S T A T E   O F   N E W   Y O R K
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                                  1139

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             January 8, 2015
                               ___________

Introduced  by  Sen.  AVELLA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Corporations,  Authorities
  and Commissions

AN  ACT  to  amend  the public authorities law, in relation to the regu-
  lation of bus privatization contracts

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Legislative  intent.  The  legislature  hereby  finds and
declares that decisions to use private  contractors  to  provide  public
transportation service must be based on factors which promote the public
interest.  To  ensure  that  citizens  of the state receive high quality
transit services at low cost, with due regard for the taxpayers  of  the
state and the needs of public and private workers, the legislature finds
it necessary to regulate such privatization contracts.
  S  2.  The  public  authorities law is amended by adding a new section
2875-c to read as follows:
  S 2875-C. REGULATION OF PRIVATIZATION CONTRACTS.  1.  DEFINITIONS.  AS
USED IN THIS SECTION, THE FOLLOWING WORDS SHALL HAVE THE FOLLOWING MEAN-
INGS:
  A.  "PUBLIC  TRANSPORTATION SYSTEM" MEANS ANY PASSENGER TRANSPORTATION
SERVICE PROVIDED BY BUS, WHICH, DURING ITS HOURS OF OPERATION, IS AVAIL-
ABLE ON AN EQUAL OPPORTUNITY BASIS TO ANY PERSON, WITHOUT PREFERENCE FOR
SERVICE AVAILABILITY, ELIGIBILITY OR DESIGN BEING GIVEN TO ANY PERSON OR
POPULATION SUB-GROUP BECAUSE OF  AGE,  GENDER,  RACE,  NATIONAL  ORIGIN,
CREED  OR  AGENCY  CLIENT  STATUS, AND WHICH IS REGULARLY ADVERTISED AND
MARKETED AS AVAILABLE TO THE GENERAL PUBLIC.  NOTHING  IN  THIS  ARTICLE
SHALL  BE  DEEMED  TO  MEAN THAT THE TRANSPORTATION SERVICES OPERATED OR
PROVIDED BY HUMAN OR SOCIAL SERVICE AGENCIES SOLELY FOR THEIR CLIENTS OR
PROGRAMS  CONSTITUTE,  IN  AND  OF  THEMSELVES,  PUBLIC   TRANSPORTATION
SERVICES.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02236-01-5

              

