NY State Senate Bill 2019-S5318A

Senate Bill S5318A

2019-2020 Legislative Session

Requires all public authorities owning, leasing, and controlling critical infrastructure to study the potential consequences of privatization

download bill text pdf

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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to corporations, authorities and commissions
May 06, 2019	reported and committed to finance
May 02, 2019	print number 5318a
May 02, 2019	amend and recommit to corporations, authorities and commissions
Apr 25, 2019	referred to corporations, authorities and commissions

Votes

- May 6, 2019 - Corporations, Authorities And Commissions Committee Vote
  S5318A
  
  6
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Corporations, Authorities And Commissions Committee Vote: May 6, 2019
      
      aye (6)
      
      Boyle
      
      Comrie
      
      Gounardes
      
      Mayer
      
      Ramos
      
      Skoufis
      
      aye wr (1)
      
      Ranzenhofer

Bill Amendments

Original

A (Active)

2019-S5318 - Details

Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: Public Authorities
Versions Introduced in Other Legislative Sessions:: 2015-2016: S5388
2017-2018: S6296
2021-2022: S5528
2023-2024: S5590

2019-S5318 - Summary

Requires all public authorities owning, leasing, and controlling critical infrastructure to study the potential consequences of privatization.

2019-S5318 - Sponsor Memo

                                
 
BILL NUMBER: S5318

SPONSOR: COMRIE
 
TITLE OF BILL:  An act requiring all public authorities owning, leas-
ing, and controlling critical infrastructure to study the potential
consequences of privatization

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would require all public authorities to suspend all action in
regard to transferring critical infrastructure to the private business
sector, until each of such public authorities has issued a study report-
ing on the effects of privatization on the infrastructure.

 
SUMMARY OF SPECIFIC PROVISIONS:

All public authorities shall suspend all action with regard to privati-
zation of transportation infrastructure. All public authorities shall
issue a report on the effects of privatization of transportation infras-
tructure to the assembly committees on corporations, authorities and
commissions, economic development, transportation, and ways and means

and to the senate committees on commerce, economic development and small
business, corporations, authorities and commissions, and transportation.
Each public authority report should analyze in detail, the fiscal
ramifications of privatization of critical infrastructure and compare
the specifics of any proposed project to any existing privatization
initiatives in the United States.

 
JUSTIFICATION:

This bill would require public authorities to analyze the long-term
fiscal implications of privatizing critical infrastructure. Public
authorities should be required to show proof that a onetime cash
infusion resulting from selling public assets is preferable to the
decades of future income and tighter control of price increases that
currently exist. The possibility exists that taxpayers will be left with
higher tolls and poorer service when private entities begin seeking
greater profits from privatized infrastructure. The legislature needs
the specific details of any and all deals that would privatize infras-
tructure in New York State, before any precedent setting deals are
completed.

 
PRIOR LEGISLATIVE HISTORY:

S.6296-A of 2017-18.

 
FISCAL IMPACT:

None.

 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law, except that any rule or regulation necessary for the time-
ly implementation of this act on its effective date shall be promulgated
on or before, such date.

2019-S5318 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5318
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              April 25, 2019
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Corporations,  Authorities
   and Commissions
 
 AN ACT requiring all public authorities owning, leasing, and controlling
   critical  infrastructure to study the potential consequences of priva-
   tization

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Legislative  findings. 1. New York state must have suffi-
 cient numbers of properly  designed  and  maintained  bridges,  tunnels,
 roads, airports, ports, container ports and railroads ("critical infras-
 tructure")  in order to retain its economic competitiveness and grow its
 economy.
   2. Much of the state's existing critical infrastructure is  aging,  is
 experiencing capacity problems, has had maintenance problems, or in some
 other  manner  has  become  a  candidate for re-engineering, rebuilding,
 replacement or supplementation.
   3. The most critical and expensive infrastructure in New York state to
 re-engineer, rebuild or replace is under the  control  or  ownership  of
 public  authorities,  and such critical transportation infrastructure is
 under consideration for sale,  long-term  lease  or  other  transfer  of
 ownership or control to the private business sector ("privatization").
   §  2.  1.  All  public  authorities  shall immediately suspend issuing
 concessions or selling or otherwise transferring, or issuing notices  of
 inquiry ("NOIs") or requests for proposal ("RFPs") for leasing, or sell-
 ing  or  otherwise  transferring  control of any critical transportation
 infrastructure, until each of such public authorities has issued a study
 reporting on the effects of  privatization  of  critical  transportation
 infrastructure,  and  all  public authorities shall forbear from issuing
 concessions or selling or otherwise transferring, or issuing notices  of
 inquiry    ("NOIs")  or  requests for proposals ("RFPs") for leasing, or

