Relates to the Port Authority of New York and New Jersey's ability to enter into contracts with foreign persons or corporations

Security and Emergency Preparedness for the State of New Jersey, and the Waterfront Commission of New York Harbor to establish a port security enhancement plan by February 15, 2014, and require the Port Authority to execute security agreements providing for background checks, limitations of construction services, and increased security personnel, in all contracts with foreign entities, and to make a report to the Legislature, providing specific and ongoing information on all such contracts within 30 days of the effective date of this act, and every 18 days thereafter.

Summary of specific provisions

Specifically, this bill would:

1. Add a new section 719 to the executive law, to require the Division of Homeland Security and Emergency Services for the State of New York, the Office of Homeland Security and Emergency Preparedness for the State of New Jersey, and the Waterfront Commission of New York Harbor, on or before the 15th day of February, after the effective date of this section, to prepare, and deliver to the governors of the states of New York and New Jersey, the presidents pro tem pore of the senates of New York and New Jersey and the speakers of the assemblies of New York and New Jersey, a comprehensive report, which provides a plan of action and includes recommendations, for the improvement of port and waterway security for the port of New York and New Jersey, as well as the ports, waterways and coastlines of the states of New York and New Jersey.

Such report shall include:

*An examination of the overall security issues of the port of New York and New Jersey, and making recommendations with respect to such issues, including: *The overall provision and status of port security; *The division of responsibility for all facets of port security; *Current impediments to providing optimal levels of security; *Police patrols of the port: *Interagency cooperation between federal, state and local authorities; *Employee, crew, shipper, transporter and visitor background checks; *Current and potential technology enhancements; *Economic considerations; *Real property and leasehold issues; and *Such other and further items as the commission deems important; and *Such report shall also include an examination of the overall security issues of the ports, waterways and coastlines of the states of New

York and New Jersey, making recommendations with respect to the such issues.

2. Create a new Article VI-A of the Port Authority Compact Law (Section 6407-a of the Unconsolidated Laws) to provide the following:

*That the port authority shall not have the authority, to purchase, construct, lease and/or operate any terminal or port facility; or to make charges for the use thereof; or to own, hold, lease and/or operate real or personal property, wherein any rights, powers or duties of the port authority are given, awarded, transferred or assigned in the ownership, holding, leasing and/or operation of any such terminal or port facility, or such real or personal property, to any foreign based person, corporation or entity, without maintaining within such contracts a foreign contract security agreement

*The foreign contract security agreement would require:

*That all employees of the foreign based person, corporation or entity shall, prior to their employment or continuation of employment, with the foreign based person, corporation or entity, or any subsidiary thereof, at any terminal or part owned, leased or controlled by the port authority, pass a background security check, which shall be administered and designed by the Waterfront Commission, and that all costs of designing and administration of such background security checks shall be paid for by the foreign based person, corporation or entity; and

*That all construction, fit up and/or modifications of the terminal or port facility, owned, leased or controlled by the port authority, including the purchase, installation and/or maintenance of equipment for use at such facility, shall be exclusively performed by a person, corporation or entity which is not foreign based or controlled, and which has been pre-cleared by the Waterfront Commission, and in no event shall the foreign based person, corporation or entity be provided with, or be given access to, any maps drawings, diagrams, blueprints or any other secure documents concerning the buildings and grounds of the terminal or port facility, its equipment and/or operational infrastructure; and

*An agreement that the foreign based person, corporation or entity shall fund regular and necessary patrols and inspections of the terminal or port facility, and its equipment, cargo and operations by the port authority police, waterfront commission police, personnel of the United States Coast Guard, and/or personnel of the United States Customs to the extent and number as shall be required by regulation by the state police of the states of New York and New Jersey, in cooperation and consultation with the Offices of Homeland and Public Security of the United States, and states of New York and New Jersey; and

*This new Article VI-A would also require that the Port Authority produce ongoing reports on foreign contracts. Pursuant to such requirement within 30 days of the effective date of this act, and every 180 days thereafter, the Port Authority must submit to the Chair of the New York State Senate Standing Committee on Veterans, Homeland Security, and Military Affairs, the Chair of the New York State

Assembly Standing Committee on Governmental Operations, the Chair of the New Jersey State Senate Standing Committee on Law, Public Safety and Governmental Affairs, and the Chair of the New Jersey State Assembly Standing Committee on Homeland Security and State Preparedness, a complete report of all current and proposed contracts, agreements and delegations between the port authority and any foreign based person, corporation and entity. Such report shall include a detailed description of such current or proposed contract, agreement or delegation; and

This new Article VI-A would further require that any contract, agreement or delegation by the port authority to any foreign person, corporation or entity, which does not contain the express security agreement outlined above, on or before January 1, following the effective date of this article, shalt be deemed void and cancelled, with the port authority being responsible for the payment of damages, if any, for the voiding and cancelling of the same.

Justification

At this time of heightened public safety concerns, New York State, with one of the largest coastlines in America, and with an economy and transportation network long associated with water and shipping, needs to take serious and immediate action to protect its port, waterway and coastal security.

Additionally, the Port Authority of New York and New Jersey has been presented with an issue of National and State security concerning its contract operations of terminal and port facilities with foreign based entities. After the lessons of terrorist attacks in the United States, the States of New York and New Jersey cannot afford to take such concerns lightly and need to take real and concrete action to increase public protection at one of its most important infrastructure facilities, its port.

This bill would take demonstrative steps to accomplish this goal by requiring the establishment of a port security enhancement plan as well as the institution of security agreements in all Port Authority contracts with foreign entities involving terminal and port operations. In so doing, this bill would seek to address the major security risk factors involving such contracts. By requiring that any such contract to provide for the background check screening of all employees working with such foreign corporation, or subsidiary thereof, pass a background screening test designed and administered by the state police in consultation with the state and federal departments of homeland security, this bill seeks to ensure that the persons working at such terminals and port facilities do not in any way pose a security risk or have any connections or involvement with persons who might seek to commit an act of terrorism or injury to the public or the port.

By prohibiting foreign contractors from engaging in any construction, fit up and/or modifications of the terminal or port facility, including the purchase, installation and/or maintenance of equipment for use at such facility, and that all such services be exclusively performed by a domestic entity, which has been pre-cleared by the state police in cooperation and consultation with the departments of

Homeland Security, and by further prohibiting such foreign based contractor from being provided with, or be given access to, any maps drawings, diagrams, blueprints or any other secure documents concerning the buildings and grounds of the terminal or port facility, its equipment and/or operational infrastructure, this bill would additionally help to alleviate security concerns with respect to foreign knowledge and access to the physical layouts and vulnerabilities of terminal and port facilities.

By also requiring foreign contractors to fund regular and necessary patrols and inspections of the terminal or port facility, and its equipment, cargo and operations by the port authority police, personnel of the United States Coast Guard, and/or personnel of the United States Customs, to the extent and number as shall be required by regulation by the state police in cooperation and consultation with the departments of Homeland Security, this bill also seeks to significantly increase terminal and port security at these sites specifically, and at all sites of the Port Authority specifically.

The provisions of this bill which require the reports to the legislatures with respect to these foreign contracts would provide for a measure of ongoing oversight over these contracts by the state legislatures of the states of New York and New Jersey and establish a mechanism to provide information over these proposed deals to both the public and their elected representatives.

Legislative history

2008: S.3743-A - Passed Senate (59-0)

Fiscal implications

None noted.

Effective date

This act shall take effect immediately; provided, however, that section two of 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 chair of the port authority shall notify the legislative bill drafting commission upon the occurrence of the enactment of the legislation provided for in section two 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.