S T A T E O F N E W Y O R K
________________________________________________________________________
9679
I N A S S E M B L Y
May 15, 2014
___________
Introduced by M. of A. SOLAGES -- read once and referred to the Commit-
tee on Corporations, Authorities and Commissions
AN ACT to amend the public authorities law, in relation to the regu-
lation of bus privatization contracts
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Legislative intent. The legislature hereby finds and
declares that decisions to use private contractors to provide public
transportation service must be based on factors which promote the public
interest. To ensure that citizens of the state receive high quality
transit services at low cost, with due regard for the taxpayers of the
state and the needs of public and private workers, the legislature finds
it necessary to regulate such privatization contracts.
S 2. The public authorities law is amended by adding a new section
2875-c to read as follows:
S 2875-C. REGULATION OF PRIVATIZATION CONTRACTS. 1. DEFINITIONS. AS
USED IN THIS SECTION, THE FOLLOWING WORDS SHALL HAVE THE FOLLOWING MEAN-
INGS:
A. "PUBLIC TRANSPORTATION SYSTEM" MEANS ANY PASSENGER TRANSPORTATION
SERVICE PROVIDED BY BUS, WHICH, DURING ITS HOURS OF OPERATION, IS AVAIL-
ABLE ON AN EQUAL OPPORTUNITY BASIS TO ANY PERSON, WITHOUT PREFERENCE FOR
SERVICE AVAILABILITY, ELIGIBILITY OR DESIGN BEING GIVEN TO ANY PERSON OR
POPULATION SUB-GROUP BECAUSE OF AGE, GENDER, RACE, NATIONAL ORIGIN,
CREED OR AGENCY CLIENT STATUS, AND WHICH IS REGULARLY ADVERTISED AND
MARKETED AS AVAILABLE TO THE GENERAL PUBLIC. NOTHING IN THIS ARTICLE
SHALL BE DEEMED TO MEAN THAT THE TRANSPORTATION SERVICES OPERATED OR
PROVIDED BY HUMAN OR SOCIAL SERVICE AGENCIES SOLELY FOR THEIR CLIENTS OR
PROGRAMS CONSTITUTE, IN AND OF THEMSELVES, PUBLIC TRANSPORTATION
SERVICES.
B. "PRIVATIZATION CONTRACT" SHALL MEAN AGREEMENT OR COMBINATION OR
SERIES OF AGREEMENTS BY WHICH A PRIVATE PERSON OR ENTITY AGREES WITH A
PUBLIC TRANSPORTATION SYSTEM TO PROVIDE SERVICES, VALUED AT ONE HUNDRED
THOUSAND DOLLARS OR MORE, WHICH ARE SUBSTANTIALLY SIMILAR TO AND IN LIEU
OF, SERVICES HERETOFORE PROVIDED, IN WHOLE OR IN PART, BY REGULAR
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15227-01-4
A. 9679 2
EMPLOYEES OF THE PUBLIC TRANSPORTATION SYSTEM. AN AGREEMENT SOLELY TO
PROVIDE LEGAL, MANAGEMENT CONSULTING, PLANNING, ENGINEERING OR DESIGN
SERVICES SHALL NOT BE CONSIDERED A PRIVATIZATION CONTRACT.
