Senate Bill S3921

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

                                  3921

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              April 6, 2009
                               ___________

Introduced  by Sens. FLANAGAN, LARKIN, MORAHAN -- read twice and ordered
  printed, and when printed to be committed to the Committee  on  Corpo-
  rations, 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;
  (2)  UNDERSTAND, REVIEW, AND MONITOR THE IMPLEMENTATION OF FUNDAMENTAL
FINANCIAL AND MANAGEMENT  CONTROLS  AND  OPERATIONAL  DECISIONS  OF  THE
AUTHORITY;

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

S. 3921                             2

  (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.
  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

S. 3921                             3

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
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-

S. 3921                             4

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.
  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. 3921                             5

  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.
  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-

S. 3921                             6

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;
  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

S. 3921                             7

  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
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

S. 3921                             8

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.
  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

S. 3921                             9

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
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,

S. 3921                            10

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;
  (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.

S. 3921                            11

  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
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

S. 3921                            12

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
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

S. 3921                            13

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-
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

S. 3921                            14

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
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

S. 3921                            15

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
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

S. 3921                            16

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-
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.

S. 3921                            17

  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.
  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

S. 3921                            18

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.
  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-

S. 3921                            19

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.