S T A T E O F N E W Y O R K
________________________________________________________________________
6088
2025-2026 Regular Sessions
I N A S S E M B L Y
February 26, 2025
___________
Introduced by M. of A. RA -- read once and referred to the Committee on
Corporations, Authorities and Commissions
AN ACT to amend the public authorities law, in relation to requiring an
independent forensic audit of the metropolitan commuter transportation
authority; and providing for the repeal of such provisions upon expi-
ration thereof
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The public authorities law is amended by adding a new
section 1265-c to read as follows:
§ 1265-C. INDEPENDENT FORENSIC AUDIT. 1. NOTWITHSTANDING ANY OTHER
PROVISION OF LAW, THE AUTHORITY SHALL CONTRACT WITH A CERTIFIED INDE-
PENDENT PUBLIC ACCOUNTING FIRM FOR THE PROVISION OF AN INDEPENDENT,
COMPREHENSIVE, FORENSIC AUDIT OF THE AUTHORITY. SUCH AUDIT SHALL BE
PERFORMED IN ACCORDANCE WITH GENERALLY ACCEPTED GOVERNMENT AUDITING
STANDARDS. SUCH AUDIT SHALL EXAMINE REDUNDANCIES, INEFFICIENCIES, AND
THE AUTHORITY'S GOVERNANCE SYSTEM.
2. THE CERTIFIED INDEPENDENT PUBLIC ACCOUNTING FIRM PROVIDING SUCH
AUDIT SERVICES PURSUANT TO THIS SECTION SHALL BE PROHIBITED FROM PROVID-
ING AUDIT SERVICES IF THE LEAD OR COORDINATING AUDIT PARTNER HAVING
PRIMARY RESPONSIBILITY FOR THE AUDIT, OR THE AUDIT PARTNER RESPONSIBLE
FOR REVIEWING THE AUDIT, HAS PERFORMED AUDIT SERVICES FOR THE AUTHORITY
WITHIN ANY OF THE TEN PREVIOUS FISCAL YEARS OF THE AUTHORITY.
3. THE CERTIFIED INDEPENDENT PUBLIC ACCOUNTING FIRM PROVIDING SUCH
AUDIT SERVICES PURSUANT TO THIS SECTION SHALL BE PROHIBITED FROM
PERFORMING ANY NON-AUDIT SERVICES FOR THE AUTHORITY CONTEMPORANEOUSLY
WITH RESPECT TO SUCH AUDIT SERVICES.
4. IT SHALL BE PROHIBITED FOR THE CERTIFIED INDEPENDENT PUBLIC
ACCOUNTING FIRM TO PERFORM FOR THE AUTHORITY ANY AUDIT SERVICES IF:
(A) THE CHIEF EXECUTIVE OFFICER, COMPTROLLER, CHIEF FINANCIAL OFFICER,
CHIEF ACCOUNTING OFFICER OR ANY OTHER PERSON SERVING IN AN EQUIVALENT
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05947-02-5
A. 6088 2
POSITION IN THE AUTHORITY WAS AN EMPLOYEE, CONSULTANT OR INDEPENDENT
CONTRACTOR OF SUCH CERTIFIED INDEPENDENT PUBLIC ACCOUNTING FIRM AND/OR
PARTICIPATED IN ANY CAPACITY IN THE AUDIT OF THE AUTHORITY AT ANY TIME;
OR
(B) THE CHIEF EXECUTIVE OFFICER, COMPTROLLER, CHIEF FINANCIAL OFFICER,
CHIEF ACCOUNTING OFFICER OR ANY OTHER PERSON SERVING IN AN EQUIVALENT
POSITION WITH SUCH CERTIFIED INDEPENDENT PUBLIC ACCOUNTING FIRM WAS
EMPLOYED AS AN EXECUTIVE LEVEL EMPLOYEE OR AN EQUIVALENT POSITION WITH
THE AUTHORITY AT ANY TIME.
