Sponsored by:
Assemblyman JOHN S. WISNIEWSKI
District 19 (Middlesex)
SYNOPSIS
Reforms PANYNJ.
CURRENT VERSION OF TEXT
As introduced.
An Act reforming the Port Authority of New York and New Jersey, amending and supplementing Title 32 of the Revised Statutes, and repealing parts of the statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. R.S.32:1-5 is amended to read as follows:
ARTICLE IV.
The port authority shall consist of [twelve] 12 commissioners--six resident voters from the state of New York, at least four of whom shall be resident voters of the city of New York, and six resident voters from the state of New Jersey, at [lest [least]] least four of whom shall be resident voters within the New Jersey portion of the district[, the New York members to be chosen by the state of New York and the New Jersey members by the state of New Jersey in the manner and for the terms fixed and determined from time to time by the legislature of each state respectively, except as herein provided].
a. Commissioners from the State of New Jersey shall be appointed as follows:
(1) Three commissioners, who shall be resident voters within the New Jersey portion of the district, shall be appointed by the Governor of New Jersey by and with the advice and consent of the New Jersey Senate, or if the Legislature is not in session, by the Governor, for terms as follows:
(a) Each appointment made by and with the advice and consent of the Senate to fill a vacancy occurring or existing by reason of the expiration of a term, shall be for a term expiring on the first day of July, six years from the date of the expiration of the term of the appointee's predecessor.
(b) Each appointment made to fill a vacancy occurring or existing when the Legislature is not in session, shall be for a term expiring at the end of the next session of the Legislature, or upon the appointment of the appointee's successor, whichever may occur first.
(c) Except as above provided in the case of ad interim appointments, each appointment made to fill a vacancy occurring or existing by reason other than the expiration of term, shall be for the unexpired portion of the term of the appointee's predecessor.
(2) One commissioner shall be appointed by the President of the New Jersey Senate for a term as follows:
(a) Each appointment to fill a vacancy occurring or existing by reason of the expiration of a term shall be for a term expiring on the first day of July, six years from the date of the expiration of the term of the appointee's predecessor.
(b) Each appointment made to fill a vacancy occurring or existing by reason other than the expiration of term, shall be for the unexpired portion of the term of the appointee's predecessor.
(3) One commissioner shall be appointed by the Speaker of the New Jersey General Assembly for a term as follows:
(a) Each appointment to fill a vacancy occurring or existing by reason of the expiration of a term shall be for a term expiring on the first day of July, six years from the date of the expiration of the term of the appointee's predecessor.
(b) Each appointment made to fill a vacancy occurring or existing by reason other than the expiration of term, shall be for the unexpired portion of the term of the appointee's predecessor.
(4) One commissioner who shall be a resident voter within the New Jersey portion of the district shall be appointed by the citizens advisory committee established pursuant to section 20 of P.L. , c. (C. ) (pending before the Legislature as this bill) for a term as follows:
(a) Each appointment to fill a vacancy occurring or existing by reason of the expiration of a term shall be for a term expiring on the first day of July, six years from the date of the expiration of the term of the appointee's predecessor.
(b) Each appointment made to fill a vacancy occurring or existing by reason other than the expiration of term, shall be for the unexpired portion of the term of the appointee's predecessor.
b. Commissioners from the State of New York shall be appointed as follows:
(1) Three commissioners shall be appointed by the governor of New York by and with the advice and consent of the New York Senate, or if the legislature is not in session, by the governor, for terms as follows:
(a) Each appointment made by and with the advice and consent of the senate to fill a vacancy occurring or existing by reason of the expiration of a term, shall be for a term expiring on the first day of July, six years from the date of the expiration of the term of the appointee's predecessor.
(b) Each appointment made to fill a vacancy occurring or existing when the legislature is not in session, shall be for a term expiring at the end of the next session of the legislature, or upon the appointment of the appointee's successor, whichever may occur first.
(c) Except as above provided in the case of ad interim appointments, each appointment made to fill a vacancy occurring or existing by reason other than the expiration of term, shall be for the unexpired portion of the term of the appointee's predecessor.
(2) One commissioner shall be appointed by the presiding officer of the New York Senate for a term as follows:
(a) Each appointment to fill a vacancy occurring or existing by reason of the expiration of a term shall be for a term expiring on the first day of July, six years from the date of the expiration of the term of the appointee's predecessor.
(b) Each appointment made to fill a vacancy occurring or existing by reason other than the expiration of term, shall be for the unexpired portion of the term of the appointee's predecessor.
(3) One commissioner shall be appointed by the Speaker of the New York Assembly for a term as follows:
(a) Each appointment to fill a vacancy occurring or existing by reason of the expiration of a term shall be for a term expiring on the first day of July, six years from the date of the expiration of the term of the appointee's predecessor.
(b) Each appointment made to fill a vacancy occurring or existing by reason other than the expiration of term, shall be for the unexpired portion of the term of the appointee's predecessor.
(4) One commissioner shall be appointed by the citizens advisory committee established pursuant to section 20 of P.L. , c. (C. ) (pending before the Legislature as this bill) for a term as follows:
(a) Each appointment to fill a vacancy occurring or existing by reason of the expiration of a term shall be for a term expiring on the first day of July, six years from the date of the expiration of the term of the appointee's predecessor.
(b) Each appointment made to fill a vacancy occurring or existing by reason other than the expiration of term, shall be for the unexpired portion of the term of the appointee's predecessor.
c. Each commissioner may be removed or suspended from office as provided by the law of the state from which [he] the commissioner shall be appointed.
(cf: R.S.32:1-5)
2. Section 3 of P.L.1991, c.395 (C.32:1-6.3) is amended to read as follows:
3. [The board shall adopt and promulgate appropriate rules and regulations concerning the right of the public to be present at meetings of the authority. The board may incorporate in its rules and regulations conditions under which it may exclude the public from a meeting or a portion thereof.
Any rules or regulations adopted hereunder shall become a part of the minutes of the Port Authority of New York and New Jersey and shall be subject to the approval of the Governor of New Jersey and the Governor of New York.]
a. For the purposes of this section, "adequate notice" means written advance notice of at least 48 hours, giving the time, date, location and, to the extent known, the agenda of any regular, special, or rescheduled meeting of the port authority or any port authority committee, which notice shall accurately state whether formal action may or may not be taken and which shall be: prominently posted in at least one public place reserved for similar announcements; delivered to at least two newspapers which newspapers shall be designated by the port authority to receive these notices because they have the greatest likelihood of informing the public of these meetings; and posted on the port authority's internet website.
b. Except as provided by this subsection, the port authority shall not shall hold a meeting unless adequate notice thereof has been provided to the public. Upon the affirmative vote of three quarters of the commissioners present, the port authority may hold a meeting notwithstanding the failure to provide adequate notice if:
(1) the meeting is required in order to deal with matters of an urgency and importance that a delay for the purpose of providing adequate notice would be likely to result in substantial harm to the public interest;
(2) the meeting is limited to discussion of and acting with respect to those matters of urgency and importance;
(3) notice of the meeting is provided as soon as possible following the calling of the meeting; and
(4) either the port authority could not reasonably have foreseen the need for a meeting at a time when adequate notice could have been provided; or although the port authority could reasonably have foreseen the need for a meeting at a time when adequate notice could have been provided, it nevertheless failed to do so.
c. At the commencement of every meeting of the port authority, the person presiding shall announce publicly, and shall cause to be entered in the minutes of the meeting, an accurate statement to the effect:
(1) that adequate notice of the meeting has been provided, specifying the time, place, and manner in which the notice was provided; or
(2) that adequate notice was not provided, in which case the announcement shall state the nature of the substantial harm to the public interest likely to result from a delay in the holding of the meeting; that the meeting will be limited to discussion of and acting with respect to the stated matters of urgency and importance; and the time, place, and manner in which notice of the meeting was provided.
d. Except as provided by this subsection, all meetings of the port authority shall be open to the public at all times, provided that the port authority may exclude the public: after first adopting a resolution, at a meeting to which the public shall be admitted, stating the general nature of the subject to be discussed; after stating, as precisely as possible, the time when and the circumstances under which the discussion conducted in closed session of the port authority can be disclosed to the public; and only from that portion of a meeting at which the port authority discusses any:
(1) matter which, by express provision of federal law, State statute, or rule of court shall be rendered confidential;
(2) matter in which the release of information would impair a right to receive funds from the government of the United States;
(3) material the disclosure of which constitutes an unwarranted invasion of individual privacy, unless the individual concerned shall request in writing that the material be disclosed publicly;
(4) collective bargaining agreement, or the terms and conditions which are proposed for inclusion in any collective bargaining agreement, including the negotiation of the terms and conditions thereof with employees or representatives of employees of the port authority;
(5) matter involving the purchase, lease, or acquisition of real property with port authority funds, the setting of banking rates, or investment of port authority funds, if it could adversely affect the public interest if discussion of the matters were disclosed;
(6) tactics and techniques utilized in protecting the safety and property of the public, provided that their disclosure could impair that protection, or investigations of violations or possible violations of law;
(7) pending or anticipated litigation or contract negotiation in which the port authority is, or may become, a party, or matters falling within the attorney-client privilege, to the extent that confidentiality is required in order for the attorney to exercise the attorney's ethical duties as a lawyer;
(8) matter involving the employment, appointment, termination of employment, terms and conditions of employment, evaluation of the performance, promotion, or disciplining of any specific prospective officer or employee or current officer or employee employed by or appointed to the port authority, unless all the individual employees or appointees whose rights could be adversely affected request in writing that the matter or matters be discussed at a public meeting; or
(9) deliberations of the port authority occurring after a public hearing that may result in the imposition of a specific civil penalty upon the responding party or the suspension or loss of a license or permit belonging to the responding party as a result of an act or omission for which the responding party bears responsibility.
e. The port authority shall keep reasonably comprehensible minutes of all its meetings showing the time and place, the members present, the subjects considered, the actions taken, and the vote of each member, which shall be promptly available to the public to the extent that making the matters public shall not be otherwise inconsistent with this section.
(cf: P.L.1991, c.395, s.3)
3. R.S.32:1-15 is amended to read as follows:
ARTICLE XIV.
