Wednesday, April 20, 1994

2691 1 2 3 4 5 6 7 8 9 ALBANY, NEW YORK 10 April 20, 1994 11 11:59 a.m. 12 13 14 REGULAR SESSION 15 16 17 18 SENATOR JOSEPH L. BRUNO, Acting President 19 STEPHEN F. SLOAN, Secretary 20 21 22 23 2692 1 P R O C E E D I N G S 2 ACTING PRESIDENT BRUNO: Senate 3 will come to order. 4 Join me in the Pledge of 5 Allegiance. 6 (Whereupon, the Senate joined in 7 the Pledge of Allegiance to the Flag.) 8 We're pleased to have the 9 Reverend Arthur Bolden, Pastor of the 10 Pentecostal Church in Brooklyn, join us for the 11 opening prayer. 12 Reverend. 13 REVEREND ARTHUR BOLDEN: Thank 14 you very much. It is a pleasure and honor to be 15 here again, and I hope that you will listen to 16 me for a few minutes. 17 And let's bow our heads. 18 O gracious God, as we come before 19 You at this hour thanking You for the 20 opportunity, and realize that with this 21 opportunity coming from Senator Babbush, we're 22 hoping, Almighty God, that You can touch the 23 heart of all Senators throughout this state. 2693 1 We have so many problems, and we 2 have so many things that need to be done. You 3 know they are still fighting for the -- for the 4 budget and we're hoping that You realize that 5 when You touch the budget and when You resolve 6 it in the hearts of all Senators, Almighty God, 7 and the Assembly that You would touch the hearts 8 of those that are seeking, and that is those who 9 are unfortunate and that are seeking education, 10 almighty God, that we have to realize the 11 importance of all of the new, the children that 12 are seeking to become the Senators, to become 13 doctors, to become lawyers, to become 14 scientists. 15 I hope you will stand tall and 16 work together and find the solutions to the 17 problem of senior citizens, and those who are in 18 the street, Almighty God, don't have any home. 19 We pray that you will find the solution; and the 20 solution there I give you in looking for your 21 faith and my faith. There is hope. God bless 22 you. Continue to fight on. 23 Thank you. 2694 1 ACTING PRESIDENT BRUNO: Thank 2 you very much, Reverend Bolden. 3 Reading of the Journal. 4 THE SECRETARY: In Senate, 5 Tuesday, April 19. The Senate met pursuant to 6 adjournment. Senator Larkin in the chair upon 7 designation of the Temporary President. Prayer 8 by Father Megerdichian of the Holy Cross 9 Armenian Apostolic Church of Troy, New York. 10 The Journal of Monday, April 18, was read and 11 approved. On motion, Senate adjourned. 12 ACTING PRESIDENT BRUNO: Hearing 13 no objection, the Journal stands approved as 14 read. 15 Order of business: 16 Presentation of petitions. 17 Messages from the Assembly. 18 Messages from the Governor. 19 Reports of standing committees. 20 Secretary will read. 21 THE SECRETARY: Senator Hannon 22 from the Committee on Housing and Community 23 Development reports the following bills directly 2695 1 for third reading: 2 Senate Bill Number 276, by 3 Senator Hannon, an act to amend the Public 4 Housing Law. 5 Senate Bill Number 277, by 6 Senator Hannon, Administrative Code of the City 7 of New York. 8 4975, by Senator Hannon, Private 9 Housing Finance Law. 10 6797, by Senator Hannon, Private 11 Housing Finance Law. 12 Senator LaValle from the 13 Committee on Higher Education reports the 14 following bills directly for third reading: 15 Senate Bill Number 7064, by 16 Senator LaValle, an act to amend the Education 17 Law. 18 7150, by Senator LaValle, 19 Education Law, filing State University financial 20 statements. 21 7410, by Senator Seward, State 22 University of New York to lease certain lands. 23 And 7525, by Senator LaValle, an 2696 1 act to amend the Education Law, in relation to 2 reporting requirements of the City University. 3 All bills reported directly to 4 third reading. 5 ACTING PRESIDENT BRUNO: Without 6 objection third reading, reported to third 7 reading. 8 Motions and resolutions. 9 Senator DeFrancisco. 10 SENATOR DeFRANCISCO: Mr. 11 President. On page number 21, I offer the 12 following amendments to Calendar Number 642, 13 Senate Print Number 4742, and ask that the said 14 bill retain its place on the Third Reading 15 Calendar. 16 ACTING PRESIDENT BRUNO: Without 17 objection. 18 SENATOR PRESENT: Recognize 19 Senator Farley. 20 ACTING PRESIDENT BRUNO: Senator 21 Farley. 22 SENATOR FARLEY: Thank you, Mr. 23 President. Thank you, Senator Present. 2697 1 Before I ask that a privileged 2 resolution be read, I would like to star two 3 bills on behalf of Senator Cook. That's 4 Calendar 613 and 615. 5 ACTING PRESIDENT BRUNO: So 6 ordered. 7 SENATOR FARLEY: Mr. President, 8 there is a privileged resolution at the desk, 9 and I would ask that the Secretary read the 10 resolution in its entirety and it be adopted, 11 and I would like to speak to it. 12 ACTING PRESIDENT BRUNO: The 13 Secretary will read. 14 THE SECRETARY: Senate Resolution 15 Number 3098, by Senator Farley, congratulating 16 the St. Johnsville High School Lady Saints 17 Basketball Team and their talented coach, Pam 18 Macek, on their outstanding season and overall 19 team record. 20 Whereas, the State of New York 21 takes pleasure and pride in honoring talented 22 young athletes who take part in competitive 23 sports and who achieve success through a 2698 1 combination of serious practice and dedicated 2 coaching. 3 The entire Capital District has 4 been following the exciting progress of St. 5 Johnsville Lady Saints, who this year have 6 claimed their second consecutive New York State 7 Public High School Class D Championship. 8 This remarkable team of talented 9 athletes is already highly respected having 10 maintained a perfect 54-0 record over the past 11 two years; the Lady Saints have also 12 participated in six straight years of Tri-Valley 13 League play without a loss, and they hold an 14 outstanding 100-3 record over four years. 15 On Saturday, March 26, 1994, the 16 Lady Saints further distinguished themselves in 17 their latest triumph by winning the finals of 18 the Federation Cup at Marist College; this 19 victory was bittersweet in that while it marked 20 Coach Pam Macek's 200th career win, it also 21 heralds the departure of seniors Janice Miklic 22 and Wendi Schoff, whose efforts have contributed 23 so much to the team's record of two years of 2699 1 undefeated competition. 2 Senior forward Wendi Schoff was 3 named the tournament MVP in recognition of her 4 strong and experienced performance. 5 The Lady Saints consistently 6 exhibit athletic ability and good sportsmanship; 7 athletically and academically, the team members 8 have proven themselves to be an unbeatable 9 combination of talents, reflecting well on their 10 school. 11 St. Johnsville Coach, Pam Macek, 12 deserves praise for the suburb job she has done 13 in successfully guiding, molding and inspiring 14 each of the team members toward her goals. 15 Sports competition instills the 16 values of teamwork, pride and accomplishment; 17 and Coach Macek and her outstanding athletes 18 have clearly made a contribution to the spirit 19 of excellence which is a hallmark of the school; 20 now, therefore be it 21 Resolved, that this Legislative 22 Body pause in its deliberations to congratulate 23 the entire St. Johnsville Lady Saints Basketball 2700 1 Team and Coach Pam Macek on their outstanding 2 season and overall team record; and it be 3 further 4 Resolved, that this Legislative 5 Body commend the dedication and accomplishment 6 of these athletes and honor them for the 7 excellence displayed in their chosen 8 disciplines; and be it further 9 Resolved, that copies of this 10 resolution, suitably engrossed, be transmitted 11 to David A. Lapone, Principal of St. Johnsville 12 High School, Coach Pam Macek and her staff and 13 to the St. Johnsville Lady Saints Basketball 14 Team. 15 ACTING PRESIDENT BRUNO: On the 16 resolution. Senator Farley. 