BILL NO A03643A
SAME AS No same as
SPONSOR Brennan (MS)
COSPNSR Sweeney, Goldfeder, Crespo, Abinanti
MLTSPNSR Abbate, Aubry, Clark, Cook, Gottfried, Gunther, Jacobs, Jaffee,
Lupardo, Magee, Magnarelli, Markey, O'Donnell, Rosenthal,
Scarborough, Titone, Titus, Weisenberg, Weprin, Wright
Amd S3, Pub Serv L; amd S1005, Pub Auth L
Relates to the public service department undertaking a comprehensive and
regular management and operations audit of the Power Authority of the State of
New York.
BILL NO A03643A
01/28/2013 referred to corporations, authorities and commissions
02/11/2013 reported referred to ways and means
06/11/2013 reported referred to rules
06/12/2013 reported
06/12/2013 rules report cal.212
06/12/2013 ordered to third reading rules cal.212
06/17/2013 passed assembly
06/17/2013 delivered to senate
06/17/2013 REFERRED TO RULES
01/08/2014 DIED IN SENATE
01/08/2014 RETURNED TO ASSEMBLY
01/08/2014 ordered to third reading cal.178
01/13/2014 committed to corporations, authorities and commissions
02/04/2014 reported referred to ways and means
02/06/2014 amend and recommit to ways and means
02/06/2014 print number 3643a
S T A T E O F N E W Y O R K
________________________________________________________________________
3643--A
2013-2014 Regular Sessions
I N A S S E M B L Y
January 28, 2013
___________
Introduced by M. of A. BRENNAN, SWEENEY, GOLDFEDER, CRESPO, ABINANTI --
Multi-Sponsored by -- M. of A. ABBATE, AUBRY, CLARK, COOK, GOTTFRIED,
GUNTHER, JACOBS, JAFFEE, LUPARDO, MAGEE, MAGNARELLI, MARKEY,
O'DONNELL, ROSENTHAL, SCARBOROUGH, TITONE, TITUS, WEISENBERG, WEPRIN,
WRIGHT -- read once and referred to the Committee on Corporations,
Authorities and Commissions -- ordered to a third reading -- committed
to the Committee on Corporations, Authorities and Commissions --
reported and referred to the Committee on Ways and Means -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the public service law, in relation to the department of
public service; and to amend the public authorities law, in relation
to the power authority of the State of New York
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. This act shall be known and may be cited as the "Power
2 Authority of the State of New York oversight and accountability act".
3 S 2. The opening paragraph of section 3 of the public service law is
4 designated subdivision 1 and a new subdivision 2 is added to read as
5 follows:
6 2. THE DEPARTMENT SHALL, UPON NOTIFICATION TO THE POWER AUTHORITY OF
7 THE STATE OF NEW YORK, UNDERTAKE A COMPREHENSIVE AND REGULAR MANAGEMENT
8 AND OPERATIONS AUDIT OF SAID AUTHORITY PURSUANT TO SUBDIVISION
9 TWENTY-FIVE OF SECTION ONE THOUSAND FIVE OF THE PUBLIC AUTHORITIES LAW.
10 THE DEPARTMENT SHALL HAVE DISCRETION TO HAVE SUCH AN AUDIT PERFORMED BY
11 ITS STAFF, OR BY AN INDEPENDENT CONTRACTOR. IN EVERY CASE IN WHICH AN
12 AUDIT IS REQUIRED PURSUANT TO SUBDIVISION TWENTY-FIVE OF SECTION ONE
13 THOUSAND FIVE OF THE PUBLIC AUTHORITIES LAW PERFORMED BY AN INDEPENDENT
14 AUDITOR, THE DEPARTMENT SHALL HAVE THE AUTHORITY TO SELECT THE AUDITOR,
15 AND TO REQUIRE THE POWER AUTHORITY OF THE STATE OF NEW YORK TO ENTER
16 INTO A CONTRACT WITH THE AUDITOR THAT IS CONSISTENT WITH THE CONTRACT-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07347-02-4
