S T A T E   O F   N E W   Y O R K
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                                  1197

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced  by M. of A. DESTITO -- read once and referred to the Commit-
  tee on Corporations, Authorities and Commissions

AN ACT to amend the executive law, in relation to increasing port  secu-
  rity;  and  to  amend  chapter 154 of the laws of 1921 relating to the
  Port Authority of New York and New Jersey, in  relation  to  contracts
  with foreign persons, corporations, or entities

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

  Section 1.  The executive law is amended by adding a new  section  716
to read as follows:
  S  716. PORT SECURITY ENHANCEMENT PLAN.  THE OFFICES OF HOMELAND SECU-
RITY FOR THE STATES OF NEW YORK AND NEW JERSEY, IN COOPERATION WITH  THE
WATERFRONT  COMMISSION  OF  NEW  YORK  HARBOR  SHALL,  ON  OR BEFORE THE
FIFTEENTH DAY OF FEBRUARY, TWO THOUSAND ELEVEN, PREPARE, AND DELIVER  TO
THE  GOVERNORS  OF THE STATES OF NEW YORK AND NEW JERSEY, THE PRESIDENTS
PRO TEMPORE OF THE SENATES OF NEW YORK AND NEW JERSEY AND  THE  SPEAKERS
OF  THE  ASSEMBLIES  OF NEW YORK AND NEW JERSEY, A COMPREHENSIVE REPORT,
WHICH PROVIDES A PLAN OF ACTION AND INCLUDES  RECOMMENDATIONS,  FOR  THE
IMPROVEMENT  OF  PORT AND WATERWAY SECURITY FOR THE PORT OF NEW YORK AND
NEW JERSEY, AS WELL AS THE PORTS, WATERWAYS AND COASTLINES OF THE STATES
OF NEW YORK AND NEW JERSEY.
  SUCH REPORT SHALL INCLUDE:
  1. AN EXAMINATION OF THE OVERALL SECURITY ISSUES OF THE  PORT  OF  NEW
YORK  AND  NEW  JERSEY,  AND MAKING RECOMMENDATIONS WITH RESPECT TO SUCH
ISSUES, INCLUDING:
  A. THE OVERALL PROVISION AND STATUS OF PORT SECURITY;
  B. THE DIVISION OF RESPONSIBILITY FOR ALL FACETS OF PORT SECURITY;
  C. CURRENT IMPEDIMENTS TO PROVIDING OPTIMAL LEVELS OF SECURITY;
  D. POLICE PATROLS OF THE PORT;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03780-01-9
              