17 SENATOR FARLEY: Thank you, Mr. 18 President. My colleagues. In the gallery, up 19 here, we have one of the finest basketball teams 20 I think that this nation has ever seen. Not 21 only are they the New York State Champions, but 22 what a record: 54 and zero; 100 victories to 3 23 losses over four years; a team that comes from a 2701 1 small town in Upstate New York; a team that has 2 been absolutely remarkable in its academic 3 performance. The team average, academic average 4 of this team is 91 percent. Not only are they 5 great basketball players and athletes but they 6 are also scholars. 7 Pam Macek, the coach, has truly 8 been recognized as one of the finest coaches in 9 the United States. I'm so very, very proud to 10 have these young athletes here with us today, 11 and I ask for -- that the resolution be adopted, 12 and that you give them a warm welcome, Senator 13 Bruno, who is also from the Capital District and 14 is so very proud of this team. 15 ACTING PRESIDENT BRUNO: We are 16 proud by your presence here in the chamber 17 joining us and can see by what you have done 18 with your lives, your young lives so far, that 19 you will have continued success; and in all the 20 things that you do with your lives, you will 21 truly be shining stars and good examples for a 22 lot of the people who will be looking to you for 23 your leadership and your direction. We are 2702 1 very, very pleased to have you join with us. 2 Ladies and gentlemen. The State 3 Champions. 4 (Applause.) 5 And the resolution is adopted. 6 Senator Trunzo. 7 SENATOR TRUNZO: Mr. President. 8 I have a privileged resolution at the desk, ask 9 that the title be read, and the resolution 10 adopted. 11 THE SECRETARY: Legislative 12 Resolution by Senators Trunzo, Marino, Padavan, 13 Johnson, and other members of the Senate 14 commending Josephine L. Gambino, Civil Service 15 Commission President, upon the occasion of her 16 retirement. 17 ACTING PRESIDENT BRUNO: On the 18 resolution. All in favor, aye. 19 (Response of "Aye.") 20 Opposed. 21 (There was no response.) 22 The resolution is carried. 23 Senator Nozzolio. 2703 1 SENATOR NOZZOLIO: Senator Bruno, 2 I have a privileged resolution at the desk. I 3 ask consent to have the title read and it 4 adopted. 5 ACTING PRESIDENT BRUNO: The 6 clerk will read. 7 THE SECRETARY: Legislative 8 Resolution, by Senator Nozzolio, commending 9 Matthew Fiola of Seneca Falls, New York, upon 10 the occasion of his recognition by the Italian 11 Heritage Society on Sunday April 24, 1994. 12 (Whereupon, Senator Farley was in 13 the chair.) 14 ACTING PRESIDENT FARLEY: On the 15 resolutions, all those in favor, say aye. 16 (Response of "Aye.") 17 Those opposed, nay. 18 (There was no response.) 19 The resolution is adopted. 20 We have some substitutions. 21 The Secretary will read the 22 substitutions. 23 THE SECRETARY: On page 18 of 2704 1 today's calendar, Senator DeFrancisco moves to 2 discharge the Committee on Education from 3 Assembly Bill Number 11323 and substitute it for 4 the identical Third Reading 618. 5 ACTING PRESIDENT FARLEY: 6 Substitution is ordered. 7 THE SECRETARY: On page 20, 8 Senator Maltese moves to discharge the Committee 9 on Codes from Assembly Bill Number 6344A and 10 substitute it for the identical Third Reading 11 639. 12 ACTING PRESIDENT FARLEY: 13 Substitution is ordered. 14 THE SECRETARY: On page 21 15 Senator Stafford moves to discharge the 16 Committee on Codes from Assembly Bill Number 17 5756A and substitute for the identical Third 18 Reading 643. 19 ACTING PRESIDENT FARLEY: 20 Substitution is ordered. 21 THE SECRETARY: On page 21, 22 Senator Johnson moves to discharge the Committee 23 on Codes from Assembly Bill Number 7124 and 2705 1 substitute it for the identical Third Reading 2 645. 3 ACTING PRESIDENT FARLEY: 4 Substitution is ordered. 5 Senator Present. 6 SENATOR PRESENT: Mr. President. 7 Let's take up the noncontroversial calendar, 8 please. 9 ACTING PRESIDENT FARLEY: 10 Secretary will read the noncontroversial bills. 11 Page 8, I think. 12 THE SECRETARY: On page 13, 13 Calendar Number 556, by Member of the Assembly 14 Grannis, Assembly Bill Number 619, an act to 15 amend the Real Property Law, in relation to 16 apartment information vendors. 17 ACTING PRESIDENT FARLEY: Senator 18 Present. There is an appropriation message here 19 at the desk. Did you wish to make a motion? 20 SENATOR PRESENT: Mr. President. 21 I move we accept the message. 22 ACTING PRESIDENT FARLEY: All in 23 favor of accepting the message, say aye. 2706 1 (Response of "Aye.") 2 Those opposed, nay. 3 (There was no response.) 4 The message is accepted. 5 You can read the last section. 6 THE SECRETARY: Section 3. This 7 act shall take effect on the first day of 8 January next succeeding the date on which it 9 shall have become a law. 10 ACTING PRESIDENT FARLEY: Call 11 the roll. 12 (The Secretary called the roll.) 13 THE SECRETARY: Ayes - 14 ACTING PRESIDENT FARLEY: Which 15 bill did you have? Did we do the wrong one. 16 Senator Present, unfortunately 17 the desk made a little boo-boo. There's no 18 message for this particular bill. 19 SENATOR PRESENT: I think you 20 made the mistake, but that's all right. 21 ACTING PRESIDENT FARLEY: I only 22 do what they tell me. 23 SENATOR RATH: 556, I'm down. 2707 1 ACTING PRESIDENT FARLEY: 556. 2 Secretary will call the roll. 3 (The Secretary called the roll.) 4 THE SECRETARY: Ayes 37. Nays 5 2. Senators Daly and Rath recorded in the 6 negative. 7 ACTING PRESIDENT FARLEY: The 8 bill is passed. 9 THE SECRETARY: Calendar Number 10 586, by Senator Trunzo. 11 SENATOR TRUNZO: Lay it aside for 12 the day. 13 ACTING PRESIDENT FARLEY: Lay 14 that bill aside for today. 15 I am told that this is the one 16 that has the message, but the Secretary will 17 read it. 18 THE SECRETARY: Calendar Number 19 588, by Member of the Assembly Vitaliano, 20 Assembly Bill 10629, an act to amend the Civil 21 Service Law, in relation to the powers and 22 duties of the director - 23 SENATOR GOLD: Lay it aside. 2708 1 ACTING PRESIDENT FARLEY: Lay the 2 bill aside. 3 SENATOR GOLD: Accept the 4 message? Wait a minute. Hold on. 5 ACTING PRESIDENT FARLEY: Senator 6 Present, what's your pleasure? 7 SENATOR PRESENT: Just hold a 8 moment. 9 Mr. President. 10 ACTING PRESIDENT FARLEY: Senator 11 Present. 12 SENATOR PRESENT: I understand 13 there is a message at the desk. 14 ACTING PRESIDENT FARLEY: There 15 is a message at the desk for this bill. 16 SENATOR PRESENT: I move we 17 accept the message at this time. 18 ACTING PRESIDENT FARLEY: All in 19 favor of accepting the message, please say aye. 20 (Response of "Aye.") 21 Those opposed, nay. 22 (There was no response.) 23 The message is accepted. 2709 1 SENATOR PRESENT: Last section. 2 SENATOR GOLD: Last section. 3 ACTING PRESIDENT FARLEY: Read 4 the last section. 5 THE SECRETARY: Section 2. This 6 act shall take effect immediately. 7 ACTING PRESIDENT FARLEY: Call 8 the roll. 9 (The Secretary called the roll.) 10 THE SECRETARY: Ayes 39. 11 ACTING PRESIDENT FARLEY: The 12 bill is passed. 13 THE SECRETARY: Calendar Number 14 591, by the Senate Committee on Rules, Senate 15 Bill Number 6120A, an act to amend the Public 16 Authorities Law, in relation to allowing the 17 Oswego Port Authority to create industrial 18 projects. 