A. 3643--A 2
1 ING-RELATED REQUIREMENTS SPECIFIED IN SUBDIVISION NINETEEN OF SECTION
2 SIXTY-SIX OF THIS CHAPTER AND THE REQUIREMENTS OF SUBDIVISION
3 TWENTY-FIVE OF SECTION ONE THOUSAND FIVE OF THE PUBLIC AUTHORITIES LAW.
4 SUCH CONTRACT SHALL PROVIDE FURTHER THAT THE AUDITOR SHALL WORK FOR AND
5 UNDER THE DIRECTION OF THE DEPARTMENT ACCORDING TO SUCH TERMS AS THE
6 DEPARTMENT MAY DETERMINE ARE NECESSARY AND REASONABLE.
7 S 3. Section 1005 of the public authorities law is amended by adding a
8 new subdivision 25 to read as follows:
9 25. COMPREHENSIVE AND REGULAR MANAGEMENT AND OPERATIONS AUDITS. (A)
10 THE AUTHORITY SHALL COOPERATE IN THE UNDERTAKING AND COMPLETION OF A
11 REGULAR AND COMPREHENSIVE MANAGEMENT AND OPERATIONS AUDIT CONDUCTED
12 PURSUANT TO THE REQUIREMENTS OF THIS SUBDIVISION AND SUBDIVISION TWO OF
13 SECTION THREE OF THE PUBLIC SERVICE LAW. SUCH AUDIT SHALL REVIEW AND
14 EVALUATE THE AUTHORITY'S OVERALL OPERATIONS AND MANAGEMENT, INCLUDING,
15 BUT NOT BE LIMITED TO: (I) THE AUTHORITY'S CONSTRUCTION AND CAPITAL
16 PROGRAM PLANNING IN RELATION TO THE NEEDS OF ITS CUSTOMERS FOR RELIABLE
17 SERVICE; (II) THE OVERALL EFFICIENCY OF THE AUTHORITY'S OPERATIONS;
18 (III) THE MANNER IN WHICH THE AUTHORITY IS MEETING ITS DEBT SERVICE
19 OBLIGATIONS; (IV) THE AUTHORITY'S ANNUAL BUDGETING PROCEDURES AND PROC-
20 ESS; (V) THE AUTHORITY'S COMPLIANCE WITH DEBT COVENANTS; (VI) THE IMPLE-
21 MENTATION OF RECHARGE NEW YORK POWER PROGRAM PURSUANT TO SUBDIVISION
22 THIRTEEN-A OF THIS SECTION; (VII) THE IMPLEMENTATION AND EFFICACY OF THE
23 ENERGY EFFICIENCY PROGRAM PURSUANT TO PARAGRAPH (C) OF SUBDIVISION THIR-
24 TEEN-B OF THIS SECTION; (VIII) THE IMPLEMENTATION OF THE ENERGY EFFI-
25 CIENCY PROJECTS PROGRAM PURSUANT TO SUBDIVISION SEVENTEEN OF THIS
26 SECTION; AND (IX) SUCH OTHER SERVICES, OPERATIONS AND FINANCES OF THE
27 AUTHORITY AS THE COMMISSION SHALL DEEM ADVISABLE.
28 (B) THE DEPARTMENT OF PUBLIC SERVICE SHALL NOTIFY THE AUTHORITY THAT
29 SAID DEPARTMENT IS IN THE PROCESS OF INITIATING A COMPREHENSIVE MANAGE-
30 MENT AND OPERATIONS AUDIT AS DESCRIBED IN PARAGRAPH (A) OF THIS SUBDIVI-
31 SION IN A MANNER THAT ENSURES THE TIMELINESS OF SUCH AUDIT, AND IN
32 ACCORDANCE WITH THE FOLLOWING TIMEFRAME: THE FIRST COMPREHENSIVE MANAGE-
33 MENT AND OPERATIONS AUDIT SHALL BE INITIATED AS OF THE EFFECTIVE DATE OF
34 THIS SUBDIVISION; THE SECOND COMPREHENSIVE MANAGEMENT AND OPERATIONS
35 AUDIT SHALL BE INITIATED NO LATER THAN DECEMBER FIFTEENTH, TWO THOUSAND
36 EIGHTEEN; AND ALL ADDITIONAL COMPREHENSIVE MANAGEMENT AND OPERATIONS
37 AUDITS SHALL BE INITIATED AT LEAST ONCE EVERY FIVE YEARS THEREAFTER.
38 WITHIN A REASONABLE TIME AFTER SUCH NOTIFICATION TO THE AUTHORITY, SAID
39 DEPARTMENT OR THE INDEPENDENT AUDITOR RETAINED BY THE AUTHORITY TO
40 UNDERTAKE SUCH AUDIT SHALL HOLD PUBLIC STATEMENT HEARINGS, WITH PROPER
41 NOTICE, IN EACH JUDICIAL DEPARTMENT IN THE STATE FOR THE PURPOSE OF
