Regular Session - May 7, 2008

                                                            1851



         1                 NEW YORK STATE SENATE

         2

         3

         4                THE STENOGRAPHIC RECORD

         5

         6

         7

         8

         9                   ALBANY, NEW YORK

        10                      May 7, 2008

        11                      11:12 a.m.

        12

        13

        14                    REGULAR SESSION

        15

        16

        17

        18  SENATOR THOMAS P. MORAHAN, Acting President

        19  STEVEN M. BOGGESS, Secretary

        20

        21

        22

        23

        24

        25



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

         2                  ACTING PRESIDENT MORAHAN:    The

         3       Senate will come to order.

         4                  I ask for everyone present to

         5       please rise and repeat with me the Pledge of

         6       Allegiance.

         7                  (Whereupon, the assemblage recited

         8       the Pledge of Allegiance to the Flag.)

         9                  ACTING PRESIDENT MORAHAN:    In the

        10       absence of clergy, I ask all of us to bow our

        11       heads for a moment of silence.

        12                  (Whereupon, the assemblage

        13       respected a moment of silence.)

        14                  ACTING PRESIDENT MORAHAN:

        15       Reading of the Journal.

        16                  THE SECRETARY:    In Senate,

        17       Tuesday, May 6, the Senate met pursuant to

        18       adjournment.  The Journal of Monday, May 5,

        19       was read and approved.  On motion, Senate

        20       adjourned.

        21                  ACTING PRESIDENT MORAHAN:

        22       Without objection, the Journal stands approved

        23       as read.

        24                  Presentation of petitions.

        25                  Messages from the Assembly.



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         1                  Messages from the Governor.

         2                  Reports of standing committees.

         3                  Reports of select committees.

         4                  Communications and reports from

         5       state officers.

         6                  Motions and resolutions.

         7                  Senator Bonacic.

         8                  SENATOR BONACIC:    Thank you,

         9       Mr. President.

        10                  ACTING PRESIDENT MORAHAN:    You're

        11       welcome, Senator.

        12                  SENATOR BONACIC:    On behalf of

        13       Senator O. Johnson, on page number 49 I offer

        14       the following amendments to Calendar Number

        15       770, Senate Print Number 7171A, and I ask that

        16       the bill retain its place on the Third Reading

        17       Calendar.

        18                  ACTING PRESIDENT MORAHAN:    The

        19       amendments are received and adopted, and the

        20       bill will retain its place on the Third

        21       Reading Calendar.

        22                  SENATOR BONACIC:    Thank you,

        23       Mr. President.

        24                  I move, on behalf of Senator

        25       Marcellino, that the following bill on the



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         1       order of first report be committed to the

         2       Committee on Rules:  Senate Number 4363,

         3       Calendar Number 1013.

         4                  ACTING PRESIDENT MORAHAN:    So

         5       ordered.

         6                  SENATOR BONACIC:    Good job,

         7       Mr. President.  Thank you.

         8                  ACTING PRESIDENT MORAHAN:    Thank

         9       you, Senator Bonacic.

        10                  Senator Skelos.

        11                  SENATOR SKELOS:    Mr. President,

        12       there will be an immediate meeting of the

        13       Rules Committee in the Majority Conference

        14       Room.

        15                  ACTING PRESIDENT MORAHAN:    There

        16       will be an immediate meeting of the Rules

        17       Committee in the Majority Conference Room.

        18                  The Senate will stand at ease.

        19                  (Whereupon, the Senate stood at

        20       ease at 11:14 a.m.)

        21                  (Whereupon, the Senate reconvened

        22       at 11:21 a.m.)

        23                  ACTING PRESIDENT MORAHAN:    The

        24       Senate will come to order.

        25                  Senator Skelos.



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         1                  SENATOR SKELOS:    Thank you,

         2       Mr. President.

         3                  If we could go to the

         4       noncontroversial reading of the calendar.

         5                  ACTING PRESIDENT MORAHAN:    The

         6       Secretary will read.

         7                  THE SECRETARY:    Calendar Number

         8       271, by Senator Marcellino, Senate Print 602A,

         9       an act to amend the Navigation Law, in

        10       relation to providing.

        11                  ACTING PRESIDENT MORAHAN:    Read

        12       the last section.

        13                  THE SECRETARY:    Section 2.  This

        14       act shall take effect immediately.

        15                  ACTING PRESIDENT MORAHAN:    Call

        16       the roll.

        17                  (The Secretary called the roll.)

        18                  ACTING PRESIDENT MORAHAN:

        19       Announce the results.

        20                  THE SECRETARY:    Ayes, 56.

        21                  ACTING PRESIDENT MORAHAN:    The

        22       bill is passed.

        23                  THE SECRETARY:    Calendar Number

        24       585, by Senator Little, Senate Print 6715, an

        25       act to amend the Executive Law, in relation to



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         1       adding.

         2                  ACTING PRESIDENT MORAHAN:    Read

         3       the last section.

         4                  THE SECRETARY:    Section 2.  This

         5       act shall take effect immediately.

         6                  ACTING PRESIDENT MORAHAN:    Call

         7       the roll.

         8                  (The Secretary called the roll.)

         9                  ACTING PRESIDENT MORAHAN:

        10       Announce the results.

        11                  THE SECRETARY:    Ayes, 56.

        12                  ACTING PRESIDENT MORAHAN:    The

        13       bill is passed.

        14                  THE SECRETARY:    Calendar Number

        15       786, by Senator Flanagan, Senate Print 7155,

        16       an act to amend the Parks, Recreation and

        17       Historic Preservation Law, in relation to

        18       establishing.

        19                  ACTING PRESIDENT MORAHAN:    Read

        20       the last section.

        21                  THE SECRETARY:    Section 2.  This

        22       act shall take effect immediately.

        23                  ACTING PRESIDENT MORAHAN:    Call

        24       the roll.

        25                  (The Secretary called the roll.)



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         1                  ACTING PRESIDENT MORAHAN:

         2       Announce the results.

         3                  THE SECRETARY:    Ayes, 56.

         4                  ACTING PRESIDENT MORAHAN:    The

         5       bill is passed.

         6                  THE SECRETARY:    Calendar Number

         7       840, by Senator DeFrancisco, Senate Print

         8       6845, an act to amend the Penal Law, in

         9       relation to the crime of making a terroristic

        10       threat.

        11                  ACTING PRESIDENT MORAHAN:    Read

        12       the last section.

        13                  THE SECRETARY:    Section 3.  This

        14       act shall take effect on the first of

        15       November.

        16                  ACTING PRESIDENT MORAHAN:    Call

        17       the roll.

        18                  (The Secretary called the roll.)

        19                  ACTING PRESIDENT MORAHAN:

        20       Announce the results.

        21                  THE SECRETARY:    Ayes, 56.  Nays,

        22       1.  Senator Duane recorded in the negative.

        23                  ACTING PRESIDENT MORAHAN:    The

        24       bill is passed.

        25                  THE SECRETARY:    Calendar Number



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         1       859, by Senator Fuschillo, Senate Print 7261,

         2       an act to amend the Highway Law, in relation

         3       to designating a portion of the state highway

         4       system.

         5                  ACTING PRESIDENT MORAHAN:    Read

         6       the last section.

         7                  THE SECRETARY:    Section 3.  This

         8       act shall take effect on the 30th day.

         9                  ACTING PRESIDENT MORAHAN:    Call

        10       the roll.

        11                  (The Secretary called the roll.)

        12                  ACTING PRESIDENT MORAHAN:

        13       Announce the results.

        14                  THE SECRETARY:    Ayes, 57.

        15                  ACTING PRESIDENT MORAHAN:    The

        16       bill is passed.

        17                  THE SECRETARY:    Calendar Number

        18       870, by Senator Bonacic, Senate Print 7203, an

        19       act to amend Chapter 262 of the Laws of 2002

        20       amending the Environmental Conservation Law.

        21                  ACTING PRESIDENT MORAHAN:    Read

        22       the last section.

        23                  THE SECRETARY:    Section 2.  This

        24       act shall take effect immediately.

        25                  ACTING PRESIDENT MORAHAN:    Call



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         1       the roll.

         2                  (The Secretary called the roll.)

         3                  ACTING PRESIDENT MORAHAN:

         4       Announce the results.

         5                  THE SECRETARY:    Ayes, 57.

         6                  ACTING PRESIDENT MORAHAN:    The

         7       bill is passed.

         8                  THE SECRETARY:    Calendar Number

         9       873, by Senator Marcellino, Senate Print 7525,

        10       an act to amend the Environmental Conservation

        11       Law and the State Finance Law, in relation to

        12       collection.

        13                  ACTING PRESIDENT MORAHAN:    Read

        14       the last section.

        15                  THE SECRETARY:    Section 3.  This

        16       act shall take effect on the 120th day.

        17                  ACTING PRESIDENT MORAHAN:    Call

        18       the roll.

        19                  (The Secretary called the roll.)

        20                  ACTING PRESIDENT MORAHAN:

        21       Announce the results.

        22                  THE SECRETARY:    Ayes, 57.

        23                  ACTING PRESIDENT MORAHAN:    The

        24       bill is passed.

        25                  THE SECRETARY:    Calendar Number



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         1       900, by Senator Maziarz, Senate Print 252, an

         2       act to amend the Executive Law, in relation to

         3       creating and authorizing.

         4                  ACTING PRESIDENT MORAHAN:    Read

         5       the last section.

         6                  THE SECRETARY:    Section 4.  This

         7       act shall take effect immediately.

         8                  ACTING PRESIDENT MORAHAN:    Call

         9       the roll.

        10                  (The Secretary called the roll.)

        11                  ACTING PRESIDENT MORAHAN:

        12       Announce the results.

        13                  THE SECRETARY:    Ayes, 58.

        14                  ACTING PRESIDENT MORAHAN:    The

        15       bill is passed.

        16                  THE SECRETARY:    Calendar Number

        17       905, by Senator Volker, Senate Print 1653, an

        18       act to amend the Executive Law, in relation to

        19       instructional video on sexually predators.

        20                  ACTING PRESIDENT MORAHAN:    Read

        21       the last section.

        22                  THE SECRETARY:    Section 2.  This

        23       act shall take effect immediately.

        24                  ACTING PRESIDENT MORAHAN:    Call

        25       the roll.



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         1                  (The Secretary called the roll.)

         2                  ACTING PRESIDENT MORAHAN:

         3       Announce the results.

         4                  THE SECRETARY:    Ayes, 58.

         5                  ACTING PRESIDENT MORAHAN:    The

         6       bill is passed.

         7                  THE SECRETARY:    Calendar Number

         8       907, by Senator Padavan, Senate Print 1991, an

         9       act relating to authorizing and directing the

        10       Commissioner of General Services.

        11                  ACTING PRESIDENT MORAHAN:    Read

        12       the last section.

        13                  THE SECRETARY:    Section 3.  This

        14       act shall take effect immediately.

        15                  ACTING PRESIDENT MORAHAN:    Call

        16       the roll.

        17                  (The Secretary called the roll.)

        18                  ACTING PRESIDENT MORAHAN:

        19       Announce the results.

        20                  THE SECRETARY:    Ayes, 58.

        21                  ACTING PRESIDENT MORAHAN:    The

        22       bill is passed.

        23                  THE SECRETARY:    Calendar Number

        24       908, by Senator Seward, Senate Print 2456, an

        25       act to amend the Executive Law, in relation to



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         1       establishing.

         2                  ACTING PRESIDENT MORAHAN:    Read

         3       the last section.

         4                  THE SECRETARY:    Section 2.  This

         5       act shall take effect immediately.

         6                  ACTING PRESIDENT MORAHAN:    Call

         7       the roll.

         8                  (The Secretary called the roll.)

         9                  ACTING PRESIDENT MORAHAN:

        10       Announce the results.

        11                  THE SECRETARY:    Ayes, 58.

        12                  ACTING PRESIDENT MORAHAN:    The

        13       bill is passed.

        14                  THE SECRETARY:    Calendar Number

        15       910, by Senator Volker, Senate Print 4556, an

        16       act to amend the Executive Law, in relation to

        17       electronic equivalents.

        18                  ACTING PRESIDENT MORAHAN:    Read

        19       the last section.

        20                  THE SECRETARY:    Section 2.  This

        21       act shall take effect immediately.

        22                  ACTING PRESIDENT MORAHAN:    Call

        23       the roll.

        24                  (The Secretary called the roll.)

        25                  ACTING PRESIDENT MORAHAN:



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         1       Announce the results.

         2                  THE SECRETARY:    Ayes, 58.

         3                  ACTING PRESIDENT MORAHAN:    The

         4       bill is passed.

         5                  THE SECRETARY:    Calendar Number

         6       928, by Senator LaValle, Senate Print 3922, an

         7       act to amend the Education Law, in relation to

         8       disclosure of gifts.

         9                  ACTING PRESIDENT MORAHAN:    Read

        10       the last section.

        11                  THE SECRETARY:    Section 2.  This

        12       act shall take effect on the first of August.

        13                  ACTING PRESIDENT MORAHAN:    Call

        14       the roll.

        15                  (The Secretary called the roll.)

        16                  ACTING PRESIDENT MORAHAN:

        17       Announce the results.

        18                  THE SECRETARY:    Ayes, 58.

        19                  ACTING PRESIDENT MORAHAN:    The

        20       bill is passed.

        21                  Senator Skelos, that completes the

        22       noncontroversial reading of the calendar.

        23                  SENATOR SKELOS:    Mr. President,

        24       if we could return to reports of standing

        25       committees for the report of the Rules



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         1       Committee.

         2                  ACTING PRESIDENT MORAHAN:    The

         3       Secretary will read the report of the Rules

         4       Committee.

         5                  THE SECRETARY:    Senator Bruno,

         6       from the Committee on Rules, reports the

         7       following bills:

         8                  Restored, Senate Print 4363, by

         9       Senator Marcellino, an act to amend the Public

        10       Authorities Law;

        11                  Reported, Senate Print 3947B, by

        12       Senator Skelos, an act to amend the Tax Law;

        13                  6160B, by Senator Skelos, an act to

        14       amend the Tax Law;

        15                  7594B, by Senator Lanza, an act to

        16       amend the Tax Law and the General Business

        17       Law;

        18                  And Senate Print 7932, by Senator

        19       Maziarz, an act to amend the Tax Law.

        20                  All bills reported direct to third

        21       reading.

        22                  ACTING PRESIDENT MORAHAN:

        23       Senator Skelos.

        24                  SENATOR SKELOS:    Move to accept

        25       the report of the Rules Committee.



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         1                  ACTING PRESIDENT MORAHAN:    On the

         2       motion to accept the report of the Rules

         3       Committee, all in favor say aye.

         4                  (Response of "Aye.")

         5                  ACTING PRESIDENT MORAHAN:

         6       Opposed, nay.

         7                  (No response.)

         8                  ACTING PRESIDENT MORAHAN:    The

         9       report is accepted.

        10                  SENATOR SKELOS:    Thank you,

        11       Mr. President.  If we could take up the third

        12       reading of the Rules report.

        13                  ACTING PRESIDENT MORAHAN:    The

        14       Secretary will read.

        15                  THE SECRETARY:    Calendar Number

        16       1013, by Senator Marcellino, Senate Print

        17       4363, an act to amend the Public Authorities

        18       Law, in relation to providing.

        19                  ACTING PRESIDENT MORAHAN:    Read

        20       the last section.

        21                  THE SECRETARY:    Section 2.  This

        22       act shall take effect on the 180th day.

        23                  ACTING PRESIDENT MORAHAN:    Call

        24       the roll.

        25                  (The Secretary called the roll.)



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         1                  ACTING PRESIDENT MORAHAN:

         2       Senator Marcellino, to explain his vote.

         3                  SENATOR MARCELLINO:    Thank you,

         4       Mr. President.

         5                  This is an opportunity to basically

         6       say that the state stands behind its message

         7       that we want our motorists to conserve and not

         8       use fossil fuels whenever possible.  The

         9       purchase of high-mileage vehicles is to be

        10       encouraged.

        11                  This bill encourages that by

        12       providing a discount for vehicles that qualify

        13       on the Thruway and on the E-Z Pass tolls.

        14                  This is an important piece of

        15       legislation because it incentivizes the public

        16       to go forward and purchase these vehicles and

        17       drive in a "green" manner, and that is to

        18       protect and preserve our natural resources and

        19       to protect and preserve our environment.

        20                  Thank you, Mr. President.  I will

        21       vote aye on this important bill.

        22                  ACTING PRESIDENT MORAHAN:

        23       Senator Marcellino will be recorded in the

        24       affirmative.

        25                  Announce the results.



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         1                  THE SECRETARY:    Ayes, 58.  Nays,

         2       0.

         3                  ACTING PRESIDENT MORAHAN:    The

         4       bill is passed.

         5                  THE SECRETARY:    Calendar Number

         6       1084, by Senator Skelos, Senate Print 3947B,

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

         8       exempting.

         9                  ACTING PRESIDENT MORAHAN:    Read

        10       the last section.

        11                  THE SECRETARY:    Section 5.  This

        12       act shall take effect October 1, 2008.

        13                  ACTING PRESIDENT MORAHAN:    Call

        14       the roll.

        15                  (The Secretary called the roll.)

        16                  ACTING PRESIDENT MORAHAN:

        17       Announce the results.

        18                  THE SECRETARY:    Ayes, 58.

        19                  ACTING PRESIDENT MORAHAN:    The

        20       bill is passed.

        21                  THE SECRETARY:    Calendar Number

        22       1085, by Senator Skelos, Senate Print 6160B,

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

        24       providing tax credits.

        25                  ACTING PRESIDENT MORAHAN:    Read



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         1       the last section.

         2                  THE SECRETARY:    Section 6.  This

         3       act shall take effect immediately.

         4                  ACTING PRESIDENT MORAHAN:    Call

         5       the roll.

         6                  (The Secretary called the roll.)

         7                  ACTING PRESIDENT MORAHAN:

         8       Announce the results.

         9                  THE SECRETARY:    Ayes, 58.

        10                  ACTING PRESIDENT MORAHAN:    The

        11       bill is passed.

        12                  THE SECRETARY:    Calendar Number

        13       1086, by Senator Lanza, Senate Print 7594B --

        14                  SENATOR DUANE:    Lay it aside,

        15       please.

        16                  ACTING PRESIDENT MORAHAN:    The

        17       bill is laid aside.

        18                  THE SECRETARY:    Calendar Number

        19       1087, by Senator Maziarz, Senate Print 7932,

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

        21       biofuel production.

        22                  ACTING PRESIDENT MORAHAN:    Read

        23       the last section.

        24                  THE SECRETARY:    Section 5.  This

        25       act shall take effect immediately.



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         1                  ACTING PRESIDENT MORAHAN:    Call

         2       the roll.

         3                  (The Secretary called the roll.)

         4                  ACTING PRESIDENT MORAHAN:

         5       Announce the results.

         6                  THE SECRETARY:    Ayes, 58.

         7                  ACTING PRESIDENT MORAHAN:    The

         8       bill is passed.

         9                  Senator Skelos, that completes the

        10       noncontroversial reading of the Rules

        11       calendar.

        12                  SENATOR SKELOS:    Thank you,

        13       Mr. President.

        14                  If we could now ring the bells and

        15       inform the members that we're going to the

        16       controversial calendar.  And within a minute,

        17       we'll take up Calendar Number 1086.

        18                  ACTING PRESIDENT MORAHAN:    So

        19       ordered.  We will ring the bells to allow the

        20       Senators to return to the chamber, and we will

        21       resume in a moment or two.

        22                  SENATOR SKELOS:    Mr. President,

        23       if we could now take up Calendar Number 1086.

        24                  ACTING PRESIDENT MORAHAN:    The

        25       Secretary will read.



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         1                  THE SECRETARY:    Calendar Number

         2       1086, by Senator Lanza, Senate Print 7594B, an

         3       act to amend the Tax Law and the General

         4       Business Law.

         5                  ACTING PRESIDENT MORAHAN:

         6       Senator Duane.

         7                  SENATOR DUANE:    Thank you,

         8       Mr. President.

         9                  If the sponsor would yield, please.

        10                  ACTING PRESIDENT MORAHAN:

        11       Senator Lanza, will you yield?

        12                  SENATOR LANZA:    Yes,

        13       Mr. President.

        14                  ACTING PRESIDENT MORAHAN:    The

        15       Senator yields.

        16                  SENATOR DUANE:    Thank you,

        17       Mr. President.

        18                  When is the -- when will this tax

        19       policy take effect?

        20                  SENATOR LANZA:    Mr. President,

        21       through you, this bill provides for the

        22       suspension of taxes on gasoline and similar

        23       motor fuels between the Memorial Day and Labor

        24       Day of 2008.

        25                  SENATOR DUANE:    Through you,



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         1       Mr. President, if the sponsor would continue

         2       to yield.

         3                  ACTING PRESIDENT MORAHAN:

         4       Senator Lanza, will you continue to yield?

         5                  SENATOR LANZA:    Yes --

         6                  ACTING PRESIDENT MORAHAN:    Can we

         7       have a little quiet in the chamber, please.

         8                  SENATOR LANZA:    Yes,

         9       Mr. President.

        10                  ACTING PRESIDENT MORAHAN:    The

        11       Senator yields.

        12                  SENATOR DUANE:    Thank you.

        13                  Has this gasoline tax policy been

        14       tried in the past?

        15                  SENATOR LANZA:    Mr. President,

        16       through you --

        17                  SENATOR DUANE:    In our state?

        18                  SENATOR LANZA:    -- I believe the

        19       answer to that is no, except with the

        20       exception of legislation that was passed in

        21       2006 implementing a cap on the gasoline tax at

        22       $2 per gallon.

        23                  SENATOR DUANE:    Thank you,

        24       Mr. President.  If the sponsor would continue

        25       to yield.



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         1                  ACTING PRESIDENT MORAHAN:

         2       Senator Lanza, will you continue to yield?

         3                  SENATOR LANZA:    Yes.

         4                  ACTING PRESIDENT MORAHAN:    The

         5       Senator yields.

         6                  SENATOR DUANE:    Has this tax

         7       policy been used in any other states?  And if

         8       so, which ones?

         9                  SENATOR LANZA:    Mr. President,

        10       through you, I don't believe it has.

        11                  SENATOR DUANE:    Thank you,

        12       Mr. President.

        13                  SENATOR LANZA:    But I would add,

        14       Mr. President, that there are many states

        15       across the nation that have significantly

        16       less -- impose significantly less state tax on

        17       a gallon of gasoline.

        18                  SENATOR DUANE:    I'm sorry,

        19       Mr. President, I didn't catch that.

        20                  ACTING PRESIDENT MORAHAN:    Can't

        21       hear you, Senator.

        22                  SENATOR LANZA:    I said there are

        23       many states, even neighboring states to

        24       New York, which impose significantly less gas

        25       tax on a gallon of gasoline.



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         1                  SENATOR DUANE:    Thank you,

         2       Mr. President.  If the sponsor would continue

         3       to yield.

         4                  ACTING PRESIDENT MORAHAN:

         5       Senator Lanza, will you continue to yield?

         6                  SENATOR LANZA:    Yes, I will.

         7                  ACTING PRESIDENT MORAHAN:    The

         8       Senator yields.

         9                  SENATOR DUANE:    What are the

        10       environmental -- anticipated environmental

        11       results that are anticipated as a result of

        12       this -- should this legislation pass both

        13       house and be signed into law?

        14                  SENATOR LANZA:    Mr. President, I

        15       guess what's being implied by the question, I

        16       know that there are certain so-called

        17       environmentalists that believe the price of

        18       gasoline should cost more than it does today,

        19       that it should cost $8 or $10 or $20 a gallon,

        20       so that regular people across the state would

        21       find it harder to get into their car to drive

        22       to market, to drive to school, to go to work.

        23                  But this is a bill that would save

        24       the taxpayers of this state money.  It would

        25       deliver much-needed relief to people who are



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         1       really hurting, finding it harder to make ends

         2       meet because of the high price of gasoline.

         3                  SENATOR DUANE:    Through you,

         4       Mr. President, if the sponsor would continue

         5       to yield.

         6                  ACTING PRESIDENT MORAHAN:

         7       Senator Lanza, will you continue to yield?

         8                  SENATOR LANZA:    Yes.

         9                  ACTING PRESIDENT MORAHAN:    The

        10       Senator continues to yield.

        11                  SENATOR DUANE:    I believe there

        12       will be more discussion later on about what

        13       the savings may or may not be to consumers.

        14                  But I'm interested in what the

        15       sponsor's thoughts are, not the thoughts of

        16       what has been characterized as so-called

        17       environmentalists -- though I'm not sure

        18       exactly who the so-called environmentalists

        19       are.

        20                  But I'm curious as to what the

        21       sponsor believes the environmental impact may

        22       or may not be.  Maybe there are none; maybe

        23       there are some.  But that's the question I was

        24       trying to get an answer to, Mr. President.

        25                  ACTING PRESIDENT MORAHAN:



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         1       Senator Lanza.

         2                  SENATOR LANZA:    Mr. President,

         3       again, this is a bill that seeks to deliver

         4       relief to people who are hurting across the

         5       state, who are finding it harder to make ends

         6       meet.

         7                  As we know, the pain of higher gas

         8       prices does not end at the pump.  Every day

         9       goods and services are more expensive, from

        10       the price of milk to eggs to bread.  This is

        11       really hurting the people, hurting families,

        12       hurting business.  So the idea here is to give

        13       relief to people who need that relief.

        14                  SENATOR DUANE:    Through you,

        15       Mr. President, if the sponsor would continue

        16       to yield.

        17                  ACTING PRESIDENT MORAHAN:

        18       Senator Lanza, will you continue to yield?

        19                  SENATOR LANZA:    Yes.

        20                  ACTING PRESIDENT MORAHAN:    The

        21       Senator yields.

        22                  SENATOR DUANE:    When the hearings

        23       occurred on this bill, did any of the

        24       environmentalists, the called

        25       environmentalists or the so-called



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         1       environmentalists, did they have an opinion on

         2       the effect this legislation would have?

         3                  SENATOR LANZA:    Mr. President, I

         4       am aware of the fact that there are many

         5       people and groups who call themselves

         6       environmentalists who have expressed

         7       opposition to this bill, who have been quite

         8       honest about their reason for opposing it and

         9       saying that they believe the cost of gasoline

        10       in this state should be higher than it is

        11       today.  They believe that if the cost of

        12       gasoline were $5 a gallon or $10 a gallon or,

        13       in their wildest hopes, $20 a gallon, that it

        14       would encourage people to stay home and not go

        15       about their lives.

        16                  And so I understand the opposition

        17       that comes from certain environmental groups.

        18       But this is a bill that is much needed.

        19                  When gasoline approached $2 a

        20       gallon a couple of years ago, the Legislature

        21       in this state believed that it was a serious

        22       enough problem for the people of this state

        23       that a gas-tax cap was imposed.  And so I'm

        24       just going to have to disagree with those

        25       people or those groups who believe that



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         1       gasoline should cost more and not less.  I

         2       believe that it should cost less.

         3                  I believe we have a responsibility

         4       to deliver relief to the people of the State

         5       of New York.  And that's what this measure

         6       will do.

         7                  SENATOR DUANE:    And so,

         8       Mr. President -- I'll just ask a more

         9       simplified question -- was there a hearing or

        10       were there hearings on this bill?

        11                  ACTING PRESIDENT MORAHAN:

        12       Senator Lanza, will you continue to yield?

        13                  SENATOR LANZA:    Yes,

        14       Mr. President.

        15                  And, through you, the answer is no,

        16       there was not.

        17                  SENATOR DUANE:    Through you,

        18       Mr. President, if the sponsor would continue

        19       to yield.

        20                  ACTING PRESIDENT MORAHAN:

        21       Senator Lanza, will you continue to yield?

        22                  SENATOR LANZA:    Yes, I will.

        23                  ACTING PRESIDENT MORAHAN:    The

        24       Senator yields.

        25                  SENATOR DUANE:    Thank you,



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         1       Mr. President.

         2                  Was there a fiscal study done on

         3       this?  And if so, who conducted it?

         4                  SENATOR LANZA:    I'm sorry, I

         5       didn't hear the last part of the question.

         6                  SENATOR DUANE:    I was asking if

         7       there was a fiscal study done on the -- a

         8       fiscal impact study done on this legislation.

         9       And, if so, who conducted it?

        10                  SENATOR LANZA:    Mr. President,

        11       through you, yes.  And it was done by the

        12       Senate Finance Committee.

        13                  SENATOR DUANE:    I'm sorry,

        14       Mr. President, I missed that.  Senate Finance

        15       Committee?

        16                  SENATOR LANZA:    Yes.

        17                  ACTING PRESIDENT MORAHAN:    Senate

        18       Finance.

        19                  SENATOR LANZA:    Senate Finance.

        20                  SENATOR DUANE:    So through you,

        21       Mr. President, do we -- can we see that fiscal

        22       study?

        23                  ACTING PRESIDENT MORAHAN:    Are

        24       you asking the Senator to yield?

        25                  SENATOR DUANE:    Yes,



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         1       Mr. President.