19 ACTING PRESIDENT FARLEY: Read 20 the last section. 21 THE SECRETARY: Section 2. This 22 act shall take effect immediately. 23 ACTING PRESIDENT FARLEY: Call 2710 1 the roll. 2 (The Secretary called the roll.) 3 THE SECRETARY: Ayes 39. 4 ACTING PRESIDENT FARLEY: The 5 bill is passed. 6 THE SECRETARY: Calendar Number 7 601, by Senator Marino, Senate Bill Number 7543, 8 an act to amend a Chapter of the Laws of 1994, 9 as proposed in Legislative Bill Number S.724 - 10 SENATOR GOLD: Lay it aside. 11 ACTING PRESIDENT FARLEY: Lay it 12 aside. 13 THE SECRETARY: Calendar Number 14 607, by Senator Levy, Senate Bill Number 71A, an 15 act to amend the Vehicle and Traffic Law and the 16 Education Law. 17 ACTING PRESIDENT FARLEY: There 18 is a local fiscal impact note here at the desk. 19 You can read the last section. 20 THE SECRETARY: Section 2. This 21 act shall take effect immediately. 22 SENATOR DOLLINGER: Is that 23 Calendar 607? 2711 1 ACTING PRESIDENT FARLEY: This is 2 607. 3 SENATOR DOLLINGER: Would you lay 4 that bill aside, please. 5 ACTING PRESIDENT FARLEY: Lay it 6 aside. Withdraw the roll call. 7 THE SECRETARY: Calendar number 8 608, by Senator Cook, Senate Bill Number 2273, 9 an act to amend the Highway Law. 10 ACTING PRESIDENT FARLEY: We have 11 a home rule message here at the desk. 12 Read the last section. 13 THE SECRETARY: Section 2. This 14 act shall take effect immediately. 15 ACTING PRESIDENT FARLEY: Call 16 the roll. 17 (The Secretary called the roll.) 18 THE SECRETARY: Ayes 42. 19 ACTING PRESIDENT FARLEY: The 20 bill is passed. 21 THE SECRETARY: Calendar Number 22 609, by Senator DeFrancisco, Senate Bill Number 23 2341, an act to amend the Highway Law, assist in 2712 1 certain roads in the Village of Camillus. 2 ACTING PRESIDENT FARLEY: There 3 is a home rule message here at the desk. 4 You can read the last section. 5 THE SECRETARY: Section 2. This 6 act shall take effect immediately. 7 ACTING PRESIDENT FARLEY: Call 8 the roll. 9 (The Secretary called the roll.) 10 THE SECRETARY: Ayes 43. 11 ACTING PRESIDENT FARLEY: The 12 bill is passed. 13 THE SECRETARY: Calendar Number 14 612, by Senator Babbush, Senate Bill Number 15 2465A, authorizing the City of New York to 16 reconvey its interest in certain real property. 17 ACTING PRESIDENT FARLEY: Senator 18 Babbush has a home rule message here at the 19 desk. 20 You can read the last section. 21 THE SECRETARY: Section 2. This 22 act shall take effect immediately. 23 ACTING PRESIDENT FARLEY: Call 2713 1 the roll. 2 (The Secretary called the roll.) 3 THE SECRETARY: Ayes 43. 4 ACTING PRESIDENT FARLEY: The 5 bill is passed. 6 THE SECRETARY: Calendar Number 7 614, by Senator Velella, Senate Bill Number 8 6571, authorizing the City of New York to 9 reconvey its interest in certain real property. 10 ACTING PRESIDENT FARLEY: There 11 is a home rule message here at the desk. 12 You can read the last section. 13 THE SECRETARY: Section 2. This 14 act shall take effect immediately. 15 ACTING PRESIDENT FARLEY: Call 16 the roll. 17 (The Secretary called the roll.) 18 THE SECRETARY: Ayes 44. 19 ACTING PRESIDENT FARLEY: The 20 bill is passed. 21 THE SECRETARY: Calendar Number 22 616, by Senator Levy, Senate Bill Number 7379, 23 authorize the payment of transportation aid to 2714 1 the Roosevelt Union Free School District. 2 ACTING PRESIDENT FARLEY: There 3 is a local fiscal impact note at the desk. 4 Read the last section. 5 THE SECRETARY: Section 2. This 6 act shall take effect immediately. 7 ACTING PRESIDENT FARLEY: Call 8 the roll. 9 (The Secretary called the roll.) 10 THE SECRETARY: Ayes 46. 11 ACTING PRESIDENT FARLEY: The 12 bill is passed. 13 THE SECRETARY: Calendar Number 14 619, by Senator Skelos, Senate Bill Number 1296. 15 SENATOR PRESENT: Lay it aside. 16 ACTING PRESIDENT FARLEY: Lay 17 that bill aside. For the day, Senator Present? 18 SENATOR PRESENT: For the day. 19 ACTING PRESIDENT FARLEY: For the 20 day. 21 THE SECRETARY: Calendar Number 22 620, by Senator Sears, Senate Bill Number 3501A, 23 an act to amend the Vehicle and Traffic Law. 2715 1 ACTING PRESIDENT FARLEY: Read 2 the last section. 3 THE SECRETARY: Section 2. This 4 act shall take effect immediately. 5 ACTING PRESIDENT FARLEY: Call 6 the roll. 7 (The Secretary called the roll.) 8 THE SECRETARY: Ayes 51. 9 ACTING PRESIDENT FARLEY: The 10 bill is passed. 11 THE SECRETARY: Calendar Number 12 621, by Senator Maltese, Senate Bill Number 13 4112A, an act to amend the Vehicle and Traffic 14 Law. 15 ACTING PRESIDENT FARLEY: Read 16 the last section. 17 THE SECRETARY: Section 2. This 18 act shall take effect immediately. 19 ACTING PRESIDENT FARLEY: Call 20 the roll. 21 (The Secretary called the roll.) 22 THE SECRETARY: Ayes 51. 23 ACTING PRESIDENT FARLEY: The 2716 1 bill is passed. 2 THE SECRETARY: Calendar Number 3 623, by Senator Johnson, Senate Bill Number 4 7374, an act to amend the Vehicle and Traffic 5 Law. 6 ACTING PRESIDENT FARLEY: Read 7 the last section. 8 THE SECRETARY: Section 2. This 9 act shall take effect immediately. 10 ACTING PRESIDENT FARLEY: Call 11 the roll. 12 (The Secretary called the roll.) 13 THE SECRETARY: Ayes 51. 14 ACTING PRESIDENT FARLEY: The 15 bill is passed. 16 THE SECRETARY: Calendar Number 17 624, by Senator DiCarlo, Senate Bill Number 18 7381, an act to amend the Executive Law, 19 designating June 12 as Woman Veterans 20 Recognition Day. 21 ACTING PRESIDENT FARLEY: Read 22 the last section. 23 THE SECRETARY: Section 2. This 2717 1 act shall take effect immediately. 2 ACTING PRESIDENT FARLEY: Call 3 the roll. 4 (The Secretary called the roll.) 5 THE SECRETARY: Ayes 52. 6 ACTING PRESIDENT FARLEY: The 7 bill is passed. 8 THE SECRETARY: Calendar Number 9 626, by Senator Saland, Senate Bill Number 3378. 10 SENATOR PRESENT: Lay it aside 11 for the day. 12 ACTING PRESIDENT FARLEY: Lay 13 that bill aside for today. 14 THE SECRETARY: Calendar Number 15 627, by Senator Saland, Senate Bill Number 3759, 16 Domestic Relations Law, in relation to orders 17 for child custody and support. 18 ACTING PRESIDENT FARLEY: Read 19 the last section. 20 THE SECRETARY: Section 2. This 21 act shall take effect immediately. 22 ACTING PRESIDENT FARLEY: Call 23 the roll. 2718 1 (The Secretary called the roll.) 2 THE SECRETARY: Ayes 52. 3 ACTING PRESIDENT FARLEY: The 4 bill is passed. 5 THE SECRETARY: Calendar Number 6 628, by Senator DiCarlo, Senate Bill Number 7 6511, Executive Law, in relation to 8 qualifications of employment as a youth division 9 aide. 10 ACTING PRESIDENT FARLEY: Read 11 the last section. 12 THE SECRETARY: Section 2. This 13 act shall take effect immediately. 14 ACTING PRESIDENT FARLEY: Call 15 the roll. 16 (The Secretary called the roll.) 17 THE SECRETARY: Ayes 52. 18 ACTING PRESIDENT FARLEY: The 19 bill is passed. 20 Senator Holland, I understand you 21 have a motion. 22 SENATOR HOLLAND: Yes, Mr. 23 President. On page 9, I offer the following 2719 1 amendments to Calendar Number 432, for Senator 2 Levy, Senate Print Number 79A, and ask that said 3 bill retain its place on the Third Reading 4 Calendar. 5 ACTING PRESIDENT FARLEY: Without 6 objection. 7 Senator Present. 8 SENATOR PRESENT: Mr. President. 9 Can we stand at ease for a few moments. 10 ACTING PRESIDENT FARLEY: Senate 11 will stand at ease for a moment. 12 (Whereupon, at 12:23 p.m., Senate 13 was at ease.) 14 SENATOR PRESENT: Mr. President. 15 May we return to motions for a few moments? 