Bill Text: NY A09838 | 2019-2020 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Relates to port authority organization, appearance and notice; establishes the port authority advisory committee.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2020-07-18 - print number 9838b [A09838 Detail]

Download: New_York-2019-A09838-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________

                                          9838

                   IN ASSEMBLY

                                    February 20, 2020
                                       ___________

        Introduced by M. of A. PAULIN -- read once and referred to the Committee
          on Corporations, Authorities and Commissions

        AN  ACT  to  amend  chapter 154 of the laws of 1921 relating to the port
          authority of New York and New Jersey, in relation  to  port  authority
          organization, appearance and notice

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Subdivisions 1 and 2 of article 4 of section 1  of  chapter
     2  154  of  the laws of 1921 relating to the port authority of New York and
     3  New Jersey, as amended by chapter 559 of the laws of 2015,  are  amended
     4  to read as follows:
     5    1. Commissioners. a. The port authority shall consist of twelve voting
     6  commissioners  and  four  non-voting commissioners as described in para-
     7  graph b of this subdivision.   Of  the  twelve  voting  commissioners[,]
     8  there  shall be six resident voters from the state of New York, at least
     9  four of whom shall be resident voters of the city of New York,  and  six
    10  resident  voters  from  the  state  of New Jersey, at least four of whom
    11  shall be resident voters within the New Jersey portion of the  district,
    12  the  New  York members to be chosen by the state of New York and the New
    13  Jersey members by the state of New Jersey in  the  manner  and  for  the
    14  terms  fixed and determined from time to time by the legislature of each
    15  state respectively, except as herein provided.   The  New  York  members
    16  shall  be  appointed  by  the  governor  of New York with the advice and
    17  consent of the New York state senate.  The New Jersey members  shall  be
    18  appointed  by  the governor of New Jersey with the advice and consent of
    19  the New Jersey  state  senate.  Each  commissioner  may  be  removed  or
    20  suspended  from office as provided by the law of the state from which he
    21  shall be appointed. Any commissioner appointed to a term  commencing  on
    22  or  after  January  1,  2021 shall have experience in one or more of the
    23  following  areas:    transportation,  public  administration,   business
    24  management,  finance,  accounting, law, engineering, land use, urban and
    25  regional  planning,  management  of  large   capital   projects,   labor
    26  relations,  or  experience in some other area of activity central to the
    27  mission of the port authority.   One of  the  six  voting  commissioners

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15443-03-0
        A. 9838                             2

