Regular Session - January 20, 2010

                                                            162



         1                 NEW YORK STATE SENATE

         2

         3

         4                THE STENOGRAPHIC RECORD

         5

         6

         7

         8

         9                   ALBANY, NEW YORK

        10                   January 20, 2010

        11                      12:22 p.m.

        12

        13

        14                    REGULAR SESSION

        15

        16

        17

        18  SENATOR NEIL D. BRESLIN, Acting President

        19  ANGELO J. APONTE, Secretary

        20

        21

        22

        23

        24



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

         2                  ACTING PRESIDENT BRESLIN:    The

         3       Senate will please come to order.

         4                  I ask all present to please rise

         5       and repeat the Pledge of Allegiance to the

         6       Flag.

         7                  (Whereupon, the assemblage recited

         8       the Pledge of Allegiance to the Flag.)

         9                  ACTING PRESIDENT BRESLIN:    The

        10       invocation today will be given by the Reverend

        11       Peter G. Young, of the Mother Theresa

        12       Community in Albany.

        13                  REVEREND YOUNG:    Let us pray.

        14                  As we gather in the midst of the

        15       budget concerns, may we pray for those who are

        16       affected by today's continuing after-care

        17       after the tremors in Haiti.  All people are

        18       called to respond to assist those in need.

        19                  God, You have given us many

        20       different gifts that we have to respond with,

        21       but it is always the spirit in this chamber

        22       that You guide us.  There are many different

        23       ways to serve as Senators, but it is always

        24       You, O God, that have granted them to be used



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         1       for the good of our New York State citizens.

         2                  God has gifted each Senator with a

         3       special potential to help constituents.  Let

         4       us take a moment to thank God for the talents

         5       and the skills that we thank You for, for

         6       these gifts of these Senators, unique to each

         7       Senator.

         8                  And let us again pray and rejoice

         9       in You who have given and made us dedicate our

        10       gifts to those to the good of our New York

        11       State citizens.

        12                  Amen.

        13                  ACTING PRESIDENT BRESLIN:    Thank

        14       you, Father Young.

        15                  The reading of the Journal.

        16                  The Secretary will read.

        17                  THE SECRETARY:    In Senate,

        18       Tuesday, January 19, the Senate met pursuant

        19       to adjournment.  The Journal of Monday,

        20       January 18, was read and approved.  On motion,

        21       Senate adjourned.

        22                  ACTING PRESIDENT BRESLIN:

        23       Without objection, the Journal stands approved

        24       as read.



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         1                  Presentation of petitions.

         2                  Messages from the Assembly.

         3                  Messages from the Governor.

         4                  Reports of standing committees.

         5                  Reports of select committees.

         6                  Communications and reports from

         7       state officers.

         8                  Motions and resolutions.

         9                  Senator Smith.

        10                  SENATOR SMITH:    Yes,

        11       Mr. President.  I believe there is a

        12       resolution by Senator Sampson at the desk.  I

        13       ask that the resolution be read in its

        14       entirety and move for its immediate adoption.

        15                  ACTING PRESIDENT BRESLIN:

        16       Senator Smith, has this resolution been deemed

        17       privileged and submitted to the office of the

        18       Temporary President?

        19                  SENATOR SMITH:    Yes,

        20       Mr. President.

        21                  ACTING PRESIDENT BRESLIN:    The

        22       Secretary will read.

        23                  THE SECRETARY:    By Senators

        24       Sampson, Skelos, Thompson, Hassell-Thompson



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         1       and Adams, legislative resolution celebrating

         2       the observance of the 25th National Martin

         3       Luther King, Jr., Day.

         4                  "WHEREAS, This Legislative Body is

         5       proudly moved to honor and pay tribute to the

         6       life and works of Dr. Martin Luther King, Jr.;

         7       and

         8                  "WHEREAS, Across this great state

         9       and nation, many events were held on

        10       January 18, 2010, to recognize the 25th

        11       National Martin Luther King, Jr., Day.  This

        12       year's theme 'Saluting Greatness:  The Legacy

        13       of Dr. Martin Luther King, Jr.' serves as an

        14       excellent rallying point to continue the

        15       dialogue that transmits the message of the

        16       virtues Dr. King and Mrs. King stood for, such

        17       as selflessness, sacrifice, determination,

        18       dignity and equality.  Their lives were

        19       committed to the service of others for the

        20       greater good; and

        21                  "WHEREAS, People of all ages and

        22       backgrounds came together to improve lives,

        23       bridge social barriers, and move our nation

        24       closer to the 'Beloved Community' that



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         1       Dr. Martin Luther King, Jr., envisioned.  He

         2       devoted his life's work to causes of equality

         3       and social justice; and

         4                  "WHEREAS, Born the grandson of a

         5       slave into a segregated society in Atlanta,

         6       Georgia, on January 15, 1929, Dr. Martin

         7       Luther King, Jr., was instrumental in

         8       formulating the policy which ultimately led to

         9       the American civil rights movement nationwide;

        10       and

        11                  "WHEREAS, Dr. Martin Luther King,

        12       Jr., wanted us to remember him as a person who

        13       tried to live his life serving others, that he

        14       tried to love somebody, and that he tried to

        15       love and serve humanity; and

        16                  "WHEREAS, Dr. King taught that

        17       through nonviolence and service to one

        18       another, problems such as hunger and

        19       homelessness, prejudice and discrimination can

        20       be overcome.  His teachings can continue to

        21       guide us in addressing America's most pressing

        22       needs of poverty, economic insecurity, job

        23       loss and education; and

        24                  "WHEREAS, Dr. Martin Luther King,



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         1       Jr., was a vital figure of the modern era.

         2       His lectures and dialogues stirred the concern

         3       and sparked the conscience of a generation;

         4       and

         5                  "WHEREAS, The movements and marches

         6       Dr. King led brought significant changes to

         7       the fabric of American life through his

         8       courage and selfless devotion.  This devotion

         9       gave direction to 13 years of civil rights

        10       activities, and his charismatic leadership

        11       inspired men and women, young and old,

        12       throughout the United States and around the

        13       world; and

        14                  "WHEREAS, Dr. King's concept of

        15       'somebodiness,' which symbolized the

        16       celebration of human worth and the conquest of

        17       subjugation, gave African-Americans and the

        18       poor hope and a sense of dignity.  His

        19       philosophy of nonviolent direct action and his

        20       strategies for rational and non-destructive

        21       social change galvanized the conscience of

        22       America and reordered its priorities.  His

        23       wisdom, his words, his actions, his

        24       commitment, and his dream for a new way of



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         1       life are intertwined with the American

         2       experience; and

         3                  "WHEREAS, It is the sense of this

         4       Legislative Body that the common and shared

         5       responsibility of governance demands an

         6       irrevocable commitment to the preservation and

         7       enhancement of human dignity as exemplified by

         8       Dr. Martin Luther King, Jr.; now, therefore,

         9       be it

        10                  "RESOLVED, That this Legislative

        11       Body pause in its deliberations to celebrate

        12       the observance of the 25th National Martin

        13       Luther King, Jr., Day."

        14                  ACTING PRESIDENT BRESLIN:

        15       Senator Hassell-Thompson.

        16                  SENATOR HASSELL-THOMPSON:    Thank

        17       you, Mr. President.

        18                  I rise to thank this body for this

        19       opportunity to commemorate the life of

        20       Dr. King and to just say very quickly on the

        21       record that as we deliberate in these

        22       chambers, we do so with the idea of the dream

        23       in mind.  That it is our wish that we remember

        24       that peace is not just the absence of



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         1       violence, but that it is the presence of

         2       justice.

         3                  Thank you, Mr. President.

         4                  ACTING PRESIDENT BRESLIN:    Thank

         5       you, Senator Hassell-Thompson.

         6                  Senator Parker.

         7                  SENATOR PARKER:    Thank you,

         8       Mr. President.  On the resolution.

         9                  MLK Day is always an important time

        10       for me, as it is, I think, for many

        11       African-Americans around the country.  I know

        12       myself I would not have an opportunity to

        13       represent the 21st District in Brooklyn if it

        14       was not for the work of Dr. King, members of

        15       the Southern Christian Leadership Conference,

        16       SNCC, members of the Black Power movement, and

        17       others who gave their life, their time, shed

        18       blood and tears to make sure that

        19       African-Americans had a place in terms of the

        20       line of opportunity here in America.

        21                  And we get caught up in the dream,

        22       and I think people like that.  People like the

        23       idea of something that was part of sleep but

        24       not really part of reality.  And really, when



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         1       you talk about what Dr. King was really about

         2       and the message he delivered, and particularly

         3       in D.C., that it really wasn't much about the

         4       dream.  In fact, the idea of the dream was an

         5       ad lib.

         6                  What he did come to talk about was

         7       the idea of cashing in a check of justice that

         8       at that point was marked "unfulfilled."  I

         9       would say now that we've made some deposits on

        10       it, but it's still not completely fulfilled.

        11                  It is, in my view, the mission of

        12       the members of this body and in this chamber

        13       on both sides of the aisle to make sure that

        14       that check is marked "sufficient."  And not

        15       just sufficient for African-Americans, but

        16       sufficient for all Americans, all New Yorkers,

        17       all people of goodwill in this state.

        18                  And so lastly I just wanted to

        19       point to the second thing he talked about, and

        20       that was the importance of the now.  That it

        21       wasn't just important just to say that we have

        22       to someday get this check fulfilled

        23       sufficient, but we have to do it now.

        24                  And let me just say, colleagues,



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         1       that now is the time for us to do the right

         2       things by the people of the State of New York.

         3       Now is the time for us to come together and

         4       make sure that we continue to fully fund

         5       education.  Now is the time to make sure that

         6       we in fact have a jobs program for people in

         7       the state.  Now is the time to make sure that

         8       people's property taxes are in fact in line

         9       with their incomes and people are not being

        10       overburdened.  Now is the time that we make

        11       sure that healthcare is really available for

        12       all people.  Now is the time that adequate

        13       housing needs to be fulfilled.

        14                  And we have bills in this body that

        15       would do those things.  And I would say that

        16       we should not wait until the budget and wait

        17       until this or the other thing happens or wait

        18       until the elections come and wait for that --

        19       we have to do what King asked us to do, which

        20       is to act in the now.

        21                  And so it's important, if we're

        22       going to remember the life and legacy of

        23       Dr. King, not simply to remember the dream,

        24       but to make sure, Mr. President, that we are



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         1       in fact acting in the now and honoring his

         2       legacy with action.

         3                  ACTING PRESIDENT BRESLIN:    Thank

         4       you, Senator Parker.

         5                  Senator Larkin.

         6                  SENATOR LARKIN:    Thank you,

         7       Mr. President.

         8                  You know, in one respect it's a

         9       shame we didn't do this on the holiday or we

        10       didn't do it on the 15th day of January, which

        11       was his birthday.

        12                  I don't know how many people in

        13       this room ever met Dr. King face to face, ever

        14       shook hands with him.  But if you did, you'd

        15       now that when Dr. King talked to you -- and I

        16       know it, because I met him, short visit,

        17       10 minutes, Selma, Alabama, 21 March, 1965 --

        18       Dr. King looked right at you.  He didn't look

        19       to see who was watching him, he looked right

        20       at you and said how important the mission was.

        21                  And I think all of us -- I just

        22       heard what Senator Parker said, and I think we

        23       all ought to remember in August of 1963 in

        24       Washington, D.C., when Dr. King said he had a



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         1       dream.  And I think a lot of people today,

         2       young and old, have forgot the contents of

         3       that message.  The message wasn't to go out

         4       and spread anger or violence.  The message was

         5       try to come together and do something

         6       positive -- not for African-Americans, but for

         7       all Americans, for young and old.  Dr. King

         8       had a perfect message.

         9                  When he was killed in April of 1968

        10       in Memphis, Tennessee, he was there to help

        11       the sanitation workers.  And I see a lot of

        12       people say they did this, they did this.  You

        13       know what?  Go back and read the speech of

        14       August of '63.  And read what he said to the

        15       sanitation workers in April of '68 before he

        16       was killed.  There was a message there that

        17       many of us today don't understand and are not

        18       willing to accept what was proposed.  The

        19       proposals were not accepted on a lot of sides.

        20                  But had it not been for Dr. King's

        21       march from Selma to Montgomery, I don't know

        22       how many years it would have taken us to do

        23       the Civil Rights Act, the Voting Civil Rights

        24       Act which was enhanced by then-Senator Nolan



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         1       from California because President Johnson did

         2       not have the votes.

         3                  But Dr. King looked at you very

         4       emphatic, said to you what he did.  And my

         5       short 10 minutes with him, I'll remember he

         6       said "God bless you and let's pray for a

         7       successful mission."  We had a successful

         8       mission on the march from Selma to Montgomery.

         9                  And we also should note that there

        10       was a very distinguished individual in that

        11       front row marching.  The Governor's father,

        12       Basil, was one of the marchers.

        13                  Thank you.

        14                  ACTING PRESIDENT BRESLIN:    Thank

        15       you, Senator Larkin.

        16                  Senator Adams.

        17                  SENATOR ADAMS:    Thank you,

        18       Mr. President.

        19                  One of the challenging things of

        20       sitting on this side of the room is that

        21       Senator Parker often takes my speeches.

        22                  I always like to go back and look

        23       at what people were saying while the person

        24       was alive.  It's easy to retrospectively talk



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         1       about the greatness of someone.  But what was

         2       going on the month and the year before we lost

         3       Dr. King?

         4                  You know, we need to talk about the

         5       fact that when he was in Harlem, a group of

         6       Harlem parishioners at a church threw eggs at

         7       him when he walked out.  We need to talk about

         8       the various newspapers and editorial pages

         9       that criticized him and stated that he was

        10       trying to move the country too fast.  We need

        11       to talk about how he was disdained and

        12       disliked.

        13                  We need to talk about the FBI

        14       building that bears the name of one of the

        15       most draconian government officials that we

        16       could ever imagine, J. Edgar Hoover, and how

        17       he followed Dr. King and how he sent tapes to

        18       Dr. King's family, and how he attempted to

        19       push Dr. King into committing suicide.

        20                  We need to talk about from location

        21       to location that Dr. King was hated.  He was

        22       hated by governmental officials when he talked

        23       about the Vietnam War.  He was hated in the

        24       local papers in the South.  He was hated in



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         1       the North.

         2                  So it's nice now to reflect and

         3       talk about the greatness of his dream, but the

         4       reality, Dr. King lived a nightmare.  He was

         5       afraid.  His family was under a constant

         6       threat.  Those of us who cherish him now may

         7       have participated in branding him as being

         8       someone that was tearing the country apart.

         9       Our late president had a significant role in

        10       stopping many of the roadblocks that he wanted

        11       to do.

        12                  So we can reflect, but we must be

        13       clear not to be revisionist.  If we give a

        14       correct reflection of history and what

        15       Dr. King went through in his life, clearly

        16       we'll know that those of us who write about us

        17       now who don't have the foresight to understand

        18       that marriage equality is right, who don't

        19       have the foresight to understand that giving

        20       all of our children an equal educational

        21       opportunity is right, who don't understand

        22       that we need to reignite affordable housing in

        23       this state -- and we are right -- who don't

        24       understand that we need to address the issue



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         1       that a countless number of New Yorkers across

         2       the state are going through a daily ritual of

         3       sitting down at their kitchen table with their

         4       head in their hand, wondering how they're

         5       going to move forward -- and we're fighting

         6       for them; we are right.

         7                  So no matter what is wrote in the

         8       papers, no matter how we are demonized,

         9       there's something uniquely qualified about

        10       what we are doing.  We are King-like.  We are

        11       living the dream of King, not in what we say

        12       but in our actions.

        13                  And I too want to just pause for a

        14       moment.  And if Dr. King was here, I believe

        15       he would say "Stop looking at me as the star."

        16       There were a countless number of costars who

        17       participated in what he did.  It was not that

        18       our concern is just the man, Dr. King; it's

        19       the spirit of Dr. King.  That is what took

        20       place.

        21                  And there were many people who

        22       participated in the evolution of this country

        23       who already went through, as he stated, the

        24       morning of childhood, already went through the



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         1       afternoon of adulthood, and they were in the

         2       evening of their lives, they marched, they

         3       were jailed, they were incarcerated -- but

         4       they believed in Dr. King, just as the people

         5       in this state believe in the things that we're

         6       doing.  So we need to relive the dream and

         7       prevent the nightmares throughout our entire

         8       state.

         9                  So I applaud the life of Dr. King.

        10                  ACTING PRESIDENT BRESLIN:    Thank

        11       you, Senator Adams.

        12                  Senator Perkins.

        13                  SENATOR PERKINS:    Thank you,

        14       Mr. President.  I'm going to be brief.

        15                  I guess more difficult than

        16       following Kevin Parker, who plagiarizes

        17       speeches, is following Senator Adams, because

        18       he's always so eloquent.

        19                  But I just wanted to take a brief

        20       moment to remember Dr. King as he was in his

        21       last episode, not simply working with labor in

        22       Memphis, Tennessee -- and in fact I had the

        23       privilege on his birthday, the 15th, of having

        24       a celebration of his relationship with labor



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         1       with labor leaders from throughout the city

         2       and state.

         3                  But he was at that point involved

         4       in an economic justice campaign which was not

         5       only emphasized by his labor relationships but

         6       also by his campaign for poor people.  He was

         7       organizing a march to Washington, D.C., called

         8       the Poor People's Campaign, in which he was

         9       organizing people from the Appalachian

        10       Mountains and from the urban communities to go

        11       down to Washington, D.C., and stay there until

        12       an economic justice agenda was provided.

        13                  It reminds me to some extent of

        14       what Senator Parker was alluding to when he

        15       reminded us of the type of legislation that we

        16       already have on the books to be voted on and

        17       that would to some extent address his dream,

        18       especially from the economic justice point of

        19       view.

        20                  So I just wanted to remind us that

        21       yes, he was the great civil rights leader and

        22       yes, he was a great religious leader, a moral

        23       leader, but he understood that the next

        24       movement was the movement for economic



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         1       justice, especially for poor people.  And so I

         2       wanted to, for the record, make that point.

         3                  Thank you.

         4                  ACTING PRESIDENT BRESLIN:    Thank

         5       you, Senator Perkins.

         6                  Are there any other Senators

         7       wishing to be heard on the resolution?

         8                  The question, then, is on the

         9       resolution.  All those in favor please signify

        10       by saying aye.

        11                  (Response of "Aye.")

        12                  ACTING PRESIDENT BRESLIN:

        13       Opposed, nay.

        14                  (No response.)

        15                  ACTING PRESIDENT BRESLIN:    The

        16       resolution is adopted.

        17                  Senators Sampson and Skelos have

        18       indicated they would like to open up this

        19       resolution for joint sponsorship.  Anyone not

        20       wishing to be on it please notify the desk.

        21                  Senator Smith.

        22                  SENATOR SMITH:    Thank you very

        23       much, Mr. President.

        24                  I believe there is a resolution at



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         1       the desk by Senator Kevin Parker.  I ask that

         2       that resolution be read in its entirety and,

         3       at the behest of Senator Parker, move for its

         4       immediate adoption.

         5                  ACTING PRESIDENT BRESLIN:

         6       Senator Smith, has this resolution been deemed

         7       privileged and submitted to the office of the

         8       Temporary President?

         9                  SENATOR SMITH:    Yes, it has,

        10       Mr. President.

        11                  ACTING PRESIDENT BRESLIN:    The

        12       Secretary will then read.

        13                  THE SECRETARY:    By Senators

        14       Parker, Sampson, Adams and Foley, legislative

        15       resolution sending deepest condolences to the

        16       people of Haiti in wake of the catastrophic

        17       earthquake that hit the island on Tuesday,

        18       January 12, 2010, and expressing solidarity

        19       with all individuals and organizations

        20       involved in the ongoing rescue and recovery

        21       efforts.

        22                  "WHEREAS, The human toll resulting

        23       from the devastating tragic events of the 7.0

        24       earthquake that shook Haiti and its aftermath



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         1       will alter the course of the lives of

         2       countless families and require the efforts and

         3       support of New Yorkers, Americans, and

         4       compassionate individuals throughout all

         5       nations to ensure the restoration of stability

         6       to all of the regions affected by the horrific

         7       natural disaster; and

         8                  "WHEREAS, This Legislative Body is

         9       sincerely moved to send the deepest heartfelt

        10       condolences from the people of the State of

        11       New York to the people of Haiti in wake of the

        12       catastrophic earthquake that hit the island on

        13       Tuesday, January 12, 2010, and to express

        14       solidarity with all individuals and

        15       organizations involved in the ongoing rescue

        16       and recovery efforts; and

        17                  "WHEREAS, This devastating

        18       earthquake, which gave virtually no warning,

        19       has left thousands dead, nearly 3 million

        20       homeless, countless orphaned, and untold

        21       thousands still missing; and

        22                  "WHEREAS, The most powerful

        23       earthquake Haiti has witnessed in over 200

        24       years has damaged and destroyed government



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         1       headquarters, schools, medical buildings,

         2       roads and bridges, requiring a widespread need

         3       for food, water, supplies, tools, equipment,

         4       medicine, healthcare, law enforcement

         5       personnel, security services, public utility

         6       services, sanitation and waste disposal,

         7       removal of debris, and property restoration

         8       and reconstruction; and

         9                  "WHEREAS, The giving nature of

        10       New Yorkers and all Americans is already

        11       apparent by the outpouring of sympathy and

        12       contributions made on behalf of countless

        13       individuals and organizations who have aided

        14       in the rescue and relief efforts; and

        15                  "WHEREAS, There are more than

        16       230,000 people of Haitian origin living in

        17       New York State, including approximately

        18       122,000 in New York City alone, as well as a

        19       growing and dynamic Haitian-American community

        20       on Long Island.  The Haitian presence,

        21       particularly in Brooklyn, has positively

        22       impacted many neighborhoods and has led to the

        23       creation of several vibrant Haitian-American

        24       community institutions and organizations; and



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         1                  "WHEREAS, This Legislative Body

         2       represents a community that possesses the

         3       natural inclination to come to the aid of

         4       those in need, especially in times of

         5       tragedies as great as this that have occurred

         6       on our own soil as well as abroad; and

         7                  "WHEREAS, This Legislative Body

         8       recognizes the magnitude of this ongoing

         9       national tragedy, and with these words sends

        10       the message to the people of Haiti that the

        11       citizens of the great Empire State relate to

        12       the suffering that others endure in times of

        13       such devastation and recovery, and will remain

        14       steadfast in support and compassion with them

        15       for as long as it takes to reunite their

        16       families, restore hope to their lives, and

        17       secure their future; now, therefore, be it

        18                  "RESOLVED, That this Legislative

        19       Body pause in its deliberations to send

        20       deepest condolences to the people of Haiti in

        21       wake of the catastrophic earthquake that hit

        22       the island on Tuesday, January 12, 2010, and

        23       expressing solidarity with all individuals and

        24       organizations involved in the ongoing rescue



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         1       and recovery efforts."

         2                  ACTING PRESIDENT BRESLIN:

         3       Senator Parker.

         4                  SENATOR PARKER:    Thank you,

         5       Mr. President.  On the resolution.

         6                  Approximately a week ago there was

         7       a catastrophic earthquake in Haiti, as we all

         8       know, that devastated the country.  I happen

         9       to represent, in Flatbush and East Flatbush,

        10       the largest concentration of Haitians outside

        11       of Haiti in the entire world.  I share a large

        12       Haitian population with many of my colleagues,

        13       including Senator Adams, Senator Sampson,

        14       Senator Hassell-Thompson, Senator Foley.  I

        15       know Senator Tom Morahan has a large

        16       population in Spring Valley.  There's a

        17       significant population out in Rosedale, in

        18       Queens.

        19                  And so, you know, when we look at

        20       how important this population has been for the

        21       growth of New York State and Brooklyn in

        22       particular, we're in unity in terms of the

        23       stress that we're feeling.

        24                  Never before have I, particularly



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         1       as an elected official, have gone through

         2       something that has touched me so personally.

         3       That this is in fact not something that is

         4       just abstract on TV, but, you know, members of

         5       my staff who are from Haiti are missing, have

         6       lost family members and loved ones.  You know,

         7       people I've grown up with, you know, some of

         8       their children who are over there, you know,

         9       some were missing, some have been found.  This

        10       is profoundly horrific for the people of my

        11       district and of course for the people who live

        12       in Haiti now.

        13                  And so I just wanted to at this

        14       moment not just to raise the issue so that we

        15       all continue to think about it, but really use

        16       this moment as a call to action to ask members

        17       of this body on both sides of the aisle to

        18       really seriously be engaged in this.

        19                  We frankly owe a debt to Haiti

        20       because in part the earthquake that hit Haiti

        21       was on top of all of the other problems that

        22       Haiti had been having already with the deep

        23       poverty, lack of healthcare, you know, not

        24       strong architectural structures that we're now



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         1       finding.  And that's a condition that we as

         2       Americans helped to create.

         3                  And I know a lot of people don't

         4       necessarily want to face up to that.  But the

         5       reality is that there were many European

         6       powers that, when Haiti got to be the first

         7       republic to be free in the Western Hemisphere,

         8       did not see that as a good thing and in fact

         9       pledged themselves to make sure that Haiti

        10       would be made an example of.  And so not only

        11       political and economic and social exploitation

        12       has been part of the process that they've gone

        13       through, but it has been really a collusion

        14       and a conspiracy of silence around Haiti up

        15       until this point.

        16                  We now have an opportunity in this

        17       call to action to do more.  And I know that

        18       people have been making monetary

        19       contributions, and I want to thank people for

        20       doing that.  And I think there's more to be

        21       done.  But we really need to both call on the

        22       federal government to do a few more things as

        23       well as some of our corporate partners.

        24                  And I certainly want to give a lot



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         1       of credit to President Barack Obama and the

         2       members of Congress, particularly from the

         3       New York delegation, and most notably my

         4       Congresswoman, Yvette Clarke, around calling

         5       for things like the temporary protective

         6       status for Haitian immigrants.  The President,

         7       without even prompting, stopped the

         8       deportation of Haitian immigrants.  There's

         9       literally no more capacity for the country to

        10       absorb people going back to the country, and

        11       so we have to take it upon ourselves to do

        12       that.

        13                  I've reached out to the Governor of

        14       this state to make an armory available and to

        15       have the New York Air National Guard be

        16       available to take down supplies when the time

        17       is right.  And I've yet to hear from him.  I'm

        18       hoping that the Governor will hear my plea

        19       today and make that happen for New Yorkers who

        20       are looking for help from their government to

        21       help their home country.  And it's a small

        22       price to pay.

        23                  And I know that we're in the middle

        24       of an economic crisis in the state, but the



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         1       people of Haiti are in the middle of a human

         2       crisis, and that human crisis is right now.

         3       And we can figure out a way to balance the

         4       budget, and we always do.  But how is Haiti

         5       going to get out of this situation if we don't

         6       help?  The question is not what happens to our

         7       budget if we help Haiti, the question is what

         8       happens to Haiti if we don't help them.  And

         9       what happens to us as a consequence of that

        10       nonaction?  And so this is a call of action to

        11       get them involved.

        12                  You know, I've worked on energy and

        13       telecommunications issues, I've reached out to

        14       Con Ed, I'm shortly going to reach out to

        15       National Grid to send down electrical

        16       engineers and technicians and equipment to

        17       help Haiti get back online.

        18                  We've reached out to credit card

        19       companies to make sure that they are not

        20       charging fees to people who are making

        21       contributions on their credit cards, and to

        22       make sure that any fees that have been charged

        23       to this point get sent to Haiti as a donation,

        24       to make sure that our donations are being used



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         1       correctly.

         2                  I have to commend, on this same

         3       issue, Congressman Charles Rangel, who in fact

         4       has made it possible so that the contributions

         5       that we're making now on behalf of Haiti can

         6       in fact be deducted from the 2009 taxes.

