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Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
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| May 22, 2020 |
enacting clause stricken |
| Jan 08, 2020 |
referred to corporations, authorities and commissions |
| Mar 19, 2019 |
referred to corporations, authorities and commissions |
Assembly Bill A6754
2019-2020 Legislative Session
Repeals chapters relating to Port Authority; Constitutes chapter 28 of the consolidated laws as the interstate authorities law
download bill text pdfSponsored By
PAULIN
Archive: Last Bill Status - Stricken
- 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
Actions
co-Sponsors
Rebecca Seawright
Anthony D'Urso
multi-Sponsors
Vivian Cook
Deborah Glick
2019-A6754 (ACTIVE) - Details
2019-A6754 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
6754
2019-2020 Regular Sessions
I N A S S E M B L Y
March 19, 2019
___________
Introduced by M. of A. PAULIN, SEAWRIGHT, D'URSO -- Multi-Sponsored by
-- M. of A. COOK, GLICK -- read once and referred to the Committee on
Corporations, Authorities and Commissions
AN ACT to repeal chapter 154 of the laws of 1921 relating to the port
authority of New York and New Jersey; to repeal chapter 43 of the laws
1922 relating to the development of the port of New York; to repeal
chapter 47 of the laws of 1931 relating to bridges and tunnels in New
York and New Jersey; to repeal chapter 700 of the laws of 1927 relat-
ing to the veto power of the governor; to repeal chapter 48 of the
laws of 1931 regulating the use of revenues received by the port of
New York authority from or in connection with the operation of termi-
nal and transportation facilities relating thereto; to repeal chapter
553 of the laws of 1931 relating to payment of a fair and reasonable
sum by the port authority; to repeal chapter 876 of the laws of 1935
relating to the payment of a fair and reasonable sum for a change in
grade; to repeal chapter 203 of the laws of 1938 relating to the sale
of real property acquired by the port authority; to repeal chapter 163
of the laws of 1945 relating to motor truck terminals; to repeal chap-
ter 352 of the laws of 1946 relating to monies for preliminary studies
upon the interstate vehicular bridges known as the Outerbridge cross-
ing, the Goethals bridge and the Bayonne bridge; to repeal chapter 443
of the laws of 1946 relating to the financing and effectuating of a
motor bus terminal by the port authority; to repeal chapter 631 of the
laws of 1947 relating to the development of marine terminals by the
port authority; to repeal chapter 802 of the laws of 1947 relating to
the financing of air terminals by the port authority; to repeal chap-
ter 819 of the laws of 1947 relating to the port authority's ability
to exercise the right of eminent domain; to repeal chapter 301 of the
laws of 1950 relating to suits against the port authority; to repeal
chapter 774 of the laws of 1950 relating to the rules and regulations
governing traffic on vehicular crossings operated by the port authori-
ty; to repeal chapter 206 of the laws of 1951 relating to traffic
regulations for air and marine terminals; to repeal chapter 207 of the
laws of 1951 relating to penalties for violation of rules and regu-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08750-01-9
A. 6754 2
lations; to repeal chapter 142 of the laws of 1953 relating to smoking
regulations for air and marine terminals; to repeal chapter 143 of the
laws of 1953 relating to suits on leases at International Airport; to
repeal chapter 808 of the laws of 1955, relating to the Narrows
bridge; to repeal chapter 444 of the laws of 1956 relating to New
Jersey turnpike connections; to repeal chapter 638 of the laws of
1959, relating to the purchase, financing and rental of commuter rail-
road cars by the port of New York authority and agreeing with the
state of New Jersey with respect thereto; to repeal chapter 209 of the
laws of 1962, relating to the financing and effectuation by the port
of New York authority of a port development project, consisting of the
Hudson tubes, the Hudson tubes extensions and a world trade center; to
repeal chapter 665 of the laws of 1964, relating to the operation
within the state of New York of the Hudson tubes and the Hudson tubes
extensions; to repeal chapter 474 of the laws of 1971, relating to the
authorization of the port of New York authority to provide access by
mass transportation facilities to air terminals; to repeal chapter 651
of the laws of 1978, relating to the further coordination, facili-
tation, promotion, preservation and protection of trade and commerce
in and through the port of New York district through the financing and
effectuation of industrial development projects therein by the port
authority of New York and New Jersey, and agreeing with the state of
New Jersey with respect thereto; to repeal chapter 12 of the laws of
1979, relating to the acquisition, development, financing and transfer
of buses and related facilities by the port authority of New York and
New Jersey and the utilization thereof; to repeal chapter 882 of the
laws of 1953 relating to waterfront employment and air freight indus-
try regulation; and relating to constituting chapter 28 of the consol-
idated laws, in relation to the interstate authorities law
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 154 of the laws of 1921, constituting the Port of
New York Authority, is REPEALED.
§ 2. Chapter 43 of the laws of 1922 relating to the development of the
port of New York is REPEALED.
§ 3. Chapter 47 of the laws of 1931 relating to bridges and tunnels in
New York and New Jersey is REPEALED.
§ 4. Chapter 700 of the laws of 1927 relating to the veto power of the
governor is REPEALED.
§ 5. Chapter 48 of the laws of 1931 regulating the use of revenues
received by the port of New York authority from or in connection with
the operation of terminal and transportation facilities is REPEALED.
§ 6. Chapter 553 of the laws of 1931 relating to the payment of a fair
and reasonable sum by the port authority is REPEALED.
§ 7. Chapter 876 of the laws of 1935 relating to the payment of a fair
and reasonable sum for a change in grade is REPEALED.
§ 8. Chapter 203 of the laws of 1938 relating to the sale of real
property acquired by the port authority is REPEALED.
§ 9. Chapter 163 of the laws of 1945 relating to motor truck terminals
is REPEALED.
§ 10. Chapter 352 of the laws of 1946 relating to monies for prelimi-
nary studies upon the interstate vehicular bridges known as the Outer-
bridge crossing, the Goethals bridge and the Bayonne bridge is REPEALED.
A. 6754 3
§ 11. Chapter 443 of the laws of 1946 relating to the financing and
effectuating of a motor bus terminal by the port authority is REPEALED.
§ 12. Chapter 631 of the laws of 1947 relating to the development of
marine terminals by the port authority is REPEALED.
§ 13. Chapter 802 of the laws of 1947 relating to the financing of air
terminals by the port authority is REPEALED.
§ 14. Chapter 819 of the laws of 1947 relating to the port authority's
ability to exercise the right of eminent domain is REPEALED.
§ 15. Chapter 301 of the laws of 1950 relating to suits against the
port authority is REPEALED.
§ 16. Chapter 774 of the laws of 1950 relating to the rules and regu-
lations governing traffic on vehicular crossings operated by the port
authority is REPEALED.
§ 17. Chapter 206 of the laws of 1951, relating to traffic regulations
for air and marine terminals, is REPEALED.
§ 18. Chapter 207 of the laws of 1951, relating to penalties for
violation of rules and regulations, is REPEALED.
§ 19. Chapter 142 of the laws of 1953, relating to smoking regulations
for air and marine terminals, is REPEALED.
§ 20. Chapter 143 of the laws of 1953, relating to suits on leases at
International Airport, is REPEALED.
§ 21. Chapter 808 of the laws of 1955, relating to the Narrows bridge,
is REPEALED.
§ 22. Chapter 444 of the laws of 1956, relating to New Jersey turnpike
connections, is REPEALED.
§ 23. Chapter 638 of the laws of 1959, relating to the purchase,
financing and rental of commuter railroad cars by the port of New York
authority and agreeing with the state of New Jersey with respect there-
to, is REPEALED.
§ 24. Chapter 209 of the laws of 1962, relating to the financing and
effectuation by the port of New York authority of a port development
project, consisting of the Hudson tubes, the Hudson tubes extensions and
a world trade center, is REPEALED.
§ 25. Chapter 665 of the laws of 1964, relating to the operation with-
in the state of New York of the Hudson tubes and the Hudson tubes exten-
sions, is REPEALED.
§ 26. Chapter 474 of the laws of 1971, relating to the authorization
of the port of New York authority to provide access by mass transporta-
tion facilities to air terminals, is REPEALED.
§ 27. Chapter 651 of the laws of 1978, relating to the further coordi-
nation, facilitation, promotion, preservation and protection of trade
and commerce in and through the port of New York district through the
financing and effectuation of industrial development projects therein by
the port authority of New York and New Jersey, and agreeing with the
state of New Jersey with respect thereto, is REPEALED.
§ 28. Chapter 12 of the laws of 1979, relating to the acquisition,
development, financing and transfer of buses and related facilities by
the port authority of New York and New Jersey and the utilization there-
of, is REPEALED.
§ 29. Chapter 882 of the laws of 1953 relating to waterfront employ-
ment and air freight industry regulation is REPEALED.
§ 30. Chapter 28 of the consolidated laws is added to read as follows:
CHAPTER 28 OF THE CONSOLIDATED LAWS
INTERSTATE AUTHORITIES LAW
A. 6754 4
Article
1. Port Authority of New York and New Jersey
2. The Waterfront and Airport Commission of New York and New Jersey
Compact
Article 1 - PORT AUTHORITY OF NEW YORK AND NEW JERSEY
TABLE OF CONTENTS
Part I. General Provisions (§§101-124)
Part II. Development of the Port of New York (§§201-206)
Part III. Bridges and tunnels in New York and New Jersey (§§301-309)
Part IV. Approval or veto power of the Governor (§§401-404)
Part V. Motor truck terminals (§§501-502)
Part VI. Payment and acceptance of a fair and reasonable sum
(§§601-602)
Part VII. Payment and acceptance of a fair and reasonable sum for a
change in grade (§701)
Part VIII. The sale of real property acquired by the Port Authority
(§§801-802)
Part IX. Moneys for preliminary studies (§§901-907)
Part X. Motor bus terminal (§§1001-1005)
Part XI. Marine terminals (§§1101-1108)
Part XII. Air terminals (§§1201-1216)
Part XIII. Eminent domain (§§1301)
Part XIV. Suits against the Port Authority (§§1401-1411)
Part XV. Traffic regulations for vehicular crossings (§§1501-1519)
Part XVI. Rules and regulations governing traffic on highways in Port
Authority air and marine terminals (§§1601-1613)
Part XVII. New York - New Jersey agreement (§§1701-1702)
Part XVIII. Smoking regulation for terminals (§§1801-1802)
Part XIX. Suits on lease at International Airport (§§1901-1905)
Part XX. Narrows bridge (§§2001-2014)
Part XXI. New Jersey turnpike connections (§§2101-2103)
Part XXII. Commuter railroad cars (§2201)
Part XXIII. World trade center (§2301)
Part XXIV. Suits against the Port Authority (§§2401-2402)
Part XXV. Rules and regulations governing operation of Hudson tubes
(§2501)
Part XXVI. Mass transportation facilities to air terminals (§§2601)
Part XXVII. Industrial development projects and facilities
(§§2701-2703)
Part XXVIII. Bus transportation (§§2801-2803)
Part XXIX. General reserve fund (§§2901-2903)
Article 2 - THE WATERFRONT AND AIRPORT COMMISSION OF NEW YORK
AND NEW JERSEY COMPACT
TABLE OF CONTENTS
Part I. The waterfront and airport commission of New York and New
Jersey compact (§§3001-3017)
Part II. Waterfront commission compact (§§3101-3123)
Part III. Commission established for New York state (§§3201-3204)
Part IV. Compact (§§3301-3311)
Part V. Officers and employees; civil penalties and enforcement
(§§3401-3410)
A. 6754 5
ARTICLE I
PORT AUTHORITY OF NEW YORK AND NEW JERSEY
PART I
GENERAL PROVISIONS
Section 101. Short title.
102. Legislative intent.
103. Definitions.
104. Port authority of New York and New Jersey.
105. Port of New York district.
106. Commissioners and officers.
107. Power of the port authority.
108. Open meetings.
109. Copy of minutes.
110. Needs assessment.
111. Subsidiaries of the port authority.
112. Annual reporting.
113. Property disposition, debt issuance, capital plan and oper-
ating budget.
114. State of emergency; domestic companion animal.
115. Public meetings.
116. Minutes of public meetings.
117. Jurisdiction.
118. Powers of municipalities to develop or improve.
119. Comprehensive development.
120. Recommendations.
121. Expense of operations.
122. Port authority as an agency.
123. Notice of claim.
124. Regulations.
§ 101. Short title. This chapter shall be known and may be cited as
the "port authority of New York and New Jersey act".
§ 102. Legislative intent. William R. Willcox, Eugenius H. Outer-
bridge and Murray Hulbert, or any two of them, commissioners heretofore
appointed under chapter four hundred and twenty-six of the laws of nine-
teen hundred and seventeen of the state of New York, together with the
attorney-general of the state of New York, are hereby authorized as
commissioners upon the part of the state of New York to enter into, with
the state of New Jersey, by and through the commissioners appointed or
who may be appointed under or by virtue of a law of the legislature of
the state of New Jersey, an agreement or compact in the form following,
that is to say:
Whereas, In the year eighteen hundred and thirty-four the states of
New York and New Jersey did enter into an agreement fixing and determin-
ing the rights and obligations of the two states in and about the waters
between the two states, especially in and about the bay of New York and
the Hudson river; and
Whereas, Since that time the commerce of the port of New York has
greatly developed and increased and the territory in and around the port
has become commercially one center or district; and
Whereas, It is confidently believed that a better co-ordination of the
terminal, transportation and other facilities of commerce in, about and
through the port of New York, will result in great economies, benefiting
the nation, as well as the states of New York and New Jersey; and
Whereas, The future development of such terminal, transportation and
other facilities of commerce will require the expenditure of large sums
A. 6754 6
of money and the cordial co-operation of the states of New York and New
Jersey in the encouragement of the investment of capital, and in the
formulation and execution of the necessary physical plans; and
Whereas, Such result can best be accomplished through the co-operation
of the two states by and through a joint or common agency.
Now, therefore, the said states of New Jersey and New York do supple-
ment and amend the existing agreement of eighteen hundred and thirty-
four in the following respects.
They agree to and pledge, each to the other, faithful co-operation in
the future planning and development of the port of New York, holding in
high trust for the benefit of the nation the special blessings and
natural advantages thereof.
§ 103. Definitions. The following terms shall have the following
meanings unless otherwise provided:
1. "Board" means the board of commissioners of the port authority of
New York and New Jersey.
2. "Committee" or "committees" means any standing committee estab-
lished by the board tasked with, including, but not limited to, the
audit responsibility, governance responsibility and finance responsibil-
ity required to be established pursuant to this chapter.
3. "Consent, approval or recommendation of municipality" means wherev-
er the consent, approval or recommendation of a "municipality" is
required, the word "municipality" shall be taken to include any city or
incorporated village within the port district, and in addition in the
state of New Jersey any borough, town, township or any municipality
governed by an improvement commission within the district. Such consent,
approval or recommendation whenever required in the case of the city of
New York shall be deemed to have been given or made whenever the board
of estimate and apportionment of said city or any body hereafter
succeeding to its duties shall by a majority vote pass a resolution
expressing such consent, approval or recommendation; and in the case of
any municipality now or hereafter governed by a commission, whenever the
commission thereof shall by majority vote pass such a resolution; and in
all other cases whenever the body authorized to grant consent to the use
of the streets or highways of such municipality shall by a majority vote
pass such a resolution.
4. "Facility" shall include all works, buildings, structures, appli-
ances and appurtenances necessary and convenient for the proper
construction, equipment, maintenance and operation of such facility or
facilities or any one or more of them.
5. "To lease" shall include to rent or to hire.
6. "Meeting" means any gathering, whether corporeal or by means of
communication equipment, which is attended by, or open to, the board,
held with the intent, on the part of the board members present, to
discuss or act as a unit upon the specific public business of the
authority. "Meeting" does not mean a gathering (a) attended by less than
an effective majority of the board, or (b) attended by or open to all
the members of three or more similar public bodies at a convention or
similar gathering.
7. "News media" means persons representing major wire services, tele-
vision news services, radio news services and newspapers, whether
located in the state of New York or New Jersey or any other state.
8. "Personal property" shall include choses in action and all other
property now commonly or legally defined as personal property or which
may hereafter be so defined.
A. 6754 7
9. "Public business" means matters which relate in any way, directly
or indirectly, to the performance of the functions of the port authority
of New York and New Jersey or the conduct of its business.
10. "Railroads" shall include railways, extensions thereof, tunnels,
subways, bridges, elevated structures, tracks, poles, wires, conduits,
power houses, substations, lines for the transmission of power, car-
barns, shops, yards, sidings, turn-outs, switches, stations and
approaches thereto, cars and motive equipment.
11. "Real property" shall include land under water, as well as
uplands, and all property either now commonly or legally defined as real
property or which may hereafter be so defined.
12. "Rule or regulation", until and unless otherwise determined by the
legislatures of both states, shall mean any rule or regulation not
inconsistent with the constitution of the United States or of either
state, and, subject to the exercise of the power of congress, for the
improvement of the conduct of navigation and commerce within the
district, and shall include charges, rates, rentals or tolls fixed or
established by the port authority; and until otherwise determined as
aforesaid, shall not include matters relating to harbor or river
pollution. Wherever action by the legislature of either state is herein
referred to, it shall mean an act of the legislature duly adopted in
accordance with the provisions of this chapter.
13. "Transportation facility" shall include railroads, steam or elec-
tric, motor truck or other street or highway vehicles, tunnels, bridges,
boats, ferries, car-floats, lighters, tugs, floating elevators, barges,
scows or harbor craft of any kind, air craft suitable for harbor
service, and every kind of transportation facility now in use or here-
after designed for use for the transportation or carriage of persons or
property.
14. "Terminal facility" shall include wharves, piers, slips, ferries,
docks, dry docks, bulkheads, dock-walls, basins, car-floats, float-
bridges, grain or other storage elevators, warehouses, cold storage,
tracks, yards, sheds, switches, connections, overhead appliances, and
every kind of terminal or storage facility now in use or hereafter
designed for use for the handling, storage, loading or unloading of
freight at steamship, railroad or freight terminals.
§ 104. Port authority of New York and New Jersey. There is hereby
continued "the port authority of New York and New Jersey" ("port author-
ity"), which shall be a body corporate and politic, having the powers
and jurisdiction hereinafter enumerated, and such other and additional
powers as shall be conferred upon it by the legislature of either state
concurred in by the legislature of the other, or by act or acts of
congress, as hereinafter provided.
§ 105. Port of New York district. To that end the two states do agree
that there shall be created and they do hereby create a district to be
known as the "port of New York district" (hereinafter referred to as
"the district") which shall embrace the territory bounded and described
as follows:
The district is included within the boundary lines located by connect-
ing points of known latitude and longitude. The approximate courses and
distances of the lines enclosing the district are recited in the
description, but the district is determined by drawing lines through the
points of known latitude and longitude. Beginning at a point A of lati-
tude forty-one degrees and four minutes north and longitude seventy-
three degrees and fifty-six minutes west, said point being about sixty-
five-hundredths of a mile west of the westerly bank of the Hudson river
A. 6754 8
and about two and one-tenth miles northwest of the pier at Piermont, in
the county of Rockland, state of New York; thence due south one and
fifteen-hundredths miles more or less to a point B of latitude forty-one
degrees and three minutes north and longitude seventy-three degrees and
fifty-six minutes west; said point being about one and three-tenths
miles northwest of the pier at Piermont, in the county of Rockland,
state of New York; thence south fifty-six degrees and thirty-four
minutes west six and twenty-six-hundredths miles more or less to a point
C of latitude forty-one degrees and no minutes north and longitude
seventy-four degrees and two minutes west, said point being about
seven-tenths of a mile north of the railroad station at Westwood, in the
county of Bergen, state of New Jersey; thence south sixty-eight degrees
and twenty-four minutes west nine and thirty-seven-hundredths miles more
or less to a point D of latitude forty degrees and fifty-seven minutes
north and longitude seventy-four degrees and twelve minutes west, said
point being about three miles northwest of the business center of the
city of Paterson, in the county of Passaic, state of New Jersey; thence
south forty-seven degrees and seventeen minutes west eleven and eighty-
seven-hundredths miles more or less to a point E of latitude forty
degrees and fifty minutes north and longitude seventy-four degrees and
twenty-two minutes west, said point being about four and five-tenths
miles west of the borough of Caldwell, in the county of Morris, state of
New Jersey; thence due south nine and twenty-hundredths miles more or
less to a point F of latitude forty degrees and forty-two minutes north
and longitude seventy-four degrees and twenty-two minutes west, said
point being about one and two-tenths miles southwest of the passenger
station of the Delaware, Lackawanna and Western railroad in the city of
Summit, in the county of Union, state of New Jersey; thence south
forty-two degrees and twenty-four minutes west, seven and seventy-eight-
hundredths miles more or less to a point G of latitude forty degrees and
thirty-seven minutes north and longitude seventy-four degrees and twen-
ty-eight minutes west, said point being about two and two-tenths miles
west of the business center of the city of Plainfield, in the county of
Somerset, state of New Jersey; thence due south twelve and sixty-five-
hundredths miles more or less on a line passing about one mile west of
the business center of the city of New Brunswick to a point H of lati-
tude forty degrees and twenty-six minutes north and longitude seventy-
four degrees and twenty-eight minutes west, said point being about four
and five-tenths miles southwest of the city of New Brunswick, in the
county of Middlesex, state of New Jersey; thence south seventy-seven
degrees and forty-two minutes east ten and seventy-nine-hundredths miles
more or less to a point I of latitude forty degrees and twenty-four
minutes north and longitude seventy-four degrees and sixteen minutes
west, said point being about two miles southwest of the borough of Mata-
wan, in the county of Middlesex, state of New Jersey; thence due east
twenty-five and forty-eight-hundredths miles more or less, crossing the
county of Monmouth, state of New Jersey, and passing about one and four-
tenths miles south of the pier of the Central Railroad of New Jersey at
Atlantic Highlands to a point J of latitude forty degrees and twenty-
four minutes north and longitude seventy-three degrees and forty-seven
minutes west, said point being in the Atlantic ocean; thence north elev-
en degrees fifty-eight minutes east twenty-one and sixteen-hundredths
miles more or less to a point K, said point being about five miles east
of the passenger station of the Long Island railroad at Jamaica and
about one and three-tenths miles east of the boundary line of the city
of New York, in the county of Nassau, state of New York; thence in a
A. 6754 9
northeasterly direction passing about one-half mile west of New Hyde
Park and about one and one-tenth miles east of the shore of Manhasset
bay at Port Washington, crossing Long Island sound to a point L, said
point being the point of intersection of the boundary line between the
states of New York and Connecticut and the meridian of seventy-three
degrees, thirty-nine minutes and thirty seconds west longitude, said
point being also about a mile northeast of the village of Port Chester;
thence northwesterly along the boundary line between the states of New
York and Connecticut to a point M, said point being the point of inter-
section between said boundary line between the states of New York and
Connecticut and the parallel of forty-one degrees and four minutes north
latitude, said point also being about four and five-tenths miles north-
east of the business center of the city of White Plains; thence due west
along said parallel, of forty-one degrees and four minutes north lati-
tude, the line passing about two and one-half miles north of the busi-
ness center of the city of White Plains and crossing the Hudson river to
the point A, the place of beginning.
The boundaries of said district may be changed from time to time by
the action of the legislature of either state concurred in by the legis-
lature of the other.
§ 106. Commissioners and officers. 1. The port authority shall
consist of twelve commissioners, six resident voters from the state of
New York, at least four of whom shall be resident voters of the city of
New York, and six resident voters from the state of New Jersey, at least
four of whom shall be resident voters within the New Jersey portion of
the district, the New York members to be chosen by the state of New York
and the New Jersey members by the state of New Jersey in the manner and
for the terms fixed and determined from time to time by the legislature
of each state respectively, except as provided in this part. Each
commissioner may be removed or suspended from office as provided by the
law of the state from which he or she shall be appointed.
2. a. The officers of the port authority shall be a chairperson, a
vice chairperson, a chief executive officer, a general counsel, a chief
financial officer, a chief ethics and compliance officer, an inspector
general, a treasurer, a comptroller, and a secretary. Beginning upon the
next hiring of a chief executive officer but no later than a year from
the effective date of this article, the positions of chairperson and
vice chairperson shall be rotated for a term of two years among commis-
sioners appointed by New York and New Jersey, with a chairperson elected
first from among those commissioners appointed by the governor of New
York and a vice chairperson elected first from among those commissioners
appointed by the governor of New Jersey, after which the next chair-
person shall be elected from among those appointed by the governor of
New Jersey and the next vice chairperson shall be elected from among
those appointed by the governor of New York and thereafter the positions
of chairperson and vice chairperson shall rotate every two years in the
same order as established herein provided that the failure of the board
of commissioners to elect a new chairperson and vice chairperson shall
not prevent the rotation of the positions of chairperson and vice chair-
person to the next succeeding state.
b. No commissioner, including the chairperson, shall serve as the port
authority's chief executive officer, general counsel, chief financial
officer, chief ethics and compliance officer, inspector general, or
comptroller, or hold any other equivalent position while serving as a
commissioner.
A. 6754 10
3. a. The commissioners shall promulgate a commissioner's oath of
office in consultation with the chief ethics and compliance officer.
b. At the time that a commissioner of the port authority takes and
subscribes the commissioner's oath of office, or within sixty days after
the effective date of this subdivision if the commissioner has already
taken and subscribed the commissioner's oath of office, the commissioner
shall execute a statement declaring that the commissioner understands
the commissioner's independence and fiduciary obligation to perform
duties and responsibilities to the best of the commissioner's abilities,
in good faith and with proper diligence and care which an ordinarily
prudent person in like position would use under similar circumstances
and may take into consideration the views and policies of any elected
officials or bodies and ultimately apply independent judgment in the
best interest of the port authority, its mission, and the public,
consistent with the enabling compact, mission, and by-laws of the port
authority and the applicable laws of both states; and that the fiduciary
duty to the port authority is derived from and governed by its mission.
c. Individuals appointed to the board of commissioners shall partic-
ipate in training approved by the chief ethics and compliance officer in
consultation with the inspector general of the port authority regarding
their legal, fiduciary, financial and ethical responsibilities as direc-
tors of an authority within six months of appointment to the authority.
The commissioners shall participate in continuing training as may be
required to remain informed of best practices, regulatory and statutory
changes relating to the effective oversight of the management and finan-
cial activities of public authorities and to adhere to the highest stan-
dards of responsible governance.
d. (1) A commissioner shall not vote on or participate in any board or
committee discussions or decisions with respect to an item if the
commissioner, a member of the commissioner's immediate family, or a
business in which the commissioner has an interest has a direct or indi-
rect financial involvement that may reasonably be expected to impair the
commissioner's objectivity or independent judgment or that may reason-
ably create the appearance of impropriety. A commissioner shall report
such a need for recusal to the general counsel when it arises. The
public shall be informed of any recusals prior to any board action and
the minutes shall clearly reflect that recusal.
(2) For the purposes of this subdivision, the terms:
(i) "immediate family" shall mean: a spouse, parent, child, or
sibling; and
(ii) "interest" shall mean: (A) if the business organization is a
partnership, the board member or the board member's immediate family is
a partner or owner of ten percent or more of the assets of the partner-
ship, or (B) if the business organization is a corporation, the board
member or the board member's immediate family owns or controls ten
percent or more of the stock of the corporation, or serves as a director
or officer of the corporation.
e. (1) Notwithstanding any other provision of law to the contrary, the
commissioners, officers, and employees of the port authority shall file
annual financial disclosure statements as provided in this section.
(2)(i) The commissioners appointed by the governor of the state of New
York shall file annual financial disclosure statements pursuant to
section 73-a of the public officers law.
(ii) The commissioners appointed by the governor of the state of New
Jersey shall file annual financial disclosure statements as required by
New Jersey state law or executive order.
A. 6754 11
(iii) In addition to the financial disclosures required of the commis-
sioners, financial disclosures of employees shall, at a minimum, be
required of the chief executive officer, the chief ethics and compliance
officer, the chief financial officer, the general counsel, the comp-
troller, treasurer, and the inspector general, employees who hold poli-
cy-making positions as determined by the general counsel of the port
authority, and employees whose base salary, either in the current or
previous year, exceeds $150,000, which amount shall be adjusted for
inflation annually in accordance with the consumer price index for all
urban wage earners and clerical workers (CPI-W) as calculated by the
federal government. These financial disclosures shall be updated not
less than annually and shall be made available on the port authority's
website.
f. The board of commissioners shall:
(1) adopt a mission statement that the port authority's mission is to
meet the critical transportation infrastructure needs of the bi-state
region's people, businesses, and visitors by providing the highest qual-
ity and most efficient transportation and port commerce facilities and
services to move people and goods within the region, provide access to
the nation and the world, and promote the region's economic development;
(2) adopt a code of conduct applicable to commissioners, employees,
and vendors and other contractors with the port authority based upon the
recommendations of the chief ethics and compliance officer that shall,
at minimum, include the applicable standards established by law in each
state;
(3) establish a whistleblower access and assistance program protecting
employees from retaliation for disclosing information concerning acts of
wrongdoing, misconduct, malfeasance, or other inappropriate conduct
based upon the recommendations of the chief ethics and compliance offi-
cer;
(4) establish a policy requiring all commissioners, officers, and
employees with decision-making authority to maintain records regarding
contact with lobbyists. As used in this subsection: (i) "contact" means
any conversation, in person or by telephonic or other electronic means,
or correspondence between any lobbyist engaged in the act of lobbying
and any person within the port authority who can make or influence a
decision on the subject of the lobbying on the behalf of the port
authority, and shall include, at a minimum, all members of the board of
commissioners and all officers of the port authority, (ii) "lobbyist"
shall have the same meaning as defined in the laws or, rules or regu-
lations of either state, and (iii) "lobbying" shall mean and include any
attempt to influence: (a) the adoption or rejection of any rule or regu-
lation having the force and effect of law by the port authority, (b) the
outcome of any proceeding by the port authority to establish, levy or
collect fees, tolls, charges or fares, and (c) the authorization,
approval or award of any agreements, contracts or purchase orders,
including any settlement of port authority claims, or any extension,
amendment or modification of any existing agreement, contract or order;
and
(5) have an efficiency study of the port authority and its operations
conducted by an independent entity within three years of the effective
date of this section and thereafter upon the request of the governors of
New York and New Jersey, and if no request is made, no later than three
years after the most recent efficiency study was conducted.
A. 6754 12
4. a. The board of commissioners shall establish a committee structure
that shall include, but need not be limited to, the following responsi-
bilities:
(1) a governance responsibility to be assigned to a committee
comprised of not fewer than three commissioners, who shall constitute a
majority on the committee, and who shall possess the necessary skills to
undertake the governance duties and functions. It shall be the responsi-
bility of the members of this committee to: keep the board informed of
current best governance practices; review corporate governance trends;
update the port authority's corporate governance principles; examine
ethical and conflict of interest issues; perform board self-evaluations;
investigate term limits, reappointments, and board responsibilities;
develop by-laws which include rules and procedures for the conduct of
board business; and advise the port authority on the skills and experi-
ences required of potential commissioners;
(2) an audit responsibility to be assigned to a committee comprised of
not fewer than three commissioners, who shall constitute a majority on
the committee, and who shall possess the necessary skills to undertake
the audit duties and functions. It shall be the responsibility of the
members of this committee to: recommend to the board the hiring of an
independent firm of certified public accountants to audit the financial
statements of the port authority; establish the compensation to be paid
to the accounting firm; and provide direct oversight of the annual inde-
pendent financial audit performed by the accounting firm hired for
auditing purposes. Members of this committee shall be familiar with
corporate financial and accounting practices and shall be financially
literate about applicable financial laws, rules, regulations, and stand-
ard industry practices; and
(3) a finance responsibility to be assigned to a committee comprised
of not fewer than three commissioners, who shall constitute a majority
on the committee, and who shall possess the necessary skills to under-
take the finance duties and functions. It shall be the responsibility of
the members of this committee to oversee and approve the issuance of
debt that the port authority or its subsidiaries issue.
b. Every committee established by the board of commissioners shall
promulgate a written charter to be approved by the board. Each charter
promulgated in accordance with this subdivision shall be made available
to the public and posted on the port authority's website.
5. a. The chief ethics and compliance officer shall recommend to the
board of commissioners a whistleblower access and assistance program to
be administered by the inspector general which shall include, but not be
limited to:
(1) establishing toll-free telephone and facsimile lines available to
employees;
(2) offering advice regarding employee rights under applicable state
and federal laws and advice and options available to all persons; and
(3) offering an opportunity for employees to identify concerns regard-
ing any issue at the port authority. Any communication between an
employee and the inspector general pursuant to this section shall be
held strictly confidential by the inspector general, unless the employee
specifically waives in writing the right to confidentiality, except that
such confidentiality shall not exempt the inspector general from
disclosing such information, where appropriate, to the board of commis-
sioners and/or any law enforcement authority.
b. The port authority shall not fire, discharge, demote, suspend,
threaten, harass, or discriminate against an employee because of the
A. 6754 13
employee's role as a whistleblower, insofar as the actions taken by the
employee are legal.
c. As used in this subdivision:
(1) "Employees" means those persons employed at the port authority,
including but not limited to: full-time and part-time employees, those
employees on probation, and temporary employees.
(2) "Whistleblower" means any employee of the port authority who
discloses information concerning acts of wrongdoing, misconduct, malfea-
sance, or other inappropriate behavior by an employee or board member of
the port authority, concerning the port authority's investments, travel,
acquisition of real or personal property, the disposition of real or
personal property, or the procurement of goods and services.
6. a. The inspector general shall be responsible for receiving and
investigating, where appropriate, all complaints regarding fraud, waste,
and abuse by commissioners, officers, and employees of the port authori-
ty or third-parties doing business with the port authority. The inspec-
tor general shall also be responsible for conducting investigations upon
the inspector general's own initiative, as the inspector general shall
deem appropriate.
b. The inspector general shall inform the board of commissioners and
the chief executive officer of allegations received by the inspector
general and the progress of investigations related thereto, unless
special circumstances require confidentiality;
c. The inspector general shall determine with respect to allegations
received by the inspector general whether disciplinary action or civil
prosecution by the port authority is appropriate, and whether the matter
should be referred to an appropriate governmental agency for further
action;
d. The inspector general shall prepare and make available to the
public written reports of completed investigations, as appropriate and
to the extent permitted by law, subject to redactions to protect a need
for confidentiality. The release of all or portions of reports may be
deferred to protect the confidentiality of ongoing investigations.
e. The inspector general shall have the power to:
(1) administer oaths or affirmations and examine witnesses under oath;
(2) require the production of any books and papers deemed relevant or
material to any investigation, examination or review;
(3) notwithstanding any law to the contrary, examine and copy or
remove documents or records of any kind prepared, maintained or held by
the port authority and its subsidiaries;
(4) interview any officer or employee of the port authority or its
subsidiaries on any matter related to the performance of such officer or
employee's official duties. To the extent that any portion of this para-
graph is inconsistent with any current contractual obligations of the
port authority, this paragraph shall not be applicable to those obli-
gations until the earliest expiration of those terms under the contract;
(5) monitor the implementation by the port authority of any recommen-
dations made by the inspector general; and
(6) perform any other functions that are necessary or appropriate to
fulfill the duties and responsibilities of office.
7. The commissioners shall, for the purpose of doing business, consti-
tute a board and may adopt suitable by-laws for its management.
8. The port authority shall elect a chair, vice-chair, and may appoint
such officers and employees as it may require for the performance of its
duties, and shall fix and determine their qualifications and duties.
A. 6754 14
§ 107. Power of the port authority. 1. The port authority shall
constitute a body, both corporate and politic, with full power and
authority to purchase, construct, lease and/or operate any terminal or
transportation facility within said district; and to make charges for
the use thereof: and for any of such purposes to own, hold, lease and/or
operate real or personal property, to borrow money and secure the same
by bonds or by mortgages upon any property held or to be held by it. No
property now or hereafter vested in or held by either state, or by any
county, city, borough, village, township or other municipality, shall be
taken by the port authority, without the authority or consent of such
state, county, city, borough, village, township or other municipality,
nor shall anything herein impair or invalidate in any way any bonded
indebtedness of such state, county, city, borough, village, township or
other municipality, nor impair the provisions of law regulating the
payment into sinking funds of revenues derived from municipal property,
or dedicating the revenues derived from any municipal property to a
specific purpose.
2. The powers granted in this part shall not be exercised by the port
authority until the legislatures of both states shall have approved of a
comprehensive plan for the development of the port as hereinafter
provided.
3. The port authority shall have such additional powers and duties as
may hereafter be delegated to or imposed upon it from time to time by
the action of the legislature of either state concurred in by the legis-
lature of the other. Unless and until otherwise provided, it shall make
an annual report to the legislature of both states, setting forth in
detail the operations and transactions conducted by it pursuant to this
agreement and any legislation thereunder. The port authority shall not
pledge the credit of either state except by and with the authority of
the legislature thereof.
§ 108. Open meetings. 1. All meetings of the port authority shall be
open to the public and members of the news media, individually and
collectively, for the purpose of observing the full details of all phas-
es of the deliberation, policy-making, and decision-making of the board,
except for an executive session initiated upon a majority vote taken in
an open meeting pursuant to a motion. The board of commissioners may
exclude the public only from that portion of a meeting at which the
board of commissioners discusses any:
a. matter in which the release of information would impair a right to
receive funds from government of the United States;
b. material the disclosure of which would constitute an unwarranted
invasion of individual or personal privacy;
c. collective bargaining agreement, or the terms and conditions which
are proposed for inclusion in any collective bargaining agreement,
including the negotiation of the terms and conditions thereof with
employees or representatives of employees of the port authority;
d. matter involving the purchase, lease, or acquisition of real prop-
erty with port authority funds, the proposed acquisition of securities,
the sale or exchange of securities held by the port authority, or the
investment of port authority funds, if public discussion of the matter
would adversely affect the public interest;
e. matter which would imperil the public safety if disclosed;
f. pending or anticipated litigation or contract negotiation in which
the port authority is, or may become, a party, or matters falling within
the attorney-client privilege, to the extent that confidentiality is
A. 6754 15
required for the attorney to exercise the attorney's ethical duties as a
lawyer;
g. contract negotiations disclosure of which would imperil the port
authority's position or an outcome in the best interest of the authori-
ty, its mission, and the public;
h. matter involving the employment, appointment, termination of
employment, terms and conditions of employment, evaluation of the
performance of, promotion or disciplining of any specific prospective
officer or employee or current officer or employee employed or appointed
by the port authority, unless all the individual employees or appointees
whose rights could be adversely affected request in writing that the
matter or matters be discussed at a public meeting; or
i. deliberation of the port authority occurring after a public hearing
that may result in the imposition of a specific civil penalty upon the
responding party or the suspension or loss of a license or permit
belonging to the responding party as a result of an act of omission for
which the responding party bears responsibility.
