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Wednesday, May 2, 2018

11:03 AMRegular SessionALBANY, NEW YORK
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                                                               2346

 1                NEW YORK STATE SENATE

 2                          

 3                          

 4               THE STENOGRAPHIC RECORD

 5                          

 6                          

 7                          

 8                          

 9                  ALBANY, NEW YORK

10                     May 2, 2018

11                     11:03 a.m.

12                          

13                          

14                   REGULAR SESSION

15  

16  

17  

18  SENATOR GEORGE A. AMEDORE, JR., Acting President

19  FRANCIS W. PATIENCE, Secretary

20  

21  

22  

23  

24  

25  


                                                               2347

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

 2                ACTING PRESIDENT AMEDORE:   The 

 3   Senate will come to order.  

 4                And I ask that everyone present 

 5   please rise and repeat after me the Pledge of 

 6   Allegiance.  

 7                (Whereupon, the assemblage recited 

 8   the Pledge of Allegiance to the Flag.)

 9                ACTING PRESIDENT AMEDORE:   In the 

10   absence of clergy, may we please bow our heads in 

11   a moment of silence.

12                (Whereupon, the assemblage respected 

13   a moment of silence.)

14                ACTING PRESIDENT AMEDORE:   The 

15   reading of the Journal.

16                THE SECRETARY:   In Senate, Tuesday, 

17   May 1st, the Senate met pursuant to adjournment.  

18   The Journal of Monday, April 30th, was read and 

19   approved.  On motion, Senate adjourned.

20                ACTING PRESIDENT AMEDORE:   Without 

21   objection, the Journal stands approved as read.

22                Presentation of petitions.

23                Messages from the Assembly.

24                Messages from the Governor.

25                Reports of standing committees.


                                                               2348

 1                Reports of select committees.

 2                Communications and reports from 

 3   state officers.

 4                Motions and resolutions.

 5                Senator DeFrancisco.

 6                SENATOR DeFRANCISCO:   Yes, I'd just 

 7   like to make an announcement.  Session starts at 

 8   11:00 o'clock.  And there's some members in the 

 9   chambers.  But if you're somewhere that you can 

10   hear me, it would be nice that you would be here 

11   as well, because we're going to start bills soon 

12   and we want to do this in a reasonable amount of 

13   time.  So that's my request, that's my plea, that 

14   we can get more people in the chamber.

15                With that said, could we take up 

16   previously adopted Resolution 4628, by Senator 

17   Marchione, read the title only, and call on 

18   Senator Marchione to speak.

19                ACTING PRESIDENT AMEDORE:   The 

20   Secretary will read.

21                THE SECRETARY:   Legislative 

22   Resolution Number 4628, by Senator Marchione, 

23   memorializing Governor Andrew M. Cuomo to 

24   proclaim May 2018 as Huntington's Disease 

25   Awareness Month in the State of New York.


                                                               2349

 1                ACTING PRESIDENT AMEDORE:   Senator 

 2   Marchione.

 3                SENATOR MARCHIONE:   Thank you, 

 4   Mr. President.  

 5                I rise to speak on this resolution 

 6   that proclaims Huntington's Disease Awareness 

 7   Month in our state.

 8                Huntington's disease is a 

 9   devastating hereditary degenerative brain 

10   disorder for which there is presently no 

11   effective treatment or cure.  This debilitating 

12   disease slowly diminishes the affected 

13   individual's ability to walk, think, talk and 

14   reason.  This disease eventually makes the person 

15   affected completely dependent on others for care.

16                Huntington's disease profoundly 

17   affects the lives of entire families -- 

18   emotionally, socially and economically.

19                Over a quarter of a million 

20   Americans have been diagnosed with Huntington's 

21   disease or are at risk of inheriting the illness 

22   from an affected parent.  

23                In 2011, the Albany affiliate of the 

24   Huntington's Disease Society of America was 

25   formed, with the mission of bringing awareness to 


                                                               2350

 1   the public regarding Huntington's disease and to 

 2   raise funds to be used for research, care and 

 3   education.

 4                My resolution seeks to provide 

 5   greater public awareness of Huntington's disease 

 6   and increase activity at local, state and 

 7   national levels to support those afflicted, as 

 8   well as their families and caregivers.  

 9                Joining us today are members of the 

10   Huntington's Disease Society of America, Albany 

11   Chapter.  Thank you all for being here today, and 

12   welcome to the State Senate.

13                Thank you, Mr. President.

14                ACTING PRESIDENT AMEDORE:   Senator 

15   DeFrancisco.

16                SENATOR DeFRANCISCO:   Yes, I 

17   believe this has been offered for cosponsorship.  

18   If you would like to cosponsor this resolution, 

19   please notify the desk.

20                ACTING PRESIDENT AMEDORE:   The 

21   resolution is open for cosponsorship.  If you 

22   would like to be a cosponsor, please notify the 

23   desk.

24                SENATOR DeFRANCISCO:   Could we now 

25   take up previously adopted Resolution 3138, by 


                                                               2351

 1   Senator Marchione, title only, and call on the 

 2   Senator to speak.

 3                ACTING PRESIDENT AMEDORE:   The 

 4   Secretary will read.

 5                THE SECRETARY:   Legislative 

 6   Resolution Number 3138, by Senator Marchione, 

 7   commemorating the 67th annual observance of the 

 8   National Day of Prayer in the State of New York, 

 9   Thursday, May 3, 2018.

10                ACTING PRESIDENT AMEDORE:   Senator 

11   Marchione.

12                SENATOR MARCHIONE:   Thank you, 

13   Mr. President.

14                I rise to speak on my resolution 

15   commemorating the 67th annual observance of the 

16   National Day of Prayer in New York State as this 

17   Thursday, May 3, 2018.  The theme for this year's 

18   National Day of Prayer is Pray for America - 

19   UNITY, based upon Ephesians 4:3, challenging us 

20   to mobilize unified public prayer for America, to 

21   keep the unity of the spirit through the enduring 

22   bond of peace.  

23                During the 67th Annual National Day 

24   of Prayer, millions of Americans will pray at 

25   thousands of events being held all across our 


                                                               2352

 1   nation.  Locally, there are two National Day of 

 2   Prayer events taking place tomorrow.  The first 

 3   will occur at noon in the West Capitol Park, and 

 4   another event will take place at 6 p.m. at 

 5   Jennings Landing.

 6                Prayer has always been a vital part 

 7   of our nation's heritage.  Americans pray to 

 8   guide, unite, and heal in times of peace and 

 9   prosperity, tragedy and joy, comfort and 

10   conflict.  Prayer has always provided sustenance, 

11   affirmed our purpose, and strengthened our 

12   resolve.

13                By observing the National Day of 

14   Prayer in New York State on May 3rd, we can 

15   acknowledge our blessings, express gratitude, and 

16   recognize the continued need for strengthening 

17   religious and moral values in our state and our 

18   nation.

19                Thank you again for your support of 

20   my resolution.

21                ACTING PRESIDENT AMEDORE:   Senator 

22   DeFrancisco.

23                SENATOR DeFRANCISCO:   Yes, this is 

24   also open for cosponsorship.  Please notify the 

25   desk if you'd like to cosponsor.


                                                               2353

 1                ACTING PRESIDENT AMEDORE:   The 

 2   resolution is open for cosponsorship.  If you'd 

 3   like to be a cosponsor, please notify the desk.

 4                Senator DeFrancisco.

 5                SENATOR DeFRANCISCO:   I'd like to 

 6   now take up previously adopted Resolution 4324, 

 7   title only, and call on Senator Tedisco to speak.

 8                ACTING PRESIDENT AMEDORE:   The 

 9   Secretary will read.

10                THE SECRETARY:   Legislative 

11   Resolution Number 4324, by Senator Tedisco, 

12   congratulating Stevo Poulin upon the occasion of 

13   capturing the 99-pound Division I wrestling title 

14   at the New York State Public High School Athletic 

15   Association Wrestling Championships on 

16   February 24, 2018.

17                ACTING PRESIDENT AMEDORE:   Senator 

18   Tedisco on the resolution.

19                SENATOR TEDISCO:   Mr. President, 

20   I'm going to take up -- because we have two 

21   resolutions, I guess, one for Nick Lydon and one 

22   for Stevo Poulin.  And I'm going to make my 

23   comments now in relationship to both of them, 

24   because they are all both up there with their 

25   parents and their families, and if that's okay, I 


                                                               2354

 1   will do that.

 2                Mr. President, the 49th Senate 

 3   District is blessed to have many fine academic 

 4   institutions, and one of those is Shenendehowa 

 5   High School in Clifton Park, which is in my 

 6   district and which I represent along with Senator 

 7   Marchione.  Shenendehowa is a true powerhouse for 

 8   its great academic and athletic programs.  

 9                With us today are two Shenendehowa 

10   student-athletes, who this year truly excelled to 

11   the highest state level, becoming state champions 

12   in two different sports, diving and wrestling.  

13                Our first honoree from Shenendehowa 

14   high school is the state 99-pound Division I 

15   wrestling champion, Stevo Poulin, who is a 

16   freshman.  State champion as a freshman.

17                Stevo, could you stand up?  

18                Stevo captured his state wrestling 

19   title on February 24th, just down the street at 

20   the Times Union Center here in Albany.  The title 

21   capped off a season where Stevo compiled an 

22   outstanding record as a freshman, a 44-1 record.  

23   As the number two seed, Stevo earned a 7-1 

24   decision victory over his number-one seeded 

25   opponent, who was from Massapequa High School.  


                                                               2355

 1                During the tournament, Stevo scored 

 2   an incredible 57 points -- that's two more than 

 3   my record, but it's a different sport -- in four 

 4   matches, winning his first three bouts by 

 5   technical fall.  This was his first state 

 6   wrestling title -- but more than likely, it will 

 7   not be his last.  

 8                Stevo is a career wrestler in 

 9   national youth tournaments and is only a 

10   freshman, as I stated.  In fact, just prior to 

11   entering high school, Stevo established himself 

12   in the sport at the national level, winning the 

13   2017 National High School Coaches Association 

14   Nationals in the 85-pound weight class. 

15                Congratulations to you, Stevo 

16   Poulin.

17                (Applause.)

18                SENATOR TEDISCO:   You want to call 

19   that now?  Go ahead.

20                ACTING PRESIDENT AMEDORE:   The 

21   Secretary will read.

22                THE SECRETARY:   Legislative 

23   Resolution Number 4379, by Senator Tedisco, 

24   congratulating Nick Lydon upon the occasion of 

25   capturing the Class AA New York State Public High 


                                                               2356

 1   School Athletic Association Diving Championship 

 2   on March 2, 2018.

 3                ACTING PRESIDENT AMEDORE:   Senator 

 4   Tedisco on the resolution.

 5                SENATOR TEDISCO:   Thank you, 

 6   Mr. President.

 7                You want to stand up, Nick, as I say 

 8   a few words and introduce you?  