S. 1139                             2

  B.  "PRIVATIZATION CONTRACT" SHALL MEAN AN AGREEMENT OR COMBINATION OR
SERIES OF AGREEMENTS BY WHICH A PRIVATE PERSON OR ENTITY AGREES  WITH  A
PUBLIC  TRANSPORTATION SYSTEM TO PROVIDE SERVICES, VALUED AT ONE HUNDRED
THOUSAND DOLLARS OR MORE, WHICH ARE SUBSTANTIALLY SIMILAR TO AND IN LIEU
OF,  SERVICES  HERETOFORE  PROVIDED,  IN  WHOLE  OR  IN PART, BY REGULAR
EMPLOYEES OF THE PUBLIC TRANSPORTATION SYSTEM. AN  AGREEMENT  SOLELY  TO
PROVIDE  LEGAL,  MANAGEMENT  CONSULTING, PLANNING, ENGINEERING OR DESIGN
SERVICES SHALL NOT BE CONSIDERED A PRIVATIZATION CONTRACT.
  2. REQUIREMENTS. A. A PUBLIC TRANSPORTATION SYSTEM SHALL NOT MAKE  ANY
PRIVATIZATION  CONTRACT  AND  NO SUCH CONTRACT SHALL BE VALID UNLESS THE
PUBLIC  TRANSPORTATION  SYSTEM  COMPLIES  WITH  EACH  OF  THE  FOLLOWING
REQUIREMENTS:
  (1)  THE PUBLIC TRANSPORTATION SYSTEM SHALL PREPARE A SPECIFIC WRITTEN
STATEMENT OF THE SERVICES PROPOSED TO BE THE SUBJECT OF  THE  PRIVATIZA-
TION  CONTRACT,  INCLUDING THE SPECIFIC QUANTITY AND STANDARD OF QUALITY
OF THE SUBJECT SERVICES;
  (2) THE PUBLIC TRANSPORTATION SYSTEM  SHALL  INCLUDE  IN  THE  WRITTEN
STATEMENT  A  SUMMARY  OF  THE EMPLOYEES' SALARIES, PENSION BENEFITS AND
HEALTH CARE COVERAGE AND HOW THOSE SALARIES, PENSION BENEFITS AND HEALTH
CARE COVERAGE WILL BE AFFECTED BY THE PRIVATIZATION CONTRACT;
  (3) THE ORGANIZATION SHALL SOLICIT COMPETITIVE  SEALED  BIDS  FOR  THE
PRIVATIZATION CONTRACTS BASED UPON THIS STATEMENT;
  (4)  THE DAY DESIGNATED BY THE PUBLIC TRANSPORTATION SYSTEM UPON WHICH
IT WILL ACCEPT THESE SEALED BIDS SHALL BE  THE  SAME  FOR  ANY  AND  ALL
PARTIES;
  (5)  THIS  STATEMENT  SHALL  BE A PUBLIC RECORD, SHALL BE FILED AT THE
PUBLIC TRANSPORTATION SYSTEM, AND SHALL  BE  TRANSMITTED  TO  THE  STATE
COMPTROLLER FOR REVIEW PURSUANT TO SUBDIVISION THREE OF THIS SECTION;
  (6)  THE  TERM  OF  ANY  PRIVATIZATION CONTRACT SHALL NOT EXCEED THREE
YEARS; AND
  (7) NO AMENDMENT TO A PRIVATIZATION CONTRACT SHALL BE VALID IF IT  HAS
THE PURPOSE OR EFFECT OF AVOIDING ANY REQUIREMENT OF THIS SECTION.
  B.  AFTER  SOLICITING  AND  RECEIVING  BIDS, THE PUBLIC TRANSPORTATION
SYSTEM SHALL PUBLICLY DESIGNATE THE BIDDER TO WHICH IT PROPOSES TO AWARD
THE CONTRACT. THE PUBLIC TRANSPORTATION SYSTEM SHALL PREPARE  A  COMPRE-
HENSIVE  WRITTEN ANALYSIS OF THE CONTRACT COST BASED UPON THE DESIGNATED
BID, SPECIFICALLY INCLUDING THE  COSTS  OF  TRANSITION  FROM  PUBLIC  TO
PRIVATE  OPERATION,  OF ADDITIONAL UNEMPLOYMENT AND RETIREMENT BENEFITS,
IF ANY, AND OF MONITORING AND OTHERWISE ADMINISTERING CONTRACT  PERFORM-
ANCE.  IF THE DESIGNATED BIDDER IS HEADQUARTERED OUTSIDE THE STATE, SAID
CONTRACT COST SHALL BE INCREASED BY THE AMOUNT OF INCOME TAX REVENUE, IF
ANY, WHICH WILL BE LOST TO THE STATE.
  C. THE PUBLIC TRANSPORTATION  SYSTEM  SHALL  PROVIDE  A  COPY  OF  THE
PROPOSED  PRIVATIZATION  CONTRACT  AS  WELL AS CERTIFY IN WRITING TO THE
STATE COMPTROLLER THAT:
  (1) IT HAS COMPLIED WITH ALL PROVISIONS OF THIS  SECTION  AND  OF  ALL
OTHER APPLICABLE LAWS;
  (2)  THE  QUALITY OF THE PUBLIC TRANSPORTATION SERVICES TO BE PROVIDED
BY THE DESIGNATED BIDDER IS LIKELY TO SATISFY THE  QUALITY  REQUIREMENTS
OF THE STATEMENT PREPARED PURSUANT TO SUBPARAGRAPH ONE OF PARAGRAPH A OF
THIS  SUBDIVISION  AND  TO EQUAL OR EXCEED THE QUALITY OF SERVICES WHICH
COULD BE PROVIDED BY REGULAR PUBLIC TRANSPORTATION SYSTEM EMPLOYEES;
  (3) THE CONTRACT COST WILL BE AT LEAST FIFTEEN PERCENT LESS  THAN  THE
ESTIMATED CURRENT YEAR COST OF THE PUBLIC SYSTEM;
  (4)  THE DESIGNATED BIDDER AND ITS SUPERVISORY EMPLOYEES, WHILE IN THE
EMPLOY OF SAID DESIGNATED BIDDER, HAVE NO ADJUDICATED RECORD OF SUBSTAN-