The port authority shall elect from its number a [chairman, vice chairman, and] chairperson and vice chairperson to serve for concurrent two-year terms. The chairperson and vice chairperson shall not be appointees from the same state. Except to fill a vacancy for the unexpired term of a chairperson or vice chairperson, a chairperson shall not serve from the same state as the preceding chairperson and a vice chairperson shall not serve from the same state as the preceding vice chairperson.
Each commissioner shall exercise independent judgment in voting for a chairperson and vice chairperson, and a commissioner shall not be bound by any recommendation for a chairperson or vice chairperson that may be made by the governor or the legislature of either state.
The board of commissioners of the port authority shall select an executive director following a thorough and deliberative national search to fill the position. The executive director shall serve for a term of five years and may be reappointed. The executive director, with the approval of the board of commissioners, may appoint [such] officers and employees, including a deputy executive director, as [it] the executive director may require for the performance of [its] port authority duties, and the executive director shall fix and determine their qualifications and duties. If the executive director shall determine to appoint a deputy executive director, the deputy executive director shall be appointed by and report to the executive director.
(cf: R.S.32:1-15)
4. R.S.32:1-17 is amended to read as follows:
ARTICLE XVI.
Unless and until otherwise determined by the action of the legislatures of the two states, [no] an action of the port authority shall not be binding unless taken at a meeting at which at least three of the members from each state are present, and unless a majority of the members from each state present at [such] the meeting but in any event at least three of the members from each state shall vote in favor thereof. [Each state reserves the right to provide by law for the exercise of a veto power by the governor thereof over any action of any commissioner appointed therefrom.]
(cf: R.S.32:1-17)
5. Section 12 of P.L.1962, c.8 (C.32:1-35.61) is amended to read as follows:
12. All details of the effectuation, including, but not limited to, details of financing, leasing, rentals, tolls, fares, fees, and other charges, rates, contracts, and service, of the world trade center, the Hudson tubes, and the Hudson tubes extensions by the port authority shall be within its sole discretion and its decision in connection with any and all matters concerning the world trade center, the Hudson tubes and the Hudson tubes extensions shall be controlling and conclusive. The local laws, resolutions, ordinances, rules, and regulations of the city of New York shall apply to [such] the world trade center if so provided in any agreement between the port authority and the city of New York and to the extent provided in any [such] agreement.
So long as any facility constituting a portion of the port development project shall be owned, controlled, or operated by the port authority [(] , either directly or through a subsidiary corporation incorporated for any of the purposes of [this act)] P.L.1962, c.8 (C.32:1-35.50 et seq.) , [no] an agency, commission, or municipality of either or both of the [2 States] two states shall not have jurisdiction over [such] the facility nor shall any [such] agency, commission, or municipality have any jurisdiction over the terms or method of effectuation of all or any portion thereof by the port authority [(], or [such] a subsidiary corporation[)] including , but not limited to, the transfer of all or any portion thereof to or by the port authority [(], or [such] a subsidiary corporation[)].
Nothing in [this act] P.L.1962, c.8 (C.32:1-35.50 et seq.) shall be deemed to prevent the port authority from establishing, acquiring, owning, leasing, constructing, effectuating, developing, maintaining, operating, rehabilitating, or improving all or any portion of the port development project through wholly owned subsidiary corporations of the port authority or from transferring to or from any [such] corporations any moneys, real property or other property for any of the purposes of [this act] P.L.1962, c.8 (C.32:1-35.50 et seq.). If the port authority shall determine from time to time to form [such] a subsidiary corporation, it shall do so by executing and filing with the Secretary of State of New York and the Secretary of State of New Jersey a certificate of incorporation, which may be amended from time to time by similar filing, which shall set forth the name of [such] the subsidiary corporation, its duration, the location of its principal office, and the purposes of the incorporation which shall be one or more of the purposes of establishing, acquiring, owning, leasing, constructing, effectuating, developing, maintaining, operating, rehabilitating, or improving all or any portion of the port development project. The directors of [such] the subsidiary corporation shall be the same persons holding the offices of commissioners of the port authority. [Such] The subsidiary corporation shall have all the powers vested in the port authority itself for the purposes of [this act] P.L.1962, c.8 (C.32:1-35.50 et seq.) except that it shall not have the power to contract indebtedness. [Such] The subsidiary corporation and any of its property, functions, and activities shall have all of the privileges, immunities, tax exemptions, and other exemptions of the port authority and of the port authority's property, functions, and activities. [Such] The subsidiary corporation shall be subject to the restrictions and limitations to which the port authority may be subject [, including, but not limited to the requirement that no action taken at any meeting of the board of directors of such subsidiary corporation shall have force or effect until the Governors of the 2 States shall have an opportunity, in the same manner and within the same time as now or hereafter provided by law for approval or veto of actions taken at any meeting of the port authority itself, to approve or veto such action]. [Such] The subsidiary corporation shall be subject to suit in accordance with section 9 of [this act] P.L.1962, c.8 (C.32:1-35.58) and chapter 301 of the laws of New York of 1950 and chapter 204 of the laws of New Jersey of 1951 as if [such] the subsidiary corporation were the port authority itself. [Such] The subsidiary corporation shall not be a participating employer under the New York Retirement and Social Security law or any similar law of either State and the employees of [any such] the subsidiary corporation, except those who are also employees of the port authority, shall not be deemed employees of the port authority.
Whenever any State, municipality, commission, agency, officer, department, board, or division is authorized and empowered for any of the purposes of [this act] P.L.1962, c.8 (C.32:1-35.50 et seq.) to co-operate and enter into agreements with the port authority or to grant any consent to the port authority or to grant, convey, lease, or otherwise transfer any property to the port authority or to execute any document, [such] the State, municipality, commission, agency, officer, department, board, or division shall have the same authorization and power for any of [such] those purposes to co-operate and enter into agreements with [such] the subsidiary corporation and to grant consents to [such] the subsidiary corporation and to grant, convey, lease, or otherwise transfer property to [such] the subsidiary corporation and to execute documents for [such] the subsidiary corporation.
(cf: P.L.1962, c.8, s.12)
6. Section 12 of P.L.1978, c.110 (C.32:1-35.83) is amended to read as follows:
12. Except as otherwise specifically provided, all details of the effectuation, including, but not limited to, details of financing, leasing, rentals, fees, and other charges, rates, contracts, and services, of industrial development projects or facilities by the port authority shall be within its sole discretion and its decision in connection with any and all matters concerning industrial development projects or facilities shall be controlling and conclusive; provided that the construction and operation of any [such] industrial development project or facility shall conform to the environmental and solid waste disposal standards and any state and county plans therefore in the state in which such project or facility is located. At least 90 days prior to the authorization by the port authority of the first contract for the construction of any industrial development project or facility, the port authority shall transmit to the Governor of the state in which [such] the project or facility is to be located a statement as to the conformance of [such] the industrial development project or facility with [such] the environmental and solid waste disposal standards and any state and county plans therefor, and shall consult with [such] the Governor or [his] the Governor's designee with respect thereto. The port authority and the city, town, township, or village in which any industrial development project or facility is to be located and for whose benefit [such] the project or facility is undertaken are hereby authorized and empowered to enter into an agreement or agreements to provide which local laws, resolutions, ordinances, rules, and regulations, if any, of [such] the city, town, township, or village affecting any industrial development project or facility shall apply to [such] the project or facility. All other existing local laws, resolutions, ordinances, or rules and regulations not provided for in [such] the agreement shall be applicable to [such] industrial development projects or facilities. All [such] local laws, resolutions, ordinances or rules and regulations enacted after the date of [such] the agreement or agreements shall not be applicable to [such] the projects or facilities unless made applicable by [such] the agreement or agreements or any modification or modifications thereto.
So long as any facility constituting a portion of any industrial development project or facility shall be owned, controlled, or operated by the port authority, [no] a public authority, agency, commission, or municipality of either or both of the two states shall not have jurisdiction over [such] the project or facility nor shall any [such] public authority, agency, commission, or municipality have any jurisdiction over the terms or method of effectuation of all or any portion thereof by the port authority including, but not limited to, the transfer of all or any portion thereof to or by the port authority; provided, however, the port authority is authorized and empowered to submit to the jurisdiction over [such] the project or facility of either state or any department thereof or any [such] public authority, agency, commission, or municipality when the exercise of [such] jurisdiction is necessary for the administration or implementation of Federal environmental or solid waste disposal laws by either state.
Nothing in [this act] P.L.1978, c.110 (C.32:1-35.72 et seq.) shall be deemed to prevent the port authority from establishing, acquiring, owning, leasing, constructing, effectuating, developing, maintaining, operating, rehabilitating, improving, selling, transferring, or mortgaging all or any portion of any industrial development project or facility through wholly owned subsidiary corporations of the port authority or subsidiary corporations owned by the port authority jointly with any public authority, agency, or commission of either or both of the two states, or from transferring to or from any [such] subsidiary corporations any moneys, real property or other property for any of the purposes of [this act] P.L.1978, c.110 (C.32:1-35.72 et seq.). If the port authority shall determine from time to time to form [such] a subsidiary corporation, it shall do so by executing and filing with the Secretary of State of the State of New York and the Secretary of State of the State of New Jersey a certificate of incorporation, which may be amended from time to time by similar filing, which shall set forth the name of [such] the subsidiary corporation, its duration, the location of its principal office, any joint owners thereof, and the purposes of the subsidiary corporation which shall be one or more of the purposes of establishing, acquiring, owning, leasing, constructing, effectuating, developing, maintaining, operating, rehabilitating, improving, selling, transferring, or mortgaging all or any portion of any industrial development project or facility. The directors of [such] the subsidiary corporation shall be the same persons holding the offices of commissioners of the port authority together with persons representing any joint owner thereof as provided for in the agreement in connection with the incorporation thereof. [Such] The subsidiary corporation shall have all the powers vested in the port authority itself for the purposes of [this act] P.L.1978, c.110 (C.32:1-35.72 et seq.) except that it shall not have the power to contract indebtedness. [Such] The subsidiary corporation and any of its property, functions, and activities shall have all of the privileges, immunities, tax exemptions, and other exemptions of the port authority and of the port authority's property, functions, and activities. [Such] The subsidiary corporation shall be subject to the restrictions and limitations to which the port authority may be subject [, including, but not limited to the requirement that no action taken at any meeting of the board of directors of such subsidiary corporation shall have force or effect until the Governors of the two states shall have an opportunity, in the same manner and within the same time as now or hereafter provided by law for approval or veto of actions taken at any meeting of the port authority itself, to approve or veto such action]. [Such] The subsidiary corporation shall be subject to suit in accordance with section 9 of [this act] P.L.1978, c.110 (C.32:1-35.80 et seq.) and chapter 301 of the laws of New York of 1950 and chapter 204 of the laws of New Jersey of 1951 as if [such] the subsidiary corporation were the port authority itself. [Such] The subsidiary corporation may be a participating employer under the New York retirement and social security law or any similar law of either state and the employees of [any such] the subsidiary corporation, except those who are also employees of the port authority, shall not be deemed employees of the port authority.
