A05704 Summary:

BILL NOA05704
 
SAME ASNo same as
 
SPONSORBrennan (MS)
 
COSPNSRColton, Cahill, Millman, Rivera P, Paulin, Clark, Galef, Glick, Cusick, Schimel, Titone
 
MLTSPNSRCymbrowitz, Dinowitz, Farrell, Gottfried, Heastie, Jacobs, Latimer, Lupardo, Maisel, McEneny, Robinson
 
Add SS1-a - 1-g, amd S1, Chap 154 of 1921
 
Establishes a substantive reform policy regarding the New York and New Jersey port authority; creates several new positions, including a port authority inspector general, a port authority independent budget officer, and an independent central procurement officer; relates to how the port authority may dispose of its property.
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A05704 Actions:

BILL NOA05704
 
02/25/2011referred to corporations, authorities and commissions
01/04/2012referred to corporations, authorities and commissions
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A05704 Floor Votes:

There are no votes for this bill in this legislative session.
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A05704 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          5704
 
                               2011-2012 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 25, 2011
                                       ___________
 
        Introduced  by  M.  of  A.  BRENNAN, COLTON, CAHILL, MILLMAN, P. RIVERA,
          PAULIN, CLARK, GALEF, GLICK, CUSICK -- Multi-Sponsored by -- M. of  A.
          CYMBROWITZ,  DINOWITZ,  FARRELL,  GOTTFRIED, HEASTIE, JACOBS, LATIMER,
          LUPARDO, MAISEL, McENENY, PHEFFER, ROBINSON -- read once and  referred
          to the Committee on Corporations, Authorities and Commissions
 

        AN ACT to amend chapter 154 of the laws of 1921 constituting the Port of
          New York Authority, in relation to reform of such authority
 
          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  "Port
     2  Authority of New York and New Jersey Reform Act".
     3    § 2. Chapter 154 of the laws of 1921 constituting the Port of New York
     4  Authority is amended by adding a new section 1-a to read as follows:
     5    § 1-a. 1. The legislature finds and declares that:
     6    a.  Because  the  port authority of New York and New Jersey ("the port
     7  authority") performs many  critical  transportation  and  infrastructure
     8  functions, there is a need for legislative reform to ensure transparency

     9  and accountability at the port authority;
    10    b.  While  this  state  has  recently implemented a significant set of
    11  reforms for other public authorities, these reforms do not extend to the
    12  port authority because it is an interstate authority; and
    13    c. It is in the best interest of the public that  the  states  of  New
    14  York  and  New Jersey enact substantively identical legislation in order
    15  to reform the practices of the port authority to ensure the proper func-
    16  tioning of the port authority as an open, transparent,  and  accountable
    17  interstate authority.
    18    2. a. The board of commissioners shall:
    19    (1)  Execute  direct  oversight of the authority's chief executive and

    20  other senior management in the effective and ethical management  of  the
    21  authority;
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09602-01-1

        A. 5704                             2
 
     1    (2)  Understand, review, and monitor the implementation of fundamental
     2  financial and management  controls  and  operational  decisions  of  the
     3  authority;
     4    (3)  Establish policies regarding the payment of salary, compensation,
     5  and reimbursements to, and establish rules for the time  and  attendance
     6  of, the chief executive and senior management;

     7    (4)  Adopt  a code of ethics applicable to each officer, director, and
     8  employee that, at a  minimum,  includes  rules  governing  conflicts  of
     9  interest;
    10    (5)  Establish written policies for: protecting employees from retali-
    11  ation for disclosing information concerning acts of wrongdoing,  miscon-
    12  duct,  malfeasance,  or  other  inappropriate behavior by an employee or
    13  board member of the authority; investments; travel; the  acquisition  of
    14  real property and the disposition of real and personal property; and the
    15  procurement of goods and services;
    16    (6)  Adopt a defense and indemnification policy and disclose such plan
    17  to any and all prospective board members; and

    18    (7) At the time that the member  takes  and  subscribes  the  oath  of
    19  office, or within sixty days after the effective date of this act if the
    20  member  has  already taken and subscribed the oath of office, execute an
    21  acknowledgment, issued by the independent budget office after  consulta-
    22  tion  with  the  office  of  the  attorneys  general of New York and New
    23  Jersey, in which the board member acknowledges that  the  member  under-
    24  stands  his  or  independence and fiduciary duties, including his or her
    25  duty of loyalty and care to  the  organization  and  commitment  to  the
    26  authority's mission.
    27    b. The board of commissioners shall establish an audit committee to be
    28  comprised  of  not less than three board members, who shall constitute a

    29  majority on the committee, and who shall possess the necessary skills to
    30  understand the duties and functions of the audit committee. The  commit-
    31  tee  shall  recommend  to the board the hiring of an independent firm of
    32  certified public accountants for the authority,  establish  the  compen-
    33  sation  to  be paid to the accounting firm, and provide direct oversight
    34  of the annual independent financial audit performed  by  the  accounting
    35  firm  hired  for  such purposes. Members of the audit committee shall be
    36  familiar with corporate financial and accounting practices and shall  be
    37  or become financially literate.
    38    c.  The  board of commissioners shall establish a governance committee

    39  to be comprised of not less than three board members, who shall  consti-
    40  tute  a  majority  on the committee, and who shall possess the necessary
    41  skills to understand the duties and functions of the governance  commit-
    42  tee.  It  shall  be  the responsibility of the members of the governance
    43  committee to keep the board informed of current  best  governance  prac-
    44  tice;  to  review corporate governance trends; to update the authority's
    45  corporate governance principles; to advise appointing authorities on the
    46  skills and experience required of potential board  members;  to  examine
    47  ethical  and  conflict of interest issues; to perform board self-evalua-
    48  tions; to investigate term limits, reappointments and board responsibil-

    49  ities; to develop by-laws which include rules and procedures for conduct
    50  of board business; and to make recommendations for new commissioners.
    51    d. The board of commissioners shall establish a finance  committee  to
    52  be  comprised of not less than three board members, who shall constitute
    53  a majority on the committee, and who shall possess the necessary  skills
    54  to understand the duties and functions of the committee. It shall be the
    55  responsibility  of  the  members of the finance committee to oversee and
    56  approve the debt that the authority or subsidiary commissions issue.

        A. 5704                             3
 
     1    3. The authority shall submit to the governors of  New  York  and  New

     2  Jersey,  the  temporary  president  of the senate and the speaker of the
     3  assembly of the New York state legislature, the president  and  minority
     4  leader  of the senate and the speaker and minority leader of the general
     5  assembly  of the New Jersey legislature, the New York state comptroller,
     6  and the state treasurer of New Jersey within ninety days after  the  end
     7  of  its  fiscal  year, a complete and detailed report or reports setting
     8  forth:
     9    a. Its operations and accomplishments;
    10    b. Its financial reports, including (1) audited financials in  accord-
    11  ance  with  generally  accepted  accounting  principles  (GAAP)  and the
    12  accounting standards issued by  the  Governmental  Accounting  Standards

    13  Board  (GASB),  (2) grant and subsidy programs, (3) operating and finan-
    14  cial risks, (4) current ratings and notice of changes, and (5) long-term
    15  liabilities, including leases and employee benefit plans;
    16    c. Its mission statement;
    17    d. A schedule of its bonds and notes outstanding at  the  end  of  its
    18  fiscal  year,  together  with  a  statement  of the amounts redeemed and
    19  incurred during such fiscal year as part of a schedule of debt  issuance
    20  that  includes  the  date  of  issuance, term, amount, interest rate and
    21  means of repayment. Additionally, the debt schedule shall  also  include
    22  all  refinancings,  calls,  refundings,  defeasements  and interest rate
    23  exchange or other such agreements, and for any debt  issued  during  the

