As-yet undeclared AG candidate Kathleen Rice, the Nassau County DA, says scandal-scarred state Sen. Pedro Espada, Jr. needs to "immediately give up his leadership post and all of the perks that go with it" in light of the explosive lawsuit accusing him of milking his health care company for millions.

"Reform will undoubtedly be a central component of the campaigns of those seeking to be the next Attorney General. I'm asking those running for this office -- and running to help lead the reform movement in this state -- to join me in calling for Senator Espada Jr. to relinquish his leadership post so that the state can begin moving forward. With reform at the top of the next AG's agenda, I believe that we have a right to hear where the candidates and potential candidates are on this crucial issue."

One declared candidate, state Sen. Eric Schneiderman -- who picked up the endorsement of the Uniformed Sanitationmen's Association today -- told the DN's Glenn Blain earlier that he couldn't comment because the case might come before him if he wins.

UPDATE: Minutes after posting, we got this statement from Team Schneiderman:

"In light of the extraordinarily troubling charges against him and other ongoing investigations, Senator Espada should immediately give up his leadership position and forfeit his stipend. While it is inappropriate to comment on the specifics of a pending lawsuit filed by the Attorney General's office, it is clear that public officials must be held to the highest ethical standard. No one is above the law."

Rice couldn't resist rubbing that in a little: "I'm pleased to hear that State Sen. Schneiderman, despite his initial refusal to do so, has followed my lead in calling for Senate Majority Leader Espada to step down from his leadership post. While [Schneiderman] has heeded my call, New Yorkers still deserve to hear from several other potential candidates for Attorney General."

We are waiting to hear back from the other candidates, Richard Brodsky, Sean Coffey and Eric Dinallo. Rice's statement, continued:

"Let me be clear; I'm not asking for extended commentary on the allegations contained in the report, nor am I asking for opinion on whether or not Senator Espada is guilty of these allegations, or whether or not he should face criminal charges. Such commentary today could undermine the credibility of the future Attorney General. What I am asking today is a simple yes or no question: Given the allegations, do you believe Senator Espada should be in a leadership position within our state government?"