A04870 Summary:

BILL NOA04870
 
SAME ASSAME AS S06296
 
SPONSORDinowitz
 
COSPNSROrtiz, Simon
 
MLTSPNSRAbbate
 
 
Requires all public authorities owning, leasing, and controlling critical infrastructure to study the potential consequences of privatization.
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A04870 Actions:

BILL NOA04870
 
02/03/2017referred to corporations, authorities and commissions
01/03/2018referred to corporations, authorities and commissions
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A04870 Committee Votes:

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A04870 Floor Votes:

There are no votes for this bill in this legislative session.
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A04870 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A4870
 
SPONSOR: Dinowitz
  TITLE OF BILL: An act requiring all public authorities owning, leas- ing, and controlling critical infrastructure to study the potential consequences of privatization   PURPOSE OR GENERAL IDEA OF BILL: This bill would require all public authorities to suspend all action in regard to transferring critical infrastructure to the private business sector, until each of such public authorities has issued a study report- ing on the effects of privatization on the infrastructure.   SUMMARY OF SPECIFIC PROVISIONS: All public authorities shall suspend all action with regard to privati- zation of transportation infrastructure. All public authorities shall issue a report on the effects of privatization of transportation infras- tructure to the assembly committees on corporations, authorities and commissions, economic development, transportation, and ways and means and to the senate committees on commerce, economic development and small business, corporations, authorities and commissions, and transportation. Each public authority report should analyze in detail, the fiscal ramifications of privatization of critical infrastructure and compare the specifics of any proposed project to any existing privatization initiatives in the United States.   JUSTIFICATION: This bill would require public authorities to analyze the long-term fiscal implications of privatizing critical infrastructure. Public authorities should be required to show proof that a one time cash infusion resulting from selling public assets is preferable to the decades of future income and tighter control of price increases that currently exist. The possibility exists that taxpayers will be left with higher tolls and poorer service when private entities begin seeking greater profits from privatized infrastructure. The legislature needs the specific details of any and all deals that would privatize infras- tructure in New York State, before any precedent setting deals are completed.   PRIOR LEGISLATIVE HISTORY: 2015-16: A.3231- Referred to Corporations, Authorities and Commissions 2013-14: A.5588- In Corporations. 2011-12: A.5754a- In Corporations. 2009-10:A.4117- Reported to Ways and Means   FISCAL IMPACT: None.   EFFECTIVE DATE: This act shall take effect on the ninetieth day after it shall have become a law, except that any rule or regulation necessary for the time- ly implementation of this act on its effective date shall be promulgated on or before such date.
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A04870 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          4870
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 3, 2017
                                       ___________
 
        Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
          tee on Corporations, Authorities and Commissions
 
        AN ACT requiring all public authorities owning, leasing, and controlling
          critical  infrastructure to study the potential consequences of priva-
          tization

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Legislative  findings. 1. New York state must have suffi-
     2  cient numbers of properly  designed  and  maintained  bridges,  tunnels,
     3  roads, airports, ports, container ports and railroads ("critical infras-
     4  tructure")  in order to retain its economic competitiveness and grow its
     5  economy.
     6    2. Much of the state's existing critical infrastructure is  aging,  is
     7  experiencing capacity problems, has had maintenance problems, or in some
     8  other  manner  has  become  a  candidate for re-engineering, rebuilding,
     9  replacement or supplementation.
    10    3. The most critical and expensive infrastructure in New York state to
    11  re-engineer, rebuild or replace is under the  control  or  ownership  of
    12  public  authorities,  and such critical transportation infrastructure is
    13  under consideration for sale,  long-term  lease  or  other  transfer  of
    14  ownership or control to the private business sector ("privatization").
    15    §  2.  1.  All  public  authorities  shall immediately suspend issuing
    16  concessions or selling or otherwise transferring, or issuing notices  of
    17  inquiry ("NOIs") or requests for proposal ("RFPs") for leasing, or sell-
    18  ing  or  otherwise  transferring  control of any critical transportation
    19  infrastructure, until each of such public authorities has issued a study
    20  reporting on the effects of  privatization  of  critical  transportation
    21  infrastructure,  and  all  public authorities shall forbear from issuing
    22  concessions or selling or otherwise transferring, or issuing notices  of
    23  inquiry    ("NOIs")  or  requests for proposals ("RFPs") for leasing, or
    24  selling or otherwise transferring control of any critical transportation
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07588-01-7

