Relates to the functioning of the port authority as an open, transparent and accountable interstate public authority

Summary of specific provisions

Section one of the bill sets forth the legislative findings.

Section two amends Article IV of chapter 154 relating to the commissioners of the Port Authority to provide how commissioners are appointed, and setting forth specific duties and responsibilities to be performed by the board of commissioners, including the establishment of an audit, finance and governance committee.

Section three makes a conforming amendment relating to the new article VII-B.

Section four adds a new Article VII-B to chapter 154 to add the following additional duties and responsibilities to those currently performed by the board of commissioners, including:

o Setting forth specific procedures for disposing of Port Authority property; o Describing the specific information that must be included in the annual report of the Port Authority; o Requiring the financial statements of the Port Authority to be subject to certain auditing standards, and imposing duties and responsibilities on the auditing firm retained by the Port Authority to perform the audits; o Establishing a whistleblower access and assistance program; o Establishing an office of Inspector General; o Establishing rules relating to contacts with lobbyists; and o Requiring the Port Authority to conduct public hearings before raising tolls and fares and provides for accommodation for the handicapped; o Provides for financial disclosure by the commissioners and employees who hold policy making positions to comply with the same standards as those in the state where they are assigned to work.

Section five amends Article XIV of chapter 154 relating to the appointment of the chair of the board and the executive director of the Port Authority.

Section six set forth the severability clause,

Section seven sets forth the effective date.

Justification

In 2005 and 2009, the state of New York enacted comprehensive legislation to improve the practices of, and increase oversight over, the state's public authorities. As entities that are publicly-funded and are created to perform or provide an important public service, it was important to increase and enhance the accountability and transparency of the public authorities.

The Public Authority of New York and New Jersey is a multi-billion dollar company that performs and provides vital transportation and infrastructure functions and services in the state of New York. 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.

With such a substantial and vital presence in this state, the Port Authority should abide by and be subject to the same laws as are currently imposed on all other New York state public authorities. 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

It is in the best interest of the public that the states of New York and New Jersey enact substantially identical legislation to ensure that the Port Authority functions as an open, transparent and accountable interstate public authority.

Prior legislative history

New bill.

Fiscal implications

Minimal.

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.