Whenever any state, municipality, commission, public authority, agency, officer, department, board, or division is authorized and empowered for any of the purposes of [this act] P.L.1978, c.110 (C.32:1-35.72 et seq.) to cooperate and enter into agreements with the port authority or to grant any consent to the port authority or to grant, convey, lease, or otherwise transfer any property to the port authority or to execute any document, [such] the state, municipality, commission, public authority, agency, officer, department, board, or division shall have the same authorization and power for any of [such] those purposes to cooperate and enter into agreements with [such] the subsidiary corporation and to grant consents to [such] the subsidiary corporation and to grant, convey, lease, or otherwise transfer property to [such] the subsidiary corporation and to execute documents for [such] the subsidiary corporation.
(cf: P.L.1978, c.110, s.12)
7. (New section) a. It is the mission of the port authority to facilitate the movement of cargo, vehicles, and people and to construct terminal, transportation, and other facilities of commerce in the Port District as described in R.S.32:1-3.
b. The executive director of the port authority and chairperson of the board of commissioners of the port authority shall evaluate each current port authority project and execute a written certification of whether the project supports the port authority's mission as provided in this section. If the executive director and the chairperson determine that a current port authority project does not support the port authority's mission as provided in subsection a. of this section, the port authority shall develop a plan to divest itself of the project and shall divest itself of the project in accordance with that plan.
c. For the purposes of this section, "project" means any undertaking or program for the acquisition or creation of any crossing, transportation facility or terminal facility, or commerce facility or development, or any part thereof, as well as for the operation, maintenance, and improvement thereof.
8. (New section) a. The Port Authority of New York and New Jersey shall be subject to the provisions of New York's Freedom of Information Law pursuant to NY Pub.Off.Law ss.84-90, and to the provisions of P.L.1963, c.73 (C.47:1A-1 et seq.), commonly known as the open public records act.
b. If, pursuant to subsection a. of this section, a record of the port authority is subject to public access under the laws of either the State of New York or the State of New Jersey, but not subject to public access under the laws of the other state, the record shall be made readily accessible, upon request, for inspection, copying, or examination, notwithstanding that the laws of the other state do not provide for public access.
c. A person who is denied access to a government record by the custodian of the record, at the option of the requestor, may:
(1) institute a proceeding to challenge the custodian's decision by filing an action in either state which shall be heard in the vicinage where the proceeding is filed by a judge who has been designated to hear government access records cases because of that judge's knowledge and expertise in matters relating to access to government records; or
(2) in lieu of filing an action in court, file a complaint with the Government Records Council established pursuant to section 8 of P.L.2001, c.404 (C.47:1A-7).
The right to institute any proceeding under this subsection shall be solely that of the requestor. Any proceeding shall proceed in a summary or expedited manner. The port authority shall have the burden of proving that the denial of access is authorized by law. If it is determined that access has been improperly denied, the court or the Government Records Council shall order that access be allowed. A requestor who prevails in any proceeding shall be entitled to reasonable attorney's fees.
9. (New section) a. The port authority shall conduct a cost-benefit analysis for all proposed projects. The cost-benefit analysis shall include, but not be limited to: the reason for the project; a list of project alternatives; the anticipated economic benefits of the project, including any expected job creation benefits; and the anticipated direct and indirect costs of the project to all stakeholders.
b. For the purposes of this section, "project" means any undertaking or program for the acquisition or creation of any crossing, transportation facility or terminal facility, or commerce facility or development, or any part thereof, as well as for the operation, maintenance, and improvement thereof.
10. (New section) a. The port authority shall submit to the governor, state comptroller, and legislatures of each state, and to the members of the transportation committee of each house of each legislature in each state, within 90 days after the end of the port authority's fiscal year, a complete and detailed report. This report shall include, but not be limited to:
(1) financial reports certified by the chairperson and vice-chairperson of the board and the executive director and chief financial officer of the port authority, including:
(a) audited financial statements in accordance with generally accepted accounting principles, known as GAAP, and the accounting standards issued by the Governmental Accounting Standards Board, known as GASB,
(b) grant and subsidy programs,
(c) operating and financial risks,
(d) current ratings, if any, of its bonds issued by recognized bond rating agencies, and notice of changes in these ratings, and
(e) long-term liabilities, including leases and employee benefit plans;
(2) at a minimum, a five-year financial plan, including:
(a) a current and projected capital budget, and
(b) an operating budget report, including an actual versus estimated budget, with an analysis and measurement of financial and operating performance;
(3) a schedule of port authority bonds and notes outstanding at the end of the port authority's fiscal year, together with a statement of the amounts redeemed and incurred during that fiscal year as part of a schedule of debt issuance that includes the date of issuance, term, amount, interest rate, and means of repayment. Additionally, the debt schedule shall include all refinancings, calls, refundings, defeasements, and interest rate exchange or other agreements, and for any debt issued during the reporting year, the schedule shall also include a detailed list of costs of issuance for its debt; and
(4) an analysis of the likelihood of future toll increases.
b. The port authority shall annually review its operations to determine whether port authority costs and expenses can be reduced by entering into agreements with private entities to conduct certain port authority operations or provide services on behalf of the port authority, as identified in the port authority's review. The port authority shall report the findings of its review, pursuant to this subsection, not later than 12 months following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), and annually thereafter, to the governor and legislatures of New York and New Jersey and to the members of the transportation committee of each house of each legislature in each state.
11. (New section) a. Each port authority commissioner shall perform the duties of a board member in good faith and with that degree of diligence, care, and skill which an ordinarily prudent person in similar position would exercise under similar circumstances, and may take into consideration the views and policies of any elected official or body, or other person, and ultimately apply independent judgment in the best interest of the port authority, its mission, and the public.
b. At the time that a commissioner takes and subscribes the oath of office, or within 60 days after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) if the commissioner has already taken and subscribed the oath of office, the commissioner shall execute an acknowledgement in which the commissioner acknowledges that the commissioner understands the commissioner's role, fiduciary duty, duty of loyalty and care to the port authority, and commitment to the port authority's mission and the public interest.
12. (New section) a. A person shall not be chosen to be a commissioner of the port authority if: that person has any interest in, or is employed by, any partnership, firm, corporation, or other entity that engages in any business, transaction, or professional activity with, or incurs any obligation of any nature with the port authority, the State of New York, the State of New Jersey, the Metropolitan Transportation Authority, or the New Jersey Transit Corporation.
b. On or after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), a person chosen as a commissioner of the port authority shall not have any interest in, or be employed by, a partnership, firm, corporation, or other entity that engages in any business, transaction, or professional activity or incurs any obligation of any nature with the port authority, the State of New Jersey, the Metropolitan Transportation Authority, or the New Jersey Transit Corporation at any time during the person's term as a commissioner and for a period of two years commencing on the date the person's term as a commissioner terminates.
c. For the purposes of this section, "interest" means the ownership or control of more than one percent of the profits of a partnership, firm, corporation, or other entity, or more than one percent of the stock in any corporation.
13. (New section) a. Each port authority commissioner shall disclose to the board any conflicts, or the appearance of a conflict, of a personal, financial, ethical, or professional nature that could inhibit the commissioner from performing the commissioner's duties in good faith or with due diligence and care.
b. The commissioner shall annually certify that the commissioner does not have any interest, financial or otherwise, direct or indirect, or engage in any business or transaction or professional activity or incur any obligation of any nature, which is in substantial conflict with the proper discharge of the commissioner's duties.
c. A commissioner shall not vote on, or participate in any board or committee discussions with respect to, any agenda item if the board member, a member of the board member's immediate family, or a business organization in which the board member has an interest, has a direct or indirect financial involvement that may reasonably be expected to impair the board member's objectivity or independence of judgment or to create the appearance of impropriety. The board member shall be recused from any discussions or voting on the agenda item. A board member shall clearly indicate the board member's recusal from voting on an agenda item and the minutes shall clearly reflect that recusal.
14. (New section) a. Notwithstanding any other provisions of law to the contrary, a commissioner of the port authority shall file an annual financial disclosure statement. Each statement filed pursuant to this subsection shall include the following information:
(1) The person's name and position;
(2) Any occupation, trade, business, profession, or employment engaged in by the person, the person's spouse, domestic partner, or partner in a civil union, and the person's dependent children;
(3) A list of all assets having a value of more than $1,000, both tangible and intangible, in which a direct or indirect interest is held, as of the statement date, by the person, the person's spouse, domestic partner, or partner in a civil union, and the person's dependent children;
(4) A list of all liabilities of the person, the person's spouse, domestic partner, or partner in a civil union, and the person's dependent children;
(5) A list of all liabilities otherwise subject to disclosure pursuant to this subsection which have been forgiven by a creditor within 12 months of the statement date and the name of the creditor to whom the liability was owed.
(6) A list of all sources of income of the person, the person's spouse, domestic partner, or partner in a civil union, and the person's dependent children; and
(7) A list of any offices, trusteeships, directorships, or positions of any nature, whether compensated or uncompensated, held by the person, the person's spouse, domestic partner, or partner in a civil union, and the person's dependent children with any firm, corporation, association, partnership, or business.
b. Each statement shall contain a certification by the person that the person has read the statement, that to the best of the person's knowledge and belief it is true, correct, and complete, and that the person has not transferred and will not transfer any asset, interest, or property for the purpose of concealing it from disclosure while retaining an equitable interest therein.
c. (1) A commissioner appointed by the Governor of New York who is required to file annual disclosure statements pursuant to this section shall be subject to the provisions, including the enforcement provisions, of section seventy-three-A of the Public Officers Law of New York.