42 RECEIVING BOTH ORAL AND WRITTEN COMMENTS FROM THE PUBLIC ON MATTERS
43 RELATED TO SUCH AUDIT AS DESCRIBED IN PARAGRAPH (A) OF THIS SUBDIVISION.
44 (C) EACH SUCH AUDIT SHALL BE COMPLETED WITHIN EIGHTEEN MONTHS OF
45 INITIATION UNLESS AN EXTENSION IS GRANTED FOR GOOD CAUSE SHOWN BY THE
46 DEPARTMENT OF PUBLIC SERVICE OR THE INDEPENDENT AUDITOR UNDER CONTRACT
47 WITH THE AUTHORITY WITH NOTICE OF SUCH EXTENSION TO THE GOVERNOR, THE
48 TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, AND THE
49 CHAIRS OF THE AUTHORITY AND THE DEPARTMENT OF PUBLIC SERVICE. SUCH AUDIT
50 SHALL BE PROVIDED TO THE BOARD OF THE AUTHORITY IMMEDIATELY UPON ITS
51 COMPLETION. THE DEPARTMENT OF PUBLIC SERVICE SHALL PROVIDE NOTICE OF
52 COMPLETION OF SUCH AUDIT TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE
53 SENATE, THE SPEAKER OF THE ASSEMBLY, AND THE MINORITY LEADERS OF THE
54 SENATE AND ASSEMBLY, AND THE AUTHORITY, UPON RECEIPT OF SUCH AUDIT,
55 SHALL POST A COPY OF SUCH AUDIT, INCLUDING FINDINGS AND RECOMMENDATIONS,
56 ON ITS WEBSITE. UNLESS THE BOARD OF THE AUTHORITY MAKES A PRELIMINARY
A. 3643--A 3
1 DETERMINATION THAT ANY PARTICULAR FINDING OR RECOMMENDATION CONTAINED IN
2 SUCH AUDIT IS INCONSISTENT WITH THE AUTHORITY'S SOUND FISCAL OPERATING
3 PRACTICES, ANY EXISTING CONTRACTUAL OR OPERATING OBLIGATION, OR THE
4 PROVISION FOR SAFE AND ADEQUATE SERVICE, THE BOARD SHALL IMPLEMENT SUCH
5 FINDINGS AND RECOMMENDATIONS IN ACCORDANCE WITH THE TIMEFRAME SPECIFIED
6 UNDER SUCH AUDIT.
7 (D) THE BOARD OF THE AUTHORITY SHALL MAKE ANY PRELIMINARY DETERMI-
8 NATION OF INCONSISTENCY WITH RESPECT TO ANY SUCH FINDING OR RECOMMENDA-
9 TION WITHIN THIRTY DAYS OF RECEIPT OF THE AUDIT, WITH NOTICE AND THE
10 BASIS OF SUCH DETERMINATION BEING PROVIDED TO THE DEPARTMENT OF PUBLIC
11 SERVICE. SUCH NOTICE AND BASIS SHALL BE POSTED CONTEMPORANEOUSLY ON THE
12 AUTHORITY'S WEBSITE AND THE BOARD SHALL, WITHIN THIRTY DAYS OF SUCH
13 POSTING AND WITH DUE ADVANCE NOTICE TO THE PUBLIC, HOLD A PUBLIC HEARING
14 WITH RESPECT TO ITS PRELIMINARY DETERMINATION OF INCONSISTENCY. AT SUCH
15 HEARING THE DEPARTMENT OF PUBLIC SERVICE OR THE INDEPENDENT AUDITOR
16 RESPONSIBLE FOR UNDERTAKING SUCH AUDIT SHALL PRESENT THE BASIS FOR ITS
17 FINDINGS AND RECOMMENDATIONS AND THE BOARD SHALL PRESENT THE BASIS FOR
18 ITS DETERMINATION OF INCONSISTENCY. THE AUTHORITY AND AUDITOR MAY DURING
19 THE TIME PERIOD PRIOR TO SUCH PUBLIC HEARING REACH AGREEMENT ON DISPUTED
20 ISSUES. WITHIN THIRTY DAYS AFTER SUCH PUBLIC HEARING, THE BOARD OF THE
21 AUTHORITY SHALL ANNOUNCE ITS FINAL DETERMINATION AND PLANNED IMPLEMENTA-
22 TIONS WITH RESPECT TO ANY SUCH FINDINGS AND/OR RECOMMENDATIONS. THE
23 BOARD'S FINAL DETERMINATION OF INCONSISTENCY SHALL BE SUBJECT TO ANY
24 APPLICABLE JUDICIAL REVIEW PROCEEDING, INCLUDING REVIEW AVAILABLE UNDER
25 ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES.
26 S 4. This act shall take effect immediately.