         2                  ACTING PRESIDENT MORAHAN:

         3       Senator Lanza, will you continue to yield?

         4                  SENATOR LANZA:    Yes, I will,

         5       Mr. President.

         6                  ACTING PRESIDENT MORAHAN:    The

         7       Senator yields.

         8                  SENATOR DUANE:    And while we're

         9       checking for the answer, I just want to --

        10       sharing is always nice.

        11                  SENATOR LANZA:    Yeah, there is a

        12       fiscal impact attached to the bill,

        13       Mr. President.  It reports a static figure of

        14       approximately $600 million.

        15                  But of course, as we know in this

        16       body, that the economy is far more complicated

        17       than taking the number of gallons of gasoline

        18       that we expect to be sold during this period

        19       and multiplying it by 32 cents and coming up

        20       with a number.  That's how we arrived at that

        21       fiscal impact.

        22                  That states the worst-case

        23       scenario.  Of course, we know that this will

        24       have an economic stimulus to the economy here

        25       in the State of New York.  And so nobody knows



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         1       really what that number is.

         2                  I could tell you -- I could tell

         3       you that because of the fact that gas costs

         4       less, for instance, in the State of New Jersey

         5       because they impose lower taxes on a gallon of

         6       gas, that many people in the State of

         7       New York, many businesses in the State of

         8       New York go across the border to avail

         9       themselves of those lower prices.  And while

        10       they're there, they contribute to that

        11       economy, whether shopping or dining.

        12                  And so we know, when you consider

        13       factors like potentially increased tourism

        14       here in the state, the fact that neighboring

        15       states, residents thereof, would come here to

        16       New York to avail themselves of the lower gas

        17       price, that there would be an economic

        18       stimulus to our state.

        19                  And so I don't think anyone in this

        20       room could accurately tell you the precise

        21       impact on our economy.

        22                  SENATOR DUANE:    Through you,

        23       Mr. President, if the sponsor would continue

        24       to yield.

        25                  ACTING PRESIDENT MORAHAN:



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         1       Senator Lanza, will you continue to yield?

         2                  SENATOR LANZA:    Yes,

         3       Mr. President.

         4                  ACTING PRESIDENT MORAHAN:    The

         5       Senator yields.

         6                  SENATOR DUANE:    I don't have, and

         7       I'm not sure anyone over on this side of the

         8       aisle has the actual study that we could look

         9       at the -- you know, the methodology.

        10                  I'm wondering about the actual

        11       document, whether or not that could be shared

        12       with everybody in the chamber, all the

        13       members.

        14                  SENATOR LANZA:    Mr. President,

        15       through you, it's pretty simple.  I can give

        16       you the methodology with respect to that

        17       number.  And there was an analysis and an

        18       assessment of the number of gallons of

        19       gasoline that are expected to be consumed or

        20       sold in the state during this period of time,

        21       and simply multiplying that number by 32 cents

        22       per gallon to arrive at that number.

        23                  SENATOR DUANE:    Through you,

        24       Mr. President, I'm becoming less optimistic

        25       I'm actually going to get a copy of the study.



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         1                  So then who's -- who -- what

         2       academic person or what economist was behind

         3       the methodology for this study?  Because I

         4       don't have the study so I could look at the

         5       footnotes on whose data, where they found it.

         6       So I'm just trying to get at where these

         7       numbers are coming from.

         8                  ACTING PRESIDENT MORAHAN:

         9       Senator Lanza.

        10                  SENATOR LANZA:    Again,

        11       Mr. President, as far as, you know, the math

        12       here, it's pretty simple.

        13                  SENATOR DUANE:    I'm not -- I

        14       don't -- through you --

        15                  ACTING PRESIDENT MORAHAN:    Excuse

        16       me, Senator.  Let him continue with his

        17       answer.  If you have a further question --

        18                  SENATOR DUANE:    It's not the

        19       math.

        20                  SENATOR LANZA:    I'm not sure to

        21       which higher academic authority Senator Duane

        22       would like to hear from.  From which.  But

        23       it's pretty simple.  It's pretty simple math.

        24                  This number is arrived at by taking

        25       the number of gallons of gasoline that we



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         1       expect to sell in the State of New York during

         2       this period of time and simply multiplying

         3       that number by 32 cents per gallon and

         4       arriving at this result.

         5                  Again, that is the worst-case

         6       scenario.  I don't believe that it will be

         7       anywhere near that number, because anyone who

         8       understands anything about the economy

         9       understands that it's far more complicated

        10       than that and that there will -- certainly

        11       this will provide a stimulus to our economy

        12       which will offset that simple,

        13       simply-arrived-at mathematical number.

        14                  SENATOR DUANE:    So through you,

        15       Mr. President, if the sponsor would continue

        16       to yield.

        17                  ACTING PRESIDENT MORAHAN:

        18       Senator Lanza, will you continue to yield?

        19                  SENATOR LANZA:    Yes, I will.

        20                  ACTING PRESIDENT MORAHAN:    The

        21       Senator yields.

        22                  SENATOR DUANE:    It sounds as if

        23       we're talking about just a one-page study.  Is

        24       that correct?

        25                  SENATOR LANZA:    Mr. President, I



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         1       don't know where we're going with the study.

         2                  If anyone has any difficulty in

         3       understanding how we arrived at this number

         4       beyond the explanation I've given, which is

         5       pretty simple, eighth-grade math, we can

         6       certainly talk about it at a later date.  But

         7       I think we've gone over this issue with

         8       respect to this question sufficiently.

         9                  It's pretty simple for everyone in

        10       this chamber to understand how to arrive at

        11       that number -- which, again, ignores the

        12       economic reality and the stimulus that this

        13       bill will certainly provide, as evidenced by

        14       what's going on in other states who provide --

        15       who impose a lower tax on a gallon of gas for

        16       the residents of their state.

        17                  We know that, just for instance,

        18       people in this state go across state lines to

        19       avail themselves of that lower price.  And

        20       while they're there, they shop and dine and

        21       provide stimulus to those economies, which

        22       certainly offset the cost of the lower tax

        23       being imposed.

        24                  SENATOR DUANE:    Through you,

        25       Mr. President, if the sponsor would continue



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         1       to yield.

         2                  ACTING PRESIDENT MORAHAN:

         3       Senator Lanza, will you continue to yield?

         4                  SENATOR LANZA:    Yes.

         5                  ACTING PRESIDENT MORAHAN:    The

         6       Senator yields for another question.

         7                  SENATOR DUANE:    Thank you,

         8       Mr. President.

         9                  I'm wondering if the sponsor thinks

        10       there's any downside to sharing the study with

        11       everyone.

        12                  SENATOR LANZA:    Mr. President,

        13       through you.  Whatever analysis there is and

        14       we have, I believe there's no downside in

        15       sharing that.

        16                  SENATOR DUANE:    And then through

        17       you, Mr. President, if we could have that

        18       study put on our desks.  Because I think we'll

        19       have time.  People have a lot of questions, of

        20       course, about this.  So if we could start to

        21       just share that with all the members, that

        22       would be terrific.

        23                  Would that be okay with the

        24       sponsor?

        25                  ACTING PRESIDENT MORAHAN:



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         1       Senator Lanza.

         2                  SENATOR LANZA:    Mr. President, I

         3       think we should talk about the merits of the

         4       bill and not talk about some perceived

         5       difficulty in understanding a pretty

         6       straightforward analysis of the fiscal impact

         7       of this bill.

         8                  I've repeated a number of times

         9       here this bill seeks to eliminate the 32-cent

        10       tax that we impose on a gallon of gasoline in

        11       the State of New York, which makes gasoline in

        12       the State of New York just about the most

        13       expensive gasoline in the United States of

        14       America.  And it's hurting families, it's

        15       making it more difficult for them to make ends

        16       meet.  It's driving up the costs of just about

        17       everything, from bread to milk to eggs.

        18                  And if you want to know -- and I'll

        19       say it all day long, if you want -- the fiscal

        20       impact that we have here is derived very

        21       simply.  Very simply.  I think everyone in

        22       this chamber can understand that when you're

        23       going to take 32 cents off the price of

        24       gasoline and you calculate the number of

        25       gallons of gasoline that we expect to sell and



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         1       you multiply that number by the 32-cent

         2       savings which we are trying to deliver to the

         3       people of this state, that you come up with a

         4       number.

         5                  That number, Senator Duane, is in

         6       the neighborhood of $600 million.  That again

         7       is the worst-case scenario, because it ignores

         8       all the economic stimulus that this bill will

         9       provide to the State of New York.

        10                  ACTING PRESIDENT MORAHAN:    Thank

        11       you, Senator Lanza, for fully explaining and

        12       exploring the depth of the study about the

        13       financial impact.

        14                  (Laughter.)

        15                  ACTING PRESIDENT MORAHAN:

        16       Senator Duane.

        17                  SENATOR DUANE:    So through you,

        18       Mr. President, in the interests for this

        19       question of just getting a brief response, I'm

        20       assuming that the sponsor's answer to my

        21       question was no.

        22                  ACTING PRESIDENT MORAHAN:

        23       Senator Lanza.

        24                  SENATOR LANZA:    Yes, Mr.

        25       President.



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         1                  ACTING PRESIDENT MORAHAN:    Yes,

         2       it is a no.

         3                  SENATOR LANZA:    Senator Duane

         4       knows me well know enough to know that that

         5       was the answer.

         6                  SENATOR DUANE:    So in this case

         7       "yes" is a no, we're not getting the study.

         8                  SENATOR LANZA:    Well,

         9       Mr. President, I think that was a question,

        10       through you.

        11                  I have explained --

        12                  SENATOR DUANE:    Mr. President, I

        13       think I have the floor.

        14                  ACTING PRESIDENT MORAHAN:    Excuse

        15       me.  Senator Lanza, we'll let Senator Duane --

        16                  SENATOR LANZA:    I thought I heard

        17       a question, I'm sorry.

        18                  ACTING PRESIDENT MORAHAN:    We'll

        19       let Senator Duane finish his question or

        20       statement.

        21                  SENATOR DUANE:    I just have one

        22       economic question.

        23                  I'm just wondering if the sponsor

        24       is familiar with price --

        25                  ACTING PRESIDENT MORAHAN:



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         1       Senator Lanza, will you continue to yield?

         2                  SENATOR LANZA:    Yes,

         3       Mr. President.

         4                  ACTING PRESIDENT MORAHAN:

         5       Senator Duane, your question?

         6                  SENATOR DUANE:    If the sponsor is

         7       familiar with the concept of price elasticity,

         8       and if that has been factored into the

         9       analysis which we don't have.

        10                  SENATOR LANZA:    Mr. President,

        11       that theory exists.  Whether or not we reduce

        12       the price of gasoline in this state or not by

        13       taking and removing the tax, and so that all

        14       else being equal, if you take or remove the

        15       32-cent-per-gallon tax, the price of gasoline,

        16       according to market conditions, would go down.

        17                  Similar arguments were made a

        18       couple of years ago when the cap was placed on

        19       a gallon of gasoline at $2 a gallon.  And we

        20       see that as a result of that cap, the people

        21       of the State of New York are paying less than

        22       they would otherwise be paying if we had not

        23       instituted and imposed that cap.

        24                  SENATOR DUANE:    Through you,

        25       Mr. President, if the sponsor could continue



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         1       to yield.

         2                  ACTING PRESIDENT MORAHAN:

         3       Senator Lanza, will you continue to yield?

         4                  SENATOR LANZA:    Yes.

         5                  ACTING PRESIDENT MORAHAN:    The

         6       Senator yields.

         7                  SENATOR DUANE:    Was the State

         8       Comptroller consulted on the fiscal impacts of

         9       this bill?

        10                  SENATOR LANZA:    I apologize.  Can

        11       you repeat the question?

        12                  SENATOR DUANE:    Certainly.

        13                  Mr. President, I was wondering if

        14       the State Comptroller had been consulted on

        15       this legislation to have an opinion on the

        16       fiscal impacts.

        17                  SENATOR LANZA:    I don't know,

        18       Mr. President.

        19                  SENATOR DUANE:    And finally, my

        20       last question, Mr. President, is when was this

        21       legislation introduced?

        22                  ACTING PRESIDENT MORAHAN:

        23       Senator Lanza, you will continue to yield?

        24                  SENATOR LANZA:    Yes,

        25       Mr. President.



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         1                  It was -- I don't know precisely

         2       when it was introduced.  It was announced a

         3       couple of weeks ago.  I'll get the precise

         4       date.  April 16th, Mr. President.

         5                  SENATOR DUANE:    And I meant to

         6       make this a two-pronger.  And when was this

         7       last amended -- I'm wondering if this, through

         8       you, Mr. President --

         9                  ACTING PRESIDENT MORAHAN:

        10       Senator Lanza, will you continue to yield?

        11                  SENATOR DUANE:    When was the bill

        12       last amended?

        13                  ACTING PRESIDENT MORAHAN:

        14       Senator Lanza.

        15                  SENATOR LANZA:    I don't have the

        16       answer to that question, Mr. President.  I

        17       believe it was sometime last week.

        18                  SENATOR DUANE:    On the bill,

        19       Mr. President.

        20                  ACTING PRESIDENT MORAHAN:

        21       Senator Duane, on the bill.

        22                  SENATOR DUANE:    I'm going to be

        23       very interested and curious to listen to my

        24       colleagues on both sides of the aisle as they

        25       debate this issue.



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         1                  I am saddened, though, that there

         2       isn't an open sharing of information about

         3       this legislation.  We're in difficult fiscal

         4       times in this state.  Most New Yorkers are

         5       also facing financially extremely difficult

         6       times.  This legislation may or may not have a

         7       large fiscal impact for a number of

         8       stakeholders.  And so I think that it would be

         9       best if we had all relevant information and

        10       studies.

        11                  We have some time until Memorial

        12       Day, and I think we could actually gather more

        13       information before we made a judgment on this

        14       legislation.

        15                  So, you know, I don't see what the

        16       downside would have been to share as much

        17       information as is available.  But if that's

        18       not to be, then perhaps my colleagues and I

        19       will be able to get more information through

        20       the rest of this debate.

        21                  And with that, Mr. President, I

        22       know that many of my colleagues also have

        23       questions.  And I thank the sponsor for his

        24       indulgence with mine.

        25                  ACTING PRESIDENT MORAHAN:    You



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         1       were explaining your vote, Senator.  What is

         2       your vote?

         3                  SENATOR DUANE:    No, I was

         4       speaking on the bill, Mr. President.

         5                  ACTING PRESIDENT MORAHAN:    Okay.

         6                  Senator Krueger.

         7                  SENATOR LIZ KRUEGER:    Thank you,

         8       Mr. President.  If the sponsor would yield,

         9       please.

        10                  ACTING PRESIDENT MORAHAN:

        11       Senator Lanza, will you yield?

        12                  SENATOR LANZA:    Yes,

        13       Mr. President.

        14                  ACTING PRESIDENT MORAHAN:    The

        15       Senator yields.

        16                  SENATOR LIZ KRUEGER:    Thank you.

        17                  My colleague Senator Duane had

        18       raised some questions about the fiscal

        19       analysis you did.  So approximately,

        20       regardless of debate about the financial

        21       analysis, $600 million lost to the state

        22       budget from this proposal.  What are we

        23       proposing to cut in the state budget that we

        24       just passed, since we would have $600 million

        25       less revenue?



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         1                  SENATOR LANZA:    Well,

         2       Mr. President, I don't believe that that will

         3       be the impact of this bill.  I think to

         4       believe that, you would have to believe that

         5       nothing will change as far as people's conduct

         6       and activity, that this will not provide a

         7       stimulus to the economy.

         8                  I believe it will.  So I don't know

         9       what that impact will be, and I don't think

        10       anyone in this room knows what the impact will

        11       be.  But I do know this.  I know the impact on

        12       family budgets across the state will be

        13       positive.  When you talk about cost, there

        14       will be no cost to the people of New York.

        15       There will be a savings, a savings to people

        16       who desperately need that savings, perhaps,

        17       and need it now.

        18                  SENATOR LIZ KRUEGER:    Mr.

        19       President, if through you the sponsor will

        20       continue to yield.

        21                  ACTING PRESIDENT MORAHAN:

        22       Senator Lanza, will you continue to yield?

        23                  SENATOR LANZA:    Yes,

        24       Mr. President.

        25                  ACTING PRESIDENT MORAHAN:    The



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         1       Senator yields.

         2                  SENATOR LIZ KRUEGER:    Thank you,

         3       Mr. President.

         4                  I have to disagree.  We will lose

         5       that money in the state budget.  But following

         6       up on your point that it will be a savings to

         7       the families, I believe in some of the

         8       paperwork you talk about it saving

         9       approximately $50 per household over the

        10       course of the summer holidays.

        11                  How do we know that will happen?

        12       You're reducing the tax, but there's nothing

        13       in this bill that mandates that that tax

        14       relief actually be provided to the gasoline

        15       purchaser.  So what evidence is there that the

        16       wholesalers and retailers would move that

        17       savings to the purchaser at the pumps?

        18                  SENATOR LANZA:    Mr. President,

        19       first let me say that $50 a week or every

        20       other week or every three weeks may not be a

        21       lot to Senator Krueger and the people she

        22       represents, but it's a lot to the people I

        23       represent.  And it's a lot to the people

        24       across this state who are really hurting, who

        25       are finding that the price of everything they



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         1       consume because of higher gas prices is going

         2       up.

         3                  And driving, for people in my

         4       community -- and for many people across this

         5       state -- is not a luxury.  It's not a luxury,

         6       it's a necessity.  We don't have the billions

         7       of dollars of mass transit that the people of

         8       Manhattan are blessed with.  We've got to get

         9       in cars to get around, to live, to get our

        10       kids to school, to go to market and to shop.

        11       And so $50 makes a difference to my family and

        12       to the families I represent and to many

        13       families across this state.

        14                  With respect to the second part of

        15       the question, there's an anti-gouging measure

        16       in this bill, similar to the anti-gouging

        17       measure that was put in the bill that put a

        18       cap on the tax that we impose at $2 a gallon.

        19       So this argument was made then.

        20                  This argument, we found, did not

        21       hold true with the cap that we placed on

        22       gasoline tax.  It won't hold true here because

        23       market conditions won't allow it to happen.

        24       And we've got proof again in our neighboring

        25       state, which is only a few minutes away from



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         1       the community I represent in Staten Island,

         2       and that's New Jersey.

         3                  And the State of New Jersey imposes

         4       a lower tax on a gallon of gas than the State

         5       of New York does.  And guess what?

         6       Mysteriously, the price of gasoline in

         7       New Jersey costs less than the price of

         8       gasoline in New York.  That savings has been

         9       passed on the consumer because it makes sense

        10       to pass it on, because of the competitive

        11       nature of business.

        12                  And so we've got proof right next

        13       door that when you lower the gas tax, you

        14       lower the price of gas.  And that is what the

        15       people of the State of New York need, and they

        16       need it now.

        17                  SENATOR LIZ KRUEGER:    Mr.

        18       President, if the sponsor would continue to

        19       yield.

        20                  ACTING PRESIDENT MORAHAN:

        21       Senator Lanza, will you continue to yield?

        22                  SENATOR LANZA:    Yes,

        23       Mr. President.

        24                  ACTING PRESIDENT MORAHAN:    The

        25       Senator yields.



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         1                  SENATOR LIZ KRUEGER:    Thank you.

         2       I'm going to try again, because we didn't get

         3       to my question.

         4                  One, your bill actually proposes

         5       what would be conceivably a $50 savings if it

         6       was to be passed through over the course of

         7       the summer holiday, not one week or two weeks,

         8       just for the record.

         9                  Two, again, what in your bill moves

        10       this savings to the consumers at the gas pump?

        11       Because you reference -- and thank you for

        12       bringing it up -- we did this before, and the

        13       data shows nobody saved money.  The price of

        14       gas has skyrocketed since the cap.

        15                  The gouging law was a failed model,

        16       in that it's only a civil penalty if we

        17       declare an emergency, so it has never been

        18       used.

        19                  So again, this bill today, why is

        20       this not simply a rollover to the largest gas

        21       companies, who are making the largest profits

        22       in the history of the gas industry?  Why is

        23       this bill actually going to not simply allow

        24       them to suck up another 32 cents per gallon

        25       into their profit margin?  Where in this bill



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         1       does it say that this must be provided to the

         2       consumer at the gas pump?

         3                  SENATOR LANZA:    Mr. President,

         4       let me begin again by saying I don't know

         5       where you get this $50 number.  But let's say

         6       it is $50.  That's a lot of money to people I

         7       represent who are trying to make ends meet,

         8       who are trying to make hard choices already,

         9       raising their families and trying to go about

        10       and live out a good, decent life here in the

        11       State of New York.

        12                  Fifty dollars, if we could save

        13       people $50, if that's all we could save -- I

        14       don't know where that number is coming from.

        15       Perhaps people drive more in Staten Island.

        16       In fact, they do drive more in Staten Island

        17       than they do in Manhattan, because we have to.

        18       We have to.

        19                  So if we could save people $50, we

        20       ought to do it, because they're hurting.  When

        21       gasoline goes up 32 cents a gallon, people

        22       hurt.  And they feel it.  So I somehow -- I

        23       don't understand the argument that says if we

        24       reduce the price of gasoline by 32 cents a

        25       gallon that it really isn't worth it, that it



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         1       really isn't something.  It is something.  It

         2       will matter.

         3                  And if you want to talk about

         4       gouging and you want to talk about what the

         5       oil companies will do, let's remember one

         6       thing.  The oil companies, over the last three

         7       years, have made about 10 cents a gallon in

         8       profit, 10 cents a gallon.  Many here believe

         9       that they're gouging the people of this

        10       country.

        11                  If the oil companies are gouging

        12       the people of this country and this state by

        13       making 10 cents a gallon, what are we doing?

        14       What are we doing here in New York by charging

        15       them 32 cents a gallon?

        16                  SENATOR LIZ KRUEGER:    Mr.

        17       President --

        18                  SENATOR LANZA:    And so that's

        19       what this bill is about.

        20                  And if the Senator from Manhattan

        21       seeks to find proof that this will be passed

        22       along to the consumer, you need only look to

        23       each and every state that imposes a lower tax

        24       on a gallon of gasoline and see that in those

        25       states, again, gasoline costs less.  It costs



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         1       less because, of course -- of course -- that

         2       savings is passed along to the consumer,

         3       because the markets demand that it is.

         4                  And to say that, well, when we

         5       imposed that tax two years ago and that now

         6       gasoline is higher, to somehow suggest that

         7       that has anything to do with that cap is

         8       ridiculous.  Gasoline is up all over the

         9       country because of many factors we cannot

        10       control.  Because the price of crude oil,

        11       which is about 72 percent of the price of a

        12       gallon of gas, in every state is up, from $60

        13       a barrel to $122 a barrel this morning.

        14                  So the proof that this will lower

        15       the price of gasoline, the evidence that this

        16       will lower the price of gasoline for the

        17       people of New York is all around us.

        18                  SENATOR LIZ KRUEGER:    Mr.

        19       President, if the sponsor would continue to

        20       yield.

        21                  ACTING PRESIDENT MORAHAN:

        22       Senator Lanza, will you continue to yield?

        23                  SENATOR LANZA:    Yes, I will,

        24       Mr. President.

        25                  ACTING PRESIDENT MORAHAN:    The



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         1       Senator yields.

         2                  SENATOR LIZ KRUEGER:    Okay.  So

         3       so far in our discussion we have it maybe

         4       going to cost the state $600 million in lost

         5       revenue, with no explanation of what we'll cut

         6       out of the budget.  But we have a hypothetical

         7       that changing tax structure changes economic

         8       activity.  Fine.

         9                  Then we have a hypothetical that

        10       maybe it's $50 -- maybe it's $200.  I won't

        11       even argue that, that you say the 32 cents

        12       would save, because obviously it would be

        13       individual, based on the amount of driving

        14       that's used.

        15                  Again, I would submit that I have

        16       read your bill carefully.  There is nothing in

        17       the bill that says this money will be

        18       transferred to the consumer at the pump.  And

        19       in fact, the evidence from other states, from

        20       our own state, because we've done a cap

        21       before, is in fact that the money is not

        22       transferred to the consumer at the pump.  Just

        23       the opposite.

        24                  Seven out of the 15 counties in the

        25       State of New York who had done their own sales



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         1       tax cap when we did the cap actually have now

         2       reversed themselves, showing that their prices

         3       went up, their consumers didn't save, their

         4       counties lost money for transportation and

         5       highways and mass transit.

         6                  And ironically, the evidence from

         7       our own state is that they increased property

         8       taxes at the local level to make up for the

         9       lost tax from caps like this where the

        10       consumer didn't see a decrease in the cost of

        11       gasoline, but in fact the counties saw a loss

        12       of revenue that they then had to make up

        13       through an increase in property taxes.

        14                  So from a tax-policy perspective,

        15       this is a bit of a three-card monte game.

        16                  And in fact, while my colleague

        17       Senator Duane asked you a series of questions

        18       about your financial analysis and you admitted

        19       that there wasn't that much -- but we have a

        20       lot of hypotheticals -- there are 150

        21       economists in this country, including Nobel

        22       Prize winners, who have signed a document

        23       saying this kind of gimmick will do nothing to

        24       save people money but in fact will increase

        25       the profit margin --



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         1                  SENATOR LANZA:    Is there a

         2       question sometime in the future here?

         3                  SENATOR LIZ KRUEGER:    I am

         4       getting to the question of the oil companies,

         5       but I'm responding to your comment.  And in

         6       fact --

         7                  SENATOR LANZA:    Mr. President, is

         8       there a question anytime in the future here?

         9                  ACTING PRESIDENT MORAHAN:    Excuse

        10       me.  A little order here.

        11                  Do you have a question, Senator?

        12                  SENATOR LIZ KRUEGER:    I do.  I'm

        13       getting to it.  Thank you, Senator.

        14                  ACTING PRESIDENT MORAHAN:    Okay.

        15       It's coming.

        16                  SENATOR LIZ KRUEGER:    Thank you.

        17       It's coming.  Thank you so much, Mr.

        18       President.

        19                  SENATOR LANZA:    So is Christmas.

        20                  SENATOR LIZ KRUEGER:    In

        21       reference to also answering a point you made,

        22       in fact, the oil companies' profits have

        23       skyrocketed.  Exxon Mobil just reported a

        24       17 percent net increase in profits for the

        25       first quarter of 2008, while pump prices



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         1       continue to skyrocket.  The oil companies have

         2       pocketed well over $100 billion in profits.

         3                  But I will ask you, we know --

         4                  ACTING PRESIDENT MORAHAN:    Here

         5       it comes.

         6                  SENATOR LIZ KRUEGER:    -- and I

         7       think we agree -- thank you, Mr. President --

         8       that a fundamental problem within our country

         9       for all of our people, which are costing us

        10       far more than the 50 or 100 or 150 dollars you

        11       think your gas holiday might give someone, is

        12       our dependence on foreign oil.  How will this

        13       bill decrease our dependence on foreign oil?

        14                  SENATOR LANZA:    Mr. President,

        15       through you.

        16                  ACTING PRESIDENT MORAHAN:

        17       Senator Lanza.

        18                  SENATOR LANZA:    First, with

        19       respect to those Nobel laureates, I presume

        20       the Senator from Manhattan means Al Gore, who

        21       of course is on the record saying that gas

        22       should cost more.

        23                  SENATOR LIZ KRUEGER:    No, he

        24       wasn't one of the 150.  He doesn't --

        25                  SENATOR LANZA:    We just have a



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         1       fundamental difference of opinion.  Some

         2       people believe that gas should cost $10 a

         3       gallon so that people would not be able to get

         4       in their cars, because they don't want people

         5       to get into their cars.  They don't want

         6       people to be able to get around.  They don't

         7       want people to be able to have the freedom of

         8       travel that people in this country presently

         9       have.  They don't want that.

        10                  I could respect that position.

        11       People should be more honest about it.  Some

        12       have, like Al Gore, the Nobel laureate, who

        13       says that gas should cost a lot more so that

        14       we can keep people in their houses.  I can

        15       respect it and at the same time vehemently

        16       disagree with it.

        17                  With respect to the fact that

        18       there's proof that this won't reduce the price

        19       of gas, that is categorically untrue.  You

        20       need only look around.  Again, I hate to keep

        21       giving -- plugging our neighboring state of

        22       New Jersey, but gas costs less there.

        23                  I know.  When I come to Albany, I

        24       travel through New Jersey.  Do you know what I

        25       do?  I fill up in New Jersey.  When I leave



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         1       Albany on my way back, Mr. President, to

         2       Staten Island, you know what I do, Senator?  I

         3       fill up again.  Do you know why?  Because

         4       round trip, I save about $8.

         5                  It might not be a lot to some

         6       people, Senator Krueger, in your district; it

         7       might not be a lot to some people in

         8       Manhattan, but it's a lot to me.  It's a lot

         9       to my family.  It makes a difference.  It

        10       means a lot to the people in my district and a

        11       lot to the people of this state.  It means

        12       something.

        13                  So whether it's $6, $8, $50 or

        14       $200, people are hurting.  We can talk -- and

        15       I know Senator Krueger brought up Washington

        16       and an energy policy.  All good points.  I

        17       agree with you.  We could talk about all the

        18       reasons why we can't do something about this.