 9                Our second honoree from Shenendehowa 

10   High School, as has been stated, is a Class AA 

11   division champion, Nick Lydon.  Nick, who is a 

12   senior, capped off a stellar scholastic diving 

13   career with a state championship on March 2nd at 

14   the Nassau County Aquatic Center in East Meadow.  

15                Nick scored 559.25 points in the 

16   11-dive event, and placed first after finishing 

17   third as a junior, sixth as a sophomore, and 10th 

18   as only a freshman.

19                Earlier in the season, Nick Lydon 

20   shattered the New York State Public High School 

21   Athletic Association 11-dive meet record mark 

22   with a score of 661.75 at the annual Shenendehowa 

23   Invitational.  

24                In addition to his success at the 

25   state level, Nick captured his fourth consecutive 


                                                               2357

 1   Section 2, Division I diving title this season.  

 2   Earning a full scholarship, Nick will continue 

 3   his academic pursuits and diving exploits at the 

 4   University of Florida this fall.

 5                Joining Nick Lydon and also Stevo 

 6   Poulin today are their outstanding coaches, 

 7   Wrestling Coach Rob Weeks -- Rob, you want to 

 8   stand up so we can identify who you are -- Diving 

 9   Coach Dennis Hogan, Assistant Christopher M. 

10   Capezutti, Athletic Director -- I don't know if 

11   Chuck Dunham is here.  

12                And of course our athletes are 

13   joined by the best support system any competitor 

14   can have, and that's their families.  If the 

15   family would stand up, we'd like to salute them 

16   also, also if they could.

17                Mr. President, please welcome Nick 

18   Lydon and again Stevo Poulin and extend to them 

19   all the cordialities of this chamber.  And we 

20   congratulate them on their unbelievable success.

21                I think maybe Senator Marchione, 

22   would you like to say a few words before you do 

23   that?  So I'll turn it over to Senator Marchione, 

24   who is the other Senator.

25                ACTING PRESIDENT AMEDORE:   Senator 


                                                               2358

 1   Marchione on the resolution.

 2                SENATOR MARCHIONE:   Thank you --

 3                SENATOR DeFRANCISCO:   Excuse me.  

 4   Mr. President, I'm losing control here.  

 5                (Laughter.)

 6                SENATOR DeFRANCISCO:   Senator 

 7   Tedisco is directing traffic from that seat.

 8                ACTING PRESIDENT AMEDORE:   I see 

 9   that, Senator.

10                SENATOR DeFRANCISCO:   But would you 

11   do me a favor now and call on Senator Marchione.

12                ACTING PRESIDENT AMEDORE:   Senator 

13   Marchione on the resolution.

14                SENATOR MARCHIONE:   Thank you, 

15   Mr. President.  Thank you, Senator Tedisco.

16                I would just like to add my 

17   congratulations to wrestler Stevo Poulin and 

18   champion diver Nick Lydon.  Congratulations to 

19   both of you.  

20                You know, as we spoke outside when 

21   we were having photographs taken, I said in both 

22   of your sports, you know, the value of team, the 

23   value of learning how to work together are skills 

24   that you will take with you forever.  And you 

25   learn that in your respective sports.  But each 


                                                               2359

 1   of you also learn what you're made of and how you 

 2   can stand up by yourself and be a success.  And 

 3   that's exactly what both of you are, a tremendous 

 4   success.  

 5                I'm sure a great deal of pride comes 

 6   from your parents and your coaches, all who have 

 7   worked very hard so you are where you are.  The 

 8   sacrifices of your parents -- I said earlier I 

 9   know some of those sacrifices, because my 

10   legislative director Daphne Jordan's son James 

11   swims with you, and I hear it all the time.  And 

12   she needs to be out all the time so she can be 

13   with her son.  

14                And I know that both sets of parents 

15   here are exactly the same.  And you owe a 

16   great deal of gratitude to your parents and to 

17   your coaches.  But mostly, congratulations to 

18   each of you on the tremendous success that you've 

19   achieved.

20                Thank you, Mr. President.

21                ACTING PRESIDENT AMEDORE:   To 

22   Stevo, to Nick, to the parents and to the 

23   coaches, we welcome you, we extend the 

24   cordialities of the house, and we want to 

25   congratulate all of your efforts, from the 


                                                               2360

 1   coaches, for your guidance, to the parents, for 

 2   your dedication and sacrifice.  And to the 

 3   athletes, job well done.  Stick it out.  And 

 4   you're going places.

 5                So we welcome you.  Congratulations. 

 6                (Standing ovation.) 

 7                ACTING PRESIDENT AMEDORE:   I also 

 8   want to recognize a group here on a previous 

 9   resolution from Senator Marchione, in the 

10   Huntington's Disease Society of America, the 

11   Albany Chapter, who is also in the gallery.  We 

12   welcome you and also extend the cordialities of 

13   the house.  Thank you for your passion and love.

14                (Applause.)

15                ACTING PRESIDENT AMEDORE:   Senator 

16   DeFrancisco.

17                SENATOR DeFRANCISCO:   The two 

18   Tedisco resolutions are open for cosponsorship.  

19   If you want to cosponsor, please notify the desk.

20                ACTING PRESIDENT AMEDORE:   The 

21   resolutions are open for cosponsorship.  If you 

22   would like to, please notify the desk for 

23   cosponsorship.

24                Senator DeFrancisco.

25                SENATOR DeFRANCISCO:   Yes, could we 


                                                               2361

 1   now take up the noncontroversial reading of the 

 2   calendar.

 3                ACTING PRESIDENT AMEDORE:   The 

 4   Secretary will read.

 5                THE SECRETARY:   Calendar Number 

 6   283, by Senator Flanagan, Senate Print 6973, an 

 7   act in relation to authorizing.

 8                ACTING PRESIDENT AMEDORE:   There is 

 9   a home-rule message at the desk.

10                The Secretary will read the last 

11   section.

12                THE SECRETARY:   Section 6.  This 

13   act shall take effect immediately.

14                ACTING PRESIDENT AMEDORE:   Call the 

15   roll.

16                (The Secretary called the roll.)

17                THE SECRETARY:   Ayes, 60.

18                ACTING PRESIDENT AMEDORE:   The bill 

19   is passed.

20                THE SECRETARY:   Calendar Number 

21   293, by Senator Jacobs, Senate Print 5982A, an 

22   act to amend the Legislative Law.

23                ACTING PRESIDENT AMEDORE:   Read the 

24   last section.

25                THE SECRETARY:   Section 5.  This 


                                                               2362

 1   act shall take effect immediately.

 2                ACTING PRESIDENT AMEDORE:   Call the 

 3   roll.

 4                (The Secretary called the roll.)

 5                ACTING PRESIDENT AMEDORE:   Announce 

 6   the results.

 7                THE SECRETARY:   Ayes, 59.  Nays, 1.  

 8   Senator LaValle recorded in the negative.

 9                ACTING PRESIDENT AMEDORE:   The bill 

10   is passed.

11                THE SECRETARY:   Calendar Number 

12   294, by Senator Jacobs, Senate Print 6095, an act 

13   to amend the Legislative Law.

14                ACTING PRESIDENT AMEDORE:   Read the 

15   last section.

16                THE SECRETARY:   Section 4.  This 

17   act shall take effect immediately.

18                ACTING PRESIDENT AMEDORE:   Call the 

19   roll.

20                (The Secretary called the roll.)

21                ACTING PRESIDENT AMEDORE:   Announce 

22   the results.

23                THE SECRETARY:   In relation to 

24   Calendar 294, those recorded in the negative are 

25   Senators Alcantara, Bailey, Comrie, Gianaris, 


                                                               2363

 1   Hoylman, Krueger, Mayer, Parker, Rivera, Sanders, 

 2   Savino and SepĂșlveda.

 3                Ayes, 48.  Nays, 12.

 4                ACTING PRESIDENT AMEDORE:   The bill 

 5   is passed.

 6                THE SECRETARY:   Calendar Number 

 7   637, by Senator Jacobs, Senate Print 5791, an act 

 8   to amend the State Administrative Procedure Act.

 9                ACTING PRESIDENT AMEDORE:   Read the 

10   last section.

11                THE SECRETARY:   Section 2.  This 

12   act shall take effect on the first of January.

13                ACTING PRESIDENT AMEDORE:   Call the 

14   roll.

15                (The Secretary called the roll.)

16                THE SECRETARY:   Ayes, 60.

17                ACTING PRESIDENT AMEDORE:   The bill 

18   is passed.

19                THE SECRETARY:   Calendar Number 

20   638, by Senator Akshar, Senate Print 6706, an act 

21   to amend the State Administrative Procedure Act.

22                ACTING PRESIDENT AMEDORE:   Read the 

23   last section.

24                THE SECRETARY:   Section 3.  This 

25   act shall take effect immediately.


                                                               2364

 1                ACTING PRESIDENT AMEDORE:   Call the 

 2   roll.

 3                (The Secretary called the roll.)

 4                THE SECRETARY:   Ayes, 61.

 5                ACTING PRESIDENT AMEDORE:   The bill 

 6   is passed.

 7                THE SECRETARY:   Calendar Number 

 8   910, by Senator Akshar, Senate Print 1116A, an 

 9   act to -- 

10                SENATOR KLEIN:   Lay it aside.

11                ACTING PRESIDENT AMEDORE:   The bill 

12   is laid aside.

13                THE SECRETARY:   Calendar Number 

14   911, by Senator Akshar, Senate Print 1126A, an 

15   act to amend the Executive Law.

16                SENATOR KLEIN:   Lay it aside.

17                ACTING PRESIDENT AMEDORE:   The bill 

18   is laid aside.

19                THE SECRETARY:   Calendar Number 

20   912, by Senator Ritchie, Senate Print 1469A, an 

21   act to amend the Education Law.

22                ACTING PRESIDENT AMEDORE:   Read the 

23   last section.

24                THE SECRETARY:   Section 2.  This 

25   act shall take effect immediately.


                                                               2365

 1                ACTING PRESIDENT AMEDORE:   Call the 

 2   roll.

 3                (The Secretary called the roll.)

 4                ACTING PRESIDENT AMEDORE:   Senator 

 5   Mayer to explain her vote.

 6                SENATOR MAYER:   Thank you, 

 7   Mr. President.  I'm pleased to support this bill, 

 8   which reflects the importance of career and 

 9   technical education for all of New York's 

10   students.  Unfortunately, the bill does not reach 

11   every district, specifically the Big Five cities 

12   and my district, which includes the City of 

13   Yonkers.  

14                The Yonkers Public Schools strongly 

15   encourage CTE education as an important path for 

16   Yonkers students, but this bill would be better 

17   if it included an increase in per-pupil 

18   reimbursement for CTE programs within the Big 5, 

19   which would make sure that all of New York's 

20   students are included in the benefits of the 

21   bill.

