Feb 13, 2008

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Date: 02/13/2008 Session: Regular

361 1 NEW YORK STATE SENATE 2 3 4 THE STENOGRAPHIC RECORD 5 6 7 8 9 ALBANY, NEW YORK 10 February 13, 2008 11 1:25 p.m. 12 13 14 REGULAR SESSION 15 16 17 18 SENATOR JOSEPH GRIFFO, Acting President 19 STEVEN M. BOGGESS, Secretary 20 21 22 23

24 25 Candyco Transcription Service, Inc. (518) 371-8910 362 1 P R O C E E D I N G S 2 ACTING PRESIDENT GRIFFO: The 3 Senate will come to order. 4 I ask everyone present to please 5 rise and repeat with me the Pledge of 6 Allegiance to the Flag. 7 (Whereupon, the assemblage recited 8 the Pledge of Allegiance to the Flag.) 9 ACTING PRESIDENT GRIFFO: Today's 10 invocation will be offered by Father Peter 11 Young, of the Mother Theresa Community here in 12 Albany. 13 Father? 14 FATHER YOUNG: Thank you, 15 Senator. Let us pray. 16 As we approach Valentine's Day, we, 17 O God, might expect flowers and candy, but 18 instead we work and wake up to the snow and to 19 the sleet and to the rain. We thank God, 20 though, for Your blessings. 21 And we here in the legislative 22 body, we know that, God, You have never failed 23 to provide our New York State citizens with 24 dedicated Senators. May God pour forth His 25 blessings on our legislators and provide them

Candyco Transcription Service, Inc. (518) 371-8910 363 1 with the spirit and courage to accept the many 2 demands of their elected office. 3 We ask You this forever. Amen. 4 ACTING PRESIDENT GRIFFO: Reading 5 of the Journal. 6 THE SECRETARY: In Senate, 7 Tuesday, February 12, the Senate met pursuant 8 to adjournment. The Journal of Monday, 9 February 11, was read and approved. On 10 motion, Senate adjourned. 11 ACTING PRESIDENT GRIFFO: Without 12 objection, the Journal stands approved as 13 read. 14 SENATOR SKELOS: Mr. President. 15 ACTING PRESIDENT GRIFFO: Senator 16 Skelos. 17 SENATOR SKELOS: There will be an 18 immediate meeting of the Racing, Gaming and 19 Wagering Committee in the Majority Conference 20 Room. 21 And the Senate will stand at ease. 22 ACTING PRESIDENT GRIFFO: There 23 will be an immediate meeting of the Racing and 24 Wagering Committee of the Senate in the 25 Majority Conference Room. Candyco Transcription Service, Inc. (518) 371-8910 364 1 The Senate stands at ease.

2 (Whereupon, the Senate stood at 3 ease at 1:28 p.m.) 4 (Whereupon, the Senate reconvened 5 at 2:00 p.m.) 6 ACTING PRESIDENT GRIFFO: The 7 Senate will come to order. 8 SENATOR SKELOS: Mr. President, 9 if we could continue with the regular order of 10 business. 11 ACTING PRESIDENT GRIFFO: Thank 12 you, Senator Skelos. 13 Presentation of petitions. 14 Messages from the Assembly. 15 Messages from the Governor. 16 Reports of standing committees. 17 The Secretary will read. 18 THE SECRETARY: Senator Larkin, 19 from the Committee on Racing, Gaming and 20 Wagering, reports the following bill direct to 21 third reading: 22 Senate Print 6950, by Senator 23 Bruno, an act to amend the Racing, Pari-Mutuel 24 Wagering and Breeding Law. 25 ACTING PRESIDENT GRIFFO: So Candyco Transcription Service, Inc. (518) 371-8910 365 1 ordered. The bill is reported direct to third 2 reading. 3 Reports of select committees. 4 Communications and reports from

5 state officers. 6 Motions and resolutions. 7 Senator Fuschillo. 8 SENATOR FUSCHILLO: Thank you, 9 Mr. President. 10 On behalf of Senator Alesi, on page 11 number 17 I offer the following amendments to 12 Calendar Number 134, Senate Print Number 6634, 13 and ask that said bill retain its place on 14 Third Reading Calendar. 15 ACTING PRESIDENT GRIFFO: The 16 amendments are accepted, and the bill will 17 retain its place on the Third Reading 18 Calendar. 19 SENATOR FUSCHILLO: On behalf of 20 Senator Farley, I move that the following 21 bills be discharged from their respective 22 committees and be recommitted with 23 instructions to strike the enacting clause: 24 Senate Print Number 1845 and Senate Print 25 Number 5251. Candyco Transcription Service, Inc. (518) 371-8910 366 1 ACTING PRESIDENT GRIFFO: So 2 ordered. 3 SENATOR FUSCHILLO: Thank you. 4 ACTING PRESIDENT GRIFFO: Thank 5 you, Senator Fuschillo. 6 Senator Skelos. 7 SENATOR SKELOS: I believe there

8 are substitutions at the desk. If we could 9 make them at this time. 10 ACTING PRESIDENT GRIFFO: The 11 Secretary will read. 12 THE SECRETARY: On page 13, 13 Senator Skelos moves to discharge, from the 14 Committee on Health, Assembly Bill Number 9471 15 and substitute it for the identical Senate 16 Bill Number 6504, Third Reading Calendar 47. 17 On page 15, Senator Maltese moves 18 to discharge, from the Committee on Civil 19 Service and Pensions, Assembly Bill Number 20 9820 and substitute it for the identical 21 Senate Bill Number 6689A, Third Reading 22 Calendar 73. 23 And on page 28, Senator Larkin 24 moves to discharge, from the Committee on 25 Higher Education, Assembly Bill Number 9401 Candyco Transcription Service, Inc. (518) 371-8910 367 1 and substitute it for the identical Senate 2 Bill Number 6458, Third Reading Calendar 278. 3 ACTING PRESIDENT GRIFFO: The 4 substitutions are so ordered, and the bills 5 will retain their place on the Third Reading 6 Calendar. 7 Senator Skelos. 8 SENATOR SKELOS: Mr. President, 9 if we could go to the noncontroversial reading 10 of the calendar and, with the consent of the

11 sponsors, lay aside Calendar Numbers 47, 133, 12 156, 243, 275, and 278. 13 ACTING PRESIDENT GRIFFO: Those 14 bills are laid aside for the day. 15 The Secretary will read. 16 THE SECRETARY: Calendar Number 17 73, substituted earlier by Member of the 18 Assembly Abbate, Assembly Print Number 9820, 19 an act to amend the Retirement and Social 20 Security Law. 21 SENATOR DUANE: Lay it aside, 22 please. 23 ACTING PRESIDENT GRIFFO: The 24 bill is laid aside. 25 THE SECRETARY: Calendar Number Candyco Transcription Service, Inc. (518) 371-8910 368 1 344, by Senator Bruno, Senate Print 6950, an 2 act to amend the Racing, Pari-Mutuel Wagering 3 and Breeding Law and the Real Property Tax 4 Law. 5 SENATOR DUANE: Lay it aside, 6 please. 7 ACTING PRESIDENT GRIFFO: The 8 bill is laid aside. 9 Senator Skelos. 10 SENATOR SKELOS: Mr. President, 11 if we can go to the controversial calendar. 12 And would you please call up 13 Calendar Number 73, by Senator Maltese.

