Regular Session - March 28, 2012

                                                                   1579

 1               NEW YORK STATE SENATE

 2                          

 3                          

 4              THE STENOGRAPHIC RECORD

 5                          

 6                          

 7                          

 8                          

 9                  ALBANY, NEW YORK

10                   March 28, 2012

11                     11:28 a.m.

12                          

13                          

14                  REGULAR SESSION

15  

16  

17  

18  SENATOR JOSEPH A. GRIFFO, Acting President

19  FRANCIS W. PATIENCE, Secretary

20  

21  

22  

23  

24  

25  

                                                               1580

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

 2               ACTING PRESIDENT GRIFFO:   The 

 3  Senate will come to order.  

 4               I ask all present to please rise 

 5  and join with me as we recite the Pledge of 

 6  Allegiance to our Flag.

 7               (Whereupon, the assemblage 

 8  recited the Pledge of Allegiance to the Flag.)

 9               ACTING PRESIDENT GRIFFO:   In the 

10  absence of clergy, I ask all present to please 

11  bow their heads in a moment of silent 

12  reflection.

13               (Whereupon, the assemblage 

14  respected a moment of silence.)

15               ACTING PRESIDENT GRIFFO:   The 

16  reading of the Journal.

17               THE SECRETARY:   In Senate, 

18  Tuesday, March 27th, the Senate met pursuant 

19  to adjournment.  The Journal of Monday, 

20  March 26th, was read and approved.  On motion, 

21  Senate adjourned.

22               ACTING PRESIDENT GRIFFO:    

23  Without objection, the Journal stands approved 

24  as read.

25               Presentation of petitions.

                                                               1581

 1               Messages from the Assembly.

 2               Messages from the Governor.

 3               Reports of standing committees.

 4               Reports of select committees.

 5               Communications and reports from 

 6  state officers.

 7               Motions and resolutions.

 8               Senator Carlucci.

 9               SENATOR CARLUCCI:   Thank you.  

10               Mr. President, I move that my 

11  bill, Senate Print 6667, be discharged from 

12  its respective committee and be recommitted 

13  with instructions to strike the enacting 

14  clause.

15               ACTING PRESIDENT GRIFFO:   So 

16  ordered.

17               SENATOR CARLUCCI:   Thank you.

18               ACTING PRESIDENT GRIFFO:    

19  Senator Libous.

20               SENATOR LIBOUS:   Mr. President, 

21  thank you very much.  

22               At this time there will be an 

23  immediate meeting of the Finance Committee in 

24  Room 332, an immediate meeting of the Finance 

25  Committee in Room 332.  

                                                               1582

 1               In the interim, the Senate will 

 2  stand at ease.

 3               ACTING PRESIDENT GRIFFO:   There is 

 4  an immediate meeting of the Senate Finance 

 5  Committee in Room 332.  

 6               The Senate stands at ease.

 7               (Whereupon, the Senate stood at ease 

 8  at 11:30 a.m.)

 9               (Whereupon, the Senate reconvened at 

10  11:45 a.m.)

11               ACTING PRESIDENT GRIFFO:   The 

12  Senate will come to order.

13               Senator Libous.

14               SENATOR LIBOUS:   Mr. President, 

15  may we return to the reports of standing 

16  committees.  I believe there's a report of the 

17  Finance Committee at the desk.

18               ACTING PRESIDENT GRIFFO:   Reports 

19  of standing committees.  

20               The Secretary will read the report 

21  of the Finance Committee.

22               THE SECRETARY:   Senator 

23  DeFrancisco, from the Committee on Finance, 

24  reports the following bills direct to third 

25  reading:  

                                                               1583

 1               Senate Print 6255D, Senate Budget 

 2  Bill, an act to amend the Executive Law; 

 3               Senate 6258D, Senate Budget Bill, 

 4  an act to authorize funding; and 

 5               Senate 6260C, Senate Budget Bill, 

 6  an act to amend the Racing, Pari-Mutuel Wagering 

 7  and Breeding Law.

 8               ACTING PRESIDENT GRIFFO:   So 

 9  ordered.  All bills reported to third reading.

10               Senator Libous.

11               SENATOR LIBOUS:   Mr. President, 

12  may we have the reading of the noncontroversial 

13  calendar.

14               ACTING PRESIDENT GRIFFO:   The 

15  Secretary will read.

16               THE SECRETARY:   Calendar Number 

17  471, Senate Budget Bill, Senate Print 6255D, an 

18  act --

19               SENATOR BRESLIN:   Lay it aside.

20               ACTING PRESIDENT GRIFFO:   The bill 

21  is laid aside.

22               THE SECRETARY:   Calendar Number 

23  472, Senate Budget Bill, Senate Print 6258D, an 

24  act to authorize.

25               SENATOR BRESLIN:   Lay it aside.

                                                               1584

 1               ACTING PRESIDENT GRIFFO:   The bill 

 2  is laid aside.

 3               THE SECRETARY:   And Calendar 

 4  Number 473, Senate Budget Bill, Senate Print 

 5  6260C, an act to amend the Racing --

 6               SENATOR BRESLIN:   Lay it aside.

 7               ACTING PRESIDENT GRIFFO:   The bill 

 8  is laid aside.

 9               Senator Libous.

10               SENATOR LIBOUS:   Mr. President, 

11  may we have the controversial reading of the 

12  calendar.

13               ACTING PRESIDENT GRIFFO:   The 

14  Secretary will ring the bell.

15               The Secretary will read.

16               THE SECRETARY:   Calendar Number 

17  471, Senate Budget Bill, Senate Print 6255D, an 

18  act to amend the Executive Law.

19               SENATOR BRESLIN:   Explanation.

20               ACTING PRESIDENT GRIFFO:   Can I 

21  have some order in the chamber, please.

22               Senator Skelos.

23               SENATOR SKELOS:   Mr. President, if 

24  I could make some opening comments and then I 

25  know that Senator DeFrancisco, chair of the 

                                                               1585

 1  Finance Committee, awaits the questions but even 

 2  more so will have the answers.

 3               For many years, as all of us know, 

 4  especially those of us who have served in the 

 5  Senate for a number of years, late budgets were 

 6  the norm.  We never passed a budget on 

 7  March 28th, but it became more like June 28th, 

 8  July, or even August in 2009.

 9               Today the Senate begins the process 

10  of passing our budget bills that will be passed 

11  early for the second year in a row.  And it shows 

12  that state government is functioning.  

13               We are restoring the people's faith 

14  in competence, not just with us but in state 

15  government.  They know that we can work in a 

16  bipartisan fashion and enact a fiscally 

17  responsible state budget that meets the needs of 

18  the people of this great state.

19               I want to give credit to 

20  Governor Cuomo for not only working with us but 

21  listening to us and understanding that a budget 

22  is one of compromise that brings all the 

23  interests of this state together.  

24               And I want to thank Assembly 

25  Speaker Silver, all of the members of the Senate 

                                                               1586

 1  Republican Conference, and the members of the 

 2  Senate Minority for participating in the 

 3  conference committee process and giving positive 

 4  input that resulted in this very good budget.

 5               Staff on both the Majority and the 

 6  Minority side worked extremely hard.  Special 

 7  tribute to Robert Mujica, secretary of the 

 8  Finance Committee, all the Finance staff for the 

 9  great work that they did -- sleepless nights, 

10  many sleepless nights, but just a fabulous job -- 

11  and to our counsel, Diane Burman, and 

12  Counsel's Office for their equally good work.

13               This budget realizes long-held 

14  Senate Republican priorities, including a 

15  commitment to spending restraint, no new taxes, 

16  and initiatives that will help the private sector 

17  create new jobs.  

18               For the second year in a row, 

19  overall spending has been reduced.  We have held 

20  the line on taxes and eliminated nearly 

21  $13 billion in combined deficits without raising 

22  taxes.  We were able to cut taxes just a few 

23  months ago when we reduced state income-tax rates 

24  for 4.4 million New Yorkers to the lowest level 

25  in 58 years.  And we repealed the job-killing MTA 

                                                               1587

 1  payroll tax, which officially goes away on 

 2  April 1st for most people who paid it.

 3               This budget will create thousands 

 4  of new jobs across the State of New York through 

 5  the New York Works program that invests in our 

 6  state's roads, highways, and bridges.

 7               There are many positive things we 

 8  are achieving with this budget:  A second round 

 9  of Regional Council award funding, $500 million 

10  to continue the important work we did in last 

11  year's budget to rebuild our regional economies.  

12  Keeping all 11 DOT regional offices open.  We 

13  gained a commitment to getting the MTA capital 

14  plan and DOT capital plan back on the same track 

15  to ensure regional parity and fairness.  

16               School aid increases, 4 percent, 

17  and it's distributed fairly across the state.  

18  Restoring the EPIC program to help seniors afford 

19  the cost of prescription drugs.  Helping property 

20  taxpayers by providing mandate relief for 

21  counties and New York City.  

22               The state will take over the growth 

23  and local share of Medicaid costs, saving local 

24  governments and property taxpayers $1.2 billion 

25  over the next five years.  This is in addition to 

                                                               1588

 1  the major pension reform we passed earlier this 

 2  month that will also reduce the burden on local 

 3  government and property taxpayers.  

 4               This is a budget that we all can be 

 5  proud of.  It's a budget that benefits the people 

 6  of this state because it reduces spending, does 

 7  not raise any taxes, and will create jobs.

 8               Thank you, Mr. President.

 9               ACTING PRESIDENT GRIFFO:   Thank 

10  you, Senator Skelos.

11               Senator DeFrancisco.

12               SENATOR DeFRANCISCO:   Yes.  Before 

13  explaining the first budget bill -- we're dealing 

14  with Public Protection and General Government, 

15  the Article 7 -- I just wanted to add one thing, 

16  you know, that should be emphasized.  And that is 

17  that most states are having the same problems 

18  that New York State is presently having.  And in 

19  most states we're seeing a lot more difficulty in 

20  balancing budgets, a lot more incivility in the 

21  process.  

22               And the way in which this process 

23  has been conducted these last couple of years has 

24  really been refreshing, number one.

25               Number two is we have to be 

                                                               1589

 1  fiscally prudent in the State of New York so that 

 2  we can make it viable for businesses actually to 

 3  create jobs so more people are working and 

 4  there's a bigger tax base.

 5                And, incredibly, the All Funds 

 6  budget is less this year than it was last year, 

 7  and last year was less than the year before.  The 

 8  last time two state budgets had less overall 

 9  spending two consecutive years was about 30 years 

10  ago.

11               So despite that, we're increasing 

12  essential services for Medicaid by 4 percent and, 

13  in addition, increasing education spending by 

14  4 percent, unlike most states.

15               So this has been a lot of hard work 

16  by a lot of people, and it is a budget we should 

17  all be proud of no matter what side of the aisle 

18  we're on.

19               With respect to 6255D, which is the 

20  Public Protection and General Government section, 

21  I'll point out a couple of highlights and then 

22  I'll be happy to answer any questions.

23               First of all, for the cities that 

24  are listed in the bill, there was a spin-up which 

25  allows early access to funds -- and all the 

                                                               1590

 1  cities that have the spin-up are listed, and the 

 2  amounts are listed in the bill -- which will help 

 3  them.  And the only purpose, the only use that 

 4  they can make of this is to resolve a budget 

 5  deficit.  It can't be for more spending on new 

 6  programs, it's to resolve the budget deficit so 

 7  they would be in a position to balance their 

 8  books as well.

 9               With respect to the DNA bill that 

10  we recently passed, the expansion, the effective 

11  date is moved closer to August 1 instead of the 

12  original date of October 1 of this year, and 

13  approximately $2 million has been set aside to 

14  help move the process and make sure there's 

15  funding enough to collect the samples and to 

16  perform what has to be performed to make that 

17  work.

18               There's a repeal of the ill-advised 

19  CoBIS system.  That's where we spent an awful lot 

20  of money and got no results from a system that 

21  didn't work.  And there's authorization to 

22  replace it with a nationally recognized 

23  alternative, and that alternative is NIBIN, which 

24  I'll be happy to explain further if necessary.  

25               Many outdated state procurement 

                                                               1591

 1  procedures and printing practices have been 

 2  modified in this bill, and there's several of 

 3  them that I can expand on if necessary.  And in 

 4  addition, we have had a renaming of the Office of 

 5  Technology to the Office of Information 

 6  Technology Services, which more accurately 

 7  reflects what it does.  

 8               And as far as the MTA, we're paying 

 9  the MTA for costs associated with promoting 

10  access to employment through reimbursements for 

11  E-ZPass tolls paid by residents of Broad Channel, 

12  Rockaway Peninsula, and over the Cross-Bay 

13  Veterans Memorial Bridge.  

14               And on Friday we'll talk more about 

15  the capital expenditures that have been 

16  authorized for the MTA as well as the other 

17  transportation benefits that are needed to fix 

18  our infrastructure throughout the state.

19               There's been an issue about 

20  facility parole officers, that we're losing that 

21  title.  We were able to negotiate language that 

22  indicates that that parole officer would be in a 

23  position to take the place of a retired parole 

24  officer so that they are still in the pecking 

25  order that they were as far as that position, 

                                                               1592

 1  which certainly is better than just being taken 

 2  out of the facility parole officer 

 3  classification.  

 4               There are other things in this bill 

 5  that if there's interest in exploring them I'd be 

 6  more than happy to answer those questions.  And 

 7  that is how I'll end my opening statement about 

 8  this particular bill.  

 9               ACTING PRESIDENT GRIFFO:   Thank 

10  you, Senator DeFrancisco.

11               Senator Krueger.

12               SENATOR KRUEGER:   Thank you very 

13  much, Mr. President.  Good morning.

14               ACTING PRESIDENT GRIFFO:   Good 

15  morning.

16               SENATOR KRUEGER:   I have a couple 

17  of questions for the sponsor, please.

18               ACTING PRESIDENT GRIFFO:   Senator 

19  DeFrancisco will yield.

20               SENATOR DeFRANCISCO:   Yes.

21               SENATOR KRUEGER:   Thank you.

22               I guess, as a statement, I don't 

23  think there's a lot of disagreement over this 

24  bill today with my colleagues.  So there's not 

25  that many questions I have on this bill.

                                                               1593

 1               But Senator DeFrancisco in his 

 2  opening comments was referencing the spin-up of 

 3  AIM funding for various cities.  I don't see that 

 4  language in the PPGG bill.  Could he help me see 

 5  where that is in this bill that we're debating 

 6  right now?

 7               SENATOR DeFRANCISCO:   It's sort of 

 8  a preview of what's to come.  There's an 

 9  amendment to another bill where the actual 

10  dollars will be in the bill, but I have a list of 

11  those if people are interested.  But it's 

12  actually the -- the specific bill is part of -- 

13  the specific section is part of another bill.

14               SENATOR KRUEGER:   Thank you.

15               Mr. President, if through you the 

16  sponsor would continue to yield.

17               SENATOR DeFRANCISCO:   Yes.

18               ACTING PRESIDENT GRIFFO:   The 

19  sponsor yields.

20               SENATOR KRUEGER:   And I appreciate 

21  that.  I also thought it was in a different bill, 

22  not this bill.

23               Where's the AIM funding for the 

24  City of New York, which of these two bills?

25               SENATOR DeFRANCISCO:   I'm sorry, 

                                                               1594

 1  what?  

 2               SENATOR KRUEGER:   The AIM funding 

 3  for the City of New York.  It's not in this 

 4  bill.  Might we be seeing that in a later bill?  

 5               SENATOR DeFRANCISCO:   You might 

 6  not.  There's no acceleration of New York City 

 7  AIM funding.

 8               SENATOR KRUEGER:   Through you, 

 9  Mr. President, if the sponsor would continue to 

10  yield.

11               SENATOR DeFRANCISCO:   Yes.

12               ACTING PRESIDENT GRIFFO:   The 

13  sponsor yields.

14               SENATOR KRUEGER:   Thank you.

15               So there's AIM funding and then 

16  there's acceleration of AIM funding.  I believe, 

17  that before we were talking about what -- we use 

18  the term spin-up, which is really -- the Senator 

19  is correct, it's really not additional money, 

20  it's acceleration of the payment of committed 

21  money of AIM.  So I don't think we disagree 

22  there.

23               But in following up on his last 

24  statement, so he's saying there's not 

25  acceleration of AIM money for New York City, 

                                                               1595

 1  although there is for quite a long list of other 

 2  locations.  Is there any AIM funding for New York 

 3  City, whether accelerated or not?  

 4               SENATOR DeFRANCISCO:   No, there is 

 5  not.  There's no AIM funding for anybody.  This 

 6  is just an acceleration of funding that these 

 7  cities would be able to receive eventually, just 

 8  pushing it into their current budget year to help 

 9  them avoid a deficit situation.  

10               This has been done in prior years, 

11  and in view of the fiscal difficulties that these 

12  cities are having, it was negotiated that this 

13  spin-up would be appropriate for this year.

14               SENATOR KRUEGER:   Through you, 

15  Mr. President, one additional question.

16               ACTING PRESIDENT GRIFFO:   The 

17  Senator yields.

18               SENATOR KRUEGER:   Thank you.

19               Again, just to clarify, because 

20  we're talking about one topic that may not be in 

21  this bill but is in future bills, for me to just 

22  make sure I have understood correctly, there is 

23  AIM funding for other cities, there is spin-up 

24  acceleration for some of that funding, but there 

25  is no AIM funding for the City of New York.  Is 

                                                               1596

 1  that a correct analysis?  

 2               SENATOR DeFRANCISCO:   That's 

 3  correct.  Because there's other benefits in the 

 4  budget that go to New York City, especially the 

 5  takeover of Medicaid, a greater share of the 

 6  Medicaid burden.  

 7               And 70 percent of all Medicaid 

 8  dollars are spent in New York City.  So this was 

 9  done in order to compensate or help other cities 

10  who will not realize those types of savings.

11               SENATOR KRUEGER:   I don't have any 

12  other questions for the Senator, just I guess a 

13  follow-up statement.  

14               We will be getting to the Health 

15  budget and Medicaid spending I believe on Friday, 

16  as scheduled.  And so in fact, for the record, 

17  there is not an increased percentage share for 

18  Medicaid takeover for the City of New York.  All 

19  counties are being treated equally from a 

20  percentage perspective.

