S T A T E O F N E W Y O R K
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3774
2017-2018 Regular Sessions
I N A S S E M B L Y
January 30, 2017
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Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
tee 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:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07579-01-7
A. 3774 2
26. COMPREHENSIVE AND REGULAR MANAGEMENT AND OPERATIONS AUDITS. (A)
THE AUTHORITY SHALL COOPERATE IN THE UNDERTAKING AND COMPLETION OF A
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-ONE; 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
A. 3774 3
BASIS OF SUCH DETERMINATION BEING PROVIDED TO THE DEPARTMENT OF PUBLIC
SERVICE. SUCH NOTICE AND BASIS SHALL BE POSTED CONTEMPORANEOUSLY ON THE
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.