Assembly Bill A2210

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

                                  2210

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 15, 2009
                               ___________

Introduced  by  M.  of  A.  BRODSKY, COLTON, CAHILL, MILLMAN, P. RIVERA,
  CHRISTENSEN, PAULIN, BENJAMIN, CLARK, GALEF, ALESSI, GLICK, CUSICK  --
  Multi-Sponsored  by  -- M. of A.  BRENNAN, CYMBROWITZ, DIAZ, DINOWITZ,
  FARRELL, GOTTFRIED, HEASTIE, JACOBS,  JOHN,  KOON,  LATIMER,  LUPARDO,
  MAISEL,  McENENY,  PHEFFER,  ROBINSON -- read once and referred to the
  Committee on Corporations, Authorities and Commissions

AN ACT to amend chapter 154 of the laws of 1921 constituting the Port of
  New York Authority, in relation to reform of such authority

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

  Section  1.  This  act  shall  be  known and may be cited as the "Port
Authority of New York and New Jersey Reform Act".
  S 2. Chapter 154 of the laws of 1921 constituting the Port of New York
Authority is amended by adding a new section 1-a to read as follows:
  S 1-A. 1. THE LEGISLATURE FINDS AND DECLARES THAT:
  A. BECAUSE THE PORT AUTHORITY OF NEW YORK AND NEW  JERSEY  ("THE  PORT
AUTHORITY")  PERFORMS  MANY  CRITICAL  TRANSPORTATION AND INFRASTRUCTURE
FUNCTIONS, THERE IS A NEED FOR LEGISLATIVE REFORM TO ENSURE TRANSPARENCY
AND ACCOUNTABILITY AT THE PORT AUTHORITY;
  B. WHILE THIS STATE HAS RECENTLY  IMPLEMENTED  A  SIGNIFICANT  SET  OF
REFORMS FOR OTHER PUBLIC AUTHORITIES, THESE REFORMS DO NOT EXTEND TO THE
PORT AUTHORITY BECAUSE IT IS AN INTERSTATE AUTHORITY; AND
  C.  IT  IS  IN  THE BEST INTEREST OF THE PUBLIC THAT THE STATES OF NEW
YORK AND NEW JERSEY ENACT SUBSTANTIVELY IDENTICAL LEGISLATION  IN  ORDER
TO REFORM THE PRACTICES OF THE PORT AUTHORITY TO ENSURE THE PROPER FUNC-
TIONING  OF  THE PORT AUTHORITY AS AN OPEN, TRANSPARENT, AND ACCOUNTABLE
INTERSTATE AUTHORITY.
  2. A. THE BOARD OF COMMISSIONERS SHALL:
  (1) EXECUTE DIRECT OVERSIGHT OF THE AUTHORITY'S  CHIEF  EXECUTIVE  AND
OTHER  SENIOR  MANAGEMENT IN THE EFFECTIVE AND ETHICAL MANAGEMENT OF THE
AUTHORITY;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05626-02-9
              

A. 2210                             2

  (2) UNDERSTAND, REVIEW, AND MONITOR THE IMPLEMENTATION OF  FUNDAMENTAL
FINANCIAL  AND  MANAGEMENT  CONTROLS  AND  OPERATIONAL  DECISIONS OF THE
AUTHORITY;
  (3)  ESTABLISH POLICIES REGARDING THE PAYMENT OF SALARY, COMPENSATION,
AND REIMBURSEMENTS TO, AND ESTABLISH RULES FOR THE TIME  AND  ATTENDANCE
OF, THE CHIEF EXECUTIVE AND SENIOR MANAGEMENT;
  (4)  ADOPT  A CODE OF ETHICS APPLICABLE TO EACH OFFICER, DIRECTOR, AND
EMPLOYEE THAT, AT A  MINIMUM,  INCLUDES  RULES  GOVERNING  CONFLICTS  OF
INTEREST;
  (5)  ESTABLISH WRITTEN POLICIES FOR: PROTECTING EMPLOYEES FROM RETALI-
ATION FOR DISCLOSING INFORMATION CONCERNING ACTS OF WRONGDOING,  MISCON-
DUCT,  MALFEASANCE,  OR  OTHER  INAPPROPRIATE BEHAVIOR BY AN EMPLOYEE OR
BOARD MEMBER OF THE AUTHORITY; INVESTMENTS; TRAVEL; THE  ACQUISITION  OF
REAL PROPERTY AND THE DISPOSITION OF REAL AND PERSONAL PROPERTY; AND THE
PROCUREMENT OF GOODS AND SERVICES;
  (6)  ADOPT A DEFENSE AND INDEMNIFICATION POLICY AND DISCLOSE SUCH PLAN
TO ANY AND ALL PROSPECTIVE BOARD MEMBERS; AND
  (7) AT THE TIME THAT THE MEMBER  TAKES  AND  SUBSCRIBES  THE  OATH  OF
OFFICE, OR WITHIN SIXTY DAYS AFTER THE EFFECTIVE DATE OF THIS ACT IF THE
MEMBER  HAS  ALREADY TAKEN AND SUBSCRIBED THE OATH OF OFFICE, EXECUTE AN
ACKNOWLEDGMENT, ISSUED BY THE INDEPENDENT BUDGET OFFICE AFTER  CONSULTA-
TION  WITH  THE  OFFICE  OF  THE  ATTORNEYS  GENERAL OF NEW YORK AND NEW
JERSEY, IN WHICH THE BOARD MEMBER ACKNOWLEDGES THAT  THE  MEMBER  UNDER-
STANDS  HIS  OR  INDEPENDENCE AND FIDUCIARY DUTIES, INCLUDING HIS OR HER
DUTY OF LOYALTY AND CARE TO  THE  ORGANIZATION  AND  COMMITMENT  TO  THE
AUTHORITY'S MISSION.
  B. THE BOARD OF COMMISSIONERS SHALL ESTABLISH AN AUDIT COMMITTEE TO BE
COMPRISED  OF  NOT LESS THAN THREE BOARD MEMBERS, WHO SHALL CONSTITUTE A
MAJORITY ON THE COMMITTEE, AND WHO SHALL POSSESS THE NECESSARY SKILLS TO
UNDERSTAND THE DUTIES AND FUNCTIONS OF THE AUDIT COMMITTEE. THE  COMMIT-
TEE  SHALL  RECOMMEND  TO THE BOARD THE HIRING OF AN INDEPENDENT FIRM OF
CERTIFIED PUBLIC ACCOUNTANTS FOR THE AUTHORITY,  ESTABLISH  THE  COMPEN-
SATION  TO  BE PAID TO THE ACCOUNTING FIRM, AND PROVIDE DIRECT OVERSIGHT
OF THE ANNUAL INDEPENDENT FINANCIAL AUDIT PERFORMED  BY  THE  ACCOUNTING
FIRM  HIRED  FOR  SUCH PURPOSES. MEMBERS OF THE AUDIT COMMITTEE SHALL BE
FAMILIAR WITH CORPORATE FINANCIAL AND ACCOUNTING PRACTICES AND SHALL  BE
OR BECOME FINANCIALLY LITERATE.
  C.  THE  BOARD OF COMMISSIONERS SHALL ESTABLISH A GOVERNANCE COMMITTEE
TO BE COMPRISED OF NOT LESS THAN THREE BOARD MEMBERS, WHO SHALL  CONSTI-
TUTE  A  MAJORITY  ON THE COMMITTEE, AND WHO SHALL POSSESS THE NECESSARY
SKILLS TO UNDERSTAND THE DUTIES AND FUNCTIONS OF THE GOVERNANCE  COMMIT-
TEE.  IT  SHALL  BE  THE RESPONSIBILITY OF THE MEMBERS OF THE GOVERNANCE
COMMITTEE TO KEEP THE BOARD INFORMED OF CURRENT  BEST  GOVERNANCE  PRAC-
TICE;  TO  REVIEW CORPORATE GOVERNANCE TRENDS; TO UPDATE THE AUTHORITY'S
CORPORATE GOVERNANCE PRINCIPLES; TO ADVISE APPOINTING AUTHORITIES ON THE
SKILLS AND EXPERIENCE REQUIRED OF POTENTIAL BOARD  MEMBERS;  TO  EXAMINE
ETHICAL  AND  CONFLICT OF INTEREST ISSUES; TO PERFORM BOARD SELF-EVALUA-
TIONS; TO INVESTIGATE TERM LIMITS, REAPPOINTMENTS AND BOARD RESPONSIBIL-
ITIES; TO DEVELOP BY-LAWS WHICH INCLUDE RULES AND PROCEDURES FOR CONDUCT
OF BOARD BUSINESS; AND TO MAKE RECOMMENDATIONS FOR NEW COMMISSIONERS.
  D. THE BOARD OF COMMISSIONERS SHALL ESTABLISH A FINANCE  COMMITTEE  TO
BE  COMPRISED OF NOT LESS THAN THREE BOARD MEMBERS, WHO SHALL CONSTITUTE
A MAJORITY ON THE COMMITTEE, AND WHO SHALL POSSESS THE NECESSARY  SKILLS
TO UNDERSTAND THE DUTIES AND FUNCTIONS OF THE COMMITTEE. IT SHALL BE THE
RESPONSIBILITY  OF  THE  MEMBERS OF THE FINANCE COMMITTEE TO OVERSEE AND
APPROVE THE DEBT THAT THE AUTHORITY OR SUBSIDIARY COMMISSIONS ISSUE.

A. 2210                             3

  3. THE AUTHORITY SHALL SUBMIT TO THE GOVERNORS OF  NEW  YORK  AND  NEW
JERSEY,  THE  TEMPORARY  PRESIDENT  OF THE SENATE AND THE SPEAKER OF THE
ASSEMBLY OF THE NEW YORK STATE LEGISLATURE, THE PRESIDENT  AND  MINORITY
LEADER  OF THE SENATE AND THE SPEAKER AND MINORITY LEADER OF THE GENERAL
ASSEMBLY  OF THE NEW JERSEY LEGISLATURE, THE NEW YORK STATE COMPTROLLER,
AND THE STATE TREASURER OF NEW JERSEY WITHIN NINETY DAYS AFTER  THE  END
OF  ITS  FISCAL  YEAR, A COMPLETE AND DETAILED REPORT OR REPORTS SETTING
FORTH:
  A. ITS OPERATIONS AND ACCOMPLISHMENTS;
  B. ITS FINANCIAL REPORTS, INCLUDING (1) AUDITED FINANCIALS IN  ACCORD-
ANCE  WITH  GENERALLY  ACCEPTED  ACCOUNTING  PRINCIPLES  (GAAP)  AND THE
ACCOUNTING STANDARDS ISSUED BY  THE  GOVERNMENTAL  ACCOUNTING  STANDARDS
BOARD  (GASB),  (2) GRANT AND SUBSIDY PROGRAMS, (3) OPERATING AND FINAN-
CIAL RISKS, (4) CURRENT RATINGS AND NOTICE OF CHANGES, AND (5) LONG-TERM
LIABILITIES, INCLUDING LEASES AND EMPLOYEE BENEFIT PLANS;
  C. ITS MISSION STATEMENT;
  D. A SCHEDULE OF ITS BONDS AND NOTES OUTSTANDING AT  THE  END  OF  ITS
FISCAL  YEAR,  TOGETHER  WITH  A  STATEMENT  OF THE AMOUNTS REDEEMED AND
INCURRED DURING SUCH 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  ALSO  INCLUDE
ALL  REFINANCINGS,  CALLS,  REFUNDINGS,  DEFEASEMENTS  AND INTEREST RATE
EXCHANGE OR OTHER SUCH AGREEMENTS, AND FOR ANY DEBT  ISSUED  DURING  THE
REPORTING YEAR, THE SCHEDULE SHALL ALSO INCLUDE A DETAILED LIST OF COSTS
OF ISSUANCE FOR SUCH DEBT;
  E.  BIOGRAPHICAL  INFORMATION  AND  TITLE  OF COMMISSIONERS AND SENIOR
MANAGEMENT, INCLUDING COMPENSATION AND BENEFITS PAID TO COMMISSIONERS IN
ANY AMOUNT AND TO  SENIOR  STAFF  IN  EXCESS  OF  ONE  HUNDRED  THOUSAND
DOLLARS;
  F. THE PROJECTS UNDERTAKEN BY THE AUTHORITY DURING THE PAST YEAR;
  G.  A  LISTING  AND  DESCRIPTION OF ALL REAL PROPERTY OF THE AUTHORITY
HAVING AN ESTIMATED FAIR MARKET VALUE EQUAL TO TEN PERCENT  OR  MORE  OF
THE  AUTHORITY'S  TOTAL  ASSETS  OR  TWO HUNDRED FIFTY THOUSAND DOLLARS,
WHICHEVER IS LESS, OR OF A  SIGNIFICANT  VALUE,  AS  DETERMINED  BY  THE
AUTHORITY  BUDGET  OFFICE,  THAT  THE  AUTHORITY ACQUIRES OR DISPOSES OF
DURING SUCH PERIOD. THE REPORT SHALL CONTAIN THE PRICE RECEIVED OR  PAID
BY  THE  AUTHORITY  AND THE NAME OF THE PURCHASER OR SELLER FOR ALL SUCH
PROPERTY OF A SIGNIFICANT VALUE, AS DETERMINED BY THE  AUTHORITY  BUDGET
OFFICE, SOLD OR BOUGHT BY THE AUTHORITY DURING SUCH PERIOD;
  H. ITS CODE OF ETHICS;
  I.  AN  ASSESSMENT OF THE EFFECTIVENESS OF ITS INTERNAL CONTROL STRUC-
TURE AND PROCEDURES;
  J. THE STATUTORY BASIS OF THE AUTHORITY;
  K. A DESCRIPTION OF THE AUTHORITY AND ITS BOARD  STRUCTURE,  INCLUDING
(1)  NAMES OF COMMITTEES AND COMMITTEE MEMBERS, (2) LISTS OF BOARD MEET-
INGS AND ATTENDANCE, (3) DESCRIPTIONS  OF  MAJOR  AUTHORITY  UNITS,  AND
SUBSIDIARIES, AND (4) NUMBER OF EMPLOYEES;
  L. ITS CHARTER AND BY-LAWS;
  M. A LISTING OF MATERIAL CHANGES IN OPERATIONS AND PROGRAMS;
  N.  AT  A  MINIMUM A FOUR-YEAR FINANCIAL PLAN, INCLUDING (1) A CURRENT
AND PROJECTED CAPITAL  BUDGET,  AND  (2)  AN  OPERATING  BUDGET  REPORT,
INCLUDING  AN ACTUAL VERSUS ESTIMATED BUDGET, WITH AN ANALYSIS AND MEAS-
UREMENT OF FINANCIAL AND OPERATING PERFORMANCE;
  O. ITS BOARD PERFORMANCE EVALUATIONS;
  P. A DESCRIPTION OF THE TOTAL NUMBER OF ASSETS  OR  SERVICES  OR  BOTH
BOUGHT  OR SOLD WITHOUT COMPETITIVE BIDDING, INCLUDING (1) THE NATURE OF