2. REQUIREMENTS. A. A PUBLIC TRANSPORTATION SYSTEM SHALL NOT MAKE ANY
PRIVATIZATION CONTRACT AND NO SUCH CONTRACT SHALL BE VALID UNLESS THE
PUBLIC TRANSPORTATION SYSTEM COMPLIES WITH EACH OF THE FOLLOWING
REQUIREMENTS:
(1) THE PUBLIC TRANSPORTATION SYSTEM SHALL PREPARE A SPECIFIC WRITTEN
STATEMENT OF THE SERVICES PROPOSED TO BE THE SUBJECT OF THE PRIVATIZA-
TION CONTRACT, INCLUDING THE SPECIFIC QUANTITY AND STANDARD OF QUALITY
OF THE SUBJECT SERVICES;
(2) THE PUBLIC TRANSPORTATION SYSTEM SHALL INCLUDE IN THE WRITTEN
STATEMENT A SUMMARY OF THE EMPLOYEES' SALARIES, PENSION BENEFITS AND
HEALTH CARE COVERAGE AND HOW THOSE SALARIES, PENSION BENEFITS AND HEALTH
CARE COVERAGE WILL BE AFFECTED BY THE PRIVATIZATION CONTRACT;
(3) THE ORGANIZATION SHALL SOLICIT COMPETITIVE SEALED BIDS FOR THE
PRIVATIZATION CONTRACTS BASED UPON THIS STATEMENT;
(4) THE DAY DESIGNATED BY THE PUBLIC TRANSPORTATION SYSTEM UPON WHICH
IT WILL ACCEPT THESE SEALED BIDS SHALL BE THE SAME FOR ANY AND ALL
PARTIES;
(5) THIS STATEMENT SHALL BE A PUBLIC RECORD, SHALL BE FILED AT THE
PUBLIC TRANSPORTATION SYSTEM, AND SHALL BE TRANSMITTED TO THE STATE
COMPTROLLER FOR REVIEW PURSUANT TO SUBDIVISION THREE OF THIS SECTION;
(6) THE TERM OF ANY PRIVATIZATION CONTRACT SHALL NOT EXCEED THREE
YEARS; AND
(7) NO AMENDMENT TO A PRIVATIZATION CONTRACT SHALL BE VALID IF IT HAS
THE PURPOSE OR EFFECT OF AVOIDING ANY REQUIREMENT OF THIS SECTION.
B. AFTER SOLICITING AND RECEIVING BIDS, THE PUBLIC TRANSPORTATION
SYSTEM SHALL PUBLICLY DESIGNATE THE BIDDER TO WHICH IT PROPOSES TO AWARD
THE CONTRACT. THE PUBLIC TRANSPORTATION SYSTEM SHALL PREPARE A COMPRE-
HENSIVE WRITTEN ANALYSIS OF THE CONTRACT COST BASED UPON THE DESIGNATED
BID, SPECIFICALLY INCLUDING THE COSTS OF TRANSITION FROM PUBLIC TO
PRIVATE OPERATION, OF ADDITIONAL UNEMPLOYMENT AND RETIREMENT BENEFITS,
IF ANY, AND OF MONITORING AND OTHERWISE ADMINISTERING CONTRACT PERFORM-
ANCE. IF THE DESIGNATED BIDDER IS HEADQUARTERED OUTSIDE THE STATE, SAID
CONTRACT COST SHALL BE INCREASED BY THE AMOUNT OF INCOME TAX REVENUE, IF
ANY, WHICH WILL BE LOST TO THE STATE.
C. THE PUBLIC TRANSPORTATION SYSTEM SHALL PROVIDE A COPY OF THE
PROPOSED PRIVATIZATION CONTRACT AS WELL AS CERTIFY IN WRITING TO THE
STATE COMPTROLLER THAT:
(1) IT HAS COMPLIED WITH ALL PROVISIONS OF THIS SECTION AND OF ALL
OTHER APPLICABLE LAWS;
(2) THE QUALITY OF THE PUBLIC TRANSPORTATION SERVICES TO BE PROVIDED
BY THE DESIGNATED BIDDER IS LIKELY TO SATISFY THE QUALITY REQUIREMENTS
OF THE STATEMENT PREPARED PURSUANT TO SUBPARAGRAPH ONE OF PARAGRAPH (A)
OF THIS SUBDIVISION AND TO EQUAL OR EXCEED THE QUALITY OF SERVICES WHICH
COULD BE PROVIDED BY REGULAR PUBLIC TRANSPORTATION SYSTEM EMPLOYEES;
(3) THE CONTRACT COST WILL BE AT LEAST FIFTEEN PERCENT LESS THAN THE
ESTIMATED CURRENT YEAR COST OF THE PUBLIC SYSTEM;
(4) THE DESIGNATED BIDDER AND ITS SUPERVISORY EMPLOYEES, WHILE IN THE
EMPLOY OF SAID DESIGNATED BIDDER, HAVE NO ADJUDICATED RECORD OF SUBSTAN-
TIAL OR REPEATED WILLFUL NONCOMPLIANCE WITH ANY RELEVANT FEDERAL OR
STATE REGULATORY STATUTE INCLUDING, BUT NOT LIMITED TO, STATUTES
CONCERNING LABOR RELATIONS, OCCUPATIONAL SAFETY AND HEALTH, NONDISCRIMI-
NATION AND AFFIRMATIVE ACTION, ENVIRONMENTAL PROTECTION AND CONFLICTS OF
INTEREST;
A. 9679 3
(5) THE PROPOSED PRIVATIZATION CONTRACT IS IN THE PUBLIC INTEREST, IN
THAT IT MEETS THE APPLICABLE QUALITY AND FISCAL STANDARDS SET FORTH
HEREIN; AND
(6) THE CONTRACT IS IN CONFORMANCE WITH THE PROVISIONS OF ANY APPLICA-
BLE COLLECTIVE BARGAINING AGREEMENT AND SUBJECT TO THE PROVISIONS OF ANY
EMPLOYEE PROTECTION ARRANGEMENTS ESTABLISHED UNDER 49 U.S.C. 5333(B).