     1  chosen by the state of New York shall be appointed on the written recom-
     2  mendation of the mayor of the city of New York. The voting commissioners
     3  shall  be appointed for a term of six years and shall serve no more than
     4  two  terms.  The terms of the voting commissioners shall be staggered so
     5  that three of the six voting commissioners appointed by the state of New
     6  York will have their terms expire in alternating three year  shifts  and
     7  three  of  the  six  voting  commissioners appointed by the state of New
     8  Jersey will have their terms expire in alternating three years shifts.
     9    b. There shall be four non-voting commissioners of the port authority,
    10  as established in paragraph a of this subdivision.  The first non-voting
    11  commissioner shall be a regular mass transit user of the  state  of  New
    12  York  based facilities of the authority and be recommended to the gover-
    13  nor of the state of New York by a rider advocacy group. The second  non-
    14  voting  commissioner  shall be a regular user of the state of New Jersey
    15  based facilities of the authority and shall be recommended to the gover-
    16  nor of the state of New Jersey by a  rider  advocacy  group.  The  third
    17  non-voting  commissioner  shall  be  recommended  to the governor of the
    18  state of New York by the labor organization representing the majority of
    19  authority employees working in the state of New York.   The fourth  non-
    20  voting commissioner shall be recommended to the governor of the state of
    21  New  Jersey  by  the  labor  organization  representing  the majority of
    22  authority employees working in the state of New Jersey.  The  four  non-
    23  voting commissioners of the port authority shall be appointed for a term
    24  of six years and shall serve no more than two terms.
    25    2.  Officers. a. The officers of the port authority shall be [a chair-
    26  person, a vice chairperson] two co-chairpersons, a chief executive offi-
    27  cer, a general counsel, a chief financial officer, a  chief  ethics  and
    28  compliance  officer,  an  inspector general, a treasurer, a comptroller,
    29  and a secretary. Beginning upon the next hiring  of  a  chief  executive
    30  officer [but no later than a year from the effective date of the chapter
    31  of the laws of 2015 that amended this article], the positions of [chair-
    32  person  and  vice  chairperson]  co-chairpersons shall [be rotated for a
    33  term of two years among commissioners appointed  by  New  York  and  New
    34  Jersey,  with a chairperson elected first from among those commissioners
    35  appointed by the governor of New York and  a  vice  chairperson  elected
    36  first  from  among  those commissioners appointed by the governor of New
    37  Jersey, after which the next chairperson shall  be  elected  from  among
    38  those  appointed  by the governor of New Jersey and the next vice chair-
    39  person shall be elected from among those appointed by  the  governor  of
    40  New  York  and  thereafter  the positions of chairperson and vice chair-
    41  person shall rotate every two years in the  same  order  as  established
    42  herein  provided that the failure of the board of commissioners to elect
    43  a new chairperson and vice chairperson shall not prevent the rotation of
    44  the positions of chairperson and vice chairperson to the next succeeding
    45  state] commence with one co-chairperson to be elected by  the  board  of
    46  commissioners  from  among such commissioners upon the recommendation of
    47  the governor of the state of New  York  and  one  co-chairperson  to  be
    48  elected by the board of commissioners from among such commissioners upon
    49  the recommendation of the governor of the state of New Jersey.
    50    b. No commissioner, including [the chairperson] either co-chairperson,
    51  shall  serve  as  the  port authority's chief executive officer, general
    52  counsel, chief financial officer, chief ethics and  compliance  officer,
    53  inspector general, or comptroller, or hold any other equivalent position
    54  while serving as a commissioner.
    55    §  2.  Subdivision 3 of article 7-B of section 1 of chapter 154 of the
    56  laws of 1921 relating to the port authority of New York and New  Jersey,
        A. 9838                             3

     1  as  amended  by  chapter  559 of the laws of 2015, is amended to read as
     2  follows:
     3    3.  Appearance.  a. The port authority, at the request of the Assembly
     4  or Senate of the New York state legislature or the General  Assembly  or
     5  Senate  of the New Jersey state legislature, shall be required to appear
     6  before a committee of  the  requesting  state  legislative  house,  upon
     7  request  by  the  presiding  officer of that state legislative house, to
     8  present testimony on any topic or subject requested by the committee  or
     9  to  respond  to  questions by members of the committee.  The Assembly of
    10  the New York state legislature, the Senate of the New York state  legis-
    11  lature,  the  General  Assembly of the New Jersey state legislature, and
    12  the Senate of the New Jersey state legislature shall each be entitled to
    13  two such requests per calendar year.
    14    b. Unless otherwise agreed to by the presiding officer  of  the  state
    15  legislative  house  requesting the appearance of the port authority, the
    16  port authority shall, at a minimum, be represented by  a  co-chairperson
    17  of  the board, chief executive officer, the chief financial officer, and
    18  any staff deemed necessary by such co-chairperson of  the  board,  chief
    19  executive  officer,  or the chief financial officer to present testimony
    20  or respond to questions at any  appearance  required  pursuant  to  this
    21  section.   The presiding officer may request the appearance of any offi-
    22  cer or employee of the port authority.  For purposes of this section, as
    23  applicable to New York state "presiding officer" shall mean the  speaker
    24  of the Assembly of the New York state legislature or temporary president
    25  of  the  Senate of the New York state legislature.  For purposes of this
    26  section, as applicable to the state of New  Jersey  "presiding  officer"
    27  shall  mean  the  president  of the senate or the speaker of the general
    28  assembly of the state of New Jersey.
    29    4. Subsidiaries of the port authority. a.  The  port  authority  shall
    30  provide  notice  to  the  governor of each state, the majority leader of
    31  each house of the legislature of each state, the chair  of  the  finance
    32  committee of New York, the chair of the senate budget and appropriations
    33  committee  of New Jersey, the chair of assembly ways and means committee
    34  of New York, and the chair of the budget committee of New Jersey that it
    35  will be creating a subsidiary no less than 60 days prior to  the  forma-
    36  tion of the subsidiary.
    37    b.  The  creation of a subsidiary corporation shall be approved by the
    38  board of commissioners.
    39    c. [On or before the first day of January, two thousand sixteen,  and]
    40  Within  60 days of the effective date of the chapter of the laws of 2020
    41  that amended this subdivision, and on or before the first day of January
    42  each year annually thereafter, any subsidiary  corporation,  in  cooper-
    43  ation  with the port authority, shall provide to the governor and legis-
    44  lature of each state a report on the subsidiary corporation. Such report
    45  shall include for each subsidiary:
    46    (1) The complete legal name, address and contact  information  of  the
    47  subsidiary;
    48    (2) The structure of the organization of the subsidiary, including the
    49  names and titles of each of its members, directors and officers, as well
    50  as a chart of its organizational structure;
    51    (3)  The complete by-laws and legal organization papers of the subsid-
    52  iary;
    53    (4) A complete report of the purpose, operations, mission and projects
    54  of the subsidiary; and
    55    (5) Any other information the subsidiary corporation  deems  important
    56  to include in such report.
        A. 9838                             4