A. 2210                             4

THOSE ASSETS AND SERVICES, (2) THE NAMES OF THE BUYERS OR  LESSEES,  AND
(3) WHERE THE CONTRACT PRICE OR FAIR MARKET VALUE EXCEEDS A VALUE DETER-
MINED  BY THE AUTHORITY BUDGET OFFICE, AN ATTESTATION OF THE FAIR MARKET
VALUE BY THE CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER; AND
  Q.  A  DESCRIPTION OF ANY PENDING LITIGATION IN WHICH THE AUTHORITY IS
INVOLVED AS A PARTY.
  THE AUTHORITY SHALL MAKE ACCESSIBLE TO THE PUBLIC, VIA ITS OFFICIAL OR
SHARED INTERNET WEB  SITE,  DOCUMENTATION  PERTAINING  TO  ITS  MISSION,
CURRENT  ACTIVITIES,  MOST RECENT ANNUAL FINANCIAL REPORTS, CURRENT YEAR
BUDGET AND ITS MOST RECENT INDEPENDENT AUDIT REPORT UNLESS SUCH INFORMA-
TION IS EXEMPT PURSUANT TO LAW.
  S 3. Subdivision 2 of article XV-A of section 1 of chapter 154 of  the
laws  of  1921  constituting the Port of New York Authority, as added by
chapter 275 of the laws of 1992, is amended to read as follows:
  2. As used in this act:
  a. "Board" means the board of commissioners of the Port  Authority  of
New York and New Jersey.
  b.  "COMMITTEE"  OR "COMMITTEES" MEANS THE AUDIT COMMITTEE, THE GOVER-
NANCE COMMITTEE, AND THE FINANCE COMMITTEE REQUIRED TO BE ESTABLISHED BY
THE BOARD OF COMMISSIONERS IN ACCORDANCE WITH PARAGRAPHS B, C, AND D  OF
SUBDIVISION 2 OF SECTION ONE-A OF THIS ACT.
  C. "EXECUTIVE SESSION" MEANS THAT PORTION OF A MEETING NOT OPEN TO THE
GENERAL PUBLIC.
  D.  "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.]  E.  "Public  business"  mean  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.
  S  4. Subdivision 3 of article XV-A of section 1 of chapter 154 of the
laws of 1921 constituting the Port of New York Authority,  as  added  by
chapter 275 of the laws of 1992, is amended to read as follows:
  3.  [The  board shall adopt and promulgate appropriate rules and regu-
lations 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.] EVERY MEETING OF THE BOARD, INCLUDING MEETINGS OF  COMMIT-
TEES,  SHALL  BE  OPEN  TO  THE GENERAL PUBLIC, EXCEPT THAT AN EXECUTIVE
SESSION OF SUCH BODY MAY BE CALLED AND BUSINESS  TRANSACTED  THEREAT  IN
ACCORDANCE WITH SUBDIVISION FOUR OF SECTION ONE-B OF THIS ACT. THE BOARD
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 THE PHYSICALLY HANDICAPPED. IF AND WHEN THE BOARD USES VIDOE  CONFER-
ENCING OR SIMILAR TECHNOLOGY TO CONDUCT ITS MEETING, IT SHALL PROVIDE AN
OPPORTUNITY FOR THE PUBLIC TO ATTEND, LISTEN, AND OBSERVE AT ANY SITE AT
WHICH A MEMBER PARTICIPATES.

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  S 5. Chapter 154 of the laws of 1921 constituting the Port of New York
Authority is amended by adding six new sections 1-b, 1-c, 1-d, 1-e, 1-f,
and 1-g to read as follows:
  S  1-B.  1. AS USED IN THIS SECTION, "COMMITTEE" OR "COMMITTEES" MEANS
THE AUDIT COMMITTEE, THE GOVERNANCE COMMITTEE, AND THE FINANCE COMMITTEE
REQUIRED TO BE ESTABLISHED BY THE BOARD OF COMMISSIONERS  IN  ACCORDANCE
WITH  PARAGRAPHS  B,  C, AND D OF SUBDIVISION 2 OF SECTION ONE-A OF THIS
ACT.
  2. AT EVERY MEETING OF THE BOARD AND AT EVERY MEETING OF EACH  COMMIT-
TEE, THE PUBLIC SHALL BE ALLOTTED A PERIOD OF TIME, NOT LESS THAN THIRTY
MINUTES, TO SPEAK ON ANY TOPIC ON THE AGENDA. THE PUBLIC SPEAKING PERIOD
SHALL TAKE PLACE BEFORE ANY ACTION BY THE BOARD OR THE COMMITTEE THAT IS
MEETING.
  3.  THE  AUTHORITY  SHALL MAKE AVAILABLE TO THE PUBLIC MEETING AGENDAS
AND PUBLIC DOCUMENTS PROVIDED TO THE BOARD  OF  COMMISSIONERS  AT  LEAST
FIVE  BUSINESS  DAYS BEFORE EVERY MEETING OF THE BOARD AND EVERY MEETING
OF EACH COMMITTEE. PUBLIC NOTICE OF THE TIME  AND  PLACE  OF  A  MEETING
SHALL  BE  GIVEN TO THE NEWS MEDIA, SHALL BE CONSPICUOUSLY POSTED IN ONE
OR MORE DESIGNATED AREAS AT LEAST SEVENTY-TWO HOURS BEFORE SUCH  MEETING
AND  SHALL BE CONSPICUOUSLY POSTED VIA ITS OFFICIAL INTERNET WEB SITE AT
LEAST FIVE BUSINESS DAYS BEFORE THE MEETING.
  THE PORT AUTHORITY SHALL MAKE AVAILABLE TO THE PUBLIC  SUCH  DOCUMENTS
IN AT LEAST THREE WAYS:
  A.  THE AGENDA AND PUBLIC DOCUMENTS PERTAINING TO THE BOARD OR COMMIT-
TEE MEETINGS SHALL BE AVAILABLE FOR PUBLIC INSPECTION AT  AN  OFFICE  OF
THE AUTHORITY;
  B.  THE AGENDA AND PUBLIC DOCUMENTS PERTAINING TO THE BOARD OR COMMIT-
TEE MEETINGS SHALL BE MAILED TO MEMBERS OF THE PUBLIC ON A PUBLIC NOTICE
MAILING LIST THE AUTHORITY SHALL KEEP AND MAINTAIN; AND
  C. THE AGENDA AND PUBLIC DOCUMENTS PERTAINING TO THE BOARD OR  COMMIT-
TEE MEETINGS SHALL BE POSTED ON ITS OFFICIAL INTERNET WEB SITE.
  4.  UPON  A  MAJORITY  VOTE  OF ITS TOTAL MEMBERSHIP, 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 OR A COMMITTEE MAY
CONDUCT AN EXECUTIVE SESSION FOR THE  BELOW  ENUMERATED  PURPOSES  ONLY,
PROVIDED,  HOWEVER,  THAT  NO  ACTION  BY  FORMAL VOTE SHALL BE TAKEN TO
APPROPRIATE MONEYS AT AN EXECUTIVE SESSION:
  A. MATTERS WHICH WILL IMPERIL THE PUBLIC SAFETY IF DISCLOSED;
  B. ANY MATTER WHICH MAY DISCLOSE THE IDENTITY  OF  A  LAW  ENFORCEMENT
AGENT OR INFORMER;
  C.  INFORMATION  RELATING TO CURRENT OR FUTURE INVESTIGATION OR PROSE-
CUTION OF A CRIMINAL OFFENSE WHICH WOULD IMPERIL EFFECTIVE LAW  ENFORCE-
MENT IF DISCLOSED;
  D. DISCUSSIONS REGARDING PROPOSED, PENDING OR CURRENT LITIGATION;
  E. COLLECTIVE BARGAINING NEGOTIATIONS;
  F.  THE MEDICAL, FINANCIAL, CREDIT, OR EMPLOYMENT HISTORY OF A PARTIC-
ULAR PERSON OR CORPORATION,  OR  MATTERS  LEADING  TO  THE  APPOINTMENT,
EMPLOYMENT,  PROMOTION,  DEMOTION, DISCIPLINE, SUSPENSION, DISMISSAL, OR
REMOVAL OF A PARTICULAR PERSON OR CORPORATION;
  G. THE PREPARATION, GRADING, OR ADMINISTRATION OF EXAMINATIONS; AND
  H. THE PROPOSED ACQUISITION, SALE, OR LEASE OF REAL  PROPERTY  OR  THE
PROPOSED  ACQUISITION  OF  SECURITIES, OR SALE OR EXCHANGE OF SECURITIES
HELD BY THE AUTHORITY,  BUT  ONLY  WHEN  PUBLICITY  WOULD  SUBSTANTIALLY
AFFECT THE VALUE THEREOF.

