NY Senate Dems told to answer Aqueduct subpoenas

By JENNIFER PELTZ

NEW YORK

A judge refused to stop subpoenas from New York's inspector general seeking state Senate information about the awarding of a lucrative video slot machine contract for Aqueduct racetrack to a politically connected group.

The Senate's majority Democrats want to avoid releasing internal e-mails and testifying, arguing it would infringe on the independence of the legislative branch.

State Supreme Court Justice Joan Lobis, after hearing arguments Wednesday, said she won't block the subpoenas but will give the senators time to appeal first.

In court papers, Inspector General Joseph Fisch said he already has information from the governor's office, state agencies, bidders and Assembly Speaker Sheldon Silver.

Aqueduct Entertainment Group was chosen from among a half-dozen bidders by Gov. David Paterson, Silver and Senate Democratic leader Sen. John Sampson.

Concerns were quickly raised over whether a political deal was struck to favor the consortium because one of its minor stockholders was the Rev. Floyd Flake, an influential former congressman. Flake has since withdrawn, and Paterson removed himself from the process. Silver asked the inspector general to review the selection process.

The Paterson administration later dropped its support for AEG after the state Lottery Division concluded it couldn't issue a gaming license to AEG.

The senators' attorney, Kenneth Thompson, argued Wednesday that the subpoenas amounted to an intrusive and illegal effort to probe into the Senate's doings.

"They don't like the fact that the state Senate has made the decision to give this contract to this particular group, so they want to investigate," he told the judge. "They're engaging in a fishing expedition."

The Inspector General's Office said New Yorkers were entitled to information about the process.

"It's not the end of the world to let the public know why a bidder for a multibillion-dollar contract was picked," said Nelson Sheingold, a lawyer for the inspector general.

The investigators also argued that the selection process -- which involved only the Assembly speaker, Senate leader and governor -- wasn't covered by legal protections for legislative actions. Lobis agreed.

"I don't believe that the (legislative immunity) privilege is broad enough to cover what is no longer a deliberative process of the Legislature," she said. The Legislature had voted to create the process, but didn't weigh in again on the choice of company.

Her ruling won't take effect at least until the senators file an appeal, which Thompson said they plan to do promptly.

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Associated Press writer Michael Virtanen in Albany contributed to this report.