22                Thank you, Mr. President.

23                ACTING PRESIDENT AMEDORE:   Senator 

24   Mayer, you're in the affirmative?

25                SENATOR MAYER:   I'm voting in the 


                                                               2366

 1   affirmative.  Thank you.

 2                ACTING PRESIDENT AMEDORE:   Thank 

 3   you.  Senator Mayer in the affirmative.  

 4                Announce the results.

 5                THE SECRETARY:   Ayes, 61.

 6                ACTING PRESIDENT AMEDORE:   The bill 

 7   is passed.

 8                THE SECRETARY:   Calendar Number 

 9   913, by Senator O'Mara, Senate Print 2120A, an 

10   act to amend the Tax Law.

11                SENATOR KLEIN:   Lay it aside.

12                ACTING PRESIDENT AMEDORE:   The bill 

13   is laid aside.

14                THE SECRETARY:   Calendar Number 

15   914, by Senator Jacobs, Senate Print 2124B, an 

16   act to amend the Education Law.

17                ACTING PRESIDENT AMEDORE:   Read the 

18   last section.

19                THE SECRETARY:   Section 2.  This 

20   act shall take effect immediately.

21                ACTING PRESIDENT AMEDORE:   Call the 

22   roll.

23                (The Secretary called the roll.)

24                ACTING PRESIDENT AMEDORE:   Announce 

25   the results.


                                                               2367

 1                THE SECRETARY:   Ayes, 61.

 2                ACTING PRESIDENT AMEDORE:   The bill 

 3   is passed.

 4                THE SECRETARY:   Calendar Number 

 5   915, by Senator Gallivan, Senate Print 2133, an 

 6   act to amend the State Administrative Procedure 

 7   Act.

 8                ACTING PRESIDENT AMEDORE:   Read the 

 9   last section.

10                THE SECRETARY:   Section 2.  This 

11   act shall take effect immediately.

12                ACTING PRESIDENT AMEDORE:   Call the 

13   roll.

14                (The Secretary called the roll.)

15                ACTING PRESIDENT AMEDORE:   Senator 

16   Krueger to explain her vote.

17                SENATOR KRUEGER:   Thank you, 

18   Mr. President.

19                I think you'll find that many of us 

20   are voting no because this creates a redundancy.  

21   It's a task force to review SAPA, which is 

22   already an entity to review, with very active 

23   membership by the Legislature.

24                So I don't think the intention is to 

25   want to create even more administrative layers to 


                                                               2368

 1   review concerns that people have, hence the no 

 2   votes.

 3                Thank you, Mr. President.  I vote 

 4   no.

 5                ACTING PRESIDENT AMEDORE:   Senator 

 6   Krueger in the negative.

 7                Announce the results.

 8                THE SECRETARY:   In relation to 

 9   Calendar 915, those recorded in the negative are 

10   Senators Avella, Comrie, Hoylman, Kavanagh, 

11   Krueger, Parker, Rivera, Sanders and Serrano.  

12   Also Senator Alcantara.  Also Senator Bailey.

13                Ayes, 50.  Nays, 11.

14                ACTING PRESIDENT AMEDORE:   The bill 

15   is passed.

16                THE SECRETARY:   Calendar Number 

17   916, by Senator LaValle, Senate Print 2232A, an 

18   act to amend the Education Law.

19                ACTING PRESIDENT AMEDORE:   Read the 

20   last section.

21                THE SECRETARY:   Section 2.  This 

22   act shall take effect immediately.

23                ACTING PRESIDENT AMEDORE:   Call the 

24   roll.

25                (The Secretary called the roll.)


                                                               2369

 1                ACTING PRESIDENT AMEDORE:   Announce 

 2   the results.

 3                THE SECRETARY:   Ayes, 61.

 4                ACTING PRESIDENT AMEDORE:   The bill 

 5   is passed.

 6                THE SECRETARY:   Calendar Number 

 7   918, by Senator LaValle, Senate Print 2999A, an 

 8   act to amend the Economic Development Law.

 9                ACTING PRESIDENT AMEDORE:   Read the 

10   last section.

11                THE SECRETARY:   Section 4.  This 

12   act shall take effect on the 180th day.

13                ACTING PRESIDENT AMEDORE:   Call the 

14   roll.

15                (The Secretary called the roll.)

16                ACTING PRESIDENT AMEDORE:   Announce 

17   the results.

18                THE SECRETARY:   Ayes, 61.

19                ACTING PRESIDENT AMEDORE:   The bill 

20   is passed.

21                THE SECRETARY:   Calendar Number 

22   919, by Senator Gianaris, Senate Print 3042, an 

23   act to amend the New York City Civil Court Act.

24                ACTING PRESIDENT AMEDORE:   Read the 

25   last section.


                                                               2370

 1                THE SECRETARY:   Section 5.  This 

 2   act shall take effect on the first of January.

 3                ACTING PRESIDENT AMEDORE:   Call the 

 4   roll.

 5                (The Secretary called the roll.)

 6                ACTING PRESIDENT AMEDORE:   Announce 

 7   the results.

 8                THE SECRETARY:   Ayes, 61.

 9                ACTING PRESIDENT AMEDORE:   The bill 

10   is passed.

11                THE SECRETARY:   Calendar Number 

12   922, by Senator Gallivan, Senate Print 3392A, an 

13   act to amend the Economic Development Law.

14                ACTING PRESIDENT AMEDORE:   Read the 

15   last section.

16                THE SECRETARY:   Section 2.  This 

17   act shall take effect immediately.

18                ACTING PRESIDENT AMEDORE:   Call the 

19   roll.

20                (The Secretary called the roll.)

21                ACTING PRESIDENT AMEDORE:   Announce 

22   the results.

23                THE SECRETARY:   Ayes, 61.

24                ACTING PRESIDENT AMEDORE:   The bill 

25   is passed.


                                                               2371

 1                THE SECRETARY:   Calendar Number 

 2   923, by Senator Montgomery, Senate Print 3739, an 

 3   act to amend the Education Law.

 4                ACTING PRESIDENT AMEDORE:   Read the 

 5   last section.

 6                THE SECRETARY:   Section 2.  This 

 7   act shall take effect on the 120th day.

 8                ACTING PRESIDENT AMEDORE:   Call the 

 9   roll.

10                (The Secretary called the roll.)

11                ACTING PRESIDENT AMEDORE:   Announce 

12   the results.

13                THE SECRETARY:   Ayes, 58.  Nays, 3.  

14   Senators Croci, Murphy and Ranzenhofer recorded 

15   in the negative.

16                ACTING PRESIDENT AMEDORE:   The bill 

17   is passed.

18                THE SECRETARY:   Calendar Number 

19   924, by Senator Akshar, Senate Print 4120A, an 

20   act to amend the Executive Law.

21                ACTING PRESIDENT AMEDORE:   Read the 

22   last section.

23                THE SECRETARY:   Section 2.  This 

24   act shall take effect immediately.

25                ACTING PRESIDENT AMEDORE:   Call the 


                                                               2372

 1   roll.

 2                (The Secretary called the roll.)

 3                ACTING PRESIDENT AMEDORE:   Announce 

 4   the results.

 5                THE SECRETARY:   Ayes, 60.  Nays, 1.  

 6   Senator Kavanagh recorded in the negative.

 7                ACTING PRESIDENT AMEDORE:   The bill 

 8   is passed.

 9                THE SECRETARY:   Calendar Number 

10   925, by Senator Jacobs, Senate Print 4590A, an 

11   act to amend the State Administrative Procedure 

12   Act.

13                ACTING PRESIDENT AMEDORE:   Read the 

14   last section.

15                THE SECRETARY:   Section 5.  This 

16   act shall take effect immediately.

17                ACTING PRESIDENT AMEDORE:   Call the 

18   roll.

19                (The Secretary called the roll.)

20                ACTING PRESIDENT AMEDORE:   Announce 

21   the results.

22                THE SECRETARY:   Ayes, 60.  Nays, 1.  

23   Senator Hoylman recorded in the negative.

24                ACTING PRESIDENT AMEDORE:   The bill 

25   is passed.


                                                               2373

 1                THE SECRETARY:   Calendar Number 

 2   926, by Senator Jacobs, Senate Print 5828, an act 

 3   to amend the Legislative Law.

 4                ACTING PRESIDENT AMEDORE:   Read the 

 5   last section.

 6                THE SECRETARY:   Section 5.  This 

 7   act shall take effect on the 90th day.

 8                ACTING PRESIDENT AMEDORE:   Call the 

 9   roll.

10                (The Secretary called the roll.)

11                ACTING PRESIDENT AMEDORE:   Announce 

12   the results.

13                THE SECRETARY:   Ayes, 61.

14                ACTING PRESIDENT AMEDORE:   The bill 

15   is passed.

16                THE SECRETARY:   Calendar Number 

17   929, by Senator Golden, Senate Print 6793A, an 

18   act to amend the Tax Law.

19                ACTING PRESIDENT AMEDORE:   Read the 

20   last section.

21                THE SECRETARY:   Section 2.  This 

22   act shall take effect immediately.

23                ACTING PRESIDENT AMEDORE:   Call the 

24   roll.

25                (The Secretary called the roll.)


                                                               2374

 1                ACTING PRESIDENT AMEDORE:   Announce 

 2   the results.

 3                THE SECRETARY:   Ayes, 61.

 4                ACTING PRESIDENT AMEDORE:   The bill 

 5   is passed.

 6                That completes the noncontroversial 

 7   reading of the calendar, Senator DeFrancisco.

 8                SENATOR DeFRANCISCO:   Yes, 

 9   Mr. President, would you take up Calendar 913, 

10   Senate 2128, by Senator O'Mara, off of the 

11   controversial calendar, please.

12                ACTING PRESIDENT AMEDORE:   The 

13   Secretary will ring the bell.

14                The Secretary will read.

15                THE SECRETARY:   Calendar Number 

16   913, by Senator O'Mara, Senate Print 2120A, an 

17   act to amend the Tax Law.

18                SENATOR KRUEGER:   Explanation.

19                ACTING PRESIDENT AMEDORE:   Senator 

20   Krueger.

21                SENATOR KRUEGER:   I requested an 

22   explanation, Mr. President.

23                ACTING PRESIDENT AMEDORE:   Senator 

24   O'Mara.

25                SENATOR O'MARA:   Yes, 


                                                               2375

 1   Mr. President.  This bill is a small business tax 

 2   cut that is much needed in New York State, as we 

 3   continually are at the bottom of the list of 

 4   business-competitive states.  Our tax burdens are 

 5   too high in this state.  This bill is an effort 

 6   to ease that burden on our small businesses.

 7                In short, it cuts the small business 

 8   corporate tax rate from 6.5 percent to 4 percent, 

 9   and then from 4 percent to 2.5 percent over the 

10   years 2019 and 2020.

