Assembly Bill A10066

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10066
 
                           I N  A S S E M B L Y
 
                              March 14, 2018
                                ___________
 
 Introduced by M. of A. PAULIN, ABINANTI, SEAWRIGHT, D'URSO, SIMON, ERRI-
   GO  --  Multi-Sponsored  by  -- M. of A. COOK, CROUCH -- read once and
   referred to the Committee on Corporations, Authorities and Commissions
 
 AN ACT to amend the public service law, in relation to the department of
   public service; and to amend the public authorities law,  in  relation
   to the power authority of the state of New York

   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  "Power
 Authority of the State of New York oversight and accountability act".
   §  2.  The opening paragraph of section 3 of the public service law is
 designated subdivision 1 and a new subdivision 2 is  added  to  read  as
 follows:
   2.  THE  DEPARTMENT SHALL, UPON NOTIFICATION TO THE POWER AUTHORITY OF
 THE STATE OF NEW YORK, UNDERTAKE A COMPREHENSIVE AND REGULAR  MANAGEMENT
 AND  OPERATIONS  AUDIT OF SAID AUTHORITY PURSUANT TO SUBDIVISION TWENTY-
 SIX OF SECTION ONE THOUSAND FIVE OF  THE  PUBLIC  AUTHORITIES  LAW.  THE
 DEPARTMENT  SHALL HAVE DISCRETION TO HAVE SUCH AN AUDIT PERFORMED BY ITS
 STAFF, OR BY AN INDEPENDENT CONTRACTOR. IN EVERY CASE IN WHICH AN  AUDIT
 IS  REQUIRED  PURSUANT TO SUBDIVISION TWENTY-SIX OF SECTION ONE THOUSAND
 FIVE OF THE PUBLIC AUTHORITIES LAW PERFORMED BY AN INDEPENDENT  AUDITOR,
 THE  DEPARTMENT  SHALL  HAVE THE AUTHORITY TO SELECT THE AUDITOR, AND TO
 REQUIRE THE POWER AUTHORITY OF THE STATE OF NEW YORK  TO  ENTER  INTO  A
 CONTRACT WITH THE AUDITOR THAT IS CONSISTENT WITH THE CONTRACTING-RELAT-
 ED  REQUIREMENTS  SPECIFIED IN SUBDIVISION NINETEEN OF SECTION SIXTY-SIX
 OF THIS CHAPTER  AND  THE  REQUIREMENTS  OF  SUBDIVISION  TWENTY-SIX  OF
 SECTION  ONE  THOUSAND FIVE OF THE PUBLIC AUTHORITIES LAW. SUCH CONTRACT
 SHALL PROVIDE FURTHER THAT THE AUDITOR SHALL  WORK  FOR  AND  UNDER  THE
 DIRECTION  OF  THE  DEPARTMENT ACCORDING TO SUCH TERMS AS THE DEPARTMENT
 MAY DETERMINE ARE NECESSARY AND REASONABLE.
   § 3. Section 1005 of the public authorities law is amended by adding a
 new subdivision 26 to read as follows:
   26. COMPREHENSIVE AND REGULAR MANAGEMENT AND OPERATIONS AUDITS.    (A)
 THE  AUTHORITY  SHALL  COOPERATE  IN THE UNDERTAKING AND COMPLETION OF A
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD07579-02-8