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  ATTENDANCE AT AN EXECUTIVE SESSION SHALL BE PERMITTED TO ANY MEMBER OF
THE BOARD OR COMMITTEE, AS THE CASE MAY BE, AND ANY OTHER PERSON AUTHOR-
IZED BY THE BOARD OR COMMITTEE.
  5.  MINUTES SHALL BE TAKEN AT ALL OPEN MEETINGS OF THE AUTHORITY WHICH
SHALL CONSIST OF A RECORD OR SUMMARY OF ALL MOTIONS,  PROPOSALS,  RESOL-
UTIONS  AND  ANY  OTHER MATTER FORMALLY VOTED UPON AND THE VOTE THEREON.
MINUTES SHALL BE TAKEN AT EXECUTIVE SESSIONS OF ANY ACTION THAT IS TAKEN
BY FORMAL VOTE WHICH SHALL CONSIST OF A RECORD OR SUMMARY OF  THE  FINAL
DETERMINATION  OF  SUCH ACTION, AND THE VOTE THEREON; PROVIDED, HOWEVER,
THAT SUCH SUMMARY NEED NOT INCLUDE ANY MATTER WHICH IS NOT  REQUIRED  TO
BE  MADE  PUBLIC  BY EITHER NEW YORK'S FREEDOM OF INFORMATION LAW OR NEW
JERSEY'S OPEN PUBLIC RECORDS ACT. MINUTES OF MEETINGS SHALL BE AVAILABLE
TO THE PUBLIC WITHIN TWO WEEKS FROM THE DATE OF SUCH MEETING.
  6. THE STATES OF NEW YORK AND NEW JERSEY CONSENT TO SUITS, ACTIONS, OR
PROCEEDINGS AS PROVIDED HEREIN AGAINST  THE  AUTHORITY  AND  TO  APPEALS
THEREFROM  AND REVIEWS THEREOF. ANY AGGRIEVED PERSON IN THE STATE OF NEW
YORK SHALL HAVE STANDING TO  ENFORCE  THE  PROVISIONS  OF  THIS  SECTION
AGAINST  THE AUTHORITY BY THE COMMENCEMENT OF AN ACTION IN SUPREME COURT
FOR DECLARATORY JUDGMENT AND INJUNCTIVE RELIEF. IN ANY SUCH ACTION,  THE
COURT SHALL HAVE THE POWER, IN ITS DISCRETION, UPON GOOD CAUSE SHOWN, TO
DECLARE  ANY  ACTION  OR PART THEREOF TAKEN IN VIOLATION OF THIS SECTION
VOID IN WHOLE OR IN PART. AN UNINTENTIONAL FAILURE TO FULLY COMPLY  WITH
THE  NOTICE  PROVISIONS  REQUIRED  BY  THIS  SECTION  SHALL NOT ALONE BE
GROUNDS FOR INVALIDATING ANY ACTION TAKEN AT A MEETING  COVERED  BY  THE
PROVISIONS OF THIS SECTION.
  THE  PROVISIONS  OF  THIS SECTION SHALL NOT AFFECT THE VALIDITY OF THE
AUTHORIZATION, ACQUISITION, EXECUTION, OR DISPOSITION OF A BOND ISSUE OR
NOTES. IN ANY PROCEEDING BROUGHT PURSUANT TO  THIS  SECTION,  COSTS  AND
REASONABLE ATTORNEY FEES MAY BE AWARDED BY THE COURT, IN ITS DISCRETION,
TO  THE  SUCCESSFUL PARTY. THE STATUTE OF LIMITATIONS WITH RESPECT TO AN
ACTION TAKEN AT EXECUTIVE SESSION SHALL COMMENCE TO RUN  FROM  THE  DATE
THE  MINUTES  OF  SUCH EXECUTIVE SESSION HAVE BEEN MADE AVAILABLE TO THE
PUBLIC.
  S 1-C. 1. AS USED IN THIS SECTION:
  A. "ADMINISTRATOR" MEANS THE OFFICER OR EMPLOYEE OF THE AUTHORITY  WHO
SHALL  BE APPOINTED BY ACT OF THE BOARD OF COMMISSIONERS TO BE RESPONSI-
BLE FOR THE DISPOSITION OF PROPERTY.
  B. "AUTHORITY" OR "PORT AUTHORITY" MEANS THE  PORT  AUTHORITY  OF  NEW
YORK AND NEW JERSEY.
  C. "DISPOSE" OR "DISPOSAL" MEANS TRANSFER OF TITLE OR ANY OTHER INTER-
EST IN PERSONAL OR REAL PROPERTY.
  D.  "PROPERTY"  MEANS  PERSONAL PROPERTY, REAL ESTATE, OR BOTH, OR ANY
INTEREST IN SUCH PROPERTY AND SHALL  INCLUDE,  WITHOUT  LIMITATION,  ANY
INTEREST  IN  REAL  ESTATE  IN  WHICH THE AUTHORITY HOLDS THE FEE SIMPLE
INTEREST, TO THE EXTENT THAT SUCH INTEREST MAY BE  CONVEYED  TO  ANOTHER
PERSON FOR ANY PURPOSE.
  2.  THE  AUTHORITY SHALL NOT IN ANY WAY DISPOSE OF ANY PROPERTY OF THE
AUTHORITY UNLESS SUCH PROPERTY HAS BEEN LISTED ON A REPORT  PREPARED  IN
ACCORDANCE  WITH  SUBDIVISION  FOUR  OF THIS SECTION, PROVIDED, HOWEVER,
THAT PERSONAL PROPERTY WITH A FAIR MARKET VALUE  OF  LESS  THAN  FIFTEEN
THOUSAND  DOLLARS  MAY  BE SOLD AT AUCTION WITHOUT HAVING BEEN LISTED ON
SUCH A REPORT IF SUCH ITEM OF PERSONAL PROPERTY IS REPORTED IN THE  NEXT
REPORT MADE PURSUANT TO SUBDIVISION 4 OF THIS SECTION.
  3. THE AUTHORITY SHALL:
  A. MAINTAIN ADEQUATE INVENTORY CONTROLS AND ACCOUNTABILITY SYSTEMS FOR
ALL PROPERTY UNDER ITS CONTROL;

A. 2210                             7

  B. CONTINUOUSLY SURVEY SUCH PROPERTY TO DETERMINE WHICH PROPERTY SHALL
BE DISPOSED OF;
  C. PRODUCE A WRITTEN REPORT OF SUCH PROPERTY IN ACCORDANCE WITH SUBDI-
VISION 4 OF THIS SECTION;
  D. PERFORM THE CARE AND HANDLING OF SUCH PROPERTY; AND
  E. TRANSFER OR DISPOSE OF SUCH PROPERTY AS PROMPTLY AS POSSIBLE.
  4.  THE AUTHORITY SHALL PUBLISH, NOT LESS FREQUENTLY THAN QUARTERLY, A
REPORT LISTING ALL PROPERTY OF THE AUTHORITY THAT THE AUTHORITY  INTENDS
TO  DISPOSE OF. SUCH REPORT SHALL CONSIST OF A LIST OF ALL SUCH PROPERTY
HELD BY THE AUTHORITY AT THE END OF THE PERIOD COVERED  BY  THE  REPORT,
AND  ALL  SUCH PROPERTY DISPOSED OF DURING SUCH PERIOD. THE REPORT SHALL
CONTAIN AN ESTIMATE OF FAIR MARKET VALUE FOR ALL SUCH PROPERTY  HELD  BY
THE  AUTHORITY  AT  THE  END OF THE PERIOD AND THE PRICE RECEIVED BY THE
AUTHORITY AND THE NAME OF THE PURCHASER FOR ALL SUCH  PROPERTY  SOLD  BY
THE  AUTHORITY  DURING  SUCH  PERIOD. LOW VALUE PERSONAL PROPERTY MAY BE
LISTED IN SUITABLE GROUPS OR LOTS.  SUCH  REPORT  SHALL  CONTAIN  OR  BE
ACCOMPANIED  BY A LISTING AND DESCRIPTION OF ANY NEGOTIATED DISPOSALS OF
PROPERTY HAVING AN ESTIMATED FAIR MARKET  VALUE  OF  MORE  THAN  FIFTEEN
THOUSAND  DOLLARS,  IN  THE  CASE  OF  REAL  PROPERTY,  OR FIVE THOUSAND
DOLLARS, IN THE CASE OF ANY OTHER PROPERTY,  OTHER  THAN  DISPOSALS  FOR
WHICH AN EXPLANATORY STATEMENT HAS BEEN TRANSMITTED UNDER THIS SECTION.
  THE  AUTHORITY SHALL DELIVER COPIES OF SUCH REPORT TO THE GOVERNORS OF
NEW YORK AND NEW JERSEY, THE TEMPORARY PRESIDENT OF THE SENATE  AND  THE
SPEAKER OF THE ASSEMBLY OF THE NEW YORK STATE LEGISLATURE, THE PRESIDENT
AND MINORITY LEADER OF THE SENATE AND THE SPEAKER AND MINORITY LEADER OF
THE  GENERAL  ASSEMBLY  OF  THE  NEW JERSEY LEGISLATURE, THE INDEPENDENT
BUDGET OFFICER, AND WHOEVER SHALL HAVE REQUESTED COPIES OF SUCH REPORTS.
  5. EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, THE ADMINISTRATOR  OF
THE  AUTHORITY SHALL HAVE SUPERVISION AND DIRECTION OVER THE DISPOSITION
OF PROPERTY OF SUCH AUTHORITY. SUCH PROPERTY SHALL  BE  DISPOSED  OF  TO
SUCH  EXTENT, AT SUCH TIME, IN SUCH AREAS, AT SUCH TERMS AND CONDITIONS,
AND IN SUCH MANNER, AS MAY BE PRESCRIBED IN OR PURSUANT TO THIS SECTION.
  6. THE AUTHORITY MAY DISPOSE OF PROPERTY FOR NOT LESS  THAN  THE  FAIR
MARKET  VALUE  OF  SUCH  PROPERTY  BY  SALE, EXCHANGE, LEASE, PERMIT, OR
TRANSFER, FOR CASH, CREDIT, OR OTHER PROPERTY, WITH OR WITHOUT WARRANTY,
AND UPON SUCH OTHER TERMS AND  CONDITIONS  AS  THE  ADMINISTRATOR  DEEMS
PROPER,  AND  IT MAY EXECUTE SUCH DOCUMENTS FOR THE TRANSFER OF TITLE OR
OTHER INTEREST IN PROPERTY AND TAKE SUCH OTHER ACTION AS IT DEEMS NECES-
SARY OR PROPER TO DISPOSE OF SUCH PROPERTY UNDER THE PROVISIONS OF  THIS
SECTION.  PROVIDED, HOWEVER, THAT NO SALE OF REAL PROPERTY, ANY INTEREST
IN REAL PROPERTY, OR ANY OTHER PROPERTY  WHICH  BECAUSE  OF  ITS  UNIQUE
NATURE  IS  NOT SUBJECT TO NORMAL MARKET PRICING SHALL BE MADE UNLESS AN
APPRAISAL OF THE VALUE OF SUCH PROPERTY HAS BEEN MADE  AND  INCLUDED  IN
THE RECORD OF THE TRANSACTION.
  7.  A DEED, BILL OF SALE, LEASE, OR OTHER INSTRUMENT EXECUTED BY OR ON
BEHALF OF THE AUTHORITY PURPORTING TO TRANSFER TITLE OR ANY OTHER INTER-
EST IN PROPERTY OF THE AUTHORITY UNDER THIS SECTION SHALL BE  CONCLUSIVE
EVIDENCE  OF  COMPLIANCE  WITH THE PROVISIONS OF THIS SECTION INSOFAR AS
CONCERNS TITLE OR OTHER INTEREST OF ANY BONA FIDE GRANTEE OR  TRANSFEREE
FOR VALUE AND WITHOUT NOTICE OF LACK OF SUCH COMPLIANCE.
  8.  A.  ALL  DISPOSALS  OR  CONTRACTS  FOR DISPOSAL OF PROPERTY OF THE
AUTHORITY MADE OR AUTHORIZED BY THE ADMINISTRATOR SHALL  BE  MADE  AFTER
PUBLICLY  ADVERTISING FOR BIDS EXCEPT AS PROVIDED IN PARAGRAPH C OF THIS
SUBDIVISION.
  B. WHENEVER  PUBLIC  ADVERTISING  FOR  BIDS  IS  REQUIRED  UNDER  THIS
SUBSECTION:  (1)  THE  ADVERTISEMENT FOR BIDS SHALL BE MADE AT SUCH TIME

A. 2210                             8

PREVIOUS TO THE DISPOSAL OR CONTRACT, THROUGH SUCH METHODS, AND ON  SUCH
TERMS  AND  CONDITIONS  AS  SHALL  PERMIT THAT FULL AND FREE COMPETITION
WHICH IS CONSISTENT WITH THE VALUE AND NATURE OF THE PROPERTY  INVOLVED;
(2) ALL BIDS SHALL BE PUBLICLY DISCLOSED AT THE TIME AND PLACE STATED IN
THE  ADVERTISEMENT;  AND  (3)  THE  AWARD  SHALL BE MADE WITH REASONABLE
PROMPTNESS BY NOTICE TO THE RESPONSIBLE BIDDER WHOSE BID, CONFORMING  TO
THE  INVITATION  FOR  BIDS,  WILL BE MOST ADVANTAGEOUS TO THE AUTHORITY,
PRICE AND OTHER FACTORS CONSIDERED;  PROVIDED,  THAT  ALL  BIDS  MAY  BE
REJECTED WHEN IT IS IN THE PUBLIC INTEREST TO DO SO.
  C.  DISPOSALS  AND  CONTRACTS  FOR  DISPOSAL MAY BE NEGOTIATED WITHOUT
REGARD TO PARAGRAPHS A AND B OF THIS SUBDIVISION BUT SUBJECT TO  OBTAIN-
ING SUCH COMPETITION AS IS FEASIBLE UNDER THE CIRCUMSTANCES, IF:
  (1)  THE PERSONAL PROPERTY INVOLVED IS OF A NATURE AND QUANTITY WHICH,
IF DISPOSED OF UNDER PARAGRAPHS A AND B    OF  THIS  SUBDIVISION,  WOULD
ADVERSELY AFFECT THE STATE OR LOCAL MARKET FOR SUCH GOODS, AND THE ESTI-
MATED FAIR MARKET VALUE OF SUCH PROPERTY AND OTHER SATISFACTORY TERMS OF
DISPOSAL CAN BE OBTAINED BY NEGOTIATION;
  (2)  THE ESTIMATED FAIR MARKET VALUE OF THE PROPERTY INVOLVED DOES NOT
EXCEED FIFTEEN THOUSAND DOLLARS;
  (3) BID PRICES AFTER ADVERTISING THEREFOR ARE NOT  REASONABLE,  AS  TO
EITHER  ALL OR SOME PART OF THE PROPERTY, OR HAVE NOT BEEN INDEPENDENTLY
ARRIVED AT IN OPEN COMPETITION;
  (4) WITH RESPECT TO REAL PROPERTY ONLY, THE CHARACTER OR CONDITION  OF
THE PROPERTY, THE NATURE OF THE INTEREST TO BE CONVEYED OR OTHER UNUSUAL
CIRCUMSTANCES  MAKE IT IMPRACTICAL TO ADVERTISE PUBLICLY FOR COMPETITIVE
BIDS, AND THE FAIR MARKET VALUE OF THE PROPERTY AND  OTHER  SATISFACTORY
TERMS OF DISPOSAL CAN BE OBTAINED BY NEGOTIATION; OR
  (5)  THE  DISPOSAL WILL BE TO THE STATE OF NEW YORK OR NEW JERSEY, ANY
MUNICIPALITY OR POLITICAL SUBDIVISIONS THEREOF, OR  TAX-SUPPORTED  AGEN-
CIES  THEREIN,  AND  THE ESTIMATED FAIR MARKET VALUE OF THE PROPERTY AND
OTHER SATISFACTORY TERMS OF DISPOSAL ARE OBTAINED BY NEGOTIATION.
  D. (1) AN EXPLANATORY STATEMENT SHALL BE PREPARED OF THE CIRCUMSTANCES
OF EACH DISPOSAL BY NEGOTIATION OF: (I) ANY PERSONAL PROPERTY WHICH  HAS
AN  ESTIMATED  FAIR  MARKET VALUE IN EXCESS OF FIFTEEN THOUSAND DOLLARS;
(II) ANY REAL PROPERTY THAT HAS AN ESTIMATED FAIR MARKET VALUE IN EXCESS
OF ONE HUNDRED THOUSAND DOLLARS, EXCEPT THAT ANY REAL PROPERTY  DISPOSED
OF  BY  LEASE OR EXCHANGE SHALL ONLY BE SUBJECT TO CLAUSES (III) THROUGH
(V) OF THIS SUBPARAGRAPH; (III) ANY REAL PROPERTY DISPOSED OF  BY  LEASE
FOR  A  TERM OF FIVE YEARS OR LESS, IF THE ESTIMATED FAIR ANNUAL RENT IS
IN EXCESS OF ONE HUNDRED THOUSAND DOLLARS FOR ANY OF  SUCH  YEARS;  (IV)
ANY  REAL  PROPERTY  DISPOSED  OF  BY LEASE FOR A TERM OF MORE THAN FIVE
YEARS, IF THE TOTAL ESTIMATED RENT OVER THE TERM  OF  THE  LEASE  IS  IN
EXCESS OF ONE HUNDRED THOUSAND DOLLARS; OR (V) ANY REAL PROPERTY OR REAL
AND  RELATED  PERSONAL  PROPERTY  DISPOSED OF BY EXCHANGE, REGARDLESS OF
VALUE, OR ANY PROPERTY ANY PART OF THE CONSIDERATION FOR WHICH  IS  REAL
PROPERTY.
  (2)  EACH  SUCH STATEMENT SHALL BE TRANSMITTED TO THE PERSONS ENTITLED
TO RECEIVE COPIES OF THE REPORT REQUIRED UNDER  THIS  SECTION  NOT  LESS
THAN  NINETY  DAYS IN ADVANCE OF SUCH DISPOSAL, AND A COPY THEREOF SHALL
BE PRESERVED IN THE FILES OF THE AUTHORITY MAKING SUCH DISPOSAL.
  S 1-D. 1. AS USED IN THIS SECTION:
  A. "AUTHORITY" OR "PORT AUTHORITY" MEANS THE  PORT  AUTHORITY  OF  NEW
YORK AND NEW JERSEY.
  B.  "INSPECTOR  GENERAL"  MEANS  THE  PORT AUTHORITY INSPECTOR GENERAL
CREATED BY SUBDIVISION TWO OF THIS SECTION.

