BILL NO A03643
SAME AS No same as
SPONSOR Brennan (MS)
COSPNSR Sweeney, Goldfeder, Crespo
MLTSPNSR Abbate, Aubry, Clark, Cook, Gibson, 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.
S T A T E O F N E W Y O R K
________________________________________________________________________
3643
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 -- Multi-
Sponsored by -- M. of A. ABBATE, AUBRY, CLARK, COOK, GIBSON, GOTT-
FRIED, 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
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. Section 3 of the public service law is amended by adding a new
4 subdivision 3 to read as follows:
5 3. THE DEPARTMENT SHALL, UPON NOTIFICATION TO THE POWER AUTHORITY OF
6 THE STATE OF NEW YORK, UNDERTAKE A COMPREHENSIVE AND REGULAR MANAGEMENT
7 AND OPERATIONS AUDIT OF SAID AUTHORITY PURSUANT TO SUBDIVISION
8 TWENTY-FOUR OF SECTION ONE THOUSAND FIVE OF THE PUBLIC AUTHORITIES LAW.
9 THE DEPARTMENT SHALL HAVE DISCRETION TO HAVE SUCH AN AUDIT PERFORMED BY
10 ITS STAFF, OR BY AN INDEPENDENT CONTRACTOR. IN EVERY CASE IN WHICH AN
11 AUDIT IS REQUIRED PURSUANT TO SUBDIVISION TWENTY-FOUR OF SECTION ONE
12 THOUSAND FIVE OF THE PUBLIC AUTHORITIES LAW PERFORMED BY AN INDEPENDENT
13 AUDITOR, THE DEPARTMENT SHALL HAVE THE AUTHORITY TO SELECT THE AUDITOR,
14 AND TO REQUIRE THE POWER AUTHORITY OF THE STATE OF NEW YORK TO ENTER
15 INTO A CONTRACT WITH THE AUDITOR THAT IS CONSISTENT WITH THE CONTRACT-
16 ING-RELATED REQUIREMENTS SPECIFIED IN SUBDIVISION NINETEEN OF SECTION
17 SIXTY-SIX OF THIS CHAPTER AND THE REQUIREMENTS OF SUBDIVISION
18 TWENTY-FOUR OF SECTION ONE THOUSAND FIVE OF THE PUBLIC AUTHORITIES LAW.
19 SUCH CONTRACT SHALL PROVIDE FURTHER THAT THE AUDITOR SHALL WORK FOR AND
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07347-01-3
A. 3643 2
1 UNDER THE DIRECTION OF THE DEPARTMENT ACCORDING TO SUCH TERMS AS THE
2 DEPARTMENT MAY DETERMINE ARE NECESSARY AND REASONABLE.
3 S 3. Section 1005 of the public authorities law is amended by adding a
4 new subdivision 24 to read as follows:
5 24. COMPREHENSIVE AND REGULAR MANAGEMENT AND OPERATIONS AUDITS. (A)