        19       Of course we need a long-term energy policy in

        20       this country.  Of course a conservation policy

        21       is something that is needed.  Of course we

        22       can't do anything about the speculation in the

        23       oil markets.  Of course we can't do anything

        24       about traditional economic pressures of supply

        25       and demand.



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         1                  Perhaps we could do something about

         2       domestic exploration.  If Senator Krueger is

         3       concerned about dependency on foreign oil,

         4       perhaps we can unlock the massive energy

         5       resources that exist right here at home in

         6       America.  But of course people like Al Gore

         7       and some of the people that have been talked

         8       about, the so-called environmentalists, they

         9       don't want us to do that either,

        10       Mr. President.  They want the price of

        11       gasoline to go up, not down.

        12                  But again, look at New Jersey,

        13       where they impose a lower tax on gasoline.

        14       And you know what you'll find?  A lower price

        15       for gasoline.  And look at other states that

        16       impose a lower tax on gasoline.  And you know

        17       what you'll find, Mr. President?  A lower

        18       price for a gallon of gasoline.

        19                  Look to New York that has one of

        20       the highest taxes, and you know what you'll

        21       find?  One of the highest prices in the United

        22       States of America on the price of gasoline.

        23       Is that a coincidence, Mr. President?  No, of

        24       course it's not a coincidence.  Gas costs more

        25       here because we impose a higher tax here.  If



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         1       we impose a lower tax in New York, gas will

         2       cost less.  What is so hard about this to

         3       understand?

         4                  And people need it.  People are

         5       hurting.  They're hurting.  And so we could

         6       talk, we can play the blame game, we can point

         7       fingers, we could talk about all the things we

         8       cannot do.  But that won't help people.

         9                  There is one thing we can do here

        10       in the State of New York.  There's one thing

        11       we can have that will have definite, immediate

        12       results.  And that is to eliminate the tax

        13       from the period of Memorial Day to Labor Day,

        14       32 cents that we put on the price of gasoline.

        15                  And annualized, annualized, that's

        16       about a 10 percent cut in the tax -- I'm

        17       sorry, it's a 40 percent cut in the tax,

        18       annualized, if we look at consumption

        19       throughout the year.  Which means it's around

        20       a 12-cent break to the people of New York

        21       State.

        22                  We can afford, Senator Krueger, we

        23       can afford to give the people of the State of

        24       New York a 12-cent annualized break in the

        25       price of gasoline.  Many people say we spend



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         1       too much.  They're right.  We can find a way

         2       to spend less.  Government should have to do

         3       what people do and families do.  Government

         4       should find a way to do more with less during

         5       difficult economic times.  That's our job.

         6       We'll find a way.  Senator Krueger, you and I

         7       and the members of this body, we'll find a

         8       way, working together, we'll find a way to do

         9       more with less.

        10                  People deserve, demand, and need

        11       relief, and that's what this will do.

        12                  SENATOR LIZ KRUEGER:    Thank you,

        13       Mr. President.  On the bill.

        14                  ACTING PRESIDENT MORAHAN:

        15       Senator Krueger, on the bill.

        16                  SENATOR LIZ KRUEGER:    Thank you.

        17       Thank you, Senator Lanza, for your -- I'm not

        18       sure they were answers to my questions, but

        19       for your passion.

        20                  We can do more.  It's not this is

        21       the only thing we could do.  I disagree.  I

        22       would even argue that we won't do this,

        23       because it's a one-house bill, so we will

        24       spend the time talking.

        25                  But this bill does not guarantee



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         1       the money goes to the consumers at the pump.

         2       And the data and the evidence shows that it

         3       won't go to the people at the pump.  So the

         4       passion to try to save the money for your

         5       constituents and my constituents -- because I

         6       would agree, my constituents feel the same way

         7       about the $8 at the gas tank or the $50 or the

         8       $100.  That is not unique to any geographic

         9       section of the State of New York.

        10                  But this bill allows the

        11       wholesalers and the refineries to keep the

        12       money rather than pass it on to the consumers.

        13       There is nothing in this bill that mandates it

        14       goes to consumers.  There is no legal way for

        15       us to require them, after this bill were to

        16       pass, if it were to pass, to give that money

        17       to the consumers at the gas pump.

        18                  And evidence from our previous

        19       attempts at this, and recorded documents from

        20       economists who aren't just saying let it be

        21       $10 a gallon but, if you read the report, say

        22       this is a fiscal gimmick that won't save

        23       people money and will increase profits for the

        24       oil refineries and the big oil companies, that

        25       this is not the way to do it even if that's



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         1       what you wanted to do.

         2                  I would argue that if this bill had

         3       moved through hearings, as Senator Duane

         4       proposed, rather than being dated I think

         5       sometime in the last two weeks, that we could

         6       have had discussions about what we could be

         7       doing to both increase energy efficiency and

         8       try to address the needs of the consumers of

         9       the State of New York.

        10                  In fact, there were several other

        11       bills we just passed on the floor that came

        12       through the Rules Committee today that are

        13       much more specific and targeted in giving tax

        14       advantages to people who will purchase new or

        15       used less-gas-guzzling cars.  All right?

        16                  We are talking about and we are

        17       moving legislation today that would give

        18       incentives to go to non-petroleum-based

        19       products for our energy system and the

        20       potential for expanding the non -- I emphasize

        21       non-corn-based ethanol, but rather the

        22       alternative forms of ethanol that are being

        23       developed.

        24                  We could, and I'm not sure where I

        25       would be on that right now, but we could



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         1       create a rebate that specifically went to

         2       people who drove their cars -- perhaps a

         3       rebate for people who drove their cars to and

         4       from work, perhaps a rebate for people who

         5       drove their cars based on a progressive model

         6       of their income -- where we could guarantee

         7       that the money would actually go to the

         8       consumer, not to the oil companies.

         9                  We could do that today.  We could

        10       do that next week.  We could, in fact, push

        11       for different kinds of mileage standards right

        12       here in New York State through a number of

        13       proposals, including being more active in

        14       forcing our federal government -- you said

        15       don't rant about the federal government, but

        16       we're allowed to rant a little bit when the

        17       federal government not only failed to do their

        18       job but harms our constituents here in

        19       New York State.

        20                  So we could be talking about any

        21       number of proposals that would make more sense

        22       than this legislation that are not exclusively

        23       get-out-of-your-car proposals but, rather,

        24       increase the efficiency of our vehicles, focus

        25       on alternatives to foreign oil, and make sure



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         1       that if you say you're giving a tax rebate, it

         2       actually goes to the consumers.

         3                  ACTING PRESIDENT MORAHAN:

         4       Senator Marcellino, why do you rise?

         5                  SENATOR MARCELLINO:    Just to

         6       point out to the worthy Senator from Manhattan

         7       that we passed a bill earlier, my bill, that

         8       provided a credit --

         9                  SENATOR DUANE:    Mr. President.

        10                  SENATOR MARCELLINO:    -- for cars

        11       with greater efficiency and mileage.

        12                  SENATOR DUANE:    Mr. President,

        13       point of order.

        14                  ACTING PRESIDENT MORAHAN:    What's

        15       your point of order, Senator?

        16                  SENATOR DUANE:    Senator Krueger

        17       has the floor.

        18                  ACTING PRESIDENT MORAHAN:    Yes.

        19                  SENATOR LIZ KRUEGER:    Thank you.

        20                  ACTING PRESIDENT MORAHAN:

        21       Senator Krueger.

        22                  SENATOR LIZ KRUEGER:    But in

        23       fact, if I had been asked to yield for that

        24       point, I would have pointed out I just said

        25       that a few minutes ago, that we are moving



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         1       bills that make sense, including Senator

         2       Marcellino's bill that passed half an hour ago

         3       on the floor of the Senate.

         4                  So in response -- thank you,

         5       Senator Marcellino -- to my point, Senator

         6       Lanza said there's nothing else we can be

         7       doing.  And in fact, there are other things we

         8       can be going doing; your bill is a perfect

         9       example of that.  So thank you for rising, I

        10       suppose in my support, on this argument.

        11                  Again, you really have to sort

        12       through the facts from the fiction -- thank

        13       you so much -- because had we had some more

        14       time to dialogue together, the Senator called

        15       for a bipartisan approach to this.  And a

        16       bipartisan approach, if we had hearings, if it

        17       even went through Senator Marcellino's

        18       committee -- I don't believe this bill did,

        19       since we just moved it through Rules today --

        20       no doubt he and other members of his committee

        21       would have had some very good recommendations

        22       that would actually be able to move us towards

        23       our goals.

        24                  This bill has no way of

        25       guaranteeing that the people of New York will



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         1       see a lower gas price.  It has a clear

         2       mechanism for the oil companies to keep the

         3       entire 32-cent profit.  There is no mechanism

         4       in this bill for them to not collect it.

         5                  And again, I will refer my

         6       colleagues to a report done by the Onondaga

         7       County Division of Management and Budget,

         8       their analysis of why the cap on sales tax for

         9       gasoline and diesel did not have the outcome

        10       you're proposing your bill would have.  That

        11       they are not continuing their own sales tax

        12       cap because they did not find that they had

        13       the outcome they wished to have, reduced price

        14       at the pumps.  They had increasing price at

        15       the pumps, lower tax revenue for important

        16       issues in their county, and higher property

        17       tax at the end of the day.

        18                  And I've heard enough discussions

        19       on the floor of this chamber to know that no

        20       one is really interested in proposals that

        21       result in higher property taxes and not lower

        22       gas taxes -- excuse me, lower gas costs.  So I

        23       will be voting no, and I urge my colleagues to

        24       rethink this and to vote no.

        25                  Thank you, Mr. President.



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         1                  ACTING PRESIDENT MORAHAN:    Thank

         2       you, Senator.

         3                  Senator Little, why do you rise?

         4                  SENATOR LITTLE:    Thank you.  I

         5       would like to ask Senator Krueger a question

         6       in regard to some of the comments that she

         7       just made.  Would she respond?

         8                  ACTING PRESIDENT MORAHAN:

         9       Senator Krueger, will you yield?

        10                  SENATOR LIZ KRUEGER:    I certainly

        11       yield.

        12                  ACTING PRESIDENT MORAHAN:    The

        13       Senator yields, Senator.

        14                  SENATOR LITTLE:    Thank you.

        15                  Through you, Mr. President, several

        16       years ago in this body we removed the sales

        17       tax on clothing and shoes and gave a holiday

        18       on the sales tax on clothing and shoes.  Were

        19       we concerned about the retailer gouging the

        20       consumer then?

        21                  And wasn't the point that we would

        22       bring more people into our state to purchase

        23       clothing and more people would purchase

        24       clothing that week when they did not have a

        25       sales tax on that thing?



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         1                  I don't remember anyone being

         2       concerned about the retailer doing the

         3       gouging.  It was a benefit, it was an

         4       incentive, and it was a tax reduction for the

         5       people of this state.

         6                  ACTING PRESIDENT MORAHAN:    Is

         7       that a question, Senator?

         8                  SENATOR LITTLE:    Yes.  Were you

         9       concerned at that time?

        10                  SENATOR LIZ KRUEGER:    Thank you.

        11       I appreciate the question.

        12                  No, I wasn't, because the sales tax

        13       structure on clothing and shoes is different

        14       than the way we've established the law on

        15       taxes and gasoline.

        16                  So when you lift a sales tax that

        17       is only applied at the retail level, collected

        18       at the retail level, and in this case stopped

        19       from being collected at the retail level, it's

        20       very clear-cut.  The tax is not paid by the

        21       consumer, and the retailer does not owe the

        22       money to the state or local government.

        23                  It is a different formula in

        24       gasoline tax, where in fact the tax, quote,

        25       unquote, is collected or not collected at the



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         1       wholesale level.  So the wholesaler would not

         2       have to roll that savings to the retailer.

         3       The retailer would not have to roll that

         4       savings to the consumer.  And in fact, under

         5       this legislation, there would be no way for us

         6       to ever see what happened there.

         7                  SENATOR LITTLE:    Through you,

         8       Mr. President, another question, if I may.

         9                  I thoroughly understand the sales

        10       tax --

        11                  ACTING PRESIDENT MORAHAN:    Excuse

        12       me.  Let me just explain something.

        13                  A question has been raised that the

        14       Senator did not have the floor when you asked

        15       her to yield.  However, you did stand up while

        16       she had the floor, and that's why I allowed

        17       you to ask Senator Krueger to yield.

        18                  So hopefully that will answer some

        19       questions that people have risen to their feet

        20       to ask.  So I will allow the debate to

        21       continue.

        22                  Are you asking the Senator to

        23       yield?

        24                  SENATOR LITTLE:    Yes.  And just

        25       in response --



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         1                  ACTING PRESIDENT MORAHAN:    Do you

         2       yield, Senator?

         3                  SENATOR LIZ KRUEGER:    Yes, I will

         4       yield.

         5                  ACTING PRESIDENT MORAHAN:    The

         6       Senator yields.

         7                  SENATOR LITTLE:    Just an

         8       additional -- I do understand the sales tax is

         9       added on clothing and shoes at the time of the

        10       sale.  But couldn't the retailer increase the

        11       price of that clothing and those shoes to

        12       compensate for that reduced tax?  They

        13       certainly, in my mind, could have.

        14                  Thank you.

        15                  ACTING PRESIDENT MORAHAN:

        16       Senator Krueger.

        17                  SENATOR LIZ KRUEGER:    Yes.  But

        18       you would then see it, and you would see it as

        19       an increase in the actual cost, separate from

        20       and unrelated to the tax question.

        21                  Again, where the tax is collected

        22       is much further back in the food chain, so to

        23       speak, on gasoline than at the front desk

        24       between the shopper and the clothing store.

        25       So again, I will say it's not a parallel



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         1       argument.

         2                  Thank you, Mr. President.

         3                  ACTING PRESIDENT MORAHAN:    Thank

         4       you, Senators.

         5                  Senator Klein.

         6                  SENATOR KLEIN:    Thank you,

         7       Mr. President.

         8                  Would Mr. Lanza yield for a few

         9       questions?

        10                  ACTING PRESIDENT MORAHAN:

        11       Senator Lanza, will you yield?

        12                  SENATOR LANZA:    Yes,

        13       Mr. President.

        14                  ACTING PRESIDENT MORAHAN:    The

        15       Senator yields.

        16                  SENATOR KLEIN:    Thank you.

        17                  Again, through you, Mr. President,

        18       my question to Mr. Lanza is, have you looked

        19       into the other states that have actually

        20       instituted gas-tax holidays?

        21                  One of the -- just to sort of give

        22       you an outline, since 2000 there's been four

        23       states, Florida, Georgia, Illinois, and

        24       Indiana, who have instituted gas-tax holidays.

        25       Are you familiar with those states and their



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         1       experiences?

         2                  SENATOR LANZA:    Mr. President,

         3       the question have I looked into other states,

         4       as I've said before, every week I look into

         5       the State of New Jersey and I see that the

         6       price of gasoline there costs significantly

         7       less than it costs in this state.  And when I

         8       look further into what's happening in that

         9       state, I find that they impose a lower tax on

        10       the price of gasoline.

        11                  And so I know, because of the

        12       experience in that state and experience in

        13       other states, that by reducing the -- by

        14       eliminating the tax that we impose of 32

        15       cents, that I know the price of gas will go

        16       down in this state.

        17                  SENATOR KLEIN:    Again, through

        18       you, Mr. President.  Mr. Lanza, I'm not

        19       questioning --

        20                  ACTING PRESIDENT MORAHAN:

        21       Senator Lanza, will you continue to yield?

        22                  SENATOR KLEIN:    I'm sorry.

        23                  SENATOR LANZA:    Yes,

        24       Mr. President.

        25                  ACTING PRESIDENT MORAHAN:    The



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         1       Senator yields.

         2                  SENATOR KLEIN:    Mr. Lanza, I'm

         3       not questioning your passion.  I'm trying to

         4       alleviate some of the taxes on gasoline.

         5                  However, we are talking about

         6       instituting a gas-tax holiday, and I think it

         7       is important to see the experience of other

         8       states.

         9                  The states that I did mention have

        10       not had good results.  As a matter of fact,

        11       they did away with the tax holidays because

        12       they found that the consumer was not sharing

        13       in the savings, the money wasn't going

        14       directly to them, so they did away with that.

        15                  So again, have you looked at those

        16       other states and their experience with this

        17       specific proposal?

        18                  SENATOR LANZA:    Mr. President, in

        19       the reading that I have done, some have

        20       suggested that because the price of gasoline

        21       has gone up juxtaposed to a reduction in the

        22       tax, that somehow it was because that tax

        23       savings was not passed along to the consumer.

        24                  But that ignores the very basic

        25       reality that gasoline at its fundamental



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         1       level, across the country, has gone up,

         2       because of the price of crude oil, other

         3       factors of supply and demand.

         4                  And I guess the question I have is,

         5       does that question from my good colleague

         6       suggest that he believes that if we were to

         7       eliminate the gas-tax cap that we presently

         8       have in place in New York, does he believe

         9       that the price of gasoline would not go up?

        10                  Of course it would go up.  If we

        11       doubled the tax on gasoline today -- because

        12       gasoline is at $4 a gallon; we tax it only up

        13       to the price of $2 a gallon -- does anyone

        14       here believe that if we eliminated that cap,

        15       the price of gas wouldn't go up?  Of course it

        16       would.  Of course it would.

        17                  When you raise taxes, the price of

        18       things go up to the consumer.  When you lower

        19       taxes, the price of things go down, whether

        20       it's gasoline, milk, bread, eggs.  That's just

        21       basic economics.

        22                  SENATOR KLEIN:    Again, would

        23       Mr. Lanza continue to yield, Mr. President?

        24                  ACTING PRESIDENT MORAHAN:

        25       Senator Lanza, will you continue to yield?



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         1                  SENATOR LANZA:    Yes,

         2       Mr. President.

         3                  SENATOR KLEIN:    Again, we talked

         4       a little bit before about lost revenue.  And

         5       certainly our state gas tax goes to roads,

         6       bridges.

         7                  How are we going to make up for the

         8       loss -- and I think the number you cited was

         9       $600 million.  According to my conversations

        10       with the State DOT, it's closer to

        11       $629 million in lost revenue.  How would we

        12       make up that shortfall?

        13                  SENATOR LANZA:    Mr. President,

        14       through you.  First, again, we arrive at that

        15       number by a very simple formula.  We take the

        16       number of gallons of gasoline, multiply it by

        17       32 cents, we spit out a number.

        18                  Of course, as everyone understands

        19       and appreciates here, the economy is far more

        20       complicated than that.  We know, from common

        21       experience and from prior experience, that

        22       when you lower the prices of goods that

        23       there's an economic stimulus provided.

        24                  The same way I fill up my tank with

        25       gas from New Jersey to save money, many people



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         1       in surrounding states -- Connecticut, Vermont,

         2       Pennsylvania -- maybe Canada, they'll come to

         3       New York, the way I go to New Jersey, to avail

         4       themselves of the lower price of gas.

         5                  And a funny thing happens on the

         6       way to New York when you come here to fill up

         7       your car with gasoline.  You might stay here a

         8       little while.  You might shop here.  You might

         9       decide to take a trip to one of the beautiful

        10       places, one of the many beautiful places we

        11       have, from Long Island to Niagara, Rochester,

        12       the Finger Lakes, Lake George, Staten Island.

        13       A beautiful place; Senator Savino will tell

        14       you.

        15                  Many beautiful places.  New York

        16       City.  I said Niagara Falls -- the list is

        17       endless.  It's endless.  We happen to be

        18       blessed to live in one of the most beautiful

        19       states in the union.

        20                  So we know people may visit here,

        21       there may be increased tourism, people will

        22       shop here, people will dine here.

        23                  So I don't know what that number

        24       is.  That's the worst-case scenario, the

        25       worst-case scenario.  And no one in this room



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         1       can tell you what that number is.  I believe

         2       it will be far less.  I believe that the

         3       impact here will be far less, because it will

         4       provide an economic stimulus.

         5                  But let's say there is a cost.

         6       Let's say there is a cost.  We spend too much.

         7       That's what the Governor says.  The Governor

         8       says -- a Democrat -- says we spend too much

         9       in this state.  And we do.  All the fiscal

        10       watchdogs say we spend too much.  And we do.

        11                  You know, families are suffering.

        12       Families are suffering.  They have to do more

        13       with less today just to make ends meet.

        14       Government could do more with less.

        15                  So if there is a cost, Senator, we

        16       can work it out.  All of us in this room, we

        17       can work it out.  We can make government

        18       leaner and more efficient, because that's what

        19       people deserve.  People deserve relief, and

        20       they deserve an efficient, leaner, more

        21       responsive government.  And this is the time

        22       to do it.

        23                  The argument can also be made --

        24       does anyone here believe, does anyone here

        25       believe -- because the question was, the



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         1       question was if we have less money because of

         2       this, we'll have less money to do one specific

         3       thing, roads.

         4                  We also have another dedicated

         5       revenue stream in this state, the Lottery.

         6       It's for education.  Does anyone believe that

         7       if somehow we took in less revenue from the

         8       Lottery this year that we're going to spend

         9       less on education?

        10                  Of course that's not going to

        11       happen.  We'll find a way to meet the

        12       priorities of this state.  We can do that.

        13       That's our job.  That's our job.  So if

        14       revenues from the Lottery come down, we'll

        15       find a way to meet our educational priorities.

        16                  And if revenue were to happen to

        17       come down here, we'll find a way to meet our

        18       priorities when it comes to our roads and

        19       bridges in this state.

        20                  You know why?  Because I have faith

        21       in this body.  I have faith in government.  At

        22       the end of the day, we'll do the right thing

        23       and we'll find a way.

        24                  SENATOR KLEIN:    Thank you,

        25       Mr. Lanza.



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         1                  On the bill, Mr. President.

         2                  ACTING PRESIDENT MORAHAN:

         3       Senator Klein, on the bill.

         4                  SENATOR KLEIN:    As I said

         5       earlier, you know, I don't question Senator

         6       Lanza's passion on this issue.

         7                  As elected officials, it's our duty

         8       to be responsive to our constituents.  And

         9       certainly I don't think any of us can go to

        10       any town meeting or shop in our local

        11       supermarket or go to our local gas station

        12       without our constituents talking about the

        13       high price of gasoline.

        14                  It was said earlier this is one of

        15       those issues where our role is really limited.

        16       This is something that has to be dealt with on

        17       a national policy.  And I think it's worth

        18       mentioning, without being overly partisan,

        19       that during the Bush administration we have

        20       seen gas prices skyrocket.

        21                  It is our job in the state to do

        22       something to help alleviate some of that

        23       burden.  As Mr. Lanza did mention, and

        24       according to a New York Times article that I

        25       read the other day, the savings to the average



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         1       driver, if we did away with the tax under this

         2       legislation, would be a savings of $55.45.

         3       It's something.  It's clearly not enough.

         4                  And if we want to really take this

         5       issue seriously, we really have to contact our

         6       Congress members and really have something

         7       done concrete on a national level.

         8                  We also have to, I think, revamp

         9       our environmental policy, make us more

        10       efficient, really look for alternative sources

        11       of fuel and energy.  These are the things we

        12       clearly have to do.

        13                  But at the same time, if we're

        14       standing here today trying to save our

        15       constituents some money by doing away with the

        16       tax during the holiday season, I think it's

        17       incumbent upon us to do the right thing.  And

        18       I think doing the right thing would be through

        19       a targeted tax-rebate program.  We want to

        20       make sure our constituents get this money.

        21       And if we adopted such a program today, we can

        22       ensure that they would do just that, get the

        23       savings.

        24                  We can also do it according to

        25       income.  And I have some figures here that we



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         1       looked at.  If you actually institute a

         2       gas-tax holiday -- and let's say, just for

         3       argument's sake, we set the income level at

         4       $150,000 a year for a family -- that would

         5       cost the state $320 million, far below the

         6       $600 million under Mr. Lanza's plan today.

         7                  So while at the same time -- I want

         8       to listen to my constituents.  I want to make

         9       my constituents happy on this issue.  But I

        10       think the way we go about doing it is to make

        11       sure they get the direct savings.  And I think

        12       the way we do that is through a targeted tax

        13       rebate.

        14                  So at the same time, I'm going to

        15       vote yes today.  But I'm frustrated.  This is

        16       a one-house bill.  And I'm glad it's a

        17       one-house bill, because it's really not going

        18       to do anything.

        19                  I'm hopeful that we're going to

        20       come back, work with our colleagues in the

        21       Assembly, hopefully allow us in the minority

        22       to work with the majority to put forth a real

        23       program, a targeted tax rebate, so we can go

        24       home and we can talk to our constituents and

        25       say:  We did the right thing, we truly helped



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         1       you save money on the high price of gasoline.

         2                  Thank you, Mr. President.

         3                  ACTING PRESIDENT MORAHAN:    Thank

         4       you, Senator Klein.

         5                  Senator Connor.

         6                  SENATOR CONNOR:    Thank you,

         7       Mr. President.

         8                  Mr. President, how did we get here?

         9       Why are we here with these huge, huge gasoline

        10       price increases?  It was predictable,

        11       Mr. President, when you have someone running

        12       the United States of America with a secret

        13       energy policy whose last job was an executive

        14       for an oil company, and when you also --

        15       that's Mr. Cheney -- when you also have a

        16       president whose last job was an oil company

        17       executive.

        18                  And then when you look at the

        19       record obscene excess profits that the oil

        20       companies are making, it doesn't translate.

        21       Yes, oil by the barrel has gone up.  And you

        22       would expect prices to rise.  But the oil

        23       companies are making excess profits.

        24                  You know, somebody said, well -- I

        25       heard someone on TV the other day say we



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         1       should have an excess profits tax.  And

         2       some -- oh, how could you do that?  Well,

         3       we're at war, aren't we?  Isn't at least some

         4       of the cost of the energy increase because of

         5       war in Iraq?  We also have a war in

         6       Afghanistan.

         7                  In World War II there was an excess

         8       profits tax that large corporations that made

         9       extraordinary profits during that time period

        10       had to pay.  Why isn't our national government

        11       doing that?  What can we really do about it?

        12                  You know, I respect that Senator

        13       Lanza said his bill is just eighth-grade math.

        14       The problem, Mr. President, is it's

        15       eighth-grade policy.  And I'll tell you why.

        16                  Listen, when I was a kid we looked

        17       forward to that week in July when the factory

        18       closed for inventory.  I didn't know what

        19       inventory was; I just knew it was good my dad

        20       didn't have to go to work.  We piled in the

        21       Chevy and we drove to the seashore.

        22                  Everybody has -- I will not yield

        23       till I'm finished, Mr. President.  I'm still

        24       at the seashore.

        25                  (Laughter.)



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         1                  SENATOR LANZA:    Will Senator

         2       Connor yield?

         3                  SENATOR CONNOR:    No.  No,

         4       Mr. President.  When I'm finished, I'll be

         5       happy to yield.

         6                  So we're at the seashore, and it

         7       was a great week.  And so this bill harkens

         8       people back to that, doesn't it?  Oh, we're

         9       going to give the families a break in the

        10       summer.

        11                  Let me ask you a question,

        12       Mr. President.  Why isn't it just as important

        13       that someone can afford in early May to take a

        14       relative to daily doctor's visits when they

        15       have some ongoing treatment as it is for

        16       somebody to take their kid to the seashore in

        17       July?

        18                  Or, Mr. President, I understand

        19       giving relief to families.  Why isn't a

        20       shivering family in December, facing higher

        21       home heating oil costs, why isn't it important

        22       to give them a break, or more important or

        23       just as important as, you know, the summer

        24       traveler to someone who wants to get in their

        25       car in August and go touring around New York



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         1       State?

         2                  That's why I say it's poor policy.

         3       It's a gimmick, Mr. President.  It's a

         4       gimmick.  It's a summer gift.  Every kid likes

         5       that, getting out of school for the summer.

         6       That's why I say it's an eighth-grade policy.

         7       And it has that appeal to, ah, gee, the

         8       summer, you know, wonderful summer days, long

         9       summer days.  What about cold winter nights

        10       and home heating fuel?  Why are we giving no

        11       breaks then?

        12                  It's poor policy, Mr. President.

        13       It's poor policy because it's going in the

        14       wrong step environmentally.  There's no

        15       guarantee that the consumer will benefit,

        16       given the way gasoline is priced, zone pricing

        17       and other pricing.

        18                  Mr. President, I know a bit about

        19       New Jersey.  Interesting thing about

        20       New Jersey -- and I'm sure Senator Lanza knows

        21       this -- is you don't pump your own gas there.

        22       There's no -- it's against the law.  Gas

        23       stations have to hire people.  Some of them

        24       have two and three people pumping gas.  They

        25       get work out of it.



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         1                  And I think most stations I've been

         2       in, because I had to go down to my mother's a

         3       lot last year, they're immigrants.  They get,

         4       at one gas station, two or three shifts going

         5       on.  And their prices are cheaper than ours.

         6                  And I suggest it's not just taxes.

         7       Yes, New Jersey has the third-lowest gasoline

         8       taxes in the nation.  It doesn't account for

         9       the difference.  One thing that may account,

        10       they say, is, well, New Jersey has more

        11       refineries.  It has refineries in Linden, in

        12       North Jersey, a string of refineries in

        13       Paulsboro, down in -- I guess that's below

        14       Camden.  My uncle used to drive a gasoline

        15       truck there, president of the union, out of

        16       the Paulsboro refinery.