A. 2210                             9

  2. A. THERE SHALL BE A PORT AUTHORITY INSPECTOR GENERAL WHO SHALL HAVE
AND EXERCISE THE  POWERS,  DUTIES  AND  PREROGATIVES  PROVIDED  BY  THIS
SECTION  AND ANY OTHER PROVISIONS OF LAW. THE INSPECTOR GENERAL SHALL BE
JOINTLY APPOINTED BY THE GOVERNORS OF NEW YORK AND  NEW  JERSEY  FROM  A
LIST OF NO FEWER THAN SIX INDIVIDUALS SUBMITTED BY EACH STATE'S ATTORNEY
GENERAL. IF THE INSPECTOR GENERAL IS A LEGAL RESIDENT OF ONE STATE, THEN
THE INDEPENDENT BUDGET OFFICER APPOINTED UNDER SECTION ONE-E OF THIS ACT
MUST BE A LEGAL RESIDENT OF THE OTHER STATE.
  B.  THE  TERM  OF  THE  FIRST  INSPECTOR  GENERAL APPOINTED UNDER THIS
SECTION SHALL BEGIN ON THE DATE OF APPOINTMENT, AND SHALL END  ON  MARCH
THIRTY-FIRST  OF  THE  FIFTH CALENDAR YEAR BEGINNING AFTER THE EFFECTIVE
DATE OF  THIS  SECTION.  ALL  SUBSEQUENT  INSPECTORS  GENERAL  SHALL  BE
APPOINTED  FOR A FIVE YEAR TERM. IN THE EVENT THAT A VACANCY SHALL OCCUR
FOR ANY REASON DURING ANY FIVE YEAR TERM, THE VACANCY  SHALL  BE  FILLED
FOR  THE  REMAINDER  OF THE UNCOMPLETED TERM, PROVIDED, HOWEVER, THAT IF
THE UNCOMPLETED TERM IS LESS THAN TWO YEARS, THE GOVERNORS  MAY  JOINTLY
APPOINT THE NEW INSPECTOR GENERAL TO A FULL FIVE YEAR TERM.
  C.  THE  OFFICE  OF THE INSPECTOR GENERAL SHALL BE IN, BUT INDEPENDENT
OF, ANY SUPERVISION OR CONTROL BY  THE  AUTHORITY  OR  ANY  OFFICERS  OR
EMPLOYEES  THEREOF.  THE  INSPECTOR  GENERAL'S SALARY SHALL BE AN AMOUNT
EQUAL TO 75 PERCENT OF THE SALARY OF THE AUTHORITY'S EXECUTIVE DIRECTOR.
THE ANNUAL BUDGET FOR THE OFFICE  SHALL  BE  DETERMINED  IN  THE  MANNER
PROVIDED  BY  THIS  ACT AND FULLY FUNDED BY THE AUTHORITY. THE AUTHORITY
SHALL ARRANGE FOR SUITABLE OFFICE SPACE, EQUIPMENT, AND RESOURCES.
  D. THE INSPECTOR GENERAL MAY BE REMOVED FROM OFFICE FOR CAUSE  BY  THE
GOVERNORS ACTING JOINTLY, AFTER A PUBLIC HEARING.
  3.  A.  THE  INSPECTOR  GENERAL  SHALL BE AUTHORIZED TO APPOINT AND AT
PLEASURE REMOVE DEPUTY INSPECTORS GENERAL, ASSISTANT  DEPUTY  INSPECTORS
GENERAL,  AND  SUCH  OTHER  STAFF, INCLUDING INVESTIGATORS, ACCOUNTANTS,
ADMINISTRATIVE ASSISTANTS, AND SUCH OTHER SUPPORT STAFF AND  CONSULTANTS
AS  HE  SHALL DEEM NECESSARY AND APPROPRIATE TO ACCOMPLISH THE RESPONSI-
BILITIES AND DUTIES CONTAINED IN THIS ACT OR ELSEWHERE IN LAW,  AND  FIX
AND  DETERMINE THE QUALIFICATIONS, DUTIES AND COMPENSATION OF SUCH ADDI-
TIONAL OFFICERS AND STAFF, SUBJECT TO A MERIT SYSTEM TO  BE  ESTABLISHED
BY  THE  INSPECTOR  GENERAL. THE INSPECTOR GENERAL MAY ALSO FROM TIME TO
TIME CONTRACT FOR SUCH EXPERT PROFESSIONAL SERVICES  AS  MAY  BE  DEEMED
NECESSARY AND CONVENIENT.
  B.  NOT  MORE  THAN NINETY DAYS FROM THE BEGINNING OF HIS OR HER TERM,
THE FIRST INSPECTOR GENERAL SHALL PROPOSE AND DELIVER TO  THE  GOVERNORS
OF  NEW  YORK  AND  NEW  JERSEY,  THE NEW YORK ATTORNEY GENERAL, THE NEW
JERSEY ATTORNEY GENERAL, THE TEMPORARY PRESIDENT OF THE SENATE  AND  THE
SPEAKER OF THE ASSEMBLY OF THE NEW YORK STATE LEGISLATURE, AND THE PRES-
IDENT  AND  MINORITY  LEADER  OF THE SENATE AND THE SPEAKER AND MINORITY
LEADER OF THE GENERAL ASSEMBLY OF THE NEW JERSEY LEGISLATURE A  PLAN  OF
ORGANIZATION OF THE OFFICE OF THE INSPECTOR GENERAL SO AS TO PROVIDE THE
SERVICES  NORMALLY  PROVIDED  BY AN INSPECTOR GENERAL IN AN ADEQUATE AND
COST EFFECTIVE MANNER. THEREAFTER, THE INSPECTOR GENERAL MAY  FROM  TIME
TO  TIME PROPOSE AN AMENDED OR MODIFIED PLAN OF ORGANIZATION IN ORDER TO
FULFILL ITS STATUTORY  OBLIGATION.  THE  PLAN  OF  ORGANIZATION  OF  THE
INSPECTOR  GENERAL  SHALL  BE  EFFECTIVE  UNTIL  MODIFIED,  AMENDED,  OR
REPLACED BY LAW.
  C. ALL COSTS AND EXPENSES OF THE OFFICE OF THE INSPECTOR GENERAL SHALL
BE PAID FOR AND BORNE BY THE AUTHORITY.
  D. THE INSPECTOR GENERAL SHALL ESTIMATE AND DELIVER TO  THE  ATTORNEYS
GENERAL,  THE  COMPTROLLER OF THE STATE OF NEW YORK, THE STATE TREASURER
OF NEW JERSEY, THE TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER  OF

A. 2210                            10

THE ASSEMBLY OF THE NEW YORK STATE LEGISLATURE, THE PRESIDENT AND MINOR-
ITY  LEADER  OF  THE  SENATE  AND THE SPEAKER AND MINORITY LEADER OF THE
GENERAL ASSEMBLY OF THE NEW JERSEY LEGISLATURE, AND THE BOARD OF COMMIS-
SIONERS  PRIOR  TO  DECEMBER  FIRST  OF  EACH  YEAR  THE TOTAL COSTS AND
EXPENSES FOR THE  SUBSEQUENT  AUTHORITY'S  FISCAL  YEAR,  INCLUDING  THE
COMPENSATION AND EXPENSES OF THE INSPECTOR GENERAL AND HIS OR HER STAFF,
THEIR  AGENTS,  AND  EMPLOYEES,  AND  INCLUDING  THE  COST OF RETIREMENT
CONTRIBUTIONS, SOCIAL SECURITY, HEALTH AND DENTAL INSURANCE,  SURVIVOR'S
BENEFITS, WORKERS' COMPENSATION, UNEMPLOYMENT INSURANCE, AND OTHER BENE-
FITS  REQUIRED TO BE PAID FOR THE PERSONNEL OF THE OFFICE OF THE INSPEC-
TOR GENERAL, AND INCLUDING ALL OTHER ITEMS OF MAINTENANCE AND  OPERATION
EXPENSES,  AND  ALL  OTHER  DIRECT AND INDIRECT COSTS. UNLESS AMENDED BY
LAW, THE ESTIMATE AND  ALLOCATION  SHALL  BECOME  FINAL.  THE  INSPECTOR
GENERAL  SHALL RENDER BILLS IN ACCORDANCE WITH THE ORIGINAL ESTIMATE AND
ALLOCATION TO THE AUTHORITY, NOT LATER THAN FEBRUARY FIRST PRIOR TO  THE
BEGINNING  OF  THE APPLICABLE FISCAL YEAR; AN AMENDED BILL IN ACCORDANCE
WITH ANY AMENDING CHAPTER OF LAW SHALL BE SENT OUT AS SOON AS  PRACTICA-
BLE AFTER THE ENACTMENT OF SUCH LAW.
  4.  A.  IN ADDITION TO ANY OTHER DUTIES AND RESPONSIBILITIES AS MAY BE
PROVIDED BY LAW, THE INSPECTOR GENERAL SHALL HAVE THE DUTY AND RESPONSI-
BILITY TO:
  (1) INITIATE, CONDUCT, AND SUPERVISE SUCH INQUIRIES AND INVESTIGATIONS
RELATING TO ANY ALLEGED OR  POSSIBLE  WRONG,  WHETHER  CIVIL,  CRIMINAL,
ADMINISTRATIVE,  OR  ETHICAL  IN  NATURE,  IN THE AUTHORITY AS HE OR SHE
CONSIDERS APPROPRIATE BASED ON INFORMATION RECEIVED FROM ANY OFFICER  OR
EMPLOYEE  OF  THE  AUTHORITY OR FROM ANY OTHER INFORMANT, OR UPON HIS OR
HER OWN INITIATIVE, PROVIDED, HOWEVER, THAT THE INSPECTOR GENERAL  SHALL
PROMPTLY  TURN OVER TO THE PROPER PROSECUTORIAL AUTHORITIES ANY SUBSTAN-
TIAL EVIDENCE THAT A CRIME HAS BEEN COMMITTED;
  (2) INVESTIGATE EVIDENCE OR ALLEGATIONS OF CORRUPTION,  GRAFT,  FRAUD,
CONFLICTS  OF  INTEREST,  UNLAWFUL DISCRIMINATION, OR OTHER ABUSE IN THE
AUTHORITY;
  (3) INFORM THE GOVERNORS OF NEW YORK AND NEW JERSEY,  THE  COMPTROLLER
OF  NEW YORK, THE STATE TREASURER OF NEW JERSEY, THE TEMPORARY PRESIDENT
OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY  OF  THE  NEW  YORK  STATE
LEGISLATURE,  THE  PRESIDENT  AND  MINORITY LEADER OF THE SENATE AND THE
SPEAKER AND MINORITY LEADER OF THE GENERAL ASSEMBLY OF  THE  NEW  JERSEY
LEGISLATURE, THE BOARD AND SENIOR STAFF OF THE AUTHORITY, AND THE PUBLIC
CONCERNING  ALLEGATIONS,  EVIDENCE,  AND  THE RESULTS OF INVESTIGATIONS;
PROVIDED, HOWEVER, THAT SUCH REPORTING SHALL BE DONE AT SUCH  TIMES  AND
IN SUCH DETAIL AS THE CIRCUMSTANCES REQUIRE;
  (4)  RECOMMEND  APPROPRIATE ACTION WITH RESPECT TO EACH INVESTIGATION,
SUCH AS DISCIPLINARY ACTION, CIVIL  LAWSUIT,  CRIMINAL  PROSECUTION,  OR
REFERRAL  TO  AN APPROPRIATE FEDERAL, STATE, OR LOCAL AGENCY FOR FURTHER
INVESTIGATION OR ACTION AND TO  COOPERATE  IN  ANY  CONTINUING  INVESTI-
GATION;
  (5)  PREPARE  AND  RELEASE  TO THE PUBLIC WRITTEN REPORTS OF EACH SUCH
INVESTIGATION AND PERIODIC SUMMARY REPORTS  OF  INVESTIGATIVE  ACTIVITY;
PROVIDED, HOWEVER, THAT SUCH REPORTS AND SUMMARY REPORTS MAY BE DELAYED,
REDACTED, OR WRITTEN USING FICTITIOUS NAMES SO AS TO PRESERVE THE PRIVA-
CY RIGHTS OF AFFECTED INDIVIDUALS;
  (6)  REVIEW  AND  EXAMINE THE POLICIES AND PROCEDURES OF THE AUTHORITY
WITH REGARD TO THE PREVENTION AND DETECTION OF CORRUPTION, GRAFT, FRAUD,
CONFLICTS OF INTEREST, UNLAWFUL DISCRIMINATION, OR OTHER ABUSE;

