NY State Senate Bill 2017-S7956

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications 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
Mar 13, 2018	referred to energy and telecommunications

2017-S7956 (ACTIVE) - Details

Current Committee:: Senate Energy And Telecommunications
Law Section:: Public Authorities Law
Laws Affected:: Amd §1009, Pub Auth L

2017-S7956 (ACTIVE) - Summary

Relates to certain contracts negotiated by the power authority.

2017-S7956 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7956

SPONSOR: GRIFFO
 
TITLE OF BILL:  An act to amend the public authorities law, in
relation to certain contracts negotiated by the power authority of the
state of New York

 
PURPOSE OF THE BILL:

The purpose of this bill is to modernize the antiquated process that has
applied since 1931 to contracts for the sale of electricity generated by
facilities of the Power Authority of the State of New York ("NYPA").

 
SUMMARY OF PROVISIONS:

Section 1 of the bill would amend Public Authorities Law ("PAL") § 1009
to authorize NYPA to execute power contracts that are subject to Section
1009 after NYPA: (1) transmits a copy of the proposed contract to the
Governor and specified legislative leaders; and (2) makes a copy of the
such proposed contract available for public review at NYPA's offices and
on its website for a period of thirty days.

Section 2 of the bill contains the bill's effective date clause, which
provides that the act would take effect immediately.

 
JUSTIFICATION:

Since 1931, contracts for the sale of electricity generated by NYPA have
been subject to the following process which has been codified in PAL §
1009:

*A copy of the proposed contract must be transmitted to the Governor and
legislative leaders.
*NYPA must conduct a public hearing on the proposed contract, and give
at least 30 days' notice of the public hearing in 6 different newspa-
pers.
*A copy of the contract must be made available for public inspection for
30 days.
*After making any changes to the contract it deems to be appropriate
after the public hearing, NYPA must thereafter transmit the proposed
final contract to the Governor and legislative leaders.
*The Governor has 60 days to approve or disapprove the proposed final
contract.
*If the Governor approves the contract, NYPA and its co-party may
execute the contract.

This process, created over 85 years ago, no longer serves a useful
purpose. Public hearings on NYPA power sale contracts almost never draw
attendees or result in any public comment on the contracts. The process
is also costly. On average, NYPA expends more than $100,000 annually to
notice, prepare for, travel to and from all corners of the State, and
host the public hearings in accordance with Section 1009. The process is
also not necessary to assist in transparency.  Allocations of NYPA power
and contracts for the sale of such allocations are subject to the
approval of NYPA's Board of Trustees.  In accordance with the Open Meet-
ings Law - which did not exist when the hearing and review process was
created - NYPA Trustee meetings are open to the public, and meeting
agendas, including proposed contracts, are made public in advance of the
meetings. The bill's requirement that NYPA furnish a copy of proposed
contracts to the Governor and legislative leaders, and make the proposed
contract available for public review for thirty days prior to the
execution of the contract, will preserve transparency as well as an
opportunity for comment to NYPA on proposed contracts.

Finally, the more streamlined process provided for by the bill would
enable NYPA to more effectively support economic development in New York
State. New York must be able to compete effectively with other states to
attract business and respond promptly to proposed economic development
opportunities. The current process on average takes six months to
complete. Some businesses have expressed frustration over this process
which can affect NYPA's ability to offer firm commitments, such as a
low-cost power allocation, to support proposed economic projects.

 
BUDGET IMPLICATIONS:

None. NYPA estimates that the new process would save over $100,000 annu-
ally.

 
EFFECTIVE DATE:
This act would take effect immediately.

2017-S7956 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7956
 
                             I N  S E N A T E
 
                              March 13, 2018
                                ___________
 
 Introduced  by Sen. GRIFFO -- (at request of the New York Power Authori-
   ty) -- read twice and ordered printed, and when printed to be  commit-
   ted to the Committee on Energy and Telecommunications
 
 AN  ACT  to  amend  the  public  authorities law, in relation to certain
   contracts negotiated by 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.  Section 1009 of the public authorities law, as amended by
 chapter 294 of the laws of 1968, subdivisions  1  and  3  as  separately
 amended  by chapters 412 and 521 of the laws of 1984, is amended to read
 as follows:
   § 1009. Contracts negotiated by authority. Contracts negotiated by the
 authority as provided in [sub-paragraph]  SUBDIVISION  five  or  six  of
 section  one  thousand  five  of  this  title  shall be entered into and
 executed as follows:
   1. After agreement upon the terms of any  such  contracts  shall  have
 been  reached  by  the  authority  and  its  co-party or co-parties, the
 authority shall (I) promptly transmit a copy of such  proposed  contract
 to the governor, the speaker of the assembly, the minority leader of the
 assembly,  the chairman of the assembly committee on ways and means, the
 temporary president of the senate and the minority leader of the  senate
 and  the  chairman  of  the  senate  finance committee [and shall hold a
 public hearing or hearings upon the terms thereof. At least thirty days'
 notice of such hearing shall be given by publication once in  each  week
 during  such  period  in  each  of six newspapers within the state to be
 selected by the authority. Copies], AND (II) MAKE A COPY of THE proposed
 [contracts shall be] CONTRACT available  for  public  inspection  during
 such period of thirty days at the office or offices of the authority and
 at  such  other  places throughout the state as it may designate, AND ON
 THE AUTHORITY'S PUBLIC WEBSITE.
   2. Following [such public hearing] THE THIRTY-DAY PERIOD PROVIDED  FOR
 IN SUBDIVISION ONE OF THIS SECTION, the authority [shall] MAY reconsider
 the  terms of the proposed contract [or contracts] and [shall] negotiate
 such changes and modifications in the contract [or contracts] as it then
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD14390-01-8

 S. 7956                             2

 deems necessary or advisable, AND  PROVIDE  FOR  THE  EXECUTION  OF  THE
 CONTRACT BY THE AUTHORITY AND ITS CO-PARTY.
   [3.  When  such contract or contracts are finally agreed upon in terms
 satisfactory to the authority and its co-party or co-parties, and  which
 the authority believes to be in the public interest, the authority shall
 thereupon  report  the proposed contract or contracts, together with its
 recommendations and the record of the public hearings  thereon,  to  the
 speaker  of the assembly, the chairman of the assembly committee on ways
 and means, the temporary president of the senate, the  chairman  of  the
 senate  finance  committee  and the governor. The governor shall, within
 sixty days thereafter, indicate his approval or disapproval thereof  and
 give his reasons therefor.
   4. If the governor shall approve such contract, then the same shall be
 executed  by  the  chairman  and secretary of the authority and it shall
 thereupon come into full force  and  effect  and  be  binding  upon  the
 authority and all other parties thereto in accordance with its terms.]
   § 2. This act shall take effect immediately.

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Senate Bill S7956

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Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

Actions

2017-S7956 (ACTIVE) - Details

2017-S7956 (ACTIVE) - Summary

2017-S7956 (ACTIVE) - Sponsor Memo

2017-S7956 (ACTIVE) - Bill Text download pdf

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Sponsored By

Joseph A. Griffo

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

Actions

2017-S7956 (ACTIVE) - Details

2017-S7956 (ACTIVE) - Summary

2017-S7956 (ACTIVE) - Sponsor Memo

2017-S7956 (ACTIVE) - Bill Text download pdf

Comments