Bill Text: NY S05108 | 2019-2020 | General Assembly | Introduced

Bill Title: Relates to the regulation of bus privatization contracts.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-04-09 - REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS [S05108 Detail]

Download: New_York-2019-S05108-Introduced.html

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                    IN SENATE
                                      April 9, 2019
        Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
          printed to be committed to the Committee on Corporations,  Authorities
          and Commissions
        AN  ACT  to  amend  the public authorities law, in relation to the regu-
          lation of bus privatization contracts
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Legislative  intent.  The  legislature  hereby  finds and
     2  declares that decisions to use private  contractors  to  provide  public
     3  transportation service must be based on factors which promote the public
     4  interest.  To  ensure  that  citizens  of the state receive high quality
     5  transit services at low cost, with due regard for the taxpayers  of  the
     6  state and the needs of public and private workers, the legislature finds
     7  it necessary to regulate such privatization contracts.
     8    §  2.  The  public  authorities law is amended by adding a new section
     9  2875-c to read as follows:
    10    § 2875-c. Regulation of privatization contracts.  1.  Definitions.  As
    11  used in this section, the following words shall have the following mean-
    12  ings:
    13    a.  "Public  transportation system" means any passenger transportation
    14  service provided by bus, which, during its hours of operation, is avail-
    15  able on an equal opportunity basis to any person, without preference for
    16  service availability, eligibility or design being given to any person or
    17  population sub-group because of  age,  gender,  race,  national  origin,
    18  creed  or  agency  client  status, and which is regularly advertised and
    19  marketed as available to the general public.  Nothing  in  this  article
    20  shall  be  deemed  to  mean that the transportation services operated or
    21  provided by human or social service agencies solely for their clients or
    22  programs  constitute,  in  and  of  themselves,  public   transportation
    23  services.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        S. 5108                             2
     1    b.  "Privatization contract" shall mean an agreement or combination or
     2  series of agreements by which a private person or entity agrees  with  a
     3  public  transportation system to provide services, valued at one hundred
     4  thousand dollars or more, which are substantially similar to and in lieu
     5  of,  services  heretofore  provided,  in  whole  or  in part, by regular
     6  employees of the public transportation system. An  agreement  solely  to
     7  provide  legal,  management  consulting, planning, engineering or design
     8  services shall not be considered a privatization contract.
     9    2. Requirements. a. A public transportation system shall not make  any
    10  privatization  contract  and  no such contract shall be valid unless the
    11  public  transportation  system  complies  with  each  of  the  following
    12  requirements:
    13    (1)  the public transportation system shall prepare a specific written
    14  statement of the services proposed to be the subject of  the  privatiza-
    15  tion  contract,  including the specific quantity and standard of quality
    16  of the subject services;
    17    (2) the public transportation system  shall  include  in  the  written
    18  statement  a  summary  of  the employees' salaries, pension benefits and
    19  health care coverage and how those salaries, pension benefits and health
    20  care coverage will be affected by the privatization contract;
    21    (3) the organization shall solicit competitive  sealed  bids  for  the
    22  privatization contracts based upon this statement;
    23    (4)  the day designated by the public transportation system upon which
    24  it will accept these sealed bids shall be  the  same  for  any  and  all
    25  parties;
    26    (5)  this  statement  shall  be a public record, shall be filed at the
    27  public transportation system, and shall  be  transmitted  to  the  state
    28  comptroller for review pursuant to subdivision three of this section;
    29    (6)  the  term  of  any  privatization contract shall not exceed three
    30  years; and
    31    (7) no amendment to a privatization contract shall be valid if it  has
    32  the purpose or effect of avoiding any requirement of this section.
    33    b.  After  soliciting  and  receiving  bids, the public transportation
    34  system shall publicly designate the bidder to which it proposes to award
    35  the contract. The public transportation system shall prepare  a  compre-
    36  hensive  written analysis of the contract cost based upon the designated
    37  bid, specifically including the  costs  of  transition  from  public  to
    38  private  operation,  of additional unemployment and retirement benefits,
    39  if any, and of monitoring and otherwise administering contract  perform-
    40  ance.  If the designated bidder is headquartered outside the state, said
    41  contract cost shall be increased by the amount of income tax revenue, if
    42  any, which will be lost to the state.
    43    c. The public transportation  system  shall  provide  a  copy  of  the
    44  proposed  privatization  contract  as  well as certify in writing to the
    45  state comptroller that:
    46    (1) it has complied with all provisions of this  section  and  of  all
    47  other applicable laws;
    48    (2)  the  quality of the public transportation services to be provided
    49  by the designated bidder is likely to satisfy the  quality  requirements
    50  of the statement prepared pursuant to subparagraph one of paragraph a of
    51  this  subdivision  and  to equal or exceed the quality of services which
    52  could be provided by regular public transportation system employees;
    53    (3) the contract cost will be at least fifteen percent less  than  the
    54  estimated current year cost of the public system;
    55    (4)  the designated bidder and its supervisory employees, while in the
    56  employ of said designated bidder, have no adjudicated record of substan-

        S. 5108                             3
     1  tial or repeated willful noncompliance  with  any  relevant  federal  or
     2  state  regulatory  statute  including,  but  not  limited  to,  statutes
     3  concerning labor relations, occupational safety and health, nondiscrimi-
     4  nation and affirmative action, environmental protection and conflicts of
     5  interest;
     6    (5)  the proposed privatization contract is in the public interest, in
     7  that it meets the applicable quality  and  fiscal  standards  set  forth
     8  herein; and
     9    (6) the contract is in conformance with the provisions of any applica-
    10  ble collective bargaining agreement and subject to the provisions of any
    11  employee protection arrangements established under 49 U.S.C. 5333(b).
    12    3.  Review  by  state  comptroller; approval or objection; procedures;
    13  promulgation of regulations. a. No privatization contract shall be valid
    14  if within thirty business days after receiving  the  certification  from
    15  the  public  transportation  system,  the state comptroller notifies the
    16  public transportation system of its objection. Such objection  shall  be
    17  in  writing and shall state specifically the state comptroller's finding
    18  that the public transportation system has failed to comply with  one  or
    19  more requirement for privatization, including that the state comptroller
    20  finds  incorrect, based on independent review of all the relevant facts,
    21  any of the findings reached by the  public  transportation  system.  The
    22  state  comptroller  may  extend the time for such objection for an addi-
    23  tional period of thirty business days beyond the original  thirty  busi-
    24  ness days by written notice to the public transportation system, stating
    25  the reason for such extension.
    26    b.  For  the  purpose  of reviewing the public transportation system's
    27  compliance and certification, the state comptroller or his or her desig-
    28  nee may require by summons the attendance and testimony  under  oath  of
    29  witnesses and the production of books, papers and other records relating
    30  to such review.
    31    c.  The state comptroller may adopt regulations and prescribe forms to
    32  carry out the provisions of this section.
    33    d. The objection of the state comptroller pursuant to paragraph  a  of
    34  this subdivision shall be final and binding on the public transportation
    35  system, unless the state comptroller thereafter in writing withdraws the
    36  objection,  stating  the  specific reasons, based upon a revised certif-
    37  ication by the public transportation system and  upon  the  state  comp-
    38  troller's review thereof.
    39    §  3.  This  act shall take effect on the ninetieth day after it shall
    40  have become a law.