         7                  We need to do all these small

         8       things.  I've reached out to the airlines and

         9       asked them to provide low-cost flights and

        10       free flights, for people who are trapped in

        11       Haiti to fly back and people who need to get

        12       down to check on loved ones and families as

        13       well as to send down rescue workers.

        14                  We're going to need to reach out to

        15       the world community, and particularly the

        16       world financial community, like the IMF, the

        17       International Monetary Fund, and the World

        18       Bank.  And I'm asking them to forgive Haiti's

        19       loans.  We can't continue to send in aid and

        20       do the things that we're going to be doing

        21       and, you know, Haiti has these debts in a

        22       context in which we know they're going to

        23       never be able to pay back.  Let's forgive

        24       them.  Let's forgive those loans and let's



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         1       move towards building Haiti.

         2                  In that vein, again I congratulate

         3       President Barack Obama and the members of

         4       Congress for pledging $100 million towards

         5       their rebuilding effort.  That's not nearly

         6       enough.  I have actually written a letter to

         7       the President and to the members of Congress

         8       asking for a billion-dollar rebuilding program

         9       to be implemented by Congress.  That will just

        10       be a beginning of what we need to do to turn

        11       Haiti around to make sure that it can be a

        12       sustainable country again with its own

        13       government.

        14                  And so, you know, how can we in

        15       fact talk about sending them and working with

        16       them around a billion dollars if they in fact

        17       have these astronomical loans that they have

        18       to pay back?  So, you know, these things kind

        19       of work hand in glove.

        20                  There's so much more that we can do

        21       both as a state and as a national government.

        22       And so, again, my call to action today is to

        23       ask my colleagues here on the floor to be

        24       involved in this process, to reach out to me



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         1       and to other members who are interested in

         2       helping to rebuild Haiti and making sure that

         3       our constituents here of Haitian descent, make

         4       sure that they're secure and that their loved

         5       ones are okay.

         6                  And so as we deal with this crisis,

         7       we use it as an opportunity, both to express

         8       our humanity and to work alongside of our

         9       constituencies and their families and loved

        10       ones back home, but also to right past

        11       injustices that were done to Haiti and go

        12       forward with a renewed spirit of cooperation

        13       and partnership to make sure that this world

        14       is the kind of world that we all want to live

        15       in.  And that is one where there isn't any

        16       kind of economic and political oppression and

        17       where we aren't creating economic blockades

        18       around countries and we aren't, you know,

        19       ignoring the cries of one of the poorest

        20       countries in the Western Hemisphere.

        21                  And so I look forward to our

        22       continued work together, because Haiti has hit

        23       rock bottom.  And for all of us, there is no

        24       place to go but up.



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         1                  ACTING PRESIDENT BRESLIN:    Thank

         2       you, Senator Parker.

         3                  Senator Foley.

         4                  SENATOR FOLEY:    Thank you,

         5       Mr. President.

         6                  I'd like to take this opportunity

         7       to express our solidarity with the people of

         8       Haiti and with our great Haitian-American

         9       community during this tragic time.  We've

        10       learned over the past week this is the worst

        11       earthquake to hit Haiti in over 200 years,

        12       leaving millions homeless and tens of

        13       thousands who have died.

        14                  Shortly after the earthquake, which

        15       was 7.0 on the Richter scale, people across

        16       the great State of New York began efforts to

        17       help those in desperate need.  From

        18       fund-raising drives to calls to gather crucial

        19       supplies, New Yorkers began to pitch in at a

        20       very speedy pace.

        21                  In my own district on Long Island,

        22       we've seen unprecedented efforts to help

        23       victims of the Haitian earthquake.  And while

        24       we're grateful to those who have rolled up



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         1       their sleeves and donated their time, money

         2       and energy to the cause, I wanted to take a

         3       moment to particularly thank the

         4       Haitian-American community on Long Island.

         5                  And in my own district, which is

         6       one of the more diverse districts in our

         7       state, we have seen a vibrant Haitian-American

         8       community coming together.  And I want to

         9       especially thank a not-for-profit

        10       organization, Haitian-Americans United for

        11       Change, which has been working tirelessly to

        12       help victims of the earthquake.

        13                  So the Haitian-Americans United for

        14       Change and all others who are volunteering and

        15       making whatever contributions possible are

        16       some of the real heroes who deserve our

        17       eternal gratitude.

        18                  So as we proceed today,

        19       Mr. President, with our business in the

        20       Senate, rest assured that New York stands with

        21       the Haitian-American community and with our

        22       friends who are suffering today in Haiti.

        23                  Thank you, Mr. President.

        24                  ACTING PRESIDENT BRESLIN:    Thank



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         1       you, Senator Foley.

         2                  Senator Hassell-Thompson.

         3                  SENATOR HASSELL-THOMPSON:    Thank

         4       you, Mr. President.

         5                  I rise to add my condolence to that

         6       of the members in this chamber for the

         7       catastrophe that has happened in Haiti and, as

         8       we have heard, continues with this latest

         9       earthquake that has rocked that island.

        10                  Let me say first that New Yorkers

        11       and people across the world have responded

        12       very quickly.  And it is very important that

        13       we continue our efforts.  We can talk and

        14       there's a lot to be said about the

        15       relationship that we have had with Haiti, but

        16       that's a subject for another day.  Today is

        17       about the deepest condolences for those

        18       families who continue to have missing

        19       relatives that they cannot find, for family

        20       members that they know who are lost to them

        21       forever.

        22                  I had the opportunity to realize,

        23       during this catastrophe, the size and the

        24       growing size of Haitian members that live in



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         1       my communities.  And I visited an all-Haitian

         2       church where they speak only Creole and had

         3       the pastor, the celebrant of that Episcopal

         4       church translate my message into Creole.  And

         5       to have those people come and embrace me not

         6       because I had done anything, but just because

         7       I cared.  And I think that that's what people

         8       want more than anything for us to acknowledge,

         9       that we care about human suffering.

        10                  And so that as we put information

        11       on our websites and as we go forth and try to

        12       do that which is appropriate, I thank this

        13       body for the moments that we have taken today

        14       in this session to thank those who have opened

        15       their hearts and their pocketbooks, but more

        16       for those who have yet to do so and know that

        17       it is no robbery to share that which they

        18       have.

        19                  Thank you, Mr. President.

        20                  ACTING PRESIDENT BRESLIN:    Thank

        21       you, Senator Hassell-Thompson.

        22                  Senator Diaz.

        23                  SENATOR DIAZ:    Thank you,

        24       Mr. Chairman.



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         1                  We in the Hispanic community have

         2       seen, Mr. Chairman, many destruction, many

         3       incidents of catastrophic magnitude:  Puerto

         4       Rico, Santo Domingo, Mexico, Cuba, Honduras,

         5       Columbia, Nicaragua, you name it.  We have

         6       seen big things happen.  But like this thing

         7       that happened in Haiti, nothing is equal to

         8       that.  This has been so far the biggest thing

         9       that we have seen.  And they said about

        10       200,000 lives have been lost, more than a

        11       million people have been affected -- children

        12       have been left orphaned.  So it is a big

        13       problem that we are facing in Haiti.

        14                  But nonetheless, it is so

        15       magnificent, Mr. President and ladies and

        16       gentlemen, it is so great, the response of the

        17       people of the State of New York and the City

        18       of New York.

        19                  The district that I represent, the

        20       32nd Senatorial District, there are poor

        21       people there, people unemployed.  They have

        22       senior citizens, they don't have that much

        23       money.  But Saturday, this past Saturday, we

        24       did a street marathon on Southern Boulevard in



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         1       the Bronx, together with the office of the

         2       Bronx Borough President, Ruben Diaz, Jr., and

         3       the office of the Assemblyman Marcos Crespo,

         4       the New York Hispanic Clergy Organization,

         5       Radio Vision Cristiana Internacional, and the

         6       cooperation of the New York City Police

         7       Department under the direction of the Bronx

         8       Borough Commander, Chief Purtell.

         9                  You have to see the outpouring of

        10       people going there.  On that day, five hours,

        11       between the hours of 12:00 to 5:00, we placed

        12       there two containers, 40-foot containers.

        13       They got filled up, and they were shipped to

        14       Santo Domingo so they will be taken to Haiti.

        15       And we raised more than $50,000 that day

        16       there.

        17                  It was so great that even the

        18       Governor, I have to thank the Governor of the

        19       State of New York, David Paterson, he showed

        20       up there.  And he showed his concern by

        21       appearing in that street marathon and

        22       contributing, with a thousand dollars, to that

        23       marathon in the Bronx this past Saturday.

        24                  So we all could do something



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         1       to help.  No matter what we do, we

         2       wouldn't be able to help the whole

         3       situation.  But that should not stop us

         4       from saying we've got to do something.

         5       My staff, the staff of my Senatorial --

         6       my district staff, you've got to see

         7       people coming out.

         8                  And I thank the people of the

         9       Bronx, and I thank this institution, the

        10       office of the Bronx Borough President, the

        11       New York Hispanic Clergy Organization,

        12       Assemblyman Marcos Crespo, the New York City

        13       Police Department, Radio Vision Cristiana

        14       Internacional and the Governor of the State of

        15       New York, David Paterson, for showing there,

        16       for helping us, and for showing that they

        17       care.

        18                  And today I appreciate that Senator

        19       Parker is introducing this resolution.

        20       Because this is a time for unity, this is a

        21       time for concern, a time to do something.

        22                  And I have also to recognize that

        23       the office of Senator John Sampson gave me a

        24       big hand in coordinating this activity on



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         1       Saturday.  So also to Senator Sampson I have

         2       to appreciate, to express my appreciation for

         3       all the help that they did Saturday in the

         4       Bronx.

         5                  Thank you.

         6                  ACTING PRESIDENT BRESLIN:    Thank

         7       you, Senator Diaz.

         8                  Senator Craig Johnson.

         9                  SENATOR CRAIG JOHNSON:    Thank

        10       you, Mr. President.

        11                  I also rise to echo my colleagues'

        12       sentiments and statements about supporting the

        13       efforts not just today to help the victims of

        14       this terrible tragedy and disaster, but also

        15       to ensure that as the days and weeks and

        16       months go on, we continue those efforts.

        17                  Because it's not -- right now we're

        18       still, incredibly, in the rescue phase.  Every

        19       day, it seems, there's incredible story of

        20       survival that comes out of either

        21       Port-au-Prince or the areas surrounding the

        22       capital.  Just last night two young children

        23       were pulled out of the wreckage.  So hope

        24       continues to live on that we can find more



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         1       survivors.

         2                  But when those rescue phases turn

         3       to recovery phases, we need to make sure that

         4       our aid -- whether it's a simple charitable

         5       donation to your local Red Cross, whether it's

         6       a state initiative, whether it's a national

         7       initiative, we need to help the residents of

         8       this island nation, an island nation that even

         9       before this earthquake was on the brink.

        10                  A number of us, many of us here,

        11       maybe all of us in this great chamber have

        12       constituents who are either from or have

        13       relatives who are Haitian, who live in Haiti.

        14       Long Island is seeing its growing immigrant

        15       population comes from the island of Haiti.  In

        16       my district, in areas like Westbury and

        17       Elmont, the Haitian community is a strong,

        18       vibrant community that contributes so much to

        19       the work and the play of Nassau County.

        20                  But as a result, this tragedy has

        21       truly struck home.  And so my thoughts today

        22       are with Lionel Sannon, a gentleman who lives

        23       in Westbury who lost over 20 relatives in this

        24       earthquake.  His wife happened to luckily



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         1       survive the earthquake and is now in the

         2       islands of the Bahamas, but we need to help

         3       bring her back and bring her back to Nassau

         4       County.  It is vital that she comes back and

         5       receives medical care close to home so this

         6       family can start to heal.

         7                  And so as we move forward, as we do

         8       these food drives, as we do these financial

         9       drives today, we need keep doing them beyond

        10       today.  Because sometimes that happens.

        11       Sometimes, when the news cameras get shut off

        12       and the reporters come home, tragedy lives on.

        13       And tragedy will live on in Haiti and those

        14       Haitians who live in our neighborhoods.

        15                  And so I hope that in the coming

        16       months we can continue to work together to

        17       provide the necessary resources to help this

        18       island recover and help its citizens, who are

        19       now our citizens, heal.

        20                  Thank you very much.

        21                  ACTING PRESIDENT BRESLIN:    Thank

        22       you, Senator Johnson.

        23                  Senator Stewart-Cousins.

        24                  SENATOR STEWART-COUSINS:    Thank



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         1       you, Mr. President.

         2                  I also rise to give my condolences

         3       and talk about so much of what has happened,

         4       and certainly in conjunction with Dr. King and

         5       how his inspiration allows us a vision that

         6       goes far beyond what it is that happens in our

         7       lives.

         8                  What happened in Haiti is so much

         9       intertwined with what we have celebrated and

        10       what we continue to celebrate as humanity.

        11       When I listen to Dr. King's whole "Dream"

        12       speech, he talked about, at that time, Negroes

        13       on the island of poverty.  And when you look

        14       at Haiti and you see the impoverished nation

        15       that we are all gazing upon, we realize how

        16       much work we have to do.

        17                  And so it is important that we

        18       realize that in fulfilling Dr. King's dream,

        19       we are able to look at nations and people and

        20       understand that our work will never be done

        21       until that level of poverty is eradicated.

        22                  I also rose to talk about a pastor

        23       from my district -- Hawthorne, New York -- who

        24       lost his life in Haiti.  He was trapped for



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         1       55 hours under the rubble of a fallen hotel.

         2       They got him back to Florida only for him to

         3       die.  His name was Reverend Clinton Rabb.

         4                  And I raise his name so that we can

         5       understand that the Clinton Rabbs of the

         6       world, the Reverend Clinton Rabbs of the

         7       world, were in Haiti doing work in that

         8       country to uplift that nation to do things

         9       that we never thought about doing until now.

        10                  And so we must understand that we

        11       have a bigger mission, a bigger vision, a

        12       bigger responsibility.  And as we work to

        13       rescue the people and rescue what we can and

        14       rebuild, we have to do it on a daily basis

        15       from our seats here, from our communities and

        16       throughout the nation.  It is a fitting

        17       tribute.

        18                  ACTING PRESIDENT BRESLIN:    Thank

        19       you, Senator Stewart-Cousins.

        20                  Are there any other Senators

        21       wishing to be heard on this resolution?

        22                  The question is then on the

        23       resolution.  All those in favor please signify

        24       by saying aye.



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         1                  (Response of "Aye.")

         2                  ACTING PRESIDENT BRESLIN:

         3       Opposed, nay.

         4                  (No response.)

         5                  ACTING PRESIDENT BRESLIN:    The

         6       resolution is adopted.

         7                  Senator Parker has indicated that

         8       the resolution is open to all members.  Anyone

         9       wishing not to be on the resolution please

        10       notify the desk.

        11                  Senator Smith.

        12                  SENATOR SMITH:    Thank you very

        13       much, Mr. President.

        14                  At this time may we please adopt

        15       the Resolution Calendar in its entirety.

        16                  ACTING PRESIDENT BRESLIN:    All

        17       those in favor of adopting the Resolution

        18       Calendar please signify by saying aye.

        19                  (Response of "Aye.")

        20                  ACTING PRESIDENT BRESLIN:

        21       Opposed, nay.

        22                  (No response.)

        23                  ACTING PRESIDENT BRESLIN:    The

        24       Resolution Calendar is adopted.



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         1                  Senator Smith.

         2                  SENATOR SMITH:    Mr. President,

         3       there will be an immediate meeting of the

         4       Finance Committee in Room 332, followed by an

         5       immediate meeting of the Rules Committee.

         6                  Pending the return of the Rules

         7       Committee, may we please stand at ease.

         8                  ACTING PRESIDENT BRESLIN:    The

         9       Senate will stand at ease pending the return

        10       of the Finance Committee and the Rules

        11       Committee.

        12                  (Whereupon, the Senate stood at

        13       ease at 1:11 p.m.)

        14                  (Whereupon, the Senate reconvened

        15       at 1:47 p.m.)

        16                  ACTING PRESIDENT BRESLIN:

        17       Senator Klein.

        18                  SENATOR KLEIN:    Mr. President, I

        19       just want to alert the members that there will

        20       be an immediate Labor Committee meeting in

        21       Room 332.

        22                  ACTING PRESIDENT BRESLIN:    There

        23       will be an immediate meeting of the Labor

        24       Committee in Room 332.



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         1                  The Senate remains at ease.

         2                  (Whereupon, the Senate stood at

         3       ease at 1:48 p.m.)

         4                  (Whereupon, the Senate reconvened

         5       at 2:06 p.m.)

         6                  ACTING PRESIDENT BRESLIN:

         7       Senator Klein.

         8                  SENATOR KLEIN:    Mr. President, I

         9       believe there's a report of the Rules

        10       Committee at the desk.

        11                  I move that we adopt the report of

        12       the Rules Committee at this time.

        13                  ACTING PRESIDENT BRESLIN:    The

        14       Secretary will read.

        15                  THE SECRETARY:    Senator Smith,

        16       from the Committee on Rules, reports the

        17       following bills:

        18                  Senate Print 6439, by Senator

        19       Squadron, an act to amend the Public Officers

        20       Law;

        21                  And Senate Print 6457, by Senator

        22       Schneiderman, an act to amend the Executive

        23       Law.

        24                  Both bills ordered direct to third



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         1       reading.

         2                  ACTING PRESIDENT BRESLIN:    All

         3       those in favor of accepting the report of the

         4       Rules Committee please signify by saying aye.

         5                  (Response of "Aye.")

         6                  ACTING PRESIDENT BRESLIN:

         7       Opposed, nay.

         8                  (No response.)

         9                  ACTING PRESIDENT BRESLIN:    The

        10       report of the Rules Committee is adopted.

        11                  Senator Klein.

        12                  SENATOR KLEIN:    Mr. President, at

        13       this time could we please move to a reading of

        14       the calendar.

        15                  ACTING PRESIDENT BRESLIN:    The

        16       Secretary will read.

        17                  THE SECRETARY:    Calendar Number

        18       4, by Senator Klein, Senate Print 1904A, an

        19       act to amend the Executive Law, in relation to

        20       maximum age.

        21                  ACTING PRESIDENT BRESLIN:    Read

        22       the last section.

        23                  THE SECRETARY:    Section 2.  This

        24       act shall take effect immediately.



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         1                  ACTING PRESIDENT BRESLIN:    Call

         2       the roll.

         3                  (The Secretary called the roll.)

         4                  ACTING PRESIDENT BRESLIN:

         5       Announce the results.

         6                  THE SECRETARY:    Ayes, 60.

         7                  ACTING PRESIDENT BRESLIN:    The

         8       bill is passed.

         9                  Senator Klein.

        10                  SENATOR KLEIN:    Mr. President, at

        11       this time could we please move to a reading of

        12       the supplemental calendar.

        13                  ACTING PRESIDENT BRESLIN:    The

        14       Secretary will read.

        15                  THE SECRETARY:    Calendar Number

        16       17, by Senator Squadron, Senate Print 6439, an

        17       act to amend the Public Officers Law.

        18                  SENATOR LIBOUS:    Lay it aside.

        19                  ACTING PRESIDENT BRESLIN:    The

        20       bill is laid aside.

        21                  The Secretary will continue to

        22       read.

        23                  THE SECRETARY:    In relation to

        24       Calendar Number 18, Senator Schneiderman moves



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         1       to discharge, from the Committee on Rules,

         2       Assembly Bill Number 9544 and substitute it

         3       for the identical Senate Bill Number 6457,

         4       Third Reading Calendar 18.

         5                  ACTING PRESIDENT BRESLIN:

         6       Substitution ordered.

         7                  THE SECRETARY:    Calendar Number

         8       18, by Member of the Assembly Silver, Assembly

         9       Print Number 9544, an act to amend the

        10       Executive Law.

        11                  ACTING PRESIDENT BRESLIN:    Read

        12       the last section.

        13                  SENATOR LIBOUS:    Lay it aside.

        14                  ACTING PRESIDENT BRESLIN:    The

        15       bill is laid aside.

        16                  Senator Klein, that completes the

        17       reading of the noncontroversial calendar.

        18                  SENATOR KLEIN:    Mr. President, at

        19       this time can we please move to the reading of

        20       the controversial supplemental calendar.

        21                  ACTING PRESIDENT BRESLIN:    If the

        22       Secretary would please ring the bell, members

        23       are asked to come to the chamber for the

        24       controversial reading of the calendar.



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         1                  The Secretary will read.

         2                  THE SECRETARY:    Calendar Number

         3       17, by Senator Squadron, Senate Print 6439, an

         4       act to amend the Public --

         5                  SENATOR LIBOUS:    Explanation,

         6       please.

         7                  ACTING PRESIDENT BRESLIN:

         8       Senator Squadron, an explanation has been

         9       requested.

        10                  SENATOR SQUADRON:    Thank you,

        11       Mr. President.

        12                  This bill is meant to clarify some

        13       gaps in state law.  It would create a clear

        14       standard on activity that is undeniably wrong.

        15       I think all of us in the chamber would know

        16       what's wrong and should unquestionably be

        17       prohibited.  Unfortunately, under current law,

        18       it's not, in a clear way.

        19                  What that bill does is it says you

        20       can't use your government resources for

        21       outside compensated business activities.  It's

        22       pretty clear.  It says it in a couple of ways.

        23                  It clarifies the Code of Ethics,

        24       which currently has an unwarranted privileges



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         1       reference.  And instead of just leaving it at

         2       that, it makes it very clear you can't use

         3       your government resources for outside

         4       compensated business under the Code of Ethics.

         5                  In addition, in the Penal Law it

         6       makes clear that an ongoing scheme -- it

         7       actually makes it an ongoing scheme to defraud

         8       the government.  Using your government

         9       resources for outside business in a value

        10       greater than $1,000 would be a violation under

        11       the Penal Law.

        12                  Both of these provisions, both the

        13       unwarranted privileges under the Code of

        14       Ethics and the standard of defrauding the

        15       government under the Penal Law, have been used

        16       in Albany in recent times or referenced.

        17                  And they've also, as we all know,

        18       sometimes not been used.  And we know that

        19       some recent cases have not happened in state

        20       court at all, have not happened under the

        21       Legislative Ethics Commission at all.  There's

        22       a gap in state law when it comes to being

        23       clear on this behavior that we all know

        24       shouldn't happen, we all know in our bones



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         1       should be prohibited.

         2                  The bill's intent is really not

         3       controversial.  Its provisions are not

         4       surprising.  It is a little bit shocking that

         5       the provisions don't currently exist in state

         6       law.  And it's a little bit shocking that this

         7       gap in state law has been exploited in the

         8       ways that it has.

         9                  You know, I'm sure there will be

        10       some questions on this bill and on the next

        11       bill that we're going to discuss.  And I thank

        12       Senator Sampson and Senator Schneiderman and

        13       Senator Krueger and a lot of others who have

        14       worked on these issues for a long time.

        15                  And as we begin this debate, I'm

        16       reminded that in Albany everyone is in favor

        17       of ethics enforcement so long as there are no

        18       laws to enforce ethics.  I think that's how we

        19       got this gap in state law.  And I think that

        20       by passing this bill and hopefully the next

        21       bill, we'll go a long way in filling that gap.

        22                  Thank you, Mr. President.

        23                  ACTING PRESIDENT BRESLIN:

        24       Senator DeFrancisco.



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         1                  SENATOR DeFRANCISCO:    Yes, would

         2       the Senator yield to a couple of questions?

         3                  ACTING PRESIDENT BRESLIN:

         4       Senator Squadron, will you yield for a couple

         5       of questions?

         6                  SENATOR SQUADRON:    Sure.

         7                  ACTING PRESIDENT BRESLIN:

         8       Senator DeFrancisco, you may proceed.

         9                  SENATOR DeFRANCISCO:    You had

        10       indicated that it's shocking that this type of

        11       conduct is not already prohibited under the

        12       law.  Have there been any cases attempting to

        13       prosecute somebody under this law as it now

        14       exists for the circumstances that you're

        15       trying to clarify?

        16                  SENATOR SQUADRON:    Through you,

        17       Mr. President, to be clear, it is not

        18       explicitly prohibited under state law.

        19                  I would make the argument that the

        20       "unwarranted privileges" phrase in the Code of

        21       Ethics and the defrauding-the-government

        22       component of the Penal Law both potentially

        23       could be used.

        24                  I also, I think, would point to the



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         1       fact that we've had some recent cases in the

         2       federal courts, not in the state courts or

         3       under the Legislative Ethics Commission.

         4                  ACTING PRESIDENT BRESLIN:

         5       Senator DeFrancisco.

         6                  SENATOR DeFRANCISCO:    Would he

         7       yield to the question again.

         8                  ACTING PRESIDENT BRESLIN:

         9       Senator Squadron, will you continue to yield

        10       to Senator DeFrancisco?

        11                  SENATOR SQUADRON:    I'd be happy

        12       to.

        13                  ACTING PRESIDENT BRESLIN:

        14       Senator DeFrancisco.

        15                  SENATOR DeFRANCISCO:    The

        16       question was, simply, have there been

        17       instances where this type of conduct has been

        18       attempted to be prosecuted under the existing

        19       statute that for some reason was unsuccessful

        20       and therefore the statute needs to be

        21       clarified?

        22                  ACTING PRESIDENT BRESLIN:

        23       Senator Squadron.

        24                  SENATOR SQUADRON:    Through you,



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         1       Mr. President, if Senator DeFrancisco is

         2       thinking of a specific case, I would be happy

         3       to discuss it.

         4                  I know there have been some cases

         5       in which this has been referenced by the

         6       Inspector General and others.  But if there's

         7       a specific case that he's interested in, I'd

         8       be happy to discuss it.

         9                  ACTING PRESIDENT BRESLIN:

        10       Senator DeFrancisco.

        11                  SENATOR DeFRANCISCO:    I'll just

        12       make a point and I'll have another question.

        13                  I'm not looking for any specific

        14       case.  I'm asking if the sponsor, who believes

        15       that this language is necessary to form some

        16       kind of clarification, I'm just asking whether

        17       or not he knows of any case where there was a

        18       difficulty in prosecuting the conduct that he

        19       wants to prosecute -- or to clarify it in the

        20       statute, whether there's been any difficulty

        21       of any case that he knows of.

        22                  ACTING PRESIDENT BRESLIN:

        23       Senator Squadron.

        24                  SENATOR SQUADRON:    Just



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         1       confirming.  And, you know, I think that what

         2       you see is as we're coming and there's no

         3       obvious answer to what the Senator is asking,

         4       is that we don't have clarity in the law.  And

         5       we have, as I have said, seen cases where this

         6       has clearly happened and clearly not been

         7       prosecuted under state law nor pursued under

         8       the Code of Ethics.

         9                  ACTING PRESIDENT BRESLIN:

        10       Senator DeFrancisco.

        11                  SENATOR DeFRANCISCO:    You had

        12       indicated -- excuse me.

        13                  ACTING PRESIDENT BRESLIN:

        14       Through the chair.

        15                  SENATOR DeFRANCISCO:    Would the

        16       Senator yield to another question?

        17                  ACTING PRESIDENT BRESLIN:    Do you

        18       yield, Senator Squadron?

        19                  SENATOR SQUADRON:    Sure thing.

        20                  SENATOR DeFRANCISCO:    The

        21       language that's in the bill talks about

        22       unwarranted privileges being taken by someone.

        23       What's the definition of warranted?  Is there

        24       a definition under the statute, so that



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         1       anybody that might be faced with questions

         2       under this statute could at least explain --

         3       or at least know what is warranted and what's

         4       not?

         5                  ACTING PRESIDENT BRESLIN:

         6       Senator Squadron.

         7                  SENATOR SQUADRON:    Well, I'd like

         8       to thank Senator DeFrancisco, actually, for

         9       making that point.  Although I'd like to

        10       clarify something.

        11                  Unwarranted privileges is actually

        12       in the law currently.  It's not modified by

        13       this bill.  Although I do, as I say, want to

        14       thank Senator DeFrancisco for pointing out

        15       that as currently written that language I

        16       don't think has the clarity that we will have

        17       once we pass this -- hopefully pass this bill

        18       into law.