16 ACTING PRESIDENT FARLEY: Yes, we 17 may. 18 Senator Kuhl, do you have a 19 motion. 20 SENATOR KUHL: Yes, Mr. 21 President. On behalf of Senator Libous, I move 22 that the following bills be discharged from 23 their respective committees and be recommitted 2720 1 with instructions to strike the enacting 2 clause: These are Senate Prints 1335, 2015, 3 2199, 2731, 4383, 4423, 4435, 4647, 4789, 4807, 4 5746, 6107. 5 ACTING PRESIDENT FARLEY: Those 6 are all Senator Libous's? 7 SENATOR KUHL: Yes. Yes. 8 ACTING PRESIDENT FARLEY: His 9 program is recommitted with the enacting clause 10 struck, without objection. 11 SENATOR PRESENT: Continue to 12 stand at ease. 13 ACTING PRESIDENT FARLEY: Thank 14 you. 15 (The Senate continued at ease.) 16 ACTING PRESIDENT FARLEY: Senator 17 Montgomery. 18 SENATOR MONTGOMERY: Yes, thank 19 you. I would like unanimous consent to be 20 recorded in the negative on Calendar 628. 21 ACTING PRESIDENT FARLEY: 628, 22 Senator Montgomery will be in the negative, 23 without objection. 2721 1 SENATOR MONTGOMERY: Thank you. 2 ACTING PRESIDENT FARLEY: Senator 3 Galiber. 4 SENATOR GALIBER: 628, Mr. 5 President, could I have unanimous consent to be 6 recorded in the negative, please. 7 ACTING PRESIDENT FARLEY: Without 8 objection, Senator Galiber will be in the 9 negative on Calendar Number 628. 10 (Whereupon, at 12:34 p.m., the 11 Senate reconvened.) 12 ACTING PRESIDENT FARLEY: Senator 13 Present. 14 SENATOR PRESENT: Call up 15 Calendar 601, please. 16 ACTING PRESIDENT FARLEY: The 17 Secretary will read Calendar Number 601. 18 THE SECRETARY: 601, by Senator 19 Marino, Senate Bill Number 7543, an act to amend 20 a Chapter of the Laws of 1994, as proposed in 21 Legislative Bill Number S.7246, amending the Tax 22 Law. 23 ACTING PRESIDENT FARLEY: Read 2722 1 the last section. 2 SENATOR GOLD: Explanation 3 please. 4 ACTING PRESIDENT FARLEY: 5 Explanation has been asked for. Senator 6 Stafford. 7 SENATOR STAFFORD: Thank you, Mr. 8 President. You will recall that not too many 9 weeks or days ago, we passed a tax reduction 10 bill. We felt that we have to go in this 11 direction. As I stated yesterday, I'm afraid 12 this sort of becomes a broken record, and it's a 13 difference in philosophy. It's one of the 14 advantages we have with this system, is we can 15 disagree. I think there have been wars fought 16 over that; and, fortunately, we have that 17 opportunity, and we no doubt will have some 18 discussion today as far as this legislation is 19 concerned. 20 This is a chapter amendment to 21 the tax cut bill. Now, when I first arrived 22 here a number of years ago, we used to say this 23 is a chapter amendment with technical 2723 1 corrections, and we didn't talk much more about 2 it, but I know that there are some questions on 3 the bill that passed and no doubt on the chapter 4 amendment. 5 But, Mr. President, once again 6 last evening, I was talking to a group of 7 business people, ladies and gentlemen, and 8 again, they were pressing me -- pressing me, 9 stating that unless we have some changes in the 10 State of New York, we're going to continue to 11 see our economy move out of this area. It's 12 very serious. 13 And I say this, this is very 14 fundamental and, again, hopefully not boring 15 people, but if we don't have the private sector 16 supplying the funds, the revenues, taxes, so to 17 speak, in this state, then we'll have nothing, 18 we'll have absolutely nothing to support the 19 responsibilities of the state government. 20 Now, the provisions of this 21 chapter amendment clarifies the treatment of net 22 operating loss as we proposed it. 23 Real estate gains, tax exemption 2724 1 for residential subdivisions and exchanges of 2 like kind property. Some real concerns with 3 developers. 4 Also, the alcoholic beverage tax 5 on beer would be reduced from 21 cents to 16 6 cents in 1994 and, further, to 11 cents in 1995 7 to repeal that portion related to the 8 Environmental Bond Act of 1990 which was 9 defeated, as we remember. 10 New York's fuel use tax would be 11 restructured to conform with federal law and the 12 international fuel tax agreement on January 13 1995. 14 The agriculture exemption for the 15 petroleum business tax which is passed in this 16 bill is expanded to include commercial fishing. 17 It does provide additional tax 18 relief of $20 million. 19 May we stand at ease for just a 20 few moment. 21 ACTING PRESIDENT FARLEY: Senate 22 will stand at ease for a moment. 23 (Whereupon, at 12:35 p.m., Senate 2725 1 was at ease and reconvened at 12:37 p.m.) 2 ACTING PRESIDENT FARLEY: Senator 3 Galiber. 4 SENATOR GALIBER: Mr. President. 5 Senator Jones has an amendment which is now 6 prepared, and I thank you for your patience. It 7 is at the desk. 8 ACTING PRESIDENT FARLEY: There 9 is an amendment here at the desk. 10 Senator Jones. 11 SENATOR JONES: Yes, I would like 12 to call it up, please, and waive its reading. 13 It's Senate Bill 7462. 14 ACTING PRESIDENT FARLEY: Right. 15 The amendment has been served. 16 SENATOR JONES: Okay. I would 17 like to speak on the bill. I certainly support 18 the things that Senator Stafford is doing in 19 regard to tax credits. 20 ACTING PRESIDENT FARLEY: 7543? 21 SENATOR JONES: Yes. It's an 22 amendment to 7543. Sorry. 23 ACTING PRESIDENT FARLEY: Thank 2726 1 you. 2 SENATOR JONES: Got it? I 3 certainly support everything that Senator 4 Stafford is doing, but I would like to add 5 another little addition to what we've been 6 talking about as far as tax credits for 7 business, and I think this has a very important 8 element to it that I haven't heard in some of 9 the other ones. 10 I heard Senator Leichter and 11 Senator Stafford discussing yesterday how we can 12 be sure that we're increasing jobs in our 13 community, and I read a little article recently 14 from the Fiscal Policy Institute that said, 15 "Ohio last year led the nation in attracting 16 new facilities, expansion and, in particular, 17 manufacturing plants." 18 So what I would like to propose 19 is an amendment today. It takes off on this 20 Ohio plan, and what it would offer is a tax 21 credit to businesses that is directly related to 22 new employees. It would give a business 50 23 percent of the income tax for each new 2727 1 employee. But, in addition, the credit goes to 2 the company only after hiring. They may take it 3 for up to ten years, but they must agree to keep 4 the employee on for at least double the amount 5 of time they take the tax credit. 6 I think the big advantage to this 7 is it has a direct impact on job growth and 8 retention. And isn't that what it's all about? 9 What we're hoping is to both bring businesses 10 here and to keep the new ones here and cause 11 them to grow. 12 So I think this does both, and I 13 would just point out that it in no way affects 14 the current investment tax credit. An employer 15 does not have to take this. It's their option. 16 But I think it also has the 17 advantage of saying to an employer, "You need to 18 do some good long-range planning so that you 19 know that five years from now this is where you 20 want to be. So in that case, it would be to 21 your advantage to take this tax credit, knowing 22 that these employees will continue to be part of 23 your work force." 2728 1 Every new employee, I don't think 2 I have to tell you that, every new person that's 3 hired in this state is a person that's paying 4 income tax, is a person that's adding to the 5 economy by the things they are buying, and all 6 this, so I think this would be a very good 7 addition to what we are already trying to do for 8 business, and it has the double impact of both 9 helping labor and business. 