Wednesday, June 3, 1998

1 2 3 4 5 6 7 8 9 ALBANY, NEW YORK 10 June 3, 1998 11 11:02 a.m. 12 13 14 REGULAR SESSION 15 16 17 18 SENATOR JOHN R. KUHL, JR., Acting President 19 STEVEN M. BOGGESS, Secretary 20 21 22 23 24 25 1 P R O C E E D I N G S. 2 ACTING PRESIDENT KUHL: The 3 Senate will come to order. Ask the members to 4 take their places, staff to take their places, 5 please. Ask everybody in the chamber to rise 6 and join with me in saying the Pledge of 7 Allegiance, and please remain standing for the 8 invocation. 9 (The assemblage repeated the 10 Pledge of Allegiance to the Flag.) 11 We're very pleased to be joined 12 by the Reverend Dr. Dennis Meyer of Our 13 Redeemer Lutheran Church of Scotia, New York. 14 Reverend Meyer for the invocation. 15 REVEREND MEYER: I thank you 16 for the invitation. Like to take this 17 opportunity just for the moment to introduce 18 my daughter Megan, who is here with me today. 19 Let us pray. 20 Creator of an infinite variety, 21 You must love our diversity. Teach us to 22 value our differing abilities, to find ways to 23 include everyone into the fullness of our 24 human community so that all can participate 25 and contribute to this society. 1 Creator of an ordered and 2 harmonious cosmos, You willed that all things 3 exist in exquisite interdependence. Guide us 4 to find responsible ways to care for others 5 and to accept our needs for their gifts. 6 Creator of each and every 7 individual thing, you have endowed all of us 8 with a precious and unique identity. Help us 9 to guard the independence and dignity of every 10 human being. On this Disability Awareness 11 Day, show us the way that people with 12 disabilities and those who are temporarily 13 able can work together with You to build a 14 better world for all of us. 15 You have called us to ventures 16 of which we can not see the ending by paths as 17 yet untrodden through perils unknown. Bless 18 the Senate of New York State and the people of 19 this state. Give us faith to move forward 20 with good courage knowing that Your hand is 21 leading us and Your love supporting us. 22 Amen. 23 ACTING PRESIDENT KUHL: The 24 reading of the Journal. 25 THE SECRETARY: In Senate, 1 Tuesday, June 2nd. The Senate met pursuant to 2 adjournment. The Journal of Monday, June 1st, 3 was read and approved. On motion, Senate 4 adjourned. 5 ACTING PRESIDENT KUHL: Hearing 6 no objection, the Journal stands approved as 7 read. 8 Presentation of petitions. 9 Messages from the Assembly. 10 Messages from the Governor. 11 Reports of standing committees. 12 Reports of select committees. 13 Communications and reports from 14 state officers. 15 Motions and resolutions. The 16 Chair recognizes Senator Maziarz. 17 SENATOR MAZIARZ: Thank you 18 very much, Mr. President. 19 Mr. President, on behalf of 20 Senator Rath, on page 19 I offer the following 21 amendments to Calendar Number 638, Senate 22 Print Number 6485, and ask that said bill 23 retain its place on the Third Reading 24 Calendar. 25 ACTING PRESIDENT KUHL: 1 Amendments to Calendar Number 638 are received 2 and adopted. The bill will retain its place 3 on the Third Reading Calendar. 4 Senator Maziarz. 5 SENATOR MAZIARZ: Thank you, 6 Mr. President. 7 Again on behalf of Senator 8 Rath, on page number 37, I offer the following 9 amendments to Calendar Number 1010, Senate 10 Print Number 5383-B and ask that said bill 11 retain its place on Third Reading Calendar. 12 ACTING PRESIDENT KUHL: 13 Amendments to Calendar Number 1010 are 14 received and adopted. The bill will retain 15 its place on the Third Reading Calendar. 16 Senator Maziarz. 17 SENATOR MAZIARZ: Thank you, 18 Mr. President. 19 On behalf of Senator Goodman, 20 on page 42 I offer the following amendments to 21 Calendar Number 1090, Senate Print 6988, and 22 ask that said bill retain its place on the 23 Third Reading Calendar. 24 ACTING PRESIDENT KUHL: 25 Amendments to Calendar Number 1090 are 1 received and adopted. The bill will retain 2 its place on the Third Reading Calendar. 3 Senator Maziarz. 4 SENATOR MAZIARZ: Thank you 5 again, Mr. President. 6 On page number 43, on behalf of 7 Senator Goodman, I offer the following 8 amendments to Calendar Number 1093, Senate 9 Print 7317, and ask that said bill retain its 10 place on the Third Reading Calendar. 11 ACTING PRESIDENT KUHL: 12 Amendments to Calendar Number 1093 are 13 received and adopted, and the bill will retain 14 its place on the Third Reading Calendar. 15 Senator Skelos. 16 SENATOR SKELOS: Mr. President, 17 I believe there are 12 resolutions at the 18 desk, by Senator Wright. May we have the 19 titles read and move for their immediate 20 adoption. 21 ACTING PRESIDENT KUHL: Would 22 you like to do that in one motion, Senator 23 Skelos? 24 SENATOR SKELOS: Yes. 25 ACTING PRESIDENT KUHL: 1 Secretary will read the titles to the 12 2 privileged resolutions, by Senator Wright, 3 which are at the desk, and then we will take a 4 motion to adopt them at one time. 5 Secretary will read. 6 THE SECRETARY: By Senator 7 Wright, Legislative Resolution honoring 8 Elizabeth Doran, Reporter, Syracuse 9 Newspapers, upon the occasion of her 10 designation as the recipient of New York 11 State's 1998 United States Small Business 12 Administration Media Advocate of the Year 13 Award. 14 By Senator Wright, Legislative 15 Resolution honoring Sylvia F. Patterson, 16 independent television producer, upon the 17 occasion of her designation as the recipient 18 of New York State's 1998 United States Small 19 Business Administration Media Advocate of the 20 Year Award. 21 By Senator Wright, Legislative 22 Resolution honoring Roslyn D. Goldmacher, 23 Executive Director of the Long Island 24 Development Corporation, upon the occasion of 25 her designation as the recipient of New York 1 State's 1998 United States Small Business 2 Administration's Financial Services Advocate 3 of the Year Award. 4 By Senator Wright, Legislative 5 Resolution honoring Olga Cohen, President of 6 Olga G. Marcus Cosmetics, Inc., upon the 7 occasion of her designation as the recipient 8 of New York State 1998 United States Small 9 Business Administration Small Business 10 Exporter of the Year Award. 11 By Senator Wright, Legislative 12 Resolution honoring Lawrence A. Castiglia, 13 President of Tennyson Machine Company, Inc., 14 upon the occasion of his designation as 15 recipient of New York State's 1998 United 16 States Small Business Administration's Small 17 Business Person of the Year Award. 18 By Senator Wright, Legislative 19 Resolution honoring Jeanie D. Roberts, 20 Executive Director of the American Red Cross, 21 Clinton Northern Essex Chapter upon the 22 occasion of her designation as the recipient 23 of New York State's 1998 United States Small 24 Business Administration's Phoenix Award. 25 By Senator Wright, Legislative 1 Resolution honoring Jason Levinthal, President 2 of Line Skiboards Manufacturing, Inc., upon 3 the occasion of his designation as the 4 recipient of New York State's 1998 United 5 States Small Business Administration's Small 6 Business Exporter of the Year Award. 7 By Senator Wright, Legislative 8 Resolution honoring Dorothy C. Johnson, 9 President of Johnson Securities, Inc., upon 10 the occasion of her designation as the 11 recipient of New York State's 1998 United 12 States Small Business Administration Minority 13 Small Business Advocate of the Year Award. 14 By Senator Wright, Legislative 15 Resolution honoring William G. Ballard, 16 President of Norwich Aero Products, Inc., upon 17 the occasion of his designation as the 18 recipient of New York State's 1998 United 19 States Small Business Administration Small 20 Business Person of the Year Award. 21 By Senator Wright, Legislative 22 Resolution honoring David Terrenzio, Senior 23 Vice-president and Senior Loan Officer of the 24 New York State Business Development 25 Corporation and the Empire State Certified 1 Development Corporation, upon the occasion of 2 his designation as the recipient of New York 3 State's 1998 United States Small Business 4 Administration Financial Services Advocate of 5 the Year Award. 6 By Senator Wright, Legislative 7 Resolution honoring Brenda L. Copeland, 8 President and Director of the Bank of Castile, 9 upon the occasion of her designation as the 10 recipient of New York State's 1998 United 11 States Small Business Administration's 12 Financial Services Advocate of the Year 13 Award. 14 And by Senator Wright, 15 Legislative Resolution honoring Ursula 16 Rickenbacher, President and Chief Executive 17 Officer of Ursula of Switzerland, upon the 18 occasion of her designation as the recipient 19 of New York State's 1998 United States Small 20 Business Administration Phoenix Award. 21 ACTING PRESIDENT KUHL: The 22 question is on the resolutions. All those in 23 favor signify by saying aye. 24 (Response of "Aye.") 25 Opposed nay. 1 (There was no response. ) 2 The resolutions are adopted. 3 Senator Skelos. 4 SENATOR SKELOS: Mr. President 5 there is a resolution at the desk sponsored by 6 Senator Libous which was adopted on Monday. 7 May we please have it read in its entirety. 8 ACTING PRESIDENT KUHL: There 9 is a privileged resolution by Senator Libous 10 at the desk. I'll ask the Secretary to read 11 the resolution in its entirety. 12 THE SECRETARY: By Senator 13 Libous, Legislative Resolution commending the 14 Special Olympians upon the occasion of 15 completing the Capital District Leg of the New 16 York State Special Olympics Law Enforcement 17 Torch Run at the Opening Ceremonies marking 18 the 18th Annual Legislative Disability 19 Awareness Day Wednesday, June 3rd, 1998, at 20 the State Capitol. 