        19                  ACTING PRESIDENT BRESLIN:

        20       Senator DeFrancisco.

        21                  SENATOR DeFRANCISCO:    Would the

        22       Senator continue to yield?

        23                  ACTING PRESIDENT BRESLIN:

        24       Senator Squadron, would you continue to yield



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         1       for another question by Senator DeFrancisco?

         2                  SENATOR SQUADRON:    Yes.

         3                  SENATOR DeFRANCISCO:    The statute

         4       apparently prohibits someone securing

         5       unwarranted privileges, including but not

         6       limited to misappropriation to himself,

         7       herself, or others of property, services or

         8       other resources for private business or other

         9       compensated nongovernmental processes.

        10                  Does this statute prohibit the

        11       unwarranted privileges being accepted for

        12       personal use?

        13                  ACTING PRESIDENT BRESLIN:

        14       Senator Squadron.

        15                  SENATOR SQUADRON:    This statute

        16       as written -- and again, I know Senator

        17       DeFrancisco read the language.  I will read a

        18       smaller section of the language for clarity:

        19       "for private business or other compensated

        20       nongovernmental purposes."  I think that's

        21       clear.

        22                  SENATOR DeFRANCISCO:    All right.

        23       So would he yield to another question?

        24                  ACTING PRESIDENT BRESLIN:



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         1       Senator Squadron, would you continue to yield

         2       for another question?

         3                  SENATOR SQUADRON:    I will.

         4                  ACTING PRESIDENT BRESLIN:

         5       Senator Squadron will yield.  You may proceed.

         6                  SENATOR DeFRANCISCO:    There's

         7       nothing in this statute as you've modified it

         8       that would prohibit someone from taking

         9       unwarranted privileges for personal use as

        10       opposed to business or compensating uses.

        11                  ACTING PRESIDENT BRESLIN:

        12       Senator Squadron.

        13                  SENATOR SQUADRON:    To be clear,

        14       Senator DeFrancisco asked that question quite

        15       specifically.  As modified, I agree that this

        16       statute would not change the definition of

        17       unwarranted privileges as applies to other

        18       uses.

        19                  It's also, I think, quite clear

        20       that this is not limiting language, it is

        21       clarifying language.  And so, as written, it

        22       would not modify the definition of unwarranted

        23       privileges other than in the way that it does,

        24       which is with this clarification.



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         1                  ACTING PRESIDENT BRESLIN:

         2       Senator DeFrancisco.

         3                  SENATOR DeFRANCISCO:    Would the

         4       Senator continue to yield?

         5                  ACTING PRESIDENT BRESLIN:

         6       Senator Squadron, will you continue to yield?

         7                  SENATOR SQUADRON:    Yes.

         8                  ACTING PRESIDENT BRESLIN:

         9       Senator DeFrancisco.

        10                  SENATOR DeFRANCISCO:    So, Senator

        11       Squadron, are you saying that the existing

        12       statute before this amendment would prohibit

        13       someone from obtaining unwarranted privileges

        14       for personal use, under the language as it

        15       currently exists?

        16                  ACTING PRESIDENT BRESLIN:

        17       Senator Squadron.

        18                  SENATOR SQUADRON:    Through you,

        19       Mr. President, as you may know, I'm relatively

        20       new here still, although it feels less new

        21       every day.  And this unwarranted-privileges

        22       statute was passed into law before I was here.

        23       I am not an attorney.  In terms of discussing

        24       the existing law that's not being modified, I



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         1       certainly wouldn't put myself forward as the

         2       authority.

         3                  As a Senator in this body that is

         4       certainly modifying law around that language,

         5       I think that it's pretty clear from the

         6       existing law that all unwarranted privileges

         7       for himself, herself, or others are prohibited

         8       under this statute.

         9                  I also, though, would point out

        10       that it has been difficult to prosecute or in

        11       this case to follow up on violations of the

        12       statute as currently written.  And again, this

        13       clarification would do it.

        14                  I think that, again, the cases that

        15       you see -- including Senator Bruno and

        16       others -- that are not pursued under state law

        17       and are in fact pursued in federal court would

        18       call out loudly for this clarification.

        19                  ACTING PRESIDENT BRESLIN:

        20       Senator DeFrancisco.

        21                  SENATOR DeFRANCISCO:    Would the

        22       Senator yield to one additional question.

        23                  ACTING PRESIDENT BRESLIN:

        24       Senator Squadron, would you yield for one last



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         1       question?

         2                  SENATOR SQUADRON:    One or more.

         3                  SENATOR DeFRANCISCO:    One or

         4       more?  Okay, thank you.

         5                  Senator, with respect to

         6       Section A(ii), this is a new section that

         7       prohibits someone from defrauding the state by

         8       making use of property, et cetera, et cetera.

         9       Correct?

        10                  SENATOR SQUADRON:    That is

        11       correct.

        12                  SENATOR DeFRANCISCO:    Would he

        13       answer one other --

        14                  ACTING PRESIDENT BRESLIN:

        15       Senator Squadron --

        16                  SENATOR DeFRANCISCO:    -- one

        17       other question, please.

        18                  ACTING PRESIDENT BRESLIN:

        19       Senator Squadron, would you yield for one more

        20       last question?

        21                  SENATOR SQUADRON:    Sure.  That

        22       may be a statement that needs clarification,

        23       so of course I'd be happy to.

        24                  SENATOR DeFRANCISCO:    Senator



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         1       Squadron, isn't there existing laws

         2       prohibiting anyone from defrauding the

         3       government or to committing fraud by use of a

         4       position?

         5                  In other words, do you need another

         6       statute saying the same thing as existing law?

         7       Fraud is illegal, isn't it, presently?

         8                  ACTING PRESIDENT BRESLIN:

         9       Senator Squadron.

        10                  SENATOR SQUADRON:    Through you,

        11       Mr. President, I do hope this is the final

        12       question, if only because I think it's a full

        13       circle and really defines the need for this

        14       law.

        15                  Yes, I do believe, just as I do

        16       under unwarranted privileges -- and I don't

        17       just believe it, it's a matter of undeniable

        18       fact that defrauding the government is a

        19       crime.

        20                  I think it's also a matter of

        21       undeniable fact that you have seen this

        22       activity repeatedly not be pursued under state

        23       law.  And that comes, in my view, from any

        24       number of issues.  I think that the bill we're



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         1       about to debate will hopefully help with some

         2       of them.

         3                  But this law will fill that gap in

         4       state law that I think has too often led to a

         5       lack of clarity where, with behavior like

         6       this -- and it's possible that Senator

         7       DeFrancisco and others disagree with me.  My

         8       view is that with behavior like this, you

         9       should be as clear as possible.  I think

        10       that's better for us as public officers.  I

        11       think that's better for the state in terms of

        12       being able to ensure integrity among its

        13       public officers.

        14                  ACTING PRESIDENT BRESLIN:

        15       Senator DeFrancisco.

        16                  SENATOR DeFRANCISCO:    On the

        17       bill.

        18                  ACTING PRESIDENT BRESLIN:

        19       Senator DeFrancisco on the bill.

        20                  SENATOR DeFRANCISCO:    With

        21       respect to this bill, it seems to me it's a

        22       bill that may be good political fodder, but it

        23       really is not necessary.

        24                  If the existing law is that you



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         1       can't take unwarranted privileges for personal

         2       use, then certainly the law would also

         3       prohibit not taking unwarranted privileges for

         4       purposes of your business or for compensation.

         5       I mean, it just follows logically.

         6                  The fact that some one prosecutor

         7       chooses not to prosecute, for whatever reason,

         8       in state court under this provision or another

         9       provision doesn't change the fact that the law

        10       already prohibits this type of conduct.

        11                  Similarly, fraud is fraud is fraud

        12       is fraud.  And to say that you're going to

        13       prohibit someone from defrauding the

        14       government, well, it's already a statute and

        15       it's already a statute that could be

        16       prosecuted.  The fact that someone chooses not

        17       to, the prosecutor chooses not to, that's

        18       fine.

        19                  So the point I would like to make,

        20       in this day and age of reform and trying to

        21       make certain that we make sure that everybody

        22       who's in public office is under the utmost

        23       possible scrutiny for any possible reason,

        24       even though there's existing laws that already



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         1       prohibit that -- well, this may make good

         2       political sense, but as a practical matter I

         3       think it's superfluous, it's not needed, and

         4       that is the point I would like to make.

         5                  Thank you.

         6                  ACTING PRESIDENT BRESLIN:    Thank

         7       you, Senator DeFrancisco.

         8                  Senator Saland.

         9                  SENATOR SALAND:    Thank you,

        10       Mr. President.  Would the sponsor yield?

        11                  ACTING PRESIDENT BRESLIN:

        12       Senator Squadron, do you yield for a question

        13       from Senator Saland?

        14                  SENATOR SQUADRON:    I will.

        15                  SENATOR SALAND:    Senator

        16       Squadron, if I understood you correctly, the

        17       language which you have added in lines 7

        18       through 10 is intended to, in effect, flesh

        19       out or make more understandable what

        20       constitutes an unwarranted privilege under the

        21       existing law.  Is that --

        22                  ACTING PRESIDENT BRESLIN:

        23       Senator Squadron.

        24                  SENATOR SQUADRON:    I'd say that



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         1       lines 7 through 10 clarify one sort of

         2       unwarranted privilege that is particularly

         3       glaring and has, shockingly, not been pursued

         4       even when taken.

         5                  ACTING PRESIDENT BRESLIN:

         6       Senator Saland.

         7                  SENATOR SALAND:    If Senator

         8       Squadron were to continue to yield.

         9                  ACTING PRESIDENT BRESLIN:    Will

        10       you continue to yield, Senator Squadron?

        11                  SENATOR SQUADRON:    Of course.

        12                  SENATOR SALAND:    You make

        13       reference to property, services, and other

        14       resources.  I know what property is.  I know

        15       what services are.  I'm not quite sure what

        16       other resources are.  What is it that you

        17       intend to be covered by "other resources"?

        18                  ACTING PRESIDENT BRESLIN:

        19       Senator Squadron.

        20                  SENATOR SQUADRON:    Well, I think

        21       "other resources" would be government

        22       resources that are neither property nor

        23       services.

        24                  ACTING PRESIDENT BRESLIN:



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         1       Senator Saland.

         2                  SENATOR SALAND:    If you'd

         3       continue to yield, would you care to give me a

         4       couple of examples of what might be those

         5       other resources?

         6                  ACTING PRESIDENT BRESLIN:    Will

         7       you continue to yield, Senator Squadron?

         8                  SENATOR SQUADRON:    Yes.  Yes, I

         9       will.

        10                  ACTING PRESIDENT BRESLIN:    You

        11       may proceed, Senator Saland.

        12                  SENATOR SALAND:    Might you

        13       provide me with a couple of examples of those

        14       other governmental --

        15                  ACTING PRESIDENT BRESLIN:

        16       Senator Squadron.

        17                  SENATOR SQUADRON:    I'd be happy

        18       to describe that value of the part of the law,

        19       which is, to be quite serious, a clear and

        20       blanket prohibition on government resources.

        21                  As Senator Saland points out, we

        22       know what property is, we know what services

        23       is.  Certainly without trying to come up out

        24       of thin air right now with an example of an



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         1       additional government resource, I would say

         2       that the reason for that language is to ensure

         3       that neither property nor services are read

         4       through a pinhole.

         5                  SENATOR SALAND:    I'm sorry, I

         6       didn't hear the conclusion of the Senator's

         7       comment.

         8                  ACTING PRESIDENT BRESLIN:

         9       Senator Squadron, Senator Saland has indicated

        10       he did not hear the last part of your answer.

        11                  SENATOR SQUADRON:    That language

        12       is there to ensure that neither property nor

        13       services are read through a pinhole, to make

        14       clear this is a broad prohibition on the use

        15       of government resources of all forms.

        16                  SENATOR SALAND:    Would the

        17       Senator continue to yield?

        18                  ACTING PRESIDENT BRESLIN:    Do you

        19       continue to yield, Senator Squadron?

        20                  SENATOR SQUADRON:    I'd be happy

        21       to.

        22                  SENATOR SALAND:    Would other

        23       resources also constitute communications

        24       seeking outcomes with government agencies?



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         1                  ACTING PRESIDENT BRESLIN:

         2       Senator Squadron.

         3                  SENATOR SQUADRON:    I think it

         4       would depend what resources were used in those

         5       communications.  I don't think that on its

         6       face, in all cases, the example described

         7       would be prohibited.

         8                  SENATOR SALAND:    If the Senator

         9       would continue to yield.

        10                  ACTING PRESIDENT BRESLIN:

        11       Senator Squadron, will you continue to yield?

        12                  SENATOR SQUADRON:    Yes.

        13                  SENATOR SALAND:    Senator

        14       Squadron, as you know, we all from time to

        15       time are called upon to communicate with a

        16       variety of government agencies.  We do that in

        17       our official capacity as a state legislator.

        18                  Some of us have occupations or are

        19       involved in activities that are other than the

        20       one we serve in as we function here as a

        21       legislator.  And if we contact a state agency,

        22       say for example I -- and I happen to be a

        23       lawyer -- I contact a state agency on behalf

        24       of a former client or I'm a businessperson, I



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         1       contact that state agency on behalf of a

         2       former business associate, seeking either to

         3       set up a meeting between that individual and

         4       that particular agency, does that constitute

         5       an unwarranted privilege whereby I'm seeking

         6       to somehow or other gain by reason of my

         7       office?

         8                  ACTING PRESIDENT BRESLIN:

         9       Senator Squadron.

        10                  SENATOR SQUADRON:    I'd like to

        11       say that I'm reluctant to define here today

        12       the entire meaning of unwarranted privileges

        13       as it's existed since passed into law.  I

        14       certainly don't have its legislative history.

        15       I do not have a canonical record in front of

        16       me of its definition.

        17                  I would say, however, in the

        18       example you cited, you suggested former.  So

        19       it could be that pointing you to line 9 and

        20       10, the reference to private business or other

        21       compensated nongovernmental purpose, might

        22       lend some guidance there in terms of the new

        23       language.

        24                  In terms of the definition of



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         1       unwarranted privileges as it exists and has

         2       existed, I'm going to have to leave that to a

         3       different day.

         4                  ACTING PRESIDENT BRESLIN:

         5       Senator Saland.

         6                  SENATOR SALAND:    Well, that --

         7       I'm sorry, did you say you have to leave that

         8       to another day?  Is that what you said?

         9                  ACTING PRESIDENT BRESLIN:

        10       Senator Squadron, do you continue to yield for

        11       the additional question?

        12                  SENATOR SQUADRON:    I will.

        13                  And what I said was, as I said to

        14       Senator DeFrancisco, rather than look at this

        15       bill as creating a new limit on the definition

        16       of unwarranted privileges, I think that you

        17       should see this bill as a clarification of one

        18       of unwarranted privileges' meanings.

        19                  And so what I feel that we should

        20       focus on and talk about today is that new

        21       specific reference to unwarranted privileges,

        22       rather than try to define out all others that

        23       aren't necessarily discussed in the new

        24       language in this bill.



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         1                  ACTING PRESIDENT BRESLIN:

         2       Senator Saland.

         3                  SENATOR SALAND:    Thank you,

         4       Mr. President.  I would respectfully beg to

         5       differ with Senator Squadron, because I think

         6       it's critically important to --

         7                  ACTING PRESIDENT BRESLIN:

         8       Senator Saland, do you have a question for

         9       Senator Squadron?

        10                  SENATOR SALAND:    Yes, I do have a

        11       question for Senator Squadron.

        12                  ACTING PRESIDENT BRESLIN:    Then,

        13       Senator Squadron, do you continue to yield?

        14                  SENATOR SQUADRON:    I will.

        15                  SENATOR SALAND:    Your language

        16       talks in terms of both private business and

        17       other compensated nongovernmental purposes.

        18       And that's repeated in the next section, which

        19       is on the following page.

        20                  I'll come back to what I asked

        21       previously.  You have stated that it's your

        22       intention to provide some clarification to the

        23       section of existing law dealing with

        24       unwarranted privileges.  In order to do that,



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         1       you had to have some sense of what constituted

         2       an unwarranted privilege.

         3                  There's nobody in this chamber --

         4       no man, no woman, no member of this chamber --

         5       who does not deal with state agencies.  You

         6       deal with them in a multitude of capacities.

         7       And some of the people in this chamber wear

         8       more than one hat in their lives.

         9                  And when you make a call to a state

        10       agency for some purpose -- and that purpose

        11       may well constitute private business; you're

        12       doing it in your official capacity, it

        13       involves the private business of the person

        14       for whom you are making the phone call -- are

        15       you, by reason of your office, seeking an

        16       unwarranted privilege?  Particularly if you at

        17       one time or another had a relationship with

        18       that person in your business or professional

        19       life or have a relationship with that person

        20       in your existing business or professional

        21       life.

        22                  ACTING PRESIDENT BRESLIN:

        23       Senator Squadron.

        24                  SENATOR SQUADRON:    I'd like to be



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         1       clear about two things.  Through you, of

         2       course.

         3                  The first is my reluctance is on

         4       limiting the definition of unwarranted

         5       privileges, not in discussing its effect.  I

         6       think we actually have had some discussion

         7       today of the effect of unwarranted privileges.

         8       And you see my reluctance whenever there's

         9       sort of an attempt to limit what it might not

        10       include -- or to get a definitive statement

        11       from me of what it absolutely does include.  I

        12       don't think that's what we're talking about

        13       today.

        14                  I think what we're talking about is

        15       what it would include if this law passes.  And

        16       hopefully we all agree that including what

        17       would be added would be a good thing.

        18                  I would also, though, to the point

        19       Senator Saland was making, point to the

        20       misappropriation of such government resources

        21       and would say that while I certainly don't

        22       know the specifics of Senator Saland's

        23       hypothetical, I think that the simple fact of

        24       calling a state agency, even in one's outside



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         1       business dealings, would not necessarily

         2       constitute a misappropriation.  And I would

         3       ask each public officer to, in each case,

         4       ensure they are not misappropriating

         5       government resources when they're using them.

         6                  ACTING PRESIDENT BRESLIN:

         7       Senator Saland.

         8                  SENATOR SALAND:    On the bill,

         9       Mr. President.

        10                  ACTING PRESIDENT BRESLIN:

        11       Senator Saland on the bill.

        12                  SENATOR SALAND:    Mr. President, I

        13       came here assuming that this was a bill that

        14       could be readily explained.  I came here,

        15       concerned, as one of 62 members of this house

        16       and one who full well appreciates the

        17       sensitivity at times of issues that we are

        18       involved in because a number of us wear two

        19       hats.

        20                  I have found no comfort whatsoever

        21       in the responses that have been provided by

        22       Senator Squadron.  His intent certainly is

        23       noble.  I would hope that he might go back to

        24       the drawing board and come up with something



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         1       that really responds to the questions that

         2       I've asked.

         3                  How many times a week do the

         4       members of this chamber call or ask a member

         5       of their staff to call an agency?  And

         6       particularly for those of us who wear more

         7       than one hat, are we somehow or other

         8       misappropriating our office or taking

         9       advantage of our office under this language

        10       that has been proposed by Senator Squadron?

        11       I'm not sure I heard an answer that told me

        12       that that's okay.

        13                  So if, for example, those of us who

        14       do practice law, those of us who might be

        15       insurance agents, those of us who might have

        16       some other activity, you may be severely

        17       circumscribed in what you're permitted to do

        18       and not be able to fully represent the people

        19       in your district who come to you with any

        20       number of constituent issues that you

        21       routinely go to an agency to deal with.

        22       That's a very, very frightening thought.

        23                  Now, politically, this is a bill

        24       that the last thing you want to do is have to



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         1       explain why you would vote no.  But the bottom

         2       line is that this is a bill that is sorely

         3       lacking and puts at risk virtually anybody, as

         4       I said earlier, who does not exclusively serve

         5       as a legislator -- and may put at risk some

         6       who do exclusively serve as a legislator.

         7                  So I would only hope that when the

         8       day is done -- I know there's no same-as

         9       currently -- that we get to see a bill that

        10       deals with the problem that Senator Squadron

        11       would like to deal with but deals with it in a

        12       fashion that doesn't put at risk the public

        13       service of any number if not the majority of

        14       people in this chamber.

        15                  Thank you, Mr. President.

        16                  ACTING PRESIDENT BRESLIN:    Thank

        17       you, Senator Saland.

        18                  Are there any other Senators

        19       wishing to be heard?

        20                  Senator Diaz.

        21                  SENATOR DIAZ:    Thank you,

        22       Mr. President.  Would Senator Squadron yield

        23       for a question or two, please.

        24                  ACTING PRESIDENT BRESLIN:



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         1       Senator Squadron, will you yield to Senator

         2       Diaz for a question?

         3                  SENATOR SQUADRON:    Yes, I would.

         4                  ACTING PRESIDENT BRESLIN:

         5       Senator Diaz, you may proceed.

         6                  SENATOR DIAZ:    Thank you, Senator

         7       Squadron.

         8                  I'm reading the bill and it says no

         9       officer or employee of a state agency, member

        10       of the Legislature, or legislative employee

        11       should use or attempt to use his or her

        12       official position to secure unwarranted

        13       privilege.

        14                  Let me play Columbo here.  I know

        15       you already said something, but would you

        16       please tell me again what is unwarranted

        17       privilege?

        18                  ACTING PRESIDENT BRESLIN:

        19       Senator Squadron.

        20                  SENATOR SQUADRON:    The lines of

        21       the bill that Senator Diaz read there, just to

        22       point out, are not new language.  That's the

        23       existing law that was written.  The phrase

        24       "unwarranted privileges" does not start with



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         1       this bill.  It won't be passed into law if

         2       this bill is.  There is, in fact, a same-as,

         3       so I'm very hopeful it will be passed into

         4       law.

         5                  But "unwarranted privileges" has to

         6       this point, as I understand it, been

         7       interpreted by the Inspector General and

         8       others to mean inappropriately using one's

         9       position or government resources for something

        10       other than their appropriate and official use.

        11       That's my understanding in a broad sense of

        12       it.

        13                  I think that clearly it has not

        14       been a tool that's been used a lot.  And this

        15       bill will hopefully make it significantly

        16       clearer in the case of compensated outside

        17       business.

        18                  ACTING PRESIDENT BRESLIN:

        19       Senator Diaz.

        20                  SENATOR DIAZ:    Mr. President,

        21       would Senator Squadron yield for another

        22       question.

        23                  ACTING PRESIDENT BRESLIN:

        24       Senator Squadron, will you continue to yield



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         1       to Senator Diaz?

         2                  SENATOR SQUADRON:    Yes.

         3                  ACTING PRESIDENT BRESLIN:    You

         4       may proceed, Senator Diaz.

         5                  SENATOR DIAZ:    Senator Squadron,

         6       is the use of a vehicle a privilege?

         7                  SENATOR SQUADRON:    The use --

         8                  SENATOR DIAZ:    Of a state

         9       vehicle.

        10                  SENATOR SQUADRON:    Is the use of

        11       a state vehicle a privilege?  I would say that

        12       a state vehicle is certainly a government

        13       resource.

        14                  SENATOR DIAZ:    Do --

        15                  ACTING PRESIDENT BRESLIN:    Yes,

        16       Senator Diaz, you may continue.

        17                  SENATOR DIAZ:    So the use of a

        18       state vehicle, Senator Squadron, is a

        19       privilege?

        20                  ACTING PRESIDENT BRESLIN:

        21       Senator Squadron.

        22                  SENATOR DIAZ:    Yes or no?

        23                  SENATOR SQUADRON:    The use of a

        24       government vehicle is a privilege?  See, it



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         1       seems to me that the context of the use of it

         2       would be -- would have to be considered.  I

         3       think that currently a government vehicle is a

         4       government resource.  I think that the

         5       language of this bill would not affect that

         6       use in any way unless potentially it was being

         7       used for outside compensated business

         8       activities.  And I think in that case then it

         9       would, under this bill, likely be an

        10       unwarranted privilege, yes.

        11                  ACTING PRESIDENT BRESLIN:

        12       Senator Diaz.

        13                  SENATOR DIAZ:    Mr. President,

        14       would Senator Squadron yield for another

        15       question?

        16                  ACTING PRESIDENT BRESLIN:

        17       Senator Squadron, will you yield for another

        18       question?

        19                  SENATOR SQUADRON:    Yes.

        20                  SENATOR DIAZ:    Senator Squadron,

        21       so if I use a state vehicle to go or to do any

        22       other thing that is not related with my

        23       senatorial duties, like going to work to my

        24       second job, is that an unwarranted privilege?



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         1       Am I using the government property for

         2       personal reason, would that be included in

         3       there?

         4                  SENATOR SQUADRON:    Through you,

         5       Mr. President, I would point out that we're

         6       talking about the Code of Ethics under the

         7       Public Officers Law.  It is widely recognized

         8       and understood that de minimis, something of

         9       de minimis value is not covered.  So I think

        10       that there would be a question, again, as to

        11       in the hypothetical.

        12                  I would say this.  If you're using

        13       a state vehicle to sell ice cream all summer,

        14       I think that would be an unwarranted

        15       privilege, clearly, under this bill.  I think

        16       that as the hypotheticals move one way or the

        17       other, we'd have to look at them in a lot more

        18       specifics.

        19                  ACTING PRESIDENT BRESLIN:

        20       Senator Diaz.

        21                  SENATOR DIAZ:    Thank you,

        22       Mr. President.

        23                  Senator Squadron, I'm not talking

        24       about a hypothetical thing, I'm talking about



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         1       reality here.  And the reality is --

         2                  ACTING PRESIDENT BRESLIN:    Do you

         3       have a question, Senator Diaz?

         4                  SENATOR DIAZ:    Mr. President,

         5       would Senator Squadron yield for another

         6       question?

         7                  ACTING PRESIDENT BRESLIN:

         8       Senator Squadron, will you continue to yield?

         9                  SENATOR SQUADRON:    Yes.

        10                  SENATOR DIAZ:    Senator Squadron,

        11       I'm not talking about nothing in the air, I'm

        12       talking about reality.  The reality is that

        13       most of the criticism that this body has

        14       gotten that is that we are part-time workers

        15       and that this job is a part-time job.

        16                  I could assure you, Senator

        17       Squadron, that I not a part-time Senator.  I

        18       am every day in my office from 9:00 to

        19       whatever, attending to constituents.  But,

        20       Senator Squadron -- and I'm going to get to my

        21       question -- there are members of this body

        22       that really are part-time.  And that when

        23       session ends in June, they go to do their own

        24       business, to their private businesses.



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         1                  Now, some of them are using

         2       government property as a vehicle during the

         3       whole year.  Will you tell me that those

         4       members of this body that use their vehicle

         5       when session ends and they are going on their

         6       own business, to do their private business,

         7       they are violating the law?

         8                  SENATOR SQUADRON:    Again, through

         9       you, Mr. President, de minimis violations

        10       aside, I would say that today, yes.  If this

        11       law passes, yes.

        12                  SENATOR DIAZ:    Thank you,

        13       Senator.

        14                  Thank you, Mr. President.

        15                  ACTING PRESIDENT BRESLIN:    Thank

        16       you, Senator Diaz.

        17                  Senator Bonacic.

        18                  SENATOR BONACIC:    Thank you,

        19       Mr. Chairman.  Will the sponsor yield for one

        20       question?

        21                  ACTING PRESIDENT BRESLIN:

        22       Senator Squadron, will you yield for one

        23       question from Senator Bonacic?

        24                  SENATOR SQUADRON:    Yes.



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         1                  SENATOR BONACIC:    I hadn't

         2       intended to ask you any questions, but you

         3       raised my curiosity and concern with your

         4       back-and-forth with Senator Saland.