21               I am going to vote yes on this 

22  budget, and I appreciate the sponsor's answers to 

23  my questions.

24               Thank you very much, Mr. President.

25               ACTING PRESIDENT GRIFFO:   Thank 

                                                               1597

 1  you, Senator Krueger.

 2               Senator Diaz.

 3               SENATOR DIAZ:   Thank you, 

 4  Mr. President.  Ladies and gentlemen --

 5               ACTING PRESIDENT GRIFFO:   Senator 

 6  Diaz, are you on the bill?  

 7               SENATOR DIAZ:   On the bill.

 8               ACTING PRESIDENT GRIFFO:   Senator 

 9  Diaz on the bill.

10               SENATOR DIAZ:   On the bill.

11               Ladies and gentleman, today we 

12  start our voting on the budget.  Today we start, 

13  ending maybe Friday.  We are going to start 

14  discussing and voting for a budget that three men 

15  in a room got together and decided.  

16               We are going to hear throughout 

17  this week, many times we're going to hear 

18  praising the Governor, how great the Governor has 

19  done, we're going to hear how great the 

20  Legislature has done in getting a budget on time.

21               Last year the Governor got a budget 

22  on time.  And you should know and what you should 

23  know is that I was the only one, together with 

24  Senator Duane, who voted against that budget, and 

25  that I'm planning to do the same throughout this 

                                                               1598

 1  week.  

 2               And this week we will hear and we 

 3  will brag about it, about that the budget 

 4  eliminated close to $13 billion without 

 5  increasing taxes.  Wow.  The elimination of close 

 6  to $13 billion without increasing taxes.  What a 

 7  marvelous achievement for Governor Cuomo.  

 8               Only one problem, ladies and 

 9  gentlemen.  Only one problem.  That if you 

10  eliminate $13 billion without increasing taxes, 

11  somebody has to pay for it.  Somebody, somewhere, 

12  is going to get hurt.  You cannot eliminate 

13  $13 billion without increasing taxes and somebody 

14  won't get hurt.

15               And who is going to get hurt?  The 

16  same people that always get hurt.  Black, 

17  Hispanic, and the poor people throughout the 

18  state.  So we are going to brag about balancing 

19  the budget on the backs of the poor.

20               Last year, for example, last year 

21  you all voted for a wonderful budget, 

22  Governor Cuomo's budget that cut, that eliminated 

23  $48 million from a program called EPIC for senior 

24  citizens.  Last year you all eliminated 

25  $48 million to a program called EPIC geared to 

                                                               1599

 1  help senior citizens pay for their prescription 

 2  drugs.  And you, with the Governor, forced the 

 3  3-point-some-million citizens in the state to pay 

 4  25 percent of the value of their prescription 

 5  drugs.  

 6               You did it.  The Governor, Governor 

 7  Andrew Cuomo did it last year.  You are forcing 

 8  more than 3 million senior citizens in the State 

 9  of New York to put up 25 percent of their 

10  prescription drugs.

11               I have to give credit to the 

12  Republican Conference in the Senate this year -- 

13  a little credit, a little bit only, not the whole 

14  credit.  Because they tried, they tried to 

15  reinstate this year the $48 million.  And to the 

16  shame of the other side, the Assembly, the 

17  Democratic Assembly, they rejected that.

18               Let me repeat that again.  The 

19  Republican Senate pushed Governor Cuomo and 

20  everybody else to reinstate the $48 million that 

21  were taken away, that were taken away from the 

22  senior citizens' EPIC program last year, to 

23  include it in this year.  But the 

24  Democratic-controlled Assembly rejected that.  

25               So they had to come an agreement.  

                                                               1600

 1  Okay, let's take $10 million.  And we all say 

 2  bingo, whoop-de-doo.  We are reinstating 

 3  $30 million in EPIC for the senior citizens.  

 4  What a wonderful idea.  Wait, wait a moment.  

 5  Wait a moment, ladies and gentlemen.  There is a 

 6  problem.  That the money that you took last year 

 7  from the senior citizens' EPIC program, and you 

 8  are trying to reinstate this year $30 million, 

 9  that $30 million that you reinstated this year 

10  will come into effect on January 1, 2013.  

11               So to all you 3 million senior 

12  citizens out there, don't get sick until January 

13  2013.  Because you get sick before January 2013, 

14  you got a big problem, senior citizens.  So don't 

15  get sick.  To all those senior citizens, don't 

16  get sick.  Because the greatest legislators in 

17  the State of New York are putting back 

18  $30 million for EPIC.  But again -- and I want to 

19  repeat myself again so you can understand my 

20  broken English good -- you got to wait till 

21  January 2013 for the senior citizens to be able 

22  to pay only $20 as a copayment.

23               That is a shame.  That is a 

24  disgrace, ladies and gentlemen.  That is a 

25  disgrace, ladies and gentlemen.  You are abusing 

                                                               1601

 1  our seniors.  You did it last year, and you are 

 2  doing it this year.  And we are going to come 

 3  here now to say, Wonderful, we're balancing the 

 4  budget, the Governor, the Emperor Cuomo, 

 5  Emperor Cuomo is saying to New York State, We 

 6  have a balanced budget before April 1st.  Ooh 

 7  (clapping).  It is a shame.  

 8               And to celebrate the victory of the 

 9  emperor, the emperor is calling all of you 

10  tomorrow to come to his house to eat his food and 

11  to partake with him the wine and beer and rice 

12  and beans for the great achievement that you are 

13  about to do.

14               It is my purpose -- I have never 

15  attended any one of those things because I cannot 

16  be that -- I cannot be that hypocrite.  But, 

17  Mr. President, you can count my negative vote in 

18  all these pieces of legislation, all of these 

19  pieces of vote, because I'm not planning -- as I 

20  did last year, I am not planning to be part of 

21  this farce, scheme, and game played on the backs 

22  of the poor of the City of New York.  

23               Thank you very much.

24               ACTING PRESIDENT GRIFFO:   Thank 

25  you, Senator Diaz.

                                                               1602

 1               Senator Peralta.

 2               SENATOR PERALTA:   Thank you, 

 3  Mr. President.

 4               Here we go again.  Déjà vu.  

 5  Politics as usual in Albany.  Another year where 

 6  we sacrifice saving lives to the microstamping 

 7  technology for politics.  

 8               In all the time that I've spent 

 9  fighting for microstamping, one part of the 

10  opposition stands out to me as the most difficult 

11  to explain.  How can a party that considers 

12  itself the champion of law and order continue to 

13  place its own judgment above the expert opinion 

14  of law enforcement?  More than 80 police 

15  departments and law enforcement organizations 

16  across the state have said:  We need 

17  microstamping, it will help us solve gun 

18  murders.  Yet the voices of those who best 

19  understand gun-crime investigations are 

20  consistently dismissed or ignored.

21               Instead, opponents of this bill 

22  dancing around the issue, arguing that 

23  microstamping costs too much, that it will drive 

24  manufacturers out of the state, or that it 

25  doesn't work.  None of these arguments are 

                                                               1603

 1  supported by reality.  

 2               Microstamping will not place an 

 3  undue cost on manufacturers or purchasers.  

 4  Microstamping is little different than the 

 5  universal practice of imprinting serial numbers 

 6  on all guns sold in the United States.  

 7               The required machinery is not 

 8  highly specialized, so additional overhead is 

 9  minimal.  Each imprint can be imprinted in less 

10  than a second, so production will not be 

11  delayed.  If a manufacturer doesn't want to deal 

12  with this minor hassle, it can easily farm out 

13  its microstamping requirements to a company that 

14  specializes in laser etching.

15               Finally, as I have emphasized many 

16  times, if microstamping cannot be performed for 

17  $12 or less, the law will never go into effect.  

18  Any argument about overwhelming costs is simply 

19  an attack on a straw man.

20               There's also no legitimate reason 

21  to believe that microstamping will drive 

22  manufacturers out of the state.  The only 

23  manufacturer to leave California after it passed 

24  microstamping was a small competition-pistol 

25  maker with a handful of employees.

                                                               1604

 1               In Massachusetts, the nation's 

 2  oldest and largest firearm manufacturer, Smith & 

 3  Wesson, remains headquartered in Springfield more 

 4  than a decade after the state began requiring 

 5  tamper-resistant serial numbers on guns, 

 6  something very similar to microstamping.  In 

 7  fact, after Smith & Wesson became the first 

 8  manufacturer to comply with these regulations, 

 9  not a single other gun maker abandoned the 

10  state.  

11               If history isn't proof enough, you 

12  only need to look at the basic economics.  This 

13  legislation applies not just to handguns 

14  manufactured in New York but all semiautomatic 

15  pistols sold in the state, wherever they are 

16  made.  So a costly relocation process just does 

17  not make any financial sense, even if Remington 

18  submits a letter saying that they would do so.  

19  Smart businesses don't take on massive 

20  unnecessary costs out of spite, and there's no 

21  reason to believe that New York's gun 

22  manufacturers would be an exception.

23               Cops want microstamping because 

24  it's a tool that works.  A peer-reviewed study by 

25  the microstamping inventor -- a lifelong member 

                                                               1605

 1  of the NRA, by the way, and an avid hunter -- 

 2  showed that microstamp markings successfully 

 3  transferred more than 95 percent of the time.  

 4               Even the relatively critical study 

 5  by the Suffolk County firearms examiner, which is 

 6  so often cited by opponents of this bill, 

 7  demonstrated a 54 percent rate of perfect 

 8  transfers.  That study was also conducted in 

 9  2005, before significant improvements were made 

10  to technology.

11               SENATOR LIBOUS:   Mr. President.  

12               ACTING PRESIDENT GRIFFO:   Senator 

13  Libous, why do you rise?

14               SENATOR LIBOUS:   Point of order.

15               SENATOR PERALTA:   Moreover --

16               ACTING PRESIDENT GRIFFO:   Senator 

17  Peralta.  

18               Senator Libous, what is your point 

19  of order?  

20               SENATOR LIBOUS:   I'm quite 

21  confused.  There's a bill before the house and 

22  Senator Peralta is debating an entirely different 

23  issue that is not in the bill.

24               ACTING PRESIDENT GRIFFO:   Senator 

25  Libous, your point is well-taken.

                                                               1606

 1               Senator Peralta, would you please 

 2  remain germane to the bill at hand.

 3               SENATOR PERALTA:   This is 

 4  germane.  Since CoBIS was taken out of the 

 5  current bill, Public Protection bill, I want to 

 6  talk a little bit about --

 7               ACTING PRESIDENT GRIFFO:   Speaking 

 8  on the specific items in this bill, though, 

 9  Senator Peralta.  You must --

10               SENATOR PERALTA:   Unlike CoBIS, I 

11  am -- and that's what I'm going to get to.  

12  Unlike CoBIS, which is not only ineffective but 

13  costly, microstamping costs --

14               ACTING PRESIDENT GRIFFO:   Senator 

15  Breslin, why do you rise?

16               SENATOR BRESLIN:   Just a point of 

17  order, Mr. President.  

18               It is the Public Protection bill.  

19  And I think that Senator Peralta should be able 

20  to explain things that not only are directly in 

21  here but things that have been eliminated in the 

22  process.  Because we're trying to protect the 

23  people of the State of New York, and this is 

24  public protection.

25               ACTING PRESIDENT GRIFFO:   Thank 

                                                               1607

 1  you, Senator Breslin.

 2               Senator Peralta.

 3               SENATOR PERALTA:   Thank you, 

 4  Mr. President.  

 5               Unlike CoBIS, which is not only 

 6  ineffective but costly, microstamping will cost 

 7  the state absolutely nothing and could actually 

 8  save New York money.  Microstamping can 

 9  streamline and simplify a significant number of 

10  gun-crime investigations, allowing critical 

11  resources to be devoted to other tasks.  

12               For instance, a microstamp 

13  shell casing could be read using the standard 

14  microscopes found even in the smallest crime 

15  labs.  In many cases it would be possible to read 

16  the markings at a crime scene using a magnifying 

17  glass, saving additional time and money.  

18  Moreover, no expensive new database would be 

19  required.  Law enforcement would simply submit a 

20  trace request to ATF, as they have for decades.  

21               Microstamping can help police solve 

22  crimes faster, getting criminals off the street 

23  and benefiting the state's bottom line, which is 

24  what we're all trying to do here.

25               The brave men and women of law 

                                                               1608

 1  enforcement have been ignored long enough.  We 

 2  owe it to them to put microstamping in this 

 3  budget and finally give them the effective, 

 4  low-cost tool they need in the fight against 

 5  crime.  Unfortunately, it's Groundhog Day again 

 6  in Albany, with another year of passing on 

 7  microstamping because it's politics as usual.

 8               Thank you.

 9               ACTING PRESIDENT GRIFFO:   Senator 

10  Nozzolio.

11               SENATOR NOZZOLIO:   Thank you, 

12  Mr. President.  On the bill.

13               Mr. President and my colleagues, 

14  aptly named, this measure before us is focusing 

15  on public protection and protecting those that 

16  protect us in keeping us safe.

17               There are two or three areas that I 

18  would like to draw special focus to that are in 

19  this measure that I believe each of us that 

20  supports it will be very proud of.

21               First, I'm extremely pleased 

22  Governor Cuomo has reinstated the training 

23  instruction academies for our New York State 

24  Police, our correction officers, and our parole 

25  supervisors.  

                                                               1609

 1               That the parole officers, 

 2  correction officers and State Police officers and 

 3  other public protection officers have had no 

 4  relief over these past few years.  The public 

 5  protection aspect of our state, because of the 

 6  lack of focus and dire economy, have not had the 

 7  renewal and the additional forces trained and 

 8  brought into the employment sector.

 9               New muscle for the State Police, 

10  new hires for our state correctional officers, as 

11  well additional new trained personnel for our 

12  parole officers are all part of this budget, are 

13  all extremely necessary, and I'm pleased that 

14  public protection aspects of the budget focus on 

15  these important issues.

16               I'd also like to say that the 

17  measure is understanding of those facility parole 

18  officers, those who are working in our 

19  correctional facilities in the capacity of parole 

20  officers.  And many in this room signed letters, 

21  focused attention on their issues, particularly 

22  in the sense that many in the facilities want to 

23  get out into the field.  

24               Now, because of the new influx of 

25  trained personnel, they'll be able to.  And this 

                                                               1610

 1  budget provision provides language so that the 

 2  facility parole officers will be given priority 

 3  as those new parole officers are entering into 

 4  the system and that they certainly will be 

 5  utilized.  With their experience in the 

 6  facilities and their desire to be in the field, 

 7  facility parole officers are recognized as 

 8  important components of this budget.

 9               Those who are in the correctional 

10  facilities walk the toughest law enforcement beat 

11  in America.  We, as stewards of the correctional 

12  system in our state, need to have the appropriate 

13  information about those correctional facilities.  

14  That we have enacted legislation in the past to 

15  achieve that objective; that legislation has been 

16  vetoed in the past.

17               But this bill before us, in the 

18  appropriate language, has the type of direction 

19  that we have been seeking.  And I'm very pleased 

20  again that this house, along with the Assembly, 

21  has obtained agreement from Governor Cuomo to 

22  provide that information, the information that is 

23  an important first step in understanding the 

24  appropriate deployment in our correctional 

25  facilities.

                                                               1611

 1               I compliment the Governor for his 

 2  willingness to listen on this important subject.  

 3  I am appreciative that there will be now 

 4  information provided so that important decisions 

 5  can be made in the future about that deployment.

 6               And lastly, I'd like to commend, 

 7  first, the Governor's position on eliminating 

 8  what has been an extremely wasteful program over 

 9  the past decade or so.  In his original budget, 

10  and I'm very pleased that it is part of the 

11  budget that we are voting on today, is the repeal 

12  of the so-called CoBIS system.  

13               That system, as I put it before 

14  constituents 18 months ago in a practice we 

15  established called "You Cut," where citizens had 

16  the opportunity to look at items of state 

17  expenditure and demand that they be eliminated, 

18  over 40,000 constituents and citizens across this 

19  state joined in our Internet interactive town 

20  meeting, if you will, where citizens saw the 

21  CoBIS system as a total waste of money and one 

22  that should be eliminated.

23               Governor Cuomo certainly, in 

24  putting it in his budget, understands that this 

25  was a great place to save funds.  It has not 

                                                               1612

 1  resulted in any convictions.  And that, in 

 2  effect, it is something that we certainly could 

 3  eliminate and remove not just a costly process, 

 4  but a mandated one that was a total waste of 

 5  taxpayer dollars.  

 6               I'm very pleased that CoBIS is 

 7  eliminated in this budget, and that I believe the 

 8  title of this budget, "provision of public 

 9  protection," lives up to its name in the 

10  components that are listed within it.  We are 

11  establishing additional public protections here 

12  as a result of the actions taken today.

13               Thank you, Mr. President.

14               ACTING PRESIDENT GRIFFO:   Thank 

15  you, Senator Nozzolio.

16               Is there any other Senator wishing 

17  to be heard?

18               Senator DeFrancisco to close.

19               SENATOR DeFRANCISCO:   Yes, just 

20  very briefly.  

21               In place of CoBIS is this NIBIN, 

22  National Integrated Ballistic Information 

23  Network, that's in existence right now and is 

24  under the control of the Bureau of Alcohol, 

25  Tobacco, Firearms and Explosives.  And some of 

                                                               1613

 1  money from savings from CoBIS are going to go 

 2  towards this new program to buy equipment to have 

 3  regional offices.  

 4               Right now it's in effect in 

 5  New York City, and it's been extremely successful 

 6  because it's getting crime-scene evidence and 

 7  comparing it to crime-scene evidence, ballistics 

 8  at other crime scenes to see if there's any 

 9  matches.  New York City Police to date has had 

10  over 2100 hits.  Illinois State Police, Chicago, 

11  1500 hits matching it with other crime scenes.  

12  Allegheny County, Pennsylvania, 1500 hits.  

13               The Santa Ana, California, Police 

14  Department, a thousand hits, while they're 

15  waiting to implement a bill that hasn't been 

16  implemented for a different system, the 

17  microstamping system.  So they're using this 

18  right now, and it's being effective right now.  

19  So that's a good alternative, and I think it's a 

20  prudent one.