    24  reporting year, the schedule shall also include a detailed list of costs
    25  of issuance for such debt;
    26    e.  Biographical  information  and  title  of commissioners and senior
    27  management, including compensation and benefits paid to commissioners in
    28  any amount and to  senior  staff  in  excess  of  one  hundred  thousand
    29  dollars;
    30    f. The projects undertaken by the authority during the past year;
    31    g.  A  listing  and  description of all real property of the authority
    32  having an estimated fair market value equal to ten percent  or  more  of
    33  the  authority's  total  assets  or  two hundred fifty thousand dollars,
    34  whichever is less, or of a  significant  value,  as  determined  by  the

    35  authority  budget  office,  that  the  authority acquires or disposes of
    36  during such period. The report shall contain the price received or  paid
    37  by  the  authority  and the name of the purchaser or seller for all such
    38  property of a significant value, as determined by the  authority  budget
    39  office, sold or bought by the authority during such period;
    40    h. Its code of ethics;
    41    i.  An  assessment of the effectiveness of its internal control struc-
    42  ture and procedures;
    43    j. The statutory basis of the authority;
    44    k. A description of the authority and its board  structure,  including
    45  (1)  names of committees and committee members, (2) lists of board meet-
    46  ings and attendance, (3) descriptions  of  major  authority  units,  and

    47  subsidiaries, and (4) number of employees;
    48    l. Its charter and by-laws;
    49    m. A listing of material changes in operations and programs;
    50    n.  At  a  minimum a four-year financial plan, including (1) a current
    51  and projected capital  budget,  and  (2)  an  operating  budget  report,
    52  including  an actual versus estimated budget, with an analysis and meas-
    53  urement of financial and operating performance;
    54    o. Its board performance evaluations;
    55    p. A description of the total number of assets  or  services  or  both
    56  bought  or sold without competitive bidding, including (1) the nature of

        A. 5704                             4
 
     1  those assets and services, (2) the names of the buyers or  lessees,  and

     2  (3) where the contract price or fair market value exceeds a value deter-
     3  mined  by the authority budget office, an attestation of the fair market
     4  value by the chief executive officer and chief financial officer; and
     5    q.  A  description of any pending litigation in which the authority is
     6  involved as a party.
     7    The authority shall make accessible to the public, via its official or
     8  shared internet web  site,  documentation  pertaining  to  its  mission,
     9  current  activities,  most recent annual financial reports, current year
    10  budget and its most recent independent audit report unless such informa-
    11  tion is exempt pursuant to law.
    12    § 3. Subdivision 2 of article XV-A of section 1 of chapter 154 of  the

    13  laws  of  1921  constituting the Port of New York Authority, as added by
    14  chapter 275 of the laws of 1992, is amended to read as follows:
    15    2. As used in this act:
    16    a. "Board" means the board of commissioners of the Port  Authority  of
    17  New York and New Jersey.
    18    b.  "Committee"  or "committees" means the audit committee, the gover-
    19  nance committee, and the finance committee required to be established by
    20  the board of commissioners in accordance with paragraphs b, c, and d  of
    21  subdivision 2 of section one-a of this act.
    22    c. "Executive session" means that portion of a meeting not open to the
    23  general public.
    24    d.  "Meeting"  means  any  gathering, whether corporeal or by means of
    25  communication equipment, which is attended by, or open  to,  the  board,

    26  held  with  the  intent,  on  the  part of the board members present, to
    27  discuss or act as a unit  upon  the  specific  public  business  of  the
    28  authority. "Meeting" does not mean a gathering (1) attended by less than
    29  an  effective  majority  of the board, or (2) attended by or open to all
    30  the members of three or more similar public bodies at  a  convention  or
    31  similar gathering.
    32    [c.]  e.  "Public  business"  mean  matters  which  relate in any way,
    33  directly or indirectly, to the performance of the functions of the  port
    34  authority of New York and New Jersey or the conduct of its business.
    35    §  4. Subdivision 3 of article XV-A of section 1 of chapter 154 of the
    36  laws of 1921 constituting the Port of New York Authority,  as  added  by
    37  chapter 275 of the laws of 1992, is amended to read as follows:

    38    3.  [The  board shall adopt and promulgate appropriate rules and regu-
    39  lations concerning the right of the public to be present at meetings  of
    40  the  authority.  The  board may incorporate in its rules and regulations
    41  conditions under which it may exclude the public from  a  meeting  or  a
    42  portion thereof.
    43    Any  rules or regulations adopted hereunder shall become a part of the
    44  minutes of the port authority of New York and New Jersey  and  shall  be
    45  subject  to  the approval of the governor of New Jersey and the governor
    46  of New York.] Every meeting of the board, including meetings of  commit-
    47  tees,  shall  be  open  to  the general public, except that an executive

    48  session of such body may be called and business  transacted  thereat  in
    49  accordance with subdivision four of section one-b of this act. The board
    50  shall  make  or  cause  to be made all reasonable efforts to ensure that
    51  meetings are held in facilities that permit barrier-free physical access
    52  to the physically handicapped. If and when the board uses video  confer-
    53  encing or similar technology to conduct its meeting, it shall provide an
    54  opportunity for the public to attend, listen, and observe at any site at
    55  which a member participates.

        A. 5704                             5
 
     1    § 5. Chapter 154 of the laws of 1921 constituting the Port of New York
     2  Authority is amended by adding six new sections 1-b, 1-c, 1-d, 1-e, 1-f,

     3  and 1-g to read as follows:
     4    §  1-b.  1. As used in this section, "committee" or "committees" means
     5  the audit committee, the governance committee, and the finance committee
     6  required to be established by the board of commissioners  in  accordance
     7  with  paragraphs  b,  c, and d of subdivision 2 of section one-a of this
     8  act.
     9    2. At every meeting of the board and at every meeting of each  commit-
    10  tee, the public shall be allotted a period of time, not less than thirty
    11  minutes, to speak on any topic on the agenda. The public speaking period
    12  shall take place before any action by the board or the committee that is
    13  meeting.
    14    3.  The  authority  shall make available to the public meeting agendas

    15  and public documents provided to the board  of  commissioners  at  least
    16  five  business  days before every meeting of the board and every meeting
    17  of each committee. Public notice of the time  and  place  of  a  meeting
    18  shall  be  given to the news media, shall be conspicuously posted in one
    19  or more designated areas at least seventy-two hours before such  meeting
    20  and  shall be conspicuously posted via its official internet web site at
    21  least five business days before the meeting.
    22    The port authority shall make available to the public  such  documents
    23  in at least three ways:
    24    a.  the agenda and public documents pertaining to the board or commit-
    25  tee meetings shall be available for public inspection at  an  office  of

    26  the authority;
    27    b.  the agenda and public documents pertaining to the board or commit-
    28  tee meetings shall be mailed to members of the public on a public notice
    29  mailing list the authority shall keep and maintain; and
    30    c. the agenda and public documents pertaining to the board or  commit-
    31  tee meetings shall be posted on its official internet web site.
    32    4.  Upon  a  majority  vote  of its total membership, taken in an open
    33  meeting pursuant to a motion identifying the general area  or  areas  of
    34  the  subject  or subjects to be considered, the board or a committee may
    35  conduct an executive session for the  below  enumerated  purposes  only,
    36  provided,  however,  that  no  action  by  formal vote shall be taken to

    37  appropriate moneys at an executive session:
    38    a. Matters which will imperil the public safety if disclosed;
    39    b. Any matter which may disclose the identity  of  a  law  enforcement
    40  agent or informer;
    41    c.  Information  relating to current or future investigation or prose-
    42  cution of a criminal offense which would imperil effective law  enforce-
    43  ment if disclosed;
    44    d. Discussions regarding proposed, pending or current litigation;
    45    e. Collective bargaining negotiations;
    46    f.  The medical, financial, credit, or employment history of a partic-
    47  ular person or corporation,  or  matters  leading  to  the  appointment,
    48  employment,  promotion,  demotion, discipline, suspension, dismissal, or

    49  removal of a particular person or corporation;
    50    g. The preparation, grading, or administration of examinations; and
    51    h. The proposed acquisition, sale, or lease of real  property  or  the
    52  proposed  acquisition  of  securities, or sale or exchange of securities
    53  held by the authority,  but  only  when  publicity  would  substantially
    54  affect the value thereof.