10 So I would move to its adoption. 11 ACTING PRESIDENT FARLEY: Senator 12 Dollinger. 13 SENATOR DOLLINGER: On the 14 amendment. I join with my colleague from Monroe 15 County in support of this amendment. 16 Seems to me that there are two 17 lessons here. One is that we -- in the new 18 federalism in the approach to a national 19 government which encourages experimentation by 20 the states, we in New York State should be 21 receptive to those experiments which have 22 succeeded elsewhere, as apparently the Ohio tax 23 incentive and tax credit has. 2729 1 It seems to me that we ought to 2 import that little genius of Ohio and make it a 3 part of the Tax Law of New York State, so that 4 we send a two-fold message. One, we can send a 5 message that we've got a home sweet home for our 6 business here in New York; and, number two, we 7 can roll out the welcome mat to send the right 8 messages to businesses that want to locate in 9 the State of New York. 10 I appreciate what Senator 11 Stafford is doing. I appreciate what the 12 Republican majority is doing. I think there are 13 a number of initiatives from this side of the 14 aisle. This is one of the better ones. It's 15 been proven to work in Ohio. We ought to take a 16 little bit of Ohio's know-how and put it to work 17 here in the State of New York. 18 I urge the adoption of this 19 amendment. 20 ACTING PRESIDENT FARLEY: Senator 21 Galiber. 22 SENATOR GALIBER: Yes, thank you, 23 Mr. President. 2730 1 Yesterday, on one of Senator 2 Stafford's bills, I alluded to the fact that we 3 have this tax credit problem here in our state, 4 and that as we move into the final days, if you 5 will, of this budgetary process that the 6 question of tax credits is going to be extremely 7 important, and also the question of how we cut 8 and how much we cut and what is it going to cost 9 us in the out years. 10 The Ohio procedure in that state 11 is an excellent one. We have found in this 12 state because of the secretiveness, if you will, 13 of the tax credits, they do not let us know how 14 they use those tax credits. We have our tax 15 department, who is not duty bound, if you will, 16 to not give us the information on those tax 17 returns. 18 There is on a federal level, 19 however, and we should be leaning toward 20 adopting that, close to the Ohio, close to the 21 amendment which is offered by my colleague from 22 Monroe County, to say "If you want to get the 23 benefit, then we should know what you are doing 2731 1 with those credits." And up to date, they 2 refuse to do so. 3 Some have suggested that we 4 should perhaps put them on the dole, so to 5 speak, and issue a check, if you will, make it a 6 subsidy. Let's issue a check based on what you 7 do each year. Give you it back in monetary 8 form. But at least there should be the 9 disclosure. 10 When we hear the horror stories 11 of large corporations which are making billions 12 and billions and billions of dollars and then 13 you look at their tax return and their tax 14 return, they're returning to them two, three, 15 four hundred million dollars. 16 Something is wrong with our 17 system. And it's a simple amendment, a simple 18 concept. If you want our credits tell us what 19 you are doing with those credits, and we'll 20 gladly give them to you. 21 Especially in the area of 22 employment, and we are all concerned about that, 23 you create jobs, we'll give you the benefits in 2732 1 this state. But if you are hiding this and 2 using the loopholes and doing -- out in the 3 other states, and avoiding the tax penalties in 4 this state because you are not disclosing to us 5 what you are doing with those credits -- and I'm 6 sure Senator Stafford would agree with me that 7 the system that we have is not a good one. 8 So I support the amendment, as we 9 all should support it. Keep it in the back of 10 our minds, because certainly it's -- when we 11 come down to the last days, hours, if you will, 12 as I mentioned before, perhaps this one-house 13 bill that for the first time -- or for a long 14 time, I find myself, as my other colleagues do, 15 finding technical changes in what is a one-house 16 bill. I have never experienced that before, but 17 then I have never experienced a lot of things 18 that are happening this year. 19 I understand that -- you know, 20 the people who are being hit the hardest or 21 concerned the most, I know that the net 22 operating loss is a key factor to our growth in 23 this country or in this state, and there are 2733 1 those of us who believe you can go forward, you 2 can go back a bit, but you can't go back, but 3 it's certainly that the business community is 4 aware of and needs to look at as we are looking 5 at it now. 6 Those of us, Senator Stafford, on 7 this side of the aisle agree with you that the 8 theory is good in actuality. Not a theory. 9 What you are saying is what we are desirous of 10 also. We are merely saying, as you should be 11 saying, that if you take my tax credits, let me 12 know how you are using them. Is it in fact 13 being beneficial to our community and to our 14 state? 15 So, Mr. President, I would urge 16 the adoption of the amendment and hope that the 17 wisdom of this amendment will spread in the 18 waning hours of this session. 19 ACTING PRESIDENT FARLEY: Thank 20 you, Senator Galiber. 21 All in favor of accepting 22 amendments - 23 Senator Nozzolio. 2734 1 SENATOR NOZZOLIO: Mr. 2 President. Will the sponsor yield? 3 SENATOR JONES: Yes. 4 ACTING PRESIDENT FARLEY: Senator 5 Stafford, would -- no, I'm sorry. Senator Jones 6 is the sponsor. 7 SENATOR JONES: Yes, I will. 8 SENATOR NOZZOLIO: Senator, 9 Jones, I have just had the opportunity to review 10 some of the text of the amendment and have some 11 questions about it that I hope you can clarify. 12 How does an employer go about 13 obtaining this proposed tax credit that you are 14 suggesting? 15 SENATOR JONES: Senator, the 16 employer would make application, I believe, to 17 the Department of Economic Development, and they 18 also would be the monitor of this tax credit. 19 As they hire a new employee - 20 the way it's working in the state of Ohio, when 21 you take on a new hire, you may take the tax 22 credit. There is a limit of ten years that you 23 may take this tax credit, and you must agree at 2735 1 the time of getting the credit that you will 2 keep the employee double the amount of whatever 3 time you keep that you take the credit you must 4 keep that new employee. 5 The credit -- it's monitored by 6 the Office of Economic Development. I believe 7 it's every five years, and there is also a place 8 in there the Tax Commissioner can recoup the 9 money should a company either not live up to its 10 expectations or the employee is no longer there 11 or whatever other condition there is. 12 SENATOR NOZZOLIO: If the Senator 13 will continue to yield? 14 ACTING PRESIDENT FARLEY: I'm 15 confident she will. Senator Jones? 16 SENATOR JONES: Yes. 17 SENATOR NOZZOLIO: Thank you, 18 Senator. Senator, so that in order to achieve 19 the credit, you must produce a job. How long in 20 duration does the job have to be guaranteed for 21 the credit to be viable? 22 SENATOR JONES: Senator, it's in 23 relation to how long the employer takes the tax 2736 1 credit. For instance, the employer must agree 2 to keep the tax -- if he takes the credit for 3 ten years, he must agree to keep the employee 4 double whatever amount of time he takes that tax 5 credit. 