5. THE CERTIFIED INDEPENDENT PUBLIC ACCOUNTING FIRM CONTRACTED TO
PERFORM THE INDEPENDENT, COMPREHENSIVE, FORENSIC AUDIT OF THE AUTHORITY
PURSUANT TO THIS SECTION SHALL, WITHIN TWO YEARS FROM THE EFFECTIVE DATE
OF THIS SECTION, REPORT ITS FINDINGS, CONCLUSIONS AND RECOMMENDATIONS TO
THE GOVERNOR, THE STATE COMPTROLLER, THE TEMPORARY PRESIDENT OF THE
SENATE, THE SPEAKER OF THE ASSEMBLY, THE CHAIR AND RANKING MINORITY
MEMBER OF THE SENATE FINANCE COMMITTEE, THE CHAIR AND RANKING MINORITY
MEMBER OF THE ASSEMBLY WAYS AND MEANS COMMITTEE, THE CHAIRS AND RANKING
MINORITY MEMBERS OF THE SENATE AND ASSEMBLY CORPORATIONS, AUTHORITIES
AND COMMISSIONS COMMITTEES, AND THE CHAIRS AND RANKING MINORITY MEMBERS
OF THE SENATE AND ASSEMBLY TRANSPORTATION COMMITTEES. SUCH REPORT SHALL
INCLUDE, BUT NOT BE LIMITED TO, THE CERTIFIED INDEPENDENT PUBLIC
ACCOUNTING FIRM'S ANALYSIS OF REDUNDANCIES AND INEFFICIENCIES WITHIN THE
AUTHORITY, SUGGESTIONS TO REDUCE SUCH REDUNDANCIES AND INEFFICIENCIES,
AND RECOMMENDATIONS FOR ALTERNATIVE GOVERNANCE STRUCTURES WITHIN THE
AUTHORITY. SUCH REPORT SHALL BE MADE PUBLIC AND POSTED ON THE AUTHORI-
TY'S WEBSITE.
6. THE CERTIFIED INDEPENDENT PUBLIC ACCOUNTING FIRM SHALL DEVELOP NO
MORE THAN SIX GOVERNANCE ACTION PLAN PROPOSALS FOR ALTERNATIVE GOVER-
NANCE SYSTEMS WHICH SHALL BE ADOPTED BY THE AUTHORITY. SUCH PROPOSALS
SHALL BE DEVELOPED CONGRUENTLY WITH, AND INCLUDED IN, THE INDEPENDENT
FORENSIC AUDIT REPORT. SUCH PROPOSALS SHALL INCLUDE SUGGESTIONS AND
RECOMMENDATIONS FOR THE IMPLEMENTATION OF ALTERNATE GOVERNANCE STRUC-
TURES BASED UPON THE RECOMMENDATIONS AND SUGGESTIONS INCLUDED WITHIN
SUCH REPORT REQUIRED PURSUANT TO SUBDIVISION FIVE OF THIS SECTION,
INCLUDING, BUT NOT LIMITED TO, COMPREHENSIVE COST SAVINGS AND EFFICIENCY
IMPROVEMENT MEASURES. THE CERTIFIED INDEPENDENT PUBLIC ACCOUNTING FIRM
SHALL DEVELOP THE GOVERNANCE ACTION PLAN PROPOSALS CONGRUENTLY WITH THE
PUBLICATION OF THE COMPREHENSIVE FORENSIC AUDIT REPORT, AND THE AUTHORI-
TY SHALL ADOPT AND IMPLEMENT ONE OR MORE OF THE GOVERNANCE ACTION PLAN
PROPOSALS DEVELOPED BY THE CERTIFIED INDEPENDENT PUBLIC ACCOUNTING FIRM
WITHIN ONE YEAR OF THE PUBLICATION OF THE FORENSIC AUDIT REPORT.
§ 2. This act shall take effect immediately and shall expire and be
deemed repealed two years after such date.