         5                  I want to ask you one question for

         6       clarification.  I have a contributor that

         7       contributes to my campaign, as an example, and

         8       then he asks me to call or she asks me to call

         9       the DEC for an environmental problem they're

        10       having with their gas station.  Is that -- am

        11       I in violation of an unwarranted service or

        12       privilege, in your mind, under your intent

        13       under this legislation?

        14                  ACTING PRESIDENT BRESLIN:

        15       Senator Squadron.

        16                  SENATOR SQUADRON:    To answer

        17       Senator Bonacic's question, and hopefully to

        18       answer Senator Saland's question -- again, a

        19       former client in Senator Saland's example, a

        20       contributor in Senator Bonacic's example,

        21       neither count, as I understand it.  Neither

        22       would be compensated business.  So neither

        23       would be affected by this bill.

        24                  I believe there may be other



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         1       components of the law that deal with how one

         2       deals with contributors, but that's not what

         3       this is.  This is about compensated outside

         4       business.

         5                  SENATOR BONACIC:    Thank you,

         6       Senator Squadron.

         7                  ACTING PRESIDENT BRESLIN:    Are

         8       there any other Senators who wish to be heard?

         9                  (No response.)

        10                  ACTING PRESIDENT BRESLIN:    In

        11       that event, the debate is closed.

        12                  The Secretary will please ring the

        13       bells.

        14                  (Pause.)

        15                  ACTING PRESIDENT BRESLIN:    Read

        16       the last section.

        17                  THE SECRETARY:    Section 3.  This

        18       act shall take effect immediately.

        19                  ACTING PRESIDENT BRESLIN:    Call

        20       the roll.

        21                  (The Secretary called the roll.)

        22                  ACTING PRESIDENT BRESLIN:

        23       Announce the results.

        24                  THE SECRETARY:    Ayes, 60.  Nays,



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         1       0.

         2                  ACTING PRESIDENT BRESLIN:    The

         3       bill is passed.

         4                  The Secretary will continue to

         5       read.

         6                  THE SECRETARY:    Calendar Number

         7       18, substituted earlier today by Member of the

         8       Assembly Silver, Assembly Print Number 9544,

         9       an act to amend the Executive Law.

        10                  SENATOR LIBOUS:    Explanation,

        11       please.

        12                  ACTING PRESIDENT BRESLIN:    An

        13       explanation has been requested, Senator

        14       Schneiderman.

        15                  SENATOR SCHNEIDERMAN:    Thank you,

        16       Mr. President.

        17                  The bill before us now is the

        18       Ethics Reform Act of 2010.  It is a piece of

        19       legislation that contains a series of reforms

        20       to both the ethics and the election and

        21       campaign finance laws of the State of

        22       New York.

        23                  As far as I'm concerned, this is a

        24       bill that has been a long time in coming.  I'm



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         1       glad we are finally getting to vote on it here

         2       today.

         3                  I have to say, Mr. President, when

         4       I first started coming up here about 11 years

         5       ago, I felt as though when we enter the

         6       Capitol area we come into kind of a fog in

         7       which good people seem to lose their sense

         8       that "go along to get along" and "pay to play"

         9       is somehow objectionable.

        10                  Ladies and gentlemen, there is

        11       something about the atmosphere here, the

        12       culture that has developed here, that leads to

        13       good people to turn a blind eye to daily

        14       transactions in which public interest is

        15       trumped by private benefit.

        16                  And this bill is designed to pierce

        17       that fog.  I would suggest that this is the

        18       first step in changing that culture.  This is

        19       the first step in ending pay-to-play as we

        20       know it in Albany.

        21                  The message from this bill to

        22       everyone who has worked here, in a capital

        23       where disclosure is minimal, transparency is a

        24       joke, and enforcement is something that is



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         1       limited to the state troopers in Greene

         2       County -- the one area of the Thruway where

         3       they give us tickets -- the message of this

         4       bill is that the game is over.

         5                  Ladies and gentlemen, we have

         6       several provisions in the bill.  I know we'll

         7       be talking about it for a while, but let me

         8       outline it generally.

         9                  First of all, this changes the

        10       ethics laws in the state to deal with a

        11       fundamental fact that the people of the State

        12       of New York seem to understand, even if it's

        13       taken us a while here to get it.

        14                  Our financial disclosure system as

        15       it exists now is a joke.  This bill would

        16       change that.  For the first time, we'll end

        17       the system of redacting the amount of money we

        18       make from our financial disclosure forms.  We

        19       will set up a system whereby the forms we file

        20       are actually reviewed.  There's a system of

        21       general review to ensure accuracy and random

        22       review, to ensure that we're actually filling

        23       out the forms properly.

        24                  This bill for the first time will



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         1       require that anyone who does business with the

         2       state and seeks to influence us, anyone who is

         3       a lobbyist or who hires a lobbyist, who pays

         4       any of us, has to disclose that relationship

         5       this is -- it's really remarkable that this is

         6       not the law now.  It is not the law now.  This

         7       bill sounds the death knell for the shroud of

         8       secrecy, for this fog that has enveloped the

         9       state government for too long.

        10                  This bill also broadens the

        11       definition of lobbying.  Right now no one has

        12       to report if they're lobbying us on a budget

        13       resolution.  This bill would broaden the

        14       definition of lobbying to make sure that it

        15       covers everything.

        16                  The second component of this bill

        17       is the change in the election and campaign

        18       finance laws.  And I have to say that these

        19       portions of the bill to me personally are the

        20       most important, because we now have a system

        21       of campaign finance laws in which the public

        22       has no confidence.  And quite honestly, ladies

        23       and gentlemen, I think the public is right to

        24       have little or no confidence.



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         1                  Independent expenditures on behalf

         2       or against a candidate are not now reported.

         3       Under this bill, they would be reported.  We

         4       will mandate for the first time that we have

         5       the actual -- we actually have an enforcement

         6       unit that must be funded in the Board of

         7       Elections to enforce the law when it comes to

         8       violations of the campaign finance laws.  We

         9       increase penalties.  We even have a "three

        10       strikes you're out" provision which we put in

        11       specially for Senator Volker to ensure that he

        12       votes for the bill.  In case you fail to file

        13       reports three times, the penalties are

        14       substantially enhanced.

        15                  The partisan gridlock that has made

        16       our campaign enforcement system a joke is

        17       ended by this bill.  Right now you need a

        18       majority of members of the Board of Elections,

        19       which is split between Republicans and

        20       Democrats, to vote to begin an enforcement

        21       proceeding.  This bill changes it so you need

        22       a majority to stop an enforcement proceeding.

        23       And it creates an independent enforcement unit

        24       whose funding is mandated, with counsel who



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         1       gets a term of years so they can't be fired

         2       for being overly aggressive.

         3                  This bill creates the reality of a

         4       campaign finance system that enforces laws,

         5       that clarifies law.  This bill also restores,

         6       in both the ethics and campaign finance areas,

         7       a system of getting advisory opinions so that

         8       any of us who want to know the answer to a

         9       question, who want to be clear that we're

        10       complying with the law, can get that answer.

        11                  So, ladies and gentlemen, this

        12       bill -- which has been criticized because it

        13       doesn't go far enough, and there are some of

        14       my colleagues who think it should do more to

        15       require disclosure from lawyers or it should

        16       do more to limit campaign contributions.  I

        17       don't disagree with them.  I don't disagree

        18       with them.  This doesn't do everything.  This

        19       doesn't provide for public financing of

        20       campaigns.  There are a lot of bills that I

        21       sponsor whose elements I would like to see in

        22       this legislation.  It's not all here.

        23                  But I assure you, in every area of

        24       the law that is addressed by this legislation,



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         1       it moves us forward.  It moves us towards

         2       transparency.  It moves us towards disclosure.

         3       It moves us towards a system of enforcement

         4       that the people of the State of New York will

         5       respect.

         6                  You want to know why we're losing

         7       their respect?  Not because there are

         8       individual bad actors here, but because we

         9       have for too long tolerated a system which

        10       enables us, authorizes us and allows us under

        11       law to engage in conduct which the people of

        12       the State of New York recognize is

        13       unacceptable.

        14                  We've got to end the culture of

        15       pay-to-play.  We've got to end the perception

        16       and the reality that people are able to

        17       influence members of the government -- not

        18       just the Legislature, but members of the

        19       executive branch as well.

        20                  Today we take a step towards doing

        21       that.  This bill begins the process of lifting

        22       that fog.  This bill I hope is the death knell

        23       of the pay-to-play culture.  I hope everyone

        24       will join in voting for this.  I know there



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         1       are some amendments that my understanding is

         2       aren't actually intended to weaken the bill

         3       but in some respects, perhaps, to alter it.

         4       And I know that there are some objections,

         5       although I must say I'm pleased to report that

         6       on both sides of the aisle, where I've talked

         7       to dozens of my colleagues, my sense is that

         8       most people's criticism is that this bill

         9       doesn't go far enough in certain areas.

        10                  I'm pleased by the fact that some

        11       of my colleagues on the other side of the

        12       aisle have spoken to me about this, come

        13       forward with ideas.  Senator Saland in

        14       particular spotted something that, quite

        15       frankly, we had missed.  Senator Flanagan came

        16       forward with a suggestion to make the bill

        17       more equitable, which I appreciate, and we're

        18       working on.

        19                  Yes, you came forward as well, but

        20       I know you'll speak for yourself,

        21       Senator Diaz.

        22                  I do not think this is a partisan

        23       matter, ladies and gentlemen.  This is an

        24       institutional matter.  We have to restore



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         1       public confidence.  We have to get rid of this

         2       fog.  We have to step up and recognize that

         3       the culture which allows people to contribute

         4       money or allows businesses to pay legislators

         5       while they're still seeking to engage in

         6       business with the state has to end.

         7                  Today we start the process of

         8       ending that, Mr. President.  I urge everyone

         9       to vote yes on this bill.

        10                  SENATOR PADAVAN:    Mr. President,

        11       are there amendments at the desk?

        12                  ACTING PRESIDENT BRESLIN:

        13       Senator Padavan, why do you rise?

        14                  SENATOR PADAVAN:    Are there

        15       amendments at the desk, Mr. President?

        16                  ACTING PRESIDENT BRESLIN:

        17       Senator Padavan, your amendment is here at the

        18       desk.  Without objection --

        19                  SENATOR PADAVAN:    Well, would you

        20       please call on Senator DeFrancisco for his

        21       amendments.

        22                  ACTING PRESIDENT BRESLIN:

        23       Certainly.

        24                  Senator DeFrancisco.



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         1                  SENATOR DeFRANCISCO:    Yes,

         2       there's an amendment at the desk and I'd waive

         3       its reading.

         4                  ACTING PRESIDENT BRESLIN:

         5       Senator DeFrancisco, there is an amendment at

         6       the desk.  And without objection, the reading

         7       is waived and you may speak on the amendment.

         8                  SENATOR DeFRANCISCO:    Senator

         9       Schneiderman indicated in no uncertain terms

        10       that he believes the most important part of

        11       this bill is the campaign finance law reform,

        12       and gave the reasons for that.  And he

        13       indicated that we must restore confidence in

        14       the public as to how campaign finance law

        15       works and how people in the Legislature work

        16       under it.

        17                  And he pointed out that one of the

        18       most important aspects of the unit or of the

        19       change is an enforcement unit.  Now the

        20       enforcement can be done.  And he emphasized

        21       that it's so important that we stop the

        22       partisan gridlock.

        23                  Well, I'm going to help him do that

        24       by this modification, because it's got to be



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         1       an oversight.  The modification deals with the

         2       enforcement counsel who is given the authority

         3       to actually commence proceedings under the

         4       alleged violations under the Election Law.

         5       And it takes actually three out of the four

         6       commission members to stop those proceedings.

         7       But the enforcement counsel can start them.

         8                  The enforcement counsel is not

         9       elected by anybody, it's appointed.  And the

        10       enforcement counsel since the '70s has always

        11       been a member of the Democrat Party.

        12                  Now, it would be just as offensive,

        13       if we're trying to reform the system, if that

        14       person was a member of the Republican Party.

        15       The fact is one party has the person that's in

        16       charge of starting the process that could only

        17       be stopped by three out of four commission

        18       members.

        19                  Not only that, that person has a

        20       four-year term.  And that four-year term, when

        21       that person is done after the four-year term,

        22       the person can be either reappointed or

        23       reappointed by the same persons who appointed

        24       that person in the first place, which are the



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         1       Democrat commissioners.

         2                  Now, if we're really and truly

         3       talking about true reform, a bill like this,

         4       where there's enforcement authority, depends

         5       upon the fairness of the enforcement.  And I

         6       don't know Liz Hogan from anybody.  I've never

         7       met her.  But she's been in that position for

         8       some time.  Not casting any aspersions on her.

         9                  But if we want the public to feel

        10       confident that there's not partisan gridlock

        11       and one party isn't controlling the

        12       enforcement process, then we've got to change

        13       that.  And that's what this amendment would

        14       do.

        15                  Instead of a four-year term for

        16       that person who is the enforcement counsel, it

        17       would be a two-year term and it would

        18       alternate between the enforcement counsel and

        19       the deputy, who would be of the other party.

        20       So that every two years, the person who's in

        21       charge of enforcing the law and bringing

        22       charges that could only be stopped by three of

        23       the four members of the commission is of a

        24       different party.



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         1                  Now, that seems logical.  It

         2       follows exactly the parameters that Senator

         3       Schneiderman talked about, bipartisan, no

         4       partisan gridlock.  And it will restore faith

         5       that the process is a fair process for both

         6       parties.

         7                  And for those reasons, I offer this

         8       amendment and I urge my colleagues to support

         9       it.

        10                  ACTING PRESIDENT BRESLIN:    Are

        11       there any other Senators wishing to be heard

        12       on the amendment?

        13                  (No response.)

        14                  ACTING PRESIDENT BRESLIN:    Then

        15       the question is on the nonsponsor motion to

        16       amend Calendar Number 18.

        17                  Those Senators voting in support of

        18       the nonsponsor amendment please raise your

        19       hands.

        20                  Announce the results.

        21                  THE SECRETARY:    Those recorded in

        22       the affirmative are Senators Alesi, Bonacic,

        23       DeFrancisco, Farley, Flanagan, Fuschillo,

        24       Golden, Griffo, Hannon, O. Johnson, Lanza,



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         1       Larkin, Leibell, Little, Marcellino, Maziarz,

         2       McDonald, Nozzolio, Padavan, Ranzenhofer,

         3       Robach, Saland, Seward, Skelos, Volker, Winner

         4       and Young.

         5                  Ayes, 27.  Nays, 32.

         6                  ACTING PRESIDENT BRESLIN:    The

         7       motion fails.

         8                  SENATOR PADAVAN:    Is there a

         9       second amendment at the desk, Mr. President?

        10                  ACTING PRESIDENT BRESLIN:    Yes,

        11       Senator Padavan.

        12                  Senator DeFrancisco, there is a

        13       second amendment at the desk.  Without

        14       objection, the reading is waived and you may

        15       speak on the amendment.

        16                  SENATOR DeFRANCISCO:    Thank you.

        17                  Anticipating that there really

        18       wasn't a strong desire on the other side of

        19       the aisle to make this a bipartisan

        20       enforcement process, I figured that maybe

        21       there would be another way to at least have

        22       some modicum of fairness in the process of who

        23       determines what charges are going to be

        24       brought and who prosecutes those charges.



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         1                  And what this bill basically does

         2       is it eliminates the enforcement officer --

         3       who is a Democrat, has been a Democrat, will

         4       always be a Democrat under the current

         5       statute -- from pursuing charges against

         6       possibly, in close election years, Republicans

         7       more than Democrats, just possibly.

         8                  To have some modicum of fairness,

         9       this says eliminate that enforcement officer

        10       and make it an elected official, the Attorney

        11       General.  Who for the time being happens to be

        12       a Democrat and will be a Democrat between now

        13       and the next election.

        14                  The fact of the matter is at least

        15       the person who's going to be enforcing these

        16       so-called bipartisan rules will be someone

        17       elected by the people.  And it could be a

        18       Republican, it could be a Democrat, it could

        19       be usually a Democrat.  But at least there's

        20       some modicum of fairness.

        21                  So that's what this amendment does.

        22       And I would urge each of my colleagues to

        23       provide some fairness in the enforcement

        24       process so we are not accused of reforming



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         1       something so that it is truly partisan in how

         2       the enforcement is determined.

         3                  ACTING PRESIDENT BRESLIN:    Are

         4       there any other Senators wishing to be heard

         5       on the amendment?

         6                  (No response.)

         7                  ACTING PRESIDENT BRESLIN:    The

         8       question then is on the nonsponsor motion to

         9       amend Calendar Number 18.

        10                  Those Senators voting in support of

        11       the nonsponsor amendment please raise your

        12       hands.

        13                  Announce the results.

        14                  THE SECRETARY:    Ayes, 27.  Nays,

        15       32.

        16                  ACTING PRESIDENT BRESLIN:    The

        17       motion fails.

        18                  Senator Padavan, why do you rise?

        19                  SENATOR PADAVAN:    Mr. President,

        20       will you call up my amendment, please.

        21                  ACTING PRESIDENT BRESLIN:

        22       Senator Padavan, your amendment is here at the

        23       desk.  Without objection, the reading is

        24       waived and you may speak on the amendment.



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         1                  SENATOR PADAVAN:    Thank you,

         2       Mr. President.

         3                  Today is a day we deal with

         4       disclosure, we deal with transparency, we deal

         5       with issues such as Senator Schneiderman

         6       referred to as pay-to-play.  But there's one

         7       area that we totally ignore, and they fit the

         8       bill in terms of the need for transparency,

         9       the need for disclosure, and the preemptor of

        10       pay-to-play.  And they're called political

        11       consultants.

        12                  These individuals and entities

        13       currently, as far as the state is concerned,

        14       do not have to disclose their clients or their

        15       relationships, or in any way, shape or form

        16       would any of the entities that we've created

        17       in current law and which we have expanded upon

        18       today.

        19                  And this amendment would do just

        20       that.  It's a bill that I introduced last

        21       session and the year before.  It patterns

        22       something which is currently in effect,

        23       believe it or not, in the City of New York --

        24       and in the State of Texas and the City of



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         1       San Francisco.

         2                  Now, to clarify some of the

         3       insights into what we're trying to do here,

         4       there was an interesting article, a very

         5       lengthy one, written in the New York Times a

         6       few years ago on this very subject.  It's

         7       entitled "First the Campaign, Then the

         8       Lobbying."  And I'd like to just read two

         9       sentences from it because I think it's helpful

        10       to understand what we're trying to achieve.

        11                  "'Helping elect someone and then

        12       lobbying that official so clearly represents

        13       the appearance of a conflict of interest that

        14       will undermine public confidence in

        15       government.  The nexus between the lobbyist,

        16       the government official, and the corporation

        17       is a dangerous one, a kind of Iron Triangle,'

        18       said Douglas Muzzio, a professor of public

        19       policy at Baruch College.  'They are not only

        20       influencing policy, which they are supposed to

        21       do as a lobbyist, they are actually choosing

        22       the government officials who will then turn

        23       around and act on clients whose interests

        24       these people are representing.'"



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         1                  Now, it just seems logical to me

         2       that if we're going to require so much in the

         3       way of public disclosure, that this group of

         4       individuals and entities are totally outside

         5       what we are seeking to achieve, at least at

         6       the state level.  And all we're doing is

         7       simply asking them to disclose.  It also, by

         8       the way, provides for a code of conduct in the

         9       exercise of their activity.

        10                  So, Mr. President, that in essence

        11       is what this amendment does.  It seems so

        12       logical, so essential, and I think we all know

        13       why it's so important.

        14                  ACTING PRESIDENT BRESLIN:    Thank

        15       you, Senator Padavan.

        16                  Are there any other Senators

        17       wishing to be heard on the amendment?

        18                  The question is on the nonsponsor

        19       motion to amend Calendar 18.  Those Senators

        20       voting in support of the nonsponsor amendment

        21       please raise your hands.

        22                  Announce the results.

        23                  THE SECRETARY:    Ayes, 27.  Nays,

        24       32.



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         1                  ACTING PRESIDENT BRESLIN:    The

         2       motion fails.

         3                  We are now back on the main bill.

         4                  Senator Squadron, on the bill.

         5                  SENATOR SQUADRON:    Thank you,

         6       Mr. President.  There's much to say --

         7                  ACTING PRESIDENT BRESLIN:    Excuse

         8       me.

         9                  Senator Padavan.

        10                  SENATOR PADAVAN:    I was simply

        11       going to ask the sponsor to yield to a

        12       question.  But if you wish --

        13                  ACTING PRESIDENT BRESLIN:    As

        14       soon as Senator Squadron does not have the

        15       floor, you may proceed, Senator Padavan.

        16                  Senator Squadron.

        17                  SENATOR SQUADRON:    Thank you,

        18       Mr. President.

        19                  There's much to say about the

        20       things this bill doesn't do for reform.  We

        21       just saw some amendments presented, and a lot

        22       of it's legitimate.  But there's also a lot

        23       about what this bill does do for reform.  And

        24       the truth is -- I think we all know it -- for



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         1       years Albany hasn't done much to reform

         2       itself.  An ever-shifting set of arguments has

         3       been used to prevent action, to kill reform in

         4       a closed back room, or through the alluring

         5       words of an empty press release.

         6                  Today is the beginning of actually

         7       getting something done and passed into law --

         8       not out of this house, not out of the other

         9       house, not out of the second floor -- into

        10       law.  I hope we're not tripped up in this step

        11       forward.

        12                  The arguments against passing the

        13       bill are arguments against a step forward.

        14       They are not arguments, as they may be guised

        15       to be, to go farther.  That's important.

        16       That's not a reason to oppose this bill; it's

        17       a reason to keep going after we pass this

        18       bill.

        19                  Senator Schneiderman ably described

        20       this bill and its need, and I appreciate that.

        21       I appreciate Senator Sampson's and Senator

        22       Krueger's and so many others fighting for this

        23       issue for so long, well before I was here.

        24                  There's one piece of the bill I



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         1       want to highlight very briefly that I think

         2       may be a source of some of its opposition.  In

         3       addition to the disclosure and the enforcement

         4       that Senator Schneiderman talked about, this

         5       bill would significantly increase the

         6       independence of ethics oversight for us in the

         7       Legislature and legislative employees.

         8                  The new Legislative Office of

         9       Ethics Investigation will have commissioners

        10       serving for a fixed term, an appointed

        11       executive director serving for a fixed term,

        12       pursuing all complaints regardless of the

        13       source.  The commissioners and executive

        14       director can't be legislators, they can't be

        15       lobbyists, they can't work for the

        16       Legislature.  No majority of that commission

        17       is controlled by either party or either house.

        18       Finally, any findings of wrongdoing will be

        19       made public from the LOEI.

        20                  But we can't just focus on the

        21       Legislature.  This bill also changes oversight

        22       of the executive branch.  Under this bill, we

        23       cannot ignore that for the first time ever,

        24       executive ethics will not be controlled by the



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         1       Governor.

         2                  Under current law, as you know, a

         3       majority of commissioners on the Commission on

         4       Public Integrity are appointed by the

         5       Governor.  That Commission on Public Integrity

         6       oversees lobbying in the executive branch.  If

         7       this bill doesn't pass into law, that will not

         8       change.  If this bill does pass into law, the

         9       Governor, the Comptroller, the Attorney

        10       General will all appoint the Executive Ethics

        11       Commission.  None of them, no individual will

        12       control executive ethics.

        13                  Let's be honest.  This bill is the

        14       beginning and not the end of needed reform.

        15       And even so, it is a difficult pill to swallow

        16       for a lot of folks in this room, a lot of

        17       folks in government, because it will affect

        18       us.  Those of us who are passing it and

        19       hopefully signing it into law will have new

        20       oversight on our behavior.  It's true for the

        21       Legislature, it's true for the Executive, it's

        22       true for candidates for office.

        23                  And whatever disagreements we have

        24       about how far we should go -- and a lot of us,



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         1       including myself, would like to continue and

         2       would like to keep going farther -- this bill

         3       will start that process.  Stopping this bill,

         4       this bill's failure, will stop the process in

         5       its tracks.  And that's the reason that I hope

         6       we pass it out of this house today and I hope

         7       to see it signed into law as soon as possible.

         8                  Thank you, Mr. President.

         9                  ACTING PRESIDENT BRESLIN:    Thank

        10       you, Senator Squadron.

        11                  Senator Padavan.

        12                  SENATOR PADAVAN:    Will Senator

        13       Schneiderman yield for a question.

        14                  ACTING PRESIDENT BRESLIN:

        15       Senator Schneiderman, will you yield for a

        16       question from Senator Padavan?

        17                  SENATOR SCHNEIDERMAN:    Yes,

        18       Mr. President, I will be happy to yield.

        19                  ACTING PRESIDENT BRESLIN:

        20       Senator Padavan, you may proceed.

        21                  SENATOR PADAVAN:    Senator, you

        22       touched on this briefly, but I wonder if you'd

        23       amplify it by answering my question.

        24                  If currently you are a legislator



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         1       filing your annual forms and disclosure forms

         2       and so on, and you also are a contractor, a

         3       consultant, a manufacturer, so on -- any one

         4       of a number of different vocations or

         5       professions -- you would have to list the

         6       names of all your clients, am I correct?

         7                  SENATOR SCHNEIDERMAN:    You have

         8       to list -- there are two different areas of

         9       disclosure that I discussed.  One is the

        10       disclosure by the members of the Legislature.

        11       You have to list your sources of income.  And

        12       unless there is a particular privilege that

        13       applies, as it does with doctors or lawyers --

        14                  SENATOR PADAVAN:    Well, I'm going

        15       to get to that, Senator.  I'm talking about

        16       someone like --

        17                  SENATOR SCHNEIDERMAN:    I have

        18       to --

        19                  SENATOR PADAVAN:    -- someone

        20       like --

        21                  SENATOR SCHNEIDERMAN:    I --

        22                  SENATOR PADAVAN:    -- someone like

        23       me, Senator.

        24                  ACTING PRESIDENT BRESLIN:



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         1       Senator Padavan, please.  Let Senator

         2       Schneiderman finish his answer.

         3                  SENATOR SCHNEIDERMAN:    I know

         4       you're enthusiastic to hear me talk, but let

         5       me just finish this sentence and we'll get to

         6       the good stuff.

         7                  Unless a privilege applies, you

         8       have to list the clients of a firm that pays

         9       you.  The idea here is that you can't just say

        10       "I got a million dollars from XYZ

        11       Consultants."  In every case except those as

        12       to which a privilege applies, you have to list

        13       the clients of that firm as well.

        14                  There is also a provision, however,

        15       that requires disclosure by the firms.  If

        16       anyone is doing business with the state

        17       seeking to influence the Legislature, either

        18       by being a lobbyist or employing a lobbyist,

        19       whether it's privileged or not -- lawyer,

        20       doctor, anyone -- they have to disclose that.

        21                  So we have two types of disclosure.

        22       One is clients in general.  But the second

        23       and, to me, most significant part of this is

        24       that anyone seeking to do business with the



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         1       state or influence the Legislature has got to

         2       disclose a financial relationship with a

         3       legislator even if it is a lawyer.  This gets

         4       in the lawyers and doctors and ministers.

         5       Anyone with a privilege, the client has to

         6       waive that privilege if they're trying to do

         7       business with the state.

         8                  SENATOR PADAVAN:    Would the

         9       Senator continue to yield.

        10                  ACTING PRESIDENT BRESLIN:

        11       Senator Schneiderman, do you continue to yield

        12       to Senator Padavan?

        13                  SENATOR SCHNEIDERMAN:    Yes.

        14                  SENATOR PADAVAN:    I understand

        15       fully the issue of lobbyists; namely, if

        16       there's a lobbyist involved, that disclosure

        17       is required.

        18                  What I'm talking about and my

        19       question related to those business

        20       involvements -- clients, customers, whatever

        21       you wish to call them -- where there is no

        22       lobbyist involved.  It's directly between the

        23       legislator and the entity in question.

        24                  So therefore the answer to my



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         1       question, if I heard you correctly, is yes,

         2       they must list all their clients.  Is that

         3       correct?