6 SENATOR NOZZOLIO: So that the 7 employer, as I understand your amendment, 8 Senator, must guarantee a 20-year duration if he 9 takes a 10-year credit. 10 SENATOR JONES: That's right, 11 Senator. 12 SENATOR NOZZOLIO: Let me take 13 this one step further and try to put it in the 14 form of a question. If an employer takes this 15 credit, he must guarantee operations ten years 16 beyond what he can project. He must guarantee 17 this job that he took the credit for for a full 18 ten years. Is that correct? 19 SENATOR JONES: If that's what he 20 takes the credit for, Senator, but he is not 21 obligated to keep the credit for that period of 22 time. 23 Let me just add to that, 2737 1 Senator. It's basically the employment level. 2 It's not necessarily John Smith, but it's the 3 level of the number of employees that he has or 4 agrees to have at that point. 5 SENATOR NOZZOLIO: Thank you, 6 Senator. 7 Mr. President, on the amendment. 8 ACTING PRESIDENT FARLEY: Senator 9 Nozzolio on the amendment. 10 SENATOR NOZZOLIO: Mr. 11 President. I believe we all support the 12 concepts of additional credits and tax breaks 13 for businesses to produce jobs. However, what 14 I'm concerned with in this particular amendment 15 is an extremely onerous requirement that the 16 taker of the credit not only support this job 17 for a period of time of the credit but support 18 the job for twice the period of time of the 19 credit. By doing so, you are requiring an 20 employer to predict the economic conditions of 21 his business or her business for an additional 22 potentially ten years beyond the tax advantages 23 that are being proposed. No employer, no 2738 1 economist, certainly at the state level and I 2 doubt at even the federal level, could make such 3 a prediction. That's what concerns me about 4 this particular provision, Mr. President. 5 I believe it's well intentioned; 6 however, I think the requirement upon an 7 employer will produce a counter result that, in 8 effect, the credit will become meaningless by 9 having such an onerous requirement. I am also 10 concerned that there is potentially an undue 11 bureaucratic power authorized by this provision, 12 Mr. President, my colleagues, that the 13 Commissioner of Economic Development basically 14 determines whether this tax credit is or is not 15 viable. That may in practicality not be 16 difficult; however, as we're proposing less and 17 less regulation on business and less and less 18 bureaucratic review of our businesses, I think 19 that the paperwork requirement alone that I 20 predict, compliance of this tax credit proposal 21 would be so onerous it wouldn't be worth seeking 22 the credit. 23 I have no quarrel with the 2739 1 sponsor's intentions, but I think what we have 2 on paper here is a provision that's not going to 3 work, that will be counterproductive, that will 4 be sending a positive signal to business 5 politically but, in practicality, be just 6 another burden to business that we're trying to 7 eliminate. 8 For that reason, I question the 9 wisdom of this amendment, Mr. President. 10 ACTING PRESIDENT FARLEY: Senator 11 Jones. 12 SENATOR JONES: Yes, on the 13 amendment. I just would like to clarify a 14 couple of points that Senator Nozzolio made. 15 First of all, the employer is not 16 obligated to take it ten years, five years, it's 17 entirely in his hands. He can guarantee it for 18 one year, two years. The option is entirely up 19 to the employer himself. 20 What we're really offering is 21 just another option. It's entirely in his hands 22 whether or not he chooses to go for this 23 credit. As we well know, there are other 2740 1 investment tax credits out there. 2 So this is really just an 3 additional incentive which as far as I can see 4 is entirely up to the employer what he wants to 5 do with it. No one is telling him that he has 6 to take this for ten years and keep the 7 employment up for 20. He can say I want this 8 for one year; and, again, it obligates him for 9 two. 10 But I think it's entirely up to 11 the employer. I think it's an additional 12 carrot, or whatever we want to call it, that 13 we're offering him to stay in New York and do 14 business, and I think it makes good sense. And, 15 again, it's entirely up to the employer. We are 16 just making him another offer to try to make New 17 York State a better place to do business. 18 ACTING PRESIDENT FARLEY: Senator 19 Dollinger. 20 SENATOR DOLLINGER: Mr. 21 President. I also want to respond to the 22 comments from my colleague from Wayne County. 23 It seems to me -- and I understand the concern 2741 1 that we not overburden our corporate taxpayers 2 with paperwork, but the fortunate thing is we 3 have an example of where it's already working, 4 where employers in the state of Ohio have said, 5 "We're willing to do whatever minimal paperwork 6 is required in order to get the benefit of this 7 tax credit and to bring new jobs to the state of 8 Ohio." 9 We're not cutting this out of 10 whole cloth or new cloth. We're cutting it out 11 of already well worn cloth. It's worked in the 12 state of Ohio. Let's take the example of Ohio, 13 follow the leadership of Ohio, follow the 14 leadership of my colleague from Monroe County. 15 Let's append this to this tax bill. Let's make 16 this available and let the employers decide 17 whether they want to do it. The evidence is 18 that they do. 19 ACTING PRESIDENT FARLEY: Senator 20 Connor. 21 SENATOR CONNOR: Yes, Mr. 22 President. I'm delighted to support this 23 amendment. 2742 1 And let me say to my colleagues 2 on the other side of the aisle we hear year-in 3 and year-out from the Republicans that taxes and 4 jobs are related. Frankly, some of us are often 5 skeptical that you just, you know, lower a whole 6 bunch of of taxes willy-nilly, and somehow 7 you'll create jobs. 8 Here's a program to test your 9 theories. Here is a program to show that when 10 there are tax benefits employers will create 11 jobs. In this case, they are directly linked. 12 Let's prove to the public, prove to some of us 13 that your theories are right, but let's do it in 14 a way that we guarantee to the people, to the 15 public and to the taxpayers, that real jobs will 16 be created. 17 It's really something that I 18 believe your side of the aisle has advocated, 19 and this is a vehicle to do it that's proven to 20 work and have a direct benefit. And I think if 21 you talk to the people throughout this state, 22 jobs are uppermost on their mind, jobs, jobs, 23 jobs, and this does it. 2743 1 And I congratulate Senator Jones 2 for bringing it to the floor, for bringing such 3 a proven, innovative program to the floor of the 4 Senate. 5 ACTING PRESIDENT FARLEY: All in 6 favor of the amendment, please say aye. 7 SENATOR GOLD: Party vote in the 8 affirmative. 9 SENATOR PRESENT: Party vote in 10 the negative. 11 ACTING PRESIDENT FARLEY: Call 12 the roll on a party vote. 13 (The Secretary called the roll.) 14 THE SECRETARY: Ayes 24. Nays 15 34. Party vote. 16 ACTING PRESIDENT FARLEY: The 17 amendment is not accepted. 18 Read the last section of the 19 bill. 20 SENATOR LEICHTER: Mr. 21 President. 22 ACTING PRESIDENT FARLEY: Senator 23 Leichter. 2744 1 SENATOR LEICHTER: Yes, thank 2 you, Mr. President. 3 ACTING PRESIDENT FARLEY: You're 4 welcome. 5 SENATOR LEICHTER: Would Senator 6 Stafford yield please? 7 ACTING PRESIDENT FARLEY: Senator 8 Stafford, would you yield to a question from 9 Senator Leichter? 