Amd Arts 4 & 15-A, add Arts 7-B - 7-D, S1 of Chap 154 of 1921
Relates to the organization, open meetings, public hearings, financial reporting and disposition of property of the Port Authority of New York and New Jersey.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8298
SPONSOR: Brennan (MS) TITLE OF BILL:
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 port authority
organization, open meetings, public hearings, financial reporting and
handling of property
PURPOSE:
This bill would enact the "Port Authority of New York and New Jersey
Transparency and Accountability Act of 2015."
SUMMARY OF PROVISIONS:
Section one of the bill would set forth the title of the Act as the
"Port Authority of New York and New Jersey Transparency and Accountabil-
ity Act of 2015.
Section two would amend Article IV of chapter 154 of the Laws of 1921 to
strengthen the governance of the Port Authority of New York and New
Jersey ("Port Authority") and implement stronger accountability measures
for the Port Authority's Board of Commissioners ("Commissioners), offi-
cers, and employees, including:
*Beginning upon the next hiring of a Chief Executive Officer but no less
than one year from the effective date of this act, the Chairperson and
Vice Chairperson shall be rotated for a term of two years among the
Board of Commissioners, beginning with a Chairperson appointed by the
Governor of New York, and the Vice Chairperson appointed by the Governor
of New Jersey, respectively;
*Prohibiting a Commissioner, including the Chairperson, from serving as
the Port Authority's Chief Executive Officer or as any other officer
while serving as a Commissioner;
*Appointing a Chief Ethics and Compliance Officer who shall enforce
compliance with applicable laws and best practices, bolstering the
authority of the Port Authority's Inspector General, and establishing a
whistleblower access and assistance program;
*Requiring Commissioners to execute a statement declaring their fiduci-
ary obligation to exercise independent judgment and act in the best
interest of the Port Authority, its mission, and the public;
*Adopting a Port Authority mission statement designed to meet the crit-
ical transportation infrastructure needs of the bi-state region's resi-
dents, businesses, and visitors by providing the highest quality and
most efficient transportation and port commerce facilities and services
to move people and goods within the region, provide access to the nation
and the world, and to promote the region's economic development;
*Establishing a clear recusal policy to prevent conflicts of interest,
requiring Commissioners, officers, and certain employees to
file.financial disclosures, and requiring all Commissioners, officers,
and employees to maintain records regarding contact with lobbyists; and
*Requiring public notice of Port Authority meetings and that such meet-
ings are open to the public.
Section three would amend Article 15-A of chapter 154 (L. 1921), as
added by chapter 275 (L. 1992) to define the terms "committee", "commit-
tees", and "news media". It would also require the Board of Commission-
ers to adopt rules and regulations concerning proper notice to the
public and the news media of its meetings.
Section four would add new Articles VII-B, VII-C, and VII-D to chapter
154 (L. 1921). Article VII-B would require the Port Authority to conduct
a needs assessment and public hearings before raising tolls and fares.
Article VII-C would require the Port Authority to provide enhanced annu-
al reports, to undergo financial audits, and to make public its capital
plan and debt issuance. Finally, Article VII-D would require the Port
Authority to make property dispositions in compliance with the laws of
the State in which the property is located, and to only sell, lease, or
otherwise alienate a property below fair market value in limited circum-
stances.
Section five would provide for severability.
Section six provides that the act shall take effect upon the enactment
by the state of New Jersey of legislation having an identical effect
with this bill.
EXISTING LAW:
These provisions are new.
STATEMENT IN SUPPORT:
Established almost a century ago, the Port Authority was created to
oversee the harbor interests shared by New Jersey and New York. Over the
decades, the Port Authority has expanded to manage new opportunities and
face new challenges, and currently operates a wide array of transporta-
tion programs under a multi-billion dollar yearly budget.
In August 2011, Governors Cuomo and Christie required the Port Authority
to undergo a comprehensive audit of its finances and operations. As a
result of those audit findings, the Port Authority has taken numerous
steps towards reform and positive change. In 2014, Governors Cuomo and
Christie created the bi-state Special Panel on the Future of the Port
Authority ("Special Panel") to further review the role and functionality
of the Port Authority. This legislation would statutorily codify reforms
the Port Authority has undertaken to ensure that its functions are open
and transparent, and includes other reforms recommended by the Special
Panel regarding the Port Authority's overall organization and its role
in the region.
BUDGET IMPLICATIONS:
None to the State.
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.
