NY State Senate Bill 2017-S1554

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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to corporations, authorities and commissions
Jan 10, 2017	referred to corporations, authorities and commissions

2017-S1554 (ACTIVE) - Details

See Assembly Version of this Bill:: A3164
Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: Public Authorities Law
Laws Affected:: Add §2875-c, Pub Auth L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S7574, A9679
2015-2016: S1139, A1210
2019-2020: S5108, A2442
2021-2022: S5741, A6606
2023-2024: S2761, A5699

2017-S1554 (ACTIVE) - Summary

Relates to the regulation of bus privatization contracts.

2017-S1554 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S1554

 TITLE OF BILL :  An act to amend the public authorities law, in
relation to the regulation of bus privatization contracts

 GENERAL PURPOSE :

This bill does not prevent privatization but requires a careful
analysis both at the local level and by the State Comptroller to
ensure that the promises being made by the private bus company are
realistic and will not negatively impact the locality, the taxpayer or
the transit rider.

 SUMMARY OF PROVISIONS OF BILL :

Section 1 of the bill sets for the legislative intent of the
legislation.

Section 2 of the bill amends the public authorities law by adding a
new section 2875-c that would require that the State Comptroller sign
off on any attempt to privatize public bus service by a locality.

Section 3 of the bill sets for an effective date 90 days after it
shall have been signed into law.

 JUSTIFICATION :

Several localities around the State are looking into various options
to save money. One option discussed is privatizing public services,
specifically public transportation.

Many times, private bus companies approach localities promising
miraculous outcomes, which include cost savings and increased service
quality. Most often the promises made are empty promises. The cost
savings, in most cases, never materialize. There have been many cases
where the costs to the locality actually increase even though a
private entity has taken over primary operation of the system.

In addition, the service quality for transit riders always takes a
significant hit. Usually, there are significant service and route cuts
once the private bus company takes over the primary servicing of the
transit system. Further, the routes that aren't cut tend to suffer
from reliability and service issues. Thousands of New Yorkers rely on
public transportation to get to and from work and medical services.
Commuters need a public transportation system that operates in a
reliable and timely manner in order to make a living and perform basic
everyday life activities.

This legislation strikes a good balance between the desire of the
localities to find new ways to save money and ensuring that public
transportation will remain reliable and cost effective.

 LEGISLATIVE HISTORY :

2015-16: S.1139/A.1210 (Solages)
2013-14: S.7574/A.9679 (Solages)

 FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS :

None

 EFFECTIVE DATE :
This Act shall take effect on the ninetieth day after it shall have
become a law.

2017-S1554 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1554
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 10, 2017
                                ___________
 
 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.
   §  2.  The  public  authorities law is amended by adding a new section
 2875-c to read as follows:
   § 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.
                                                            LBD00881-01-7

 S. 1554                             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. 1554                             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.
   §  3.  This  act shall take effect on the ninetieth day after it shall
 have become a law.

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Senate Bill S1554

Sponsored By

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

2017-S1554 (ACTIVE) - Details

2017-S1554 (ACTIVE) - Summary

2017-S1554 (ACTIVE) - Sponsor Memo

2017-S1554 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S1554

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Sponsored By

Tony Avella

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

2017-S1554 (ACTIVE) - Details

2017-S1554 (ACTIVE) - Summary

2017-S1554 (ACTIVE) - Sponsor Memo

2017-S1554 (ACTIVE) - Bill Text download pdf

Comments