21 WHEREAS, it is the intent of 22 this legislative body to recognize and pay 23 just tribute to those citizens who embody the 24 true American spirit, demonstrating personal 25 courage and conviction in pursuit of athletic 1 achievement without regard to physical 2 limitation; 3 The 18th Annual Legislative 4 Disability Awareness Day provides individuals 5 with an opportunity to acknowledge and 6 understand the needs and abilities of people 7 with disabilities throughout New York State; 8 New York State Police 9 Superintendent James W. McMahon, over 40 law 10 enforcement officers and Special Olympians 11 from across the state as they complete the 12 Capital District Leg of the New York State 13 Special Olympics Law Enforcement Torch Run, 14 will take part in the opening ceremonies of 15 the 18th Annual Legislative Disability 16 Awareness Day June 3rd, 1998; 17 The Law Enforcement Torch Run 18 for Special Olympics is an international 19 series of torch relays run by law enforcement 20 officers leading up to each state or nation's 21 summer games. Law enforcement officers raise 22 money in conjunction with their respective 23 torch runs for their local Special Olympics 24 program; 25 The Law Enforcement Torch Run 1 began in 1981 when Wichita, Kansas Police 2 Chief Richard LaMunyon saw an urgent need to 3 raise funds for an increased awareness of 4 Special Olympics. He conceived of the idea of 5 a torch run as a way to involve local law 6 enforcement personnel in the community with 7 Special Olympics. After three years of 8 successful torch runs in Kansas, he presented 9 the program to the International Association 10 of Chiefs of Police (IACP); 11 With IACP's enthusiastic 12 support and leadership, as well as the 13 involvement of all facets of the law 14 enforcement community -- Sheriffs' 15 Associations, police unions, state, county, 16 municipal, military and federal law 17 enforcement, and correction officers -- the 18 torch run expanded into seven states by 1985, 19 43 states by 1986 and 50 states and 25 nations 20 in 1997; 21 Every two years law enforcement 22 officers representing their state or nation's 23 torch run program comprise a "Final Leg Team" 24 which carries the Olympic flame into the 25 opening ceremonies of the Special Olympics 1 World Games; 2 WHEREAS, it is the sense of 3 this legislative body to recognize and applaud 4 the achievements of its citizens who would 5 elect to challenge life with uncommon valor 6 and determination, demonstrating by example 7 and purposeful action that commitment to 8 personal goals is the wellspring of self 9 fulfillment and achievement; 10 NOW, THEREFORE, BE IT RESOLVED 11 that this legislative body pause in its 12 deliberations and commend the Special 13 Olympians upon the occasion of completing the 14 Capital District Leg of the New York State 15 Special Olympics Law Enforcement Torch Run at 16 opening ceremonies marking the 18th Annual 17 Legislative Disability Awareness Day, 18 Wednesday, June 3rd, 1998 at the State 19 Capitol; and 20 BE IT FURTHER RESOLVED that 21 copies of this resolution, suitably engrossed, 22 be transmitted to selected representatives of 23 persons with disabilities. 24 ACTING PRESIDENT KUHL: As the 25 Deputy Majority Leader indicated to the 1 members, this resolution was previously 2 adopted, but the chair will recognize Senator 3 Libous at this time to speak on the 4 resolution. 5 Senator Libous. 6 SENATOR LIBOUS: Thank you, Mr. 7 President. 8 It is indeed an honor for me to 9 stand before you today on our Legislative 10 Disability Awareness Day -- and we've had a 11 full day of festivities -- and, Mr. Chairman, 12 let me first introduce to my colleagues our 13 interpreter who is standing next to me, Dale 14 Neimeyer, and we have another interpreter who 15 is taking a break right now -- and Trudy, 16 could you please stand -- Trudy Gilbert, and 17 they have been with us through the festivities 18 and are helping us to communicate what we do 19 here to those folks with disabilities. 20 Let me first say that the Torch 21 Run is a very special honor when we look at 22 the Special Olympics, and I want to say thank 23 you to Superintendent McMahon and all of the 24 members, men and women of the New York State 25 Police who participated this morning and for 1 their hard work and dedication for New York 2 State's Special Olympics, helping people with 3 disabilities. 4 Before I talk about Special 5 Olympics, I want to share that on this 6 Disability Awareness Day, over in the well, I 7 would invite my colleagues, their staff 8 members, to stop by any of the 30 exhibits. 9 Some of the exhibits are from their home 10 towns, people from their district. They'll 11 find that there are a number of interesting 12 things that they will learn in dealing with 13 and helping people in New York State and in 14 their communities with disabilities and, Mr. 15 President, I think it's important that on this 16 day and later today, we will be passing a 17 number of pieces of legislation that will help 18 people in New York who are disabled, that we 19 recognize that there are a number of folks who 20 may not be as fortunate as we are and who need 21 the extra help of government, and that's why 22 we have this very special day. 23 Let me talk just for a moment 24 and thank a few people. We have with us to 25 day up in the gallery from Special Olympics 1 Neil Johnson, who is the CEO of New York 2 State's Special Olympics. We have also a 3 couple of our Special Olympian athletes, Ezra 4 Canty and Kevin Brown, and I would like Ezra 5 and Kevin just to stand for a minute because, 6 as I speak on this resolution, many of you 7 might have seen Ezra's picture just a few 8 months ago because he was with Governor Pataki 9 and his picture is now on the Wheaties box as 10 Wheaties is honoring New York State's Special 11 Olympians, and Ezra was honored to have his 12 picture, along with four other athletes, on 13 that box. 14 So we salute both of you today 15 as we honor our Special Olympians. 16 We also have the Chairman of 17 the Board and individual who is from the 18 United Teachers, Tony Bifaro, who has been 19 very dedicated, and the United Teachers have 20 been extremely dedicated to the Special 21 Olympics for another year and, Tony, thank you 22 for joining us today. 23 Mr. President, the Torch Run is 24 very significant to the entire Special Olympic 25 program because these Special Olympians 1 participate throughout New York State on a 2 number of different week ends, a number of 3 different days, and I think all too often the 4 goals of Special Olympics are overlooked 5 because those of us who are in this chamber 6 feel that Special Olympics might be just one 7 day in their district. It is indeed a number 8 of days, many days throughout New York State, 9 and it was indeed a pleasure to have the torch 10 come through, and I know that at 12:00 o'clock 11 noon today, Mayor Jennings is also having a 12 ceremony at his office. 13 ACTING PRESIDENT KUHL: Thank 14 you, Senator Libous. 15 On behalf of Senator Bruno and 16 Senator Libous and all the members of the 17 chamber, we welcome these very distinguished 18 guests to the chamber who are joining us on 19 this special Disability Awareness Day. Enjoy 20 your stay in the Capitol and keep doing what 21 you're doing. We appreciate it and we're with 22 you and, if you'd like to stand, we'd like to 23 recognize you. I'm sure the members of the 24 chamber would love to see all of you who are 25 here. 1 (Applause) 2 The Secretary will read the 3 other privileged resolution at the desk. 4 THE SECRETARY: By Senator 5 Libous, Legislative Resolution commending 6 Bonnie Snapp upon the occasion of her 7 competing in the Special Olympics of New York 8 State. 9 WHEREAS, it is the intent of 10 this legislative body to recognize and pay 11 just tribute to those citizens who embody the 12 true American spirit, demonstrating personal 13 courage and conviction in their pursuit of 14 athletic achievement without regard to 15 physical limitation; 16 This legislative body is justly 17 proud to honor Bonnie Snapp upon the occasion 18 of her competing in the Special Olympics of 19 New York State; 20 Bonnie Snapp has been 21 participating in Special Olympics since she 22 was six years old. She has attended area, 23 sectional and state events, competed in 24 soccer, bowling, swimming, volleyball, 25 basketball, track and field, floor hockey and 1 softball. She was recently chosen the 2 WBNG-Channel 12 (Binghamton) Academic All 3 Star for her participation in Special 4 Olympics; 5 Bonnie Snapp graduated from 6 Newark Valley High School as part of the Class 7 of 1997. She also graduated from Broome-Tioga 8 BOCES Commercial Foods and Work Study 9 Program. During this time she received the 10 President Academic Excellence Award; 11 Bonnie Snapp was very active in 12 4-H where she has raised lambs and works on 13 art projects. She won awards at the State 14 Fair for public speaking and for her art work; 15 Today Bonnie Snapp is employed 16 in the area of food service; 17 WHEREAS, it is the sense of 18 this legislative body to recognize and applaud 19 the achievement of its citizens who would 20 elect to challenge life with an uncommon valor 21 and determination, demonstrating by example 22 and purposeful action, that commitment to 23 personal goals is the wellspring of self 24 fulfillment and achievement; 25 NOW, THEREFORE, BE IT RESOLVED 1 that this legislative body pause in its 2 deliberations to commend Bonnie Snapp upon the 3 occasion of her competing in the Special 4 Olympics of New York State; and 5 BE IT FURTHER RESOLVED that a 6 copy of this resolution, suitably engrossed, 7 be transmitted to Bonnie Snapp. 8 ACTING PRESIDENT KUHL: The 9 Chair recognizes Senator Libous, on the 10 resolution. 11 SENATOR LIBOUS: Thank you, Mr. 12 President. 13 Again it's indeed an honor for 14 me to stand, and, Bonnie, I'm going to ask you 15 to stand if you would please, while I make 16 some brief remarks honoring you. 17 Bonnie is an outstanding young 18 woman. She has done an extraordinary job. 19 She told me earlier today -- we did a 20 television show, and she shared with me that 21 she began in Special Olympics, her first grade 22 teacher got her interested, and I said to 23 Bonnie, "What is most exiting about the 24 Special Olympics program?" and she said, "You 25 know, it gives me self-esteem and self 1 respect, and I just enjoy participating, and," 2 she says, "winning isn't too bad either," and 3 certainly she has won her share as you can see 4 by the medals that she is displaying around 5 her neck. 6 We talked a little bit about 7 some of the activities she participates in and 8 Bonnie likes soccer, bowling, swimming, 9 volleyball, basketball, track and field 10 events, floor hockey and softball, and again I 11 shared this this morning at the event, and I 12 asked Bonnie what is her favorite sport and 13 she said basketball, and I said, "Why?" 14 Bonnie then shared with me, she said, "I like 15 when the ball swishes through the net." She 16 says, "I feel like Michael Jordan," and I 17 shared with her that probably a number of the 18 members of the NBA wished they also would feel 19 like Michael Jordan from time to time. 20 Bonnie is also a bright young 21 lady because, as was mentioned in the 22 resolution, she has passed a number of 23 courses, received awards from the President of 24 the United States, received awards from local 25 businesses and, Mr. President, I think that 1 Bonnie is indicative of the type of individual 2 that we have in our Special Olympics program 3 and, Bonnie, I'm extremely proud to say that 4 you come from my district and, after hearing 5 you speak this morning, I hope that you are 6 not interested in running for public office 7 because you'd have the crowds to their feet, 8 and I want to welcome again Bonnie and she has 9 a couple of people with her I'd like to 10 introduce. Her mother Linda is with her today 11 and if she would stand, and two very good 12 friends of mine and very, very good friends of 13 all the Special Olympians, the two individuals 14 who have been so dedicated in their life to 15 the Broome-Tioga Special Olympics, John and 16 Jane Crosby. Would they stand up and take a 17 bow. 18 Mr. President, again on this 19 Legislative Disability Awareness Day, it is 20 indeed an honor for this body to honor these 21 outstanding individuals. 