A. 1197                             2

  E. INTERAGENCY COOPERATION BETWEEN FEDERAL, STATE AND  LOCAL  AUTHORI-
TIES;
  F. EMPLOYEE, CREW, SHIPPER, TRANSPORTER AND VISITOR BACKGROUND CHECKS;
  G. CURRENT AND POTENTIAL TECHNOLOGY ENHANCEMENTS;
  H. ECONOMIC CONSIDERATIONS;
  I. REAL PROPERTY AND LEASEHOLD ISSUES; AND
  J. SUCH OTHER AND FURTHER ITEMS AS THE COMMISSION DEEMS IMPORTANT.
  2.  SUCH REPORT SHALL ALSO INCLUDE AN EXAMINATION OF THE OVERALL SECU-
RITY ISSUES OF THE PORTS, WATERWAYS AND COASTLINES OF THE STATES OF  NEW
YORK AND NEW JERSEY, MAKING RECOMMENDATIONS WITH RESPECT TO SUCH ISSUES.
  S 2. Section 1 of chapter 154 of the laws of 1921 relating to the Port
Authority  of New York and New Jersey is amended by adding a new article
VI-A to read as follows:
                              ARTICLE VI-A.
  1. LEGISLATIVE FINDINGS AND DETERMINATIONS. THE LEGISLATURE FINDS  AND
DETERMINES  THAT  THE  SAFE  AND  EFFECTIVE  OPERATION OF TRANSPORTATION
FACILITIES, INCLUDING PORTS AND TERMINALS, IS AN ESSENTIAL  STATE  FUNC-
TION  AND IS CRITICAL TO BOTH THE NATIONAL AND STATE ECONOMY AND SECURI-
TY.
  THE LEGISLATURE  FURTHER  FINDS  AND  DETERMINES  THAT  THE  PURCHASE,
CONSTRUCTION, LEASING AND/OR OPERATION OF ANY TERMINAL OR PORT FACILITY,
AND  THE  OWNERSHIP,  HOLDING,  LEASING  AND/OR OPERATING OF ANY REAL OR
PERSONAL PROPERTY INCUMBENT AND/OR  ASSOCIATED  THEREWITH,  WHEREIN  ANY
RIGHTS,  POWERS  OR  DUTIES  OF  THE  PORT AUTHORITY ARE GIVEN, AWARDED,
TRANSFERRED OR ASSIGNED IN THE OWNERSHIP, HOLDING, LEASING AND/OR OPERA-
TION OF ANY SUCH TERMINAL OR PORT FACILITY, OR  SUCH  REAL  OR  PERSONAL
PROPERTY,  TO ANY FOREIGN PERSON, CORPORATION OR ENTITY, CAN POSE BY ITS
VERY NATURE A SERIOUS AND SUBSTANTIAL PUBLIC SECURITY CONCERN.
  THE LEGISLATURE ADDITIONALLY FINDS AND DETERMINES THAT THE  PROTECTION
OF  THE  PUBLIC AND THEIR INTERESTS DEMAND A THOROUGH AND SERIOUS REVIEW
OF ALL SUCH PUBLIC SECURITY ISSUES CONCERNING ANY SUCH CONTRACTS, AGREE-
MENTS AND/OR DELEGATIONS, AND THAT ANY SUCH CONTRACT,  AGREEMENT  AND/OR
DELEGATION   MUST  CONTAIN  WITHIN  THEIR  PROVISIONS  CERTAIN  SECURITY
REQUIREMENTS TO PROTECT AND PROMOTE THE PUBLIC SECURITY  OF  THE  PEOPLE
AND  THE  GOVERNMENTS  OF THE STATES OF NEW YORK AND NEW JERSEY, AND THE
UNITED STATES OF AMERICA.
  2. SECURITY  AGREEMENTS  REQUIRED  FOR  FOREIGN  CONTRACTS.  THE  PORT
AUTHORITY  SHALL  NOT  HAVE  THE AUTHORITY TO PURCHASE, CONSTRUCT, LEASE
AND/OR OPERATE ANY TERMINAL OR PORT FACILITY; OR TO MAKE CHARGES FOR THE
USE THEREOF; OR TO OWN, HOLD, LEASE  AND/OR  OPERATE  REAL  OR  PERSONAL
PROPERTY, WHEREIN ANY RIGHTS, POWERS OR DUTIES OF THE PORT AUTHORITY ARE
GIVEN, AWARDED, TRANSFERRED OR ASSIGNED IN THE OWNERSHIP, HOLDING, LEAS-
ING AND/OR OPERATION OF ANY SUCH TERMINAL OR PORT FACILITY, OR SUCH REAL
OR PERSONAL PROPERTY, TO ANY FOREIGN BASED PERSON, CORPORATION OR ENTITY
WITHOUT  MAINTAINING  WITHIN  SUCH CONTRACTS A FOREIGN CONTRACT SECURITY
AGREEMENT.
  A. FOR PURPOSES OF THIS SECTION, A FOREIGN BASED  PERSON,  CORPORATION
OR ENTITY SHALL INCLUDE:
  (I) ANY NATURAL PERSON WHO IS NOT A CITIZEN OF THE UNITED STATES; OR
  (II) ANY CORPORATION OR ENTITY THAT:
  (1) IS NOT HEADQUARTERED IN THE UNITED STATES, OR
  (2) IS NOT CHARTERED BY A STATE OR FEDERAL GOVERNMENT, OR
  (3)  HAS  NOT  LESS  THAN 51 PERCENT OF THEIR STOCK OR ASSETS OWNED OR
HELD BY:
  (A) A PERSON OR PERSONS WHO ARE NOT CITIZENS OF THE UNITED STATES, OR
  (B) A CORPORATION OR ENTITY, OR COLLECTION THEREOF, THAT ARE:

A. 1197                             3

  (I) NOT HEADQUARTERED IN THE UNITED STATES, OR
  (II) NOT CHARTERED BY A STATE OR FEDERAL GOVERNMENT.
  B. FOR PURPOSES OF THIS ARTICLE, A FOREIGN CONTRACT SECURITY AGREEMENT
SHALL INCLUDE THE FOLLOWING REQUIREMENTS:
  (I)  AN  AGREEMENT  THAT  ALL  EMPLOYEES  OF THE FOREIGN BASED PERSON,
CORPORATION OR ENTITY SHALL, PRIOR TO THEIR EMPLOYMENT  OR  CONTINUATION
OF  EMPLOYMENT, WITH THE FOREIGN BASED PERSON, CORPORATION OR ENTITY, OR
ANY SUBSIDIARY THEREOF,  AT  ANY  TERMINAL  OR  PORT  OWNED,  LEASED  OR
CONTROLLED  BY  THE  PORT  AUTHORITY,  PASS A BACKGROUND SECURITY CHECK,
WHICH SHALL BE ADMINISTERED AND DESIGNED BY THE WATERFRONT COMMISSION OF
NEW YORK HARBOR AND THAT ALL COSTS OF DESIGNING AND  THE  ADMINISTRATION
OF  SUCH  BACKGROUND  SECURITY  CHECKS  SHALL BE PAID FOR BY THE FOREIGN
BASED PERSON, CORPORATION OR ENTITY; AND
  (II) AN AGREEMENT THAT ALL CONSTRUCTION, FIT UP  AND/OR  MODIFICATIONS
OF  THE  TERMINAL  OR  PORT FACILITY, OWNED, LEASED OR CONTROLLED BY THE
PORT AUTHORITY, INCLUDING THE PURCHASE, INSTALLATION AND/OR  MAINTENANCE
OF EQUIPMENT FOR USE AT SUCH FACILITY, SHALL BE EXCLUSIVELY PERFORMED BY
A   PERSON,  CORPORATION  OR  ENTITY  WHICH  IS  NOT  FOREIGN  BASED  OR
CONTROLLED, AND WHICH HAS BEEN PRE-CLEARED BY THE WATERFRONT  COMMISSION
OF  NEW  YORK  HARBOR,  AND  IN NO EVENT SHALL THE FOREIGN BASED PERSON,
CORPORATION OR ENTITY BE PROVIDED WITH, OR BE GIVEN ACCESS TO, ANY MAPS,
DRAWINGS, DIAGRAMS, BLUEPRINTS OR ANY OTHER SECURE DOCUMENTS  CONCERNING
THE  BUILDINGS  AND GROUNDS OF THE TERMINAL OR PORT FACILITY, ITS EQUIP-
MENT AND/OR OPERATIONAL INFRASTRUCTURE; AND
  (III) AN AGREEMENT THAT THE FOREIGN BASED PERSON, CORPORATION OR ENTI-
TY SHALL FUND REGULAR AND  NECESSARY  PATROLS  AND  INSPECTIONS  OF  THE
TERMINAL  OR  PORT  FACILITY, AND ITS EQUIPMENT, CARGO AND OPERATIONS BY
THE PORT AUTHORITY POLICE, THE WATERFRONT COMMISSION  POLICE,  PERSONNEL
OF  THE UNITED STATES COAST GUARD, AND/OR PERSONNEL OF THE UNITED STATES
CUSTOMS, TO THE EXTENT AND NUMBER AS SHALL BE REQUIRED BY REGULATION  BY
THE  STATE  POLICE  OF THE STATES OF NEW YORK AND NEW JERSEY, IN COOPER-
ATION AND CONSULTATION WITH THE DEPARTMENTS OF HOMELAND SECURITY OF  THE
UNITED STATES, THE STATE OF NEW YORK AND THE STATE OF NEW JERSEY.
  3.  REPORT  ON  FOREIGN CONTRACTS. THE PORT AUTHORITY SHALL, WITHIN 30
DAYS OF THE EFFECTIVE DATE OF THIS SUBDIVISION, AND EVERY 180 DAYS THER-
EAFTER, SUBMIT TO THE CHAIR  OF  THE  NEW  YORK  STATE  SENATE  STANDING
COMMITTEE ON VETERANS, HOMELAND SECURITY AND MILITARY AFFAIRS, THE CHAIR
OF  THE NEW YORK STATE ASSEMBLY STANDING COMMITTEE ON GOVERNMENTAL OPER-
ATIONS, THE CHAIR OF THE NEW JERSEY STATE SENATE STANDING  COMMITTEE  ON
LAW, PUBLIC SAFETY AND VETERANS AFFAIRS, AND THE CHAIR OF THE NEW JERSEY
STATE  ASSEMBLY  STANDING  COMMITTEE  ON  HOMELAND  SECURITY  AND  STATE
PREPAREDNESS, A COMPLETE REPORT OF ALL CURRENT AND  PROPOSED  CONTRACTS,
AGREEMENTS  AND  DELEGATIONS  BETWEEN THE PORT AUTHORITY AND ANY FOREIGN
BASED PERSON, CORPORATION AND ENTITY.    SUCH  REPORT  SHALL  INCLUDE  A
DETAILED  DESCRIPTION OF SUCH CURRENT OR PROPOSED CONTRACT, AGREEMENT OR
DELEGATION, INCLUDING BUT NOT LIMITED TO:
  A. THE NAMES AND ADDRESSES OF THE PARTIES TO THE  CONTRACT,  AGREEMENT
OR DELEGATION;
  B. THE AMOUNT THE CONTRACT, AGREEMENT OR DELEGATION IS FOR;
  C. THE DURATION OF THE CONTRACT, AGREEMENT OR DELEGATION;
  D.  THE  NATURE  OF THE PROPERTY AND/OR SERVICES TO BE RECEIVED AND/OR
PERFORMED PURSUANT TO THE CONTRACT, AGREEMENT OR DELEGATION; AND
  E. THE JUSTIFICATION, ON BEHALF OF THE PORT AUTHORITY, IF ANY,  AS  TO
WHY  SUCH  CONTRACT, AGREEMENT OR DELEGATION SHOULD BE APPROVED SO AS TO
BE EXECUTED, CONTINUED OR MAINTAINED.

