Enacts the "port authority of New York and New Jersey transparency and accountability act of 2014"

Summary of specific provisions

Section one of the bill sets forth the title of the Act: "The Port Authority of New York and New Jersey Transparency and Accountability Act of 2014".

Section two amends Article IV of chapter 154 relating to the commissioners of the Port Authority to set forth specific duties and responsibilities to be performed by the board of commissioners. The section would also require commissioners to perform their fiduciary duties as board members; to exercise independent judgment and act in the best interest of the authority, its mission and the public served by the Authority. Each commissioner is required to certify in writing acknowledging his or her duty of loyalty and care to the authority and its mission.

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:

*Setting forth specific procedures for disposing of Port Authority property;

*Describing the specific information that must be included in the annual report of the Port Authority;

*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;

*Establishing a whistleblower program;

*Requiring Port Authority officers and employees to report suspected fraud, corruption, conflict of interest to the Inspector General;

*Requiring New York commissioners, all officers and certain employees of the port authority to file annual financial disclosure statements;

*Complying with certain rules relating to contacts with lobbyists; and

*Requiring the Port Authority to conduct a needs assessment and public hearings before raising tolls and fares.

Section five amends Article XV-A of chapter 154 to specify that all meetings of the Port Authority are public meetings subject to the open meetings laws of both states, sets forth the process for declaring an executive session of the board, and require minutes to be taken in all meetings of Port Authority.

Section six amends the public officers law to require the New York commissioners, and certain employees of the Port Authority to file annual financial disclosure statements.

Section seven sets forth the severability clause.

Section eight provides that the act shall take effect upon the enactment by the state of New Jersey of legislation that has an identical effect with this act.

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.

This Act will not impair or otherwise affect the authority of the state comptroller of both states under current law (Chap. 649 of the laws of 1929; Uncons. Law, § 7071) to examine the accounts and books of the Port Authority.

Prior legislative history

A.3944, passed Assembly - 2013; A.9150-A, passed Assembly 2012.

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.