10 SENATOR STAFFORD: (Indicating 11 yes.) 12 SENATOR LEICHTER: Senator 13 Stafford, I'm interested in Section 3 (d), which 14 amends Chapter 418 -- amends Section 418 of 15 Chapter 57 of the Laws of 1993. As I read this, 16 it seems to make a provision where we provided 17 -- certain tax that we provided as to property 18 that went into service on or after April 1, 19 1993, and now you are excepting property where 20 certain conditions were met before April 1, 21 1993. I just wonder if there is some specific 22 property in some specific business that you are 23 seeking to benefit by this provision? 2745 1 SENATOR STAFFORD: Just summarize 2 your question, please, a little? 3 SENATOR LEICHTER: Yes, I would 4 be interested in knowing if there is a specific 5 business that you are seeking to benefit by this 6 provision? What's the rationale? 7 SENATOR STAFFORD: Which 8 provision? 9 SENATOR LEICHTER: Section 3 (d), 10 Senator, it's on page 2, starts on line 35. 11 SENATOR STAFFORD: In all of that 12 section? 13 A couple of businesses' plants 14 were just about ready to be used, go in effect, 15 and this, in effect, allows them, but investment 16 tax credit was cut off as of April 1, 1993. 17 SENATOR LEICHTER: Right. I read 18 that, too, Senator. That was exactly my reading 19 of it. And my question to you is what are those 20 businesses you are seeking to benefit? 21 You obviously have some 22 businesses in mind. We ought to know who they 23 are. 2746 1 SENATOR STAFFORD: There were 2 some cogeneration projects that we have 3 throughout our state, and they had worked this 4 out with the tax department. 5 SENATOR LEICHTER: Are you saying 6 the tax department is supporting this 7 provision? 8 SENATOR STAFFORD: They helped to 9 draft it, and they have been in negotiations. I 10 think you have to ask them. 11 SENATOR LEICHTER: Well, Senator, 12 I'm not sponsoring the bill as you are. I'm not 13 up here defending the bill as you are. I'm not 14 as knowledgeable about the bill as I assume you 15 are. You made some reference to the tax 16 department, and then you said go ask them. Is 17 the tax department supporting this provision? 18 SENATOR STAFFORD: I would, as I 19 said earlier -- that they were involved with the 20 negotiations, I understand, and they also were 21 involved in the drafting. Now, whether they are 22 going to officially support this legislation, 23 you would have to speak -- I think there are 2747 1 some vagaries and vicissitudes that might be 2 present before any agency right now would be 3 supporting it in the executive branch, in all 4 fairness to them. 5 SENATOR LEICHTER: Mr. 6 President. If Senator Stafford would be good 7 enough to continue to yield. 8 ACTING PRESIDENT FARLEY: I'm 9 confident he will. Senator Stafford. 10 SENATOR LEICHTER: Senator, other 11 than these cogeneration plants, are there any 12 other businesses that you are aware of for whom 13 this particular provision has been tailored and 14 seeks to benefit? 15 SENATOR STAFFORD: No. 16 SENATOR LEICHTER: You do not 17 know whether there are any or there are none. 18 SENATOR STAFFORD: No, I 19 didn't -- N-O, no. 20 SENATOR LEICHTER: No what? 21 SENATOR STAFFORD: Other 22 businesses. 23 SENATOR LEICHTER: There are no 2748 1 other businesses that you know of? 2 And where are these cogeneration 3 plants located, Senator, that you referred to? 4 SENATOR STAFFORD: I believe the 5 sites are in Onondaga and Columbia County. 6 SENATOR LEICHTER: Senator, if 7 you would be good enough to yield just to one or 8 two other questions. There is a provision in 9 your tax bill which lowers the tax on beer. Can 10 you tell us what the total cost of that tax 11 reduction would be? 12 SENATOR STAFFORD: It's 15 13 million per year. But if you will allow me to 14 answer with a few more points, I think you will 15 find that in this state indication of the 16 problems we're having. If you lived in the 17 county of Oswego or the county of Fulton or the 18 county of Onondaga, very possibly, and you 19 received a notice that the brewery is closing, 20 "We're leaving, we're not here any more," 21 that's what happened with Miller. I remember 22 the great day it was that they opened. 23 Unfortunately, they are leaving. How many jobs 2749 1 is that, by the way? It's large. 2 Go ahead. 3 SENATOR LEICHTER: Senator, so 4 what you are saying is that the cost of this 5 particular amendment to the state treasury would 6 be $15 million on an annual basis? 7 SENATOR STAFFORD: Yes. 8 SENATOR LEICHTER: Okay. Thank 9 you. 10 SENATOR STAFFORD: Thank you. 11 ACTING PRESIDENT FARLEY: Senator 12 Leichter on the bill. 13 SENATOR LEICHTER: Mr. 14 President. Colleagues. I'm just concerned 15 where we get bills such as this one and the bill 16 that previously passed that this is supposed to 17 be a chapter amendment to without our having an 18 overall economic plan, without it being part of 19 a budget which takes a look at those things that 20 the State of New York needs to do and that we 21 need to have money for. 22 You know, the people on the other 23 side of the aisle -- and Senator Stafford is a 2750 1 very articulate spokesperson for this view that 2 we have to improve the business climate. None 3 of us disagree with you. 4 What I have a problem with is 5 when you announce this like a man-trap. We have 6 to improve the business climate without putting 7 forward bills that give us a clear indication 8 that your program, in fact, is going to create 9 jobs, is going to improve business, without 10 taking a look to see what this means for the 11 revenue of the State of New York and whether we 12 can deal with the infrastructure, with all of 13 the other things that are necessary for 14 businesses to succeed in the State of New York. 15 It's more than just reducing 16 corporate taxes. There are lot of other things 17 that need to be done, and I don't see that those 18 are being addressed by the Republican majority. 19 Frankly, this seems sort of like a helter 20 skelter approach. Well, cut this tax. Cut that 21 tax. Maybe somebody in their district has a 22 business, and they once overheard somebody at 23 the country club say, "Oh, you know, taxes are 2751 1 too high," and so on. 2 I mean Senator Stafford gets up 3 and he says, "Breweries have closed." Senator, 4 we lost an enormous number of breweries before 5 we raised the tax on beer. I would say most of 6 the breweries we loss were before this 7 particular increase of the tax on beer. I don't 8 know if there is any relationship between the 9 closing of that brewery and the increase in 10 taxes, which, by the way, I think many of the 11 people on this side of the aisle have voted 12 against. 13 You know, in part, your amendment 14 is sort of the mea culpa. All these taxes that 15 you voted for over the last few years, then you 16 come back one or two years later with bills 17 which are usually one-house bills to try to 18 eliminate those taxes. So we're very much in 19 favor of a good program to help business in this 20 state to create jobs, but it can't be the sort 21 of the bills like the bill you presented 22 yesterday, Senator -- in fact, afterwards, when 23 I looked at it, and I was very strong in support 2752 1 of providing monies for communities such as 2 Plattsburgh which have lost military bases, then 3 I realized there is nothing in the bill that 4 even obligated UDC to make any monies available 5 to that particular community. They could have, 6 under that bill, given the money to a lot of 7 other communities, and that's the problem. 