        17                  And in deep water, down by the

        18       Memorial Bridge, there are more refineries.

        19       It's also known as "Cancer Alley" in

        20       New Jersey.  That's another issue.  Not

        21       unrelated to the refineries, I'm sure.

        22                  The fact is, though, it's a shorter

        23       distance from Linden, New Jersey to Brooklyn,

        24       New York than it is from Linden, New Jersey or

        25       Paulsboro, New Jersey to Trenton, New Jersey.



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         1       So it's not just, oh, they have so many

         2       refineries nearby, it's a transportation

         3       issue.  It's not that.

         4                  Why aren't we looking into price

         5       structures for New York?  Why is the basic

         6       price, excepting the tax -- you take the

         7       32 cents off, New Jersey's gasoline is still

         8       probably, on average, a quarter a gallon

         9       cheaper than ours if you took our tax off.

        10       Why is that?  And it's more expensive in

        11       service stations, because they have to have

        12       people there to pump gas.  There's no

        13       self-service.

        14                  So it's not just the taxes are

        15       lower there.  The gasoline is lower.  The

        16       pricing is lower, the pricing by the oil

        17       companies and the fuel distributors.  Somehow

        18       or other we're getting gouged in New York.  So

        19       it's not just about this tax.

        20                  You know, I just don't see the

        21       policy behind this.  I understand the desire

        22       to give people something or give people the

        23       appearance of something.  But from a policy

        24       standpoint, I just don't see why we want to

        25       encourage people to drive around all summer,



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         1       and we think that's worthy of a $500 million

         2       or $600 million subsidy, as opposed to helping

         3       out people -- if I represented,

         4       particularly -- you know, New York City is

         5       very efficient when it comes to heating in

         6       apartment buildings.  I mean, any

         7       environmentalist will tell you it's more

         8       environmentally sound.

         9                  For people who live in the suburbs

        10       or represent the suburbs or upstate, I would

        11       be more concerned about the cost of home

        12       heating fuel and what are we doing to help

        13       people there.  They don't need it in July and

        14       August.

        15                  So the policy choice here is a

        16       false one.  It's illusory.  It doesn't answer

        17       the basic, fundamental problems,

        18       Mr. President.  It just doesn't do it.  It is

        19       eighth-grade policy, and it will have a lot of

        20       appeal for eighth-graders.

        21                  But thinking New Yorkers are going

        22       to look at this and say:  What about April?

        23       What about September 15th?  And what about a

        24       very cold December or January?  What are you

        25       doing for me there?  You're trying to divert



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         1       my eyes in the summer when things are free and

         2       easy, and you're not really doing anything to

         3       relieve the problem of much too costly

         4       gasoline, much too costly fuel products in

         5       general in New York State.

         6                  Mr. President, I intend to vote no.

         7                  ACTING PRESIDENT MORAHAN:    Thank

         8       you, Senator Connor.

         9                  SENATOR CONNOR:    I'll yield if

        10       the Senator wants.

        11                  ACTING PRESIDENT MORAHAN:

        12       Senator Lanza, why do you rise?

        13                  SENATOR LANZA:    Would Senator

        14       Connor yield to a question?

        15                  ACTING PRESIDENT MORAHAN:

        16       Senator, will you yield?

        17                  SENATOR CONNOR:    Yes,

        18       Mr. President.

        19                  ACTING PRESIDENT MORAHAN:    The

        20       Senator yields.

        21                  SENATOR LANZA:    Senator, you

        22       talked about the oil companies gouging and

        23       that's the real problem.

        24                  Senator, why do you believe that

        25       oil companies making 10 cents a gallon is



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         1       gouging and that New York State charging

         2       32 cents a gallon is okay?

         3                  SENATOR CONNOR:    I don't know

         4       that oil companies are making 10 cents a

         5       gallon, Senator, to tell you the truth.

         6                  I know last year's reports showed

         7       record profits for oil companies.  All the

         8       large oil companies made record profits.  And,

         9       you know, I read that in the Wall Street 

        10       Journal, the New York Times.  That's an

        11       acknowledged fact.

        12                  I have no sympathy for the oil

        13       companies.  They're not doing badly.  In fact,

        14       I have a lot of disdain for the fact that they

        15       are making, on top of what is a world

        16       oil-price increase, obviously, in the

        17       per-barrel cost, the fact is the oil companies

        18       are making, in my opinion, an excess on top of

        19       that.

        20                  SENATOR LANZA:    Mr. President,

        21       would Senator Connor continue to yield?

        22                  ACTING PRESIDENT MORAHAN:

        23       Senator Connor, do you continue to yield?

        24                  SENATOR CONNOR:    Certainly,

        25       Mr. President.



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         1                  ACTING PRESIDENT MORAHAN:    The

         2       Senator continues to yield.

         3                  SENATOR LANZA:    Senator, you

         4       suggested that this bill misses the mark

         5       because it only removes the tax during the

         6       summer months.  Would you support this

         7       legislation if it were to eliminate the tax

         8       throughout the entire year?

         9                  SENATOR CONNOR:    No, I wouldn't.

        10       Mr. President, I wouldn't.

        11                  What I would support is some sort

        12       of rebate plan that offered a rebate to

        13       consumers for their consumption, whether it be

        14       home heating fuel or gasoline.

        15                  You know, the problem,

        16       Mr. President, with Senator Lanza's bill is it

        17       rewards people who drive automobiles,

        18       potentially, if it gets passed along -- that's

        19       a big if -- and it does nothing for people who

        20       don't drive automobiles but have to buy home

        21       heating fuel or other petroleum products whose

        22       costs have risen astronomically.  It does

        23       nothing for them.

        24                  So I would support, Mr. President,

        25       what I would support 12 months a year is a



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         1       rebate program that, based on income

         2       structure, allows a rebate to people at the

         3       end of the year for the cost, the taxes on

         4       their consumption of not just gasoline but

         5       other forms of petroleum products.

         6                  SENATOR LANZA:    Mr. President,

         7       would Senator Connor yield for one more

         8       question.

         9                  ACTING PRESIDENT MORAHAN:

        10       Senator Connor, would you yield for one more

        11       question?

        12                  SENATOR CONNOR:    Absolutely,

        13       Mr. President.

        14                  ACTING PRESIDENT MORAHAN:    The

        15       Senator yields.

        16                  SENATOR LANZA:    Senator, I

        17       suggested in my discussion before that the

        18       math involved in arriving at the fiscal impact

        19       that's stated in the bill is easy enough for

        20       an eighth-grader.  You went further to say

        21       this is eighth-grade policy.

        22                  Senator, I know eighth-graders, and

        23       eighth-graders, unlike adults, often sit

        24       around and blame each other for things that

        25       they do, point the finger, talk about how to



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         1       avoid responsibility.  They want to blame

         2       everyone else.

         3                  Isn't, Senator Connor, your

         4       rationale here really an eighth-grade

         5       rationale, to say that the reason why we

         6       shouldn't do this is because it's someone's

         7       fault in Washington, someone's fault in the

         8       Middle East, someone else's fault?  Shouldn't

         9       we as adults, Senator, shouldn't we take the

        10       action that we can take and deliver results?

        11                  We can talk about all those other

        12       things, and I agree with many of the things

        13       that were said today.  We should talk about

        14       those things.  We should discuss them.  We can

        15       go further than this.  But shouldn't we, as

        16       adults, shouldn't we, as representatives of

        17       the people of this state, shouldn't we do what

        18       we can do that will deliver relief?  As

        19       opposed to sitting around like eighth-graders

        20       and pointing to all the reasons why we can't

        21       do something and blaming all the people we

        22       believe got us to the point that we're in

        23       today?

        24                  SENATOR CONNOR:    Mr. President, I

        25       think what we should do as responsible



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         1       legislators is not drive a $500 million or

         2       $600 million further hole in our budget in

         3       order to give 12 weeks or 13 weeks of

         4       gratification to those who drive automobiles,

         5       rather than adopt a policy that applies to all

         6       New Yorkers every month of the year that will

         7       give them some relief from the extraordinary

         8       increased expenses that they're undergoing.

         9                  So that's real policy.  A policy

        10       that says we're going to give you off July and

        11       August has a lot of appeal to grade-school

        12       kids.  You know, I used to question children

        13       and say "What if we passed a law and we had

        14       school year-round?"  And they'd all go:  "No,

        15       no, no, no."  Certainly had appeal to me,

        16       getting the summer off.

        17                  But that's not adult policy,

        18       Mr. President.  That's not grownup policy.

        19       Grownup policy is figuring out what the State

        20       of New York can do to help all New Yorkers who

        21       are struggling with the increased cost of all

        22       forms of fuel oil, not just gasoline.

        23                  Now, some of the things we've done,

        24       Mr. President -- like Senator Marcellino's

        25       bill, other bills, three bills that we passed



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         1       earlier today -- they are, in my opinion, what

         2       responsible adult legislators ought to do,

         3       come up with policies that take us in the

         4       right direction environmentally, from an

         5       energy-conservation standpoint.

         6                  And yes, they have a cost.  But I'm

         7       willing to forgo, for example, the sales tax

         8       receipts on hybrid vehicles, because I think

         9       sound public policy, grownup policy says

        10       that -- encourages all New Yorkers to do

        11       something that will help all of us.

        12                  Eighth-grade policy, Mr. President,

        13       says let's give everybody the summer off and

        14       hope they're all so silly happy with good

        15       weather that they don't think about the bigger

        16       problems.

        17                  SENATOR LANZA:    Mr. President.

        18                  ACTING PRESIDENT MORAHAN:

        19       Senator Lanza.

        20                  SENATOR LANZA:    I do have one

        21       last question, I promise.

        22                  SENATOR CONNOR:    I'll be happy to

        23       yield, Mr. President.

        24                  ACTING PRESIDENT MORAHAN:    The

        25       Senator will yield, Senator Lanza --



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         1                  SENATOR LANZA:    Mr. President,

         2       through you --

         3                  ACTING PRESIDENT MORAHAN:    -- for

         4       one more question.

         5                  SENATOR LANZA:    Yes.  Senator

         6       Connor -- and through you, Mr. President --

         7       talked about home heating fuel.  As you know,

         8       we voted to eliminate and have eliminated the

         9       state tax on home heating fuel.  In fact, we

        10       also eliminated tax on clothing, we gave folks

        11       a tax holiday on clothing.

        12                  Senator Connor, did you support and

        13       vote for those measures?  And why is your

        14       support of those two measures different from

        15       the argument being put forth in support of

        16       this tax holiday for the people of the State

        17       of New York?

        18                  SENATOR CONNOR:    Mr. President,

        19       that's the point:  holiday.

        20                  Life's not a holiday,

        21       Mr. President.  It's not a holiday for

        22       New Yorkers who are struggling to pay their

        23       bills.  It's not a holiday for people who must

        24       drive their automobiles to work, not just to

        25       the beach.



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         1                  I really fail to see why someone

         2       who is forced by their geographic

         3       circumstances to drive to work every day, to

         4       drive to work in early May, to drive to work

         5       in late September, shouldn't be getting -- in

         6       my opinion, that person, tax-paying person

         7       with a job, we ought to be worrying about

         8       them, not where they're going to drive on

         9       their vacation, if they get one.

        10                  And not every working New Yorker,

        11       Mr. President, unfortunately, gets a vacation.

        12       Lots of people work day in and day out and

        13       they don't get a vacation.

        14                  Years ago, with Assemblyman

        15       Barbaro, I sponsored a bill to mandate every

        16       worker in New York State be given paid

        17       vacation every year of at least a week.  And

        18       you should have heard the cries,

        19       Mr. President, from businesses and others, how

        20       could we do this.

        21                  So, you know, maybe in the

        22       wealthier parts of the state, and some

        23       middle-class parts, people do get that summer

        24       vacation.  But not everybody gets a vacation.

        25                  I'm concerned about the families



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         1       that have to use that automobile to get their

         2       kids to school or their kids to camp so they

         3       can go to work, or certainly during the year,

         4       and they go to work every week of the year,

         5       not just in July and August.  So I think

         6       that's why we have -- I don't like holidays.

         7                  Now, a sales-tax holiday is quite

         8       different.  And I think Senator Liz Krueger

         9       absolutely demonstrated why a sales-tax break

        10       is different than the fuel tax.  And I won't

        11       repeat it; she did it quite well.

        12                  But, you know, it's one thing to

        13       say let's have a sales tax holiday just before

        14       school goes back, so plain working folks

        15       who -- they're not going out to buy a

        16       wardrobe, they're not going out to get the

        17       latest fashions, they're taking the kids to

        18       get them sneakers and jeans or chinos or

        19       whatever they wear, and a couple of shirts, to

        20       go to school.

        21                  Why are they doing it?  Well, your

        22       kids have a way of going like this

        23       (indicating) and getting bigger and bigger.

        24       So it's not a frivolity, it's not a frill that

        25       you have to take your kids shopping before



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         1       they go back to school.  Usually in the summer

         2       they grow a couple of inches, when they're

         3       younger.

         4                  So that has real relief for working

         5       families, for middle-class families in

         6       New York State at that particular time.

         7       That's when people shop for back to school.

         8                  But a holiday from gasoline tax to

         9       me, Mr. President, doesn't make a lot of sense

        10       if what it means is they're going to have a

        11       holiday so they can go on holiday.

        12                  I don't begrudge anybody a good

        13       summer vacation, but I'm concerned about the

        14       men and women who have to work, the woman who

        15       has to drive to get to that job as a waitress

        16       in a diner, the man who has to drive to get to

        17       that job in a factory -- where they're left --

        18       or in a retail store or whatever.  And they

        19       have to go to work.  They don't have to go on

        20       vacation, but they have to go to work.

        21                  That's why this is poor policy.

        22       It's a lighthearted, oh, we're going to do

        23       something for you, have a good vacation.  If

        24       you get one.

        25                  Thank you, Mr. President.



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         1                  ACTING PRESIDENT MORAHAN:    Thank

         2       you, Senator.

         3                  Just for people's interest, the

         4       desk has received some requests on how many

         5       speakers.  There's 14 more Senators who wish

         6       to speak on the bill or debate the bill.

         7                  Senator Larkin.

         8                  SENATOR LARKIN:    Mr. President,

         9       with unanimous consent of the Minority, we

        10       would like to allow Senator Alesi the

        11       opportunity to vote.

        12                  Senator Alesi has a complicated

        13       medical appointment this afternoon, and we had

        14       like to see him get there so he can start

        15       running around instead of hobbling around.

        16                  At this time I'd like to ask that

        17       we read the last section and allow Senator

        18       Alesi to vote.

        19                  ACTING PRESIDENT MORAHAN:    Thank

        20       you, Senator.

        21                  The Secretary will read the last

        22       section.

        23                  THE SECRETARY:    Section 9.  This

        24       act shall take effect immediately.

        25                  ACTING PRESIDENT MORAHAN:    Call



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         1       the roll.

         2                  (The Secretary called the roll.)

         3                  ACTING PRESIDENT MORAHAN:

         4       Senator Alesi.

         5                  SENATOR ALESI:    Mr. President, if

         6       I may cast my vote in the affirmative.

         7                  ACTING PRESIDENT MORAHAN:

         8       Senator Alesi's vote will be recorded in the

         9       affirmative.

        10                  We will now withdraw the roll call.

        11                  Senator Larkin.

        12                  SENATOR LARKIN:    Could we now

        13       return to the normal procedures.

        14                  ACTING PRESIDENT MORAHAN:    Thank

        15       you, Senator.

        16                  Senator Winner.

        17                  SENATOR WINNER:    Thank you,

        18       Mr. President.

        19                  Obviously, I rise in support of

        20       this measure.  And I'm a little astonished at

        21       a lot of the urban patronization that I've

        22       heard with respect to this measure.

        23                  Clearly in New York we have no

        24       ability to control the commodity price of

        25       gasoline.  We have no ability to control most



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         1       aspects of the cost of gasoline.  But we do

         2       have the power to control the levy, the tax

         3       levy that we impose from New York State on the

         4       cost of a gallon of gasoline.

         5                  I don't know about you; apparently

         6       those folks on the other side of the aisle

         7       haven't heard from their constituents with

         8       regard to their concern about gas prices.  But

         9       I certainly have heard from my constituents

        10       with respect to the price of gas.  And they're

        11       extraordinarily troubled.  They want to know

        12       what we, as state legislators, are going to do

        13       about it.  And I try to tell them that we

        14       don't have that much control over anything

        15       other than taxes.

        16                  And a few years ago we acted with

        17       regard to capping the amount of sales tax we

        18       can levy on a gallon of gasoline, and many

        19       people thought that that was a great idea.  A

        20       lot of people on that side of the aisle

        21       thought it was a terrible idea and didn't

        22       think we were going to achieve the savings.

        23                  However, I can tell you, as someone

        24       who drives down the highway on the

        25       Pennsylvania border on a regular basis, it's



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         1       ironic that the difference between a gallon of

         2       gas in Pennsylvania versus the price of a

         3       gallon of gas in New York is the difference in

         4       taxes between Pennsylvania and New York.  And

         5       that's a fact.  That's not speculation.  That

         6       happens to me every single day as I drive

         7       through my district.

         8                  So those who say that somehow the

         9       competitive aspects of this measure are not

        10       going to work are clearly deluding themselves

        11       and, further, only leading speculation that

        12       the real motivation behind not being in favor

        13       of this measure is because you want to spend

        14       the money on something else.

        15                  Now, my constituents want to have

        16       some relief at the gas pumps.  And we can do

        17       that through this particular tax holiday.  And

        18       while some of you have indicated -- or one

        19       Senator in particular, Senator Connor, has

        20       indicated that it's eighth-grade economics, I

        21       can tell you, let me tell you a little bit

        22       about eighth-grade New York civics.

        23                  In New York State, believe it or

        24       not, there's a phenomenon in our economy that

        25       is called the tourism economy, which is only



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         1       slightly ranking below that of the

         2       agricultural economy as being the number-one

         3       economic activity in New York State.

         4                  And you might not think that the

         5       people that work in that tourism economy

         6       matter, but they sure do in my district.  And

         7       they are hardworking men and women every day

         8       who are struggling to make a living in the

         9       tourism industry, and they are extraordinarily

        10       concerned and afraid as to what the cost of

        11       gasoline is going to do to their economy and

        12       their livelihood this summer.

        13                  Now, we spend, believe it or not,

        14       millions and millions of dollars a year

        15       promoting the tourism economy.  And we now

        16       have a Governor who has indicated that the "I

        17       Love New York" program needs to be spruced up,

        18       making changes to emphasize the "I Love New

        19       York" program in upstate New York.

        20                  And now we have a measure here to

        21       provide for some incentives for people to

        22       actually utilize some of the tourism

        23       attractions, visit some of them, and all we're

        24       hearing is:  No, no, we can't do that, because

        25       we need to spend the money on something else.



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         1                  Now, Senator Lanza pointed out very

         2       effectively that this is not a lose-lose

         3       revenue proposition.  This has major

         4       incentives brought into it, particularly as it

         5       relates to the tourism economy.  The amount of

         6       money that we are going to incentivize people

         7       to come into New York State and spend by

         8       virtue of having lower taxes for once in our

         9       life -- can you imagine New York State having

        10       less taxes than any other state for a change?

        11       I mean, what a remarkable prospect.  But yet

        12       we have resistance.  We don't want to do that.

        13                  But we can get people to come to

        14       New York State, save our tourism season this

        15       year by having this particular measure pass so

        16       that we can advertise on "I Love New York"

        17       that New York really is more affordable to

        18       come to.

        19                  Now, the environmentalists will

        20       say, Well, that's a terrible idea, we want

        21       everybody to walk.  We don't anybody to drive.

        22       And therefore, we don't want anybody to go to

        23       any tourism attractions in the first place.

        24                  Now, that is pretty remarkable.

        25       But that is one of the arguments we're hearing



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         1       also from your side of the aisle, and that is

         2       let's use less gasoline.  And while we all

         3       want to conserve gasoline, I want to use more

         4       gasoline if it's going to mean more tourism

         5       and more economic growth in upstate New York.

         6                  So, ladies and gentlemen, this is

         7       not perfect.  Washington, you're right, has

         8       not acted.  But the Democrat-controlled

         9       Congress hasn't acted either.  They've done

        10       absolutely nothing, and they've sat still.  So

        11       it's not just the Bush administration's fault

        12       for the cost of gasoline, it's that Democrat

        13       Congress.

        14                  And the other remarkable thing that

        15       I don't hear is you have a candidate, I

        16       thought, for President -- I think her name is

        17       Hillary Clinton.  She's also the United States

        18       Senator from New York.  She's calling for a

        19       gas-tax holiday.  Isn't that a remarkable

        20       event?  Having a gas tax holiday coming from

        21       Senator Clinton that most of you or many of

        22       you in this room support.

        23                  However, that's okay for her to do

        24       it, but it's not okay for us to do it?  I

        25       mean, is there some disconnect here?  I don't



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         1       quite understand.

         2                  So, ladies and gentlemen, for those

         3       that have tried to advocate some help and

         4       relief for upstate New York, some concern that

         5       used to be a mantra of support for dealing

         6       with the upstate economy, helping the upstate

         7       economy -- it is astonishing to me that here

         8       we have a measure that will directly help the

         9       upstate economy, the upstate tourism industry,

        10       the upstate tourism industry that is the

        11       number-two economic engine in New York

        12       State --

        13                  ACTING PRESIDENT MORAHAN:    Excuse

        14       me, Senator Winner.

        15                  SENATOR WINNER:    -- and all we're

        16       doing is getting resistance.

        17                  ACTING PRESIDENT MORAHAN:

        18       Senator, excuse me.

        19                  Senator Adams, why do you rise?

        20                  SENATOR ADAMS:    Would the Senator

        21       yield for a question, please?

        22                  ACTING PRESIDENT MORAHAN:

        23       Senator, would you yield for a question

        24       from --

        25                  SENATOR WINNER:    Certainly.



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         1       Certainly.

         2                  ACTING PRESIDENT MORAHAN:

         3       Certainly he will.

         4                  SENATOR ADAMS:    Through you,

         5       Mr. President.  There are two candidates in

         6       the race.  Could the Senator tell me what the

         7       candidate leading in the race, what his

         8       position is on the gas tax?

         9                  (Laughter.)

        10                  SENATOR WINNER:    Senator, could

        11       you repeat the question?  I couldn't quite

        12       hear you.

        13                  ACTING PRESIDENT MORAHAN:

        14       Senator, repeat your question.

        15                  SENATOR ADAMS:    Yes.  The Senator

        16       indicated that there's a presidential

        17       candidate that supports this.  My question to

        18       the Senator is that there are two candidates

        19       in the race.  The candidate that is leading in

        20       the race, what is his position on this?

        21                  SENATOR WINNER:    Is he leading in

        22       the popular vote or the delegate vote or the

        23       superdelegate vote?  I don't know which

        24       vote -- I don't know which way you're leaning

        25       these days.  I get confused every time --



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         1                  ACTING PRESIDENT MORAHAN:

         2       Senator -- Senator, I believe he's leading in

         3       both categories.

         4                  SENATOR ADAMS:    Thank you.

         5                  SENATOR WINNER:    You're welcome,

         6       Senator.

         7                  So in conclusion, Mr. President --

         8                  ACTING PRESIDENT MORAHAN:    Thank

         9       you, Senator.

        10                  SENATOR WINNER:    -- this measure

        11       is clearly something that is needed in upstate

        12       New York, something that was heard as a

        13       clarion call for action by many on your side

        14       of the aisle as well as our former Governor

        15       and certainly our current Governor, who

        16       believes that the upstate economy matters.

        17                  Here is something that is a direct

        18       measure that will help the tourism industry in

        19       upstate New York, will provide for some

        20       relief, gives us an opportunity to market our

        21       advantage, for once in our life, as far as

        22       being a destination, affordable destination to

        23       take advantage of our tourism destinations and

        24       spend money in our upstate communities and

        25       mitigate against any potential costs of this



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         1       measure, and provides for some needed relief

         2       to the hardworking men and women who have to

         3       use their cars to get to work, go to the

         4       doctor, and hopefully drive to upstate

         5       New York and other tourist destinations in

         6       New York to take advantage of our tremendous

         7       opportunities.

         8                  Thank you, Mr. President.  I

         9       support this measure.

        10                  ACTING PRESIDENT MORAHAN:    Thank

        11       you, Senator.

        12                  Senator Maziarz.

        13                  SENATOR MAZIARZ:    Thank you,

        14       Mr. President.  On the bill.

        15                  ACTING PRESIDENT MORAHAN:

        16       Senator Maziarz, on the bill.

        17                  SENATOR MAZIARZ:    Mr. President,

        18       actually when I asked permission to rise

        19       today, I was going to ask the sponsor to yield

        20       for two questions.  And those two questions

        21       were answered by Senator Winner.

        22                  You know, I think we talked about

        23       bipartisanship.  I think Senator Klein and

        24       Senator Connor both mentioned about the

        25       administration in the White House.  I think



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         1       Senator Winner did a very good job of pointing

         2       out how it's not just the administration in

         3       the White House; you know, that both houses of

         4       Congress are controlled by one political

         5       party, and there never has been a same-as bill

         6       that went to the White House that the

         7       President could have signed to immediately

         8       give the impact, the price-reduction impact

         9       that this bill would do.

        10                  My other question was going to

        11       revolve around the junior U.S. Senator from

        12       the State of New York.  Senator Krueger talked

        13       about bipartisan support for this legislation.

        14                  And I know that I asked Senator

        15       Lanza privately if he had spoken recently or

        16       even seen in New York recently the junior

        17       United States Senator from the State of

        18       New York.  Of course we all know, particularly

        19       Senator Perkins knows that she hasn't spent

        20       much time here lately.  She's had other

        21       issues.  But through press reports we know

        22       that the junior Senator supports a bill

        23       identical to this bill, almost, on the federal

        24       level, to lower it there.

        25                  This is about lowering the cost to



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         1       working people in Buffalo and Niagara Falls

         2       and Rochester and Syracuse and Albany and

         3       across the state, New York City and Long

         4       Island, everywhere.  This would give immediate

         5       relief.

         6                  Senator Duane asked about hearings.

         7       You know, I don't know what we need -- I held

         8       three hearings on this particular issue, Tom.

         9       They were all at Wilson Farms Convenience

        10       Store on the corner of Walck Road and Nash

        11       Road in the City of North Tonawanda.  And I

        12       can tell you, there were environmentalists

        13       there, there were hunters there, there were

        14       senior citizens, there were young people.

        15                  And across the board, Tom, at those

        16       hearings, they want gas tax relief.  They want

        17       the price of their gasoline to come down.

        18                  I venture to say, as we go forward,

        19       that the two candidates for president, John

        20       McCain and one other one, will probably see

        21       the light on this particular issue and they'll

        22       all be talking about the high cost of

        23       gasoline.  And maybe then the federal

        24       government will act on it.  But until that

        25       time comes, I think this is a good move, it's



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         1       an immediate move to provide tax relief.

         2                  Thank you, Mr. President.  I'm glad

         3       I didn't have to ask Senator Lanza those

         4       questions.  Thank you.

         5                  ACTING PRESIDENT MORAHAN:    Thank

         6       you, Senator Maziarz.

         7                  Senator Hassell-Thompson.

         8                  SENATOR HASSELL-THOMPSON:    Thank

         9       you, Mr. President.  On the bill.

        10                  ACTING PRESIDENT MORAHAN:

        11       Senator Hassell-Thompson, on the bill.

        12                  SENATOR HASSELL-THOMPSON:    I had

        13       some questions too, but I don't think that my

        14       questions will be answered, so I'll just speak

        15       on the bill.

        16                  Because I think that one of the

        17       things that's clear is that it's right for us

        18       to be responsive to our hard-pressed

        19       New Yorkers, particularly our workers, our

        20       farmers, small business owners, all of those

        21       whose wages and profits are being eaten up by

        22       high gas prices.

        23                  But one of the problems is -- and

        24       this is where the sticky wicket is for me --

        25       as long as local governments have the option



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         1       of waiving local sales tax, and there's no

         2       guarantee that this is going to go into the

         3       pockets of these individuals, these

         4       families --

         5                  ACTING PRESIDENT MORAHAN:    Excuse

         6       me, Senator.

         7                  Senator Lanza, why do you rise?

         8                  SENATOR LANZA:    Would my

         9       colleague yield for a question?

        10                  ACTING PRESIDENT MORAHAN:

        11       Senator, would you yield for a question?

        12                  SENATOR HASSELL-THOMPSON:

        13       Certainly, Senator Lanza.

        14                  ACTING PRESIDENT MORAHAN:    The

        15       Senator yields.

        16                  SENATOR LANZA:    Through you,

        17       Mr. President.

        18                  Senator, it seemed as though you

        19       had an interest in asking questions but

        20       believed that you would not receive answers.

        21                  I want to assure you, Senator, we

        22       may have differences of opinion on this and

        23       other issues, but I will always do my best to

        24       work with my colleagues, whether Republican or

        25       Democrat, to answer any concern that you might



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         1       have.