11                It further reduces the personal 

12   income tax rates -- or increases the exemption of 

13   personal income tax for pass-through entities, 

14   those being sole proprietors, LLCs, partnerships 

15   and S corporations.  Currently the exemption 

16   stands only for sole proprietors, so we're 

17   expanding that to improve LLCs, partnerships and 

18   S corps.  And it increases that exemption from a 

19   current income level of maximum $250,000 to an 

20   increase of $500,000.  So we're doubling the 

21   income threshold that qualifies for this and 

22   increasing the percentage of exempt income of 

23   that amount from the current 5 percent to -- in 

24   2019, it will be 10 percent, in 2020 and 

25   thereafter, it will be 15 percent.  It increases 


                                                               2376

 1   the farm businesses to 20 percent in 2019 and 

 2   over and --

 3                ACTING PRESIDENT AMEDORE:   Excuse 

 4   me, Senator O'Mara.

 5                Can we have some order in the house, 

 6   please.  It's hard to hear.

 7                SENATOR O'MARA:   And it also will 

 8   increase -- or include that exemption for 

 9   New York City personal income tax as well, at a 

10   15 percent income exemption of 2019 and after.

11                SENATOR KRUEGER:   Through you, 

12   Mr. President, if the sponsor would please yield 

13   to questions.

14                ACTING PRESIDENT AMEDORE:   Senator 

15   O'Mara, will you yield?  

16                SENATOR O'MARA:   Yes.

17                SENATOR KRUEGER:   What is the 

18   definition of income that is being used for this 

19   bill?  

20                SENATOR O'MARA:   It is the -- for 

21   which part?  For the corporate part or for the 

22   personal income tax part?  

23                SENATOR KRUEGER:   Let's start with 

24   the personal income and then we'll go to 

25   corporate.


                                                               2377

 1                SENATOR O'MARA:   Well, it's 

 2   personal income tax attributed to that net 

 3   business income for the entity for up to the 

 4   first 500,000 of income.

 5                Now, if it's a multiple-owned 

 6   entity, such as a partnership or shareholders in 

 7   an S corp. or an LLC, it would be those 

 8   individual owners up to $500,000 each.  However, 

 9   if the aggregate income of that entity exceeds 

10   $1.5 million, the exemption does not apply to any 

11   of those owners.

12                SENATOR KRUEGER:   Through you, 

13   Mr. President, if the sponsor would continue to 

14   yield.

15                ACTING PRESIDENT AMEDORE:   Senator 

16   Krueger.

17                Does the sponsor continue to yield?  

18                SENATOR O'MARA:   Yes.

19                SENATOR KRUEGER:   Thank you.

20                So I could have an LLC -- I could 

21   have a group of LLCs with a group of partners 

22   owning the LLCs, and as long as we make sure that 

23   no individual LLC is ever defined as having 

24   income of greater than 1.5, we could all take 

25   this deduction from our taxes, jumping from 


                                                               2378

 1   5 percent to 20 percent?  Excuse me, 5 percent to 

 2   15 percent.

 3                SENATOR O'MARA:   Those entities are 

 4   treated separately.  The separate entities are 

 5   not aggregated together.  Each LLC would be 

 6   entitled to that exemption.

 7                SENATOR KRUEGER:   So again, 

 8   Mr. President, through you if the sponsor would 

 9   continue to yield.

10                ACTING PRESIDENT AMEDORE:   Will the 

11   sponsor yield?

12                SENATOR O'MARA:   Yes.

13                SENATOR KRUEGER:   Thank you.

14                So I and a total of five people own 

15   25 LLCs.  We can each take a deduction on each 

16   LLC as long as each LLC does not have income 

17   greater than 1.5 million?  

18                SENATOR O'MARA:   It is -- to 

19   clarify, I guess, my last answer and answer that 

20   question as well, since it's on the individual 

21   taxpayer, not the -- the LLC is not paying tax, 

22   the individual member of that LLC is paying it.  

23   So that individual, if they're earning -- and all 

24   those entities over 1.5 million, then they don't 

25   get the exemption.  They're not -- I was unclear 


                                                               2379

 1   in my last answer, I think.  They're not 

 2   aggregated -- they're not treated separately.  

 3   Because it's personal income tax, they're not 

 4   aggregating all the LLCs.  It's going through 

 5   your personal income tax return.

 6                SENATOR KRUEGER:   Maybe I'm not 

 7   asking the question correctly.  Through you, 

 8   Mr. President, if I can clarify my question.

 9                ACTING PRESIDENT AMEDORE:   You may.

10                SENATOR KRUEGER:   So I'm one of 

11   five partners who owns 25 LLCs.  So I own a share 

12   in 25 LLCs.  I am going to take a personal income 

13   tax deduction for myself for my share of each of 

14   those 25 LLCs, a one-fifth share of each of those 

15   25 LLCs.  As long as each individual LLC doesn't 

16   go over 1.5 million, I can do that, take a 

17   one-fifth share --

18                SENATOR O'MARA:   No.  No.

19                SENATOR KRUEGER:   Where in the bill 

20   am I not allowed to?

21                SENATOR O'MARA:   You as the 

22   shareholder or a member of the LLC would be 

23   entitled to the exemption on your income up to 

24   $500,000.  You don't get it for each LLC.  You're 

25   filing your taxes on your personal income tax 


                                                               2380

 1   return for all those LLCs under your income tax 

 2   return, the income that you earned from all 

 3   those.  So those are all aggregated together in 

 4   determining both the $1.5 million aggregate cap 

 5   and the $500,000 individual.

 6                SENATOR KRUEGER:   So I can take an 

 7   exemption up to $500,000?  

 8                SENATOR O'MARA:   Yes.

 9                SENATOR KRUEGER:   Okay.  So through 

10   you, Mr. President --

11                SENATOR O'MARA:   Except not up to 

12   $500,000.  It's an exemption of that $500,000 of 

13   income of -- depending on what year.  Right now 

14   it's 5 percent, so you would get 5 percent of 

15   that $500,000 exempt from taxes.

16                SENATOR KRUEGER:   Through you, 

17   Mr. President.  So we're jumping to 15 percent -- 

18   through you, Mr. President, if the sponsor would 

19   yield.

20                ACTING PRESIDENT AMEDORE:   Will the 

21   sponsor continue to yield?  

22                SENATOR O'MARA:   Yes.

23                ACTING PRESIDENT AMEDORE:   Yes.

24                SENATOR KRUEGER:   So now it's 

25   5 percent, but it would become 15 percent under 


                                                               2381

 1   your bill.

 2                So I'm asking the question if I own 

 3   a portion of 25 LLCs, I get to calculate it for 

 4   each LLC -- but then you're saying there is some 

 5   maximum deduction from my taxes in total that I 

 6   can take.  So what is that maximum deduction for 

 7   me, for my personal taxes, even though I'm an 

 8   owner of 25 LLCs?  

 9                SENATOR O'MARA:   The maximum 

10   exemption that you would get would be the 

11   percentage, currently 5 percent, of $500,000 -- 

12   of that income would be exempt from taxation.

13                SENATOR KRUEGER:   So it's jumping 

14   to 15 percent.

15                SENATOR O'MARA:   Correct.

16                SENATOR KRUEGER:   Okay.  Through 

17   you, Mr. President, if the sponsor would continue 

18   to yield.

19                ACTING PRESIDENT AMEDORE:   Will the 

20   sponsor continue to yield?

21                SENATOR O'MARA:   Yes.

22                SENATOR KRUEGER:   Thank you.

23                And what is the estimated cost to 

24   the State of New York from making this change, or 

25   the two changes in the bill?


                                                               2382

 1                SENATOR O'MARA:   To the State of 

 2   New York, in our current fiscal year of 2018-'19, 

 3   there's no fiscal impact.  In fiscal year 

 4   2019-'20, it would be $200 million.  In fiscal 

 5   year '20-'21, it would be $346 million.  In 

 6   fiscal year '21-'22 and beyond, it would be 

 7   $495 million per year.

 8                SENATOR KRUEGER:   Through you, 

 9   Mr. President, if the sponsor could continue to 

10   yield.

11                ACTING PRESIDENT AMEDORE:   Does the 

12   sponsor continue to yield?  

13                SENATOR O'MARA:   Yes.

14                SENATOR KRUEGER:   And this bill 

15   would also apply to New York City taxes but no 

16   other local taxes?

17                SENATOR O'MARA:   No other 

18   localities have an income tax.

19                SENATOR KRUEGER:   Well, actually, 

20   Yonkers has --

21                SENATOR O'MARA:   Well, you're 

22   right, Yonkers does.

23                SENATOR KRUEGER:   Yonkers has an 

24   income tax.  

25                Does this apply to Yonkers?  


                                                               2383

 1                SENATOR O'MARA:   No, it does not.  

 2   But perhaps that's an oversight.

 3                SENATOR KRUEGER:   You just chose 

 4   New York City.

 5                SENATOR O'MARA:   Perhaps that's an 

 6   oversight.

 7                And.

 8                SENATOR KRUEGER:   And what is 

 9   the -- through you, Mr. President, if the sponsor 

10   would continue to yield.

11                ACTING PRESIDENT AMEDORE:   Does the 

12   sponsor continue to yield?  

13                SENATOR O'MARA:   Yes.

14                SENATOR KRUEGER:   What is the 

15   estimated growing cost to the City of New York 

16   through your projections?  

17                SENATOR O'MARA:   Excuse me?

18                SENATOR KRUEGER:   What's the 

19   estimated cost to the City of New York for your 

20   bill?

21                SENATOR O'MARA:   I had those costs 

22   broken out here, but I would like to clarify my 

23   last answer when you asked this for the state, 

24   that it's not really a cost to the state, it's 

25   not a cost to the City of New York.  This is 


                                                               2384

 1   allowing business owners, business taxpayers, to 

 2   retain more of their earnings.  It's less that 

 3   the state or the city is taking from these 

 4   businesses that provide jobs to our citizens that 

 5   we need.

 6                The fiscal impact of this, of what 

 7   businesses in New York City would save, for this 

 8   current year is zero.  For the '19-'20 fiscal 

 9   year, it's $46 million that New York City 

10   businesses would save.  In '20-'21, it would be 

11   $80 million.  In '21-'22, it would be 

12   $115 million. 

13                SENATOR KRUEGER:   Through you, 

14   Mr. President, if the sponsor would continue to 

15   yield.

16                SENATOR O'MARA:   Yes.

17                ACTING PRESIDENT AMEDORE:   The 

18   sponsor continues to yield.

19                SENATOR KRUEGER:   So we're having a 

20   semantic discussion.  I asked you what it would 

21   cost, and you pointed out it simply means 

22   businesses aren't paying those taxes.  So that's 

23   true, it saves them that tax cost.

24                But of course government operates 

25   under revenue that it collects from taxes.  


                                                               2385

 1   That's the structure we live under.  

 2                So through you, Mr. President, if 

 3   the sponsor would tell me what we should cut out 

 4   of the state budget with the loss of $495 million 

 5   in tax revenue from this bill?