         4                  ACTING PRESIDENT BRESLIN:

         5       Senator Schneiderman.

         6                  SENATOR SCHNEIDERMAN:    Except

         7       that I'm not sure who "they" is.  But yes --

         8                  SENATOR PADAVAN:    "They" being a

         9       legislator who deals directly with clients,

        10       who do not have lobbyists, no lobbyists

        11       involved.  And that entity can be one of a

        12       hundred different things.  I described them

        13       before:  Manufacturing, management consulting,

        14       all the way down the line.

        15                  SENATOR SCHNEIDERMAN:    Yes.

        16       Through you, Mr. President, that does not mean

        17       that everybody who buys a product from a

        18       manufacturer has to be listed.  All that means

        19       is that if you are receiving payment from

        20       someone, through an entity, through a

        21       consulting entity, that now has to be

        22       disclosed.

        23                  This is to deal with the problem

        24       that has come up that was discussed earlier



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         1       today, that there were questions that have

         2       been raised and there have been some cases

         3       that have come up recently with members of the

         4       Legislature relating to consulting firms,

         5       where essentially there was a loophole in the

         6       current law that you have to list the fact

         7       that I'm paid a million dollars by XYZ

         8       Consultants, but you don't have to disclose

         9       who's paying to XYZ Consultants.

        10                  That's what this gets at.  Not the

        11       fact that if you receive money from Wal-Mart,

        12       you have to list everyone who's ever bought

        13       anything at Wal-Mart.  That's not what this

        14       does.

        15                  SENATOR PADAVAN:    I would presume

        16       not.

        17                  And by the way, I think that's a

        18       good idea.

        19                  ACTING PRESIDENT BRESLIN:

        20       Senator Padavan, do you wish --

        21                  SENATOR PADAVAN:    Would he

        22       continue to yield?

        23                  SENATOR SCHNEIDERMAN:    I continue

        24       to yield.



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         1                  ACTING PRESIDENT BRESLIN:    You

         2       may proceed, Senator Padavan.

         3                  SENATOR PADAVAN:    You touched on

         4       this in passing.  If you were in a protected

         5       class -- and that, I presume, includes

         6       attorneys and individuals who do real estate

         7       work or insurance work.  I don't know what

         8       other protected classes there are, but in

         9       those categories -- you would not have to do

        10       what you and I just agreed upon you do have to

        11       do in every other case.  Is that so?

        12                  SENATOR SCHNEIDERMAN:    Yes.

        13       Through you, Mr. President.  Under this

        14       bill -- and this is an issue that we've had a

        15       lot of discussions about, certainly in our

        16       conference.  Some people feel that it doesn't

        17       go far enough.  But under this bill, as to

        18       those professions for which there is a

        19       privilege, you do not have to disclose the

        20       identity of your clients or patients, as the

        21       case may be.

        22                  ACTING PRESIDENT BRESLIN:

        23       Senator Padavan.

        24                  SENATOR PADAVAN:    Will you



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         1       continue to yield?

         2                  SENATOR SCHNEIDERMAN:    I will

         3       continue to yield.

         4                  SENATOR PADAVAN:    If you --

         5                  ACTING PRESIDENT BRESLIN:    Excuse

         6       me, Senator Padavan.  I think you understand

         7       the process.  I'm not trying to be difficult.

         8                  SENATOR PADAVAN:    No, I thought I

         9       heard him say yes.

        10                  SENATOR SCHNEIDERMAN:    No, but

        11       through Mr. President.  Yes, Mr. President, I

        12       yield.

        13                  ACTING PRESIDENT BRESLIN:    You

        14       may proceed.

        15                  SENATOR PADAVAN:    I'm just trying

        16       to get home earlier, Senator.

        17                  Senator, there are roughly, I

        18       think, 211, 212 legislators here in the

        19       Capitol.  What percentage of them would you

        20       think are either lawyers, insurance brokers,

        21       any of the other protected -- real estate

        22       agents, any of the other protected classes?

        23       What percentage would you think that is,

        24       roughly?  I wouldn't hold you to an exact



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         1       number.

         2                  ACTING PRESIDENT BRESLIN:

         3       Senator Schneiderman.

         4                  SENATOR SCHNEIDERMAN:    I have no

         5       idea.

         6                  SENATOR PADAVAN:    Would you say a

         7       third?

         8                  ACTING PRESIDENT BRESLIN:

         9       Senator Padavan --

        10                  SENATOR SCHNEIDERMAN:    Through

        11       you, Mr. President, no, I wouldn't say a

        12       third.  I have no idea.

        13                  SENATOR PADAVAN:    All right.

        14       Well, thank you, Senator.  You've been very

        15       kind.

        16                  SENATOR SCHNEIDERMAN:    Thank you,

        17       Senator.

        18                  SENATOR PADAVAN:    Just briefly,

        19       Mr. President.

        20                  ACTING PRESIDENT BRESLIN:

        21       Senator Padavan on the bill.

        22                  SENATOR PADAVAN:    This dialogue

        23       obviously has been a subject of a lot of

        24       public dialogue on the very issue.



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         1                  And I would take a guess that

         2       probably if you added up all of the categories

         3       that are in the protected class, you're

         4       talking about roughly one-fourth to one-third

         5       of the total number of legislators here in the

         6       Capitol.

         7                  And while I have no feeling at all

         8       that any of them would or are doing anything

         9       that is untold, the fact remains that we

        10       shouldn't have two classes of citizens here.

        11       There should not be one group who might be in

        12       a whole score of other kinds of activities,

        13       have clients who do business with the state

        14       and they have to disclose it, income from

        15       these clients and whatever the case may be,

        16       and then another class where that's just

        17       simply not the case.

        18                  I don't think that engenders public

        19       confidence to the degree that I believe the

        20       sponsors all intend to do.  And that is -- you

        21       know, I hear frequently the comment that this

        22       is a beginning and we have more to do and all

        23       of that --

        24                  ACTING PRESIDENT BRESLIN:



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         1       Senator Duane, why do you rise?

         2                  SENATOR DUANE:    I'm wondering if

         3       the Senator would yield for a moment.

         4                  SENATOR PADAVAN:    Sure.

         5                  ACTING PRESIDENT BRESLIN:

         6       Senator Padavan, will you yield?

         7                  SENATOR PADAVAN:    Yes, certainly.

         8                  ACTING PRESIDENT BRESLIN:

         9       Senator Duane.

        10                  SENATOR DUANE:    Mr. President,

        11       I'm curious as to whether or not in the

        12       assertion of not wanting two classes of

        13       people, if that also includes those who are

        14       able to be married or not.

        15                  SENATOR PADAVAN:    I don't know if

        16       that's a -- I don't know the answer to that

        17       question.  I don't know if they're in a

        18       protected class or not.  Ask the sponsor.

        19                  ACTING PRESIDENT BRESLIN:

        20       Senator Duane.

        21                  SENATOR DUANE:    Even though it

        22       wasn't through you, Mr. President, thank you.

        23                  ACTING PRESIDENT BRESLIN:    I

        24       accept it.  Thank you, Senator Duane.



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         1                  SENATOR PADAVAN:    All right,

         2       thank you.  Getting back to what I was saying,

         3       with all due respect to the intentions of the

         4       sponsors of this legislation -- and I intend

         5       to vote for it.  And as a matter of public

         6       disclosure, I don't have any businesses, I'm a

         7       full-time legislator, I don't have any firm or

         8       whatever.  So my question is purely academic,

         9       in case you were wondering.

        10                  But the fact remains it's still a

        11       valid question.  And I would hope that as time

        12       evolves and as the public weighs in and finds

        13       out what we've done today, that perhaps we'll

        14       move in a direction that will provide a more

        15       even playing field, a more total environment

        16       in terms of disclosure and reporting.

        17                  Thank you, Mr. President.

        18                  ACTING PRESIDENT BRESLIN:    Thank

        19       you, Senator Padavan.

        20                  Senator Bonacic.

        21                  SENATOR BONACIC:    Thank you,

        22       Mr. Chairman.  Will the sponsor answer a few

        23       questions for me?

        24                  ACTING PRESIDENT BRESLIN:



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         1       Senator Schneiderman, will you yield to

         2       Senator Bonacic for questions?

         3                  SENATOR SCHNEIDERMAN:    I will be

         4       happy to yield to Senator Bonacic, who has

         5       long toiled in the vineyards of reform.

         6                  SENATOR BONACIC:    Senator

         7       Schneiderman, let me first thank you for

         8       advancing the ethics legislation.  That will

         9       probably be the last compliment I will give

        10       you as we have this dialogue.

        11                  My first question to you, let's

        12       assume that this legislation becomes law and

        13       that Senator Bruno was still the majority

        14       leader.  Under the old law, we know what had

        15       to be done.  But under the new law, how would

        16       it have affected him?

        17                  ACTING PRESIDENT BRESLIN:

        18       Senator Schneiderman.

        19                  SENATOR SCHNEIDERMAN:    Well,

        20       through you, Mr. President, I'm really not

        21       sure how it would have affected Senator Bruno.

        22       I am not intimately familiar with the facts of

        23       his case.

        24                  There certainly are restrictions in



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         1       this law, and certainly the clarification of

         2       the existing law that was provided in Senator

         3       Squadron's bill that may have intercepted

         4       conduct at an earlier stage.

         5                  I do know that if you have a

         6       disclosure form and you can't just list that

         7       you make money from a consulting firm but you

         8       have to list the clients of the consulting

         9       firm, that might have provided disclosure that

        10       may have caused things to take a different

        11       course.

        12                  But I can't say specifically how

        13       this would have affected the course of events

        14       surrounding Senator Bruno.

        15                  SENATOR BONACIC:    Will Senator

        16       Schneiderman continue to yield?

        17                  ACTING PRESIDENT BRESLIN:    Will

        18       you continue to yield, Senator Schneiderman?

        19                  SENATOR SCHNEIDERMAN:    Through

        20       you, Mr. President, I'm happy to.

        21                  SENATOR BONACIC:    Under the

        22       question I asked, there probably would have

        23       been more disclosure requirements for a

        24       consulting business, whether it be Assemblyman



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         1       Seminerio or the former majority leader,

         2       Senator Bruno.  Would you agree to that?

         3                  ACTING PRESIDENT BRESLIN:

         4       Senator Schneiderman.

         5                  SENATOR SCHNEIDERMAN:    Yes,

         6       through you, Mr. President, this legislation

         7       would provide substantially more disclosure,

         8       both disclosure by the legislator but also

         9       disclosure by any firm doing business with the

        10       state on their reports to the Lobbying

        11       Commission.

        12                  ACTING PRESIDENT BRESLIN:

        13       Senator Bonacic.

        14                  SENATOR BONACIC:    Would you

        15       continue to yield, Mr. Schneiderman?

        16                  ACTING PRESIDENT BRESLIN:    Do you

        17       continue to yield, Senator Schneiderman?

        18                  SENATOR SCHNEIDERMAN:    Through

        19       you, Mr. President, I'd be happy to.

        20                  ACTING PRESIDENT BRESLIN:    You

        21       may proceed.

        22                  SENATOR BONACIC:    Now I'm going

        23       to ask that same question with respect to

        24       Assemblyman Silver.  Under the old reporting



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         1       requirements and now under the new reporting

         2       requirements, if this is to become law, is

         3       there any increased burden in disclosure with

         4       respect to the Speaker of the other house?

         5                  SENATOR SCHNEIDERMAN:    Again,

         6       through you, Mr. President, I'm not sure at

         7       present what Speaker Silver's employment

         8       status is.

         9                  I will tell you that if he derives

        10       a financial benefit, either that he is hired

        11       by or shares in the profits of a firm, for

        12       anyone that seeks to do business of any kind

        13       with the state, under this bill that would now

        14       have to be disclosed.  I don't know -- I'm not

        15       sure what his status is with his firm, so I

        16       can't really go beyond that.

        17                  ACTING PRESIDENT BRESLIN:

        18       Senator Bonacic.

        19                  SENATOR BONACIC:    Would you

        20       continue to yield?

        21                  ACTING PRESIDENT BRESLIN:    Do you

        22       continue to yield, Senator?

        23                  SENATOR SCHNEIDERMAN:    I would

        24       continue to yield.



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         1                  ACTING PRESIDENT BRESLIN:    You

         2       may proceed.

         3                  SENATOR BONACIC:    Is there

         4       anything in the new legislation if it passes,

         5       in this bill, that would require disclosure of

         6       clients of that firm with respect to the

         7       Speaker of the other house?

         8                  ACTING PRESIDENT BRESLIN:

         9       Senator Schneiderman.

        10                  SENATOR SCHNEIDERMAN:    Yes.

        11       Through you, Mr. President.  Again, to me, the

        12       most important thing in the area of ethics and

        13       disclosure that this bill does is require that

        14       if I'm a lawyer and someone who is seeking to

        15       do business with the State of New York, a

        16       company or an individual, retains me to do any

        17       work or retains a firm whose profits I share

        18       in, that has to be disclosed.

        19                  So this is to say that if someone

        20       retains me or Speaker Silver or anyone else to

        21       represent them in a slip-and-fall case in a

        22       hotel -- it has nothing to do with the

        23       state -- that relationship does not have to be

        24       disclosed.  And to me, those are not the most



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         1       significant things that we're missing here.

         2                  If any company or individual that

         3       does business with the state retains me for

         4       any purpose, even if they're not retaining me

         5       in connection with their business with the

         6       state, that has to be disclosed.  So that

         7       would affect all the lawyers here, including

         8       the Speaker.

         9                  ACTING PRESIDENT BRESLIN:

        10       Senator Bonacic.

        11                  SENATOR BONACIC:    Senator

        12       Schneiderman, would you continue to yield?

        13                  SENATOR SCHNEIDERMAN:    I will

        14       continue to yield, Mr. President.

        15                  ACTING PRESIDENT BRESLIN:

        16       Senator Schneiderman will continue to yield.

        17                  SENATOR BONACIC:    I guess I

        18       understand your answer with respect to the

        19       Speaker, but how about the clients of the

        20       Speaker, having them have to disclose their

        21       relationship?

        22                  SENATOR SCHNEIDERMAN:    Yes.

        23       Through you, Mr. President, I think that's

        24       what I just said.  That there will have to be



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         1       disclosure -- an attorney cannot waive a

         2       privilege for a client, but the clients are

         3       required under this bill to waive a privilege

         4       if they're doing business with the state and

         5       disclose that interest.  Even if they are

         6       retaining a lawyer -- legislator-lawyer -- for

         7       some business other than their business with

         8       the state.

         9                  So any relationship that could

        10       possibly be construed as pay-to-play -- the

        11       intention of this bill, at any rate, is to

        12       have disclosure of any relationship that could

        13       possibly be construed to as pay-to-play,

        14       whether it's a doctor or a lawyer or a

        15       minister or anyone else subject to privilege.

        16                  ACTING PRESIDENT BRESLIN:

        17       Senator Bonacic.

        18                  SENATOR BONACIC:    Mr.

        19       Schneiderman, will you continue to yield?

        20                  ACTING PRESIDENT BRESLIN:    Do you

        21       continue to yield, Senator Schneiderman?

        22                  SENATOR SCHNEIDERMAN:    Through

        23       you, Mr. President, I will yield to

        24       Mr. Bonacic.



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         1                  SENATOR BONACIC:    Okay.  As you

         2       recall, in the Codes Committee we had concerns

         3       about an attended event of more than 25 people

         4       with a threshold of $10.  And I have a series

         5       of questions that many of the members on both

         6       sides of the aisle participate in these

         7       events, and I thought the language in the

         8       legislation was vague.  So for the spirit of

         9       the legislation, I'm asking you to clarify.

        10       And I'm going to give you four examples that

        11       we all experience in attending events.  Okay?

        12                  SENATOR SCHNEIDERMAN:    Through

        13       you, Mr. President, I am happy to participate

        14       in this multiple-choice exam.

        15                  ACTING PRESIDENT BRESLIN:    And

        16       you may proceed, Senator Bonacic.

        17                  SENATOR BONACIC:    I'm trying to

        18       get at the legislative intent.

        19                  An elected official, Assemblyman or

        20       a Senator, gets invited to a firefighters'

        21       dinner, and the meal and the soda is $25.  And

        22       there's no ceremonial acts.  That fire company

        23       has a lobbyist.  They may ask him, you know,

        24       help us out with equipment or some other



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         1       firematics need.  In your mind, is that a

         2       violation of the language in this legislation

         3       for our officials?

         4                  SENATOR SCHNEIDERMAN:    Through

         5       you, Mr. President, we did discuss this

         6       before.  That should not be a problem.

         7                  And let me just point out that this

         8       is on page 11 of the proposed legislation,

         9       starting at line 41.  It's a section that's

        10       called "Complimentary attendance:  Food and

        11       bench offered by the sponsor of an event."

        12       And the issue here is really how to ensure

        13       that no one is being, as the expression goes,

        14       wined and dined to influence themselves.

        15                  You would not have a problem with a

        16       dinner by a fire company or any other

        17       organization if it meets any of these

        18       requirements:  If it is a charitable function,

        19       which most of these are; if it is something

        20       that is a widely attended event where 25 or

        21       more people have been invited to the event,

        22       which is true in most of these situations; or

        23       if you're consuming less than $10 worth of

        24       goodies.



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         1                  The point of this is not to prevent

         2       any of us from going to the events we attend

         3       all the time in our districts.  Charitable

         4       organizations that you go to, fine.  Widely

         5       attended events, fine.  And even if you go to

         6       an event that's just a few people that's being

         7       done for business purposes, as long as you

         8       don't take more than $10 worth of food or

         9       other goods, fine.

        10                  So the intention here is certainly

        11       not to stop any legislator from going about

        12       their business and going to these public

        13       events.  And I think that we have covered all

        14       of that with this whole list of exceptions to

        15       the prohibition.

        16                  SENATOR BONACIC:    Okay.  Thank

        17       you, Mr. Schneiderman.  Will you continue to

        18       yield?

        19                  ACTING PRESIDENT BRESLIN:    Do you

        20       continue to yield, Senator Schneiderman?

        21                  SENATOR SCHNEIDERMAN:    Mr.

        22       President, I'll continue to yield.

        23                  ACTING PRESIDENT BRESLIN:

        24       Senator Saland, why do you rise?



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         1                  SENATOR SALAND:    I realize that

         2       Senator Schneiderman has yielded to Senator

         3       Bonacic.  But before this exchange goes any

         4       further, I would wonder if Senator Bonacic and

         5       Senator Schneiderman might permit me to ask

         6       Senator Schneiderman to yield, if that's

         7       permitted under the rules.

         8                  ACTING PRESIDENT BRESLIN:    It

         9       would be up to Senator Bonacic, Senator

        10       Saland.  He has the floor.

        11                  SENATOR BONACIC:    Of course.  To

        12       Senator Saland, sure.

        13                  ACTING PRESIDENT BRESLIN:

        14       Senator Saland, you may -- would you yield to

        15       Senator Saland, Senator Schneiderman?  Senator

        16       Schneiderman, would you yield to Senator

        17       Saland?

        18                  SENATOR SCHNEIDERMAN:    Yes.  To

        19       Senator Saland, yes.  Yes.

        20                  SENATOR SALAND:    Thank you,

        21       Senator Schneiderman.

        22                  I heard you make reference to this

        23       attendance being okay if in fact there was a

        24       $10 cap.  I'm looking at page 11, and I'm not



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         1       starting at line 41, I'm starting at line 37.

         2       And line 37 reads:  "The following are

         3       excluded from the definition of a gift."

         4       Nowhere between line 37 and line 54 is there

         5       any mention of any amount.

         6                  In single (i) it says complimentary

         7       attendance, including food and beverage, at a

         8       bona fide charitable and political event.  And

         9       the rest of the language in the existing law

        10       is omitted.  Again, it says nothing about the

        11       $10 limitation.  And if you go to (ii), if you

        12       read that language, it says nothing about a

        13       $10 limitation.

        14                  So my question to you is, if you're

        15       invited to a charitable event -- let's assume

        16       the XYZ hospital in your district invites you,

        17       and you're there as their guest and the price

        18       of a ticket is $100.  Under this section, is

        19       that a permitted event if it's a widely

        20       attended event and nothing in here makes any

        21       reference --

        22                  SENATOR SCHNEIDERMAN:    Yes.  Yes.

        23       Through you, Mr. President, Senator Saland is

        24       absolutely correct.



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         1                  As I tried to explain in my

         2       discourse with Senator Bonacic, these are

         3       series of exceptions.  The $10 limitation is

         4       at the next page, the bottom of page 12.

         5                  But if you are going for a

         6       charitable function in connection with your

         7       services as a Senator or performing ceremonial

         8       duties or if it is a widely attended event,

         9       the $10 limit is not required.  That is a

        10       separate exception to the prohibition.

        11                  So Senator Saland is correct.

        12       That's on the next page, on page 12, at the

        13       bottom.

        14                  ACTING PRESIDENT BRESLIN:    Thank

        15       you very much, Senator Saland.

        16                  Senator Bonacic, you may proceed.

        17                  SENATOR BONACIC:    Back to Senator

        18       Schneiderman.

        19                  SENATOR SCHNEIDERMAN:    Senator

        20       Bonacic, I missed you.

        21                  SENATOR BONACIC:    When I spoke of

        22       that firefighters' event, it may not be

        23       charitable and it may not be political.  And

        24       they do have a lobbyist.  So I just don't want



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         1       to get caught with your rules where a lobbyist

         2       is involved and it doesn't fall into the

         3       categories of political or charitable and they

         4       do ask you as Senator to help them with

         5       firefighter needs.  In your mind, is that a

         6       violation?

         7                  ACTING PRESIDENT BRESLIN:

         8       Senator Schneiderman.

         9                  SENATOR SCHNEIDERMAN:    Through

        10       you, Mr. President.  Again, this is a list --

        11       we're talking about a prohibition against

        12       accepting a benefit.  There are a long list of

        13       exceptions to the prohibition.  One of the

        14       prohibitions has to do with a charitable

        15       event.  Another has to do with consuming $10

        16       or less of food or drink.  But the most common

        17       is that if this is a widely attended event --

        18       which certainly in my district virtually all

        19       of these are events where 25 or more people

        20       are invited.

        21                  If you meet any of these -- and

        22       again, in my district, most of these we're

        23       talking about not-for-profit organizations,

        24       and a lot of these events are in fact within



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         1       the definition of charitable events.  So if

         2       you meet any of these exceptions, you are not

         3       subject to the prohibition.

         4                  And I cannot imagine an event,

         5       unless you have an extraordinarily fancy

         6       for-profit fire company that is wining and

         7       dining you in a very small room with only a

         8       few people, I can't imagine the circumstances

         9       where the dinner with the firefighters would

        10       possibly not meet one of these exceptions.

        11                  SENATOR BONACIC:    Okay.  Would

        12       you continue to yield?

        13                  ACTING PRESIDENT BRESLIN:    Do you

        14       continue to yield to Senator Bonacic?

        15                  SENATOR SCHNEIDERMAN:    Through

        16       you, Mr. President, yes.

        17                  ACTING PRESIDENT BRESLIN:    You

        18       may proceed.

        19                  SENATOR BONACIC:    Another

        20       example.  We in our districts are invited to

        21       meet with school superintendents.  And it's

        22       probably 8 to 15 of them, depending on how

        23       many school districts you have in that

        24       particular county.  And they serve you lunch,



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         1       and the value of the lunch may be $15.  And

         2       they have a lobbyist.  In your mind, is that a

         3       violation for an elected official?

         4                  ACTING PRESIDENT BRESLIN:

         5       Senator Schneiderman.

         6                  SENATOR SCHNEIDERMAN:    Through

         7       you, Mr. President.  Again -- and let me cite

         8       you to page 12, line 51.  Another aspect of

         9       this is an exclusion of meals and refreshments

        10       from participating in a professional or

        11       educational program and the meals or

        12       refreshments are provided to all participants.

        13                  So again, I'm not sure what the

        14       circumstances are here.  But it's hard for me

        15       to see how would not fit within one of these

        16       exceptions.  Certainly it is not the intention

        17       of this bill to prevent you from meeting with

        18       local school superintendents.

        19                  Again, there's even a broader,

        20       blanket exception that covers something that

        21       would enable you, if you have any question

        22       about this, to question the Ethics Oversight

        23       Board to determine there was any question

        24       about it.  And the standard there is that if



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         1       this event is related to your duties or

         2       responsibilities as determined by the Ethics

         3       Oversight Board.

         4                  Again, meeting with people in your

         5       district to get their input on what you're

         6       doing is not what this is designed to prevent.

         7                  ACTING PRESIDENT BRESLIN:

         8       Senator Bonacic.

         9                  SENATOR BONACIC:    Would you

        10       continue to yield?

        11                  ACTING PRESIDENT BRESLIN:    Will

        12       you continue to yield, Senator Schneiderman?

        13                  SENATOR SCHNEIDERMAN:    I will

        14       continue to yield, Mr. President.

        15                  SENATOR BONACIC:    The same

        16       question, but now I've been invited for five

        17       hospitals and their CEOs.  And now there's

        18       only five of them there, and they treat us to

        19       lunch that's worth $20.  And obviously,

        20       whether it's the superintendents, whether it's

        21       the hospitals, they want to know how they're

        22       going to be affected on budget, what we can

        23       do, help with member items, capital funds.

        24                  Is that a violation?  And they have



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         1       a lobbyist.

         2                  SENATOR SCHNEIDERMAN:    Well,

         3       through you, Mr. President.  If you are the

         4       only Senator invited and five hospital CEOs

         5       take you out for a fancy meal and talk to you

         6       about healthcare cuts in the state budget,

         7       that could be a violation, yes.

         8                  ACTING PRESIDENT BRESLIN:

         9       Senator Bonacic.

        10                  SENATOR SCHNEIDERMAN:    If it's a

        11       widely attended event and they're inviting

        12       lots of people, no.

        13                  And I assure you, I have much

        14       fancier hospitals and CEOs in my district than

        15       you probably do in yours, and they have their

        16       own dining rooms.  But if they invite me up

        17       there to influence me and I accept that, that

        18       could be a violation.

        19                  If it's a generally attended event,

        20       a charitable function, I consume less than

        21       $10, or any of these other exceptions, it's

        22       not a problem.

        23                  SENATOR BONACIC:    Senator

        24       Schneiderman, will you continue to yield?



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         1                  SENATOR SCHNEIDERMAN:    Through

         2       you, Mr. President, I'm happy to yield.

         3                  ACTING PRESIDENT BRESLIN:

         4       Senator Schneiderman continues to yield.

         5                  SENATOR BONACIC:    In most of

         6       these districts, both Assembly and Senate

         7       outside New York City, there's a great

         8       geographical area and there's multiple events,

         9       sometimes at the same time, and we have a to

        10       send a representative on our behalf.

        11                  Now, let's assume it's not a

        12       well-attended event and the cost of the meal

        13       is in excess of $10.  Who is in violation?

        14       Question number one.  Is it the representative

        15       that sends -- you know, the elected official

        16       that sends the rep, or is the representative

        17       in violation?

        18                  SENATOR SCHNEIDERMAN:    Well,

        19       through you, Mr. President, these rules apply

        20       to elected officials.  But it does extend to

        21       the staff.  It's not something that would --

        22       the staff member would not be incurring a

        23       penalty; we would.

        24                  SENATOR BONACIC:    Okay, let me



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         1       make sure I -- Mr. Schneiderman, would you

         2       continue to yield?

         3                  ACTING PRESIDENT BRESLIN:

         4       Senator Schneiderman, do you continue to

         5       yield?

         6                  SENATOR SCHNEIDERMAN:    Through

         7       you, Mr. President, I continue to yield.

         8                  SENATOR BONACIC:    So there would

         9       never be a violation against that elected

        10       official's rep.  And are you saying that it is

        11       also not a violation against the elected

        12       official in that case?