22 ACTING PRESIDENT KUHL: Thank 23 you, Senator Libous. 24 For the members' benefit, this 25 resolution was previously adopted, but on 1 behalf of Senator Bruno, Senator Libous, all 2 the members of the chamber, Bonnie, we welcome 3 you to the chamber. We congratulate you on 4 your many victories, certainly your courageous 5 participation in all the events that you've 6 done. We urge you to continue and make a 7 contribution, as we know you will, to life and 8 to New York State. 9 Thank you for sharing just a 10 small moment of your life with us today. 11 Thank you. 12 (Applause) 13 Senator Velella. 14 SENATOR VELELLA: Mr. President 15 can we now go to the controversial calendar - 16 non-controversial calendar, starting with 17 Calendar Number 1. 18 ACTING PRESIDENT KUHL: 19 Secretary will read Calendar Number 1 off of 20 the controversial calendar. 21 THE SECRETARY: Calendar Number 22 1, by Senator Libous, Senate Print 1122-A, an 23 act to amend the Vehicle and Traffic Law, in 24 relation to parking spaces for handicapped 25 persons. 1 ACTING PRESIDENT KUHL: 2 Secretary will read the last section. 3 THE SECRETARY: Section 3. 4 This act shall take effect on the first day of 5 September. 6 ACTING PRESIDENT KUHL: Call 7 the roll. 8 (The Secretary called the 9 roll. ) 10 THE SECRETARY: Ayes 49. 11 ACTING PRESIDENT KUHL: The 12 bill is passed. 13 THE SECRETARY: Calendar Number 14 2, by Senator Libous, Senate Print 3831, an 15 act to amend the Mental Hygiene Law and the 16 Executive Law, in relation to authorizing 17 providers of service. 18 ACTING PRESIDENT KUHL: The 19 secretary will read the last section. 20 THE SECRETARY: Section 3. 21 This act shall take effect in 90 days. 22 ACTING PRESIDENT KUHL: Call 23 the roll. 24 (The Secretary called the 25 roll. ) 1 THE SECRETARY: Ayes 49. 2 ACTING PRESIDENT KUHL: The 3 bill is passed. 4 THE SECRETARY: Calendar Number 5 332, by Senator Libous, Senate Print 1125, an 6 act to amend the Public Health Law, in 7 relation to requiring consent for visual 8 observation. 9 ACTING PRESIDENT KUHL: The 10 Secretary will read the last section. 11 THE SECRETARY: Section 2. 12 This act shall take effect immediately. 13 ACTING PRESIDENT KUHL: Call 14 the roll. 15 (The Secretary called the 16 roll. ) 17 THE SECRETARY: Ayes 49. 18 ACTING PRESIDENT KUHL: The 19 bill is passed. 20 THE SECRETARY: Calendar - 21 SENATOR VELELLA: Mr. 22 President. 23 ACTING PRESIDENT KUHL: Senator 24 Velella. 25 SENATOR VELELLAl: Can we take 1 up Calendar Number 636 at this time. 2 ACTING PRESIDENT KUHL: 3 Secretary will read Calendar Number 636. 4 THE SECRETARY: Calendar Number 5 636, by Senator Johnson, Senate Print 6337, an 6 act to amend the General Municipal Law and the 7 Education Law. 8 ACTING PRESIDENT KUHL: 9 Secretary will read the last section. 10 THE SECRETARY: Section 3. 11 This act shall take effect immediately. 12 ACTING PRESIDENT KUHL: Call 13 the roll. 14 (The Secretary called the 15 roll. ) 16 THE SECRETARY: Ayes 49. 17 ACTING PRESIDENT KUHL: The 18 bill is passed. 19 Senator Velella. 20 SENATOR VELELLA: Can we go to 21 Calendar 767, please. 22 ACTING PRESIDENT KUHL: 23 Secretary will read Calendar Number 767. 24 THE SECRETARY: Calendar Number 25 767, by Senator Skelos, Senate Print 6377, an 1 act to amend the Town Law, in relation to 2 authorizing. 3 ACTING PRESIDENT KUHL: The 4 Secretary will read the last section. 5 THE SECRETARY: Section 2. 6 This act shall take effect immediately. 7 ACTING PRESIDENT KUHL: Call 8 the roll. 9 (The Secretary called the 10 roll. ) 11 THE SECRETARY: Ayes 49. 12 ACTING PRESIDENT KUHL: The 13 bill is passed. 14 Senator Velella. 15 SENATOR VELELLA: Mr. 16 President, can we go to Calendar 1178, 17 please. 18 ACTING PRESIDENT KUHL: 19 Secretary will read Calendar Number 1178. 20 THE SECRETARY: Calendar Number 21 1178, by Senator Goodman, Senate Print 7072-B, 22 an act to amend the Education Law, in relation 23 to student financial aid. 24 ACTING PRESIDENT KUHL: 25 Secretary will read the last section. 1 THE SECRETARY: Section 2. 2 This act shall take effect immediately. 3 ACTING PRESIDENT KUHL: Call 4 the roll. 5 (The Secretary called the 6 roll. ) 7 THE SECRETARY: Ayes 51. 8 ACTING PRESIDENT KUHL: The 9 bill is passed. 10 THE SECRETARY: Senator 11 Velella. 12 SENATOR VELELLA: Mr. 13 President, can we now go back to the 14 non-controversial calendar in the regular 15 order. 16 ACTING PRESIDENT KUHL: 17 Secretary will read the non-controversial 18 calendar beginning with Calendar Number 632, 19 in regular order. 20 THE SECRETARY: Calendar Number 21 632, by Senator Cook, Senate Print 6274, an 22 act to amend the General Municipal Law, in 23 relation to establishing. 24 ACTING PRESIDENT KUHL: 25 Secretary will read the last section. 1 THE SECRETARY: Section 2. 2 This act shall take effect immediately. 3 ACTING PRESIDENT KUHL: Call 4 the roll. 5 (The Secretary called the 6 roll. ) 7 THE SECRETARY: Ayes 51. 8 ACTING PRESIDENT KUHL: The 9 bill is passed. 10 THE SECRETARY: Calendar Number 11 783, by Senator Hannon, Senate Print 7378. 12 SENATOR VELELLA: Lay that 13 aside for the day, please. 14 ACTING PRESIDENT KUHL: Lay the 15 bill aside for the day at the request of the 16 Majority Leader. 17 THE SECRETARY: Calendar Number 18 814, by Senator Saland, Senate Print 7302, an 19 act to amend the Social Service Law, in 20 relation to disclosure. 21 ACTING PRESIDENT KUHL: 22 Secretary will read the last section. 23 THE SECRETARY: Section 2. 24 This act shall take effect immediately. 25 ACTING PRESIDENT KUHL: Call 1 the roll. 2 (The Secretary called the 3 roll.) 4 THE SECRETARY: Ayes 55. 5 ACTING PRESIDENT KUHL: The 6 bill is passed. 7 THE SECRETARY: Calendar Number 8 898, by Senator Trunzo, Senate Print 7237, an 9 act to amend the Civil Service Law, in 10 relation to permitting deputy sheriffs. 11 ACTING PRESIDENT KUHL: 12 Secretary will read the last section. 13 THE SECRETARY: Section 2. 14 This act shall take effect immediately. 15 ACTING PRESIDENT KUHL: Call 16 the roll. 17 (The Secretary called the 18 roll. ) 19 THE SECRETARY: Ayes 55. 20 ACTING PRESIDENT KUHL: The 21 bill is passed. 22 THE SECRETARY: Calendar Number 23 902, by Senator Marchi, Senate Print 7412, an 24 act to amend the Education Law, in relation to 25 the right of retired members. 1 ACTING PRESIDENT KUHL: 2 Secretary will read the last section. 3 SENATOR LEICHTER: 4 Explanation. 5 ACTING PRESIDENT KUHL: Senator 6 Leichter, did you wish that bill laid aside? 7 SENATOR LEICHTER: Yes. 8 ACTING PRESIDENT KUHL: The bill 9 will be laid aside at the request of Senator 10 Leichter. 11 THE SECRETARY: Calendar Number 12 929, by Senator Volker, Senate Print 395-B. 13 SENATOR VELELLA: Lay that 14 aside. 15 ACTING PRESIDENT KUHL: Lay the 16 bill aside. 17 THE SECRETARY: Calendar Number 18 934, by Senator Velella, Senate Print 6639-B, 19 an act in relation to authorizing state of New 20 York. 21 ACTING PRESIDENT KUHL: 22 Secretary will read the last section. 23 THE SECRETARY: Section 3. 24 This act shall take effect immediately. 25 ACTING PRESIDENT KUHL: Call 1 the roll. 2 (The Secretary called the 3 roll. ) 4 THE SECRETARY: Ayes 55. 5 ACTING PRESIDENT KUHL: The 6 bill is passed. 7 THE SECRETARY: Calendar Number 8 991, by Senator Trunzo, Senate Bill 7279, an 9 act to amend the Penal Law, in relation to the 10 unlawful sale of tobacco products to a child. 11 ACTING PRESIDENT KUHL: The 12 Secretary will read the last section. 13 THE SECRETARY: Section 3. 14 This act shall take effect immediately. 15 ACTING PRESIDENT KUHL: Call 16 the roll. 17 (The Secretary called the 18 roll. ) 19 THE SECRETARY: Ayes 55. 20 ACTING PRESIDENT KUHL: The 21 bill is passed. 22 THE SECRETARY: Calendar Number 23 1001, by Senator Seward, Senate Print 6628, an 24 act to amend the Social Service Law, in 25 relation to required training for child day 1 care providers. 2 ACTING PRESIDENT KUHL: The 3 Secretary will read the last section. 4 THE SECRETARY: Section 2. 5 This act shall take effect immediately. 6 ACTING PRESIDENT KUHL: Call 7 the roll. 8 (The Secretary called the 9 roll. ) 10 THE SECRETARY: Ayes 55. 11 ACTING PRESIDENT KUHL: The 12 bill is passed. 13 THE SECRETARY: Calendar Number 14 1005, by Senator Velella, Print Number 6253-A, 15 an act to amend Chapter 435 of the Laws of 16 1895. 17 ACTING PRESIDENT KUHL: 18 Secretary will read the last section. 19 THE SECRETARY: Section 2. 20 This act shall take effect immediately. 21 ACTING PRESIDENT KUHL: Call 22 the roll. 23 (The Secretary called the 24 roll. ) 25 THE SECRETARY: Ayes 55. 1 ACTING PRESIDENT KUHL: The 2 bill is passed. 3 THE SECRETARY: Calendar Number 4 1025, by Senator Volker, Senate Print 6739-A, 5 an act to amend the Local Finance Law. 6 ACTING PRESIDENT KUHL: There 7 is a home rule message at the desk. The 8 Secretary will read the last section. 9 THE SECRETARY: Section 2. 10 This act shall take effect immediately. 11 ACTING PRESIDENT KUHL: Call 12 the roll. 13 (The Secretary called the 14 roll.) 15 THE SECRETARY: Ayes 55. 16 ACTING PRESIDENT KUHL: The 17 bill is passed. 18 THE SECRETARY: Calendar Number 19 1030, by Senator Balboni, Senate Print 7152, 20 an act in relation to authorizing the assessor 21 of the county of Nassau. 22 ACTING PRESIDENT KUHL: 23 Secretary will read the last section. 24 THE SECRETARY: Section 2. 25 This act shall take effect immediately. 1 ACTING PRESIDENT KUHL: Call 2 the roll. 3 (The Secretary called the 4 roll. ) 5 THE SECRETARY: Ayes 54, nays 6 1, Senator Cook recorded in the negative. 7 ACTING PRESIDENT KUHL: The 8 bill is passed. 9 THE SECRETARY: Calendar Number 10 1040, by Senator Seward, Senate Print 3486-A, 11 an act to amend the Public Service Law and the 12 Uniform Commercial Code. 13 SENATOR SMITH: Lay aside. 14 ACTING PRESIDENT KUHL: Lay the 15 bill aside. 16 THE SECRETARY: Calendar Number 17 1066, by Senator Leibell, Senate Print 3538-A, 18 an act to amend the Military Law. 19 ACTING PRESIDENT KUHL: 20 Secretary will read the last section. 