        A. 5704                             6
 
     1    Attendance at an executive session shall be permitted to any member of
     2  the board or committee, as the case may be, and any other person author-
     3  ized by the board or committee.
     4    5.  Minutes shall be taken at all open meetings of the authority which

     5  shall consist of a record or summary of all motions,  proposals,  resol-
     6  utions  and  any  other matter formally voted upon and the vote thereon.
     7  Minutes shall be taken at executive sessions of any action that is taken
     8  by formal vote which shall consist of a record or summary of  the  final
     9  determination  of  such action, and the vote thereon; provided, however,
    10  that such summary need not include any matter which is not  required  to
    11  be  made  public  by either New York's freedom of information law or New
    12  Jersey's open public records act. Minutes of meetings shall be available
    13  to the public within two weeks from the date of such meeting.
    14    6. The states of New York and New Jersey consent to suits, actions, or

    15  proceedings as provided herein against  the  authority  and  to  appeals
    16  therefrom  and reviews thereof. Any aggrieved person in the state of New
    17  York shall have standing to  enforce  the  provisions  of  this  section
    18  against  the authority by the commencement of an action in supreme court
    19  for declaratory judgment and injunctive relief. In any such action,  the
    20  court shall have the power, in its discretion, upon good cause shown, to
    21  declare  any  action  or part thereof taken in violation of this section
    22  void in whole or in part. An unintentional failure to fully comply  with
    23  the  notice  provisions  required  by  this  section  shall not alone be
    24  grounds for invalidating any action taken at a meeting  covered  by  the
    25  provisions of this section.

    26    The  provisions  of  this section shall not affect the validity of the
    27  authorization, acquisition, execution, or disposition of a bond issue or
    28  notes. In any proceeding brought pursuant to  this  section,  costs  and
    29  reasonable attorney fees may be awarded by the court, in its discretion,
    30  to  the  successful party. The statute of limitations with respect to an
    31  action taken at executive session shall commence to run  from  the  date
    32  the  minutes  of  such executive session have been made available to the
    33  public.
    34    § 1-c. 1. As used in this section:
    35    a. "Administrator" means the officer or employee of the authority  who
    36  shall  be appointed by act of the board of commissioners to be responsi-

    37  ble for the disposition of property.
    38    b. "Authority" or "port authority" means the  port  authority  of  New
    39  York and New Jersey.
    40    c. "Dispose" or "disposal" means transfer of title or any other inter-
    41  est in personal or real property.
    42    d.  "Property"  means  personal property, real estate, or both, or any
    43  interest in such property and shall  include,  without  limitation,  any
    44  interest  in  real  estate  in  which the authority holds the fee simple
    45  interest, to the extent that such interest may be  conveyed  to  another
    46  person for any purpose.
    47    2.  The  authority shall not in any way dispose of any property of the
    48  authority unless such property has been listed on a report  prepared  in

    49  accordance  with  subdivision  four  of this section, provided, however,
    50  that personal property with a fair market value  of  less  than  fifteen
    51  thousand  dollars  may  be sold at auction without having been listed on
    52  such a report if such item of personal property is reported in the  next
    53  report made pursuant to subdivision four of this section.
    54    3. The authority shall:
    55    a. maintain adequate inventory controls and accountability systems for
    56  all property under its control;

        A. 5704                             7
 
     1    b. continuously survey such property to determine which property shall
     2  be disposed of;
     3    c. produce a written report of such property in accordance with subdi-

     4  vision four of this section;
     5    d. perform the care and handling of such property; and
     6    e. transfer or dispose of such property as promptly as possible.
     7    4.  The authority shall publish, not less frequently than quarterly, a
     8  report listing all property of the authority that the authority  intends
     9  to  dispose of. Such report shall consist of a list of all such property
    10  held by the authority at the end of the period covered  by  the  report,
    11  and  all  such property disposed of during such period. The report shall
    12  contain an estimate of fair market value for all such property  held  by
    13  the  authority  at  the  end of the period and the price received by the
    14  authority and the name of the purchaser for all such  property  sold  by

    15  the  authority  during  such  period. Low value personal property may be
    16  listed in suitable groups or lots.  Such  report  shall  contain  or  be
    17  accompanied  by a listing and description of any negotiated disposals of
    18  property having an estimated fair market  value  of  more  than  fifteen
    19  thousand  dollars,  in  the  case  of  real  property,  or five thousand
    20  dollars, in the case of any other property,  other  than  disposals  for
    21  which an explanatory statement has been transmitted under this section.
    22    The  authority shall deliver copies of such report to the governors of
    23  New York and New Jersey, the temporary president of the senate  and  the
    24  speaker of the assembly of the New York state legislature, the president

    25  and minority leader of the senate and the speaker and minority leader of
    26  the  general  assembly  of  the  New Jersey legislature, the independent
    27  budget officer, and whoever shall have requested copies of such reports.
    28    5. Except as otherwise provided in this section, the administrator  of
    29  the  authority shall have supervision and direction over the disposition
    30  of property of such authority. Such property shall  be  disposed  of  to
    31  such  extent, at such time, in such areas, at such terms and conditions,
    32  and in such manner, as may be prescribed in or pursuant to this section.
    33    6. The authority may dispose of property for not less  than  the  fair
    34  market  value  of  such  property  by  sale, exchange, lease, permit, or

    35  transfer, for cash, credit, or other property, with or without warranty,
    36  and upon such other terms and  conditions  as  the  administrator  deems
    37  proper,  and  it may execute such documents for the transfer of title or
    38  other interest in property and take such other action as it deems neces-
    39  sary or proper to dispose of such property under the provisions of  this
    40  section.  Provided, however, that no sale of real property, any interest
    41  in real property, or any other property  which  because  of  its  unique
    42  nature  is  not subject to normal market pricing shall be made unless an
    43  appraisal of the value of such property has been made  and  included  in
    44  the record of the transaction.

