senate Bill S5304A

2011-2012 Legislative Session

Prohibits the ownership of electric corporations by any foreign based person, corporation or entity

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 06, 2012 reported and committed to finance
Jan 04, 2012 referred to veterans, homeland security and military affairs
Nov 04, 2011 print number 5304a
amend (t) and recommit to finance
May 10, 2011 reported and committed to finance
May 03, 2011 referred to veterans, homeland security and military affairs

Votes

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Jun 5, 2012 - Veterans, Homeland Security and Military Affairs committee Vote

S5304A
11
0
committee
11
Aye
0
Nay
3
Aye with Reservations
0
Absent
0
Excused
0
Abstained
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Veterans, Homeland Security and Military Affairs Committee Vote: Jun 5, 2012

May 10, 2011 - Veterans, Homeland Security and Military Affairs committee Vote

S5304
13
0
committee
13
Aye
0
Nay
1
Aye with Reservations
0
Absent
0
Excused
0
Abstained
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Bill Amendments

Original
A (Active)
Original
A (Active)

Co-Sponsors

S5304 - Bill Details

See Assembly Version of this Bill:
A9573
Current Committee:
Law Section:
Public Service Law
Laws Affected:
Amd §68, Pub Serv L

S5304 - Bill Texts

view summary

Prohibits the ownership of electric corporations by any foreign based person, corporation or entity.

view sponsor memo
BILL NUMBER:S5304

TITLE OF BILL:
An act
to amend the executive law,
in relation to increasing port security; and
to amend chapter 154 of the laws of 1921 relating to the
Port Authority of New York and New Jersey,
in relation to contracts with foreign persons,
corporations, or entities

PURPOSE OF BILL:
This bill would require the Division of Homeland Security for the
State of New York and the Office of Homeland Security and
Preparedness for New Jersey and Waterfront Commission of New York
Harbor to establish a port security enhancement plan, and require
the Port Authority to execute security agreements providing for
background checks, limitations of construction services, and
increased security personnel, in all contracts with foreign entities,
and to make a report to the Legislature, providing specific and
ongoing information on all such contracts,

SUMMARY OF PROVISIONS:
Specifically, this bill would:

1. Add a new section 718 to the executive law to require the the
Division of Homeland Security for the State of New York and the
Office of Homeland Security and Preparedness for New Jersey in
cooperation with the Waterfront Commission of New York Harbor, to
prepare, and deliver to the governors of the states of New York and
New Jersey, the presidents pro tempore of the senates of New York and
New Jersey and the speakers of the assemblies of New York and New
Jersey,a comprehensive report, which provides a plan of action and
includes recommendations, for the improvement of port and waterway
security for the port of New York and New Jersey, as well as the
ports, waterways and coastlines of the states of New York and New
Jersey, Such report shall include:

i. An examination of the overall security issues of the port of New
York and New Jersey, and making recommendations with respect to such
issues, including:

a. The overall provision and status of port security;

b. The division of responsibility for all facets of port security;

c. Current impediments to providing optimal levels of security;

d. Police patrols of the port:

e Interagency cooperation between federal, state and local authorities;

f. Employee, crew, shipper, transporter and visitor background checks;

g. Current and potential technology enhancements;


h. Economic considerations;

i. Real property and leasehold issues; and

j. Such other and further items as the commission deems important; and

ii. Such report shall also include an examination of the overall
security issues of the ports, waterways and coastlines of the states
of New York and New Jersey, making recommendations with respect to
the such issues.