21               Secondly, with respect to the EPIC 

22  program that Senator Diaz mentioned, there has 

23  been substantial restorations in this budget to 

24  the EPIC program, including the fact that 

25  copays are now going to be $3 to $20.  And that 

                                                               1614

 1  was one of the biggest problems when the Governor 

 2  cut it last year.  The Legislature put some money 

 3  back but not enough back.  More money is put in 

 4  to make the EPIC program work a lot better.  

 5               So I think nothing is perfect, but 

 6  this is an excellent bill and I'd urge the 

 7  adoption and the positive vote of everyone in the 

 8  chambers.  

 9               Thank you, Mr. President.

10               ACTING PRESIDENT GRIFFO:   Thank 

11  you, Senator DeFrancisco.

12               Debate is closed, and the Secretary 

13  will ring the bell.  

14               Read the last section.

15               THE SECRETARY:   Section 3.  This 

16  act shall take effect immediately.

17               ACTING PRESIDENT GRIFFO:   Call the 

18  roll.

19               (The Secretary called the roll.)

20               ACTING PRESIDENT GRIFFO:   Senator 

21  Squadron to explain his vote.

22               SENATOR SQUADRON:   Thank you, 

23  Mr. President.

24               I appreciate the debate and 

25  conversation we've had today.  I think there's a 

                                                               1615

 1  lot that's good in this bill, in fact, as I read 

 2  the title, "an act to amend the Executive Law in 

 3  relation to DNA testing of certain offenders," 

 4  et cetera.  

 5               Unfortunately, this bill leaves out 

 6  DNA for guns, which would solve crimes, would 

 7  protect citizens across this state.  It's a real 

 8  shame that, for whatever reason, special 

 9  interests are standing in the way of public 

10  protection.  

11               It's still a good bill.  It should 

12  have microstamping in it.  I'll vote yes and I 

13  hope that my colleagues on the other side of the 

14  aisle will allow a full debate and vote on 

15  microstamping to protect citizens and law 

16  enforcement before the year is out.  

17               I vote yes, Mr. President.

18               ACTING PRESIDENT GRIFFO:   Senator 

19  Squadron, do you vote in the affirmative?  

20               SENATOR SQUADRON:   Yes.

21               ACTING PRESIDENT GRIFFO:   Senator 

22  Squadron will be recorded in the affirmative.

23               Senator Peralta to explain his 

24  vote.

25               SENATOR PERALTA:   Yes, thank you, 

                                                               1616

 1  Mr. President.  

 2               I just want to clarify that there 

 3  are some good points in this Public Protection 

 4  bill, but I wanted to clarify that for NIBIN to 

 5  work as an investigative tool, three conditions 

 6  must be met.  First, a gun must have been 

 7  recovered, used in a previous crime or test-fired 

 8  by police or the manufacturer, and had an image 

 9  of its tool marks entered into the system more 

10  than once.  The probability of meeting these 

11  requirements has limited NIBIN users to a hit 

12  rate of 1.8 percent, based on most recent 

13  available data.  

14               So when you're using NIBIN as a 

15  replacement for CoBIS, you have a 1.8 percent 

16  rate of success.  So I don't understand when the 

17  Senator stands up and talks about how effective 

18  it is in other counties when it really isn't.

19               Although this Public Protection 

20  bill has many good qualities, has many good items 

21  in it, and I'll be voting in the affirmative for 

22  it, we need to send a loud message on 

23  microstamping.  Microstamping was not included, 

24  it should have been included, and I'm very 

25  disappointed that it wasn't.

                                                               1617

 1               So thank you, Mr. President.

 2               ACTING PRESIDENT GRIFFO:   Senator 

 3  Peralta to be recorded in the affirmative.

 4               Senator Diaz to explain his vote.

 5               SENATOR DIAZ:   Thank you, 

 6  Mr. President.  

 7               I hear Senator Peralta saying that 

 8  there is many good things in this budget, in this 

 9  bill.  Well, there is good things for the 

10  millionaires.  They don't have to pay taxes, they 

11  have a break on that.  There are good things for 

12  those people that won't be affected by the cuts.  

13               But how could I go to my district, 

14  how could I go throughout the state and tell 

15  senior citizens, the 3-point-plus-million senior 

16  citizens in the state that we have not only cut 

17  $40 million last year from EPIC, but now we are 

18  putting back $30 million but they have to wait 

19  until January 2013 so they could have help in 

20  paying for their prescription drugs.

21               So how -- this is a good thing for 

22  whom?  We are abusing, we are laughing, we are, I 

23  mean, making a mockery of our senior citizens, 

24  ladies and gentlemen.  It's a good thing for 

25  whom?  

                                                               1618

 1               So I'm asking my colleagues, 

 2  especially the black and Hispanic legislators, 

 3  stand up, fight for our communities.  Send a 

 4  message.  Vote no as I'm voting.

 5               Thank you.

 6               ACTING PRESIDENT GRIFFO:   Senator 

 7  Diaz to be recorded in the negative.

 8               Senator Perkins to explain his 

 9  vote.

10               SENATOR PERKINS:   Thank you very 

11  much.

12               I just wanted to share my 

13  association with the microstamping bill and the 

14  need for that to have been a part of this very, 

15  very important piece of legislation.  I'm going 

16  to support the bill.

17               I also wish, in memory of the 

18  Central Park Five, that there was a videotaping 

19  of confessions aspect to this bill as well so 

20  that those who are found guilty prematurely and 

21  where evidence is later found out not to be as 

22  accurate as it was intended to be would have also 

23  been included in this bill.  

24               But otherwise, I would have 

25  preferred to, again, have videotaping of 

                                                               1619

 1  confessions, microstamping, but in the meantime 

 2  I'll vote for the bill.

 3               ACTING PRESIDENT GRIFFO:   Senator 

 4  Perkins to be recorded in the affirmative.

 5               Senator Ruth Hassell-Thompson.

 6               SENATOR HASSELL-THOMPSON:   Thank 

 7  you, Mr. President.

 8               I rise to support this legislation, 

 9  with the caveat, of course -- as my colleagues 

10  have stated, the two pieces that are missing for 

11  me are microstamping as well as other aspects of 

12  the DNA bill, which I have very clearly continued 

13  to articulate and will continue to hope that we 

14  will amend the DNA bill as we become more 

15  enlightened about justice in this house.

16               Thank you, Mr. President.

17               ACTING PRESIDENT GRIFFO:   Senator 

18  Hassell-Thompson to be recorded in the 

19  affirmative.

20               Senator Parker to explain his vote.

21               SENATOR PARKER:   Thank you, 

22  Mr. President.  To explain my vote.

23               One, let me just congratulate those 

24  who have worked diligently on this budget to make 

25  sure that we have it on time and try to address 

                                                               1620

 1  some of the things that are important to the 

 2  State of New York as it relates to public 

 3  protection.  

 4               I want to join my colleagues in 

 5  saying that the inclusion of the DNA expansion in 

 6  the budget was, one, unnecessary.  It didn't have 

 7  to be done here.  It really should have been done 

 8  as a separate bill and we should have had a 

 9  separate conversation about it.  And, frankly, 

10  more public hearings certainly would have been 

11  helpful.  There's a lot of things that are not 

12  quite right with the DNA expansion bill, and I 

13  have a real objection to that.  

14               We also didn't include the CoBIS, 

15  the Combined Ballistic Identification System.  

16  And, you know, this should have been in the 

17  budget and certainly would have helped in terms 

18  of helping match shell casings.  

19               And not to do the Combined 

20  Ballistic Identification System and then not to 

21  do microstamping is insult to injury.  And we 

22  certainly need to do better if we're going to 

23  protect the people of the State of New York and 

24  certainly members of law enforcement who many 

25  times are the victims of shootings.

                                                               1621

 1               I'm voting yes, but I want to be on 

 2  the record of indicating that we're not quite 

 3  doing as much as we can be doing in this budget 

 4  around public protection to protect our 

 5  communities.  

 6               ACTING PRESIDENT GRIFFO:   Senator 

 7  Parker to be recorded in the affirmative.

 8               Announce the results.

 9               THE SECRETARY:   In relation to 

10  Calendar 471:  Ayes, 58.  Nays, 2.  Senators Diaz 

11  and Duane recorded in the negative.

12               ACTING PRESIDENT GRIFFO:   The bill 

13  is passed.

14               The Secretary will read.

15               THE SECRETARY:   Calendar Number 

16  472, Senate Print 6258D, Senate Budget Bill, an 

17  act to authorize.

18               ACTING PRESIDENT GRIFFO:   Senator 

19  Breslin.

20               SENATOR BRESLIN:   Mr. President, I 

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

22  request that the reading be waived and that 

23  Senator Avella be heard on the amendment.

24               ACTING PRESIDENT GRIFFO:   Senator 

25  Breslin, I have reviewed the amendment that is 

                                                               1622

 1  before the desk, and in accordance with Rule 4, 

 2  Section 4B, I find the amendment to be 

 3  nongermane.  

 4               The subject of the amendment was 

 5  not part of the Executive Budget before the house 

 6  and properly aged, and there is an appropriation 

 7  in the amendment bill that is proposed before us 

 8  at this point in time, and that is in order with 

 9  an Article 7 bill.

10               SENATOR BRESLIN:   Mr. President, I 

11  disagree with that, but to save time I will 

12  appeal the decision of the chair and ask Senator 

13  Avella to be heard on the appeal.

14               ACTING PRESIDENT GRIFFO:   Okay.  

15  Senator Breslin has asked for an appeal of the 

16  ruling of the chair.  Senator Avella may be heard 

17  on the appeal.

18               SENATOR AVELLA:   Thank you, 

19  Mr. President.  

20               My amendment to this budget bill, 

21  which would direct the Department of 

22  Environmental Conservation to commission studies 

23  to fully analyze both the potential seismic and 

24  public health impacts of hydraulic fracturing and 

25  appropriate $300,000 to fund these studies, is 

                                                               1623

 1  germane for the following reasons.

 2               The amendment deals with the same 

 3  subject matter as the underlying bill in the 

 4  following respects.  Both the budget bill and the 

 5  provisions of my amendment propose changes to the 

 6  Environmental Conservation Law with respect the 

 7  Department of Environmental Conservation's 

 8  responsibilities and operations.

 9               Two, certainly faced with a budget 

10  bill of this type, this relatively modest 

11  proposed addition neither unreasonably expands 

12  the object or subject of the underlying bill, nor 

13  does it change the purpose, scope, or object of 

14  the original bill.

15               The purpose and scope of the bill, 

16  if amended as I propose, would remain, among 

17  other things, to ensure that the Department of 

18  Environmental Conservation has the proper tools 

19  to protect the state's environment.

20               Three, I would also note that when 

21  the Assembly introduced its budget bills earlier 

22  this month, their proposal would have authorized 

23  funding for a health impact assessment in the 

24  same Article 7 bill.

25               Had the bill been originally 

                                                               1624

 1  introduced as I propose it now to be amended, it 

 2  would still have required consideration by the 

 3  same standing committee that reported the 

 4  underlying bill.

 5               For the foregoing reasons, the 

 6  amendment I've offering today is germane to the 

 7  bill currently under consideration.

 8               And no matter which side of the 

 9  aisle you are on, whether you're for 

10  hydrofracking or against hydrofracking, the very 

11  fact that we could do this process without 

12  analyzing the seismic or health impacts of 

13  hydrofracking in my opinion is an absolute 

14  disgrace.

15               ACTING PRESIDENT GRIFFO:   Thank 

16  you, Senator Avella.

17               All those in favor of overruling 

18  the ruling of the chair please say aye.

19               (Response of "Aye.")

20               ACTING PRESIDENT GRIFFO:   All 

21  those opposed say nay.

22               SENATOR BRESLIN:   Mr. President.  

23  Mr. President.

24               ACTING PRESIDENT GRIFFO:   Senator 

25  Breslin.  

                                                               1625

 1               SENATOR BRESLIN:   Show of hands, 

 2  Mr. President.  

 3               ACTING PRESIDENT GRIFFO:   A show 

 4  of hands is requested and so ordered. 

 5               (Senators raised their hands.) 

 6               ACTING PRESIDENT GRIFFO:   Senator 

 7  Squadron, to repeat, all those in favor of 

 8  overruling the chair would signify by saying 

 9  aye.  Those opposed, nay.  

10               Senator Breslin requested a show of 

11  hands for those who are in favor of overruling 

12  the chair.

13               The Secretary will announce the 

14  results.

15               THE SECRETARY:   Ayes, 23.

16               ACTING PRESIDENT GRIFFO:   The 

17  ruling of the chair stands.

18               The bill is before the house.

19               Read the last section.

20               THE SECRETARY:   Section 3.  This 

21  act shall take effect immediately.

22               ACTING PRESIDENT GRIFFO:   Debate 

23  is closed.  The Secretary will ring the bell.

24               Senator Krueger, why do you rise?

25               SENATOR KRUEGER:   I'm sorry, I did 

                                                               1626

 1  have some questions on this bill.  

 2               I wanted to double-check.  We had 

 3  moved past the hostile and we're back on the 

 4  bill?

 5               ACTING PRESIDENT GRIFFO:   Without 

 6  objection, Senator LaValle, we will reopen 

 7  debate.

 8               SENATOR KRUEGER:   Thank you.  

 9               ACTING PRESIDENT GRIFFO:   Without 

10  objection, debate is reopened and, Senator 

11  Krueger, you have the floor. 

12               SENATOR LaVALLE:   With unanimous 

13  consent, we'll reopen debate.

14               ACTING PRESIDENT GRIFFO:   Thank 

15  you, Senator LaValle.

16               SENATOR KRUEGER:   Thank you.  We 

17  were moving a little too quickly past the 

18  hostile.

19               So we're out now on the TED bill, 

20  what we call the TED bill, and --

21               ACTING PRESIDENT GRIFFO:   Excuse 

22  me, Senator Krueger.

23               May I have some order in the house, 

24  please. 

25               We are on Calendar 472, Senator 

                                                               1627

 1  Krueger.

 2               SENATOR KRUEGER:   Thank you so 

 3  much, Mr. President.

 4               Can the sponsor please help me 

 5  understand Part DD, which is on page 45 of the 

 6  bill, and what specifically this portion of the 

 7  bill does for us?  It's an amendment to the Green 

 8  Jobs, Green New York program legislation that we 

 9  had passed in this house for the state several 

10  years ago.

11               So I'm just trying to make sure I 

12  understand what this section does.

13               ACTING PRESIDENT GRIFFO:   Senator 

14  DeFrancisco.

15               SENATOR DeFRANCISCO:   The current 

16  law on the Green Jobs on-bill program requires 

17  that a mortgage be filed even though it's not a 

18  lien on the property, a mortgage-like document to 

19  be filed when this financing takes place.

20               The problem is, for some of the 

21  people that do the work, in order to file a 

22  mortgage you have to, according to some 

23  determination, you'd have to have a mortgage 

24  broker's license.

25               Well, all that was done here, it's 

                                                               1628

 1  a technical amendment to change the name of it to 

 2  a declaration rather than calling it a mortgage.  

 3  The declaration similarly is not a lien on the 

 4  property, but it avoids the necessity that some 

 5  have claimed; namely, that they'd have to have a 

 6  mortgage broker license to file some of these 

 7  mortgages.  And as a result, this is a -- it's an 

 8  amendment that's a lot to do about nothing.

 9               SENATOR KRUEGER:   Thank you.

10               ACTING PRESIDENT GRIFFO:   Senator 

11  Krueger.

12               SENATOR KRUEGER:   I appreciate the 

13  explanation, a lot to do about nothing.  Thank 

14  you, Mr. -- a Rumsfeldian response, says the 

15  Finance chair.  

16               If the sponsor would yield for an 

17  additional question or two, Mr. President.

18               ACTING PRESIDENT GRIFFO:   The 

19  Senator yields.

20               SENATOR DeFRANCISCO:   Yes.

21               SENATOR KRUEGER:   Thank you.

22               In the section of the TED bill 

23  dealing with economic development, in the 

24  one-house budget resolution that passed this 

25  floor the Senate Republicans were proposing some 

                                                               1629

 1  specific oversight language vis-a-vis the 

 2  Economic Regional Development Councils.  And when 

 3  I checked, the Assembly was also requesting some 

 4  very -- even more specific language to handle 

 5  ensuring that the Legislature continues to have 

 6  oversight over these funds as we move forward.

 7               Is any of that language here in 

 8  this bill?

 9               SENATOR DeFRANCISCO:   It is not.

10               SENATOR KRUEGER:   Through you, 

11  Mr. President, if the sponsor would continue to 

12  yield.

13               SENATOR DeFRANCISCO:   Yes.

14               ACTING PRESIDENT GRIFFO:   The 

15  sponsor yields.

16               SENATOR KRUEGER:   Thank you.

17               So I believe, as I read the 

18  one-house proposals in both houses, that we were 

19  all in agreement that there should be some kind 

20  of language that would require the Economic 

21  Development Councils to be subject to open 

22  meeting laws, to be required to submit updates on 

23  their consolidated funding applications, a 

24  biannual public report on the pending and 

25  approved grants through the CFAs, some tracking 

                                                               1630

 1  of proposed and actual new jobs created or 

 2  retained, the actual value of matching capital 

 3  investments, the data on the participation with 

 4  MWBE awards, and the total economic impact of the 

 5  project compared to the investments made.

 6               Even though the sponsor has said 

 7  that the answer is no, none of this is in the 

 8  budget bill today, would he agree that would have 

 9  been a preferable outcome?  

10               SENATOR DeFRANCISCO:   Sure, it 

11  would have been preferable.  That's exactly why 

12  we put it in our one-house budget, because that 

13  was our position.  

14               But the fact of the matter is a 

15  budget is a negotiated document.  And when it 

16  comes to the end of the day, you get certain 

17  things you want and you don't get other things 

18  you want, and then you make a decision do you 

19  continue with further negotiation or do you close 

20  the budget down based upon a reasonable 

21  compromise on all of the issues.  And that's what 

22  happened in this case.  

23               And as far as the only oversight we 

24  really have is that we have the authority to 

25  appropriate funds.  And if this process is not 

                                                               1631

 1  done in a way that's satisfactory to the 

 2  Legislature this coming year, then there's 

 3  another budget year, and that other budget year 

 4  can determine the additional funding, if any, for 

 5  this particular program.