    45    7.  A deed, bill of sale, lease, or other instrument executed by or on
    46  behalf of the authority purporting to transfer title or any other inter-
    47  est in property of the authority under this section shall be  conclusive
    48  evidence  of  compliance  with the provisions of this section insofar as
    49  concerns title or other interest of any bona fide grantee or  transferee
    50  for value and without notice of lack of such compliance.
    51    8.  a.  All  disposals  or  contracts  for disposal of property of the
    52  authority made or authorized by the administrator shall  be  made  after
    53  publicly  advertising for bids except as provided in paragraph c of this
    54  subdivision.
    55    b. Whenever  public  advertising  for  bids  is  required  under  this

    56  subsection:  (1)  the  advertisement for bids shall be made at such time

        A. 5704                             8
 
     1  previous to the disposal or contract, through such methods, and on  such
     2  terms  and  conditions  as  shall  permit that full and free competition
     3  which is consistent with the value and nature of the property  involved;
     4  (2) all bids shall be publicly disclosed at the time and place stated in
     5  the  advertisement;  and  (3)  the  award  shall be made with reasonable
     6  promptness by notice to the responsible bidder whose bid, conforming  to
     7  the  invitation  for  bids,  will be most advantageous to the authority,
     8  price and other factors considered;  provided,  that  all  bids  may  be

     9  rejected when it is in the public interest to do so.
    10    c.  Disposals  and  contracts  for  disposal may be negotiated without
    11  regard to paragraphs a and b of this subdivision but subject to  obtain-
    12  ing such competition as is feasible under the circumstances, if:
    13    (1)  the personal property involved is of a nature and quantity which,
    14  if disposed of under paragraphs a and b    of  this  subdivision,  would
    15  adversely affect the state or local market for such goods, and the esti-
    16  mated fair market value of such property and other satisfactory terms of
    17  disposal can be obtained by negotiation;
    18    (2)  the estimated fair market value of the property involved does not
    19  exceed fifteen thousand dollars;

    20    (3) bid prices after advertising therefor are not  reasonable,  as  to
    21  either  all or some part of the property, or have not been independently
    22  arrived at in open competition;
    23    (4) with respect to real property only, the character or condition  of
    24  the property, the nature of the interest to be conveyed or other unusual
    25  circumstances  make it impractical to advertise publicly for competitive
    26  bids, and the fair market value of the property and  other  satisfactory
    27  terms of disposal can be obtained by negotiation; or
    28    (5)  the  disposal will be to the state of New York or New Jersey, any
    29  municipality or political subdivisions thereof, or  tax-supported  agen-
    30  cies  therein,  and  the estimated fair market value of the property and

    31  other satisfactory terms of disposal are obtained by negotiation.
    32    d. (1) An explanatory statement shall be prepared of the circumstances
    33  of each disposal by negotiation of: (i) any personal property which  has
    34  an  estimated  fair  market value in excess of fifteen thousand dollars;
    35  (ii) any real property that has an estimated fair market value in excess
    36  of one hundred thousand dollars, except that any real property  disposed
    37  of  by  lease or exchange shall only be subject to clauses (iii) through
    38  (v) of this subparagraph; (iii) any real property disposed of  by  lease
    39  for  a  term of five years or less, if the estimated fair annual rent is
    40  in excess of one hundred thousand dollars for any of  such  years;  (iv)

    41  any  real  property  disposed  of  by lease for a term of more than five
    42  years, if the total estimated rent over the term  of  the  lease  is  in
    43  excess of one hundred thousand dollars; or (v) any real property or real
    44  and  related  personal  property  disposed of by exchange, regardless of
    45  value, or any property any part of the consideration for which  is  real
    46  property.
    47    (2)  Each  such statement shall be transmitted to the persons entitled
    48  to receive copies of the report required under  this  section  not  less
    49  than  ninety  days in advance of such disposal, and a copy thereof shall
    50  be preserved in the files of the authority making such disposal.
    51    § 1-d. 1. As used in this section:

    52    a. "Authority" or "port authority" means the  port  authority  of  New
    53  York and New Jersey.
    54    b.  "Inspector  general"  means  the  port authority inspector general
    55  created by subdivision two of this section.

        A. 5704                             9
 
     1    2. a. There shall be a port authority inspector general who shall have
     2  and exercise the  powers,  duties  and  prerogatives  provided  by  this
     3  section  and any other provisions of law. The inspector general shall be
     4  jointly appointed by the governors of New York and  New  Jersey  from  a
     5  list of no fewer than six individuals submitted by each state's attorney
     6  general. If the inspector general is a legal resident of one state, then

     7  the independent budget officer appointed under section one-e of this act
     8  must be a legal resident of the other state.
     9    b.  The  term  of  the  first  inspector  general appointed under this
    10  section shall begin on the date of appointment, and shall end  on  March
    11  thirty-first  of  the  fifth calendar year beginning after the effective
    12  date of  this  section.  All  subsequent  inspectors  general  shall  be
    13  appointed  for a five year term. In the event that a vacancy shall occur
    14  for any reason during any five year term, the vacancy  shall  be  filled
    15  for  the  remainder  of the uncompleted term, provided, however, that if
    16  the uncompleted term is less than two years, the governors  may  jointly

    17  appoint the new inspector general to a full five year term.
    18    c.  The  office  of the inspector general shall be in, but independent
    19  of, any supervision or control by  the  authority  or  any  officers  or
    20  employees  thereof.  The  inspector  general's salary shall be an amount
    21  equal to 75 percent of the salary of the authority's executive director.
    22  The annual budget for the office  shall  be  determined  in  the  manner
    23  provided  by  this  act and fully funded by the authority. The authority
    24  shall arrange for suitable office space, equipment, and resources.
    25    d. The inspector general may be removed from office for cause  by  the
    26  governors acting jointly, after a public hearing.

    27    3.  a.  The  inspector  general  shall be authorized to appoint and at
    28  pleasure remove deputy inspectors general, assistant  deputy  inspectors
    29  general,  and  such  other  staff, including investigators, accountants,
    30  administrative assistants, and such other support staff and  consultants
    31  as  he  shall deem necessary and appropriate to accomplish the responsi-
    32  bilities and duties contained in this act or elsewhere in law,  and  fix
    33  and  determine the qualifications, duties and compensation of such addi-
    34  tional officers and staff, subject to a merit system to  be  established
    35  by  the  inspector  general. The inspector general may also from time to
    36  time contract for such expert professional services  as  may  be  deemed
    37  necessary and convenient.

    38    b.  Not  more  than ninety days from the beginning of his or her term,
    39  the first inspector general shall propose and deliver to  the  governors
    40  of  New  York  and  New  Jersey,  the New York attorney general, the New
    41  Jersey attorney general, the temporary president of the senate  and  the
    42  speaker of the assembly of the New York state legislature, and the pres-
    43  ident  and  minority  leader  of the senate and the speaker and minority
    44  leader of the general assembly of the New Jersey legislature a  plan  of
    45  organization of the office of the inspector general so as to provide the
    46  services  normally  provided  by an inspector general in an adequate and
    47  cost effective manner. Thereafter, the inspector general may  from  time

    48  to  time propose an amended or modified plan of organization in order to
    49  fulfill its statutory  obligation.  The  plan  of  organization  of  the
    50  inspector  general  shall  be  effective  until  modified,  amended,  or
    51  replaced by law.
    52    c. All costs and expenses of the office of the inspector general shall
    53  be paid for and borne by the authority.
    54    d. The inspector general shall estimate and deliver to  the  attorneys
    55  general,  the  comptroller of the state of New York, the state treasurer
    56  of New Jersey, the temporary president of the senate and the speaker  of

        A. 5704                            10
 
     1  the assembly of the New York state legislature, the president and minor-

     2  ity  leader  of  the  senate  and the speaker and minority leader of the
     3  general assembly of the New Jersey legislature, and the board of commis-
     4  sioners  prior  to  December  first  of  each  year  the total costs and
     5  expenses for the  subsequent  authority's  fiscal  year,  including  the
     6  compensation and expenses of the inspector general and his or her staff,
     7  their  agents,  and  employees,  and  including  the  cost of retirement
     8  contributions, social security, health and dental insurance,  survivor's
     9  benefits, workers' compensation, unemployment insurance, and other bene-
    10  fits  required to be paid for the personnel of the office of the inspec-
    11  tor general, and including all other items of maintenance and  operation