2. The port authority shall make meeting agendas available to the
public at least 72 hours before each meeting of the board and each meet-
ing of each committee. In addition, the port authority shall send via
electronic mail the agenda and public documents pertaining to a board or
committee meeting to the public information office of each state's
legislature at least 72 hours before the meeting. Public notice of the
time and place of a meeting shall be provided to appropriate media
outlets, shall be conspicuously posted in one or more designated areas,
and shall be conspicuously posted via the port authority's official
website at least five business days before the meeting.
3. The port authority shall make available to the public documents in
the following manner: the agenda and public documents pertaining to a
board or committee meeting shall be available for public inspection at
an office of the port authority; and the agenda and public documents
pertaining to a board or committee meeting shall be posted on the port
authority's website.
4. At each public meeting of the board and at each public meeting of
each committee, the public shall be allotted at least 30 minutes to
speak on any topic on the agenda. The board or committee shall expand
the comment time when necessary to provide a reasonable opportunity for
the public to comment. The public speaking period shall take place prior
to any board or committee action.
5. The port authority shall keep reasonably comprehensible minutes of
all its meetings showing the time and place, the members present, the
subjects considered, the actions taken, and the vote of each member. The
minutes shall be available to the public within two weeks from the date
of the meeting to the extent that public disclosure shall not be incon-
sistent with subdivision one of this section. The minutes shall indicate
for each item on the agenda the vote or recusal of each board member in
attendance at an open meeting, or an executive session of the board or a
committee of the board. Each item on the agenda shall be voted on sepa-
rately.
6. The port authority shall make or cause to be made all reasonable
efforts to ensure that meetings are held in facilities that permit
barrier-free physical access to people with disabilities. If the board
determines to use video conferencing or similar technology to conduct
its meeting, it shall provide an opportunity for the public to attend,
listen and observe such a meeting.
A. 6754 16
§ 109. Copy of minutes. 1. The port authority shall file with the
temporary president and minority leader of the senate and the speaker
and minority leader of the assembly, the chairman of the assembly ways
and means committee and the chairman of the senate finance committee of
the state of New York and the president, minority leader and secretary
of the senate and the speaker, minority leader and clerk of the general
assembly of the state of New Jersey a copy of the minutes of any action
taken at any public meeting of the port authority. Such filing shall be
made on the same day such minutes are transmitted to the governor of
each state for review; and notice of such filing shall be provided to
the governor of each state at the same time. Failure to effectuate any
such filing shall not impair the ability of the authority to act pursu-
ant to a resolution of its board. Such filing shall not apply to any
minutes required to be filed pursuant to section twenty of former chap-
ter six hundred fifty-one of the laws of nineteen hundred seventy-eight.
2. The temporary president and minority leader of the senate, the
speaker and minority leader of the assembly, the chairman of the assem-
bly ways and means committee and the chairman of the senate finance
committee of the state of New York and the speaker and minority leader
of the general assembly and the president and the minority leader of the
senate of the state of New Jersey, or representatives designated by them
in writing for this purpose, may by certificate filed with the secretary
of the port authority waive the foregoing filing requirement with
respect to any specific minutes.
§ 110. Needs assessment. 1. The port authority shall require that a
needs assessment be conducted by an independent entity prior to any
increase in tolls for the use of any port authority bridge or tunnel, or
fares for the use of the port authority trans-Hudson corporation rail
system. The assessment shall be presented by the independent entity to
the board of commissioners at a public meeting to be held at least nine-
ty days prior to any meeting of the board of commissioners to vote to
any increase in the tolls for the use of any port authority bridge or
tunnel, or fares for the use of the port authority trans-Hudson corpo-
ration rail system.
2. Not less than 30 days and not more than 90 days prior to any vote
or action taken by the board of commissioners relating to any increase
in the tolls for the use of any port authority bridge or tunnel, or
fares for the use of the port authority trans-Hudson corporation rail
system, the port authority shall conduct at least six public hearings in
the manner prescribed as follows:
a. Locations for public hearings shall be selected in such a way as to
be geographically accessible to a majority of users of the facility or
facilities to be impacted by the toll or fare increase, as determined by
port authority data, provided that at least one hearing shall be held in
each state.
b. At least 72 hours before the first hearing held pursuant to this
section, the port authority shall make the following information avail-
able to the public, including posting on the port authority's official
website:
(1) a written explanation of why the increase in tolls or fares is
necessary;
(2) the amount of revenue expected to be generated from the increase
in tolls or fares; and
(3) a detailed explanation of how the revenues raised from the
increase in tolls or fares is expected to be spent.
A. 6754 17
c. Each hearing shall be attended by at least two commissioners from
New York and two commissioners from New Jersey in office at the time of
the hearing.
d. The port authority shall hold no more than one public hearing in a
single day, and at least one-half of the public hearings shall be sched-
uled to begin after 6:30 p.m., eastern standard time, on a weekday.
e. The port authority shall ensure that each of the requirements set
forth in this subdivision shall be complied with before placing on the
meeting agenda of the board of commissioners any item or matter relating
to an increase in tolls or fares.
§ 111. Subsidiaries of the port authority. 1. The port authority shall
provide notice to the governor of each state, the majority leader of
each house of the legislature of each state, the chair of the finance
committee of New York, the chair of the senate budget and appropriations
committee of New Jersey, the chair of assembly ways and means committee
of New York, and the chair of the budget committee of New Jersey that it
will be creating a subsidiary no less than 60 days prior to the forma-
tion of the subsidiary.
2. The creation of a subsidiary corporation shall be approved by the
board of commissioners.
3. On or before the first day of January, two thousand sixteen, and
annually thereafter, any subsidiary corporation, in cooperation with the
port authority, shall provide to the governor and legislature of each
state a report on the subsidiary corporation. Such report shall include
for each subsidiary:
a. The complete legal name, address and contact information of the
subsidiary;
b. The structure of the organization of the subsidiary, including the
names and titles of each of its members, directors and officers, as well
as a chart of its organizational structure;
c. The complete by-laws and legal organization papers of the subsid-
iary;
d. A complete report of the purpose, operations, mission and projects
of the subsidiary; and
e. Any other information the subsidiary corporation deems important to
include in such report.
§ 112. Annual reporting. 1. The port authority shall publish a
comprehensive annual financial report, submitted annually to the gover-
nors and state legislatures of New York and New Jersey and made avail-
able on the port authority's website within 120 days after the end of
its fiscal year. The annual report shall include the agency's financial
statements, statistical and other regional data, and a narrative of the
agency's activities during the year of the report. The annual report
shall include:
a. an introductory section including: (1) a letter of transmittal to
the governors of New York and New Jersey; (2) information regarding the
board of commissioners, port authority officers and executive manage-
ment; (3) a letter to the board of commissioners from the chief execu-
tive officer of the port authority highlighting important developments;
(4) a description of major agency activities undertaken during the prior
year; and (5) a letter to the board of commissioners from the chief
financial officer of the port authority with respect to the consolidated
financial statements of the port authority.
b. a financial section including: (1) an independent auditor's report;
(2) management's discussion and analysis; (3) financial statements; (4)
its financial reports certified by the chair and vice-chair of the
A. 6754 18
board, chief executive officer, and chief financial officer of the port
authority, including (a) audited financials in accordance with generally
accepted accounting principles, known as GAAP, and the accounting stand-
ards issued by the governmental accounting standards board, known as
GASB, (b) grant and subsidy programs, (c) current ratings, if any, of
its bonds issued by recognized bond rating agencies and notice of chang-
es in such ratings, and (d) long-term liabilities, including leases and
employee benefit plans; (5) a schedule of its bonds and notes outstand-
ing at the end of its fiscal year, together with a statement of the
amounts redeemed and incurred during such fiscal year as part of a sche-
dule of debt issuance that includes the date of issuance, term, amount,
interest rate and means of repayment including all refinancings, calls,
refundings, defeasements and interest rate exchange or other such agree-
ments; and (6) at a minimum a four-year financial plan, including (a) a
current and projected capital budget, and (b) an operating budget
report, including an actual versus estimated budget, with an analysis
and measurement of financial and operating performance.
c. a statistical section presenting additional information as context
for further understanding of the information in the financial state-
ments, note disclosures and schedules, including (1) financial trends;
(2) debt capacity; (3) operating and service data; (4) information on
port authority operating results; (5) information on port authority
capital program components; (6) information on port authority facility
traffic; and (7) selected statistical, demographic and economic data on
the New York-New Jersey metropolitan region.
d. a corporate information section providing: (1) a list of all real
property of the port authority; (2) a list and full description of real
property and personal property that has a sale price of over $10,000
disposed of during the period, including the price received by the port
authority and the name of the purchaser for all property sold by the
port authority during the period; (3) a compensation schedule that shall
include, by position, title and name of the person holding such position
or title, the salary, compensation, allowance and/or benefits provided
to any officer, director or employee in a decision making or managerial
position of such authority whose base salary is in excess of $150,000;
(4) biographical information, not including confidential personal infor-
mation, for all directors and officers and employees for whom salary
reporting is required; (5) a description of the authority and its board
structure, including (a) names of committees and committee members, (b)
lists of board meetings and attendance, (c) descriptions of major
authority units, subsidiaries, and (d) number of employees; (6) its
mission statement, charter, if any, and by-laws; and (7) a description
of any material pending litigation in which the port authority is
involved as a party during the reporting year.
2. a. The port authority shall prepare financial statements on an
annual basis, in accordance with generally accepted accounting princi-
ples, known as GAAP, and the accounting standards issued by the govern-
mental accounting standards board, known as GASB.
b. The audit committee of the board of commissioners of the port
authority shall arrange for an independent firm of certified public
accountants to perform an audit of the financial statements of the port
authority each year, in accordance with generally accepted accounting
principles and standards referenced in paragraph a of this subdivision.
Each independent firm of certified public accountants that performs any
audit required by this article shall timely report to the audit commit-
tee of the port authority: (1) all critical accounting policies and
A. 6754 19
practices to be used; and (2) other material written communications,
that is not privileged or confidential, between the independent firm of
certified public accountants and the management of the port authority,
including the management letter along with management's response or plan
of corrective action, material corrections identified or schedule of
unadjusted differences.
c. Every financial statement prepared pursuant to this subdivision
shall be approved by the board of commissioners. As a condition to the
issuance of the annual financial statements of the port authority, the
chief executive officer and the chief financial officer of the port
authority shall be required to make a written certification to that
effect that, to the best of their knowledge and belief, the financial
and other information in the consolidated financial statements is accu-
rate in all material respects and has been reported in a manner designed
to present fairly the port authority's net assets, changes in net
assets, and cash flows, in accordance with generally accepted accounting
principles and standards referenced in paragraph a of this subdivision;
and, that on the basis that the cost of internal controls should not
outweigh their benefits, the port authority has established a comprehen-
sive framework of internal controls to protect its assets from loss,
theft, or misuse, and to provide reasonable (rather than absolute)
assurance regarding the reliability of financial reporting and the prep-
aration of the consolidated financial statements in accordance with
generally accepted accounting principles and standards referenced in
paragraph a of this subdivision.
d. Notwithstanding any other provision of law to the contrary, the
port authority shall not contract with an independent firm of certified
public accountants for audit services to the authority 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 two previous fiscal years of such authority.
e. The port authority shall not contract with the independent firm of
certified public accountants performing the port authority's audit for
any non-audit services to such authority contemporaneously with the
audit, unless receiving previous written approval by the audit committee
including: (1) bookkeeping or other services related to the accounting
records or financial statements of such authority; (2) financial infor-
mation systems design and implementation; (3) appraisal or valuation
services, fairness opinions, or contribution-in-kind reports; (4) actu-
arial services; (5) internal audit outsourcing services; (6) management
functions or human services; (7) broker or dealer, investment advisor,
or investment banking services; and (8) legal services and expert
services unrelated to the audit.
f. The port authority shall not contract with an independent firm of
certified public accountants for any audit service if the chief execu-
tive officer, comptroller, chief financial officer, treasurer, or any
other person serving in an equivalent position for the authority, was
employed by that independent firm of certified public accountants and
participated in any capacity in the audit of the authority during the
one year period preceding the date of the initiation of the audit.
3. The port authority shall make accessible to the public via its
website an executive summary of its most recent independent audit report
unless such information is exempt from disclosure pursuant to either
state's freedom of information laws.
§ 113. Property disposition, debt issuance, capitol plan and operating
budget. 1. Any sale of real property by the port authority shall be
A. 6754 20
undertaken and conducted pursuant to the provisions of the existing laws
governing the sale of real property by the port authority in the state
in which such real property is located and by approval of the board of
commissioners.
a. No disposition of real property, or any interest in real property,
shall be made unless an appraisal of the value of such real property has
been made by an independent appraiser and included in the record of the
transaction, and, provided further, that no disposition of any other
real property, which because of its unique nature or the unique circum-
stances of the proposed transaction is not readily valued by reference
to an active market for similar real property, shall be made without a
similar appraisal.
b. Disposal of real property for less than fair market value. No prop-
erty owned, leased, or otherwise in the control of the port authority
may be sold, leased, or otherwise alienated for less than its fair
market value unless:
(1) the transferee is a government or other public entity, and the
terms and conditions of the transfer require that the ownership and use
of the real property will remain with the government or any other public
entity; or
(2) the purpose of the transfer is within the purpose, mission, or
governing statute of the port authority and a written determination is
made by the board of commissioners that there is no reasonable alterna-
tive to the proposed below-market transfer that would achieve the same
purpose of such transfer, prior to board approval of such a transfer.
c. The board shall adopt, within six months of the effective date of
this article, appropriate rules and regulations concerning disposition,
acquisition, and transfer of real property or any interest in real prop-
erty by the port authority which shall, at a minimum, include a require-
ment that the following information be made available to the board of
commissioners at the meeting where approval of such a disposition,
acquisition or transfer is scheduled:
(1) a full description of the property;
(2) a description of the purpose of the disposition, acquisition, or
transfer;
(3) a statement of the value to be received from such a disposition,
acquisition, or transfer;
(4) the names of any private parties participating in the disposition,
acquisition, or transfer; and
(5) in the case of a property disposition for less than fair market
value, an explanation and a written determination by the board of
commissioners that there is no reasonable alternative to the proposed
below-market value that would achieve the same purpose of such disposi-
tion.
d. Not less than ten days in advance of any meeting of the board of
commissioners of the port authority at which the board of commissioners
is to consider an action to authorize the sale of real property owned by
the port authority, the chief executive officer of the port authority
shall provide public notice of such proposed action along with relevant
material terms and provisions of such sale including, but not limited
to, the information made available pursuant to paragraph c of this
subdivision, by posting on the port authority's website.
e. The chief executive officer may authorize or arrange for contracts
for the sale of personal property owned by the port authority or arrange
for contracts for the sale of personal property owned by the port
authority upon such terms and conditions as the chief executive officer
A. 6754 21
may deem proper and execute the same on behalf of the port authority
where the value of such personal property is not in excess of one
million dollars; provided, however, that personal property valued at
more than $250,000 shall not be sold by authority of the chief executive
officer other than to the highest bidder after public advertisement.
Where the value of such personal property is in excess of $1,000,000,
the sale of such property must be authorized by the board of commission-
ers of the port authority upon such terms as the board of commissioners
may deem proper.
f. The port authority may retain brokers or third-party vendors that
facilitate online auctions, or assist in disposing of surplus real and
personal property of the port authority.
2. a. The issuance of any bonds, notes or other instruments of indebt-
edness by the port authority shall be undertaken in a manner consistent
with applicable laws governing the port authority and covenants with the
holders of the port authority's bonds, notes or other instruments of
indebtedness.
b. At least sixty days prior to the end of its fiscal year, the port
authority shall submit to the governor, state comptroller, and legisla-
ture of each state a statement of intent in regards to the issuance of
and overall amount of bonds, notes, or other debt obligations antic-
ipated, at the time the statement is submitted, during the next fiscal
year.
3. The port authority shall adopt a ten-year capital plan that is
developed using a comprehensive planning process and risk-based priori-
tization that considers asset condition, operational and revenue impact,
threat assessment, customer service, regional benefit, and regulatory or
statutory requirements. The capital plan shall be dependent upon the
availability of sufficient funding and other resources to pursue the
capital projects proposed for the ten-year period. Performance progress
and revisions to reflect changes in programs, policies and projects and
the environment in which the port authority operates shall be reviewed
regularly by a committee designated by the board of commissioners, and
the capital plan shall be revised periodically as necessary and appro-
priate, and shall be reviewed with the board of commissioners annually.
The port authority shall publish an annual report on the status of the
capital program and such report shall be made publicly available on the
port authority's website. Prior to adoption of a capital plan, the port
authority shall make such proposed plan available for public review and
comments on its public website for at least two weeks prior to approval,
and all comments received are to be distributed to the board of commis-
sioners for review prior to consideration of the capital plan.
4. The port authority shall prepare a detailed annual operating budget
beginning with the fiscal year after the enactment into law legislation
having identical effect by the state of New Jersey. A preliminary annu-
al operating budget shall be made publicly available on the port author-
ity's website in July of every fiscal year and a final annual operating
budget shall be made publicly available in February of each fiscal year.
§ 114. State of emergency; domestic companion animal. 1. a. For the
purposes of this section:
(1) "Domestic companion animal" means a companion animal or pet as
defined in section three hundred fifty of the agriculture and markets
law and shall also mean any other domesticated animal normally main-
tained in or near the household of the owner or person who cares for
such other domesticated animal. "Pet" or "companion animal" shall not
A. 6754 22
include a "farm animal," as defined in section three hundred fifty of
the agriculture and markets law.
(2) "Public transportation or public transportation service" means
rail passenger service, motorbus regular route service, paratransit
service, motorbus charter service, and ferry passenger service.
b. (1) In the event that a state of emergency has been declared and an
evacuation of any region of the state is in progress, the owner of a
domestic companion animal shall be permitted to board any public trans-
portation or public transportation service with the domestic companion
animal so long as that animal is under the owner's control by use of a
leash or tether, or is properly confined in an appropriate container or
by other suitable means, provided that such boarding is authorized by
and consistent with the provisions of state disaster emergency plans or
local state of emergency plans pertaining to the needs of animals and
individuals with an animal under their care. The provisions of this
article shall only apply to the owners of domestic companion animals who
are evacuating from a region of the state affected by the emergency or
local disaster emergency as defined in section twenty of the executive
law, or a local state of emergency, as defined in section twenty-four of
the executive law.
(2) A domestic companion animal may be refused permission to board any
public transportation or public transportation service, even if the
animal is under the owner's control or properly confined in accordance
with this paragraph if there is reasonable cause to believe that, due to
attendant circumstances, permitting the animal to board would pose a
health or safety hazard.
c. All passengers with service animals shall be given priority seating
on all means of transportation regulated by this article in accordance
with the federal "Americans with Disabilities Act of 1990" (42 U.S.C.
s.12101 et seq.). For the purposes of this article, "service animal"
shall have the same meaning as set forth in the federal "Americans with
Disabilities Act of 1990" (42 U.S.C. s.12101 et seq.) and any regu-
lations under the act.
d. All passengers on any public transportation or public transporta-
tion service shall be provided seating before a domestic companion
animal may be placed in a seat.
2. The port authority is hereby authorized to make and enforce such
rules and regulations necessary for the implementation of this section.
§ 115. Public meetings. 1. The legislature finds and declares that
the right of the public to be present at meetings of the port authority
of New York and New Jersey, and to witness in full detail all phases of
the deliberation, policy formulation, and decision making of the author-
ity, is vital to the enhancement and proper functioning of the democrat-
ic process, and that secrecy in public affairs undermines the faith of
the public in government and the public's effectiveness in fulfilling
its role in a democratic society; and declares it to be the public poli-
cy of this state to insure the right of its citizens to have adequate
advance notice of and the right to attend all meetings of the authority
at which any business affecting the public is discussed or acted upon in
any way except only in those circumstances where otherwise the public
interest would be clearly endangered or the personal privacy of guaran-
teed rights of individuals would be clearly in danger of unwarranted
invasion.
2. The board shall, within six months of the enactment into law of
legislation having an identical effort by the state of New Jersey, adopt
appropriate rules and regulations concerning proper notice to the public
A. 6754 23
and the news media of its meetings and the right of the public and the
news media to be present at meetings of the authority. The board may
incorporate in its rules and regulations conditions under which it may
exclude the public from a meeting or a portion thereof.
3. Any rules or regulations adopted hereunder shall become a part of
the minutes of the port authority of New York and New Jersey and shall
be subject to the approval of the governor of New Jersey and the gover-
nor of New York.
4. Unless and until otherwise determined by the action of the legisla-
tures of the two states, no action of the port authority shall be bind-
ing unless taken at a meeting at which at least three of the members
from each state are present, and unless a majority of the members from
each state present at such meeting but in any event at least three of
the members from each state, shall vote in favor thereof. Each state
reserves the right to provide by law for the exercise of a veto power by
the governor thereof over any action of any commissioner appointed ther-
efrom.
§ 116. Minutes of public meetings. 1. The port authority shall file
with the temporary president and minority leader of the senate and the
speaker and minority leader of the assembly, the chairman of the assem-
bly ways and means committee and the chairman of the senate finance
committee of the state of New York and the president, minority leader
and secretary of the senate and the speaker, minority leader and clerk
of the general assembly of the state of New Jersey a copy of the minutes
of any action taken at any public meeting of the port authority. Such
filing shall be made on the same day such minutes are transmitted to the
governor of each state for review; and notice of such filing shall be
provided to the governor of each state at the same time. Failure to
effectuate any such filing shall not impair the ability of the authority
to act pursuant to a resolution of its board. Such filing shall not
apply to any minutes required to be filed pursuant to section twenty of
former chapter six hundred fifty-one of the laws of nineteen hundred
seventy-eight and continued by part XXVII of this article.
2. The temporary president and minority leader of the senate, the
speaker and minority leader of the assembly, the chairman of the assem-
bly ways and means committee and the chairman of the senate finance
committee of the state of New York and the speaker and minority leader
of the general assembly and the president and the minority leader of the
senate of the state of New Jersey, or representatives designated by them
in writing for this purpose, may by certificate filed with the secretary
of the port authority waive the foregoing filing requirement with
respect to any specific minutes.
§ 117. Jurisdiction. Unless and until otherwise provided, all laws
now or hereafter vesting jurisdiction or control in the public service
commission, or the public utilities commission, or like body, within
each state respectively, shall apply to railroads and to any transporta-
tion, terminal or other facility owned, operated, leased or constructed
by the port authority, with the same force and effect as if such rail-
road, or transportation, terminal or other facility were owned, leased,
operated or constructed by a private corporation.
§ 118. Powers of municipalities to develop or improve. Nothing
contained in this agreement shall impair the powers of any municipality
to develop or improve port and terminal facilities.
§ 119. Comprehensive development. 1. The legislatures of the two
states, prior to the signing of this agreement, or thereafter as soon as
A. 6754 24
may be practicable, will adopt a plan or plans for the comprehensive
development of the port of New York.
2. The port authority shall from time to time make plans for the
development of the port of New York district, supplementary to or amen-
datory of any plan theretofore adopted, and when such plans are duly
approved by the legislatures of the two states, they shall be binding
upon both states with the same force and effect as if incorporated in
this chapter.
3. The port authority may petition any interstate commerce commission
(or like body), commissioner of transportation, public utilities commis-
sion (or like body), or any other federal, municipal, state or local
authority, administrative, judicial or legislative, having jurisdiction
in the premises, after the adoption of the comprehensive plan as
provided for in subdivision one of this section, for the adoption and
execution of any physical improvement, change in method, rate of trans-
portation, system of handling freight, warehousing, docking, lightering
or transfer of freight, which, in the opinion of the port authority, may
be designed to improve or better the handling of commerce in and through
the port of New York district, or improve terminal and transportation
facilities therein. It may intervene in any proceeding affecting the
commerce of the port.
§ 120. Recommendations. The port authority may from time to time make
recommendations to the legislatures of the two states or to the congress
of the United States, based upon study and analysis, for the better
conduct of the commerce passing in and through the port of New York, the
increase and improvement of transportation and terminal facilities ther-
ein, and the more economical and expeditious handling of such commerce.
§ 121. Expense of operations. 1. Unless and until the revenues from
operations conducted by the port authority are adequate to meet all
expenditures, the legislatures of the two states shall appropriate, in
equal amounts, annually, for the salaries, office and other administra-
tive expenses, such sum or sums as shall be recommended by the port
authority and approved by the governors of the two states, but each
state obligates itself hereunder only to the extent of one hundred thou-
sand dollars in any one year.
2. Unless and until otherwise determined by the action of the legisla-
tures of the two states, the port authority shall not incur any obli-
gations for salaries, office or other administrative expenses, within
the provisions of subdivision one of this section, prior to the making
of appropriations adequate to meet the same.
§ 122. Port authority as an agency. Notwithstanding any law to the
contrary, the port authority shall be deemed an "agency" and treated as
such under the laws of New York, for all purposes under articles six and
six-A of the public officers law, and shall be deemed a "public agency"
and treated as such under New Jersey, P.L. 1963, c. 73 (C.47:1A-1 et
seq.), pertaining to the disclosure of government records.
§ 123. Notice of claim. Notwithstanding any other provision of law to
the contrary, every action against the authority for damages or injuries
to real or personal property, or for the destruction thereof, or for
personal injuries or wrongful death shall not be commenced unless a
notice of claim shall have been served on the authority in the manner
provided for in the state where the action is commenced, and in compli-
ance with the pertinent statutes of the state relating generally to
actions commenced against that state and in compliance with all the
requirements of the laws of that state. Where such state's law permits
service upon a department of that state in lieu of service upon the
A. 6754 25
public entity, service may be made pursuant to such law. Except in an
action for wrongful death against such an entity, an action for damages
or for injuries to real or personal property, or for the destruction
thereof, or for personal injuries, alleged to have been sustained, shall
not be commenced more than one year and ninety days after the cause of
action therefor shall have accrued or within the time period otherwise
prescribed by any special provision of law of that state, whichever is
longer.
§ 124. Regulations. 1. The port authority is hereby authorized to
make suitable rules and regulations not inconsistent with the constitu-
tion of the United States or of either state, and subject to the exer-
cise of the power of congress, for the improvement of the conduct of
navigation and commerce, which, when concurred in or authorized by the
legislatures of both states, shall be binding and effective upon all
persons and corporations affected thereby.
2. The two states shall provide penalties for violations of any order,
rule or regulation of the port authority, and for the manner of enforc-
ing the same.
PART II
DEVELOPMENT OF THE PORT OF NEW YORK
Section 201. Development of the port of New York.
202. Investigations.
203. Hearings.
204. Orders.
205. Terminal stations.
206. Preference.
§ 201. Development of the port of New York. 1. Pursuant to subdivi-
sion two of section one hundred seven of this article the following be
and is hereby adopted as the comprehensive plan for the development of
the port of New York:
(a) That terminal operations within the port district, so far as
economically practicable, should be unified;
(b) That there should be consolidation of shipments at proper classi-
fication points so as to eliminate duplication of effort, inefficient
loading of equipment and realize reduction in expenses;
(c) That there should be the most direct routing of all commodities so
as to avoid centers of congestion, conflicting currents and long truck-
hauls;
(d) That terminal stations established under the comprehensive plan
should be union stations, so far as practicable;
(e) That the process of coordinating facilities should so far as prac-
ticable adapt existing facilities as integral parts of the new system,
so as to avoid needless destruction of existing capital investment and
reduce so far as may be possible the requirements for new capital; and
endeavor should be made to obtain the consent of local municipalities
within the port district for the coordination of their present and
contemplated port and terminal facilities with the whole plan.
(f) That freight from all railroads must be brought to all parts of
the port wherever practicable without cars breaking bulk, and this
necessitates tunnel connection between New Jersey and Long Island, and
tunnel or bridge connections between other parts of the port;
(g) That there should be urged upon the federal authorities improve-
ment of channels so as to give access for that type of waterborne
commerce adapted to the various forms of development which the respec-
tive shorefronts and adjacent lands of the port would best lend them-
selves to;
A. 6754 26
(h) That highways for motor truck traffic should be laid out so as to
permit the most efficient inter-relation between terminals, piers and
industrial establishments not equipped with railroad sidings and for the
distribution of building materials and many other commodities which must
be handled by trucks; these highways to connect with existing or
projected bridges, tunnels and ferries.
(i) That definite methods for prompt relief should be devised which
can be applied for the better coordination and operation of existing
facilities while larger and more comprehensive plans for future develop-
ment are being carried out.
2. The bridges, tunnels and belt lines forming the comprehensive plan
are generally and in outline indicated on maps filed by the port of New
York authority in the offices of the secretaries of the states of New
York and New Jersey and are hereinafter described in outline.
3. (a) A tunnel or tunnels connecting the New Jersey shore and the
Brooklyn shore of New York to provide through line connection between
the transcontinental railroads now having their terminals in New Jersey
with the Long Island railroad and the New York connecting railroad on
Long Island and with the New York Central and Hudson River railroad and
the New York, New Haven and Hartford railroad in the Bronx, and to
provide continuous transportation of freight between the Queens, Brook-
lyn and Bronx sections of the port to and from all parts of the westerly
section of the port, for all of the transcontinental railroads.
(b) A bridge and/or tunnel across or under the Arthur kill, and/or the
existing bridge enlarged, to provide direct freight carriage between New
Jersey and Staten Island.
(c) The location of all such tunnels or bridges to be at the shortest,
most accessible and most economical points practicable, taking account
of existing facilities now located within the port district and provid-
ing for and taking account of all reasonably foreseeable future growth
in all parts of the district.
4. The island of Manhattan to be connected with New Jersey by bridge
or tunnel, or both, and freight destined to and from Manhattan to be
carried underground, so far as practicable, by such system, automatic
electric as hereinafter described or otherwise, as will furnish the most
expeditious, economical and practicable transportation of freight, espe-
cially meat, produce, milk and other commodities comprising the daily
needs of the people. Suitable markets, union inland terminal stations
and warehouses to be laid out at points most convenient to the homes and
industries upon the island, the said system to be connected with all the
trans-continental railroads terminating in New Jersey and by appropriate
connection with the New York Central and Hudson River railroad, the New
York, New Haven and Hartford and the Long Island railroads.
5. The numbers hereinafter used correspond with the numbers which have
been placed on the map of the comprehensive plan to identify the various
belt lines and marginal railroads.
(a) Number 1. Middle belt line. Connects New Jersey and Staten Island
and the railroads on the westerly side of the port with Brooklyn,
Queens, the Bronx and the railroads on the easterly side of the port.
Connects with the New York Central railroad in the Bronx; with the New
York, New Haven and Hartford railroad in the Bronx; with the Long Island
railroad in Queens and Brooklyn; with the Baltimore and Ohio railroad
near Elizabethport and in Staten Island; with the Central Railroad
Company of New Jersey at Elizabethport and at points in Newark and
Jersey City; with the Pennsylvania railroad in Newark and Jersey City;
with the Lehigh Valley railroad in Newark and Jersey City; with the
A. 6754 27
Delaware, Lackawanna and Western railroad in Jersey City and the Secau-
cus meadows; with the Erie railroad in Jersey City and the Secaucus
meadows; with the New York, Susquehanna and Western, the New York,
Ontario and Western and the West Shore railroads on the westerly side of
the Palisades above the Weehawken tunnel.
The route of the middle belt line as shown on said map is in general
as follows: Commencing at the Hudson river at Spuyten Duyvil running
easterly and southerly generally along the easterly side of the Harlem
river, utilizing existing lines so far as practicable and improving and
adding where necessary, to a connection with Hell Gate bridge and the
New Haven railroad, a distance of approximately seven miles; thence
continuing in a general southerly direction, utilizing existing lines
and improving and adding where necessary, to a point near Bay Ridge, a
distance of approximately eighteen and one-half miles; thence by a new
tunnel under New York bay in a northwesterly direction to a portal in
Jersey City or Bayonne, a distance of approximately five miles, to a
connection with the tracks of the Pennsylvania and Lehigh Valley rail-
roads; thence in a generally northerly direction along the easterly side
of Newark bay and the Hackensack river at the westerly foot of the Pali-
sades, utilizing existing tracks and improving and adding where neces-
sary, making connections with the Jersey Central, Pennsylvania, Lehigh
Valley, Delaware, Lackawanna and Western, Erie, New York, Susquehanna
and Western, New York, Ontario and Western, and West Shore railroads, a
distance of approximately ten miles. From the westerly portal of the Bay
tunnel and from the line along the easterly side of Newark bay by the
bridges of the Central railroad of New Jersey (crossing the Hackensack
and Passaic rivers) and of the Pennsylvania and Lehigh Valley railroads
(crossing Newark bay) to the line of the central railroad of New Jersey
running along the westerly side of Newark bay and thence southerly along
this line to a connection with the Baltimore and Ohio railroad south of
Elizabethport, utilizing existing lines so far as practicable and
improving and adding where necessary, a distance of approximately twelve
miles; thence in an easterly direction crossing the Arthur kill, utiliz-
ing existing lines so far as practicable and improving and adding where
necessary, along the northerly and easterly shores of Staten Island to
the new city piers and to a connection, if the city of New York consent
thereto, with the tunnel under the Narrows to Brooklyn provided for
under chapter seven hundred of the laws of the state of New York for
nineteen hundred and twenty-one.
(b) Number 2. A marginal railroad to the Bronx extending along the
shore of the East river and Westchester creek connecting with the middle
belt line (number one), and with the New York, New Haven and Hartford
railroad in the vicinity of Westchester.
(c) Number 3. A marginal railroad in Queens and Brooklyn extending
along Flushing creek, Flushing bay, the East river and the upper New
York bay. Connects with the middle belt line (number one), by lines
number four, number five, number six and directly at the southerly end
at Bay Ridge. Existing lines to be utilized and improved and added to
and new lines built where lines do not now exist.
(d) Number 4. An existing line to be improved and added to where
necessary. Connects the middle belt line (number one), with the marginal
railroad number three near its northeasterly end.
(e) Number 5. An existing line to be improved and added to where
necessary. Connects the middle belt line (number one), with the marginal
railroad number three in Long Island City.
A. 6754 28
(f) Number 6. Connects the middle belt line (number one), with the
marginal railroad number three in the Greenpoint section of Brooklyn.
The existing portion to be improved and added to where necessary.
(g) Number 7. A marginal railroad surrounding the northerly and
westerly shores of Jamaica bay. A new line. Connects with the middle
belt line (number one).
(h) Number 8. An existing line, to be improved and added to where
necessary. Extends along the southeasterly shore of Staten Island.
Connects with middle belt line (number one).
(i) Number 9. A marginal railroad extending along the westerly shore
of Staten Island and a branch connection with number eight. Connects
with the middle belt line (number one), and with a branch from the outer
belt line (number fifteen).
(j) Number 10. A line made up mainly of existing lines, to be improved
and added to where necessary. Connects with the middle belt line (number
one) by way of marginal railroad number eleven. Extends along the south-
erly shore of Raritan bay and through the territory south of the Raritan
river reaching New Brunswick.
(k) Number 11. A marginal railroad extending from a connection with
the proposed outer belt line (number fifteen) near New Brunswick along
the northerly shore of the Raritan river to Perth Amboy, thence norther-
ly along the westerly side of the Arthur kill to a connection with the
middle belt line (number one) south of Elizabethport. The portion of
this line which exists to be improved and added to where necessary.
(l) Number 12. A marginal railroad extending along the easterly shore
of Newark bay and the Hackensack river and connects with the middle belt
line (number one). A new line.
(m) Number 13. A marginal railroad extending along the westerly side
of the Hudson river and the Upper New York bay. Made up mainly of exist-
ing lines----the Erie Terminals, Jersey Junction, Hoboken Shore, and
National Docks railroads. To be improved and added to where necessary.
To be connected with middle belt line (number one).
(n) Number 14. A marginal railroad connecting with the middle belt
line (number one), and extending through the Hackensack and Secaucus
meadows.
(o) Number 15. An outer belt line, extending around the westerly
limits of the port district beyond the congested section. Northerly
terminus on the Hudson river at Piermont. Connects by marginal railroads
at the southerly end with the harbor waters below the congested section.
By spurs connects with the middle belt line (number one) on the westerly
shore of Newark bay and with the marginal railroad on the westerly shore
of Staten Island (number nine).
(p) Number 16. The automatic electric system for serving Manhattan
Island. Its yards to connect with the middle belt line and with all the
railroads of the port district. A standard gauge underground railroad
deep enough in Manhattan to permit of two levels of rapid transit
subways to pass over it. Standard railroad cars to be brought through to
Manhattan terminals for perishables and food products in refrigerator
cars. Cars with merchandise freight to be stopped at its yards. Freight
from standard cars to be transferred onto wheeled containers, thence to
special electrically propelled cars which will bear it to Manhattan.
Freight to be kept on wheels between the door of the standard freight
car at the transfer point and the tail board of the truck at the Manhat-
tan terminal or the store door as may be elected by the shipper or
consignee, eliminating extra handling.