3. REVIEW BY STATE COMPTROLLER; APPROVAL OR OBJECTION; PROCEDURES;
PROMULGATION OF REGULATIONS. A. NO PRIVATIZATION CONTRACT SHALL BE VALID
IF WITHIN THIRTY BUSINESS DAYS AFTER RECEIVING THE CERTIFICATION FROM
THE PUBLIC TRANSPORTATION SYSTEM, THE STATE COMPTROLLER NOTIFIES THE
PUBLIC TRANSPORTATION SYSTEM OF ITS OBJECTION. SUCH OBJECTION SHALL BE
IN WRITING AND SHALL STATE SPECIFICALLY THE STATE COMPTROLLER'S FINDING
THAT THE PUBLIC TRANSPORTATION SYSTEM HAS FAILED TO COMPLY WITH ONE OR
MORE REQUIREMENT FOR PRIVATIZATION, INCLUDING THAT THE STATE COMPTROLLER
FINDS INCORRECT, BASED ON INDEPENDENT REVIEW OF ALL THE RELEVANT FACTS,
ANY OF THE FINDINGS REACHED BY THE PUBLIC TRANSPORTATION SYSTEM. THE
STATE COMPTROLLER MAY EXTEND THE TIME FOR SUCH OBJECTION FOR AN ADDI-
TIONAL PERIOD OF THIRTY BUSINESS DAYS BEYOND THE ORIGINAL THIRTY BUSI-
NESS DAYS BY WRITTEN NOTICE TO THE PUBLIC TRANSPORTATION SYSTEM, STATING
THE REASON FOR SUCH EXTENSION.
B. FOR THE PURPOSE OF REVIEWING THE PUBLIC TRANSPORTATION SYSTEM'S
COMPLIANCE AND CERTIFICATION, THE STATE COMPTROLLER OR HIS OR HER DESIG-
NEE MAY REQUIRE BY SUMMONS THE ATTENDANCE AND TESTIMONY UNDER OATH OF
WITNESSES AND THE PRODUCTION OF BOOKS, PAPERS AND OTHER RECORDS RELATING
TO SUCH REVIEW.
C. THE STATE COMPTROLLER MAY ADOPT REGULATIONS AND PRESCRIBE FORMS TO
CARRY OUT THE PROVISIONS OF THIS SECTION.
D. THE OBJECTION OF THE STATE COMPTROLLER PURSUANT TO PARAGRAPH A OF
THIS SUBDIVISION SHALL BE FINAL AND BINDING ON THE PUBLIC TRANSPORTATION
SYSTEM, UNLESS THE STATE COMPTROLLER THEREAFTER IN WRITING WITHDRAWS THE
OBJECTION, STATING THE SPECIFIC REASONS, BASED UPON A REVISED CERTIF-
ICATION BY THE PUBLIC TRANSPORTATION SYSTEM AND UPON THE STATE COMP-
TROLLER'S REVIEW THEREOF.
S 3. This act shall take effect on the ninetieth day after it shall
have become a law.