    12  expenses,  and  all  other  direct and indirect costs. Unless amended by
    13  law, the estimate and  allocation  shall  become  final.  The  inspector
    14  general  shall render bills in accordance with the original estimate and
    15  allocation to the authority, not later than February first prior to  the
    16  beginning  of  the applicable fiscal year; an amended bill in accordance
    17  with any amending chapter of law shall be sent out as soon as  practica-
    18  ble after the enactment of such law.
    19    4.  a.  In addition to any other duties and responsibilities as may be
    20  provided by law, the inspector general shall have the duty and responsi-
    21  bility to:
    22    (1) Initiate, conduct, and supervise such inquiries and investigations

    23  relating to any alleged or  possible  wrong,  whether  civil,  criminal,
    24  administrative,  or  ethical  in  nature,  in the authority as he or she
    25  considers appropriate based on information received from any officer  or
    26  employee  of  the  authority or from any other informant, or upon his or
    27  her own initiative, provided, however, that the inspector general  shall
    28  promptly  turn over to the proper prosecutorial authorities any substan-
    29  tial evidence that a crime has been committed;
    30    (2) Investigate evidence or allegations of corruption,  graft,  fraud,
    31  conflicts  of  interest,  unlawful discrimination, or other abuse in the
    32  authority;
    33    (3) Inform the governors of New York and New Jersey,  the  comptroller

    34  of  New York, the state treasurer of New Jersey, the temporary president
    35  of the senate and the speaker of the assembly  of  the  New  York  state
    36  legislature,  the  president  and  minority leader of the senate and the
    37  speaker and minority leader of the general assembly of  the  New  Jersey
    38  legislature, the board and senior staff of the authority, and the public
    39  concerning  allegations,  evidence,  and  the results of investigations;
    40  provided, however, that such reporting shall be done at such  times  and
    41  in such detail as the circumstances require;
    42    (4)  Recommend  appropriate action with respect to each investigation,
    43  such as disciplinary action, civil  lawsuit,  criminal  prosecution,  or

    44  referral  to  an appropriate federal, state, or local agency for further
    45  investigation or action and to  cooperate  in  any  continuing  investi-
    46  gation;
    47    (5)  Prepare  and  release  to the public written reports of each such
    48  investigation and periodic summary reports  of  investigative  activity;
    49  provided, however, that such reports and summary reports may be delayed,
    50  redacted, or written using fictitious names so as to preserve the priva-
    51  cy rights of affected individuals;
    52    (6)  Review  and  examine the policies and procedures of the authority
    53  with regard to the prevention and detection of corruption, graft, fraud,
    54  conflicts of interest, unlawful discrimination, or other abuse;


        A. 5704                            11
 
     1    (7) Recommend remedial action  to  prevent  or  eliminate  corruption,
     2  graft,  fraud,  conflicts of interest, unlawful discrimination, or other
     3  abuse; and
     4    (8)  Establish or monitor training programs for officers and employees
     5  of the authority regarding the prevention or elimination of  corruption,
     6  graft,  fraud,  conflicts of interest, unlawful discrimination, or other
     7  abuse.
     8    b. In addition to the authority otherwise provided by law, the inspec-
     9  tor general, each deputy inspector general, and  each  assistant  deputy
    10  inspector  general,  in  carrying out the provisions of this article, is
    11  authorized to:

    12    (1) Have access to all records, reports, audits,  reviews,  documents,
    13  papers,  recommendations,  or other material on any matter involving the
    14  operations or administration of the authority subject  to  investigation
    15  by the inspector general;
    16    (2)  Request  such  information  or assistance as may be necessary for
    17  carrying out the duties and responsibilities of  the  inspector  general
    18  from any federal, state, or local government or any agency or unit ther-
    19  eof;
    20    (3)  Require by subpoena the production of all information, documents,
    21  reports, answers, records, accounts, papers, and other data and documen-
    22  tary evidence necessary or useful in the performance of  the  duties  or

    23  responsibilities  of  the  inspector  general,  which  subpoena shall be
    24  enforceable within the state of New York by order of the  supreme  court
    25  of appropriate jurisdiction and venue;
    26    (4)  Administer  to  or  take from any person an oath, affirmation, or
    27  affidavit, whenever necessary  in  the  performance  of  the  duties  or
    28  responsibilities  of  the inspector general, which oath, affirmation, or
    29  affidavit when administered or taken by or before  an  employee  of  the
    30  office  of  inspector  general designated by the inspector general shall
    31  have the same force and effect as if administered or taken by or  before
    32  a notary public of the state of New Jersey or the state of New York;

    33    (5)  Have  direct  and  prompt access to the chairman of the authority
    34  when necessary or useful in the performance of the duties  or  responsi-
    35  bilities of the inspector general; and
    36    (6)  Enter  into contracts and other arrangements for audits, studies,
    37  analyses, and other  services  with  public  agencies  or  with  private
    38  persons  as  may be deemed necessary or useful in the performance of the
    39  duties or responsibilities of the inspector general.
    40    c. (1) No information, documents, reports, answers, records, accounts,
    41  papers, and other data and documentary evidence shall be denied  to  the
    42  inspector general or any person acting on behalf of the inspector gener-
    43  al: (i) because of any privilege or alleged privilege, including but not

    44  limited to the attorney-client privilege, executive privilege, or public
    45  interest privilege, which belongs to or could be waived by the authority
    46  in  possession  of  the information; or (ii) because of any defense that
    47  the authority may have against any request for any such evidence.
    48    (2) If the authority believes that any such evidence is privileged  or
    49  otherwise protected against disclosure, the authority shall nevertheless
    50  make or permit any such disclosure, and the authority may at the time of
    51  such  disclosure  make  a claim of confidentiality for any such evidence
    52  and state with particularity the nature of such claim.
    53    (3) Notwithstanding any other provisions of statute or common law, the

    54  disclosure of any evidence to the inspector general  under  a  claim  of
    55  confidentiality  shall  not be construed to be a waiver of any privilege
    56  or any other protection  against  disclosure.  Such  evidence  shall  be

        A. 5704                            12
 
     1  protected  against  subpoena  or  other form of forced disclosure to the
     2  same extent that it would have been if it had never  been  disclosed  to
     3  the inspector general.
     4    (4)  The inspector general may, in his or her discretion, determine to
     5  disclose any evidence received under the claim of confidentiality upon a
     6  finding that the matter under investigation is highly important  to  the
     7  authority  and  that  the public has a right to receive knowledge of the

     8  result of the investigation, and that the evidence (i) is highly materi-
     9  al and relevant to the matter under investigation; (ii) is  critical  or
    10  necessary  to  an understanding of the outcome of the investigation; and
    11  (iii) is not readily obtainable from any alternative source.
    12    (5) Notwithstanding subparagraph (4) of this paragraph, the  inspector
    13  general  may  not disclose any evidence received under a claim of confi-
    14  dentiality without first giving thirty days advance  written  notice  to
    15  the  authority and any other person who may be entitled to object to the
    16  disclosure of the evidence. In the event of  any  civil  action  in  the
    17  courts  of  New Jersey or New York to prevent the disclosure of any such

    18  evidence, the court shall allow the disclosure unless it shall find that
    19  the inspector general has abused his or her discretion.  The  court  may
    20  award  reasonable  attorneys' fees and disbursements reasonably incurred
    21  to a litigant that substantially prevails against the release of  infor-
    22  mation  by  the  inspector  general  if  the  inspector general lacked a
    23  reasonable basis pursuant to this section for the challenged release  of
    24  information.
    25    § 1-e. 1. As used in this section:
    26    a.  "Authority"  or  "port  authority" means the port authority of New
    27  York and New Jersey.
    28    b. "Comptroller" means the New York state comptroller.
    29    c. "Independent budget officer" means the port  authority  independent