14 ACTING PRESIDENT GRIFFO: The 15 Secretary will read Calendar Number 73 on the 16 controversial calendar. 17 THE SECRETARY: Calendar Number 18 73, by Member of the Assembly Abbate, Assembly 19 Print Number 9820, an act to amend the 20 Retirement and Social Security Law. 21 SENATOR DUANE: Explanation, 22 please. 23 ACTING PRESIDENT GRIFFO: Senator 24 Maltese, an explanation has been requested. 25 SENATOR MALTESE: Mr. President, Candyco Transcription Service, Inc. (518) 371-8910 369 1 this is an act to amend the Retirement and 2 Social Security Law in relation to the 3 establishment of retirement programs, to 4 permit members of the New York City Teachers 5 Retirement System and certain members of the 6 Board of Education Retirement System who are 7 subject to such law to retire prior to age 62 8 without a reduction in their retirement 9 allowance based upon such earlier retirement, 10 and to make conforming and technical 11 amendments. 12 Basically this establishes a 13 retirement program to permit members of the 14 New York City Teachers Retirement System and 15 certain members of the Board of Education 16 Retirement System to retire prior to age 62

17 without a reduction to their retirement 18 allowance based upon such earlier retirement. 19 This bill is at the request of the 20 Mayor and the UFT. The City of New York, as 21 part of their New York contract agreement with 22 the UFT, provided for the parties to negotiate 23 a cost-neutral 25/55 retirement for New York 24 City teachers only. This proposal will affect 25 only the New York City Teachers Retirement Candyco Transcription Service, Inc. (518) 371-8910 370 1 System. 2 This is an agreement after 3 discussions during the past year, and it 4 consists of basically of two parts, one for 5 existing employees and the other for new 6 employees. 7 For the existing employees, 8 existing employees would have a 180 day opt-in 9 window to participate in the 25/55 retirement 10 plan. These employees would not be mandated 11 to pay for the additional contribution of 12 1.85 percent for their previous years of 13 service, but they would have to pay the going 14 forward for each year until they retire. 15 So in effect, if there is an 16 employee who is 54 years of age and has 24 17 years of service, they would only have to pay 18 the additional contribution for that next 19 year, when they could in fact retire under

20 this plan if they wanted to. 21 The new employees would be mandated 22 into a 55/27 plan. These employees would be 23 required to pay the additional contribution of 24 1.85 percent on top of their current 25 contributions for the full time of service Candyco Transcription Service, Inc. (518) 371-8910 371 1 until they retire. Upon the attainment of 2 both 55 years of age and 27 years of service, 3 these employees could retire if they wished 4 to. 5 Fiscal note. For the fiscal years 6 2009 and later, for -- let's see. Generally 7 increase beginning fiscal year -- the impact 8 is -- the impact of this proposed legislation 9 is dependent upon the actual numbers of 10 members who elect to join the age 55 program. 11 The actuary prefers to determine employer 12 contributions based on those members who 13 actually become participants as of June 30, 14 2008. 15 It is estimated that employer 16 contributions to this would increase in the 17 fiscal year 2009 by approximately 18 $99.2 million, and by a comparable percentage 19 of payroll thereafter. 20 The Assembly counterpart, by 21 Assemblyman Abbate, has already passed the 22 Assembly.

23 ACTING PRESIDENT GRIFFO: Thank 24 you, Senator Maltese. 25 Senator Duane. Candyco Transcription Service, Inc. (518) 371-8910 372 1 SENATOR DUANE: Thank you, 2 Mr. President. If the sponsor would yield. 3 ACTING PRESIDENT GRIFFO: Will 4 the sponsor yield? 5 SENATOR MALTESE: Yes. 6 ACTING PRESIDENT GRIFFO: Senator 7 Duane. 8 SENATOR DUANE: Thank you, 9 Mr. President. 10 How broad is the range of dollars 11 that could potentially be incurred by passage 12 of this legislation? In other words, what is 13 the lowest anticipated amount of money that it 14 would cost as part of a fiscal note to what is 15 the largest amount possible? 16 ACTING PRESIDENT GRIFFO: Senator 17 Maltese. 18 SENATOR MALTESE: Well, 19 Mr. President, according to the fiscal impact 20 statement, the actuaries are indicating to us 21 that they want to base it, as of June 30, 22 2008, on how many members opt in. 23 They are indicating to us that it 24 would increase in fiscal year 2009 by 25 approximately $99.2 million and by a

Candyco Transcription Service, Inc. (518) 371-8910 373 1 comparable percentage of payroll thereafter. 2 ACTING PRESIDENT GRIFFO: Senator 3 Duane. 4 SENATOR DUANE: Thank you, 5 Mr. President. And through you, if the 6 sponsor would continue to yield. 7 SENATOR MALTESE: Yes. 8 ACTING PRESIDENT GRIFFO: Senator 9 Maltese continues to yield, Senator Duane. 10 SENATOR DUANE: How many 11 teachers, potentially, would we be losing from 12 the New York City public school system if all 13 of those eligible opted to take this 14 retirement? 15 ACTING PRESIDENT GRIFFO: Senator 16 Maltese. 17 SENATOR MALTESE: Mr. President, 18 I didn't hear the end of the question. 19 ACTING PRESIDENT GRIFFO: Could 20 you repeat the question, Senator Duane? 21 SENATOR DUANE: How many teachers 22 would the New York City public school system 23 lose if every teacher that was eligible to 24 take this retirement decided to retire in 25 June? Candyco Transcription Service, Inc. (518) 371-8910 374 1 SENATOR MALTESE: Mr. President,

2 through you, we don't expect that to have a 3 negative impact on the New York City school 4 system. Basically NYSUT, who requested the 5 passage of the bill, has indicated to us that 6 they do not feel that this would have a 7 negative impact. 8 As far as the numbers, we could get 9 the numbers of the present teachers at or 10 around that age with that amount of service, 11 we could get that to the good Senator 12 subsequent to this session. 13 ACTING PRESIDENT GRIFFO: Senator 14 Duane. 15 SENATOR DUANE: Through you, 16 Mr. President, if the sponsor would continue 17 to yield. 18 ACTING PRESIDENT GRIFFO: Senator 19 Maltese, do you continue to yield? 20 SENATOR MALTESE: Yes. 21 ACTING PRESIDENT GRIFFO: Senator 22 Duane. 23 SENATOR DUANE: What is the -24 currently, if a teacher with 25 years or more 25 of service retired without this legislation, Candyco Transcription Service, Inc. (518) 371-8910 375 1 to what would they be entitled? 2 ACTING PRESIDENT GRIFFO: Senator 3 Maltese. 4 SENATOR MALTESE: Mr. President,

5 I think -- those figures I would have to 6 obtain from NYSUT and get back to you. 7 But I'd like to just indicate from 8 the statement of support by NYSUT: "For 9 employees, the enactment of this legislation 10 would enable current and future members in 11 affected titles to retire without penalty at 12 age 55 or older after a full 25-year or 13 27-year career in education, in exchange for 14 an additional annual member contribution of 15 1.85 percent of payroll. 16 "Currently, members in Tiers 2, 3 17 and 4 experience up to a 27 percent reduction 18 in their annual pension benefit for life if 19 they retire prior to age 62 with less than 30 20 years of service." 21 The enactment of an 22 earlier-retirement-age benefit has been much 23 sought after by our educators and 24 school-related professionals alike, because it 25 enables them to retire earlier in order to Candyco Transcription Service, Inc. (518) 371-8910 376 1 care for sick loved ones or to deal with other 2 family or personal issues. 3 It is the position of both the 4 Mayor of the City of New York, the Senate 5 Majority, and NYSUT and the teachers union 6 that this enables us to be competitive for 7 teachers and not have our teachers from the

8 city school system going to other 9 jurisdictions to work and teach young people. 10 ACTING PRESIDENT GRIFFO: Senator 11 Duane. 12 SENATOR DUANE: Through you, 13 Mr. President, if the sponsor would continue 14 to yield. 15 SENATOR MALTESE: Yes, 16 Mr. President. 17 ACTING PRESIDENT GRIFFO: Senator 18 Duane. 19 SENATOR DUANE: Right now, if a 20 teacher is in Tier 3 and they retire after 25 21 years, what is the package that they get? 22 And the second part of that is, why 23 was the decision made by the sponsor not to 24 include Tier 3 in this legislation? 25 SENATOR MALTESE: Mr. President, Candyco Transcription Service, Inc. (518) 371-8910 377 1 through you, I don't have the exact figures on 2 that. It's something we could obtain for the 3 good Senator from UFT and NYSUT after this 4 session. 5 We have been assured by all parties 6 involved, and certainly in previous 7 discussions with the Assembly, that this is 8 something they need, this is something they 9 want. And all those legislators interested in 10 the education of our young people should be