A. 6754 29
Union terminal stations to be located on Manhattan in zones as far as
practicable of equal trucking distance, as to pickups and deliveries, to
be served by this system. Terminals to contain storage space and space
for other facilities. The system to bring all the railroads of the port
to Manhattan.
6. The determination of the exact location, system and character of
each of the said tunnels, bridges, belt lines, approaches, classifica-
tion yards, warehouses, terminals or other improvements shall be made by
the port authority after public hearings and further study, but in
general the location thereof shall be as indicated upon said map, and as
herein described.
7. The right to add to, modify or change any part of the foregoing
comprehensive plan is reserved by each state, with the concurrence of
the other.
8. The port of New York authority is hereby authorized and directed to
proceed with the development of the port of New York in accordance with
said comprehensive plan as rapidly as may be economically practicable
and is hereby vested with all necessary and appropriate powers not
inconsistent with the constitution of the United States or of either
state, to effectuate the same, except the power to levy taxes or assess-
ments. It shall request the congress of the United States to make such
appropriations for deepening and widening channels and to make such
grants of power as will enable the said plan to be effectuated. It shall
have power to apply to all federal agencies, including the interstate
commerce commission, the war department, and the United States shipping
board, for suitable assistance in carrying out said plan. It shall coop-
erate with the state highway commissioners of each state so that trunk
line highways as and when laid out by each state shall fit in with said
comprehensive plan. It shall render such advice, suggestion and assist-
ance to all municipal officials as will permit all local and municipal
port and harbor improvements, so far as practicable, to fit in with said
plan. All municipalities within the district are hereby authorized and
empowered to cooperate in the effectuation of said plan, and are hereby
vested with such powers as may be appropriate or necessary so to cooper-
ate. The bonds or other securities issued by the port authority shall at
all times be free from taxation by either state. The port authority
shall be regarded as the municipal corporate instrumentality of the two
states for the purpose of developing the port and effectuating the
pledge of the states in the said compact, but it shall have no power to
pledge the credit of either state or to impose any obligation upon
either state, or upon any municipality, except as and when such power is
expressly granted by statute, or the consent by any such municipality is
given.
§ 202. Investigations. 1. (a) To facilitate the determination of the
economic practicability of any step in the comprehensive plan, or of any
other fact or matter which the port authority is authorized and
empowered to decide or determine, the port authority may conduct inves-
tigations, inquiries or hearings at such place or places and at such
times as it shall appoint. Such investigations, inquiries or hearings
may be held by or before one or more of the commissioners of the port
authority, or by or before any person or persons appointed as its repre-
sentative, and when ratified, approved or confirmed by the port authori-
ty on its action shall be and be deemed to be the investigation, inquiry
or hearing of the port authority.
(b) For the purpose of such investigations, inquiries or hearings, and
of such other action or powers as the port authority may be authorized
A. 6754 30
or empowered to take or exercise, it shall have jurisdiction of any and
all persons, associations, or corporations, residing in, or acting or
existing under or by virtue of the laws of, or owning property or coming
within this state.
2. The port authority shall have the power to compel the attendance of
witnesses and the production of any papers, books or other documents,
and to administer oaths to all witnesses who may be called before it.
Subpoenas issued by the port authority shall be signed by a commissioner
or by the secretary of the port authority. No witness subpoenaed at the
instance of parties other than the port authority shall be entitled to
compensation therefrom for attendance or travel, but the cost thereof
shall be borne by the party at whose instance the witness is summoned,
unless the port authority otherwise orders. A subpoena issued under this
section shall be regulated by the civil practice law and rules of the
state of New York.
§ 203. Hearings. 1. All hearings before the port authority, including
the taking of testimony, shall be governed by rules to be adopted and
prescribed by it.
2. In any investigation, inquiry or hearing before the port authority,
a commissioner or an officer conducting the investigation, inquiry or
hearing may confer immunity in accordance with the provisions of section
50.20 of the criminal procedure law of the state of New York.
3. No commissioner or employee of the port authority shall be required
to give testimony in any civil suit to which the port authority is not a
party with regard to information obtained by him in the discharge of his
or her official duty.
§ 204. Orders. 1. Every order of the port authority shall be served
upon every person, association or corporation to be affected thereby,
either by personal delivery of a certified copy thereof, or by mailing a
certified copy thereof, in a sealed package with postage prepaid, to the
person to be affected thereby; or in the case of a corporation to any
officer or agent thereof upon whom a summons might be served, either
within or without the state, in accordance with law. It shall be the
duty of every person, association or corporation, to notify the port
authority forthwith, in writing, of the receipt of the certified copy of
every order so served, and in the case of a corporation such notifica-
tion must be signed and acknowledged by a person or officer duly author-
ized by the corporation to admit such service. Within a time specified
in the order of the port authority, such person, association or corpo-
ration, upon whom it is served, must, if so required in the order, noti-
fy the port authority in like manner whether the terms of the order are
accepted and will be obeyed. Every order of the port authority shall
take effect at a time therein specified and shall continue in force
either for a period which may be designated therein, or until changed or
abrogated by the port authority, unless such order be unauthorized by
law, or be in violation of a provision of the constitution of the state,
or of the United States.
2. No order staying or suspending an order of the port authority shall
be made by any court otherwise than upon notice and after hearing, and
if the order of the port authority is suspended, the order suspending
the same shall contain a specific finding based upon evidence submitted
to the court and identified by reference thereto that great and irrepar-
able damage would otherwise result to the petitioner and specifying the
nature of the damage.
3. (a) Whenever the port authority shall be of the opinion that any
person, association or corporation subject to its jurisdiction is fail-
A. 6754 31
ing or omitting, or about to fail or omit to do anything required of it
by the laws governing the development and regulation of the port of New
York, or by its order, or is doing or is about to do anything, or
permitting, or about to permit anything to be done contrary to, or in
violation of, such law or orders, it shall direct its legal represen-
tative to commence an action or proceeding in the name of the port
authority, in an appropriate court having jurisdiction, for the purpose
of having such violations, or threatened violations, stopped and
prevented either by mandamus or injunction. Such an action or proceeding
may be brought in the supreme court of this state, and the said court
shall have and is hereby given the necessary and appropriate jurisdic-
tion to grant mandamus or injunction, as the case may require, or any
other relief appropriate to the case.
(b) Failure of such person, association or corporation to notify the
port authority, as required in the preceding section, of its acceptance
of and willingness to obey any order of the port authority shall be and
be deemed to be prima facie proof that such person, association or
corporation is guilty of such violation, or threatened violation. The
legal representative of the port authority shall begin such action or
proceeding by a petition to the appropriate court, alleging the
violation complained of and praying for appropriate relief by way of
mandamus or injunction. If the petition is directed to a court of this
state, it shall thereupon be the duty of the court to specify the time,
not exceeding twenty days after the service of a copy of the petition,
within which the person, association or corporation complained of must
answer the petition. In case of default in answer, or after answer, the
court shall immediately inquire into the facts and circumstances, in
such manner as the court shall direct, without other or formal pleadings
and without respect to any technical requirement. Such other persons,
associations or corporations as the court shall deem necessary or proper
to join as parties, in order to make its order, judgment or writs effec-
tive, may be joined as parties upon application of the legal represen-
tative of the port authority. The final judgment in any such action or
proceeding shall either dismiss the action or proceeding, or direct that
a writ of mandamus, or an injunction, or both, issue as prayed for in
the petition, or in such modified or other form as the court may deter-
mine will afford the appropriate relief.
4. (a) Whenever the port authority, after opportunity to the parties
affected or to be affected thereby to be heard, shall determine any fact
or matter which it is authorized by any law to hear or determine, or
that any step in the effectuation of the comprehensive plan is or in the
near future will be economically practicable, it shall make its findings
in writing, setting forth its reasons therefor, and such findings shall
be and be deemed to be a determination by the port authority, under and
pursuant to law. Upon such determination an appropriate order may be
entered by the port authority and be made effective and may be enforced
as herein provided.
(b) If such findings or determination shall require the use of exist-
ing facilities or any part thereof described in the law, owned or oper-
ated by any carrier or carriers, then the port authority may order and
require the carrier or carriers owning or operating said railroad facil-
ities or part thereof to permit the use of such facilities or part ther-
eof upon the payment of reasonable compensation therefor. If the carrier
or carriers affected or to be affected by such order shall not be able,
within the time to be specified in its order by the port authority, to
agree among themselves upon the compensation to be paid by a user to a
A. 6754 32
proprietor or operator for the use of such existing facilities or part
thereof, then the port authority shall make determination of the amount
to be paid by the user to the proprietary carrier or carriers, taking
all the facts and circumstances into account, including the public use
to which such facilities have been put; or, at its option, the port
authority may apply to the supreme court of this state, either in a
separate proceeding or in proceedings by mandamus or injunction to
enforce its order, to fix and determine the fair and reasonable compen-
sation to be paid by the user to the proprietary carrier or carriers for
such use. If any carrier shall be dissatisfied with the findings of the
port authority in the matter of the compensation to be paid for the use
of any existing facility, it shall have the right to review the same in
the supreme court of this state by taking appropriate proceedings for
such review within sixty days from the service of the order of the port
authority, but pending such review the order for the use of such facili-
ties shall be operative, the determination of the compensation by the
court to relate back to the time of the commencement of such user,
unless the court shall for good and proper reasons enjoin the operation
of such order.
§ 205. Terminal stations. If, in the determination of steps to effec-
tuate the comprehensive plan, the port authority shall determine that
one or more union terminal stations are then, or in the near future,
economically practicable, it shall call a conference of all the carriers
affected or to be affected by the use of such terminal stations or
station and shall submit to them a plan or plans for the construction,
maintenance and use thereof. If the carriers or any of them shall fail
or refuse to agree upon such plan, the port authority shall make and
certify its findings and conclusions to the supreme court of this state,
and the said court is vested with appropriate and adequate jurisdiction
to determine whether or not such plan or plans for a union station or
stations effectuate the comprehensive plan, and to make such conditions
and impose such terms as will carry out the same in accordance with the
principles embraced in the comprehensive plan and the laws governing the
same.
§ 206. Preference. All actions and proceedings to which the port
authority may be a party and in which any question arises under the laws
relating to the port authority, or under or concerning any of its orders
or actions, shall be preferred over all other civil causes, except
election causes, in all courts of this state and shall be heard and
determined in preference to all other civil business pending therein,
except election causes, irrespective of position on the calendar. The
same preference shall be granted upon application of the legal represen-
tative of the port authority, in any action or proceeding in which he or
she may be allowed to intervene.
PART III
BRIDGES AND TUNNELS IN NEW YORK AND NEW JERSEY
Section 301. Legislative intent.
302. Tunnels.
303. Bridges.
304. Studies and reporting.
305. Inspections.
306. Construction, maintenance and operation.
307. Rules and regulations relating to tunnels and bridges.
308. Bonds.
309. Compact.
A. 6754 33
§ 301. Legislative intent. The state of New Jersey by appropriate
legislation concurring herein, the states of New York and New Jersey
hereby declare and agree that the vehicular traffic moving across the
interstate waters within the port of New York district, created by the
compact of April thirty, nineteen hundred twenty-one, between the said
states, which said phrase "interstate waters" as used in this part shall
include the portion of the Hudson river within the said port of New York
district north of the New Jersey state line, constitutes a general move-
ment of traffic which follows the most accessible and practicable
routes, and that the users of each bridge or tunnel over or under the
said waters benefit by the existence of every other bridge or tunnel
since all such bridges and tunnels as a group facilitate the movement of
such traffic and relieve congestion at each of the several bridges and
tunnels. Accordingly the two said states, in the interest of the users
of such bridges and tunnels and the general public, hereby agree that
the construction, maintenance, operation and control of all such bridges
and tunnels, heretofore or hereafter authorized by the two said states,
shall be unified under the port authority, to the end that the tolls and
other revenues therefrom shall be applied so far as practicable to the
costs of the construction, maintenance and operation of said bridges and
tunnels as a group and economies in operation effected, it being the
policy of the two said states that such bridges and tunnels shall as a
group be in all respects self-sustaining.
§ 302. Tunnels. 1. In furtherance of the policy stated in section
three hundred one of this part, and in partial effectuation of the
comprehensive plan adopted by the two said states for the development of
the said port of New York district pursuant to this chapter, the
control, operation, tolls and other revenues of the vehicular tunnel,
known as the Holland tunnel, under the Hudson river between the city of
Jersey City and the city of New York, shall be vested in the port
authority as hereinafter provided; and the port authority is hereby
authorized and empowered to construct, own, maintain and operate an
interstate vehicular crossing under the Hudson river to consist of three
tubes (hereinafter called the Midtown Hudson tunnel), together with such
approaches thereto and connections with highways as the port authority
may deem necessary or desirable.
2. The entrances, exits and approaches to the said Midtown Hudson
tunnel, on the New York side, shall be between West Thirty-fifth street
and West Forty-first street and in the vicinity of Ninth avenue and to
the west thereof, in the borough of Manhattan, city of New York. The
approaches to the said Midtown Hudson tunnel on the New Jersey side
shall be so located and constructed as to permit tunnel traffic to pass
over or under the tracks of the New York, Susquehanna and Western Rail-
road Company and the Northern Railroad Company of New Jersey, immediate-
ly west of the Palisades, without crossing the said tracks at grade, and
as to permit connections with New Jersey state highway routes in the
vicinity of the said tracks. The said Midtown Hudson tunnel shall have
an appropriate entrance and exit in the township of Weehawken, county of
Hudson, state of New Jersey.
3. The control, operation, tolls and other revenues of the said
Holland tunnel and its entrance and exit plazas and of all real and
personal property appurtenant thereto or used in connection therewith,
shall vest in the port authority upon the making of the following
payments by the port authority to each of the said two states:
(a) An amount equal to the moneys contributed by such state toward the
cost of construction of the said Holland tunnel, with interest thereon
A. 6754 34
at the rate of four and one-quarter per centum per annum from the date
or dates on which such moneys were contributed by such state to the date
of the payment to such state;
(b) Less, however, the share of such state in the net revenues of the
said tunnel to the date of the said payment, and less interest on such
net revenues at the rate of four and one-quarter per centum per annum
from the dates on which the said net revenues were received by such
state to the date of the said payment;
(c) And in the case of the payment to the state of New York, less an
amount equal to the moneys which the said state has agreed to advance to
the port authority (but which have not as yet been advanced to the port
authority) in aid of bridge construction, during the fiscal years
commencing in nineteen hundred thirty-one and nineteen hundred thirty-
two, pursuant to chapter seven hundred and sixty-one of the laws of New
York of nineteen hundred twenty-six and chapter three hundred of the
laws of New York of nineteen hundred twenty-seven and acts amendatory
thereof and supplemental thereto, discounted, however, in the case of
each advance at the rate of four and one-quarter per centum per annum,
from the date of the said payment to the state of New York to the date
upon which such advance is to be available pursuant to the aforesaid
statutes.
In computing interest as aforesaid upon the moneys contributed by each
of the said two states toward the cost of construction of the said
Holland tunnel, such moneys shall be deemed to have been contributed by
such state upon the first day of the month following the month during
which there were presented to the comptroller of such state for audit
and payment, the schedules and vouchers pursuant to which such moneys
were paid. In computing interest as aforesaid upon the net revenues
received by each of the said two states, such net revenues shall be
deemed to have been received by such state upon the date when such
revenues were credited to such state or to the commission of such state
pursuant to paragraph eleven of article fourteen of the compact of
December thirty, nineteen hundred nineteen, between the two said states.
4. If the amount paid by the port authority to the state of New Jersey
pursuant to subdivision three of this section shall be less than an
amount which, together with the moneys then in the sinking fund estab-
lished by chapter three hundred and fifty-two of the laws of New Jersey
of nineteen hundred twenty and chapter two hundred and sixty-two of the
laws of New Jersey of nineteen hundred twenty-four, hereinafter called
the New Jersey Camden bridge-Holland tunnel sinking fund (other than
moneys set apart to pay interest for the then current year upon the
bonds of the state of New Jersey authorized by the aforesaid acts of the
state of New Jersey, hereinafter called New Jersey Camden bridge-Holland
tunnel bonds), will be equal to the principal amount of the then
outstanding New Jersey Camden bridge-Holland tunnel bonds, then and in
such event, the port authority shall in addition pay to the state of New
Jersey an amount which, together with the amount paid under and pursuant
to the preceding section hereof and the moneys then in said New Jersey
Camden bridge-Holland tunnel sinking fund, will be equal to the princi-
pal amount of the then outstanding New Jersey Camden bridge-Holland
tunnel bonds; and shall, moreover, pay to the state of New York a like
amount.
5. The amount payable by the port authority to the state of New York
pursuant to subdivisions three and four of this section shall be paid by
the port authority into the treasury of the state of New York upon the
thirtieth day of June, nineteen hundred thirty-one, or at an earlier
A. 6754 35
date at the option of the port authority on five days' notice to the
comptroller of the state of New York, upon a voucher signed and audited
by the said comptroller, who is hereby authorized to consummate the said
transaction.
6. The amount payable by the port authority to the state of New Jersey
pursuant to subdivisions three and four of this section shall be paid by
the port authority to the sinking fund commission created by said chap-
ter three hundred and fifty-two of the laws of New Jersey of nineteen
hundred twenty and said chapter two hundred and sixty-two of the laws of
New Jersey of nineteen hundred twenty-four, hereinafter called the New
Jersey Camden bridge-Holland tunnel sinking fund commission upon the
thirtieth day of June, nineteen hundred thirty-one, or such other date
as may be agreed upon by the said sinking fund commission and the port
authority, upon a voucher signed and audited by the said sinking fund
commission, which said commission is hereby authorized to consummate
said transaction; and the said moneys shall be deposited in the said New
Jersey Camden bridge-Holland tunnel sinking fund, and shall for all
purposes be deemed to be a part thereof and subject to the appropriation
of the moneys in the said sinking fund, made by the aforesaid statutes
of the state of New Jersey.
7. The income and interest received from or accruing upon the moneys
in the aforesaid New Jersey Camden bridge-Holland tunnel sinking fund,
and from the investment thereof, shall be set apart and held by the said
New Jersey Camden bridge-Holland tunnel sinking fund commission for the
payment of interest on New Jersey Camden bridge-Holland tunnel bonds,
and shall be subject to the appropriation made of moneys so set apart
and held, by the aforesaid statutes of the state of New Jersey, and
shall be applied to the payment of such interest.
8. Upon the making of the foregoing payments by the port authority to
the two said states, the provisions of the compact of December thirty,
nineteen hundred nineteen, between the said two states, relating to the
construction and operation of the said Holland tunnel, as amended, so
far as inconsistent herewith or with the rules, practice and procedure
or general authority of the port authority, shall be and shall be deemed
to be abrogated; and chapter four hundred and twenty-one of the laws of
New York of nineteen hundred thirty, and chapter two hundred and forty-
seven of the laws of New Jersey of nineteen hundred thirty, making the
port authority the agent of the two states in connection with the opera-
tion of the said Holland tunnel shall cease to be effective.
§ 303. Bridges. 1. Except as may be agreed upon between the port
authority and the municipality in which they shall be located, the
approaches to the George Washington bridge hereafter constructed on the
New York side shall be located as follows: between Amsterdam avenue and
Pinehurst avenue, the approaches shall be located between West One
hundred seventy-eighth street and West One hundred seventy-ninth street;
between Pinehurst avenue and Cabrini boulevard, the approaches shall be
between West One hundred seventy-eighth street and West One hundred
eightieth street; between Cabrini boulevard and Haven avenue, the
approaches shall be between West One hundred seventy-seventh street and
the line parallel to the northerly side of West One hundred eightieth
street and one hundred twenty-five feet north of the building line on
the north side thereof; between Haven avenue and Service street north of
the George Washington bridge, the approaches shall be between the bridge
and an extension of the building line on the northerly side of West One
hundred eightieth street. Except as so limited, the port authority may
effectuate such approaches, connections, highway extensions or highway
A. 6754 36
improvements as it shall deem necessary or desirable in relation to the
George Washington bridge, located in or extending across the counties in
which such bridge is located, and, in its discretion, may do so by
agreement with any other public agency; such agreement may provide for
the construction, ownership, maintenance or operation of such
approaches, connections or highway extensions or highway improvements by
such other public agency.
2. The port authority is hereby authorized and empowered, in its
discretion, to construct, own, maintain and operate in Washington
Heights in the borough of Manhattan, New York city, as an addition and
improvement to the vehicular bridge over the Hudson river at Fort Lee,
known as and hereinafter in this section referred to as the George Wash-
ington bridge, a bus passenger facility, by which is meant a facility
consisting of one or more buildings, structures, improvements, loading
or unloading areas, parking areas or other facilities necessary, conven-
ient or desirable in the opinion of the port authority for the accommo-
dation of omnibuses and other motor vehicles operated by carriers
engaged in the transportation of passengers, or for the loading, unload-
ing, interchange or transfer of such passengers or their baggage, or
otherwise for the accommodation, use or convenience of such passengers
or such carriers or their employees and for purposes incidental thereto.
3. Nothing herein contained shall be deemed to prevent the port
authority from establishing, levying and collecting tolls and other
charges in connection with such bus passenger facility in addition to
and other than the tolls or charges established, levied and collected in
connection with the George Washington bridge or any other bridge or
tunnel.
§ 304. Studies and reporting. The port authority shall from time to
time make studies, surveys and investigations to determine the necessity
and practicability of vehicular bridges and tunnels over or under inter-
state waters within the port of New York district, in addition to the
Midtown Hudson tunnel and Holland tunnel and to the George Washington
bridge, Goethals bridge, Outerbridge Crossing and Bayonne bridge, and
report to the governors and legislatures of the two states thereon. The
port authority shall not proceed with the construction of any such addi-
tional vehicular bridges and tunnels over or under said interstate
waters until hereafter expressly authorized by the two said states, but
the second deck of the George Washington bridge shall be considered an
addition and improvement to the said bridge and not such an additional
vehicular bridge, and the port authority's power and authorization to
construct, own, maintain and operate said second deck for highway vehic-
ular or rail rapid transit traffic or both is hereby acknowledged and
confirmed.
§ 305. Inspections. The port authority shall inspect bridges located
within the state of New York and under the authority's jurisdiction in
accordance with criteria established for other publicly-owned bridges
within the state.
§ 306. Construction, maintenance and operation. 1. The port authority
shall, so far as it deems it practicable, treat as a single unified
operation the construction, maintenance and operation of the said
Midtown Hudson tunnel, the Holland tunnel, the two vehicular bridges
over the Arthur Kill, the vehicular bridge over the Kill van Kull, the
vehicular bridge over the Hudson river at Fort Lee, and any other vehic-
ular bridges or tunnels which it may construct or operate, raising
moneys for the construction thereof and for the making of additions and
improvements thereto in whole or in part upon its own obligations, and
A. 6754 37
establishing and levying such tolls and other charges as it may deem
necessary to secure from all of such bridges and tunnels as a group, at
least sufficient revenue to meet the expenses of the construction, main-
tenance and operation of such bridges and tunnels as a group, and to
provide for the payment of the interest upon and amortization and
retirement of and the fulfillment of the terms of all bonds and other
securities and obligations which it may have issued or incurred in
connection therewith.
2. The additions and improvements to bridges and tunnels constructed
or operated by it which the port authority is hereby authorized to
effectuate shall include but not be limited to parking facilities, by
which is meant transportation facilities consisting of one or more
areas, buildings, structures, improvements, or other accommodations or
appurtenances necessary, convenient or desirable in the opinion of the
port authority for the parking or storage of motor vehicles of users of
such bridges and tunnels and other members of the general public and for
the transfer of the operators and passengers of such motor vehicles to
and from omnibuses and other motor vehicles operated by carriers over or
through such bridges or tunnels, and for purposes incidental thereto.
3. Nothing herein contained shall be deemed to prevent the port
authority from establishing, levying and collecting tolls and other
charges in connection with any parking facility in addition to and other
than the tolls or charges established, levied and collected in
connection with the bridge or tunnel to which such parking facility is
an addition and improvement or any other bridge or tunnel.
4. The port authority shall not proceed with the construction of any
parking facility as an addition and improvement to any bridge or tunnel
other than a parking facility in the township of North Bergen in the
state of New Jersey at or in the vicinity of the Midtown Hudson tunnel
and its approaches and connections, except as heretofore or hereafter
expressly authorized.
5. The plans of the connections with state or municipal highways of
any vehicular bridge or tunnel which the port authority may hereafter
construct (including the plans of any additional connections of existing
bridges or tunnels with state or municipal highways), shall be subject
to the approval of the governor of the state in which such connections
shall be located. Either state may require by appropriate legislation
that such connections shall be subject to the approval of the munici-
pality of that state in which they shall be located; and in such event,
the approval of such municipality shall be given as provided in subdivi-
sion two of section one hundred three of this article. Except as limit-
ed herein, the port authority shall determine all matters pertaining to
such bridges and tunnels.
6. The construction, maintenance and operation of vehicular bridges
and tunnels within the said port of New York district (including the
said Holland tunnel and the said Midtown Hudson tunnel), are and will be
in all respects for the benefit of the people of the states of New York
and New Jersey, for the increase of their commerce and prosperity and
for the improvement of their health and living conditions; and the port
authority shall be regarded as performing an essential governmental
function in undertaking the construction, maintenance and operation
thereof and in carrying out the provisions of law relating thereto, and
shall be required to pay no taxes or assessments upon any of the proper-
ty acquired or used by it for such purposes.
7. If for any of the purposes of this part (including temporary
construction purposes, and the making of additions or improvements to
A. 6754 38
bridges or tunnels already constructed), the port authority shall find
it necessary or convenient to acquire any real property as herein
defined, whether for immediate or future use, the port authority may
find and determine that such property, whether a fee simple absolute or
a lesser interest, is required for a public use, and upon such determi-
nation, the said property shall be and shall be deemed to be required
for such public use until otherwise determined by the port authority;
and with the exceptions hereinafter specifically noted, the said deter-
mination shall not be affected by the fact that such property has there-
tofore been taken for, or is then devoted to, a public use; but the
public use in the hands or under the control of the port authority shall
be deemed superior to the public use in the hands of any other person,
association or corporation.
8. The port authority may acquire and is hereby authorized to acquire
such property, whether a fee simple absolute or a lesser interest, by
the exercise of the right of eminent domain under and pursuant to the
provisions of the eminent domain procedure law of the state of New York,
in the case of property located in such state, and revised statutes of
New Jersey, Title 20:1-1 et seq., in the case of property located in
such state, or at the option of the port authority as provided in
section fifteen of chapter forty-three of the laws of New Jersey of
nineteen hundred forty-seven, as amended, for the condemnation of real
property for air terminal purposes, in the case of property located in
such state, or pursuant to such other and alternate procedure as may be
provided by law.
9. Where a person entitled to an award in the proceedings to acquire
any real property for any of the purposes of this part, remains in
possession of such property after the time of the vesting of title in
the port authority, the reasonable value of his use and occupancy of
such property subsequent to such time, as fixed by agreement or by the
court in such proceedings or by any court of competent jurisdiction,
shall be a lien against such award, subject only to liens of record at
the time of the vesting of title in the port authority.
10. Nothing herein contained shall be construed to prohibit the port
authority from bringing any proceedings to remove a cloud on title or
such other proceedings as it may, in its discretion, deem proper and
necessary, or from acquiring any such property by negotiation or
purchase.
11. Anything in this act to the contrary notwithstanding, no property
now or hereafter vested in or held by any county, city, borough,
village, township or other municipality shall be taken by the port
authority, without the authority or consent of such county, city,
borough, village, township or other municipality as provided in part one
of this article, provided that the state in which such county, city,
borough, village, township or other municipality is located may author-
ize such property to be taken by the port authority by condemnation or
the exercise of the right of eminent domain without such authority or
consent; nor shall anything herein impair or invalidate in any way any
bonded indebtedness of the state, or such county, city, borough,
village, township or other municipality, nor impair the provisions of
law regulating the payment into sinking funds of revenue derived from
municipal property, or dedicating the revenues derived from municipal
property, to a specific purpose. The port authority is hereby authorized
and empowered to acquire from any such county, city, borough, village,
township or other municipality, or from any other public agency or
commission having jurisdiction in the premises, by agreement therewith,
A. 6754 39
and such county, city, borough, village, township, municipality, public
agency or commission, notwithstanding any contrary provision of law, is
hereby authorized and empowered to grant and convey upon reasonable
terms and conditions, any real property, which may be necessary for the
construction, operation and maintenance of such bridges and tunnels,
including such real property as has already been devoted to a public
use. Each of the two said states hereby consent to the use and occupa-
tion of the real property of such state necessary for the construction,
operation and maintenance of bridges and tunnels constructed or operated
pursuant to the provisions of this part, including lands of the state
lying under water.
12. The port authority and its duly authorized agents and employees
may enter upon any land in this state for the purpose of making such
surveys, maps, or other examinations thereof as it may deem necessary or
convenient for the purposes of this part.
13. The term "real property" as used in this section is defined to
include lands, structures, franchises, and interests in land, including
lands under water and riparian rights, and any and all things and rights
usually included within the said term, and includes not only fees simple
absolute but also any and all lesser interests, such as easements,
rights of way, uses, leases, licenses and all other incorporeal heredi-
taments and every estate, interest or right, legal or equitable, includ-
ing terms of years, and liens thereon by way of judgments, mortgages or
otherwise, and also claims for damage to real estate.
14. Nothing herein contained shall be construed to authorize or permit
the port authority to undertake the construction of any vehicular bridge
or tunnel over or under the Arthur Kill, unless or until adequate
provision has been made by law for the protection of those advancing
money upon the obligations of the port authority for the construction of
the bridges mentioned in chapter two hundred and ten of the laws of
nineteen hundred twenty-five, or the construction of any vehicular
bridge or tunnel over or under the Hudson river, at or north of Sixtieth
street in the borough of Manhattan, city of New York, unless or until
adequate provision has been made by law for the protection of those
advancing money upon the obligations of the port authority for the
construction of the bridge mentioned in chapter seven hundred and
sixty-one of the laws of nineteen hundred twenty-six, or the
construction of any vehicular bridge or tunnel over or under the Kill
van Kull unless or until adequate provision has been made by law for the
protection of those advancing money upon the obligations of the port
authority for the construction of the bridge mentioned in chapter three
hundred of the laws of nineteen hundred twenty-seven.
§ 307. Rules and regulations relating to tunnels and bridges. 1. The
port authority is hereby authorized to make and enforce such rules and
regulations and to establish, levy and collect such tolls and other
charges in connection with any vehicular bridges and tunnels which it
may now or hereafter be authorized to own, construct, operate or control
(including the said Holland tunnel and the said Midtown Hudson tunnel),
as it may deem necessary, proper or desirable, which said tolls and
charges shall be at least sufficient to meet the expenses of the
construction, operation and maintenance thereof, and to provide for the
payment of, with interest upon, and the amortization and retirement of
bonds or other securities or obligations issued or incurred for bridge
or tunnel purposes. There shall be allocated to the cost of the
construction, operation and maintenance of such bridges and tunnels,
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such proportion of the general expenses of the port authority as it
shall deem properly chargeable thereto.
2. The moneys in the general reserve fund of the port authority
(authorized by chapter five of the laws of New Jersey of nineteen
hundred thirty-one, as amended, and chapter forty-eight of the laws of
New York of nineteen hundred thirty-one, as amended and continued by
part XXIX of this article) may be pledged in whole or in part by the
port authority as security for or applied by it to the repayment with
interest of any moneys which it may raise upon bonds or other securities
or obligations issued or incurred from time to time for any of the
purposes of this part or secured in whole or in part by the pledge of
the revenues of the port authority from any bridge or tunnel or both so
issued or incurred and so secured; and the moneys in said general
reserve fund may be applied by the port authority to the fulfillment of
any other undertakings which it may assume to or for the benefit of the
holders of any such bonds, securities or other obligations.
3. Subject to prior liens and pledges (and to the obligation of the
port authority to apply revenues to the maintenance of its general
reserve fund in the amount prescribed by the said statutes authorizing
said fund), the revenues of the port authority from facilities estab-
lished, constructed, acquired or effectuated through the issuance or
sale of bonds of the port authority secured by a pledge of its general
reserve fund may be pledged in whole or in part as security for or
applied by it to the repayment with interest of any moneys which it may
raise upon bonds or other securities or obligations issued or incurred
from time to time for any of the purposes of this part or secured in
whole or in part by the pledge of the revenues of the port authority
from any bridge or tunnel or both so issued or incurred and so secured,
and said revenues may be applied by the port authority to the fulfill-
ment of any other undertakings which it may assume to or for the benefit
of the holders of such bonds, securities or other obligations.
In the event that at any time the balance of moneys theretofore paid
into the general reserve fund and not applied therefrom shall exceed an
amount equal to one-tenth of the par value of all bonds legal for
investment, as defined and limited in the said statutes authorizing said
fund, issued by the port authority and currently outstanding at such
time, by reason of the retirement of bonds or other securities or obli-
gations issued or incurred from time to time for any of the purposes of
this part or secured in whole or in part by the pledge of the revenues
of the port authority from any bridge or tunnel or both so issued or
incurred and so secured, the par value of which had theretofore been
included in the computation of said one-tenth, then the port authority
may pledge or apply such excess for and only for the purposes for which
it is authorized by the said statutes authorizing said fund to pledge
the moneys in the general reserve fund and such pledge may be made in
advance of the time when such excess may occur.
§ 308. Bonds. 1. The two said states covenant and agree with each
other and with the holders of any bonds or other securities or obli-
gations of the port authority, issued or incurred for bridge or tunnel
purposes and as security for which there may or shall be pledged the
tolls and revenues or any part thereof of any vehicular bridge or tunnel
(including the said Holland tunnel and the said Midtown Hudson tunnel),
that the two said states will not, so long as any of such bonds or other
obligations remain outstanding and unpaid, diminish or impair the power
of the port authority to establish, levy and collect tolls and other
charges in connection therewith; and that the two said states will not,
A. 6754 41
so long as any of such bonds or other obligations remain outstanding and
unpaid, authorize the construction of any vehicular bridges or tunnels
over or under interstate waters as herein defined within the said port
of New York district, by any person or body other than the port authori-
ty, in competition with those whose tolls or other revenues are pledged
as aforesaid; provided that nothing herein contained shall be deemed to
refer to the bridge authorized by the act of congress of July eleven,
eighteen hundred ninety, chapter six hundred and sixty-nine, and acts
amendatory thereof and supplemental thereto; and provided further that
nothing herein contained shall preclude the authorization of the
construction of such competitive tunnels or bridges by other persons or
bodies if and when adequate provision shall be made by law for the
protection of those advancing money upon such obligations.
2. The bonds or other securities or obligations which may be issued or
incurred by the port authority pursuant to this part, or as security for
which there may be pledged the tolls and other revenues or any part
thereof of any vehicular bridge or tunnel (including the said Holland
tunnel and the said Midtown Hudson tunnel) now or hereafter authorized
by the two said states or both so issued or incurred and so secured, are
hereby made securities in which all state and municipal officers and
bodies, all banks, bankers, trust companies, savings banks, savings and
loan associations, investment companies and other persons carrying on a
banking business, all insurance companies, insurance associations and
other persons carrying on an insurance business, and all administrators,
executors, guardians, trustees and other fiduciaries and all other
persons whatsoever who are now or may hereafter be authorized to invest
in bonds or other obligations of the state, may properly and legally
invest any funds, including capital, belonging to them or within their
control; and said bonds or other securities or obligations are hereby
made securities which may properly and legally be deposited with and
shall be received by any state or municipal officer or agency for any
purpose for which the deposit of bonds or other obligations of this
state is now or may hereafter be authorized.
§ 309. Compact. 1. This section and the preceding sections of this
part, constitute an agreement between the states of New York and New
Jersey supplementary to the compact between the two states dated April
thirty, nineteen hundred twenty-one, and amendatory thereof, and shall
be liberally construed to effectuate the purposes of said compact and of
the comprehensive plan heretofore adopted by the two states, and any
powers granted to the port authority by this part shall be deemed to be
in aid of and supplementary to and in no case a limitation upon the
powers heretofore vested in the port authority by the two said states
and/or by congress, except as herein otherwise provided.
2. Any declarations contained in this part with respect to the govern-
mental nature of bridges and tunnels and to the exemption of bridge and
tunnel property from taxation and to the discretion of the port authori-
ty with respect to bridge and tunnel operations shall not be construed
to imply that other port authority property and operations are not of a
governmental nature, or that they are subject to taxation, or that the
determinations of the port authority with respect thereto are not
conclusive.
3. The powers vested in the port authority herein (including but not
limited to the powers to acquire real property by condemnation and to
make or effectuate additions, improvements, approaches and connections)
shall be continuing powers and no exercise thereof shall be deemed to
exhaust them or any of them.
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4. Nothing herein contained shall be construed to affect, diminish or
impair the rights and obligations created by, or to repeal any of the
provisions of chapter three hundred and fifty-two of the laws of New
Jersey of nineteen hundred twenty and chapter two hundred and sixty-two
of the laws of New Jersey of nineteen hundred twenty-four.
5. If, however, any loss shall be suffered by or accrue to the said
sinking fund, and if, after the making of the payment by the port
authority to the state of New Jersey as hereinbefore provided, the
moneys in the said sinking fund shall at any time be or become less than
an amount equal to the principal amount of the then currently outstand-
ing New Jersey Camden bridge-Holland tunnel bonds, or if the income and
interest currently received from or currently accruing upon the moneys
in the said sinking fund shall be or become insufficient to pay the
interest currently accruing upon or currently payable in connection with
the aforesaid New Jersey Camden bridge-Holland tunnel bonds, the state
of New Jersey represents and agrees that it will make good such deficits
out of sources other than revenues from the said Holland tunnel.