 6               SENATOR KRUEGER:   Through you, 

 7  Mr. President, I appreciate the sponsor's 

 8  answers.

 9               ACTING PRESIDENT GRIFFO:   Are you 

10  on the bill or do you want to ask questions?

11               SENATOR KRUEGER:   Point of 

12  clarification, if I might, just to make sure I 

13  follow protocol.  May I make a statement on the 

14  bill and then immediately go back to questions?  

15               ACTING PRESIDENT GRIFFO:    

16  Absolutely.  Absolutely.

17               SENATOR KRUEGER:   Thank you.  I 

18  just want to make sure I get this right.

19               So on the bill, I wish that we had 

20  the improved transparency and the correct system 

21  in place to make sure that the economic 

22  development funds that we are awarding through 

23  appropriation through this bill to the Regional 

24  Economic Development Councils, we had the 

25  transparency, we had the recordkeeping, we had 

                                                               1632

 1  the tracking.

 2               I am disappointed it's not in this 

 3  budget bill.  I'm glad to hear from my colleague 

 4  and friend Senator DeFrancisco that I think he 

 5  agrees with me that we would prefer to have it in 

 6  the budget bill.  And he's right, a budget is a 

 7  negotiation.

 8               So just for the record, on the 

 9  bill, I carry a separate piece of legislation, 

10  S2854, which enacts the unified economic 

11  development budget requirements for the state 

12  which I believe we could proudly pass in this 

13  house and potentially pass in the Assembly soon 

14  after, perhaps after break, and it would allow us 

15  to make sure we had this kind of accountability 

16  and transparency and the information available to 

17  us and the public.  

18               Not through the budget bill, 

19  because it's not here in the budget, but we could 

20  accomplish this within a matter of weeks 

21  afterwards.  So I'm hoping that that is something 

22  we could take up soon after the break.

23               I would now, Mr. President, like to 

24  go back to asking questions of the sponsor.

25               ACTING PRESIDENT GRIFFO:   Senator 

                                                               1633

 1  DeFrancisco yields.

 2               SENATOR DeFRANCISCO:   Yes, I do.

 3               SENATOR KRUEGER:   Thank you very 

 4  much.

 5               I want to jump to some 

 6  environmental questions.  Obviously the TED bill 

 7  covers many different pieces of the budget within 

 8  one bill.

 9               There is a proposal that was made 

10  to move the, quote, unquote, nickels collected 

11  through the Bottle Bill from the General Fund to 

12  the Environmental Protection Fund.  Did that make 

13  it into this bill?  

14               SENATOR DeFRANCISCO:   Yes, it is 

15  not in this bill.

16               SENATOR KRUEGER:   Yes, it is not 

17  in this bill.  

18               Thank you, Mr. President.  Through 

19  you, if the sponsor could continue to yield.

20               ACTING PRESIDENT GRIFFO:   The 

21  sponsor yields.

22               SENATOR DeFRANCISCO:   Yes.

23               SENATOR KRUEGER:   Thank you.

24               There were also proposals to 

25  provide funding to coal-fired power plants in the 

                                                               1634

 1  form of long-term contracts between the Power 

 2  Authority and the plants in Niagara and 

 3  Chautauqua counties.  Did that end up in this 

 4  budget bill?

 5               SENATOR DeFRANCISCO:   It did not.

 6               SENATOR KRUEGER:   Thank you.

 7               There was also a proposal to 

 8  permanently extend tax incentives associated with 

 9  the broken Brownfields Cleanup Program.  Did 

10  those incentives end up in this budget bill?  

11               SENATOR DeFRANCISCO:   Negative.

12               SENATOR KRUEGER:   Mr. President, 

13  on the bill.

14               ACTING PRESIDENT GRIFFO:   Senator 

15  Krueger on the bill.

16               SENATOR KRUEGER:   Thank you.

17               I am very pleased that the 

18  coal-fired power plant proposal did not make it 

19  into the budget bill.  I am disappointed that -- 

20  excuse me, I'm pleased that the brownfield 

21  language didn't make it into the budget bill, and 

22  I am disappointed that the funding moving to the 

23  EPF rather than the General Fund from the Bottle 

24  Bill did not make it in.  So I have some pluses 

25  and some minuses on my scorecard already.

                                                               1635

 1               To follow through with some 

 2  additional questions for the sponsor.

 3               SENATOR DeFRANCISCO:   Yes, you 

 4  may.

 5               ACTING PRESIDENT GRIFFO:   The 

 6  sponsor yields.

 7               SENATOR KRUEGER:   Thank you very 

 8  much.

 9               There was some debate about how 

10  much money would be available for smoking 

11  cessation programs in the state budget.  Can the 

12  sponsor clarify for me what happened with those 

13  funds?  

14               SENATOR DeFRANCISCO:   I've been 

15  informed that there was a restoration of 

16  $5 million for smoking cessation programs.  It's 

17  not in this bill, however.  It's in the Health 

18  bill.

19               SENATOR KRUEGER:   Thank you.  

20               Through you, Mr. President, if the 

21  sponsor would continue to yield.

22               SENATOR DeFRANCISCO:   Yes.  Yes.

23               ACTING PRESIDENT GRIFFO:   The 

24  sponsor yields.

25               SENATOR KRUEGER:   Thank you.

                                                               1636

 1               Shifting from environment to 

 2  transportation, there's a New York Works Task 

 3  Force that was proposed by the Governor and 

 4  actually talked about in his State of the State 

 5  address.  It's my understanding there were quite 

 6  a few changes made in the creation of a task 

 7  force with certain responsibilities.  

 8               Could the sponsor help me 

 9  understand the role of this task force and what 

10  say the Legislature will have over determining 

11  how the funding is allocated?  Because my 

12  understanding is this could be close to 

13  $16 billion for capital funds, and it's not being 

14  line-itemed-out in the budget or in a separate 

15  document we have now.  So I'd like his help in 

16  understanding how the Legislature will have a say 

17  over the funding being spent in the future 

18  through this task force.

19               SENATOR DeFRANCISCO:   First of 

20  all, the task force will consist of 15 members, 

21  nine appointed by the Governor, two by the 

22  majority party of each house, and one member from 

23  the minority party of each house.

24               And the purpose behind it is to 

25  review all of the projects that are capital 

                                                               1637

 1  projects that are being considered by all the 

 2  agencies in an effort to try to coordinate all 

 3  the construction-type work that other agencies 

 4  are doing.  Right now, sometimes the left hand 

 5  doesn't know what the right hand is doing.  There 

 6  may be a duplication of efforts, whether it's 

 7  studies or engineering work or the like.  

 8               And the concept is for this group 

 9  to review all the projects from different 

10  agencies and different departments to try to come 

11  up with a coordinated effort.

12               Now, the input the Legislature has 

13  is through their members that have been 

14  appointed.  And this task force, however, is 

15  purely advisory.  They don't make the decisions, 

16  they advise the agencies.  And ultimately the 

17  administration will make these decisions as to 

18  what projects are done and by which agency or 

19  department they're done.

20               SENATOR KRUEGER:   Through you, 

21  Mr. President, if the sponsor would continue to 

22  yield.

23               SENATOR DeFRANCISCO:   Yes.

24               SENATOR KRUEGER:   Thank you.

25               Appreciate the answer.  I think 

                                                               1638

 1  this is a new concept for all of us, to create a 

 2  task force with advisory votes on the expenditure 

 3  of capital money.

 4               Am I correct, is there a specific 

 5  dollar figure for an appropriation in this budget 

 6  that will be then put under the authority of the 

 7  task force to decide who, what, where spends with 

 8  an advisory vote on those specific proposals, as 

 9  just explained by the sponsor?  

10               SENATOR DeFRANCISCO:   This will be 

11  in the appropriations bill, there will be a 

12  million dollars for this organization to perform 

13  their operating functions.

14               As far as the -- you asked about 

15  the language for how this organization will 

16  operate?

17               SENATOR KRUEGER:   May I clarify, 

18  Mr. President, my question?  

19               ACTING PRESIDENT GRIFFO:   You may.

20               SENATOR KRUEGER:   Thank you.

21               I think what I was trying to get at 

22  was in the appropriations bill we are giving X 

23  amount of money for activities that will be 

24  overseen by the New York Works Task Force.

25               SENATOR DeFRANCISCO:   For the 

                                                               1639

 1  operation, $1 million for the operating costs of 

 2  this task force.

 3               SENATOR KRUEGER:   Mr. President, 

 4  through you, I am trying to get at this is a task 

 5  force to determine how capital money is spent, I 

 6  believe approximately $16 billion.  

 7               Will we as the Legislature have any 

 8  say over the specifics of the programs, these 

 9  capital monies, the $16 billion or pick some 

10  other number in another year -- will we have any 

11  say or even see what these projects that are 

12  being approved by the task force are?  Do we have 

13  any future vote?  What is our role in the 

14  continuing decision-making around capital 

15  projects going through this task force?  

16               SENATOR DeFRANCISCO:   Well, first 

17  of all, this task force is not going to decide 

18  what happens, they're going to advise as to what 

19  programs and in what order they should be done.  

20  That's point one.

21               Secondly, again, the members that 

22  are appointed by the Legislature will be part of 

23  that task force.  

24               And, thirdly, the Legislature 

25  always has appropriation authority to appropriate 

                                                               1640

 1  for capital projects.  And indirectly, once 

 2  again, if the capital projects are not decided in 

 3  a way that this Legislature wants, each year we 

 4  have the ability to affect those appropriations.

 5               SENATOR KRUEGER:   Through you, 

 6  Mr. President, if the sponsor would continue to 

 7  yield.

 8               SENATOR DeFRANCISCO:   Yes.

 9               SENATOR KRUEGER:   Thank you.

10               This task force will advise whom?

11               SENATOR DeFRANCISCO:   Well, 

12  ultimately the administration.  They would advise 

13  each of the agencies and the authorities that 

14  were part of what they're reviewing as to what 

15  should be done first.

16               But ultimately the Governor and the 

17  administration will make those final decisions.

18               SENATOR KRUEGER:   Through you, 

19  Mr. President, if the sponsor would continue to 

20  yield. 

21               SENATOR DeFRANCISCO:   Subject to 

22  the appropriation for the funding.

23               ACTING PRESIDENT GRIFFO:   The 

24  sponsor yields.

25               SENATOR KRUEGER:   Thank you.

                                                               1641

 1               So again, as I understood it, so 

 2  there will be this task force, it will have 

 3  15 members, the majority will be the Governor's 

 4  appointees, I believe, nine out of 15.  The 

 5  Assembly will have three, the Senate will have 

 6  three, two will be majority, one will be 

 7  minority.  The minority member won't have a vote.

 8               But the in fact recommendations of 

 9  this task force are simply advisory back to the 

10  Governor, who has the majority of the votes on 

11  the task force.  But it will be advising the 

12  Governor on what capital monies shall be spent on 

13  specific projects after we have actually 

14  appropriated the money in the budget.  

15               So technically I want to agree with 

16  the sponsor, we are appropriating money in a 

17  budget, but we are not actually appropriating 

18  money for specific projects going through this 

19  task force.  Rather, the task force will make 

20  recommendations on specific projects and advise 

21  the Governor after the fact, after we've done the 

22  budget?  I just want to understand if I'm getting 

23  that right.

24               SENATOR DeFRANCISCO:   Not quite.  

25  Because this year there is a memorandum of 

                                                               1642

 1  understanding that has been signed for all 

 2  transportation projects by the Governor and the 

 3  leader of each house.  Those projects are in 

 4  place.  So there was input by the leadership as 

 5  to what that list would include.

 6               Next year when we reach this time 

 7  or shortly before this time, the advisory group 

 8  will have already met, made their 

 9  recommendations, and the Governor will make his 

10  decisions as to what he thinks would be the best 

11  projects and in what order.  And then, once 

12  again, at least as to the transportation 

13  projects, there will be a requirement for a 

14  memorandum of understanding to identify those 

15  projects, so we would have input there.

16               As far as the authorities, we don't 

17  have any input on that now.  The authorities are 

18  independent bodies, and they -- so we're not 

19  giving anything up with respect to the 

20  authorities.  They would make their own 

21  decisions.

22               SENATOR KRUEGER:   Through you, 

23  Mr. President, if the sponsor would continue to 

24  yield.

25               SENATOR DeFRANCISCO:   Yes.

                                                               1643

 1               SENATOR KRUEGER:   There is an MOU 

 2  that has been signed by the leaders for the 

 3  transportation funds for this year.  Is that on 

 4  the desks of the Legislature?

 5               SENATOR DeFRANCISCO:   I don't 

 6  think so.  But it's on the Internet.  And it's 

 7  also -- each leader has a copy, and hopefully 

 8  your leader has a copy as well, because it's been 

 9  publicly -- Senator Dilan was given a copy.  He's 

10  got it, he's acknowledging that he's got it 

11  today.  Is that what that means?  He got it 

12  today.

13               SENATOR KRUEGER:   Thank you.

14               Through you, Mr. President, if the 

15  sponsor would continue to yield.

16               SENATOR DeFRANCISCO:   Yes.

17               SENATOR KRUEGER:   Is it the 

18  sponsor's understanding that even though there is 

19  now a -- and by the way, I appreciate very much 

20  the sponsor answering.  Of course he is right, 

21  many of the decisions that are made through 

22  authorities don't come through this house for 

23  legislative approval one way or the other.  And 

24  so this task force is in fact merging in some way 

25  some functions that were already being done by 

                                                               1644

 1  government outside of the legislative process.

 2               I raised the concern earlier that 

 3  we did not add to the budget language that would 

 4  assure transparency and accountability in 

 5  tracking of what was done by the Economic 

 6  Regional Development Councils.  So now, turning 

 7  to this section of TED with the creation of this 

 8  task force, is our understanding that this task 

 9  force has any obligation to -- they advise the 

10  Governor.  

11               Do they have any obligation to 

12  follow Open Meeting Law requirements, provide 

13  reports on the projects being approved and 

14  funded, report back to the Legislature and/or the 

15  public, ensure that the state's MWBE 

16  requirements are being met?  Does that task force 

17  have any responsibility to ensure all these other 

18  things are done as well?  

19               SENATOR DeFRANCISCO:   This 

20  advisory group is created by statute, unlike the 

21  Economic Development Councils.  So as a result, 

22  since it's an organization that's being created 

23  by statute, they would be subject to the Open 

24  Meetings Law.  

25               And once again, we do have members 

                                                               1645

 1  of the minority and the majority who are members 

 2  of this organization.  And obviously they could 

 3  provide whatever information they chose to 

 4  provide to the public, as could any other 

 5  member.  So there will be transparency.  

 6               And as far as the MOU that I 

 7  mentioned earlier, there is clear language in the 

 8  MOU requiring transparency of the programs that 

 9  are listed in that MOU.

10               SENATOR KRUEGER:   Thank you.  I 

11  appreciate the Senator's responses to all of my 

12  questions.

13               If through you, Mr. President, the 

14  sponsor would continue to yield.

15               ACTING PRESIDENT GRIFFO:   The 

16  sponsor yields.

17               SENATOR DeFRANCISCO:   Yes, I 

18  would.

19               SENATOR KRUEGER:   Thank you.  

20               There was a -- yes?

21               SENATOR DeFRANCISCO:   Excuse me.  

22  You've spoken so long that your flowers are 

23  wilting.

24               (Laughter.)

25               SENATOR KRUEGER:   Mr. President, 

                                                               1646

 1  through you.  It is only 1 o'clock in the 

 2  afternoon on the first day of what will no doubt 

 3  be multiple days of budget and no doubt be 

 4  multiple dialogues between myself and my dear 

 5  friend John DeFrancisco.  If he likes, if he 

 6  brings me fresh flowers tomorrow, I'll put them 

 7  on my desk.

 8               (Laughter.)

 9               SENATOR KRUEGER:   Through you, 

10  Mr. President, if the sponsor would continue to 

11  yield.

12               ACTING PRESIDENT GRIFFO:   The 

13  sponsor yields, Senator Krueger.

14               SENATOR DeFRANCISCO:   Yes.  Yes.

15               SENATOR KRUEGER:   Thank you.

16               There was a proposal, I believe, in 

17  the Governor's original budget to provide for 

18  credits for solar industry development.  Is that 

19  in this Article 7 bill?

20               SENATOR DeFRANCISCO:   No, it's 

21  not.

22               SENATOR KRUEGER:   Through you, 

23  Mr. President, if the sponsor would continue to 

24  yield.

25               SENATOR DeFRANCISCO:   Yes.

                                                               1647

 1               ACTING PRESIDENT GRIFFO:   The 

 2  sponsor yields.

 3               Can I have some order in the 

 4  chamber, please.

 5               SENATOR KRUEGER:   Is there any 

 6  section of this bill that deals with expansion of 

 7  sustainable or solar or wind or other forms of 

 8  cleaner energy creation?

 9               SENATOR DeFRANCISCO:   There is 

10  not.  But certainly we have several months left 

11  in session.  Those issues can be debated and 

12  discussed during the balance of the session.

13               SENATOR KRUEGER:   Thank you.

14               Through you, Mr. President.

15               ACTING PRESIDENT GRIFFO:   The 

16  sponsor yields.

17               SENATOR KRUEGER:   Thank you.  

18               (Pause.)  I've actually run out of 

19  the questions for the sponsor.

20               ACTING PRESIDENT GRIFFO:   Thank 

21  you.

22               SENATOR KRUEGER:   I appreciate his 

23  time --

24               SENATOR DeFRANCISCO:   Damn.

25               (Laughter.)

                                                               1648

 1               SENATOR KRUEGER:   There will be 

 2  more later.  There will be plenty more to go on 

 3  so many bills.

 4               So briefly on the bill.

 5               ACTING PRESIDENT GRIFFO:   Senator 

 6  Krueger briefly on the bill.

 7               SENATOR KRUEGER:   Thank you.

 8               One of the purposes of my asking 

 9  questions, of course, is to make sure that we do 

10  understand what is in this bill and what is not 

11  in this bill.

12               I agree it's not a perfect bill.  I 

13  would have rather seen any number of additional 

14  things in this bill, as I referenced to you 

15  before.  And I'm disappointed that some of the 

16  issues that I don't believe should be in this 

17  budget bill have been included in the bill.