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

                                                            LBD08655-01-9

 S. 5318                             2
 
 selling or otherwise transferring control of any critical transportation
 infrastructure during the pendency of such studies  (the  "privatization
 report").
   2.  (a) Each public authority shall issue its individual report to the
 assembly  committees  on  corporations,  authorities  and   commissions,
 economic  development,  transportation,  and  ways and means, and to the
 senate committees on commerce, economic development and small  business,
 corporations,  authorities  and  commissions,  and  transportation  (the
 "Committees").
   (b) Each public  authority's  report  shall  evaluate  in  detail  the
 following:
   (i)  the  impact  that  sale  or  transfer  of control of its critical
 infrastructure would have upon the authority's ability to  pay  any  and
 all  debt  it has issued, or succeeded to, that is guaranteed or secured
 by any revenues arising from the authority's critical infrastructure, or
 by the ownership of such critical infrastructure;
   (ii) whether the critical infrastructure involved any existing  priva-
 tization initiatives in the United States are comparable in scope, scale
 and  value  to  the  critical  infrastructure  controlled  by the public
 authority ("comparable projects");
   (iii) the progress to date of any comparable projects and whether  any
 such  projects  have  experienced  cost overruns or delays, or otherwise
 have failed, or succeeded, in meeting the deadlines and costs put  forth
 by the private entity.
   3.  (a)  The privatization report shall be due on or within 14 days of
 December 1, 2019. Within 90 days after the date  each  public  authority
 submits  the  report  provided for in subdivision one of this section to
 the committees, such committees may, severally or  collectively,  submit
 further issues for study and inclusion in such report, which said public
 authorities  shall  study  and include within such report within 60 days
 after receipt of any such submission, at which point said public author-
 ities shall submit the privatization report to the governor, the  tempo-
 rary  president of the senate, the speaker of the assembly, the minority
 leaders of the senate and assembly, the chairperson and ranking minority
 member of the senate corporations, authorities and  commissions  commit-
 tee,  and  the  chairperson  and ranking minority member of the assembly
 corporations, authorities and commissions committee.
   (b) The governor, the temporary president of the senate,  the  speaker
 of  the  assembly,  the minority leaders of the senate and assembly, the
 chairperson and ranking minority  member  of  the  senate  corporations,
 authorities  and  commissions committee, and the chairperson and ranking
 minority member of the assembly corporations,  authorities  and  commis-
 sions  committee  shall  have a period of 90 days within which to submit
 further issues for study and inclusion in such report, which said public
 authorities shall study and include within such report  within  60  days
 after receipt of any such submission.
   (c)  No  public authority shall take any action to privatize any crit-
 ical infrastructure owned by it, leased by it, or  otherwise  controlled
 by  it,  including  but  not  limited  to the actions enumerated in this
 section, until the privatization  report,  including  responses  to  its
 submission  by  the committees, legislators and the executives mentioned
 above shall, have been completed and submitted to said persons.
   § 3. This act shall take effect on the ninetieth day  after  it  shall
 have  become  a  law.  Any  rule  or regulation necessary for the timely
 implementation of this act on its effective date may be  promulgated  on
 or before such date.

2019-S5318A (ACTIVE) - Details

Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: Public Authorities
Versions Introduced in Other Legislative Sessions:: 2015-2016: S5388
2017-2018: S6296
2021-2022: S5528
2023-2024: S5590

2019-S5318A (ACTIVE) - Summary

Requires all public authorities owning, leasing, and controlling critical infrastructure to study the potential consequences of privatization.

2019-S5318A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S5318A

SPONSOR: COMRIE
 
TITLE OF BILL:  An act requiring all public authorities owning, leas-
ing, and controlling critical infrastructure to study the potential
consequences of privatization

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would require all public authorities seeking to transfer
control of critical transportation infrastructure to the private busi-
ness sector, as well as all those who have done so within the past ten
years, to issue a study reporting on the effects of privatization on the
infrastructure and on the authority's finances and operations.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 lays out the legislative findings.

Section 2 defines key terms such as critical transportation infrastruc-
ture.

Section 3 lays out the requirement for public authorities looking to or
that have already have privatized pieces of critical transportation
infrastructure in the past ten years to study the effects of that priva-
tization. These studies would have to examine the effects privatization
of that piece of infrastructure would or did have on the authority's
finances and operations, as well as any comparable privatization initi-
atives across the United States, and the outcomes of those comparable
project(s). This section also describes the deadlines by which public
authorities must submit their reports to various committees of the New
York State Senate and Assembly and to various elected officials, receive
feedback from said figures, and then update their reports based on that
feedback.

Section 4 states the effective date.

 
JUSTIFICATION:

This bill would require public authorities to analyze the long-term
fiscal implications relative to the privatizization of critical trans-
portation infrastructure.

Public authorities should be required to show rational and demonstrable
proof that a onetime cash infusion resulting from selling public assets
is preferable to the decades of future income and tighter control of
price increases that may currently exist. The possibility exists that
taxpayers will be left with higher tolls and poorer service when private
entities begin seeking greater profits from privatized infrastructure.
The legislature needs the specific details of any and all deals that
have or would privatize infrastructure in New York State so we may craft
a comprehensive policy that protects the state.

 
PRIOR LEGISLATIVE HISTORY:

S.6296-A of 2017-18.

 
FISCAL IMPACT:

None.

 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law, except that any rule or regulation necessary for the time-
ly implementation of this act on its effective date shall be promulgated
on or before, such date.