11 for this legislation. 12 SENATOR DUANE: Mr. President, if 13 the sponsor would continue to yield. 14 ACTING PRESIDENT GRIFFO: Senator 15 Maltese, will you continue to yield? 16 SENATOR MALTESE: Yes. 17 But prior to yielding, I'd like to 18 remind the Senator and other Senators involved 19 that this was a result of a contract 20 previously negotiated and agreed to by all 21 parties. 22 ACTING PRESIDENT GRIFFO: So 23 noted. 24 Senator Duane. 25 SENATOR DUANE: Thank you, Candyco Transcription Service, Inc. (518) 371-8910 378 1 Mr. President. The sponsor is continuing to 2 yield? 3 ACTING PRESIDENT GRIFFO: Yes. 4 SENATOR MALTESE: Yes. 5 SENATOR DUANE: Why was the 6 decision made only to have this be for 7 New York City teachers? Why not for teachers 8 statewide? 9 ACTING PRESIDENT GRIFFO: Senator 10 Maltese. 11 SENATOR MALTESE: Mr. President, 12 the reason for that is that this was a 13 negotiation, as I've indicated earlier, a

14 negotiation agreed to. And they were the 15 ones, the parties to the contractual 16 agreement. 17 And, Mr. President, with your 18 consent, I'd like to indicate, in view of 19 many, many circumstances today, I'll be glad 20 to entertain an additional question from the 21 good Senator. 22 ACTING PRESIDENT GRIFFO: Okay. 23 Senator Duane. 24 SENATOR DUANE: Thank you, 25 Mr. President, but I actually didn't catch Candyco Transcription Service, Inc. (518) 371-8910 379 1 what the Senator said at the end, after 2 "entertain." 3 SENATOR MALTESE: Mr. President, 4 what I'm saying is that this contract has been 5 around a while, it's been much negotiated, 6 it's been much covered by the press. Both 7 unions have indicated by leaflets and mailings 8 to their members. The entire contract is 9 available for perusal by the good Senator. 10 And in view of all that, I would 11 indicate that I'll take one more question and 12 that's all. 13 ACTING PRESIDENT GRIFFO: Do you 14 have any further questions, Senator Duane? 15 SENATOR DUANE: Yes, 16 Mr. President, I do.

17 SENATOR MALTESE: Mr. President, 18 if the good Senator would indicate what he 19 feels is his premier, paramount question, I'll 20 be very happy to answer it. 21 ACTING PRESIDENT GRIFFO: Thank 22 you, Senator Maltese. 23 Senator Duane? 24 SENATOR DUANE: Thank you, 25 Mr. President. Candyco Transcription Service, Inc. (518) 371-8910 380 1 On an issue so important fiscally 2 for the City of New York and indeed for the 3 State of New York, it would be extremely hard 4 for me to prioritize my questions, because 5 they're all very, very important. 6 And so I'm not going to be able -7 I don't want my next question to be 8 misinterpreted in any way as the premier 9 question. But I will ask the next question on 10 my list of questions. 11 What is the average salary of those 12 teachers who are eligible or those who will be 13 affected? And by that I mean, just to be as 14 specific as I possibly can be, it's 15 1.85 percent of what amount? 16 ACTING PRESIDENT GRIFFO: Could 17 you repeat that question, Senator Duane? 18 SENATOR DUANE: Yes, 19 Mr. President.

20 What is the average salary of the 21 teachers who are affected by this legislation, 22 those who could take this retirement? In 23 other words, when the sponsor said that it was 24 1.85 percent of their salary, what is that -25 what I'd really like is to know the average Candyco Transcription Service, Inc. (518) 371-8910 381 1 salary and the median salary of those teachers 2 who would be potentially taking this 3 retirement plan. 4 ACTING PRESIDENT GRIFFO: Senator 5 Maltese. 6 SENATOR MALTESE: Mr. President, 7 I'm not an actuary. One of the reasons that I 8 became an attorney and a legislator is because 9 I had a great deal of difficulty. 10 Fortunately, my daughter is a CPA. If she was 11 here today, she'd be able to answer that 12 question. 13 I suggest that Senator Duane 14 contact the UFT or the mayor. These figures 15 were available to them. I believe they're 16 covered in the contract when they figured out, 17 when the actuaries figured out the 18 percentages. And I suggest again, most 19 respectfully, that the Senator read the 20 contract. 21 ACTING PRESIDENT GRIFFO: Thank 22 you, Senator Maltese.

23 Senator Duane. On the bill? 24 SENATOR DUANE: Mr. President, 25 I'd like to try to ask the sponsor another Candyco Transcription Service, Inc. (518) 371-8910 382 1 question. 2 SENATOR MALTESE: Mr. President, 3 I will not yield to an additional question at 4 this time. 5 ACTING PRESIDENT GRIFFO: Thank 6 you, Senator Maltese. 7 Senator Duane, do you wish to speak 8 on the bill? 9 SENATOR DUANE: Yes, 10 Mr. President, I will speak on the bill. 11 Well, first, I just have to put out 12 there how saddened I am that the sponsor of a 13 piece of legislation that is so important and 14 has such an enormous fiscal impact on the City 15 of New York and on the State of New York, that 16 the sponsor of that legislation is unfamiliar 17 with the range of the fiscal impact that it 18 could have. 19 And I think that we're facing a 20 downturn in our state's economy, we don't 21 really know what the next revision of the 22 revenue will be in New York State. And the 23 city hasn't by any means come close to 24 completing their budget; they won't be doing 25 it until June. We have no idea what the

Candyco Transcription Service, Inc. (518) 371-8910 383 1 fiscal downturn might be there. 2 And so for us to be doing this -3 and, you know, of course I think that I and 4 probably most, if not all, of the members of 5 my conference are very favorably inclined 6 toward this. But unlike others, we usually 7 like to know what the fiscal impact is more 8 precisely. 9 And it's nice that the sponsor has 10 suggested I read the contract, but it sounds 11 to me like perhaps we're both guilty of not 12 having read the contract. But I do have to 13 say it's his bill, not mine. So you would 14 think he would have read the contract. And 15 maybe instead of -- maybe he didn't admonish 16 me, but making the suggestion that I read the 17 contract, maybe he should have read the 18 contract first. 19 So, you know, I'm willing to be 20 corrected on that, but there probably won't be 21 an opportunity since I'm not going to be 22 asking any more questions. So there won't be 23 any way to respond to that, which is always -24 I hate to not have a chance to respond, as 25 many of you know. Not that I always have to Candyco Transcription Service, Inc. (518) 371-8910 384 1 have the last word, but I like to be able to

2 respond. But I digress. 3 Now, unfortunately, there were a 4 lot of allusions made to it was negotiated and 5 they negotiated. And I would have liked to 6 have had more precise language, because I 7 think some of the time the negotiations around 8 this piece of legislation were between the 9 City of New York and the UFT. Although some 10 of it may have been between NYSUT and the 11 state. And some of it might have been between 12 the UFT and the Majority, and some of it might 13 have been with the UFT and the Assembly 14 majority. 15 And I'm not going to ask any of my 16 colleagues, but I'm sure the UFT also 17 consulted with members of my conference. And 18 I'm sure that NYSUT consulted with members of 19 my conference on this as well. But since I 20 have the floor, I'm not going to go there 21 right now. 22 But you see where my confusion 23 would have been with all of this discussion -24 it was negotiated and they negotiated and we 25 negotiated. And was it the chairs of the Candyco Transcription Service, Inc. (518) 371-8910 385 1 Finance Committees? Were the rankers of the 2 Finance Committees involved? Was the speaker 3 of the City Council involved? Was the Finance 4 chair of the City Council involved?