6. The said payment by the port authority to the state of New Jersey
constitutes repayment for all moneys contributed by the said state
toward the cost of construction of the said Holland tunnel, including
the moneys diverted and appropriated by chapter three hundred and nine-
teen of the laws of New Jersey of nineteen hundred twenty-six and chap-
ter fifty-eight of the laws of New Jersey of nineteen hundred twenty-
seven from the road fund, created by chapter fifteen of the laws of New
Jersey of nineteen hundred seventeen. The requirement of chapter fifty-
eight of the laws of New Jersey of nineteen hundred twenty-seven that
the said moneys diverted and appropriated by the said statutes of the
state of New Jersey shall be returned and credited to the said road
fund, with interest, shall be and shall be deemed to be satisfied and
discharged so far as it relates to the revenues arising from the opera-
tion of the said Holland tunnel.
7. The provisions of this section shall constitute a covenant and
agreement by the state of New York with the state of New Jersey, the
port authority and the holders of any bonds or other obligations of the
port authority, as security for which the tolls and revenues of said
Holland tunnel may be pledged.
8. Nothing herein contained shall be construed to impair in any way
the obligation of the port authority to repay to the two states any or
all advances made by them to the port authority in aid of bridge
construction.
PART IV
APPROVAL OR VETO POWER OF THE GOVERNOR
Section 401. Approval or veto power.
402. Procurement.
403. Effect of veto.
404. Exception to reporting requirement.
§ 401. Approval or veto power. Except as provided by this part, no
action taken at any meeting of the port authority by any commissioner
appointed from the state of New York shall have force or effect until
the governor of the state of New York shall have an opportunity to
approve or veto the same under the provisions of article sixteen of the
port compact or treaty entered into between the states of New York and
New Jersey, dated April thirtieth, nineteen hundred and twenty-one and
A. 6754 43
continued by subdivision four of section one hundred fifteen of this
article.
§ 402. Procurement. For the purpose of procuring such approval or
veto, the secretary or other officer of the port authority in charge of
the minutes of the proceedings of that body shall transmit to the gover-
nor at the executive chamber in Albany a certified copy of the minutes
of every meeting of the port authority as soon after the holding of such
meeting as such minutes can be written out. The governor shall, within
ten days, Saturdays, Sundays and public holidays excepted, after such
minutes shall have been delivered at the executive chamber as aforesaid,
cause the same to be returned to the port authority either with his
approval or with his veto of any action therein recited as having been
taken by any commissioner appointed from the state of New York,
provided, however, that if the governor shall not return the said
minutes within the said period then at the expiration thereof any action
therein recited will have full force and effect according to the wording
thereof.
§ 403. Effect of veto. If the governor within the said period returns
the said minutes with a veto against the action of any commissioner from
New York as recited therein, then such action of such commissioner shall
be null and void.
§ 404. Exception to reporting requirement. The governor may by order
filed with the secretary of the port authority relieve the commissioners
from the duty of procuring his approval of their action upon any partic-
ular matter or class of matters, and thereupon the secretary or other
officer in charge of the minutes of the proceedings of that body shall
be relieved from reporting the same to him.
PART V
MOTOR TRUCK TERMINALS
Section 501. Motor truck terminals.
502. Acquisition of real property for public use.
§ 501. Motor truck terminals. The bonds or other obligations which
may be issued by the port authority from time to time to provide funds
for the establishment, acquisition and rehabilitation of motor truck
terminals (by which are meant terminals consisting of one or more plat-
forms, sheds, buildings, structures, facilities or improvements neces-
sary, convenient or desirable in the opinion of the port authority for
the accommodation of motor trucks for the loading or unloading of
freight upon or from motor trucks or the receipt, delivery, storage or
handling of freight transported or to be transported by motor trucks or
the interchange or transfer thereof between carriers) located at such
point or points within the port of New York district as the port author-
ity may deem to be desirable and in the public interest, or for the
acquisition of real or personal property in connection therewith, or for
any other purpose in connection with the establishment, acquisition,
construction, rehabilitation, maintenance or operation of such truck
terminals or any of them, are hereby made securities in which all state
and municipal officers and bodies, all banks, bankers, trust companies,
savings banks, building and loan associations, savings and loan associ-
ations, investment companies and other persons carrying on a banking
business, all insurance companies, insurance associations, and other
persons carrying on an insurance business, and all administrators, exec-
utors, guardians, trustees and other fiduciaries, and all other persons
whatsoever, who are now or may hereafter be authorized to invest in
A. 6754 44
bonds or other obligations of the state, may properly and legally invest
any funds, including capital, belonging to them or within their control;
and said obligations are hereby made securities which may properly and
legally be deposited with and shall be received by any state or munici-
pal officer or agency for any purpose for which the deposit of bonds or
other obligations of this state is now or may hereafter be authorized.
§ 502. Acquisition of real property for public use. If, for the
purpose of effectuating, acquiring, constructing, rehabilitating or
improving any motor truck terminal, the port authority shall find it
necessary or convenient to acquire any real property, as herein defined
in this state, whether for immediate or future use, the port authority
may find and determine that such property, whether a fee simple absolute
or a lesser interest, is required for public use, and upon such determi-
nation, the said property shall be and shall be deemed to be required
for such public use until otherwise determined by the port authority.
If the port authority is unable to agree for the acquisition of any
such real property for any reason whatsoever, then the port authority
may acquire and is hereby authorized to acquire such property, whether a
fee simple absolute or a lesser interest, by the exercise of the right
of eminent domain under and pursuant to the provisions of the eminent
domain procedure law.
The power of the port authority to acquire real property hereunder
shall be a continuing power, and no exercise thereof shall be deemed to
exhaust it.
Anything in this part to the contrary notwithstanding, no property now
or hereafter vested in or held by the state or any county, city,
borough, village, township or other municipality shall be taken by the
port authority, without the authority or consent of the state or of such
county, city, borough, village, township or other municipality as
provided in the compact of April thirty, nineteen hundred twenty-one,
between the states of New York and New Jersey and continued by part I of
this article, nor shall anything herein impair or invalidate in any way
any bonded indebtedness of the state, or such county, city, borough,
village, township or other municipality, nor impair the provisions of
law regulating the payment into sinking funds of revenue derived from
municipal property, or dedicating the revenues derived from municipal
property, to a specific purpose. Moreover, no property devoted to
public use by any railroad or railway corporation, or public utility
corporation, or by any other corporation, shall be taken by the port
authority without the authority or consent of such corporation. The
port authority is hereby authorized and empowered to acquire from any
such county, city, borough, village, township or other municipality, or
from any other public agency or commission having jurisdiction in the
premises, or from any such corporation, by agreement therewith, and such
county, city, borough, village, township, municipality, public agency,
commission, or corporation, notwithstanding any contrary provision of
law, is hereby authorized and empowered to grant and convey upon reason-
able terms and conditions any real property, which may be necessary for
the establishment, construction, acquisition, rehabilitation, mainte-
nance and operation of such truck terminals, including such real proper-
ty as has already been devoted to a public use.
The port authority and its duly authorized agents and employees may,
in the case of land situate in the state of New York subject to the
provisions of the eminent domain procedure law and in any other case as
provided by law, enter upon any land in this state for the purpose of
A. 6754 45
making such surveys, maps, or other examinations thereof as it may deem
necessary or convenient for the purposes of this part.
The term "real property" as used in this part is defined to include
lands, structures, franchises and interests in land, including lands
under water and riparian rights, and any and all things and rights
usually included within the said term, and includes not only fees simple
absolute but also any and all lesser interests, such as easements,
rights of way, uses, leases, licenses and all other incorporeal heredi-
taments and every estate, interest or right, legal or equitable, includ-
ing terms of years, and liens thereon by way of judgments, mortgages or
otherwise, and also claims for damages to real estate.
PART VI
PAYMENT AND ACCEPTANCE OF A FAIR AND REASONABLE SUM
Section 601. Payment of a fair and reasonable sum.
602. Acceptance of payment.
§ 601. Payment of a fair and reasonable sum. To the end that counties,
cities, boroughs, villages, towns, townships and other municipalities in
the port of New York district, may not suffer undue loss of taxes and
assessments by reason of the acquisition and ownership of property ther-
ein by the port authority, the port authority is hereby authorized and
empowered, in its discretion, to enter into a voluntary agreement or
agreements with any county, city, borough, village, town, township or
other municipality in said port district, whereby it will undertake to
pay a fair and reasonable sum or sums annually in connection with any
marine or inland terminal property owned by it, not in excess of the sum
last paid as taxes upon such property prior to the time of its acquisi-
tion by the port authority. Such payment or payments which the port
authority is hereby authorized and empowered to make, shall be in such
amount or amounts and shall be payable at such time or times and under
such terms and conditions as shall be agreed upon by and between the
port authority and such county, city, village, borough, town, township
or other municipality concerned.
§ 602. Acceptance of payment. Every county, city, village, borough,
town, township or other municipality in the port of New York district
aforesaid is hereby authorized and empowered to enter into such agree-
ment or agreements with the port authority to accept the payment or
payments which the port authority is hereby authorized and empowered to
make. The sums so received by any county, city, village, borough, town,
township or other municipality shall be devoted to purposes to which
taxes may be applied, unless and until otherwise directed by the law of
the state in which such municipality is located.
PART VII
PAYMENT AND ACCEPTANCE OF A FAIR AND
REASONABLE SUM FOR A CHANGE IN GRADE
Section 701. Change of grade.
§ 701. Change of grade. To the end that the owners of property in the
port of New York district abutting upon streets, avenues or other high-
ways, the grade of which will be changed by reason of the construction
by the port authority of any public improvement in the port of New York
district, may not suffer undue loss and injury by reason of such change
of grade, the authority is hereby authorized and empowered, in its
discretion, to enter into voluntary agreements with such abutting owners
A. 6754 46
of property which is built upon or otherwise improved in conformity with
the grade of any street, avenue or other highway established by lawful
authority in the port of New York district, whereby it will undertake to
pay a fair and reasonable sum to such abutting owners for the damage
occasioned by such change of grade to the buildings and improvements on
such property. The term "owners" as used in this section shall include
all persons having any estate, interest, or easement in such property,
or any lien, charge or encumbrance thereon. Such payments which the
authority is hereby authorized and empowered to make, shall be in such
amounts and shall be payable at such times and under such terms and
conditions as shall be agreed upon by and between the authority and such
owners concerned.
PART VIII
THE SALE OF REAL PROPERTY ACQUIRED BY THE PORT AUTHORITY
Section 801. Procedure.
802. Conveyances.
§ 801. Procedure. Whenever the port authority shall determine to sell
any real property which may have been acquired by the port authority by
purchase, condemnation or otherwise, pursuant to any of its powers and
authorities, but which real property is no longer required for such
purposes, the following procedure shall be followed:
1. A map shall be made of such real property so determined as no long-
er required, which map shall be filed in the office of the port authori-
ty.
2. There shall be annexed to such map a certificate executed by the
chief engineer of the port authority stating that such real property is
no longer required for such purposes.
3. All or any portion of said real property may be sold at either
private or public sale, and all deeds of conveyance therefor shall be by
bargain and sale and shall be executed by the chairman, or the vice
chairman, or the general manager, or an assistant general manager of the
port authority and attested by the secretary thereof.
§ 802. Conveyances. The validity of all conveyances heretofore made by
the port authority is hereby ratified and confirmed.
PART IX
MONEYS FOR PRELIMINARY STUDIES
Section 901. Moneys advanced.
902. Delivery of bonds and/or moneys.
903. Direct and general obligations of the port authority.
904. Securities.
905. Initial reimbursement of moneys advanced by the states.
906. Further reimbursement of moneys advanced by the states.
907. Deposit of bonds or moneys by the comptroller.
§ 901. Moneys advanced. The states of New York and New Jersey having
heretofore advanced sums aggregating one hundred forty-nine thousand,
nine hundred eighteen dollars and twenty cents and one hundred fifty
thousand dollars, respectively, to the port authority for preliminary
studies upon the interstate vehicular bridges now known as the Outer-
bridge crossing, the Goethals bridge and the Bayonne bridge, pursuant to
agreements between the two states that said moneys should be paid back
when the construction debt has been amortized, and said two states
having advanced further sums aggregating four million dollars each in
A. 6754 47
aid of the construction of said bridges pursuant to agreements between
the two states that said moneys should be paid back out of bridge reven-
ues in specified annual installments, if and when earned over prior
charges, and the revenues from said bridges having been insufficient to
permit any such payments up to the present time but the port authority
being in a position to fund its obligations to pay back said appropri-
ations, now, therefore, upon the concurrence of the state of New Jersey
as provided in section eight hereof, the states of New York and New
Jersey hereby agree that the obligations of the port authority to pay
back said moneys may be satisfied and discharged by the delivery to the
two states of bonds or moneys, or both, in an aggregate principal amount
equal to said appropriations, as hereinafter provided.
§ 902. Delivery of bonds and/or moneys. Bonds, or moneys, or both, in
an aggregate principal amount of two million fifty thousand dollars
shall be delivered to each state within three months after the date on
which chapter three hundred fifty-two of the laws of nineteen hundred
forty-six and the concurrent article of the state of New Jersey take
effect. Within fifteen months after the date on which chapter three
hundred fifty-two of the laws of nineteen hundred forty-six and the
concurrent article of the state of New Jersey take effect, an additional
two million ninety-nine thousand nine hundred eighteen dollars and twen-
ty cents in aggregate principal amount of bonds or moneys, or both,
shall be delivered to the state of New York and an additional two
million one hundred thousand dollars in aggregate principal amount of
bonds, or moneys, or both shall be delivered to the state of New Jersey
provided, that if, in the opinion of the commissioners of the port
authority, financial conditions are such as to make it desirable to
postpone such delivery, then delivery of said additional amounts shall
be postponed in whole or in part until such time, not later than five
years from the effective date of chapter three hundred fifty-two of the
laws of nineteen hundred forty-six, as in the judgment of said commis-
sioners financial conditions permit such delivery.
The port authority shall determine whether payments made pursuant to
this part and the concurrent article of the state of New Jersey shall be
made by delivery of bonds or of moneys, or both, and, if both, in what
proportions. The moneys may, at the option of the port authority, be
paid in cash or by check. Delivery of bonds or moneys to the state of
New York shall be made by delivering or tendering delivery thereof to
the comptroller of the state of New York at his office at Albany during
regular business hours. Delivery of bonds or moneys to the state of New
Jersey shall be made by delivering or tendering delivery thereof to the
state treasurer at his office at Trenton during regular business hours.
§ 903. Direct and general obligations of the port authority. The
bonds delivered to the two states pursuant to this part and the concur-
rent article of the state of New Jersey shall be direct and general
obligations of the port authority, and its full faith and credit shall
be pledged for the prompt payment of the principal and interest thereof.
The payment of the principal and interest thereof shall be secured by
the general reserve fund of the port authority, authorized by chapter
forty-eight of the laws of New York of nineteen hundred and thirty-one
and continued by part XXIX of this article, and chapter five of the laws
of New Jersey of nineteen hundred and thirty-one; and said general
reserve fund shall be pledged as security for the payment of the princi-
pal and interest of said bonds and for the fulfillment of other under-
takings assumed by the port authority to or for the benefit of the hold-
ers of said bonds. Such pledge, however, shall be subject to the right
A. 6754 48
of the port authority to pledge said general reserve fund as security
for any other bonds, notes or evidences of indebtedness whatsoever here-
after issued by the authority as security for which it may at the time
be authorized to pledge the said general reserve fund, and also subject
to the right of the port authority to use the moneys in said general
reserve fund to meet, pay or otherwise fulfill any of its obligations
under or in connection with any bonds, notes or other evidences of
indebtedness as security for which said general reserve fund has hereto-
fore been or is now pledged or for which said general reserve fund may
hereafter be pledged. Moreover, no greater rights in or to said general
reserve fund shall be granted to or conferred upon the holders of the
bonds delivered to the two states pursuant to this part and the concur-
rent article of the state of New Jersey than have been granted to and
conferred upon the holders of general and refunding bonds of the port
authority issued pursuant to the resolution of the port authority
adopted March eighteenth, nineteen hundred and thirty-five, and amended
March twenty-fifth, nineteen hundred and thirty-five and September
sixteenth, nineteen hundred and forty-three.
The bonds delivered to the two states pursuant to chapter three
hundred fifty-two of the laws of nineteen hundred forty-six and contin-
ued by this part and the concurrent article of the state of New Jersey
shall be dated as of a date not more than thirty days subsequent to the
date on which delivery is made or tendered, shall mature forty years
from their date, and shall bear interest at the rate of one and one-half
per centum per annum. Said bonds shall be subject to redemption at the
option of the port authority, in whole or in part, on any interest
payment date or dates at one hundred percent of their par value, plus
accrued interest to the date set for redemption.
Except as hereinbefore specifically provided, the port authority
shall, by resolution, determine the form, characteristics and all other
matters in connection with said bonds, including without limiting the
generality hereof, the denominations in which they shall be issued,
provisions with respect to the exchange of bonds of one denomination
into bonds of another denomination, provisions with respect to the issu-
ance of temporary bonds and the exchange thereof for definitive bonds,
provisions with respect to the establishment of a sinking fund or sink-
ing funds and for the use of the moneys in sinking fund to purchase or
redeem bonds prior to their maturity, provisions with respect to the
place of payment, provisions with respect to notice of redemption,
provisions with respect to the paying agent or the registrar and
provisions with respect to the method of signature.
§ 904. Securities. The bonds delivered by the port authority to
either or both states pursuant to this part and the concurrent article
of the state of New Jersey, and any bonds, notes or other evidences of
indebtedness issued by the authority to provide moneys with which to
make payments to either or both states pursuant to this part and the
concurrent article of the state of New Jersey, are hereby made securi-
ties in which all state and municipal officers and bodies of both
states, all banks, bankers, trust companies, savings banks, building and
loan associations, savings and loan associations, investment companies
and other persons carrying on a banking business, all insurance compa-
nies, insurance associations and other persons carrying on an insurance
business, and all administrators, executors, guardians, trustees and
other fiduciaries, and all other persons whatsoever, who are now or may
hereafter be authorized by either state to invest in bonds or other
obligations of such state, may properly and legally invest any funds,
A. 6754 49
including capital, belonging to them or within their control; and said
obligations are hereby made securities which may properly and legally be
deposited with and shall be received by any state or municipal officer
or agency of either state for any purpose for which the deposit of bonds
or other obligations of such state is now or may hereafter be author-
ized.
§ 905. Initial reimbursement of moneys advanced by the states. The
first two million fifty thousand dollars paid to each state pursuant to
this part and the concurrent article of the state of New Jersey shall be
deemed to be on account of the moneys advanced by such state for prelim-
inary studies upon and in aid of the construction of the Bayonne bridge
(formerly known as the Kill von Kull bridge); and from and after the
date on which the port authority shall have delivered to each state
pursuant to this part and the concurrent article of the state of New
Jersey, bonds or moneys or both in the aggregate principal amount of two
million fifty thousand dollars, the duty and obligation of the port
authority to pay back to the two states the moneys advanced for prelimi-
nary studies upon and in aid of the construction of said bridge by chap-
ter two hundred seventy-nine of the laws of New York of nineteen hundred
and twenty-six, chapter ninety-seven of the laws of New Jersey of nine-
teen hundred and twenty-five, chapter three hundred of the laws of New
York of nineteen hundred and twenty-seven and chapter three of the laws
of New Jersey of nineteen hundred and twenty-seven, together with the
claims of the two states and of each of them for such repayment, shall
be and shall be deemed to be fully satisfied and discharged, and any
lien or claim of the two states or either of them upon the tolls and
revenues of the said bridge arising out of, under or because of the
aforesaid statutes shall be and shall be deemed to be void and without
force or effect.
§ 906. Further reimbursement of moneys advanced by the states. After
the payment of the first two million fifty thousand dollars to each
state, the further amounts paid to each state pursuant to this part and
the concurrent article of the state of New Jersey shall be deemed to be
on account of the moneys advanced by such state for preliminary studies
upon and in aid of the construction of the Outerbridge crossing (former-
ly known as the Perth Amboy-Tottenville bridge) and the Goethals bridge
(formerly known as the Elizabeth-Howland Hook bridge); and from and
after the date on which pursuant to this part and the concurrent article
of the state of New Jersey the port authority shall have delivered bonds
or moneys, or both, to the state of New York in the aggregate principal
amount of two million ninety-nine thousand nine hundred eighteen dollars
and twenty cents and to the state of New Jersey in the aggregate princi-
pal amount of two million one hundred thousand dollars, in each case in
addition to the first two million fifty thousand dollars paid to such
state under and pursuant to this part and the concurrent article of the
state of New Jersey, then the duty and obligation of the port authority
to pay back to the two states the moneys advanced for preliminary
studies upon and in aid of the construction of said two bridges by chap-
ters one hundred eighty-six and two hundred thirty of the laws of New
York of nineteen hundred twenty-four, chapters one hundred twenty-five
and one hundred forty-nine of the laws of New Jersey of nineteen hundred
twenty-four, chapter two hundred ten of the laws of New York of nineteen
hundred twenty-five and chapter thirty-seven of the laws of New Jersey
of nineteen hundred twenty-five, together with the claims of the two
states and of each of them for such repayment, shall be and shall be
deemed to be fully satisfied and discharged, and any lien or claim of
A. 6754 50
the two states or either of them upon the tolls and revenues of said
bridges arising out of, under or because of the aforesaid statutes shall
be and shall be deemed to be void and without force or effect.
§ 907. Deposit of bonds or moneys by the comptroller. All bonds or
moneys, or both, delivered by the port authority to the comptroller of
the state of New York pursuant to this part shall be deposited by him in
the post-war reconstruction fund in the state treasury.
PART X
MOTOR BUS TERMINAL
Section 1001. Establishment.
1002. Funding.
1003. Maintenance and operation.
1004. Powers.
1005. Acquisition of real property.
§ 1001. Establishment. Upon the concurrence of the state of New
Jersey, the states of New York and New Jersey hereby agree that the
moneys in the general reserve fund of the port authority, authorized by
chapter forty-eight of the laws of New York of one thousand nine hundred
thirty-one and chapter five of the laws of New Jersey of one thousand
nine hundred thirty-one, as amended, may be pledged in whole or in part
by the port authority as security for or applied by it to the repayment
with interest of any moneys which it may raise upon bonds, notes or
other obligations or evidences of indebtedness, issued by it from time
to time to provide funds for the establishment, acquisition or rehabili-
tation of a motor bus terminal (by which is meant a terminal consisting
of one or more buildings, structures, improvements, loading or unloading
areas, parking areas or other facilities, necessary, convenient or
desirable in the opinion of the port authority for the accommodation of
omnibuses and other motor vehicles operated by carriers engaged in the
transportation of passengers, or for the loading, unloading, interchange
or transfer of such passengers or their baggage, or otherwise for the
accommodation, use or convenience of such passengers or such carriers or
their employees) or for purposes incidental thereto; and that the
moneys in said general reserve fund may be applied by the port authority
to the fulfillment of any other undertakings which it may assume to or
for the benefit of the holders of any of such bonds; and the two said
states further agree that the port authority may acquire by condemnation
or the right of eminent domain such real property in each state as it
may from time to time deem necessary for or in connection with the
establishment, acquisition and rehabilitation of such motor bus termi-
nal.
§ 1002. Funding. The bonds, notes or other obligations or evidences
of indebtedness issued by the port authority to provide funds for the
establishment, acquisition and rehabilitation of such motor bus terminal
are hereby made securities in which all state and municipal officers and
bodies of both states, all banks, bankers, trust companies, savings
banks, building and loan associations, savings and loan associations,
investment companies and other persons carrying on a banking business,
all insurance companies, insurance associations and other persons carry-
ing on an insurance business, and all administrators, executors, guardi-
ans, trustees and other fiduciaries, and all other persons whatsoever,
who are now or may hereafter be authorized by either state to invest in
bonds or other obligations of such state, may properly and legally
invest any funds, including capital, belonging to them or within their
A. 6754 51
control; and said obligations are hereby made securities which may prop-
erly and legally be deposited with and shall be received by any state or
municipal officer or agency of either state for any purpose for which
the deposit of bonds or other obligations of such state is now or may
hereafter be authorized.
§ 1003. Maintenance and operation. The establishment, maintenance and
operation of such motor bus terminal within the port of New York
district is and will be in all respects for the benefit of the people of
the states of New York and New Jersey, for the increase of their
commerce and prosperity and for the improvement of their health and
living conditions; and the port authority shall be regarded as perform-
ing an essential governmental function in undertaking the construction,
maintenance and operation thereof and in carrying out the provisions of
law relating thereto.
§ 1004. Powers. Any powers granted to the port authority by this part
and the concurrent act of the state of New Jersey shall be regarded as
in aid of and supplemental to and in no sense as a limitation upon any
of the other powers vested in it by the two states or either of them;
and the port authority shall be authorized not only to establish,
acquire, rehabilitate, maintain, operate and from time to time improve
such motor bus terminal, but also to make incidental uses of properties
acquired for or in connection with such motor bus terminal.
§ 1005. Acquisition of real property. If, for the purpose of effectu-
ating, acquiring, constructing, rehabilitating or improving such motor
bus terminal, the port authority shall find it necessary or convenient
to acquire any real property, as herein defined, in this state, whether
for immediate or future use, the port authority may find and determine
that such property, whether a fee simple absolute or a lesser interest,
is required for public use, and upon such determination, the said prop-
erty shall be and shall be deemed to be required for such public use
until otherwise determined by the port authority; and with the
exceptions hereinafter specifically noted, the said determination shall
not be affected by the fact that such property has theretofore been
taken for, or is then devoted to, a public use; but the public use in
the hands or under the control of the port authority shall be deemed
superior to the public use in the hands of any other person, association
or corporation.
If the port authority is unable to agree for the acquisition of any
such real property for any reason whatsoever, then the port authority
may acquire and is hereby authorized to acquire such property whether a
fee simple absolute or a lesser interest, by the exercise of the right
of eminent domain under and pursuant to the provisions of the eminent
domain procedure law.
Anything in this part to the contrary notwithstanding, no property now
or hereafter vested in or held by the state or any county, city,
borough, village, township or other municipality shall be taken by the
port authority, without the authority or consent of the state or of such
county, city, borough, village, township, or other municipality as
provided in the compact of April thirtieth, nineteen hundred twenty-one
and continued by part I of this article, between the states of New York
and New Jersey, nor shall anything herein impair or invalidate in any
way any bonded indebtedness of the state, or such county, city, borough,
village, township or other municipality, nor impair the provisions of
law regulating the payment into sinking funds of revenue derived from
municipal property, or dedicating the revenues derived from municipal
property to a specific purpose. The port authority is hereby authorized
A. 6754 52
and empowered to acquire from any such county, city, borough, village,
township or other municipality, or from any other public agency or
commission having jurisdiction in the premises, by agreement therewith,
and such county, city, borough, village, township, municipality, public
agency or commission, notwithstanding any contrary provision of law, is
hereby authorized and empowered to grant and convey upon reasonable
terms and conditions, any real property, which may be necessary for the
establishment, construction, acquisition, rehabilitation, operation and
maintenance of such motor bus terminal, including such real property as
has already been devoted to a public use.
The port authority and its duly authorized agents and employees may
pursuant to the provisions of the eminent domain procedure law enter
upon any land in this state for the purpose of making such surveys,
maps, or other examination thereof as it may deem necessary or conven-
ient for the purposes of this part.
The term "real property" as used in this part is defined to include
lands, structures, franchises and interests in land, including lands
under water and riparian rights, and any and all things and rights
usually included within the said term, and includes not only fees simple
absolute but also any and all lesser interests, such as easements,
rights of way, uses, leases, licenses and all other incorporeal heredi-
taments and every estate, interest or right, legal or equitable, includ-
ing terms of years, and liens thereon by way of judgments, mortgages or
otherwise, and also claims for damages to real estate.
PART XI
MARINE TERMINALS
Section 1101. Authorization.
1102. Restrictions.
1103. Definitions.
1104. Municipality consent; legal process.
1105. Agreement between the states.
1106. Acquisition of land by eminent domain or condemnation.
1107. Unappropriated lands.
1108. Funding; bonds.
§ 1101. Authorization. Upon the concurrence of the state of New
Jersey, the states of New York and New Jersey hereby agree that munici-
palities, as hereinafter defined, located within the Port of New York
district shall be and they hereby are authorized to cooperate with the
Port Authority in the development of marine terminals, and the two said
states further agree that the state of New Jersey may authorize the Port
Authority to acquire by condemnation or the exercise of the right of
eminent domain real property in the state of New Jersey necessary,
convenient or desirable for marine terminal purposes, under and pursuant
to the revised statutes of New Jersey, title 20:1-1, et. seq., or at the
option of the Port Authority, pursuant to such other or alternate proce-
dure as may be provided by law by such state, and that the state of New
York may authorize the Port Authority to acquire real property in the
state of New York necessary, convenient or desirable for marine terminal
purposes, under and pursuant to the eminent domain procedure law of that
state, or at the option of the Port Authority pursuant to such other or
alternate procedure as may be provided by law by such state.
§ 1102. Restrictions. Nothing herein contained shall be construed to
authorize the Port Authority to acquire any marine terminal owned or
operated by any municipality or any other property now or hereafter
A. 6754 53
vested in or held by any municipality, without the authority or consent
of such municipality as provided in the compact of April thirtieth,
nineteen hundred twenty-one and continued by part I of this article,
between the states of New York and New Jersey, nor shall anything herein
impair or invalidate in any way any bonded indebtedness of the state, or
any municipality, nor impair the provisions of law regulating the
payment into sinking funds of revenue derived from municipal property,
or dedicating the revenues derived from municipal property to a specific
purpose.
§ 1103. Definitions. The following terms as used herein shall mean:
1. "Marine terminals" shall mean developments, consisting of one or
more piers, wharves, docks, bulkheads, slips, basins, vehicular road-
ways, railroad connections, side tracks, sidings or other buildings,
structures, facilities or improvements, necessary or convenient to the
accommodation of steamships or other vessels and their cargoes or
passengers and shall also mean waterfront development projects. It
shall also include such highway projects in the vicinity of a marine
terminal providing improved access to such marine terminal as shall be
designated in legislation adopted by the two states. Notwithstanding any
contrary provision of law, general, special or local, it shall also mean
railroad freight projects related or of benefit to a marine terminal or
which are necessary, convenient or desirable in the opinion of the port
authority for the protection or promotion of the commerce of the port
district, consisting of railroad freight transportation facilities or
railroad freight terminal facilities; and any equipment, improvement,
structure or facility or any land, and any building, structure, facility
or other improvement thereon, or any combination thereof, and all real
and personal property in connection therewith or incidental thereto,
deemed necessary or desirable in the opinion of the port authority,
whether or not now in existence or under construction, for the undertak-
ing of such railroad freight projects.
2. "Marine terminal purposes" shall mean the effectuation, establish-
ment, acquisition, construction, rehabilitation, improvement, mainte-
nance or operation of marine terminals.
3. "Municipality" shall mean a county, city, borough, village, town-
ship, town, public agency, public authority or political subdivision.
4. "Real property" shall mean lands, structures, franchises and inter-
ests in land, including waters, lands under water and riparian rights,
and any and all things and rights usually included within the said term,
and includes not only fees simple absolute but also any and all lesser
interests, including but not limited to easements, rights-of-way, uses,
leases, licenses and all other incorporeal hereditaments and every
estate, interest or right, legal or equitable, including terms for years
and liens thereon by way or judgments, mortgages or otherwise.
5. "Waterfront development projects" shall mean projects for the revi-
talization and economic development of waterfront property which is (a)
not in use for the handling of water-borne cargoes, or (b) directly or
indirectly related to the water-borne movement of passengers and their
vehicles. Such projects shall include but not be limited to hotels,
marinas, commercial offices, including the installation of a fiber optic
cable within its boundaries, or facilities which serve conference,
convention, recreation or entertainment purposes or are retail service
establishments, parking, technical, satellite antenna, similar communi-
cation or other facilities related to any of the foregoing and associ-
ated improvements necessary to provide public access to such waterfront
development projects. Notwithstanding the above, a waterfront develop-
A. 6754 54
ment project authorized by this part shall not contain any technical,
satellite antenna or similar telecommunications facility unless such
facility is directly used by, and for the sole benefit of, end users
located on the site of the project. Furthermore, no port authority money
shall be used directly or indirectly in the financing or construction of
said telecommunications facility.
§ 1104. Municipality consent; legal process. 1. Notwithstanding any
contrary provision of law, any municipality located within the Port of
New York district is authorized and empowered to consent to the use by
the Port Authority of any marine terminal owned by such municipality or
of any real or personal property owned by such municipality and neces-
sary, convenient or desirable in the opinion of the Port Authority for
marine terminal purposes, including such real property as has already
been devoted to a public use, and as an incident to such consent, to
grant, convey, lease or otherwise transfer to the Port Authority any
such marine terminal or real or personal property, upon such terms as
may be determined by the Port Authority and such municipality. Every
such municipality is also authorized and empowered to vest in the Port
Authority the control, operation, maintenance, rents, tolls, charges and
any and all other revenues of any marine terminal now owned by such
municipality, the title to such marine terminal remaining in such muni-
cipality. Such consent shall be given, and the execution of any agree-
ment, deed, lease, conveyance or other instrument evidencing such
consent or given as an incident thereto shall be authorized in the
manner provided in article twenty-two of the compact of April thirtieth,
nineteen hundred twenty-one between the two states creating the Port
Authority and continued by subdivision two of section one hundred three
of this article.
2. The states of New York and New Jersey hereby consent to suits,
actions or proceedings of any form or nature in law, equity or otherwise
by any municipality against the Port Authority upon, in connection with
or arising out of any such agreement, agreements or any modification
thereof or supplement thereto, for the following types of relief and for
such purposes only:
(a) for money damages for breach thereof;
(b) for money damages for torts arising out of the operation of the
municipal marine terminal;
(c) for rent;
(d) for specific performance;
(e) for reformation thereof;
(f) for an accounting;
(g) For declaratory judgment;
(h) for judgments, orders or decrees restraining or enjoining the Port
Authority from transferring title to real property to third persons in
cases where it has contracted with such municipality to transfer such
title to such municipality; and
(i) for judgments, orders or decrees restraining or enjoining the Port
Authority from committing or continuing to commit other breaches of such
agreements with such municipality, provided that such judgment, order or
decree shall not be entered except upon two days' prior written notice
to the Port Authority of the proposed entry thereof and provided
further, that upon an appeal taken by the Port Authority from such judg-
ment, order or decree the service of the notice of appeal shall perfect
the appeal and shall stay the execution of such judgment, order or
decree appealed from, without an undertaking or other security.
A. 6754 55
3. When rules of venue are applicable, the venue of any such suit,
action or proceeding shall be laid in the county or judicial district in
which the marine terminal, which is the subject matter of such agreement
between the Port Authority and such municipality, or any part thereof,
is located.
4. If any clause, sentence, paragraph, or part of this subdivision or
the application thereof to any person or circumstances, shall, for any
reason, be adjudged by a court of competent jurisdiction to be invalid,
such judgment shall not affect, impair, or invalidate the remainder of
this subdivision, and the application thereof to any other person or
circumstances, but shall be confined in its operation to the clause,
sentence, paragraph or part thereof directly involved in the controversy
in which such judgment shall have been rendered and to the person or
circumstances involved.
§ 1105. Agreement between the states. This section and the preceding
sections hereof constitute an agreement between the states of New York
and New Jersey supplementary to the compact between the two states dated
April thirtieth, nineteen hundred twenty-one, and amendatory thereof and
continued by part I of this article and shall be liberally construed to
effectuate the purposes of said compact and of the comprehensive plan
heretofore adopted by the two states pursuant thereto, and the powers
vested in the Port Authority hereby shall be construed to be in aid of
and supplemental to and not in limitation or derogation of any of the
powers heretofore conferred upon or delegated to the Port Authority.
§ 1106. Acquisition of land by eminent domain or condemnation.
Subject to the limitation provided for in section eleven hundred two of
this part that the Port Authority may not acquire any marine terminal
owned or operated by any municipality or any other property vested in or
held by any municipality without the authority or consent of such muni-
cipality, the Port Authority may, at its option, exercise the right of
eminent domain or condemnation to acquire real property in the state of
New York for marine terminal purposes as set forth in this section:
1. If for any of the purposes of this part (including temporary
construction purposes, and the making of additions, extensions, or
improvements to marine terminals already constructed) the Port Authority
shall find it necessary, convenient or desirable to acquire any real
property as herein defined, whether for immediate or future use, the
Port Authority may find and determine that such property, whether a fee
simple absolute or a lesser interest, is required for a public use, and
upon such determination, the said real property shall be and shall be
deemed to be required for such public use until otherwise determined by
the Port Authority; and, subject to the limitation hereinbefore specif-
ically noted, the said determination shall not be affected by the fact
that such property has theretofore been taken for, or is then devoted
to, a public use; but the public use in the hands or under the control
of the Port Authority shall be deemed superior to the public use in the
hands of any other person, association or corporation, provided, howev-
er, that nothing herein contained shall be construed to permit the
taking by exercise of the right of eminent domain by the Port Authority
of any property owned by any railroad or railway corporation and devoted
to use by such corporation in its operations, or acquired prior to the
effective date of this part and held for such use, without the authority
or consent of such corporation.
The Port Authority may acquire and is hereby authorized to acquire
such property, whether a fee simple absolute or a lesser interest, by
A. 6754 56
the exercise of the right of eminent domain under and pursuant to the
provisions of the eminent domain procedure law of the state of New York.