(2) A commissioner appointed by the Governor of New Jersey who is required to file an annual disclosure statement pursuant to this section shall be subject to the provisions, including the enforcement provisions, of the "New Jersey Conflicts of Interest Law," P.L.1971, c.182 (C.52:13D-12 et seq.).
d. The failure of any person to comply with the provisions of this section shall constitute good cause for the person's removal from employment or office.
15. (New section) a. (1) Not less than 60 days prior to adoption by the port authority of any increase in any fee, toll, charge, or fare for the use of the transportation facilities of the authority, the board shall conduct at least 10 public hearings.
(2) Not less than one public hearing required pursuant to paragraph (1) of this subsection shall be conducted in each county in New York and New Jersey directly affected by the proposed fee, toll, charge, or fare increase, as determined by the board in consultation with local and state officials.
b. Each public hearing shall be attended by the executive director and at least two of the commissioners appointed from the State of New York and two of the commissioners appointed from the State of New Jersey.
c. No more than one public hearing may be held in a single day, and at least one-half of the public hearings shall be scheduled to begin after 6:30 p.m., Eastern Standard Time, on a weekday.
d. Each hearing shall be transcribed and the transcript shall be circulated to each commissioner within 10 days of the hearing.
e. If the port authority votes to increase any fee, toll, charge, or fare for the use of a port authority transportation facility, the increase shall not go into effect until, at minimum, 90 days following the date of adoption of the increase.
16. (New section) a. The port authority, at the request of either house of the legislature of either New York or New Jersey, shall be required to:
(1) appear before a committee of the requesting state legislature to present testimony on any topic or subject requested by the committee. The port authority shall, at a minimum, be represented by the chairperson or vice-chairperson of the board, the executive director or deputy executive director, the chief financial officer, and any staff deemed necessary by the chairperson or vice-chairperson of the board, the executive director or deputy executive director, or the chief financial officer to present testimony or respond to questions at any appearance required pursuant to this section. The committee may require the appearance of any officer or employee of the port authority;
(2) respond to questions by members of the committee; and
(3) produce any books, papers, accounts, records, and documents requested in writing by the committee.
17. (New section) The port authority shall provide advance notice of any planned project or operation which is expected to impede the normal operation of any port authority facility by:
a. providing advance written notice to the mayor and municipal emergency management coordinator in every municipality within five miles of the facility;
b. providing advance notification of the project or operation to newspapers of general circulation in each county and municipality in which the transportation facility is located; and
c. using variable message signs to inform motorists of any operation which is expected to impede the free flow of traffic.
18. (New section) a. The port authority shall establish a system for determining whether each of its transportation facilities and railroads is in a state of good repair. This system shall include an analysis including, but not limited to, the age, condition, investment needs, maintenance costs, availability, capability, reliability, and service quality of each facility and railroad and a categorization of each facility and railroad as a high, medium, or low priority based upon that analysis.
b. The port authority shall annually issue a report listing each of its transportation facilities and railroads and the facility or railroad's categorization as a high, medium, or low priority pursuant to subsection a. of this section. For each high priority facility or railroad, the list shall include projects necessary to reduce the priority of that facility or railroad to medium or low priority and when those steps will be taken.
c. At least 48 hours in advance of any meeting of the board of commissioners at which the board is to vote to approve any project, the port authority shall make available to the public on its Internet website, a list of every port authority transportation facility and railroad and the categorization of each facility and railroad as a high, medium, or low priority according to the system established pursuant to subsection a. of this section.
d. Beginning with the capital plan prepared for the fiscal year beginning two years following the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), the board of commissioners of the port authority shall not vote to approve any new project if it has not included every high priority transportation facility or railroad project in its capital plan.
e. For the purposes of this section:
"Project" means any undertaking or program for the acquisition, creation, development, operation, maintenance, or improvement of any transportation facility or terminal facility.
"Railroad" shall have the same meaning as provided in R.S.32:1-23.
"State of good repair" means a condition in which the transportation facility or railroad is functioning as designed within its useful service life and is sustained through a regular maintenance and replacement program.
"Transportation facility" shall have the same meaning as provided in R.S.32:1-23.
19. (New section) a. The port authority shall review the current boundaries of the port district as provided in R.S.32:1-3 and shall prepare a report proposing new boundaries for the port district. The proposed new boundaries shall include, but not be limited to, all areas of the states of New Jersey and New York where facilities currently owned or operated by the port authority are located and any other area in New Jersey or the New York metropolitan area that supports the interstate movement of cargo, vehicles, or people, including, but not limited to, areas in Bergen, Middlesex, and Monmouth Counties in New Jersey and the Borough of Staten Island in New York, not currently included within the boundaries of the port district.
b. Not later than six months following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the port authority shall provide its report to the legislatures of New York and New Jersey.
20. (New section) a. There is hereby established the Citizens Advisory Committee to the Port Authority of New York and New Jersey.
b. The citizens advisory committee shall consist of 18 members, each serving for a two-year term, to be selected by the Port Authority board of commissioners as follows:
(1) One representative from the New Jersey Transit Corporation;
(2) One representative from the Metropolitan Transportation Authority;
(3) One representative from the New Jersey Department of Environmental Protection;
(4) One representative from the New York State Department of Environmental Conservation;
(5) One representative of the pilotage services industry;
(6) One representative of the cruise operations and passenger ship industry;
(7) Two representatives of the shipping industry, one from New Jersey and one from New York;
(8) Two representatives of the railroad industry, one from New Jersey and one from New York;
(9) Two representatives of railroad passengers, one from New Jersey and one from New York;
(10) Two representatives of longshoremen and waterfront labor, one from New Jersey and one from New York;
(11) Two representatives of warehouses and distribution centers, one from New Jersey and one from New York; and
(12) Two representatives of transportation workers, operators, fabricators, and laborers, one from New Jersey and one from New York.
c. The citizens advisory committee may select from among its membership any officers that it deems appropriate. The citizens advisory committee may adopt by-laws for the conduct of business by the committee and may schedule meetings as the committee deems necessary to fulfill its mission.
d. (1) The citizens advisory committee shall act as an independent representative and advocate on behalf of the users and potential users of port authority facilities and of the several industries that operate within the port district. The major concerns of the citizens advisory committee shall be transportation services, bridge tolls, fares, policies, financing and planning, and accountability, transparency, and efficiency of port authority transportation assets including reliability, frequency, speed, cleanliness, safety, and security at port authority facilities and within the port district.
(2) To achieve its purposes, the citizens advisory committee shall receive and review comprehensive plans, current and proposed capital and operating budgets, current and proposed rate structures, and other matters of concern to all persons served by the port authority. The citizens advisory committee shall seek to advise the port authority board of commissioners prior to actions being taken on the foregoing. The citizens advisory committee is authorized to formulate proposals, suggestions, and plans to be submitted to the port authority board of commissioners. The citizens advisory committee may solicit and receive public input concerning the port authority.
e. (1) Members of the citizens advisory committee may attend, and shall be granted admission to, all meetings of the port authority board of commissioners. Prior to or following any meeting of the board of commissioners, the citizens advisory committee may meet on its own to discuss any issues from previous meetings of the board of commissioners or that are expected to arise in future meetings of the board of commissioners.
(2) The port authority board of commissioners shall allocate a reasonable amount of time for each agenda item at each meeting of the board of commissioners for each member of the citizens advisory committee who wishes to advise the board of commissioners concerning the agenda item.
f. The members of the citizens advisory committee shall appoint one person from New York and one person from New Jersey to serve as commissioners to the port authority pursuant to the provisions of paragraph (4) of subsection a. and paragraph (4) of subsection b. of R.S.32:1-5.
21. (New section) a. There shall be established an Office of the Inspector General in the port authority. The office shall be independent of any supervision or control by the port authority or the board of commissioners thereof.
b. The Office of the Inspector General shall be administered by the Inspector General. The Inspector General shall be appointed by joint recommendation of the governors of New Jersey and New York.
c. The Inspector General shall serve for one term of six years and until a successor is appointed and qualified. A person who has served as Inspector General, including an unexpired term, shall not be eligible for reappointment as the Inspector General.
d. The Inspector General shall devote full time to the duties and responsibilities of the office.
e. A vacancy in the position of Inspector General due to a cause other than the expiration of the term shall be filled for the unexpired term in the same manner as the original appointment.
f. A person who holds the position of Inspector General, or any position of employment as professional staff in the Office of Inspector General, while holding that office or position, shall not: (1) be a candidate for election to, or hold, any elective public office or any office or position with any political party or club; or (2) in connection with another individual's candidacy for public office, sign or authorize the use of that person's name in connection with political or campaign literature or material, or print, publish, or distribute political or campaign literature or material.
g. The Inspector General shall establish the internal organizational structure of the office in a manner appropriate for carrying out the duties and functions, and fulfilling the responsibilities, of the office. The Inspector General shall have the power to appoint, employ, promote, and remove assistants, employees, and personnel as the Inspector General deems necessary for the efficient and effective administration of the office.
h. The Inspector General may obtain the services of certified public accountants, qualified management consultants, and other professionals necessary to independently perform the duties and functions of the office.
i. The Inspector General may call upon any department, office, or division of the port authority to provide any information, resources, or other assistance deemed necessary to discharge the duties and functions and to fulfill the responsibilities of the Inspector General under this section and sections 22 through section 26 of P.L. , c. (C. ) (pending before the Legislature as this bill). Each department, office, and division of the port authority shall cooperate with the Inspector General and furnish the office with the assistance necessary to accomplish the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill).
j. (1) The port authority shall provide the Office of Inspector General with a budget sufficient for the Office of Inspector General to discharge the duties and functions and to fulfill the responsibilities provided under this section and sections 22 through 26 of P.L. , c. (C. ) (pending before the Legislature as this bill).
(2) If, in any fiscal year, the Inspector General determines that the budget provided to the Office of Inspector General by the port authority is not sufficient for the Office of Inspector General to discharge the duties and functions and to fulfill the responsibilities provided under this section and sections 22 through 26 of P.L. , c. (C. ) (pending before the Legislature as this bill), the Inspector General may petition the governor of New York and the Governor of New Jersey for a review of the budget.
(3) The governor of New York and the Governor of New Jersey are authorized to review the petition submitted by the Inspector General pursuant to paragraph (2) of this subsection and to jointly direct the port authority to adjust the budget.
(4) Upon receipt of direction from the governors pursuant to paragraph (3) of this subsection, the port authority shall adjust the budget to conform with the governors' joint direction.