18               But I guess I would like to 

19  highlight how important I think the role of the 

20  Legislature is in making sure there is 

21  transparency, there is tracking of what 

22  decisions are made after a budget bill is passed, 

23  there is accountability not only applied to 

24  ourselves but to the Governor and his agencies 

25  when we are approving new programs, approving 

                                                               1649

 1  through the appropriations bills large amounts of 

 2  the taxpayers' money to accomplish certain goals, 

 3  that if there's not the proper oversight, if 

 4  there's not the proper tracking, if there's not 

 5  the ability of the public to watch what's going 

 6  on and find out information about these programs 

 7  we create -- sometimes they're moved into task 

 8  forces, sometimes they are moved off-budget and 

 9  through authorities.  

10               I think that the critical message 

11  here for me, when saying I will vote for the TED 

12  bill, is that we again are flunking the test of 

13  making sure that we are able to do our own job of 

14  oversight of how the people's money is being 

15  spent.  

16               And in fact, next year and the year 

17  after and the year after, when we are again asked 

18  to make these hard decisions about what we're 

19  spending money on, what we're not spending money 

20  on, what kind of programs we're continuing, what 

21  kinds of programs we're ending, we won't have the 

22  right facts to actually help us know whether 

23  something was successful, whether something was a 

24  failure, whether something that made sense in 

25  1975 doesn't make sense in the year 2012-2013.

                                                               1650

 1               So my overall objection to this 

 2  legislation which impacts so many different 

 3  areas -- transportation, economic development, 

 4  the environment -- is that we're not improving 

 5  our ability and the public's ability to see what 

 6  really happens beyond this document we call a 

 7  budget bill.  Because the real work is the work 

 8  done outside of this chamber once the money is 

 9  appropriated and the programs are created.

10               So I'm hoping that this house will 

11  be serious about wanting to pass statutes that 

12  require the oversight, the accountability, and 

13  the transparency of government monies once we are 

14  approving them being spent in these budget 

15  bills.  

16               Thank you, Mr. President.  I will 

17  be a yes vote.

18               ACTING PRESIDENT GRIFFO:   Thank 

19  you, Senator Krueger.

20               Senator Adams.

21               SENATOR ADAMS:   Thank you, 

22  Mr. President.

23               And I want to thank my colleague 

24  Senator Krueger because I think she raised a good 

25  point on how important it is that we have a 

                                                               1651

 1  discussion.

 2               Everyone sometimes gets consumed 

 3  with a frictionless process.  But we are making 

 4  decisions that impact lives and impact how we're 

 5  going to make sure that all New Yorkers benefit 

 6  from the budget that we pass for the next year.  

 7  And so a frictionless process is not always the 

 8  best process.

 9               Would the sponsor yield for a few 

10  questions?

11               SENATOR DeFRANCISCO:   Yes.

12               ACTING PRESIDENT GRIFFO:   The 

13  sponsor yields.

14               SENATOR ADAMS:   Through you, 

15  Mr. President.  And I thank the sponsor for his 

16  patience in yielding.

17               Senator DeFrancisco, are there any 

18  OTBs in the state that are currently in 

19  bankruptcy based on the bankruptcy provisions?  

20               SENATOR DeFRANCISCO:   New York 

21  City is bankrupt, and Suffolk is attempting to go 

22  into bankruptcy at this point.

23               SENATOR ADAMS:   Through you, 

24  Mr. President --

25               SENATOR DeFRANCISCO:   And by the 

                                                               1652

 1  way, I don't view the exchange between Senator 

 2  Krueger and myself as friction.  I was -- it was 

 3  an attempt at humor.  It was not in any way, in 

 4  some way trying to be uncivil.  So I'm not quite 

 5  sure what you meant by that.  But I want to make 

 6  that clear.

 7               SENATOR ADAMS:   No, I didn't 

 8  think -- through you, Mr. President, I didn't 

 9  think that you -- I wasn't speaking of you, I was 

10  speaking of the public display that, you know, 

11  everyone is stating how fast we're moving through 

12  the process.  

13               SENATOR DeFRANCISCO:   Okay.

14               SENATOR ADAMS:   That's what I was 

15  talking about.  And this fast movement is not 

16  always healthy.  We need to sit down and have a 

17  conversation.  So it wasn't directed to you.

18               SENATOR DeFRANCISCO:   Thank you.

19               SENATOR ADAMS:   Through you, 

20  Mr. President, if the sponsor would continue to 

21  yield.

22               SENATOR DeFRANCISCO:   Yes.

23               ACTING PRESIDENT GRIFFO:   The 

24  Senator yields.

25               SENATOR ADAMS:   In this bill is 

                                                               1653

 1  there a current provision that would expressly 

 2  provide state authorization for Suffolk OTB to 

 3  move forward with this bankruptcy?

 4               SENATOR DeFRANCISCO:   Not only 

 5  Suffolk, but it provides language that would 

 6  authorize any OTB to go into bankruptcy.

 7               SENATOR ADAMS:   Would the sponsor 

 8  continue to yield?  

 9               ACTING PRESIDENT GRIFFO:   The 

10  sponsor yields.

11               SENATOR ADAMS:   Through you, 

12  Mr. President.  That's a good point that you just 

13  raised.  Are there any other OTBs in the state 

14  that are currently in bankruptcy outside of 

15  Suffolk?

16               SENATOR DeFRANCISCO:   There are 

17  not any.  Nor is Suffolk currently in 

18  bankruptcy.  This authorizes Suffolk to go into 

19  bankruptcy.  But it also applies to other OTBs if 

20  they choose to at some point, but we don't know 

21  of any that are choosing to.  But we're giving 

22  the authorization to each one in this bill.

23               SENATOR ADAMS:   Would the sponsor 

24  continue to yield?  

25               ACTING PRESIDENT GRIFFO:   The 

                                                               1654

 1  sponsor yields.

 2               SENATOR ADAMS:   Through you, 

 3  Mr. President.  Was Suffolk County in bankruptcy 

 4  and the court procedures were dismissed?  Were 

 5  they in bankruptcy at one time?

 6               SENATOR DeFRANCISCO:   I'm being 

 7  advised -- I don't know much about Suffolk County 

 8  OTB, but I'm being advised that it has not been 

 9  in bankruptcy, it needed this authorization to do 

10  so.

11               SENATOR ADAMS:   You know, 

12  sometimes our advisors give us incorrect 

13  information.  Suffolk County was in fact in 

14  bankruptcy; it was dismissed.  They need this 

15  bill for it to pass.  So I'm hoping his advisors 

16  won't have him in a courtroom making bad 

17  decisions like this as well.

18               SENATOR DeFRANCISCO:   Excuse me --

19               ACTING PRESIDENT GRIFFO:   Senator 

20  Adams, let Senator DeFrancisco respond.

21               SENATOR DeFRANCISCO:   The reason 

22  the attempted bankruptcy was dismissed is because 

23  they needed authorization to go into bankruptcy.  

24  That's the purpose of this bill.  So they never 

25  were allowed to go into bankruptcy, and they 

                                                               1655

 1  can't without this authorization.

 2               SENATOR ADAMS:   Thank you.

 3               Through you, Mr. President, if the 

 4  sponsor will continue to yield.

 5               SENATOR DeFRANCISCO:   Yes.

 6               ACTING PRESIDENT GRIFFO:   The 

 7  sponsor yields.

 8               SENATOR ADAMS:   So if I understand 

 9  you correctly, the provision we're about to pass 

10  is going to allow Suffolk County to move forward 

11  with their bankruptcy that they would not have 

12  been able to do if we didn't pass this provision.

13               SENATOR DeFRANCISCO:   That is 

14  correct.

15               SENATOR ADAMS:   Thank you.

16               If the sponsor will continue to 

17  yield.

18               SENATOR DeFRANCISCO:   Yes.

19               ACTING PRESIDENT GRIFFO:   The 

20  sponsor yields.

21               SENATOR ADAMS:   Through you, 

22  Mr. President.  If the bankruptcy provision is 

23  not passed, could Suffolk County OTB -- would 

24  they have to close their doors?  Is there a 

25  possibility they would have to close their 

                                                               1656

 1  doors?  

 2               SENATOR DeFRANCISCO:   Well, it's 

 3  possible they'd close their doors, but they 

 4  wouldn't be able to take advantage of the 

 5  bankruptcy provisions without this statute 

 6  passing.

 7               SENATOR ADAMS:   Through you, 

 8  Mr. President, if the sponsor will continue to 

 9  yield.

10               ACTING PRESIDENT GRIFFO:   The 

11  sponsor yields.

12               SENATOR DeFRANCISCO:   And just to 

13  be clear -- I probably should have mentioned this 

14  at the outset -- there's different types of 

15  bankruptcy.  There's bankruptcy that simply you 

16  go bankrupt, you're done, kaput, it's over.  

17               What Suffolk County is trying to 

18  do, which -- it's my understanding they want to 

19  reorganize in bankruptcy and try to continue 

20  their operations, but taking on the protection of 

21  bankruptcy court to make it financially feasible 

22  to continue.

23               So there's a beneficial part of 

24  bankruptcy if this works.  It's happened with 

25  major corporations that have been ready to file 

                                                               1657

 1  bankruptcy or filed bankruptcy and reorganized 

 2  and then continued to exist in a different form.

 3               ACTING PRESIDENT GRIFFO:   Senator 

 4  Adams, you may pose your question.  The sponsor 

 5  yields.

 6               SENATOR ADAMS:   Through you, 

 7  Mr. President, would the sponsor continue to 

 8  yield?  

 9               Senator DeFrancisco, thank you for 

10  the information on types of bankruptcies.  Is the 

11  type of bankruptcy that Suffolk County is 

12  attempting to do, was that the same type of 

13  bankruptcy that New York City OTB attempted to 

14  do?  

15               SENATOR DeFRANCISCO:   They want to 

16  reorganize and continue to exist and use the 

17  bankruptcy protections that allow them to do 

18  that.

19               SENATOR ADAMS:   Through you, 

20  Mr. President, would the sponsor continue to 

21  yield?  

22               ACTING PRESIDENT GRIFFO:   The 

23  sponsor yields.

24               SENATOR ADAMS:   I know they want 

25  to reorganize.  My question to you -- because you 

                                                               1658

 1  gave a good lesson on bankruptcy, I want to 

 2  further that lesson -- is the type of bankruptcy 

 3  that Suffolk County is attempting to do the same 

 4  type of bankruptcy that New York City OTB 

 5  attempted to do?  

 6               SENATOR DeFRANCISCO:   I can't 

 7  answer that question.  I really don't know.  I'm 

 8  being advised that it was similar, but I guess in 

 9  New York City it didn't work.

10               SENATOR ADAMS:   Thank you.  Those 

11  advisors of yours are something else.  They both 

12  tried to do Chapter 9.  That's the same type of 

13  bankruptcy.  

14               ACTING PRESIDENT GRIFFO:   Senator 

15  Adams, let's observe civility and decorum, 

16  please.

17               SENATOR ADAMS:   Yes, I will.  

18               Through you, Mr. President, if the 

19  sponsor will continue to yield.

20               SENATOR DeFRANCISCO:   Yes.

21               ACTING PRESIDENT GRIFFO:   The 

22  sponsor yields.

23               SENATOR ADAMS:   If Suffolk OTB 

24  closes its doors, would the employees lose their 

25  jobs?  

                                                               1659

 1               SENATOR DeFRANCISCO:   I would 

 2  suspect so, yes.

 3               SENATOR ADAMS:   Thank you.  

 4               Would the sponsor continue to 

 5  yield?

 6               SENATOR DeFRANCISCO:   Yes.

 7               ACTING PRESIDENT GRIFFO:   The 

 8  sponsor yields.

 9               SENATOR ADAMS:   Through you, 

10  Mr. President, if Suffolk OTB closes its doors, 

11  would the employees lose their health insurance?  

12               SENATOR DeFRANCISCO:   They would 

13  do that as well.  

14               And the reason we are putting this 

15  provision in is so that Suffolk County could try 

16  to reorganize and be in a position not to close 

17  their doors, reorganize in a different form so 

18  they don't have to close their doors.  So this is 

19  to help the employees and to help OTB attempt to 

20  survive.

21               SENATOR ADAMS:   Would the sponsor 

22  continue to yield?  Through you, Mr. President.  

23               ACTING PRESIDENT GRIFFO:   The 

24  sponsor yields.

25               SENATOR ADAMS:   If Suffolk OTB 

                                                               1660

 1  closes its doors, would retirees lose their 

 2  health benefits?  

 3               SENATOR DeFRANCISCO:   I would 

 4  think so, yes.

 5               SENATOR ADAMS:   Would the sponsor 

 6  continue to yield?  

 7               ACTING PRESIDENT GRIFFO:   The 

 8  sponsor yields.

 9               SENATOR ADAMS:   Senator 

10  DeFrancisco, in December two thousand and -- I 

11  think it was 2010 there was an attempt to allow 

12  New York City OTB to file for Chapter 9 

13  bankruptcy, the same type of bankruptcy.  Did you 

14  vote on that bill?

15               SENATOR DeFRANCISCO:   I'm sure I 

16  did.  That was in 2010?  I'm sure I did.

17               SENATOR ADAMS:   Did you vote -- 

18  would the sponsor continue to yield?  Through 

19  you, Mr. President.

20               ACTING PRESIDENT GRIFFO:   Senator 

21  Adams, is your question directly effective to 

22  this bill or the past?  Because you're starting 

23  to move towards past history, and I'd ask you to 

24  keep your questions germane to the particular 

25  proposal before us.

                                                               1661

 1               SENATOR ADAMS:   Yes, it's all 

 2  connected, Mr. President.  If the sponsor will 

 3  continue to yield.

 4               ACTING PRESIDENT GRIFFO:   The 

 5  sponsor yields.

 6               SENATOR ADAMS:   Are you aware that 

 7  just as in this current bill that the New York 

 8  City OTB employees lost their jobs and health 

 9  insurance, just as what could happen with Suffolk 

10  County if this bill isn't passed?

11               SENATOR DeFRANCISCO:   That could 

12  happen with Suffolk County if this bill wasn't 

13  passed.  

14               But there's one important 

15  distinction with New York City.  There was an 

16  additional request from the New York City OTB was 

17  to forgive about $20 million of back taxes.  And 

18  Suffolk County isn't looking for that, nor does 

19  this bill authorize the forgiveness of any 

20  taxes.  So I think that was one of the main 

21  reasons that this is somewhat different than the 

22  New York City OTB situation.

23               SENATOR ADAMS:   Thank you, Senator 

24  DeFrancisco.

25               On the bill.

                                                               1662

 1               ACTING PRESIDENT GRIFFO:   Senator 

 2  Adams on the bill.

 3               SENATOR ADAMS:   You know, we -- 

 4  the point I am attempting to get at is that 

 5  there's a level of ironic behavior -- and I guess 

 6  that's why the term "irony" is in the 

 7  dictionary -- that we have to define when there 

 8  seems to be conflicting responses to people.

 9               Two years ago, when this was 

10  New York City OTB, the Senate Republicans said to 

11  New York City and hundreds of DC-37 employees 

12  basically that their livelihood was not 

13  important, that they didn't care that these 

14  people would lose their jobs, health insurance, 

15  retirements.  

16               And now, because the OTB is in 

17  Suffolk County, which happens to be represented 

18  by all Republicans, now there's a level of 

19  urgency of making sure that we can keep the doors 

20  open.

21               I want to read from my text:  "This 

22  is not an upstate and downstate issue.  This is 

23  about one state.  And I think that sometimes you 

24  have to go beyond the politics of an issue.  And 

25  when we look at the faces of the men and women in 

                                                               1663

 1  those green jackets that represent middle-class 

 2  New Yorkers who held this state together, a no 

 3  vote on this bill would light the wick to a stick 

 4  of dynamite that will blow up our racing 

 5  industry.  And if you believe it would only 

 6  impact New York State, you are wrong.  

 7               "I traveled from Buffalo to Long 

 8  Island, visited horse farms, visited those who 

 9  made horse feed, visited those who are attached 

10  to this industry.  If we don't pass this bill, we 

11  have started the erosion of racing in the State 

12  of New York.  Today it is New York City OTB, 

13  tomorrow it is Nassau, it is Monticello and other 

14  regions."  And now in Suffolk.

15               And so oftentimes when men who are 

16  elected to office, they do State of the States 

17  and other presentations and they have real human 

18  beings to profile, because they put a face to the 

19  legislative process and what we do in 

20  government -- I want to put a human face to what 

21  we are doing now that we were not willing to do 

22  in New York City.  

23               His name is Lenny Allen.  After 

24  years and years of being an OTB employee, he was 

25  diagnosed -- on the eve of the failure to pass 

                                                               1664

 1  the New York City OTB bill, he was diagnosed with 

 2  cancer.  Two procedures into his cancer diagnosis 

 3  he was told his healthcare was cut off and he was 

 4  not allowed to go for continuing treatment, 

 5  life-saving treatment.

 6               So I'm going to vote for this bill, 

 7  because I believe the employees of Suffolk County 

 8  have a right to have their doors open.  But it's 

 9  troubling to me that that same level of simple 

10  compassion was not displayed for New York City 

11  OTB.  

12               We can't continue merely to 

13  resonate this attitude that we're not in one 

14  state.  That we are in one state.  Just as the 

15  employees in Suffolk County was deserving of a 

16  right and is deserving of a right to continue to 

17  be employed, so too do those men and women of 

18  New York City.  They too sit down at the kitchen 

19  table wondering how they're going to provide for 

20  their families and continue to pay their mortgage 

21  and healthcare.  

22               Men and women of this state don't 

23  cry any different or have any less compassion for 

24  their family based on the geographical location 

25  of their home or employment.  We were wrong what 

                                                               1665

 1  we did to New York City OTB, and I'm not going to 

 2  duplicate that wrong.  I will vote in favor of 

 3  this bill.

 4               ACTING PRESIDENT GRIFFO:   Thank 

 5  you, Senator Adams.

 6               Is there any other Senator wishing 

 7  to be heard?  Seeing none, hearing none, debate 

 8  is closed.

 9               Senator DeFrancisco to close.

10               SENATOR DeFRANCISCO:   I just 

11  wanted to mention, in response to what Senator 

12  Adams mentioned, first of all, it's neither 

13  ironic nor inconsistent what we're doing here.

