Bill Text: NJ S2794 | 2014-2015 | Regular Session | Introduced
Bill Title: Implements certain governance and transparency reforms at PANYNJ.
Spectrum: Strong Partisan Bill (Republican 12-1)
Status: (Introduced - Dead) 2015-03-12 - Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee [S2794 Detail]
Download: New_Jersey-2014-S2794-Introduced.html
Sponsored by:
Senator THOMAS H. KEAN, JR.
District 21 (Morris, Somerset and Union)
SYNOPSIS
Implements certain governance and transparency reforms at PANYNJ.
CURRENT VERSION OF TEXT
As introduced.
An Act reforming the Port Authority of New York and New Jersey, amending various parts of the statutory law, and supplementing Title 32 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) a. At the time that a commissioner of the Port Authority of New York and New Jersey takes and subscribes the commissioner's 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 commissioner's oath of office, the commissioner shall execute a statement declaring that the commissioner understands the commissioner's independence and fiduciary obligation to perform duties and responsibilities to the best of the commissioner's abilities, in good faith and with proper diligence and care, consistent with the enabling compact, mission, and by-laws of the port authority and the applicable laws of both states; and that the fiduciary duty to the port authority is derived from and governed by its mission.
b. The commissioners shall perform each of their duties as board members in good faith and with that degree of diligence, care, and skill which an ordinarily prudent person in like position would use under similar circumstances.
c. A commissioner shall not vote on or participate in any board or committee discussions or decisions with respect to an item if the commissioner, a member of the commissioner's immediate family, or a business in which the commissioner has an interest has a direct or indirect financial involvement that may reasonably be expected to impair the commissioner's objectivity or independent judgment or that may reasonably create the appearance of impropriety. The public shall be informed of any recusals prior to any board action and the minutes shall clearly reflect that recusal.
d. The commissioners shall file annual financial disclosure statements pursuant to the laws of New Jersey and New York as may be required by the law or Executive Order of the state from which the commissioner is appointed. The financial disclosure statements shall be posted on the port authority's official website.
e. For purposes of this section:
"Immediate family" means the commissioner's spouse, child, parent, or sibling residing in the same household.
"Interest" means if the business organization is a partnership, the commissioner or the commissioner's immediate family is a partner or owner of 10 percent or more of the assets of the partnership; or if the business organization is a corporation, the commissioner or the commissioner's immediate family owns or controls 10 percent or more of the stock of the corporation, or serves as a director or officer of the corporation.
2. (New section) a. The board of commissioners shall establish a committee structure that shall include, but need not be limited to, the following responsibilities:
(1) a governance responsibility to be assigned to a committee comprised of not fewer than three commissioners, who shall constitute a majority on the committee, and who shall possess the necessary skills to undertake the governance duties and functions. It shall be the responsibility of the members of this committee to: keep the board informed of current best governance practices; review corporate governance trends; update the port authority's corporate governance principles; examine ethical and conflict of interest issues; perform board self-evaluations; investigate term limits, reappointments, and board responsibilities; develop by-laws which include rules and procedures for the conduct of board business; and advise the port authority on the skills and experiences required of potential commissioners;
(2) an audit responsibility to be assigned to a committee comprised of not fewer than three commissioners, who shall constitute a majority on the committee, and who shall possess the necessary skills to undertake the audit duties and functions. It shall be the responsibility of the members of this committee to: recommend to the board the hiring of an independent firm of certified public accountants to audit the port authority; establish the compensation to be paid to the accounting firm; and provide direct oversight of the annual independent financial audit performed by the accounting firm hired for auditing purposes. Members of this committee shall be familiar with corporate financial and accounting practices and shall be financially literate about applicable financial laws, rules, regulations, and standard industry practices; and
(3) a finance responsibility to be assigned to a committee comprised of not fewer than three commissioners, who shall constitute a majority on the committee, and who shall possess the necessary skills to undertake the finance duties and functions. It shall be the responsibility of the members of this committee to oversee and approve the issuance of debt that the port authority or its subsidiaries issue.
b. Every committee established by the board of commissioners shall promulgate a written charter to be approved by the board. Each charter promulgated in accordance with this section shall be made available to the public and posted on the port authority's official website.