    30  budget officer created by this section.
    31    d. "Treasurer" means the state treasurer of New Jersey.
    32    2.  a.  There shall be a port authority independent budget officer who
    33  shall have and exercise the powers, duties and prerogatives provided  by
    34  this  section  and  any  other provisions of law. The independent budget
    35  officer shall be appointed jointly by the governors of New York and  New
    36  Jersey  from  a  list  of no fewer than six individuals submitted by the
    37  comptroller and the treasurer. If the independent budget  officer  is  a
    38  legal  resident of one state, then the inspector general appointed under
    39  section one-d of this act must be a legal resident of the other state.
    40    b. The term of the first independent budget  officer  appointed  under

    41  this  section  shall  begin on the date of appointment, and shall end on
    42  the thirty-first of March of the fifth calendar year beginning after the
    43  effective date of this act. All subsequent independent  budget  officers
    44  shall  be  appointed  for  a five year term. In the event that a vacancy
    45  shall occur for any reason during any five year term, the vacancy  shall
    46  be  filled for the remainder of the uncompleted term, provided, however,
    47  that if the uncompleted term is less than two years,  the  governors  of
    48  each state shall jointly appoint the new independent budget officer to a
    49  full five year term.
    50    c. The office of the independent budget officer shall be in, but inde-
    51  pendent  of, any supervision or control by, the authority or any officer

    52  or employee thereof. The independent budget officer's salary shall be an
    53  amount equal to 75 percent of the salary of  the  authority's  executive
    54  director. The annual budget for the office shall be determined and fund-
    55  ed  in  the  manner  provided  by  this section, and fully funded by the

        A. 5704                            13
 
     1  authority. The authority shall arrange for suitable office space, equip-
     2  ment and resources.
     3    d. The independent budget officer may be removed from office for cause
     4  by the governors acting jointly, after a public hearing.
     5    3.  a.  The  independent budget officer shall be authorized to appoint
     6  and at pleasure remove deputy budget officers, assistant  deputy  budget

     7  officers,  and  such  other staff, including accountants, administrative
     8  assistants, and such other support staff and consultants as  he  or  she
     9  shall  deem necessary and appropriate to accomplish the responsibilities
    10  and duties contained in this act or elsewhere in law, and fix and deter-
    11  mine the qualifications, duties, and  compensation  of  such  additional
    12  officers  and  staff, subject to a merit system to be established by the
    13  independent budget officer. The independent budget officer may also from
    14  time to time contract for such expert professional services  as  may  be
    15  deemed necessary and convenient.
    16    b.  Not  more  than ninety days from the beginning of his or her term,

    17  the first independent budget officer shall propose to  the  comptroller,
    18  the treasurer, the temporary president of the senate  and the speaker of
    19  the assembly of the New York state legislature, the president and minor-
    20  ity  leader  of  the  senate  and the speaker and minority leader of the
    21  general assembly of the New Jersey legislature,  the  governors  of  New
    22  York  and New Jersey, and the board of commissioners a plan of organiza-
    23  tion of the office of the independent budget officer such that the inde-
    24  pendent budget officer will be able to  provide  the  services  required
    25  pursuant  to  this  act  in the most cost-effective way. Thereafter, any
    26  independent budget officer may from time to time submit  an  amended  or

    27  modified  plan  of  organization  to  fulfill his or her statutory obli-
    28  gation. The plan of organization of the independent budget officer shall
    29  be effective until modified, amended, or replaced  by  the  comptroller,
    30  the treasurer, or by law.
    31    c.  The  independent  budget officer shall estimate and deliver to the
    32  board of commissioners, the comptroller, the treasurer, the state  audi-
    33  tor of New Jersey, the temporary president of the senate and the speaker
    34  of  the  assembly  of  the New York state legislature, the president and
    35  minority leader of the senate and the speaker and minority leader of the
    36  general assembly of the New Jersey legislature, and the governors of New
    37  York and New Jersey prior to November first of each year the total costs

    38  and expenses for the subsequent state fiscal year, including the compen-
    39  sation and expenses of the independent budget officer  and  his  or  her
    40  staff, their agents, and employees, and including the cost of retirement
    41  contributions,  social security, health and dental insurance, survivor's
    42  benefits, workers' compensation, unemployment insurance and other fringe
    43  benefits required to be paid for the personnel  of  the  office  of  the
    44  independent budget officer, and including all other items of maintenance
    45  and  operation  expenses, and all other direct and indirect costs. Based
    46  on such estimate, the independent budget  officer  shall  determine  the
    47  amount  to be paid by the authority. Unless amended by law, the estimate

    48  and allocation shall become final. The independent budget officer  shall
    49  render  bills in accordance with the original estimate and allocation to
    50  the authority, not later than February first prior to the  beginning  of
    51  the  applicable  fiscal  year;  an  amended  bill in accordance with any
    52  amending law shall be sent out as soon as practicable after  the  enact-
    53  ment of such law.
    54    4.  a.  The  independent  budget officer shall be authorized to secure
    55  such information, data, estimates, and statistics from the authority  as
    56  he  or  she  determines to be necessary for the performance of the func-

        A. 5704                            14
 
     1  tions and duties of the office, and the  authority  shall  provide  such

     2  information,  to  the  extent that it is available, in a timely fashion.
     3  The independent budget officer shall not be entitled to  obtain  records
     4  which  are  protected  by  the  privileges  for attorney-client communi-
     5  cations, attorney work product, and material prepared for litigation.
     6    b. It shall be the duty of the independent budget officer  to  provide
     7  to  the  board of the authority, any elected public official of state or
     8  local government interested in  the  authority,  and  any  action  group
     9  organized  for  the  purpose of affecting the authority's governance and
    10  operations, any information which will assist such bodies and  officials
    11  in  the  discharge  of  their  responsibilities  or  functions which are

    12  related to the budgetary process, including:
    13    (1) Information with respect to the budget expenditures;
    14    (2) Information with respect to estimated revenues  and  receipts  and
    15  changing revenue conditions; and
    16    (3)  To  the extent practicable, such other information or analyses as
    17  may be requested by such bodies or officials.
    18    c. The independent budget  officer  shall  develop  and  issue,  after
    19  consultation  with  the  office of the New York attorney general and the
    20  office of the New Jersey attorney general, a written acknowledgment that
    21  a board member must execute at  the  time  that  the  member  takes  and
    22  subscribes  the oath of office, or within sixty days after the effective

    23  date of this section if the member has already taken and subscribed  the
    24  oath  of  office,  in which the board member acknowledges that he or she
    25  understands the independent nature of his or her  role  as  commissioner
    26  and  his  or her fiduciary duty to the authority. The independent budget
    27  officer shall also develop means of enforcing those fiduciary duties.
    28    d. The independent budget officer shall from time to time publish such
    29  reports as may be appropriate to enhance official and public understand-
    30  ing of the budgetary process and of the budget  documents  published  by
    31  the  authority.  The  independent budget officer shall from time to time
    32  publish such reports as may be necessary or appropriate to provide  such

    33  information,  data,  and  analysis  as  will enhance official and public
    34  understanding of matters relating to the authority's revenues,  expendi-
    35  tures, financial management practices, and related matters.
    36    e.  The  independent  budget officer shall make all information, data,
    37  estimates, and statistics obtained in the course of his or  her  duties,
    38  and all studies and reports prepared by the office, available for public
    39  inspection  including  posting  such  information  on  the  internet and
    40  providing copying during normal business hours and shall, to the  extent
    41  practicable,  furnish  a  copy  of any such information or report to any
    42  person upon request at a reasonable cost.