         2                  So my question to you is, do you

         3       have questions for me?

         4                  SENATOR HASSELL-THOMPSON:    Yes, I

         5       do.  I have one question.

         6                  SENATOR LANZA:    If so -- if so,

         7       I'd love to answer them.

         8                  SENATOR HASSELL-THOMPSON:    Okay.

         9       Do you --

        10                  ACTING PRESIDENT MORAHAN:

        11       Senator, do you yield now for a question that

        12       you asked for?

        13                  SENATOR LANZA:    Yes.

        14                  (Laughter.)

        15                  ACTING PRESIDENT MORAHAN:

        16       Senator, he yields.

        17                  SENATOR HASSELL-THOMPSON:    Thank

        18       you, Mr. President.  Through you.

        19                  Senator Lanza, the one question

        20       that I really have is that if you want to work

        21       with us, pull the bill.  Are you willing to

        22       pull the bill?

        23                  ACTING PRESIDENT MORAHAN:

        24       Senator Lanza.

        25                  SENATOR LANZA:    Through you,



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         1       Mr. President, absolutely not.  The people

         2       cannot wait.

         3                  This is an answer to your question.

         4       Will I pull --

         5                  SENATOR HASSELL-THOMPSON:    You

         6       answered my question.

         7                  SENATOR LANZA:    I will not,

         8       because the people need results.  They need

         9       relief.  And they need it now.  They can't

        10       wait for us to keep talking about it.

        11                  We can keep doing that.  We will

        12       keep talking about this and keep finding

        13       better ways to go even further.  But right

        14       now, this is what we can do now that will

        15       deliver real results and real relief to

        16       people.

        17                  So, Mr. President, I will not pull

        18       this bill because the people back home are

        19       counting on us, I believe, to pass this

        20       legislation and get it chaptered.

        21                  ACTING PRESIDENT MORAHAN:    Thank

        22       you, Senator.

        23                  SENATOR HASSELL-THOMPSON:    Thank

        24       you, Mr. President.  Let me continue.  And now

        25       you can understand why I didn't ask the



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         1       question.

         2                  My concern is the same as yours, is

         3       that the people in our communities need

         4       relief.  But there is nothing, Senator Lanza,

         5       in this bill that guarantees that that money

         6       savings is going to go into the pockets.

         7       Because you have given local government the

         8       opportunity and the authority to waive, you

         9       cannot guarantee that any of the workers that

        10       we're concerned about, any of the farmers that

        11       we're concerned about, that there's a

        12       guarantee that they're going to receive these

        13       benefits.

        14                  When we did the last tax savings,

        15       the county executive in my county refused to

        16       pass that savings on to the consumer.  He said

        17       that it was in his purview to do with tax

        18       savings what he chose, and it went into the

        19       general fund.  We never saw it.

        20                  In New York City, each of the

        21       counties in New York City experienced the same

        22       thing.  Bloomberg did not pass that savings on

        23       to the counties and to the communities.

        24                  There is nothing in this bill that

        25       tells me that if I were to go back home and



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         1       say that I voted for this bill, that they

         2       could guarantee that whatever the savings --

         3       whether it's $30, whether it's $50, whatever

         4       that savings -- and $50 is significant --

         5       Senator Lanza?  Fifty dollars is significant

         6       in my community.

         7                  I represent a part of Westchester,

         8       but I certainly don't represent the most

         9       wealthy part of Westchester.  I represent the

        10       working class and poor people who are on

        11       welfare.  And those who do have cars and do

        12       have to use their cars for work, $50 or $25 a

        13       week makes the difference.  It makes a

        14       difference to me, so I know it makes a

        15       difference to them.

        16                  So please do not believe that we

        17       are ignoring that.  What we're concerned about

        18       is what is it that this bill will do that will

        19       guarantee that what you say will happen, will

        20       happen.  Because I can't go home and lie to

        21       the people in my district and say:  You're

        22       going to get this savings, I know you are.

        23       This is not like the bogus check that's

        24       supposed to come from Washington that they

        25       never got.  There are people who are still



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         1       waiting for STAR that they never got.

         2                  Every time we promise something and

         3       we cannot deliver it, that makes my polls go

         4       down.  And it impugns my integrity.  I cannot

         5       vote for a bill that does not help me to

         6       ensure that the people in my district are

         7       going to benefit the way we say.

         8                  And it isn't about oil prices and

         9       who's at fault and who's responsible.  This

        10       bill is supposed to be an action that we as

        11       state legislators are taking in order to give

        12       relief to the people in our communities.  And

        13       unless there is a demonstration to me that

        14       that relief is coming, then I cannot vote for

        15       this bill.

        16                  Thank you, Mr. President.

        17                  ACTING PRESIDENT MORAHAN:    Thank

        18       you, Senator.

        19                  Senator Craig Johnson.

        20                  SENATOR CRAIG JOHNSON:    Thank

        21       you, Mr. President.  On the bill.

        22                  ACTING PRESIDENT MORAHAN:

        23       Senator Johnson, on the bill.

        24                  SENATOR CRAIG JOHNSON:    Thank

        25       you, Senator Lanza, for introducing what I



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         1       believe is a very important piece of

         2       legislation.  I see this as reasonable people

         3       with reasonable positions can differ.

         4                  The fact is is that our residents

         5       all across the state, and in particular

         6       Long Island, are hurting right now.  You can

         7       drive from the Queens-Nassau border all the

         8       way out to the Hamptons, from my district out

         9       to Senator LaValle's and Senator Trunzo's

        10       district, and see the rising gas prices even

        11       at the pump from going west to east.

        12                  And there's no doubt that

        13       legislation that comes before us sometimes has

        14       imperfections.  And obviously, in hearing the

        15       debate, my colleagues have some real concerns

        16       about whether or not there's going to be a

        17       real, tangible savings put into the wallets of

        18       our consumers with respect to this

        19       legislation.

        20                  Now, what's interesting is Senator

        21       Clinton's, Hillary Clinton's plan was

        22       referenced in this debate.  And what's

        23       important to recognize, and an important

        24       component -- and even members of my own party

        25       differ on whether or not it's a valuable



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         1       plan -- is that she wants the oil companies to

         2       cover the freight when it comes to the tax.

         3       Same oil companies making record profits, take

         4       a little bit out of their pocket to help out

         5       our residents across the nation.

         6                  There's nothing in this legislation

         7       that would address that.  And maybe when it

         8       passes this house, and I'm hopeful it passes

         9       this house, that we can go back and address

        10       that issue.

        11                  Maybe we can go back and address

        12       the issue of criminal price gouging.  Because

        13       watch the news today, go home when we go home

        14       and watch the news tonight.  No doubt on one

        15       of the major news channels someone will talk

        16       about gas hitting $5 a gallon this summer.  No

        17       doubt someone will talk about it maybe hitting

        18       $6 a gallon.  Somehow we have to address the

        19       gouging issue.

        20                  Because my concern is that

        21       notwithstanding the savings we put back to our

        22       residents, what in this bill stops a

        23       wholesaler or a gas company from simply

        24       marking up the price?  That's something we

        25       should probably address going forward after



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         1       today.

         2                  But the fact is is that our

         3       residents -- and you and I listen to them

         4       every day, and we hear from them every day --

         5       need action now.  They need some form of

         6       relief now.  They don't need to hear the

         7       talking.

         8                  And quite frankly, what we also

         9       need to see is some action from the Assembly

        10       side on this legislation.  And obviously I

        11       will speak to my colleagues in the Assembly,

        12       just like I hope my colleagues in the majority

        13       do the same thing.  Because it's not about

        14       finger-pointing.

        15                  And I agree with you, Senator

        16       Lanza, the finger-pointing has to stop,

        17       because that doesn't help our constituents.

        18       They do not want us up here to finger-point.

        19       They want us to help them.

        20                  And so if it's a choice between a

        21       bill that has some flaws or a choice between

        22       doing something for our residents, I'll do

        23       something that helps our residents.

        24                  I appreciate the efforts, and this

        25       is a good bill.  And I'll work with you,



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         1       Senator Lanza, to strengthen the bill.  I

         2       think we need to, in a bipartisan manner,

         3       Democrats and Republicans working together to

         4       help improve the lives of our residents.

         5                  So when it comes time to vote,

         6       Mr. President, I will be voting in the

         7       affirmative and supporting this piece of

         8       legislation.  Thank you very much.

         9                  ACTING PRESIDENT MORAHAN:    Thank

        10       you, Senator.

        11                  Senator Diaz.

        12                  SENATOR DIAZ:    Thank you,

        13       Mr. President.  On the bill.

        14                  ACTING PRESIDENT MORAHAN:

        15       Senator Diaz, on the bill.

        16                  SENATOR DIAZ:    I am very glad to

        17       hear my Democratic colleague, the great

        18       Senator from Long Island, Craig Johnson,

        19       indicating his intention of supporting this

        20       bill.

        21                  That proves something.  That proves

        22       that this is not Republican against Democrat.

        23       I'm a Democrat.  I'm just going to repeat

        24       myself.  You heard the democratic Senator from

        25       Long Island, Craig Johnson, expressing his



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         1       support of the bill.

         2                  This is one of those pieces of

         3       legislation that we should not be looking --

         4       that it should not be looked at as Democrat or

         5       Republican, but looked at as an independent.

         6                  We should know that the people in

         7       the 32nd District in the Bronx, which I

         8       represent, every time that they go to buy

         9       gasoline, they're paying taxes not one, not

        10       two different taxes, not three -- four, four

        11       different taxes.  The people in the Bronx,

        12       which I represent, they pay, for every gallon

        13       of gas, for every gallon of gas that they

        14       purchase, they pay 16 cents on something

        15       called state petroleum business tax.  State

        16       petroleum business tax, 16 cents per gallon.

        17       They pay 8 cents per gallon for something

        18       called state sales tax.  And they pay 8 cents

        19       a gallon for another tax called state motor

        20       fuel excise tax.  And then they pay 14 cents

        21       per gallon for the local tax.

        22                  So they pay 32 cents per gallon

        23       throughout the state.  And the people in my

        24       district pay 14 cents extra per gallon, which

        25       would be 56 cents per gallon for the people



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         1       that I represent.

         2                  You know, if we are going to blame

         3       and play the blame game, we have plenty to go

         4       around, plenty to blame.  We could be here the

         5       whole summer blaming Bush, Cheney and the

         6       Republicans.  And there is plenty there to

         7       blame Bush, to blame Cheney, and to blame the

         8       Republicans for the increase in the oil.

         9                  But, ladies and gentlemen, we could

        10       also blame the democratic Congress of America,

        11       the Senate, the U.S. Senate controlled by

        12       Democrats, and the U.S. House of

        13       Representatives controlled by Democrats.  So

        14       we want to blame?  We could blame Cheney, Bush

        15       and the Republicans, or we could blame the

        16       Democrats, because they've got the power to do

        17       something and they haven't done it either.

        18                  So if we're going to play the blame

        19       game, Cheney, Bush?  Nah.  The Democrats, the

        20       Senate and the Congress?  They both are to

        21       blame.

        22                  But also we could keep blaming.  We

        23       could keep playing the blame game and we could

        24       blame the greediness of the oil companies.

        25       They make billions of dollars in profit while



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         1       the people suffer.  So, see, we could blame

         2       Bush, Cheney, the Republicans?  Nah.  We could

         3       blame the Democrats in the Congress, the

         4       Senate and the House of Representatives, even

         5       though we have, in New York, the people that

         6       are the chairman of the Ways and Means

         7       Committee and the one powerful committee

         8       that's -- so we could have blame.  We could

         9       blame the oil companies, they're greedy.

        10       They're greedy, greedy, greedy, greedy.

        11       Billions of dollars in profit while the people

        12       suffer.

        13                  Or, if we don't want to blame Bush

        14       and Cheney and the Republicans, if we don't

        15       want to blame the Democrats, the Democratic

        16       Congress, we don't want to blame the oil

        17       companies, we could blame the

        18       environmentalists.  We all know that there is

        19       enough oil here in the nation, enough oil so

        20       we could end the dependency on foreign oil.

        21       So we got enough oil here, but the

        22       environmentalists don't allow the federal

        23       government to drill in the places where we got

        24       oil.

        25                  So if you don't want to blame Bush,



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         1       Cheney, you don't want to blame the Democratic

         2       Congress, you don't want to blame the

         3       greediness of the oil companies, and you don't

         4       want to blame the environmentalists, then we

         5       could blame the fiscal analysis.  The money

         6       doesn't go to the people that are supposed to

         7       get the money.  I'm going to tell you that the

         8       people in the Bronx, they pay $4 to cross the

         9       Washington Bridge, $4, to fill the tanks.

        10       Because there, they save, because the taxes

        11       there in gas are lower.  People pay the toll,

        12       $4, go there, fill up the tank and they're

        13       still saving money.

        14                  So when we say in the fiscal

        15       analysis people won't get the money, I don't

        16       know what we're talking about.  Because we pay

        17       less taxes and people go and fill the tanks,

        18       that's money that we pay.

        19                  But if we don't want to blame Bush,

        20       Cheney, and the Republicans, and we don't want

        21       to blame the Democratic Congress and the

        22       New York State delegation in Congress, and we

        23       don't want to blame the greediness of the oil

        24       companies, and we don't want to blame the

        25       environmentalists for not allowing us to drill



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         1       and get the oil that we need, and we don't

         2       want to blame the fiscal analysis, then we

         3       could blame you guys for not consulting us and

         4       not allowing us to be part of this thing.

         5                  So a lot of things to blame.  We

         6       could blame -- we could be here blaming and

         7       blaming and blaming and blaming and blaming.

         8       And as I said before, this is not a piece of

         9       legislation that we have to be looking at as a

        10       Republican, as a Democrat, or as independent.

        11       We have to be looking at this as what is best

        12       for the worker of New York State, what is best

        13       for the workers.  We have to be looking at

        14       this piece of legislation for what is best for

        15       the families of the State of New York.

        16                  We have to be looking at this piece

        17       of legislation of what is best for the

        18       middle-class New Yorkers who are watching,

        19       watching closely for government action.  We

        20       have to look at this piece of legislation of

        21       what is best for the small business owner

        22       whose wages and profits are being eaten up by

        23       the high price of gas.

        24                  We have to be looking to this piece

        25       of legislation of what is best for the



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         1       lower-wage workers who are now paying up to a

         2       quarter of their income for gas for get to

         3       work.  We have to be looking at this piece of

         4       legislation for what is best for those

         5       New Yorkers who are on the brink between work

         6       and welfare due to the high price of gas.

         7                  So, ladies and gentlemen, I'm not

         8       going to fall into a blame game.  I'm not

         9       going to blame Bush and Cheney, even though I

        10       know there is a lot of things to blame.  I'm

        11       not even going to blame my party, my

        12       Democratic Party.  I'm a member of the

        13       Democratic conference that controls the

        14       Congress and the U.S. Senate, and they have

        15       the power to do something, but they are not

        16       doing it.

        17                  I'm not even going to blame the

        18       greediness of the oil companies, because I'm a

        19       State Senator.  I'm a State Senator.  I can do

        20       nothing with the prices of oil.  I cannot do

        21       nothing for stopping Bush from doing whatever

        22       he wants to do.  And I cannot do nothing in

        23       Congress.  I'm not a Congressperson.

        24                  I'm not even going to blame the

        25       environmentalists, because they want to



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         1       protect animals and the environment.  In order

         2       to protect those animals and the environment,

         3       they are not allowing people to drill.  So by

         4       not allowing us to drill, we are depending on

         5       foreign oil.  But we could drop that.  We

         6       could drop the dependency on foreign oil if we

         7       drill here in America.

         8                  I'm not even going to blame the

         9       fiscal analysis.  I'm not even going to blame

        10       anything.  I'm just going to say, Senator

        11       Lanza, I'm going to join my colleague from

        12       Long Island, the great Senator from Long

        13       Island, Craig Johnson, a Democrat like me, to

        14       join you and to show and to send a message

        15       that this is not a Republican or a Democrat,

        16       this is something that is going to bring some

        17       kind of relief to the people of New York.

        18                  I do like you, Senator Lanza, I go

        19       to New Jersey.  I do like you, I go to New

        20       Jersey, fill up my tank, and I save -- I save,

        21       coming up, about $6 coming up.  Now when I

        22       leave today, I'm going to go to New Jersey,

        23       fill the tank again, and I save another $6.

        24                  So I'm with you.  And I'm getting

        25       the money.  The money -- I am getting the



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         1       money.  I am -- that savings is coming to my

         2       pocket.  So when people say how we're going to

         3       be sure that the money goes to the consumer,

         4       I'm telling you, I'm proof of that every week

         5       when I come here.

         6                  So, ladies and gentlemen, I am

         7       voting, I am -- I intend -- no, no, can I vote

         8       now?  I'm voting yes.  Proudly yes.  Because

         9       the people of the 32nd Senatorial District in

        10       Bronx County deserve -- taxi drivers -- taxi

        11       drivers, bodegueros, senior citizens, nurses

        12       doctors, police officers, firemen, my wife,

        13       us.  We all want to be benefitting from this

        14       piece of legislation that is bipartisan here,

        15       okay, because Craig Johnson and me are with

        16       you guys.

        17                  Thank you, Mr. President.

        18                  ACTING PRESIDENT MORAHAN:    Thank

        19       you, Senator.

        20                  Senator LaValle.

        21                  SENATOR LaVALLE:    Thank you,

        22       Mr. President.  I'm going to be very brief,

        23       because a lot has been said on this bill.

        24                  But one of the things -- I've heard

        25       a couple of things that have kind of inspired



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         1       me to get up and speak.  Because when I sit

         2       here and I listen to colleagues say this bill

         3       is about making constituents happy, making

         4       constituents happy, that comment is far from

         5       what is happening in my Senate district.  And

         6       I can only speak about my Senate district.

         7                  People always have the image that

         8       people live on Long Island, they're wealthy.

         9       When you go back and you talk to people, all

        10       different levels, and they start telling you

        11       that putting food on the table is becoming a

        12       problem, it's becoming a challenge.  And you

        13       listen to people and they tell you that they

        14       bought Brand X -- they bought Cheerios for

        15       $4.35; they can't afford that.  They're buying

        16       the Price Chopper brand or Waldbaum's or Stop

        17       & Shop.  Instead of having chopped meat once a

        18       week, it's now three times a week.

        19                  I made a speech and I talked about

        20       the gas tax and how this would at least allow

        21       people during the summer months to take a

        22       holiday.  You know, you don't have to leave

        23       Long Island in the summertime.  You can -- if

        24       you live in Port Jefferson, you can go out to

        25       Montauk, you can go out to Greenport.  You can



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         1       stay on the island if you wanted to.  Great

         2       beaches, et cetera.

         3                  I had people tell me:  "Senator --

         4       vacation?  There will be no vacation.  I can't

         5       put food on the table.  I can't put food on

         6       the table."

         7                  Senator Lanza was right.  People

         8       send us here and we deal and have, at critical

         9       times, in a bipartisan way with issues.  But

        10       people need results.  They don't need "we

        11       could have," "we should have."  We don't need

        12       that.

        13                  It is true there should be

        14       leadership from Congress.  They didn't do

        15       anything on the immigration issue.  They are

        16       not going to do anything on this issue.  Thank

        17       God we have a federalist system where we as

        18       the states can take leadership on issues.

        19                  Senator Lanza has gone out and

        20       taken leadership on this issue, and he's

        21       right.  It's the right time to do this.

        22       People need help now.

        23                  And I know that I'm not saying

        24       anything that you in your own districts don't

        25       know.  Whether it's in the North Country or



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         1       Western New York or Central New York or

         2       New York City, people are feeling this economy

         3       and gas and the way they heat their homes and

         4       the cost of utilities and the cost of property

         5       taxes.  They are being crushed.  And any

         6       relief that we can give them on any one of

         7       these areas, we need to do it now before this

         8       session is over.

         9                  Thank you, Mr. President.

        10                  ACTING PRESIDENT MORAHAN:    Thank

        11       you, Senator.

        12                  Senator Schneiderman.

        13                  SENATOR SCHNEIDERMAN:    Thank you,

        14       Mr. President.

        15                  I must say I have very high regard

        16       for my colleagues and the people who serve in

        17       this house on both sides of the aisle.  But I

        18       have to say that today I view as a really poor

        19       example of governing.

        20                  We are talking about serious

        21       issues, the fact that people need help.  We

        22       are in the worst economic crisis in this state

        23       since the 1970s.  People need results.  That's

        24       not what this debate is about.  That's not

        25       what this bill is about.  This bill is about



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         1       pandering and hypocrisy.

         2                  And as long as we're talking about

         3       pollution, I tell you, Mr. President, I feel

         4       like the rank stench of pandering is polluting

         5       the air of the Senate today.

         6                  What's the question before us?  Is

         7       this bill good for the working people of this

         8       state or bad for the working people of this

         9       state?  That's a legitimate question.

        10                  Now, what do we know about this

        11       legislation?  We know that, contrary to the

        12       sponsor's statement, there is no price-gouging

        13       provision.  We know that there is no mechanism

        14       to see that any of the $629 million this bill

        15       will take away from the General Fund of the

        16       State of New York will go to consumers, much

        17       less to the poor and working people who need

        18       the relief.

        19                  We know, in spite of the sponsor's

        20       extraordinary statement that he doesn't

        21       believe that oil companies ever engage in

        22       price gouging -- which, you know, having a

        23       passing knowledge of the history of that

        24       industry, is demonstrably false -- in spite of

        25       his statement, we know that some of the



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         1       $629 million that we are taking from the

         2       General Fund will stick to the fingers of the

         3       oil companies, some of it will stick to the

         4       fingers of the wholesalers, some of it will go

         5       to people who are very well-to-do, who are

         6       driving anyway.

         7                  So how much of this $629 million

         8       that we need badly for programs for poor and

         9       working people will go to those poor and

        10       working people?  Not much.  And there is no

        11       way to predict that any amount will actually

        12       go to the people most in need.

        13                  So let's look at the hypocrisy.

        14       Let's look at the hypocrisy here.  My

        15       colleagues on the other side of the aisle --

        16       during the Pataki-Bruno era, the New York

        17       State leadership on the other side of the

        18       aisle presided over the largest redistribution

        19       of wealth from poor and working people to the

        20       wealthy we've ever seen in the State of

        21       New York.

        22                  You like to pretend that you are

        23       tax-cutters, but the size of our state and

        24       local governments virtually doubled during the

        25       Pataki-Bruno era, and the tax burden increased



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         1       to pay for it.

         2                  The poor and working people of this

         3       state need the public services that we provide

         4       for, but they are paying a greater and greater

         5       cost, they're paying a greater and greater

         6       share.

         7                  You know where that $629 million is

         8       coming from that you're ripping out of the

         9       state General Fund today?  It's coming from

        10       the poor and working people of this state.

        11                  How is it, after the Pataki-Bruno

        12       era, that today in the Empire State the

        13       poorest 50 percent of New Yorkers, the people

        14       most in need, pay almost 12 percent of their

        15       income in state and local taxes while the

        16       richest 1 percent pay 6.5 percent of their

        17       income in state and local taxes?

        18                  You know who's being hurt here

        19       during the Pataki-Bruno era?  It is the poor

        20       and working people of the state.  We're

        21       putting the burden on them.  And yet we pose

        22       as tax-cutters with these gimmicks, these

        23       rebates, these schemes, similar to the scheme

        24       today.  But the amount of money you cut in

        25       income taxes for the wealthy far outweighs



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         1       anything you do for the poor and working

         2       people of this state.

         3                  So now you're showing up here

         4       saying, Well, we are all about putting money

         5       in the pockets of working people.  History

         6       tells us otherwise.  The bottom line does not

         7       lie.

         8                  What does this mean to rip

         9       $629 million out of the General Fund?  Who's

        10       going to pay for it?  Poor and working people.

        11       What programs will be cut?  Programs for poor

        12       and working people.

        13                  This is a one-house bill, not just

        14       opposed by the leadership in the Assembly, who

        15       have the integrity to step up to this, not

        16       just opposed by the Governor, who has the

        17       integrity to step up to this; it is opposed by

        18       every economist in the country.

        19                  When they asked Senator Clinton --

        20       to our great shame, she has been on the wrong

        21       side of this issue at the federal level.

        22       Everyone's entitled to make mistakes.  When

        23       they asked her to name one economist who

        24       supports this notion, she could only cite her

        25       husband.  Who as far as I know, he's many



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         1       things, but he's not an economist.

         2                  But this is not what's happening

         3       here today.  We're not passing money along to

         4       people.  We're not doing anything.  This is a

         5       one-house bill that is opposed by everyone on

         6       every side of the aisle who is honest.

         7                  Let me cite to you a statement from

         8       a senior fellow at the Manhattan Institute,

         9       right-wing think tank.  Max Schulz said:  "It

        10       is bad policy and political gimmickry.  If you

        11       want to deliver relief to folks, you have to

        12       do more than just a little holiday for the gas

        13       tax, you have to address what is driving the

        14       price of crude oil."

        15                  From the left, a former

        16       undersecretary of commerce in the Clinton

        17       administration, Robert Shapiro, said:  "It is

        18       utterly misguided, both environmentally and

        19       economically.  Environmentally it does actual

        20       harm, since it reduces the price of producing

        21       greenhouse gases, and economically it's

        22       trivial or worse.  By reducing the price of

        23       driving, it encourages more of it, thereby

        24       increasing demand for gasoline, which

        25       inevitably pushes the price back up."



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         1                  Well, what we're doing today is

         2       worse than what they were trying to do at the

         3       federal level.  Because unlike the feds, we

         4       have to balance our budget.  So what you are

         5       voting for if you vote for this bill today and

         6       this pretense and this sham that all of a

         7       sudden the Republican Party is all about

         8       putting money back in the pockets of working

         9       people, what you're doing is ripping

        10       $629 million we don't have out of the General

        11       Fund.

        12                  And we know, from your record and

        13       from history, the people who will pay, both in

        14       taxes and in program cuts, are the poor and

        15       working people of this state.

        16                  Look at the history, step up to it

        17       honestly.  I'm going to vote against this

        18       bill.  But I really think that the biggest

        19       disgrace here today is that we're not having

        20       an honest debate about targeting money to the

        21       people who need it most.

        22                  Senator Klein's proposal for a

        23       targeted rebate actually does get the money to

        24       the people who need it.  But has that been

        25       under consideration?  No.  Maybe because we



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         1       don't have hearings, you don't invite us into

         2       the discussion.  And with the same way that

         3       the majority here exercises this absolute

         4       power, this dictatorial control over what

         5       comes to the floor, you are serving your

         6       agenda, which is not the agenda of the working

         7       people.

         8                  I object to anyone on the other

         9       side of the aisle, after the record of the

        10       Pataki-Bruno era, pretending that you are

        11       about putting money in the pockets of working

        12       people.  That is a value of our conference.

        13       That is a value embodied by Malcolm Smith.

        14       That is our value.  We are going to step to

        15       that value.  We will have our own proposals.

        16       I doubt they will see the light of day in this

        17       house.

        18                  In the meantime, until we are able

        19       to bring our proposals to the floor and

        20       actually deliver for poor and working people,

        21       I'm voting no, Mr. President.

        22                  ACTING PRESIDENT MORAHAN:    Thank

        23       you, Senator Schneiderman.

        24                  Senator Nozzolio.

        25                  SENATOR NOZZOLIO:    Mr. President,



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         1       on the bill.

         2                  ACTING PRESIDENT MORAHAN:

         3       Senator Nozzolio, on the bill.

         4                  SENATOR NOZZOLIO:    Mr. President

         5       and my colleagues, as many of us do, I often

         6       speak to high school and junior high school

         7       classes like the one visiting me today from

         8       Marion Central School in Wayne County.

         9                  And they ask me:  What should I

        10       study to be involved in the political issues

        11       of the day?  Should I study history?  Should I

        12       study political science?  How do I get

        13       involved in government?  What should I do to

        14       focus my attention on participating in my

        15       government?

        16                  My suggestion to them is there are

        17       two subjects you should focus on.  The first

        18       is English; the second is economics.  And,

        19       frankly, the rhetoric that I heard discussed

        20       today by the members of this house shows why

        21       my advice to those students is absolutely on

        22       the mark.

        23                  I heard from Senator Krueger,

        24       Senator Connor, and my friend Senator

        25       Schneiderman discuss how they believe, in



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         1       their world, the economists would oppose us in

         2       Senator Lanza's tremendous attempt to

         3       eliminate the gas tax in New York State for a

         4       short period of time.  We heard those

         5       economists quoted about their concerns for

         6       global warming, the lack of a national energy

         7       policy, the need for a reduced consumption of

         8       petroleum products worldwide.

         9                  I say to those Nobel laureates, you

        10       can give us all the advice you want.  But the

        11       working people in Wayne County, the farmers

        12       who drive the tractors, the people who have to

        13       travel 12 miles, 14 miles round trip to get a

        14       loaf of bread or a quart of milk, the people

        15       who need to commute to their jobs in Rochester

        16       or Syracuse, entailing a 60-mile per day, at

        17       least, commute to work -- those are the people

        18       who are going to be helped by this bill.