3. (New section) The board of commissioners shall:
a. adopt a mission statement that the port authority's mission is to meet the critical transportation infrastructure needs of the bi-state region's people, businesses, and visitors by providing the highest quality and most efficient transportation and port commerce facilities and services to move people and goods within the region, provide access to the nation and the world, and promote the region's economic development. The port authority shall not take any action inconsistent with the mission statement, including the purchase of real estate or the engagement in real estate development efforts unrelated to its mission;
b. adopt a code of conduct applicable to commissioners, employees, and vendors and other contractors with the port authority based upon the recommendations of the port authority's Chief Ethics and Compliance Officer that shall, at minimum, include the applicable standards established by law in each state;
c. establish a whistleblower access and assistance program protecting employees from retaliation for disclosing information concerning acts of wrongdoing, misconduct, malfeasance, or other inappropriate conduct based upon the recommendations of the Chief Ethics and Compliance Officer, which program shall adhere to the requirements of subsection d. of section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill); and
d. establish a policy requiring all commissioners, officers, and employees with decision-making authority to maintain records regarding contact with lobbyists. As used in this subsection, "contact" means any conversation, in person, by telephone, or other electronic means, or correspondence between any lobbyist engaged in the act of lobbying and any person within the port authority who can make or influence a decision on the subject of the lobbying on behalf of the port authority, and shall include, at a minimum, all members of the board of commissioners and all officers of the port authority.
4. (New section) The board of commissioners shall appoint:
a. a Chief Executive Officer who shall serve as head of the senior management executive team of the port authority and shall be directly accountable to the board of commissioners;
b. a Chief Ethics and Compliance Officer who shall be a member of the port authority's senior management executive team and shall be directly accountable to the board of commissioners; and
c. an Inspector General who shall be directly accountable to the board of commissioners.
5. (New section) a. The Chief Ethics and Compliance Officer shall establish a comprehensive code of conduct, including financial disclosure requirements, meeting industry best practice that shall govern the actions of the board, employees of the port authority, and parties contracting with the port authority. The Chief Ethics and Compliance Officer shall review the code of conduct annually to ensure it meets industry best practices.
b. In addition to the financial disclosures required of the commissioners pursuant to subsection d. of section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), financial disclosures of employees shall, at a minimum, be required of the Chief Executive Officer, the Chief Ethics and Compliance Officer, the Chief Financial Officer, the Inspector General, and employees who hold policy-making positions, as determined by the port authority, and employees whose total compensation, either in the current or previous year, equals or exceeds $200,000, which amount shall be adjusted for inflation annually in accordance with the consumer price index for all urban wage earners and clerical workers (CPI-W) as calculated by the federal government. These financial disclosures shall be updated not less than annually and shall be made available on the port authority's official website.
c. Commissioners and employees of the port authority shall report to the Chief Ethics and Compliance Officer and the Inspector General when conduct within the port authority appears to violate any code of conduct applicable to the port authority or the criminal law of either state, or otherwise appears to constitute acts of wrongdoing, misconduct, malfeasance, or other inappropriate conduct. Failure to report potential violations of any code of conduct applicable to the port authority or the criminal law of either state, or acts of wrongdoing, misconduct, malfeasance, or other inappropriate conduct may result in removal from office or employment or other appropriate penalty.
d. The Chief Ethics and Compliance Officer, after consultation with the Attorney General of both states, shall recommend to the board of commissioners a whistleblower access and assistance program to be administered by the Inspector General which shall include, but not be limited to:
(1) establishing toll-free telephone and facsimile lines available to employees;
(2) offering advice regarding employee rights under applicable state and federal laws and advice and options available to all persons; and
(3) offering an opportunity for employees to identify concerns regarding any issue at the port authority. Any communication between an employee and the Inspector General pursuant to this paragraph shall be held strictly confidential by the Inspector General, unless the employee specifically waives in writing the right to confidentiality, except that this confidentiality shall not exempt the Inspector General from disclosing information, where appropriate, to any law enforcement authority.
e. The port authority shall not fire, discharge, demote, suspend, threaten, harass, or discriminate against an employee because of the employee's role as a whistleblower, insofar as the actions taken by the employee are legal.
f. As used in this section:
"Attorney General of both states" means the Attorney General of the State of New York and the Attorney General of the State of New Jersey.