 A. 10066                            2
 
 REGULAR AND COMPREHENSIVE  MANAGEMENT  AND  OPERATIONS  AUDIT  CONDUCTED
 PURSUANT  TO  THE  REQUIREMENTS  OF THIS SUBDIVISION.   SUCH AUDIT SHALL
 REVIEW AND EVALUATE THE AUTHORITY'S OVERALL OPERATIONS  AND  MANAGEMENT,
 INCLUDING,  BUT  NOT BE LIMITED TO: (I) THE AUTHORITY'S CONSTRUCTION AND
 CAPITAL PROGRAM PLANNING IN RELATION TO THE NEEDS OF ITS  CUSTOMERS  FOR
 RELIABLE  SERVICE;  (II) THE OVERALL EFFICIENCY OF THE AUTHORITY'S OPER-
 ATIONS; (III) THE MANNER IN WHICH THE  AUTHORITY  IS  MEETING  ITS  DEBT
 SERVICE  OBLIGATIONS;  (IV)  THE AUTHORITY'S ANNUAL BUDGETING PROCEDURES
 AND PROCESS; (V) THE AUTHORITY'S COMPLIANCE WITH  DEBT  COVENANTS;  (VI)
 THE IMPLEMENTATION OF RECHARGE NEW YORK POWER PROGRAM PURSUANT TO SUBDI-
 VISION THIRTEEN-A OF THIS SECTION; (VII) THE IMPLEMENTATION AND EFFICACY
 OF  THE  ENERGY EFFICIENCY PROGRAM PURSUANT TO PARAGRAPH (C) OF SUBDIVI-
 SION THIRTEEN-B OF THIS SECTION; (VIII) THE IMPLEMENTATION OF THE ENERGY
 EFFICIENCY PROJECTS PROGRAM PURSUANT TO SUBDIVISION  SEVENTEEN  OF  THIS
 SECTION;  AND  (IX)  SUCH OTHER SERVICES, OPERATIONS AND FINANCES OF THE
 AUTHORITY AS THE COMMISSION SHALL DEEM ADVISABLE.
   (B) THE DEPARTMENT OF PUBLIC SERVICE SHALL NOTIFY THE  AUTHORITY  THAT
 SAID  DEPARTMENT IS IN THE PROCESS OF INITIATING A COMPREHENSIVE MANAGE-
 MENT AND OPERATIONS AUDIT AS DESCRIBED IN PARAGRAPH (A) OF THIS SUBDIVI-
 SION IN A MANNER THAT ENSURES THE  TIMELINESS  OF  SUCH  AUDIT,  AND  IN
 ACCORDANCE WITH THE FOLLOWING TIMEFRAME: THE FIRST COMPREHENSIVE MANAGE-
 MENT AND OPERATIONS AUDIT SHALL BE INITIATED AS OF THE EFFECTIVE DATE OF
 THIS  SUBDIVISION;  THE  SECOND  COMPREHENSIVE MANAGEMENT AND OPERATIONS
 AUDIT SHALL BE INITIATED NO LATER THAN DECEMBER FIFTEENTH, TWO  THOUSAND
 TWENTY-TWO;  AND  ALL ADDITIONAL COMPREHENSIVE MANAGEMENT AND OPERATIONS
 AUDITS SHALL BE INITIATED AT LEAST ONCE  EVERY  FIVE  YEARS  THEREAFTER.
 WITHIN  A REASONABLE TIME AFTER SUCH NOTIFICATION TO THE AUTHORITY, SAID
 DEPARTMENT OR THE INDEPENDENT  AUDITOR  RETAINED  BY  THE  AUTHORITY  TO
 UNDERTAKE  SUCH  AUDIT SHALL HOLD PUBLIC STATEMENT HEARINGS, WITH PROPER
 NOTICE, IN EACH JUDICIAL DEPARTMENT IN THE  STATE  FOR  THE  PURPOSE  OF
 RECEIVING  BOTH  ORAL  AND  WRITTEN  COMMENTS FROM THE PUBLIC ON MATTERS
 RELATED TO SUCH AUDIT AS DESCRIBED IN PARAGRAPH (A) OF THIS SUBDIVISION.
   (C) EACH SUCH AUDIT SHALL  BE  COMPLETED  WITHIN  EIGHTEEN  MONTHS  OF
 INITIATION  UNLESS  AN  EXTENSION IS GRANTED FOR GOOD CAUSE SHOWN BY THE
 DEPARTMENT OF PUBLIC SERVICE OR THE INDEPENDENT AUDITOR  UNDER  CONTRACT
 WITH  THE  AUTHORITY  WITH NOTICE OF SUCH EXTENSION TO THE GOVERNOR, THE
 TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, AND  THE
 CHAIRS OF THE AUTHORITY AND THE DEPARTMENT OF PUBLIC SERVICE. SUCH AUDIT
 SHALL  BE  PROVIDED  TO  THE BOARD OF THE AUTHORITY IMMEDIATELY UPON ITS
 COMPLETION. THE DEPARTMENT OF PUBLIC SERVICE  SHALL  PROVIDE  NOTICE  OF
 COMPLETION OF SUCH AUDIT TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE
 SENATE,  THE  SPEAKER  OF  THE ASSEMBLY, AND THE MINORITY LEADERS OF THE
 SENATE AND ASSEMBLY, AND THE AUTHORITY,  UPON  RECEIPT  OF  SUCH  AUDIT,
 SHALL POST A COPY OF SUCH AUDIT, INCLUDING FINDINGS AND RECOMMENDATIONS,
 ON  ITS  WEBSITE.  UNLESS THE BOARD OF THE AUTHORITY MAKES A PRELIMINARY
 DETERMINATION THAT ANY PARTICULAR FINDING OR RECOMMENDATION CONTAINED IN
 SUCH AUDIT IS INCONSISTENT WITH THE AUTHORITY'S SOUND  FISCAL  OPERATING
 PRACTICES,  ANY  EXISTING  CONTRACTUAL  OR  OPERATING OBLIGATION, OR THE
 PROVISION FOR SAFE AND ADEQUATE SERVICE, THE BOARD SHALL IMPLEMENT  SUCH
 FINDINGS  AND RECOMMENDATIONS IN ACCORDANCE WITH THE TIMEFRAME SPECIFIED
 UNDER SUCH AUDIT.
   (D) THE BOARD OF THE AUTHORITY SHALL  MAKE  ANY  PRELIMINARY  DETERMI-
 NATION  OF INCONSISTENCY WITH RESPECT TO ANY SUCH FINDING OR RECOMMENDA-
 TION WITHIN THIRTY DAYS OF RECEIPT OF THE AUDIT,  WITH  NOTICE  AND  THE
 BASIS  OF  SUCH DETERMINATION BEING PROVIDED TO THE DEPARTMENT OF PUBLIC
 SERVICE. SUCH NOTICE AND BASIS SHALL BE POSTED CONTEMPORANEOUSLY ON  THE