     1    d.  60 days prior to the issuance of any debt by the subsidiary corpo-
     2  ration, or the port authority on behalf of the  subsidiary  corporation,
     3  the  port  authority shall provide notice to the governor of each state,
     4  the majority leader of each house of the legislature of each state,  the
     5  chair  of  the  senate  finance  committee of New York, the chair of the
     6  senate budget and appropriations committee of New Jersey, the  chair  of
     7  the  assembly ways and means committee of New York, and the chair of the
     8  assembly budget committee of New Jersey.  For purposes of this  section,
     9  as applicable to New York state "majority leader" shall mean the speaker
    10  of the assembly of the New York state legislature or temporary president
    11  of  the  senate of the New York state legislature.  For purposes of this
    12  section, as applicable to the state  of  New  Jersey  "majority  leader"
    13  shall  mean  the  president  of the senate or the speaker of the general
    14  assembly of the state of New Jersey.
    15    § 3. Paragraph b of subdivision 1 of article 7-C of section 1 of chap-
    16  ter 154 of the laws of 1921 relating to the port authority of  New  York
    17  and  New Jersey, as added by chapter 559 of the laws of 2015, is amended
    18  to read as follows:
    19    b. a financial section including: (1) an independent auditor's report;
    20  (2) management's discussion and analysis; (3) financial statements;  (4)
    21  its  financial reports certified by the [chair and vice-chair] co-chairs
    22  of the board, chief executive officer, and chief  financial  officer  of
    23  the  port authority, including (a) audited financials in accordance with
    24  generally  accepted  accounting  principles,  known  as  GAAP,  and  the
    25  accounting  standards  issued  by  the governmental accounting standards
    26  board, known as GASB,  (b)  grant  and  subsidy  programs,  (c)  current
    27  ratings,  if any, of its bonds issued by recognized bond rating agencies
    28  and notice of changes in such ratings, and  (d)  long-term  liabilities,
    29  including leases and employee benefit plans; (5) a schedule of its bonds
    30  and  notes  outstanding  at  the end of its fiscal year, together with a
    31  statement of the amounts redeemed and incurred during such  fiscal  year
    32  as  part  of a schedule of debt issuance that includes the date of issu-
    33  ance, term, amount, interest rate and means of repayment  including  all
    34  refinancings, calls, refundings, defeasements and interest rate exchange
    35  or  other  such  agreements;  and (6) at a minimum a four-year financial
    36  plan, including (a) a current and projected capital budget, and  (b)  an
    37  operating  budget  report,  including an actual versus estimated budget,
    38  with an analysis and measurement of financial and operating performance.
    39    § 4. Subdivisions 3 and 4 of article 7-D of section 1 of  chapter  154
    40  of  the  laws of 1921 relating to the port authority of New York and New
    41  Jersey, as added by chapter 559 of the laws of 2015, are amended  and  a
    42  new subdivision 5 is added to read as follows:
    43    3.  Capital plan. a. The port authority shall adopt a ten-year capital
    44  plan that is developed using a comprehensive planning process and  risk-
    45  based  prioritization  that  considers  asset condition, operational and
    46  revenue impact, threat assessment, customer service,  regional  benefit,
    47  and  regulatory  or  statutory  requirements.  The capital plan shall be
    48  dependent  upon  the  availability  of  sufficient  funding  and   other
    49  resources to pursue the capital projects proposed for the ten-year peri-
    50  od.  Performance  progress and revisions to reflect changes in programs,
    51  policies and projects and the environment in which  the  port  authority
    52  operates  shall  be  reviewed regularly by a committee designated by the
    53  board of commissioners, and the capital plan shall  be  revised  period-
    54  ically  as  necessary  and  appropriate,  and shall be reviewed with the
    55  board of commissioners annually. The port  authority  shall  publish  an
    56  annual report on the status of the capital program and such report shall
        A. 9838                             5

