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A07454 Summary:

BILL NOA07454
 
SAME ASNo Same As
 
SPONSORTitone
 
COSPNSR
 
MLTSPNSR
 
Add 1 Art VII-E, Chap 154 of 1921
 
Directs the port authority to contract with a certified public accounting firm for the conducting of an independent forensic audit of such authority.
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A07454 Actions:

BILL NOA07454
 
04/26/2017referred to corporations, authorities and commissions
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A07454 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7454
 
SPONSOR: Titone
  TITLE OF BILL: An act to amend chapter 154 of the laws of 1921 relat- ing to the Port Authority of New York and New Jersey, in relation to directing the port authority to contract for the provision of an inde- pendent forensic audit of such authority; and providing for the repeal of such provisions upon expiration thereof   PURPOSE OR GENERAL IDEA OF BILL: Directs the Port Authority of New York and New Jersey to contract with a certified public accounting firm for the conducting of an independent forensic audit.   SUMMARY OF PROVISIONS: Section one of the bill amends Section 1 of chapter 154 of the laws of 1921 relating to the Port Authority of New York and New Jersey is amended by adding a new article VII-B.Section two is the effective date.   DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE): N/A   JUSTIFICATION: This bill is necessary to give the Governors and Legislatures of New York and New Jersey and the public the ability to know how and where money is being spent for the operations of the Port Authority. While the Port Authority Commissioners have recently approved a toll and fare hike, it has been documented by the New York State Comptroller that the Port Authority spent $85 million in overtime in 2010. Another report shows the Authority lacked documentation for over $1 billion in service contracts and agreements and that it is potentially missing out on tens of millions of dollars in savings. In addition, recent media reports noted that the Authority has allowed costs for rebuilding the World Trade Center to go $2 billion over budget, and that it routinely loses tens of millions of dollars a year on facilities. At a time when every dollar counts, these actions are simply inexcusa- ble. The Port Authority cannot justify asking families and businesses to pay substantially more in tolls, while at the same time failing to control its budget. That is why this legislation, to require an inde- pendent forensic audit, is necessary. This audit will give the both New York and New Jersey governments, and the public, the ability to know where Port Authority funds are being allocated. This audit will be a blueprint to implement future cost saving measures within the Authority. This bill will ensure that revenue is being spent wisely and will also reveal ways that the Port Authority can cut costs without harming the public's transportation needs. The independent forensic audit, conducted by a public accounting firm, must report its findings on or before one year from the effective date of this article.   PRIOR LEGISLATIVE HISTORY: (2011-2012) A.8679 Referred to corporations, authorities and commissions (2013-2014) A.4283 Referred to corporations, authorities and commissions (2015-2016) A.3141 Referred to corporations, authorities and commissions   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None to the states of New York and New Jersey.   EFFECTIVE DATE: This act shall take effect upon the enactment into law by the state of New Jersey of legislation having an identical effect with this act, but if the state of New Jersey shall have already enacted such legislation, this act shall take effect immediately; provided that the chairman of the port authority of New York and New Jersey shall notify the legisla- tive bill drafting commission upon the occurrence of the enactment of the legislation provided for in section one of this act in order that the commission may maintain an accurate and timely effective data base of the official text of the laws of the state of New York in furtherance of effectuating the provisions of section 44 of the legislative law and section 70-b of the public officers law.
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A07454 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7454
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                     April 26, 2017
                                       ___________
 
        Introduced by M. of A. TITONE -- 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  directing  the
          port  authority to contract for the provision of an independent foren-
          sic audit of such authority; and providing  for  the  repeal  of  such
          provisions upon expiration thereof
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 1 of chapter 154 of the laws of  1921  relating  to
     2  the Port Authority of New York and New Jersey is amended by adding a new
     3  article VII-E to read as follows:
     4                                 ARTICLE VII-E
     5    1.  Notwithstanding  any  other provision of law, the authority shall,
     6  within sixty days of the effective date of this article and at  its  own
     7  expense,  contract  with  a  certified  public  accounting  firm for the
     8  provision of  an  independent,  comprehensive,  forensic  audit  of  the
     9  authority.  Such  audit  shall be performed in accordance with generally
    10  accepted government auditing standards. Such audit shall be  independent
    11  of and in addition to any independent audit of the authority.
    12    2.  The  certified  independent  public  accounting firm providing the
    13  authority's independent, comprehensive, forensic audit shall be  prohib-
    14  ited  from  providing audit services if the lead (or coordinating) audit
    15  partner (having primary responsibility for  the  audit),  or  the  audit
    16  partner  responsible  for  reviewing  the  audit,  has  performed  audit
    17  services for the authority within any of the ten previous  fiscal  years
    18  of the authority.
    19    3.  The  certified  independent  accounting  firm performing the audit
    20  pursuant to this section shall be prohibited from performing any non-au-
    21  dit services for the authority contemporaneously with the audit.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11042-01-7

        A. 7454                             2
 
     1    4. It  shall  be  prohibited  for  the  certified  independent  public
     2  accounting  firm  to  perform for the authority any audit service if the
     3  chief executive officer, comptroller,  chief  financial  officer,  chief
     4  accounting officer or any other person serving in an equivalent position
     5  in  the  authority was an employee, consultant or independent contractor
     6  of that certified independent public accounting firm and participated in
     7  any capacity in the audit of the authority at any time in the past.
     8    5. The certified independent  public  accounting  firm  contracted  to
     9  perform  the  independent comprehensive, forensic audit of the authority
    10  shall, on or before one year from the effective date  of  this  article,
    11  report  its  findings,  conclusions and recommendations to the governor,
    12  the state comptroller, the temporary president of the senate, the speak-
    13  er of the assembly, the chair and ranking minority member of the  senate
    14  finance committee, the chair and ranking minority member of the assembly
    15  ways and means committee, the chairs and ranking minority members of the
    16  senate  and  the  assembly  corporations,  authorities  and  commissions
    17  committees, and the chairs and ranking minority members  of  the  senate
    18  and the assembly transportation committees.
    19    §  2.  This  act  shall take effect upon the enactment into law by the
    20  state of New Jersey of legislation having an identical effect with  this
    21  act,  but  if  the  state  of New Jersey shall have already enacted such
    22  legislation, this act shall take effect immediately and shall expire and
    23  be deemed repealed one year after such date; provided that the state  of
    24  New  Jersey  shall  notify the legislative bill drafting commission upon
    25  the occurrence of the enactment  of  the  legislation  provided  for  in
    26  section  one  of  this  act in order that the commission may maintain an
    27  accurate and timely effective data base of the official text of the laws
    28  of the state of New York in furtherance of effectuating  the  provisions
    29  of  section  44  of  the  legislative law and section 70-b of the public
    30  officers law.
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