        17                  ACTING PRESIDENT GRIFFO:    Senator

        18       Liz Krueger to be recorded in the negative.

        19                  Senator Hannon.

        20                  SENATOR HANNON:    Thank you,

        21       Mr. President.

        22                  I come looking at this bill as

        23       somewhat an outsider to the debate that's been

        24       going on.  And so I look at it with the common

        25       sense of what's been happening in the



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        422



         1       community.  And I'll address that.  But I also

         2       look at it as the common sense of what's been

         3       happening for racing in this state.

         4                  All of us, when we think about

         5       racing, if we don't follow it day to day, we

         6       think about the Kentucky Derby, part of the

         7       Triple Crown.  What's the last part of the

         8       Triple Crown?  The Belmont Stakes.

         9                  You would think, with all the

        10       criticism generated by the Governor, his

        11       Attorney General, all the criticism of NYRA by

        12       other people, that when we come to looking at

        13       racing, we'd be trying to take a vision, where

        14       are we going, what are we doing, how are we

        15       going to raise the whole level of what has

        16       been a gem of athletic events in the United

        17       States.

        18                  Senator Sabini touched upon it, the

        19       need for marketing, the need to make it a

        20       destination.  It's not here.  And while I

        21       appreciate, Senator Johnson, your comments in

        22       trying to defend the Governor, he's been

        23       silent.  Not in his State of the State, not in

        24       the budget, not in any reports.  You read the

        25       MOU that they put out, one line about Belmont.



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        423



         1                  No vision.  No direction.  No

         2       goals.  And that's what I really object to.

         3                  This Belmont Track sits at the

         4       intersection of public transportation.  The

         5       Long Island Railroad has a special station for

         6       it.  It's at the center of highways.  There's

         7       a special exit right off the Cross-Island

         8       Parkway.  There's major parking.

         9                  And what's the hallmarks of Belmont

        10       recently?  They rent the parking lot out to

        11       automobile dealers to park excess cars.  It's

        12       there for all of us to see.  It's a lack of

        13       vision.  That's my major problem.

        14                  There's been hard slogging.

        15       Senator Bruno set up his vision.  He's made

        16       proposals, he's said this is where we had to

        17       go.  You're wrong, Senator Krueger, for trying

        18       to have it both ways.  We have been in

        19       leadership.  But if you don't get an Assembly

        20       and you don't get a Governor, then you can't

        21       get anyplace.  So we've been there.

        22                  And we've also been there --

        23       Senator Larkin and Senator Skelos and I had a

        24       hearing, Senator Craig Johnson was there.  The

        25       community is outraged.  Can you imagine?  The



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        424



         1       community wants to volunteer to paint the

         2       fence, and NYRA wouldn't let them.

         3                  When the franchise started to get

         4       into the question about renewal, they had a

         5       change of plans.  But what did they do?  Not

         6       very much.  They just rented the parking lot

         7       out to more automobile car dealers.

         8                  This is only a way stop.  We need

         9       to go much further.  We need to do something

        10       with these gems of economic possibility that

        11       we have in NYRA, and we need to go further.

        12                  I'm voting no.

        13                  ACTING PRESIDENT GRIFFO:    Senator

        14       Hannon to be recorded in the negative.

        15                  Senator Bruno.

        16                  SENATOR BRUNO:    There being no

        17       further speakers to explain their vote, I

        18       would like to just commend Senator Larkin, and

        19       Assemblyman Gary Pretlow in the other house,

        20       and Senator Sabini for the good work that was

        21       done here to get a new NYRA in place.

        22                  And that's what this is.  A new

        23       NYRA, a giant step forward, as we have all,

        24       that are supporting this, discussed.  And it

        25       is a giant step, not the final step.  There's



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        425



         1       lots more that can be done.  But we're doing

         2       something that is very positive for the

         3       19 million people, 40,000 employees, and for

         4       the educational system here in New York State.

         5                  So, Mr. President, can we call the

         6       vote.

         7                  ACTING PRESIDENT GRIFFO:    The

         8       Secretary will announce the results.

         9                  THE SECRETARY:    Those recorded in

        10       the negative on Calendar Number 344 are

        11       Senators Adams, Diaz, Dilan, Duane, Fuschillo,

        12       Hannon, Hassell-Thompson, C. Johnson,

        13       L. Krueger, Marcellino, Padavan, Parker,

        14       Perkins, Sampson, Schneiderman, Serrano and

        15       Skelos.

        16                  Ayes, 39.  Nays, 17.

        17                  ACTING PRESIDENT GRIFFO:    The

        18       bill is passed.

        19                  Senator Bruno.

        20                  SENATOR BRUNO:    Mr. President, I

        21       believe there's a resolution at the desk by

        22       Senators Leibell and Saland.  I would ask that

        23       the title be read at this time and move for

        24       its immediate adoption.

        25                  ACTING PRESIDENT GRIFFO:    We'll



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        426



         1       return to motions and resolutions.

         2                  The Secretary will read Resolution

         3       4313.

         4                  THE SECRETARY:    By Senator

         5       Leibell, Legislative Resolution Number 4313,

         6       paying tribute to Rear Admiral Robert A. Rosen

         7       upon the occasion of his retirement as

         8       Commanding Officer of the New York State Naval

         9       Militia.

        10                  ACTING PRESIDENT GRIFFO:    All in

        11       favor of the resolution signify by saying aye.

        12                  (Response of "Aye.")

        13                  ACTING PRESIDENT GRIFFO:

        14       Opposed, nay.

        15                  (No response.)

        16                  ACTING PRESIDENT GRIFFO:    The

        17       resolution is carried.

        18                  Senator Bruno.

        19                  SENATOR BRUNO:    Mr. President, is

        20       there any further business at the desk?

        21                  ACTING PRESIDENT GRIFFO:    There

        22       is no further business, Senator Bruno, before

        23       the desk.

        24                  SENATOR BRUNO:    There being no

        25       further business to come before the Senate at



                      Candyco Transcription Service, Inc.
                                (518) 371-8910
                                                        427



         1       this time, I would move that we stand

         2       adjourned until Monday, February 25th, at

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

         4       days.

         5                  Everyone be safe and be well.

         6                  ACTING PRESIDENT GRIFFO:    Thank

         7       you, Senator Bruno.

         8                  On motion, the Senate stands

         9       adjourned until Monday, February 25th, at

        10       3:00 p.m., intervening days being legislative

        11       days.

        12                  (Whereupon, at 3:20 p.m., the

        13       Senate adjourned.)

        14

        15

        16

        17

        18

        19

        20

        21

        22

        23

        24

        25



                      Candyco Transcription Service, Inc.
                                (518) 371-8910