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.
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.