5 You can see where I would be 6 puzzled by this. But I guess I'll have to go 7 without answers. And frankly, I don't think 8 the answers to those questions would be in the 9 contract. 10 Anyway, now, I think that it is 11 unfortunate, also, that we are not going to be 12 able to get the answer on why it is that -- or 13 a more precise answer on why this is just a 14 retirement package or possibility, if you 15 will, being offered to New York City teachers 16 and not to teachers around the state. 17 I mean, it's possible that Nassau 18 County teachers have the right to take 19 advantage of this, but I don't know that to be 20 a fact. And it would be sad if they couldn't. 21 Suffolk County, also sad. Less time for 22 people to enjoy those beautiful beaches in 23 retirement. I don't know whether Syracuse 24 teachers have less time to go skiing. 25 It's always a shame when people are Candyco Transcription Service, Inc. (518) 371-8910 386 1 too old to go skiing because they're unable to 2 retire, and the ski season is predominantly 3 during the school year. And yet those 4 teachers who choose to live in the Snow Belt, 5 unable to use the best years of their lives 6 skiing -- not that the years later on aren't 7 great years, but usually your skiing

8 capability diminished. I know, mine too. I 9 have a new hip. I'm not even 55; my skiing 10 capacity is vastly diminished. 11 But I would have liked to have 12 known why it is that only New York City 13 teachers -- and I represent New York City, so 14 more power to them that they were able to 15 negotiate this. But I am curious as to why 16 they -- maybe they're going first. Maybe 17 we're going to see how it works out with them 18 and then we'll see how it is with other 19 teachers. Right? Possibly; right? 20 Maybe Westchester would be next. 21 Maybe the teachers in Westchester; right? I 22 mean, you know, there -- will this increase 23 property taxes in Westchester? 24 Buffalo, who wouldn't want to 25 retire at 55 if you live in Buffalo? Right? Candyco Transcription Service, Inc. (518) 371-8910 387 1 Who among us would not want to retire at 55 2 and enjoy activities in Buffalo? Gambling, 3 football -- but not gambling on football. 4 I would have liked to have known, 5 but I'm not going to know, I guess, as part of 6 this debate. But I hope I'll find out 7 afterwards. 8 I also am wondering who else is 9 being entitled besides the New York City 10 teachers to the 25/55 elements of this

11 legislation. 12 ACTING PRESIDENT GRIFFO: Senator 13 Duane. 14 SENATOR DUANE: Thank you, 15 Mr. President. So much to say about this 16 bill. And even though my time is not 17 fleeting, I have decided to let people have 18 their own thoughts about this legislation. 19 And I'm sure that the sponsor and 20 all of the other people involved will be more 21 than happy to answer any questions on the 22 side. And I'm sure that the contract could be 23 made available to anyone that wants to read it 24 by next time we're in session. 25 Thank you, Mr. President. Candyco Transcription Service, Inc. (518) 371-8910 388 1 ACTING PRESIDENT GRIFFO: Thank 2 you, Senator Duane. 3 Any other member wishing to be 4 heard? 5 Debate is closed. Ring the bells, 6 please. 7 Read the last section. 8 THE SECRETARY: Section 2. This 9 act shall take effect immediately. 10 ACTING PRESIDENT GRIFFO: Call 11 the roll. 12 (The Secretary called the roll.) 13 ACTING PRESIDENT GRIFFO: Senator

14 Maziarz, to explain his vote. 15 SENATOR MAZIARZ: Thank you, 16 Mr. President, to explain my vote. 17 I was waiting here anticipating 18 some of the representatives of the city of 19 Buffalo to get up to take exception to Senator 20 Duane's comments about the city of Buffalo. 21 And since they didn't, I will. 22 Mr. President, as a proud resident 23 of western New York -- not a resident of the 24 city of Buffalo, not a representative of the 25 city of Buffalo -- for the record, I take Candyco Transcription Service, Inc. (518) 371-8910 389 1 exception to Senator Duane's comments about 2 Buffalo. 3 Buffalo is a great place to live, 4 work, raise a family. And it is the permanent 5 home of the Buffalo Bills. 6 Thank you, Mr. President. 7 (Laughter.) 8 ACTING PRESIDENT GRIFFO: Senator 9 Maziarz, how do you vote? 10 SENATOR MAZIARZ: I vote in the 11 affirmative. 12 ACTING PRESIDENT GRIFFO: Senator 13 Maziarz to be recorded in the affirmative. 14 Senator Duane, to explain his vote. 15 SENATOR DUANE: Thank you, 16 Mr. President.

17 ACTING PRESIDENT GRIFFO: May I 18 remind you, under Rule 9, two minutes. 19 SENATOR DUANE: Yes, 20 Mr. President, I am quite aware. 21 ACTING PRESIDENT GRIFFO: Thank 22 you, Senator Duane. 23 SENATOR DUANE: I believe that my 24 comments may have been misinterpreted about 25 Buffalo, a city in which I've spent a great Candyco Transcription Service, Inc. (518) 371-8910 390 1 deal of time and which I like very much. In 2 which I've spent, as I say, a very large 3 amount of time. 4 My hesitation should not have been 5 misinterpreted as anything but that I had 6 actually used up a couple of things I was 7 going to say about Buffalo for other areas, 8 and so I was just trying to quickly come up 9 with unique things to say about the city of 10 Buffalo. 11 So, you know, I'm sorry if my 12 comments were misinterpreted. I would in no 13 way and I would never, ever say anything but 14 positive things about the city of Buffalo, a 15 city in which I, as I say, have spent a great 16 deal of time and which I have enjoyed spending 17 time in and which I plan on going back and 18 visiting many times in the future, and where, 19 frankly, I've really not had any downtime

20 because there was so much to do. 21 So I'm sorry if it came off that 22 way. I didn't intend for it to come off that 23 way. I am a big fan of the city of Buffalo. 24 Thank you, Mr. President, I vote 25 yes. Candyco Transcription Service, Inc. (518) 371-8910 391 1 ACTING PRESIDENT GRIFFO: Senator 2 Duane to be recorded in the affirmative. 3 SENATOR MAZIARZ: For the record, 4 apology accepted. 5 ACTING PRESIDENT GRIFFO: Apology 6 is accepted. 7 Announce the results. 8 THE SECRETARY: Those Senators 9 absent pursuant to Rule 9, Senator O. Johnson. 10 Those Senators absent from voting, 11 Senators Bonacic and Farley. 12 Ayes, 53. Nays, 0. 13 ACTING PRESIDENT GRIFFO: The 14 bill is passed. 15 Senator Bruno. 16 SENATOR BRUNO: Thank you, 17 Mr. President. 18 With the consent of the Minority, 19 can we at this time return to the 20 noncontroversial calendar and take up Bill 21 Number 344. 22 ACTING PRESIDENT GRIFFO: So

23 ordered. On the noncontroversial calendar, 24 the Secretary will read. 25 THE SECRETARY: In relation to Candyco Transcription Service, Inc. (518) 371-8910 392 1 Calendar Number 344, Senator Bruno moves to 2 discharge, from the Committee on Racing, 3 Gaming and Wagering, Assembly Bill Number 9998 4 and substitute it for the identical Senate 5 Bill Number 6950, Third Reading Calendar 344. 6 ACTING PRESIDENT GRIFFO: 7 Substitution so ordered. 8 Senator Bruno. 9 SENATOR BRUNO: Mr. President, is 10 there a message of necessity and appropriation 11 from the Governor? 12 ACTING PRESIDENT GRIFFO: There 13 is a message of necessity and appropriation at 14 the desk, Senator Bruno. 15 The Secretary will read. 16 THE SECRETARY: Calendar Number 17 344, substituted earlier by Member of the 18 Assembly Pretlow, Assembly Print Number 9998, 19 an act to amend the Racing, Pari-Mutuel 20 Wagering and Breeding Law and the Real 21 Property Tax Law. 22 SENATOR BRUNO: Move to accept 23 the message from the Governor. 24 ACTING PRESIDENT GRIFFO: All in 25 favor of accepting the message of necessity

Candyco Transcription Service, Inc. (518) 371-8910 393 1 and appropriation from the Governor signify by 2 saying aye. 3 (Response of "Aye.") 4 ACTING PRESIDENT GRIFFO: 5 Opposed, nay. 6 (No response.) 7 ACTING PRESIDENT GRIFFO: The 8 message is accepted. 9 Senator Bruno. 10 SENATOR BRUNO: Can we call the 11 roll on the bill that's before us on the 12 floor. 13 ACTING PRESIDENT GRIFFO: The 14 Secretary will read the last section. 15 THE SECRETARY: Section 32. This 16 act shall take effect immediately. 17 ACTING PRESIDENT GRIFFO: Call 18 the roll. 19 (The Secretary called the roll.) 20 ACTING PRESIDENT GRIFFO: Senator 21 Diaz, to explain his vote. 22 SENATOR DIAZ: Thank you, 23 Mr. President. 24 This is a bill that we are 25 appropriating $105 million, plus another Candyco Transcription Service, Inc. (518) 371-8910 394 1 appropriation of $250 million to an

2 organization that this is the second time that 3 this organization goes into bankruptcy. 4 When we don't have money for the 5 City of New York, for the New York City 6 Housing Authority to bail out the New York 7 City Housing Authority, we don't have money to 8 keep hospitals open, we are cutting services 9 to senior citizens, we are cutting services to 10 needy people -- and we are assigning 11 $305 million plus $250 million that we did 12 many years ago and they never paid. 13 This is something ridiculous. This 14 is something that's -- as Curtis Sliwa said, 15 "Disgracia." I mean, we need money in the 16 City of New York for housing, we need money to 17 keep the hospitals from closing. The Governor 18 is saying that we have a $4 billion deficit. 19 Cutting services to senior citizens, the City 20 of New York Housing Authority -- I'm going to 21 repeat myself again, the City Housing 22 Authority of New York needs money. 23 We don't have money for the poor 24 people for the city housing, but we have money 25 to bail out a gambling organization that has Candyco Transcription Service, Inc. (518) 371-8910 395 1 been bankrupt over and over and over. And we 2 know, no means of paying back already 3 $250 million. Together we are spending 4 $605 million on this organization.