A. 2210                            11

  (7) RECOMMEND REMEDIAL ACTION  TO  PREVENT  OR  ELIMINATE  CORRUPTION,
GRAFT,  FRAUD,  CONFLICTS OF INTEREST, UNLAWFUL DISCRIMINATION, OR OTHER
ABUSE; AND
  (8)  ESTABLISH OR MONITOR TRAINING PROGRAMS FOR OFFICERS AND EMPLOYEES
OF THE AUTHORITY REGARDING THE PREVENTION OR ELIMINATION OF  CORRUPTION,
GRAFT,  FRAUD,  CONFLICTS OF INTEREST, UNLAWFUL DISCRIMINATION, OR OTHER
ABUSE.
  B. IN ADDITION TO THE AUTHORITY OTHERWISE PROVIDED BY LAW, THE INSPEC-
TOR GENERAL, EACH DEPUTY INSPECTOR GENERAL, AND  EACH  ASSISTANT  DEPUTY
INSPECTOR  GENERAL,  IN  CARRYING OUT THE PROVISIONS OF THIS ARTICLE, IS
AUTHORIZED TO:
  (1) HAVE ACCESS TO ALL RECORDS, REPORTS, AUDITS,  REVIEWS,  DOCUMENTS,
PAPERS,  RECOMMENDATIONS,  OR OTHER MATERIAL ON ANY MATTER INVOLVING THE
OPERATIONS OR ADMINISTRATION OF THE AUTHORITY SUBJECT  TO  INVESTIGATION
BY THE INSPECTOR GENERAL;
  (2)  REQUEST  SUCH  INFORMATION  OR ASSISTANCE AS MAY BE NECESSARY FOR
CARRYING OUT THE DUTIES AND RESPONSIBILITIES OF  THE  INSPECTOR  GENERAL
FROM ANY FEDERAL, STATE, OR LOCAL GOVERNMENT OR ANY AGENCY OR UNIT THER-
EOF;
  (3)  REQUIRE BY SUBPOENA THE PRODUCTION OF ALL INFORMATION, DOCUMENTS,
REPORTS, ANSWERS, RECORDS, ACCOUNTS, PAPERS, AND OTHER DATA AND DOCUMEN-
TARY EVIDENCE NECESSARY OR USEFUL IN THE PERFORMANCE OF  THE  DUTIES  OR
RESPONSIBILITIES  OF  THE  INSPECTOR  GENERAL,  WHICH  SUBPOENA SHALL BE
ENFORCEABLE WITHIN THE STATE OF NEW YORK BY ORDER OF THE  SUPREME  COURT
OF APPROPRIATE JURISDICTION AND VENUE;
  (4)  ADMINISTER  TO  OR  TAKE FROM ANY PERSON AN OATH, AFFIRMATION, OR
AFFIDAVIT, WHENEVER NECESSARY  IN  THE  PERFORMANCE  OF  THE  DUTIES  OR
RESPONSIBILITIES  OF  THE INSPECTOR GENERAL, WHICH OATH, AFFIRMATION, OR
AFFIDAVIT WHEN ADMINISTERED OR TAKEN BY OR BEFORE  AN  EMPLOYEE  OF  THE
OFFICE  OF  INSPECTOR  GENERAL DESIGNATED BY THE INSPECTOR GENERAL SHALL
HAVE THE SAME FORCE AND EFFECT AS IF ADMINISTERED OR TAKEN BY OR  BEFORE
A NOTARY PUBLIC OF THE STATE OF NEW JERSEY OR THE STATE OF NEW YORK;
  (5)  HAVE  DIRECT  AND  PROMPT ACCESS TO THE CHAIRMAN OF THE AUTHORITY
WHEN NECESSARY OR USEFUL IN THE PERFORMANCE OF THE DUTIES  OR  RESPONSI-
BILITIES OF THE INSPECTOR GENERAL; AND
  (6)  ENTER  INTO CONTRACTS AND OTHER ARRANGEMENTS FOR AUDITS, STUDIES,
ANALYSES, AND OTHER  SERVICES  WITH  PUBLIC  AGENCIES  OR  WITH  PRIVATE
PERSONS  AS  MAY BE DEEMED NECESSARY OR USEFUL IN THE PERFORMANCE OF THE
DUTIES OR RESPONSIBILITIES OF THE INSPECTOR GENERAL.
  C. (1) NO INFORMATION, DOCUMENTS, REPORTS, ANSWERS, RECORDS, ACCOUNTS,
PAPERS, AND OTHER DATA AND DOCUMENTARY EVIDENCE SHALL BE DENIED  TO  THE
INSPECTOR GENERAL OR ANY PERSON ACTING ON BEHALF OF THE INSPECTOR GENER-
AL: (I) BECAUSE OF ANY PRIVILEGE OR ALLEGED PRIVILEGE, INCLUDING BUT NOT
LIMITED TO THE ATTORNEY-CLIENT PRIVILEGE, EXECUTIVE PRIVILEGE, OR PUBLIC
INTEREST PRIVILEGE, WHICH BELONGS TO OR COULD BE WAIVED BY THE AUTHORITY
IN  POSSESSION  OF  THE INFORMATION; OR (II) BECAUSE OF ANY DEFENSE THAT
THE AUTHORITY MAY HAVE AGAINST ANY REQUEST FOR ANY SUCH EVIDENCE.
  (2) IF THE AUTHORITY BELIEVES THAT ANY SUCH EVIDENCE IS PRIVILEGED  OR
OTHERWISE PROTECTED AGAINST DISCLOSURE, THE AUTHORITY SHALL NEVERTHELESS
MAKE OR PERMIT ANY SUCH DISCLOSURE, AND THE AUTHORITY MAY AT THE TIME OF
SUCH  DISCLOSURE  MAKE  A CLAIM OF CONFIDENTIALITY FOR ANY SUCH EVIDENCE
AND STATE WITH PARTICULARITY THE NATURE OF SUCH CLAIM.
  (3) NOTWITHSTANDING ANY OTHER PROVISIONS OF STATUTE OR COMMON LAW, THE
DISCLOSURE OF ANY EVIDENCE TO THE INSPECTOR GENERAL  UNDER  A  CLAIM  OF
CONFIDENTIALITY  SHALL  NOT BE CONSTRUED TO BE A WAIVER OF ANY PRIVILEGE
OR ANY OTHER PROTECTION  AGAINST  DISCLOSURE.  SUCH  EVIDENCE  SHALL  BE

A. 2210                            12

PROTECTED  AGAINST  SUBPOENA  OR  OTHER FORM OF FORCED DISCLOSURE TO THE
SAME EXTENT THAT IT WOULD HAVE BEEN IF IT HAD NEVER  BEEN  DISCLOSED  TO
THE INSPECTOR GENERAL.
  (4)  THE INSPECTOR GENERAL MAY, IN HIS OR HER DISCRETION, DETERMINE TO
DISCLOSE ANY EVIDENCE RECEIVED UNDER THE CLAIM OF CONFIDENTIALITY UPON A
FINDING THAT THE MATTER UNDER INVESTIGATION IS HIGHLY IMPORTANT  TO  THE
AUTHORITY  AND  THAT  THE PUBLIC HAS A RIGHT TO RECEIVE KNOWLEDGE OF THE
RESULT OF THE INVESTIGATION, AND THAT THE EVIDENCE (I) IS HIGHLY MATERI-
AL AND RELEVANT TO THE MATTER UNDER INVESTIGATION; (II) IS  CRITICAL  OR
NECESSARY  TO  AN UNDERSTANDING OF THE OUTCOME OF THE INVESTIGATION; AND
(III) IS NOT READILY OBTAINABLE FROM ANY ALTERNATIVE SOURCE.
  (5) NOTWITHSTANDING SUBPARAGRAPH (4) OF THIS PARAGRAPH, THE  INSPECTOR
GENERAL  MAY  NOT DISCLOSE ANY EVIDENCE RECEIVED UNDER A CLAIM OF CONFI-
DENTIALITY WITHOUT FIRST GIVING THIRTY DAYS ADVANCE  WRITTEN  NOTICE  TO
THE  AUTHORITY AND ANY OTHER PERSON WHO MAY BE ENTITLED TO OBJECT TO THE
DISCLOSURE OF THE EVIDENCE. IN THE EVENT OF  ANY  CIVIL  ACTION  IN  THE
COURTS  OF  NEW JERSEY OR NEW YORK TO PREVENT THE DISCLOSURE OF ANY SUCH
EVIDENCE, THE COURT SHALL ALLOW THE DISCLOSURE UNLESS IT SHALL FIND THAT
THE INSPECTOR GENERAL HAS ABUSED HIS OR HER DISCRETION.  THE  COURT  MAY
AWARD  REASONABLE  ATTORNEYS' FEES AND DISBURSEMENTS REASONABLY INCURRED
TO A LITIGANT THAT SUBSTANTIALLY PREVAILS AGAINST THE RELEASE OF  INFOR-
MATION  BY  THE  INSPECTOR  GENERAL  IF  THE  INSPECTOR GENERAL LACKED A
REASONABLE BASIS PURSUANT TO THIS SECTION FOR THE CHALLENGED RELEASE  OF
INFORMATION.
  S 1-E. 1. AS USED IN THIS SECTION:
  A.  "AUTHORITY"  OR  "PORT  AUTHORITY" MEANS THE PORT AUTHORITY OF NEW
YORK AND NEW JERSEY.
  B. "COMPTROLLER" MEANS THE NEW YORK STATE COMPTROLLER.
  C. "INDEPENDENT BUDGET OFFICER" MEANS THE PORT  AUTHORITY  INDEPENDENT
BUDGET OFFICER CREATED BY THIS SECTION.
  D. "TREASURER" MEANS THE STATE TREASURER OF NEW JERSEY.
  2.  A.  THERE SHALL BE A PORT AUTHORITY INDEPENDENT BUDGET OFFICER WHO
SHALL HAVE AND EXERCISE THE POWERS, DUTIES AND PREROGATIVES PROVIDED  BY
THIS  SECTION  AND  ANY  OTHER PROVISIONS OF LAW. THE INDEPENDENT BUDGET
OFFICER SHALL BE APPOINTED JOINTLY BY THE GOVERNORS OF NEW YORK AND  NEW
JERSEY  FROM  A  LIST  OF NO FEWER THAN SIX INDIVIDUALS SUBMITTED BY THE
COMPTROLLER AND THE TREASURER. IF THE INDEPENDENT BUDGET  OFFICER  IS  A
LEGAL  RESIDENT OF ONE STATE, THEN THE INSPECTOR GENERAL APPOINTED UNDER
SECTION ONE-D OF THIS ACT MUST BE A LEGAL RESIDENT OF THE OTHER STATE.
  B. THE TERM OF THE FIRST INDEPENDENT BUDGET  OFFICER  APPOINTED  UNDER
THIS  SECTION  SHALL  BEGIN ON THE DATE OF APPOINTMENT, AND SHALL END ON
THE THIRTY-FIRST OF MARCH OF THE FIFTH CALENDAR YEAR BEGINNING AFTER THE
EFFECTIVE DATE OF THIS ACT. ALL SUBSEQUENT INDEPENDENT  BUDGET  OFFICERS
SHALL  BE  APPOINTED  FOR  A FIVE YEAR TERM. IN THE EVENT THAT A VACANCY
SHALL OCCUR FOR ANY REASON DURING ANY FIVE YEAR TERM, THE VACANCY  SHALL
BE  FILLED FOR THE REMAINDER OF THE UNCOMPLETED TERM, PROVIDED, HOWEVER,
THAT IF THE UNCOMPLETED TERM IS LESS THAN TWO YEARS,  THE  GOVERNORS  OF
EACH STATE SHALL JOINTLY APPOINT THE NEW INDEPENDENT BUDGET OFFICER TO A
FULL FIVE YEAR TERM.
  C. THE OFFICE OF THE INDEPENDENT BUDGET OFFICER SHALL BE IN, BUT INDE-
PENDENT  OF, ANY SUPERVISION OR CONTROL BY, THE AUTHORITY OR ANY OFFICER
OR EMPLOYEE THEREOF. THE INDEPENDENT BUDGET OFFICER'S SALARY SHALL BE AN
AMOUNT EQUAL TO 75 PERCENT OF THE SALARY OF  THE  AUTHORITY'S  EXECUTIVE
DIRECTOR. THE ANNUAL BUDGET FOR THE OFFICE SHALL BE DETERMINED AND FUND-
ED  IN  THE  MANNER  PROVIDED  BY  THIS SECTION, AND FULLY FUNDED BY THE