2. Create a new Article VI-A of the Port Authority Compact Law
(Section 6407-a of the Unconsolidated Laws) to provide the following:

A. That the port authority shall not have the authority, to purchase,
construct, lease and/or operate any terminal or port facility; or to
make charges for the use thereof; or to own, hold, lease and/or
operate real or personal property, wherein any rights, powers or
duties of the port authority are given, awarded, transferred or
assigned in the ownership, holding, leasing and/or operation of any
such terminal or port facility, or such real or personal property, to
any foreign based person, corporation or entity, without maintaining
within such contracts a foreign contract security agreement. The
foreign contract security agreement would require:

i. That all employees of the foreign based person, corporation or
entity shall, prior to their employment or continuation of
employment, with the foreign based person, corporation or entity, or
any subsidiary thereof, at any terminal or part owned, leased or
controlled by the port authority, pass a background security check,
which shall be administered and designed by the Waterfront
Commission, and that all costs of designing and administration of
such background security checks shall be paid for by the foreign based
person, corporation or entity; and

ii. That all construction, fit up and/or modifications of the terminal
or port facility, owned, leased or controlled by the port authority,
including the purchase, installation and/or maintenance of equipment
for use at such facility, shall be
exclusively performed by a person, corporation or entity which is not
foreign based or controlled, and which has been pre-cleared by
the Waterfront Commission, and in no event shall the foreign based
person, corporation or entity be provided with, or be given access
to, any maps, drawings, diagrams, blueprints or any other secure
documents concerning the buildings and grounds of the terminal or
port facility, its equipment and/or operational infrastructure; and

iii. An agreement that the foreign based person, corporation or
entity shall fund regular and necessary patrols and inspections of
the terminal or port facility, and its equipment, cargo and
operations by the port authority police, waterfront commission
police, personnel of the United States Coast Guard, and/or personnel
of the United States Customs to the extent and number as shall be
required by regulation by the state police of the states of New York
and New Jersey, in cooperation and consultation with the Offices
of Homeland and Public Security of the United States, and the


Division of Homeland Security for the State of New York and the Office
of Homeland Security and Preparedness for New Jersey; and

B. This new Article VI-A would also require that the Port Authority
produce ongoing reports on foreign contracts.
Pursuant to such requirement the Port Authority must submit to the
Chair of the New York State Senate Standing Committee on Veterans,
Homeland Security and Military Affairs, the Chair of the New York
State Assembly Standing Committee on Governmental Operations, the
Chair of the New Jersey State Senate Standing Committee on Law,
Public Safety and Governmental Affairs and the Chair of the New
Jersey State Assembly Standing Committee on Homeland Security and State
Preparedness a complete report of all current and proposed contracts,
agreements and delegations between the port authority and any foreign
based person, corporation and entity. Such report shall include a
detailed description of such current or proposed contract, agreement
or delegation; and

C. This new Article VI-A would further require that any contract,
agreement or delegation by the port authority to any foreign person,
corporation or entity, which does not contain the express security
agreement outlined above, shall be deemed void and cancelled, with
the port authority being responsible for the payment of damages, If
any, for the voiding and cancelling of the same.

JUSTIFICATION:
At this time of heightened public safety concerns, New York State,
with the one of the largest coastlines in America, and with an
economy and transportation network long associated with water and
shipping, needs to take serious and immediate action to protect its
port, waterway and coastal security. Additionally, the Port Authority
of New York and New Jersey has been presented with an issue of
National and State security concerning its contract operations of
terminal and port facilities with foreign based entities. After the
lessons of September 11th, the States of New York and New Jersey
cannot afford to take such concerns lightly and need to take real and
concrete action to increase public protection.

This bill would take demonstrative steps to accomplish this goal by
requiring the establishment of a port security enhancement plan as
well as the institution of security agreements in all Port Authority
contracts with foreign entities involving terminal and port
operations. In so doing, this bill would seek to address the major
security risk factors involving such contracts By requiring that any
such contract to provide for the background check screening of all
employees working with such foreign corporation, or subsidiary
thereof, pass a background screening test designed and administered
by the state police in consultation with the state and federal
departments of homeland security, this bill seeks to ensure that
the persons working at such terminals and port facilities do not in
any way pose a security risk or have any connections or involvement
with persons who might seek to commit an act of terrorism or injury
to the public or the port.