 6                SENATOR O'MARA:   Frankly, I -- with 

 7   typical growth in revenues, I don't believe there 

 8   would have to be cuts anywhere else.  Some other 

 9   areas might not grow to a certain extent, but I 

10   think this can be made up with economic growth 

11   and the overall growth in revenues that are 

12   collected from year to year in this state and in 

13   the City of New York.

14                SENATOR KRUEGER:   And through you, 

15   Mr. President, if the sponsor would continue to 

16   yield.

17                ACTING PRESIDENT AMEDORE:   Does the 

18   sponsor continue to yield?  

19                SENATOR O'MARA:   Yes.

20                SENATOR KRUEGER:   And since we are 

21   reducing the revenue to the City of New York by 

22   cutting their personal income tax revenue, does 

23   the City of New York support this bill?

24                SENATOR O'MARA:   I don't believe we 

25   have a memo in either opposition or support from 


                                                               2386

 1   it.

 2                SENATOR KRUEGER:   On the bill, 

 3   Mr. President.

 4                SENATOR O'MARA:   But since in this 

 5   body we seem to have no problem levying all types 

 6   of other regulations and rules on the City of 

 7   New York, this really should be considered no 

 8   different than all the rest of the things that 

 9   the New York City Council could do a request on 

10   their own that we do for them here.

11                ACTING PRESIDENT AMEDORE:   Senator 

12   Krueger on the bill.

13                SENATOR KRUEGER:   I want to thank 

14   the sponsor for his answers.  

15                I particularly enjoy his last 

16   comment, because I have frequently pointed out 

17   that this legislative body does consistently make 

18   determinations for the City of New York that the 

19   City of New York did not ask for and in fact has 

20   urged us not to do.

21                So it is consistent with the 

22   practice of this house.  And that's one of the 

23   fundamental problems at the moment with Albany.  

24   When it comes to localities, we don't seem to 

25   recognize their needs or their requests.


                                                               2387

 1                It's also interesting that I would 

 2   argue many of my colleagues strongly support our 

 3   putting limits and rules and requirements on new 

 4   unfunded mandates for localities.  In fact, just 

 5   a little while ago we all voted for Calendar 926, 

 6   S5828, by Senator Jacobs.  I think we all voted 

 7   for it -- I know I voted for it because it would 

 8   require review of unfunded mandates.  

 9                And I would simply like to highlight 

10   that among the other issues I have with this 

11   bill, it's a new unfunded mandate on the City of 

12   New York, to take away their revenue without any 

13   discussion with them.  So I think it actually 

14   flies in the face of some of the things we all 

15   think we support here.

16                I have several problems with this 

17   bill.  One, because it has such a large price 

18   tag, it's actually the kind of bill that needs to 

19   be dealt with within the context of the budget.  

20   That's where we do primary revenue/tax policy 

21   bills.  But I imagine that if this were to pass 

22   both houses, that would be exactly what the 

23   Governor said in his veto message.

24                Two, it's not a bill that's targeted 

25   to small businesses with economic problems.  And 


                                                               2388

 1   in fact if you take a look at existing tax 

 2   policy -- made more so under the new Washington 

 3   Trump tax changes -- we've actually been 

 4   significantly reducing business taxes while doing 

 5   very little for private people, particularly in 

 6   high-property-tax areas.  This is not targeted to 

 7   small start-up businesses, small businesses with 

 8   a certain number of employees.  

 9                I found it particularly interesting 

10   that the bill doesn't even require the business 

11   have one employee.  Which is why I was asking 

12   questions about the LLCs as an example, where I 

13   might be a very wealthy investor in a large 

14   number of LLCs without even having any employees, 

15   and I would be able to maximize my reductions in 

16   my taxes thanks to this bill.  

17                But let's say it was in real estate, 

18   I owned individual houses or individual 

19   buildings, each of which were LLCs separately.  I 

20   would have a huge tax reduction but no actual new 

21   creation of economic activity -- and again, might 

22   not even have to have one employee to take this.

23                So I do think it's important to 

24   think carefully about targeting our proposed tax 

25   changes to those in greatest need.  And I see 


                                                               2389

 1   nothing in this bill that assures us of that.  

 2                There are two sections of the bill.  

 3   I focused my questions on the corporate section.  

 4   There is another section of the bill that 

 5   involves lowering the tax rates for small 

 6   businesses with a maximum income of $500,000.  I 

 7   have less problems with that section of the bill, 

 8   and perhaps I wouldn't end up debating or voting 

 9   against a bill that simply addressed that 

10   section.  

11                But the fact is, most of the loss of 

12   revenue to the state and the City of New York 

13   from this bill will actually come from people who 

14   it's not at all clear are in need of tax 

15   reductions at this moment in history.  It's not 

16   at all clear that they are actually struggling 

17   small businesses -- and there are many.  But I 

18   don't necessarily think this bill does anything 

19   to address their needs.

20                And of course whenever we're 

21   reducing taxes, we need to ask the question what 

22   are we going to not pay for in our state -- and 

23   in this case city -- budget because we don't have 

24   that revenue?  Who is going to pay the price for 

25   our deciding to give hundreds of millions of 


                                                               2390

 1   dollars in tax exemptions to entities who might 

 2   not even need the help?  

 3                So I would urge a no vote.  I would 

 4   urge my colleague to go back and perhaps separate 

 5   this bill into multiple pieces and think through 

 6   who would actually be the winners and the losers.  

 7   And he has an opportunity to do so, because I 

 8   don't think this is the kind of bill that would 

 9   become law in the State of New York.  

10                It is fodder for a discussion within 

11   the budget for next year, and that's a healthy 

12   reason to have a bill.  And that's a healthy 

13   reason to have a debate on the bill on the floor 

14   of the Senate.  

15                And so I vote no, Mr. President.  

16   Thank you.

17                ACTING PRESIDENT AMEDORE:   Senator 

18   Hoylman.

19                SENATOR HOYLMAN:   Thank you, 

20   Mr. President.

21                I want to thank the sponsor and 

22   Senator Krueger for their discussion.

23                I wanted to point out a fact about 

24   the bill regarding the income threshold for LLCs, 

25   which is set at $1.5 million.  This bill, I know 


                                                               2391

 1   the intention is to help small businesses and 

 2   farms.  But $1.5 million may not be a small 

 3   business in New York.  The median income for 

 4   individuals self-employed at their own 

 5   incorporated businesses in New York in 2015 was 

 6   $52,156 a year.  And the median income for 

 7   unincorporated firms was $23,148 a year.  I think 

 8   this threshold is a little high.

 9                Secondly, I'd like to say something 

10   about LLCs generally speaking.  You know, I think 

11   a lot of New Yorkers would be surprised to find 

12   out that the State of New York doesn't keep 

13   records as to the beneficial owner of a limited 

14   liability corporation.  Nowhere in the State of 

15   New York can a citizen, a member of law 

16   enforcement, a member of the press actually 

17   determine who the beneficial owner is of an LLC.  

18   We have to do more work in this chamber to open 

19   up LLCs for public inspection, not give them 

20   additional tax breaks.

21                So I'll be voting in the negative.  

22   Thank you, Mr. President.

23                ACTING PRESIDENT AMEDORE:   Are 

24   other members wishing to be heard on this bill?  

25                Seeing none, the debate is closed.  


                                                               2392

 1                The Secretary will ring the bell.  

 2                Read the last section.

 3                THE SECRETARY:   Section 4.  This 

 4   act shall take effect immediately.

 5                ACTING PRESIDENT AMEDORE:   Call the 

 6   roll.

 7                (The Secretary called the roll.)

 8                ACTING PRESIDENT AMEDORE:   Senator 

 9   Helming to explain her vote.

10                SENATOR HELMING:   Thank you, 

11   Mr. President.  

12                Small business is significant to 

13   New York State's economy.  With over 500,000 

14   small businesses in New York State employing over 

15   3 million individuals, small business is the 

16   backbone of our economy and our communities.  

17   Whether it's the shops that line our Main Streets 

18   or the small farms that dot our rural roads, 

19   these small businesses and farms are truly the 

20   hearts and souls of our communities.

21                And this bill targets these small 

22   businesses and farms which largely have been 

23   excluded from previously enacted tax reforms.  I 

24   commend Senator O'Mara for his leadership on this 

25   initiative, and I am proud to support small 


                                                               2393

 1   businesses, not only in my district but across 

 2   New York State, by voting aye.

 3                Thank you.

 4                ACTING PRESIDENT AMEDORE:   Senator 

 5   Helming in the affirmative.

 6                Announce the results.

 7                THE SECRETARY:   In relation to 

 8   Calendar 913, those recorded in the negative are 

 9   Senators Alcantara, Bailey, Comrie, Gianaris, 

10   Hoylman, Kavanagh, Krueger, Montgomery, Parker, 

11   Rivera, Sanders, SepĂșlveda, Serrano.  Also 

12   Senator Stavisky.  

13                Absent from voting:  Senator 

14   Hamilton.

15                Ayes, 48.  Nays, 14.

16                (Comments off the record.)

17                ACTING PRESIDENT AMEDORE:   The bill 

18   is passed.

19                Senator DeFrancisco.

20                SENATOR DeFRANCISCO:   Could we now 

21   take up Calendar Number 910, Senate 1116A, by 

22   Senator Akshar.

23                ACTING PRESIDENT AMEDORE:   The 

24   Secretary will read.

25                THE SECRETARY:   Calendar Number 


                                                               2394

 1   910, by Senator Akshar, Senate Print 1116A, an 

 2   act to amend the Real Property Tax Law.

 3                SENATOR KRUEGER:   Explanation.

 4                ACTING PRESIDENT AMEDORE:   Senator 

 5   Krueger for an explanation.  Sponsor, will you 

 6   yield for an explanation?  

 7                SENATOR AKSHAR:   Of course.  

 8                Senator Krueger, this particular 

 9   bill simply extends the existing STAR program to 

10   small businesses throughout the State of 

11   New York.

12                SENATOR KRUEGER:   Through you, 

13   Mr. -- oh.  Were you done, Senator?  I don't want 

14   to cut you off.

15                SENATOR AKSHAR:   Yes, I was.

16                SENATOR KRUEGER:   Okay, just 

17   double-checking.  

18                Mr. President, through you, if the 

19   sponsor would yield.

20                ACTING PRESIDENT AMEDORE:   Does the 

21   sponsor yield?  

22                SENATOR AKSHAR:   Absolutely.

23                SENATOR KRUEGER:   So this bill 

24   takes STAR, which is designed as a personal 

25   income tax reduction for homeowners and says 


                                                               2395

 1   we're going to apply it to businesses.

 2                So if the sponsor could please 

 3   explain to me what his definition is of a small 

 4   business.

 5                SENATOR AKSHAR:   Senator --  

 6   Mr. President, through you.  Senator, it is a 

 7   property tax exemption, not a personal income tax 

 8   exemption.  