A. 2210                            13

AUTHORITY. THE AUTHORITY SHALL ARRANGE FOR SUITABLE OFFICE SPACE, EQUIP-
MENT AND RESOURCES.
  D. THE INDEPENDENT BUDGET OFFICER MAY BE REMOVED FROM OFFICE FOR CAUSE
BY THE GOVERNORS ACTING JOINTLY, AFTER A PUBLIC HEARING.
  3.  A.  THE  INDEPENDENT BUDGET OFFICER SHALL BE AUTHORIZED TO APPOINT
AND AT PLEASURE REMOVE DEPUTY BUDGET OFFICERS, ASSISTANT  DEPUTY  BUDGET
OFFICERS,  AND  SUCH  OTHER STAFF, INCLUDING ACCOUNTANTS, ADMINISTRATIVE
ASSISTANTS, AND SUCH OTHER SUPPORT STAFF AND CONSULTANTS AS  HE  OR  SHE
SHALL  DEEM NECESSARY AND APPROPRIATE TO ACCOMPLISH THE RESPONSIBILITIES
AND DUTIES CONTAINED IN THIS ACT OR ELSEWHERE IN LAW, AND FIX AND DETER-
MINE THE QUALIFICATIONS, DUTIES, AND  COMPENSATION  OF  SUCH  ADDITIONAL
OFFICERS  AND  STAFF, SUBJECT TO A MERIT SYSTEM TO BE ESTABLISHED BY THE
INDEPENDENT BUDGET OFFICER. THE INDEPENDENT BUDGET OFFICER MAY ALSO FROM
TIME TO TIME CONTRACT FOR SUCH EXPERT PROFESSIONAL SERVICES  AS  MAY  BE
DEEMED NECESSARY AND CONVENIENT.
  B.  NOT  MORE  THAN NINETY DAYS FROM THE BEGINNING OF HIS OR HER TERM,
THE FIRST INDEPENDENT BUDGET OFFICER SHALL PROPOSE TO  THE  COMPTROLLER,
THE TREASURER, THE TEMPORARY PRESIDENT OF THE SENATE  AND THE SPEAKER OF
THE ASSEMBLY OF THE NEW YORK STATE LEGISLATURE, THE PRESIDENT AND MINOR-
ITY  LEADER  OF  THE  SENATE  AND THE SPEAKER AND MINORITY LEADER OF THE
GENERAL ASSEMBLY OF THE NEW JERSEY LEGISLATURE,  THE  GOVERNORS  OF  NEW
YORK  AND NEW JERSEY, AND THE BOARD OF COMMISSIONERS A PLAN OF ORGANIZA-
TION OF THE OFFICE OF THE INDEPENDENT BUDGET OFFICER SUCH THAT THE INDE-
PENDENT BUDGET OFFICER WILL BE ABLE TO  PROVIDE  THE  SERVICES  REQUIRED
PURSUANT  TO  THIS  ACT  IN THE MOST COST-EFFECTIVE WAY. THEREAFTER, ANY
INDEPENDENT BUDGET OFFICER MAY FROM TIME TO TIME SUBMIT  AN  AMENDED  OR
MODIFIED  PLAN  OF  ORGANIZATION  TO  FULFILL HIS OR HER STATUTORY OBLI-
GATION. THE PLAN OF ORGANIZATION OF THE INDEPENDENT BUDGET OFFICER SHALL
BE EFFECTIVE UNTIL MODIFIED, AMENDED, OR REPLACED  BY  THE  COMPTROLLER,
THE TREASURER, OR BY LAW.
  C.  THE  INDEPENDENT  BUDGET OFFICER SHALL ESTIMATE AND DELIVER TO THE
BOARD OF COMMISSIONERS, THE COMPTROLLER, THE TREASURER, THE STATE  AUDI-
TOR OF NEW JERSEY, THE TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER
OF  THE  ASSEMBLY  OF  THE NEW YORK STATE LEGISLATURE, THE PRESIDENT AND
MINORITY LEADER OF THE SENATE AND THE SPEAKER AND MINORITY LEADER OF THE
GENERAL ASSEMBLY OF THE NEW JERSEY LEGISLATURE, AND THE GOVERNORS OF NEW
YORK AND NEW JERSEY PRIOR TO NOVEMBER FIRST OF EACH YEAR THE TOTAL COSTS
AND EXPENSES FOR THE SUBSEQUENT STATE FISCAL YEAR, INCLUDING THE COMPEN-
SATION AND EXPENSES OF THE INDEPENDENT BUDGET OFFICER  AND  HIS  OR  HER
STAFF, THEIR AGENTS, AND EMPLOYEES, AND INCLUDING THE COST OF RETIREMENT
CONTRIBUTIONS,  SOCIAL SECURITY, HEALTH AND DENTAL INSURANCE, SURVIVOR'S
BENEFITS, WORKERS' COMPENSATION, UNEMPLOYMENT INSURANCE AND OTHER FRINGE
BENEFITS REQUIRED TO BE PAID FOR THE PERSONNEL  OF  THE  OFFICE  OF  THE
INDEPENDENT BUDGET OFFICER, AND INCLUDING ALL OTHER ITEMS OF MAINTENANCE
AND  OPERATION  EXPENSES, AND ALL OTHER DIRECT AND INDIRECT COSTS. BASED
ON SUCH ESTIMATE, THE INDEPENDENT BUDGET  OFFICER  SHALL  DETERMINE  THE
AMOUNT  TO BE PAID BY THE AUTHORITY. UNLESS AMENDED BY LAW, THE ESTIMATE
AND ALLOCATION SHALL BECOME FINAL. THE INDEPENDENT BUDGET OFFICER  SHALL
RENDER  BILLS IN ACCORDANCE WITH THE ORIGINAL ESTIMATE AND ALLOCATION TO
THE AUTHORITY, NOT LATER THAN FEBRUARY FIRST PRIOR TO THE  BEGINNING  OF
THE  APPLICABLE  FISCAL  YEAR;  AN  AMENDED  BILL IN ACCORDANCE WITH ANY
AMENDING LAW SHALL BE SENT OUT AS SOON AS PRACTICABLE AFTER  THE  ENACT-
MENT OF SUCH LAW.
  4.  A.  THE  INDEPENDENT  BUDGET OFFICER SHALL BE AUTHORIZED TO SECURE
SUCH INFORMATION, DATA, ESTIMATES, AND STATISTICS FROM THE AUTHORITY  AS
HE  OR  SHE  DETERMINES TO BE NECESSARY FOR THE PERFORMANCE OF THE FUNC-

A. 2210                            14

TIONS AND DUTIES OF THE OFFICE, AND THE  AUTHORITY  SHALL  PROVIDE  SUCH
INFORMATION,  TO  THE  EXTENT THAT IT IS AVAILABLE, IN A TIMELY FASHION.
THE INDEPENDENT BUDGET OFFICER SHALL NOT BE ENTITLED TO  OBTAIN  RECORDS
WHICH  ARE  PROTECTED  BY  THE  PRIVILEGES  FOR ATTORNEY-CLIENT COMMUNI-
CATIONS, ATTORNEY WORK PRODUCT, AND MATERIAL PREPARED FOR LITIGATION.
  B. IT SHALL BE THE DUTY OF THE INDEPENDENT BUDGET OFFICER  TO  PROVIDE
TO  THE  BOARD OF THE AUTHORITY, ANY ELECTED PUBLIC OFFICIAL OF STATE OR
LOCAL GOVERNMENT INTERESTED IN  THE  AUTHORITY,  AND  ANY  ACTION  GROUP
ORGANIZED  FOR  THE  PURPOSE OF AFFECTING THE AUTHORITY'S GOVERNANCE AND
OPERATIONS, ANY INFORMATION WHICH WILL ASSIST SUCH BODIES AND  OFFICIALS
IN  THE  DISCHARGE  OF  THEIR  RESPONSIBILITIES  OR  FUNCTIONS WHICH ARE
RELATED TO THE BUDGETARY PROCESS, INCLUDING:
  (1) INFORMATION WITH RESPECT TO THE BUDGET EXPENDITURES;
  (2) INFORMATION WITH RESPECT TO ESTIMATED REVENUES  AND  RECEIPTS  AND
CHANGING REVENUE CONDITIONS; AND
  (3)  TO  THE EXTENT PRACTICABLE, SUCH OTHER INFORMATION OR ANALYSES AS
MAY BE REQUESTED BY SUCH BODIES OR OFFICIALS.
  C. THE INDEPENDENT BUDGET  OFFICER  SHALL  DEVELOP  AND  ISSUE,  AFTER
CONSULTATION  WITH  THE  OFFICE OF THE NEW YORK ATTORNEY GENERAL AND THE
OFFICE OF THE NEW JERSEY ATTORNEY GENERAL, A WRITTEN ACKNOWLEDGMENT THAT
A BOARD MEMBER MUST EXECUTE AT  THE  TIME  THAT  THE  MEMBER  TAKES  AND
SUBSCRIBES  THE OATH OF OFFICE, OR WITHIN SIXTY DAYS AFTER THE EFFECTIVE
DATE OF THIS SECTION IF THE MEMBER HAS ALREADY TAKEN AND SUBSCRIBED  THE
OATH  OF  OFFICE,  IN WHICH THE BOARD MEMBER ACKNOWLEDGES THAT HE OR SHE
UNDERSTANDS THE INDEPENDENT NATURE OF HIS OR HER  ROLE  AS  COMMISSIONER
AND  HIS  OR HER FIDUCIARY DUTY TO THE AUTHORITY. THE INDEPENDENT BUDGET
OFFICER SHALL ALSO DEVELOP MEANS OF ENFORCING THOSE FIDUCIARY DUTIES.
  D. THE INDEPENDENT BUDGET OFFICER SHALL FROM TIME TO TIME PUBLISH SUCH
REPORTS AS MAY BE APPROPRIATE TO ENHANCE OFFICIAL AND PUBLIC UNDERSTAND-
ING OF THE BUDGETARY PROCESS AND OF THE BUDGET  DOCUMENTS  PUBLISHED  BY
THE  AUTHORITY.  THE  INDEPENDENT BUDGET OFFICER SHALL FROM TIME TO TIME
PUBLISH SUCH REPORTS AS MAY BE NECESSARY OR APPROPRIATE TO PROVIDE  SUCH
INFORMATION,  DATA,  AND  ANALYSIS  AS  WILL ENHANCE OFFICIAL AND PUBLIC
UNDERSTANDING OF MATTERS RELATING TO THE AUTHORITY'S REVENUES,  EXPENDI-
TURES, FINANCIAL MANAGEMENT PRACTICES, AND RELATED MATTERS.
  E.  THE  INDEPENDENT  BUDGET OFFICER SHALL MAKE ALL INFORMATION, DATA,
ESTIMATES, AND STATISTICS OBTAINED IN THE COURSE OF HIS OR  HER  DUTIES,
AND ALL STUDIES AND REPORTS PREPARED BY THE OFFICE, AVAILABLE FOR PUBLIC
INSPECTION  INCLUDING  POSTING  SUCH  INFORMATION  ON  THE  INTERNET AND
PROVIDING COPYING DURING NORMAL BUSINESS HOURS AND SHALL, TO THE  EXTENT
PRACTICABLE,  FURNISH  A  COPY  OF ANY SUCH INFORMATION OR REPORT TO ANY
PERSON UPON REQUEST AT A REASONABLE COST.
  5. A. AS USED IN THIS SECTION,  "OPERATING  PLAN"  MEANS  A  FINANCIAL
BUDGET SHOWING PROJECTED REVENUES AND EXPENSES FOR THE NEXT FISCAL YEAR,
TOGETHER  WITH  THE OPERATING ASSUMPTIONS UNDERLYING SUCH BUDGET AND ANY
CHANGES IN OPERATIONS, FEES, AND CHARGES, AND OTHER ASPECTS OF THE OPER-
ATIONS OF THE AUTHORITY WHICH SUPPORT SUCH BUDGET.
  B. NOT LESS THAN NINETY DAYS BEFORE THE BEGINNING OF THE  FISCAL  YEAR
OF  THE  AUTHORITY BEGINNING ON OR AFTER THE JANUARY FIRST FOLLOWING THE
EFFECTIVE DATE OF THIS SECTION AND EACH FISCAL YEAR THEREAFTER, AND  NOT
LESS  THAN  SIXTY DAYS BEFORE A BUDGET FOR SUCH FISCAL YEAR IS SUBMITTED
TO THE BOARD FOR APPROVAL, THE AUTHORITY SHALL SUBMIT ITS PROPOSED OPER-
ATING PLAN FOR THE FOLLOWING FISCAL YEAR TO THE INDEPENDENT BUDGET OFFI-
CER AND SUCH ELECTED PUBLIC OFFICIALS AND ACTIONS GROUPS AS  ARE  INTER-
ESTED  IN  THE AUTHORITY'S AFFAIRS. THE AUTHORITY SHALL AT THE SAME TIME
PUBLISH SUCH OPERATING PLAN TO THE PUBLIC. SUCH OPERATING PLAN SHALL  BE