2019-S5318A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5318--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              April 25, 2019
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Corporations,  Authorities
   and   Commissions  --  committee  discharged,  bill  amended,  ordered
   reprinted as amended and recommitted to said committee
 
 AN ACT requiring all public authorities owning, leasing, and controlling
   critical infrastructure to study the potential consequences of  priva-
   tization
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative findings. 1. New York state  must  have  suffi-
 cient  numbers  of  properly  designed and maintained pieces of critical
 transportation infrastructure such as bridges, tunnels, roads, airports,
 ports, container ports, railroads and rapid transit services in order to
 retain its economic competitiveness and grow its economy.
   2. Much of the state's existing critical infrastructure is  aging,  is
 experiencing capacity problems, has had maintenance problems, or in some
 other  manner  has  become  a  candidate for re-engineering, rebuilding,
 replacement or supplementation.
   3. The most critical and expensive  transportation  infrastructure  in
 New  York  state to re-engineer, rebuild or replace is under the control
 or ownership of public authorities,  and  such  critical  transportation
 infrastructure,  from  time  to  time,  is under consideration for sale,
 long-term lease or other transfer of ownership or control to the private
 business sector.
   § 2. For the purposes of this act, the following terms shall have  the
 following meanings:
   1.  "critical  transportation  infrastructure" shall refer to bridges,
 tunnels, roads, airports, ports, container ports,  railroads  and  rapid
 transit services owned by a state or local public authority;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08655-02-9

 S. 5318--A                          2
 
   2.  "privatization"  shall refer to the sale, long-term lease or other
 transfer of ownership or control of pieces  of  critical  transportation
 infrastructure to the private business sector;
   3.  "comparable projects" shall refer to existing privatization initi-
 atives in the United States comparable in scope, scale and value to  the
 critical  transportation  infrastructure  controlled  by  state or local
 public authorities; and
   4. "privatization report" shall refer to the report  created  pursuant
 to this act.
   §  3.  1.  All  public authorities who are currently in the process of
 issuing concessions or selling or  otherwise  transferring,  or  issuing
 notices  of inquiry ("NOIs") or requests for proposal ("RFPs") for leas-
 ing, or selling or otherwise transferring control of any critical trans-
 portation infrastructure, or who have done so in  the  past  ten  years,
 shall  issue  a study reporting on the effects of privatization of crit-
 ical transportation infrastructure.
   2. (a) Each public authority shall issue its individual  privatization
 report  to  the  assembly  committees  on  corporations, authorities and
 commissions, economic development, transportation, and ways  and  means,
 and to the senate committees on commerce, economic development and small
 business, corporations, authorities and commissions, and transportation.
   (b)  Each  public  authority's  privatization report shall evaluate in
 detail the following:
   (i) the impact that sale  or  transfer  of  control  of  its  critical
 infrastructure  would  have  upon the authority's ability to pay any and
 all debt it has issued, or succeeded to, that is guaranteed  or  secured
 by any revenues arising from the authority's critical infrastructure, or
 by the ownership of such critical infrastructure;
   (ii)  whether the critical infrastructure involved any existing priva-
 tization initiatives in the United States are comparable in scope, scale
 and value to  the  critical  infrastructure  controlled  by  the  public
 authority;
   (iii)  the progress to date of any comparable projects and whether any
 such projects have experienced cost overruns  or  delays,  or  otherwise
 have  failed, or succeeded, in meeting the deadlines and costs put forth
 by the private entity.
   3. (a) The privatization report shall be due on or within 14  days  of
 December  1,  2020.  Within 90 days after the date each public authority
 submits the report provided for in subdivision one of  this  section  to
 the  committees,  such committees may, severally or collectively, submit
 further issues for study and inclusion in such report, which said public
 authorities shall study and include within such report  within  60  days
 after receipt of any such submission, at which point said public author-
 ities  shall submit the privatization report to the governor, the tempo-
 rary president of the senate, the speaker of the assembly, the  minority
 leaders of the senate and assembly, the chairperson and ranking minority
 member  of  the senate corporations, authorities and commissions commit-
 tee, and the chairperson and ranking minority  member  of  the  assembly
 corporations, authorities and commissions committee.
   (b)  The  governor, the temporary president of the senate, the speaker
 of the assembly, the minority leaders of the senate  and  assembly,  the
 chairperson  and  ranking  minority  member  of the senate corporations,
 authorities and commissions committee, and the chairperson  and  ranking
 minority  member  of  the assembly corporations, authorities and commis-
 sions committee shall have a period of 90 days within  which  to  submit
 further issues for study and inclusion in such report, which said public

 S. 5318--A                          3
 
 authorities  shall  study  and include within such report within 60 days
 after receipt of any such submission.
   §  4.  This  act shall take effect on the ninetieth day after it shall
 have become a law.    Effective  immediately,  the  addition,  amendment
 and/or repeal of any rule or regulation necessary for the implementation
 of  this  act  on  its  effective  date  are  authorized  to be made and
 completed on or before such effective date.

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