21 THE SECRETARY: Section 2. 22 This act shall take effect immediately. 23 ACTING PRESIDENT KUHL: Call 24 the roll. 25 (The Secretary called the 1 roll. ) 2 THE SECRETARY: Ayes 55. 3 THE SECRETARY: Calendar Number 4 1089, by Senator Marcellino, Senate Print 5 6913, an act to amend the Tax Law, in relation 6 to termination of sale. 7 ACTING PRESIDENT KUHL: 8 Secretary will read the last section. 9 THE SECRETARY: Section 2. 10 This act shall take effect immediately. 11 ACTING PRESIDENT KUHL: Call 12 the roll. 13 (The Secretary called the 14 roll. ) 15 THE SECRETARY: Ayes 55. 16 ACTING PRESIDENT KUHL: The bill 17 is passed. 18 THE SECRETARY: Calendar Number 19 1106, by Senator Johnson, Senate Print 7433, 20 an act to amend the Public Authorities Law, in 21 relation to emergency contracts. 22 ACTING PRESIDENT KUHL: 23 Secretary will read the last section. 24 THE SECRETARY: Section 3. 25 This act shall take effect immediately. 1 ACTING PRESIDENT KUHL: Call 2 the roll. 3 (The Secretary called the 4 roll.) 5 THE SECRETARY: Ayes 55. 6 ACTING PRESIDENT KUHL: The bill 7 is passed. 8 THE SECRETARY: Calendar Number 9 1119, by Senator Kuhl, Senate Print 6825-A, an 10 act to amend the Agriculture and Markets Law. 11 ACTING PRESIDENT KUHL: 12 Secretary will read the last section. 13 THE SECRETARY: Section 4. 14 This act shall take effect immediately. 15 ACTING PRESIDENT KUHL: Call 16 the roll. 17 (The Secretary called the 18 roll. ) 19 THE SECRETARY: Ayes 55. 20 ACTING PRESIDENT KUHL: The 21 bill is passed. 22 THE SECRETARY: Calendar Number 23 1148, by Senator DeFrancisco, Senate Print 24 5978, an act to amend the Surrogate's Court 25 Procedure Act. 1 ACTING PRESIDENT KUHL: 2 Secretary will read the last section. 3 THE SECRETARY: Section 2. 4 This act shall take effect on the first day of 5 January. 6 ACTING PRESIDENT KUHL: Call 7 the roll. 8 (The Secretary called the 9 roll. ) 10 THE SECRETARY: Ayes 55. 11 ACTING PRESIDENT KUHL: The 12 bill is passed. 13 THE SECRETARY: Calendar Number 14 1149, by member of the Assembly Sweeney, 15 Senate Print 9211, an act to amend the Uniform 16 District Court Act. 17 ACTING PRESIDENT KUHL: 18 Secretary will read the last section. 19 THE SECRETARY: Section 2. 20 This act shall take effect immediately. 21 ACTING PRESIDENT KUHL: Call 22 the roll. 23 (The Secretary called the 24 roll.) 25 THE SECRETARY: Ayes 55. 1 ACTING PRESIDENT KUHL: The 2 bill is passed. 3 Senate Velella, that completes 4 the reading of the non-controversial 5 calendar. What's your pleasure? 6 SENATOR VELELLA: Mr. 7 President, can we go to motions and 8 resolutions, and call up Resolution Number 9 3701 which has been previously passed. Like to 10 ask that the title be read and recognize 11 Senator Maltese. 12 ACTING PRESIDENT KUHL: We'll 13 return to motions and resolutions. I'll ask 14 the Secretary to read the title to the 15 privileged resolution by Senator Maltese, 3701 16 I believe it was. Secretary will read. 17 THE SECRETARY: By Senator 18 Maltese, Legislative Resolution honoring the 19 New York City Police Sergeants upon the 20 occasion of the First Annual Legislative 21 Luncheon of the Sergeants Benevolent 22 Association. 23 ACTING PRESIDENT KUHL: Chair 24 recognizes Senator Maltese on the resolution. 25 SENATOR MALTESE: Mr. 1 President, this is an auspicious occasion not 2 only for the New York City Police Sergeants 3 but for this body. We will be recognizing by 4 this resolution, in effect, our first line of 5 defense in the city of New York, the New York 6 City Police Sergeants who supervise police 7 officers and detectives in over 200 commands 8 in the entire city of New York. 9 There has been much said about 10 the decreassing crime throughout the country 11 and throughout the City. Certainly in New 12 York City, a large part of that decrease can 13 be attributed to the heroism and dedicated 14 efforts of these fine police officers. They 15 are superior officers in every sense of the 16 word. 17 They are here today for 18 establishing a tradition, their First Annual 19 Legislative Luncheon, recognizing that more 20 and more the state Legislature has an effect 21 on their daily lives and the way they conduct 22 their fine services to the City. 23 For 70 years, they have been 24 represented by the Sergeants Benevolent 25 Association, which is the preeminent voice and 1 advocate of the New York City Police 2 Department, the Police Sergeants. They are 3 represented here in the chamber by their 4 eminent president, Joe Cole and the recording 5 secretary, Alan Carina, as well as represented 6 in the balcony by many of the officers who 7 journeyed here to Albany to hold their 8 legislative lunch, and as an indication of the 9 fact that they are also quite perceptive in 10 their legislative efforts, their luncheon 11 today will honor our esteemed Majority Leader, 12 Jos... Senator Joseph Bruno. 13 They are more than 4500 in the 14 city of New York, 4500 first line of defense, 15 defending our people in the City. We owe a 16 great debt of gratitude to them and their 17 families who permit them and work with them so 18 that they could provide the safety to the New 19 York City citizens. 20 Mr. President, I'm proud to 21 sponsor this resolution. The resolution is 22 open to any that would care to join in the 23 resolution, and I wish with your indulgence to 24 ask them to stand, the Police Sergeants to 25 stand, to be recognized by this body. 1 (Applause) 2 ACTING PRESIDENT KUHL: Senator 3 Goodman, on the resolution. 4 SENATOR GOODMAN: On the 5 resolution, Mr. President. 6 Mr. President, as you probably 7 are aware, we've had a remarkable reduction in 8 crime in the city of New York in the last 9 several years and without question, the group 10 of sergeants who are represented here today 11 are signally responsible for that outstanding 12 result. 13 The sergeants represent the 14 supervisory responsibility for the department 15 at its operating level and, without their very 16 keen and continuous oversight of what occurs 17 in the day-to-day situation in law enforcement 18 in New York, there is no question that we 19 could not have achieved this extraordinary 20 result for the citizens of the City. 21 So I join most warmly with 22 Senator Maltese, and I'm delighted that he 23 introduced the resolution. I hope that it 24 will, of course, be unanimously passed and we 25 salute the sergeants for their superb work 1 both on the line and in supervision of the 2 patrolmen who represent the key work of the 3 department. 4 We're particularly happy that, 5 as a result of action taken in this body, it 6 was possible to augment the police force, 7 putting more patrols on the street under the 8 supervision of these able sergeants. We 9 salute them and we thank them for their 10 dedicated work. 11 ACTING PRESIDENT KUHL: Is 12 there any other member wishing to speak on the 13 resolution? 14 Senator Velella, there are a 15 number of members who have indicated that they 16 would like to be co-sponsors. Should we 17 follow the standard procedure and put all of 18 the members on the resolution as co 19 sponsors? 20 SENATOR VELELLA: Yes, Mr. 21 President, and if they desire not to be, they 22 will contact the desk. 23 ACTING PRESIDENT KUHL: Anyone 24 wishing not to be a co-sponsor of Resolution 25 Number 3701, by Senator Maltese, please 1 indicate to the desk. This resolution was 2 previously adopted, but on behalf of Senator 3 Bruno, who you're honoring later at the 4 luncheon, gentlemen, Senator Maltese and all 5 the City members, certainly all the members in 6 the chamber, we welcome you to the chamber. 7 We certainly recognize the dedicated and 8 heroic service that you provide not only to 9 the citizens of the city of New York but to 10 all the citizens of this state. We compliment 11 you on that service. We are -- those of us 12 who visit the City on more than one occasion 13 are appreciative of your efforts to make the 14 City safe for not only the residents but for 15 the visitors. 16 So keep up the good work, enjoy 17 your stay here, and thank you for coming and 18 sharing just a moment with us. 19 Thank you. 20 (Applause) 21 Senator Velella. 22 SENATOR VELELLA: Would you 23 recognize Senator Mendez for a moment. 24 ACTING PRESIDENT KUHL: Chair 25 recognizes Senator Mendez. 1 SENATOR MENDEZ: Thank you, Mr. 2 President. 3 I want to take this opportunity 4 to introduce two lovely ladies that have 5 worked very, very hard in a problem that is 6 very dear to my heart. I am referring to the 7 Puerto Rican lawyer Josephine Mercado, who 8 with me are the founders of an organization 9 that is called First Saturday in October, and 10 the purpose of that organization is to provide 11 services and information to the -- those 12 under-served and unserved communities so that 13 the women realize that the earlier they go for 14 detection, when they do so, their life is 15 saved; and also here with Ms. Mercado is Julie 16 Relyea, the president of the board of that 17 organization. 18 So, Mr. President, I just want 19 to welcome Ms. Mercado and Ms. Relyea. Thank 20 you. 21 ACTING PRESIDENT KUHL: Thanks, 22 Senator Mendez, for that welcoming note. 23 Senator Velella. 24 SENATOR VELELLA: Can we return 25 to the controversial calendar now, please. 1 ACTING PRESIDENT KUHL: 2 Secretary will continue to read the 3 controversial calendar, beginning with 4 Calendar Number 902, by Senator Marchi. 5 THE SECRETARY: Calendar Number 6 902, by Senator Marchi, Senate Print 7412, an 7 act to amend the Education Law, in relation to 8 retired members. 9 ACTING PRESIDENT KUHL: Senator 10 Paterson, why do you rise? 11 SENATOR PATERSON: Mr. 12 President, I'm just rising to inform you that 13 Senator Leichter laid this bill aside. We 14 just wanted to see if we could hold it just a 15 second. I think he should be right out here. 16 SENATOR LEICHTER: Yes, an 17 explanation. 18 ACTING PRESIDENT KUHL: Senator 19 Marchi, an explanation of Calendar Number 902 20 has been requested by Senator Leichter now 21 that he has his coffee. 22 SENATOR MARCHI: Mr. President, 23 this bill is not complicated or unfair. It's 24 an equitable treatment that is accorded to 25 other associations in the city and state of 1 New York in the matter of check-offs on either 2 employment or retirement. This is completely 3 voluntary. You can join if you want to. You 4 don't have to join if you're -- if you feel 5 adversely, and you wish to continue perhaps a 6 payment personally. 7 SENATOR LEICHTER: Explanation 8 satisfactory. Thank you. 9 ACTING PRESIDENT KUHL: 10 Explanation satisfactory, Senator Leichter? 11 Secretary will read the last 12 section. 