"Employees" means those persons employed at the port authority, including but not limited to: full-time and part-time employees, those employees on probation, and temporary employees.
"Whistleblower" means any employee of the port authority who discloses information concerning acts of wrongdoing, misconduct, malfeasance, or other inappropriate behavior by an employee or board member of the port authority, concerning the port authority's investments, travel, acquisition of real or personal property, the disposition of real or personal property, or the procurement of goods and services.
6. (New section) a. The Inspector General shall be responsible for receiving and investigating, where appropriate, all complaints regarding fraud, waste, and abuse by commissioners, officers, and employees of the port authority or third-parties doing business with the port authority. The Inspector General shall also be responsible for conducting investigations upon the Inspector General's own initiative, as the Inspector General shall deem appropriate.
b. The Inspector General shall inform the board of commissioners and the Chief Executive Officer of allegations received by the Inspector General and the progress of investigations related thereto, unless special circumstances require confidentiality.
c. The Inspector General shall determine with respect to allegations received by the Inspector General whether disciplinary action or civil prosecution by the port authority is appropriate, and whether the matter should be referred to an appropriate governmental agency for further action.
d. The Inspector General shall prepare and make available to the public written reports of completed investigations, as appropriate and to the extent permitted by law, subject to redaction to protect the confidentiality of witnesses. The release of all or portions of reports may be deferred to protect the confidentiality of ongoing investigations.
e. The Inspector General shall have the power to:
(1) subpoena and enforce the attendance of witnesses;
(2) administer oaths or affirmations and examine witnesses under oath;
(3) require the production of any books and papers deemed relevant or material to any investigation, examination or review;
(4) notwithstanding any law to the contrary, examine and copy or remove documents or records of any kind prepared, maintained or held by the port authority and its subsidiaries;
(5) require any officer or employee of the port authority or its subsidiaries to answer questions concerning any matter related to the performance of the officer or employee's official duties. No statement or other evidence derived therefrom may be used against the officer or employee in any subsequent criminal prosecution other than for perjury or contempt arising from the testimony. The refusal of any officer or employee to answer questions shall be cause for removal from office or employment or other appropriate penalty. To the extent that any portion of this paragraph is inconsistent with any current contractual obligations of the port authority, this paragraph shall not be applicable to those obligations until the earliest expiration of those terms under the contract;
(6) monitor the implementation by the port authority of any recommendations made by the Inspector General; and
(7) perform any other functions that are necessary or appropriate to fulfill the duties and responsibilities of office.
7. (New section) The board of commissioners shall:
a. develop a capital plan which, after adoption by the board of commissioners, shall be available to the public and posted on the port authority's official website. All capital expenditures shall be consistent with the capital plan. The capital plan shall not include any discretionary regional development funds. Any regional development funds unallocated as of the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be redeployed to specific transportation projects consistent with the port authority's mission as provided in subsection a. of section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill). As used in this subsection, "discretionary regional development funds" means funds allocated for certain transportation, economic development, and infrastructure renewal projects in the State of New Jersey and the State of New York to be undertaken at the request of the respective Governor thereof;
b. annually prepare an operating budget that shall be balanced in accordance with generally accepted accounting principles and that shall, after adoption by the board of commissioners, be available to the public and posted on the port authority's official website;
c. have an annual audit performed by a certified public accountant in accordance with generally accepted auditing standards and shall submit the annual audit to the governor, state comptroller, and legislature of each state; and
d. have an efficiency study conducted by an independent entity upon the request of the Governors of New York and New Jersey, and if no request is made, no later than 10 years after the most recent efficiency study was conducted.
8. R.S.32:1-8 is amended to read as follows:
ARTICLE VII.
The port authority shall have [such] additional powers and duties as may hereafter be delegated to or imposed upon it from time to time by the action of the legislature of either state concurred in by the legislature of the other. Unless and until otherwise provided, it shall make an annual report to the legislature of both states setting forth in detail the operations and transactions conducted by it, including operations and transactions conducted by all subsidiary corporations, pursuant to this agreement and any legislation thereunder. The annual report also shall list all real property of the port authority. The annual report shall include a list and full description of real and personal property disposed of during the period and shall include the price received by the port authority and the name of the purchaser for all property sold by the port authority during the period. The port authority shall not pledge the credit of either state except by and with the authority of the legislature thereof.