A. 2210                            15

AT  SUCH  LEVEL  OF  DETAIL AS TO ALLOW A MEANINGFUL REVIEW OF THE OPER-
ATIONS OF THE AUTHORITY, AND SHALL SHOW COMPARISONS  BETWEEN  THE  PLAN,
AND  BOTH  THE LATEST AVAILABLE YEAR-TO-DATE AND EXPECTED ANNUAL RESULTS
FOR  THE  YEAR IN WHICH THE PLAN IS SUBMITTED AND THE ACTUAL RESULTS FOR
THE YEAR IMMEDIATELY PRIOR THERETO.
  ANY ELECTED PUBLIC OFFICIAL OR THE INDEPENDENT BUDGET OFFICER TO  WHOM
THE  AUTHORITY  IS  REQUIRED  TO  SUBMIT  ITS  OPERATING PLAN UNDER THIS
SECTION MAY REQUEST A MORE DETAILED VERSION OF THE  OPERATING  PLAN.  IN
SUCH  CASE,  THE  AUTHORITY  SHALL  SUPPLY COPIES OF SUCH VERSION OF THE
OPERATING PLAN TO EACH PERSON ENTITLED TO  RECEIVE  THE  OPERATING  PLAN
UNDER THIS SECTION.
  C. THE OPERATING PLAN SHALL BE ACCOMPANIED BY A REPORT SUMMARIZING THE
EXTENT  TO  WHICH  PLANNED  GOALS DEVELOPED FOR THE CURRENT AND PREVIOUS
YEARS WERE ACHIEVED, THE CAUSES OF ANY FAILURE TO  ACHIEVE  SUCH  GOALS,
AND  CORRECTIVE  MEASURES THE AUTHORITY INTENDS TO TAKE TO AVOID NON-AC-
HIEVEMENT OF SUCH GOALS IN THE UPCOMING YEAR.
  D. THE PERSONS ENTITLED TO RECEIVE COPIES OF THE OPERATING PLAN PURSU-
ANT TO THIS SECTION MAY SOLICIT COMMENTS FROM ANY INTERESTED PERSONS  OR
ANY  GROUP  REPRESENTING  INTERESTED  PERSONS THROUGH APPROPRIATE NOTICE
WITH OR WITHOUT PUBLIC HEARINGS AND MAY  SUBMIT  TO  THE  BOARD  OF  THE
AUTHORITY  AND  PUBLISH  A  REPORT COMMENTING ON THE PLANS, RECOMMENDING
GENERAL OR SPECIFIC MODIFICATIONS TO THE OPERATING PLAN.
  E. THE BOARD AT THE TIME OF ADOPTING A  BUDGET  FOR  EACH  YEAR  SHALL
ISSUE  A  REPORT RESPONDING TO ANY REPORT ISSUED PURSUANT TO PARAGRAPH D
OF THIS SUBDIVISION AND EXPLAINING WHY ANY RECOMMENDATIONS WERE OR  WERE
NOT  IMPLEMENTED.  SUCH REPORT SHALL BE GIVEN TO EACH PERSON ENTITLED TO
RECEIVE THE OPERATING PLAN PURSUANT TO THIS SECTION.
  F. THE AUTHORITY SHALL PROVIDE QUARTERLY FINANCIAL  REPORTS  NO  LATER
THAN  THE  FIFTEENTH  OF  THE FOLLOWING MONTH TO THE PERSONS ENTITLED TO
RECEIVE THE OPERATING PLAN UNDER THIS SECTION. SUCH REPORTS  SHALL  SHOW
COMPARISONS WITH THE PRIOR YEAR AND WITH THE OPERATING PLAN.
  S 1-F. 1. THE AUTHORITY SHALL NOT:
  A. ISSUE ANY BOND, NOTE, OR OTHER DEBT OBLIGATION, OR
  B. INCLUDE IN ANY COVENANT, BOND DOCUMENT, OR ANY OTHER INSTRUMENT ANY
PROVISION  HAVING THE EFFECT OF EXTENDING THE TERM OF ANY BOND, NOTE, OR
OTHER DEBT OBLIGATION OR PERMITTING THE REFUNDING OR REFINANCING OF  ANY
DEBT  OBLIGATION FOR A TERM LONGER THAN THE TERM OF SUCH DEBT OBLIGATION
IN EFFECT ON THE EFFECTIVE DATE OF THIS SECTION, UNLESS  SUCH  ISSUANCE,
INCURRENCE,  EXTENSION,  REFUNDING,  OR REFINANCING IS PERMITTED BY SUCH
STATUTORY LIMIT. NOTWITHSTANDING ANY OTHER PROVISION OF  LAW,  BONDS  OR
NOTES  MAY  NOT  BE SOLD IN A PRIVATE SALE BY THE AUTHORITY, UNLESS SUCH
SALE AND THE TERMS AND CONDITIONS THEREOF HAVE BEEN APPROVED IN  WRITING
BY  THE COMPTROLLER OF THE STATE OF NEW  YORK AND THE STATE TREASURER OF
NEW JERSEY.
  S 1-G. 1. AS USED IN THIS SECTION:
  A. "AUTHORITY" OR "PORT AUTHORITY" MEANS THE  PORT  AUTHORITY  OF  NEW
YORK AND NEW JERSEY.
  B.  "CENTRAL  PROCUREMENT  OFFICER" OR "PROCUREMENT OFFICER" MEANS THE
INDEPENDENT PORT AUTHORITY  CENTRAL  PROCUREMENT  OFFICER  APPOINTED  IN
ACCORDANCE WITH THIS SECTION.
  C.  "CONTRACTOR" MEANS ANY BIDDER, OFFEROR, OR PROPOSER FOR A PROCURE-
MENT CONTRACT AND SHALL INCLUDE ANY  SUBCONTRACTOR  OR  OTHER  REPRESEN-
TATIVE OR PERSON WITH A FINANCIAL INTEREST ON BEHALF OF SUCH PERSON.
  D.  "IMPROPER  LOBBYING  INFLUENCE" MEANS ANY ATTEMPT TO INFLUENCE ANY
DETERMINATION OF AN EMPLOYEE OR  REPRESENTATIVE  OF  THE  AUTHORITY,  IN
ORDER  TO  ACHIEVE  PREFERENTIAL,  UNEQUAL OR FAVORED CONSIDERATION OF A

A. 2210                            16

PROPOSAL SUBMITTED FOR A PROCUREMENT CONTRACT AWARD, BASED ON  CONSIDER-
ATIONS OTHER THAN THE MERITS OF THE PROPOSAL.
  E.  "LOBBYING" MEANS ANY ATTEMPT TO INFLUENCE ANY ACTION BY, OR COMMU-
NICATION DIRECTLY OR SOLICITING OTHERS TO COMMUNICATE WITH, ANY OFFICER,
EMPLOYEE, AGENT, CONSULTANT, OR ANY OTHER PERSON  HAVING  ANY  POWER  OR
AUTHORITY  RELATED  TO  THE PROCUREMENT OF GOODS OR SERVICES IN SUPPORT,
CONSTRUCTION, PURCHASE, SALE OR LEASE OF REAL PROPERTY; THE  ACQUISITION
OR  GRANTING  OF ANY OTHER INTEREST IN REAL PROPERTY; OR AUTHORITY FUNC-
TIONS OR OPERATIONS.
  F. "PENDENCY OF A PROCUREMENT CONTRACT  AWARD"  MEANS  THE  PROCESSING
PERIOD  FOR LETTING A PROCUREMENT CONTRACT, COMMENCING WITH THE EARLIEST
PUBLISHED WRITTEN NOTICE, ADVERTISEMENT OR SOLICITATION  OF  EXPRESSIONS
OF INTEREST OR PROPOSALS, AND ENDING WITH THE AUTHORITY'S FINAL CONTRACT
APPROVAL.
  G. "PROCUREMENT CONTRACT" MEANS A WRITTEN CONTRACT LET BY THE AUTHORI-
TY  FOR  THE  ACQUISITION OF GOODS OR SERVICES IN SUPPORT, CONSTRUCTION,
PURCHASE, SALE OR LEASE OF REAL PROPERTY; THE ACQUISITION OR GRANTING OF
OTHER INTEREST IN REAL PROPERTY OR OF AUTHORITY FUNCTIONS OR OPERATIONS.
  H. "PROPOSAL" MEANS ANY PROPOSAL, QUOTATION, OFFER OR RESPONSE TO  THE
AUTHORITY'S COMPETITIVE SOLICITATION OF SUBMISSIONS RELATING TO AN AWARD
OF  A  PROCUREMENT  CONTRACT  OR TO ANY UNSOLICITED PROPOSAL, QUOTATION,
OFFER OR SUBMISSION OF ANY POTENTIAL PROCUREMENT CONTRACT.
  2. FOR PURPOSES OF THIS SECTION, "LOBBYING" SHALL NOT INCLUDE:
  A. NONPROFIT MAKING AGENCIES FOR THE BLIND, AND  QUALIFIED  CHARITABLE
NONPROFIT AGENCIES FOR OTHER SEVERELY DISABLED PERSONS;
  B. PARTICIPANTS, INCLUDING THOSE APPEARING ON BEHALF OF A CLIENT, IN A
PUBLICLY NOTICED CONFERENCE PURSUANT TO A REQUEST FOR BIDS OR PROPOSALS;
  C.  PERSONS  WHO HAVE BEEN TENTATIVELY AWARDED A CONTRACT OR REPRESENT
PERSONS WHO HAVE BEEN TENTATIVELY AWARDED A CONTRACT AND ARE ENGAGED  IN
COMMUNICATIONS  WITH THE AUTHORITY SOLELY FOR THE PURPOSE OF NEGOTIATING
THE TERMS OF THE CONTRACT AFTER BEING NOTIFIED OF SUCH AWARD;
  D. PERSONS OR THE REPRESENTATIVES OF PERSONS WHO:
  (1) ARE A PARTY TO A PROTEST, APPEAL, OR OTHER  PROCEEDING  (INCLUDING
THE  APPARENT  SUCCESSFUL  BIDDER OR CONTRACTOR AND HIS OR HER REPRESEN-
TATIVE); OR
  (2) REQUEST A REVIEW OF A PROCUREMENT DECISION;
  E. THE SUBMISSION OF A BID OR PROPOSAL (WHETHER SUBMITTED ORALLY OR IN
WRITING) IN RESPONSE TO A REQUEST FOR BIDS OR PROPOSALS AS LONG AS  THAT
PERSON IS AN OFFICIAL CONTACT ON THE PROPOSAL;
  F.  PROSPECTIVE  BIDDERS OR PROPOSERS OR THEIR REPRESENTATIVES SUBMIT-
TING QUESTIONS TO A DESIGNATED AGENCY OR MUNICIPAL CONTACT SET FORTH  IN
A REQUEST FOR BIDS OR PROPOSALS; AND
  G.  OFFICERS  AND  EMPLOYEES  OF STATEWIDE ELECTED OFFICIALS INCLUDING
INDIVIDUALS WHO ACT AS PAID OR UNPAID ADVISORS OR CONSULTANTS TO  STATE-
WIDE  ELECTED  OFFICIALS,  EXCEPT  MEMBERS  OF AN ADVISORY COMMISSION, A
BOARD, OR AN AUTHORITY. FOR  PURPOSES  OF  THIS  PARAGRAPH,  "AUTHORITY"
MEANS  A PUBLIC AUTHORITY, A STATE AUTHORITY, OR A PUBLIC BENEFIT CORPO-
RATION CREATED BY OR EXISTING UNDER ANY LAW OF NEW YORK OR NEW JERSEY.
  3. THE BOARD OF COMMISSIONERS, BY  MAJORITY  VOTE,  SHALL  APPOINT  AN
INDEPENDENT CENTRAL PROCUREMENT OFFICER. THE CENTRAL PROCUREMENT OFFICER
SHALL  WORK WITHIN THE CENTRAL PROCUREMENT OFFICE AND SHALL HAVE PRIMARY
RESPONSIBILITY FOR THE PREVENTION  OF  IMPROPER  LOBBYING  INFLUENCE  IN
PROCUREMENT  CONTRACTS. THE CENTRAL PROCUREMENT OFFICER IS AUTHORIZED TO
ADOPT OTHER PROCEDURAL CONTROLS OR RULES IN  ADDITION  TO  THOSE  ESTAB-
LISHED IN THIS SECTION IN CONSULTATION WITH THE CHAIRMAN OF THE AUTHORI-
TY.  THE SALARY, STAFF AND OFFICE SPACE ALLOTTED TO THE CENTRAL PROCURE-