        13                  ACTING PRESIDENT BRESLIN:

        14       Senator Schneiderman.

        15                  SENATOR SCHNEIDERMAN:    Well,

        16       through you, Mr. President, it's the same set

        17       of rules we've been discussing.  If the staff

        18       member goes to dinner with a small group of

        19       people who take him to a hundred-dollar meal

        20       and talk to him about -- and essentially are

        21       lobbying him, that could be a violation, that

        22       person acting on behalf of me or you or

        23       another legislator.  It depends on the

        24       specific circumstances.



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         1                  Again, if it is a charitable

         2       function, a widely attended event, any of the

         3       other exceptions we've discussed, no

         4       violation.

         5                  ACTING PRESIDENT BRESLIN:

         6       Senator Bonacic.

         7                  SENATOR BONACIC:    Would you

         8       continue to yield, Mr. Schneiderman?

         9                  ACTING PRESIDENT BRESLIN:

        10       Senator Schneiderman.

        11                  SENATOR SCHNEIDERMAN:    I will,

        12       through you, Mr. President.

        13                  SENATOR BONACIC:    We have events

        14       in Albany all the time.  And my first question

        15       is we have constituents at a reception, and

        16       the cost of that sponsor putting on that

        17       reception is more than $10, whoever would walk

        18       in, if they wanted to partake of a buffet or a

        19       drink.

        20                  If an elected official goes to that

        21       reception and shakes the hands of the

        22       constituents who wanted to visit with them,

        23       doesn't eat or drink anything, is that a

        24       violation of this legislation?



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         1                  ACTING PRESIDENT BRESLIN:

         2       Senator Schneiderman.

         3                  SENATOR SCHNEIDERMAN:    Through

         4       you, Mr. President, no.

         5                  Again, I would urge the Senator

         6       that the same set of rules that we've

         7       discussed apply.  Widely attended events --

         8       and most of these events, 25 people are

         9       invited.  This only requires invitation, not

        10       that they show up.  Consumption of food or

        11       drink less than $10.

        12                  Again, the purpose here is to

        13       ensure that improper influence is not brought

        14       to bear.  There are situations, frankly, in

        15       which you're just better off buying your own

        16       lunch.  And we're not saying that there aren't

        17       situations where it's not better to err on the

        18       side of declining to accept benefits.

        19                  But general run-of-the-mill events

        20       where you're meeting constituents and the

        21       purpose is to meet constituents, not to meet

        22       with people who are attempting to influence

        23       you as a legislator through providing you with

        24       some benefit, that's not the intention of this



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         1       bill.

         2                  SENATOR BONACIC:    Okay.  Would

         3       you continue to yield, Mr. Schneiderman?

         4                  ACTING PRESIDENT BRESLIN:

         5       Senator Schneiderman, do you continue to yield

         6       to Senator Bonacic?

         7                  SENATOR SCHNEIDERMAN:    I will

         8       continue to yield, Mr. President.

         9                  ACTING PRESIDENT BRESLIN:    You

        10       may proceed.

        11                  SENATOR BONACIC:    Senator

        12       Schneiderman, you know, I remember that -- and

        13       I don't know what they call the school

        14       numbers, but it's the School for the Deaf, and

        15       they hold a reception here.  I think it's a

        16       breakfast or a lunch buffet.  And they don't

        17       have 25 people when they come up here, they

        18       might have six, and the value of that

        19       breakfast or brunch is more than $10.  And

        20       they have a lobbyist, which is under the NYSUT

        21       umbrella.

        22                  Is that a violation for the elected

        23       official to go to?

        24                  ACTING PRESIDENT BRESLIN:



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         1       Senator Schneiderman.

         2                  SENATOR SCHNEIDERMAN:    Again,

         3       through you, Mr. President, the issue is not

         4       how many of them there are, but how many

         5       people are invited.  If they're inviting

         6       members of the Legislature generally, it's not

         7       a problem.

         8                  Again, let me just -- perhaps I can

         9       shorten the time span, because the day is late

        10       and people have events to attend to back in

        11       their districts.

        12                  The goal here is to say we don't

        13       want to interfere with anyone's practice of

        14       their duties as a Senator.  If you go to an

        15       event with a lot of people, you're going to a

        16       charitable event, that's fine.

        17                  But quite frankly, the public is

        18       not concerned about that.  The public is

        19       concerned about the fact that there are

        20       occasions in which people are out individually

        21       with lobbyists, with people who employ

        22       lobbyists who are trying to influence the

        23       government, and that we want to make it

        24       absolutely clear that in those situations,



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         1       frankly, you just should buy your own lunch.

         2                  General events where you're meeting

         3       constituents -- firefighters, people who are

         4       coming with groups, inviting lots of us to

         5       events -- not covered, not a problem.

         6                  But there is an issue that has come

         7       up and that the public has raised that

         8       requires us, however many exceptions we

         9       create, to draw the line somewhere and say

        10       that if you are receiving a substantial

        11       benefit in a situation in which you can

        12       reasonably construe that there's a specific

        13       intent to influence just you and your vote,

        14       that is now prohibited under the ethics rules.

        15                  ACTING PRESIDENT BRESLIN:

        16       Senator Bonacic.

        17                  SENATOR BONACIC:    Senator

        18       Schneiderman, thank you for your patience.

        19                  On the bill.

        20                  SENATOR SCHNEIDERMAN:    Thank you.

        21                  ACTING PRESIDENT BRESLIN:

        22       Senator Bonacic, on the bill.

        23                  SENATOR BONACIC:    First of all, I

        24       think that we're tackling the issue of ethics



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         1       is a good thing.  And I guess we all agree

         2       this is a very small step and much more has to

         3       be done.

         4                  I'll tell you what's disturbing to

         5       me with respect to how we got here today.  We

         6       spent a year last year, the Temporary

         7       Commission on Reform, and -- on Rules and

         8       Administration Reform -- and we had public

         9       hearings and we had all of the good government

        10       groups in.  And we said, How can we make our

        11       process better?

        12                  And what they said -- they said

        13       many things.  But the one thing that stood out

        14       by all the groups -- Common Cause, the Brennan

        15       Center, the League of Women Voters, NYPIRG --

        16       you need a stronger committee system.  Your

        17       committee system is going to become the filter

        18       on which to debate, question, have public

        19       hearings, bring experts in, before a bill will

        20       get voted out on the floor.

        21                  And I have to tell you -- and it

        22       was six Democrats and three Republicans.  And

        23       you know what?  That committee did good work,

        24       because there was a good-faith effort by those



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         1       members to improve the system.  And we put

         2       those rules in place, to your credit and our

         3       credit.

         4                  Now, we had a Codes meeting at

         5       11:30 yesterday during the Governor's State of

         6       the State budget.  There are 17 members on the

         7       Codes Committee.  Five were there.  Because

         8       they had to make decision, should I blow off

         9       the State of the State or should I go to Codes

        10       for what I consider very serious

        11       legislation -- and complicated.  I mean, you

        12       read this over and over again to try to

        13       extract what's in here to do the right thing.

        14       And there were 12 members missing from the

        15       Codes Committee.

        16                  Now, I thought that was

        17       disrespectful to the Governor, it was

        18       disrespectful to the other members of the

        19       Codes Committee.  Because I look forward to

        20       their input and interaction on this

        21       legislation.

        22                  And we probably could have had a

        23       petition for a public hearing.  This would

        24       have been the right way to do it out of the



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         1       new rules.  And I happen to be here 20 years

         2       in the Assembly and Senate.  I've served under

         3       three governors.  I have never seen a

         4       committee meeting held during a State of the

         5       State of a governor's budget.  So that was not

         6       done right, that's point number one.

         7                  Now, in terms of the legislation

         8       itself, I don't believe it was done in a

         9       bipartisan manner.  We tried to make it --

        10       work together on it, but it was your baby.  It

        11       was the Democrat's baby.  They wanted to get

        12       an ethics bill out there.

        13                  And, you know, I'm one of those

        14       people that feel if you're ethically

        15       challenged, if you tend to be corrupt -- I

        16       don't care what legislation you pass, you're

        17       not going to root out those people that are

        18       ethically challenged or corrupt.  Okay?

        19                  Now, let me say, in conclusion,

        20       this bill has been criticized by the Brennan

        21       Institute, by Common Cause, by Governor

        22       Paterson.  There are big legal loopholes in

        23       this legislation.  And as we know, to the

        24       credit of the members here, member empowerment



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         1       is what makes government more transparent and

         2       does away with the pay-to-play culture.  Not

         3       in the other house, where the Speaker decides

         4       everything.  A bill never gets to the floor if

         5       he doesn't want it.

         6                  But in this house, to your credit,

         7       our credit, 38 members can get a bill to the

         8       floor and have it debated, regardless of the

         9       money of special interests.  That's a tribute

        10       to you.

        11                  And I happen to think most of you,

        12       mostly all of you are not dysfunctional, are

        13       not corrupt, and are generally honest.  And

        14       we've all been painted with this brush.

        15                  So we do -- and, you know, when you

        16       read the newspaper articles, they say this

        17       reform bill is a joke, it's window dressing

        18       for the elections.  And, you know, it's

        19       demeaning.  It's demeaning to do something

        20       that makes everybody proud.  All right?

        21                  And I will end this by saying we're

        22       all going to vote for this, because in today's

        23       day and age, if -- if -- one step back.

        24                  I just want to talk about the



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         1       potential for prosecutorial abuse.  That is

         2       disturbing here, with the enforcement officer

         3       being a Democrat forever.  That is very

         4       disturbing.  And in an age of instant

         5       Internet, where they could not only make

         6       Republicans target, you have enemies within

         7       your own party that want to stain you, it

         8       could be done in 24 hours if you have an

         9       aggressive enforcer that's partisan, that

        10       wants to hurt you.  And you won't know what

        11       hit you, because in 24 hours everything will

        12       be leaked.

        13                  And this is supposed to be

        14       confidential, a lot of this stuff with the

        15       Board of Elections.  And if there's a whisper

        16       to the press, it says you will take

        17       appropriate action.  What does that mean?

        18       There should be criminal sanctions if someone

        19       wants to abuse this office to stain people.

        20                  So I have a real problem with this.

        21       I think the Governor is against this bill

        22       because he says it doesn't go far enough.  And

        23       I'm disappointed that we allowed this huge

        24       legal loophole in the Assembly with attorneys



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         1       and clients.  We shouldn't have done that.

         2                  We could have done this much better

         3       had we worked together, because you do have

         4       good people here that want to do the right

         5       thing, that want to root out corruption and do

         6       good ethics.  And the bad actors, the public

         7       will eventually catch up to them and they'll

         8       be gone.

         9                  Thank you, Mr. Chairman.

        10                  ACTING PRESIDENT BRESLIN:    Thank

        11       you, Senator Bonacic.

        12                  Senator Diaz.

        13                  SENATOR DIAZ:    Thank you,

        14       Mr. President.

        15                  ACTING PRESIDENT BRESLIN:    On the

        16       bill, Senator Diaz.

        17                  SENATOR DIAZ:    On the bill.

        18                  Today, ladies and gentlemen, damas

        19       y caballeros, we are here finally making

        20       believe that we are dealing with ethics.  We

        21       got here in response to those editorial

        22       boards -- Times Union, New York Post, Daily 

        23       News, et cetera, et cetera, et cetera -- El 

        24       Diario La Prensa, et cetera, et cetera,



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         1       et cetera.  Mr. President and ladies and

         2       gentlemen, they have been pounding us day and

         3       night to come up with something credible,

         4       something that will end wrong appearance and

         5       that give transparency and full disclosure.

         6                  And today we are presenting a bill

         7       here.  Senator Schneiderman said the game is

         8       over.  Senator Squadron said this is a very

         9       difficult bill to swallow by many in this

        10       room.

        11                  So, ladies and gentlemen, if we are

        12       going to deal with this and end all the

        13       criticism by the editorial boards, we should

        14       bring a bill that gives transparency and that

        15       makes us fully disclose everything.  Not to do

        16       that is a mockery.  Not to do that is a joke.

        17       Not to do that is a farce.

        18                  And, ladies and gentlemen, damas y

        19       caballeros, this bill that we are presenting

        20       today is creating what we call a privileged

        21       class:  doctors, lawyers, and clergies.  We

        22       are in a privileged class that we are

        23       protected from disclosing certain clients.

        24                  And I'm saying I'm a clergy, and I



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         1       don't want to be in a privileged class.  I

         2       don't want to be part of this.  I have no

         3       problem with the whole world knowing who my

         4       clients are.  I have a problem telling the

         5       people what is the context of the conversation

         6       that I have with my client.  But I don't have

         7       a problem letting the whole world know who is

         8       my client and who I'm talking to.

         9                  So why create a privileged class?

        10       By the way, the majority of the criticism that

        11       we have is because lawyers don't fully

        12       disclose their clients.  But we are protecting

        13       lawyers here.

        14                  So if we're going to have

        15       transparency, if we are going to have full

        16       disclosure, let's have a bill that calls on

        17       everyone -- lawyers, doctors, ministers,

        18       everyone that wants to be part of this body --

        19       to fully disclose everything.  If you don't

        20       want to be -- if you don't want to disclose,

        21       then don't be part of this body.

        22                  But if you want to be part of this

        23       body, why, why keeping some people, pushing

        24       some of us -- some of you that are not in the



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         1       privileged class to fully disclose everything

         2       and keeping us, the privileged class, not

         3       fully disclosing something?  That is wrong.

         4       That is unacceptable.

         5                  So there is no transparency.  There

         6       is no full disclosure.  And tomorrow I might

         7       be criticized by whoever because I am voting

         8       no on this bill.  I would want me and every

         9       one of us to fully disclose our clients.  To

        10       protect lawyers is wrong.  And they are the

        11       ones that are every day in the papers, the

        12       papers pushing lawyers to disclose everything.

        13                  So you want to be a lawyer?  That's

        14       okay, be a lawyer.  But you want to be part of

        15       this body?  Disclose everything.  Disclose all

        16       your clients.  You don't have to tell us or to

        17       tell the whole world what is the duty or the

        18       business that you do with your client, but

        19       disclose the client.  Why being afraid of

        20       letting people know who your clients are?

        21                  So there is no transparency.

        22       Senator Squadron, I repeat, says that this is

        23       a very difficult bill to swallow by many in

        24       this room.  I hope that this bill will also be



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         1       very difficult to swallow by the editorial

         2       boards of this state.

         3                  This bill should not be passed.

         4       Let's send this bill back and have them make

         5       everyone, every lawyer, every doctor, every

         6       minister that are members of this body to

         7       fully disclose their clients and to have a

         8       real transparency, and then we vote for it.

         9                  I want real transparency.  I want

        10       full disclosure.  And I'm asking all of you to

        11       vote against this bill.  And I'm voting

        12       against it.

        13                  ACTING PRESIDENT BRESLIN:    Thank

        14       you, Senator Diaz.

        15                  Senator Saland.

        16                  SENATOR SALAND:    Thank you,

        17       Mr. President.

        18                  Would Senator Schneiderman yield,

        19       please.

        20                  ACTING PRESIDENT BRESLIN:

        21       Senator Schneiderman, will you yield to

        22       Senator Saland?

        23                  SENATOR SCHNEIDERMAN:    Yes, I'm

        24       glad to yield.



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         1                  SENATOR SALAND:    I don't know if

         2       this would be helpful; I would ask that he

         3       might yield to a series of questions, if

         4       that --

         5                  ACTING PRESIDENT BRESLIN:    If

         6       they're short and there's control, I'd be glad

         7       to.

         8                  SENATOR SALAND:    First, if I

         9       might, Senator Schneiderman, in the 4201

        10       school example that Senator Bonacic gave a bit

        11       earlier, you said something to the effect, I

        12       believe, that it would not be problematical

        13       because there would be invitations to perhaps

        14       the entire legislature.  And when you look at

        15       lines 47 and 48 and 49 on page 11, it

        16       basically says 25 people other than

        17       legislators, legislative staff.

        18                  So the fact that we might all be

        19       invited doesn't rise to the threshold.  It's

        20       the number of people who were there and who

        21       intended to be there at that event that really

        22       will control.  I say that not to be

        23       confrontational but merely to raise that

        24       point.



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         1                  SENATOR SCHNEIDERMAN:    Thank you.

         2       Through you, Mr. President, I see the line

         3       that Senator Saland is talking about, and I

         4       understand his point.  I think that the --

         5       that is one of the examples.  I think the next

         6       several provisions also would provide

         7       exceptions there.

         8                  But do I understand your point.

         9       When I made a reference to all of us being

        10       invited to attend, that includes people other

        11       than legislators --

        12                  SENATOR SALAND:    It may well be

        13       that there are intended to be 50 people from

        14       4201 schools and only 12 showed.

        15                  SENATOR SCHNEIDERMAN:    Yes.  Yes.

        16       And I meant to suggest that broad invitation

        17       to everyone.  Your point is well-taken that

        18       this does -- the point here is to say you

        19       can't have a couple of individuals seeking to

        20       curry favor and the only other people who are

        21       invited are the people they're attempting to

        22       influence.  So the point is well-taken.

        23                  However, I would also suggest that

        24       there are other exceptions to this



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         1       prohibition, including the general exception

         2       that if an event is related to our duties and

         3       responsibilities --

         4                  SENATOR SALAND:    I take no issue

         5       with your other comments.  Please.  That's

         6       fine.

         7                  SENATOR SCHNEIDERMAN:    Thank you.

         8                  SENATOR SALAND:    First, let me

         9       thank you.  I had the opportunity to speak

        10       with you on some of the matters that I am

        11       going to probably repeat here today just for

        12       purposes of putting them on the record, so to

        13       speak.

        14                  One of my concerns was alluded to

        15       briefly by Senator Bonacic, and that was under

        16       both the Executive Ethics Commission and the

        17       Legislative Ethics Commission there is a duty

        18       to sign a nondisclosure statement.  And the

        19       penalty for a member of the commission or a

        20       member of the staff violating that

        21       nondisclosure is that they're subject to

        22       appropriate action by the relevant commission.

        23                  I find that to be a matter of

        24       concern.  And I find it to be a matter of



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         1       concern because let's assume two weeks before

         2       a primary, or two weeks before a general

         3       election, somebody leaks something of a

         4       dubious or spurious nature that taints you.

         5       And obviously, within the limited amount of

         6       time, whatever your response is and whatever

         7       the resolution may be, you may be, as an

         8       elected official or a candidate, fatally

         9       damaged.  And to leave it in the hands of a

        10       commission to take appropriation action, to

        11       me, is not enough.

        12                  Now, I've looked at the Penal Law.

        13       I don't think it rises to the level of

        14       official misconduct.  I don't think the

        15       elements are there.

        16                  And what I am asking of you,

        17       Senator Schneiderman, is that you very

        18       seriously consider and take up with the other

        19       house the issue of criminalizing that type of

        20       breach.  I think it's critically important,

        21       and I think there are members here who could

        22       well be victimized by somebody who -- of

        23       either party, and be it a primary or general

        24       election -- could be the victims of that kind



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         1       of misconduct for which there would be minimal

         2       consequences.  And I would make that request

         3       of you.

         4                  Bear with me.  I just want to get

         5       to the relevant pages.

         6                  Okay, on page 19, there is the

         7       reference to the procedure which will be

         8       followed by the Legislative Commission on

         9       Ethics and Standards.  And I'm looking at

        10       lines 9 through 14, and it makes specific

        11       reference to alleged violations of certain

        12       sections of the Public Officers Law and any

        13       other matter referred to it by the Assembly or

        14       Senate Committee on Ethics or the Joint

        15       Legislative Commission on Ethics pursuant to

        16       subdivision 3 of this section.

        17                  And subdivision 3 makes reference

        18       to "any other oversight body."  And I'm not

        19       quite sure what "any other oversight body"

        20       might be and wonder if there's somebody here

        21       who might be able to just enlighten me as to

        22       what those other oversight bodies might be.

        23                  SENATOR SCHNEIDERMAN:    I'm sorry.

        24       Through you, Mr. President.  You're on



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         1       page 19?

         2                  SENATOR SALAND:    I'm looking at

         3       page 19, lines 9 through 14.  And it describes

         4       the procedure under preliminary review.  And

         5       it says in addition to taking up alleged

         6       violations of the Public Officers Law, they

         7       can take up any other matter referred to it by

         8       either the Assembly or Senate Ethics

         9       Committees or the Joint Legislative Commission

        10       on Ethics pursuant to subdivision 3.

        11                  And subdivision 3 also contains

        12       reference to another oversight body.  And I

        13       don't know what oversight bodies exist other

        14       than set forth in this same subparagraph.  Who

        15       else is there that can issue a complaint that

        16       this body would have to take up?

        17                  SENATOR SCHNEIDERMAN:    I'm sorry.

        18       Through you, Mr. President, I'm having a

        19       little trouble following along in the text.

        20       Where is the reference to other oversight

        21       bodies?

        22                  SENATOR SALAND:    I have to go

        23       back to line 3D.  Okay, that would be on page

        24       18, starting at line 48.



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         1                  SENATOR SCHNEIDERMAN:    Oh, okay.

         2       Through you, Mr. President, this reference to

         3       the other ethics entities.  Under this

         4       legislation there are several oversight bodies

         5       created.  There is an executive body, there is

         6       a legislative body, and there is the Lobbying

         7       Commission.  So referral from another

         8       oversight body refers to those commissions.

         9                  And I think this language

        10       essentially duplicates what exists in the

        11       existing law.  I don't think this is really a

        12       change functionally.

        13                  SENATOR SALAND:    So if in fact

        14       there's a complaint from the executive

        15       commission or the lobbying commission, that

        16       matter gets referred to and taken up by the

        17       legislative commission?

        18                  SENATOR SCHNEIDERMAN:    I think

        19       that the -- on page 19, line 12, it specifies

        20       "matters referred by the Assembly or Senate

        21       Standing Committees on Ethics or the Joint

        22       Legislative Commission on Ethics Standards."

        23       So I think that encompasses the other

        24       oversight bodies.



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         1                  SENATOR SALAND:    Again, it refers

         2       back to subdivision 3.  And that's where the

         3       language which I just made reference to is

         4       contained.

         5                  SENATOR SCHNEIDERMAN:    Excuse me.

         6       Through you, Mr. President, I'm having a

         7       little trouble with the cross-reference.  But

         8       let me try and satisfy Senator Saland.

         9                  But certainly the intention here is

        10       only to have reference among the bodies that

        11       are involved in regulating ethics in the

        12       Legislature, the ethics committees and the

        13       oversight bodies created herein.  (Pause.)

        14                  Through you, Mr. President.

        15       Senator Saland, I believe that the parameters

        16       are set out in a combination of the language

        17       that you have cited -- which refers again to

        18       the Assembly or Senate Standing Committees on

        19       Ethics or the Joint Legislative Commission on

        20       Ethics Standards -- and the language on

        21       page 17 of the bill that refers to the

        22       cross-referral provisions, again creating the

        23       authority to refer violations to the Executive

        24       Ethics and Compliance Commission or the Joint



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         1       Legislative Commission on Ethics Standards.

         2                  The only oversight bodies that are

         3       covered in this legislation are the oversight

         4       bodies that are created in this legislation

         5       and the existing Senate and Assembly Ethics

         6       Committees.

         7                  SENATOR SALAND:    Thank you,

         8       Senator.

         9                  We had the opportunity, I'm sure

        10       you recall, to discuss what I think is

        11       probably just a drafting problem dealing with

        12       the preliminary review and the secondary or

        13       second-phase review where the second-phase

        14       review -- and I think we'll find that at

        15       page 20 -- specifically provides that the

        16       commission will meet in executive session and

        17       the preliminary review has no provision to

        18       similar effect.

        19                  I would hope, by way of technical

        20       amendment -- I think in our discussion you

        21       indicated that these were all

        22       executive-session matters and that there would

        23       be an amendment to clarify that preliminary

        24       and second phase are in executive session.



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         1                  SENATOR SCHNEIDERMAN:    Yes.

         2       Through you, Mr. President, several other

         3       Senators have come forward and offered similar

         4       observations.  We are working on a chapter

         5       amendment to correct several technical

         6       matters.

         7                  Senator Saland called several to

         8       our attention, the look-back period with no

         9       deadline, and those are matters we're taking

        10       up.

        11                  I also want to add that the issue

        12       that has been raised earlier relating to the

        13       existence of an enforcement counsel and a

        14       special counsel, one a Democrat and one a

        15       Republican, we have attempted to address as

        16       well by a chapter amendment, proposed chapter

        17       amendment that I discussed with Senator

        18       Flanagan, who raised this issue with us last

        19       night.

        20                  So I do appreciate the input.  And

        21       subject to our ability to get agreement with

        22       the Assembly, many of these points are points

        23       well-taken that we are going to attempt to

        24       address.



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         1                  SENATOR SALAND:    Thank you,

         2       Senator.  And I won't go into the look-back.

         3       That's fine, your representation is more than

         4       satisfactory.

         5                  Over on page 29 --

         6                  ACTING PRESIDENT BRESLIN:    You're

         7       continuing to yield, Senator Schneiderman?

         8                  SENATOR SCHNEIDERMAN:    Yes.

         9                  SENATOR SALAND:    Oh, thank you,

        10       Mr. President.  I'm sorry.

        11                  Over on page 29 there is language

        12       to the effect of after the commission has

        13       imposed a penalty, the legislator is still

        14       subject to disciplinary action by the

        15       appointing authority as otherwise provided by

        16       law.

        17                  When you say "as otherwise provided

        18       by law," is that statutory, constitutional, or

        19       does it also apply to the rules, regulations

        20       and whatever procedures there may be of each

        21       house?

        22                  SENATOR SCHNEIDERMAN:    I'm sorry,

        23       I'm not sure I understand.  I think that's a

        24       general provision that is carried over from



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         1       existing law that indicates that this is not

         2       to be an exclusive definition of the authority

         3       of the body.

         4                  But what was the line?

         5                  SENATOR SALAND:    I'm on page 29.

         6       And if you look at line 3, notwithstanding any

         7       other provision of the law to the contrary, no

         8       other penalty, civil or criminal, may be

         9       imposed for failure to file or for false

        10       filing except that the appointing authority

        11       may impose disciplinary action as otherwise

        12       provided by law.  I omitted several things.

        13                  SENATOR SCHNEIDERMAN:    Right.  I

        14       mean, I think that's consistent with the rest

        15       of this paragraph, which defines the

        16       commission as an agency within the meaning of

        17       the State Administrative Procedure Act.  I

        18       think this is a commission and agency.  If

        19       there's some other area of law that provides

        20       them with authority, this is meant to make it

        21       clear that we're not revoking that, that this

        22       is not an exclusive provision.

        23                  But I think that this relates to

        24       the question of disciplinary provisions or



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         1       disciplinary actions provided by law.  It's

         2       meant to carry over any other disciplinary

         3       provisions that are authorized under current

         4       law.

         5                  SENATOR SALAND:    If I could call

         6       your attention to page 35 of the disclosure

         7       form.  There's new language added to

         8       paragraph 5 in the form of a new paragraph

         9       (b).  And it reads that if a reporting

        10       individual did business with or had matters

        11       other than ministerial matters before any

        12       state or local agency in the course of any

        13       employment, trade, business, profession or

        14       occupation engaged in by the reporting

        15       individual, list name, address, entity,

        16       description of activity.

        17                  Now, any employment, I would

        18       assume, at least at first blush, would mean as

        19       a legislator, as a businessperson, as an

        20       attorney.  So what this would seem to be doing

        21       is saying that you have to report any contact

        22       you have as a legislator, because it is a form

        23       of an employment or occupation, in dealing

        24       with any state or local agencies.  And if



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         1       that's not what's intended --

         2                  SENATOR SCHNEIDERMAN:    No, no,

         3       no.  And through you, Mr. President, I think

         4       that's covered by the portion of the sentence

         5       that refers to doing business, which the

         6       Legislative Ethics Commission has defined

         7       as -- that does not include your legislative

         8       activity.  Doing business means something that

         9       you're doing to make money outside of your

        10       duties as a legislator.