22. (New section) a. The port authority shall promptly notify the Office of Inspector General of any audits of the port authority and shall provide full assistance and cooperation with any audit, performance review, or contract review by the Office of Inspector General.
b. (1) The port authority shall provide notice to the Office of Inspector General no later than five business days after the award of a contract involving consideration or an expenditure of more than $2,000,000 but less than $10,000,000.
(2) The port authority shall inform the Office of Inspector General in writing, in a form to be determined by the Inspector General, of the commencement of any procurement process involving consideration or an expenditure of $10,000,000 or more at the earliest time practicable as the port authority commences the procurement process, but no later than the time the port authority commences preparation of: any bid specification or request for proposal; concession offering; proposal to purchase, sell, or lease real estate; or other related activities and contracts.
23. (New section) a. The Office of the Inspector General shall conduct routine, periodic, and random audits of the port authority and shall conduct assessments of the performance and management of programs of the port authority and the extent to which the port authority is achieving its goals and objectives. The office shall conduct audits and reviews in accordance with prevailing national and professional standards, rules, and practices relating to those audits and reviews in government environments, including the standards for performance reviews utilized by the United States Government Accountability Office or its successor, and the Inspector General shall ensure that the office remains in compliance with those standards, rules, and practices.
b. The Office of Inspector General may audit and monitor the process of soliciting proposals for and awarding contracts made by the port authority that involve a significant consideration or expenditure of funds or are comprised of complex or unique components, or both, as determined by the Inspector General.
c. The Office of Inspector General shall undertake an analysis and review of the certified financial audits of the port authority and of the procedures used to conduct those audits. When the office's analysis and review identifies weaknesses, inadequacies, or failures in the port authority's financial controls or concerns about the quality or independence of the audits, the office may undertake a financial audit or other steps as the Inspector General deems appropriate. In determining when to proceed with a financial audit, the office may also take into account information obtained pursuant to section 22 of P.L. , c. (C. ) (pending before the Legislature as this bill) and subsections a. and g. of this section; referrals or recommendations from the port authority; or assessments or evaluations of the port authority's management, performance, or financial condition from federal or State government agencies.
d. The Office of Inspector General shall establish objective criteria for undertaking performance and other reviews authorized by P.L. , c. (C. ) (pending before the Legislature as this bill), which criteria shall weigh relevant risk factors, including, but not limited to: (1) the size of the port authority's budget, (2) the port authority's past performance, (3) the frequency, scope, and quality of any audits or reviews that have been performed regarding the port authority's financial condition or performance, (4) assessments or evaluations of the port authority's management, performance, or financial condition, and (5) other credible information which suggests the necessity of a review.
e. The Office of Inspector General shall provide guidance to units in the port authority that are required to engage outside auditors regarding procurement of their services, the rotation of the providers of those services, and the avoidance of possible conflicts of interest in the hiring of outside auditors.
f. (1) The Office of Inspector General shall establish a system that ensures that any officers and employees of the port authority who perform audits, investigations, or performance reviews similar or identical to those authorized to be performed by the office shall conduct those audits, investigations, and performance reviews with the consultation of, and in coordination and cooperation with, the office.
(2) For the purpose of establishing and maintaining this system, the Office of Inspector General shall meet at periodic intervals, but at least four times annually, with the officers or employees of the port authority deemed necessary for the office to perform audits, investigations, and performance reviews. The responsibility of all parties during these meetings shall be to: facilitate communication and exchange information on completed, current, and future audits, investigations, and reviews; avoid duplication and fragmentation of efforts; optimize the use of resources; avoid divisiveness and organizational uncertainty; promote effective working relationships; and avoid unnecessary expenditures.
g. The Office of Inspector General may issue subpoenas to compel attendance and testimony of persons and the production of books, papers, correspondence, and other documents. For this purpose, the office may administer oaths and examine witnesses under oath, and compel any person to produce at a specific time and place, by subpoena, any books, papers, correspondence, and other documents that the office reasonably believes may relate to the matter. If any person to whom a subpoena is issued fails to appear or, having appeared, refuses to give testimony, or fails to produce the books, papers, correspondence, and other documents, the office may apply to the a court of competent jurisdiction of either State and the court may order the person to appear and give testimony or produce the books, papers, correspondence, and other documents as applicable. Failure to obey the court's order may be punishable as contempt of court.
h. The Office of Inspector General shall have all the powers necessary to carry out the duties and functions and to fulfill the responsibilities described in this section, including the power to propose and enforce remediation plans for the port authority that are found by the office to have deficient practices or procedures.
24. (New section) a. The Inspector General shall report the findings of audits and reviews performed by the office, and issue recommendations for corrective or remedial action, to the governors of New Jersey and New York and to the members of the transportation committees of each house of the legislature in each state. The port authority shall fully cooperate with the Inspector General to develop recommendations for a corrective or remedial action plan. The Inspector General shall monitor the implementation of those recommendations and shall conduct subsequent reviews to determine whether there has been full implementation of and continued compliance with those recommendations.
b. The Inspector General shall report promptly to the governors of New Jersey and New York and to the members of the transportation committees of each house of the legislature in each state if the port authority refuses to cooperate in development of a corrective or remediation plan or to comply with a plan.
c. The Inspector General shall recommend that the governors and legislatures of New Jersey and New York initiate disciplinary proceedings against any official or employee of the port authority who impedes an audit, or who fails or refuses to cooperate in the development of a corrective or remedial action plan or to comply with a plan. The governors and legislatures of New Jersey and New York, individually or jointly, may cause an investigation to be made of the conduct of that official or employee and may require that official or employee to submit to the governors and legislatures of New Jersey and New York a written statement or statements, under oath, of information as the governors and legislatures of New Jersey and New York may call for relating to the official's or the employee's conduct alleged by the Inspector General. After notice, the service of charges, and an opportunity to be heard at a public hearing, the governors or legislatures of New Jersey and New York, as appropriate, individually or jointly, may remove that official or employee for cause. That official or employee shall have the right of judicial review, on both the law and the facts, in a manner as may be provided by law.
d. The Inspector General shall provide annual reports to the governors and legislatures of New Jersey and New York. The reports shall be available to the public. The reports shall include, but not be limited to, the reporting of any programmatic deficiencies and weaknesses that the Inspector General's audits, investigations, and reviews have found, and detailing the efforts by, or the failure of, the port authority to implement a recommended plan for corrective or remedial action.
25. (New section) a. The Office of Inspector General shall maintain a record of all matters referred to it and the responses received from the port authority and may disclose information received as appropriate and as may be necessary to resolve the matter referred, to the extent consistent with the public interest in disclosure and the need for protecting the confidentiality of complainants and informants and preserving the confidentiality of ongoing criminal investigations.
b. The Office of Inspector General shall have complete access to all records of the port authority, including all information deemed confidential by the port authority, provided, however, that any information deemed confidential shall directly relate to a program or expenditure that is the subject of an audit, performance review, or contract review by the office, and provided further that if the port authority provides the office with access to information that is subject to a confidentiality agreement, the port authority shall promptly notify the parties to the agreement that the information is being provided to the office.
c. Whenever a person requests access to a record that the Office of Inspector General obtained during the course of an audit, investigation, performance review, or contract review, which record was open for public inspection, examination, or copying before the audit, investigation, or review commenced, the port authority shall comply with the request, provided that the request does not in any way identify the record sought by means of a reference to the office's audit or review or to an investigation by the office, including, but not limited to, a reference to a subpoena issued pursuant to the office's investigation.
d. Private vendors or other persons contracting with or receiving funds from the port authority shall, upon request by the Office of Inspector General, provide the office with prompt access to all relevant documents and information as a condition of the contract and receipt of monies from the port authority. The office shall not disclose any document or information to which access is provided that is confidential or proprietary. If the office finds that any person receiving funds from the port authority refuses to provide information upon the request of the office, or otherwise impedes or fails to cooperate with any audit or performance review, the office may recommend to the port authority that the person be subject to termination of the contract, or temporarily or permanently debarred from contracting with the port authority. Nothing in this subsection shall be construed to interfere with contracts in existence on the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill).
26. (New section) a. The Inspector General is authorized to refer findings that may constitute alleged criminal conduct to the Attorney General of either state or other appropriate prosecutorial authority. In the course of conducting audits and performance reviews, the Inspector General may refer matters for investigation to the Attorney General of either state or other appropriate authorities for further civil or administrative action, with recommendations to initiate actions to recover monies, to terminate contracts, or temporarily or permanently debar any person from contracting with or receiving funds from the port authority.
b. When the Inspector General refers a complaint alleging criminal conduct to the Attorney General of either state or other appropriate prosecutorial authority and the Attorney General of either state or prosecutorial authority decides not to investigate or prosecute the matter, the Attorney General of either state or the prosecutorial authority shall promptly notify the Inspector General. The Attorney General of either state or the prosecutorial authority shall inform the Inspector General as to whether an investigation is ongoing with regard to any matter so referred. The Office of Inspector General shall preserve the confidentiality of the existence of any ongoing criminal investigation.
c. Upon completion of an investigation or, in a case where the investigation leads to prosecution, upon completion of the prosecution, the Attorney General of either state or the prosecutorial authority shall report promptly the findings and results to the Inspector General. In the course of informing the Inspector General, the Attorney General of either state or prosecutorial authority shall give full consideration to the authority, duties, functions, and responsibilities of the Inspector General, the public interest in disclosure, and the need for protecting the confidentiality of complainants and informants.