(cf: R.S.32:1-8)
9. (New section) a. All meetings of the port authority shall be open to the public at all times except upon a majority vote taken in an open meeting pursuant to a motion identifying the general area or areas of the subject or subjects to be considered. The board of commissioners may exclude the public only from that portion of a meeting at which the board of commissioners discusses any:
(1) matter in which the release of information would impair a right to receive funds from the Government of the United States;
(2) material the disclosure of which would constitute an unwarranted invasion of individual or personal privacy;
(3) 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;
(4) matter involving the purchase, lease, or acquisition of real property with port authority funds, the proposed acquisition of securities, the sale or exchange of securities held by the port authority, or the investment of port authority funds, if public discussion of the matter would adversely affect the public interest;
(5) matter which would imperil the public safety if disclosed;
(6) 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 for the attorney to exercise the attorney's ethical duties as a lawyer;
(7) matter involving the employment, appointment, termination of employment, terms and conditions of employment, evaluation of the performance of, promotion or disciplining of any specific prospective officer or employee or current officer or employee employed or appointed by 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
(8) deliberation 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.
b. The port authority shall make meeting agendas available to the public at least 72 hours before each meeting of the board and each meeting of each committee. In addition, the port authority shall send via electronic mail the agenda and public documents pertaining to a board or committee meeting to the public information office of each state's legislature at least 72 hours before the meeting. Public notice of the time and place of a meeting shall be provided to appropriate media outlets, shall be conspicuously posted in one or more designated areas, and shall be conspicuously posted via the port authority's official website at least five business days before the meeting.
c. The port authority shall make the following documents available to the public as follows: the agenda and public documents pertaining to a board or committee meeting shall be available for public inspection at an office of the port authority; and the agenda and public documents pertaining to a board or committee meeting shall be posted on the port authority's official website.
d. At each public meeting of the board and at each public meeting of each committee, the public shall be allotted at least 30 minutes to speak on any topic on the agenda. The board or committee shall expand the comment time when necessary to provide a reasonable opportunity for the public to comment. The public speaking period shall take place prior to any board or committee action.
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. The minutes shall be available to the public within two weeks from the date of the meeting to the extent that public disclosure shall not be inconsistent with subsection a. of this section. The minutes shall indicate for each item on the agenda the vote or recusal of each board member in attendance at an open meeting, or an executive session of the board or a committee of the board. Each item on the agenda shall be voted on separately.
10. Section 2 of P.L.1991, c.395 (C.32:1-6.2) is amended to read as follows:
2. As used in [this act] P.L.1991, c.395 (C.32:1-6.1 et seq.):
[a.] "Board" means the Board of Commissioners of the Port Authority of New York and New Jersey.
"Committee" or "committees" means any committee established by the board including, but not limited to any committees holding the responsibilities required pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).
[b.] "Meeting" means any gathering, whether corporeal or by means of communication equipment, which is attended by, or open to, the board, held with the intent, on the part of the board members present, to discuss or act as a unit upon the specific public business of the authority. "Meeting" does not mean a gathering (1) attended by less than an effective majority of the board, or (2) attended by or open to all the members of three or more similar public bodies at a convention or similar gathering.
[c.] "News media" means persons representing major wire services, television news services, radio news services, and newspapers, whether located in the States of New York or New Jersey or any other state.
"Public business" means matters which relate in any way, directly or indirectly, to the performance of the functions of the Port Authority of New York and New Jersey or the conduct of its business.