2. Unless and until the state of New York otherwise provides by law,
the Port Authority shall not have the power to acquire real property in
the state of New York for marine terminal purposes by condemnation or
the right of eminent domain except for real property within the two
tracts in the borough of Brooklyn, county of Kings, city and state of
New York, hereinafter bounded and described, necessary, convenient or
desirable, in the opinion of the Port Authority, for the purpose of
making additions, extensions or improvements to the Port Authority
marine terminal known as the Brooklyn-Port Authority piers:
(a) TRACT I
BEGINNING at a point formed by the intersection of the centerline of
Fulton Street and the centerline of Furman Street running thence (1)
southwesterly along the centerline of Furman Street to the northeasterly
side of Joralemon Street; thence (2) northwesterly along the northeast-
erly side of Joralemon Street three hundred twenty five and twenty-five
one hundredths feet more or less, to the point of intersection of said
northeasterly side of Joralemon Street with the southeasterly boundary
of the land granted by the people of the state of New York to New York
Dock Company by grant dated April 1, 1902 and recorded in the office of
the Regster of Kings county on April 19, 1902 in liber 16, section 1 of
conveyances, page 52; thence (3) southwesterly along said southeasterly
boundary of the grant to New York Dock Company thirty feet to the point
of intersection of said southeasterly boundary of the grant to New York
Dock Company with the northeasterly boundary of the grant made by the
people of the state of New York to John Schenck and others dated August
2, 1851 and recorded in the office of the Register of Kings county in
liber 532 of conveyances at page 310; thence (4) northwesterly along the
northeasterly boundary line of said grant to Schenck and others, forty-
three and eighty-nine one-hundredths feet to the point of intersection
of said course number (4) with a line drawn parallel with and distant
one and eighty-five one-hundredths feet northwesterly from the northwes-
terly boundary (or a northeasterly projection of said boundary) of lands
conveyed by New York Dock Company to New York Dock Trade Facilities
Corporation by deed dated August 1, 1928 and recorded in the office of
the Register of Kings county in liber 4957 of conveyances at page 239;
thence (5) southwesterly along said line above-mentioned parallel with
the northwesterly boundary (or a northeasterly projection of said bound-
ary) of said lands conveyed to New York Dock Trade Facilities Corpo-
ration, thirty-three and seventy one-hundredths feet to the point of
intersection of said course number (5) with the southwesterly face of
the column standing at the northwesterly corner of the building known as
the Trade Facilities Building; thence (6) southeasterly at right angles
to said course no. (5) along the southwesterly face of the above-men-
tioned column, one and eighty-five one-hundredths feet to the point of
intersection of said course number (6) with the northwesterly boundary
of the above-mentioned lands conveyed by New York Dock Company to New
York Dock Trade Facilities Corporation; thence (7) southwesterly along
said northwesterly boundary of lands conveyed to New York Dock Trade
Facilities Corporation, three hundred sixty-nine and seventy one-hun-
dredths feet, to the point of intersection of said course number (7)
with the southwesterly boundary of lands granted by the people of the
state of New York to Harriet D. Talmage by grant dated August 2, 1851
and recorded in the office of the Register of Kings county in liber 4937
of conveyances at page 185; thence (8) northwesterly along said south-
A. 6754 57
westerly boundary of the land of Harriet D. Talmage and along the south-
westerly boundary of grant made by the people of the state of New York
to Franklin Woodruff by deed dated November 22, 1881 and recorded in the
office of the Register of Kings county in liber 1445 of conveyances at
page 247; and along the southwesterly boundary line of lands granted by
the people of the state of New York to New York Dock Company by grant
dated April 1, 1902 and recorded in the office of the Register of Kings
county in liber 16, section 1 of conveyances, page 52, for a total
distance of seven hundred sixty-six and seventeen one-hundredths feet,
more or less, as measured along said southwesterly boundary lines of the
aforesaid grants to the point of intersection of said southwesterly
boundary line of lands granted to New York Dock Company by grants dated
April 1, 1902 and November 14, 1907 with the exterior pierhead line
established by the New York Harbor Line Board on November 4, 1897 and
confirmed by chapter 776 of the laws of 1900; thence (9) northeasterly
along said exterior pierhead line to the intersection thereof with the
centerline of Fulton Street projected westerly; thence (10) southeaster-
ly along the centerline of Fulton Street as projected to the inter-
section thereof with the centerline of Furman Street at the point or
place of beginning.
(b) TRACT II
BEGINNING at a point formed by the intersection of the southerly line
of Atlantic Avenue and the centerline of Columbia Street running thence
(1) southwesterly along the centerline of Columbia Street to the inter-
section thereof with the centerline of Kane Street; thence (2)
northwesterly along the centerline of Kane Street to the intersection
thereof with the centerline of Van Brunt Street; thence (3) southwes-
terly along the centerline of Van Brunt Street to the intersection ther-
eof with the centerline of Summit Street; thence (4) northwesterly
along the centerline of Summit Street to the intersection thereof with
the centerline of Imlay Street; thence (5) southwesterly along the
centerline of Imlay Street to a point where said centerline of Imlay
Street intersects the centerline of Bowne Street (sixty feet wide)
projected northwesterly across Imlay Street and the line of lands
conveyed by New York Dock Company to Imlay Corporation by deed dated
July 28, 1950; thence (6) northwesterly along said centerline of Bowne
Street projected northwesterly from the centerline of Imlay Street a
distance of one hundred thirty-three feet seven inches more or less;
thence (7) southwesterly parallel with the northwesterly side of Imlay
Street five hundred twenty feet to a point in a line which is the center
line of Commerce Street projected northwesterly from the northwesterly
side of Imlay Street; thence (8) northwesterly along said line which is
the center line of Commerce Street projected northwesterly from the
northwesterly side of Imlay Street twenty-three feet six inches; thence
(9) southwesterly parallel with the northwesterly side of Imlay Street
four hundred fifty-seven feet eight inches; thence (10) northwesterly
parallel with the northeasterly side of Verona Street projected
northwesterly across Imlay Street four feet eight inches; thence (11)
southwesterly parallel with the northwesterly side of Imlay Street nine-
ty-two feet four inches to the intersection of said course number (11)
with the southwesterly side of Verona Street projected northwesterly
across Imlay Street; thence (12) northwesterly along the southwesterly
side of Verona Street projected northwesterly from the northwesterly
side of Imlay Street forty-three feet three inches to the southeasterly
boundary of Commercial Wharf; thence (13) southwesterly along the
southeasterly boundary of Commercial Wharf four hundred ninety feet to
A. 6754 58
the centerline of Pioneer Street (sixty feet wide); thence (14)
northwesterly along the centerline of Pioneer Street ten feet to the
centerline of Conover Street as extended; thence (15) southwesterly
along the centerline of Conover Street two hundred sixty feet more or
less to the intersection thereof with the centerline of King Street;
thence (16) northwesterly along the centerline of King Street five
hundred sixty feet more or less to the intersection thereof with the
centerline of Ferris Street; thence (17) southwesterly along the
centerline of Ferris Street one hundred forty-four feet more or less;
thence (18) northwesterly and parallel with the centerline of Sullivan
Street four hundred twenty-six feet; thence (19) northeasterly parallel
with the northwesterly side of Ferris Street three hundred thirty-one
feet three and one half inches; thence (20) northwesterly along a line
forming an exterior angle of ninety-nine degrees fifty-four minutes and
forty-one seconds with course number (19) hereof, two hundred thirty-
eight feet two inches to the United States pierhead line thence (21)
northeasterly along the United States pierhead line to the point of
intersection of said pierhead line with a line drawn in continuation of
the southerly side of Atlantic Avenue; thence (22) southeasterly along
said line drawn in continuation of the southerly side of Atlantic Avenue
and along the said southerly side of Atlantic Avenue, one thousand three
hundred seventy-five and sixty-seven one-hundredths feet, more or less
to the point or place of beginning.
3. The foregoing limitations shall not be construed to limit, affect
or impair the power of the Port Authority to acquire real property at
any time or place for marine terminal purposes by negotiation or in any
manner other than by condemnation or the exercise of the right of
eminent domain.
§ 1107. Unappropriated lands. In the event that the Port Authority
shall find it necessary or desirable to acquire any unappropriated state
land or lands under water in the state of New York for marine terminal
purposes, the commissioner of general services may grant, transfer or
convey such unappropriated state land or lands under water to the Port
Authority under such terms and conditions as may be determined by said
commissioner.
§ 1108. Funding; bonds. The obligations issued by the port authority
to provide funds for any marine terminal purpose are hereby made securi-
ties in which all state and municipal officers and bodies of both
states, all trust companies and banks other than savings banks, all
building and loan associations, savings and loan associations, invest-
ment companies and other persons carrying on a commercial banking busi-
ness, all insurance companies, insurance associations and other persons
carrying on an insurance business, and all administrators, executors,
guardians, trustees and other fiduciaries, and all other persons and
legal entities whatsoever (other than savings banks), who are now or may
hereafter be authorized by either state to invest in bonds of such
state, may properly and legally invest any funds, including capital,
belonging to them or within their control, and said obligations are
hereby made securities which may properly and legally be deposited with
and shall be received by any state or municipal officer or agency of
either state for any purpose for which the deposit of bonds of such
state is now or may hereafter be authorized. The obligations issued by
the port authority to provide funds for any marine terminal purpose as
security for which the general reserve fund of the port authority
authorized by chapter forty-eight of the laws of New York of nineteen
hundred thirty-one as amended and continued by part XXIX of this arti-
A. 6754 59
cle, shall have been pledged in whole or in part are hereby made securi-
ties in which all savings banks also may properly and legally invest any
funds, including capital, belonging to them or within their control.
PART XII
AIR TERMINALS
Section 1201. Authorization.
1202. Restrictions.
1203. Definitions.
1204. Purpose.
1205. Operation of air terminals; noise prohibition.
1206. Taxes; assessments.
1207. General reserve fund; repayment.
1208. Bonds.
1209. Municipality consent.
1210. Acquisition limitations.
1211. Federal aid.
1212. Lands under water.
1213. Repayment of bonds and obligations.
1214. Contrary declarations.
1215. Agreement between the states.
1216. Federal aid procedure; application.
§ 1201. Authorization. Upon the concurrence of the state of New
Jersey, the states of New York and New Jersey declare and agree that
each air terminal within the Port of New York District serves the entire
district, and that the problem of furnishing proper and adequate air
terminal facilities within the district is a regional and interstate
problem, and that it is and shall be the policy of the two states to
encourage the integration of such air terminals so far as practicable in
a unified system.
Accordingly, in furtherance of said policy and in partial effectuation
of the comprehensive plan, heretofore adopted by the two states for the
development of terminal and transportation facilities in the Port of New
York District, the states of New York and New Jersey agree that the port
authority shall be authorized to effectuate, establish, acquire,
construct, rehabilitate, improve, maintain and operate air terminals, as
hereinafter defined, within the Port of New York District, and the two
said states further agree that all cities and other state and local
agencies shall be and they hereby are authorized to cooperate with the
port authority in the development of air terminals, as hereinafter
provided.
§ 1202. Restrictions. Nothing herein contained shall be construed to
authorize the port authority to acquire any air terminal owned or oper-
ated by any city or other municipality or public authority, or any other
property now or hereafter vested in or held by any city or other munici-
pality or public authority, without the authority or consent of such
city or other municipality or public authority, as provided in the
compact of April thirtieth, nineteen hundred twenty-one, and continued
by part I of this article, between the states of New York and New
Jersey, nor shall anything herein impair or invalidate in any way any
bonded indebtedness of the state, or any city or other municipality or
public authority, nor impair the provisions of law regulating the
payment into sinking funds of revenue derived from municipal property,
or dedicating the revenues derived from municipal property to a specific
purpose.
A. 6754 60
§ 1203. Definitions. The following terms as used herein shall mean:
1. "Air terminals" shall mean developments consisting of runways,
hangars, control towers, ramps, wharves, bulkheads, buildings, struc-
tures, parking areas, improvements, facilities or other real property
necessary, convenient or desirable for the landing, taking off, accommo-
dation and servicing of aircraft of all types, including but not limited
to airplanes, airships, dirigibles, helicopters, gliders, amphibians,
seaplanes, or any other contrivance now or hereafter used for the navi-
gation of or flight in air or space, operated by carriers engaged in the
transportation of passengers or cargo, or for the loading, unloading,
interchange or transfer of such passengers or their baggage, or such
cargo, or otherwise for the accommodation, use or convenience of such
passengers, or such carriers or their employees (facilities and accommo-
dations at sites removed from landing fields and other landing areas,
however, except as otherwise provided in this section, to be limited to
ticket stations and passenger stations for air passengers, to express
and freight stations for air express and air freight, and to beacons and
other aids to air navigation), or for the landing, taking off, accommo-
dation and servicing of aircraft owned or operated by persons other than
carriers. It shall also mean facilities providing access to an air
terminal, consisting of rail, rapid transit or other forms of mass
transportation which furnish a connection between the air terminal and
other points in the port district, including appropriate mass transpor-
tation terminal facilities at and within the air terminal itself and
suitable offsite facilities for the accommodation of air passengers,
baggage, mail, express, freight and other users of the connecting facil-
ity. It shall also mean such highway project or projects in the vicini-
ty of an air terminal providing improved access to such air terminal as
shall be designated in legislation adopted by the two states. Notwith-
standing any contrary provision of law, general, special or local, it
shall also mean railroad freight projects related or of benefit to an
air terminal or which are necessary, convenient or desirable in the
opinion of the port authority for the protection or promotion of the
commerce of the port district, consisting of railroad freight transpor-
tation facilities or railroad freight terminal facilities; and any
equipment, improvement, structure or facility or any land, and any
building, structure, facility or other improvement thereon, or any
combination thereof, and all real and personal property in connection
therewith or incidental thereto, deemed necessary or desirable in the
opinion of the port authority, whether or not now in existence or under
construction, for the undertaking of such railroad freight projects.
2. "Air terminal bonds" shall mean bonds issued by the port authority
for air terminal purposes.
3. "Air terminal purposes" shall mean the effectuation, establishment,
acquisition, construction, rehabilitation, improvement, maintenance or
operation of air terminals owned, leased or operated by the port author-
ity of New York and New Jersey (including airports operated under revo-
cable permits) or operated by others pursuant to agreements with the
port authority.
4. "Bonds" shall mean bonds, notes, securities or other obligations or
evidences of indebtedness.
5. "General reserve fund" shall mean the general reserve fund of the
port authority authorized by chapter forty-eight of the laws of New York
of nineteen hundred thirty-one as amended and continued by part XXIX of
this article, and chapter five of the laws of New Jersey of nineteen
hundred thirty-one, as amended.
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6. "General reserve fund statutes" shall mean chapter forty-eight of
the laws of New York of nineteen hundred thirty-one as amended and
continued by part XXIX of this article, and chapter five of the laws of
New Jersey of nineteen hundred thirty-one, as amended.
7. "Municipality" shall mean a county, city, borough, village, town-
ship, town, public agency, public authority or political subdivision.
8. "Real property" shall mean lands, structures, franchises and inter-
ests in land, including air space and air rights, waters, lands under
water and riparian rights, and any and all things and rights included
within the said term, and includes not only fees simple absolute but
also any and all lesser interests, including but not limited to ease-
ments, rights of way, uses, leases, licenses and all other incorporeal
hereditaments and every estate, interest or right, legal or equitable,
including terms for years and liens thereon by way of judgments, mort-
gages or otherwise.
§ 1204. Purpose. The effectuation, establishment, acquisition,
construction, rehabilitation, improvement, maintenance and operation of
air terminals by the port authority is and will be in all respects for
the benefit of the people of the states of New York and New Jersey, for
the increase of their commerce and prosperity, and for the improvement
of their health and living conditions; and the port authority shall be
regarded as performing an essential governmental function in undertaking
the effectuation, establishment, acquisition, construction, rehabili-
tation, improvement, maintenance or operation thereof, and in carrying
out the provisions of law relating thereto.
§ 1205. Operation of air terminals; noise prohibition. 1. The port
authority shall not permit or contract for the landing or takeoff of any
aircraft which emits a noise in excess of 108 EPNdB as measured as set
forth herein at any airport it maintains or operates; provided, however,
in any case of emergency involving the possible saving of human life,
the prohibition of this subdivision may be temporarily suspended.
2. Measurement. For purposes of this section, aircraft noise is to be
measured at the following points:
(a) For takeoff, at a point 3.5 nautical miles from the start of the
takeoff roll on the extended centerline of the runway;
(b) For approach, at a point one nautical mile from the threshold on
the extended centerline of the runway; and
(c) For the sideline, at the point, on a line parallel to and 0.25
nautical miles from the extended centerline of the runway, where the
noise level after liftoff is greatest, except that, for airplanes
powered by more than three turbojet engines, this distance must be 0.35
nautical miles.
3. Exceptions. Notwithstanding the requirements of subdivisions one
and two of this section the port authority in its discretion may, up to
a maximum noise level not exceeding 112 PNdB on takeoff, as measured by
the port authority in the manner used by the port authority to make such
measurements on the effective date of this section, grant an exception
thereto to any classification of aircraft built prior to the effective
date of this part and which has heretofore used the airport facilities
of the port authority, even though said aircraft does not comply with
subdivisions one and two of this section, upon a showing that (a) the
aircraft is capable of being equipped with retrofit equipment to reduce
the noise thereof to comply with the foregoing requirements of the
airport operator, and, in addition, (b) that such modification by way of
retrofit to reduce its noise shall be accomplished upon such terms and
conditions to assure compliance as the port authority, as airport opera-
A. 6754 62
tor, may require, within five years of the date of application for an
exception hereunder but in no event later than June first, nineteen
hundred eighty-one.
§ 1206. Taxes; assessments. The port authority shall be required to
pay no taxes or assessments upon any of the property acquired or used by
it for air terminal purposes; but this shall not be construed to
prevent the port authority and municipalities from entering into agree-
ments for the payment of fair and reasonable sums by the port authority
annually in accordance with legislation heretofore adopted by the two
states, to the end that such municipalities may not suffer undue loss of
taxes and assessments by reason of the acquisition and ownership of
property by the port authority for air terminal purposes.
§ 1207. General reserve fund; repayment. The moneys in the general
reserve fund of the port authority may be pledged in whole or in part by
the port authority as security for or applied by it to the repayment
with interest of any moneys which it may raise upon bonds issued by it
from time to time to provide funds for air terminal purposes; and the
moneys in said general reserve fund may be applied by the port authority
to the fulfillment of any other undertakings which it may assume to or
for the benefit of the holders of any such bonds.
Subject to prior liens and pledges, (and to the obligation of the port
authority to apply revenues to the maintenance of its general reserve
fund in the amount prescribed by the general reserve fund statutes), the
revenues of the port authority from facilities established, constructed,
acquired or effectuated through the issuance or sale of bonds of the
port authority secured by a pledge of its general reserve fund may be
pledged in whole or in part as security for or applied by it to the
repayment with interest of any moneys which it may raise upon bonds
issued by it to provide funds for air terminal purposes, and said reven-
ues may be applied by the port authority to the fulfillment of any other
undertakings which it may assume to or for the benefit of the holders of
such bonds.
§ 1208. Bonds. The bonds issued by the port authority to provide funds
for air terminal purposes are hereby made securities in which all state
and municipal officers and bodies of both states, all banks, bankers,
trust companies, savings banks, building and loan associations, savings
and loan associations, investment companies and other persons carrying
on a banking business, all insurance companies, insurance associations
and other persons carrying on an insurance business, and all administra-
tors, executors, guardians, trustees and other fiduciaries, and all
other persons whatsoever, who are now or may hereafter be authorized by
either state to invest in bonds or other obligations of such state, may
properly and legally invest any funds, including capital, belonging to
them or within their control; and said bonds are hereby made securities
which may properly and legally be deposited with and shall be received
by any state or municipal officer or agency of either state for any
purpose for which the deposit of bonds or other obligations of such
state is now or may hereafter be authorized.
§ 1209. Municipality consent. 1. Notwithstanding any contrary
provision of law, every municipality in the Port of New York District is
authorized and empowered to consent to the use by the port authority of
any air terminal owned by such municipality or of any real or personal
property owned by such municipality and necessary, convenient or desira-
ble in the opinion of the port authority for air terminal purposes,
including such real property as has already been devoted to a public
use, and as an incident to such consent, to grant, convey, lease, or
A. 6754 63
otherwise transfer to the port authority any such air terminal or real
or personal property, upon such terms as may be determined by the port
authority and such municipality. Every such municipality is also
authorized and empowered as an incident to such consent to vest in the
port authority the control, operation, maintenance, rents, tolls, charg-
es and any and all other revenues of any air terminal now owned by such
municipality, the title to such air terminal remaining in such munici-
pality. Such consent shall be given and the execution of any agreement,
deed, lease, conveyance, or other instrument evidencing such consent or
given as an incident thereto shall be authorized in the manner provided
in article twenty-two of the compact of April thirtieth, nineteen
hundred twenty-one, and continued by part I of this article, between the
two states creating the port authority.
2. Notwithstanding any contrary provision of law, every municipality
outside the port district is authorized and empowered to consent to the
use of real property owned by such municipality and necessary, conven-
ient or desirable in the opinion of the port authority for beacons or
other aids to navigation, or to the use of any air space over real prop-
erty owned by such municipality; and as an incident to such consent, to
grant, lease, convey or otherwise transfer to the port authority such
real property or air space.
Such consent shall be given and the execution of any agreement, deed,
lease, conveyance or other instrument evidencing such consent or given
as an incident thereto, shall be given by the officer, board or body
authorized by law to convey such property, or if no officer, board or
body be otherwise authorized so to do, by the governing body of such
municipality.
3. The states of New York and New Jersey hereby consent to suits,
actions or proceedings of any form or nature in law, equity or otherwise
by any city or other municipality against the port authority upon, in
connection with or arising out of any such agreement, agreements, or any
modification thereof or supplement thereto, for the following types of
relief and for such purposes only:
(a) For money damages for breach thereof,
(b) For money damages for torts arising out of the operation of the
municipal air terminal,
(c) For rent,
(d) For specific performance,
(e) For reformation thereof,
(f) For accounting,
(g) For declaratory judgment,
(h) For judgments, orders or decrees restraining or enjoining the port
authority from transferring title to real property to third persons in
cases where it has contracted with such city or other municipality to
transfer such title to such city or municipality, and
(i) For judgments, orders or decrees restraining or enjoining the port
authority from committing or continuing to commit other breaches of such
agreements with such municipality, provided that such judgment, order or
decree shall not be entered except upon two days' prior written notice
to the port authority of the proposed entry thereof and provided
further, that upon an appeal taken by the port authority from such judg-
ment, order or decree the service of the notice of appeal shall perfect
the appeal and shall stay the execution of such judgment, order or
decree appealed from, without an undertaking or other security.
4. When rules of venue are applicable, the venue of any such suit,
action or proceeding shall be laid in the county or judicial district in
A. 6754 64
which the air terminal, which is the subject matter of such agreement
between the port authority and the city or other municipality, or any
part thereof, is located.
5. If any clause, sentence, paragraph, or part of this subdivision, or
the application thereof to any person or circumstances, shall, for any
reason, be adjudged by a court of competent jurisdiction to be invalid,
such judgment shall not affect, impair, or invalidate the remainder of
this subdivision, and the application thereof to any other person or
circumstances, but shall be confined in its operation to the clause,
sentence, paragraph, or part thereof directly involved in the controver-
sy in which such judgment shall have been rendered and to the person or
circumstances involved.
§ 1210. Acquisition limitations. The powers hereinafter granted to
the port authority to acquire real property by condemnation or the right
of eminent domain shall be subject to the limitations set forth in
section twelve hundred two of this part, and also to the following
further limitations:
1. Unless and until the state of New York otherwise provides by law,
the port authority shall not have power to acquire real property in that
state for air terminal purposes by condemnation or the right of eminent
domain except for the purpose of making additions, extensions and
improvements to the three air terminals in New York city known as La
Guardia airport, John F. Kennedy international airport (formerly known
as Idlewild airport), and Floyd Bennett airport, for the purpose of
acquiring air rights or preventing or removing actual or potential
hazards to air navigation within three miles of the runways at said air
terminals as such runways may now or hereafter exist, and for the
purpose of establishing or maintaining beacons and other aids to air
navigation in connection with said three air terminals, whether or not
within three miles of said runways. The port authority shall not have
power to acquire by condemnation or the right of eminent domain real
property in or under the waters of Jamaica Bay for the purpose of adding
to, expanding, extending or constructing runway extensions, or incorpo-
rating such lands into the airport operation; however, this section
shall not prohibit the port authority from acquiring such lands for
installing flight control and safety equipment to service its existing
runways, nor from installing anti-pollution devices and equipment in
accordance with its anti-pollution program adopted for the air terminals
in New York city known as John F. Kennedy international airport or Floyd
Bennett airport.
2. Unless and until the state of New Jersey otherwise provides by law,
the port authority shall not have the power to acquire real property in
the state of New Jersey for air terminal purposes by condemnation or the
right of eminent domain except for the purpose of making additions,
extensions and improvements to the air terminal known as Newark airport
(including additions, extensions and improvements thereto located in the
city of Elizabeth), for the purpose of acquiring air rights or prevent-
ing or removing actual or potential hazards to air navigation within
three miles of the runways at said air terminal as such runways may now
or hereafter exist, and for the purpose of establishing or maintaining
beacons and other aids to air navigation in connection with said air
terminal, whether or not within three miles of said runways.
3. Unless otherwise provided by law by the state in which such real
property is located, the port authority shall not have power to acquire
for air terminal purposes by condemnation, acquisition pursuant to the
provisions of the eminent domain procedure law, or the right of eminent
A. 6754 65
domain subsequent to June thirtieth, nineteen hundred fifty-two, any
real property taken for and actually devoted to a public use, provided,
that this limitation shall not apply to real property a proceeding for
the acquisition of which was initiated prior to that date.
4. The foregoing limitations shall not be construed to limit, affect
or impair the power of the port authority to acquire real property at
any time and place for air terminal purposes by negotiation or in any
other manner than by condemnation, acquisition pursuant to the
provisions of the eminent domain procedure law, or by the exercise of
the right of eminent domain.
5. Subject to the foregoing limitations, if the port authority shall
find it necessary or convenient to acquire any real property for air
terminal purposes, whether for immediate or future use, the port author-
ity may find and determine that such property, whether a fee simple
absolute or a lesser interest, is required for a public use, and upon
such determination the said property shall be and shall be deemed to be
required for such public use until otherwise determined by the port
authority, and such determination shall not be affected by the fact that
such property has theretofore been taken for and is then devoted to a
public use; but the public use in the hands or under the control of the
port authority shall be deemed superior to the public use in the hands
of any other person, association or corporation except a municipality
within or without the port district. The port authority may acquire and
is hereby authorized to acquire such property, whether a fee simple
absolute or a lesser estate, by the exercise of the right of eminent
domain under and pursuant to the eminent domain procedure law of the
state of New York, in the case of property located in such state, and
revised statutes of New Jersey, Title 20:1-1 et seq., in the case of
property situated in such state, or at the option of the port authority
pursuant to such other and alternate procedure in each state as may be
provided by law by such state. The port authority shall have such power
of eminent domain not only in respect to real property located within
the Port of New York District but also as to any real property located
outside of the port district which is necessary, incidental or conven-
ient for the effectuation, establishment, acquisition, construction,
rehabilitation or improvement, and maintenance and operation of air
terminals within the port district. Nothing herein contained shall be
construed to prevent the port authority from bringing any proceedings to
remove a cloud on title or such other proceedings as it may, in its
discretion, deem proper and necessary, or acquiring any such property by
negotiation or purchase.
§ 1211. Federal aid. The port authority may make application directly
to the proper federal officials or agencies for federal loans or grants
in aid of air terminals owned or operated by it; provided, that if
either state shall have or adopt general legislation governing applica-
tions for federal aid for air terminals by municipalities of such state,
or the receipt or disbursement of such federal aid by or on behalf of
such municipalities, then such legislation shall at the option of such
state apply to applications by the port authority for federal aid for
air terminals located in such state and to the receipt and disbursement
of such federal aid by or on behalf of the port authority, in the same
manner and to the same extent as other municipalities of such state.
Except as above provided, no agency or commission of either state shall
have jurisdiction over any air terminals under the control of the port
authority, and all details of financing, construction, leasing, charges,
rates, tolls, contracts and the operation of air terminals owned or
A. 6754 66
controlled by the port authority shall be within its sole discretion and
its decision in connection with any and all matters concerning such air
terminals shall be controlling and conclusive. The local laws, resol-
utions, ordinances, rules and regulations of a municipality within which
an air terminal is situated shall apply to such air terminal, if so
provided in any agreement between the port authority and such munici-
pality, and to the extent provided in such agreement.
§ 1212. Lands under water. In the event that the port authority shall
find it necessary or desirable to acquire any unappropriated state lands
or lands under water in the state of New York for air terminal purposes,
the commissioner of general services of that state may grant, transfer
or convey such unappropriated state lands or lands under water to the
port authority upon such consideration, terms and conditions as may be
determined by said commissioner, except that no lands under the waters
of Jamaica Bay may be granted, transferred or conveyed to the port
authority for air terminal purposes by said commissioner except as
provided in paragraph one of section twelve hundred ten of this part.
In the event that the port authority shall find it necessary or desir-
able to acquire any lands under water in the state of New Jersey for air
terminal purposes, the division of navigation of the department of
conservation of that state may grant, transfer or convey such lands
under water to the port authority in accordance with the statutes of
that state governing the making of riparian grants and leases, upon such
terms and conditions as may be determined by said division.
In the event that the port authority shall find it necessary or desir-
able to acquire any real property required or used for state highway
purposes in the state of New Jersey, the state highway department of the
state of New Jersey may grant, transfer or convey such real property to
the port authority upon such terms and conditions as may be determined
by said state highway department.
§ 1213. Repayment of bonds and obligations. The two states covenant
and agree with each other and with the holders of any bonds of the port
authority issued or incurred for air terminal purposes and as security
for which there may or shall be pledged (directly or indirectly, or
through the medium of its general reserve fund or otherwise), the reven-
ues, or any part thereof, of any air terminal or other facility owned or
operated by the port authority, that the two states will not, so long as
any of such bonds or other obligations remain outstanding and unpaid,
diminish or impair the power of the port authority to establish, levy
and collect landing fees, charges, rents, tolls or other fees in
connection therewith.
§ 1214. Contrary declarations. Any declarations contained herein and
in the concurrent act of the state of New Jersey with respect to the
governmental nature of air terminals and to the exemption of air termi-
nal property from taxation and to the discretion of the port authority
with respect to air terminal operations shall not be construed to imply
that other port authority property and operations are not of a govern-
mental nature, or that they are subject to taxation, or that the deter-
minations of the port authority with respect thereto are not conclusive.
§ 1215. Agreement between the states. This section and the preceding
sections of this part constitute an agreement between the states of New
York and New Jersey supplementary to the compact between the two states
dated April thirtieth, nineteen hundred twenty-one, and amendatory ther-
eof, and continued by part I of this article, and shall be liberally
construed to effectuate the purposes of said compact and of the compre-
hensive plan heretofore adopted by the two states, and the powers vested
A. 6754 67
in the port authority hereby shall be construed to be in aid of and
supplemental to and not in limitation of or in derogation of any of the
powers heretofore conferred upon or delegated to the port authority.
§ 1216. Federal aid procedure; application. The state of New York
hereby elects to exercise the option reserved to each state by section
twelve hundred eleven of this part (and by the corresponding section of
the New Jersey statute concurring herein); and accordingly, if by the
effective date of chapter 802 of the laws of 1947, this state has
adopted, or if thereafter it shall adopt general legislation governing
applications for federal aid for air terminals by municipalities of this
state or the receipt or disbursement of such federal aid by or on behalf
of such municipalities, such legislation shall apply to applications by
the port authority for federal aid for air terminals located in this
state in the same manner and to the same extent as other municipalities
of this state, provided, that if such legislation shall require such
applications for federal aid to be approved by any officer, board,
commission, department or other agency of this state or shall require
the consent of any such agency of this state to the submission thereof
to the federal government, or shall require any such agency of this
state to be designated by municipalities as their agent to collect or
disburse such federal aid, or shall contain any other requirement vest-
ing any such agency of this state with power or discretion with respect
to the making of such applications for federal aid or the receipt or
disbursement thereof, then such officer, board, commission, department
or other agency of this state shall have power to waive such requirement
in whole or in part temporarily or permanently insofar as the port
authority is concerned.
PART XIII
EMINENT DOMAIN
Section 1301. Right of eminent domain.
§ 1301. Right of eminent domain. The powers granted to the port
authority by this part shall be deemed to be in aid of and supplemental
to and not in limitation or derogation of the powers otherwise conferred
upon it; and nothing herein contained shall be construed to prevent the
port authority from exercising the right of eminent domain under and
pursuant to the eminent domain procedure law of the state of New York,
or any other applicable law of this state, in any case where it is
authorized so to do.
PART XIV
SUITS AGAINST THE PORT AUTHORITY
Section 1401. Suits against the port authority.
1402. Prior causes of action.
1403. Contract causes of action.
1404. Civil suits; statutory penalties.
1405. Further restrictions.
1406. Venue.
1407. Statute of limitations.
1408. Notice of claim.
1409. Limits of liability.
1410. Other suits, actions or proceedings.
1411. Agreement between the states.
A. 6754 68
§ 1401. Suits against the port authority. Upon the concurrence of
the state of New Jersey, the states of New York and New Jersey consent
to suits, actions or proceedings of any form or nature at law, in equity
or otherwise (including proceedings to enforce arbitration agreements)
against the port authority, and to appeals therefrom and reviews there-
of, except as hereinafter provided in sections fourteen hundred two
through fourteen hundred five of this part, inclusive.
§ 1402. Prior causes of action. The foregoing consent does not extend
to suits, actions or proceedings upon any causes of action whatsoever
accruing before the effective date of chapter 301 of the laws of 1950,
other than causes of actions upon, in connection with, or arising out of
notes, bonds or other obligations or securities secured by a pledge of
the general reserve fund of the port authority.
§ 1403. Contract causes of action. The foregoing consent does not
extend to suits, actions or proceedings upon any causes of action what-
soever, upon, in connection with, or arising out of any contract,
express or implied, entered into or assumed by or assigned to the port
authority before the effective date of this part (including any supple-
ment to, or amendment, extension or renewal of any such contract, even
if such supplement, amendment, extension or renewal is made on or after
the effective date of chapter 301 of the laws of 1950), regardless of
whether such cause of action accrued before or after that date, other
than causes of action upon, in connection with or arising out of notes,
bonds or other obligations or securities secured by a pledge of the
general reserve fund of the port authority.
§ 1404. Civil suits; statutory penalties. The foregoing consent does
not extend to civil suits, actions or proceedings for the recovery of
statutory penalties.
§ 1405. Further restrictions. The foregoing consent does not extend
to suits, actions or proceedings for judgments, orders or decrees
restraining, enjoining or preventing the port authority from committing
or continuing to commit any act or acts, other than suits, actions or
proceedings by the attorney general of New York or by the attorney
general of New Jersey--each of whom is hereby authorized to bring such
suits, actions or proceedings in his discretion on behalf of any person
or persons whatsoever who requests him so to do except in the cases
excluded by sections fourteen hundred two, fourteen hundred three and
fourteen hundred four of this part; provided, that in any such suit,
action or proceeding, no judgment, order or decree shall be entered
except upon at least two days' prior written notice to the port authori-
ty of the proposed entry thereof.
§ 1406. Venue. The foregoing consent is granted upon the condition
that venue in any suit, action or proceeding against the port authority
shall be laid within a county or a judicial district, established by one
of said states or by the United States, and situated wholly or partially
within the port of New York district. The port authority shall be deemed
to be a resident of each such county or judicial district for the
purpose of such suits, actions or proceedings. Although the port author-
ity is engaged in the performance of governmental functions, the said
two states consent to liability on the part of the port authority in
such suits, actions or proceedings for tortious acts committed by it and
its agents to the same extent as though it were a private corporation.
§ 1407. Statute of limitations. The foregoing consent is granted upon
the condition that any suit, action or proceeding prosecuted or main-
tained under this part shall be commenced within one year after the
cause of action therefor shall have accrued, and upon the further condi-
A. 6754 69
tion that in the case of any suit, action or proceeding for the recovery
or payment of money, prosecuted or maintained under this part, a notice
of claim shall have been served upon the port authority by or on behalf
of the plaintiff or plaintiffs at least sixty days before such suit,
action or proceeding is commenced. The provisions of this section shall
not apply to claims arising out of provisions of any workmen's compen-
sation law of either state.
§ 1408. Notice of claim. The notice of claim required by section
fourteen hundred seven of this part shall be in writing, sworn to by or
on behalf of the claimant or claimants, and shall set forth (1) the name
and post office address of each claimant and of his attorney, if any,
(2) the nature of the claim, (3) the time when, the place where and the
manner in which the claim arose, and (4) the items of damage or injuries
claimed to have been sustained so far as then practicable. Such notice
may be served in the manner in which process may be served, or in lieu
thereof, may be sent by registered mail to the port authority at its
principal office. Where the claimant is a person under the age of eigh-
teen years or is mentally or physically incapacitated and by reason of
such disability no notice of claim is filed or suit, action or proceed-
ing commenced within the time specified in section fourteen hundred
seven of this part, or where a person entitled to make a claim dies and
by reason of his death no notice of claim is filed or suit, action or
proceeding commenced within the time specified in section fourteen
hundred seven of this part then any court in which such suit, action or
proceeding may be brought may in its discretion grant leave to serve the
notice of claim and to commence the suit, action or proceeding within a
reasonable time but in any event within three years after the cause of
action accrued. Application for such leave must be made upon an affida-
vit showing the particular facts which caused the delay and shall be
accompanied by a copy of the proposed notice of claim if such notice has
not been served, and such application shall be made only upon notice to
the port authority.
§ 1409. Limits of liability. The commissioners, officers or employees
of the port authority shall not be subject to suits, actions or
proceedings for judgments, orders or decrees restraining, preventing or
enjoining them in their official or personal capacities from committing
or continuing to commit any act or acts on behalf of the port authority
other than suits, actions and proceedings brought by the attorney gener-
al of New York or by the attorney general of New Jersey or by the port
authority itself--each of said attorneys general being hereby authorized
to bring such suits, actions or proceedings in his discretion on behalf
of any person or persons whatsoever who requests him so to do except in
the cases excluded by sections fourteen hundred two, fourteen hundred
three and fourteen hundred four of this part; provided, that in any such
suit, action or proceeding brought by either attorney general, no judg-
ment, order or decree shall be entered except upon at least two days'
notice to the defendant of the proposed entry thereof.
