What's happening
This bill requires New York public authorities to study the effects of privatizing critical infrastructure before any sale or transfer.
Why it matters
Ensures thorough public scrutiny before major infrastructure is privatized. By mandating in-depth studies on the potential consequences of privatization, the bill helps prevent hasty or poorly considered transfers of vital roads, bridges, ports, and other assets to private entities.
Protects public investment and financial stability. The required reports must analyze how privatization would affect the public authority’s ability to repay debts linked to the infrastructure, reducing the risk of financial fallout or unexpected taxpayer burdens.
Draws on lessons from past projects. By requiring comparison with similar privatization efforts elsewhere in the U.S., the bill encourages learning from both successes and failures, aiming to avoid repeating costly mistakes or misjudgments.
Delays any privatization until concerns are addressed. The legislation imposes a moratorium on sales or leases until all studies are completed and reviewed by legislative and executive leaders, providing multiple layers of oversight and the chance to raise additional concerns.
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Who cares
Headline styles
Study Privatizing Public Infrastructure
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Print number 6296a
- Amend and recommit to corporations, authorities and commissions
- Referred to corporations, authorities and commissions
- Referred to corporations, authorities and commissions
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6296--A
2017-2018 Regular Sessions
IN SENATE
May 11, 2017
Introduced by Sen. COMRIE -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions -- recommitted to the Committee on Corporations, Authorities and Commissions in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT requiring all public authorities owning, leasing, and controlling critical infrastructure to study the potential consequences of privatization
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Legislative findings. 1. New York state must have sufficient numbers of properly designed and maintained bridges, tunnels, roads, airports, ports, container ports and railroads ("critical infrastructure") in order to retain its economic competitiveness and grow its economy.
2. Much of the state's existing critical infrastructure is aging, is experiencing capacity problems, has had maintenance problems, or in some other manner has become a candidate for re-engineering, rebuilding, replacement or supplementation.
3. The most critical and expensive infrastructure in New York state to re-engineer, rebuild or replace is under the control or ownership of public authorities, and such critical transportation infrastructure is under consideration for sale, long-term lease or other transfer of ownership or control to the private business sector ("privatization").
§ 2. 1. All public authorities shall immediately suspend issuing concessions or selling or otherwise transferring, or issuing notices of inquiry ("NOIs") or requests for proposal ("RFPs") for leasing, or selling or otherwise transferring control of any critical transportation infrastructure, until each of such public authorities has issued a study reporting on the effects of privatization of critical transportation
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07588-03-8
S. 6296--A 2
infrastructure, and all public authorities shall forbear from issuing concessions or selling or otherwise transferring, or issuing notices of inquiry ("NOIs") or requests for proposals ("RFPs") for leasing, or selling or otherwise transferring control of any critical transportation infrastructure during the pendency of such studies (the "privatization report").
2. (a) Each public authority shall issue its individual report 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 (the "Committees").
(b) Each public authority's report shall evaluate in detail the following:
(i) the impact that sale or transfer of control of its critical infrastructure would have upon the authority's ability to pay any and all debt it has issued, or succeeded to, that is guaranteed or secured by any revenues arising from the authority's critical infrastructure, or by the ownership of such critical infrastructure;
(ii) whether the critical infrastructure involved any existing privatization initiatives in the United States are comparable in scope, scale and value to the critical infrastructure controlled by the public authority ("comparable projects");
(iii) the progress to date of any comparable projects and whether any such projects have experienced cost overruns or delays, or otherwise have failed, or succeeded, in meeting the deadlines and costs put forth by the private entity.
3. (a) The privatization report shall be due on or within 14 days of December 1, 2018. Within 90 days after the date each public authority submits the report provided for in subdivision one of this section to the committees, such committees may, severally or collectively, submit further issues for study and inclusion in such report, which said public authorities shall study and include within such report within 60 days after receipt of any such submission, at which point said public authorities shall submit the privatization report to the governor, the temporary president of the senate, the speaker of the assembly, the minority leaders of the senate and assembly, the chairperson and ranking minority member of the senate corporations, authorities and commissions committee, and the chairperson and ranking minority member of the assembly corporations, authorities and commissions committee.
(b) The governor, the temporary president of the senate, the speaker of the assembly, the minority leaders of the senate and assembly, the chairperson and ranking minority member of the senate corporations, authorities and commissions committee, and the chairperson and ranking minority member of the assembly corporations, authorities and commissions committee shall have a period of 90 days within which to submit further issues for study and inclusion in such report, which said public authorities shall study and include within such report within 60 days after receipt of any such submission.
(c) No public authority shall take any action to privatize any critical infrastructure owned by it, leased by it, or otherwise controlled by it, including but not limited to the actions enumerated in this section, until the privatization report, including responses to its submission by the committees, legislators and the executives mentioned above shall, have been completed and submitted to said persons.
S. 6296--A 3
§ 3. This act shall take effect on the ninetieth day after it shall have become a law. Any rule or regulation necessary for the timely implementation of this act on its effective date may be promulgated on or before such date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act requiring all public authorities owning, leas- ing, 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 report- ing on the effects of privatization on the infrastructure.
Summary of specific provisions
All public authorities shall suspend all action with regard to privati- zation of transportation infrastructure. All public authorities shall issue a report on the effects of privatization of transportation infras- tructure to the assembly commit- tees 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 infras- tructure 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 time- ly implementation of this act on its effective date shall be promulgated on or before, such date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.