13 THE SECRETARY: Section 2. 14 This act shall take effect immediately. 15 ACTING PRESIDENT KUHL: Call 16 the roll. 17 (The Secretary called the 18 roll. ) 19 THE SECRETARY: Ayes 57. 20 ACTING PRESIDENT KUHL: The 21 bill is passed. 22 THE SECRETARY: Calendar Number 23 929, by Senator Volker, Senate Print 395-B, an 24 act to amend the Public Health Law and the 25 Multiple Dwelling Law. 1 SENATOR DOLLINGER: 2 Explanation. 3 SENATOR PRESENT: Lay it aside 4 temporarily. 5 ACTING PRESIDENT KUHL: Lay the 6 bill aside temporarily. 7 THE SECRETARY: Calendar number 8 1040, by Senator Seward, Senate Print 3486-A, 9 an act to amend the Public Service Law and the 10 Uniform Commercial Code. 11 SENATOR OPPENHEIMER: 12 Explanation. 13 ACTING PRESIDENT KUHL: Senator 14 Seward, an explanation of Calendar Number 1040 15 has been requested by Senator Oppenheimer. 16 SENATOR SEWARD: Certainly, Mr. 17 President. 18 As we all know, the Public 19 Service Commission has reached settlement 20 agreements with the various investor-owned 21 utilities across New York State to restructure 22 the utility industry, usher in an era of 23 competition. 24 We've seen rate savings for the 25 first time in this state as a result, and the 1 bill before us today is designed to supplement 2 the PSC action by providing additional rate 3 relief. 4 Now, it does it by establishing 5 a financing mechanism through which rates 6 could be reduced as a result of the low cost 7 financing of certain utility assets and in 8 tangible property such as regulatory assets 9 including demand side management provisions, 10 IPP contracts for certain stranded assets. 11 Now, the bill authorizes, but 12 it does not require, that the utility submit a 13 plan for refinancing to the Public Service 14 Commission for approval and then the 15 Commission could, after reviewing the plan, 16 determine that they could approve it in part 17 or in whole under the condition that there be 18 significant ratepayer relief involved with the 19 refinancing plan. 20 Additionally, the Commission 21 would be authorized to obtain concessions from 22 the utilities applying for the rate reduction 23 refinancing such as rate reductions and a 24 write-down of a portion of utility stranded 25 costs. Those are just some examples of the 1 so-called concessions that could be wrung from 2 the utilities under this legislation. 3 Now, the bill calls for a full 4 public notice of the plans and the results of 5 the negotiations with the Public Service 6 Commission, and it calls for judicial review 7 on the part of any aggrieved party that could 8 seek that judicial review. 9 Now, the bill sunsets on 10 December 31st, 1999, so we're talking about a 11 piece of legislation that I would describe as 12 a bridge to competition. It's a short-term 13 bill, and it deals with the current expenses 14 that are being paid by our ratepayers right 15 now, and it provides a means for those 16 ratepayers to derive some savings, rate 17 relief, through this lower cost financing. 18 ACTING PRESIDENT KUHL: Senator 19 Oppenheimer. 20 SENATOR OPPENHEIMER: Actually, 21 I don't have any questions. I - 22 ACTING PRESIDENT KUHL: 23 Secretary will read the last section. 24 SENATOR OPPENHEIMER: I would 25 like to speak on the bill. 1 ACTING PRESIDENT KUHL: Senator 2 Oppenheimer, on the bill. 3 SENATOR OPPENHEIMER: And I'm 4 not sure why we need this bill now because so 5 much of the debt has been refinanced. I can't 6 understand why we're still looking at this, 7 but this would recover through the rates any 8 investments that the utilities made in the 9 past regardless of whether the investment was 10 a wise and a prudent one, and it would 11 establish a permanent rate order that's based 12 on intangible property. 13 Considering the fact that so 14 much refinancing has taken place, I really 15 think the stockholders are not being harmed 16 and I might have seen a reason for this 17 perhaps in the past, but at this juncture I 18 really don't see a need for this. 19 This gives the PSC complete 20 discretionary authority to decide what costs 21 will be guaranteed to be recoverable from the 22 ratepayers in the utility rates and these 23 decisions will go beyond the reach of us, the 24 Legislature, and also the judiciary. 25 New York is the only state 1 proceeding with deregulation without having a 2 law to guide what will be a very major public 3 policy. In New York State, all decision 4 making has been done by the PSC, by -- by rule 5 or fiat, and completely cuts us off. The 6 savings to be realized by securitizing debts 7 are very much smaller than was the case when 8 this bill was introduced two years ago and 9 that's because, as I said earlier, the 10 interest rates have fallen since then and 11 utilities have already refinanced so much of 12 their debt and equity that I don't understand 13 why this is before us now. 14 The PSC estimates that a 15 securitization law could save utilities about 16 $163 million per year, and that may decrease 17 rates for residential and small business 18 customers by a mere one percent. Does a 19 potential one percent decrease justify the 20 obligation of legislators and judiciary 21 recourse over securitization decisions? 22 There is a Tonko bill which I 23 won't go into, but it has limits. It 24 prescribes restrictions and limits and, if we 25 are to move ahead with this concept, I would 1 strongly prefer seeing before us the Tonko 2 bill because it does prescribe those limits, 3 and it caps the total amount which can be 4 securitized at $5 billion statewide and the 5 associated ratepayer savings must be at least 6 five percent, not one percent, and I won't go 7 into the bill, but I would commend you looking 8 at that bill because it does prescribe 9 restraints and restrictions. 10 Thank you. I'll be voting no. 11 This is a bill that is not, needless to say, 12 supported by the EPL. 13 ACTING PRESIDENT KUHL: Any 14 other Senator wishing to speak on the bill? 15 Chair recognizes Senator 16 Waldon. 17 SENATOR WALDON: Thank you very 18 much, Mr. President. 19 Would the gentleman yield for a 20 question? 21 ACTING PRESIDENT KUHL: Senator 22 Seward, do you yield? 23 SENATOR SEWARD: Certainly. 24 ACTING PRESIDENT KUHL: Senator 25 yields. 1 SENATOR WALDON: Senator, would 2 you be kind enough to explain to myself and my 3 colleagues -- can you hear me? 4 SENATOR SEWARD: Yes. 5 SENATOR WALDON: -- the 6 parameters of the qualified rate order? 7 SENATOR SEWARD: The parameters 8 of the qualified rate order? When you refer 9 to "the parameters of the qualified rate 10 order" that is the order that the PSC would 11 issue at the end of the process that I had 12 described earlier in terms of having the 13 utility submit a plan for refinancing of 14 certain what we call intangible assets 15 currently, such as IPP contracts, demand side 16 management programs and those expenses 17 associated with that, environmental 18 remediation programs, are just some examples 19 of the so-called intangible assets, and what 20 it would -- what we would be doing, what the 21 PSC would be doing, if they approved the plan 22 would be to raise from the level of 23 expectation to the level of a property right 24 the intangible properties belonging to a 25 utility and that, of course, by doing that 1 would open up the lower cost financing and 2 under the bill those savings would be required 3 to be passed on to the ratepayers, 4 specifically residential and small commercial 5 ratepayers. 6 SENATOR WALDON: Would the 7 gentleman continue to yield, Mr. President? 8 ACTING PRESIDENT KUHL: Senator 9 Seward? 10 SENATOR SEWARD: Certainly. 11 ACTING PRESIDENT KUHL: 12 Certainly, Senator. 13 SENATOR WALDON: Senator, if we 14 pass this proposal and if it eventually 15 becomes law in the state of New York, once 16 that qualified rate order is agreed to through 17 the PSC and the particular utility in 18 question, is there any opportunity for this 19 legislative body to revisit the agreement just 20 in case one time out of the millions of 21 contracts they will do was determined by 22 ourselves to be abusive, to be too punitive in 23 terms of the pass-along to the ratepayers? 24 SENATOR SEWARD: Well, Mr. 25 President and Senator Waldon, I would say that 1 there is no legislative -- direct legislative 2 oversight over this process. There is, as I 3 pointed out earlier, a full disclosure 4 provision, and, of course, judicial review. 5 SENATOR WALDON: One last 6 question, Senator. 7 ACTING PRESIDENT KUHL: 8 Senator, do you continue to yield? 9 SENATOR SEWARD: Certainly. 10 ACTING PRESIDENT KUHL: Senator 11 continues to yield. 12 SENATOR WALDON: Senator, thank 13 you for your response, and I just want to make 14 sure I'm clear. I believe what you have said 15 is the following, that once the qualified rate 16 order is agreed to between the PSC and the 17 particular utility in question, we cannot 18 intervene legislatively; is that correct? This 19 legislative body. 20 SENATOR SEWARD: Well, Senator, 21 we are the New York State Senate. As far as 22 the New York State Legislature, obviously we 23 can change -- we change laws as we as 24 legislators see the need. However, the 25 legislation calls for judicial review rather 1 than the direct legislative approval or 2 disapproval of any of these qualified rate 3 orders that are issued by the PSC. 4 SENATOR WALDON: Thank you very 5 much, Senator. Thank you, Mr. President. 6 Mr. President, is it 7 appropriate now to speak on the bill? 8 ACTING PRESIDENT KUHL: Senator 9 Waldon, on the bill. 10 SENATOR WALDON: I would 11 encourage -- thank you, Mr. President. I 12 would encourage my colleagues not to support 13 this, because what may happen with the PSC - 14 and I have no desire to point my finger to the 15 PSC as doing a scurrilous act, but it may 16 happen that the PSC makes a mistake and in 17 making that mistake the utility will be 18 allowed to elevate those intangible costs to 19 the point where it may be particularly 20 punitive to the catchment area of that utility 21 and the ratepayer will be creating the bottom 22 line in a greater sense for the utility. 23 I don't think that's fair. I 24 think that ratepayers should have passed along 25 to them costs which are necessary, but not 1 overly burdensome, and so I cannot support 2 something which does not in and of itself 3 allow us to intervene. You would have to wait 4 for judicial action or we would have to 5 convene ourselves and pass new legislation to 6 deal with this what may be, in my opinion, one 7 day a mistake, so I would encourage you to 8 take a chance with me and let's pull the plug 9 on this one and vote no. 10 ACTING PRESIDENT KUHL: Senator 11 Dollinger. 