§ 1410. Other suits, actions or proceedings. Nothing herein shall be
deemed to revoke, rescind or affect any consents to suits, actions or
proceedings against the port authority heretofore given by the two said
states in chapter eight hundred two of the laws of New York of nineteen
hundred forty-seven, as amended, and continued by part XII of this arti-
cle, and chapter forty-three of the laws of New Jersey of nineteen
hundred forty-seven, as amended; chapter six hundred thirty-one of the
laws of New York of nineteen hundred forty-seven, as amended, and
continued by part XI of this article; chapter forty-four of the laws of
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New Jersey of nineteen hundred forty-seven, as amended, and chapter five
hundred thirty-four of the laws of New York of nineteen hundred forty-
eight, and continued by part XI of this article, and chapter ninety-sev-
en of the laws of New Jersey of nineteen hundred forty-eight.
§ 1411. Agreement between the states. This part together with the act
of the state of New Jersey concurring herein, shall constitute an agree-
ment between the states of New York and New Jersey supplementary to and
amendatory of the compact between the two said states dated April thir-
tieth, nineteen hundred twenty-one and continued by part I of this arti-
cle.
PART XV
TRAFFIC REGULATIONS FOR VEHICULAR CROSSINGS
Section 1501. Governing authority.
1502. Tolls; other charges.
1503. Operation restrictions.
1504. Port authority police force.
1505. Driving procedure.
1506. Operation requirements.
1507. Accident protocol.
1508. Transport restrictions.
1509. Violations.
1510. Definitions.
1511. Severability.
1512. Repeal of previous rules and regulations.
1513. Agreement between the states.
1514. Compliance with state law.
1515. Felonies.
1516. Misdemeanors.
1517. Owner liability for failure of operator to comply with
toll collection regulations of the port authority.
1518. Imposition of liability for failure of operator to comply
with toll collection regulations of the port authority.
1519. Adjudication of liability.
§ 1501. Governing authority. To the end that the interstate vehicular
crossings operated by the port authority, pursuant to the compact of
April thirtieth, nineteen hundred twenty-one between the states of New
York and New Jersey creating the port authority, may be efficiently and
safely operated in the interest of the people of the states of New York
and New Jersey and of the nation, the following rules and regulations
governing traffic on vehicular crossings operated by the port authority,
set forth in sections fifteen hundred two through fifteen hundred eight
of this part, are hereby adopted by the legislatures of the two states,
and are declared to be binding upon all persons and corporations
affected thereby.
§ 1502. Tolls; other charges. No traffic shall be permitted in or
upon vehicular crossings except upon the payment of such tolls and other
charges as may from time to time be prescribed by the port authority. It
is hereby declared to be unlawful for any person to refuse to pay, or to
evade or to attempt to evade the payment of such tolls or other charges.
§ 1503. Operation restrictions. No vehicle shall be operated care-
lessly or negligently, or in disregard of the rights or safety of
others, or without due caution and circumspection, or at a speed or in a
manner so as to endanger unreasonably or to be likely to endanger unrea-
sonably persons or property, or while the operator thereof is under the
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influence of intoxicating liquors or any narcotic or habit-forming drug,
nor shall any vehicle be so constructed, equipped or loaded as to endan-
ger unreasonably or to be likely to endanger unreasonably persons or
property.
§ 1504. Port authority police force. All persons in or upon vehicular
crossings must at all times comply with any lawful order, signal or
direction by voice or hand of any member of the port authority police
force. When traffic is controlled by traffic lights, signs or by mechan-
ical or electrical signals, such lights, signs and signals shall be
obeyed unless a port authority police officer directs otherwise.
§ 1505. Driving procedure. Unless otherwise directed, vehicles shall
at all times stay to the right of the center of all roadways except in
the case of one-way roadways; slow-moving vehicles shall remain as close
as possible to the right-hand edge or curb of the roadway; and where a
roadway is marked with traffic lanes vehicles shall not cross markings.
§ 1506. Operation requirements. No person shall operate a motor vehi-
cle in or upon any part of a vehicular crossing unless he is duly
authorized to operate motor vehicles in the state in which such part of
the vehicular crossing is located. No motor vehicle shall be permitted
in or upon any part of a vehicular crossing which is not registered in
accordance with the provisions of the law of the state in which such
part of the vehicular crossing is located.
§ 1507. Accident protocol. The operator of any vehicle involved in an
accident resulting in injury or death to any person or damage to any
property shall immediately stop such vehicle at the scene of the acci-
dent, render such assistance as may be needed, and give his name,
address, and operator's license and registration number to the person
injured or to any officer or witness of the injury. The operator of such
vehicle shall make a report of such accident in accordance with the law
of the state in which such accident occurred.
§ 1508. Transport restrictions. No person shall transport in or upon
a vehicular crossing, any dynamite, nitroglycerin, black powder, fire-
works, blasting caps or other explosives, gasoline, alcohol, ether,
liquid shellac, kerosene, turpentine, formaldehyde or other inflammable
or combustible liquids, ammonium nitrate, sodium chlorate, wet hemp,
powdered metallic magnesium, nitro-cellulose film, peroxides or other
readily inflammable solids or oxidizing materials, hydrochloric acid,
sulfuric acid or other corrosive liquids, prussic acid, phosgene, arsen-
ic, carbolic acid, potassium cyanide, tear gas, lewisite or any other
poisonous substances, liquids or gases, or any compressed gas, or any
radio-active article, substance or material, at such time or place or in
such manner or condition as to endanger unreasonably or as to be likely
to endanger unreasonably persons or property.
§ 1509. Violations. Violations of the rules and regulations set forth
in sections fifteen hundred two through fifteen hundred eight of this
part committed within the territorial limits of either state shall be
punishable as may be provided by the laws of such state but the penal-
ties prescribed by either state shall not preclude the port authority
from excluding from vehicular crossings permanently or for a specified
time, all vehicles violating any of the said rules and regulations, as
well as other vehicles owned or operated by the owner or operator of
such vehicle.
§ 1510. Definitions. The following terms as used herein shall have
the indicated meanings:
1. "Traffic" shall include pedestrians, ridden animals, herded animals
and vehicles whether moved by human power or otherwise.
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2. "Vehicular crossings" shall include not only bridges and tunnels
operated by the port authority, but also their plazas and approaches,
but shall not include any lands granted by the port authority to the
states of New York or New Jersey or to a municipality for street or
highway purposes even though such street or highway constitutes a means
of access to or egress from such vehicular crossing.
§ 1511. Severability. If any term or provision of this part shall be
declared unconstitutional or ineffective in whole or in part by a court
of competent jurisdiction, then to the extent that it is not unconstitu-
tional or ineffective, such term or provisions shall be enforced and
effectuated, nor shall such determination be deemed to invalidate the
remaining terms or provisions thereof.
§ 1512. Repeal of previous rules and regulations. The two said states
agree that chapter two hundred fifty-one of the laws of New York of
nineteen hundred thirty-four, entitled "An act establishing rules and
regulations for the control of traffic on the interstate bridges and
tunnels operated by the Port of New York Authority and prescribing
proceedings and penalties for their violations", and chapter one hundred
forty-six of the pamphlet laws of New Jersey, nineteen hundred thirty-
two, entitled "An act establishing rules and regulations for the control
of traffic on the inter-state bridges and tunnels operated by the Port
of New York Authority and prescribing proceedings and penalties for
their violations", shall be and are repealed as of the date this part
takes effect.
§ 1513. Agreement between the states. This section and the preceding
sections of this part, together with the corresponding sections of the
act of the state of New Jersey concurring herein, shall constitute an
agreement between the states of New York and New Jersey supplementary to
the compact between the two states dated April thirtieth, nineteen
hundred twenty-one, and amendatory thereof, and shall be liberally
construed to effectuate the purposes of said compact and of the agree-
ments of the two states amendatory thereof or supplemental thereto; and
shall be construed to be in aid of and supplemental to and not in limi-
tation of or in derogation of the powers heretofore conferred upon or
delegated to the port authority.
§ 1514. Compliance with state law. If the violation within the state
of any of the rules and regulations set forth in sections fifteen
hundred two through fifteen hundred eight of this part including but not
limited to those regarding the payment of tolls, would have been a felo-
ny, misdemeanor or other punishable offense if committed on any public
road, street, highway or turnpike in the municipality in which such
violation occurred, it shall be tried and punished in the same manner as
if it had been committed on such public road, street, highway or turn-
pike.
§ 1515. Felonies. Notwithstanding the provisions of section fifteen
hundred fourteen of this part, if the violation within the state of the
rule and regulation set forth in section fifteen hundred nine of this
part shall result in injury or death to a person or persons or damage to
property in excess of the value of five thousand dollars, such violation
shall constitute a felony.
§ 1516. Misdemeanors. Except as provided in sections fifteen hundred
fourteen and fifteen hundred fifteen of this part, any violation within
the state of any of the rules and regulations set forth in sections
fifteen hundred two through fifteen hundred eight of this part including
but not limited to those regarding the payment of tolls, shall consti-
tute a misdemeanor and shall be punishable as an offense triable in a
A. 6754 73
magistrate's court by a fine not exceeding five hundred dollars or by
imprisonment not exceeding sixty days or by both such fine and imprison-
ment.
§ 1517. Owner liability for failure of operator to comply with toll
collection regulations of the port authority. Notwithstanding any other
provision of law and in accordance with the provisions of section
fifteen hundred eighteen of this part, an owner of a vehicle may be held
liable for failure of an operator thereof to comply with the toll
collection regulations of the port authority of New York and New Jersey
(hereinafter called port authority). The owner of a vehicle shall be
liable pursuant to this section if such vehicle was used or operated
with the permission of the owner, express or implied, in violation of
the toll collection regulations of the port authority, and such
violation is evidenced by information obtained from a photo-monitoring
system, provided, however, that no owner of a vehicle shall be liable
where the operator of such vehicle has been convicted of a violation of
those toll collection regulations for the same incident.
§ 1518. Imposition of liability for failure of operator to comply with
toll collection regulations of the port authority. The liability set
forth in section fifteen hundred seventeen of this part, shall be
imposed upon an owner for a violation by an operator of the toll
collection regulations of the port authority occurring within the terri-
torial limits of the state of New York in accordance with the following:
1. For the purposes of this section, the term "owner" shall mean any
person, corporation, partnership, firm, agency, association, lessor, or
organization who, at the time of the violation in any city in which a
vehicle is operated: (a) is the beneficial or equitable owner of such
vehicle; or (b) has title to such vehicle; or (c) is the registrant or
co-registrant of such vehicle which is registered with the department of
motor vehicles of this state or any other state, territory, district,
province, nation or other jurisdiction; or (d) subject to the limita-
tions set forth in subdivision six of this section, uses such vehicle in
its vehicle renting and/or leasing business; and includes (e) a person
entitled to the use and possession of a vehicle subject to a security
interest in another person. For the purposes of this section, the term
"operator" shall mean any person, corporation, firm, partnership, agen-
cy, association, organization or lessee that uses or operates a vehicle
with or without the permission of the owner, and an owner who operates
his or her own vehicle. For purposes of this section, the term "photo-
monitoring system" shall mean a vehicle sensor installed to work in
conjunction with a toll collection facility which automatically produces
one or more photographs, one or more microphotographs, a videotape or
other recorded images of each vehicle at the time it is used or operated
in violation of the toll collection regulations of the port authority.
For purposes of this section, the term "toll collection regulations of
the port authority" shall refer to the traffic regulations for inter-
state vehicular crossings operated by the port authority as set forth in
this part and in chapter one hundred ninety-two of the laws of New
Jersey of nineteen hundred fifty, and specifically that section of the
laws which prohibits traffic in or upon vehicular crossings operated by
the port authority except upon the payment of such tolls and other
charges as may from time to time be prescribed by the port authority and
which further makes it unlawful for any person to refuse to pay, or to
evade or to attempt to evade the payment of such tolls or other charges.
For purposes of this section, the term "vehicle" shall mean every device
in, upon, or by which a person or property is or may be transported or
A. 6754 74
drawn upon a highway, except devices used exclusively upon stationary
rails or tracks.
2. A certificate, sworn to or affirmed by an agent of the port author-
ity, or a facsimile thereof, based upon inspection of photographs,
microphotographs, videotape or other recorded images produced by a
photo-monitoring system shall be prima facie evidence of the facts
contained therein and shall be admissible in any proceeding charging a
violation of toll collection regulations of the port authority, provided
that any photographs, microphotographs, videotape or other recorded
images evidencing such a violation shall be available for inspection and
admission into evidence in any proceeding to adjudicate the liability
for such violation.
3. An imposition of liability pursuant to this section shall be based
upon a preponderance of evidence as submitted. An imposition of liabil-
ity pursuant to this section shall not be deemed a conviction of an
operator and shall not be made part of the motor vehicle operating
record, furnished pursuant to section three hundred fifty-four of the
vehicle and traffic law of the state of New York, of the person upon
whom such liability is imposed nor shall it be used for insurance
purposes in the provision of motor vehicle insurance coverage.
4. (a) A notice of liability shall be sent by first class mail to each
person alleged to be liable as an owner for a violation pursuant to this
section of the toll collection regulations of the port authority. Such
notice shall be mailed no later than thirty days after the alleged
violation. Personal delivery on the owner shall not be required. A manu-
al or automatic record of mailing prepared in the ordinary course of
business shall be prima facie evidence of the mailing of the notice.
(b) A notice of liability shall contain the name and address of the
person alleged to be liable as an owner for a violation of the toll
collection regulations of the port authority pursuant to this section,
the registration number of the vehicle involved in such violation, the
location where such violation took place, the date and time of such
violation and the identification number of the photo-monitoring system
which recorded the violation or other document locator number.
(c) The notice of liability shall contain information advising the
person charged of the manner and the time in which he may contest the
liability alleged in the notice. Such notice of liability shall also
contain a warning to advise the persons charged that failure to contest
in the manner and time provided shall be deemed an admission of liabil-
ity and that a default judgment may be entered thereon.
(d) The notice of liability shall be prepared and mailed by the port
authority or its duly authorized agent.
5. If an owner receives a notice of liability pursuant to this section
for any time period during which the vehicle was reported to the police
department as having been stolen, it shall be a valid defense to an
allegation of liability for a violation of the toll collection regu-
lations of the port authority that the vehicle had been reported to the
police as stolen prior to the time the violation occurred and had not
been recovered by such time. If an owner receives a notice of liability
pursuant to this section for any time period during which the vehicle
was stolen, but not as yet reported to the police as having been stolen,
it shall be a valid defense to an allegation of liability for a
violation of toll collection regulations of the port authority pursuant
to this section that the vehicle was reported as stolen within two hours
after discovery of the theft by the owner. For purposes of asserting the
defense provided by this subdivision, it shall be sufficient that a
A. 6754 75
certified copy of the police report on the stolen vehicle be sent by
first class mail to the court or other entity having jurisdiction.
6. An owner, as defined in paragraph (a) of subdivision one of this
section, who is a lessor of a vehicle to which a notice of liability was
issued pursuant to subdivision four of this section shall not be liable
pursuant to this section for the violation of the toll collection regu-
lations of the port authority provided that he or she sends to the port
authority serving the notice of liability and to the court or other
entity having jurisdiction a copy of the rental, lease or other such
contract document covering such vehicle on the date of the violation,
with the name and address of the lessee clearly legible, within thirty
days after receiving from the port authority or its duly authorized
agent the original notice of liability. Failure to send such information
within such thirty day time period shall render the lessor liable for
the penalty prescribed by this section. Where the lessor complies with
the provisions of this subdivision, the lessee of such vehicle on the
date of such violation shall be deemed to be the owner of such vehicle
for purposes of this section and shall be subject to liability for the
violation of toll collection regulations of the port authority provided
that the port authority or its duly authorized agent mails a notice of
liability to the lessee within ten days after the court, or other entity
having jurisdiction, deems the lessee to be the owner. For purposes of
this subdivision the term "lessor" shall mean any person, corporation,
firm, partnership, agency, association or organization engaged in the
business of renting or leasing vehicles to any lessee under a rental
agreement, lease or otherwise wherein the said lessee has the exclusive
use of said vehicle for any period of time. For the purposes of this
subdivision, the term "lessee" shall mean any person, corporation, firm,
partnership, agency, association or organization that rents, leases or
contracts for the use of one or more vehicles and has exclusive use
thereof for any period of time.
7. Except as provided in subdivision six of this section, if a person
receives a notice of liability pursuant to this section it shall be a
valid defense to an allegation of liability for a violation of toll
collection regulations of the port authority that the individual who
received the notice of liability pursuant to this section was not the
owner of the vehicle at the time the violation occurred. If the owner
liable for a violation of the toll collection regulations of the port
authority pursuant to this section was not the operator of the vehicle
at the time of the violation, the owner may maintain an action for
indemnification against the operator. The operator of the vehicle may
apply to the court or other entity having jurisdiction to adjudicate the
liability imposed under this section to accept responsibility for the
violation and satisfactorily discharge all applicable tolls, charges,
and penalties related to the violation.
8. "Electronic toll collection system" shall mean a system of collect-
ing tolls or charges which is capable of charging an account holder the
appropriate toll or charge by transmission of information from an elec-
tronic device on a motor vehicle to the toll lane, which information is
used to charge the account the appropriate toll or charge. In adopting
procedures for the preparation and mailing of a notice of liability, the
port authority or its duly authorized agent shall adopt guidelines to
ensure adequate and timely notice to all electronic toll collection
system account holders to inform them when their accounts are delin-
quent. An owner who is an account holder under the electronic toll
collection system shall not be found liable for a violation of this
A. 6754 76
section unless such authority has first sent a notice of delinquency to
such account holder and the account holder was in fact delinquent at the
time of the violation.
9. Nothing in this section shall be construed to limit the liability
of an operator of a vehicle for any violation of the toll collection
regulations of the port authority. Nothing in this section shall author-
ize or preclude the port authority from excluding from any of its facil-
ities, in its sole discretion, any or all vehicles found liable under
this section as well as other vehicles owned or operated by the owner or
operator of such vehicle.
10. Notwithstanding any other provision of law, all photographs,
microphotographs, videotape or other recorded images prepared pursuant
to this section shall be for the exclusive use of the port authority in
the discharge of its duties under this section and shall not be open to
the public nor be used in any court in any action or proceeding pending
therein unless such action or proceeding relates to the imposition of or
indemnification for liability pursuant to this section. The port author-
ity or its duly authorized agent shall not sell, distribute or make
available in any way, the names and addresses of electronic toll
collection system account holders, or any information compiled from
transactions with such account holders, without such account holders'
consent to any entity that will use such information for any commercial
purpose provided that the foregoing restriction shall not be deemed to
preclude the exchange of such information between any entities with
jurisdiction over and or operating a toll highway bridge and/or tunnel
facility.
§ 1519. Adjudication of liability. Adjudication of the liability
imposed upon an owner by section fifteen hundred seventeen of this part
for a violation of the toll collection regulations of the port authority
occurring within the territorial limits of the state of New York shall
be in accordance with sections two hundred thirty-five, two hundred
thirty-six, two hundred thirty-seven, two hundred thirty-nine, two
hundred forty, two hundred forty-one, five hundred ten and eighteen
hundred nine of the vehicle and traffic law, or by such entity having
jurisdiction over violations of the toll collection regulations of the
port authority occurring within the territorial limits of the state of
New York, provided that all violations shall be heard and determined in
the county in which the violation is alleged to have occurred, or by
consent of both parties, in any county in the state of New York in which
the port authority operates or maintains a facility. An owner found
liable for a violation of toll collection regulations pursuant to this
section shall for a first violation thereof be liable for a monetary
penalty not to exceed fifty dollars or two times the toll evaded which-
ever is greater; for a second violation thereof both within eighteen
months be liable for a monetary penalty not to exceed one hundred
dollars or five times the toll evaded whichever is greater; for a third
or subsequent violation thereof all within eighteen months be liable for
a monetary penalty not to exceed one hundred fifty dollars or ten times
the toll evaded whichever is greater.
PART XVI
RULES AND REGULATIONS GOVERNING TRAFFIC ON HIGHWAYS IN PORT AUTHORITY
AIR AND MARINE TERMINALS
Section 1601. Definitions.
1602. Vehicle operation.
A. 6754 77
1603. Adherence to traffic signs and signals.
1604. Requiring use of right side of roadway.
1605. Authorization for operation.
1606. Procedures in case of causing injury.
1607. Prohibited items.
1608. Parking.
1609. Prosecution for violations.
1610. Felony for transport of prohibited items.
1611. Misdemeanor for certain violations.
1612. Exclusion of vehicles in violations.
1613. Reserve clause.
§ 1601. Definitions. The following terms as used herein shall have
the indicated meanings:
"Air terminals" shall mean developments operated by the port authority
consisting of runways, hangars, control towers, ramps, wharves, bulk-
heads, buildings, structures, parking areas, improvements, facilities or
other real property necessary, convenient or desirable for the landing,
taking off, accommodation and servicing of aircraft of all types,
including but not limited to airplanes, airships, dirigibles, helicop-
ters, gliders, amphibians, seaplanes, or any other contrivance now or
hereafter used for the navigation of or flight in air or space, operated
by carriers engaged in the transportation of passengers or cargo, or for
the loading, unloading, interchange or transfer of such passengers or
their baggage, or such cargo, or otherwise for the accommodation, use or
convenience of such passengers, or such carriers or their employees, or
for the landing, taking off, accommodation and servicing of aircraft
owned or operated by persons other than carriers.
"Air terminal highway" shall mean and include those portions of an air
terminal designated and made available temporarily or permanently by the
port authority to the public for general or limited highway use.
"Marine terminals" shall mean developments operated by the port
authority consisting of one or more piers, wharves, docks, bulkheads,
slips, basins, vehicular roadways, railroad connections, side tracks,
sidings or other buildings, structures, facilities or improvements,
necessary or convenient to the accommodation of steamships or other
vessels and their cargoes or passengers.
"Marine terminal highway" shall mean and include those portions of a
marine terminal designated and made available temporarily or permanently
by the port authority to the public for general or limited highway use.
"Traffic" shall mean and include pedestrians, animals and vehicles.
§ 1602. Vehicle operation. No vehicle shall be operated on any air
terminal highway or marine terminal highway carelessly or negligently,
or in disregard of the rights or safety of others, or without due
caution and circumspection, or at a speed or in a manner so as to endan-
ger unreasonably or to be likely to endanger unreasonably persons or
property, or while the operator thereof is under the influence of intox-
icating liquors or any narcotic or habit-forming drug, nor shall any
vehicle be operated thereon if it is so constructed, equipped or loaded
as to endanger unreasonably or to be likely to endanger unreasonably
persons or property.
§ 1603. Adherence to traffic signs and signals. All persons on any
air terminal highway or marine terminal highway must at all times comply
with any lawful order, signal or direction by voice or hand of any
member of the port authority police force. When traffic is controlled by
traffic lights, signs or by mechanical or electrical signals, such
A. 6754 78
lights, signs and signals shall be obeyed unless a port authority police
officer directs otherwise.
§ 1604. Requiring use of right side of roadway. Unless otherwise
directed, all vehicles on any air terminal highway or marine terminal
highway shall at all times stay to the right of the center of the road-
way, except in the case of one-way roadways; slow-moving vehicles shall
remain as close as possible to the right-hand edge or curb of the road-
way; and where a roadway is marked with traffic lanes vehicles shall
not cross markings.
§ 1605. Authorization for operation. No person shall operate a motor
vehicle on an air terminal highway or marine terminal highway unless he
is duly authorized to operate such vehicle on state and municipal high-
ways in the state in which such air terminal highway or marine terminal
highway is located, or unless he is especially authorized by the port
authority to operate motor vehicles on such air terminal highway or
marine terminal highway. No motor vehicle shall be permitted on any air
terminal highway or marine terminal highway unless it is registered in
accordance with the provisions of the law of the state in which such air
terminal highway or marine terminal highway is located, or unless it is
especially authorized by the port authority to be operated on such air
terminal highway or marine terminal highway.
§ 1606. Procedures in case of causing injury. The operator of any
vehicle involved in an accident on an air terminal highway or marine
terminal highway which results in injury or death to any person or
damage to any property shall immediately stop such vehicle at the scene
of the accident, render such assistance as may be needed, and give his
name, address, and operator's license and registration number to the
person injured or to any officer or witness of the injury. The operator
of such vehicle shall make a report of such accident in accordance with
the law of the state in which such accident occurred.
§ 1607. Prohibited items. No person shall transport on any air termi-
nal highway or marine terminal highway any dynamite, nitroglycerin,
black powder, fireworks, blasting caps or other explosives, gasoline,
alcohol, ether, liquid shellac, kerosene, turpentine, formaldehyde or
other inflammable or combustible liquids, ammonium nitrate, sodium chlo-
rate, wet hemp, powdered metallic magnesium, nitro-cellulose film,
peroxides or other readily inflammable solids or oxidizing materials,
hydrochloric acid, sulfuric acid or other corrosive liquids, prussic
acid, phosgene, arsenic, carbolic acid, potassium cyanide, tear gas,
lewisite, or any other poisonous substances, liquids or gases, or any
compressed gas, or any radioactive article, substance or material, at
such time or place or in such manner or condition as to endanger unrea-
sonably or as to be likely to endanger unreasonably persons or property;
nor shall any person park any vehicle, or permit the same to remain
halted on any air terminal highway or marine terminal highway containing
any of the foregoing, at such time or place or in such manner or condi-
tion as to endanger unreasonably or as to be likely to endanger unrea-
sonably persons or property.
§ 1608. Parking. No person shall park a vehicle or permit the same to
remain halted on any air terminal highway or marine terminal highway
except at such places and for such periods of time as may be prescribed
or permitted by the port authority.
§ 1609. Prosecution for violations. If the violation within the state
of any of the rules and regulations set forth in this part, would have
been a felony, misdemeanor or other punishable offense if committed on
any public road, street, highway or turnpike in the municipality in
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which such violation occurred, it shall be tried and punished in the
same manner as if it had been committed on such public road, street,
highway or turnpike.
§ 1610. Felony for transport of prohibited items. Notwithstanding the
provisions of section sixteen hundred two of this part, if the violation
within the state of the rule and regulation promulgated pursuant to this
part shall result in injury or death to a person or persons or damage to
property in excess of the value of five thousand dollars, such violation
shall constitute a felony.
§ 1611. Misdemeanor for certain violations. Except as provided in
sections sixteen hundred two and sixteen hundred three of this part, any
violation within the state of any of the rules and regulations promul-
gated pursuant to this part, shall constitute a misdemeanor and shall be
punishable as an offense triable in a magistrate's court by a fine not
exceeding five hundred dollars or by imprisonment not exceeding sixty
days or by both such fine and imprisonment.
§ 1612. Exclusion of vehicles in violations. The penalties prescribed
in this part shall not preclude the port authority from excluding from
any air terminal highway or marine terminal highway, permanently or for
a specified time, all vehicles violating any of the rules and regu-
lations promulgated pursuant to this part, as well as other vehicles
owned or operated by the owner or operator of such vehicle.
§ 1613. Reserve clause. Nothing herein contained shall be construed
to affect, diminish or impair the power of this state to enact any law,
or to impair or diminish, or as recognition of the impairment or diminu-
tion of any power of this state, legislative or otherwise, with respect
to the port authority, its properties, or persons or property thereon.
PART XVII
NEW YORK - NEW JERSEY AGREEMENT
Section 1701. Enforcement authority.
1702. Guidelines for interpretation.
§ 1701. Enforcement authority. Upon the concurrence of the state of
New Jersey, the states of New York and New Jersey agree that each state,
in the discretion of its legislature, and without further consent or
concurrence by the other state, may from time to time prescribe, amend,
modify or rescind penalties for violations within its territorial limits
of any rule or regulation, otherwise authorized, of the port of New York
authority (hereinafter called the "port authority"), and procedures for
the enforcement of such penalties.
§ 1702. Guidelines for interpretation. This section and section
seventeen hundred one of this part, together with corresponding sections
of the act of the state of New Jersey concurring herein shall constitute
an agreement between the states of New York and New Jersey supplemental
to the compact between the two states dated April thirtieth, nineteen
hundred twenty-one, and shall be liberally construed to effectuate the
purposes of said compact and of the agreements of the two states amenda-
tory thereof and supplemental thereto, and not in limitation of or in
derogation of any powers heretofore or hereinafter conferred upon or
delegated to the port authority, and not as granting any power to the
port authority to make rules and regulations except as elsewhere
provided in said compact and agreements, and shall not be construed to
affect, diminish or impair the power of either state to prescribe,
amend, modify or rescind such penalties, or to enact any other law, or
to imply that the concurrence of the other state therein is necessary,
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or was necessary prior to the enactment of this part, or to impair or
diminish, or as recognition of the impairment or diminution of any power
of either state, legislative or otherwise, with respect to the port
authority, its properties, or persons or property thereon, or to affect
the interpretation of the aforesaid compact and agreements between the
two states.
PART XVIII
SMOKING REGULATION FOR TERMINALS
Section 1801. Smoking prohibition.
1802. Penalties.
§ 1801. Smoking prohibition. No person shall smoke, carry, or possess
a lighted cigarette, cigar, pipe, match or other lighted instrument
capable of causing naked flame in or about any area, building or
appurtenance of an air terminal, owned or operated by the port authori-
ty, or in or upon any area, bulkhead, dock, pier, wharf, warehouse,
building, structure or shed of a marine terminal, owned or operated by
the port authority, where smoking has been prohibited by the port
authority and where appropriate signs to that effect have been posted,
or on the open deck of any ship, lighter, carfloat, scow or other simi-
lar floating craft or equipment when berthed or moored at such dock,
wharf, pier or to a vessel made fast thereto.
§ 1802. Penalties. Any violation of the rule and regulation set forth
in section eighteen hundred one of this part shall be punishable as an
offense triable in a magistrate's court, for a first offense, by a fine
of not more than fifty dollars or imprisonment for not more than thirty
days or both; for a second offense, by a fine of not less than twenty-
five dollars nor more than one hundred dollars or imprisonment for not
more than sixty days or both; for a third or any other subsequent
offense, by a fine of not less than fifty dollars nor more than two
hundred dollars or by imprisonment for not more than sixty days or both.
PART XIX
SUITS ON LEASE AT INTERNATIONAL AIRPORT
Section 1901. Suits on lease at International Airport.
1902. Effect.
1903. Venue.
1904. Consent.
1905. Agreement.
§ 1901. Suits on lease at International Airport. Upon the concurrence
of the state of New Jersey, the states of New York and New Jersey
consent to suits, actions or proceedings (including proceedings to
enforce arbitration agreements and to enter judgments upon awards
resulting therefrom) of any form or nature, at law, in equity or other-
wise by any person or corporation engaged in the business of scheduled
transportation by aircraft, against the port authority, and to appeals
therefrom and reviews thereof, upon or for the enforcement of any writ-
ten contract for the use or occupancy of space, premises or facilities
at New York International Airport, in the county of Queens, city of New
York, state of New York, executed on or after January first, nineteen
hundred fifty-three between the port authority and any such person or
corporation, or by any such person or corporation so contracting with
the port authority upon any cause of action arising out of such use or
occupancy pursuant to any such written contract.
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§ 1902. Effect. The consent pursuant to section nineteen hundred one
of this part is granted upon the condition that in suits, actions or
proceedings thereunder for judgments, orders or decrees restraining or
enjoining the port authority from committing or continuing to commit
breaches of such written contract, no such judgment, order or decree
shall be entered except upon at least two days' prior written notice to
the port authority of the proposed entry thereof; and upon an appeal
taken by the port authority from such judgment, order or decree, the
service of the notice of appeal shall perfect the appeal, without an
undertaking or other security.
§ 1903. Venue. The venue in any suit, action or proceeding against
the port authority to which consent is given by this part shall be laid
within a county or a judicial district, established by one of said two
states or by the United States and situated wholly or partially within
the port of New York district. The port authority shall be deemed to be
a resident of each such county or judicial district for the purpose of
such suits, actions or proceedings and shall be deemed to be a citizen
of both of said two states.
§ 1904. Consent. Nothing herein contained shall be deemed to revoke,
rescind or affect any consents to suits, actions or proceedings against
the port authority heretofore given by the two said states or the terms
and conditions upon which such consents are given.
§ 1905. Agreement. This part together with the act of the state of
New Jersey concurring herein, shall constitute an agreement between the
states of New York and New Jersey supplementary to and amendatory of the
compact between the two said states dated April thirtieth, nineteen
hundred twenty-one.
PART XX
NARROWS BRIDGE
Section 2001. Determination to build bridge.
2002. Authorization for construction.
2003. Definitions.
2004. Authorization for agreement with the Triborough Authority.
2005. Funding.
2006. Bi-state covenant.
2007. Security bonds.
2008. Authorization to acquire real property.
2009. Prior consent required.
2010. Authorization of agents to enter property.
2011. Essential government function.
2012. Tax exemption on acquired property.
2013. Governmental nature.
2014. Agreement.
§ 2001. Determination to build bridge. Upon the concurrence of the
state of New Jersey, the states of New York and New Jersey find, deter-
mine and agree that a bridge between Staten Island and Long Island,
constituting a part of the highway system of the port district, created
by their compact of April thirty, nineteen hundred twenty-one, will
facilitate the flow of traffic between the two states, will alleviate
congestion in the vehicular crossings of the Hudson river and will
promote the movement of commerce between the two states by providing a
direct connection between the state of New Jersey and Long Island in the
state of New York by way of Staten Island and that it is therefore the
policy of the two said states to provide such bridge.
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§ 2002. Authorization for construction. In furtherance of the afore-
said policy, and in partial effectuation of the comprehensive plan here-
tofore adopted by the two said states for the development of the said
port district, the Port of New York Authority is hereby authorized and
empowered to construct, own, maintain and operate a bridge (hereinafter
called the Narrows bridge) over the Narrows of New York bay, and, in its
discretion (and so long as it shall retain title to such bridge), such
additions and improvements thereto and such approaches thereto and
connections with highways and with the bridges between New Jersey and
Staten Island as the Port Authority may deem necessary or desirable.
The Port Authority may effectuate such approaches or connections, in its
discretion, by agreement with any other public agency, which agreement
may provide for the construction, ownership, maintenance or operation of
such approaches or connections by such other public agency.
The Port Authority shall not commence the construction of the Narrows
bridge until after the execution of an agreement between the Port
Authority and the Triborough Bridge and Tunnel Authority (hereinafter
called the Triborough Authority) pursuant to section two thousand four
of this part.
§ 2003. Definitions. The following terms as used in this part shall
mean:
"Bonds" shall mean bonds, notes, securities or other obligations or
evidences of indebtedness.
"General reserve fund statutes" shall mean chapter forty-eight of the
laws of New York of nineteen hundred thirty-one, as amended and contin-
ued by part XXIX of this article, and chapter five of the laws of New
Jersey of nineteen hundred thirty-one, as amended, and "general reserve
fund" shall mean the general reserve fund of the Port Authority author-
ized by said statutes.
"Narrows bridge" shall mean not only the bridge itself but also its
approaches, connections, additions and improvements.
"Narrows bridge bonds" shall mean bonds issued by the Port Authority
to provide funds for Narrows bridge purposes or bonds secured in whole
or in part by a pledge of the revenues of the Port Authority from the
Narrows bridge or bonds so issued and secured.
"Narrows bridge purposes" shall mean the effectuation, establishment,
construction, rehabilitation, improvement, maintenance or operation of
the Narrows bridge and purposes incidental thereto.
"Real property" shall mean lands, structures, franchises and interests
in land, waters, lands under water and riparian rights, and any and all
things and rights included within the said term, and includes not only
fees simple absolute but also any and all lesser interests, including
but not limited to easements, rights-of-way, uses, leases, licenses and
all other incorporeal hereditaments and every estate, interest or right,
legal or equitable, including terms for years and liens thereon by way
of judgments, mortgages or otherwise.
§ 2004. Authorization for agreement with the Triborough Authority.
(a) The Port Authority is authorized and empowered to enter into an
agreement with the Triborough Authority (and from time to time to enter
into agreements amending the same) for the design, location, financing,
construction, maintenance and operation of the Narrows bridge and any
other matters of like or different character with respect to the Narrows
bridge, and by which the Port Authority may grant, convey, lease or
otherwise transfer to the Triborough Authority or to the city of New
York for the use and occupancy of the Triborough Authority any right,
title or interest of the Port Authority in the Narrows bridge and in any
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part or parts thereof, upon such terms as may be determined by the Port
Authority and the Triborough Authority, including but not limited to
agreement as to the method of fixing the tolls, rents, charges and other
fees and the rules for the regulation of the use of the bridge.
(b) So long as the Port Authority shall retain title to the Narrows
bridge, it shall, so far as it deems it practicable, treat as a single
unified operation the effectuation of the Narrows bridge, the interstate
bridges and tunnels now operated by the Port Authority and any other
bridges or tunnels which it may construct or operate, raising moneys for
the construction thereof and for the making of additions and improve-
ments thereto in whole or in part upon its own obligations, and, except
as provided in such agreement or any amendment thereof, establishing and
levying such tolls, rents, charges and other fees as it may deem neces-
sary to secure from all of such bridges and tunnels as a group at least
sufficient revenue to meet the expenses of the effectuation of such
bridges and tunnels as a group, and to provide for the payment of the
interest upon and amortization and retirement of and the fulfillment of
the terms of all bonds which it may have issued in connection therewith.
Except as provided in such agreement or any amendment thereof, no other
agency or commission of either state shall have jurisdiction over the
Narrows bridge so long as the Port Authority shall retain title thereto,
and, except as so provided, all details of the design, location, financ-
ing, construction, leasing, tolls, rents, charges and other fees,
contracts, maintenance and operation of and rules for the regulation of
the use of the Narrows bridge so long as the Port Authority shall retain
title thereto shall be within its sole discretion and its decision in
connection with any and all matters concerning such bridge shall be
controlling and conclusive.
