Senate Bill S5875

2011-2012 Legislative Session

Directs the port authority to contract with a certified public accounting firm for the conducting of an independent forensic audit of such authority

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Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 04, 2012	referred to corporations, authorities and commissions
Aug 24, 2011	referred to rules

co-Sponsors

2011-S5875 (ACTIVE) - Details

See Assembly Version of this Bill:: A8679
Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: Port Authority of New York and New Jersey
Laws Affected:: Add §1 Art VII-B, Chap 154 of 1921
Versions Introduced in Other Legislative Sessions:: 2013-2014: A4283
2015-2016: A3141
2017-2018: A7454

2011-S5875 (ACTIVE) - Summary

Directs the port authority to contract with a certified public accounting firm for the conducting of an independent forensic audit of such authority.

2011-S5875 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S5875

TITLE OF BILL:
An act
to amend chapter 154 of the laws of 1921 relating to the Port Authority
of New York and New Jersey, in relation to directing the port authority
to contract for the provision of an independent forensic audit of such
authority; and providing for the repeal of such provisions upon
expiration thereof

PURPOSE:
Directs the Port Authority of New York and New Jersey to contract
with a certified public accounting firm for the conducting of an
independent forensic audit.

SUMMARY OF PROVISIONS:
Section one of the bill amends 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 VII-B.

Section two is the effective date.

JUSTIFICATION:
This bill is necessary to give the Governors and Legislatures of New
York and New Jersey and the public the ability to know how and where
money is being spent for the operations of the Port Authority. While

the Port Authority Commissioners have recently approved a toll and
fare hike, it has been documented by the New York State Comptroller
that the Port Authority spent $85 million in overtime in 2010.
Another report shows the Authority lacked documentation for over $1
billion in service contracts and agreements and that it is
potentially missing out on tens of millions of dollars in savings. In
addition, recent media reports noted that the Authority has allowed
costs for rebuilding the World Trade Center to go $2 billion over
budget, and that it routinely loses tens of millions of dollars a
year on facilities.

At a time when every dollar counts, these actions are simply
inexcusable. The Port Authority cannot justify asking families and
businesses to pay substantially more in tolls, while at the same time
failing to control its budget. That is why this legislation, to
require an independent forensic audit, is necessary.

This audit will give the both New York and New Jersey governments, and
the public, the ability to know where Port Authority funds are being
allocated. This audit will be a blueprint to implement future cost
saving measures within the Authority. This bill will ensure that
revenue is being spent wisely and will also reveal ways that the Port
Authority can cut costs without harming the public's transportation
needs. The independent forensic audit, conducted by a public

accounting firm, must report its findings on or before one year from
the effective date of this article.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None to the states of New York and New Jersey.

EFFECTIVE DATE:
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 chairman of the port authority of New York and New Jersey shall
notify the legislative bill drafting commission upon the occurrence
of the enactment of the legislation provided for in section one 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.

2011-S5875 (ACTIVE) - Bill Text download pdf

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

                                  5875

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             August 24, 2011
                               ___________

Introduced  by  Sen.  LANZA  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend chapter 154 of the laws of 1921  relating  to  the  Port
  Authority  of  New  York  and New Jersey, in relation to directing the
  port authority to contract for the provision of an independent  foren-
  sic  audit  of  such  authority;  and providing for the repeal of such
  provisions upon expiration thereof

