A03643 Summary:

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.
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A03643 Actions:

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
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A03643 Text:

                           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.
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