5 I think that this is a waste of 6 money to an organization that has proven to be 7 a neglectful organization, an organization 8 that cannot run itself. This organization 9 should be closed. 10 So, ladies and gentlemen, I'm 11 voting no in the name of the needy people in 12 my district. 13 ACTING PRESIDENT GRIFFO: Senator 14 Diaz, how do you vote? 15 SENATOR DIAZ: No. In the name 16 of the needy people in my district. 17 ACTING PRESIDENT GRIFFO: Senator 18 Diaz is to be recorded in the negative. 19 Senator Bruno. 20 SENATOR BRUNO: Mr. President, 21 colleagues, to explain my vote. 22 ACTING PRESIDENT GRIFFO: Senator 23 Bruno, to explain his vote. 24 SENATOR BRUNO: There's a lot of 25 confusion, apparently, in some people's minds Candyco Transcription Service, Inc. (518) 371-8910 396 1 about what we're doing. 2 What we're doing is something that 3 has been contemplated for years. We are 4 trying to fix the model that runs racing in 5 New York State. And we are trying to fix and 6 increase the economic impact, the tourism, 7 money for education, by fixing a model that we

8 know doesn't work. 9 How do we know? Because, through 10 many administrations, we are in bankruptcy 11 with horse racing in New York State. We are 12 in debt $364 million. 13 Now, there are, Senators, 40,000 14 people employed, many of them your 15 constituents. So while we talk about a 16 bailout, what we're really talking about is 17 putting New York State in a position -- and I 18 think we do a lot of that with this 19 legislation -- so that we can be the premier 20 racing state in the whole world. That's the 21 objective. And this is a giant step in that 22 direction. 23 Is this bill perfect? Does it do 24 everything that should have been done 25 presently? No, it does not. Candyco Transcription Service, Inc. (518) 371-8910 397 1 We deferred the OTB discussion. We 2 had problems with the OTBs, starting with 3 New York City. We have to fix that. That's 4 critically important. 5 We don't have VLTs at Belmont in 6 this bill. We don't have them at Aqueduct. 7 But this bill indicates that within 30 days, 8 that will get resolved and we will make 9 decisions going forward. 10 Now, why is that important? That

11 drives tens of millions of dollars ultimately 12 to education. That's really the objective. 13 To horse racing, which is an economic 14 impact -- just had one small community in 15 Saratoga, it's about $220 million a year 16 outside of the effect of the horses running. 17 Aqueduct, Belmont. 18 The rest of what this bill does 19 that you want to be aware of when you're 20 voting up or down is it pretty well fixes the 21 standardbred problems that we have around this 22 state. Vernon Downs, closed. Tioga talking 23 about closing. Yonkers talking about closing. 24 There's thousands of people employed, and 25 there's millions of dollars in cash flow that Candyco Transcription Service, Inc. (518) 371-8910 398 1 no longer will take place. 2 This bill, Senators, fixes that for 3 the standardbred tracks around this state. It 4 fixes it. 5 So the economic impact that we're 6 making here is extremely positive. Creates 7 transparency, accountability. It fixes the 8 model that hasn't worked in this state for 9 years and years and years. It's a very 10 positive thing, and I am proud to vote yes. 11 ACTING PRESIDENT GRIFFO: Senator 12 Bruno to be recorded in the affirmative. 13 Senator Maltese, to explain his

14 vote. 15 SENATOR MALTESE: Mr. President, 16 I of course echo what the Majority Leader has 17 just indicated. 18 On behalf of the communities in 19 Queens County, on behalf of the people in 20 New York City, especially the people in Ozone 21 Park and South Ozone Park, I want to express 22 my appreciation for the Majority Leader for 23 staying in there and fighting for the 24 continuation of Aqueduct. 25 I also wish to express appreciation Candyco Transcription Service, Inc. (518) 371-8910 399 1 to my Assembly counterparts, especially 2 Assemblywoman Audrey Pheffer, who has fought 3 for the people in the surrounding communities 4 through these years of negotiations, as did 5 Assemblyman Seminerio and Assemblywoman Titus. 6 We represent the community most immediately 7 involved. 8 At the same time, the entire State 9 of New York is involved here, because the 10 education of our children is at stake and the 11 extra funds that would go toward that 12 education. 13 This bill is in many ways a 14 landmark bill, because we have been able to 15 negotiate a place for an advisory board that 16 can protect the surrounding community. A

17 community board, Community Board 10, will have 18 input as far as the members of the advisory 19 board. That's important. 20 Tip O'Neill said at one time "All 21 politics is local," and this is especially 22 local for us in the surrounding community. We 23 are interested, we are concerned about the 24 funds that will come to New York, that will 25 come to our children for education. Candyco Transcription Service, Inc. (518) 371-8910 400 1 We are also concerned that we have 2 192 acres, a garden spot that can be returned 3 to the city and to the state, a garden spot 4 that at one time saw handles of over 5 $1 million in one day, that saw attendance 6 records being set at over 70,000. We want to 7 return that. 8 This is a step, this is a 9 significant first step. And I vote aye, 10 Mr. President. 11 ACTING PRESIDENT GRIFFO: Senator 12 Maltese to be recorded in the affirmative. 13 Senator Larkin, to explain his 14 vote. 15 SENATOR LARKIN: Thank you, 16 Mr. President. 17 You know, quite often around this 18 house we get all wrapped up around the axle 19 and there's no grease to move us. But I think

20 if you start to realize two years ago when we 21 started this, two years ago was captured on 22 the October 2001 that said we would do tracks, 23 we would do VLTs. The goal line was to create 24 funding, to provide additional funding for 25 schools, K through 12. Candyco Transcription Service, Inc. (518) 371-8910 401 1 Everybody's not going to be happy 2 with this bill. I've never seen one in 3 30 years that I would sign my life away for 4 100 percent. But the guidance that we were 5 given from Senator Bruno and from the 6 communities -- Senator Skelos and I had the 7 hearing at Belmont, Senator Craig Johnson was 8 there with us, when we went down with Senator 9 Maltese and Aubry, with Aqueduct, and we heard 10 their concerns. And what we have in this bill 11 is 99 percent of what they wanted. 12 They wanted an advisory, they 13 wanted a way to say something, they were 14 worried about the property tax NYRA had been 15 paying which was planning to be cut out. 16 Labor wanted to know what's going to happen to 17 them. And Senator Bruno said, "Listen, we're 18 a community. We're New Yorkers. We're going 19 to work for one another." 20 And, you know, you can all find 21 fault with all of this. But take a step back 22 and look at that mirror and see what we have

23 accomplished. Some of the shortfalls, some of 24 the money that we're going to put out, look 25 and see how we're going to recover it. And Candyco Transcription Service, Inc. (518) 371-8910 402 1 then we will be in a better position to raise 2 additional money to put into that school. 3 So don't always look at the 4 negative things. Start to look at some of the 5 positives. 6 At some of the meetings that were 7 held here this week, that staff, Finance 8 staff, Senator Bruno's personal staff, they 9 were here 17, 18 hours a day. It doesn't make 10 them big heroes because they work in that 11 vacuum of trying to create something so that 12 we can vote on it. 13 Those of you who want to vote no on 14 it, that's your business. But let me just 15 tell you one thing. When you do it and you 16 haven't looked at some of the issues upstate 17 that we have, some of them that we have in the 18 city -- our goal here was one thing, to create 19 something that we could live with. 20 Can we improve on it? Yes. We've 21 got to a budget to do, and we've a closing 22 session to do. So instead of going out and 23 bitching, moaning and complaining, come to one 24 of us and say, These are my concerns. 25 And I have to say thank you to

Candyco Transcription Service, Inc. (518) 371-8910 403 1 Senator Sabini, because he was excellent in 2 working with us on many of the issues that 3 were essential to get this done. 4 Thank you. 5 ACTING PRESIDENT GRIFFO: Senator 6 Larkin will be recorded in the affirmative. 7 Senator Skelos. 8 SENATOR SKELOS: Thank you, 9 Mr. President. 10 I listened very closely to Senator 11 Bruno and Senator Larkin. And quite frankly, 12 I want to congratulate them on, you know, 13 bringing so many things to fruition, saving 14 upstate tracks and certainly continuing 15 racing. 16 My concern is, and the reason why 17 I'll be voting no, is because of the failures 18 throughout the year of NYRA. And certainly I 19 hope the changes that have been made will turn 20 that around. 21 Since 1990, attendance at Belmont 22 has dropped 60 percent, from 955,000 to 23 378,000. And betting has gone from 24 $215 million to $93 million. And certainly 25 that is a hit on monies that we could be using Candyco Transcription Service, Inc. (518) 371-8910 404 1 for education.