12 SENATOR DOLLINGER: Mr. 13 President I voted in favor of this bill last 14 year. I'm going to vote in favor of it 15 again. I have read with some interest the 16 Industrial Energy Consumers Coalition 17 memorandum which talks about some additional 18 refinements in the concept of the 19 securitization which I think, if this bill 20 eventually gets to a conference committee, 21 would be part of that discussion, and I hope 22 part of the improvement of the overall 23 package, but I still believe -- and I 24 appreciate Senator Waldon's comments about the 25 final rate that ratepayers have to pay and 1 what role this body has in those rates and 2 when we intervene and what power we have over 3 them. 4 As we go through this 5 topsy-turvy world of energy deregulation, I 6 think it's easy for us to sit here after 20 7 years of saying we've pretty much controlled 8 the rates which residential and commercial and 9 large industrial customers have paid. We've 10 either done that through the PSC or we've done 11 it through legislation. Our attempts to set 12 prices, or our attempts to fix prices in this 13 marketplace in the energy business have 14 largely been a failure. I mean if there is 15 anything that the six-cent law taught us, it 16 was the most expensive entry into the 17 marketplace that the people of this state will 18 ever have to pay for. 19 Many of the intangible assets 20 that are going to be covered by securitization 21 or by some other financing scheme are there 22 because of the six-cent law. We went in the 23 marketplace; we told people that we would 24 guarantee a particular rate of return, a 25 particular price, and it ended up being a 1 catastrophe in this state. So it seems to me 2 that this issue of what people ought to pay 3 for electrical energy and what people will pay 4 and how the marketplace is going to dictate 5 that price or set that price is a terribly 6 difficult thing to forecast, but it seems to 7 me that the concept of securitization allowing 8 a more favorable climate to reduce some costs 9 of our utilities who, for 30 years have been 10 our captive, is not a bad way to go. 11 I hope that the chairman, if 12 this does go to a conference committee, will 13 look at the issues raised in the Independent 14 Energy Consumeres Coalition memo and maybe we 15 can make some changes in this bill that will 16 address their concerns, broaden the base of 17 support, and I hope as everybody recognizes 18 that if this bill, if it becomes law, doesn't 19 reduce energy rates in this state it's all but 20 a disaster because we've got to be able to do 21 that, to continue the growth of our industrial 22 base which brings us the jobs that our 23 constituents desperately need. 24 ACTING PRESIDENT KUHL: Senator 25 Oppenheimer, for a second time. 1 SENATOR OPPENHEIMER: I guess I 2 do want to question something, if Senator 3 Seward would yield. 4 ACTING PRESIDENT KUHL: Senator 5 Seward, do you yield for a question from 6 Senator Oppenheimer? 7 SENATOR SEWARD: Certainly. 8 ACTING PRESIDENT KUHL: Senator 9 yields. 10 SENATOR OPPENHEIMER: I 11 mentioned earlier that so much refinancing has 12 taken place. What do you believe the cost 13 savings would be to the small ratepayer now in 14 light of the fact that there has been so much 15 savings? 16 SENATOR SEWARD: Well, Mr. 17 President, my colleagues, the savings vary, of 18 course, depending on the conditions in each of 19 the service territories of the various 20 utilities and that, quite frankly, is why the 21 legislation is flexible, provides flexibility 22 because we, as a Legislature, in my 23 estimation, cannot legislate and micromanage 24 the restructuring of utilities throughout the 25 state because the conditions vary so greatly 1 and they also vary as it pertains to the 2 impact of our rate reduction refinancing bill 3 before us today. 4 You -- current numbers, 5 Senator, you quoted earlier, we estimate 6 through the information provided to us by the 7 PSC there would be a statewide impact of about 8 $163 million annually, and that varies across 9 the state ranging from one percent up to four 10 and a half percent savings in one of the 11 utilities, and I think -- I believe you are 12 serviced in your district by Con Ed, and the 13 indications are that it would be a 1.9 percent 14 annual savings for the residential and small 15 commercial people in your district, in the Con 16 Ed service area. 17 SENATOR OPPENHEIMER: Right. 18 SENATOR SEWARD: And this is - 19 I might point out, this is not the cure-all or 20 end-all to rate relief in the state of New 21 York. This is just one piece of the puzzle to 22 bring down rates. The PSC, through their 23 settlement restructuring the industry, they 24 have brought rates down. There are some 25 things that the PSC cannot do that we can do 1 as a Legislature. 2 Passing this piece of 3 legislation is one of those things. Further 4 GRT -- gross receipts tax -- relief is another 5 way that this Legislature can bring down 6 rates, and so what we're talking about here is 7 a total package. This is one piece of that 8 package, and I am not going to apologize for 9 any rate relief in the state of New York. 10 After we have seen over the last 10 to 15, 20 11 years in this state, the debate was not about 12 how low we can bring rates; the debate in this 13 Capitol was how high are rates going to go. 14 So I think this is a very 15 refreshing change that we're seeing here in 16 this Capitol, and the way that we are dealing 17 with providing electric service to our 18 constituents with an eye toward bringing down 19 rates. 20 ACTING PRESIDENT KUHL: Senator 21 Oppenheimer. 22 SENATOR OPPENHEIMER: Thank 23 you, but I think before we step in, that the 24 Tonko bill which says a five percent rate 25 saving should be the limit, the minimum 1 amount, makes far more sense to me, and I'll 2 be voting no, and I can only tell you the EPL 3 has two smokestacks. 4 ACTING PRESIDENT KUHL: Senator 5 Wright. 6 SENATOR WRIGHT: Thank you, Mr. 7 President. 8 I too rise in support of the 9 bill and want to encourage my colleagues to 10 support it. Unlike my colleague, I would be 11 glad to have one percent rate reduction as 12 opposed to zero percent rate reduction and 13 when faced with that alternative, I would 14 certainly take that, but I think we can 15 achieve more, as Senator Seward pointed out. 16 This is but one element of a 17 comprehensive effort to reduce our rates. 18 More importantly, the concept of stranded 19 costs are identified not only in New York 20 State but are identified by the federal energy 21 regulatory commission and they acknowledge 22 that, in fact, there are prudent stranded 23 costs, so it's a well established concept. 24 More importantly the concept of 25 securitization is not unique to New York but 1 is used consistently throughout the nation. 2 As restructuring has been put in place, 3 securitization has been one element of that 4 restructuring. You will find it in 5 Massachusetts; you will find it in 6 Connecticut; you will find it elsewhere in 7 terms of restructuring. 8 Equally important, we are not 9 the only state that is doing restructuring 10 through a regulatory format. There are a 11 number of other states as well as there are 12 states that simply pass legislation that says 13 we want to reduce rates and restructure 14 administratively go about doing that, so New 15 York's experience is not unique to the nation 16 but, in fact, New York is moving ahead in a 17 very complicated environment. 18 This can be beneficial to our 19 ratepayers, and the bottom line does accrue 20 not to the stockholders but to the ratepayers 21 and in that negotiation of an approved plan 22 with the PSC, issues such as property tax 23 relief, an impact that was identified and 24 discussed yesterday, can become part of that 25 negotiation as well as a number of other 1 issues that the Public Service Commission has 2 the jurisdiction to negotiate with those 3 utilities, all of the benefit again accruing 4 to the ratepayers. 5 So I believe that it's not the 6 role of the Legislature to involve itself, as 7 it has historically, in driving up the rates 8 but to facilitate competition and an environ 9 ment in this state that will provide for the 10 lower rates. Securitization is but one piece 11 of that comprehensive approach, and I would 12 encourage my colleagues to support it. 13 Thank you. 14 ACTING PRESIDENT KUHL: 15 Secretary will read the last section. 16 THE SECRETARY: Section 6. 17 This act shall take effect immediately. 18 ACTING PRESIDENT KUHL: Call 19 the roll. 20 SENATOR OPPENHEIMER: If I 21 could explain my vote. 22 (The Secretary called the 23 roll. ) 24 ACTING PRESIDENT KUHL: The 25 Chair recognizes Senator Oppenheimer to 1 explain her vote. Record the negatives and 2 announce the results. 3 Senator Oppenheimer. 4 SENATOR OPPENHEIMER: The other 5 states that were just mentioned are states 6 that have put in place an entire public 7 utility policy. Our state is going ahead with 8 securitization without the entire policy put 9 in place, and it is concerning that stranded 10 costs now will fall to -- if this bill 11 survives the other house, would fall to the 12 ratepayer and not be shared by the 13 shareholder, the stockholder of the company. 14 It would all -- all intangible costs would 15 then fall to the ratepayer. It doesn't seem 16 wise to me, and I'll be voting no. 17 ACTING PRESIDENT KUHL: Senator 18 Oppenheimer will be recorded in the negative. 19 Senator Dollinger to explain 20 his vote. 21 SENATOR DOLLINGER: Just to 22 explain my vote. 23 I appreciate Senator 24 Oppenheimer's comment. I understand why the 25 EPL is concerned about this, but understand 1 one thing about this method of refinancing. 2 If we already -- if we didn't regulate the 3 utilities the way we did, then if we had an 4 open marketplace this is a very conventional 5 way to finance lower debt, to take a 6 guaranteed income stream and budget in order 7 to be able to reduce your debt level. 8 The reason why we're here, the 9 reason why we have to do it, is because we've 10 regulated them for 30, 40, 50 years. We're 11 deregulating them to the extent of allowing 12 them to go out and do a type of financing that 13 any major corporation with a set income stream 14 would do. It's not a revolutionary proposal. 15 It may have the effect, and I know I discussed 16 this with Senator Seward, of what effect it 17 will have on rates. I've talked about it with 18 my home town utility. I'm not necessarily 19 assured that it's going to see any dramatic 20 reduction in rates, but it reduces the cost 21 and it moves these utilities into a lower cost 22 environment in which they can go out and 23 compete with lower rates. They've got the 24 incentive now to go out and sell lower rates. 