        19                  And I do not care about the

        20       New York Times and their focus on how the

        21       economy of New York City is not going to be

        22       helped by this bill.  Frankly, this bill helps

        23       the working people of upstate New York.

        24                  And I thought earlier this year the

        25       issue of the day was how everyone was going to



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         1       unite to help the upstate economy.  Well,

         2       Senator Lanza certainly has helped the entire

         3       state's economy by this measure.  This measure

         4       that will enhance many economic enterprises

         5       during the course of the suspension of the

         6       gasoline tax.

         7                  It was mentioned that the

         8       number-one industry in New York State is

         9       agriculture.  Agriculture has been devastated

        10       by the rising cost of petroleum products.  The

        11       number-two industry in New York State is

        12       tourism.  And all of our regions that depend

        13       on tourism -- and I represent most of the

        14       beautiful Finger Lakes region -- that region

        15       is going to be significantly hurt if motorists

        16       are impeded to travel to the Finger Lakes,

        17       enjoying the great sights and venues of the

        18       Finger Lakes if the gas tax is so -- if the

        19       gasoline costs are so oppressive.

        20                  I congratulate Senator Lanza for

        21       his courage, for his bringing this measure to

        22       the floor.  I believe strongly that all the

        23       transactions that will not occur because of

        24       the oppressive cost of gasoline are going to

        25       be the real fiscal impact of us not doing this



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         1       bill.  In other words, the fiscal impact that

         2       Senator Lanza quoted is far, far smaller than

         3       the total fiscal impact of the rising costs of

         4       gasoline on our economy.

         5                  We need to do all we possibly can.

         6       And, Mr. President, that's why I strongly

         7       support this measure.

         8                  ACTING PRESIDENT MORAHAN:    Thank

         9       you, Senator.

        10                  Senator Marcellino.

        11                  SENATOR MARCELLINO:    Mr.

        12       President, I'll explain my vote.

        13                  ACTING PRESIDENT MORAHAN:

        14       Senator Stavisky.

        15                  SENATOR STAVISKY:    Thank you,

        16       Mr. President.

        17                  Reducing the cost of gas is a very

        18       appealing idea.  People need some relief from

        19       the high cost of living.  Suddenly we're

        20       hearing people talk about not being able to

        21       afford putting food on their table.  We hear

        22       that food pantries are running out of food.

        23       So reducing the gas tax to help our

        24       constituents is extremely important.  People

        25       need help.



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         1                  We have heard today about the gas

         2       tax and the sales tax, particularly because

         3       the gas tax and the sales tax are not based

         4       upon ability to pay.  They are regressive

         5       taxes affecting the middle class and the lower

         6       middle class disproportionately to people for

         7       whom another 10- or 20-cent or 50-cent per

         8       gallon gas fee would be less significant.

         9                  But there's a difference here.

        10       We've been hearing about eighth-grade

        11       economics, and we've been hearing about the

        12       fact that economists are opposing this type of

        13       bill.  The tax on clothing is quite different

        14       than the tax on gasoline.  We can always

        15       produce more clothing, but we can't produce

        16       more gasoline.

        17                  And as the cost of gas is going to

        18       obviously go up in the summer because the

        19       demand will rise, we can't increase

        20       production, because the refineries are

        21       producing about as much as they can produce.

        22       And reducing the state gasoline tax will

        23       presumably increase the demand.  And the

        24       supply just can't keep up with the demand and

        25       the price, I'm afraid, is going to go up even



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         1       higher.

         2                  So that's the first point in terms

         3       of the economy.  We want to be able to do

         4       something to help the consumer, there's no

         5       question about that.

         6                  There are three answers that we

         7       really haven't been able to address.  For the

         8       first one, the 600-plus-million-dollar eficit

         9       that's going to be created by the passage of

        10       this legislation.  There's going to be a hole

        11       in the budget.

        12                  Secondly, the question of price

        13       gouging.  There is the danger -- and this bill

        14       does nothing to protect the consumer from

        15       price gouging.

        16                  And lastly, if I thought that the

        17       savings would be passed on to the consumer, I

        18       would vote for this bill.  I would vote for

        19       this bill if the consumer were going to

        20       benefit.  But I haven't seen anything that

        21       tells me that the savings are not going to be

        22       consumed by the oil companies, the refineries,

        23       the middleman -- or middlewoman -- the

        24       wholesaler or the local owner of the service

        25       station.



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         1                  The New York Times had a very

         2       interesting article, I think it was yesterday,

         3       and it says:  "Since 2000, four states have

         4       enacted gas tax holidays:  Florida, Georgia,

         5       Illinois and Indiana.  In general, retailers

         6       did not pass on all of the intended savings."

         7                  And that's what bothers me,

         8       Mr. President, because I don't think we need

         9       to enrich the oil companies any further.  And

        10       for that reason, I think this bill should not

        11       be passed.

        12                  Thank you.

        13                  ACTING PRESIDENT MORAHAN:    Thank

        14       you, Senator.

        15                  Senator Parker.

        16                  SENATOR PARKER:    Mr. President,

        17       on the bill.

        18                  ACTING PRESIDENT MORAHAN:    On the

        19       bill.

        20                  SENATOR PARKER:    First, let me

        21       commend Senator Lanza for his hard work on

        22       this issue.  This is an important issue.  I

        23       know that he cares about the people in this

        24       state and the people in his district.  You

        25       know, we're all, in our districts, under



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         1       pressure to respond to this issue.

         2                  And, you know, the problem is --

         3       this is the right issue.  The problem is this

         4       does not take us nearly as far as we need to

         5       go, unfortunately.  I too would like to

         6       relieve my constituents, the hardworking

         7       families in my district who, you know,

         8       oftentimes, like Senator Lanza's families,

         9       oftentimes have to use their vehicles to get

        10       back and forth to work or to use their

        11       vehicles in the commission of their work.  But

        12       this bill does not take us where we need to

        13       go.

        14                  There's been a lot said about

        15       making our constituencies happy.  And we as

        16       legislators essentially have, you know, two

        17       roles.  And the question is, what are you

        18       going to be today?  Are you going to simply be

        19       a representative that listens to what the

        20       populace and what the polls are saying, or are

        21       you going to be a leader?

        22                  Are you going to be a

        23       representative, or are you going to simply,

        24       you know, just do what you're told to do and

        25       let people pull -- and not even people,



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         1       polls -- pull your strings and tell you how to

         2       move your mouth and how to move your feet?  Or

         3       are we really going to be leaders?

         4                  And what leaders do different than

         5       simply being a representative is that leaders

         6       lead.  Managers do things right; leaders do

         7       the right things.

         8                  And this is not the right thing.

         9       The right thing to do is at a time when we

        10       know that fossil fuels are destroying our

        11       economy and the fact that we are going into an

        12       economic spiral because of energy costs, the

        13       thing that leaders do is chart a new

        14       direction.

        15                  So as the ranking member on the

        16       Energy and Telecommunications Committee, and

        17       as the chair of the Democratic Task Force on

        18       Alternative Energy Futures, what I would

        19       suggest as a leader would be now is the exact

        20       time -- instead of putting, you know, a hole

        21       in our General Fund of over $600 million, now

        22       is the time to be investing in NYSERDA and

        23       investing in alternative energy products.

        24                  Now is the time to pass, you know,

        25       one of my bills that would in fact provide



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         1       alternative energy along the Thruway, so that

         2       we can encourage people to buy alternative

         3       energy vehicles.

         4                  I would suggest that as leaders we,

         5       you know, bring forward and pass and encourage

         6       Dean Skelos's bill that in fact continues to

         7       provide a tax incentive for people to buy

         8       hybrid vehicles.  Right?  Those are the kind

         9       of things that we ought to be doing now at

        10       this critical thing.

        11                  But pandering to polls and

        12       pandering, you know, to the editorial boards

        13       is not exactly what leaders ought to be doing

        14       now.

        15                  This is the right issue.  This is

        16       the right time.  But this bill here is the

        17       wrong solution.  And so I'll be voting no.

        18                  I encourage my colleagues on both

        19       sides of the aisle to think about this, think

        20       about the legacy that you're going to be

        21       leaving your children and your grandchildren.

        22       Do you want to in fact leave them a legacy to

        23       say that at the critical time in history that

        24       you pandered to the polls instead of making

        25       sure that they had a viable future and made



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         1       sure that alternative energy was in fact part

         2       of that new future that they have?

         3                  Thank you.

         4                  ACTING PRESIDENT MORAHAN:    Thank

         5       you, Senator.

         6                  Senator Aubertine.

         7                  SENATOR AUBERTINE:    Thank you,

         8       Mr. President.

         9                  I certainly intend to support this

        10       particular piece of legislation.  However, I

        11       do have a couple of concerns.  And if the

        12       sponsor would yield just to address those

        13       concerns, if he might.

        14                  ACTING PRESIDENT MORAHAN:

        15       Senator Lanza, will you yield?

        16                  SENATOR LANZA:    Yes,

        17       Mr. President.

        18                  ACTING PRESIDENT MORAHAN:    The

        19       Senator yields.

        20                  SENATOR AUBERTINE:    Thank you,

        21       Senator.  Thank you, Mr. President.

        22                  A couple of the questions that I

        23       have on this bill.  As you're no doubt aware,

        24       farm use of diesel fuel is not taxed.  In

        25       fact, it's dyed, the fuel is, when it's



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         1       delivered, so that it's not used commercially.

         2                  Are you aware of that?

         3                  SENATOR LANZA:    I'm sorry.  Mr.

         4       President, through you, what is not used

         5       commercially?

         6                  SENATOR AUBERTINE:    Diesel fuel

         7       on farms.  For tractors.  On-farm use.

         8                  SENATOR LANZA:    They don't use

         9       diesel fuel?  I'll take your word for it.

        10                  ACTING PRESIDENT MORAHAN:

        11       Senator, would you restate your question to

        12       the sponsor?

        13                  SENATOR AUBERTINE:    My question

        14       is this.  In light of the fact that diesel

        15       fuel that's used for agricultural purposes is

        16       untaxed -- now, the last diesel fuel that I

        17       bought on my farm recently was $3.86.  It's

        18       untaxed.  Now, the tax is 32 cents; correct?

        19       Well, if we add that, it's $4.18.  Okay?

        20                  The average price for fuel,

        21       according to all the numbers that I have, is

        22       $4.58.  Now, if you take the average price for

        23       fuel, subtract the fuel, the pure cost of fuel

        24       plus the tax, the $4.18, you've got 40 cents.

        25                  My question to you is this.  That



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         1       40 cents, nobody seems to know where it is.

         2       Would the gouging language in this legislation

         3       address that 40 cents?

         4                  SENATOR LANZA:    Mr. President,

         5       you know, I'm no expert when it comes to the

         6       differences between diesel and gasoline.  But

         7       I do know they're two different products.

         8       They're refined differently, they have

         9       different distribution networks, different

        10       delivery systems.  They're two different

        11       products.  The cost of manufacturing diesel is

        12       different from the cost of refining gasoline.

        13       So I'm not sure what the question is implying.

        14                  But I will say this.  I know when

        15       it comes to comparing gasoline to gasoline, if

        16       you increase the price of the tax, the price

        17       of the gas goes up.  If you reduce the price

        18       of the tax, the price of gas goes down.

        19                  And we know, if we're talking about

        20       agriculture and farming, we know the cost of

        21       getting those goods to market increases when

        22       the price of gasoline and fuel goes up,

        23       because trucks deliver those goods to market.

        24                  Which is why when we talk about and

        25       I hear concerns for the working families and



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         1       the poor, increased gas prices has a

         2       regressive effect.  That's exactly who it

         3       hurts the most.  It hurts the poor, first,

         4       most.

         5                  Folks who are wealthy, they don't

         6       even notice the fact that the price of bread

         7       has gone up.  They don't notice the fact that

         8       the price of agricultural goods have gone up.

         9       They don't even notice it.  It's the working

        10       families of this state, the poor of this

        11       state.

        12                  So if we're going to talk about

        13       farming and agriculture, if we can reduce the

        14       price of gasoline in this state, we can have

        15       an effect on the price of agricultural goods

        16       and farm goods and food that people depend on

        17       in this state.

        18                  SENATOR AUBERTINE:    Thank you.

        19       Mr. President, if the sponsor would continue

        20       to yield.

        21                  ACTING PRESIDENT MORAHAN:

        22       Senator Lanza, will you continue to yield?

        23                  SENATOR LANZA:    Yes.

        24                  ACTING PRESIDENT MORAHAN:    The

        25       Senator yields.



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         1                  SENATOR AUBERTINE:    Thank you,

         2       Senator.

         3                  Again, it's not the cost of the

         4       fuel necessarily that we're talking about, as

         5       far as the cost of producing it.  In this

         6       particular dialogue, that's really irrelevant.

         7                  What is relevant, though, is the

         8       32 cents in tax is -- it doesn't matter

         9       whether it's gasoline or diesel fuel.  It's

        10       still 32 cents.

        11                  But my question to you, sir, was

        12       this.  The pure cost of diesel fuel without

        13       the tax is $3.86.  That's the cost of fuel

        14       delivered to my farm, no tax.  The tax, if it

        15       were taxed, if you were to buy it at the pump,

        16       would be 32 cents.  If you add those together,

        17       it's $4.18.

        18                  But the average cost at the pump

        19       isn't $4.18.  It's not the pure cost of diesel

        20       and the tax.  The cost at the pump is $4.58.

        21       There's 40 cents overcharged there.

        22                  My question to you, sir, is this.

        23       Does your legislation -- will it address that

        24       40-cent differential?

        25                  SENATOR LANZA:    Mr. President,



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         1       through you, it's sort of a convoluted

         2       question.  You have to compare apples to

         3       apples, not apples to oranges.

         4                  The fact that there's a different

         5       system in place for farmers in this state is

         6       probably something my colleague would support.

         7       These are measures to decrease the cost of

         8       fuel for farmers because it's important to do

         9       so to our economy and to the people of this

        10       state that depend on the goods that farmers

        11       bring to market.

        12                  We're trying to do the same thing

        13       here.  There is an anti-gouging measure in

        14       this bill, a similar provision to what we have

        15       in place for the gas-tax cap that we presently

        16       have as law in this state.

        17                  Now, people are talking about not

        18       knowing how much of an effect this will have,

        19       not being sure.  I think it will be, cent for

        20       cent, penny for penny, 32 cents.

        21                  But I know one thing.  I know if we

        22       go home and we don't pass this, I know that

        23       the price of gasoline on Staten Island and

        24       across this state will not come down a single

        25       penny.  That I know.  That we can all rely on



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         1       and depend upon.

         2                  I know that if we do this, this is

         3       the quickest measure -- you know, I've heard

         4       the word "pandering."  Since when is it

         5       pandering to do the right thing by the people

         6       that send us here?  Since when is it pandering

         7       to deliver relief that people need?  Just

         8       because something is popular, just because

         9       people support something doesn't make it

        10       wrong.  Doesn't make it pandering.

        11                  In fact, usually I trust the people

        12       of this state and the people who send me here.

        13       I trust their wisdom.  I feel their pain.

        14       When they tell me they need this, I don't

        15       think it's pandering to give it to them, to

        16       deliver that relief.  I think it's doing the

        17       right thing.

        18                  And that's what this measure -- we

        19       could talk about all the things this doesn't

        20       do.  I want to talk about what it does do.

        21       And it delivers much-needed relief to the

        22       people of Staten Island and this state,

        23       especially to the people who need it the most.

        24                  SENATOR AUBERTINE:    Thank you,

        25       Senator.



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         1                  If the Senator would continue to

         2       yield for one more question.

         3                  ACTING PRESIDENT MORAHAN:

         4       Senator Lanza, will you continue to yield for

         5       one more question?

         6                  SENATOR LANZA:    Yes.

         7                  ACTING PRESIDENT MORAHAN:    The

         8       Senator yields for one more question.

         9                  SENATOR AUBERTINE:    Thank you,

        10       Senator.

        11                  As I'm sure you're aware, not every

        12       engine that runs on a farm is diesel.  There's

        13       a lot of gas engines on a lot of farms.  Now,

        14       when gasoline is delivered to a farm, it is

        15       taxed.  Okay?  But there is a mechanism in

        16       place that allows a farmer to recoup that tax.

        17       And there's a tax form, it's Form 4136, I

        18       believe it is, when you do your taxes.

        19                  Would it be something that you

        20       might consider, either in this bill or in

        21       another bill, the idea of opening that

        22       mechanism up to everyone so if you were to

        23       keep track of your sales tax on the fuel that

        24       you use, you can recoup it that way?  And that

        25       way, if you were to do it in this bill in



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         1       particular, you would have a mechanism in

         2       place that we could all access that would go

         3       directly to the consumer of fuel.

         4                  SENATOR LANZA:    Through you,

         5       Mr. President.  You know, I'm open to doing

         6       all we can to help the people of this state.

         7       What farmers have to do with respect to what

         8       you're talking about, some might consider

         9       cumbersome and burdensome and difficult.  And

        10       some have made the decision that farmers can

        11       handle that as businesses.

        12                  You know, when it comes to the

        13       people of this state, they have enough going

        14       on in their lives.  I want to deliver the

        15       relief in the most direct and simple way we

        16       can do it without adding additional burdens

        17       upon them.

        18                  I'm not saying it's a bad idea.

        19       It's something we can talk about.  But I think

        20       this is the right relief at the right time.

        21       Someone said it's a gimmick because it's only

        22       during the summer.  You know, just like I

        23       think someone said summer vacation for kids is

        24       a gimmick.  Talk to my kids.  It's not a

        25       gimmick.  They can't wait.  And the people of



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         1       this state can't wait either.

         2                  So I'm all for discussion and

         3       talking.  People can't wait.  We can't find

         4       ways to make this more difficult, to

         5       complicate this even more.  We've got to

         6       deliver results, relief now in a way that

         7       people will feel it and benefit from it.

         8                  But we can continue the dialogue.

         9       There are many good ideas I've heard and have

        10       been talked about.  Senator Krueger mentioned

        11       other things that we could do.  I never said

        12       this is the only thing we can do.  I said that

        13       this is the most direct thing we can do.  And

        14       there is lots we cannot do.

        15                  Of course we should continue the

        16       discussion about other measures to go even

        17       further.  But this I know will deliver relief

        18       now at the right time, and it's the right

        19       relief.

        20                  SENATOR LIBOUS:    Mr. President.

        21                  ACTING PRESIDENT MORAHAN:    Thank

        22       you.

        23                  Senator Libous, why do you rise?

        24                  SENATOR LIBOUS:    Would Senator

        25       Aubertine yield to a question?



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         1                  ACTING PRESIDENT MORAHAN:

         2       Senator Aubertine, will you yield?

         3                  SENATOR AUBERTINE:    Sure.

         4                  ACTING PRESIDENT MORAHAN:    The

         5       Senator yields.

         6                  SENATOR LIBOUS:    Thank you,

         7       Mr. President, through you.

         8                  Senator Aubertine, do you believe

         9       that Senator Lanza's bill will help farmers

        10       and their families?

        11                  SENATOR AUBERTINE:    I do.

        12                  SENATOR LIBOUS:    Thank you,

        13       Mr. President.

        14                  SENATOR AUBERTINE:    On the bill,

        15       Mr. President.

        16                  ACTING PRESIDENT MORAHAN:

        17       Senator Aubertine, on the bill.

        18                  Senator Adams, why do you rise?

        19                  SENATOR ADAMS:    Would Senator

        20       Aubertine yield for a question?

        21                  ACTING PRESIDENT MORAHAN:

        22       Senator, will you yield for a question?

        23                  SENATOR AUBERTINE:    Yes.

        24                  ACTING PRESIDENT MORAHAN:    The

        25       Senator yields.



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         1                  SENATOR ADAMS:    Because I think

         2       this is an important point that many of us

         3       have that's in support of Senator Lanza's

         4       bill.

         5                  And I need to understand that -- if

         6       I understand you correctly, then the price

         7       that farmers receive, is it with a tax or

         8       without a tax?

         9                  SENATOR AUBERTINE:    Without.

        10                  SENATOR ADAMS:    Without a tax.

        11                  SENATOR AUBERTINE:    Correct.

        12                  SENATOR ADAMS:    Would he yield

        13       for another question?

        14                  ACTING PRESIDENT MORAHAN:

        15       Senator, will you yield for another question?

        16                  SENATOR AUBERTINE:    Yes.

        17                  ACTING PRESIDENT MORAHAN:    The

        18       Senator yields.

        19                  SENATOR ADAMS:    Is that price

        20       that you receive without a tax, is it the same

        21       price that consumers are paying at the pump

        22       for diesel fuel?

        23                  SENATOR AUBERTINE:    No.

        24                  SENATOR ADAMS:    Is it --

        25                  ACTING PRESIDENT MORAHAN:



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         1       Senator, will you continue to yield?

         2                  The Senator yields.

         3                  SENATOR ADAMS:    Is it less or

         4       more?  I just need to understand that.

         5                  SENATOR AUBERTINE:    The delivered

         6       price for diesel fuel on the farm, as I

         7       indicated to Senator Lanza, is -- the latest

         8       price that I paid was $3.86.

         9                  That's for diesel fuel that's dyed.

        10       It's dyed red.  And the reason it's dyed is

        11       because you don't want to be caught driving

        12       down the Thruway or any other road in this

        13       state with undyed fuel.  It's dyed because

        14       it's untaxed.

        15                  And my question was this.  If the

        16       tax is 32 cents, if you add the 0.32 in that

        17       3.86 -- which I would consider the pure cost

        18       because it doesn't have tax on it -- you've

        19       got $4.18.  My question to Senator Lanza was,

        20       why is it $4.18 with the tax yet, if I were to

        21       go to a filling station and buy diesel fuel,

        22       on average in New York State I'm going to pay

        23       $4.58?

        24                  The 40-cent difference is not tax.

        25       It's not the cost of production.  It's pure



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         1       profit for somebody.

         2                  SENATOR ADAMS:    Thank you very

         3       much.  Thank you.

         4                  ACTING PRESIDENT MORAHAN:    Thank

         5       you, Senators.

         6                  SENATOR AUBERTINE:    On the bill,

         7       Mr. President.

         8                  ACTING PRESIDENT MORAHAN:    On the

         9       bill, Senator Aubertine.

        10                  SENATOR AUBERTINE:    I agree that

        11       this is certainly a bill that is worthy of

        12       moving forward.  I think that there's

        13       certainly a lot of room for improvement, but I

        14       do applaud my colleagues, or my colleague

        15       Senator Lanza, for bringing this forward and

        16       opening this dialogue.  It's certainly

        17       healthy.

        18                  And I do agree with him that all we

        19       can to for our families here in New York State

        20       and our businesses here in New York State to

        21       alleviate the high cost of fuel is something

        22       that we should be doing.

        23                  So with that, thank you,

        24       Mr. President.

        25                  ACTING PRESIDENT MORAHAN:    Thank



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         1       you, Senator.

         2                  Senator Savino.

         3                  SENATOR SAVINO:    Thank you,

         4       Mr. President.

         5                  This has actually been a pretty

         6       fascinating debate today.  You know, as

         7       state-elected representatives, we are all

         8       uniquely aware of our limitations.

         9       Unfortunately, our constituents are not aware

        10       of those limitations.  We can all share

        11       stories where people expect to us take care of

        12       potholes and street lights and graffiti and

        13       crime, the war in Iraq, and the price of gas.

        14                  It's been said that we cannot

        15       control the failures of the Bush

        16       administration, which we can't.  We cannot

        17       answer for the Bush administration's failure

        18       to do something about greater fuel efficiency.

        19       We can't do anything about the Bush

        20       administration's failure to deal with windfall

        21       profits of the oil companies or their failure

        22       to control the cost of oil.

        23                  We cannot do anything about the

        24       failure of the Democratically controlled House

        25       and the Senate to address this issue.  We



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         1       can't do anything about any of those things.

         2                  But this we can do something about.

         3       We can control the cost of gasoline tax.

         4                  It has been suggested that this is

         5       eighth-grade math or eighth-grade policy.

         6       It's been suggested that this will only result

         7       in a $50 savings.

         8                  Well, I do math a little bit

         9       differently, perhaps because I went to

        10       Catholic schools.  So I did a little

        11       back-of-the-envelope calculation, and I came

        12       up with some different numbers.

        13                  I drive a Saturn Vue.  I have a

        14       16-gallon tank.  Sixteen gallons times

        15       32 cents for one fill-up would save me $5.12 a

        16       fill-up.  I fill up my gas tank twice a week.

        17       That would save me $10.24 per week, with two

        18       fill-ups.  Or 15 weeks of that during our

        19       holiday would be $153.60.

        20                  Now, what would I do with that

        21       $153.60?  Well, perhaps I would take that

        22       money and I would pay two months of my KeySpan

        23       bill, which would help me deal with my home

        24       energy heating costs.  Or maybe I'd buy a pair

        25       of shoes.  Maybe I'd get my hair done, or I'd



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         1       get my nails done a few times.  Or whatever I

         2       would do.

         3                  But it would be my money, and I

         4       would be able to redistribute it wherever I

         5       wanted to.  So it would be a real savings for

         6       me.

         7                  I'm a single person; $153 I can

         8       spend on a pair of shoes.  But if I had a

         9       couple of kids, maybe that $153 would be the

        10       difference between paying for medication at

        11       this pharmacy.  Or maybe that $153 would be

        12       the difference between the vacation that we

        13       think is trivial, some of us think is trivial.

        14       But $153 is real money to real people.  I

        15       represent real people, as most of us do too.

        16                  It's been suggested that this won't

        17       work because it hasn't worked in the past.  We

        18       haven't been able to accomplish it.  Well, I

        19       reject that argument.  Just because it hasn't

        20       worked in the past or we haven't found a way

        21       to see to it that the money will go directly

        22       into the pockets of consumers doesn't mean we

        23       cannot find a way to do that.  We can find a

        24       way.  We have an obligation to do that.

        25                  And as we've had a great debate



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         1       here, we've come up with many ideas.  The idea

         2       of perhaps a tax rebate.  The idea of having

         3       stronger anti-gouging language in the

         4       legislation.  We can do that.

         5                  It's been suggested that we cannot

         6       afford it, we cannot afford the hit to our

         7       state budget.  Well, I will continue to

         8       maintain that we spend too much money as it

         9       is.  We just spent a month passing a state

        10       budget that everybody believes -- all the

        11       economists who are critical of this plan are

        12       critical of our state budget.  They've said

        13       we've spent too much money and we're going to

        14       have to come back and make some cuts.  And

        15       maybe we will.

        16                  And when we do that, we should find

        17       a way to provide $500 million in tax relief to

        18       people.  Whether it's 32 cents a shot or it's

        19       $153 over the summer, it's real money.  We can

        20       do it.

        21                  And I'm going to support this bill,

        22       and I want to commend my colleague from Staten

        23       Island, Senator Lanza.  He and I know just

        24       what this will do to our community.  Every day

        25       we watch the constituents that we represent



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         1       sit in their homes and calculate how much

         2       money they will save by going to New Jersey to

         3       fill up their gas tanks.  I fill up there.  We

         4       see what happens when they get there.  They

         5       calculate the cost of the tolls on the Hudson

         6       River crossings.  They know that when they get

         7       to New Jersey they will pay less for gas, for

         8       cigarettes, for liquor, for clothing, for

         9       beverages.  They pay less over there.  We are

        10       losing millions of dollars from New York City

        11       residents going to New Jersey because they

        12       have lower gas taxes, they have lower taxes on

        13       everything.

        14                  We can stop our constituents from

        15       stimulating the economy of New Jersey and put

        16       them back in New York.  I'm voting for this

        17       bill, and I urge everybody to do that.

        18                  ACTING PRESIDENT MORAHAN:    Thank

        19       you, Senator.

        20                  Any other Senator wish to be heard?

        21                  Senator Onorato.

        22                  SENATOR ONORATO:    Mr. President,

        23       will the sponsor yield to a question.

        24                  ACTING PRESIDENT MORAHAN:

        25       Senator Lanza, will you yield to a question?



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         1                  SENATOR LANZA:    Yes,

         2       Mr. President.

         3                  ACTING PRESIDENT MORAHAN:    The

         4       Senator yields.

         5                  SENATOR ONORATO:    Senator, you

         6       mentioned in your bill that you have a

         7       provision in there for anti-gouging.  Could

         8       you explain to me what brings about gouging?

         9       At what price?  What constitutes gouging?

        10                  SENATOR LANZA:    Well, for

        11       instance, if anyone did anything which would

        12       be contrary to the very specific provision in

        13       here which requires that the price at the pump

        14       be reduced commensurate with the reduction in

        15       the tax.  The same provision we have in place

        16       with respect to the gas-tax cap, which seems

        17       to have worked well.

        18                  SENATOR ONORATO:    Will he

        19       continue to yield, please.

        20                  ACTING PRESIDENT MORAHAN:

        21       Senator Lanza, will you continue to yield?

        22                  SENATOR LANZA:    Yes,

        23       Mr. President.

        24                  ACTING PRESIDENT MORAHAN:    The

        25       Senator continues to yield.



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         1                  SENATOR ONORATO:    Senator, would

         2       you explain it to me in eighth-grade math?

         3       What would I save in dollars and cents on the

         4       anti-gouging?  At what price would it be --

         5       how much would constitute gouging?  Ten cents

         6       a gallon, 5 cents a gallon, 20 cents a gallon?