6 THE AUTHORITY SHALL COOPERATE IN THE UNDERTAKING AND COMPLETION OF A
7 REGULAR AND COMPREHENSIVE MANAGEMENT AND OPERATIONS AUDIT CONDUCTED
8 PURSUANT TO THE REQUIREMENTS OF THIS SUBDIVISION AND SUBDIVISION THREE
9 OF SECTION THREE OF THE PUBLIC SERVICE LAW. SUCH AUDIT SHALL REVIEW AND
10 EVALUATE THE AUTHORITY'S OVERALL OPERATIONS AND MANAGEMENT, INCLUDING,
11 BUT NOT BE LIMITED TO: (I) THE AUTHORITY'S CONSTRUCTION AND CAPITAL
12 PROGRAM PLANNING IN RELATION TO THE NEEDS OF ITS CUSTOMERS FOR RELIABLE
13 SERVICE; (II) THE OVERALL EFFICIENCY OF THE AUTHORITY'S OPERATIONS;
14 (III) THE MANNER IN WHICH THE AUTHORITY IS MEETING ITS DEBT SERVICE
15 OBLIGATIONS; (IV) THE AUTHORITY'S ANNUAL BUDGETING PROCEDURES AND PROC-
16 ESS; (V) THE AUTHORITY'S COMPLIANCE WITH DEBT COVENANTS; (VI) THE IMPLE-
17 MENTATION OF RECHARGE NEW YORK POWER PROGRAM PURSUANT TO SUBDIVISION
18 THIRTEEN-A OF THIS SECTION; (VII) THE IMPLEMENTATION AND EFFICACY OF THE
19 ENERGY EFFICIENCY PROGRAM PURSUANT TO PARAGRAPH (C) OF SUBDIVISION THIR-
20 TEEN-B OF THIS SECTION; (VIII) THE IMPLEMENTATION OF THE ENERGY EFFI-
21 CIENCY PROJECTS PROGRAM PURSUANT TO SUBDIVISION SEVENTEEN OF THIS
22 SECTION; AND (IX) SUCH OTHER SERVICES, OPERATIONS AND FINANCES OF THE
23 AUTHORITY AS THE COMMISSION SHALL DEEM ADVISABLE.
24 (B) THE DEPARTMENT OF PUBLIC SERVICE SHALL NOTIFY THE AUTHORITY THAT
25 SAID DEPARTMENT IS IN THE PROCESS OF INITIATING A COMPREHENSIVE MANAGE-
26 MENT AND OPERATIONS AUDIT AS DESCRIBED IN PARAGRAPH (A) OF THIS SUBDIVI-
27 SION IN A MANNER THAT ENSURES THE TIMELINESS OF SUCH AUDIT, AND IN
28 ACCORDANCE WITH THE FOLLOWING TIMEFRAME: THE FIRST COMPREHENSIVE MANAGE-
29 MENT AND OPERATIONS AUDIT SHALL BE INITIATED AS OF THE EFFECTIVE DATE OF
30 THIS SUBDIVISION; THE SECOND COMPREHENSIVE MANAGEMENT AND OPERATIONS
31 AUDIT SHALL BE INITIATED NO LATER THAN DECEMBER FIFTEENTH, TWO THOUSAND
32 SEVENTEEN; AND ALL ADDITIONAL COMPREHENSIVE MANAGEMENT AND OPERATIONS
33 AUDITS SHALL BE INITIATED AT LEAST ONCE EVERY FIVE YEARS THEREAFTER.
34 WITHIN A REASONABLE TIME AFTER SUCH NOTIFICATION TO THE AUTHORITY, SAID
35 DEPARTMENT OR THE INDEPENDENT AUDITOR RETAINED BY THE AUTHORITY TO
36 UNDERTAKE SUCH AUDIT SHALL HOLD PUBLIC STATEMENT HEARINGS, WITH PROPER
37 NOTICE, IN EACH JUDICIAL DEPARTMENT IN THE STATE FOR THE PURPOSE OF
38 RECEIVING BOTH ORAL AND WRITTEN COMMENTS FROM THE PUBLIC ON MATTERS
39 RELATED TO SUCH AUDIT AS DESCRIBED IN PARAGRAPH (A) OF THIS SUBDIVISION.
40 (C) EACH SUCH AUDIT SHALL BE COMPLETED WITHIN EIGHTEEN MONTHS OF
41 INITIATION UNLESS AN EXTENSION IS GRANTED FOR GOOD CAUSE SHOWN BY THE