By prohibiting foreign contractors from engaging in any
construction, fit up and/or modifications of the terminal or
port facility, including the purchase, installation and/or


maintenance of equipment for use at such facility, and that all such
services be exclusively performed by a domestic entity, which has
been pre-cleared by the state police in cooperation and consultation
with the departments of Homeland Security, and by further prohibiting
such foreign based contractor from being provided with, or be given
access to, any maps, drawings, diagrams, blueprints or any other
secure documents concerning the buildings and grounds of the terminal
or port facility, its equipment and/or operational infrastructure,
this bill would additionally help to alleviate security concerns
with respect to foreign knowledge and access to the physical layouts
and vulnerabilities of terminal and port facilities.

By also requiring foreign contractors to fund regular and necessary
patrols and inspections of the terminal or port facility, and its
equipment, cargo and operations by the port authority police,
personnel of the United States Coast Guard, and/or personnel of the
United States Customs, to the extent and number as shall be required
by regulation by the state police in cooperation and consultation
with the departments of Homeland Security, this bill also seeks to
significantly increase terminal and port security at these sites
specifically, and at all sites of the Port Authority specifically.

The provisions of this bill which require the reports to the
legislatures with respect to these foreign contracts would provide
for a measure of ongoing oversight over these contracts by the
state legislatures of the states of New York and New Jersey and
establish a mechanism to provide information over these proposed areas
to both the public and their elected representatives.

PRIOR LEGISLATIVE HISTORY:
2008 - S.3743-A (Similar) - Passed Senate

FISCAL IMPLICATIONS:
None noted.

EFFECTIVE DATE:
This act would take effect immediately after the enactment into law
by the state of New Jersey of legislation having an identical effect
therein, but if the state of New Jersey shall have already enacted
such legislation, then it shall take effect immediately.

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

                                  5304

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               May 3, 2011
                               ___________

Introduced  by  Sen.  BALL  --  read twice and ordered printed, and when
  printed to be committed to the Committee on Veterans, Homeland Securi-
  ty and Military Affairs

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

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

  Section 1.  The executive law is amended by adding a new  section  718
to read as follows:
  S 718. PORT SECURITY ENHANCEMENT PLAN.  THE DIVISION OF HOMELAND SECU-
RITY  AND EMERGENCY SERVICES FOR THE STATE OF NEW YORK AND THE OFFICE OF
HOMELAND SECURITY AND PREPAREDNESS OF THE STATE OF NEW JERSEY, IN  COOP-
ERATION  WITH  THE WATERFRONT COMMISSION OF NEW YORK HARBOR SHALL, ON OR
BEFORE THE FIFTEENTH DAY OF FEBRUARY, TWO THOUSAND TWELVE, PREPARE,  AND
DELIVER  TO  THE GOVERNORS OF THE STATES OF NEW YORK AND NEW JERSEY, THE
PRESIDENTS PRO TEMPORE OF THE SENATES OF NEW YORK AND NEW JERSEY AND THE
SPEAKERS OF THE ASSEMBLIES OF NEW YORK AND NEW JERSEY,  A  COMPREHENSIVE
REPORT,  WHICH  PROVIDES  A PLAN OF ACTION AND INCLUDES RECOMMENDATIONS,
FOR THE IMPROVEMENT OF PORT AND WATERWAY SECURITY FOR THE  PORT  OF  NEW
YORK  AND  NEW JERSEY, AS WELL AS THE PORTS, WATERWAYS AND COASTLINES OF
THE STATES OF NEW YORK AND NEW JERSEY.
  SUCH REPORT SHALL INCLUDE:
  1. AN EXAMINATION OF THE OVERALL SECURITY ISSUES OF THE  PORT  OF  NEW
YORK  AND  NEW  JERSEY,  AND MAKING RECOMMENDATIONS WITH RESPECT TO SUCH
ISSUES, INCLUDING:
  A. THE OVERALL PROVISION AND STATUS OF PORT SECURITY;
  B. THE DIVISION OF RESPONSIBILITY FOR ALL FACETS OF PORT SECURITY;
  C. CURRENT IMPEDIMENTS TO PROVIDING OPTIMAL LEVELS OF SECURITY;
  D. POLICE PATROLS OF THE PORT;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11296-01-1