2 My real disappointment in the 3 process has been, quite frankly, the failure 4 of leadership on behalf of Governor Spitzer, 5 and the fact that Speaker Silver, day after 6 day after day, has said no to putting VLTs at 7 Belmont. 8 And as a compromise, when we came 9 up with the concept of treating Belmont in the 10 Elmont community -- because it's not just 11 about Belmont, it's about the community -- as 12 a host community where they could receive 13 funding for economic development, they could 14 receive funding for police protection because 15 of the high crime rate that's caused by the 16 track. 17 And the school district, where 18 there are 77 different languages, 77 different 19 languages spoke, they need the additional 20 funding so that the young people can get the 21 education that they deserve. 22 And I want to point out the great 23 job that the Elmont school district is doing, 24 despite the fact that it is a community in 25 transition -- Caribbeans, African-Americans, Candyco Transcription Service, Inc. (518) 371-8910 405 1 Hispanic, Asians, white. That high school has 2 one of the highest scores in history by 3 African-Americans in this country -- not just 4 in this state but in this country. And that's

5 an indication of how well the school district, 6 despite the odds against them and the lack of 7 funding, how they're educating kids. 8 Now, NYRA. They've fallen back on 9 taxes by $21 million, deadbeats to Nassau 10 County. 11 When the community, because of the 12 state of disrepair, volunteered to paint the 13 fences -- Home Depot was going to donate the 14 paint -- NYRA said no. They wouldn't even let 15 them do that. Wouldn't let them mow the lawn 16 so the area is more presentable. Wouldn't let 17 them put flowers in flower boxes so the area 18 would be more presentable. 19 And only when it came to the point 20 where they were concerned, where they were 21 concerned about the franchise being extended, 22 did they allow the community to do something 23 positive. 24 I thank Senator Bruno, because he 25 has been there in terms of fighting to get Candyco Transcription Service, Inc. (518) 371-8910 406 1 VLTs at Belmont. But I think we all know in 2 this business that you need two to tango in 3 Albany. And the Speaker has repeatedly said 4 no -- not to Belmont, I'm talking about the 5 people of Elmont -- and the Governor did not 6 show the leadership and partner with Senator 7 Bruno to bring VLTs.

8 Now, the Governor has made certain 9 statements that it's in his budget. The 10 Governor puts $250 million anticipated 11 revenues from Belmont, but it is not linked to 12 VLTs going to Belmont. So that's a sleight of 13 hand where I believe the Governor is wrong. 14 Now, some people may say to me, you 15 know, it's not a lot of your district. It's a 16 good part of my district, people that live in 17 that area. Some people will say to you, you 18 know, Senator Skelos, politically -- probably 19 I get probably 30 percent of the vote there. 20 It's a Democrat community. And I'm sure that 21 Governor Spitzer and some of the local 22 Democrats that run there probably get 70, 80 23 percent of the vote. 24 But it's not about the vote. It's 25 about doing the right thing for the great Candyco Transcription Service, Inc. (518) 371-8910 407 1 people of Elmont. These are people, many 2 people new immigrants, some of them 3 participating in government for first time by 4 being activated to do something positive for 5 their community. Not looking for a handout, 6 looking for a helping hand from the Governor 7 and the Speaker. And that helping hand has 8 been slapped down by them today. 9 So I thank you, Senator Bruno, for 10 what you've tried to do. And I'm hopeful,

11 through your good efforts, that when the 12 budget is concluded that we will have VLTs, we 13 will have host community money -- not for 14 Belmont, but for the people of Elmont. 15 ACTING PRESIDENT GRIFFO: Senator 16 Skelos to be recorded in the negative. 17 Senator Craig Johnson. 18 SENATOR C. JOHNSON: Thank you, 19 Mr. President. 20 To almost paraphrase from the 21 famous movie Casablanca, I'm shocked, I'm 22 shocked that Senator Skelos and I would agree 23 on an issue. 24 I too do not support this 25 agreement. Simply put, this deal is a raw Candyco Transcription Service, Inc. (518) 371-8910 408 1 deal for the residents of Niagara County and 2 in particular the residents of Elmont and 3 Floral Park, which shares the Belmont track. 4 The fact is is that today we're 5 bailing out a bankrupt entity, not once but 6 twice. As you may recall, there was a 7 previous bailout of NYRA. And we're bailing 8 them out again today. I'll take the phrase 9 it's almost like we're throwing good money 10 after bad. 11 The fact is is that we're not just 12 bailing out a bankrupt entity, we're bailing 13 out an entity that has not been a very good

14 neighbor to the residents of Elmont and to the 15 residents of Floral Park. 16 And I agree that there is a need 17 for VLTs at Belmont. I find it amazing that 18 we sit here and we talk about and we hear how 19 it's only been one partner, supposedly, that 20 doesn't want VLTs. But everything I've heard 21 from the Governor is he has been fighting for 22 VLTs at Belmont. 23 And this is a Governor who has been 24 reaching out and helping the residents of 25 Elmont. Just two weeks, the Empire State Candyco Transcription Service, Inc. (518) 371-8910 409 1 Development Corp. announced a $2.5 million 2 grant for the restoration of the Argo Theater 3 in Elmont. And I congratulate Senator Skelos; 4 I know he had a lot to do with that -- you 5 know, before my time -- and Assemblyman 6 Alfano. And I congratulate you on that. It's 7 a very important project. 8 But to sit here today and blame the 9 Governor? Quite frankly, the Senate Majority 10 was at that table for over a year. And that's 11 something we've been fighting for and we've 12 been asking for for over a year. 13 So before we blame and point 14 fingers at one another, let's put the 15 partisanship aside and let's talk about the 16 needs of the Elmont and Floral Park community.

17 Let's talk about the needs of the residents of 18 Nassau County, a county that needs the money 19 and the revenue from the VLTs, revenue that 20 will go to Nassau County, hopefully go to the 21 Village of Floral Park, go to the residents of 22 Elmont through some sort of vehicle. 23 But let's talk about what's also 24 lacking in this agreement, which is extremely 25 troubling. And Senator Larkin brought it up Candyco Transcription Service, Inc. (518) 371-8910 410 1 when he talked about the advisory boards. And 2 it's amazing that the advisory boards can 3 exist in Saratoga -- oh, and they can exist at 4 Aqueduct -- but no one seems to want to put in 5 an advisory board for Elmont or for Floral 6 Park. There's no advisory board for Belmont 7 Track. 8 The voices of Elmont and Floral 9 Park deserve to be heard when it comes to 10 Belmont. 11 I ask the Senators to drive down 12 Route 24 -- I know Senator Skelos does it, I 13 do it when we visit our districts. And we do 14 share Elmont. And you can see the lack of 15 economic development that goes on right by 16 Belmont. 17 I listen to the voices, the same 18 voices that came to that hearing at the Elmont 19 Library, and they talked about wanting to have