42 DEPARTMENT OF PUBLIC SERVICE OR THE INDEPENDENT AUDITOR UNDER CONTRACT
43 WITH THE AUTHORITY WITH NOTICE OF SUCH EXTENSION TO THE GOVERNOR, THE
44 TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, AND THE
45 CHAIRS OF THE AUTHORITY AND THE DEPARTMENT OF PUBLIC SERVICE. SUCH AUDIT
46 SHALL BE PROVIDED TO THE BOARD OF THE AUTHORITY IMMEDIATELY UPON ITS
47 COMPLETION. THE DEPARTMENT OF PUBLIC SERVICE SHALL PROVIDE NOTICE OF
48 COMPLETION OF SUCH AUDIT TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE
49 SENATE, THE SPEAKER OF THE ASSEMBLY, AND THE MINORITY LEADERS OF THE
50 SENATE AND ASSEMBLY, AND THE AUTHORITY, UPON RECEIPT OF SUCH AUDIT,
51 SHALL POST A COPY OF SUCH AUDIT, INCLUDING FINDINGS AND RECOMMENDATIONS,
52 ON ITS WEBSITE. UNLESS THE BOARD OF THE AUTHORITY MAKES A PRELIMINARY
53 DETERMINATION THAT ANY PARTICULAR FINDING OR RECOMMENDATION CONTAINED IN
54 SUCH AUDIT IS INCONSISTENT WITH THE AUTHORITY'S SOUND FISCAL OPERATING
55 PRACTICES, ANY EXISTING CONTRACTUAL OR OPERATING OBLIGATION, OR THE
56 PROVISION FOR SAFE AND ADEQUATE SERVICE, THE BOARD SHALL IMPLEMENT SUCH
A. 3643 3
1 FINDINGS AND RECOMMENDATIONS IN ACCORDANCE WITH THE TIMEFRAME SPECIFIED
2 UNDER SUCH AUDIT.
3 (D) THE BOARD OF THE AUTHORITY SHALL MAKE ANY PRELIMINARY DETERMI-
4 NATION OF INCONSISTENCY WITH RESPECT TO ANY SUCH FINDING OR RECOMMENDA-
5 TION WITHIN THIRTY DAYS OF RECEIPT OF THE AUDIT, WITH NOTICE AND THE
6 BASIS OF SUCH DETERMINATION BEING PROVIDED TO THE DEPARTMENT OF PUBLIC
7 SERVICE. SUCH NOTICE AND BASIS SHALL BE POSTED CONTEMPORANEOUSLY ON THE
8 AUTHORITY'S WEBSITE AND THE BOARD SHALL, WITHIN THIRTY DAYS OF SUCH
9 POSTING AND WITH DUE ADVANCE NOTICE TO THE PUBLIC, HOLD A PUBLIC HEARING
10 WITH RESPECT TO ITS PRELIMINARY DETERMINATION OF INCONSISTENCY. AT SUCH
11 HEARING THE DEPARTMENT OF PUBLIC SERVICE OR THE INDEPENDENT AUDITOR
12 RESPONSIBLE FOR UNDERTAKING SUCH AUDIT SHALL PRESENT THE BASIS FOR ITS
13 FINDINGS AND RECOMMENDATIONS AND THE BOARD SHALL PRESENT THE BASIS FOR
14 ITS DETERMINATION OF INCONSISTENCY. THE AUTHORITY AND AUDITOR MAY DURING
15 THE TIME PERIOD PRIOR TO SUCH PUBLIC HEARING REACH AGREEMENT ON DISPUTED
16 ISSUES. WITHIN THIRTY DAYS AFTER SUCH PUBLIC HEARING, THE BOARD OF THE
17 AUTHORITY SHALL ANNOUNCE ITS FINAL DETERMINATION AND PLANNED IMPLEMENTA-
18 TIONS WITH RESPECT TO ANY SUCH FINDINGS AND/OR RECOMMENDATIONS. THE
19 BOARD'S FINAL DETERMINATION OF INCONSISTENCY SHALL BE SUBJECT TO ANY
20 APPLICABLE JUDICIAL REVIEW PROCEEDING, INCLUDING REVIEW AVAILABLE UNDER
21 ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES.
22 S 4. This act shall take effect immediately.
