Enacts the "Port Authority of New York and New Jersey Transparency and Accountability Act"

Summary of provisions

1. Requires for an independent auditing of the Port Authority. 2. Requires specific requirements for open public meetings and publication of minutes of meetings of the Board of Commissioners. 3. Establishes specific requirements for public hearings to be held in the port district of New York and New Jersey to discuss any proposed fee, toll, charge, or fare increase. 4. Established an Audit, Finance and Governance Committees. 5. Required financial disclosures and training for Commissioners. 6. Certification by the Chairman, Vice-Chairman of the Board of Commissioners of the Port Authority and the Executive Director, and the Chief Financial Officer of the Port Authority. 7. Creation of a fiduciary responsibility for Commissioners.

Justification

This bill enacts certain reforms to ensure the proper functioning of the Port Authority of New York and New Jersey as an open, transparent and accountable interstate authority. The Port Authority's operations include Newark, LaGuardia and Kennedy airports; the Port of New York and New Jersey, which is the leading maritime cargo port on the east coast of North America; PATH mass transit system; the World Trade Center; and numerous bridges and tunnels, including the George Washington Bridge and the Lincoln and Holland Tunnels.

The measures contained in this legislation will bring accountability and transparency to the Port, Authority, It will also allow the public and government officials to have confidence that the Authority is committed to its mission in a responsible and fiscally sound manner.

The bill requires the Port Authority's Board of Commissioners to provide direct oversight of the authority's CEO and senior management; oversee the implementation of financial and management controls and operational decisions; establish policies concerning the compensation of officers and employees; require each board member to execute statement declaring an understanding of the member's independence, fiduciary duties and commitment to the Port Authority's mission; require that a needs assessment be conducted prior to any fee, toll, charge, or fare increase; require an annual efficiency study to identify waste or abuse; and establish audit, governance and finance committees.

The bill also requires the Port Authority to provide within 90 days of the end of its fiscal year, a complete and detailed report setting forth: the Port Authority's operations and accomplishments, certified financial reports, mission statement, charter and by-laws; a schedule of outstanding bonds and notes, a statement of the amounts redeemed and incurred. during the fiscal year as part of a schedule of debt issuance, and a detailed list of costs of issuance for such debt; biographical information and titles of commissioners and senior management, including compensation and benefits paid to commissioners and to senior staff in any amount; the projects undertaken during the past year; the port Authority's code of ethics; an assessment of the effectiveness of the Port Authority and its board structure; a listing of material changes in operations and programs; at a minimum, a four year financial plan; performance evaluations; and a list of any pending litigation to which the Port Authority is involved as a party and any related expenses. The documentation pertaining to the Port Authority's mission, current activities, most recent annual financial reports and independent audit, and current year budget must be accessible on its website.

Additionally, the bill requires the board to make all reasonable efforts to ensure that meetings are held in facilities that permit barrier-free physical access to the physically handicapped and to provide an opportunity for the public to attend, listen, and to observe at any site at which a member participates in a meeting held using video conferencing.

The bill makes the following requirements for public hearings to be held prior to the adoption of any increase in any fee, toll, charge or fare: (1) the Port Authority must hold at least 10 hearings, at least one of which must be conducted in each county directly affected by the proposed increase; (2) at least two-thirds of the commissioners must attend each public hearing; (3) no more than one public hearing may be held in a single day; and (4) at least half of the hearings must begin after 6:30 p.m. on a weekday.

Finally, the bill requires that at each meeting of the board and its committees, the public lie allotted a period of not less than 30 minutes to speak on any topic on the agendas. The Port Authority is required to make agendas and public documents available to the public at least 72 hours before a meeting and must publicize the notice of the time and place of meetings. Minutes must be taken at all open meetings of the authority which will be available to the public within two weeks of the date of the meeting.

Legislative history

2011: S.5878 - Referred to Rules/A.8677 - Referred to Corporations.

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.