     1  be  made  publicly  available  on the port authority's website. Prior to
     2  adoption of a capital plan, the port authority shall make such  proposed
     3  plan  available for public review and comments on its public website for
     4  at  least  [two] four weeks prior to approval, and all comments received
     5  are to be distributed to the board of commissioners for review prior  to
     6  consideration of the capital plan.
     7    b.  The  port authority shall also provide that major capital projects
     8  are monitored by independent engineering  consultants.  The  independent
     9  consultants shall prepare annual reports to be provided to the board and
    10  made available to the public. The annual reports prepared by independent
    11  consultants shall include, but not be limited to, a comparison of actual
    12  and target performance measures including, but not limited to, costs and
    13  construction  schedules,  and a narrative explanation of any discrepancy
    14  thereof. For the purposes of this section, "major capital project" means
    15  an undertaking or program for the acquisition, creation, or  development
    16  of  any  crossing,  transportation facility, or commerce facility or any
    17  part thereof,  with  an  estimated  total  project  cost  in  excess  of
    18  $500,000,000.
    19    c.  No less than 60 days prior to any board adoption of a capital plan
    20  as described in paragraph a of this subdivision, or any  major  revision
    21  of  the  last adopted capital plan, the port authority shall: (1) notify
    22  the assembly and senate of the New York state legislature and the gener-
    23  al assembly and senate of the New Jersey state legislature of its inten-
    24  tion to adopt a capital plan, or any major revision of the last  adopted
    25  capital  plan;  (2)  submit  to  the assembly and senate of the New York
    26  state legislature and the general assembly and senate of the New  Jersey
    27  state  legislature the proposed capital plan, or any proposal constitut-
    28  ing a major revision of the last adopted capital  plan,  for  review  by
    29  each  state legislature; and (3) make the proposed capital plan, includ-
    30  ing any proposal constituting a major revision of the last adopted capi-
    31  tal plan, publicly available on the port authority website.
    32    d. Within 60 days of the notice provided in paragraph c of this subdi-
    33  vision, the port authority shall conduct  a  public  hearing  about  the
    34  capital  plan or any major revision thereof in New York state and in the
    35  state of New Jersey.
    36    e. The port authority shall conduct a status update public hearing  in
    37  New  York state and in the state of New Jersey at least once every three
    38  years after the adoption of the capital plan by the port authority. Such
    39  public hearing shall be known as "capital status update hearing" and  at
    40  such  hearing  the  port  authority  shall  provide  in detail a written
    41  description of the status of all capital plan projects and the costs and
    42  the expected costs of those projects. At such public hearing,  the  port
    43  authority  shall  provide a financing plan that identifies the source of
    44  funding for each project. The port authority shall provide  an  analysis
    45  that  compares  actual  and  target performance measures, and a detailed
    46  written explanation of any discrepancy thereof at the public hearing.
    47    4. Operating budget. The port authority shall prepare a detailed annu-
    48  al operating budget beginning with the fiscal year commencing after  the
    49  effective  date  of the chapter of the laws of [2015] 2020 which [added]
    50  amended this article. A preliminary annual  operating  budget  shall  be
    51  made publicly available on the port authority's website in July of every
    52  fiscal  year  and a final annual operating budget shall be made publicly
    53  available in February of each fiscal year.
    54    5. Port Authority Transportation Advisory Committee. a. There is here-
    55  by established a port authority transportation advisory committee.   The
    56  purpose of the committee shall be to facilitate coordination between and
        A. 9838                             6