A. 2210                            17

MENT OFFICER SHALL BE ESTABLISHED BY THE  BOARD  OF  COMMISSIONERS,  AND
SHALL BE CONSISTENT WITH THE TERMS ESTABLISHED FOR THE INSPECTOR GENERAL
AND  INDEPENDENT  BUDGET  OFFICER. THE CENTRAL PROCUREMENT OFFICER SHALL
SERVE FOR A TERM OF FIVE YEARS.
  THE  CENTRAL  PROCUREMENT OFFICER MAY BE REMOVED FROM OFFICE FOR CAUSE
BY THE BOARD OF COMMISSIONERS, AFTER A PUBLIC HEARING.
  4. A. ALL PROPOSALS FOR PROCUREMENT CONTRACTS MUST INCLUDE  THE  NAME,
ADDRESS, TELEPHONE NUMBER, PLACE OF PRINCIPAL EMPLOYMENT, AND OCCUPATION
OF  ALL PERSONS WHO WILL CONTACT THE AUTHORITY ON BEHALF OF THE CONTRAC-
TOR. THESE PERSON SHALL BE AUTHORIZED TO CONTACT THE AUTHORITY ON BEHALF
OF THE CONTRACTOR.
  B. THE CENTRAL PROCUREMENT OFFICER SHALL REQUIRE  THAT  ALL  REPRESEN-
TATIVES  OF  THE  AUTHORITY  WHO  CONTACT CONTRACTORS OR THEIR REPRESEN-
TATIVES WITH REGARD TO A PROPOSAL, OR ARE CONTACTED  BY  CONTRACTORS  OR
THEIR  REPRESENTATIVES  WITH  REGARD  TO  A  PROPOSAL,  MUST REPORT SUCH
CONTACT TO THE CENTRAL PROCUREMENT OFFICER, INCLUDING  THE  NAME,  DATE,
TIME, AND CONTENT OF THE CALL.
  THE  CENTRAL PROCUREMENT OFFICER SHALL CREATE A LISTING OF ALL PERSONS
WHO CONTACT ANY  REPRESENTATIVE  OF  THE  AUTHORITY  WITH  REGARD  TO  A
PROPOSAL  OR  PROCUREMENT CONTRACT AND A LISTING OF ALL PERSONS WHO WERE
CONTACTED BY ANY REPRESENTATIVE  OF  THE  AUTHORITY  WITH  REGARD  TO  A
PROCUREMENT  CONTRACT.  SUCH REPORTS MUST INCLUDE THE NAME OF THE PERSON
WHO CONTACTED THE AUTHORITY, THE PERSON WHOM THE CONTACTOR IS REPRESENT-
ING, AND THE DATE AND TIME OF THE CONTACT, INCLUDING A BRIEF DESCRIPTION
OF THE CONTENT OF THE CALL.
  C. IF ANY PERSON CONTACTS ANY REPRESENTATIVE OF THE AUTHORITY AND  HIS
OR HER NAME IS NOT INCLUDED ON THE PROPOSAL AS REQUIRED IN THIS SECTION,
IT SHALL BE CONSIDERED IMPROPER LOBBYING INFLUENCE. THE CENTRAL PROCURE-
MENT  OFFICER SHALL REPORT SUCH VIOLATION TO THE INSPECTOR GENERAL IMME-
DIATELY. ADDITIONALLY, NO STATE OFFICER  OR  EMPLOYEE  SHALL  ENGAGE  IN
LOBBYING  OR  LOBBYING  ACTIVITIES AS PROVIDED FOR IN THIS CHAPTER. SUCH
ACTION SHALL BE IMPROPER LOBBYING INFLUENCE.
  D. DURING THE PENDENCY OF THE PROCUREMENT CONTRACT AWARD  THERE  SHALL
BE  NO CONTACT BETWEEN A CONTRACTOR OR HIS OR HER REPRESENTATIVE AND THE
AUTHORITY EXCEPT FOR INFORMATIONAL OR TECHNICAL INFORMATION.  GUIDELINES
FOR  SUCH PERMITTED CONTACT SHALL BE ESTABLISHED BY THE INSPECTOR GENER-
AL. ALL OTHER CONTACT  DURING  THIS  PERIOD  SHALL  CONSTITUTE  IMPROPER
LOBBYING  INFLUENCE.  COMMUNICATION  WITH  THE  AUTHORITY  BY PERSONS OR
CONTRACTORS WHO HAVE BEEN TENTATIVELY AWARDED A  CONTRACT  OR  REPRESENT
PERSONS  WHO  HAVE  BEEN  TENTATIVELY  AWARDED A CONTRACT SOLELY FOR THE
PURPOSE OF NEGOTIATING THE TERMS OF THE CONTRACT AFTER BEING NOTIFIED OF
SUCH AWARD IS NOT PROHIBITED. SUCH CONTRACT MUST BE PROCESSED IN ACCORD-
ANCE WITH THE PROVISIONS OF THIS SUBDIVISION.
  E. THE CENTRAL PROCUREMENT OFFICER UPON BEING NOTIFIED OF OR DISCOVER-
ING ATTEMPTED IMPROPER LOBBYING INFLUENCE SHALL IMMEDIATELY  INVESTIGATE
SUCH ALLEGATION AND SHALL GIVE THE CONTRACTOR AN OPPORTUNITY TO BE HEARD
IN  RESPONSE  TO SUCH ALLEGATION. THE CENTRAL PROCUREMENT OFFICER OR ANY
REPRESENTATIVE OF THE AUTHORITY SHALL REPORT ANY ALLEGATIONS OF IMPROPER
LOBBYING INFLUENCE OR ATTEMPTED IMPROPER LOBBYING INFLUENCE  IMMEDIATELY
TO  THE INSPECTOR GENERAL AND THE CHAIRMAN OF THE AUTHORITY. IF IMPROPER
LOBBYING INFLUENCE OR ATTEMPTED IMPROPER LOBBYING INFLUENCE IS FOUND  TO
HAVE  OCCURRED,  THEN THE AUTHORITY MAY IMPOSE SUCH SANCTION AS IT SHALL
DEEM APPROPRIATE, INCLUDING BUT NOT LIMITED TO THE  ELIMINATION  OF  THE
PROPOSAL  FROM  CONSIDERATION.  ANY  DETERMINATION MADE BY THE AUTHORITY
SHALL BE REPORTED TO THE INSPECTOR GENERAL.

A. 2210                            18

  5. ALL RECORDS AND DOCUMENTS REQUIRED TO BE RETAINED BY THE  AUTHORITY
IN THIS SECTION SHALL BE AVAILABLE FOR REVIEW BY THE PUBLIC.
  6.  THE  CENTRAL  PROCUREMENT OFFICER SHALL SUBMIT AN ANNUAL REPORT TO
THE INSPECTOR GENERAL BY JANUARY  FIRST  THAT  REPORTS  ON  THE  VARIOUS
PROCUREMENT CONTRACTS ENTERED INTO BY THE AUTHORITY, A LIST OF THE VARI-
OUS  CONTRACTORS  AND THEIR REPRESENTATIVES THAT CONTACTED THE AUTHORITY
WITH REGARD TO PROCUREMENT CONTRACTS, THE INSTANCES OF ANY ATTEMPTED  OR
FOUND  CASES  OF  IMPROPER LOBBYING INFLUENCE AND OTHER RELATED MATERIAL
AND INFORMATION THE CENTRAL PROCUREMENT OFFICER FINDS RELEVANT.
  7. THE AUTHORITY, PRIOR TO MAKING AN AWARD OF A PROCUREMENT  CONTRACT,
SHALL  MAKE  A  DETERMINATION OF RESPONSIBILITY OF THE PROPOSED AWARDEE.
THE AUTHORITY SHALL ENSURE THAT EACH PROPOSAL FOR PROCUREMENT  CONTRACTS
REQUIRES  CONTRACTORS  TO  DISCLOSE  FINDINGS OF NON-RESPONSIBILITY MADE
WITHIN THE PREVIOUS FIVE YEARS BY ANY AUTHORITY WHERE SUCH PRIOR FINDING
OF NON-RESPONSIBILITY WAS DUE  TO  INTENTIONAL  PROVISION  OF  FALSE  OR
INCOMPLETE  INFORMATION  TO  AN  AUTHORITY. IN MAKING A DETERMINATION OF
RESPONSIBILITY, THE AUTHORITY SHALL TAKE INTO  ACCOUNT  ANY  SUCH  PRIOR
FINDING  AND  SHALL NOT AWARD A CONTRACT TO SUCH CONTRACTOR. THE FAILURE
OF THE CONTRACTOR TO TIMELY DISCLOSE ACCURATE AND  COMPLETE  INFORMATION
OR  TO OTHERWISE COOPERATE WITH THE AUTHORITY SHALL BE CONSIDERED BY THE
AUTHORITY IN ITS DETERMINATION OF THE RESPONSIBILITY OF SUCH CONTRACTOR.
  8. EVERY PROCUREMENT CONTRACT SHALL CONTAIN  A  CERTIFICATION  BY  THE
AWARDEE  THAT  ALL  INFORMATION  PROVIDED  TO THE AUTHORITY IS COMPLETE,
TRUE, AND ACCURATE AND SHALL CONTAIN A PROVISION AUTHORIZING THE AUTHOR-
ITY TO TERMINATE SUCH PROCUREMENT CONTRACT IN  THE  EVENT  SUCH  CERTIF-
ICATION IS FOUND TO BE INTENTIONALLY FALSE OR INTENTIONALLY INCOMPLETE.
  9.  ANY  MEMBER, OFFICER, EMPLOYEE, OR REPRESENTATIVE OF THE AUTHORITY
WHO FAILS TO COMPLY WITH THIS SECTION SHALL BE  SUBJECT  TO  APPROPRIATE
DISCIPLINARY  ACTION BY THE AUTHORITY AND WHEN APPROPRIATE, DISCIPLINARY
ACTION SHALL BE TAKEN BY THE INSPECTOR GENERAL.
  10. ANY PERSON OR ORGANIZATION THAT, WITH RESPECT TO  ANY  PROCUREMENT
OR  WITH  RESPECT  TO  PROPOSALS  SUBMITTED TO THE AUTHORITY, ENGAGES IN
LOBBYING AND ANY PERSON OR ORGANIZATION THAT RETAINS, EMPLOYS, OR DESIG-
NATES ANY PERSON OR ORGANIZATION TO  CARRY  ON  LOBBYING  ACTIVITIES  ON
BEHALF  OF  SUCH PERSON OR ORGANIZATION SHALL BE SUBJECT TO THE LOBBYING
REGISTRATION LAWS OF NEW YORK AND NEW JERSEY.
  11. EVERY PERSON OR ORGANIZATION SUBJECT TO THE PROVISIONS OF NEW YORK
AND NEW JERSEY'S LOBBYING LAWS OR THIS SECTION AS A LOBBYIST  OR  CLIENT
BECAUSE  OF  ACTS RELATING TO PROCUREMENTS OR PROPOSALS TO THE AUTHORITY
SHALL FILE A COPY OF EACH DOCUMENT  REQUIRED  TO  BE  FILED  UNDER  THIS
SECTION WITH THE AUTHORITY.
  12.  THE  CENTRAL  PROCUREMENT OFFICE SHALL RECEIVE AND FILE DOCUMENTS
REQUIRED TO BE FILED UNDER THIS SECTION. THE AUTHORITY  SHALL  CATALOGUE
SUCH FILINGS BY THE NAME OF THE LOBBYIST, THE NAME OF THE CLIENT, AND BY
THE  CONTRACT  WHOM  THE  LOBBYIST  HAS ATTEMPTED TO INFLUENCE ACTION ON
BEHALF OF THE CLIENT. THE AUTHORITY SHALL MAKE INFORMATION FURNISHED  BY
LOBBYISTS AND CLIENTS AVAILABLE TO THE PUBLIC FOR INSPECTION AND COPYING
IN  ELECTRONIC  AND PAPER FORMATS. ACCESS TO SUCH INFORMATION SHALL ALSO
BE MADE  AVAILABLE  FOR  REMOTE  COMPUTER  USERS  THROUGH  THE  INTERNET
NETWORK.
  13.  NO  CLIENT  SHALL RETAIN OR EMPLOY ANY LOBBYIST FOR COMPENSATION,
THE RATE OR AMOUNT OF WHICH COMPENSATION IN WHOLE OR PART IS  CONTINGENT
OR  DEPENDENT  UPON THE ACCEPTANCE OF OR DECISION REGARDING ANY PROPOSAL
OR PROCUREMENT CONTRACT BY  THE  AUTHORITY.  THE  METHODOLOGY  BY  WHICH
COMPENSATION IS DETERMINED MUST BE INCLUDED IN THE REPORTS REQUIRED.

A. 2210                            19

  S  6.    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
board  of commissioners of the port authority of New York and New Jersey
shall notify the legislative bill drafting commission  upon  the  occur-
rence  of the enactment of the legislation provided for in sections two,
three, four and five of this act in order that the commission may  main-
tain  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.