    43    5. a. As used in this section,  "operating  plan"  means  a  financial
    44  budget showing projected revenues and expenses for the next fiscal year,
    45  together  with  the operating assumptions underlying such budget and any
    46  changes in operations, fees, and charges, and other aspects of the oper-
    47  ations of the authority which support such budget.
    48    b. Not less than ninety days before the beginning of the  fiscal  year
    49  of  the  authority beginning on or after the January first following the
    50  effective date of this section and each fiscal year thereafter, and  not
    51  less  than  sixty days before a budget for such fiscal year is submitted
    52  to the board for approval, the authority shall submit its proposed oper-

    53  ating plan for the following fiscal year to the independent budget offi-
    54  cer and such elected public officials and actions groups as  are  inter-
    55  ested  in  the authority's affairs. The authority shall at the same time
    56  publish such operating plan to the public. Such operating plan shall  be

        A. 5704                            15
 
     1  at  such  level  of  detail as to allow a meaningful review of the oper-
     2  ations of the authority, and shall show comparisons  between  the  plan,
     3  and  both  the latest available year-to-date and expected annual results
     4  for  the  year in which the plan is submitted and the actual results for
     5  the year immediately prior thereto.
     6    Any elected public official or the independent budget officer to  whom

     7  the  authority  is  required  to  submit  its  operating plan under this
     8  section may request a more detailed version of the  operating  plan.  In
     9  such  case,  the  authority  shall  supply copies of such version of the
    10  operating plan to each person entitled to  receive  the  operating  plan
    11  under this section.
    12    c. The operating plan shall be accompanied by a report summarizing the
    13  extent  to  which  planned  goals developed for the current and previous
    14  years were achieved, the causes of any failure to  achieve  such  goals,
    15  and  corrective  measures the authority intends to take to avoid non-ac-
    16  hievement of such goals in the upcoming year.
    17    d. The persons entitled to receive copies of the operating plan pursu-

    18  ant to this section may solicit comments from any interested persons  or
    19  any  group  representing  interested  persons through appropriate notice
    20  with or without public hearings and may  submit  to  the  board  of  the
    21  authority  and  publish  a  report commenting on the plans, recommending
    22  general or specific modifications to the operating plan.
    23    e. The board at the time of adopting a  budget  for  each  year  shall
    24  issue  a  report responding to any report issued pursuant to paragraph d
    25  of this subdivision and explaining why any recommendations were or  were
    26  not  implemented.  Such report shall be given to each person entitled to
    27  receive the operating plan pursuant to this section.

    28    f. The authority shall provide quarterly financial  reports  no  later
    29  than  the  fifteenth  of  the following month to the persons entitled to
    30  receive the operating plan under this section. Such reports  shall  show
    31  comparisons with the prior year and with the operating plan.
    32    § 1-f. 1. The authority shall not:
    33    a. Issue any bond, note, or other debt obligation, or
    34    b. Include in any covenant, bond document, or any other instrument any
    35  provision  having the effect of extending the term of any bond, note, or
    36  other debt obligation or permitting the refunding or refinancing of  any
    37  debt  obligation for a term longer than the term of such debt obligation
    38  in effect on the effective date of this section, unless  such  issuance,

    39  incurrence,  extension,  refunding,  or refinancing is permitted by such
    40  statutory limit. Notwithstanding any other provision of  law,  bonds  or
    41  notes  may  not  be sold in a private sale by the authority, unless such
    42  sale and the terms and conditions thereof have been approved in  writing
    43  by  the comptroller of the state of New  York and the state treasurer of
    44  New Jersey.
    45    § 1-g. 1. As used in this section:
    46    a. "Authority" or "port authority" means the  port  authority  of  New
    47  York and New Jersey.
    48    b.  "Central  procurement  officer" or "procurement officer" means the
    49  independent port authority  central  procurement  officer  appointed  in
    50  accordance with this section.

    51    c.  "Contractor" means any bidder, offeror, or proposer for a procure-
    52  ment contract and shall include any  subcontractor  or  other  represen-
    53  tative or person with a financial interest on behalf of such person.
    54    d.  "Improper  lobbying  influence" means any attempt to influence any
    55  determination of an employee or  representative  of  the  authority,  in
    56  order  to  achieve  preferential,  unequal or favored consideration of a

        A. 5704                            16
 
     1  proposal submitted for a procurement contract award, based on  consider-
     2  ations other than the merits of the proposal.
     3    e.  "Lobbying" means any attempt to influence any action by, or commu-

     4  nication directly or soliciting others to communicate with, any officer,
     5  employee, agent, consultant, or any other person  having  any  power  or
     6  authority  related  to  the procurement of goods or services in support,
     7  construction, purchase, sale or lease of real property; the  acquisition
     8  or  granting  of any other interest in real property; or authority func-
     9  tions or operations.
    10    f. "Pendency of a procurement contract  award"  means  the  processing
    11  period  for letting a procurement contract, commencing with the earliest
    12  published written notice, advertisement or solicitation  of  expressions
    13  of interest or proposals, and ending with the authority's final contract
    14  approval.

    15    g. "Procurement contract" means a written contract let by the authori-
    16  ty  for  the  acquisition of goods or services in support, construction,
    17  purchase, sale or lease of real property; the acquisition or granting of
    18  other interest in real property or of authority functions or operations.
    19    h. "Proposal" means any proposal, quotation, offer or response to  the
    20  authority's competitive solicitation of submissions relating to an award
    21  of  a  procurement  contract  or to any unsolicited proposal, quotation,
    22  offer or submission of any potential procurement contract.
    23    2. For purposes of this section, "lobbying" shall not include:
    24    a. Nonprofit making agencies for the blind, and  qualified  charitable

    25  nonprofit agencies for other severely disabled persons;
    26    b. Participants, including those appearing on behalf of a client, in a
    27  publicly noticed conference pursuant to a request for bids or proposals;
    28    c.  Persons  who have been tentatively awarded a contract or represent
    29  persons who have been tentatively awarded a contract and are engaged  in
    30  communications  with the authority solely for the purpose of negotiating
    31  the terms of the contract after being notified of such award;
    32    d. Persons or the representatives of persons who:
    33    (1) are a party to a protest, appeal, or other  proceeding  (including
    34  the  apparent  successful  bidder or contractor and his or her represen-
    35  tative); or

    36    (2) request a review of a procurement decision;
    37    e. The submission of a bid or proposal (whether submitted orally or in
    38  writing) in response to a request for bids or proposals as long as  that
    39  person is an official contact on the proposal;
    40    f.  Prospective  bidders or proposers or their representatives submit-
    41  ting questions to a designated agency or municipal contact set forth  in
    42  a request for bids or proposals; and
    43    g.  Officers  and  employees  of statewide elected officials including
    44  individuals who act as paid or unpaid advisors or consultants to  state-
    45  wide  elected  officials,  except  members  of an advisory commission, a
    46  board, or an authority. For  purposes  of  this  paragraph,  "authority"

    47  means  a public authority, a state authority, or a public benefit corpo-
    48  ration created by or existing under any law of New York or New Jersey.
    49    3. The board of commissioners, by  majority  vote,  shall  appoint  an
    50  independent central procurement officer. The central procurement officer
    51  shall  work within the central procurement office and shall have primary
    52  responsibility for the prevention  of  improper  lobbying  influence  in
    53  procurement  contracts. The central procurement officer is authorized to
    54  adopt other procedural controls or rules in  addition  to  those  estab-
    55  lished in this section in consultation with the chairman of the authori-
    56  ty.  The salary, staff and office space allotted to the central procure-


        A. 5704                            17
 
     1  ment officer shall be established by the  board  of  commissioners,  and
     2  shall be consistent with the terms established for the inspector general
     3  and  independent  budget  officer. The central procurement officer shall
     4  serve for a term of five years.
     5    The  central  procurement officer may be removed from office for cause
     6  by the board of commissioners, after a public hearing.
     7    4. a. All proposals for procurement contracts must include  the  name,
     8  address, telephone number, place of principal employment, and occupation
     9  of  all persons who will contact the authority on behalf of the contrac-
    10  tor. These person shall be authorized to contact the authority on behalf
    11  of the contractor.