     1  among  the  transportation  agencies  and  officials  in each state that
     2  provide service or  conduct  business  within  the  port  district.  The
     3  committee shall consist of 13 members, to be appointed as follows:
     4    (1)  one  individual  appointed  jointly  by the co-chairs of the Port
     5  Authority;
     6    (2) the executive director of the New Jersey transit  corporation,  ex
     7  officio, or the executive director's designee;
     8    (3)  the  chair of the metropolitan transportation authority, ex offi-
     9  cio, or the chair's designee;
    10    (4) the commissioner of the New York city  department  of  transporta-
    11  tion, ex officio, or the commissioner's designee;
    12    (5)  the  chairperson  of  the National Railroad Passenger Corporation
    13  Board of Directors, ex officio, or the chairperson's designee;
    14    (6) the commissioner of the New Jersey department  of  transportation,
    15  ex officio, or the commissioner's designee;
    16    (7)  the  commissioner of the New York state department of transporta-
    17  tion, ex officio, or the commissioner's designee;
    18    (8) one individual from the New Jersey executive branch, appointed  by
    19  the governor of New Jersey;
    20    (9) one individual from the New York state executive branch, appointed
    21  by the governor of New York;
    22    (10) one individual appointed by the president of the New Jersey state
    23  senate;
    24    (11)  one  individual appointed by the speaker of the New Jersey state
    25  general assembly;
    26    (12) one individual appointed by the temporary president  of  the  New
    27  York state senate; and
    28    (13)  one  individual  appointed  by the speaker of the New York state
    29  assembly.
    30    b. The individual appointed jointly  by  the  co-chairs  of  the  port
    31  authority  shall  serve  for  a  term  of  three  years. The legislative
    32  appointments shall serve for a term of two years each.  The  individuals
    33  appointed from the executive branch of New Jersey and from the executive
    34  branch of New York shall serve at the pleasure of each respective gover-
    35  nor.
    36    c. Vacancies in the membership of the committee shall be filled in the
    37  same  manner  as  the original appointments are made and a member may be
    38  eligible for reappointment. Vacancies occurring other than by expiration
    39  of a term shall be filled for the unexpired term.
    40    d. The members of the committee shall serve without  compensation  but
    41  shall  be reimbursed for reasonable expenses necessarily incurred in the
    42  performance of their duties within the limits of funds  appropriated  or
    43  otherwise made available to the committee for its purposes.
    44    e.  The  individual  appointed  jointly  by  the co-chairs of the port
    45  authority shall serve as the chair of the committee. The  committee  may
    46  appoint  a  secretary  who  need  not  be a member of the committee. The
    47  committee shall meet quarterly, at a minimum, to  discuss  the  region's
    48  transportation  needs  and  to facilitate coordination between and among
    49  the transportation agencies and officials in each  state  and  the  port
    50  district in furtherance of the region's transportation needs.
    51    f.  The  committee  and each meeting of the committee shall serve as a
    52  vehicle for each  committee  member  to  share  information  about  that
    53  member's agency and the agency's upcoming plans and objectives. Prior to
    54  the  commencement by an agency represented on the committee of any major
    55  capital project with an estimated cost in excess  of  $50  million,  the
        A. 9838                             7

     1  individual  representing  that  agency  shall  notify all members of the
     2  committee.
     3    § 5. Severability clause. If any clause, sentence, paragraph, subdivi-
     4  sion,  section  or  part  of  this act shall be adjudged by any court of
     5  competent jurisdiction to be invalid, such judgment  shall  not  affect,
     6  impair,  or  invalidate  the remainder thereof, but shall be confined in
     7  its operation to the clause, sentence, paragraph,  subdivision,  section
     8  or part thereof directly involved in the controversy in which such judg-
     9  ment shall have been rendered. It is hereby declared to be the intent of
    10  the  legislature  that  this  act  would  have been enacted even if such
    11  invalid provisions had not been included herein.
    12    § 6. This act shall take effect upon the enactment  into  law  by  the
    13  state  of New Jersey of legislation having an identical effect with this
    14  act, but if the state of New Jersey  shall  have  already  enacted  such
    15  legislation  this  act shall take effect immediately. The co-chairperson
    16  of the port authority as recommended by the governor of the state of New
    17  York shall notify the legislative  bill  drafting  commission  upon  the
    18  occurrence  of the enactment of the legislation provided for in sections
    19  one, two, three and four of this act in order that  the  commission  may
    20  maintain an accurate and timely effective data base of the official text
    21  of  the laws of the state of New York in furtherance of effectuating the
    22  provisions of section 44 of the legislative law and section 70-b of  the
    23  public officers law.