S. 5304                             2

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

S. 5304                             3

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

S. 5304                             4

  E. THE JUSTIFICATION, ON BEHALF OF THE PORT AUTHORITY, IF ANY,  AS  TO
WHY  SUCH  CONTRACT, AGREEMENT OR DELEGATION SHOULD BE APPROVED SO AS TO
BE EXECUTED, CONTINUED OR MAINTAINED.
  4.  TERMINATION OF CONTRACTS. ANY CONTRACT, AGREEMENT OR DELEGATION BY
THE PORT AUTHORITY TO ANY FOREIGN PERSON, CORPORATION OR  ENTITY,  WHICH
DOES NOT CONTAIN THE SECURITY AGREEMENT ESTABLISHED PURSUANT TO SUBDIVI-
SION  2  OF  THIS  ARTICLE ON OR BEFORE JANUARY 1, 2013, SHALL BE DEEMED
VOID AND CANCELLED, WITH THE PORT AUTHORITY BEING  RESPONSIBLE  FOR  THE
PAYMENT OF DAMAGES, IF ANY, FOR THE VOIDING AND CANCELLING OF THE SAME.
  S  3.  This act shall take effect immediately; provided, however, that
section two of this act shall take effect upon the enactment into law by
the state of New Jersey of legislation having an identical  effect  with
this act, but if the state of New Jersey shall have already enacted such
legislation,  this  act shall take effect immediately; provided that the
chair of the port authority shall notify the legislative  bill  drafting
commission  upon  the  occurrence  of  the  enactment of the legislation
provided for in section two of this act in order that the commission may
maintain an accurate and timely effective data base of the official text
of the laws of the state of New York in furtherance of effectuating  the
provisions  of section 44 of the legislative law and section 70-b of the
public officers law.

Co-Sponsors

S5304A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A9573
Current Committee:
Law Section:
Public Service Law
Laws Affected:
Amd §68, Pub Serv L

S5304A (ACTIVE) - Bill Texts

view summary

Prohibits the ownership of electric corporations by any foreign based person, corporation or entity.

view sponsor memo
BILL NUMBER:S5304A

TITLE OF BILL:
An act
to amend the public service law, in relation to prohibiting the
ownership of an electric corporation by any foreign based person,
corporation or entity

PURPOSE:
This legislation will prohibit a foreign based person, corporation or
entity from owning an electric corporation.

SUMMARY OF PROVISIONS:
Section One - amends paragraph of section 68 of the public service law
to state the commission will not grant its permission or approval,
for the generation and distribution of electricity to residential
customers, to any electric corporation that is a foreign based
person, corporation or entity, or the majority of which is owned by
foreign based persons, corporations and/or entities. In the event
that an electric corporation, holding a franchise issued pursuant to
this article, becomes a foreign based person, corporation or entity,
or becomes majority owned by based persons, corporations and/or
entities, such franchise foreign based persons, corporations and/or
entities, such franchise shall immediately be revoked by the
commissioner.

Section One - defines a "foreign based person of corporation" as any
natural person who is not a citizen of the United States; or any
corporation or entity that is not headquartered in the United States,
is not chartered by the United States or by any state in the United
States, is not chartered by the United States or by any state in the
United States or has more than fifty percent of its ownership
interests owned or held by a person or persons who are not citizens
or the United States or a corporation and or entity that are not
headquartered in the United States or not chartered by the United
States or any state in the United States.

Section Two - this act shall take effect on the ninetieth day after
becoming law.