20 their voice heard. And it's remarkable that 21 in the negotiations, no one seemed to want to 22 put in an advisory board for Elmont, or Floral 23 Park, for Belmont. 24 Why is that? Why are we silencing 25 the voices of these residents? These Candyco Transcription Service, Inc. (518) 371-8910 411 1 residents who work hard, who play by the 2 rules, and who simply want to live a normal 3 American dream -- and who have to shoulder the 4 burden of Belmont Racetrack. 5 Do you know that there are chickens 6 that run around the Belmont Racetrack, that 7 run around the community of Elmont? For 8 goodness' sakes. Why can't we have an 9 advisory board? 10 Now, I will be fighting tooth and 11 nail from this point on to make sure we get 12 those VLTs, to make sure we get that host 13 community money for Elmont and Floral Park, 14 because there are two communities that share 15 this. But we need to have an advisory board. 16 We need to make sure that the voices of Elmont 17 and Floral Park that for years have been 18 ignored by NYRA -- years, decades -- are no 19 longer. 20 But today this agreement, this bill 21 that showed up at 7 o'clock this morning, 22 103 pages long, I cannot support. I cannot

23 support because it's not in the best interests 24 of the residents of Floral Park, of Elmont, 25 for the residents of Nassau County, for the Candyco Transcription Service, Inc. (518) 371-8910 412 1 residents of New York State. 2 I vote no, Mr. President. Thank 3 you. 4 ACTING PRESIDENT GRIFFO: Senator 5 Craig Johnson to be recorded in the negative. 6 Senator Sabini. 7 SENATOR SABINI: Thank you, 8 Mr. President, to explain my vote. 9 On a complicated matter like this, 10 there's never going to be, as Senator Larkin, 11 Chairman Larkin said, a perfect solution. And 12 there's lots that you can cite in this bill 13 that aren't perfect. 14 I'm delighted that the Majority 15 Leader mentioned OTB. We really do have to do 16 something for New York City OTB. Our former 17 mayor in New York City used to say it was the 18 only bookmaker that couldn't make a profit. 19 That's not true; they make a 20 profit. We just have had a legislative 21 construct over 40 years in Albany that had a 22 lot of hands in their pocket before their 23 balance sheet was finished. They can't make a 24 profit because we take the profit from them. 25 They make money.

Candyco Transcription Service, Inc. (518) 371-8910 413 1 I'm delighted to see that there's 2 going to be new appointments to the new, 3 publicly scrutinized board of NYRA. They'll 4 have to respond to the Comptroller. They'll 5 have to have open meetings. Because, frankly, 6 their leadership has been calcified. 7 I voted against the last bailout. 8 I had a lengthy colloquy with the Majority 9 Leader on the floor here about that. It 10 shouldn't be lost on people that the Rosary 11 Societies and the restaurants in Queens 12 County -- Queens County, where Aqueduct and 13 Belmont, some of Belmont is located, all of 14 Aqueduct is located -- when they have a Day at 15 the Races, where do they take their 16 parishioners or their customers? They go to 17 Monmouth, in New Jersey, an hour and a half 18 away, rather than going to Belmont. 19 Why? Walk around Belmont, take a 20 look. The picnic tables are broken. The 21 grounds aren't kept. They don't want those 22 people there. We don't market our tracks, 23 NYRA doesn't market the tracks for businesses 24 to have events like they do at the 25 Meadowlands. It doesn't happen. Candyco Transcription Service, Inc. (518) 371-8910 414 1 So by putting these new people on

2 the board, through the Governor's efforts at 3 expanding the board, I hope he taps into some 4 really smart people who, unlike the prior 5 leadership of NYRA up until now, are just not 6 interested in having their little horses run 7 around the track, but understand that they're 8 stewards of an asset of the people of the 9 State of New York, that we now can claim 10 ownership to these tracks as well as a result 11 of this agreement. Because it is an asset. 12 We should be marketing them better. 13 And there are lots of people in the 14 racing business now, thoroughbred and 15 standardbred, that understand that. And we 16 should be tapping into their knowledge. 17 People like Jeff Gural, who doesn't 18 need to be in the racing business -- he's got 19 a very successful business on his own -- but 20 he happens to love it. And his tracks will 21 flourish under this agreement. 22 People like Mike Dubb, who's a 23 developer, who with his own money went into 24 the backstretch at Belmont and created a 25 childcare center for the children of the Candyco Transcription Service, Inc. (518) 371-8910 415 1 backstretch workers who live under deplorable 2 conditions that NYRA let happen. Deplorable. 3 If we saw films of that in other countries, 4 we'd be horrified by it, and it's right in our

5 backyard. 6 So by putting new blood on the 7 board and opening it up for public scrutiny, I 8 believe we've done a good thing. We shouldn't 9 be killing off racing. They had no right to 10 say they were going to close today or 11 tomorrow. They have labor agreements. They 12 can't do that. There's a state oversight 13 board; they can't do that. Shame on them for 14 putting us on this brink. 15 And part of me said, you know what, 16 let them try it and let them try and claim 17 that they own the land and the plant and the 18 equipment because they claim they paid the 19 water bill for 50 years. We can litigate it. 20 We have lawyers. They're in bankruptcy, they 21 have other problems. 22 But we shouldn't play brinksmanship 23 with what could a great asset to our state and 24 an industry that employs lots of people 25 throughout the state -- that actually is Candyco Transcription Service, Inc. (518) 371-8910 416 1 almost the perfect industry for New York State 2 because of its agricultural component, because 3 of its urban component, because of its tourism 4 component in Saratoga. It's a microcosm, 5 really, of some of our economy in New York 6 State because it has so many facets to it. 7 We can't let it close. And we

8 shouldn't let it wither on the vine, and 9 that's what's happened for the last 25 or 30 10 years. 11 So I hope that the people coming 12 onto this board will bring new energy, new 13 ideas. You know, a lot of us got to meet the 14 folks from Capital Play in this process. They 15 have some really brilliant ideas about 16 marketing our racetracks. We should be using 17 them, using their efforts to make the tracks a 18 place people want to go to again, so that 19 corporate events will be held there, Day at 20 the Races will be held there. Places that -21 it will be a place that people will feel 22 welcome at. 23 So rather than close down an 24 industry that I think is important to our 25 state, rather than lose the jobs in Queens Candyco Transcription Service, Inc. (518) 371-8910 417 1 County, I think we have to look at the 2 totality of this. 3 I compliment the Governor and the 4 Majority Leader and Chairman Larkin for their 5 leadership on this. 6 I think there should have been more 7 dialogue with all the stakeholders involved, 8 including some people in the Legislature who 9 have some knowledge of this. But by and 10 large, I think this is a solution we can live

11 with that has the scrutiny, that has, in every 12 four years, a sort of break point that an 13 oversight board can stop bad things from 14 happening, that has the Comptroller involved 15 in scrutinizing the finances of it, that will 16 stop things like the stupid selling off of the 17 paintings they tried to do a few years ago to 18 keep the doors open. 19 I mean, what are we talking about? 20 This is -- it was run very, very poorly. I 21 admit that. And that's why I voted no on 22 every bailout. 23 I don't think this is a bailout for 24 NYRA, I think this is an attempt to make 25 racing good again for everyone in New York Candyco Transcription Service, Inc. (518) 371-8910 418 1 State. And you will not recognize NYRA the 2 way it was if the Governor has his way and 3 this bill comes to fruition. I believe we'll 4 have better oversight, better management, and 5 I hope better people involved. 6 I'll be voting aye. 7 ACTING PRESIDENT GRIFFO: Senator 8 Sabini to be recorded in the affirmative. 9 The chair would like to remind the 10 members that we are on explanation of votes. 11 Senator Liz Krueger. 12 SENATOR DIAZ: You called me. 13 You called me.