(c) The states of New York and New Jersey hereby consent to suits,
actions or proceedings against the Port Authority upon, in connection
with or arising out of such agreement or any amendment thereof, by the
Triborough Authority, or by the city of New York if and to the extent
that such agreement or any amendment thereof shall create rights in the
city of New York, as follows:
(1) For judgments, orders or decrees restraining or enjoining the Port
Authority from transferring title to real property to other persons in
cases where it has agreed with the Triborough Authority to transfer such
title to the Triborough Authority or to the city of New York for the use
and occupancy of the Triborough Authority, and
(2) For judgments, orders or decrees restraining or enjoining the Port
Authority from committing or continuing to commit other breaches of such
agreement or any amendment thereof; provided, that such judgment, order
or decree shall not be entered except upon two days' prior written
notice to the Port Authority of the proposed entry thereof and provided
further, that upon an appeal taken by the Port Authority from such judg-
ment, order or decree the service of the notice of appeal shall perfect
the appeal and shall stay the execution of such judgment, order or
decree appealed from, without an undertaking or other security.
Nothing herein contained shall be deemed to revoke, rescind or affect
any consents to suits, actions or proceedings against the Port Authority
heretofore given by the two said states in chapter three hundred one of
the laws of New York of nineteen hundred fifty and continued by part XIV
of this article and chapter two hundred four of the laws of New Jersey
of nineteen hundred fifty-one.
§ 2005. Funding. The moneys in the general reserve fund of the Port
Authority may be pledged in whole or in part by the Port Authority as
A. 6754 84
security for or applied by it to the repayment with interest of any
moneys which it may raise upon Narrows bridge bonds issued by it from
time to time and the moneys in said general reserve fund may be applied
by the Port Authority to the fulfillment of any other undertakings which
it may assume to or for the benefit of the holders of any such bonds.
Subject to prior liens and pledges (and to the obligation of the Port
Authority to apply revenues to the maintenance of its general reserve
fund in the amount prescribed by the general reserve fund statutes), the
revenues of the Port Authority from facilities established, constructed,
acquired or effectuated through the issuance or sale of bonds of the
Port Authority secured by a pledge of its general reserve fund may be
pledged in whole or in part as security for or applied by it to the
repayment with interest of any moneys which it may raise upon Narrows
bridge bonds, and said revenues may be applied by the Port Authority to
the fulfillment of any other undertakings which it may assume to or for
the benefit of the holders of such bonds.
In the event that at any time the balance of moneys theretofore paid
into the general reserve fund and not applied therefrom shall exceed an
amount equal to one-tenth of the par value of all bonds legal for
investment, as defined and limited in the general reserve fund statutes,
issued by the Port Authority and currently outstanding at such time, by
reason of the retirement of Narrows bridge bonds the par value of which
had theretofore been included in the computation of said one-tenth, then
the Port Authority may pledge or apply such excess for and only for the
purposes for which it is authorized by the general reserve fund statutes
to pledge the moneys in the general reserve fund, and such pledge may be
made in advance of the time when such excess may occur.
§ 2006. Bi-state covenant. The two states covenant and agree with
each other and with the holders of Narrows bridge bonds as security for
which there may or shall be pledged (directly or indirectly, or through
the medium of its general reserve fund or otherwise) the revenues, or
any part thereof, of the Narrows bridge or any other facility owned or
operated by the Port Authority, that the two states will not, so long as
any of such bonds remain outstanding and unpaid, diminish or impair the
power of the Port Authority to establish, levy and collect tolls, rents,
charges or other fees in connection with the Narrows bridge (so long as
the Port Authority shall retain title to such bridge) or any such other
facility; and that the two said states will not, so long as any of such
bonds remain outstanding and unpaid and so long as the Port Authority
shall retain title to the Narrows bridge, authorize the construction of
any other vehicular bridges or tunnels (other than bridges or tunnels
exclusively for railway rapid transit purposes) between Staten Island
and Long Island by any person or body other than the Port Authority.
§ 2007. Security bonds. Narrows bridge bonds are hereby made securi-
ties in which all state and municipal officers and bodies of both
states, all banks, bankers, trust companies, savings banks, building and
loan associations, savings and loan associations, investment companies
and other persons carrying on a banking business, all insurance compa-
nies, insurance associations and other persons carrying on an insurance
business, and all administrators, executors, guardians, trustees and
other fiduciaries, and all other persons whatsoever, who are now or may
hereafter be authorized by either state to invest in bonds of such
state, may properly and legally invest any funds, including capital,
belonging to them or within their control; and said bonds are hereby
made securities which may properly and legally be deposited with and
shall be received by any state or municipal officer or agency of either
A. 6754 85
state for any purpose for which the deposit of bonds of such state is
now or may hereafter be authorized.
§ 2008. Authorization to acquire real property. If the Port Authority
shall find it necessary or convenient to acquire any real property for
Narrows bridge purposes (including temporary construction, rehabili-
tation or improvement), whether for immediate or future use, the Port
Authority may find and determine that such property, whether a fee
simple absolute or a lesser interest, is required for a public use, and
upon such determination the said property shall be and shall be deemed
to be required for such public use until otherwise determined by the
Port Authority, and such determination shall not be affected by the fact
that such property has theretofore been taken for and is then devoted to
a public use; but the public use in the hands of or under the control of
the Port Authority shall be deemed superior to the public use in the
hands of any other person, association or corporation. If the Port
Authority shall find it necessary or convenient hereunder to acquire any
real property which is then devoted to a public use, the Port Authority
shall have power to exchange or substitute any other real property for
such real property upon terms agreed to by the Port Authority and the
owner of such property then devoted to a public use, and to find and
determine that such other real property is also required for a public
use; upon such determination the said other property shall be and shall
be deemed to be required for such public use.
The Port Authority may acquire and is hereby authorized to acquire any
real property in the state of New York required for a public use under
the preceding paragraph, whether a fee simple absolute or a lesser
estate, by the exercise of the right of eminent domain under and pursu-
ant to the eminent domain procedure law of the state of New York, or at
the option of the Port Authority pursuant to any other and alternate
procedure provided by law by such state. Nothing herein contained shall
be construed to prevent the Port Authority from bringing any proceedings
in either state to remove a cloud on title or such other proceedings as
it may, in its discretion, deem proper and necessary, or from acquiring
any such property in either state by negotiation or purchase.
Where a person entitled to an award remains in possession of such
property after the time of the vesting of title in the Port Authority,
the reasonable value of his use and occupancy of such property subse-
quent to such time, as fixed by agreement or by the court in such
proceedings or by any court of competent jurisdiction, shall be a lien
against such award, subject only to liens of record at the time of the
vesting of title in the Port Authority.
§ 2009. Prior consent required. Anything in this part to the contrary
notwithstanding, no property now or hereafter vested in or held by the
city of New York shall be taken by the Port Authority without the
authority or consent of the city as provided in said compact of April
thirty, nineteen hundred twenty-one. The Port Authority is also hereby
authorized and empowered to acquire from said city by agreement there-
with, and the city, notwithstanding any contrary provision of law, is
hereby authorized and empowered to grant and convey upon reasonable
terms and conditions any real property which the Port Authority shall
find to be necessary for Narrows bridge purposes, including such real
property as has already been devoted to a public use. The state of New
York hereby consents to the use and occupation of the real property of
such state which the Port Authority shall find to be necessary for
Narrows bridge purposes, including lands of the state lying under water,
and the department, board or division or other agency of the state exer-
A. 6754 86
cising supervision of such property shall execute such documents as it
may deem necessary to evidence the right to such use and occupation.
§ 2010. Authorization of agents to enter property. The Port Authority
and its duly authorized agents, and all persons acting under its author-
ity and by its direction, may enter in the daytime into and upon any
real property which it shall be necessary so to enter, for the purpose
of making such surveys, diagrams, maps or plans, or for the purpose of
making such soundings or borings as the Port Authority may deem neces-
sary or convenient for the purposes of this part and the concurrent act
of the state of New Jersey.
§ 2011. Essential government function. The construction, maintenance
and operation of the Narrows bridge are and will be in all respects for
the benefit of the people of the states of New York and New Jersey, for
the increase of their commerce and prosperity and for the improvement of
their health and living conditions and shall be deemed to be public
purposes; and the Port Authority shall be regarded as performing an
essential governmental function in undertaking the construction, mainte-
nance and operation thereof and in carrying out the provisions of law
relating thereto.
§ 2012. Tax exemption on acquired property. No taxes or assessments
shall be levied or collected upon any property acquired or used for
Narrows bridge purposes.
§ 2013. Governmental nature. Any declarations contained herein and in
the concurrent act of the state of New Jersey with respect to the
governmental nature and public purpose of the Narrows bridge and to the
exemption of Narrows bridge property from taxation and to the discretion
of the Port Authority with respect to the operation thereof shall not be
construed to imply that other Port Authority property and operations are
not of a governmental nature or do not constitute public purposes, or
that they are subject to taxation, or that the determinations of the
Port Authority with respect thereto are not conclusive. The powers
vested in the Port Authority herein and in the concurrent act of the
state of New Jersey (including but not limited to the powers to acquire
real property by condemnation and to make or effectuate additions,
improvements, approaches and connections) shall, except as herein other-
wise expressly stated, be continuing powers and no exercise thereof
shall be deemed to exhaust them or any of them.
The provisions of chapter forty-seven of the laws of New York of nine-
teen hundred thirty-one as continued by part III of this article and
chapter four of the laws of New Jersey of nineteen hundred thirty-one
shall not apply to the Narrows bridge.
§ 2014. Agreement. This section and the preceding sections of this
part constitute an agreement between the states of New York and New
Jersey supplementary to the compact between the two states dated April
thirty, nineteen hundred twenty-one, and amendatory thereof, and shall
be liberally construed to effectuate the purposes of said compact and of
the comprehensive plan heretofore adopted by the two states, and the
powers vested in the Port Authority hereby shall be construed to be in
aid of and supplemental to and not in limitation of or in derogation of
any of the powers heretofore conferred upon or delegated to the Port
Authority.
PART XXI
NEW JERSEY TURNPIKE CONNECTIONS
Section 2101. Definitions.
A. 6754 87
2102. Authorization for agreement with New Jersey agencies.
2103. Securities.
§ 2101. Definitions. As used in this part:
1. "Port authority" shall mean the Port of New York Authority;
2. "Bonds" shall mean bonds, notes, securities or other obligations or
evidences of indebtedness;
3. "Newark bay-Hudson county extension" shall mean the turnpike
project of the New Jersey Turnpike Authority extending between the
vicinity of Port street and Newark airport in the city of Newark and the
vicinity of the Holland tunnel in Hudson county, authorized by subdivi-
sion (c) of section one of chapter forty-one of the laws of New Jersey
of one thousand nine hundred forty-nine, as amended by chapter two
hundred eighty-six of the laws of New Jersey of one thousand nine
hundred fifty-one;
4. "Newark bay-Hudson county extension terminal connections" shall
mean the connections to the Newark bay-Hudson county extension at the
following locations: (a) at or in the vicinity of the westerly end of
the Newark bay-Hudson county extension to interconnect United States
Highway route 1, the turnpike toll plaza, Port street and Newark
airport, and (b) at or in the vicinity of the Holland tunnel plaza and
thence northerly in Hudson county to a point at grade at or in the
vicinity of Paterson avenue in the city of Hoboken.
§ 2102. Authorization for agreement with New Jersey agencies. The
port authority is hereby authorized and empowered, in its discretion, to
enter into an agreement or agreements upon such terms and conditions as
it may deem in the public interest, with the New Jersey Turnpike Author-
ity, or the New Jersey state highway department, or both, whereby the
port authority may undertake to pay to such other party or parties to
such agreement or agreements such portion or portions of the cost of
constructing either or both of said Newark bay-Hudson county extension
terminal connections as the port authority shall determine to be propor-
tionate to the benefit to facilities owned or operated by the port
authority from such connections, whether or not such connections shall
constitute approaches or connections to such port authority facilities.
§ 2103. Securities. The bonds which may be issued by the port authori-
ty to provide funds to make all or any portion of the payment or
payments required by an agreement or agreements authorized by section
twenty-one hundred two of this part and for purposes incidental thereto
are hereby made securities in which all state and municipal officers and
bodies of New Jersey and New York, all banks, bankers, trust companies,
savings banks, building and loan associations, saving and loan associ-
ations, investment companies and other persons carrying on a banking
business, all insurance companies, insurance associations and other
persons carrying on an insurance business, and all administrators, exec-
utors, guardians, trustees and other fiduciaries and all other persons
whatsoever are now or may hereafter be authorized by either the state of
New Jersey or the state of New York to invest in bonds or other obli-
gations of such state, may properly and legally invest any funds includ-
ing capital belonging to them or within their control; and said bonds
are hereby made securities which may properly and legally be deposited
with and shall be received by any state or municipal officer or agency
of either the state of New Jersey or the state of New York for any
purpose for which the deposit of bonds or other obligations of such
state is now or may hereafter be authorized.
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PART XXII
COMMUTER RAILROAD CARS
Section 2201. Commuter railroad cars.
§ 2201. Commuter railroad cars. 1. Upon the concurrence of the state
of New Jersey, the states of New York and New Jersey agree that each
such state may elect by appropriate legislation to provide for the
purchase and rental by the port of New York authority of railroad cars
for passenger transportation in accordance with this part.
2. For the purpose of this part:
(a) "Port authority" shall mean the port of New York authority.
(b) "Commuter railroad of an electing state" shall mean a railroad
transporting passengers between municipalities in the portion of the
port of New York district within such state, the majority of the track-
age of which within the port of New York district utilized for the
transportation of passengers shall be in such state.
(c) "Railroad cars" shall mean railroad passenger cars, including
self-propelled cars, and locomotives and other rolling stock used in
passenger transportation.
3. (a) Upon the election by either state as provided in subdivision
one of this section, the port authority shall be authorized and
empowered to:
(i) purchase and own railroad cars for the purpose of leasing them to
any commuter railroad of such state; provided, however, that no rail-
road cars shall be so purchased except with advances received or money
borrowed pursuant to subparagraphs (ii) and (iii) of this paragraph, nor
shall the port authority incur expenses in connection with such purchase
and ownership except out of such advances or borrowed money or the
rentals received from such leasing;
(ii) receive and accept advances from such state for such purchase
upon such terms and conditions as such state may specify;
(iii) borrow money from any source for such purchase or for the repay-
ment of such advances or money borrowed, subject to the provisions of
paragraph (b) of this subdivision;
(iv) secure the repayment of principal of and interest upon any such
borrowed money by and only by a lien upon such railroad cars, a pledge
of the rentals therefrom and the liability of the electing state for the
repayment of such principal and interest;
(v) lease such railroad cars directly or indirectly to any commuter
railroad of such state upon such terms and conditions as the port
authority shall deem in the public interest, including postponement of
receipt of rentals by the port authority in the interest of increasing
and improving the service rendered to the commuting public; provided,
however, that no such lease shall become effective until it has been
approved in writing by the officer of the electing state designated by
appropriate legislation; and
(vi) sell or otherwise dispose of such cars upon such terms and condi-
tions and to such persons as the port authority shall deem in the public
interest, except as may be otherwise directed by such electing state.
(b) The port authority shall not borrow money pursuant to subparagraph
(iii) of paragraph (a) of this subdivision unless and until the electing
state shall have duly amended its constitution, if necessary, making or
authorizing making the state liable for the repayment of the money so
borrowed and interest thereon or for the fulfillment of the rental obli-
gations to the port authority, or both; and the port authority shall
A. 6754 89
not borrow any such money unless and until the electing state shall be
made liable for the repayment of any such money.
4. The purchase and ownership by the port authority of railroad cars
and the rental thereof to commuter railroads of the states of New York
or New Jersey are and will be in all respects for the benefit of the
people of the said two states for the increase of their commerce and
prosperity and for the improvement of their health, safety and living
conditions and shall be deemed to be public purposes; and the port
authority shall be regarded as performing an essential governmental
function in undertaking such purchase, ownership and rental and in
carrying out the provisions of law relating thereto.
5. The bonds or other evidences of indebtedness which may be issued by
the port authority pursuant to this part are hereby made securities in
which all state and municipal officers and bodies, all banks, bankers,
trust companies, savings banks, savings and loan associations, invest-
ment companies and other persons carrying on a banking business, all
insurance companies, insurance associations and other persons carrying
on an insurance business, and all administrators, executors, guardians,
trustees and other fiduciaries and all other persons whatsoever who are
now or may hereafter be authorized to invest in bonds or other obli-
gations of the electing state, may properly and legally invest any
funds, including capital, belonging to them or within their control;
and said bonds or other evidences of indebtedness are hereby made secu-
rities which may properly and legally be deposited with and shall be
received by any state or municipal officer or agency for any purpose for
which the deposit of bonds or other evidences of indebtedness of the
electing state is now or may hereafter be authorized. Such bonds or
other evidences of indebtedness shall constitute negotiable instruments.
Notwithstanding the provisions of this or any other legislation the
rentals received by the port authority from the leasing of any railroad
cars under this part shall not be pooled or applied to the establishment
or maintenance of any reserve fund of the port authority pledged as
security for any bonds or other evidences of indebtedness other than
those issued pursuant to this part, and the bonds or other evidences of
indebtedness issued pursuant to this part shall not be included in meas-
uring the principal amount of bonds or other evidences of indebtedness
upon which the amount of any such reserve fund is calculated.
6. No taxes or assessments shall be levied or collected upon any rail-
road cars owned by the port authority pursuant to this part or upon any
leasehold interest therein.
7. (a) The state of New York hereby elects pursuant to subdivision one
of this section to provide for the purchase and rental by the port
authority of railroad cars on the commuter railroads of this state. The
commissioner of the department of transportation is hereby designated as
the officer of this state for the approval of leases pursuant to subpar-
agraph (v) of paragraph (a) of subdivision three of this section.
(b) In the event that this state shall make advances to the port
authority for the purchase and rental of railroad cars, the port author-
ity shall repay any such advances, pursuant to an appropriate written
agreement with the director of the budget entered into prior to the
requisitioning of such advances, out of money borrowed for such purpose
under subparagraph (iii) of paragraph (a) of subdivision three of this
section. Except as so repaid, such advances shall be repaid annually by
the port authority to the extent and only to the extent that the port
authority shall have received rentals, directly or indirectly, from all
the commuter railroads of this state to which railroad cars have been
A. 6754 90
leased under this part in excess of the components of such rentals which
represent the port authority's administrative, legal and financial
expenses in connection with the purchase, ownership and lease.
(c) In the event that railroad cars purchased by the port authority
are sold upon the default of any lessee thereof, the port authority
shall deduct from the proceeds of such sale its unpaid administrative,
legal and financial expenses in connection with such lease and sale and
an amount equal to the unpaid principal and interest and mandatory
redemption premiums, whenever payable, upon its outstanding bonds or
other evidences of indebtedness, the proceeds of the issuance of which
shall have been applied to the purchase of the railroad cars sold and
shall pay the balance to this state, but the port authority shall have
full authority to agree with any other creditors of such lessee, either
in advance of or after default, as to the order of payment to the port
authority and such other creditors, either out of the assets of such
lessee available for such creditors, including the port authority, or
out of the proceeds of the joint sale of various properties of such
creditors theretofore used by such lessee, including such railroad cars
of the port authority.
(d) Except as provided in paragraph (c) of this subdivision, any rail-
road cars purchased by the port authority with the proceeds of the issu-
ance by the port authority of any series of bonds or other evidences of
indebtedness shall become the property of this state after the final
payment of all the bonds or other evidences of indebtedness of such
series, and thereafter shall be held by the port authority subject to
the disposition of this state, and any railroad cars purchased by the
port authority with any advances from this state shall become the prop-
erty of this state upon the repayment of all such advances solely out of
rentals in excess of the port authority's administrative, legal and
financial expenses in connection therewith; or if the proceeds of port
authority bonds or other evidences of indebtedness of any series shall
have been applied to repay all or any portion of such advances, then
such cars shall become the property of this state upon the final payment
of all such bonds or other evidences of such indebtedness of such
series.
(e)(i) To the extent authorized by the constitution at the time of the
issuance of bonds or notes of the port authority for any of the purposes
of this part, the punctual payment of such bonds and notes shall be, and
the same hereby is, fully and unconditionally guaranteed by the state of
New York, both as to principal and interest, according to their terms;
and such guaranty shall be expressed upon the face thereof by the signa-
ture or facsimile signature of the comptroller or a deputy comptroller
of the state of New York. If the port authority shall fail to pay, when
due, the principal of, or interest upon, such bonds or notes, such comp-
troller shall pay the holder thereof. In furtherance of such guaranty
of punctual payment, if the comptroller of this state shall receive
written notice from the trustee or other fiduciary or other duly author-
ized representative of the holder or holders of such bonds and notes
designated in any agreement between the port authority and such holder
or holders that the port authority has failed to make or deposit any
payment of interest or principal required by such agreement to or with
such trustee or fiduciary or otherwise at or before the time specified
in such agreement, then such comptroller shall within three days of the
receipt of such notice pay to such trustee or fiduciary or other duly
authorized representative the amount necessary to meet any deficiency in
the payment of such interest and principal, when due.
A. 6754 91
If the comptroller shall make a payment or payments pursuant to this
subparagraph, the state shall be subrogated to the rights of the bond-
holders or noteholders to whom, or on account of whom, such payment or
payments were made, in and to the revenues pledged to such holders; and
for such purpose, to the extent any such revenues in the hands of the
port authority may be inadequate to repay such payment or payments made
by the state, the state shall be further subrogated to the rights of the
port authority to recover any rentals due and unpaid to the port author-
ity as of the date of such payment or payments and pledged to such hold-
ers as aforesaid.
(ii) Such bonds and notes shall be sold by the port authority in such
manner and at such time as the port authority, with the approval of the
comptroller, shall determine. The proceeds of each sale of bonds or
notes shall be applied to the purpose or purposes set forth in the
resolution of the port authority authorizing the issuance of such bonds
or notes. If, after having accomplished the purpose or purposes set
forth in such resolution there remains any unexpended balance (including
interest earned by the port authority on such proceeds), such unexpended
balance shall be applied by the port authority, to the extent practica-
ble, to the purchase for retirement or to the redemption of bonds or
notes included in such sale, or otherwise as the port authority may
determine for the purposes of this part. If any commuter car, the
acquisition of which is financed or refinanced by the issuance of bonds
or notes under this part, be lost, damaged or destroyed, the proceeds of
any insurance policies covering such loss, damage or destruction or any
payments made to the port authority by the lessee of such car on account
of such loss, damage or destruction shall be applied by the port author-
ity, to the extent practicable, to the purchase for retirement or to the
redemption of bonds or notes of such series, or otherwise as the port
authority may determine for the purposes of this part.
(iii) The port authority is designated as the agent of the state of
New York for the purpose of selling, leasing or otherwise disposing of
any railroad cars which shall become the property of the state pursuant
to paragraph (d) of this subdivision. As such agent the port authority
may agree, upon such terms and conditions as may be deemed appropriate
by it, with any lessee of railroad cars or with any other person, either
in advance of or after the time when such cars shall become the property
of the state, so to sell, lease or otherwise dispose of such cars. In
the event any such cars are so sold, leased or otherwise disposed of by
the port authority, the port authority shall pay over to the state, as
promptly after receipt as may be practicable, any balance of the
proceeds thereof, which remain after deduction of the port authority's
administrative, legal and financial expenses in connection with or aris-
ing out of such sale, lease or other disposition.
PART XXIII
WORLD TRADE CENTER
Section 2301. World trade center.
§ 2301. World trade center. 1. The states of New York and New Jersey
hereby find and determine:
(a) that the transportation of persons to, from and within the port of
New York, and the flow of foreign and domestic cargoes to, from and
through the port of New York are vital and essential to the preservation
of the economic well-being of the northern New Jersey-New York metropol-
itan area;
A. 6754 92
(b) that in order to preserve the northern New Jersey-New York metro-
politan area from economic deterioration, adequate facilities for the
transportation of persons must be provided, preserved and maintained and
that rail services are and will remain of extreme importance to such
transportation of persons;
(c) that the interurban electric railway now or heretofore operated by
the Hudson & Manhattan railroad company is an essential railroad facili-
ty serving the northern New Jersey-New York metropolitan area, that its
physical plant is in a severely deteriorated condition, and that it is
in extreme financial condition;
(d) that the immediate need for the maintenance and development of
adequate railroad facilities for the transportation of persons between
northern New Jersey and New York would be met by the acquisition, reha-
bilitation and operation of the said Hudson & Manhattan interurban elec-
tric railway by a public agency, and improvement and extensions of the
rail transit lines of said railway to permit transfer of its passengers
to and from other transportation facilities and in the provision of
transfer facilities at the points of such transfers;
(e) that in order to preserve and protect the position of the port of
New York as the nation's leading gateway for world commerce it is incum-
bent on the states of New York and New Jersey to make every effort to
insure that their port receives its rightful share of the oceanborne
cargo volumes generated by the economy of the nation;
(f) that the servicing functions and activities connected with the
oceanborne and overseas airborne trade and commerce of the port of New
York district as defined in the compact between the said two states
dated April thirty, nineteen hundred twenty-one (hereinafter called the
port district), including customs clearance, shipping negotiations,
cargo routing, freight forwarding, financing, insurance arrangements and
other similar transactions which are presently performed in various,
scattered locations in the city of New York, state of New York, should
be centralized to provide for more efficient and economical transporta-
tion of persons and more efficient and economical facilities for the
exchange and buying, selling and transportation of commodities and other
property in world trade and commerce;
(g) that unification, at a single, centrally located site, of the
principal New York terminal of the aforesaid interurban electric railway
and a facility of commerce accommodating the said functions and activ-
ities described in paragraph (f) of this subdivision and the appropriate
governmental, administrative and other services connected with or inci-
dental to transportation of persons and property and the promotion and
protection of port commerce, and providing a central locale for exhibit-
ing and otherwise promoting the exchange and buying and selling of
commodities and property in world trade and commerce, will materially
assist in preserving for the two states and the people thereof the mate-
rial and other benefits of a prosperous port community;
(h) that the port authority, which was created by agreement of the two
states as their joint agent for the development of the transportation
and terminal facilities and other facilities of commerce of the port
district and for the promotion and protection of the commerce of their
port, is the proper agency to act in their behalf (either directly or by
or through wholly-owned subsidiary corporations) to effectuate, as a
unified project, the said interurban electric railway and its extensions
and the facility of commerce described in paragraph (g) of this subdivi-
sion; and
A. 6754 93
(i) that the undertaking of the aforesaid unified project by the port
authority has the single object of preserving, and is part of a unified
plan to aid in the preservation of, the economic well-being of the
northern New Jersey-New York metropolitan area and is found and deter-
mined to be in the public interest.
2. The following terms as used in this act shall have the following
meanings:
(a) "Bonds" shall mean bonds, notes, securities or other obligations
or evidences of indebtedness;
(b) "Effectuation" of a project or any facility or part of a facility
constituting a portion of a project shall include but not be limited to
its establishment, acquisition, construction, development, maintenance,
operation, improvement (by way of betterments, additions or otherwise)
and rehabilitation;
(c) "Exchange place terminal area" shall mean the area in the city of
Jersey City, state of New Jersey, bounded generally by Exchange place
and Montgomery street, by Warren street, by Pearl street, by Greene
street, and by Morgan street as extended to the bulkhead line and by
said bulkhead line, together with such additional contiguous area as may
be agreed upon from time to time between the port authority and the said
city;
(d) "General reserve fund statutes" shall mean chapter forty-eight of
the laws of New York of nineteen hundred thirty-one as amended and
continued by part XXIX of this article, and chapter five of the laws of
New Jersey of nineteen hundred thirty-one as amended, and "general
reserve fund" shall mean the general reserve fund of the port authority
authorized by said statutes;
(e) "Hudson tubes" shall mean that portion of the port development
project constituting a railroad facility consisting of the four inter-
state rail tunnels under the Hudson river now or heretofore owned or
operated by the Hudson & Manhattan railroad company, the rail transit
lines of the Hudson tubes, the balance of the interurban electric rail-
way system in and through said tunnels and over said lines and inci-
dental thereto (including but not limited to the portion of such lines
and system now or heretofore operated jointly by said railroad company
and the Pennsylvania railroad company), terminals, including but not
limited to terminals in the Hudson tubes-world trade center area, in the
Journal square terminal area and in the Exchange place terminal area,
and other related railroad property;
(f) "Hudson tubes extensions" shall mean those portions of the port
development project constituting passenger railroad facilities (1)
extending directly from the rail transit lines of the Hudson tubes, over
new rail transit lines or on or over the existing rail transit lines of
other railroads, to transfer facilities in the rail passenger transfer
area, for the transfer of passengers of the Hudson tubes to and from
other railroads, and (2) extending from Pennsylvania station in the city
of Newark, state of New Jersey, over new rail transit lines or on or
over the existing rail transit lines of other railroads, to the vicinity
of the city of Plainfield, state of New Jersey, including construction,
reconstruction and improvement of necessary stations in and between the
city of Newark and the vicinity of the city of Plainfield, together with
such additional rail or other mass transportation, terminal, station,
parking, storage and service facilities as operations may require, and
shall include a connection to provide improved access to Newark interna-
tional airport if and to the extent such connection shall not be other-
wise provided by the port authority as air terminal facilities for said
A. 6754 94
airport, and (3) consisting of the following improvements to passenger
railroad lines connecting with the Hudson tubes: (i) direct track
connections between the rail transit lines of the Morris & Essex divi-
sion of the Erie-Lackawanna railroad and the Penn Central transportation
company in the vicinity of the town of Kearny in the state of New
Jersey, (ii) replacement of the railroad bridge (known as the "portal
bridge") operated by the Penn Central transportation company across the
Hackensack river, (iii) direct track connections between the rail trans-
it lines of the Bergen branch and the mail line of the Erie-Lackawanna
railroad in the vicinity of the town of Secaucus in the state of New
Jersey and between the new joint line resulting from such connections
and the rail transit lines of the Penn Central transportation company in
the vicinity of the town of Secaucus in the state of New Jersey, (iv) a
new railroad yard in the vicinity of the town of Secaucus in the state
of New Jersey for the accommodation of railroad passenger equipment, (v)
improvements to Pennsylvania station in the city of New York, state of
New York, and to its railroad approaches from the state of New Jersey,
as necessary or desirable to improve operations and to increase train
and passenger handling capacity, and (vi) such additional rail or other
mass transportation, terminal, station, parking, storage and service
facilities as operations may require with respect to any of the projects
identified in this subparagraph or any of the foregoing or any portion
thereof; and, in addition thereto, other related railroad property;
(g) "Hudson tubes-world trade center area" shall mean the area in the
borough of Manhattan, city and state of New York, bounded generally by
the east side of Church street on the east, the south side of Liberty
street and the south side of Liberty street extended on the south, the
Hudson river on the west, and on the north by a line beginning at the
point of intersection of the Hudson river and the north side of Vesey
street extended, running along the north side of Vesey street extended
and the north side of Vesey street to the west side of Washington
street, then along the west side of Washington street to the north side
of Barclay street, then along the north side of Barclay street to the
east side of West Broadway, then along the east side of West Broadway to
the north side of Vesey street, then along the north side of Vesey
street to the east side of Church street, together with such additional
contiguous area as may be agreed upon from time to time between the port
authority and the said city;
(h) "Journal square terminal area" shall mean the area in the city of
Jersey City, state of New Jersey, bounded generally by Journal square,
Hudson boulevard, Pavonia avenue, Summit avenue and Sip avenue, together
with such additional contiguous area as may be agreed upon from time to
time between the port authority and the said city;
(i) "Municipality" shall mean a county, city, borough, village, town,
township or other similar political subdivision of New York or New
Jersey;
(j) "Parking facilities" forming a part of the Hudson tubes or Hudson
tubes extensions shall mean one or more areas, buildings, structures,
improvements or other accommodations or appurtenances at or in the
vicinity of any terminal or station of the Hudson tubes or Hudson tubes
extensions and necessary, convenient or desirable in the opinion of the
port authority for the parking of motor vehicles of users of the Hudson
tubes or the Hudson tubes extensions and of members of the general
public and for the parking and storage of omnibuses and railroad cars
serving users of the Hudson tubes or the Hudson tubes extensions and for
the transfer of the operators and passengers of such motor vehicles,
A. 6754 95
omnibuses and railroad cars to and from the railroad cars of the Hudson
tubes or the Hudson tubes extensions, and for purposes incidental there-
to;
(k) "Purposes of this part" shall mean the effectuation of the port
development project and of each facility constituting a portion thereof
and of each part of each such facility, and purposes incidental thereto;
(l) "Rail passenger transfer area" shall mean the area in the state of
New Jersey bounded as follows: beginning on the west bank of the Hudson
river at the southerly side of the right-of-way of the Central railroad
of New Jersey easterly of the Communipaw station in the city of Jersey
City, thence northwestwardly along said southerly side of the right-of-
way of the Central railroad of New Jersey through the cities of Jersey
City and Kearny to Broad street in the city of Newark; thence northward-
ly along Broad street to Clay street, thence eastwardly along Clay
street to the boundary between the counties of Hudson and Essex in the
Passaic river, thence northwardly along said boundary to its inter-
section with the boundary line between the counties of Bergen and
Hudson, thence eastwardly and northwardly along said boundary to New
Jersey state highway route three, thence eastwardly along said route
three, the Lincoln tunnel viaduct and a line in continuation of said
viaduct and tunnel to the west bank of the Hudson river, thence south-
wardly along said west bank to the point and place of beginning;
(m) "Rail transit lines" shall mean right-of-way and related trackage,
and the "rail transit lines of the Hudson tubes" shall mean the rail
transit lines beginning at the Market street station of the Pennsylvania
railroad company in the city of Newark, state of New Jersey and extend-
ing generally (i) eastwardly along the joint service and operating route
now or heretofore used by the Hudson & Manhattan railroad company and
the Pennsylvania railroad company to the point of connection thereof
with the tracks now or formerly of the Hudson & Manhattan railroad
company in or about the Journal square terminal area; thence (ii)
continuing eastwardly along the tracks and right-of-way now or hereto-
fore used by the Hudson & Manhattan railroad company through the city of
Jersey City, state of New Jersey and through the tunnels under the
waters of the Hudson river and through Cortlandt and Fulton streets in
the borough of Manhattan, city and state of New York to the Hudson
terminal in the Hudson tubes-world trade center area; with a branch from
the aforesaid route from a point located between the Grove street and
Exchange place stations in said city of Jersey City northwardly and
eastwardly to the Hoboken terminal station in the city of Hoboken, state
of New Jersey and with a second branch from said first branch eastwardly
and through the tunnels under the waters of the Hudson river to the said
borough of Manhattan passing through or adjacent to Morton street,
Greenwich street, Christopher street and the avenue of the Americas
(formerly Sixth avenue) to the West Thirty-third street terminal in said
borough of Manhattan; and rail transit lines of the Hudson tubes and of
the Hudson tubes extensions shall in each case include such rail transit
lines as the port authority may deem necessary, convenient or desirable
to and from parking facilities, storage yards, maintenance and repair
shops and yards forming part thereof;
(n) "Real property" shall mean lands, structures, franchises and
interests in land, waters, lands under water and riparian rights and any
and all things and rights included within said term, and includes not
only fees simple absolute but also any and all lesser interests, includ-
ing but not limited to easements, rights-of-way, uses, leases, licenses
and all other incorporeal hereditaments and every estate, interest or
A. 6754 96
right, legal or equitable, including terms for years, and liens thereon
by way of judgments, mortgages or otherwise;
(o) "Related railroad property" shall mean any property, real,
personal or mixed, necessary, convenient or desirable, in the opinion of
the port authority, to the effectuation of a railroad facility which is
a portion of the port development project and shall include but not be
limited to rail transit lines; terminals and stations; power, fuel,
communication, signal and ventilation systems; cars and other rolling
stock; storage yards; repair and maintenance shops, yards, equipment and
parts; parking facilities; transfer facilities for transfer of passen-
gers between such railroad facility and other railroads or omnibuses;
offices; and other buildings, structures, improvements, areas, equipment
or supplies; and, in the case of buildings, structures, improvements or
areas in which any one or more of such railroad functions are accommo-
dated shall include all of such buildings, structures, improvements or
areas notwithstanding that portions thereof may not be devoted to any of
the purposes of the port development project other than the production
of incidental revenue available for the expenses of all or part of the
port development project, except that in the Hudson tubes-world trade
center area the portions of such buildings, structures, improvements or
areas constructed or established pursuant to this part which are not
devoted primarily to railroad functions, activities or services or to
functions, activities or services for railroad passengers shall be
deemed a part of the world trade center and not related railroad proper-
ty;
(p) "Surplus revenues" from any facility shall mean the balance of the
revenues from such facility (including but not limited to the revenues
of any subsidiary corporation incorporated for any of the purposes of
this act) remaining at any time currently in the hands of the port
authority after the deduction of the current expenses of the operation
and maintenance thereof, including a proportion of the general expenses
of the port authority as it shall deem properly chargeable thereto,
which general expenses shall include but not be limited to the expense
of protecting and promoting the commerce of the port district, and after
the deduction of any amounts which the port authority may or shall be
obligated or may or shall have obligated itself to pay to or set aside
out of the current revenues therefrom for the benefit of the holders of
any bonds legal for investment as defined in the general reserve fund
statutes;
(q) "Surplus revenues of the port development project" shall mean the
surplus revenues of the Hudson tubes, the Hudson tubes extensions and
the world trade center; and
(r) "World trade center" shall mean that portion of the port develop-
ment project constituting a facility of commerce consisting of one or
more buildings, structures, improvements and areas necessary, convenient
or desirable in the opinion of the port authority for the centralized
accommodation of functions, activities and services for or incidental to
the transportation of persons, the exchange, buying, selling and trans-
portation of commodities and other property in world trade and commerce,
the promotion and protection of such trade and commerce, governmental
services related to the foregoing and other governmental services,
including but not limited to custom houses, customs stores, inspection
and appraisal facilities, foreign trade zones, terminal and transporta-
tion facilities, parking areas, commodity and security exchanges,
offices, storage, warehouse, marketing and exhibition facilities and
other facilities and accommodations for persons and property and, in the
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case of buildings, structures, improvements and areas in which such
accommodation is afforded, shall include all of such buildings, struc-
tures, improvements and areas other than portions devoted primarily to
railroad functions, activities or services or to functions, activities
or services for railroad passengers, notwithstanding that other portions
of such buildings, structures, improvements and areas may not be devoted
to purposes of the port development project other than the production of
incidental revenue available for the expenses of all or part of the port
development project.
