Requires all public authorities owning, leasing, and controlling critical infrastructure to study the potential consequences of privatization

BILL NUMBER:S5388

Title of bill

An act requiring all public authorities owning, leasing, and controlling critical infrastructure to study the potential consequences of privatization

Purpose or general idea of bill

This bill would require all public authorities to suspend all action in regard to transferring critical infrastructure to the private business sector, until each of such public authorities has issued a study reporting on the effects of privatization on the infrastructure.

Summary of specific provisions

All public authorities shall suspend all action with regard to privatization of transportation infrastructure. All public authorities shall issue a report on.the effects of privatization of transportation infrastructure to the assembly committees on corporations, authorities and commissions, economic development, transportation, and ways and means and to the senate committees on commerce, economic development and small business, corporations, authorities and commissions, and transportation. Each public authority report should analyze in detail, the fiscal ramifications of privatization of critical infrastructure and compare the specifics of any proposed project to any existing privatization initiatives in the United States.

Justification

This bill would require public authorities to analyze the long-term fiscal implications of privatizing critical infrastructure. Public authorities should be required to show proof that a onetime cash infusion resulting from selling public assets is preferable to the decades of future income and tighter control of price increases that currently exist. The possibility exists that taxpayers will be left with higher tolls and poorer service when private entities begin seeking greater profits from privatized infrastructure. The legislature needs the specific details of any and all deals that would privatize infrastructure in New York State, before any precedent setting deals are completed.

Prior legislative history

A.10736 of 2006. A.1021 (2007-2008). A4117 (2009-10) - reported from Corporations committee to Ways and Means. A5754a of 2011-12; A5588 of 2013-14 - In Corporations.

Fiscal impact

None.

Effective date

This act shall take effect on the ninetieth day after it shall have become a law, except that any rule or regulation necessary for the timely implementation of this act on its effective date shall be promulgated on or before such date.