14               The problem arose when there was a 

15  different group leading the Senate and there was 

16  no bill for any relief during that period of 

17  time, there wasn't enough votes for any relief.

18               Last year we passed a bill in this 

19  house to protect the health insurance benefits of 

20  the New York City OTB employees.  The Governor 

21  vetoed the bill.  This year the Republicans in 

22  the Senate had it in our one-house budget bill 

23  that I think maybe some of you voted for, I can't 

24  remember -- no, you probably didn't.  We had it 

25  in our one-house budget bill to provide the same 

                                                               1666

 1  relief, the health benefits for these OTB 

 2  employees in New York City.  The Assembly did not 

 3  and the Governor did not push for it, so it did 

 4  not become part of this budget.

 5               And as far as the Republicans, the 

 6  county legislature in Suffolk County is 

 7  controlled by not the Republican Party.  I'll -- 

 8  you can figure out who controls it.

 9               So from our standpoint, we did last 

10  year what you claim we should be doing and was 

11  not done when you were in control.  The Governor 

12  vetoed it.  This year we tried to negotiate it in 

13  this budget.  We couldn't get it because the 

14  Democratic-controlled Senate and the Governor 

15  were not in favor of it.

16               So I think we're totally 

17  consistent.  And this bill, by the way -- this 

18  bill, by the way, treats all OTBs alike.  It's 

19  not looking for special treatment for one city by 

20  forgiving $20 million worth of taxes, it treats 

21  all OTBs throughout the state the same way.

22               So with that said, thank you, 

23  Mr. President.

24               ACTING PRESIDENT GRIFFO:   The 

25  Secretary will ring the bell.

                                                               1667

 1               SENATOR ADAMS:   Mr. President,  

 2  point --

 3               ACTING PRESIDENT GRIFFO:   Senator 

 4  Adams, the debate is closed --

 5               SENATOR ADAMS:   Point of personal 

 6  privilege, Mr. President.  Point of -- point 

 7  of --   

 8               ACTING PRESIDENT GRIFFO:   Senator 

 9  Adams, debate is closed.  You may explain your 

10  vote.

11               SENATOR ADAMS:   I'm not -- I'm 

12  not --

13               ACTING PRESIDENT GRIFFO:   You may 

14  explain your vote, Senator Adams.  Please.

15               SENATOR ADAMS:   I'm not going to 

16  debate.  I'm asking a point of personal 

17  privilege.

18               ACTING PRESIDENT GRIFFO:   Senator 

19  Adams -- Senator -- Senator Adams, debate is 

20  closed --

21               SENATOR ADAMS:   My name was 

22  mentioned on the floor.

23               ACTING PRESIDENT GRIFFO:   Senator 

24  Adams -- Senator Libous, why do you rise?

25               SENATOR ADAMS:   My --

                                                               1668

 1               SENATOR BRESLIN:   Mr. President --

 2               ACTING PRESIDENT GRIFFO:   Senator 

 3  Breslin --

 4               SENATOR LIBOUS:   Mr. President, if 

 5  I could ask all members to just take a deep 

 6  breath.  

 7               Debate is closed.  And Senator 

 8  DeFrancisco just closed debate.  We will now take 

 9  this to a vote.

10               ACTING PRESIDENT GRIFFO:   Yes.  

11  Senator Adams, you will have the opportunity to 

12  explain your vote --

13               SENATOR ADAMS:   I'm not looking 

14  for an opportunity to explain my vote --

15               ACTING PRESIDENT GRIFFO:   We will 

16  give you that opportunity.

17               SENATOR ADAMS:   My name was 

18  mentioned on the floor.  I want a point of 

19  personal privilege.

20               ACTING PRESIDENT GRIFFO:   Senator 

21  Adams, you're out of order.  Please.

22               Senator Breslin.

23               SENATOR ADAMS:   I'm not out of 

24  order.

25               ACTING PRESIDENT GRIFFO:   You are, 

                                                               1669

 1  Senator Adams. 

 2               SENATOR BRESLIN:   Point of order.

 3               ACTING PRESIDENT GRIFFO:   Point of 

 4  order for Mr. Breslin.  What is your point of 

 5  order?

 6               SENATOR BRESLIN:   Senator Adams' 

 7  name was specifically mentioned.  And as a 

 8  courtesy, Senator Adams should have an 

 9  opportunity to respond.

10               ACTING PRESIDENT GRIFFO:   Senator 

11  Breslin, I called for any other member to be 

12  heard.  

13               Senator Libous, I called for all 

14  members to be heard.  No one raised their hand, 

15  nobody expressed their point of view.  I then 

16  asked that Senator DeFrancisco close debate.  He 

17  closed debate.  We cannot go back in procedures 

18  now without unanimous consent.

19               So as a result to that, there 

20  appears not to be unanimous consent.  We will 

21  allow Senator Adams to explain his vote and he 

22  will be allowed to speak whatever he wishes to 

23  speak during that explanation.

24               SENATOR BRESLIN:   Mr. President --

25               ACTING PRESIDENT GRIFFO:   The 

                                                               1670

 1  Secretary has rung the bell.  Senator Breslin, 

 2  your point is not well-taken.

 3               SENATOR BRESLIN:  Mr. President, 

 4  the point of personal --

 5               ACTING PRESIDENT GRIFFO:   Senator 

 6  Libous.

 7               SENATOR LIBOUS:   I didn't hear it, 

 8  but did Senator Adams ask for a point of personal 

 9  privilege?  

10               SENATOR ADAMS:   Yes, I did.  Yes.

11               SENATOR LIBOUS:   I believe if he 

12  did ask for a point of personal privilege, he 

13  would be allowed to respond.  I did not hear that 

14  initially.  He can state his point.

15               ACTING PRESIDENT GRIFFO:   Senator 

16  Adams, I did not hear you.  Did you rise to a 

17  point of personal privilege?

18               SENATOR ADAMS:   Yes, I did.  I 

19  said point of personal privilege.

20               ACTING PRESIDENT GRIFFO:   I 

21  apologize, I did not hear that.  

22               But if you rise to a point of 

23  personal privilege, Senator Adams, it must be 

24  specific to your point, not to again to readdress 

25  all of these issues.

                                                               1671

 1               SENATOR ADAMS:   And I understand 

 2  that.  And I am going to respond to my name being 

 3  mentioned on the floor by Senator DeFrancisco.  

 4               And I didn't believe you heard me, 

 5  because you're definitely a gentleman, and 

 6  normally when you hear me, you respond 

 7  accordingly.

 8               ACTING PRESIDENT GRIFFO:   Thank 

 9  you.

10               SENATOR ADAMS:   But I would like 

11  to respond to my name being mentioned on the 

12  floor.  

13               ACTING PRESIDENT GRIFFO:   If we 

14  could just keep this all in perspective today, as 

15  we've talked about today, I would appreciate, you 

16  know, speaking to the point and we would all 

17  engage in calm and deliberative discussions.

18               SENATOR ADAMS:   Well, everyone 

19  knows that I'm a very calm person, you know, so I 

20  understand that.

21               (Laughter.)

22               SENATOR ADAMS:   I just want to 

23  make it clear based on what Senator DeFrancisco 

24  stated, that a different party was in charge or 

25  not in charge.  

                                                               1672

 1               The reality is that we have a 

 2  countless number of New Yorkers, hundreds of 

 3  them, that do not have their healthcare, that do 

 4  not have their insurance, that can't provide for 

 5  their family, based on the action or inaction we 

 6  took while we were here as a whole.  And this 

 7  entire body is responsible for that.  

 8               I thank you for allowing my point 

 9  of personal privilege, Mr. President.

10               ACTING PRESIDENT GRIFFO:   Thank 

11  you, Senator Adams.

12               Debate is now closed.  The 

13  Secretary is ringing the bell. 

14               Read the last section.

15               THE SECRETARY:   Section 3.  This 

16  act shall take effect immediately.

17               ACTING PRESIDENT GRIFFO:   Call the 

18  roll.

19               (The Secretary called the roll.)

20               ACTING PRESIDENT GRIFFO:   Senator 

21  Marcellino to explain his vote.

22               SENATOR MARCELLINO:   Yes, 

23  Mr. President, thank you, to explain my vote.  

24               I want to thank our leadership for 

25  bringing this to the table in the broad daylight 

                                                               1673

 1  so for the second year in a row we will have, if 

 2  not an early, an on-time budget.  It's a good 

 3  thing for the people and it's a good thing for 

 4  the people in my district and for the people of 

 5  the State of New York. 

 6               The bills we are debating are not 

 7  perfect by any means.  They are the result of a 

 8  three-way compromise.  Which means somebody's got 

 9  to give, and somebody's got to get.  Some people 

10  get everything they want, some people get less 

11  than they want, some people get nothing of what 

12  they want.  It happens when you negotiate, when 

13  you try to do a bill and it requires compromise 

14  on all sides.  

15               This bill is certainly not a 

16  perfect bill.  I've been in this chamber for a 

17  number of years; I've yet to see one that has 

18  come across our desks as perfect.  Well, I don't 

19  know who said the quote, but I'll repeat it:  The 

20  perfect should never be the enemy of the good.  

21  And this is a good bill and hopefully will lead 

22  us to a good budget that we can move forward 

23  with.  

24               Any errors, any incompletions, any 

25  things left out can be addressed at a later 

                                                               1674

 1  time.  We have time left in the session.  I would 

 2  have liked to have seen more money in the EPF in 

 3  this bill, the Environmental Protection Fund.  I 

 4  would like to have seen a number of things in 

 5  addition in this budget bill, but they're not 

 6  there.  I look forward to the remainder of the 

 7  session; perhaps we can get them with independent 

 8  bills moving forward.

 9               Again, this is a good bill.  I 

10  thank all those who sat at the table and 

11  participated in the process to make it come to 

12  fruition and to bring us here again in daylight, 

13  in daylight, discussing this bill openly in full 

14  view of the public.  It's an important issue.  

15  Mr. President, I will be voting aye.

16               ACTING PRESIDENT GRIFFO:   Senator 

17  Marcellino to be recorded in the affirmative.

18               Senator Kennedy to explain his 

19  vote.

20               SENATOR KENNEDY:   Thank you, 

21  Mr. President.

22               First of all, I want to thank the 

23  Governor for driving this budget process forward 

24  in the best interests of the people of 

25  Western New York and New York State.

                                                               1675

 1               This budget bill helps drive the 

 2  trajectory of New York's economic future.  We've 

 3  long said that for our state's economy to be 

 4  strong, we need to dedicate ourselves to growing 

 5  the economies of every region of this state, 

 6  especially Western New York, which has suffered 

 7  from years of neglect from Albany.  

 8               I'm pleased to see this year's 

 9  budget puts a specific focus on sparking economic 

10  growth in Western New York.  Obviously the 

11  brightest highlight is the state's $1 billion 

12  commitment to Buffalo.  But this budget bill also 

13  contains language to establish the Western 

14  New York Power Proceeds Allocation Board.  

15               When New York harnessed the power 

16  of Niagara Falls many years ago, we put ourselves 

17  on the map for low-cost clean energy 

18  development.  We've taken steps to ensure this 

19  low-cost power helps us create jobs.  

20               The allocation board will ensure 

21  that Western New York sees the full benefit of 

22  the expansion of replacement power from the 

23  Niagara Power Project.  Revenue raised by selling 

24  excess power will be channeled into an economic 

25  development fund.  The allocation board will 

                                                               1676

 1  recommend where funds are distributed to ensure 

 2  investments made become jobs created.

 3               The Niagara Power Project is one of 

 4  the unique economic assets we enjoy in 

 5  Western New York.  The Power Proceeds Allocation 

 6  Board will ensure that low-cost energy helps 

 7  create good-paying jobs for hardworking 

 8  Western New Yorkers.  

 9               The New York Works program is a 

10  another important initiative in this budget.  

11  With our roads and bridges aging, we're making a 

12  significant commitment to New York's 

13  infrastructure.  The future economic viability of 

14  our state and the safety of our roads and bridges 

15  depends upon it.  Funding infrastructure projects 

16  creates jobs and results in substantial economic 

17  spinoff benefits.  

18               This budget bill establishes the 

19  New York Works Task Force, which will coordinate 

20  investments in capital projects and help create 

21  thousands of jobs.  These streamlined and 

22  coordinated investments in our economy and 

23  transportation infrastructure will lead to a 

24  stronger, more prosperous Western New York and 

25  New York State.

                                                               1677

 1               Again, I want to thank 

 2  Governor Cuomo for putting such a strong focus on 

 3  such an important need in Western New York and 

 4  across the state.  Mr. President, I 

 5  enthusiastically vote aye.

 6               ACTING PRESIDENT GRIFFO:   Senator 

 7  Kennedy to be recorded in the affirmative.

 8               Senator Maziarz to explain his 

 9  vote.

10               SENATOR MAZIARZ:   Thank you very 

11  much, Mr. President.  I just want to express my 

12  support for this particular piece of legislation, 

13  this budget bill.  

14               In 2010, this Legislature took the 

15  action that's necessary for Western New York to 

16  benefit from the power that's produced at 

17  Niagara.  And contained within this budget bill 

18  is the establishment of a mechanism to utilize 

19  that money for economic development and job 

20  creation within Western New York.

21               I look forward to finally, after so 

22  many years, seeing that great asset that we have 

23  at the Niagara Power Project, the revenues from 

24  that great asset to be used to create sorely 

25  needed jobs in all of Western New York and 

                                                               1678

 1  particularly in Niagara County, where the project 

 2  is located.  

 3               Thank you very much, 

 4  Mr. President.  I will vote in the affirmative.

 5               ACTING PRESIDENT GRIFFO:   Senator 

 6  Maziarz to be recorded in the affirmative.

 7               Senator Stavisky to explain her 

 8  vote.

 9               SENATOR STAVISKY:   Thank you.

10               Let me focus on one particular 

11  aspect that Senator Adams referred to earlier 

12  during the debate, and that is the plight of the 

13  OTB workers.  A number of them live in my 

14  district.  

15               And when we go home tonight, we'll 

16  have our pensions, we'll have our health 

17  coverage.  They will not.  They are faced with 

18  the lack of health coverage, they're out of work, 

19  and unfortunately they have been neglected.  And 

20  I certainly hope in the future that we do 

21  something, we remember the people who have put 

22  all of their lives into working and they should 

23  not be penalized.  

24               Thank you, Mr. President.  I vote 

25  aye.

                                                               1679

 1               ACTING PRESIDENT GRIFFO:   Senator 

 2  Stavisky to be recorded in the affirmative.

 3               Senator Little to explain her vote.

 4               SENATOR LITTLE:   Thank you, 

 5  Mr. President.  

 6               I rise in support of this piece of 

 7  legislation and the budget.  Under the leadership 

 8  of the Governor and with my colleagues in both 

 9  houses of the Legislature, I believe we put forth 

10  a budget bill that has a recurring theme of 

11  retaining and creating jobs, making sure that 

12  New York State is in fact open for business.

13               I'm especially pleased and pleased 

14  for my North Country region, with the approval of 

15  the MTA capital plan going forward, in that just 

16  this morning the MTA committee awarded a bid of 

17  $600 million to Bombardier Company, in my 

18  district, which will make 300 subway cars for 

19  New York City, a combination of downstate and 

20  upstate that certainly -- for those of you 

21  downstate, you are getting subway cars made by 

22  quality workers at a very quality plant.  And 

23  certainly this is going to help in economic 

24  development in the Plattsburgh and the entire 

25  North Country area.

                                                               1680

 1               So I vote aye on this budget bill.

 2               ACTING PRESIDENT GRIFFO:   Senator 

 3  Little to be recorded in the affirmative.

 4               Senator Squadron to explain his 

 5  vote.

 6               SENATOR SQUADRON:   Thank you, 

 7  Mr. President, to explain my vote.  

 8               I thank Senator Krueger for raising 

 9  issues of transparency and bipartisanship, and I 

10  was pleased to hear the chair of Finance on the 

11  other side say there would be transparency and 

12  bipartisanship as some of these capital funds are 

13  further defined and expanded.  I look forward to 

14  that process on some of the issues that Senator 

15  Adams raised as well.  

16               There is a lot good in this bill.  

17  It's disappointing that again, wherever folks are 

18  on the issue of hydrofracking, it was chosen not 

19  to get more information on the public health 

20  effects, the basic safety effects of 

21  hydrofracking.  It was unfortunate that my 

22  colleagues voted to exclude that from this bill.  

23  It is a shame, and it's disappointing.  It would 

24  be good for the people of the State of New York, 

25  wherever you are on that issue, to just know the 

                                                               1681

 1  health effects.  

 2               In any case, there's enough good in 

 3  this bill to certainly vote yes.  I vote in the 

 4  affirmative, Mr. President.

 5               ACTING PRESIDENT GRIFFO:   Senator 

 6  Squadron to be recorded in the affirmative.

 7               Senator Grisanti to explain his 

 8  vote.

 9               SENATOR GRISANTI:   Thank you, 

10  Mr. President.  

11               I vote yes on this particular piece 

12  of legislation, this bill.  Although I too would 

13  have liked to have seen additional funding for 

14  the EPF, unfortunately the mechanism was not 

15  there with regards to this year, but it's 

16  something that we will not give up on to make 

17  sure that the funding is there.  

18               I am pleased that the Governor, 

19  through the Senate and Assembly, kept the amount 

20  at $134 million, because every county in this 

21  state benefits from the EPF and it's an important 

22  source of revenue, and we must keep that in 

23  place.

24               I will also add that in other 

25  states where high-volume hydrofracking is 

                                                               1682

 1  occurring, there are health impact studies that I 

 2  believe the DOH, through the advisory council, is 

 3  going to be taking a look at.  It's very 

 4  difficult to do a health study on high-volume 

 5  hydrofracking in New York State when it's not 

 6  occurring yet.

 7               Now, this bill as it stands right 

 8  now just drives the appropriations that are going 

 9  to be taking place in the next couple of days.  

10  This bill drives the economic issues that are 

11  particular to Western New York such as the 

12  Power Proceeds bill, NFTA funding, the Regional 

13  Council, and the start of the billion dollars for 

14  Buffalo.  

15               There are many other benefits for 

16  Western New York that are going to be coming out 

17  today and within the next couple of days.  That 

18  we're fortunate, for the Western New York 

19  delegation, that Western New York is no longer 

20  going to be forgotten in Albany and -- at least 

21  while I'm here, it's not going to be forgotten.  