25 What this will allow them to do 1 is to shuck a little bit of that half a 2 century of regulation to allow them to go out 3 and compete. It's not an unconventional 4 financing mechanism in the unregulated private 5 sector. 6 ACTING PRESIDENT KUHL: Senator 7 Dollinger will be recorded - 8 SENATOR DOLLINGER: Yes. 9 ACTING PRESIDENT KUHL: -- in 10 the affirmative. Announce the results. 11 THE SECRETARY: Those recorded 12 in the negative on Calendar 1040 are Senators 13 Connor, Leichter, Markowitz, Montgomery, 14 Nanula, Onorato, Oppenheimer, Paterson, 15 Rosado, Sampson, Santiago, Smith, Stavisky, 16 Waldon, also Senator Mendez. Ayes 44, nays 17 15. 18 ACTING PRESIDENT KUHL: The 19 bill is passed. 20 Senator Farley, why do you 21 rise? 22 SENATOR FARLEY: The bill is 23 passed, right. This is on another issue. 24 Mr. President, we have in the 25 gallery a remarkable group of men, all of whom 1 are ex-prisoners of war, came over here to 2 visit us. I'd ask them to stand and would you 3 please pay the respects of the New York State 4 Senate to these great Americans who were 5 prisoners of war for our country. 6 ACTING PRESIDENT KUHL: Thank 7 you, Senator Farley. 8 On behalf of Senator Bruno, 9 Senator Farley, all the members we welcome you 10 distinguished gentlemen to the chamber. Thank 11 you for your contribution that makes all of 12 this possible for all of us and for all the 13 residents of this state of New York and 14 country. Thank you for your service to God 15 and country, and you're to be commended for 16 spending some time here today. 17 Thank you, gentlemen. Enjoy 18 your stay. 19 (Applause) 20 Senator Present. 21 SENATOR PRESENT: Mr. 22 President, would you recognize Senator Rath, 23 please. 24 ACTING PRESIDENT KUHL: The 25 Chair recognizes Senator Rath. 1 SENATOR RATH: Yes, Mr. 2 President. Good morning. Excuse me for being 3 so very late as I wandered into the chamber. 4 I was at one of the other meetings, Higher 5 Education meeting, and it gives me a great 6 deal of pleasure to introduce to you Tara 7 Neal, who is with you on the platform, Miss 8 Western New York. We're very glad to have you 9 in the chamber with us this afternoon. Tara, 10 I haven't had the pleasure of greeting you 11 personally because of circumstances today, but 12 you're certainly an able delegate and a fine 13 representative from the western door of New 14 York State, as I like to think about it. 15 Congratulations and good luck. 16 Thank you for being here. 17 ACTING PRESIDENT KUHL: Senator 18 Maziarz. 19 SENATOR MAZIARZ: Thank you 20 very much, Mr. President. 21 I want to join with Senator 22 Rath and also Senator Volker who is not in the 23 chamber today in congratulating Tara and 24 wishing her well the end of this month. She's 25 going to be competing in Watertown against 1 other young ladies of all of your districts 2 and she is going to win, so you are all going 3 to have some sorry constituents out there 4 because like Mary Ellen Stamler, a Miss New 5 York State from my district, Tara, we expect 6 you not only to win in Watertown but also in 7 September to win in Atlantic City. 8 And so on behalf of Senator 9 Volker and all the members of the Senate, 10 Senator Bruno, I want to congratulate and wish 11 you well as Miss Western New York, where not 12 enough state money is spent as opposed to Long 13 Island, and, as I told you this morning. 14 I thank you. 15 ACTING PRESIDENT KUHL: Senator 16 Present. 17 SENATOR PRESENT: Mr. 18 President, I'd like to announce an immediate 19 meeting of the Rules Committee in Room 332. 20 ACTING PRESIDENT KUHL: There 21 will be an immediate meeting of the Rules 22 Committee, immediate meeting of the Rules 23 Committee in the Majority Conference Room, 24 Room 332. Immediate meeting of the Rules 25 Committee in the Majority Conference Room, 1 Room 332. 2 Senator Present. Senator 3 Present. We have one bill left on the 4 controversial calendar, Calendar Number 929, 5 by Senator Volker. 929, by Senator Volker, 6 would you like to take that up now? 7 SENATOR PRESENT: We're going 8 to stand at ease. No, stand at ease awaiting 9 the Rules Committee report. 10 ACTING PRESIDENT KUHL: Senate 11 will stand at ease awaiting the report of the 12 Rules Committee. 13 (The Senate stood at ease from 14 12:12 until 12:33 p.m.) 15 ACTING PRESIDENT KUHL: The 16 Senate will come to order. Ask the members to 17 find their places, staff to find their 18 places. 19 Senator Skelos. 20 SENATOR SKELOS: Mr. President, 21 if we could return to reports of standing 22 committees. I believe there is a report of 23 the Rules Committee at the desk. I ask that 24 it be read. 25 ACTING PRESIDENT KUHL: We will 1 return to the order of reports of standing 2 committees. There is a report of the Rules 3 Committee. I'll ask the Secretary to read. 4 THE SECRETARY: Senator Bruno, 5 from the Committee on Rules, offers up the 6 following bills directly for third reading: 7 1347-B, by Senator Kuhl, an act 8 to amend the Public Service Law; 9 1416-B, by Senator Wright, an 10 act to amend the Tax Law; 11 2575-B, by Senator Montgomery, 12 an act authorizing the city of New York; 13 2920, by Senator Leibell, an 14 act to amend the Public Authorities Law; 15 Senate 4413, by Senator Rath, 16 an act to amend the Surrogate Court Procedure 17 Act; 18 4556-B, by Senator Johnson and 19 others, an act to amend the Tax Law; 20 6093, by Senator Alesi, an act 21 to amend the Penal Law; 22 6524, by Senator DeFrancisco, 23 an act to amend the Highway Law; 24 6630, by Senator Balboni, an 25 act to amend the Penal Law; 1 6710, by Senator Marcellino, an 2 act to amend the Criminal Procedure Law; 3 6726-B, by Senator Marchi, an 4 act to amend the Public Authorities Law; 5 7041-B, by Senator Libous, an 6 act to amend the Public Authorities Law; 7 7346, by Senator Hannon, an act 8 to amend Chapter 904 of the Laws of 1984; 9 7356, by Senator Volker, an act 10 to amend the Tax Law; 11 7455-A, by Senator Goodman, an 12 act to amend the tax law; 13 7507, by Senator Spano, an act 14 to amend the Tax Law; 15 7533, by Senator Volker, an act 16 to amend the Judiciary Law; 17 7542, by Senator Fuschillo, an 18 act to amend the Vehicle and Traffic Law; 19 7546, by Senator Fuschillo, an 20 act to amend the Vehicle and Traffic Law; 21 7565, by Senator Bruno, an act 22 to authorize the city of Troy; 23 7591, by Senator Volker, an act 24 to authorize participation of the county of 25 Erie; 1 7604, by Senator Trunzo, an act 2 to amend Chapter 41 of the Laws of 1997. 3 All bills directly for third 4 reading. 5 ACTING PRESIDENT KUHL: Senator 6 Skelos? 7 The motion is to accept the 8 report of the Rules Committee. All those in 9 favor signify by saying aye. 10 (Response of "Aye.") 11 Opposed nay. 12 (There was no response. ) 13 The report is accepted. All 14 bills ordered directly to third reading. 15 Senator Skelos. 16 SENATOR SKELOS: Mr. President, 17 at this time could we take up Calendar Number 18 1179, Senate 6726-B, that was just reported by 19 the Rules Committee. 20 ACTING PRESIDENT KUHL: 21 Secretary will read Calendar Number 1179, 22 Senate 6726-B. 23 THE SECRETARY: Calendar Number 24 1179, by Senator Marchi, Senate Print 6726-B, 25 an act to amend the Public Authorities Law, in 1 relation to the powers of the NYSARC, Inc. 2 ACTING PRESIDENT KUHL: 3 Secretary will read the last section. 4 THE SECRETARY: Section 3. 5 This act shall take effect immediately. 6 ACTING PRESIDENT KUHL: Call 7 the roll. 8 (The Secretary called the 9 roll. ) 10 THE SECRETARY: Ayes 59. 11 ACTING PRESIDENT KUHL: The 12 bill is passed. 13 Senator Skelos. 14 SENATOR SKELOS: Mr. President, 15 would you please take up Calendar Number 1180, 16 Senate 7041-B, just reported by the Rules 17 Committee. 18 ACTING PRESIDENT KUHL: 19 Secretary will read Calendar Number 1180, 20 Senate Print 7041-B. 21 THE SECRETARY: Calendar 1180, 22 by Senator Libous, Senate Print 7041-B, an act 23 to amend the Public Authorities Law. 24 ACTING PRESIDENT KUHL: 25 Secretary will read the last section. 1 THE SECRETARY: Section 4. 2 This act shall take effect immediately. 3 ACTING PRESIDENT KUHL: Call 4 the roll. 5 THE SECRETARY: Ayes 59. 6 ACTING PRESIDENT KUHL: The 7 bill is passed. 8 Senator Skelos. 9 SENATOR SKELOS: Mr. President, 10 would you please take up Calendar Number 1181, 11 Senate 7455-A, that was reported from the 12 Rules Committee. 13 ACTING PRESIDENT KUHL: 14 Secretary will read Calendar Number 1181, 15 Senate 7455-A. 16 THE SECRETARY: Calendar Number 17 1181, by Senator Goodman, Senate Print 7455-A, 18 an act to amend the Tax Law. 19 ACTING PRESIDENT KUHL: Senator 20 Skelos. 21 SENATOR SKELOS: Is there a 22 message of necessity at the desk? 23 ACTING PRESIDENT KUHL: There 24 is. 25 SENATOR SKELOS: Move to 1 accept. 2 ACTING PRESIDENT KUHL: Motion 3 is to accept the message of necessity on 4 Calendar Number 1181. All those in favor 5 aye. 6 (Response of "Aye.") 7 Opposed nay. 8 (There was no response.) 9 The message is accepted. 10 Secretary will read the last section. 11 SENATOR LEICHTER: Excuse me. 12 ACTING PRESIDENT KUHL: Senator 13 Leichter, why do you rise? 14 SENATOR LEICHTER: Yeah. I 15 just saw this bill for the first time in the 16 Rules Committee. Could we just have a brief 17 explanation of this bill. 18 SENATOR SKELOS: Lay it aside 19 temporarily. 20 ACTING PRESIDENT KUHL: Bill is 21 laid aside temporarily. 22 Senator Skelos. 23 SENATOR SKELOS: 7604. 24 ACTING PRESIDENT KUHL: 25 Secretary will read Calendar Number 1182. 1 THE SECRETARY: Calendar Number 2 1182, by Senator Trunzo, Senate Print 7604-A, 3 an act to amend Chapter 41 of the Laws of 4 1997. 5 ACTING PRESIDENT KUHL: Senator 6 Skelos. 7 SENATOR SKELOS: Is there a 8 message of necessity at the desk? 9 ACTING PRESIDENT KUHL: There 10 is. 11 SENATOR SKELOS: Move to 12 accept. 13 ACTING PRESIDENT KUHL: Motion 14 is to accept the message of necessity on 15 Calendar Number 1182. All those in favor 16 aye. 17 (Response of "Aye.") 18 Opposed nay. 19 (There was no response.) 20 The message is accepted. The 21 bill is before the house. Secretary will read 22 the last section. 23 THE SECRETARY: Section 5. 24 This act shall take effect - 25 ACTING PRESIDENT KUHL: Senator 1 Leichter? 2 SENATOR LEICHTER: Going very 3 fast. Can we have a brief explanation of the 4 bill? 5 ACTING PRESIDENT KUHL: Senator 6 Trunzo, an explanation of Calendar Number 1182 7 has been requested by Senator Leichter. 