 9                And small business as defined in 

10   this particular piece of legislation are 

11   businesses with 100 and fewer employees.

12                SENATOR KRUEGER:   Through you, 

13   Mr. President, if the sponsor would continue to 

14   yield.

15                SENATOR AKSHAR:   Yes.

16                ACTING PRESIDENT AMEDORE:   Will the 

17   sponsor continue to yield?  

18                SENATOR AKSHAR:   Yes.

19                SENATOR KRUEGER:   And is there a 

20   size limit on the revenue of any business 

21   eligible for this property tax reduction?

22                SENATOR AKSHAR:   There is no limit 

23   in terms of how successful a business is or 

24   isn't.  Other than the only limit is, you know, a 

25   business could have several different locations.  


                                                               2396

 1   And this extension of STAR would only relate to 

 2   one of their locations.

 3                SENATOR KRUEGER:   Through you, 

 4   Mr. President, if the sponsor will continue to 

 5   yield.

 6                SENATOR AKSHAR:   Yes.

 7                ACTING PRESIDENT AMEDORE:   The 

 8   sponsor continues to yield.

 9                SENATOR KRUEGER:   Thank you.

10                Could the sponsor cite which section 

11   of the bill would limit it to just one location?

12                SENATOR AKSHAR:   I'm sorry, 

13   Senator, would you be so kind as to repeat your 

14   question?  

15                SENATOR KRUEGER:   You just answered 

16   that a business that had multiple locations could 

17   only take this new STAR credit for one location.  

18   I was wondering where in the bill it would say 

19   that.

20                SENATOR AKSHAR:   Senator, again, as 

21   you well know, based on the current STAR program 

22   and the current statute, you can only get the 

23   exemption on one of your properties.  So it's 

24   simply taking the existing statute and how the 

25   program works and extending it to small 


                                                               2397

 1   businesses with 100 or fewer employees.

 2                SENATOR KRUEGER:   Through you, 

 3   Mr. President, if the sponsor will continue to 

 4   yield.

 5                SENATOR AKSHAR:   Yes, 

 6   Mr. President.

 7                ACTING PRESIDENT AMEDORE:   The 

 8   sponsor continues to yield.

 9                SENATOR KRUEGER:   I'm confused how 

10   this bill matches with the existing STAR, because 

11   that's a primary residence.  Are you saying that 

12   this bill would require a business to declare one 

13   location its primary residence?  And what 

14   would be the legal definition of a primary 

15   residence for a business?

16                SENATOR AKSHAR:   Senator -- 

17   Mr. President, through you.  Senator, don't be 

18   confused.  It's -- again, it's just taking the 

19   existing program and allowing the exemption for 

20   one location of a businessman or -woman.

21                So, okay, let me just explain a 

22   little bit more.  You have a flower shop at 

23   123 Broadway.  Now you can have the -- you can 

24   take the STAR exemption at your business located 

25   at 123 Broadway.


                                                               2398

 1                SENATOR KRUEGER:   Through you, 

 2   Mr. President, if the sponsor would continue to 

 3   yield.

 4                ACTING PRESIDENT AMEDORE:   Will the 

 5   sponsor continue to yield?  

 6                SENATOR AKSHAR:   Yes, 

 7   Mr. President.

 8                SENATOR KRUEGER:   And then if I 

 9   have a second flower shop at 352 Broadway and a 

10   third flower shop at 475 Broadway, those are not 

11   eligible.  Where in the law does it say that?

12                SENATOR AKSHAR:   Mr. President, 

13   I'm -- I hope you're not in competition with 

14   yourself.  That's very close, only a couple of 

15   blocks away.

16                SENATOR KRUEGER:   In New York City 

17   actually, that could be whole new neighborhoods.

18                SENATOR AKSHAR:   No, you can only 

19   take the exemption on one of your locations.  You 

20   could choose 352 Broadway; maybe you want to take 

21   the exemption there.  Or 123 Broadway.  Wherever 

22   you choose to take the exemption, you can take 

23   it.

24                SENATOR KRUEGER:   Through you, 

25   Mr. President, if the sponsor will continue to 


                                                               2399

 1   yield.

 2                ACTING PRESIDENT AMEDORE:   Does the 

 3   sponsor continue to yield?  

 4                SENATOR AKSHAR:   Absolutely.

 5                SENATOR KRUEGER:   So I am actually 

 6   looking at the bill text, and the sponsor is 

 7   inserting a business tax exemption on property 

 8   into the existing STAR legislation.  So 

 9   Section 3, paragraph B, primary residence:  The 

10   property must serve as the primary residence of 

11   one or more owners, therefore -- unless such 

12   property is owned by a small business, as defined 

13   in paragraph G of this subdivision.

14                So it seems to imply that it doesn't 

15   have to be only a primary residence, because it's 

16   an "unless it's a business."

17                So I'm still very confused as to how 

18   this bill makes explicit you could only take this 

19   on one business location if you had multiple 

20   business locations.  I just think that it's not 

21   worded the way -- I believe that the sponsor's 

22   intent is to have only a primary location, but I 

23   think it might be a bill drafting error because I 

24   don't read the bill that way.

25                SENATOR AKSHAR:   Well, in the 


                                                               2400

 1   current statute you can only take the exemption 

 2   on your primary residence, yes?  Can we agree on 

 3   that?

 4                SENATOR KRUEGER:   Yes.  But then 

 5   you added the word "unless," and then you went 

 6   into businesses.  So apparently primary residence 

 7   doesn't apply to businesses.

 8                SENATOR AKSHAR:   Could we agree 

 9   that it's within the definition of primary?

10                SENATOR KRUEGER:   Through you, 

11   Mr. President, I'm not sure we can agree on that.  

12   I actually think there would be a better way to 

13   draft it to try to make it clear that a small 

14   business could only take this once for one 

15   address.

16                SENATOR AKSHAR:   Mr. President, I'm 

17   happy -- so long as it sounds to me like my 

18   esteemed colleague thinks this is a good idea -- 

19   happy to do a chapter amendment to clear that up.

20                SENATOR KRUEGER:   Thank you.  

21   Unfortunately, I don't think the whole thing is a 

22   good idea.  That was just one of my points.  But 

23   I appreciate you making a chapter amendment.  

24                SENATOR AKSHAR:   I took a chance, 

25   Senator Krueger.


                                                               2401

 1                (Laughter.)

 2                SENATOR KRUEGER:   I appreciate 

 3   that.

 4                I'm going to get refocused, 

 5   Mr. President.

 6                ACTING PRESIDENT AMEDORE:   Are you 

 7   going on the bill?

 8                SENATOR KRUEGER:   The sponsor isn't 

 9   supposed to be charming and funny when I'm trying 

10   to argue with him.  My husband does that 

11   sometimes too, it's a problem.  

12                (Laughter.)

13                SENATOR KRUEGER:   I'm sorry, a 

14   little TMI here on the floor of the Senate.

15                So this bill also doesn't define the 

16   kinds of businesses, just that it's a small 

17   business.  So what if the business -- through you 

18   Mr. President, if the sponsor would yield.

19                SENATOR AKSHAR:   Yes, I will 

20   Mr. President.

21                ACTING PRESIDENT AMEDORE:   The 

22   sponsor continues to yield.

23                SENATOR KRUEGER:   What if a very 

24   large corporation is the owner of a lot of 

25   individual small businesses?  Can that 


                                                               2402

 1   corporation take the property tax deduction on 

 2   each of the businesses as long as they have a 

 3   different name or might be a different LLC?  

 4   Because corporations can own LLCs.  So if I'm big 

 5   corporation X and I own 300 LLCs, am I allowed to 

 6   take this business deduction on each business 

 7   with its own corporate name, but I'm actually the 

 8   parent corporation who deals with the taxes?

 9                SENATOR AKSHAR:   So if the LLCs are 

10   individual taxpayers, they in fact could take 

11   this exemption.  

12                However, in terms of the state 

13   looking at business globally, if there's only -- 

14   if the business at the top is the only taxpayer, 

15   then no, those smaller LLCs would not be eligible 

16   to take the exemption.

17                SENATOR KRUEGER:   So through you, 

18   Mr. President, if the sponsor would continue to 

19   yield.

20                SENATOR AKSHAR:   I'm happy to, 

21   Mr. President.

22                ACTING PRESIDENT AMEDORE:   The 

23   sponsor continues to yield.

24                SENATOR KRUEGER:   So let's use the 

25   example of franchises.  Would franchises of a 


                                                               2403

 1   major corporation -- fill in your blank, famous 

 2   fast food company -- each be able to -- how is 

 3   the property tax going to be applied?  Because my 

 4   understanding is many of the fast food 

 5   franchises, they -- the corporation may own the 

 6   underlying property and then franchise out the 

 7   running of the business.  

 8                I know of a particular very well 

 9   known gymnasium that people sign up for, and that 

10   the company points out they make the money on the 

11   real estate, not actually on the running of the 

12   gym.  So they franchise out the running of the 

13   gyms, they own all the buildings, they're an 

14   enormous and wealthy corporation.  Would they be 

15   allowed to take a STAR for each business 

16   location? 

17                SENATOR AKSHAR:   I'll just -- I'll 

18   respectfully disagree in terms of, you know, a 

19   corporation owning many different smaller ones, 

20   but -- and just revert back to my earlier 

21   sentiment about, you know, if they were 

22   individual businesses, you owned one, I owned 

23   one, we could take that exemption.

24                If you owned six of them, why then 

25   you could only take -- you couldn't take six 


                                                               2404

 1   exemptions, only one.

 2                SENATOR KRUEGER:   I'm sorry, I -- 

 3   could the sponsor clarify his answer?  I got a 

 4   little confused.  

 5                SENATOR AKSHAR:   I disagree with my 

 6   colleague in terms of, you know, a corporation 

 7   owning many of the locations -- we're talking 

 8   specifically about franchises.  I'm offering that 

 9   franchises are generally owned by individual 

10   people.  You own one, I own one.  

11                So the point I'm making to you is if 

12   you have a McDonald's at 123 Broadway, it's okay, 

13   take the exemption.  If I'm your competitor at 

14   352 Broadway, I'm going to take the exemption as 

15   well.  

16                If you own five McDonald'ses on 

17   Broadway, you'll only be able to take one 

18   exemption.  Of course if you are, 

19   Senator Krueger, under 100 employees as you get 

20   bigger.

21                SENATOR KRUEGER:   One moment.

22                SENATOR AKSHAR:   Of course.

23                SENATOR KRUEGER:   Through you, 

24   Mr. President, a follow-up question to the 

25   sponsor.


                                                               2405

 1                SENATOR AKSHAR:   Of course, 

 2   Senator.  

 3                ACTING PRESIDENT AMEDORE:   The 

 4   sponsor continues to yield.

