S T A T E   O F   N E W   Y O R K
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                                 1777--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by Sen. CARLUCCI -- read twice and ordered printed, and when
  printed to be committed to the Committee on Transportation  --  recom-
  mitted  to  the  Committee on Transportation in accordance with Senate
  Rule  6,  sec.  8  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the public authorities law, in relation to directing the
  metropolitan transportation authority to contract for the provision of
  an independent forensic audit of such authority; and providing for the
  repeal of such provisions upon expiration thereof

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The public authorities law  is  amended  by  adding  a  new
section 1265-c to read as follows:
  S  1265-C.  INDEPENDENT FORENSIC AUDIT. 1. THE AUTHORITY SHALL, WITHIN
SIXTY DAYS OF THE EFFECTIVE DATE OF THIS SECTION, CONTRACT WITH A CERTI-
FIED PUBLIC ACCOUNTING FIRM FOR THE PROVISION OF AN INDEPENDENT, COMPRE-
HENSIVE, FORENSIC AUDIT OF THE AUTHORITY. SUCH AUDIT SHALL BE  PERFORMED
IN  ACCORDANCE  WITH  GENERALLY  ACCEPTED GOVERNMENT AUDITING STANDARDS.
SUCH AUDIT SHALL BE INDEPENDENT OF AND IN ADDITION  TO  THE  INDEPENDENT
AUDIT  OF  THE  AUTHORITY  CONDUCTED  PURSUANT  TO  SECTION TWENTY-EIGHT
HUNDRED TWO OF THIS CHAPTER.
  2. THE CERTIFIED INDEPENDENT  PUBLIC  ACCOUNTING  FIRM  PROVIDING  THE
AUTHORITY'S  INDEPENDENT, COMPREHENSIVE, FORENSIC AUDIT SHALL BE PROHIB-
ITED IN PROVIDING AUDIT SERVICES IF THE  LEAD  (OR  COORDINATING)  AUDIT
PARTNER  (HAVING  PRIMARY  RESPONSIBILITY  FOR  THE AUDIT), OR THE AUDIT
PARTNER  RESPONSIBLE  FOR  REVIEWING  THE  AUDIT,  HAS  PERFORMED  AUDIT
SERVICES  FOR  THE AUTHORITY WITHIN ANY OF THE TEN PREVIOUS FISCAL YEARS
OF THE AUTHORITY.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05309-02-4

              

S. 1777--A                          2

  3. THE CERTIFIED INDEPENDENT  ACCOUNTING  FIRM  PERFORMING  THE  AUDIT
PURSUANT TO THIS SECTION SHALL BE PROHIBITED FROM PERFORMING ANY NON-AU-
DIT SERVICES FOR THE AUTHORITY CONTEMPORANEOUSLY WITH THE AUDIT.
  4.  IT  SHALL  BE  PROHIBITED  FOR  THE  CERTIFIED  INDEPENDENT PUBLIC
ACCOUNTING FIRM TO PERFORM FOR THE AUTHORITY ANY AUDIT  SERVICE  IF  THE
CHIEF  EXECUTIVE  OFFICER,  COMPTROLLER,  CHIEF FINANCIAL OFFICER, CHIEF
ACCOUNTING OFFICER OR ANY OTHER PERSON SERVING IN AN EQUIVALENT POSITION
IN THE AUTHORITY WAS  EMPLOYED  BY  THAT  CERTIFIED  INDEPENDENT  PUBLIC
ACCOUNTING  FIRM  AND  PARTICIPATED  IN ANY CAPACITY IN THE AUDIT OF THE
AUTHORITY AT ANY TIME IN THE PAST.
  5. THE CERTIFIED INDEPENDENT  PUBLIC  ACCOUNTING  FIRM  CONTRACTED  TO
PERFORM  THE  INDEPENDENT COMPREHENSIVE, FORENSIC AUDIT OF THE AUTHORITY
SHALL, ON OR BEFORE JANUARY FIRST,  TWO  THOUSAND  SIXTEEN,  REPORT  ITS
FINDINGS,  CONCLUSIONS  AND  RECOMMENDATIONS  TO THE GOVERNOR, THE STATE
COMPTROLLER, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER  OF  THE
ASSEMBLY,  THE  CHAIR  AND RANKING MINORITY MEMBER OF THE SENATE FINANCE
COMMITTEE, THE CHAIR AND RANKING MINORITY MEMBER OF  THE  ASSEMBLY  WAYS
AND  MEANS  COMMITTEE,  THE  CHAIRS  AND RANKING MINORITY MEMBERS OF THE
SENATE  AND  THE  ASSEMBLY  CORPORATIONS,  AUTHORITIES  AND  COMMISSIONS
COMMITTEES,  AND  THE  CHAIRS AND RANKING MINORITY MEMBERS OF THE SENATE
AND THE ASSEMBLY TRANSPORTATION COMMITTEES.
  S 2. This act shall take effect immediately, and shall expire  and  be
deemed repealed January 2, 2016.