8 SENATOR TRUNZO: Senator 9 Leichter, this is just merely technical 10 amendments to the early retirement bill that 11 was passed earlier this year. There were 12 wrong dates in the original bill, correcting 13 those dates in various sections of the bill 14 and that's all it does is really technical so 15 that we can implement the early retirement 16 bill that was passed and signed by the 17 Governor. 18 ACTING PRESIDENT KUHL: Senator 19 Leichter. 20 SENATOR LEICHTER: If Senator 21 Trunzo would yield. 22 Senator, the aim and purpose of 23 the bill is to allow one or more individuals 24 that didn't take advantage of early retirement 25 under the old provision of the bill to do so 1 now? 2 SENATOR TRUNZO: That's right. 3 SENATOR LEICHTER: And how many 4 such individuals are there? 5 SENATOR TRUNZO: I really don't 6 know. People haven't applied yet. You know, 7 it's statewide; it's all over the state. 8 SENATOR LEICHTER: This bill. 9 SENATOR TRUNZO: This bill just 10 finalizes so we can implement the early 11 retirement bill which was Chapter 47 of the 12 Laws of 1998 which was passed earlier this 13 year and signed by the Governor, and these 14 bills had to be changed to fix the dates that 15 weren't in the original bill. 16 SENATOR LEICHTER: O.K. Just 17 one more question, if you will yield, 18 Senator. So the -- you're telling me the aim 19 and purpose is not to benefit a specifically 20 known individual or individuals. 21 SENATOR TRUNZO: No, no. 22 SENATOR LEICHTER: All right. 23 ACTING PRESIDENT KUHL: 24 Secretary will read the last section. 25 THE SECRETARY: Section 5. 1 This act shall take effect immediately. 2 ACTING PRESIDENT KUHL: Call 3 the roll. 4 (The Secretary called the 5 roll.) 6 THE SECRETARY: Ayes 59. 7 ACTING PRESIDENT KUHL: The 8 bill is passed. 9 Senator Skelos. 10 SENATOR SKELOS: Mr. President, 11 would you please take up Calendar Number 1181 12 that was laid aside. 13 ACTING PRESIDENT KUHL: 14 Secretary will read. 15 THE SECRETARY: Calendar Number 16 1181, by Senator Goodman, Senate Print 7455-A, 17 an act to amend the Tax Law. 18 ACTING PRESIDENT KUHL: Message 19 of necessity was previously accepted, Senator 20 Leichter. 21 Senator Goodman, an explanation 22 of Calendar Number 1181, Senate Print 7455 has 23 been requested by Senator Leichter. 24 SENATOR GOODMAN: Thank you, 25 Mr. President. I'll put up my dukes and 1 explain the bill which relates to boxing and 2 wrestling in the state of New York. That's 3 the least - 4 ACTING PRESIDENT KUHL: Senator 5 Leichter. 6 SENATOR LEICHTER: If Senator 7 Goodman would yield. 8 SENATOR GOODMAN: May I just 9 take a moment because, in reading you the 10 explanation, it will refresh my recollection 11 of the explanation I made before. 12 SENATOR LEICHTER: Sure. 13 SENATOR GOODMAN: The purpose 14 of this bill is to amend the boxing and 15 wrestling exhibition tax imposed by Article 19 16 of the Tax Law to reduce the amount of tax, 17 narrow the base on which tax is imposed and 18 set maximum amounts of tax for any match or 19 exhibition. 20 The bill would provide economic 21 benefits to the state while improving the 22 administration and enforcement of the boxing 23 and wrestling exhibition tax. The reductions 24 realized in the revision of the gross receipts 25 tax should encourage promoters to bring events 1 into New York. This increase in major events 2 will have a beneficial impact on the economy. 3 The bill would have a minimal 4 impact on the state's fiscal year 1998-99 and 5 would reduce the state's receipts by 6 approximately $192,000. 7 The bill would amend the Tax 8 Law to clarify the definition of gross 9 receipts. The bill would further define and 10 clarify sparring or wrestling match or 11 exhibition. Section 2 would amend the Tax Law 12 commencing June 1st, 1998 to impose a tax on 13 gross receipts and ticket sales at the rate of 14 3 percent, capped at $50,000 for any match or 15 exhibition and on gross receipts from broad 16 casting rights at the rate of 3 percent, also 17 capped at $50,000 for any single match or 18 exhibition. Thus the combined maximum tax per 19 match or exhibition would be $100,000. 20 A match or exhibition is 21 understood to be a single bout or event or, in 22 the case of a bout or match or fight on a 23 given date, a single date, a given location is 24 one match or exhibition. 25 Section 3 of the bill would 1 amend the Tax Law to reflect changes made by 2 the bill, Section 1 and 2. 3 If the U.S. Supreme Court or 4 New York State Court of Appeals holds that the 5 per match cap on the taxed event is un 6 constitutional, then the cap would be 7 eliminated. 8 Section 5 of the bill provides 9 that the bill would take effect on June 1st, 10 '98 and would apply to matches and 11 exhibitions held on or after that date, et 12 cetera, et cetera, et cetera. 13 That's the flavor, and I'm at 14 your disposal, Senator. 15 SENATOR LEICHTER: Senator, Mr. 16 President, I thank Senator Goodman for that 17 reading. 18 My question was, I see that 19 you've capped the gross receipts tax on the 20 sales of these tickets at $50,000. That sort 21 of troubled me. Suppose we had a big, big 22 match, Holyfield versus Tyson, with gates of 23 hundreds of millions of dollars. Would you 24 still cap the total amount of the tax in that 25 event at $50,000? 1 SENATOR GOODMAN: The answer is 2 that I would, for precisely the reason that I 3 referred to in the explanation of the bill, 4 namely, that we wish to give assurance and 5 attract people into New York with these 6 matches and, if they felt that this was an 7 unlimited tax liability that they would have 8 to be subject to, that that would be a 9 discouragement for bringing other matches. 10 Furthermore, Senator, it's 11 unlikely that gates of the magnitude that you 12 mentioned would not readily occur or would 13 only occur once in a while, but to permit the 14 thing to be without a cap would expand the 15 liability of the promoters and, therefore, 16 deter their entrance into New York. 17 SENATOR LEICHTER: Mr. 18 President, just very briefly on the bill. 19 ACTING PRESIDENT KUHL: Senator 20 Leichter, on the bill. 21 SENATOR LEICHTER: I just think 22 to cap that at $50,000 is to be unreasonably 23 low. Maybe you want to cap it at something. 24 I don't know whether you want to cap it at 25 all, but I certainly don't want to cap it at 1 this low an amount. 2 We have events that go on in 3 New York State all the time, whether they're 4 World Series games, where the prices go up, 5 where I'm sure the total amount of receipts is 6 greater. I don't think we've discouraged 7 World Series events to be held in New York 8 State because of that. 9 I just think that it's an 10 unjustified limitation on taxes that should be 11 paid. We're just decreasing the amount that 12 flows into the public treasury. 13 ACTING PRESIDENT KUHL: 14 Secretary will read the last section. 15 THE SECRETARY: Section 5. 16 This act shall take effect immediately. 17 ACTING PRESIDENT KUHL: Call 18 the roll. 19 (The Secretary called the 20 roll. ) 21 ACTING PRESIDENT KUHL: Record 22 the negatives and announce the results. 23 THE SECRETARY: Those recorded 24 in the negative on Calendar Number 1181 are 25 Senators Dollinger, Hoffmann and Leichter. 1 Ayes 56, nays 3. 2 ACTING PRESIDENT KUHL: The 3 bill is passed. 4 Senator Skelos. 5 SENATOR SKELOS: Mr. President, 6 is there any housekeeping at the desk? 7 ACTING PRESIDENT KUHL: We do 8 have a couple of motions. 9 Senator Leichter. Excuse me. 10 Senator Montgomery, why do you rise? 11 SENATOR MONTGOMERY: Mr. 12 President, I would like unanimous consent to 13 be recorded in the negative on Calendar Number 14 2. 15 ACTING PRESIDENT KUHL: Without 16 objection, hearing no objection, Senator 17 Montgomery will be recorded in the negative on 18 Calendar Number 2. 19 SENATOR MONTGOMERY: Thank you, 20 Mr. President. 21 Senator Marcellino, you got a 22 motion. Return to the order of motions and 23 resolutions. Chair recognizes Senator 24 Marcellino. 25 SENATOR MARCELLINO: Thank you, 1 Mr. President. 2 On page number 12, I offer the 3 following amendments to Senator Cook's bill 4 Calendar Number 446, Senate Print Number 899 5 B, and ask that said bill retain its place on 6 the Third Reading Calendar. 7 ACTING PRESIDENT KUHL: 8 Amendments to Calendar Number 446 are received 9 and adopted. The bill will retain its place 10 on the Third Reading Calendar. 11 Senator Marcellino. 12 SENATOR MARCELLINO: Thank you, 13 Mr. President. 14 On behalf of Senator Spano, I 15 wish to call up his bill, Calendar Number 514, 16 Assembly Print Number 9511-A. 17 ACTING PRESIDENT KUHL: 18 Secretary will read. 19 THE SECRETARY: Calendar Number 20 514, by member of the Assembly Luster, 21 Assembly Print 9511-A, an act to amend the 22 Labor Law. 23 ACTING PRESIDENT KUHL: Senator 24 Marcellino. 25 SENATOR MARCELLINO: I now move 1 to reconsider the vote by which this Assembly 2 bill was substituted for Print Number 6571-A, 3 on June 2nd. 4 ACTING PRESIDENT KUHL: 5 Secretary will call the roll on 6 reconsideration. 7 (The Secretary called the roll 8 on reconsideration.) 9 THE SECRETARY: Ayes 59. 10 ACTING PRESIDENT KUHL: Senator 11 Marcellino. 12 SENATOR MARCELLINO: Mr. 13 President, I now move that the Assembly bill 14 be recommitted to the Committee on Labor and 15 the Senate bill restored to the order of third 16 reading. 17 ACTING PRESIDENT KUHL: The 18 assembly bill is recommitted; the Senate bill 19 is restored. 20 SENATOR MARCELLINO: Mr. 21 President, I now offer the following 22 amendments. 23 ACTING PRESIDENT KUHL: The 24 amendments are received and adopted. 25 SENATOR SKELOS: Any other 1 substitutions to be made? Any other 2 housekeeping? 3 SENATOR KUHL: No other 4 housekeeping, Senator, at this time. 5 SENATOR SKELOS: Mr. President, 6 would you call up Senator Volker's bill, 7 Calendar Number 929. 8 ACTING PRESIDENT KUHL: 9 Secretary will read Calendar Number 929. 10 THE SECRETARY: Calendar Number 11 929, by Senator Volker, Senate Print 395-B, an 12 act to amend the Public Health Law and the 13 Multiple Dwelling Law. 14 SENATOR SKELOS: Lay it aside 15 for the day. 16 ACTING PRESIDENT KUHL: Bill is 17 laid aside for the day at the request of the 18 Majority Leader. 19 SENATOR SKELOS: No other 20 housekeeping. 21 ACTING PRESIDENT KUHL: Desk is 22 clean, Senator Skelos. 23 SENATOR SKELOS: If there is no 24 further business, Mr. President, I move we 25 adjourn until June 8th, Monday, at 3:00 p.m., 1 intervening days being legislative days. 2 ACTING PRESIDENT KUHL: Without 3 objection, the Senate stands adjourned until 4 Monday, June 8th, at 3:00 p.m., intervening 5 days to be legislative days. 6 (Whereupon at 12:48 p.m., the 7 Senate adjourned.) 8 9 10 11 12 13 14 15 16