 5                SENATOR KRUEGER:   Thank you.  

 6                So again, I own the property of 

 7   10 different flower shops.  Am I the one allowed 

 8   to take the property tax deduction for each of 

 9   the flower shops because they are separate 

10   corporations?  Or I'll make it easier.  

11                Three are flower shops, five are 

12   franchised restaurants, and two are retail 

13   clothing.  Am I allowed to take 10 different STAR 

14   exemptions under the business tax?  Because 

15   they're 10 different businesses.  It's a property 

16   tax exemption, but I own each of those 

17   properties.

18                SENATOR AKSHAR:   Are you -- so let 

19   me ask you a -- Mr. President.

20                ACTING PRESIDENT AMEDORE:   Thank 

21   you.  Thank you.

22                SENATOR AKSHAR:   Of what you've 

23   described, are each of those locations 

24   individually owned by separate people?  Are they 

25   separate businesses all owned by you?  Or does 


                                                               2406

 1   Krueger Real Estate Mogul Corporation own all of 

 2   what you just described?

 3                SENATOR KRUEGER:   They're each a 

 4   separate LLC.  I may or may not be an investor in 

 5   some or all of the businesses.  We can make me an 

 6   investor in all of those businesses.  But I'm the 

 7   mogul.

 8                SENATOR AKSHAR:   If it's a separate 

 9   business, then they are eligible for the 

10   exemption.

11                SENATOR KRUEGER:   So I would be 

12   eligible for 10 exemptions.

13                SENATOR AKSHAR:   Yes, you would.  

14   Mr. President, through you.  Yes, you would.

15                SENATOR KRUEGER:   Okay, thank you.  

16                So through you, Mr. President, if 

17   the sponsor would continue to yield.

18                ACTING PRESIDENT AMEDORE:   Will the 

19   sponsor continue to yield?  

20                SENATOR AKSHAR:   Yes, 

21   Mr. President.

22                SENATOR KRUEGER:   Thank you.

23                So if I am a Kushner or a Trump who 

24   owns an enormous number of LLC buildings in the 

25   City of New York, I could take a property tax 


                                                               2407

 1   exemption under this law for each of my LLC 

 2   buildings?  

 3                SENATOR AKSHAR:   Well, 

 4   Mr. President, through you, so long as that small 

 5   business employed 100 or fewer people and that 

 6   particular small business was filing taxes 

 7   independently.

 8                SENATOR KRUEGER:   Through you, 

 9   Mr. President.  So I think the answer would be 

10   yes, because most LLC buildings don't have more 

11   than 100 employees.

12                Through you, Mr. President, if the 

13   sponsor will continue to yield.

14                ACTING PRESIDENT AMEDORE:   Will the 

15   sponsor continue to yield?  

16                SENATOR AKSHAR:   Yes, 

17   Mr. President.

18                SENATOR KRUEGER:   How many 

19   businesses does the sponsor believe this would 

20   apply to in the State of New York?  And how much 

21   reduction in property tax collection might we see 

22   under this bill?

23                SENATOR AKSHAR:   Well -- 

24   Mr. President, through you -- if we keep going in 

25   the direction we're going, it's going to be less 


                                                               2408

 1   and less because people are leaving this state at 

 2   an alarming rate.  

 3                And this particular -- an iteration 

 4   of this particular piece of legislation was put 

 5   in the one-house, and the financial attached to 

 6   that was $275 million.

 7                SENATOR KRUEGER:   Through you, 

 8   Mr. President, on the bill.

 9                ACTING PRESIDENT AMEDORE:   Senator 

10   Krueger on the bill.

11                SENATOR KRUEGER:   I want to thank 

12   the sponsor for his answers.  

13                I have to say this bill and the 

14   previous bill I debated have similar themes, 

15   although they're very different bills.  They take 

16   the position that they are bills for small 

17   businesses.  But I think they both flunk the test 

18   of defining small business, because simply 

19   defining a business as being somebody with less 

20   than a hundred employees -- or, on the previous 

21   bill, up to zero employees -- doesn't actually 

22   get at the question are you a small business 

23   trying to hold on and create jobs and economic 

24   activity in our communities.  

25                I think there's a perception if you 


                                                               2409

 1   say the word "small business" you mean those 

 2   mom-and-pop stores that need help, or start-up 

 3   companies that need help.  And I actually would 

 4   love to work on legislation that was carefully 

 5   targeted to exactly those needs.  And I've 

 6   actually seen many bills come to the floor of the 

 7   Senate that do sincerely have the goal of doing 

 8   that.  Unfortunately, I think the way both of 

 9   these bills are written, they don't.

10                On this bill, it's actually taking a 

11   tax that was designed for individuals to deal 

12   with high property taxes when they were 

13   lower-income or were what we call sometimes 

14   property-wealthy and cash-poor.  So the STAR was 

15   designed to be a property tax exemption for 

16   personal primary residents, for human beings up 

17   to a certain income level.  And I get it.  

18                When you say you want to expand that 

19   statute, which is what the sponsor has done, to 

20   be a business tax deduction, you run into a whole 

21   series of problems, and that I just tried to 

22   highlight some of them here today.  

23                One, it's not necessarily businesses 

24   who are in fiscal trouble.  Two, it can be LLCs 

25   or giant corporations or some of the wealthiest 


                                                               2410

 1   people in this country who have broken their 

 2   business models up into lots and lots of 

 3   different individual corporate structures.

 4                It isn't based on some income 

 5   measurement or need or gross or net or any kind 

 6   of income or formula of being in need.  It just 

 7   says it's a tax reduction for small business.  

 8   But again, it's not defining the problem 

 9   correctly, and it's not defining the target 

10   correctly. 

11                And sincerely, trying to turn a 

12   personal property tax reduction system into a 

13   corporate business tax reduction model just isn't 

14   the right way to do it.  Even when you try really 

15   hard, you're going to miss the mark.

16                It's yet another bill that needs to 

17   be dealt with within the budget.  And the sponsor 

18   did say that it was in the one-house budget, so 

19   there was an attempt.  And I wasn't in the room 

20   discussing why it failed as an attempt in 

21   negotiations, perhaps because of some of the 

22   issues I raised here today.  

23                So it needs to be -- well, I don't 

24   know that this bill needs to be rethought, with 

25   all due respect.  I actually think we have to sit 


                                                               2411

 1   down and say what are the real tax problems for 

 2   small businesses after we look at what we've 

 3   already done, because we've done quite a bit of 

 4   tax reduction for small businesses.  And we've 

 5   also done radical changes in business taxes under 

 6   the federal law.  

 7                I think it's worthwhile for this 

 8   house to have at least a roundtable, if not a 

 9   sub-task force on looking at the changes in tax 

10   policy for businesses that have been taking 

11   place, the impact on actual small businesses, 

12   what has worked and not worked in other places.  

13   And I am more than willing to sit and really 

14   explore the kinds of models that I actually think 

15   could make a difference for our small struggling 

16   businesses in New York.

17                But I would also argue that we need 

18   to take a hard look -- because we brought up 

19   property taxes in this bill -- at the fact that 

20   we have a continuing and enormous problem for 

21   personal property taxes for a large number of 

22   people in this state, despite our cap, and that 

23   we really need to go back to square one and say 

24   what are we doing to help people who are actually 

25   at risk of losing their homes or leaving the 


                                                               2412

 1   State of New York because their property taxes 

 2   are so high, and should we be revisiting 

 3   circuit-breaker bills -- I know that Senator 

 4   Little and I have worked on circuit breaker 

 5   proposals in the past, which I actually think are 

 6   well worth revisiting at this point in history.  

 7                And that we have to -- and there may 

 8   be other models.  Apparently a Long Island 

 9   association of some kind -- I don't know which 

10   one, Long Island colleagues -- came out with a 

11   set of proposals just this week to deal with 

12   their property tax problems, I just read an 

13   article this morning.

14                So these are real issues.  I want to 

15   get to the right answers.  Unfortunately, I have 

16   to say this bill also doesn't get us to the right 

17   answer.  I appreciate the sponsor's effort.  I'll 

18   be voting no.

19                Thank you, Mr. President.

20                ACTING PRESIDENT AMEDORE:   Senator 

21   Brooks.

22                SENATOR BROOKS:   Thank you, 

23   Mr. President.  On the bill.

24                ACTING PRESIDENT AMEDORE:   Senator 

25   Brooks on the bill.


                                                               2413

 1                SENATOR BROOKS:   We are in a 

 2   situation in this state where changes in the 

 3   federal tax law have dramatically changed the use 

 4   and the meaning of residential personal property 

 5   taxes.  There are residents in my district and 

 6   districts across the state who live in homes that 

 7   have appreciated significantly in value over the 

 8   years, and they are being taxed as though the 

 9   value of that home is reflective of their 

10   personal financial condition, and it's not.

11                The STAR program was put in place to 

12   assist residential homeowners in that situation.  

13   We're going to be in a situation in this state 

14   that many individuals are going to be paying 

15   taxes on their taxes.  In my district there are 

16   people telling me that under this new tax law, 

17   they cannot stay in their home because the taxes 

18   are just going to be too high -- people on fixed 

19   incomes, seniors who spent their life funding the 

20   community, are going to be in a position where 

21   they're losing their home.

22                It's wrong to take a proposal that 

23   was put in place to address personal income taxes 

24   and use that application for a business 

25   environment.  And let us remember that in the 


                                                               2414

 1   business environment, all those taxes are 

 2   tax-deductible on their federal income tax 

 3   returns.  There's no limitation.  The homeowners 

 4   in this state have a limitation of $10,000 in 

 5   SALT-related deductions.  They need help.  It's 

 6   wrong that we move in this direction.

 7                I agree with Senator Krueger, we do 

 8   have to help businesses, but not to use a tool 

 9   that was designed for residential property taxes 

10   and make it an application to a business, at the 

11   same time ignoring the needs of the residents of 

12   this state who own homes and are paying excessive 

13   property taxes now.

14                I'll be voting no on this bill.  

15   Thank you.

16                ACTING PRESIDENT AMEDORE:   Thank 

17   you, Senator Brooks.

18                Senator Hoylman.

19                SENATOR HOYLMAN:   Thank you, 

20   Mr. President.  I wanted to make a brief point.  

21   I think the bill --

22                ACTING PRESIDENT AMEDORE:   Senator 

23   Hoylman on the bill?  

24                SENATOR HOYLMAN:   On the bill, 

25   Mr. President.


                                                               2415

 1                ACTING PRESIDENT AMEDORE:   On the 

 2   bill.

 3                SENATOR HOYLMAN:   I wanted to make 

 4   a brief point about the bill where I think it 

 5   misses the mark on defining small businesses.  

 6                As was discussed by our colleagues, 

 7   small businesses is defined only on the number of 

 8   employees, 100 or fewer.  Well, in the West Side 

 9   of Manhattan, I have to say -- which I 

10   represent -- there are a number of technology 

11   companies who have very few employees but very, 

12   very high revenue.  