A. 1197                             4

  4. TERMINATION OF CONTRACTS. ANY CONTRACT, AGREEMENT OR DELEGATION  BY
THE  PORT  AUTHORITY TO ANY FOREIGN PERSON, CORPORATION OR ENTITY, WHICH
DOES NOT CONTAIN THE SECURITY AGREEMENT ESTABLISHED PURSUANT TO SUBDIVI-
SION 2 OF THIS ARTICLE ON OR BEFORE JANUARY 1,  2010,  SHALL  BE  DEEMED
VOID  AND  CANCELLED,  WITH THE PORT AUTHORITY BEING RESPONSIBLE FOR THE
PAYMENT OF DAMAGES, IF ANY, FOR THE VOIDING AND CANCELLING OF THE SAME.
  S 3. This act shall take effect immediately; provided,  however,  that
section two of this act shall take effect upon the enactment into law by
the  state  of New Jersey of legislation having an identical effect with
this act, but if the state of New Jersey shall have already enacted such
legislation, this act shall take effect immediately; provided  that  the
chair  of  the port authority shall notify the legislative bill drafting
commission upon the occurrence  of  the  enactment  of  the  legislation
provided for in section two of this act in order that the commission may
maintain an accurate and timely effective data base of the official text
of  the laws of the state of New York in furtherance of effectuating the
provisions of section 44 of the legislative law and section 70-b of  the
public officers law.