14 ACTING PRESIDENT GRIFFO: 15 Indicated by Senator Diaz. 16 SENATOR LIZ KRUEGER: Thank you. 17 To explain my vote. 18 I want to say publicly how much I 19 appreciate Senator John Sabini's 20 thoughtfulness about this issue and this bill 21 and this industry. I constantly turn to him 22 for information and advice about where I 23 should go on voting on issues around racing 24 and wagering, because I confess I don't 25 understand them very well. Candyco Transcription Service, Inc. (518) 371-8910 419 1 And to be honest, I'm not sure I 2 want to learn all the ins and outs of 3 gambling, because there so many issues in 4 state government to focus on where we haven't 5 been doing a good job. 6 And yet -- and I listened to him 7 earlier today, and I listened to him make the 8 arguments pro and con, and I just listened to 9 him now, and there are some better pieces of 10 this bill, there are some parts of hopefully 11 the future of NYRA that I can be more 12 comfortable with. But I end up finding myself 13 voting no today anyway. 14 And I'm sorry, I do hold this 15 chamber responsible and the Senate Republicans 16 responsible. You've been telling us for years

17 you knew the right answers for racing in the 18 state, Senators, but you didn't, and we keep 19 making mistakes. And we keep not having the 20 right answers in racing and wagering. 21 So I heard the discussion today 22 about all the things that couldn't be done or 23 should have been done but aren't in this bill. 24 And I say you've been the house leading the 25 charge on racing and wagering. The Assembly Candyco Transcription Service, Inc. (518) 371-8910 420 1 has been holding back in concern. Senator 2 Sabini's issues haven't been addressed. 3 I think the Governor, as Senator 4 Sabini just said, has some good ideas that got 5 put into this bill. But when I sit here and 6 ask myself the question -- we're encouraging 7 more gambling, we're not clear, still, whether 8 we'll actually make money for the educational 9 system of the State of New York, we keep 10 trying to do partial fixes that don't get us 11 to the places other states are -- I'm not 12 satisfied. 13 And I share the concerns of some of 14 my other colleagues who spoke out before. 15 We're in a budget year where we're told we 16 have no money for housing, we have no money 17 for healthcare, we're telling ou educational 18 institutions either you can't have the money 19 we hoped you could or you have to go into the

20 gaming business also before you can get your 21 money. 22 And I'm saying, why are we letting 23 NYRA off the hook for the $250 million we lent 24 them in the past because they never could 25 figure it out? Candyco Transcription Service, Inc. (518) 371-8910 421 1 And I share the concerns about the 2 promise of all the money from VLTs when it's 3 still not clear to me that we ever get the 4 return that we say we're going to. 5 So I have mixed feelings about this 6 bill and could have seen myself going either 7 way. But I do have to say that a bill that 8 shows up at 7:00 a.m. in the morning on the 9 day you're asked to vote for it, a bill where 10 the person whose expertise I respect, Senator 11 Sabini's concerns were not factored in enough, 12 the fact that we've known about this issue for 13 years and that this is the best we could do -14 I don't think it's good enough. And I'll vote 15 no. 16 Thank you, Mr. President. 17 ACTING PRESIDENT GRIFFO: Senator 18 Liz Krueger to be recorded in the negative. 19 Senator Hannon. 20 SENATOR HANNON: Thank you, 21 Mr. President. 22 I come looking at this bill as

23 somewhat an outsider to the debate that's been 24 going on. And so I look at it with the common 25 sense of what's been happening in the Candyco Transcription Service, Inc. (518) 371-8910 422 1 community. And I'll address that. But I also 2 look at it as the common sense of what's been 3 happening for racing in this state. 4 All of us, when we think about 5 racing, if we don't follow it day to day, we 6 think about the Kentucky Derby, part of the 7 Triple Crown. What's the last part of the 8 Triple Crown? The Belmont Stakes. 9 You would think, with all the 10 criticism generated by the Governor, his 11 Attorney General, all the criticism of NYRA by 12 other people, that when we come to looking at 13 racing, we'd be trying to take a vision, where 14 are we going, what are we doing, how are we 15 going to raise the whole level of what has 16 been a gem of athletic events in the United 17 States. 18 Senator Sabini touched upon it, the 19 need for marketing, the need to make it a 20 destination. It's not here. And while I 21 appreciate, Senator Johnson, your comments in 22 trying to defend the Governor, he's been 23 silent. Not in his State of the State, not in 24 the budget, not in any reports. You read the 25 MOU that they put out, one line about Belmont.

Candyco Transcription Service, Inc. (518) 371-8910 423 1 No vision. No direction. No 2 goals. And that's what I really object to. 3 This Belmont Track sits at the 4 intersection of public transportation. The 5 Long Island Railroad has a special station for 6 it. It's at the center of highways. There's 7 a special exit right off the Cross-Island 8 Parkway. There's major parking. 9 And what's the hallmarks of Belmont 10 recently? They rent the parking lot out to 11 automobile dealers to park excess cars. It's 12 there for all of us to see. It's a lack of 13 vision. That's my major problem. 14 There's been hard slogging. 15 Senator Bruno set up his vision. He's made 16 proposals, he's said this is where we had to 17 go. You're wrong, Senator Krueger, for trying 18 to have it both ways. We have been in 19 leadership. But if you don't get an Assembly 20 and you don't get a Governor, then you can't 21 get anyplace. So we've been there. 22 And we've also been there -23 Senator Larkin and Senator Skelos and I had a 24 hearing, Senator Craig Johnson was there. The 25 community is outraged. Can you imagine? The Candyco Transcription Service, Inc. (518) 371-8910 424 1 community wants to volunteer to paint the

2 fence, and NYRA wouldn't let them. 3 When the franchise started to get 4 into the question about renewal, they had a 5 change of plans. But what did they do? Not 6 very much. They just rented the parking lot 7 out to more automobile car dealers. 8 This is only a way stop. We need 9 to go much further. We need to do something 10 with these gems of economic possibility that 11 we have in NYRA, and we need to go further. 12 I'm voting no. 13 ACTING PRESIDENT GRIFFO: Senator 14 Hannon to be recorded in the negative. 15 Senator Bruno. 16 SENATOR BRUNO: There being no 17 further speakers to explain their vote, I 18 would like to just commend Senator Larkin, and 19 Assemblyman Gary Pretlow in the other house, 20 and Senator Sabini for the good work that was 21 done here to get a new NYRA in place. 22 And that's what this is. A new 23 NYRA, a giant step forward, as we have all, 24 that are supporting this, discussed. And it 25 is a giant step, not the final step. There's Candyco Transcription Service, Inc. (518) 371-8910 425 1 lots more that can be done. But we're doing 2 something that is very positive for the 3 19 million people, 40,000 employees, and for 4 the educational system here in New York State.

5 So, Mr. President, can we call the 6 vote. 7 ACTING PRESIDENT GRIFFO: The 8 Secretary will announce the results. 9 THE SECRETARY: Those recorded in 10 the negative on Calendar Number 344 are 11 Senators Adams, Diaz, Dilan, Duane, Fuschillo, 12 Hannon, Hassell-Thompson, C. Johnson, 13 L. Krueger, Marcellino, Padavan, Parker, 14 Perkins, Sampson, Schneiderman, Serrano and 15 Skelos. 16 Ayes, 39. Nays, 17. 17 ACTING PRESIDENT GRIFFO: The 18 bill is passed. 19 Senator Bruno. 20 SENATOR BRUNO: Mr. President, I 21 believe there's a resolution at the desk by 22 Senators Leibell and Saland. I would ask that 23 the title be read at this time and move for 24 its immediate adoption. 25 ACTING PRESIDENT GRIFFO: We'll Candyco Transcription Service, Inc. (518) 371-8910 426 1 return to motions and resolutions. 2 The Secretary will read Resolution 3 4313. 4 THE SECRETARY: By Senator 5 Leibell, Legislative Resolution Number 4313, 6 paying tribute to Rear Admiral Robert A. Rosen 7 upon the occasion of his retirement as

8 Commanding Officer of the New York State Naval 9 Militia. 10 ACTING PRESIDENT GRIFFO: All in 11 favor of the resolution signify by saying aye. 12 (Response of "Aye.") 13 ACTING PRESIDENT GRIFFO: 14 Opposed, nay. 15 (No response.) 16 ACTING PRESIDENT GRIFFO: The 17 resolution is carried. 18 Senator Bruno. 19 SENATOR BRUNO: Mr. President, is 20 there any further business at the desk? 21 ACTING PRESIDENT GRIFFO: There 22 is no further business, Senator Bruno, before 23 the desk. 24 SENATOR BRUNO: There being no 25 further business to come before the Senate at Candyco Transcription Service, Inc. (518) 371-8910 427 1 this time, I would move that we stand 2 adjourned until Monday, February 25th, at 3 3:00 p.m., intervening days to be legislative 4 days. 5 Everyone be safe and be well. 6 ACTING PRESIDENT GRIFFO: Thank 7 you, Senator Bruno. 8 On motion, the Senate stands 9 adjourned until Monday, February 25th, at 10 3:00 p.m., intervening days being legislative

11 days. 12 (Whereupon, at 3:20 p.m., the 13 Senate adjourned.) 14 15 16 17 18 19 20 21 22 23 24 25 Candyco Transcription Service, Inc. (518) 371-8910