27. (New section) a. As used in this section:
"Supervisor" means any individual with the port authority who has the authority to direct and control the work performance of the affected employee, who has authority to take corrective action regarding the violation of the law, rule, or regulation of which the employee complains, or who has been designated by the port authority on the notice required pursuant to this section; and
"Retaliatory action" means the discharge, suspension, or demotion of an employee, or other adverse employment action taken against an employee in the terms and conditions of employment.
b. The port authority shall not take any retaliatory action against an employee because the employee does any of the following:
(1) Discloses, or threatens to disclose, to a supervisor, the Office of the Inspector General established pursuant to section 21 of P.L. , c. (C. ) (pending before the Legislature as this bill), or to the board of commissioners of the port authority, an activity, policy, or practice of the port authority that the employee reasonably believes is fraudulent, criminal, or otherwise in violation of a law, rule, or regulation;
(2) Provides information to, or testifies before, any public body conducting an investigation, hearing, or inquiry into any violation of a law, rule, or regulation by the port authority, or another employer, with whom there is a business relationship, including any violation involving deception of, or misrepresentation to, any shareholder, investor, client, customer, employee, former employee, or retiree of the port authority; or
(3) Objects to, or refuses to participate in any activity, policy, or practice which the employee reasonably believes:
(a) is fraudulent, criminal, or otherwise in violation of a law, rule, or regulation; or
(b) is incompatible with a clear mandate of public policy concerning the public health, safety or welfare, or protection of the environment.
c. The protection against retaliatory action provided by this section shall not apply unless the employee has brought the activity, policy, or practice to the attention of a supervisor of the employee by written notice and has afforded the port authority a reasonable opportunity to correct the activity, policy, or practice. Written notice shall not be required where the employee is reasonably certain that the activity, policy, or practice is known to one or more supervisors of the employee or where the employee reasonably fears physical harm as a result of the notice provided, however, that the situation is emergent in nature.
d. Upon a violation of any of the provisions of this section, an aggrieved employee or former employee may, within one year, institute a civil action in a court of competent jurisdiction in either State. Upon the application of any party, a jury trial shall be directed to try the validity of any claim under this section specified in the suit. All remedies available in common law tort actions shall be available to prevailing plaintiffs. These remedies are in addition to any legal or equitable relief provided by this section or any other statute. The court shall also order, where appropriate and to the fullest extent possible:
(1) An injunction to restrain any violation of this section which is continuing at the time that the court issues its order;
(2) The reinstatement of the employee to the same position held before the retaliatory action, or to an equivalent position;
(3) The reinstatement of full fringe benefits and seniority rights;
(4) The compensation for all lost wages, benefits, and other remuneration; and
(5) The payment by the port authority of reasonable costs, and attorney's fees.
In addition, the court or jury may order: the assessment of a civil fine of not more than $10,000 for the first violation of this section and not more than $20,000 for each subsequent violation, which shall be paid in equal shares to the State Treasurer of New Jersey and the State Treasurer of the State of New York for deposit in the General Fund of both states; punitive damages; or both a civil fine and punitive damages. In determining the amount of punitive damages, the court or jury shall consider not only the amount of compensatory damages awarded to the employee, but also the amount of all damages caused to investors, customers, employees, former employees, or retirees of the port authority by the activities, policies, or practices of the port authority which the employee disclosed, threatened to disclose, provided testimony regarding, objected to, or refused to participate in.
e. A court, upon notice of motion in accordance with any applicable rules of the courts of either state, may also order that reasonable attorneys' fees and court costs be awarded to the port authority if the court determines that an action brought by an employee under this section was without basis in law or in fact. However, an employee shall not be assessed attorneys' fees under this section if, after exercising reasonable and diligent efforts after filing a suit, the employee files a voluntary dismissal concerning the port authority, within a reasonable time after determining that the port authority would not be found to be liable for damages.
f. The port authority shall conspicuously display, and annually distribute to all employees, written or electronic notices of its employees' protections, obligations, rights, and procedures under this section, and use other appropriate means to keep its employees so informed. Each notice posted or distributed pursuant to this section shall be in English, Spanish, and at the port authority's discretion, any other language spoken by port authority employees. The notice shall include the name of the person or persons the port authority has designated to receive written notifications.
g. Nothing in this section shall be deemed to diminish the rights, privileges, or remedies of any employee under any other federal or State law or regulation or under any collective bargaining agreement or employment contract; except that the institution of an action pursuant to this section shall be deemed a waiver of the rights and remedies available under any other contract, collective bargaining agreement, State law, rule, or regulation, or under the common law.
28. (New section) a. The board of commissioners of the port authority shall appoint an employee of the port authority to the position of Government Liaison.
b. The duties and the responsibilities of the Government Liaison shall include, but not be limited to, receiving all correspondence from a representative of a public entity, including, but not limited to, the governors of New Jersey and New York, and the members of the legislatures of both states, to the port authority, originating all correspondence from the port authority to a public entity, and keeping and maintaining a record thereof.
c. All records kept and maintained, pursuant to subsection b. of this section, shall be subject to the provisions of New York's Freedom of Information Law pursuant to NY Pub.Off.Law ss.84-90, and to the provisions of P.L.1963, c.73 (C.47:1A-1 et seq.), commonly known as the open public records act.
29. The following sections are repealed:
Sections 1 through 3 of P.L.2007, c.75 (C.32:1-35.27e and C.32:1-35.27f);
R.S.32:2-3; and
R.S.32:2-6 through R.S.32:2-9.
30. Section 1 of P.L.1995, c.23 (C.47:1A-1.1) is amended to read as follows:
1. As used in P.L.1963, c.73 (C.47:1A-1 et seq.) as amended and supplemented:
"Biotechnology" means any technique that uses living organisms, or parts of living organisms, to make or modify products, to improve plants or animals, or to develop micro-organisms for specific uses; including the industrial use of recombinant DNA, cell fusion, and novel bioprocessing techniques.
"Custodian of a government record" or "custodian" means in the case of a municipality, the municipal clerk and in the case of any other public agency, the officer officially designated by formal action of that agency's director or governing body, as the case may be.
"Government record" or "record" means any paper, written or printed book, document, drawing, map, plan, photograph, microfilm, data processed or image processed document, information stored or maintained electronically or by sound-recording or in a similar device, or any copy thereof, that has been made, maintained, or kept on file in the course of [his] the officer's or its official business by any officer, commission, agency, or authority of the State or of any political subdivision thereof, including subordinate boards thereof, or that has been received in the course of [his] the officer's or its official business by any [such] officer, commission, agency, or authority of the State or of any political subdivision thereof, including subordinate boards thereof , or of the Port Authority of New York and New Jersey. The terms shall not include inter-agency or intra-agency advisory, consultative, or deliberative material.
A government record shall not include the following information which is deemed to be confidential for the purposes of P.L.1963, c.73 (C.47:1A-1 et seq.), as amended and supplemented:
information received by a member of the Legislature from a constituent or information held by a member of the Legislature concerning a constituent, including, but not limited to, information in written form or contained in any e-mail or computer data base, or in any telephone record whatsoever, unless it is information the constituent is required by law to transmit;
any memorandum, correspondence, notes, report, or other communication prepared by, or for, the specific use of a member of the Legislature in the course of the member's official duties, except that this provision shall not apply to an otherwise publicly-accessible report which is required by law to be submitted to the Legislature or its members;
any copy, reproduction, or facsimile of any photograph, negative, or print, including instant photographs and videotapes of the body, or any portion of the body, of a deceased person, taken by or for the medical examiner at the scene of death or in the course of a post mortem examination or autopsy made by or caused to be made by the medical examiner except:
when used in a criminal action or proceeding in this State which relates to the death of that person,
for the use as a court of this State permits, by order after good cause has been shown and after written notification of the request for the court order has been served at least five days before the order is made upon the county prosecutor for the county in which the post mortem examination or autopsy occurred,
for use in the field of forensic pathology or for use in medical or scientific education or research, or
for use by any law enforcement agency in this State or any other state or federal law enforcement agency;
criminal investigatory records;
victims' records, except that a victim of a crime shall have access to the victim's own records;
any written request by a crime victim for a record to which the victim is entitled to access as provided in this section, including, but not limited to, any law enforcement agency report, domestic violence offense report, and temporary or permanent restraining order;
personal firearms records, except for use by any person authorized by law to have access to these records or for use by any government agency, including any court or law enforcement agency, for purposes of the administration of justice;
personal identifying information received by the Division of Fish and Wildlife in the Department of Environmental Protection in connection with the issuance of any license authorizing hunting with a firearm. For the purposes of this paragraph, personal identifying information shall include, but not be limited to, identity, name, address, social security number, telephone number, [fax] facsimile number, driver's license number, [email] electronic mail address, or social media address of any applicant or licensee;
trade secrets and proprietary commercial or financial information obtained from any source. For the purposes of this paragraph, trade secrets shall include data processing software obtained by a public body under a licensing agreement which prohibits its disclosure;
any record within the attorney-client privilege. This paragraph shall not be construed as exempting from access attorney or consultant bills or invoices except that [such] the bills or invoices may be redacted to remove any information protected by the attorney-client privilege;
administrative or technical information regarding computer hardware, software and networks which, if disclosed, would jeopardize computer security;
emergency or security information or procedures for any buildings or facility which, if disclosed, would jeopardize security of the building or facility or persons therein;
security measures and surveillance techniques which, if disclosed, would create a risk to the safety of persons, property, electronic data, or software;
information which, if disclosed, would give an advantage to competitors or bidders;
information generated by or on behalf of public employers or public employees in connection with any sexual harassment complaint filed with a public employer or with any grievance filed by or against an individual or in connection with collective negotiations, including documents and statements of strategy or negotiating position;
information which is a communication between a public agency and its insurance carrier, administrative service organization, or risk management office;
information which is to be kept confidential pursuant to court order;
any copy of form DD-214, or that form, issued by the United States Government, or any other certificate of honorable discharge, or copy thereof, from active service or the reserves of a branch of the Armed Forces of the United States, or from service in the organized militia of the State, that has been filed by an individual with a public agency, except that a veteran or the veteran's spouse or surviving spouse shall have access to the veteran's own records; and
that portion of any document which discloses the social security number, credit card number, unlisted telephone number or driver license number of any person; except for use by any government agency, including any court or law enforcement agency, in carrying out its functions, or any private person or entity acting on behalf thereof, or any private person or entity seeking to enforce payment of court-ordered child support; except with respect to the disclosure of driver information by the New Jersey Motor Vehicle Commission as permitted by section 2 of P.L.1997, c.188 (C.39:2-3.4); and except that a social security number contained in a record required by law to be made, maintained, or kept on file by a public agency shall be disclosed when access to the document or disclosure of that information is not otherwise prohibited by State or federal law, regulation or order or by State statute, resolution of either or both houses of the Legislature, Executive Order of the Governor, rule of court or regulation promulgated under the authority of any statute, or executive order of the Governor.