(cf: P.L.1991, c.395, s.2)
11. Section 3 of P.L.1991, c.395 (C.32:1-6.3) is amended to read as follows:
3. a. The board shall adopt [and promulgate] , within six months of the effective date of P.L. ,c. (C. ) (pending before the Legislature as this bill), appropriate rules and regulations concerning proper notice to the public and the news media of its meetings and the right of the public and the news media to be present at meetings of the authority. The rules and regulations adopted pursuant to this section shall provide for the same notice and right of the public and news media to be present, as well as any other rights and duties as are provided in section 9 of P.L. , c. (C. ) (pending before the Legislature as this bill). The board may incorporate in its rules and regulations conditions under which it may exclude the public from a meeting or a portion thereof.
b. 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.
c. The port authority shall make or cause to be made all reasonable efforts to ensure that meetings are held in facilities that permit barrier-free physical access to people with disabilities. If the board determines to use videoconferencing or similar technology to conduct its meetings, it shall provide an opportunity for the public to attend, listen, and observe at a public location.
(cf: P.L.1991, c.395, s.3)
12. (New section) The port authority shall require that a needs assessment be conducted by an independent entity prior to any increase in fees, tolls, charges, or fares. The assessment shall be presented by the independent entity to the board of commissioners at a public meeting to be held at least 90 days prior to any meeting of the board of commissioners to vote to increase any fees, tolls, charges, or fares.
13. (New section) Not less than 30 days prior to any vote or action taken by the board of commissioners relating to any increase in the tolls for the use of any port authority bridge or tunnel, or fares for the use of the Port Authority Trans-Hudson Corporation rail system, the port authority shall conduct at least six public hearings in the manner prescribed pursuant to this section:
a. Locations for public hearings shall be selected in such a way as to be geographically accessible to a majority of users of the facility or facilities to be impacted by the toll or fare increase, as determined by port authority data, provided that at least one hearing shall be held in each state.
b. At least 72 hours before the first hearing held pursuant to this section, the port authority shall make the following information available to the public, including posting on the port authority's official website:
(1) a written explanation of why the increase in tolls or fares is necessary;
(2) the amount of revenue expected to be generated from the increase in tolls or fares; and
(3) a detailed explanation of how the revenues raised from the increase in tolls or fares is expected to be spent.
c. Each hearing shall be attended by at least two commissioners from New York and two commissioners from New Jersey in office at the time of the hearing.
d. The port authority shall hold no more than one public hearing 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.
e. The port authority shall ensure that each of the requirements set forth in this section and in section 9 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be complied with before placing on the meeting agenda of the board of commissioners any item or matter relating to an increase in tolls or fares.
14. (New section) When there is a request from a committee of either house of the state legislature of New York or New Jersey that has been approved by both the Presiding Officer and Minority Leader of the house, the port authority shall present testimony on the requested topic or subject. The port authority shall, at a minimum, be represented by staff members determined by the chair or vice-chair of the board and the Chief Executive Officer to have the appropriate knowledge of the topic or subject to present testimony or respond to questions.
15. (New section) Notwithstanding any law to the contrary, the port authority shall be deemed an "agency" and treated as such under the laws of New York, for all purposes under articles 6 and 6-A of the Public Officers Law, and shall be deemed a "public agency" and treated as such under the laws of New Jersey, P.L.1963, c.73 (C.47:1A-1 et seq.), pertaining to the disclosure of government records.
16. (New section) If any clause, sentence, paragraph, subdivision, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or part thereof directly involved in the controversy in which such judgment shall have been rendered. It is hereby declared to be the intent of the Legislature that this act would have been enacted even if such invalid provisions had not been included herein.
17. This act shall take effect upon the enactment into law by the State of New York of legislation having an identical effect with this act, but if the State of New York shall have already enacted such legislation, this act shall take effect immediately.
STATEMENT
Established almost a century ago, the Port Authority of New York and New Jersey (Port Authority) was created to oversee the harbor interests shared by New Jersey and New York. Over the decades, the Port Authority has expanded to manage new opportunities and face new challenges. Today, the Port Authority operates a wide-array of transportation programs under a multi-billion-dollar yearly budget. In August 2011, Governors Christie and Cuomo required the Port Authority to undergo a comprehensive audit of its finances and operations. As a result of those audit findings, the Port Authority has taken numerous steps towards reform and positive change. Subsequently, in 2014, Governors Christie and Cuomo created the bi-state Special Panel on the Future of the Port Authority (Special Panel) to further review the role and functionality of the Port Authority. This bill would statutorily codify reforms the Port Authority has undertaken to ensure that its functions are open and transparent, and includes other reforms recommended by the Special Panel regarding the Port Authority's overall organization and its role in the region.