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

  Section  1.  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 VII-B to read as follows:
                               ARTICLE VII-B
  1. NOTWITHSTANDING ANY OTHER PROVISION OF LAW,  THE  AUTHORITY  SHALL,
WITHIN  SIXTY  DAYS OF THE EFFECTIVE DATE OF THIS ARTICLE AND AT ITS OWN
EXPENSE, CONTRACT WITH  A  CERTIFIED  PUBLIC  ACCOUNTING  FIRM  FOR  THE
PROVISION  OF  AN  INDEPENDENT,  COMPREHENSIVE,  FORENSIC  AUDIT  OF THE
AUTHORITY. SUCH AUDIT SHALL BE PERFORMED IN  ACCORDANCE  WITH  GENERALLY
ACCEPTED  GOVERNMENT AUDITING STANDARDS. SUCH AUDIT SHALL BE INDEPENDENT
OF AND IN ADDITION TO ANY INDEPENDENT AUDIT OF THE AUTHORITY.
  2. THE CERTIFIED INDEPENDENT  PUBLIC  ACCOUNTING  FIRM  PROVIDING  THE
AUTHORITY'S  INDEPENDENT, COMPREHENSIVE, FORENSIC AUDIT SHALL BE PROHIB-
ITED FROM PROVIDING AUDIT SERVICES IF THE LEAD (OR  COORDINATING)  AUDIT
PARTNER  (HAVING  PRIMARY  RESPONSIBILITY  FOR  THE AUDIT), OR THE AUDIT
PARTNER  RESPONSIBLE  FOR  REVIEWING  THE  AUDIT,  HAS  PERFORMED  AUDIT
SERVICES  FOR  THE AUTHORITY WITHIN ANY OF THE TEN PREVIOUS FISCAL YEARS
OF THE AUTHORITY.
  3. THE CERTIFIED INDEPENDENT  ACCOUNTING  FIRM  PERFORMING  THE  AUDIT
PURSUANT TO THIS SECTION SHALL BE PROHIBITED FROM PERFORMING ANY NON-AU-
DIT SERVICES FOR THE AUTHORITY CONTEMPORANEOUSLY WITH THE AUDIT.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13369-01-1

S. 5875                             2

  4.  IT  SHALL  BE  PROHIBITED  FOR  THE  CERTIFIED  INDEPENDENT PUBLIC
ACCOUNTING FIRM TO PERFORM FOR THE AUTHORITY ANY AUDIT  SERVICE  IF  THE
CHIEF  EXECUTIVE  OFFICER,  COMPTROLLER,  CHIEF FINANCIAL OFFICER, CHIEF
ACCOUNTING OFFICER OR ANY OTHER PERSON SERVING IN AN EQUIVALENT POSITION
IN  THE  AUTHORITY WAS AN EMPLOYEE, CONSULTANT OR INDEPENDENT CONTRACTOR
OF THAT CERTIFIED INDEPENDENT PUBLIC ACCOUNTING FIRM AND PARTICIPATED IN
ANY CAPACITY IN THE AUDIT OF THE AUTHORITY AT ANY TIME IN THE PAST.
  5. THE CERTIFIED INDEPENDENT  PUBLIC  ACCOUNTING  FIRM  CONTRACTED  TO
PERFORM  THE  INDEPENDENT COMPREHENSIVE, FORENSIC AUDIT OF THE AUTHORITY
SHALL, ON OR BEFORE ONE YEAR FROM THE EFFECTIVE DATE  OF  THIS  ARTICLE,
REPORT  ITS  FINDINGS,  CONCLUSIONS AND RECOMMENDATIONS TO THE GOVERNOR,
THE STATE COMPTROLLER, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAK-
ER OF THE ASSEMBLY, THE CHAIR AND RANKING MINORITY MEMBER OF THE  SENATE
FINANCE COMMITTEE, THE CHAIR AND RANKING MINORITY MEMBER OF THE ASSEMBLY
WAYS AND MEANS COMMITTEE, THE CHAIRS AND RANKING MINORITY MEMBERS OF THE
SENATE  AND  THE  ASSEMBLY  CORPORATIONS,  AUTHORITIES  AND  COMMISSIONS
COMMITTEES, AND THE CHAIRS AND RANKING MINORITY MEMBERS  OF  THE  SENATE
AND THE ASSEMBLY TRANSPORTATION COMMITTEES.
  S  2.  This  act  shall take effect 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 and shall expire and
be deemed repealed one year after such date; provided that the state  of
New  Jersey  shall  notify the legislative bill drafting commission upon
the occurrence of the enactment  of  the  legislation  provided  for  in
section  one  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.

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Senate Bill S5875

Sponsored By

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

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co-Sponsors

2011-S5875 (ACTIVE) - Details

2011-S5875 (ACTIVE) - Summary

2011-S5875 (ACTIVE) - Sponsor Memo

2011-S5875 (ACTIVE) - Bill Text download pdf

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Sponsored By

Andrew J. Lanza

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

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co-Sponsors

Diane J. Savino

2011-S5875 (ACTIVE) - Details

2011-S5875 (ACTIVE) - Summary

2011-S5875 (ACTIVE) - Sponsor Memo

2011-S5875 (ACTIVE) - Bill Text download pdf

Comments