22               So I vote yes, Mr. President, and I 

23  thank you for the time.

24               ACTING PRESIDENT GRIFFO:   Senator 

25  Grisanti to be recorded in the affirmative.

                                                               1683

 1               Senator Fuschillo to explain his 

 2  vote.

 3               SENATOR FUSCHILLO:   Thank you very 

 4  much, Mr. President.

 5               When we opened the legislative 

 6  session this year, our Majority Leader Dean 

 7  Skelos said let's keep the focus on creating 

 8  jobs, not raising taxes, and cutting spending.  

 9  While we were negotiating the Transportation 

10  budget, we achieved that goal.  

11               And what's critically important 

12  about this Transportation budget is it sets that 

13  path that Senator Skelos had set, our Majority 

14  Leader, back in January, of creating jobs.  The 

15  MTA capital budget, it's estimated to create over 

16  350,000 jobs and pump more than $44 billion back 

17  into this economy.  That's just the MTA budget.  

18               The Department of Transportation 

19  budget will set this state back on the right 

20  course of economic recovery because it will 

21  create tens of thousands of jobs.  

22               And if we're going to stabilize our 

23  economy and renew our economy, we have to have a 

24  strong infrastructure.  This budget creates 

25  that.  

                                                               1684

 1               I want to thank my leader and the 

 2  partnership he formed with Governor Cuomo.  I 

 3  urge everybody to vote yes on this.  

 4               Thank you very much, Mr. President.

 5               ACTING PRESIDENT GRIFFO:   Senator 

 6  Fuschillo to be recorded in the affirmative.

 7               Senator Larkin to explain his vote.

 8               SENATOR LARKIN:   Thank you, 

 9  Mr. President.

10               You know, there's been a lot of 

11  talk around here in the last couple of weeks 

12  about the budget and what it would do and what it 

13  wouldn't do.  The budget that we have in front of 

14  us today, with this highway, an architect of the 

15  hard work was our colleague Chuck Fuschillo.  

16               But dealing with this, Chuck, the 

17  leadership, Senator Skelos, our Finance people, 

18  and all of those associated with it made sure of 

19  one thing:  This was about driving money to 

20  create jobs.  And as the chairman of the 

21  Transportation Committee just said, this is 

22  exactly what we're doing.  

23               You know, people can find fault 

24  with this bill, that it's not there.  Senator 

25  Marcellino just said he never met anything 

                                                               1685

 1  perfect -- till he met me.

 2               (Laughter.)

 3               SENATOR LARKIN:   So just think 

 4  about it.  We're dealing with a budget that 

 5  people can see.  People who say they don't 

 6  understand it, they didn't have time, well, maybe 

 7  you should have stayed in your office a little 

 8  more, looked at the bill and made sure you 

 9  understood what was happening.

10               This is a good bill.  It's going to 

11  provide jobs.  If you look at the transportation 

12  issue of it, you'll find out how much is being 

13  done in your respective communities.  Remember, 

14  you had an opportunity, we all did.  This bill is 

15  something that's going to be important to 

16  every one of our municipalities.  And I thank 

17  everybody for their input.

18               ACTING PRESIDENT GRIFFO:   Senator 

19  Larkin to be recorded in the affirmative.

20               Senator Parker to explain his vote.

21               SENATOR PARKER:   Thank you, 

22  Mr. President, to explain my vote.

23               You know, once again, my 

24  compliments to the staff and my colleagues who 

25  have been working hard on this budget.  And 

                                                               1686

 1  particularly as it relates to transportation and 

 2  economic development, there's just a lot of 

 3  things that are going on.  

 4               There's a couple of things that I 

 5  think that we could have done a little bit better 

 6  in this budget.  Certainly delays in retrofitting 

 7  the state vehicles to ultra low-sulfur diesel and 

 8  best available technology until December 2015 I 

 9  think is not the right way to go.  I think that 

10  we are delaying things that are really important 

11  for this state, for the health and the welfare of 

12  the people of this state.  

13               Reduction of sulfur content in 

14  heating fuel will greatly reduce the emissions 

15  into the atmosphere of sulfur dioxide, which 

16  shows up as particulate matter in the air, 

17  causing regional haze and contributing to the 

18  formation of acid rain.  

19               And particularly African-American 

20  and Latino communities are disproportionately 

21  impacted by this.  New York City is also known 

22  oftentimes as Asthma City, particularly in the 

23  African-American and Latino communities, which 

24  are three or four times more likely to require 

25  hospitalization for asthma than whites.  

                                                               1687

 1               And the second thing was a 

 2  hydrofracking study.  And we really should have 

 3  included a hydrofracking study in this year's 

 4  budget.  SUNY could have done the study.  There 

 5  was no reason not to do it.  I don't know why.  

 6  As we rush into a policy of hydrofracking in this 

 7  state, we certainly could have included a study 

 8  in the budget.  What are we afraid of?  More 

 9  information is better than less information and 

10  it's certainly a failure, I think, of this bill.  

11               But despite its shortcomings, I am 

12  going to vote aye on this bill.

13               ACTING PRESIDENT GRIFFO:   Senator 

14  Parker to be recorded in the affirmative.

15               Announce the results.

16               THE SECRETARY:   In relation to 

17  Calendar Number 472, those recorded in the 

18  negative are Senators Diaz and Duane.

19               Ayes, 58.  Nays, 2.

20               ACTING PRESIDENT GRIFFO:   The bill 

21  is passed.

22               The Secretary will read.

23               THE SECRETARY:   In relation to 

24  Calendar Number 473, Senator DeFrancisco moves to 

25  discharge, from the Committee on Finance, 

                                                               1688

 1  Assembly Bill Number 9060C and substitute it for 

 2  the identical Senate Bill Number 6260C, Third 

 3  Reading Calendar 473.

 4               ACTING PRESIDENT GRIFFO:    

 5  Substitution is so ordered.

 6               The Secretary will read.

 7               THE SECRETARY:   Calendar Number 

 8  473, Assembly Budget Bill, Assembly Print Number 

 9  9060C, an act to amend the Racing, Pari-Mutuel 

10  Wagering and Breeding Law.

11               ACTING PRESIDENT GRIFFO:   Senator 

12  Krueger.

13               SENATOR KRUEGER:   Thank you.  I 

14  have a few questions for the sponsor.

15               ACTING PRESIDENT GRIFFO:   Senator 

16  DeFrancisco, will you yield?  

17               SENATOR DeFRANCISCO:   Yes, I will. 

18               ACTING PRESIDENT GRIFFO:   The 

19  Senator will yield.

20               SENATOR KRUEGER:   Thank you.

21               So I agree that most of this bill 

22  involves racing, wagering, pari-mutuel, 

23  et cetera.  But there's a section of this bill 

24  which eliminates and consolidates boards, 

25  commissions, and task forces with a fairly 

                                                               1689

 1  extensive list.  

 2               What's the estimated cost saving 

 3  from these consolidations and eliminations?  

 4               SENATOR DeFRANCISCO:   Not much.  

 5  The purpose is to put like organizations together 

 6  with like organizations so that the government 

 7  will operate more efficiently.  And all of the 

 8  savings combined of each of these changes is 

 9  approximately only about a million dollars.

10               SENATOR KRUEGER:   Thank you.

11               Thank you, Mr. President.  If 

12  through you the sponsor would continue to yield.

13               ACTING PRESIDENT GRIFFO:   The 

14  sponsor yields.

15               SENATOR KRUEGER:   Thank you.

16               So most of this bill involves the 

17  mergers of the Racing and Wagering Board with the 

18  Lottery, and I guess the creation of a new 

19  commission, with the possibility that it might 

20  soon be dealing with other types of gambling but 

21  certainly with the VLTs, the lottery, and the 

22  racetracks.

23               So we're creating a new commission 

24  with seven members.  How did we pick seven 

25  members for this commission with a lot of 

                                                               1690

 1  responsibilities?

 2               SENATOR DeFRANCISCO:   I'm not sure 

 3  exactly why seven was the number.  Obviously, 

 4  it's better to have an odd number so you don't 

 5  have gridlock in certain instances.  So I think 

 6  that's the odd number.  

 7               But the numbers are as follows.  

 8  The Governor will appoint five, the Senate one, 

 9  the Assembly one.  But the executive director 

10  that they select -- that is picked by the 

11  Governor, actually, it's got to be confirmed by 

12  the Senate.  

13               But the number, I'm not sure why it 

14  happened to be seven.  It was a matter of 

15  negotiation.

16               SENATOR KRUEGER:   Through you, 

17  Mr. President, if the sponsor would continue to 

18  yield.

19               SENATOR DeFRANCISCO:   Yes.

20               ACTING PRESIDENT GRIFFO:   The 

21  sponsor yields.

22               SENATOR KRUEGER:   So I'm correct 

23  in understanding there is no minority 

24  representation on this commission from either 

25  house of the Legislature?  

                                                               1691

 1               SENATOR DeFRANCISCO:   You are 

 2  correct.  There's only one majority member from 

 3  each house, and five from the Governor.

 4               SENATOR KRUEGER:   Mr. President, 

 5  if through you the sponsor would continue to 

 6  yield.

 7               ACTING PRESIDENT GRIFFO:   The 

 8  sponsor yields.

 9               SENATOR DeFRANCISCO:   Yes.

10               SENATOR KRUEGER:   And the sponsor 

11  actually almost read my mind in answering a 

12  previous question where he pointed out that the 

13  Governor has five of the seven members and that 

14  he determines who the director of the commission 

15  is.  And he also, as I read the bill, has the 

16  right to remove a member at any time for any 

17  reason.

18               Is there any reason for this house 

19  to be concerned that there's not really enough 

20  independence in this commission, with the 

21  Executive having five of seven appointments, the 

22  head appointment, and the ability to remove any 

23  member at any time for any reason?

24               SENATOR DeFRANCISCO:   First of 

25  all, he cannot remove any member at any time for 

                                                               1692

 1  any reason.  He can only remove the chair.  

 2               Secondly, the seven-member board is 

 3  appointed by those individuals -- those -- in 

 4  that breakdown, five, Governor; Senate, one; 

 5  Assembly, one.  But these members are also 

 6  subject to the advice and the consent of the 

 7  Senate.  So the Senate will have some role in at 

 8  least overseeing who all of the picks are, and 

 9  they would have to agree to them by the same 

10  process as we approve heads of departments.

11               So is there any concern?  I would 

12  have loved to have five members appointed by the 

13  Republican majority, one by the Governor and a 

14  half of one by Sheldon Silver.

15               (Laughter.)

16               SENATOR DeFRANCISCO:   But 

17  unfortunately, we just don't have that luxury 

18  when you're in negotiations, and this is the way 

19  it turned out.

20               SENATOR KRUEGER:   Through you, 

21  Mr. President, I'm not sure we should do a point 

22  of personal privilege on behalf of Sheldon 

23  Silver, since he's not a member of this house.

24               (Laughter.)

25               SENATOR KRUEGER:   But I'll just 

                                                               1693

 1  raise that point.

 2               I actually do believe, 

 3  Mr. President, on the bill, that the bill says 

 4  the Governor can remove any member, but does lay 

 5  out -- on page 6, line 29, Section 7.  I agree 

 6  with my colleague that there actually needs to be 

 7  a reason.  But I believe he can remove any 

 8  member, just for the record.

 9               Following up with an additional 

10  question, through you, Mr. President.

11               SENATOR DeFRANCISCO:   Yes.

12               ACTING PRESIDENT GRIFFO:   The 

13  sponsor yields.

14               SENATOR KRUEGER:   Thank you.

15               I have tried to look at a number of 

16  other gaming commissions and how they're 

17  structured around the country, and I find myself 

18  concerned that the fifth subdivision of what was 

19  the original proposal for this commission had 

20  been removed in the final proposal, and that was 

21  the responsibilities of enforcement.

22               So I am confused how -- or I am 

23  confused, and I hope there is an explanation 

24  somewhere else in this bill on how we anticipate 

25  policing our casinos, our tracks, and our lottery 

                                                               1694

 1  when we do away with certain functioning 

 2  agencies, we create a commission to replace their 

 3  functions, but we have no enforcement structure 

 4  within the commission.

 5               So am I misreading some other 

 6  section of the bill where we get to that?

 7               ACTING PRESIDENT GRIFFO:   Senator 

 8  DeFrancisco.

 9               SENATOR DeFRANCISCO:   I don't 

10  think you need members of a commission to be part 

11  of law enforcement as long as the commission 

12  members are in a position to be able to have the 

13  authority to investigate and appoint people -- it 

14  could be the State Police, it could be another 

15  investigative agency -- to do the 

16  investigations.  

17               So there's many boards that don't 

18  have their own investigative arm that's the 

19  State Police or some other agency, but they 

20  certainly can appoint them or retain them, 

21  depending upon the situation.

22               And let me apologize as far as one 

23  of the answers I gave you earlier.  The Governor 

24  can remove, without any reason whatsoever, the 

25  chairman.  He can in fact, and you're correct, 

                                                               1695

 1  remove other members, but there's a standard:  

 2  for inefficiency, neglect of duty, or misconduct 

 3  in office.  And there's due process provisions in 

 4  the bill as well.

 5               And I apologize for not being 

 6  complete with that answer.

 7               SENATOR KRUEGER:   Thank you, 

 8  Mr. President.  I appreciate that both my 

 9  colleague and I were misreading a section of the 

10  same section of this bill in one way or the 

11  other.

12               Going back to my concern about not 

13  having an enforcement function within this 

14  commission, again, it's not the question of 

15  expecting any of the seven members to go out and 

16  do investigations, but currently under state law 

17  with Racing and Wagering we actually have a 

18  commission that does follow-up and investigations 

19  and has a police-like function.  

20               And certainly I'm aware that 

21  unfortunately sometimes gambling and criminal 

22  activity go hand in hand.  And so I'm very 

23  concerned if we were actually creating a new 

24  model for overseeing what potentially will be a 

25  larger and larger universe of gambling activities 

                                                               1696

 1  in the State of New York but we have not 

 2  established in law any specific enforcement 

 3  authority by any entity over these types of 

 4  gambling.

 5               So again, if the sponsor can help 

 6  me, is there something in another portion of the 

 7  budget bills that actually establishes we are 

 8  transferring current policing and the enforcement 

 9  authority to someone -- to the State Police, to 

10  the Attorney General, to whom?  Because my 

11  concern is this makes it look like we won't have 

12  anybody with that responsibility.  

13               SENATOR DeFRANCISCO:   No, there's 

14  nothing specifically listed in the bill calling 

15  for a referral to any specific agency.  

16               But under the powers clause of the 

17  provision it indicates that it has the power -- 

18  this is Section 6 of the powers of the 

19  commission -- to conduct investigations and 

20  hearings pertaining to violations of this 

21  chapter, et cetera, et cetera.  And the concept 

22  is that I would assume, like in any other 

23  organization, if an investigation discloses some 

24  wrongful activities, that there are law 

25  enforcement agencies that are available to follow 

                                                               1697

 1  up on the results of those investigations.

 2               SENATOR KRUEGER:   Mr. President, 

 3  if through you the sponsor would continue to 

 4  yield.

 5               ACTING PRESIDENT GRIFFO:   The 

 6  sponsor yields.

 7               SENATOR KRUEGER:   Thank you.

 8               I agree we have found that section 

 9  that he is referencing in the law.  For the 

10  record, I think we make a misstep in the State of 

11  New York if we don't have not only explicit 

12  enforcement investigation and policing functions 

13  within the entity we are giving authority to 

14  regulate and have oversight over all types of 

15  gambling in the State of New York -- I think that 

16  we will be sorry that this did not make it into 

17  the language creating the commission, and I think 

18  we will find ourselves needing to amend this 

19  quickly.

20               When you look at the functions of 

21  commissions in other states with larger gambling 

22  activities in their states, you actually find 

23  that there's a very important role for both 

24  enforcement and for penalties.  And that leads me 

25  to an additional question.

                                                               1698

 1               Currently there's a $50,000 maximum 

 2  administrative fine for violations of our 

 3  gambling laws within Lottery and within Racing 

 4  and Wagering.  Is there a change in the fine 

 5  maximum to be applied to any activities under 

 6  this commission we're creating?  And one -- I 

 7  guess two questions at once.  One, is there a 

 8  new -- excuse me, Mr. President.  

 9               Do we continue to have fining 

10  authority within the commission?  And do we raise 

11  the maximum beyond the $50,000 level?

12               SENATOR DeFRANCISCO:   There is 

13  fining authority, and the amount was not raised 

14  from the $50,000.  

15               And as to the prior question, in 

16  paragraph 12 of the powers clause there's 

17  specific language that refers to the power of the 

18  agency, of this group, to refer to law 

19  enforcement agencies of competent jurisdiction.  

20  So they do have that authority as well.

21               But under Section 16 of the bill it 

22  says "Any entity or person who violates this 

23  chapter or the provisions of the license shall be 

24  liable to a civil penalty of not more than 

25  $25,000 for each violation and an additional 

                                                               1699

 1  civil penalty of not more than $25,000 for each 

 2  day during which this violation continues.  Any 

 3  civil penalty may be assessed by the commission 

 4  following a hearing, with opportunity to be 

 5  heard."

 6               SENATOR KRUEGER:   Thank you.  

 7               Through you, Mr. President, if the 

 8  sponsor would continue to yield.

 9               ACTING PRESIDENT GRIFFO:   The 

10  sponsor yields.

11               SENATOR DeFRANCISCO:   Yes.

12               SENATOR KRUEGER:   Thank you.  

13               Yes, I also saw the section in the 

14  law that allows referral to other police 

15  entities.  

16               Now, have there been any issues 

17  with the VLTs, I suppose our newest form of 

18  gambling here in New York State, as far as have 

19  there been any documented problems with VLT 

20  vendors as far as security is concerned, perhaps 

21  not being calibrated correctly, not giving the 

22  correct amount of payout, being able to be, for 

23  lack of better terminology, hacked, since they 

24  are computer-type machines?  

25               SENATOR DeFRANCISCO:   I don't know 

                                                               1700

 1  of any.  And I don't know if there's any current 

 2  investigations going on.