S. 1139                             3

TIAL OR REPEATED WILLFUL NONCOMPLIANCE  WITH  ANY  RELEVANT  FEDERAL  OR
STATE  REGULATORY  STATUTE  INCLUDING,  BUT  NOT  LIMITED  TO,  STATUTES
CONCERNING LABOR RELATIONS, OCCUPATIONAL SAFETY AND HEALTH, NONDISCRIMI-
NATION AND AFFIRMATIVE ACTION, ENVIRONMENTAL PROTECTION AND CONFLICTS OF
INTEREST;
  (5)  THE PROPOSED PRIVATIZATION CONTRACT IS IN THE PUBLIC INTEREST, IN
THAT IT MEETS THE APPLICABLE QUALITY  AND  FISCAL  STANDARDS  SET  FORTH
HEREIN; AND
  (6) THE CONTRACT IS IN CONFORMANCE WITH THE PROVISIONS OF ANY APPLICA-
BLE COLLECTIVE BARGAINING AGREEMENT AND SUBJECT TO THE PROVISIONS OF ANY
EMPLOYEE PROTECTION ARRANGEMENTS ESTABLISHED UNDER 49 U.S.C. 5333(B).
  3.  REVIEW  BY  STATE  COMPTROLLER; APPROVAL OR OBJECTION; PROCEDURES;
PROMULGATION OF REGULATIONS. A. NO PRIVATIZATION CONTRACT SHALL BE VALID
IF WITHIN THIRTY BUSINESS DAYS AFTER RECEIVING  THE  CERTIFICATION  FROM
THE  PUBLIC  TRANSPORTATION  SYSTEM,  THE STATE COMPTROLLER NOTIFIES THE
PUBLIC TRANSPORTATION SYSTEM OF ITS OBJECTION. SUCH OBJECTION  SHALL  BE
IN  WRITING AND SHALL STATE SPECIFICALLY THE STATE COMPTROLLER'S FINDING
THAT THE PUBLIC TRANSPORTATION SYSTEM HAS FAILED TO COMPLY WITH  ONE  OR
MORE REQUIREMENT FOR PRIVATIZATION, INCLUDING THAT THE STATE COMPTROLLER
FINDS  INCORRECT, BASED ON INDEPENDENT REVIEW OF ALL THE RELEVANT FACTS,
ANY OF THE FINDINGS REACHED BY THE  PUBLIC  TRANSPORTATION  SYSTEM.  THE
STATE  COMPTROLLER  MAY  EXTEND THE TIME FOR SUCH OBJECTION FOR AN ADDI-
TIONAL PERIOD OF THIRTY BUSINESS DAYS BEYOND THE ORIGINAL  THIRTY  BUSI-
NESS DAYS BY WRITTEN NOTICE TO THE PUBLIC TRANSPORTATION SYSTEM, STATING
THE REASON FOR SUCH EXTENSION.
  B.  FOR  THE  PURPOSE  OF REVIEWING THE PUBLIC TRANSPORTATION SYSTEM'S
COMPLIANCE AND CERTIFICATION, THE STATE COMPTROLLER OR HIS OR HER DESIG-
NEE MAY REQUIRE BY SUMMONS THE ATTENDANCE AND TESTIMONY  UNDER  OATH  OF
WITNESSES AND THE PRODUCTION OF BOOKS, PAPERS AND OTHER RECORDS RELATING
TO SUCH REVIEW.
  C.  THE STATE COMPTROLLER MAY ADOPT REGULATIONS AND PRESCRIBE FORMS TO
CARRY OUT THE PROVISIONS OF THIS SECTION.
  D. THE OBJECTION OF THE STATE COMPTROLLER PURSUANT TO PARAGRAPH  A  OF
THIS SUBDIVISION SHALL BE FINAL AND BINDING ON THE PUBLIC TRANSPORTATION
SYSTEM, UNLESS THE STATE COMPTROLLER THEREAFTER IN WRITING WITHDRAWS THE
OBJECTION,  STATING  THE  SPECIFIC REASONS, BASED UPON A REVISED CERTIF-
ICATION BY THE PUBLIC TRANSPORTATION SYSTEM AND  UPON  THE  STATE  COMP-
TROLLER'S REVIEW THEREOF.
  S  3.  This  act shall take effect on the ninetieth day after it shall
have become a law.