8 I don't see a well thought out 9 plan. Now, maybe I see a good political plan. 10 I'm not arguing with that. I think you people 11 are very skillful in that. But do we have 12 something here that really is going to benefit 13 the people of the State of New York by creating 14 economic stimulus, by creating jobs? I don't 15 think so. 16 Read the last section of the 17 bill. 18 THE SECRETARY: Section 11. This 19 act shall take effect - 20 SENATOR GOLD: Mr. President. 21 ACTING PRESIDENT FARLEY: Call 22 the roll. 23 SENATOR GOLD: Mr. President. 2753 1 ACTING PRESIDENT FARLEY: Senator 2 Gold. 3 SENATOR GOLD: I will be very 4 brief in closing, because it really isn't 5 necessary to repeat what we have been saying on 6 this side of the aisle on this issue. 7 Senator Leichter used a number of 8 key phrases which really tell what it is; in 9 other words, what does this mean? Well, what 10 does it mean to business? What does it mean to 11 the entire budget process, to every person in 12 this state? 13 Breweries have closed. I can 14 tell you right now that the closing of a brewery 15 has a much, much more dramatically damaging 16 effect on every worker in that brewery than the 17 person who happens to be the CEO, the chairman 18 of the board, who obviously has concerns and 19 obviously will suffer. But if you want to 20 measure the suffering, look at the working 21 people. Look at the working people, you will 22 measure the suffering. 23 So in saying that, am I saying 2754 1 that these things are bad? I will tell you what 2 is bad. What is bad without pointing a finger 3 and without assigning the blame is the fact that 4 we are not presented with a budget that is put 5 together. 6 We have a Comptroller of this 7 state, who I happen to think is a terrific guy 8 and a very talented person, which is more 9 important, who tells us that there are greater 10 numbers in the surplus than some other people. 11 Well, if that's the case, it might just be that 12 some of the tax suggestions of a Senator Jones 13 from Rochester, tax reduction suggestions, I 14 mean, and some of the suggestions from other 15 people in this side have meaning. It may be 16 that within that framework, we can have 17 significant tax relief that helps business, that 18 helps workers, that helps jobs, but that also 19 takes care of programs for people who need that 20 extra little bit help to live on a day-to-day 21 basis. 22 And all this conference has said 23 is that we are not anti this or anti that. This 2755 1 conference has said we got to take a look at a 2 budget like every other normal human being in 3 America would look at a budget when they were 4 dealing with their own household, and that is, 5 what are we talking about with income and what 6 are the expenses? 7 But this itsy-bitsy business and 8 this posturing, it is too late to posture. I 9 can't resent a Republican majority that wants to 10 posture on the budget in January or February, 11 but this is not even March. It's April. Why 12 are we posturing? Is it because we haven't been 13 overrun yet by the local school boards that have 14 done that to us in the past, whose budgets you 15 are putting in jeopardy; or that we haven't been 16 overrun by other groups? We shouldn't have to 17 wait for that. 18 The time of posturing is very 19 much over, and it is dangerous. Getting a 20 budget put together is essential. And when that 21 budget comes out if there are programs in it 22 such as will help business and thereby help 23 working people and there are programs in there 2756 1 that give the proper kind of tax relief not only 2 to businesses but also to individuals, and there 3 are programs in there that help the working 4 poor, we can look at a budget and very proudly 5 join in if it's appropriate and vote for it. 6 But I voted against the original 7 and I'm going to vote against this and Senator 8 Connor joined me with Senator Espada and Galiber 9 and Kruger and Leichter and Markowitz and Mendez 10 and Ohrenstein and Onorato and Paterson and 11 Smith, Stavisky and Waldon, and I urge us to do 12 the same thing until the time comes that we have 13 a budget in front of us that makes sense as a 14 totality. 15 ACTING PRESIDENT FARLEY: You can 16 read the last section. 17 THE SECRETARY: Section 11. This 18 act shall take effect on the same date as the 19 Chapter of the Laws of 1994. 20 ACTING PRESIDENT FARLEY: Call 21 the roll. 22 (The Secretary called the roll.) 23 ACTING PRESIDENT FARLEY: Senator 2757 1 Daly to explain his vote. 2 SENATOR DALY: Yes. Mr. 3 President. I'm delighted to have the Minority 4 join us in a cry to change the business climate 5 in New York State and make it better. I 6 certainly commend the effort. 7 However, I would remind my 8 colleagues that the bill that passed the Senate 9 about three weeks ago cut business taxes by 10 almost $700 million. And now because of 11 negotiations with the Governor and the Assembly, 12 that has been reduced down to $400 million. To 13 me, that would indicate that the state might 14 better be served if the Minority members on the 15 other side joined us in our discussions with the 16 Assembly to try to get even the $400 million tax 17 cuts that passed this house. 18 So I commend them for their 19 interests and their concern. I would hope they 20 would help us, help the state by impressing upon 21 their party members in the other house the need 22 to improve the business climate in New York 23 State by the methods that this house has passed 2758 1 and certainly has strongly demonstrated that it 2 believes in. 3 I vote yes. 4 ACTING PRESIDENT FARLEY: 5 Results. 6 THE SECRETARY: Those recorded in 7 the negative on Calendar Number 601 are Senators 8 Connor, Espada, Galiber, Gold, Kruger, 9 Markowitz, Mendez, Montgomery, Ohrenstein, 10 Onorato, Smith, Waldon, also Senator Leichter. 11 Ayes 45. Nays 13. 12 ACTING PRESIDENT FARLEY: The 13 bill is passed. 14 Senator Present. 15 SENATOR PRESENT: Mr. President. 16 Any housekeeping? 17 ACTING PRESIDENT FARLEY: Yes, we 18 do. Senator Holland has a motion, I believe. 19 SENATOR HOLLAND: Mr. President. 20 On page 20, I offer the following amendments to 21 my bill, Calendar Number 632, Senate Print 22 Number 207, and ask the said bill retain its 23 place on the Third Reading Calendar. 2759 1 ACTING PRESIDENT FARLEY: Without 2 objection. 3 Any other motions? 4 Senator Dollinger. 5 SENATOR DOLLINGER: Point of 6 order. Did we do 607 or has that bill been laid 7 aside? 8 ACTING PRESIDENT FARLEY: It's 9 been laid aside. 10 SENATOR DOLLINGER: Thank you, 11 Mr. President. 12 ACTING PRESIDENT FARLEY: Any 13 other motions on the floor? 14 Seeing none, Senator Present. 15 SENATOR PRESENT: Mr. President. 16 On behalf of Senator Levy, I would like to 17 announce an immediate conference of the Majority 18 in Room 332. 19 ACTING PRESIDENT FARLEY: There 20 will be an immediate meeting of the Majority for 21 a conference in Room 332. 22 SENATOR PRESENT: Mr. President. 23 There being no further business, I move that we 2760 1 adjourn until Monday, April 25, at 3:00 p.m., 2 intervening days being legislative days. 3 I would also advice the members 4 that they are subject to the call of the 5 Majority Leader upon receiving 24 hours' notice. 6 ACTING PRESIDENT FARLEY: The 7 Senate will stand adjourned until Monday at 3:00 8 p.m. All members will be subject to a 24-hour 9 call from the Majority Leader. 10 Senate stands adjourned. 11 (Whereupon, at 1:17 p.m., Senate 12 adjourned.) 13 14 15 16 17 18 19 20 21