 3               SENATOR KRUEGER:   Through you, 

 4  Mr. President, if the sponsor would continue to 

 5  yield.

 6               ACTING PRESIDENT GRIFFO:   The 

 7  sponsor yields.

 8               SENATOR KRUEGER:   And in fairness, 

 9  I wasn't sure.  I thought that the sponsor could 

10  answer that.

11               My concern is some of this is 

12  very -- if you were going to breach a VLT 

13  computer-driven machine, if you were going to try 

14  to cheat on the payout or the formula or even the 

15  payments owed to the state from taxes from the 

16  VLT players, it seems to me you would need very 

17  specific and even technical knowledge of what 

18  what's going on, how these systems work or are 

19  supposed to work.  That your typical county DA or 

20  even a local police force wouldn't have any 

21  reason to be prepared to handle it if this type 

22  of case was referred to them.

23               So I simply go back in making my 

24  point that I think we are missing a really very 

25  important part of what should be included in a 

                                                               1701

 1  commission overseeing various kinds of gambling 

 2  in the State of New York.

 3               If the sponsor would please yield 

 4  to an additional question.

 5               SENATOR DeFRANCISCO:   Yes.

 6               ACTING PRESIDENT GRIFFO:   The 

 7  sponsor yields.

 8               SENATOR KRUEGER:   Thank you.  

 9               I don't know a lot about gambling.  

10  I don't know a lot about racing.  But I have been 

11  reading that New York State has a 

12  disproportionately high rate of our racehorses 

13  dying on the tracks or while under the confines 

14  of the -- under the Racing & Wagering Board.

15               Is there anything in this bill that 

16  will help to ensure that under the newly created 

17  entity we are doing a better job of investigating 

18  and preventing racehorses from dying at a 

19  statistically much higher rate than, my 

20  understanding is, any other state in the country 

21  that has racetracks?

22               SENATOR DeFRANCISCO:   Nothing has 

23  changed in the law, based upon this bill, from 

24  current law.

25               But as to your last questions 

                                                               1702

 1  concerning VLTs, the people that are in control 

 2  of the video lottery terminals is the State 

 3  Lottery, Division of State Lottery.  The owners 

 4  have the -- or the locations are locations where 

 5  these machines are operated, but the State 

 6  Lottery Division is the one who actually takes 

 7  care of the machines and makes sure that the 

 8  machines have the payout that's been authorized.

 9               And so it's not -- I don't think 

10  there's been any indication that any locations 

11  have somehow tried to change the odds on any 

12  machines.  But it's the Lottery Division's 

13  authority and responsibility to maintain those 

14  machines.

15               SENATOR KRUEGER:   Through you, 

16  Mr. President, I think I'll speak on the bill.

17               ACTING PRESIDENT GRIFFO:   Senator 

18  Krueger on the bill.

19               SENATOR KRUEGER:   Thank you.  

20               So my key concern with this 

21  legislation is that we are taking multiple 

22  entities and creating a new entity.  We are, in 

23  my opinion, not having enough independence as far 

24  as the appointments to the commission and the 

25  ability of the commission to function 

                                                               1703

 1  independently, in fact, of the Executive if they 

 2  find themselves in disagreement, and that we take 

 3  away the enforcement authority that we should, in 

 4  my opinion, be expanding, not doing away with.

 5               Senator DeFrancisco's final answer 

 6  to a question reinforces this to me.  Currently 

 7  the Division of the Lottery oversees the VLTs.  

 8  With the passage of this bill, they don't exist.  

 9  Rather, their functioning and responsibilities 

10  flow through this new commission.  

11               They currently have police and 

12  investigative authority.  Through this bill, with 

13  the creation of this commission, there would be 

14  no investigative or enforcement authority within 

15  the staffs appointed there, so we would actually 

16  be losing a protection we've had.

17               So the Senator may be correct when 

18  he says the Lottery Division has been overseeing, 

19  and he doesn't know of any problems.  And in fact 

20  I don't know of any problems.  I guess my real 

21  concern is if we create this commission and we 

22  don't give it the authority to investigate and 

23  enforce and have some specific police powers, 

24  then in fact things can go wrong and that we 

25  won't know about them because we're simply saying 

                                                               1704

 1  some other division of police or district 

 2  attorney or whomever could pick up on those 

 3  functions, when they're not experts in the 

 4  various types of gambling and the problems that 

 5  can take place in gambling, and move forward.

 6               I believe that the desire to merge 

 7  certain functions into a centralized commission 

 8  grow out of the desire by some in this government 

 9  to significantly expand gambling options in the 

10  State of New York.  There was recently a vote on 

11  creation of a constitutional -- excuse me, 

12  passage of a constitutional amendment, step one, 

13  and the passage of a constitutional amendment 

14  that would require detailed statutory proposals 

15  accepted or denied by these two houses but have 

16  yet to be put into writing.

17               I have to assume that this new 

18  commission would have a great deal of 

19  responsibility for oversight of these new forms 

20  of gambling that could be created if the 

21  constitutional amendment was passed and might, in 

22  fact, function to develop the recommendations for 

23  the statute that would allow various types of 

24  expanded casino and other gambling.

25               So these are hard questions for a 

                                                               1705

 1  lot of us.  These are complicated questions 

 2  regarding the business models of different types 

 3  of gambling -- who would be allowed to run these 

 4  entities, where they would be located.  Even 

 5  something that might seem simple to people -- 

 6  what's the definition of a casino, and therefore 

 7  what you could do there -- we haven't dealt with 

 8  any of that.

 9               And I think that perhaps at the end 

10  of the process having a specific entity in the 

11  State of New York -- as opposed to multiple 

12  entities -- to deal with those issues might be 

13  the right answer, but I believe that passing a 

14  merger and a change in the structure of the 

15  Lottery and Racing and Wagering Board today at 

16  this point in time, with all those other 

17  unanswered questions before us and the people of 

18  New York, would be to put the cart before the 

19  horse.

20               And so I don't think that this 

21  government ought to change the operation and 

22  structure we have now.  We should be dealing with 

23  a much broader set of statutory changes -- 

24  perhaps within multiple bills, perhaps within one 

25  bill -- that really get at what we envision 

                                                               1706

 1  gaming, racing, lottery, VLT, online gambling, 

 2  sports gambling, the whole arena of what the 

 3  state thinks it ought to be allowing and the 

 4  mechanism by which this state would authorize and 

 5  approve and oversee and, yes, very heavily 

 6  enforce and regulate if we were to go forward.

 7               And this bill basically leaves me 

 8  with far more questions than answers.  And so in 

 9  fact I don't think it's a good move for the State 

10  of New York to do this merger in a vacuum.  I 

11  don't think it's a good idea to simply say seven 

12  people on a commission potentially will be the 

13  decision-makers on all these other questions.  

14  And I think we need to have a broader public 

15  dialogue about moving forward, in what ways, how 

16  and when, in various types of gambling.

17               And so some of my concerns are not 

18  what's in this bill, they're in fact what's not 

19  in this bill and what we have yet to have decided 

20  to do or not do in this state.  

21               So I'll be voting no, 

22  Mr. President.  Thank you.

23               ACTING PRESIDENT GRIFFO:   Is there 

24  any other Senator wishing to be heard?  

25               Senator Espaillat.

                                                               1707

 1               SENATOR ESPAILLAT:   Thank you, 

 2  Mr. President.

 3               While this bill proposes to bring 

 4  some savings in the state budget by the merger or 

 5  consolidation of several defunct or dysfunctional 

 6  state agencies or authorities or other entities, 

 7  it also includes a very troubling practice.  And 

 8  while I don't profess to be an ideologue, an 

 9  all-for-nothing member of this Senate, I do 

10  believe very strongly that we as a state will not 

11  be able to gamble ourselves out of this economic 

12  crisis.  

13               That in fact it is fundamentally 

14  difficult and a problem to address our economic 

15  problems by trying to impose an array of gambling 

16  measures that amounts to nothing short but a 

17  regressive tax on working-class people.

18               All studies have shown that 

19  gambling disproportionately hurts working-class 

20  people, that gambling has a definite 

21  disproportional hurt on senior citizens, for 

22  example, who often gamble their rent money away 

23  or their prescription drug money away.  Or single 

24  moms, who may be living check to check or on a 

25  fixed income, they will gamble their monies for 

                                                               1708

 1  food, Pampers and other basic necessities. 

 2               This is truly a regressive tax that 

 3  sort of intends to suck in those folks that want 

 4  to be rich but want to become rich by gambling 

 5  the few dollars that they have in their pockets.  

 6               So I believe fundamentally that 

 7  this state, which proposed a no-tax budget this 

 8  year, a so-called no-tax budget -- but in fact we 

 9  all know that last December we passed a very 

10  progressive tax reform, including the extension 

11  of the millionaire's tax.  So in essence we are 

12  taking with -- I'm proud to say that we are 

13  bringing over this year the revenues that we will 

14  be capturing from what we did last year on a 

15  special session.

16               But this gambling effort will 

17  certainly not get us out of this jam.  Gambling 

18  is an addiction, very much so in the same fashion 

19  that alcohol, tobacco, and drugs is an 

20  addiction.  And to try to balance the budget and 

21  to try to do the budget early again and inject in 

22  the budget a series of gambling measures I think 

23  is not only a definite negative for the state, 

24  but I think it leads us to a road of bad results 

25  in the long-term.

                                                               1709

 1               So, Mr. President, I am deeply 

 2  troubled that we are heralding this budget to be 

 3  a very sane and sound budget, that it is a budget 

 4  with no taxes where we so-called limit expenses, 

 5  but that in it we have a very troubling, very 

 6  troubling initiative, which is to engage a good 

 7  number of New Yorkers, particularly those that 

 8  need the most, into an addictive practice of 

 9  gambling that will erode their pockets and lead 

10  them into further poverty and further despair.  

11               I will be voting in the negative on 

12  this bill, Mr. President.

13               ACTING PRESIDENT GRIFFO:   Senator 

14  Hassell-Thompson.

15               SENATOR HASSELL-THOMPSON:   Thank 

16  you, Mr. President.  Just on the bill.

17               ACTING PRESIDENT GRIFFO:   Senator 

18  Hassell-Thompson on the bill.

19               SENATOR HASSELL-THOMPSON:   I would 

20  like to be assured, Mr. President, that as we go 

21  forward and develop the language for the site 

22  under which these casinos will be built, and all 

23  the specifications, that we do not forget that 

24  there is in this state an MWBE bill that should 

25  in fact be severely addressed as we look not only 

                                                               1710

 1  at the construction but also at the procurement 

 2  and labor relationships.

 3               I know that people are going to 

 4  stand on the floor and be very careful that they 

 5  defend the Wicks Law and everything else that 

 6  they want to put in, but I need to continue to 

 7  hope that we will be assured that the MWBE bills 

 8  that we have passed in this Senate will be abided 

 9  by and will be very much a part of the front end 

10  of any decisions that we made about casino 

11  development in the State of New York.

12               Thank you, Mr. President.

13               ACTING PRESIDENT GRIFFO:   Is there 

14  any other Senator wishing to be heard?

15               Senator Diaz.

16               SENATOR DIAZ:   Thank you, 

17  Mr. President.  

18               I just want to congratulate my 

19  Congre -- my colleague, almost Congressman, but 

20  now almost Reverend Espaillat for his wonderful 

21  explanation of the disastrous bill that you are 

22  about to approve.

23               Espaillat, me as a Reverend, I 

24  cannot do it better than you.  You said it right, 

25  you said it correctly.  

                                                               1711

 1               And I would like to repeat some 

 2  words that Senator Marcellino said before.  

 3  Somebody has to give and somebody has to take.  

 4  That's what -- those were words expressed by 

 5  Senator Marcellino before.  Somebody has to give, 

 6  somebody has to take.

 7               And throughout the week, again, 

 8  we're going to hear praise for the Governor.  

 9  Some people have said "I support the bill 

10  enthusiastically, and I'm praising the Governor."  

11               But, ladies and gentlemen, again I 

12  have to say that what we are doing senior 

13  citizens, for you to go back to your districts 

14  and explain to our senior citizens that last year 

15  you cut $48 million out of EPIC and that this 

16  year you are forcing them to wait until 

17  January 2013 so they could get some help when 

18  purchasing their prescription drugs, it's 

19  abusive, it's uncalled for, it's a mockery, and 

20  it's disrespectful to senior citizens.

21               And now, bringing gambling so they 

22  could even, as Senator Espaillat said, they could 

23  even -- or people could even gamble some of their 

24  rent and the little money that they have, this is 

25  the wrong way to go.  But this is New York.  And 

                                                               1712

 1  New York is the capital of the world and is 

 2  becoming the capital of the corruption.

 3               So I'm voting no.  And again, 

 4  Senator Espaillat, you have some qualities to 

 5  become Reverend.

 6               Thank you, Mr. President.

 7               ACTING PRESIDENT GRIFFO:   Senator 

 8  Bonacic.

 9               SENATOR BONACIC:   Thank you, 

10  Mr. President.  Just a couple of points that I'd 

11  like to make.

12               First of all, the Article 7 bill 

13  before us is not addressing the merits of 

14  gaming.  That was done on a resolution of first 

15  passage for a constitutional amendment, where I 

16  do believe many of my colleagues on the other 

17  side of the aisle walked out of the chambers and 

18  decided not to debate the merits of gaming.  

19               So most of those discussions and 

20  concerns I think are relevant and will be 

21  deferred to next year when we need second 

22  passage.  So that's point number one.

23               Point number two -- and I'd like to 

24  address some of the remarks of Senator Krueger.  

25  She asked many questions about this seven-person 

                                                               1713

 1  commission.  I look at it as a work in progress.  

 2               The Governor wanted to make sure 

 3  there was an entity, if gaming were to go 

 4  forward -- and I for one always believe in 

 5  initiative and referendum.  It's really let the 

 6  people decide, after they hear all the pros and 

 7  cons, whether it's good for our state or bad for 

 8  our state.  And I think we should give them that 

 9  opportunity, but that's a discussion next year 

10  for a November 2013 vote.

11               As to the commission, the Governor 

12  wants to make sure that there are seven qualified 

13  people with expertise in law, in accounting, in 

14  administration that become basically experts that 

15  can watch irregularity or illegality in the event 

16  casino gaming goes forward.

17               And I will say that I think some of 

18  Senator Krueger's remarks were insightful.  It's 

19  something that should be looked at, can be 

20  refined when it comes next year as to whether we 

21  should expand, spell out better the duties of 

22  this commission, talk more about its enforcement 

23  powers.  But I think you may see that in the 

24  enacting legislation which we must approve.

25               And keep in mind this body has to 

                                                               1714

 1  approve the seven places where you would like to 

 2  see a casino go.

 3               But in terms of this bill, I think 

 4  merging entities is efficient, consolidation is 

 5  always good, it's in the taxpayers' best 

 6  interest.  But we can't answer all of those 

 7  questions about gaming until, one, in fact it's 

 8  in place; number two, there is a gaming 

 9  commission.  And all we can expect is that we've 

10  put the seven best people qualified.  Not 

11  minorities.  If there's seven women it works for 

12  me, if they're the best experts.  If there's 

13  seven Afro-Americans it works for me, if they're 

14  experts.  Same with the Hispanic community.

15               So it's not about, you know, what 

16  is the color of the face, it's more important 

17  their expertise -- and it must be a minimum of 

18  five years, by the way -- in the areas of 

19  accounting, administration, law.

20               So the Governor is trying to set 

21  parameters.  And maybe we'll look at it more 

22  closely and we'll tweak it more, asking for input 

23  from all the members here how we can make it 

24  better.  But not all the answers are here today 

25  as to that seven-board commission, other than 

                                                               1715

 1  that the Governor will pick five, we have to 

 2  confirm, Senate picks one, Assembly picks one.

 3               But I thank the Governor for moving 

 4  this forward.  I do think you need a gaming 

 5  commission that has the power to watch closely 

 6  gaming in the event that the people approve it.  

 7  Because with big money, with gaming as we've seen 

 8  in other states, there's opportunities for 

 9  corruption, there's opportunities for 

10  illegalities.  

11               But as to, you know, the negative 

12  side of gaming, whether it's the addictions, 

13  whether it's that poor man spending his money in 

14  the casino and not buying food for his family, 

15  they are all legitimate concerns that are 

16  addressed whether we go forward next year in the 

17  second passage of the constitutional amendment.

18               So I thank my colleagues for their 

19  input.  I vote aye.  

20               Thank you, Mr. President.

21               ACTING PRESIDENT GRIFFO:   Is there 

22  any other Senator who wishes to be heard?

23               Seeing none, hearing none, the 

24  debate is closed.  

25               The Secretary will ring the bell.

                                                               1716

 1               Read the last section.

 2               THE SECRETARY:   Section 2.  This 

 3  act shall take effect immediately.

 4               ACTING PRESIDENT GRIFFO:   Call the 

 5  roll.

 6               (The Secretary called the roll.)

 7               ACTING PRESIDENT GRIFFO:   Announce 

 8  the results.

 9               THE SECRETARY:   In relation to 

10  Calendar Number 473, those recorded in the 

11  negative are Senators Diaz, Duane, Espaillat, and 

12  Krueger.  

13               Ayes, 56.  Nays, 4.

14               ACTING PRESIDENT GRIFFO:   The bill 

15  is passed.

16               Senator Libous, that completes the 

17  controversial reading of the calendar.

18               SENATOR LIBOUS:   Thank you, 

19  Mr. President.

20               And I would like to ask if there's 

21  any further business at the desk at this time.

22               ACTING PRESIDENT GRIFFO:   There is 

23  none.

24               SENATOR LIBOUS:   Thank you, 

25  Mr. President.

                                                               1717

 1               ACTING PRESIDENT GRIFFO:   Can I 

 2  have some order in the chamber, please.

 3               SENATOR LIBOUS:   It's very 

 4  important what I'm about to say, Mr. President.

 5               There being no further business 

 6  before the Senate, I move that we adjourn until 

 7  Thursday, March 29th, at 3:00 p.m.

 8               ACTING PRESIDENT GRIFFO:   On 

 9  motion, the Senate stands adjourned until 

10  Thursday, March 29th, at 3:00 p.m. 

11               Senate adjourned.

12               (Whereupon, at 2:24 p.m., the Senate 

13  adjourned.)

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