This bill requires members of the Board of Commissioners (the board) to take a fiduciary oath, comply with the financial disclosure requirements of the State from which they were appointed, recuse themselves from voting on, or participating in, discussion with respect to an item if the commissioner or a member of the commissioner's immediate family, or a business in which the commissioner has interest, or has a direct or indirect financial involvement that may reasonably be expected to impair their objectivity or independent judgment or that may reasonably create the appearance of impropriety. The Chief Executive Officer, Chief Ethics and Compliance Officer, Chief Financial Officer, Inspector General, employees who hold policy-making positions, as determined by the Port Authority, and employees whose total compensation, either in the current or previous year, equals or exceeds $200,000, which amount shall be adjusted for inflation annually are required to submit financial disclosure forms. The bill also requires that the financial disclosure statements be posted on the Port Authority's official website.
The bill requires the board to establish a committee structure that is to include, but is not limited to, governance responsibility, audit responsibility, and finance responsibility. The bill requires each committee established by the board to promulgate a written charter, to be approved by the board, which shall be made available to the public and posted on the Port Authority's website.
The bill requires the board to adopt a mission statement that the Port Authority's mission is to meet the critical transportation needs of the bi-state region's people, businesses, and visitors by providing the highest quality and most efficient transportation and port commerce facilities and services to move people and goods within the region, provide access to the nation and the world and promote the region's economic development. The bill prohibits the Port Authority from taking any action inconsistent with the mission statement, including the purchase of real estate or the engagement in real estate development efforts unrelated to its mission.
The bill also requires the board to: adopt a code of conduct applicable to commissioners, employees, and vendors and other contractors with the agency based upon the recommendations of the Chief Ethics and Compliance Officer that shall, at minimum, include the applicable standards established by law in each state; establish a whistleblower policy to protect employees from retaliation for disclosing information concerning acts of wrongdoing, misconduct, malfeasance, or other inappropriate conduct; and establish a policy requiring all commissioners, officers, and employees with decision-making authority to maintain records regarding interaction with lobbyists.
The bill requires the board to appoint a Chief Executive Officer who will serve as head of the senior management executive team of the Port Authority, a Chief Ethics and Compliance Officer who will be a member of the Port Authority's senior management executive team, and an Inspector General; all of whom will be directly accountable to the board.
The bill requires the Chief Ethics and Compliance Officer to establish a comprehensive code of conduct, including financial disclosure requirements, to be approved by the board. The Chief Ethics and Compliance Office is also required to establish a whistleblower access and assistance program, to be approved by the board and administered by the Inspector General, for the protection of employees from retaliation for disclosing information concerning acts of wrongdoing, misconduct, malfeasance, or other inappropriate conduct.
The bill statutorily codifies the existing Office of Inspector General and provides that the Inspector General is responsible for receiving and investigating, where appropriate, all complaints regarding fraud, waste, and abuse by commissioners, officers, and employees of the Port Authority or third-parties doing business with the Port Authority. The Inspector General is to determine with respect to allegations received by the Inspector General whether disciplinary action or civil prosecution by the Port Authority is appropriate, and whether the matter should be referred to an appropriate governmental agency for further action. The Inspector General is required to prepare and make available to the public written reports of completed investigations, as appropriate and to the extent permitted by law, subject to redaction to protect the confidentiality of witnesses. The release of all or portions of reports may be deferred to protect the confidentiality of ongoing investigations.
The bill requires that the Port Authority develop a capital plan which, after adoption by the board of commissioners, is to be available to the public and posted on the Port Authority's official website. The bill mandates that all capital expenditures be consistent with the capital plan. In addition, the bill provides that the capital plan may not include any discretionary regional development funds and requires that any regional development funds unallocated as of the effective date of this act be redeployed to specific transportation projects consistent with the Port Authority's mission.
The bill also requires the Port Authority to annually prepare an operating budget that is balanced in accordance with generally accepted accounting principles; have an annual audit performed by a certified public accountant in accordance with generally accepted auditing standards that is to be submitted to the governor, state comptroller, and legislature of each state; and have an efficiency study conducted by an independent entity upon the request of the Governors of New York and New Jersey, and if no request is made, have an efficiency study conducted no later than 10 years after the most recent study was conducted.