        11                  SENATOR SALAND:    Senator

        12       Schneiderman, just for purposes of the record

        13       and peace of mind, could you point out where

        14       that in fact is in the law?

        15                  SENATOR SCHNEIDERMAN:    I will --

        16       I don't have that here with me, but we will

        17       identify that for you, Senator Saland.

        18                  But it is certainly not the intent

        19       of this to include within the language of

        20       "employment, trade, business, profession or

        21       occupation" your duties as a legislator.  This

        22       form relates entirely to outside activities

        23       and the disclosure of outside activities.  So

        24       it is clearly not the intent to include that.



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         1                  SENATOR SALAND:    And I appreciate

         2       that.  And I would hope that if in fact we

         3       don't have language in some enabling portion,

         4       that it be clarified.  Because there's nobody

         5       here that doesn't multiple times a week deal

         6       with a local agency or, in the case of those

         7       outside the City of New York, another level of

         8       government.

         9                  And lastly, on page 37, again on

        10       the disclosure form.  And Section 8(a) is

        11       amended, there's new language combined with

        12       existing language, and it reads:

        13       "Additionally, if such an individual practices

        14       with a firm or corporation and is a partner or

        15       shareholder of the firm or corporation, give a

        16       general description of the principal subject

        17       areas or matters undertaken by such firm or

        18       corporation.  If the matters undertaken by

        19       such firm or corporation were such that no

        20       principal subject areas or matters were

        21       undertaken, give a general description of the

        22       practice or activities undertaken."

        23                  I would assume that it's clear that

        24       if you're not a partner or a shareholder, this



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         1       provision does not apply to whomever might be

         2       filling this application out -- this

         3       disclosure form out, excuse me.

         4                  SENATOR SCHNEIDERMAN:    The

         5       disclosure.

         6                  SENATOR SALAND:    Yes.

         7                  SENATOR SCHNEIDERMAN:    Yes.

         8                  SENATOR SALAND:    Thank you very

         9       much, Senator Schneiderman.

        10                  Thank you, Mr. President.

        11                  ACTING PRESIDENT BRESLIN:    Thank

        12       you, Senator Saland and Senator Schneiderman,

        13       for the collegiality.

        14                  We're getting close to the

        15       deadline.  Hopefully we won't have to exercise

        16       strict restraints.  We have about 25 minutes

        17       left on the appropriate allocation.

        18                  Next is Senator Liz Krueger.

        19       Senator Krueger.

        20                  SENATOR LIZ KRUEGER:    Thank you,

        21       Mr. President.  I'd like to speak on the bill.

        22       I apologize; I have a cold.  So I hope I

        23       consider can be heard clearly.

        24                  This isn't a perfect bill.  I have



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         1       appreciated all the dialogue back and forth

         2       and particularly appreciated Senator

         3       Schneiderman's efforts not only in writing

         4       this bill and coordinating its movement

         5       through both houses but also in the respect

         6       that was shown by my colleagues on both sides

         7       of the aisle in having serious and substantive

         8       questions about what the bill means, what's

         9       not there, what is there.

        10                  And I'll tell you, I have many

        11       agreements with the issues that were raised

        12       today by my colleagues on both sides of the

        13       aisle.  I in fact would prefer it to be a

        14       broader bill, to have actually have language

        15       included in it that was referenced through

        16       several of the hostile amendments.  I have

        17       bills that I have been carrying for years on

        18       ethics-related topics that I would have hoped

        19       would have been included in this bill as well.

        20       But you know what, they weren't.

        21                  It's not a perfect bill.  It's not

        22       the full loaf of bread.  It's not everything I

        23       hope we will get to here in the Legislature.

        24       But what it is is a bill that can pass both



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         1       houses of the Legislature and become law.  And

         2       I think that that is critical, that even if

         3       it's not perfect, it is a good start with

         4       important changes.

         5                  One of my colleagues referenced

         6       that if you're not ethical, there's really not

         7       that much we can do about it in changing the

         8       laws of New York State.  Well, I agree.  The

         9       perfect system is to only elect perfectly

        10       ethical people.  The dilemma, of course, is

        11       the decision of the voters leads to who ends

        12       up in office.  And each of us can tell our own

        13       stories from a partisan or from a personal

        14       perspective or from a geographical perspective

        15       as to why we each think the voters made

        16       mistakes at some point in time and voted the

        17       wrong person into office.

        18                  I, to be honest, don't understand

        19       how the people of Massachusetts voted for a

        20       new U.S. Senator last night who wasn't the

        21       Democratic woman.  And yet that was the will

        22       of the voters.

        23                  So we don't control the election of

        24       only perfectly ethical people, but what we can



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         1       do is not only strengthen but also clarify

         2       what the expectations of each other are and of

         3       what the public is of us as their elected

         4       officials.  And in fact this law will go a

         5       long way toward that goal.

         6                  I've been here since 2002.  I

         7       didn't see any other bills moving to the floor

         8       to actually be passed into law that would

         9       significantly improve the laws around ethics

        10       and the standards that are applied.

        11                  There was a great dialogue that

        12       took place about Senator Squadron's bill

        13       earlier.  It might also not be a perfect bill,

        14       but it's clear that it's attempting to clarify

        15       what is not okay as far as committing fraud

        16       while in office.

        17                  We can all argue about the details.

        18       We could even talk to Senator Squadron later

        19       about chapter amendments to further clarify

        20       and improve his law.  I look forward to doing

        21       that.

        22                  I know that I have other bills I

        23       wish were in this package today.  For example,

        24       I think we should go much further on limiting



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         1       lobbyist contributions and in requiring

         2       improved standards for our campaign finance

         3       funds.  I've carried a bill for years that

         4       would lay out what you could use your campaign

         5       funds for, what you couldn't use your funds

         6       for, that you couldn't use those for personal

         7       purposes.  Or, ironically, that you couldn't

         8       use them in perpetuity after you had left

         9       office or technically, in some cases, after

        10       you were deceased.  Some campaign committees

        11       continue after the named candidate is

        12       deceased.  I've always been a little confused

        13       about that.  I think we should deal with that.

        14                  I understand the arguments over

        15       putting limits on what consultants can do and

        16       the differences between campaign consultants

        17       and lobbyists and the gray area there.  I

        18       think New York City's law is a good law, and I

        19       would like us to move that as well.

        20                  I don't quite understand an overall

        21       obsession about the value of food as part of

        22       the discussion today.  I don't really think

        23       the public is as obsessed with which food will

        24       you eat or not eat at a not-for-profit event



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         1       or other community event.  But I think that

         2       the public wants to know who are we getting

         3       our campaign contributions from and what are

         4       the limits.

         5                  I, for example, would have a much

         6       greater problem with the fact that if you are

         7       a person who has twenty LLCs, you can give the

         8       maximum amount 20 times to one person, and

         9       you're really one entity.  If you're a

        10       corporation, you have to stop at $5,000 per

        11       year.  But if you're one person who has 20

        12       LLCs, you can give $9,500 twenty times over to

        13       any individual legislator.  I have a huge

        14       problem with that, and I wish we dealt with

        15       that in this bill.

        16                  I also carry a bill, and I wish it

        17       was included in this package as well, that

        18       would deny pensions to public officials

        19       convicted of crimes related to their duties.

        20       It's a pretty extreme bill, and many of you

        21       have shared with me why you have concerns

        22       about that.  But I would have liked to see

        23       that as well.

        24                  What I do know is that I can go



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         1       home if we pass this bill and tell people that

         2       we did provide much more specific transparency

         3       to who's doing business with whom, to who is

         4       receiving money from whom, to making sure that

         5       whether you're a lawyer or a consultant, if

         6       your client is doing business with the State

         7       of New York, that is going to be recorded,

         8       both by the client on their side of the

         9       assignment but also by you if you are being

        10       hired to represent them as a lawyer or as a

        11       consultant in a matter before the state.

        12                  I think it would have been fine if

        13       we went further on lawyer -- thank you so

        14       much.  Excuse me.  One giant cold in this

        15       chamber today.

        16                  So I would have liked to see us go

        17       further on disclosure, on tracking who was

        18       doing what in front of state agencies and

        19       whether it was a private business assignment

        20       or a function of your office as an

        21       Assemblymember or a Senator.

        22                  What we create with this bill is

        23       three separate entities that each will have

        24       the ability to go forward with regulation and



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         1       with rules that we will have to live under.

         2       So even when I say I wish there were more

         3       things in this bill, I know that through the

         4       passage of this law and the creation of these

         5       oversight entities, in fact I might get my

         6       wish through regulation even if it's not

         7       explicit in this law.

         8                  And I know that I am very open to

         9       having other ethics bills come to the floor of

        10       this house.  I'm very open to having campaign

        11       finance law, clean election laws come to the

        12       floor of this house.

        13                  And despite the frustrations that

        14       perhaps each of us has that we don't see this

        15       as a perfect bill -- some may think goes too

        16       far; some, like me, don't think it goes far

        17       enough -- we can make this a law in New York

        18       State and we will have to live under it.  And

        19       the public will also think you didn't go far

        20       enough, but we'll be able to tell them we took

        21       this significant step, and they will hold us

        22       accountable.  Not only for this law, but for

        23       what we do after this in moving forward with a

        24       broader agenda on ethics.



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         1                  And ultimately, yes, I want to be a

         2       member of the New York State Legislature where

         3       everyone can say, You don't need any of these

         4       laws, you don't need any of these

         5       clarifications, because every member of the

         6       Senate and the Assembly are perfectly ethical

         7       people.

         8                  But you know what they talk about

         9       democracy, right, it's not such a great system

        10       until you look at the alternatives.  And so in

        11       fact we need ethics legislation, we need to

        12       pass this bill today, and we need to not pat

        13       ourselves on the back that much because we

        14       have further to go.

        15                  But again, I've been here since

        16       2002.  I sat here when the other side of the

        17       aisle was in control of the house and didn't

        18       move legislation.  And you're right, this

        19       isn't a perfect bill and it wasn't a

        20       100 percent bipartisan discussion -- although

        21       we've been discussing this for a lot of

        22       months, so I'd be surprised if any of my

        23       colleagues didn't know some of the things that

        24       we were discussing throughout the process.



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         1                  I vote yes, Mr. President.

         2                  ACTING PRESIDENT BRESLIN:    Thank

         3       you, Senator Krueger.

         4                  Senator DeFrancisco on the bill.

         5                  SENATOR DeFRANCISCO:    Just in

         6       response to Senator Krueger, I don't think

         7       anybody on this side of the aisle is obsessing

         8       over food and when you can get a $10 lunch or

         9       a $20 lunch.

        10                  But the problem is I think

        11       everybody in this house should be obsessing

        12       over the fact that you want to be in

        13       compliance with whatever the new rules may be.

        14       And this is not something that we're just

        15       pulling something out of the air, because if

        16       you remember the good State Commission on

        17       Public Integrity actually got some records

        18       from a couple of lobbyists -- I think one was

        19       a lawyer, one was somebody else -- figured out

        20       what the total amount of the event was,

        21       divided by the number of people there, and

        22       attributed a certain amount of money to each

        23       legislator that may have showed up and shook

        24       hands and got the hell out of there like we



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         1       normally want to get out.

         2                  So -- but that clouds your

         3       integrity if someone interprets the laws that

         4       way, so I think that's why Senator Bonacic was

         5       very clear in trying to go through that area.

         6                  I'd ask Senator Schneiderman --

         7       this is my last area of inquiry -- if he would

         8       yield to a question.

         9                  ACTING PRESIDENT BRESLIN:

        10       Senator Schneiderman, will you yield to a

        11       question from Senator DeFrancisco?

        12                  SENATOR SCHNEIDERMAN:    Yes,

        13       Mr. President, I will yield.

        14                  SENATOR DeFRANCISCO:    Page 25,

        15       the first paragraph, paragraph 9, if you'd

        16       just read that.

        17                  And as you're going through it, it

        18       basically -- and this is dealing with

        19       financial disclosure -- it basically allows

        20       the commission to not require disclosure of a

        21       part of a financial statement if they find

        22       that -- if it was disclosed it would have no

        23       material bearing on the discharge of the

        24       reporting person's official duties.



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         1                  In other words, there's some

         2       authority that if you disclose something and

         3       it doesn't have to be brought to the public

         4       upon application if it's found not to have any

         5       bearing on the reporting person's official

         6       responsibilities.  Is that correct?

         7                  SENATOR SCHNEIDERMAN:    I

         8       believe -- through you, Mr. President, I

         9       believe that's correct.  Let me just take a

        10       moment to confirm it.

        11                  And I'm pretty confident this is

        12       just carried over from existing law, this is

        13       in the existing law relating to our disclosure

        14       already.

        15                  SENATOR DeFRANCISCO:    I

        16       understand that.  And I agree with you.

        17                  SENATOR SCHNEIDERMAN:    Yes,

        18       Mr. President, I believe that's correct.

        19                  SENATOR DeFRANCISCO:    And the

        20       point I would like to make, and then I have

        21       one last question, is that --

        22                  ACTING PRESIDENT BRESLIN:    Would

        23       you yield for one last question, Senator

        24       Schneiderman?



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         1                  SENATOR SCHNEIDERMAN:    One last

         2       question.

         3                  SENATOR DeFRANCISCO:    Before I

         4       ask that question, I just want to make one

         5       point.

         6                  I guess what I'm concerned about,

         7       we have a public disclosure -- or a disclosure

         8       form.  And admittedly, even under the existing

         9       rules, it doesn't have to be closed upon

        10       application if it's found not to have a

        11       material bearing on your performance of your

        12       duties.

        13                  If it doesn't have a material

        14       bearing on the performance of the duties, what

        15       in God's name do we have to disclose it in the

        16       first place for?  Why would we have to have an

        17       exception to a disclosure requirement if it

        18       has no bearing on your duties?  If it has no

        19       bearing on your duties, it shouldn't be in

        20       there in the first place.

        21                  So my question, if Senator

        22       Schneiderman would yield, is as follows.

        23                  ACTING PRESIDENT BRESLIN:

        24       Senator Schneiderman has yielded.



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         1                  SENATOR DeFRANCISCO:    The

         2       question is as follows.  Can you tell me what

         3       relevance it is for the general public in the

         4       performance of my duties why there's an

         5       additional category of how much money somebody

         6       makes that's required under this form?

         7                  SENATOR SCHNEIDERMAN:    Through

         8       you, Mr. President.  Senator DeFrancisco is --

         9       I believe you're referring to the fact that

        10       we've added an additional category of

        11       disclosure to narrow the ranges that are being

        12       disclosed?

        13                  SENATOR DeFRANCISCO:    And to

        14       require a higher range to be disclosed.

        15                  SENATOR SCHNEIDERMAN:    Well,

        16       through you, Mr. President, one of the

        17       complaints that has frequently been made is

        18       that our disclosure forms really don't provide

        19       much information to the public.  First of all,

        20       because the categories -- which are, you know,

        21       $20,000 to $50,000, $50,000 to $100,000, or

        22       whatever -- have actually been redacted up

        23       till now.  This bill changes that.

        24                  And there's an additional category



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         1       that is added because of the criticism that at

         2       the top end the range was just too vast.

         3                  SENATOR DeFRANCISCO:    All right.

         4       And would you yield to one other question?

         5                  ACTING PRESIDENT BRESLIN:    This

         6       is the absolute last question from Senator

         7       DeFrancisco.

         8                  SENATOR SCHNEIDERMAN:    Thank you.

         9       And I appreciate the fact that everyone has

        10       allowed Senator DeFrancisco to waive their

        11       rights to further questions as well.

        12                  SENATOR DeFRANCISCO:    Okay, but I

        13       didn't waive anything.

        14                  My point is simply this.  I'm

        15       looking for guidance.  What relevance does it

        16       have as to whether someone makes $10,000 extra

        17       a year or a million dollars extra a year?

        18       Isn't the real question who you're dealing

        19       with, whether you're compromising your public

        20       position?

        21                  What relevance does it have?  It

        22       may be nice that the public may want to know,

        23       but what relevance does it have in the

        24       performance of duties?



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         1                  SENATOR SCHNEIDERMAN:    Well,

         2       through you, Mr. President, the goal here is

         3       more disclosure and the goal here is more

         4       transparency.  And with all due respect, I do

         5       think that my constituents certainly would be

         6       much more interested in the fact that if I was

         7       making money because I have holdings in a

         8       particular company -- whether I was making

         9       $100 a year or $1 million a year -- as far as

        10       their assessment of what my concerns might be

        11       about that company or about the sector of

        12       industry to which that company belonged.

        13                  SENATOR DeFRANCISCO:    On the

        14       bill.

        15                  ACTING PRESIDENT BRESLIN:

        16       Senator DeFrancisco on the bill.

        17                  SENATOR DeFRANCISCO:    The point

        18       I'm trying to make is it's obviously very

        19       relevant as to how you earn your income and

        20       whether that income somehow affects your

        21       responsibilities as a legislator.

        22                  However, the gross amount of income

        23       to me is totally irrelevant.  The people may

        24       want to know a lot of personal information



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         1       about someone who might want to be a

         2       candidate.  If you're making no additional

         3       income, does that mean, do you draw the

         4       conclusion that you're more susceptible of

         5       graft or corruption?  Or that you're just

         6       incapable of making more money and therefore

         7       you're less likely to be a good legislator?

         8                  Or if you make a lot of money --

         9       and by the way, this additional category

        10       doesn't affect me, just so you know.  If you

        11       make a lot of money, if you make a lot of

        12       money, what does that mean?  That you made the

        13       money in an irresponsible or an unethical

        14       manner?  What does it mean?  What does it tell

        15       the general public?

        16                  And I think what it really does, in

        17       my judgment, is that it may attempt -- and

        18       this is true not only for legislators but

        19       people on committees that don't even have an

        20       income from those committees, they're doing

        21       public service, they have to fill these forms

        22       out.  Why would I ever want to disclose to the

        23       world how successful or unsuccessful I am in

        24       my outside endeavors for the luxury of



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         1       becoming a nonpaid commission member?

         2                  In my judgment, if it's not

         3       relevant, it's simply a chilling effect,

         4       whether it's too little income or too great an

         5       income, for good people to want to get

         6       involved in this business, whether it's

         7       elected office or appointed office.

         8                  So I guess the point is I would

         9       hope that when we review these items it

        10       shouldn't just be the people want to know.

        11       Because it should be is it relevant to the

        12       performance of the person's duties and does it

        13       help to determine whether the person is acting

        14       ethically.

        15                  Thank you, Mr. President.

        16                  ACTING PRESIDENT BRESLIN:    Thank

        17       you, Senator DeFrancisco.

        18                  Senator Craig Johnson on the bill.

        19                  SENATOR CRAIG JOHNSON:    Thank you

        20       very much.

        21                  Will the sponsor yield for a couple

        22       of very quick questions?

        23                  ACTING PRESIDENT BRESLIN:

        24       Senator Schneiderman, do you yield to Senator



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         1       Johnson?

         2                  SENATOR SCHNEIDERMAN:    For very

         3       quick questions, yes, Mr. President.

         4                  SENATOR CRAIG JOHNSON:    Thank you

         5       very much, Senator Schneiderman.

         6                  Senator Saland raised my issues

         7       with respect to the proposed new 5(b) in the

         8       disclosure form, but I want to address new

         9       language on page 37 of the bill.  It's a new

        10       language in Section 8(a).  I'll wait until you

        11       just grab it.  It's page 37, Section 8(a).

        12                  SENATOR SCHNEIDERMAN:    Yes, I

        13       have that, Senator Johnson.

        14                  SENATOR CRAIG JOHNSON:    Senator

        15       Schneiderman, with respect to the language,

        16       the first sentence reads:  "If the reporting

        17       individual practices law, is licensed by the

        18       Department of State as a real estate broker or

        19       agent or practices a profession licensed by

        20       the Department of Education, give a general

        21       description of the principal subject areas or

        22       matters undertaken by such an individual."

        23                  That's old language, nothing's

        24       changed; correct?



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         1                  SENATOR SCHNEIDERMAN:    Correct.

         2                  SENATOR CRAIG JOHNSON:    Okay.

         3       Will the Senator continue to yield for a

         4       question?

         5                  ACTING PRESIDENT BRESLIN:    Do you

         6       continue to yield, Senator Schneiderman, to

         7       Senator Johnson?

         8                  SENATOR SCHNEIDERMAN:    Yes.

         9                  ACTING PRESIDENT BRESLIN:    You

        10       may proceed, Senator Johnson.

        11                  SENATOR CRAIG JOHNSON:    Senator

        12       Schneiderman, I focus now on the new language

        13       that's being added.

        14                  If the nature of the reporting

        15       individual's practice or activities were such

        16       that -- can I just get a little order?  I'm

        17       sorry, I can't hear.

        18                  ACTING PRESIDENT BRESLIN:    May we

        19       have a little quiet?  Thank you.

        20                  SENATOR CRAIG JOHNSON:    Thank

        21       you, Mr. President.

        22                  "If the nature of the reporting

        23       individual's practice or activities were such

        24       that no principal subject areas or matters



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         1       were undertaken, give a general description of

         2       the practice or activities undertaken."  Can I

         3       get a clarification of what that means?

         4                  ACTING PRESIDENT BRESLIN:

         5       Senator Schneiderman.

         6                  SENATOR SCHNEIDERMAN:    Through

         7       you, Mr. President.  This is intended to cover

         8       a situation in which the individual is not

         9       undertaking -- is not actually engaged in the

        10       representation.

        11                  So the point here is that the first

        12       sentence indicates that you have to specify

        13       the principal subject areas of matters

        14       undertaken by the individual who is actually

        15       practicing law.  If that individual is not

        16       explicitly performing those activities but is

        17       nonetheless compensated for it -- if you are a

        18       senior partner and you're not actually

        19       performing the activities but the activities

        20       are nonetheless being performed by your firm,

        21       it's intended to cover that circumstance.

        22       Which is admittedly a rare circumstance, but

        23       it apparently does come up.

        24                  SENATOR CRAIG JOHNSON:    Will the



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         1       sponsor continue to yield.

         2                  SENATOR SCHNEIDERMAN:    Yes.

         3       Through you, Mr. President, I will continue to

         4       yield.

         5                  SENATOR CRAIG JOHNSON:    Senator

         6       Schneiderman, I'm not trying to be difficult,

         7       I'm just a little befuddled in the sense

         8       that --

         9                  ACTING PRESIDENT BRESLIN:

        10       Through the chair.  Would you like Senator

        11       Schneiderman to continue to yield?

        12                  SENATOR CRAIG JOHNSON:    Oh, we

        13       did that already.  Yes, Mr. President.

        14                  ACTING PRESIDENT BRESLIN:    No,

        15       you didn't.

        16                  SENATOR CRAIG JOHNSON:    Of

        17       course.  Through you, Mr. President.

        18                  Senator Schneiderman, again, I'm

        19       just a little confused by this.  If an

        20       individual is a lawyer and they are of counsel

        21       or an associate at a law firm, and they are

        22       a -- maybe they are a general litigator, they

        23       are in the litigation department of a law

        24       firm, what are they required under this



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         1       section to do?

         2                  SENATOR SCHNEIDERMAN:    Through

         3       you, Mr. President, this sentence was added

         4       because of an admittedly unusual circumstance

         5       which was not being picked up by the

         6       preexisting language.  The preexisting

         7       language refers to the subject matters of

         8       areas undertaken by such individuals.  So

         9       that's if I'm a lawyer, the things that I am

        10       working on.

        11                  There are some circumstances in

        12       which lawyers are being compensated for work

        13       that goes on in their firm but they as

        14       individuals are not engaged in that practice.

        15       So that particular odd exception is picked up

        16       by this sentence.

        17                  SENATOR CRAIG JOHNSON:

        18       Mr. President, will the sponsor continue to

        19       yield?

        20                  ACTING PRESIDENT BRESLIN:

        21       Senator Schneiderman, will you continue to

        22       yield?

        23                  SENATOR SCHNEIDERMAN:    I will

        24       continue to yield.



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         1                  ACTING PRESIDENT BRESLIN:    You

         2       may proceed.

         3                  SENATOR CRAIG JOHNSON:    Through

         4       you, Mr. President, so a hypothetical is if I

         5       am -- or if a Senator or an Assemblymember who

         6       is also a lawyer is a partner in a firm and

         7       they're a partner in real estate matters, but

         8       a tax matter comes in through that partner,

         9       that partner is able to bring in business,

        10       does no work related to it, but derives

        11       compensation from it, this new sentence, this

        12       second sentence that we've read, this requires

        13       now the disclosure of that matter?

        14                  SENATOR SCHNEIDERMAN:    No.

        15       Through you, Mr. President.  Again, this is a

        16       very narrow provision.  This is a provision in

        17       which no principal subject areas or matters

        18       are undertaken by the individual.  This is

        19       that rare dream job where you actually don't

        20       do anything, but you get compensated for the

        21       practice of others -- to which we all aspire

        22       when we retire from here.  But it was not

        23       picked up by the previous language.

        24                  If you are engaged in any practice,



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         1       any subject matter area, you have to show --

         2       you have to disclose what area you practice

         3       in.  There are some people who apparently are

         4       not engaged in any subject matter area or

         5       practice.  So if you're a litigator, you don't

         6       have to disclose the tax stuff, you disclose

         7       that you're a litigator.

         8                  Apparently there's some people who

         9       don't have any subject matter area and yet are

        10       receiving compensation for the business of the

        11       firm, and that's what this is designed for.

        12                  SENATOR CRAIG JOHNSON:

        13       Excellent.  Thank you very much.

        14                  Mr. President, on the bill.

        15                  ACTING PRESIDENT BRESLIN:

        16       Senator Johnson on the bill.

        17                  SENATOR CRAIG JOHNSON:    I want to

        18       thank you, Senator Schneiderman and Senator

        19       Squadron and the leader, Senator Sampson, for

        20       sponsoring and leading the effort.

        21                  Obviously, and hearing the very

        22       good questions by my colleagues on both sides

        23       of the aisle with respect to this bill, a lot

        24       more work has to be done.  But you have to



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         1       start somewhere.  And if you don't start

         2       somewhere, the problems are going to continue

         3       to pile up.

         4                  I'm going to sponsor this piece of

         5       legislation.  I think we have more ways to go.

         6       I look forward to working with both sides of

         7       the aisle to craft other pieces of

         8       legislation.  Clearly, Senator Bonacic, you've

         9       indicated that, that we do have places to go,

        10       and I look forward to going in those places

        11       with you.

        12                  But for today, I think it's

        13       important to pass this piece of legislation to

        14       set an example for New York to see.  So I'll

        15       be voting aye on the bill.

        16                  Thank you very much, Mr. President.

        17                  ACTING PRESIDENT BRESLIN:    Thank

        18       you, Senator Johnson.

        19                  Senator Flanagan.

        20                  SENATOR FLANAGAN:    Would Senator

        21       Schneiderman yield to several questions,

        22       please.

        23                  ACTING PRESIDENT BRESLIN:

        24       Senator Schneiderman, would you yield to



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         1       Senator Flanagan?

         2                  SENATOR SCHNEIDERMAN:    Mr.

         3       President, I'll be glad to yield to Senator

         4       Flanagan.

         5                  ACTING PRESIDENT BRESLIN:

         6       Senator Flanagan.

         7                  SENATOR FLANAGAN:    Thank you.

         8                  First, I appreciate the time

         9       yesterday and today.  I appreciate the

        10       dialogue and communication.  I do think it's

        11       helpful.

        12                  And a lot of our colleagues have

        13       made comments.  I feel, like most people, I

        14       think what a lot of us are trying to do is

        15       figure out how to do the right thing, how to

        16       stay out of trouble, and how to interpret some

        17       of these provisions so that nobody does get

        18       into trouble.

        19                  So specifically, following up on

        20       something Senator Saland had mentioned and I

        21       think Senator Johnson alluded to it, can

        22       you -- on page 35 of the bill, Section 5(b),

        23       which you had an extended discussion with

        24       Senator Saland on that provision.  I want to



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         1       take a different tack on that.