         7       Or perhaps the 40 cents a gallon that Senator

         8       Aubertine has related that nobody can explain

         9       where it's going.

        10                  SENATOR LANZA:    Well, let me

        11       explain it.  You will save 32 cents a gallon.

        12       So will the people you represent, including

        13       the people I represent.  You can go to the

        14       bank on it.

        15                  All the evidence that you need is

        16       out there in surrounding states.  If you

        17       reduce the price -- if you lower the tax, you

        18       lower the price of gas.  If you raise the

        19       price of the tax, you raise the price of gas.

        20                  But if you have a concern or if any

        21       of us do, and if we see any evidence of

        22       gouging, then according to the anti-gouging

        23       statute, we'd refer it to the Attorney

        24       General.  And the Attorney General would

        25       launch an investigation to determine whether



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         1       or not there's gouging.  That's how it works.

         2                  SENATOR ONORATO:    I understand

         3       that, sir.  But again --

         4                  ACTING PRESIDENT MORAHAN:    Are

         5       you asking --

         6                  SENATOR ONORATO:    -- could you be

         7       more specific?

         8                  ACTING PRESIDENT MORAHAN:

         9       Senator, are you asking Senator Lanza to

        10       continue to yield?

        11                  SENATOR ONORATO:    Would he

        12       continue to yield.

        13                  ACTING PRESIDENT MORAHAN:

        14       Senator, will you continue to yield?

        15                  SENATOR LANZA:    Yes.

        16                  ACTING PRESIDENT MORAHAN:    The

        17       Senator yields.

        18                  SENATOR ONORATO:    Senator, I'm

        19       not trying to be a wise guy.  I really want to

        20       know, what would the actual cost of gouging be

        21       considered?  How much?  Ten cents a gallon, a

        22       nickel a gallon over and above the 32 cents

        23       that we're saving?

        24                  ACTING PRESIDENT MORAHAN:    Yeah,

        25       it's not a price.  It would be the



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         1       Commissioner of Tax and Finance that I believe

         2       would have jurisdiction over such an

         3       investigation.  The Attorney General could be

         4       brought in if we believe that there's gouging.

         5                  You know, if we don't eliminate the

         6       tax on gasoline, some unscrupulous retailer or

         7       company can decide to gouge right now.  They

         8       can decide to gouge today.  And so if you're

         9       suggesting that we don't have adequate

        10       provisions currently in the law to deal with

        11       that, then we ought to talk about that.

        12                  We do, though, have an anti-gouging

        13       statute.  And whether or not we reduce the

        14       gasoline tax, there's always the threat,

        15       there's always the concern that we all share

        16       that someone may decide to break the law and

        17       gouge.

        18                  Reducing the price of gasoline by

        19       32 cents will not create any incentive for

        20       anyone to gouge that does not exist today.

        21                  SENATOR ONORATO:    Okay.

        22                  ACTING PRESIDENT MORAHAN:    Thank

        23       you.

        24                  Senator Sampson.

        25                  SENATOR SAMPSON:    Mr. President,



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         1       would the sponsor yield for just a few

         2       questions?

         3                  ACTING PRESIDENT MORAHAN:

         4       Senator Lanza, will you yield?

         5                  SENATOR LANZA:    Yes,

         6       Mr. President.

         7                  ACTING PRESIDENT MORAHAN:    The

         8       Senator yields.

         9                  SENATOR SAMPSON:    Thank you very

        10       much.  Through you, Mr. President.

        11                  Senator Lanza, I want to --

        12                  ACTING PRESIDENT MORAHAN:    Excuse

        13       me.  Can we have some quiet in the chamber,

        14       please.  It's getting difficult for Senators

        15       who are engaged in the debate to hear each

        16       other.

        17                  SENATOR SAMPSON:    Through you,

        18       Mr. President.  Senator Lanza, I want to --

        19       first of all, I want to thank you very much

        20       for really bringing this issue to the floor.

        21       And, you know, reasonable minds can disagree

        22       with respect to this issue.

        23                  And one of the questions, you know,

        24       something I've always heard you say during

        25       this debate is we've got to do it now, we've



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         1       got to do it now, we've got to do it now,

         2       we've got to do it now.

         3                  My question to you -- through you,

         4       Mr. President -- is have you had any

         5       discussions with the Assembly with respect to

         6       this legislation?

         7                  SENATOR LANZA:    Mr. President,

         8       through you, I've talked to individual members

         9       of the Assembly.  Some support it strongly;

        10       others have questions.

        11                  So the answer is yes, I have

        12       discussed this with some members of the

        13       Assembly.

        14                  SENATOR SAMPSON:    Through you,

        15       Mr. President, if the sponsor would continue

        16       to yield.

        17                  ACTING PRESIDENT MORAHAN:

        18       Senator Lanza, will you continue to yield?

        19                  SENATOR LANZA:    Yes,

        20       Mr. President.

        21                  ACTING PRESIDENT MORAHAN:    The

        22       Senator continues to yield.

        23                  SENATOR SAMPSON:    Through you,

        24       Mr. President, have you had any discussions

        25       with any of the Governor's staff with respect



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         1       to this legislation?

         2                  SENATOR LANZA:    You know,

         3       Mr. President, I heard and read in the paper

         4       that Governor Paterson refused to not support

         5       this out of hand.  He had questions, and I

         6       think he said that he would look at it.  He

         7       talked about other things that could be done.

         8       But he did not reject this measure, according

         9       to what I read in the paper, out of hand.

        10                  SENATOR SAMPSON:    Through you,

        11       Mr. President, would the sponsor continue to

        12       yield?

        13                  ACTING PRESIDENT MORAHAN:

        14       Senator Lanza, will you continue to yield?

        15                  SENATOR LANZA:    Yes.

        16                  ACTING PRESIDENT MORAHAN:    The

        17       Senator yields, Senator.

        18                  SENATOR SAMPSON:    Through you,

        19       Mr. President.  Senator Lanza, so would this

        20       legislation happen, or it's not going to

        21       happen, in your opinion?

        22                  SENATOR LANZA:    Mr. President, I

        23       am so hopeful, I am so hopeful.  And I am

        24       confident that the members of the Assembly and

        25       the Governor know what we know, that people



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         1       are hurting, that the price of gasoline is too

         2       high in this state, that the price at the pump

         3       goes beyond, that it's affecting the price of

         4       milk and bread and eggs.  So I'm hopeful.

         5                  I know that I have a

         6       responsibility, as the Senator representing

         7       the 24th District of Staten Island, to do what

         8       I think is necessary and responsible and is

         9       consistent with the best interests of the

        10       people I represent, both back home and across

        11       this state.  And that is my job and my

        12       responsibility.

        13                  And so I believe in this

        14       legislation, because I believe it will deliver

        15       relief, much-needed relief.  And I'm hopeful

        16       that the Assembly gets that and that the

        17       Governor gets that.

        18                  But I'll tell you, I won't let

        19       someone's disagreement with that proposal stop

        20       me from doing what I think is right.  I

        21       believe this is right, and it's my

        22       responsibility to do what I think is right and

        23       then take the next step, to convince, if

        24       there's agreement across the hall, to do all I

        25       can to convince the members of the Assembly



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         1       that they need to act as well.  And then I'll

         2       speak to the Governor or anyone else that I

         3       can to make sure that this becomes a reality.

         4                  SENATOR SAMPSON:    Through you,

         5       Mr. President.  On the bill.

         6                  ACTING PRESIDENT MORAHAN:

         7       Senator Sampson, on the bill.

         8                  SENATOR SAMPSON:    Senator Lanza,

         9       I hear your passion, I understand your

        10       passion, and I'm with you.

        11                  When I go home to my district, you

        12       know what my constituents are going to tell

        13       me?  They're going to say "Show me the money.

        14       Show me the savings."

        15                  You know, I'm going to say:  "Well,

        16       you know, I'm hopeful it's going to happen."

        17       You know what they're going to tell me?

        18       They're going to say, "Senator, I agree with

        19       you a hundred percent.  But you know, a

        20       promise is a comfort to a fool, and we as

        21       constituents, we are no fools."

        22                  The bottom line here is this.  And

        23       I can understand where you're coming from.  I

        24       want to give savings to my constituency.  But

        25       if we're talking about being responsible, you



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         1       know, we have no fiscal impact study as to --

         2       you talk about $600 million coming from the

         3       General Fund.  Where is that money coming

         4       from?  You know what?  We don't know where

         5       it's coming from.

         6                  And at the end of the day, we give

         7       them this little holiday, what is going to

         8       prevent these retailers the day after this

         9       holiday of hiking up the gas price again?

        10                  And as Senator Connor was saying,

        11       this is more of a comprehensive issue.  You

        12       know, as Senator Winner talked about Senator

        13       Hillary Clinton -- I don't support Hillary

        14       Clinton.  I support Barack Obama.  And he says

        15       this is a gimmick.  And we're not about

        16       gimmicks, we're about substance.  And I know

        17       you are a person who is about substance.

        18                  And that's why when Senator

        19       Hassell-Thompson said, you know, pull this

        20       bill so we can have this discussion -- because

        21       the reason I asked you those questions is my

        22       constituents are going to say:  "I want to see

        23       immediate relief.  I don't want to have to go

        24       through an entire process."  This process

        25       should have been dealt with before we got to



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         1       this point.

         2                  You know, this is not about photo

         3       ops, this is not about, you know, literature

         4       going to our communities saying we support the

         5       gas tax.  Because at the end of the day, when

         6       we can't deliver for our constituents, they're

         7       going to look at me again and say, "Sampson,

         8       as I told you before, a promise is a comfort

         9       to a fool, and we are no fools."

        10                  So I want to commend you on this

        11       legislation, but I can't support it, not being

        12       responsible.  Because it's all about being

        13       fiscally responsible.  Because you can save a

        14       couple of dollars -- now, you talk about

        15       New Jersey all the time.  New Jersey with the

        16       taxes and the gasoline tax.  But you know

        17       something also about New Jersey?  The

        18       residents of New Jersey pay the highest -- one

        19       of the highest property taxes in this country.

        20       And I ask myself why is that.

        21                  But I want to commend you, and

        22       you're right.  Hopefully this is open for

        23       discussions, we can deal with this issue.

        24       Because you know what?  This is an excellent

        25       idea.  And my people do need, do need some



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         1       relief.  But they're going to say "Show me the

         2       money."

         3                  Thank you.  And I vote no.

         4                  ACTING PRESIDENT MORAHAN:    Thank

         5       you, Senator.

         6                  Any other Senator wish to be heard?

         7                  Please ring the bells.  The debate

         8       is closed.

         9                  Let me tactfully remind the

        10       Senators that there's a two-minute limit on

        11       explaining your vote.  And the presiding

        12       officer will do his best to keep that in mind

        13       and to enforce that rule today.

        14                  The Secretary will read the last

        15       section.

        16                  THE SECRETARY:    Section 9.  This

        17       act shall take effect immediately.

        18                  ACTING PRESIDENT MORAHAN:    Call

        19       the roll.

        20                  (The Secretary called the roll.)

        21                  ACTING PRESIDENT MORAHAN:

        22       Senator Little, to explain her vote.

        23                  SENATOR LITTLE:    Thank you,

        24       Mr. President.

        25                  One of the comments that I have



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         1       heard from people who are speaking in

         2       opposition to the bill is that this is a

         3       one-house bill.  Well, I would daresay that

         4       this is not the first time that a one-house

         5       Senate bill has become law and has helped the

         6       people in our state.

         7                  The people in my district are

         8       hurting in every phase of their life, and they

         9       want to know what I can do about the price of

        10       gas.  Well, there's a number of things that I

        11       can't do.  I can't change the change the value

        12       of the dollar, the price of oil per barrel,

        13       the oil futures.  I can't do anything of any

        14       of that.  I can encourage Congress to take

        15       some action.

        16                  But what can I do?  I can reduce

        17       this state tax on gasoline.  It will not only

        18       help the people in my district, it will

        19       attract tourists to New York State who will

        20       spend more money so that we have more jobs,

        21       more income, more sales tax, more of

        22       everything.  It will help us get through the

        23       summer.

        24                  I applaud Senator Lanza for this

        25       bill.  I vote aye.  Thank you.



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         1                  ACTING PRESIDENT MORAHAN:    Thank

         2       you, Senator.  Senator Little, you will be

         3       recorded in the affirmative.

         4                  Senator Griffo.

         5                  SENATOR GRIFFO:    Thank you,

         6       Mr. President.  To explain my vote.

         7                  I also live in a district where the

         8       use of a vehicle is essential for one's

         9       livelihood and to conduct all aspects of one's

        10       life.

        11                  And we hear a lot of people talk

        12       about "One New York."  And I would hope that

        13       if that's more than rhetoric and that's

        14       genuine, that we would really hear what people

        15       are saying and that we would listen to that

        16       and respond.

        17                  And this bill that Senator Lanza is

        18       proposing gives us that opportunity to provide

        19       that immediate relief.

        20                  And yes, this is a federal problem.

        21       And we should be holding all the presidential

        22       candidates accountable to ensure that this is

        23       a major issue, to discuss the long-term

        24       answers to these problems that we're having

        25       with energy.



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         1                  We have a Senate proclamation to

         2       the Congress telling them to follow suit and

         3       encouraging them to act, as we are right now,

         4       to deal with this problem immediately but also

         5       long-term.

         6                  The Governor has empaneled an

         7       energy panel here.  We need to work with him

         8       to ensure we have a comprehensive energy

         9       policy in this state.

        10                  But this bill today allows us to

        11       provide immediate relief to the people that we

        12       represent, to show them that we hear them,

        13       that we care, and that we can and will do

        14       something.

        15                  I vote aye.

        16                  ACTING PRESIDENT MORAHAN:    Thank

        17       you, Senator Griffo.  You will be recorded in

        18       the affirmative.

        19                  Senator Volker, to explain his

        20       vote.

        21                  SENATOR VOLKER:    Very quickly, to

        22       explain my vote.

        23                  I just want to say it was

        24       interesting -- and look, this is no knock.

        25       This is the world we live in.  I was looking



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         1       over to see how many of the no votes were from

         2       New York City.  And I realized the first three

         3       speakers against the gas tax were from

         4       Manhattan and were lecturing us on fuel use.

         5                  Well, we all know that New York

         6       City is a whole different situation than

         7       upstate New York, where this is not a matter

         8       of putting money in people's pockets, this is

         9       a matter in some cases of survival.

        10                  I think we should realize two

        11       things.  Marty, you said that George Bush was

        12       at fault.  Well, I think Ralph Nader is at

        13       fault, and I can give a good explanation of

        14       exactly why.

        15                  But so what are we going to do?

        16       Are we going to sit here and do nothing

        17       because somebody else is at fault?  We don't

        18       have enough refineries, we don't have enough

        19       of that stuff?

        20                  The only chance we in this state

        21       truly have to deal with this issue -- you can

        22       talk about gouging, all that stuff.  Which is

        23       nonsense, because we can't do anything about

        24       it.  The only chance is to get rid of our tax.

        25                  And I will tell you something that



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         1       some friends of mine have said, and I think

         2       they're right.  If this state gets rid of our

         3       taxes, New Jersey will, Pennsylvania will, all

         4       of them will, because they'll be forced to do

         5       it.  And you know what then will happen?  The

         6       McCain-Clinton bill will probably pass in

         7       Washington, and we could have as much as

         8       64 cents off a gallon of gas.  And no oil

         9       companies, nobody, can fill that in.

        10                  The New York Times story was

        11       clearly the usual New York Times story; they

        12       don't know anything about what they're talking

        13       about.

        14                  I vote aye.

        15                  ACTING PRESIDENT MORAHAN:    Thank

        16       you, Senator.  You will be recorded in the

        17       affirmative.

        18                  Senator Marcellino, to explain his

        19       vote.

        20                  SENATOR MARCELLINO:    Thank you,

        21       Mr. President.

        22                  I'd like to thank my colleague

        23       Senator Lanza for bringing this bill forward.

        24       It's an important issue.  It's designed to

        25       give a break to our constituents who require



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         1       the use of their cars because they have no

         2       other choice.

         3                  I live on an island which happens

         4       to be very long.  The price of gas at one end

         5       of that island, the western end, is about

         6       $3.80.  If you go out to the eastern end, you

         7       go to Montauk Point, it's a dollar more,

         8       $4.80.  That's what you're dealing with.  The

         9       price is different out there.

        10                  The merchants out there, the

        11       trucking businesses out there, they live for

        12       the tourists.  They live for people to take

        13       those day trips out to the east end of the

        14       island.  If gas is up over $4.00 and over

        15       $4.50, those people will not go that far.

        16       They will not travel the hundred miles one way

        17       to get to Montauk and go those to businesses

        18       and participate in the economy of the eastern

        19       end of this island.

        20                  Those people will suffer -- the

        21       farmstands, the farmers, the wineries.  You

        22       name it, they will suffer.  The economy of

        23       Long Island will suffer, and the economy of

        24       this state will suffer.

        25                  We must do something now.  I agree



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         1       with my colleagues who said we should be doing

         2       something with home heating fuel.  I am.  We

         3       have in the works right now what I call the

         4       Home Heating Relief Act, which would give a

         5       tax deduction of up to a thousand dollars off

         6       your fuel, based on your fuel costs for the

         7       two highest home heating months of the year.

         8                  That's in bill drafting now and

         9       will be out shortly.  And we'll introduce that

        10       bill, and hopefully all my colleagues who

        11       expressed concern about what are we going to

        12       do for home heating will be on that bill and

        13       be in support of that bill, because I believe

        14       it will do an awful lot to relieve the burden

        15       for our consumers.

        16                  Summer is followed by winter, we

        17       all know that.  So we've got to take

        18       consideration of what's coming up immediately,

        19       the summer months, which we need to take care

        20       of.  And we need to give our people a break.

        21       And we need to go into the home heating

        22       season, which also will be addressed.

        23                  This bill is not a panacea, but

        24       it's a great first step.  And I vote aye,

        25       Mr. President, and I ask everyone in this



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         1       chamber to vote aye as well.

         2                  ACTING PRESIDENT MORAHAN:    Thank

         3       you, Senator.  You just about nosed out the

         4       two-minute limit.  You will be recorded in the

         5       affirmative.

         6                  Senator Fuschillo.

         7                  SENATOR FUSCHILLO:    Mr.

         8       President, thank you very much.

         9                  And just briefly, yesterday the

        10       Governor appropriated $17 million to the "I

        11       Love New York" campaign.  And he did that to

        12       promote tourism within New York State and

        13       throughout this country to come here to

        14       New York State.  And today we've got a

        15       Republican Senator from Staten Island who

        16       wants to reduce taxes.  It's a no-brainer.

        17                  You can make every excuse you want

        18       in the world.  You can blame Bush -- I agree

        19       with you.  You can blame Cheney.  Senator

        20       Connor, I agree with you.  Senator Savino

        21       appropriately said the Democratic-controlled

        22       Senate and Congress in the United States

        23       government has done nothing.  Washington, we

        24       know, doesn't have the courage to adopt a

        25       comprehensive energy policy.



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         1                  In the absence of that, if we can

         2       do anything here in New York State to ease the

         3       pain at the pump, we should do it.  Senator

         4       Lanza's bill does that.

         5                  Senator Savino said she's going to

         6       save about 150 bucks this summer.  What about

         7       the trucker that goes to the pump and fills up

         8       that truck, that 18-wheeler, that has a 200-,

         9       300-, 400-gallon tank?  What about the couple

        10       of hundred bucks they're going to save?  And

        11       where does the savings go?  It comes down to

        12       the consumer.

        13                  You know, I get Poland Spring

        14       delivered to my house.  All of a sudden I have

        15       a two-dollar surcharge on there.  I called up

        16       the company:  "Why a two-dollar surcharge?"

        17       "I'm paying more at the pump," so it costs the

        18       consumers more.

        19                  Well, if that trucker is going to

        20       save a couple of hundred bucks every time he

        21       or she fills up -- and maybe it's $3,000 or

        22       $4,000 during this period of time of

        23       suspension -- then that money gets passed down

        24       to the consumer.  Maybe bread will be cheaper.

        25       Maybe milk will be cheaper.  Maybe the goods



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         1       and services that we buy every single day as

         2       consumers will be cheaper.  It's a no-brainer.

         3                  Senator Lanza, the people from

         4       Staten Island I know are calling you every

         5       single day, the same as my district in Nassau

         6       and Suffolk County.  They want relief at the

         7       pump.  This is something they do every three,

         8       four days.  They go there, they take the 50,

         9       60 bucks of cash out of their pocket, or

        10       charge.  They need relief now.  If we can do

        11       something, let's do it.

        12                  I vote aye.

        13                  ACTING PRESIDENT MORAHAN:    Thank

        14       you, Senator Fuschillo.  You will be recorded

        15       in the affirmative.

        16                  Senator DeFrancisco, to explain his

        17       vote.

        18                  SENATOR DeFRANCISCO:    Yes, I'm

        19       going to vote aye on this legislation.  And

        20       there's been a long, long debate on issues

        21       that may have some interest to the

        22       intellectual who wants to debate theory.

        23                  And some of those issues concern

        24       the environment, concerning whether this is

        25       going to have any long-term effect.  It's



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         1       probably not going to solve the energy crisis.

         2       I can guarantee it won't solve it; we need a

         3       national policy to do that.

         4                  But does that mean we sit here and

         5       let our constituents suffer day after day when

         6       they go to the pump?  I don't think that

         7       follows at all.  We have the authority to do a

         8       change.  And this is actually deja vu all over

         9       again.  We had the same debate when there was

        10       a concern over whether we should put a cap on

        11       the cost of taxes of gasoline over $2.  Well,

        12       we did it.

        13                  Oil kept going up.  We can't

        14       resolve that.  We're not the national

        15       government.  We can't resolve that.  But we

        16       did save a substantial amount of money already

        17       to the consumer.  We're just completing the

        18       loop and trying to save them more.

        19                  The part that really amuses me is

        20       the alternatives we could do with this

        21       $600 million that we're going to be deprived

        22       from the treasury.  We can have a -- send back

        23       a rebate check, we can do this, we can do

        24       that.  To me those are more excuses why not to

        25       do this relief for the taxpayer, and they



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         1       really don't ring true.

         2                  Secondly, that doesn't account for

         3       the truckers and the businesses.  Whether we

         4       stimulate the economy or not, we're going to

         5       lose some of this business if we keep not

         6       doing whatever we can do from the state level.

         7                  Lastly, there was a question raised

         8       about where are we going to cut to make the

         9       difference of the $600 million or whatever the

        10       number may be.  Well, somehow we survived the

        11       cap on gasoline, the loss of revenues there.

        12       We survived there.  We still increased our

        13       spending this year.

        14                  And quite frankly, in my mind,

        15       $600 million that is in the taxpayers' pockets

        16       is much safer than $600 million left with the

        17       government to find a way to spend.

        18                  So I vote aye for this.  It may not

        19       be a long-term solution, but it's certainly

        20       relief for businesses and for our taxpayers in

        21       our communities.

        22                  Thank you.  I vote aye.

        23                  ACTING PRESIDENT MORAHAN:    Thank

        24       you, Senator.  You will be recorded in the

        25       affirmative.



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         1                  Senator Sta -- Stav -- Sta --

         2                  SENATOR STACHOWSKI:    Stachowski.

         3       Stavisky's over there; I'm Stachowski.

         4                  That's all right, Tom, it's been a

         5       long afternoon.

         6                  Mr. President, I too rise to

         7       support this measure.  The people in my

         8       district will appreciate any kind of help they

         9       can get with their payments at the pump.

        10                  And the only problems I have, and I

        11       do have to mention them, is I'm concerned

        12       about making sure that they do get the money,

        13       because somehow it has a way of drifting into

        14       other people's pockets.  I worry about that.

        15       But hopefully I'm counting on Senator Lanza to

        16       make sure that my constituents get this entire

        17       amount of money off every gallon.

        18                  And secondly, I think you ought to

        19       take a look at the gouging provision that you

        20       keep referring to.  I don't think it's quite

        21       as strong as you refer to it in the

        22       information I received getting ready for this

        23       bill.

        24                  It seems to be a flawed gouging

        25       provision, and you might want to look into



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         1       strengthening that, because that could prove

         2       to be a problem if we do in fact find people

         3       gouging.  And it is right now only civil, and

         4       you might want to extend it beyond that also,

         5       being that the cost of gas is having such an

         6       impact on everybody's life.

         7                  So with that, I rise to support

         8       this issue.  I'm voting yes.  And hopefully

         9       the people in my district will see the amount

        10       of money that they're supposed to see in

        11       savings.

        12                  Thank you.

        13                  ACTING PRESIDENT MORAHAN:    Thank

        14       you, Senator.  You will be recorded in the

        15       affirmative.

        16                  Senator Adams, to explain his vote.

        17                  SENATOR ADAMS:    First, thank you,

        18       Mr. President.

        19                  I want to commend my colleagues for

        20       spending two and a half hours debating this

        21       issue, because it needs to be debated.  And

        22       this is an important issue.  You know, people

        23       are hurting.  People are hurting.  And if we

        24       just walked in here and voted without having a

        25       discussion, I think we would be insulting the



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         1       people who sent us here.

         2                  So we should debate.  And I don't

         3       think that any side of the aisle, no matter

         4       what the position one may take, is stating

         5       that we don't want to deal with the issue

         6       that's impacting our constituents.

         7                  I'm going to vote for this bill,

         8       because, you know, folks need some type of

         9       relief.  I'm concerned, as my colleagues

        10       stated, that making sure the money goes to the

        11       actual consumer.

        12                  And I'm going to ask the sponsor of

        13       the bill to join me this weekend as we go

        14       through the community and test some of these

        15       gas stations to make sure our consumers are

        16       getting what they paid for and to identify

        17       some location where gouging is taking place.

        18                  I think there's no greater

        19       statement we can make on both sides of the

        20       aisle.  There's some issues that are not

        21       Republican-driven or Democrat-driven, they're

        22       the-residents-of-this-state-driven.  And by

        23       you and I joining together doing that, we will

        24       send a strong message as state legislators,

        25       enough is enough.  We've got to alleviate the



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         1       price that individuals are paying.

         2                  I'm going to vote aye.

         3                  ACTING PRESIDENT MORAHAN:    Thank

         4       you, Senator.  You will be recorded in the

         5       affirmative.

         6                  Senator Connor, to explain his

         7       vote.

         8                  SENATOR CONNOR:    Thank you,

         9       Mr. President.

        10                  First, I want to say I agree with

        11       Senator Volker when he said I blamed Bush and

        12       Cheney but he thinks it's really Ralph Nader's

        13       fault.  I agree.  If Nader hadn't run in 2000,

        14       we wouldn't have had Bush and Cheney.  I agree

        15       with Senator Volker.

        16                  (Laughter.)

        17                  SENATOR CONNOR:    Two points.  If

        18       we really want to help all the constituents,

        19       all the people in New York, then instead of

        20       lowering this tax 32 cents for one quarter of

        21       the year, why don't we lower the tax 8 cents

        22       for the whole year?

        23                  So that people who vacation by

        24       taking a fall foliage tour in the Adirondacks,

        25       or go on a winter vacation by going to one of



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         1       our wonderful ski resorts, get the same

         2       benefit as people who vacation in the summer.

         3       And everybody gets an equal benefit when they

         4       go to work, whether they work in the summer,

         5       fall, whatever.

         6                  If you want to blow $500 or

         7       $600 million out of the budget to do this --

         8       and I think it's a good idea to give relief --

         9       lower the tax 8 cents 12 months of the year.

        10       Same dollars, people benefit.  Because

        11       politically, my colleagues, people think "what

        12       have you done for me later."

        13                  Do you really want to be there the

        14       day after Labor Day when your campaigns are

        15       heating up and your constituents say, "Oh, my

        16       God, it went up 32 cents.  Why's that?"  And

        17       the guy at the gas station says:  "Oh, the

        18       Legislature."

        19                  Your price of gas went up 32 cents

        20       two months before your election.  Brilliant

        21       politics, Mr. President.

        22                  I vote no.

        23                  ACTING PRESIDENT MORAHAN:    Thank

        24       you, Senator Connor.  You will be recorded in

        25       the negative.



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         1                  Senator Larkin, to explain his

         2       vote.

         3                  SENATOR LARKIN:    Thank you,

         4       Mr. President.

         5                  You know, I've sat here today and

         6       I've listened to everything from conception to

         7       delivery, for the most part.  But my

         8       bitterness and gripe here is rather than think

         9       about what we should be doing -- I hear people

        10       say, What are we going to do about corruption?

        11       What are we going to do about this?  What are

        12       we going to do about it?

        13                  Well, I'll tell you what we're

        14       going to do.  Maybe get off your phones

        15       sometime and go visit somebody.

        16                  Our former attorney general, our

        17       former governor, I gave him 14 cases of what

        18       was happening a couple of years ago when he

        19       was in the AG's office and it took him nine

        20       months to get back to me to say:  "Oh, we're

        21       settling with them."  "What about it?"  "Oh,

        22       but I can't tell you."