A government record shall not include, with regard to any public institution of higher education, the following information which is deemed to be privileged and confidential:
pedagogical, scholarly [and/or] or academic research records [and/or] or the specific details of any research project conducted under the auspices of a public higher education institution in New Jersey, including, but not limited to, research[,] and development information, testing procedures, or information regarding test participants, related to the development or testing of any pharmaceutical or pharmaceutical delivery system, except that a custodian may not deny inspection of a government record or part thereof that gives the name, title, expenditures, source and amounts of funding, and date when the final project summary of any research will be available;
test questions, scoring keys, and other examination data pertaining to the administration of an examination for employment or academic examination;
records of pursuit of charitable contributions or records containing the identity of a donor of a gift if the donor requires non-disclosure of the donor's identity as a condition of making the gift provided that the donor has not received any benefits of or from the institution of higher education in connection with [such] the gift other than a request for memorialization or dedication;
valuable or rare collections of books [and/or] or documents obtained by gift, grant, bequest, or devise conditioned upon limited public access;
information contained on individual admission applications; and
information concerning student records or grievance or disciplinary proceedings against a student to the extent disclosure would reveal the identity of the student.
"Personal firearms record" means any information contained in a background investigation conducted by the chief of police, the county prosecutor, or the Superintendent of State Police, of any applicant for a permit to purchase a handgun, firearms identification card license, or firearms registration; any application for a permit to purchase a handgun, firearms identification card license, or firearms registration; any document reflecting the issuance or denial of a permit to purchase a handgun, firearms identification card license, or firearms registration; and any permit to purchase a handgun, firearms identification card license, or any firearms license, certification, certificate, form of register, or registration statement. For the purposes of this paragraph, information contained in a background investigation shall include, but not be limited to, the identity, name, address, social security number, phone number, [fax] facsimile number, driver's license number, [email] electronic mail address, social media address of any applicant, licensee, registrant, or permit holder.
"Public agency" or "agency" means any of the principal departments in the Executive Branch of State Government, and any division, board, bureau, office, commission, or other instrumentality within or created by [such] that department; the Legislature of the State and any office, board, bureau, or commission within or created by the Legislative Branch; [and] any independent State authority, commission, instrumentality or agency; and the Port Authority of New York and New Jersey. The terms shall also mean any political subdivision of the State or combination of political subdivisions, and any division, board, bureau, office, commission, or other instrumentality, within or created by a political subdivision of the State or combination of political subdivisions, and any independent authority, commission, instrumentality, or agency created by a political subdivision or combination of political subdivisions.
"Law enforcement agency" means a public agency, or part thereof, determined by the Attorney General to have law enforcement responsibilities.
"Constituent" means any State resident or other person communicating with a member of the Legislature.
"Member of the Legislature" means any person elected or selected to serve in the New Jersey Senate or General Assembly.
"Criminal investigatory record" means a record which is not required by law to be made, maintained, or kept on file that is held by a law enforcement agency which pertains to any criminal investigation or related civil enforcement proceeding.
"Victim's record" means an individually-identifiable file or document held by a victims' rights agency which pertains directly to a victim of a crime except that a victim of a crime shall have access to the victim's own records.
"Victim of a crime" means a person who has suffered personal or psychological injury or death or incurs loss of or injury to personal or real property as a result of a crime, or if [such a] the person is deceased or incapacitated, a member of that person's immediate family.
"Victims' rights agency" means a public agency, or part thereof, the primary responsibility of which is providing services, including, but not limited to, food, shelter, or clothing, medical, psychiatric, psychological, or legal services or referrals, information and referral services, counseling and support services, or financial services to victims of crimes, including victims of sexual assault, domestic violence, violent crime, child endangerment, child abuse, or child neglect, and the Victims of Crime Compensation Board, established pursuant to P.L.1971, c.317 (C.52:4B-1 et seq.) and continued as the Victims of Crime Compensation Office pursuant to P.L.2007, c.95 (C.52:4B-3.2 et al.) and Reorganization Plan No. 001-2008.
(cf: P.L.2014, c.19, s.2)
31. (New section) a. The President of the New Jersey Senate, in accordance with paragraph (2) of subsection a. of R.S.32:1-5, shall appoint a person to serve as commissioner of the port authority upon the expiration of an office of a commissioner next following enactment of P.L. , c. (C. ) (pending before the Legislature as this bill). Upon a vacancy in that office, the President of the New Jersey Senate, in accordance with paragraph (2) of subsection a. of R.S.32:1-5, shall appoint a person to fill the vacancy.
b. The Speaker of the New Jersey General Assembly, in accordance with paragraph (3) of subsection a. of R.S.32:1-5, shall appoint a person to serve as commissioner of the port authority upon the second expiration of an office of a commissioner next following enactment of P.L. , c. (C. ) (pending before the Legislature as this bill). Upon a vacancy in that office, the Speaker of the New Jersey General Assembly, in accordance with paragraph (3) of subsection a. of R.S.32:1-5, shall appoint a person to fill the vacancy.
c. The citizens advisory committee established pursuant to section 20 of P.L. , c. (C. ) (pending before the Legislature as this bill), in accordance with paragraph (4) of subsection a. of R.S.32:1-5, shall appoint a person to serve as commissioner of the port authority upon the third expiration of an office of a commissioner next following enactment of P.L. , c. (C. ) (pending before the Legislature as this bill). Upon a vacancy in that office, the citizens advisory committee, in accordance with paragraph (4) of subsection a. of R.S.32:1-5, shall appoint a person to fill the vacancy.
32. Sections 1 through 29 of this act shall take effect upon enactment of substantially similar legislation by the State of New York, provided that if the State of New York has already enacted such legislation, sections 1 through 29 of this act shall take effect immediately. Sections 30 and 31 of this act shall take effect upon the effective date of sections 1 through 29 of this act.
STATEMENT
This bill establishes various reforms to the operation of the Port Authority of New York and New Jersey (port authority).
Appointment of Commissioners
This bill authorizes the New Jersey Legislature to appoint two port authority commissioners, the New York Legislature to appoint two commissioners, and the Citizens Advisory Committee, created by this bill, to appoint one port authority commissioner from New Jersey and one from New York. Under the bill, the number of commissioners appointed by each governor decreases from six to three. The Senate President, Speaker of the General Assembly, and Citizens Advisory Committee are each authorized to appoint one commissioner from New Jersey. The Senate President would appoint a commissioner upon the expiration of an office of a commissioner next following the enactment of the bill, the Speaker of the General Assembly would appoint a commissioner upon the second expiration of an office of a commissioner, and the Citizens Advisory Committee would appoint a commissioner upon the third expiration of an office of a commissioner.
Open Meetings
The bill prohibits the port authority from holding a meeting unless adequate notice has been provided to the public. In addition, the bill provides that all meetings of the port authority are open to the public at all times, except under certain limited circumstances. The port authority is required to keep reasonably comprehensible minutes of all its meetings showing the time and place, the members present, the subjects considered, the actions taken, and the vote of each member and to make that information available to the public.
Freedom of Information/Open Public Records
The bill subjects the port authority to the provisions of New York's Freedom of Information Law and New Jersey's open public records act. If a record of the port authority is subject to public access under the laws of either the State of New York or the State of New Jersey, but not subject to public access under the laws of the other state, the record is to be made readily accessible, upon request, for inspection, copying, or examination.
A person who is denied access to a government record by the custodian of the record may: (1) institute a proceeding to challenge the custodian's decision in court; or (2) file a complaint with the Government Records Council established in New Jersey law. The port authority has the burden of proving that the denial of access is authorized by law. If it is determined that access has been improperly denied, the court or the Government Records Council shall order that access be allowed, and a requestor who prevails in any proceeding shall be entitled to reasonable attorney's fees.
Appointments
The bill provides that the board of commissioners is to select the chairperson and vice chairperson to serve for concurrent two-year terms. The chairperson and vice chairperson are not to be appointees from the same state. The chair and vice-chair positions are to rotate between appointees from New York and New Jersey. A commissioner is not to be bound by any recommendation for a chairperson or vice chairperson that may be made by the governor or legislature of either state.
The bill further provides that the board of commissioners is to select an executive director following a thorough and deliberative national search to fill the position. The executive director is to serve a term of five years and may be reappointed. The executive director, with the approval of the board of commissioners, may appoint other officers and employees, including a deputy executive director who is to be appointed by and report to the executive director.
Governor's Veto of Minutes
The bill removes provisions in the current compact which allow each state to provide for veto by the governor over any action of any commissioner from the governor's state.
Mission
The current compact which oversees the port authority does not provide an explicit mission for the port authority. The bill provides that the mission of the port authority is to facilitate the movement of cargo, vehicles, and people and to construct terminal, transportation, and other facilities of commerce in the port district.
The bill also requires the executive director and the chairperson of the port authority to evaluate each current port authority project and execute a written certification of whether the project supports the port authority's mission. If the executive director and the chairperson determine that a current port authority project does not support the port authority's mission, the port authority is required to develop a plan to divest itself of the project.
Cost Benefit Analysis
Under the bill, the port authority is required to conduct a cost-benefit analysis for all proposed projects. The cost-benefit analysis is to include, but not be limited to: the reason for the project; a list of project alternatives; the anticipated economic benefits of the project including any expected job creation benefits; and the anticipated direct and indirect costs of the project to all stakeholders.
Reporting
The bill subjects the port authority to additional reporting requirements. Specifically, the port authority is to submit to the governor, the state comptroller, and the legislatures of each state, and to the members of the transportation committees of both houses of both legislatures in both states, within 90 days after the end of the port authority's fiscal year, a complete and detailed report. This report is to include, but not be limited to: (1) financial reports including audited financial statements in accordance with generally accepted accounting principles, grant and subsidy programs, operating and financial risks, current ratings of its bonds, and long-term liabilities; (2) at a minimum, a five-year financial plan, including a current and projected capital budget, and an operating budget report; (3) a schedule of port authority bonds and notes outstanding at the end of the port authority's fiscal year, together with a statement of the amounts redeemed and incurred during such fiscal year; and (4) an analysis of the likelihood of future toll increases.
In addition, the port authority is required to annually review its operations to determine whether port authority costs and expenses can be reduced by entering into agreements with private entities to conduct certain port authority operations or provide services on behalf of the port authority, as identified in the port authority's review. The port authority is to report the findings of its review to the governors, legislatures, and to the members of the transportation committees of both houses of both legislatures in both states.