13                For example, the company WhatsApp, 

14   55 employees, qualifies under the sponsor's bill 

15   as a small business.  In 2014, the company was 

16   acquired by Facebook for $19 billion -- 

17   19 billion.  Don't think that's a small business.  

18   Each employee was awarded $350 million in that 

19   sale.

20                Second example, also on the West 

21   Side of Manhattan, Instagram.  In 2012, Instagram 

22   only had 13 employees.  Again, Facebook purchased 

23   them for $1 billion.  Not a small business.

24                I think the fatal flaw of this 

25   possibly well-intentioned legislation is that it 


                                                               2416

 1   does not define revenue or evaluation of a small 

 2   business.  

 3                I'll be voting in the negative.  

 4   Thank you.

 5                ACTING PRESIDENT AMEDORE:   Thank 

 6   you, Senator Hoylman.

 7                Senator Stavisky.

 8                SENATOR SAVINO:   Thank you, 

 9   Mr. President.

10                In Queens we have a lot of small 

11   businesses, and in fact they are the backbone --

12                ACTING PRESIDENT AMEDORE:    

13   Senator -- Senator Stavisky, excuse me.  On the 

14   bill?  

15                SENATOR STAVISKY:   On the bill.

16                ACTING PRESIDENT AMEDORE:   On the 

17   bill.

18                SENATOR STAVISKY:   Thank you.

19                And they are the backbone of the 

20   economic community that is doing fairly well in 

21   much of Queens and certainly in my district.  

22                And yet we are also a community of 

23   people who own their own homes, own shares in a 

24   corporation that own the building -- 

25   cooperators -- and we have renters.  And our 


                                                               2417

 1   whole property tax structure is, I think, 

 2   misaligned in many respects.  And this bill is 

 3   not going to remedy the problems that we have in 

 4   Queens County and really throughout the state.  

 5                And for that reason, and for the 

 6   reasons expressed by Senator Krueger and 

 7   Senator Brooks, I vote no.

 8                ACTING PRESIDENT AMEDORE:   Are any 

 9   other members wishing to be heard on the bill?  

10                Seeing none, the debate is closed.  

11                The Secretary will ring the bell.

12                Read the last section.

13                THE SECRETARY:   Section 2.  This 

14   act shall take effect immediately.

15                ACTING PRESIDENT AMEDORE:   Call the 

16   roll.

17                (The Secretary called the roll.)

18                ACTING PRESIDENT AMEDORE:   Senator 

19   Akshar to explain his vote.

20                SENATOR AKSHAR:   Thank you, 

21   Mr. President.

22                Senator Krueger mentioned that there 

23   seemed to be a theme as we were taking up some of 

24   these bills today.  Senator, there is.  It's 

25   about making New York more affordable and 


                                                               2418

 1   creating more opportunities for all New Yorkers.  

 2   That's why we're trying to advance this 

 3   legislation today.  

 4                I think one thing that we can all 

 5   agree on, whether we're from Binghamton or 

 6   Brooklyn or the North Country or Manhattan -- 

 7   even the West Side of Manhattan, where Senator 

 8   Hoylman is from -- is that we have an abysmal 

 9   business climate.  We're ranked almost dead last 

10   in the nation in terms of our business climate.

11                ACTING PRESIDENT AMEDORE:   Excuse 

12   me, Senator Akshar.  

13                Can we have some order in the house, 

14   please.  Thank you.

15                SENATOR AKSHAR:   We have an abysmal 

16   business climate, and we have to do something.  

17   To my esteemed colleague Senator Stavisky, I 

18   think doing nothing -- I'm not entirely sure that 

19   that's the right thing to do.  I think that this 

20   would in fact help some people in your district.

21                And Senator Brooks mentioned that 

22   the federal government is to blame for the taxes 

23   and so on and so forth.  Let us stop blaming the 

24   federal government for our woes.  Let us work 

25   together and find common-sense solutions to help 


                                                               2419

 1   us reduce taxes for all New Yorkers, regardless 

 2   of where we're from.  Property taxes are high, I 

 3   understand that.  Much higher in the district 

 4   that you represent than they are in my district, 

 5   probably.  

 6                There's a great thing that we could 

 7   do here all, Republicans and Democrats.  Medicaid 

 8   is a driver of property taxes, right?  If 

 9   Medicaid is that important to us, which it is -- 

10   it's important to me, and I know it's important 

11   to my friends across the aisle -- let us pay for 

12   it.  Let the state find the money to pay for it.  

13                Maybe we could use some of the 

14   billions and billions of dollars that we're 

15   investing in failed economic development programs 

16   around the state to pay for some of this stuff.  

17   $275 million to do that?  I would offer maybe we 

18   shouldn't be putting colored lights on New York 

19   City bridges.  Or we shouldn't be creating bike 

20   paths from Canada to New York City.  Let us 

21   invest some of that money in programs like this 

22   so we can help reduce taxes for all New Yorkers.  

23                I vote aye.

24                ACTING PRESIDENT AMEDORE:   Senator 

25   Akshar in the affirmative.  


                                                               2420

 1                Senator Brooks to explain his vote.

 2                SENATOR BROOKS:   Thank you, 

 3   Mr. President.  

 4                With response as to who's 

 5   responsible for the situation that we're in, let 

 6   us blame the federal government.  Let us 

 7   recognize that many districts across this state, 

 8   and particularly on Long Island, have seen on a 

 9   infusion of students that are new to this 

10   country, students that have no understanding of 

11   the English language, students that are many 

12   years behind in their educational knowledge, 

13   students that are exceptionally expensive to 

14   educate right now.  They are people that have 

15   been relocated to those communities by the 

16   federal government.  The federal government has 

17   said that it is the responsibility of the local 

18   community to fund the education of those 

19   students, and then the federal government says 

20   that the money you have to spend to educate these 

21   students is not going to be deductible on your 

22   federal taxes.  

23                It's wrong.  What's going on is 

24   wrong.  This argument that we've had in this room 

25   of blame the federal government, don't blame 


                                                               2421

 1   it -- yes, blame the federal government.  There's 

 2   an obligation being placed on some of these 

 3   communities that is unrealistic.  The districts 

 4   that I talk to, they're telling me the average 

 5   cost of these students is between $40,000 and 

 6   $50,000 a year.  And the community has to absorb 

 7   that expense and not get the benefit of a tax 

 8   deduction?  Yes, blame the federal government on 

 9   this tax issue.

10                Thank you, Mr. President.

11                ACTING PRESIDENT AMEDORE:   Senator 

12   Brooks in the negative.

13                Senator Parker to explain his vote.

14                SENATOR BROOKS:   I vote in the 

15   affirmative.  

16                SENATOR PARKER:  Thank you, 

17   Mr. President, to briefly -- 

18                ACTING PRESIDENT AMEDORE:   You vote 

19   in the positive.

20                SENATOR PARKER:   -- to briefly 

21   explain my vote.  

22                And first let me just thank Senator 

23   Akshar for his leadership on this issue.  Again, 

24   I think that it's actually critical that we 

25   actually deal with the issue of both property 


                                                               2422

 1   taxes and taxes in general in the State of 

 2   New York, which are way too high, but then also 

 3   juxtapose that with the issue of business 

 4   development.  And I think in this particular case 

 5   we're trying to kill two birds with one stone, 

 6   and it's not necessarily possible or it doesn't 

 7   necessarily equate that.

 8                When we look at what -- one, I 

 9   think, you know, part of the questions that you 

10   were hearing from Senator Krueger were really 

11   about how do we in fact define small businesses, 

12   and what is it that we are concerned about.  

13                I am all for small business 

14   development.  It's been one of the things that 

15   has been an important part of my tenure here in 

16   the Senate.  But we have to make a significant 

17   distinction between petit bourgeois capitalism 

18   and whether we're doing job creation.  And we 

19   certainly need to understand the difference 

20   between microbusinesses and small businesses and 

21   how we're defining them.  

22                So we really ought to be looking 

23   more at SBA models, right, Small Business 

24   Administration models of how they define 

25   businesses in a way that in fact creates job 


                                                               2423

 1   creation.  So what we're looking for is job 

 2   creation, not just more activity in terms of the 

 3   economy.  More activity in the economy without 

 4   job creation is not helpful to our communities.  

 5                So we're really looking at creating 

 6   full-time jobs at a living wage with benefits.  I 

 7   think that conversation is more about technical 

 8   assistance and access to capital than it is about 

 9   property taxes.  But certainly all of us know 

10   that property taxes are way too high in this 

11   state.  We certainly need to continue our push to 

12   make them smaller.  And maybe some conversations 

13   about school district consolidation around the 

14   state may be needed.  I have a bill that actually 

15   would do that by county in the state and 

16   certainly would be a way that we could save a 

17   significant amount of money in the State of 

18   New York.  

19                Thank you, Mr. President.

20                ACTING PRESIDENT AMEDORE:   Senator 

21   Parker, how do you vote?  

22                SENATOR PARKER:   I vote negative.

23                ACTING PRESIDENT AMEDORE:   Senator 

24   Parker in the negative.

25                Announce the results.


                                                               2424

 1                THE SECRETARY:   In relation to 

 2   Calendar 910, those recorded in the negative are 

 3   Senators Addabbo, Alcantara, Bailey, Breslin, 

 4   Comrie, Dilan, Gianaris, Hoylman, Kavanagh, 

 5   Klein, Krueger, Montgomery, Parker, Peralta, 

 6   Persaud, Rivera, Sanders, Savino, SepĂșlveda, 

 7   Serrano, Stavisky and Stewart-Cousins.  

 8                Absent from voting:  Senator 

 9   Hamilton.  

10                Ayes, 40.  Nays, 22.

11                ACTING PRESIDENT AMEDORE:   The bill 

12   is passed.

13                Senator DeFrancisco.

14                SENATOR DeFRANCISCO:    

15   Mr. President, as to Calendar 911, we're going to 

16   lay that bill aside for the day.

17                ACTING PRESIDENT AMEDORE:   The bill 

18   is laid aside for the day.

19                SENATOR DeFRANCISCO:   There will be 

20   an immediate meeting of the Republican Conference 

21   in Room 332 after session.

22                Is there any further business at the 

23   desk?

24                ACTING PRESIDENT AMEDORE:   That 

25   completes the controversial reading of the 


                                                               2425

 1   calendar.  There is no further business at the 

 2   desk.

 3                There will be a Republican Majority 

 4   conference in Room 332 immediately following 

 5   session.

 6                Senator DeFrancisco.

 7                SENATOR DeFRANCISCO:   I move to 

 8   adjourn until Monday, May 7, at 3:00 p.m., 

 9   intervening days being legislative days.

10                ACTING PRESIDENT AMEDORE:   On 

11   motion, the Senate stands adjourned until Monday, 

12   May 7th, at 3:00 p.m., intervening days being 

13   legislative days.

14                (Whereupon, at 12:32 p.m., the 

15   Senate adjourned.)

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