The bill requires that the Port Authority's annual report to the legislatures of both states detailing the Port Authority's operations and transactions include the operations and transactions conducted by all subsidiary corporations. The bill also requires the annual report to include: a list the Port Authority's real property; a list, full description, including the price received by the Port Authority, of real and personal property disposed of during the period, and the name of the purchaser for all property sold by the Port Authority during the period.
The bill provides that all meetings of the Port Authority are to be open to the public at all times unless a majority of the commissioners votes that a portion of the meeting may be conducted in closed session. The Port Authority may only exclude the public if the discussion concerns: a matter in which the release of information would impair a right to receive funds from the government of the United States; material the disclosure of which constitutes an unwarranted invasion of individual or personal privacy; a collective bargaining agreement; a matter involving the purchase, lease or acquisition of real property with Port Authority funds, the proposed acquisition of securities, or sale or exchange of securities held by the Port Authority, or investment of Port Authority funds, if it could adversely affect the public interest if discussion of the matters were disclosed; matters which will imperil the public safety if disclosed; 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; a matter involving the employment, appointment, termination of employment, terms and conditions of employment, evaluation of the performance of, promotion, or discipline of any specific prospective officer or employee or current officer or employee employed or appointed by the Port Authority; or 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.
In addition, the Port Authority is required to make available to the public meeting agendas at least 72 hours before each meeting of the board and each meeting of each committee. Public notice of the time and place of a meeting is to be provided to appropriate media outlets, conspicuously posted in one or more designated areas, and conspicuously posted via the Port Authority's official website at least five business days before the meeting. The bill also requires the Port Authority to send the agenda and public documents pertaining to a board or committee meeting to the public information office of each state's legislature at least 72 hours before the meeting.
The bill also requires the board to make all reasonable efforts to ensure that meetings are held in facilities that permit barrier-free physical access to people with disabilities. If the board determines to use videoconferencing or similar technology to conduct its meetings, it shall provide an opportunity for the public to attend, listen, and observe at a public location.
The bill requires that the public be given at least 30 minutes, or longer when necessary, to speak on any topic on the agenda prior to the board taking action.
The bill requires the Port Authority 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 or recusal of each member which are to be promptly available to the public. Minutes of each meeting are to be available to the public within two weeks from the date of the meeting.
The bill also requires the Port Authority to hold at least six public hearings not less than 30 days prior to any vote or action taken by the board relating to any increase in the tolls for the use of any Port Authority bridge or tunnel, or fares for the use of the Port Authority Trans-Hudson Corporation rail system. The locations for public hearings are to be selected in such a way as to be geographically accessible to a majority of users of the facility or facilities to be impacted by the toll or fare increase, as determined by Port Authority data, provided that at least one hearing shall be held in each state.
In addition, at least 72 hours before the first hearing on a toll or fare increase, the Port Authority is required to make available to the public: the amount of revenue expected to be generated from the increase in tolls or fares; a detailed explanation of how the revenue raised from the increase in tolls or fares is expected to be spent; and a written explanation of why the increase in tolls or fares is necessary.
The Port Authority is also required to have a needs assessment conducted by an independent entity prior to any increase in fees, tolls, charges, or fares. The assessment is to be presented by the independent entity to the board of commissioners at a public meeting to be held at least 90 days prior to any meeting of the board to vote to increase any fees, tolls, charges, or fares.
The bill requires that each public hearing regarding a toll or fare increase be attended by at least two commissioners from the State of New York and two commissioners from the State of New Jersey and no more than one public hearing may be held in a single day. At least one-half of the public hearings are to be scheduled to begin after 6:30 p.m., Eastern Standard Time, on a weekday.
The bill requires the Port Authority to present testimony on the requested topic or subject when there is a request from a committee of either house of the state legislature of New York or New Jersey that has been approved by both the Presiding Officer and Minority Leader of the house. The Port Authority is to be represented, at a minimum, by staff members determined by the chair or vice-chair of the board and the Chief Executive Officer to have the appropriate knowledge of the topic or subject to present testimony or respond to questions.
Finally, the bill makes the Port Authority subject to each state's open public records laws.
