Directs the port authority to contract with a certified public accounting firm for the conducting of an independent forensic audit of such authority

1 Co-sponsor

• Diane J. Savino

BILL NUMBER:S5875

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 directing the port authority to contract for the provision of an independent forensic audit of such authority; and providing for the repeal of such provisions upon expiration thereof

Purpose

Directs the Port Authority of New York and New Jersey to contract with a certified public accounting firm for the conducting of an independent forensic audit.

Summary of provisions

Section one of the bill amends Section 1 of chapter 154 of the laws of 1921 relating to the Port Authority of New York and New Jersey is amended by adding a new article VII-B.

Section two is the effective date.

Justification

This bill is necessary to give the Governors and Legislatures of New York and New Jersey and the public the ability to know how and where money is being spent for the operations of the Port Authority. While the Port Authority Commissioners have recently approved a toll and fare hike, it has been documented by the New York State Comptroller that the Port Authority spent $85 million in overtime in 2010. Another report shows the Authority lacked documentation for over $1 billion in service contracts and agreements and that it is potentially missing out on tens of millions of dollars in savings. In addition, recent media reports noted that the Authority has allowed costs for rebuilding the World Trade Center to go $2 billion over budget, and that it routinely loses tens of millions of dollars a year on facilities.

At a time when every dollar counts, these actions are simply inexcusable. The Port Authority cannot justify asking families and businesses to pay substantially more in tolls, while at the same time failing to control its budget. That is why this legislation, to require an independent forensic audit, is necessary.

This audit will give the both New York and New Jersey governments, and the public, the ability to know where Port Authority funds are being allocated. This audit will be a blueprint to implement future cost saving measures within the Authority. This bill will ensure that revenue is being spent wisely and will also reveal ways that the Port Authority can cut costs without harming the public's transportation needs. The independent forensic audit, conducted by a public

accounting firm, must report its findings on or before one year from the effective date of this article.

Legislative history

New bill.

Fiscal implications

None to the states of New York and New Jersey.

Effective date

This act shall take effect upon the enactment into law by the state of New Jersey of legislation having an identical effect with this act, but if the state of New Jersey shall have already enacted such legislation, this act shall take effect immediately; provided that the chairman of the port authority of New York and New Jersey shall notify the legislative bill drafting commission upon the occurrence of the enactment of the legislation provided for in section one of this act in order that the commission may maintain an accurate and timely effective data base of the official text of the laws of the state of New York in furtherance of effectuating the provisions of section 44 of the legislative law and section 70-b of the public officers law.