Fiduciary Oath
The bill requires each member of the port authority board to perform the duties of a board member in good faith and with that degree of diligence, care, and skill which an ordinarily prudent person in similar position would exercise under similar circumstances. At the time that the board member takes and subscribes the oath of office, the board member is to execute an acknowledgement of the board member's role, fiduciary duty, duty of loyalty and care to the port authority, and commitment to the port authority's mission and the public interest.
Conflicts of Interest
Every member of the board of commissioners is required to agree to disclose to the board any conflicts, or the appearance of a conflict, of a personal, financial, ethical, or professional nature that could inhibit the commissioner from performing the commissioner's duties in good faith and with due diligence and care. The commissioner is required to annually certify that the commissioner does not have any interest, financial or otherwise, direct or indirect, or engage in any business or transaction or professional activity or incur any obligation of any nature, which is in substantial conflict with the proper discharge of the commissioner's duties in the public interest.
The bill also prohibits a commissioner from voting on, or participating in any board or committee discussions with respect to, any agenda item if the commissioner, a member of the commissioner's immediate family, or a business organization in which the commissioner has an interest, has a direct or indirect financial involvement that may reasonably be expected to impair the board member's objectivity or independence of judgment or to create the appearance of impropriety. The commissioner is to be recused from any discussions or voting on the agenda item.
In addition, the bill prohibits New York and New Jersey from appointing a person to be a commissioner of the port authority if: that person has any interest in, or is employed by, any partnership, firm, corporation, or other entity that engages in any business, transaction, or professional activity with, or incurs any obligation of any nature with the port authority, the State of New York, the State of New Jersey, the Metropolitan Transportation Authority, or the New Jersey Transit Corporation.
A person appointed as a commissioner of the port authority is prohibited from having any interest in or from being employed by a partnership, firm, corporation, or other entity that engages in any business, transaction, or professional activity or incurs any obligation of any nature with the port authority, the State of New Jersey, the Metropolitan Transportation Authority, or the New Jersey Transit Corporation at any time during the person's term as a commissioner and for a period of two years commencing on the date the person's term on the board of commissioners terminates.
Financial Disclosures
Under the bill, commissioners of the port authority are required to file annual financial disclosure statements. Each statement is to contain a certification that it is correct and complete and that the person has not transferred and will not transfer any asset, interest, or property for the purpose of concealing it from disclosure while retaining an equitable interest therein. The failure of any person to comply with these requirements constitutes good cause for the person's removal from office. In addition, the enforcement provisions of New York's Public Officers Law and New Jersey's Conflicts of Interest Law, as applicable, apply.
Hearings to be Held Before Toll or Fare Increase
The bill requires the port authority to hold at least 10 public hearings not less than 60 days prior to adoption by the port authority of any increase in any fee, toll, charge, or fare for the use of the transportation facilities of the port authority.
At least one hearing is to be held in each county in New York and New Jersey directly affected by the proposed increase. Each public hearing is to be attended by the executive director and at least two of the commissioners appointed from each state. No more than one public hearing may be held in a single day, and at least one-half of the public hearings shall be scheduled to begin after 6:30 p.m., Eastern Standard Time, on a weekday.
If the authority votes to increase any fee, toll, charge, or fare for the use of a port authority transportation facility, the bill provides that the increase may not go into effect until, at minimum, 90 days following the date of adoption of the increase.
Appearance Before the Legislature
The port authority, at the request of either house of the state legislature of either New York or New Jersey, is required to appear before a committee of the requesting state legislature to present testimony on any topic or subject requested by the committee. The port authority is also required to respond to questions by members of the committee and to produce any books, papers, accounts, records and documents requested in writing by the committee.
Advance Notice of Certain Projects
The bill requires the port authority to provide advance notice of any planned project or operation which is expected to impede the normal operation of any port authority facility by: (1) providing advance written notice to the mayor and municipal emergency management coordinator in every municipality within five miles of the facility; (2) providing advance notification of the project or operation to newspapers of general circulation in each county and municipality in which the transportation facility is located; and (3) using variable message signs to inform motorists of any operation which is expected to impede the free flow of traffic.
State of Good Repair
The bill requires the port authority to establish a system for determining whether each of its transportation facilities and railroads is in a state of good repair. The system is to include an analysis including the age, condition, investment needs, maintenance costs, availability, capability, and reliability of each facility and railroad and to categorize each facility and railroad as a high, medium, or low priority based upon that analysis.
The port authority is required to issue an annual report of each facility and railroad with its categorization and for high priority projects, the port authority is required to identify the projects necessary to reduce the priority to low or medium.
Beginning two years after the bill's enactment, the port authority is prohibited from voting to approve any new project if it has not included each high priority transportation facility or project in its capital plan.
Redefining Port District
The bill requires the port authority to review the current boundaries of the port district provided in the compact and to prepare a report proposing new boundaries for the port district. The proposed new boundaries are to include, but not be limited to, all areas of New Jersey and New York where facilities currently owned or operated by the port authority are located and any other area in New Jersey or the New York metropolitan area that supports the interstate movement of cargo, vehicles, or people, including, but not limited to, areas in Bergen, Middlesex, and Monmouth Counties in New Jersey and the Borough of Staten Island in New York, not currently included within the boundaries of the port district.
Citizens Advisory Committee
The bill also establishes the Citizens Advisory Committee to the port authority. The citizens advisory committee is to consist of 18 members who each serve for a two-year term and are selected by the port authority board of commissioners. The members of the citizens advisory committee are to be as follows:
(1) One representative from the New Jersey Transit Corporation;
(2) One representative from the New York City Transit Authority;
(3) One representative from the New Jersey Department of Environmental Protection;
(4) One representative from the New York State Department of Environmental Conservation;
(5) One representative of the pilotage services industry;
(6) One representative of the cruise operations and passenger ship industry;
(7) Two representatives of the port shipping industry, one from New Jersey and one from New York;
(8) Two representatives of the railroad industry, one from New Jersey and one from New York;
(9) Two representatives of railroad passengers, one from New Jersey and one from New York;
(10) Two representatives of longshoremen and waterfront labor, one from New Jersey and one from New York;
(11) Two representatives of warehouses and distribution centers, one from New Jersey and one from New York; and
(12) Two representatives of transportation workers, operators, fabricators, and laborers, one from New Jersey and one from New York.
The goal of the citizens advisory committee is to act as an independent representative and advocate on behalf of the users and potential users of port authority facilities and of the several industries that operate within the port district. The citizens advisory committee is authorized to: receive and review comprehensive plans, capital and operating budgets, current and proposed rate structures, and other matters of concern to all persons served by the port authority; seek to advise the port authority board of commissioners prior to actions being taken on the foregoing; formulate proposals, suggestions, and plans to be submitted to the port authority board of commissioners; and solicit and receive public input concerning the port authority.
Members of the citizens advisory committee are permitted to attend, and required to be granted admission to, all meetings of the port authority board of commissioners. The port authority board of commissioners is required to allocate a reasonable amount of time for each agenda item at each meeting of the board of commissioners for each member of the citizens advisory committee who wishes to advise the board of commissioners concerning the agenda item.
In addition, the citizens advisory committee will select one person from New York and one person from New Jersey to serve on the port authority board of commissioners.
Inspector General
This bill establishes the Office of the Inspector General (office) in, but not of, the port authority. The office is to be directed by an Inspector General who is to be appointed upon joint recommendation of the governors of New Jersey and New York. The Inspector General is to serve for one term of six years and until a successor is appointed and has qualified. The Inspector General is to devote full time to the duties and responsibilities of the office.
The bill provides the powers and duties of the office which is to conduct routine, periodic, and random audits of the port authority and to conduct assessments of the performance and management of programs of the port authority and the extent to which the port authority is achieving its goals and objectives. The bill authorizes the Inspector General to: 1) establish a full-time program of audit and performance review, designed to provide increased accountability, integrity, and oversight of the port authority; and 2) audit and monitor the process of soliciting proposals for, and the process of awarding, contracts made by the port authority that involve a significant consideration or expenditure of funds or are comprised of complex or unique components, or both, as determined by the Inspector General.
The bill authorizes the Inspector General to conduct audits and reviews and propose and enforce remediation plans for the port authority, that are found by the Inspector General to have deficient practices or procedures. The Inspector General is to conduct audits and reviews in accordance with prevailing national and professional standards, rules, and practices relating to those audits and reviews in government environments, including the standards for performance reviews utilized by the United States Government Accountability Office or its successor, and the Inspector General is to ensure that the office remains in compliance with those standards, rules, and practices.
The bill empowers the office to issue subpoenas to compel attendance and testimony of persons and the production of books, papers, correspondence, and other documents in its investigations of any allegations of fraud, corruption, waste, and abuse at the port authority.
The Inspector General is to report the findings of audits and reviews performed by the office, and issue recommendations for corrective or remedial action, to the governors of New Jersey and New York and to the members of the transportation committees of each house of the legislature in each state. The port authority is to fully cooperate with the Inspector General to develop recommendations for a corrective or remedial action plan. The Inspector General is to monitor the implementation of those recommendations and conduct a subsequent review to determine whether there has been full implementation and continued compliance with those recommendations. The Inspector General is to provide annual reports to the governors and legislatures of New Jersey and New York. The reports are to be available to the public. The reports are to include, but not be limited to, the reporting of any programmatic deficiencies and weaknesses that the Inspector General's audits, investigations, and reviews have found, and detailing the efforts by, or the failure of, the port authority to implement a recommended plan for corrective or remedial action.
Whistleblower Protections
The bill establishes "whistleblower" protections for employees of the port authority similar to those found in the "Conscientious Employee Protection Act."
Government Liaison
The bill requires the board of commissioners of the port authority to appoint an employee of the port authority to the position of Government Liaison. The duties and the responsibilities of the Government Liaison are to include, but not be limited to, receiving all originating correspondence from a public entity, including, but not limited to, the governors of New Jersey and New York, and the members of the legislatures of both states, to the port authority and all originating correspondence from the port authority to a public entity. All records kept and maintained by the Government Liaison are to be subject to New York's Freedom of Information Law and New Jersey's open public records act.
Airport Operation Outside Port District
Finally, the bill repeals the sections of law which permitted the port authority to effectuate, establish, acquire, construct, rehabilitate, improve, maintain, and operate air terminals outside of the port district
The bill is to take effect upon enactment of substantially similar legislation by the State of New York.