        A. 4870                             2
 
     1  infrastructure during the pendency of such studies  (the  "privatization
     2  report").
     3    2.  (a) Each public authority shall issue its individual report to the
     4  assembly  committees  on  corporations,  authorities  and   commissions,
     5  economic  development,  transportation,  and  ways and means, and to the
     6  senate committees on commerce, economic development and small  business,
     7  corporations,  authorities  and  commissions,  and  transportation  (the
     8  "Committees").
     9    (b) Each public  authority's  report  shall  evaluate  in  detail  the
    10  following:
    11    (i)  the  impact  that  sale  or  transfer  of control of its critical
    12  infrastructure would have upon the authority's ability to  pay  any  and
    13  all  debt  it has issued, or succeeded to, that is guaranteed or secured
    14  by any revenues arising from the authority's critical infrastructure, or
    15  by the ownership of such critical infrastructure;
    16    (ii) whether the critical infrastructure involved any existing  priva-
    17  tization initiatives in the United States are comparable in scope, scale
    18  and  value  to  the  critical  infrastructure  controlled  by the public
    19  authority ("comparable projects");
    20    (iii) the progress to date of any comparable projects and whether  any
    21  such  projects  have  experienced  cost overruns or delays, or otherwise
    22  have failed, or succeeded, in meeting the deadlines and costs put  forth
    23  by the private entity.
    24    3.  (a)  The privatization report shall be due on or within 14 days of
    25  December 1, 2017. Within 90 days after the date  each  public  authority
    26  submits  the  report  provided for in subdivision one of this section to
    27  the committees, such committees may, severally or  collectively,  submit
    28  further issues for study and inclusion in such report, which said public
    29  authorities  shall  study  and include within such report within 60 days
    30  after receipt of any such submission, at which point said public author-
    31  ities shall submit the privatization report to the governor, the  tempo-
    32  rary  president of the senate, the speaker of the assembly, the minority
    33  leaders of the senate and assembly, the chairperson and ranking minority
    34  member of the senate corporations, authorities and  commissions  commit-
    35  tee,  and  the  chairperson  and ranking minority member of the assembly
    36  corporations, authorities and commissions committee.
    37    (b) The governor, the temporary president of the senate,  the  speaker
    38  of  the  assembly,  the minority leaders of the senate and assembly, the
    39  chairperson and ranking minority  member  of  the  senate  corporations,
    40  authorities  and  commissions committee, and the chairperson and ranking
    41  minority member of the assembly corporations,  authorities  and  commis-
    42  sions  committee  shall  have a period of 90 days within which to submit
    43  further issues for study and inclusion in such report, which said public
    44  authorities shall study and include within such report  within  60  days
    45  after receipt of any such submission.
    46    (c)  No  public authority shall take any action to privatize any crit-
    47  ical infrastructure owned by it, leased by it, or  otherwise  controlled
    48  by  it,  including  but  not  limited  to the actions enumerated in this
    49  section, until the privatization  report,  including  responses  to  its
    50  submission  by  the committees, legislators and the executives mentioned
    51  above shall, have been completed and submitted to said persons.
    52    § 3. This act shall take effect on the ninetieth day  after  it  shall
    53  have  become  a  law.  Any  rule  or regulation necessary for the timely
    54  implementation of this act on its effective date may be  promulgated  on
    55  or before such date.
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