         2                  If I interpret this correctly, if I

         3       do work as an attorney -- or, for that matter,

         4       anybody does work as an attorney -- and I

         5       don't do anything with the State of New York

         6       but I work on a zoning matter or I work on a

         7       permit or I work on something, say, in the

         8       Surrogate's Court, it appears to me that I

         9       would have to list every single thing.

        10                  So if you're representing somebody

        11       and it's a -- say it's a zoning application

        12       and you are dealing with a municipality, you

        13       may be dealing with the Health Department, it

        14       appears that all of that activity would have

        15       to be disclosed.

        16                  SENATOR SCHNEIDERMAN:    Through

        17       you, Mr. President.  If you are, again, doing

        18       business, which means you're doing this to

        19       make money, it's not just to help

        20       constituents -- if you're doing business and

        21       you are appearing in front of an agency, a

        22       zoning board, and being paid to do it, for

        23       something other than a ministerial matter --

        24       which means something as to which there's



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         1       discretion -- yes, you do have to disclose

         2       that.  That's a part of your money-making

         3       outside activities.

         4                  SENATOR FLANAGAN:    And that's

         5       clearly what you intend.

         6                  SENATOR SCHNEIDERMAN:    Yes.  You

         7       have to disclose -- so for example, if you are

         8       representing a client before a local zoning

         9       board in your district and you're being paid

        10       to represent them, yes, that is something you

        11       have to disclose it.

        12                  SENATOR FLANAGAN:    Okay, let me

        13       ask this.  Going to --

        14                  ACTING PRESIDENT BRESLIN:

        15       Senator, do you wish Senator Schneiderman to

        16       yield?

        17                  SENATOR FLANAGAN:    I'm sorry.

        18       Would Senator Schneiderman continue to yield?

        19                  ACTING PRESIDENT BRESLIN:

        20       Senator Schneiderman, do you yield?

        21                  SENATOR SCHNEIDERMAN:    Yes,

        22       Mr. President.

        23                  SENATOR FLANAGAN:    If I am

        24       representing -- or it doesn't matter, I'm



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         1       using me as a reference.  It could be

         2       applicable to a lot of different people in

         3       both houses.

         4                  You're working on a matter in a

         5       local government having absolutely nothing to

         6       do with the State of New York.  What is the

         7       relevance of having to make that disclosure?

         8       What is achieved by having someone have to do

         9       that?

        10                  Because I can tell you, for anyone

        11       who may actively try and practice, this line

        12       here with four or five lines, you're going to

        13       need a small volume if you're doing any real

        14       work.  Because you're now going to have to

        15       describe every single thing you do that

        16       involves government, period.

        17                  SENATOR SCHNEIDERMAN:    Mr.

        18       President, I don't think you have to describe

        19       anything you do that involves government,

        20       period.

        21                  This has to do with representing

        22       someone in matters before a state or local

        23       agency.  So this means you are actually

        24       appearing representing someone.  It doesn't



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         1       mean you are filing things, which is a

         2       ministerial act.  It doesn't mean any other

         3       interaction.

         4                  But yes, Senator Flanagan, if I am

         5       representing a client and I am not

         6       representing them in front of the state

         7       government but in front of the government of

         8       the City of New York or of some other local

         9       community, I think there is a legitimate

        10       concern that those of us who are in positions

        11       of authority as public figures should disclose

        12       our interactions with local governments of the

        13       State of New York as well as with the state

        14       government.  And that's what this provision

        15       requires.

        16                  SENATOR FLANAGAN:    So that would

        17       apply to -- Mr. President, would Senator

        18       Schneiderman continue to yield?

        19                  SENATOR SCHNEIDERMAN:    Yes, I

        20       yield.

        21                  ACTING PRESIDENT BRESLIN:    He

        22       continues to yield.

        23                  SENATOR FLANAGAN:    That would

        24       apply to the Health Department?



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         1                  SENATOR SCHNEIDERMAN:    Through

         2       you, Mr. President.  Again, if you are, as a

         3       matter of your business, being paid to

         4       represent someone in dealing with the Health

         5       Department -- say, for example, you were

         6       retained by a major hospital to go in and

         7       represent them because the Health Department

         8       is subjecting them to disciplinary

         9       proceedings -- yes, you would have to disclose

        10       that.

        11                  SENATOR FLANAGAN:    If I could

        12       shift gears, Senator Schneiderman.

        13                  ACTING PRESIDENT BRESLIN:    Would

        14       you like Senator Schneiderman to continue to

        15       yield?

        16                  SENATOR FLANAGAN:    Yes, I would,

        17       Mr. President.

        18                  ACTING PRESIDENT BRESLIN:

        19       Senator Schneiderman?

        20                  SENATOR SCHNEIDERMAN:    I continue

        21       to yield, Mr. President.

        22                  SENATOR FLANAGAN:    Going back to

        23       the discussion you had with Senator Bonacic,

        24       you used a phrase that I'd like to go back to



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         1       just to make sure what your intention was.

         2                  Following the disclosure by the

         3       client of a relationship if you're doing

         4       business, you used the phrase that there would

         5       have to be disclosure if you share in the

         6       profits of the firm.  Now, in --

         7                  SENATOR SCHNEIDERMAN:    I don't

         8       remember the exact context, but yes, one of

         9       the principal objectives of the disclosure

        10       requirement for those doing business with the

        11       state is if I'm being paid directly or if I'm

        12       sharing in the profits of the firm, correct.

        13                  SENATOR FLANAGAN:    But relative

        14       to the language of the bill, that's not what

        15       the bill says.  It references partner,

        16       manager, director.  It doesn't say anything

        17       about one who may share in the profits of the

        18       firm.

        19                  SENATOR SCHNEIDERMAN:    Well,

        20       actually -- through you, Mr. President -- on

        21       page 13, and I believe this is what I was

        22       discussing with Senator Bonacic, the issue of

        23       the reportable business relationship does

        24       refer specifically to whether or not I or any



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         1       of us is a proprietor, partner, director,

         2       officer or manager or owns or controls

         3       10 percent or more of the stock of such entity

         4       or 1 percent in the case of a corporation

         5       whose stock is regularly traded.

         6                  So the ownership interest is in

         7       fact something that we address directly.

         8                  SENATOR FLANAGAN:    Okay.  But

         9       your phrase referencing sharing in the profits

        10       of the firm -- and I don't mean to split

        11       hairs; I think these are important

        12       considerations from a very practical

        13       standpoint -- someone could be a working for

        14       an entity and not be a manager, not be a

        15       director, not be a partner, not have ownership

        16       of any stock, and yet share in the profits of

        17       the firm.

        18                  So if we're looking at legislative

        19       intent, I would go to the plain reading of the

        20       statute and say that what you said on the

        21       floor would not be applicable unless you fit

        22       into one of those specific categories.

        23                  SENATOR SCHNEIDERMAN:    Through

        24       you, Mr. President.  I guess the -- certainly



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         1       the intent of this language -- and I believe

         2       it covers everything when you refer to

         3       proprietor, partner, owner, control of

         4       10 percent.  The point here is that it's a

         5       reportable business relationship.  If I am

         6       hired to do work myself or if I am benefiting

         7       from the relationship.

         8                  This is intended to exclude

         9       situations in which someone is a salaried

        10       employee and whether there's more money or

        11       less money paid doesn't affect my actual

        12       compensation.

        13                  And I believe we've covered

        14       everything.  But if you have a specific

        15       suggestion for something we could add to our

        16       chapter amendment, I'd be glad to hear it.

        17       But that is certainly the intent.

        18                  SENATOR FLANAGAN:    Mr. President,

        19       would Senator Schneiderman continue to yield?

        20                  ACTING PRESIDENT BRESLIN:

        21       Senator Schneiderman, do you continue to

        22       yield?

        23                  SENATOR SCHNEIDERMAN:    Yes.

        24                  ACTING PRESIDENT BRESLIN:



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         1       Senator Flanagan.

         2                  SENATOR FLANAGAN:    Two other

         3       areas.

         4                  The excess contribution piece --

         5       and we had had a discussion about that.  I

         6       just want to clarify what that standard is,

         7       because we're shifting the burden under this

         8       legislation.

         9                  Now a campaign committee can have a

        10       civil penalty of up to $10,000 and a fine as

        11       well -- returning money and civil penalties of

        12       up to $10,000.

        13                  SENATOR SCHNEIDERMAN:    Yes, there

        14       are --

        15                  SENATOR FLANAGAN:    A lot of the

        16       members in both houses have periodically

        17       gotten letters saying "By the way, we

        18       overcontributed, you need to send us money

        19       back."  Now, we wouldn't know that unless we

        20       were informed of it.

        21                  So it seems that we're shifting the

        22       burden to a campaign committee, and there's no

        23       way that we'd know.  So how does one protect

        24       oneself against that kind of problem?



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         1                  SENATOR SCHNEIDERMAN:    Through

         2       you, Mr. President, you can't be subject to

         3       any penalty without notice.

         4                  In fact, page 53 of the bill,

         5       line 42, actually has a mens rea element.  If

         6       you accept the contribution, it has to be

         7       under circumstances evincing an intent to

         8       violate such law.  So you have to have that

         9       intent if you unlawfully accept a contribution

        10       in excess of a contribution limitation.

        11       Inadvertent, accidental -- not covered here.

        12                  And in fact, as we discussed

        13       before, there is an opportunity to cure that

        14       is provided.  In fact, under this law, there

        15       is this explicit provision that you need a

        16       60-day period before -- there must be a vote

        17       within 60 days to authorize the investigation

        18       to go forward, and within that period of time

        19       you can deal with the situation.

        20                  But it wouldn't matter anyway,

        21       because you have to have the intent to violate

        22       the law.  So if you're not on notice, they

        23       can't show you have intent to violate the law.

        24                  SENATOR FLANAGAN:    Last -- if



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         1       Senator Schneiderman would continue to yield.

         2                  ACTING PRESIDENT BRESLIN:

         3       Senator Schneiderman, do you --

         4                  SENATOR SCHNEIDERMAN:    Last

         5       question, Mr. President.  Yes, last question,

         6       5:09, Mr. President.

         7                  ACTING PRESIDENT BRESLIN:    5:09.

         8                  SENATOR FLANAGAN:    5:09 doesn't

         9       really matter to me.  The fact is we're doing

        10       this bill because we need to.

        11                  Going back to what Senator Bonacic

        12       had talked about -- and I gave you my specific

        13       concerns on the enforcement counsel.  I

        14       believe it is fair to represent that all

        15       candidates, statewide, state officials like

        16       us, and all local candidates -- county

        17       executives, village mayors, town

        18       supervisors -- all of them will be subject to

        19       the jurisdiction of this enforcement counsel

        20       by virtue of the fact that anything that gets

        21       filed with the board, they have jurisdiction.

        22                  SENATOR SCHNEIDERMAN:    Yes.  Any

        23       of the local entities are required to file,

        24       yes, correct.



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         1                  SENATOR FLANAGAN:    Okay.  And I

         2       appreciate the potential draft language and

         3       the chapter amendment for the enforcement

         4       counsel.

         5                  I want to be clear, I don't believe

         6       that it's a co-enforcement counsel at all.

         7       You allow the deputy, maybe, you allow the

         8       deputy maybe to comment.  So --

         9                  ACTING PRESIDENT BRESLIN:

        10       Senator Flanagan, are you on the bill now?

        11                  SENATOR FLANAGAN:    Thank you,

        12       Senator Schneiderman.

        13                  On the bill.

        14                  ACTING PRESIDENT BRESLIN:

        15       Senator Flanagan on the bill.

        16                  SENATOR FLANAGAN:    This is the

        17       kind of thing that gets dicey, because

        18       everybody gets antsy when you have to get up

        19       and talk about these kinds of things.  But I

        20       John DeFrancisco and others raised some valid

        21       points.

        22                  By and large, a lot of people, if

        23       not the overwhelming majority, are trying to

        24       do the right thing.  And knowing the rules and



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         1       knowing guidelines and getting the

         2       interpretations correct is extraordinarily

         3       important.

         4                  My concern is with the change at

         5       the Board of Elections.  I don't believe that

         6       this is bipartisan at all.  I believe that

         7       we're taking a body and making it intensely

         8       partisan.  And now basically you're going to

         9       have a member of the Democratic Party -- and I

        10       would feel the same by the way it were

        11       Republican, because I think it takes away the

        12       balance.  You're setting up a scenario now

        13       where for certainly the foreseeable future, if

        14       not in perpetuity, the enforcement arm of the

        15       Board of Elections will be completely

        16       controlled by the Democrats.

        17                  Senator Bonacic talked about

        18       potential prosecutorial abuse.  I agree.  I

        19       think the opportunity is there, and I don't

        20       think there's enough check and balance.

        21                  Take the election that just took

        22       place in Massachusetts.  It wouldn't be beyond

        23       the realm of possibility to suggest that

        24       somehow in the last couple of weeks of the



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         1       campaign an investigation comes out, and

         2       there's nothing in this bill that prevents the

         3       release of all that information.  An

         4       investigation can be started, it can take a

         5       long time, not bear any fruit and just be left

         6       hanging out there, and damage not only sitting

         7       elected officials but people who are

         8       candidates.

         9                  I think it is setting up a system

        10       that is way more partisan than it should be.

        11       And if there's going to be any further

        12       discussions about this, that's the kind of

        13       fundamental change that we should be making.

        14                  ACTING PRESIDENT BRESLIN:    Thank

        15       you, Senator Flanagan.

        16                  Senator Foley on the bill.

        17                  SENATOR FOLEY:    Thank you,

        18       Mr. President.

        19                  I stand here this evening in strong

        20       support for this proposed legislation.  And

        21       coming from a background, Mr. President, as

        22       supervisor in the past and also as county

        23       legislator, this Senator over a period of

        24       years has been part of efforts at the local



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         1       governmental level to greatly strengthen those

         2       local ethics laws.

         3                  And in so doing, when we strengthen

         4       these laws, we regain the public's confidence

         5       in those local governments.  And by regaining

         6       that particular confidence, we then regain

         7       people's confidence in the system of governing

         8       and in politics in general.

         9                  I know where I speak from.  Prior

        10       to being a State Senator, I was the supervisor

        11       of the Town of Brookhaven.  Brookhaven had a

        12       shameful nickname, a shameful nickname that

        13       rhymed with Brookhaven.  And it was earned

        14       over a period of decades where, among other

        15       things, the politically favored few received

        16       multi-million-dollar no-bid insurance

        17       contracts.  That did not change until this

        18       Senator became the supervisor.  And when we

        19       went into that particular office, not only did

        20       we clean house but we changed the ethics laws

        21       of that particular level of government, and in

        22       so doing helped to restore the confidence in

        23       that particular level of government where

        24       today it is once again called Brookhaven.



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         1                  That's what we're doing today here

         2       in Albany.  When I was elected over a year

         3       ago, there was a crisis of confidence in this

         4       particular Capitol.  We heard about

         5       dysfunctionality.  We heard about the culture

         6       of corruption that afflicted some elements --

         7       not all, but some -- in this particular

         8       Capitol.

         9                  Today's passage of this legislation

        10       is not a minor step, it's not a step at all.

        11       It is a major achievement to have this

        12       approved today, full well knowing that more

        13       needs to be done in the future.

        14                  But I can stand here tonight,

        15       strongly support this legislation, and say to

        16       those cynics who believed that nothing would

        17       ever change in this Capitol that within the

        18       first year of taking the majority of this

        19       particular house, that we are bringing

        20       meaningful change to this Capitol, we're

        21       bringing substantial change to this Capitol,

        22       and I think the proof of the pudding, if you

        23       will, will be the fact that this will receive

        24       wide bipartisan support tonight.



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         1                  So I stand here this evening

         2       strongly supporting this legislation.  It is

         3       in keeping with this Senator's let's say fight

         4       over a period of decades now, first in the

         5       county legislature, then in the Town of

         6       Brookhaven, and now at the state governmental

         7       level, to bring ethics reforms that will

         8       restore confidence.

         9                  And I think after tonight's vote we

        10       are starting to restore confidence so the

        11       public can once again believe again in our

        12       democratic, small D, in our democratic

        13       institutions.

        14                  Thank you, Mr. President.

        15                  ACTING PRESIDENT BRESLIN:    Thank

        16       you, Senator Foley.

        17                  And can we have some quiet.  We

        18       only have a couple more speakers.

        19                  Senator Griffo.

        20                  SENATOR GRIFFO:    Mr. President,

        21       would Senator Schneiderman yield for a quick

        22       question or clarification?

        23                  ACTING PRESIDENT BRESLIN:    Will

        24       you yield to a question for clarification from



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         1       Senator Griffo?

         2                  SENATOR SCHNEIDERMAN:    Yes,

         3       Mr. President, I will yield for either a quick

         4       question or a clarification.

         5                  SENATOR GRIFFO:    Thank you,

         6       Senator.

         7                  We've discussed a number of

         8       illustrations here relative to the standards

         9       portion on page 11, on what's governed by the

        10       bill.  And as you know, I would think that

        11       Legislative Law Article 1A would apply to this

        12       bill.

        13                  So the question is, who else, if

        14       you look at that, is governed by this bill?

        15       Like for instance under Legislative Law 1A,

        16       going down through all of them, it says

        17       municipal officers.  So the question would be

        18       would all local government officials like

        19       mayors, town supervisors, county legislators,

        20       county execs, also have to comply particularly

        21       with the standards portion?

        22                  SENATOR SCHNEIDERMAN:    Through

        23       you, Mr. President.  I'm sorry, what line are

        24       you on?  What page are you on?



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         1                  SENATOR GRIFFO:    I'm talking

         2       about page 11, the standards portion of the

         3       bill, but then talking about Legislative Law

         4       Article 1A, which describes the term of

         5       "public official," which I think would apply

         6       to this particular piece of legislation.  It

         7       outlines a public official, such as a member

         8       of the State Legislature, Governor, Lieutenant

         9       Governor, officers or employees of statewide

        10       elected offices, officers or employees of

        11       state agencies.  Then it talks about municipal

        12       officials.  Now, that is Legislative Law

        13       Article 1A.

        14                  SENATOR SCHNEIDERMAN:    I'm sorry,

        15       Mr. President, I'm looking at page 11 and I

        16       don't know where we are.  Could you give me a

        17       line?

        18                  SENATOR GRIFFO:    No, no, not

        19       specifically on page 11.  I'm saying that

        20       Legislative Law 1A, which describes the term

        21       "public official," would apply to a bill that

        22       we're passing like this because it deals with

        23       public officials.

        24                  So I guess the question is, would



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         1       everything that we have listed here under the

         2       standards portion specifically apply to local

         3       officials?  That's the question.  Would they

         4       be bound by this too, such as all of the

         5       standards provisions that are listed on

         6       page 11 that start on line 30 and go all the

         7       way through?

         8                  SENATOR SCHNEIDERMAN:    Well,

         9       excuse me.  Through you, Mr. President, this

        10       is a big piece of legislation.  Certainly as

        11       far as the ethics portion goes, the ethics

        12       oversight bodies only have jurisdiction over

        13       state officials.

        14                  SENATOR GRIFFO:    Understood.

        15                  SENATOR SCHNEIDERMAN:    But I'm

        16       not quite -- if that's the question, then the

        17       answer is no.

        18                  SENATOR GRIFFO:    And on the

        19       standards portion, such as what event they

        20       could attend, the widely attended events, the

        21       specific aspects that we talked about, nominal

        22       gifts, things like that, would that all apply,

        23       then, to local officials also?

        24                  SENATOR SCHNEIDERMAN:    Through



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         1       you, Mr. President, no.  The legislative

         2       ethics rules regulate the Legislature.  The

         3       executive ethics rules regulate the executive

         4       branch of the state government.

         5                  Unless there's something very

         6       explicit which I'm missing, this is -- the

         7       ethics portion of this relates to the state

         8       government.

         9                  SENATOR GRIFFO:    Okay.  Thank

        10       you.

        11                  ACTING PRESIDENT BRESLIN:    Thank

        12       you, Senator Griffo.

        13                  Senator McDonald.

        14                  SENATOR McDONALD:    Thank you,

        15       Mr. President.  On the bill.

        16                  ACTING PRESIDENT BRESLIN:

        17       Senator McDonald on the bill.

        18                  SENATOR McDONALD:    I want to

        19       thank the people who brought the bill before

        20       us.  I wish it was stronger.  I wish we got to

        21       vote on it last year.

        22                  It's the beginning.  It's

        23       necessary.  But we cannot allow people to be

        24       exempt from participating.  There's no special



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         1       classes.  I'm going to vote for it.  I was

         2       going to vote for it last year.  I was new, I

         3       wanted to make sure I worked within the

         4       process.  It should not be exempt for any

         5       occupation, any region, anybody.  And that's

         6       in the ethics portion.

         7                  Additionally, I think we've got to

         8       start addressing the fundraising portion.  One

         9       of the creeping realities in American society

        10       is it's become a rich person's game:

        11       Politics, government, elected officials.  If

        12       you don't come from a rich family, you don't

        13       get to play.

        14                  I don't like that.  I think we

        15       should be restricting personal money coming

        16       into campaigns just like we do raising money.

        17       This is not going to be the House of Lords,

        18       like in England.  This is for people.  Times

        19       have got to change.

        20                  I'm willing to work across the

        21       aisle -- many good people over there working

        22       with us -- to look at the exemptions, to look

        23       at the fundraising, to look at the special

        24       category of people.  I was told that of the



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         1       100 U.S. Senators, they're all millionaires,

         2       or close to.  What has this country become?

         3       Everything we're against.

         4                  I live in Saratoga County, where

         5       the Battle of Saratoga was fought so elitists

         6       don't rule -- and now we're slipping into it.

         7                  So I ask with great passion that we

         8       start making this a populist house.  Not

         9       because of a particular occupation -- a

        10       person's occupation should have nothing to do

        11       with it -- but to let everybody in here, and

        12       to stop controlling politically incorrect

        13       people from participating.  Working-class

        14       people can come in here.  And not to wink when

        15       somebody comes from that wealthy family, that

        16       politically powerful family who can take care

        17       of it behind the scenes.  Which is becoming so

        18       relevant.

        19                  So there's a lot of challenges.

        20       Let's really do it.  We've been talking about

        21       it for a long time.  This is a good beginning,

        22       but we've got a very long ways to go.

        23       Something is better than nothing right now,

        24       but don't applaud too much, because we haven't



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         1       got to the red meat.  When we do that, then

         2       you can applaud.

         3                  And I'll be happy to show people

         4       where I think the red meat is, whether it's

         5       ethics or whether it's disclosure or whether

         6       it's the whole let's not make this the elitist

         7       house that it seems to be becoming.

         8                  Thank you.

         9                  ACTING PRESIDENT BRESLIN:    Thank

        10       you, Senator McDonald.

        11                  Are there any other Senators

        12       wishing to be heard?

        13                  Hearing none, the debate is closed.

        14                  Please ring the bells.  The

        15       Secretary will ring the bells.

        16                  Read the last section.

        17                  THE SECRETARY:    Section 37.  This

        18       act shall take effect July 31, 2010.

        19                  ACTING PRESIDENT BRESLIN:    Call

        20       the roll.

        21                  (The Secretary called the roll.)

        22                  ACTING PRESIDENT BRESLIN:

        23       Senator Schneiderman, to explain his vote.

        24                  SENATOR SCHNEIDERMAN:    Thank you,



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         1       Mr. President.

         2                  I am pleased, ladies and

         3       gentlemen -- shhh, shhh, shhh, shhh, shhh.

         4       We're done here tonight.  I'm pleased we're

         5       done here tonight.  I'm pleased what we're

         6       passing what I think in retrospect will prove

         7       to be a truly historic bill to expand ethics,

         8       to improve our campaign finance laws, to make

         9       this a more transparent and really more

        10       effective and efficient Legislature.

        11                  Let's never forget that in trying

        12       times, as in all times, we to spend every

        13       taxpayer dollar wisely.  Bad government, pay

        14       to play, corrupt government costs our

        15       constituents money.

        16                  I'm pleased that everyone -- with

        17       everyone's comments tonight, really, even

        18       those who have raised concerns about the

        19       bill -- and I especially want to note that a

        20       lot of my colleagues from the other side of

        21       the aisle have spoken with me, have pointed

        22       out problems that we have to correct, have

        23       offered solutions to the problems.  And I hope

        24       that this is indicative of what will come this



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         1       year.

         2                  I am confident that virtually

         3       everyone in this room on both sides of the

         4       aisle wants this to become a more ethical

         5       state, a state in which the public has more

         6       confidence in this Legislature and in all

         7       elected officials.  And I really am honored by

         8       the fact that a lot of my colleagues on the

         9       other side of the aisle are continuing, even

        10       as we speak tonight, to point out issues,

        11       problems, and raise concerns.

        12                  I look forward to working with all

        13       of you to move to the next stage, pass further

        14       reforms to our campaign finance laws, to other

        15       aspects of our ethics laws, and to moving this

        16       state forward to return to its prior state as

        17       really a model for all of America.

        18                  Thank you, Mr. President.  I vote

        19       yes.

        20                  ACTING PRESIDENT BRESLIN:    Thank

        21       you, Senator Schneiderman.

        22                  Announce the results.

        23                  THE SECRETARY:    Ayes, 59.  Nays,

        24       1.  Senator Diaz recorded in the negative.



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         1                  ACTING PRESIDENT BRESLIN:    The

         2       bill is passed.

         3                  Senator Klein, that completes the

         4       controversial reading of the calendar.

         5                  SENATOR KLEIN:    Mr. President,

         6       may we please return to motions and

         7       resolutions.  I have a motion on behalf of

         8       Senator Huntley.

         9                  ACTING PRESIDENT BRESLIN:

        10       Returning to motions and resolutions.

        11                  Senator Klein.

        12                  SENATOR KLEIN:    I move that the

        13       following bills be discharged from their

        14       respective committees and be recommitted with

        15       instructions to strike the enacting clause:

        16       Senate Numbers 1175 and 1646.

        17                  ACTING PRESIDENT BRESLIN:    So

        18       ordered.

        19                  Senator Klein.

        20                  SENATOR KLEIN:    Would you please

        21       recognize Senator Padavan.

        22                  ACTING PRESIDENT BRESLIN:

        23       Senator Padavan.

        24                  SENATOR PADAVAN:    Yes, thank you,



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         1       Mr. President.

         2                  I move that the following bills be

         3       discharged from their respective committees

         4       and be recommitted with instructions to strike

         5       the enacting clause.  That's Senate Bill 1505,

         6       by Senator DeFrancisco, and 2658, by Senator

         7       Volker.

         8                  ACTING PRESIDENT BRESLIN:    So

         9       ordered.

        10                  Senator Klein.

        11                  SENATOR KLEIN:    Mr. President, I

        12       just want to announce after session there will

        13       be an Elections Committee Meeting in Room 332,

        14       followed by an Environmental Conservation

        15       Committee meeting.

        16                  ACTING PRESIDENT BRESLIN:

        17       Immediately after session there will be a

        18       meeting of the Elections Committee in

        19       Room 332, followed by a meeting of the

        20       Environmental Conservation Committee

        21       thereafter.

        22                  SENATOR KLEIN:    Mr. President, is

        23       there any further business at the desk?

        24                  ACTING PRESIDENT BRESLIN:    There



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         1       is no further business at the desk,

         2       Senator Klein.

         3                  SENATOR KLEIN:    There being none,

         4       Mr. President, I move we adjourn until Monday,

         5       January 25th, at 3:00 p.m., intervening days

         6       to be legislative days.

         7                  ACTING PRESIDENT BRESLIN:    There

         8       being no further business to come before the

         9       Senate, on motion, the Senate stands adjourned

        10       until Monday, January 25th, at 3:00 p.m.,

        11       intervening days being legislative days.

        12                  (Whereupon, at 5:31 p.m., the

        13       Senate adjourned.)

        14

        15

        16

        17

        18

        19

        20

        21

        22

        23

        24



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