JUSTIFICATION:
New York's energy supply is not just a matter of convenience. It is
issue affecting emergency services and homeland security. We rely on
utilities for our most basic needs, like lighting and refrigeration,
to our must critical needs like medical care and public
safety. Two recent storms highlighted public safety concerns
associated with power outages and poor response times by certain
power companies. More specifically, the storms showed weaknesses by
one utility, New York State Electric and Gas (NYSEG), in its ability
to appropriately respond. In September 2008, Iberdrola S.A., an
energy company based in Spain, bought the parent company of two
Upstate New York utilities -- NYSEG and Rochester Gas & Electric.
Since then, NYSEG customers have noticed a progressive degradation in
quality and service from their utility provider. In the interest of
public safety, foreign corporations should not be allowed to control


utility companies in New York. This legislation is imperative because
it protects New Yorkers during times when they need it most. In crisis.

LEGISLATIVE HISTORY:
This is a new bill.

FISCAL IMPLICATIONS:
None to State.

EFFECTIVE DATE:
This law will take effect on the ninetieth day after becoming law.

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

                                 5304--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               May 3, 2011
                               ___________

Introduced  by  Sens.  BALL,  GIANARIS, LARKIN -- read twice and ordered
  printed, and when printed to be committed to the Committee  on  Veter-
  ans, Homeland Security and Military Affairs -- reported favorably from
  said  committee and committed to the Committee on Finance -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN ACT to amend the public service law, in relation to  prohibiting  the
  ownership  of  an  electric  corporation  by any foreign based person,
  corporation or entity

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

  Section  1.  The opening paragraph of section 68 of the public service
law is designated subdivision 1 and a new subdivision 2 is added to read
as follows:
  2. (A) THE COMMISSION SHALL NOT GRANT ITS PERMISSION OR APPROVAL,  FOR
THE GENERATION AND DISTRIBUTION OF ELECTRICITY TO RESIDENTIAL CUSTOMERS,
TO  ANY ELECTRIC CORPORATION THAT IS A FOREIGN BASED PERSON, CORPORATION
OR ENTITY, OR THE MAJORITY OF WHICH IS OWNED BY FOREIGN  BASED  PERSONS,
CORPORATIONS AND/OR ENTITIES. IN THE EVENT THAT AN ELECTRIC CORPORATION,
HOLDING  A  FRANCHISE ISSUED PURSUANT TO THIS ARTICLE, BECOMES A FOREIGN
BASED PERSON, CORPORATION  OR  ENTITY,  OR  BECOMES  MAJORITY  OWNED  BY
FOREIGN  BASED  PERSONS,  CORPORATIONS  AND/OR  ENTITIES, SUCH FRANCHISE
SHALL IMMEDIATELY BE REVOKED BY THE COMMISSIONER.
  (B) FOR THE PURPOSES  OF  THIS  SUBDIVISION,  "FOREIGN  BASED  PERSON,
CORPORATION OR ENTITY" SHALL MEAN:
  (1) ANY NATURAL PERSON WHO IS NOT A CITIZEN OF THE UNITED STATES; OR
  (2) ANY CORPORATION OR ENTITY THAT:
  (I) IS NOT HEADQUARTERED IN THE UNITED STATES,
  (II)  IS  NOT  CHARTERED  BY  THE UNITED STATES OR BY ANY STATE IN THE
UNITED STATES, OR

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11296-02-1

S. 5304--A                          2

  (III) HAS MORE THAN FIFTY PERCENT OF ITS OWNERSHIP INTERESTS OWNED  OR
HELD BY:
  (A) A PERSON OR PERSONS WHO ARE NOT CITIZENS OF THE UNITED STATES, OR
  (B) CORPORATIONS AND/OR ENTITIES THAT ARE:
  (I) NOT HEADQUARTERED IN THE UNITED STATES, OR
  (II)  NOT  CHARTERED  BY  THE UNITED STATES OR ANY STATE IN THE UNITED
STATES.
  S 2. This act shall take effect on the ninetieth day  after  it  shall
have become a law.

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