    12    b. The central procurement officer shall require  that  all  represen-
    13  tatives  of  the  authority  who  contact contractors or their represen-
    14  tatives with regard to a proposal, or are contacted  by  contractors  or
    15  their  representatives  with  regard  to  a  proposal,  must report such
    16  contact to the central procurement officer, including  the  name,  date,
    17  time, and content of the call.
    18    The  central procurement officer shall create a listing of all persons
    19  who contact any  representative  of  the  authority  with  regard  to  a
    20  proposal  or  procurement contract and a listing of all persons who were
    21  contacted by any representative  of  the  authority  with  regard  to  a

    22  procurement  contract.  Such reports must include the name of the person
    23  who contacted the authority, the person whom the contactor is represent-
    24  ing, and the date and time of the contact, including a brief description
    25  of the content of the call.
    26    c. If any person contacts any representative of the authority and  his
    27  or her name is not included on the proposal as required in this section,
    28  it shall be considered improper lobbying influence. The central procure-
    29  ment  officer shall report such violation to the inspector general imme-
    30  diately. Additionally, no state officer  or  employee  shall  engage  in
    31  lobbying  or  lobbying  activities as provided for in this chapter. Such
    32  action shall be improper lobbying influence.

    33    d. During the pendency of the procurement contract award  there  shall
    34  be  no contact between a contractor or his or her representative and the
    35  authority except for informational or technical information.  Guidelines
    36  for  such permitted contact shall be established by the inspector gener-
    37  al. All other contact  during  this  period  shall  constitute  improper
    38  lobbying  influence.  Communication  with  the  authority  by persons or
    39  contractors who have been tentatively awarded a  contract  or  represent
    40  persons  who  have  been  tentatively  awarded a contract solely for the
    41  purpose of negotiating the terms of the contract after being notified of
    42  such award is not prohibited. Such contract must be processed in accord-

    43  ance with the provisions of this subdivision.
    44    e. The central procurement officer upon being notified of or discover-
    45  ing attempted improper lobbying influence shall immediately  investigate
    46  such allegation and shall give the contractor an opportunity to be heard
    47  in  response  to such allegation. The central procurement officer or any
    48  representative of the authority shall report any allegations of improper
    49  lobbying influence or attempted improper lobbying influence  immediately
    50  to  the inspector general and the chairman of the authority. If improper
    51  lobbying influence or attempted improper lobbying influence is found  to
    52  have  occurred,  then the authority may impose such sanction as it shall

    53  deem appropriate, including but not limited to the  elimination  of  the
    54  proposal  from  consideration.  Any  determination made by the authority
    55  shall be reported to the inspector general.

        A. 5704                            18
 
     1    5. All records and documents required to be retained by the  authority
     2  in this section shall be available for review by the public.
     3    6.  The  central  procurement officer shall submit an annual report to
     4  the inspector general by January  first  that  reports  on  the  various
     5  procurement contracts entered into by the authority, a list of the vari-
     6  ous  contractors  and their representatives that contacted the authority
     7  with regard to procurement contracts, the instances of any attempted  or

     8  found  cases  of  improper lobbying influence and other related material
     9  and information the central procurement officer finds relevant.
    10    7. The authority, prior to making an award of a procurement  contract,
    11  shall  make  a  determination of responsibility of the proposed awardee.
    12  The authority shall ensure that each proposal for procurement  contracts
    13  requires  contractors  to  disclose  findings of non-responsibility made
    14  within the previous five years by any authority where such prior finding
    15  of non-responsibility was due  to  intentional  provision  of  false  or
    16  incomplete  information  to  an  authority. In making a determination of
    17  responsibility, the authority shall take into  account  any  such  prior

    18  finding  and  shall not award a contract to such contractor. The failure
    19  of the contractor to timely disclose accurate and  complete  information
    20  or  to otherwise cooperate with the authority shall be considered by the
    21  authority in its determination of the responsibility of such contractor.
    22    8. Every procurement contract shall contain  a  certification  by  the
    23  awardee  that  all  information  provided  to the authority is complete,
    24  true, and accurate and shall contain a provision authorizing the author-
    25  ity to terminate such procurement contract in  the  event  such  certif-
    26  ication is found to be intentionally false or intentionally incomplete.
    27    9.  Any  member, officer, employee, or representative of the authority

    28  who fails to comply with this section shall be  subject  to  appropriate
    29  disciplinary  action by the authority and when appropriate, disciplinary
    30  action shall be taken by the inspector general.
    31    10. Any person or organization that, with respect to  any  procurement
    32  or  with  respect  to  proposals  submitted to the authority, engages in
    33  lobbying and any person or organization that retains, employs, or desig-
    34  nates any person or organization to  carry  on  lobbying  activities  on
    35  behalf  of  such person or organization shall be subject to the lobbying
    36  registration laws of New York and New Jersey.
    37    11. Every person or organization subject to the provisions of New York
    38  and New Jersey's lobbying laws or this section as a lobbyist  or  client

    39  because  of  acts relating to procurements or proposals to the authority
    40  shall file a copy of each document  required  to  be  filed  under  this
    41  section with the authority.
    42    12.  The  central  procurement office shall receive and file documents
    43  required to be filed under this section. The authority  shall  catalogue
    44  such filings by the name of the lobbyist, the name of the client, and by
    45  the  contract  whom  the  lobbyist  has attempted to influence action on
    46  behalf of the client. The authority shall make information furnished  by
    47  lobbyists and clients available to the public for inspection and copying
    48  in  electronic  and paper formats. Access to such information shall also
    49  be made  available  for  remote  computer  users  through  the  internet

    50  network.
    51    13.  No  client  shall retain or employ any lobbyist for compensation,
    52  the rate or amount of which compensation in whole or part is  contingent
    53  or  dependent  upon the acceptance of or decision regarding any proposal
    54  or procurement contract by  the  authority.  The  methodology  by  which
    55  compensation is determined must be included in the reports required.

        A. 5704                            19
 
     1    §  6.    This act shall take effect upon the enactment into law by the
     2  state of New Jersey of legislation having an identical effect with  this
     3  act,  but  if  the  state  of New Jersey shall have already enacted such
     4  legislation, this act shall take effect immediately; provided  that  the
     5  board  of commissioners of the port authority of New York and New Jersey

     6  shall notify the legislative bill drafting commission  upon  the  occur-
     7  rence  of the enactment of the legislation provided for in sections two,
     8  three, four and five of this act in order that the commission may  main-
     9  tain  an accurate and timely effective data base of the official text of
    10  the laws of the state of New York in  furtherance  of  effectuating  the
    11  provisions  of section 44 of the legislative law and section 70-b of the
    12  public officers law.
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