 A. 10066                            3
 
 AUTHORITY'S  WEBSITE  AND  THE  BOARD  SHALL, WITHIN THIRTY DAYS OF SUCH
 POSTING AND WITH DUE ADVANCE NOTICE TO THE PUBLIC, HOLD A PUBLIC HEARING
 WITH RESPECT TO ITS PRELIMINARY DETERMINATION OF INCONSISTENCY. AT  SUCH
 HEARING  THE  DEPARTMENT  OF  PUBLIC  SERVICE OR THE INDEPENDENT AUDITOR
 RESPONSIBLE FOR UNDERTAKING SUCH AUDIT SHALL PRESENT THE BASIS  FOR  ITS
 FINDINGS  AND  RECOMMENDATIONS AND THE BOARD SHALL PRESENT THE BASIS FOR
 ITS DETERMINATION OF INCONSISTENCY. THE AUTHORITY AND AUDITOR MAY DURING
 THE TIME PERIOD PRIOR TO SUCH PUBLIC HEARING REACH AGREEMENT ON DISPUTED
 ISSUES. WITHIN THIRTY DAYS AFTER SUCH PUBLIC HEARING, THE BOARD  OF  THE
 AUTHORITY SHALL ANNOUNCE ITS FINAL DETERMINATION AND PLANNED IMPLEMENTA-
 TIONS  WITH  RESPECT  TO  ANY  SUCH FINDINGS AND/OR RECOMMENDATIONS. THE
 BOARD'S FINAL DETERMINATION OF INCONSISTENCY SHALL  BE  SUBJECT  TO  ANY
 APPLICABLE  JUDICIAL REVIEW PROCEEDING, INCLUDING REVIEW AVAILABLE UNDER
 ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES.
   § 4. This act shall take effect immediately.