        23                  Oh, you can't?  So I can't tell

        24       my -- so when you started to say how are we

        25       going to see that they're not gouging or doing



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         1       this here, what about the Consumer Affairs

         2       Department?  What about the Attorney General?

         3       We have Consumer Affairs in every one of our

         4       counties.  Why don't we start a little

         5       campaign of working together?

         6                  You know, it's easy to stand here

         7       and listen to all this nuts.  I heard the

         8       Senator from Manhattan -- no, not you.

         9                  (Laughter.)

        10                  SENATOR LARKIN:    I heard you too.

        11                  Schneiderman.  Senator

        12       Schneiderman's comment was it was Pataki's and

        13       Bruno's problem.

        14                  The last time I knew, the Speaker's

        15       name was Silver.  The last time I knew, it

        16       took that house, this house, and the guy on

        17       the second floor to make it happen.

        18                  So let's not make excuses.  When

        19       you want to start making all these excuses,

        20       remember '06?  "Elect us to Congress and

        21       you'll see something."  Do you know, as of

        22       today, there's been more bills passed in the

        23       Iraqi legislature than there has in the House

        24       and the Senate of the United States.  So when

        25       we talk about doing something, look at that.



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         1                  Here's the problem.  They've done

         2       nothing, we've done nothing.  Someone says

         3       about the workers -- let's talk about people,

         4       as Marcellino said, everybody -- this is this

         5       isn't just about somebody going on a vacation.

         6       Going on a vacation?  Somebody needs to eat.

         7                  My good friend John Sabini comes up

         8       in my area and spends his money at my tracks

         9       and then goes and has a good meal.

        10                  Let's stop fooling ourselves.

        11       There's something here called a chapter

        12       amendment.  You think you got something good?

        13       You bring it to Lanza.  I think Lanza did a

        14       super, super job today.

        15                  And you're to be commended, because

        16       you didn't fall down when people tried to

        17       knock you down.  You stood up and spoke for

        18       the people of the State of New York.  I thank

        19       you.

        20                  And I vote yes.

        21                  ACTING PRESIDENT MORAHAN:    Thank

        22       you, Senator Larkin.  You will be recorded in

        23       the affirmative.

        24                  And if you have any other tidbits

        25       about people's personal actions, you can let



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         1       us know about those.

         2                  (Laughter.)

         3                  ACTING PRESIDENT MORAHAN:

         4       Senator Craig Johnson, to explain his vote.

         5                  SENATOR CRAIG JOHNSON:    Thank you

         6       very much, Mr. President.  I will be voting in

         7       the affirmative.

         8                  I have to say I find it very

         9       interesting that my friend Senator Volker, who

        10       used to sit next to me, referred to the

        11       McCain-Clinton bill in Washington.  I think

        12       given the way Washington is being run these

        13       days, maybe it should be referred to as the

        14       Clinton-McCain bill.

        15                  But I think whichever way you talk

        16       about it, the important thing is it

        17       demonstrates a bipartisan commitment by those

        18       two senators to reduce the price of gas.

        19                  And I think today what has become

        20       apparent in this debate is you have that same

        21       bipartisan commitment by the New York State

        22       Senate.  And maybe if Senator Lanza wants to

        23       open up his bill to sponsorship from this side

        24       of the aisle, it would be another example of a

        25       bipartisan spirit in showing a commitment to



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         1       reduce the price of gas for our consumers.

         2                  But I will say, in hearing a

         3       terrific debate and explanation of votes from

         4       my colleagues on both sides of the aisle, in

         5       talking about tourism and farming and talking

         6       about, you know, the working class, I think

         7       one thing that we need to remember about who

         8       this bill is going to help are our young

         9       people, our teenagers and our college students

        10       who this summer are going to be driving to

        11       jobs.

        12                  Who need these jobs to pay for

        13       skyrocketing tuition costs, for skyrocketing

        14       board costs at schools, and who need this

        15       money for other types of expenses.  And

        16       instead, what they're going to be facing if we

        17       don't take this action is simply taking the

        18       money from their employer and giving it to the

        19       gas station pump.

        20                  And this legislation will help

        21       relieve that so that they can keep that money

        22       that they've worked so hard for and keep it in

        23       their pocket.

        24                  Obviously, in the discussion,

        25       members of my side of the aisle have pointed



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         1       out some important flaws that have to be

         2       addressed going forward.  But clearly we can't

         3       stop the progress of this bill to help our

         4       constituents.  But clearly a rebate program --

         5                  ACTING PRESIDENT MORAHAN:    I have

         6       to interrupt you, Senator.  You are on the

         7       two-minute line.

         8                  SENATOR CRAIG JOHNSON:    Oh, wow.

         9       That's interesting, I thought -- well, that

        10       being said, I will certainly sit down now and

        11       say I do vote in favor of the bill.

        12                  Thank you very much.

        13                  ACTING PRESIDENT MORAHAN:    Thank

        14       you, Senator.  You will be recorded in the

        15       affirmative.

        16                  Senator Duane.

        17                  SENATOR DUANE:    Thank you,

        18       Mr. President.

        19                  I actually was going to say

        20       something for Senator Larkin's benefit, but he

        21       stepped out to make a phone call.

        22                  (Laughter.)

        23                  SENATOR DUANE:    Seriously.  That

        24       was for his benefit.

        25                  I want to thank Senator Lanza for



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         1       making sure that we all got the study.  Thank

         2       you very much.  And because we're a chatty

         3       crowd, I actually got to review it.

         4                  And, you know, I was here for

         5       virtually all the debate, and I really did

         6       listen to what people were saying.  And I've

         7       been conflicted about this, and I've changed

         8       my vote a couple of times, both before the

         9       debate and even during the debate.

        10                  You know, people are hurting in

        11       New York State.  And I know the importance of

        12       tourism in New York State, and I also know

        13       that in many places it's easy to buy gas in

        14       New Jersey and Pennsylvania.  These are very

        15       compelling arguments.  And also the price for

        16       trucks.

        17                  But, you know, I would prefer we

        18       had more rail freight.  I even wish we used

        19       more barges, and maybe this will push us in

        20       that direction.

        21                  And I'm willing to be wrong in my

        22       vote on this.  But I think that we still have

        23       time to do something for the summer, maybe

        24       into the future.  I think we can do it into

        25       bipartisan way.  So -- and I'm going to run



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         1       out of time.  But I'm going to vote no on

         2       this.

         3                  But I was very compelled by what a

         4       number of Senators on both sides of the aisle

         5       said.  And I'm hopeful that we'll have a

         6       bipartisan, both-house bill that we can be

         7       proud of and that the Governor will sign.

         8       Because, you know, I mean we're New Yorkers,

         9       and we're the best, and we'll figure it out.

        10                  But I'm going to vote no on this,

        11       Mr. President.  Thank you.

        12                  ACTING PRESIDENT MORAHAN:    Thank

        13       you, Senator.  You will be recorded in the

        14       negative.

        15                  Senator Seward.

        16                  SENATOR SEWARD:    Thank you,

        17       Mr. President.

        18                  I rise in support of this

        19       legislation.  There is no question that the

        20       high price of gasoline and diesel fuel is

        21       killing families, businesses, and is having a

        22       very negative impact on our state's economy.

        23                  And this is a problem that's much

        24       larger than New York State.  It's a national

        25       and indeed an international problem and



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         1       phenomenon of what we're seeing in terms of

         2       these high prices.

         3                  And we in New York State, when it

         4       comes to the price of petroleum products, we

         5       are looking at a situation where so much of

         6       this is beyond our control.  We cannot do

         7       anything about worldwide consumption and some

         8       of these emerging economies, like in China and

         9       India.  We can't do anything about how much

        10       oil is produced by the OPEC nations.  We

        11       cannot do much other than talk about the lack

        12       of federal government action on this issue.

        13                  But there's one thing we can

        14       control in New York, and that is the tax on

        15       gasoline and diesel fuel.  And that is what

        16       this legislation is all about, taking some

        17       action in an arena that we can control.

        18                  This legislation provides

        19       admittedly short-term relief.  It's a Band-Aid

        20       on a larger problem.  But it is relief,

        21       meaningful relief for working families,

        22       businesses, truckers, all those that need to

        23       travel throughout this state.

        24                  And coming from an area that

        25       depends very heavily on tourism for our



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         1       economy, this legislation will be a big boost

         2       for our local economy, as it will help people

         3       to afford to visit Central New York and

         4       throughout our state.

         5                  Some people talk about the loss of

         6       revenue under this legislation.  I say if we

         7       don't move forward with this type of

         8       legislation, we're really going to see losses

         9       of revenue --

        10                  ACTING PRESIDENT MORAHAN:    Thank

        11       you, Senator.  Thank you very much.

        12                  (Laughter.)

        13                  SENATOR SEWARD:    Thank you.

        14                  You get my point, Mr. President.  I

        15       vote yes.

        16                  ACTING PRESIDENT MORAHAN:    I

        17       certainly do.  You got my point too.

        18                  (Laughter.)

        19                  ACTING PRESIDENT MORAHAN:

        20       Senator Maltese.

        21                  SENATOR MALTESE:    Mr. President,

        22       I first of all want to commend my good

        23       colleague Senator Stachowski, because he comes

        24       up with a commonsense approach.  If this bill

        25       is going to reduce the taxes on one of my



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         1       constituents who wants to fill up with a tank

         2       of gasoline, then I'm for it.

         3                  I commend Senator Adams, who says

         4       this is not a Republican or a Democrat bill,

         5       it is a commonsense bill and it is a bill that

         6       can be supported.

         7                  On the other hand, I take issue

         8       with a colleague who says -- who lectures us

         9       for 15 minutes on everything that's wrong with

        10       the bill and then says "On the other hand, I'm

        11       voting for it."

        12                  I at least could admire a good

        13       colleague who's not here in the chamber who

        14       tells us everything that's wrong with it and

        15       then says that he's going to vote against it.

        16       On the other hand, he seems very, very

        17       conversant and knowledgeable about every gas

        18       station in New Jersey as he fills up his tank,

        19       rather than here in New York.

        20                  Mr. President, when I'm asked by a

        21       constituent "How did you vote on a bill that

        22       would have reduced the taxes on gasoline for

        23       my car for even a limited period of time?" --

        24       Mr. President, I'm going to tell him I vote

        25       aye.



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         1                  ACTING PRESIDENT MORAHAN:    Thank

         2       you, Senator.  You will be recorded in the

         3       affirmative.

         4                  Senator Oppenheimer.

         5                  SENATOR OPPENHEIMER:    Oh, good.

         6                  (Laughter.)

         7                  SENATOR OPPENHEIMER:    Sorry.

         8       Scratch that.

         9                  In a bipartisan fashion, I would

        10       like to say that I wholeheartedly support what

        11       Senator Marcellino was saying about the home

        12       heating oil, where he has a bill, and I will

        13       try to get on it, which will give a thousand

        14       dollars during January and February to those

        15       families that are less well-to-do and need

        16       help with their heating oil.

        17                  The same should apply to this.  If

        18       we want to make sure that it is going to the

        19       people that need it, we should give a $100

        20       rebate to families earning $150,000 or, you

        21       know, $175,000.  Then you know the money is

        22       getting to the right place.

        23                  My problem with this is that my

        24       fear is that the money will not go to the

        25       motorist and that, instead, it will go to the



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         1       refiner, to the wholesaler.  We have seen

         2       that.  We have seen the remarkable growth in

         3       the profits of our oil companies just this

         4       year.

         5                  So my feeling is that we have seen

         6       empirical evidence that this does not work.

         7       Because we had 15 counties that had been part

         8       of the rebate, the cap on sales tax, and seven

         9       of those counties found that the savings was

        10       not going to the motorist --

        11                  ACTING PRESIDENT MORAHAN:    Thank

        12       you, Senator.

        13                  SENATOR OPPENHEIMER:    -- and the

        14       savings was not going -- I'll finish the

        15       sentence -- the savings was not going to

        16       anyone --

        17                  ACTING PRESIDENT MORAHAN:    Thank

        18       you, Senator.

        19                  SENATOR OPPENHEIMER:    -- and not

        20       to the government.  And that's why they had to

        21       increase their property sales tax.

        22                  So I'm going to be against it.

        23                  ACTING PRESIDENT MORAHAN:    Thank

        24       you, Senator.  You will be recorded in the --

        25       what, negative?  How did you vote, Senator?



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         1                  SENATOR OPPENHEIMER:    I'm against

         2       it.  No.

         3                  ACTING PRESIDENT MORAHAN:    No.

         4       Recorded in the negative.

         5                  Senator Onorato.

         6                  SENATOR ONORATO:    To explain my

         7       vote, Mr. President.

         8                  I think that Senator Lanza has good

         9       intentions.  But as we all know, many good

        10       deeds go unpunished.

        11                  This bill may have another side

        12       effect when we start to take $620 million out

        13       of the budget.  It's got to be made up

        14       somewhere, and I'm afraid that that somewhere

        15       is going to fall on the shoulders of our

        16       senior citizens, who may be deprived of some

        17       of the benefits that they're being entitled to

        18       along the year.

        19                  But I'm certainly not going to vote

        20       against anything that's going to reduce taxes

        21       on a short-term basis.  But I also want to

        22       remind people that there is definitely a

        23       consequence to this bill.

        24                  I vote aye.

        25                  ACTING PRESIDENT MORAHAN:    Thank



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         1       you, Senator Onorato.  You will be recorded in

         2       the affirmative.

         3                  Senator Padavan.

         4                  SENATOR PADAVAN:    Thank you,

         5       Mr. President.  I'm going to be very quick,

         6       because I see most of our colleagues are

         7       heading in different directions.  There goes

         8       another one right now.

         9                  But I want to thank Senator Lanza,

        10       not only for the excellent manner in which he

        11       presented this proposal to all of us and the

        12       arguments he made, the many, many questions he

        13       answered, but the fact that he did it over an

        14       extended period of time and he did it with

        15       style and grace.

        16                  Unfortunately, we had some members

        17       who chose a different path.  We can argue,

        18       obviously, and debate and discuss -- that's

        19       what we're here to do -- different points of

        20       view on any issue.  But when we stand up and

        21       challenge the motivation of another member,

        22       citing this bill as reflecting the stench of

        23       political pandering, that's totally

        24       uncalled-for.  It has no place here.

        25                  And those who do that should be, I



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         1       think, chastised.  And that's why I'm standing

         2       up.  He's not here, though.

         3                  Some said what have we done for the

         4       home heating fuel, for people who are paying

         5       these high prices to heat their homes and so

         6       on.  Well, I remind you we eliminated the

         7       state sales tax completely on home heating

         8       energy fuel.  And you all voted for it,

         9       everybody.  I didn't hear anything about

        10       pandering then.

        11                  We eliminated the sales tax on

        12       clothing entirely.  Previously we had done it

        13       for certain increments of time, for certain

        14       thresholds, $110.  And then we eliminated it

        15       completely in the City of New York and

        16       elsewhere.  I didn't hear anybody say that was

        17       pandering.

        18                  Why did we do those things?  For

        19       two basic reasons.  We were helping our

        20       constituents.  And that's what we're supposed

        21       to do in bad economic times.  And we listened

        22       to others, like the Mayor of the City of

        23       New York, who said people are going over to

        24       New Jersey to shop because the sales tax is

        25       less.



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         1                  And as Senator Lanza pointed out

         2       time after time, they're going over there to

         3       buy gas because it's less --

         4                  ACTING PRESIDENT MORAHAN:    Thank

         5       you, Senator.

         6                  SENATOR PADAVAN:    -- as a result

         7       of the sales tax.

         8                  I thank you too, Senator.

         9                  (Laughter.)

        10                  SENATOR PADAVAN:    You've done a

        11       great job.  If anybody hasn't said so lately,

        12       let me do so now.

        13                  I vote aye.

        14                  ACTING PRESIDENT MORAHAN:    Thank

        15       you, Senator.  You will be recorded in the

        16       affirmative.

        17                  Senator Breslin.

        18                  SENATOR BRESLIN:    Thank you,

        19       Mr. President.

        20                  I couldn't agree with Senator

        21       Padavan more.  In terms of a three-hour

        22       debate, a three-hour debate back and forth,

        23       Senator Lanza, you were graceful in answering

        24       questions and trying to take the right

        25       approach.



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         1                  But my conclusion is that nothing

         2       I've heard today guarantees that those

         3       refiners, that those distributors will pass on

         4       that 32 cents they're going to gain through

         5       the tax.  And I've watched counties, in Albany

         6       and around me, who have capped and seen the

         7       prices stay where they are, no benefit to the

         8       consumer.  And I'm not convinced that that

         9       won't happen here.

        10                  And if it doesn't, if it happens

        11       here that it isn't passed on, come September,

        12       as we've done in the past, we'll face a

        13       $600 million deficit.  And what do we do then?

        14       We do as Senator Onorato said.  We put it on

        15       the backs of the middle class, the elderly,

        16       the marginalized, and say:  Go away, your

        17       property taxes are increased.  Or go away, you

        18       have less health benefits.

        19                  So unless and until I am convinced

        20       that that will be passed on -- because, you

        21       know, even if it is passed on, we're talking

        22       about people paying $3.70 a gallon.  So I vote

        23       no.

        24                  Thank you, Mr. President.

        25                  ACTING PRESIDENT MORAHAN:    Thank



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         1       you, Senator Breslin.  You will be recorded in

         2       the negative.

         3                  Senator Sabini.

         4                  SENATOR SABINI:    Thank you,

         5       Mr. President.  To explain my vote.

         6                  I can see why there's a spirit of

         7       debate, and I can't fault anyone for voting

         8       yes or no on this legislation.  But I have a

         9       different -- perhaps different way of looking

        10       at this.

        11                  Senator Connor mentioned how we

        12       have people who are experts in the oil

        13       industry in the White House and in the

        14       number-two spot in Washington.  I don't think

        15       that's an accident.  We don't have any oil

        16       wells in this state that I know of.  We don't

        17       produce oil.  Yet the price of crude oil by

        18       the barrel is at record highs.

        19                  Last Friday the largest corporation

        20       in the history of the planet we live on, Exxon

        21       Mobil, announced a record profit for the

        22       quarter -- and their stock fell.  What does it

        23       say about the economic times that we live in

        24       and the examples that are set in our world

        25       economy if, in making record profits,



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         1       investors felt it wasn't enough on the backs

         2       of the consumer?

         3                  So I think that we're pointing the

         4       fingers at ourselves here and saying we should

         5       cut $500 million from the General Fund.  I

         6       think the bill is a little cynically drafted.

         7       A lot of people have been praising the bill.

         8       It's a B print.  The original money came out

         9       of the Highway Maintenance Fund and out of the

        10       MTA, and I guess maybe some people on the

        11       other side wouldn't have been able to vote for

        12       that, then, so we now made it the murky

        13       General Fund, so no one really gets hurt.

        14                  Except we do.  The people from the

        15       State of New York will get hurt to the tune of

        16       $500 million.

        17                  And Senator Volker said he noticed

        18       who voted no on this.  I'm noticing who's

        19       voting yes on this.

        20                  Some people had no problem a couple

        21       of weeks ago -- have no problem putting money

        22       into the back end of a car by giving us money

        23       back on the gas tax, but had no problem taking

        24       8 bucks off the front end of the car if you're

        25       driving in Manhattan.  Some of the same people



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         1       voting yes today were ready to vote for that,

         2       and I didn't hear any hand-wringing then about

         3       working people in New York, like some of us

         4       had raised.

         5                  So now --

         6                  ACTING PRESIDENT MORAHAN:    Thank

         7       you very much, Senator.

         8                  SENATOR SABINI:    -- I'm going to

         9       be voting no.  I don't think that there's any

        10       good or bad in this.  I think you can have a

        11       difference of opinion.  But I'll be casting my

        12       vote in the negative.

        13                  ACTING PRESIDENT MORAHAN:    Thank

        14       you very much, Senator.  You will be recorded

        15       in the negative.

        16                  Senator Krueger.

        17                  SENATOR LIZ KRUEGER:    Thank you,

        18       Mr. President.  I also want to say what a fine

        19       job you've been doing today.  Don't take that

        20       off my two minutes.

        21                  So I started several hours ago

        22       arguing that this bill was bad policy.  And I

        23       listened to most of the debate -- I got called

        24       out for a few minutes.  And again, I would

        25       still make the argument with respect to



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         1       Senator Lanza's bill that I'm not sure it's

         2       good public policy to reduce the price of

         3       petroleum.  But that's not the argument we

         4       were having today.  That's not the argument

         5       we're faced with right now.

         6                  If we want to reduce the price of

         7       petroleum for drivers in New York State, I

         8       would argue we want a bill that actually gives

         9       them the money.  And that if that was the

        10       assignment, this wasn't the right bill.

        11                  So I have to vote against this for

        12       two reasons, Mr. President.  One, because I'm

        13       not sure it's good public policy, even under

        14       these difficult circumstances, to lower the

        15       cost of gasoline.  And before one more person

        16       attacks my wonderful borough of Manhattan, we

        17       pay more for gas than upstate New York.

        18                  Two, if you're going to do that,

        19       then I would argue you want to do it through

        20       your tax system, through an actual rebate that

        21       goes to the people most in need.  This is a

        22       bill that research and science and history in

        23       New York State show us will increase the

        24       profit margin for the oil industry, not reduce

        25       the prices at the pump.



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         1                  And my colleague Senator Connor,

         2       Marty Connor, when he said the price will go

         3       up 32 cents right before elections, is

         4       absolutely correct.  We won't see the price go

         5       down, but we sure will see that 32 cents add

         6       on the day this bill goes out of effect.

         7                  So I vote no for several reasons.

         8       Thank you, Mr. President.

         9                  ACTING PRESIDENT MORAHAN:    Thank

        10       you, Senator.  You will be recorded in the

        11       negative.

        12                  Senator Hassell-Thompson, to

        13       explain her vote.

        14                  SENATOR HASSELL-THOMPSON:    Thank

        15       you, Mr. President.  Just to explain my vote.

        16                  It is clear that we have had a long

        17       and hearty debate here, and I want to go on

        18       the record as saying very clearly that while I

        19       think that the bill intent by Senator Lanza is

        20       an excellent one -- and I don't think that

        21       there was anything in my presentation or the

        22       majority of the presentations that negated

        23       that -- my concern was that I did not see in

        24       the bill a way to ensure that what we say we

        25       want to have happen will in fact happen.



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         1                  And the reason I asked for the bill

         2       to be held was so that we could create the

         3       language that would help us to guarantee that.

         4       Not to stall, but to ensure that what we say

         5       we're doing is what is really going to happen.

         6       Because when we don't deliver what we promise,

         7       I think we do a greater disservice than when

         8       we don't do anything at all.

         9                  So, Mr. President, even after three

        10       and a half hours of sitting through this

        11       debate, I continue to vote no without those

        12       guarantees.

        13                  Thank you, sir.

        14                  ACTING PRESIDENT MORAHAN:    Thank

        15       you, Senator.  You will be recorded in the

        16       negative.

        17                  Senator Stewart-Cousins, to explain

        18       her vote.

        19                  SENATOR STEWART-COUSINS:    Thank

        20       you, Mr. President.

        21                  I rise -- and I do want to

        22       congratulate my colleague Senator Lanza for

        23       putting this forward.  And I rise not only to

        24       explain my vote, but I really want to explain

        25       my vote.



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         1                  Because when I spend time in the

         2       district, what I do is what everybody does.

         3       We go around, we talk to our constituents.  I

         4       will say beyond a doubt that this issue is the

         5       thing that really people are talking about.

         6       If I talk to my seniors, they're concerned

         7       about gas.  If I talk to the young people,

         8       they're concerned.  Everyone understands there

         9       is pain at the pump.

        10                  So I stand here today to say I'm

        11       going to vote for this piece of legislation

        12       because it's important that people understand

        13       that we hear them and that we are responsive.

        14       But I also want to explain that when I leave

        15       here, the prices are not going to go down,

        16       because there is work that we have to do.

        17                  There is work on the Assembly side,

        18       there is work with the Governor, there is

        19       work.  Because people will have listened to

        20       this for three hours and believe that 32 cents

        21       will be off of their gas bill.  That will not

        22       be the case.

        23                  With the passion that Senator Lanza

        24       has, I think that passion, with a bipartisan

        25       effort, can get us somewhere, can get us



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         1       relief for our constituents, can get us beyond

         2       a three-hour debate to the reality of really

         3       abating the pain that people are experiencing

         4       at the gas pump.

         5                  So yes, I will vote for this piece

         6       of legislation.  But I really am looking

         7       forward to the day when we can indeed reduce

         8       the taxes and indeed also find a way in our

         9       legislation to penalize those who do not pass

        10       on the savings.

        11                  I vote aye.

        12                  ACTING PRESIDENT MORAHAN:    Thank

        13       you, Senator.

        14                  And the last person I have listed

        15       to explain his vote is Senator Robach, before

        16       they put the lights out here.

        17                  SENATOR ROBACH:    Can I have four

        18       minutes, Mr. President?

        19                  (Laughter.)

        20                  SENATOR ROBACH:    No, just joking.

        21                  I would say, very quickly, this has

        22       been a good debate.  It is good.  We clearly

        23       need a national policy.  But I don't think

        24       there's anything wrong with being populist at

        25       times.



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         1                  People talk about bipartisan.  I

         2       don't know where people are living, I don't

         3       know anybody that says we don't pay enough tax

         4       in New York.  This is something, the economy,

         5       everybody knows if you lower the tax,

         6       competition will lower it.

         7                  Would we like to get into the

         8       profits of gas companies?  Absolutely.

         9       Hopefully they'll find a way to do that.

        10                  But in the interim this is, as has

        11       been said before, one thing we can do to help

        12       people.  And not only help them.  In upstate

        13       New York it's just a fact -- yes, you can

        14       conserve, you can do different things.  But

        15       certain people in their businesses are going

        16       to drive to work, they're going to deliver

        17       food, they're going to deliver medicine.  Kids

        18       commute to college.  That's the way it is.

        19       They don't have a choice.

        20                  And this policy will help young and

        21       old, working families, businesses, private

        22       people, everything.  This is a great tax to

        23       cut.

        24                  And I want to say on the record

        25       just the opposite -- you're right, we



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         1       shouldn't take it off in September.  We should

         2       go right through.  With rising gas prices,

         3       rising food prices, adjustable-rate mortgages,

         4       talking about the economy, we ought to use the

         5       rainy day fund, whatever it is, because in my

         6       district it's pouring for those people.

         7                  Let's do something that's popular

         8       instead of worrying about policies at other

         9       levels of government and things we can't

        10       control.  This is why I'm very happy to

        11       applaud Senator Lanza and vote yes.  People

        12       want it, people need it.

        13                  Do I have any time left?  No, I'm

        14       only kidding.

        15                  (Laughter.)

        16                  SENATOR ROBACH:    I vote in the

        17       affirmative.  Thank you, Mr. President.

        18                  ACTING PRESIDENT MORAHAN:    Thank

        19       you, Senator.

        20                  Announce the results.

        21                  THE SECRETARY:    Those recorded in

        22       the negative on Calendar Number 1086 are

        23       Senators Breslin, Connor, Duane, Gonzalez,

        24       Hassell-Thompson, L. Krueger, Montgomery,

        25       Oppenheimer, Parker, Perkins, Sabini, Sampson,



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         1       Schneiderman, Serrano and Stavisky.

         2                  Ayes, 46.  Nays, 15.

         3                  ACTING PRESIDENT MORAHAN:    The

         4       bill is passed.

         5                  Senator Griffo, that completes the

         6       controversial reading of the calendar.

         7                  SENATOR GRIFFO:    Thank you,

         8       Mr. President.

         9                  I have a couple of motions.

        10                  ACTING PRESIDENT MORAHAN:    All

        11       right.

        12                  SENATOR GRIFFO:    Mr. President,

        13       on page 41 I offer the following amendments to

        14       Calendar Number 594, Senate Print 3852A, by

        15       Senator Flanagan, and ask that said bill

        16       retain its place on Third Reading Calendar.

        17                  ACTING PRESIDENT MORAHAN:    The

        18       amendments are received, and the bill will

        19       retain its place on the Third Reading

        20       Calendar.

        21                  SENATOR GRIFFO:    Mr. President,

        22       on page 45 I offer the following amendments to

        23       Calendar Number 682, Senate Print 2879, by

        24       Senator DeFrancisco, and ask that said bill

        25       retain its place on Third Reading Calendar.



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         1                  ACTING PRESIDENT MORAHAN:    The

         2       amendments are received, and the bill will

         3       retain its place on the Third Reading

         4       Calendar.

         5                  SENATOR GRIFFO:    Mr. President,

         6       is there any further business before the desk?

         7                  ACTING PRESIDENT MORAHAN:    No,

         8       there is not.

         9                  SENATOR GRIFFO:    There being

        10       none, then I move that we adjourn until

        11       Monday, May 12th, at 3:00 p.m., with

        12       intervening days being legislative days.

        13                  ACTING PRESIDENT MORAHAN:    On

        14       motion, the Senate stands adjourned until

        15       Monday, May 12th, at 3:00 p.m., intervening

        16       days being legislative days.

        17                  Good night and good luck.

        18                  (Whereupon, at 3:16 p.m., the

        19       Senate adjourned.)

        20

        21

        22

        23

        24

        25



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