3. In furtherance of the aforesaid findings and determinations and in
partial effectuation of and supplemental to the comprehensive plan here-
tofore adopted by the two said states for the development of the said
port district, the port authority is hereby authorized and empowered to
establish, acquire, construct, effectuate, develop, own, lease, main-
tain, operate, improve and rehabilitate a project herein referred to as
the port development project, which shall consist of a facility of
commerce herein referred to as the world trade center, to be located
within the Hudson tubes-world trade center area, and railroad facilities
herein referred to as the Hudson tubes and the Hudson tubes extensions.
The port authority shall proceed as rapidly as may be practicable to
accomplish the purposes of this part.
The port authority is hereby authorized and empowered to establish,
levy and collect such rentals, tolls, fares, fees and other charges as
it may deem necessary, proper or desirable in connection with any facil-
ity or part of any facility constituting a portion of the port develop-
ment project and to issue bonds for any of the purposes of this part and
to provide for payment thereof, with interest upon and the amortization
and retirement of such bonds, and to secure all or any portion of such
bonds by a pledge of such rentals, tolls, fares, fees, charges and other
revenues or any part thereof (including but not limited to the revenues
of any subsidiary corporation incorporated for any of the purposes of
this part), and to secure all or any portion of such bonds by mortgages
upon any property held or to be held by the port authority (or by any
such subsidiary corporation) for any of the purposes of this part, and
for any of the purposes of this part to exercise all appropriate powers
heretofore or hereafter delegated to it by the states of New York and
New Jersey, including, but not limited to, those expressly set forth in
this part. The surplus revenues of the port development project may be
pledged in whole or in part as hereinafter provided.
Unless and until hereafter expressly authorized by the two states the
port authority shall not: (a) operate or permit operation by others of
its Hudson tubes railroad cars or other rolling stock or equipment or
Hudson tubes extensions railroad cars or other rolling stock or equip-
ment except upon the rail transit lines of the Hudson tubes or of the
Hudson tubes extensions and also between the Market street station and
the South street station of the Pennsylvania railroad company in the
city of Newark, state of New Jersey; or (b) except by way of Hudson
tubes extensions as herein defined, make additions, betterments or other
improvements to or of said Hudson tubes or Hudson tubes extensions by
way of extensions of their rail transit lines. Nothing herein contained
shall be deemed to prevent the making by the port authority of such
joint service or other agreements with railroads as it shall deem neces-
sary, convenient or desirable for the use of the Hudson tubes and Hudson
tubes extensions by the railroad cars or other rolling stock or equip-
ment of such railroads and the acquisition of the rights of any or all
parties in any joint service or other agreements the Hudson & Manhattan
A. 6754 98
railroad company or its successors shall have made with other railroads
for such use of the Hudson tubes. The port authority shall not proceed
with the effectuation of any railroad or railroad facility in addition
to the Hudson tubes and the Hudson tubes extensions until hereafter
expressly authorized by the two states. Nothing contained in this part
shall authorize or empower the port authority to establish, construct or
otherwise effectuate an air terminal.
4. The moneys in the general reserve fund may be pledged in whole or
in part by the port authority as security for or applied by it to the
repayment with interest of any moneys which it may raise upon bonds
issued or incurred by it from time to time for any of the purposes of
this part or upon bonds secured in whole or in part by the pledge of the
revenues from the port development project or any portion thereof or
upon bonds both so issued or incurred and so secured; and the moneys in
said general reserve fund may be applied by the port authority to the
fulfillment of any other undertakings which it may assume to or for the
benefit of the holders of any such bonds.
Subject to prior liens and pledges (and to the obligation of the port
authority to apply revenues to the maintenance of its general reserve
fund in the amount prescribed by the general reserve fund statutes), the
revenues from facilities established, constructed, acquired or otherwise
effectuated through the issuance or sale of bonds of the port authority
secured in whole or in part by a pledge of its general reserve fund or
any portion thereof may be pledged in whole or in part as security for
or applied by it to any of the purposes of this part, including the
repayment with interest of any moneys which it may raise upon bonds
issued or incurred from time to time for any of the purposes of this
part or upon bonds secured in whole or in part by the pledge of the
revenues of the port authority from the port development project or any
portion thereof or upon bonds both so issued or incurred and so secured;
and said revenues may be applied by the port authority to the fulfill-
ment of any other undertakings which it may assume to or for the benefit
of the holders of such bonds.
5. In all cases where the port authority has raised or shall hereafter
raise moneys for any of the purposes of this part by the issue and sale
of bonds which are secured in whole or in part by a pledge of the gener-
al reserve fund or any portion thereof, the surplus revenues from any
facility constituting a portion of the port development project and
financed in whole or in part out of the proceeds of such bonds and the
surplus revenue from any other port authority facility the surplus
revenues of which at such time may be payable into the general reserve
fund shall be pooled and applied by the port authority to the establish-
ment and maintenance of the general reserve fund in an amount equal to
one-tenth of the par value of all bonds legal for investment, as defined
in the general reserve fund statutes, issued by the port authority and
currently outstanding, including such bonds issued for any of the
purposes of this part; and all such moneys in said general reserve fund
may be pledged and applied in the manner provided in the general reserve
fund statutes.
In the event that any time the balance of moneys theretofore paid into
the general reserve fund and not applied therefrom shall exceed an
amount equal to one-tenth of the par value of all bonds upon the princi-
pal amount of which the amount of the general reserve fund is calcu-
lated, by reason of the retirement of bonds issued or incurred from time
to time for any of the purposes of this part the par value of which had
theretofore been included in the computation of said amount of the
A. 6754 99
general reserve fund, then the port authority may pledge or apply such
excess for and only for the purposes for which it is authorized by the
general reserve fund statutes to pledge the moneys in the general
reserve fund and such pledge may be made in advance of the time when
such excess may occur.
6. The two states covenant and agree with each other and with the
holders of any affected bonds, as hereinafter defined, that so long as
any of such bonds remain outstanding and unpaid and the holders thereof
shall not have given their consent as provided in their contract with
the port authority, the two states will not diminish or impair the power
of the port authority (or any subsidiary corporation incorporated for
any of the purposes of this part) to establish, levy and collect
rentals, tolls, fares, fees or other charges in connection with any
facility constituting a portion of the port development project or any
other facility owned or operated by the port authority of which the
revenues have been or shall be pledged in whole or in part as security
for such bonds (directly or indirectly, or through the medium of the
general reserve fund or otherwise), or to determine the quantity, quali-
ty, frequency or nature of the service provided in connection with each
such facility.
"Affected bonds" as used in this subdivision shall mean bonds of the
port authority issued or incurred by it from time to time for any of the
purposes of this part or bonds as security for which there may or shall
be pledged, in whole or in part, the general reserve fund or any reserve
fund established by or pursuant to contract between the port authority
and the holders of such bonds, or the revenues of the world trade
center, Hudson tubes, Hudson tubes extensions or any other facility
owned or operated by the port authority any surplus revenues of which
would be payable into the general reserve fund, or bonds both so issued
or incurred and so secured.
7. The port authority is authorized and empowered to co-operate with
the states of New York and New Jersey, with any municipality, with the
federal government and with any agency or commission of any one or more
of the foregoing, or with any one or more of them, for and in connection
with the acquisition, clearance, replanning, rehabilitation, recon-
struction or redevelopment of the Hudson tubes-world trade center area
or of any other area forming part of the port development project for
the purpose of renewal and improvement of said area and for any of the
purposes of this part, and to enter into an agreement or agreements (and
from time to time to enter into agreements amending or supplementing the
same) with any such municipality, commission or agency and with the
states of New York and New Jersey and with the federal government, or
with any one or more of them, for or relating to such purposes, includ-
ing but not limited to agreements with respect to financial assistance,
loans and grants as provided in title one of the housing act of nineteen
hundred forty-nine and all federal laws amendatory and supplemental
thereto and with respect to occupancy of space in the port development
project. The port authority is hereby authorized and empowered to apply
for and accept financial assistance, loans and grants for such purposes
under federal, state or local laws, and to make application directly to
the proper officials or agencies for and receive federal, state or local
loans or grants in aid of any of the purposes of this part.
8. Notwithstanding any contrary provision of law, general, special or
local, either state and any municipality and any commission or agency of
either or both of said two states is authorized and empowered to co-op-
erate with the port authority and to enter into an agreement or agree-
A. 6754 100
ments (and from time to time to enter into agreements amending or
supplementing the same) with the port authority for and in connection
with or relating to the acquisition, clearance, replanning, rehabili-
tation, reconstruction, or redevelopment of the Hudson tubes-world trade
center area or of any other area forming part of the port development
project for the purpose of renewal and improvement of said area as afor-
esaid and for any of the purposes of this part, upon such reasonable
terms and conditions as may be determined by such state, municipality,
agency or commission and the port authority. Such agreement may, without
limiting the generality of the foregoing, include consent to the use by
the port authority of any real property owned or to be acquired by said
state, municipality, agency or commission and consent to the use by such
state, municipality, agency or commission of any real property owned or
to be acquired by the port authority which in either case is necessary,
convenient or desirable in the opinion of the port authority for any of
the purposes of this part, including such real property, improved or
unimproved, as has already been devoted to or has been or is to be
acquired for urban renewal or other public use, and as an incident to
such consents such state, municipality, agency or commission may grant,
convey, lease or otherwise transfer any such real property to the port
authority and the port authority may grant, convey, lease or otherwise
transfer any such real property to such state, municipality, agency or
commission for such term and upon such conditions as may be agreed upon.
If real property of such state, municipality, agency or commission be
leased to the port authority for any of the purposes of this part, such
state, municipality, agency or commission may consent to the port
authority having the right to mortgage the fee of such property and thus
enable the port authority to give as security for its bond or bonds a
lien upon the land and improvements, but such state, municipality, agen-
cy or commission by consenting to the execution by the port authority of
a mortgage upon the leased property shall not thereby assume and such
consent shall not be construed as imposing upon such state, munici-
pality, agency or commission any liability upon the bond or bonds
secured by the mortgage.
Nothing contained in this subdivision shall impair or diminish the
powers vested in either state or in any municipality, agency or commis-
sion to acquire, clear, replan, reconstruct, rehabilitate or redevelop
substandard or insanitary or deteriorating areas and the powers herein
granted to the state, municipality, agency or commission shall be
construed to be in aid of and not in limitation or in derogation of any
such powers, heretofore or hereafter conferred upon or granted to the
state, municipality, agency or commission.
Nothing contained in this part shall be construed to authorize the
port authority to acquire property now or hereafter vested in or held by
any municipality without the authority or consent of such municipality,
provided that the state in which said municipality is located may by
statute enact that such property may be taken by the port authority by
condemnation or the exercise of the right of eminent domain without such
authority or consent; nor shall anything herein impair or invalidate in
any way any bonded indebtedness of the state or such municipality, nor
impair the provisions of law regulating the payment into sinking funds
of revenues derived from municipal property, or dedicating the revenues
derived from municipal property to a specific purpose.
The port authority is hereby authorized and empowered to acquire from
any such municipality, or from any other agency or commission having
jurisdiction in the premises, by agreement therewith, and such munici-
A. 6754 101
pality, agency or commission, notwithstanding any contrary provision of
law, is hereby authorized and empowered to grant and convey, upon
reasonable terms and conditions, any real property which may be neces-
sary, convenient or desirable for any of the purposes of this part,
including such real property as has already been devoted to a public
use.
Any consent by a municipality shall be given and the terms, conditions
and execution by a municipality of any agreement, deed, lease, convey-
ance or other instrument pursuant to this subdivision or any other
provision of this part shall be authorized in the manner provided in
article twenty-two of the compact of April thirty, nineteen hundred
twenty-one between the two states creating the port authority. Any
consent by either state shall be effective if given, and the terms and
conditions and execution of any agreement, deed, lease, conveyance or
other instruments pursuant to this subdivision or an other provision of
this part shall be effective if authorized, by the governor of such
state.
9. The states of New York and New Jersey hereby consent to suits,
actions or proceedings by any municipality against the port authority
upon, in connection with or arising out of any agreement, or any amend-
ment thereof, entered into for any of the purposes of this part, as
follows:
(a) for judgments, orders or decrees restraining or enjoining the port
authority from transferring title to real property to other persons in
cases where it has agreed with said municipality for transfer of such
title to the municipality; and
(b) for judgments, orders or decrees restraining or enjoining the port
authority from committing or continuing to commit other breaches of such
agreement or any amendment thereof; provided, that such judgment, order
or decree shall not be entered except upon two days' prior written
notice to the port authority of the proposed entry thereof; and
provided further that upon appeal taken by the port authority from such
judgment, order or decree the service of the notice of appeal shall
perfect the appeal and stay the execution of such judgment, order or
decree appealed from without an undertaking or other security.
Nothing herein contained shall be deemed to revoke, rescind or affect
any consent to suits, actions, or proceedings against the port authority
heretofore given by the two said states in chapter three hundred one of
the laws of New York of nineteen hundred fifty and continued by part
XXIV of this article, and chapter two hundred four of the laws of New
Jersey of nineteen hundred fifty-one.
10. The effectuation of the world trade center, the Hudson tubes and
the Hudson tubes extensions, or any of such facilities constituting a
portion of the port development project, are and will be in all respects
for the benefit of the people of the states of New York and New Jersey,
for the increase of their commerce and prosperity and for the improve-
ment of their health and living conditions; and the port authority and
any subsidiary corporation incorporated for any of the purposes of this
part shall be regarded as performing an essential governmental function
in undertaking the effectuation thereof, and in carrying out the
provisions of law relating thereto.
11. The port authority shall be required to pay no taxes or assess-
ments upon any of the property acquired or used by it for any of the
purposes of this part or upon any deed, mortgage or other instrument
affecting such property or upon the recording of any such instrument.
However, to the end that no municipality shall suffer undue loss of
A. 6754 102
taxes and assessments by reason of the acquisition and ownership of
property by the port authority for any of the purposes of this part, the
port authority is hereby authorized and empowered, in its discretion, to
enter into a voluntary agreement or agreements with any municipality
whereby the port authority will undertake to pay in lieu of taxes a fair
and reasonable sum or sums annually in connection with any real property
acquired and owned by the port authority for any of the purposes of this
part. Such sums in connection with any real property acquired and owned
by the port authority for any of the purposes of this part shall not be
more than the sum last paid as taxes upon such real property prior to
the time of its acquisition by the port authority; provided, however,
that in connection with any portion of the Hudson tubes-world trade
center area acquired and owned by the port authority for any of the
purposes of this part, after such property is improved pursuant to this
part with world trade center buildings, structures or improvements
greater in value than the buildings, structures or improvements on such
Hudson tubes-world trade center area at the time of its acquisition by
the port authority, then, with regard to such greater value, such sum or
sums may be increased by such additional sum or sums annually as may be
agreed upon between the port authority and the city of New York which
will not include any consideration of the exhibit areas of the world
trade center or of any areas which would be tax exempt in their own
right if title were in the governmental occupants or of other areas
accommodating services for the public or devoted to general public use.
Each such municipality is hereby authorized and empowered to enter into
such agreement or agreements with the port authority and to accept the
payment or payments which the port authority is hereby authorized and
empowered to make, and the sums so received by such municipality shall
be devoted to purposes to which taxes may be applied unless and until
otherwise directed by law of the state in which such municipality is
located.
12. All details of the effectuation, including but not limited to
details of financing, leasing, rentals, tolls, fares, fees and other
charges, rates, contracts and service, of the world trade center, the
Hudson tubes and the Hudson tubes extensions by the port authority shall
be within its sole discretion and its decision in connection with any
and all matters concerning the world trade center, the Hudson tubes and
the Hudson tubes extensions shall be controlling and conclusive. The
local laws, resolutions, ordinances, rules and regulations of the city
of New York shall apply to such world trade center if so provided in any
agreement between the port authority and the city and to the extent
provided in any such agreement.
So long as any facility constituting a portion of the port development
project shall be owned, controlled or operated by the port authority
(either directly or through a subsidiary corporation incorporated for
any of the purposes of this part), no agency, commission or municipality
of either or both of the two states shall have jurisdiction over such
facility nor shall any such agency, commission or municipality have any
jurisdiction over the terms or method of effectuation of all or any
portion thereof by the port authority (or such subsidiary corporation)
including but not limited to the transfer of all or any portion thereof
to or by the port authority (or such subsidiary corporation).
Nothing in this part shall be deemed to prevent the port authority
from establishing, acquiring, owning, leasing, constructing, effectuat-
ing, developing, maintaining, operating, rehabilitating or improving all
or any portion of the port development project through wholly owned
A. 6754 103
subsidiary corporations of the port authority or from transferring to or
from any such corporations any moneys, real property or other property
for any of the purposes of this part. If the port authority shall deter-
mine from time to time to form such a subsidiary corporation it shall do
so by executing and filing with the secretary of state of New York and
the secretary of state of New Jersey a certificate of incorporation,
which may be amended from time to time by similar filing, which shall
set forth the name of such subsidiary corporation, its duration, the
location of its principal office, and the purposes of the incorporation
which shall be one or more of the purposes of establishing, acquiring,
owning, leasing, constructing, effectuating, developing, maintaining,
operating, rehabilitating or improving all or any portion of the port
development project. The directors of such subsidiary corporation shall
be the same persons holding the offices of commissioners of the port
authority. Such subsidiary corporation shall have all the powers vested
in the port authority itself for the purposes of this part except that
it shall not have the power to contract indebtedness. Such subsidiary
corporation and any of its property, functions and activities shall have
all of the privileges, immunities, tax exemptions and other exemptions
of the port authority and of the port authority's property, functions
and activities. Such subsidiary corporation shall be subject to the
restrictions and limitations to which the port authority may be subject,
including, but not limited to the requirement that no action taken at
any meeting of the board of directors of such subsidiary corporation
shall have force or effect until the governors of the two states shall
have an opportunity, in the same manner and within the same time as now
or hereafter provided by law for approval or veto of actions taken at
any meeting of the port authority itself, to approve or veto such
action. Such subsidiary corporation shall be subject to suit in accord-
ance with subdivision nine of this section and chapter three hundred one
of the laws of New York of nineteen hundred fifty as continued by part
XXIV of this article, and chapter two hundred four of the laws of New
Jersey of nineteen hundred fifty-one as if such subsidiary corporation
were the port authority itself. Such subsidiary corporation shall not
be a participating employer under the New York retirement and social
security law or any similar law of either state and the employees of any
such subsidiary corporation, except those who are also employees of the
port authority, shall not be deemed employees of the port authority.
Whenever any state, municipality, commission, agency, officer, depart-
ment, board or division is authorized and empowered for any of the
purposes of this part to co-operate and enter into agreements with the
port authority or to grant any consent to the port authority or to
grant, convey, lease or otherwise transfer any property to the port
authority or to execute any document, such state, municipality, commis-
sion, agency, officer, department, board or division shall have the same
authorization and power for any of such purposes to co-operate and enter
into agreements with such subsidiary corporation and to grant consents
to such subsidiary corporation and to grant, convey, lease or otherwise
transfer property to such subsidiary corporation and to execute docu-
ments for such subsidiary corporation.
13. The bonds issued by the port authority to provide funds for any of
the purposes of this part are hereby made securities in which all state
and municipal officers and bodies of both states, all trust companies
and banks other than savings banks, all building and loan associations,
savings and loan associations, investment companies and other persons
carrying on a commercial banking business, all insurance companies,
A. 6754 104
insurance associations and other persons carrying on an insurance busi-
ness, and all administrators, executors, guardians, trustees and other
fiduciaries, and all other persons whatsoever (other than savings
banks), who are now or may hereafter be authorized by either state to
invest in bonds of such state, may properly and legally invest any
funds, including capital, belonging to them or within their control, and
said bonds are hereby made securities which may properly and legally be
deposited with and shall be received by any state or municipal officer
or agency of either state for any purpose for which the deposit of bonds
of such state is now or may hereafter be authorized. The bonds issued by
the port authority to provide funds for any of the purposes of this part
as security for which the general reserve fund shall have been pledged
in whole or in part are hereby made securities in which all savings
banks also may properly and legally invest any funds, including capital,
belonging to them or within their control.
14. If the port authority shall find it necessary, convenient or
desirable to acquire (either directly or through a subsidiary corpo-
ration) from time to time any real property or any property other than
real property (including but not limited to contract rights and other
intangible personal property and railroad cars or other rolling stock,
maintenance and repair equipment and parts, fuel and other tangible
personal property), for any of the purposes of this part, whether for
immediate or future use (including temporary construction, rehabili-
tation or improvement), the port authority may find and determine that
such property, whether a fee simple absolute or a lesser interest, is
required for a public use, and upon such determination the said property
shall be and shall be deemed to be required for such public use until
otherwise determined by the port authority, and such determination shall
not be affected by the fact that such property has theretofore been
taken for and is then devoted to a public use; but the public use in the
hands of or under the control of the port authority shall be deemed
superior to the public use in the hands of any other person, association
or corporation.
The port authority may acquire and is hereby authorized so to acquire
from time to time, for any of the purposes of this part, such property,
whether a fee simple absolute or a lesser estate, (including the exer-
cise of the right of eminent domain) under and pursuant to the
provisions of the eminent domain procedure law of the state of New York
in the case of property located in or having its situs in such state,
and revised statutes of New Jersey, title twenty: one-one et seq., in
the case of property located in or having its situs in such state, or,
at the option of the port authority, as provided in section fifteen of
chapter forty-three of the laws of New Jersey of nineteen hundred
forty-seven, as amended, in the case of property located in or having
its situs in such state, or pursuant to such other and alternate proce-
dure as may be provided by law of the state in which such property is
located or has its situs; and all of said statutes for the acquisition
of real property shall, for any of the purposes of this part, be applied
also to the acquisition of other property authorized by this subdivi-
sion, except that such provisions as pertain to surveys, diagrams, maps,
plans or profiles, assessed valuation, lis pendens, service of notice
and papers, filing in the office of the clerk in which the real property
affected is situated and such other provisions as by their nature cannot
be applicable to property other than real property, shall not be appli-
cable to the acquisition of such other property. In the event that any
property other than real property is acquired by acquisition then, with
A. 6754 105
respect to such other property, notice of such proceeding and all subse-
quent notices or court processes shall be served upon the owners of such
other property and upon the port authority by personal service or by
registered or certified mail, except as may be otherwise directed by the
court.
Anything herein to the contrary notwithstanding, any property to be
acquired for any of the purposes of this part, which property shall not
have been used by its owner or owners or any of his or their predeces-
sors in connection with and shall not have been acquired by its owner or
owners or any of his or their predecessors for use in connection with
the effectuation by a railroad company or companies of the Hudson tubes
or the Hudson tubes extensions prior to port authority acquisition,
shall, if such property is personal property, be acquired only by agree-
ment with the owner or owners and shall, if such property is not
personal property, be acquired in an action or proceeding in the state
in which such property is located or has its situs. Except as so
provided, the port authority is hereby authorized and empowered, in its
discretion, from time to time to combine any property which is to be
acquired as aforesaid for any of the purposes of this part for acquisi-
tion in a single action or proceeding notwithstanding that part of the
the property so to be acquired is located or has its situs in New Jersey
and part in New York or is personal property or mixed real and personal
property or may be owned by more than one owner; and, except as herein-
after provided, each such single action or proceeding to acquire proper-
ty located or having it situs part in New Jersey and part in New York
shall be pursuant to the laws of whichever of the two said states the
port authority shall estimate contains the greater part in value of all
the property to be acquired in such action or proceeding (hereinafter
sometimes called the forum state) and in the court or courts specified
in the laws of the forum state for the acquisition by the port authority
of property located or having its situs in the forum state pursuant to
this part, in which event, notwithstanding the location or situs of said
property, each of said two states hereby confers upon it said court or
courts jurisdiction of such action or proceeding and the port authority
and any subsidiary corporation so acquiring such property and the owners
of such property shall be bound by the judgments, orders or decrees
therein. In any such action or proceeding the court or courts of the
forum state shall apply the laws of valuation of the other state (here-
inafter sometimes called the nonforum state) to the valuation of the
property which is located or has it situs in the nonforum state and
shall include in the total compensation to be made to any owner of prop-
erty in both states being acquired in such action or proceeding the
increment, if any, in the value of such property in both states, by
reason of its being in a single ownership. If a judgment, order or
decree in such an action or proceeding shall best title in or otherwise
award to the authority the right to possession of property located or
having its situs in the nonforum state, then the court or courts of the
nonforum state shall grant full faith and credit to such judgment, order
or decree and upon petition by the authority to the court or courts of
the non forum state specified in the laws thereof for the acquisition by
the port authority of property located or having its situs in the nonfo-
rum state pursuant to this act, presenting a true copy of such judgment,
order or decree and proof that it is in effect, that any conditions
thereof have been met, that at least five days' notice of such petition
has been served by registered or certified mail upon all owners of the
property affected who appeared in the original action or proceeding in
A. 6754 106
the forum state or who may be owners of record, and without further
proof, a judgment, order or decree of such court or courts of the nonfo-
rum state shall be entered granting the authority possession of the
property located or having its situs in the nonforum state and confirm-
ing any title which shall have vested in the authority or its subsidiary
by the judgment, order or decree of the court or courts of the forum
state.
The owner of any property acquired for any of the purposes of this
part shall not be awarded for such property any increment above the just
compensation required by the constitutions of the United States and of
the state or states in which the property is located or has its situs by
reason of any circumstances whatsoever.
Nothing herein contained shall be construed to prevent the port
authority from bringing any proceedings to remove a cloud on title or
such other proceedings as it may, in its discretion, deem proper and
necessary, or from acquiring any such property by negotiation or
purchase.
Where a person entitled to an award in the proceedings to acquire any
property for any of the purposes of this part remains in possession of
such property after the time of the vesting of title in the authority or
its subsidiary, the reasonable value of his use and occupancy of such
property subsequent to such time, as fixed by agreement or by the court
in such proceedings or by any court of competent jurisdiction, shall be
a lien against such award, subject only to liens of record at the time
of the vesting of title in the authority or its subsidiary.
15. The port authority and its duly authorized agents, and all persons
acting under its authority and by its direction, may enter in the
daytime into and upon any real property for the purpose of making such
surveys, diagrams, maps, plans, soundings or borings as the port author-
ity may deem necessary, convenient or desirable for any of the purposes
of this act.
16. Any declarations contained herein with respect to the governmental
nature and public purpose of the world trade center, Hudson tubes and
Hudson tubes extensions and to the exemption of the world trade center,
Hudson tubes and Hudson tubes extensions property and instruments relat-
ing thereto from taxation and to the discretion of the port authority
with respect to said facilities shall not be construed to imply that
other port authority facilities, property and operations are not of a
governmental nature or do not serve public purposes, or that they are
subject to taxation, or that the determinations of the port authority
with respect thereto are not conclusive. The powers hereby vested in
the port authority and in any subsidiary corporation incorporated for
any of the purposes of this part (including but not limited to the power
to acquire real property by condemnation) shall be continuing powers and
no exercise thereof by the port authority or a subsidiary corporation
incorporated for any of the purposes of this part shall be deemed to
exhaust them or any of them.
17. This subdivision and the preceding subdivisions hereof constitute
an agreement between the states of New York and New Jersey supplementary
to the compact between the two states dated April thirty, nineteen
hundred twenty-one and amendatory thereof, and shall be liberally
construed to effectuate the purposes of said compact and of the compre-
hensive plan heretofore adopted by the two states, and the powers grant-
ed to the port authority shall be construed to be in aid of and not in
limitation or in derogation of any other powers heretofore conferred
upon or granted to the port authority.
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18. If any subdivision, section, phrase, or provision of this part or
the application thereof to any person or circumstances be adjudged
invalid by any court of competent jurisdiction, so long as the part or
remainder of the part shall nonetheless permit the effectuation, as a
unified project, of the Hudson tubes, Hudson tubes extensions and the
world trade center, such judgment shall be confined in its operation to
the subdivision, part, phrase, provision or application directly
involved in the controversy in which such judgment shall have been
rendered and shall not affect or impair the validity of the remainder of
this part or the application thereof to other persons or circumstances
and the two states hereby declare that they would have entered into this
part or the remainder thereof had the invalidity of such provision or
application thereof been apparent.
PART XXIV
SUITS AGAINST THE PORT AUTHORITY
Section 2401. Suits against the port authority.
2402. Agreement between the states.
§ 2401. Suits against the port authority. 1. Upon the concurrence of
the state of New Jersey in accordance with chapter three hundred one of
the laws of nineteen hundred fifty, the states of New York and New
Jersey consent to suits, actions or proceedings of any form or nature at
law, in equity or otherwise (including proceedings to enforce arbi-
tration agreements) against the port authority, and to appeals therefrom
and reviews thereof, except as hereinafter provided in subdivisions two
through five of this section.
2. The foregoing consent does not extend to suits, actions or
proceedings upon any causes of action whatsoever accruing before the
effective date of this part, other than causes of actions upon, in
connection with, or arising out of notes, bonds or other obligations or
securities secured by a pledge of the general reserve fund of the port
authority.
3. The foregoing consent does not extend to suits, actions or
proceedings upon any causes of action whatsoever, upon, in connection
with, or arising out of any contract, express or implied, entered into
or assumed by or assigned to the port authority before the effective
date of this part (including any supplement to, or amendment, extension
or renewal of any such contract, even if such supplement, amendment,
extension or renewal is made on or after the effective date of this
part), regardless of whether such cause of action accrued before or
after that date, other than causes of action upon, in connection with or
arising out of notes, bonds or other obligations or securities secured
by a pledge of the general reserve fund of the port authority.
4. The foregoing consent does not extend to civil suits, actions or
proceedings for the recovery of statutory penalties.
5. The foregoing consent does not extend to suits, actions or
proceedings for judgments, orders or decrees restraining, enjoining or
preventing the port authority from committing or continuing to commit
any act or acts, other than suits, actions or proceedings by the attor-
ney general of New York or by the attorney general of New Jersey--each
of whom is hereby authorized to bring such suits, actions or proceedings
in his discretion on behalf of any person or persons whatsoever who
requests him so to do except in the cases excluded by subdivisions two,
three and four of this section; provided, that in any such suit, action
or proceeding, no judgment, order or decree shall be entered except upon
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at least two days' prior written notice to the port authority of the
proposed entry thereof.
6. The foregoing consent is granted upon the condition that venue in
any suit, action or proceeding against the port authority shall be laid
within a county or a judicial district, established by one of said
states or by the United States, and situated wholly or partially within
the port of New York district. The port authority shall be deemed to be
a resident of each such county or judicial district for the purpose of
such suits, actions or proceedings. Although the port authority is
engaged in the performance of governmental functions, the said two
states consent to liability on the part of the port authority in such
suits, actions or proceedings for tortious acts committed by it and its
agents to the same extent as though it were a private corporation.
7. The foregoing consent is granted upon the condition that any suit,
action or proceeding prosecuted or maintained under this part shall be
commenced within one year after the cause of action therefor shall have
accrued, and upon the further condition that in the case of any suit,
action or proceeding for the recovery or payment of money, prosecuted or
maintained under this part, a notice of claim shall have been served
upon the port authority by or on behalf of the plaintiff or plaintiffs
at least sixty days before such suit, action or proceeding is commenced.
The provisions of this section shall not apply to claims arising out of
provisions of any workmen's compensation law of either state.
8. The notice of claim required by subdivision seven of this section
shall be in writing, sworn to by or on behalf of the claimant or claim-
ants, and shall set forth (1) the name and post office address of each
claimant and of his attorney, if any, (2) the nature of the claim, (3)
the time when, the place where and the manner in which the claim arose,
and (4) the items of damage or injuries claimed to have been sustained
so far as then practicable. Such notice may be served in the manner in
which process may be served, or in lieu thereof, may be sent by regis-
tered mail to the port authority at its principal office. Where the
claimant is a person under the age of eighteen years or is mentally or
physically incapacitated and by reason of such disability no notice of
claim is filed or suit, action or proceeding commenced within the time
specified in subdivision seven of this section, or where a person enti-
tled to make a claim dies and by reason of his death no notice of claim
is filed or suit, action or proceeding commenced within the time speci-
fied in subdivision seven of this section then any court in which such
suit, action or proceeding may be brought may in its discretion grant
leave to serve the notice of claim and to commence the suit, action or
proceeding within a reasonable time but in any event within three years
after the cause of action accrued. Application for such leave must be
made upon an affidavit showing the particular facts which caused the
delay and shall be accompanied by a copy of the proposed notice of claim
if such notice has not been served, and such application shall be made
only upon notice to the port authority.
9. The commissioners, officers or employees of the port authority
shall not be subject to suits, actions or proceedings for judgments,
orders or decrees restraining, preventing or enjoining them in their
official or personal capacities from committing or continuing to commit
any act or acts on behalf of the port authority other than suits,
actions and proceedings brought by the attorney general of New York or
by the attorney general of New Jersey or by the port authority itself--
each of said attorneys general being hereby authorized to bring such
suits, actions or proceedings in his discretion on behalf of any person
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or persons whatsoever who requests him so to do except in the cases
excluded by subdivisions two, three and four of this section; provided,
that in any such suit, action or proceeding brought by either attorney
general, no judgment, order or decree shall be entered except upon at
least two days' notice to the defendant of the proposed entry thereof.
10. Nothing herein contained shall be deemed to revoke, rescind or
affect any consents to suits, actions or proceedings against the port
authority heretofore given by the two said states in chapter eight
hundred two of the laws of New York of nineteen hundred forty-seven, as
amended and continued by part XII of this article, and chapter forty-
three of the laws of New Jersey of nineteen hundred forty-seven, as
amended; chapter six hundred thirty-one of the laws of New York of nine-
teen hundred forty-seven, as amended and continued by part XI of this
article; chapter forty-four of the laws of New Jersey of nineteen
hundred forty-seven, as amended, and chapter five hundred thirty-four of
the laws of New York of nineteen hundred forty-eight and continued by
part XI of this article and chapter ninety-seven of the laws of New
Jersey of nineteen hundred forty-eight.
§ 2402. Agreement between the states. This part together with the act
of the state of New Jersey concurring herein, shall constitute an agree-
ment between the states of New York and New Jersey supplementary to and
amendatory of the compact between the two said states dated April thir-
tieth, nineteen hundred twenty-one.
PART XXV
RULES AND REGULATIONS GOVERNING OPERATION OF HUDSON TUBES
Section 2501. Rules and regulations governing operation of Hudson tubes.
§ 2501. Rules and regulations governing operation of Hudson tubes. 1.
The port authority having duly adopted the following rules and regu-
lations, hereinafter set forth in this subdivision in relation to
conduct within the territorial limits of the state of New York and at,
on or in the Hudson tubes and Hudson tubes extensions operated by its
wholly-owned subsidiary the port authority trans-Hudson corporation
(hereinafter called "PATH"), the penalties and procedures for their
enforcement prescribed in subdivision two shall apply to violations
thereof.
RULES AND REGULATIONS
(a) No person shall smoke, carry or possess a lighted cigarette,
cigar, pipe, match or any lighted instrument causing naked flame in or
about any area, building or appurtenance or in any cars or other rolling
stock of the Hudson tubes or Hudson tubes extensions where smoking has
been prohibited by PATH and where appropriate signs to that effect have
been posted.
(b) No person, unless duly authorized by PATH, shall in or upon any
area, building, appurtenance, car or other rolling stock of the Hudson
tubes or Hudson tubes extensions sell or offer for sale any article of
merchandise or solicit any business or trade, including the carrying of
bags for hire, the shining of shoes or bootblacking, or shall entertain
any persons by singing, dancing or playing any musical instrument or
solicit alms. No person, unless duly authorized by PATH, shall post,
distribute or display commercial signs, circulars or other printed or
written matter in or upon the Hudson tubes or Hudson tubes extensions.
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(c) No person, who is unable to give satisfactory explanation of his
presence, shall loiter about any car, or other rolling stock, area,
building or appurtenance of the Hudson tubes or Hudson tubes extensions,
or sleep therein or thereon.
(d) No person not authorized by PATH shall be permitted in or upon any
car or other rolling stock or station or platform or parking facility
within the Hudson tubes or Hudson tubes extensions, except upon payment
in full of such fares, fees and other charges as may from time to time
be prescribed by PATH. No person shall refuse to pay or evade or
attempt to evade the payment in full of such fares, fees and other
charges.
(e) No person shall spit upon, litter or create a nuisance or other
insanitary condition in or on any car or other rolling stock, area,
building or appurtenance of the Hudson tubes or Hudson tubes extensions.
(f) No person shall enter any car or other rolling stock, area, build-
ing or appurtenance of the Hudson tubes or Hudson tubes extensions with
any animal, except an animal properly confined in an appropriate
container or a guide dog properly harnessed and muzzled, accompanying a
blind person carrying a certificate of identification issued by a guide
dog school.
(g) No person shall get on any car or other rolling stock of the
Hudson tubes or Hudson tubes extensions while it is in motion for the
purpose of obtaining transportation thereon as a passenger nor shall any
person wilfully obstruct, hinder or delay the passage of any such car or
rolling stock. No person not authorized by PATH shall walk upon or
along any right-of-way or related trackage of the Hudson tubes or Hudson
tubes extensions.
2. Any violation of the provisions of paragraph (a) of subdivision one
of this section, shall be an offense and shall be punishable for a first
conviction thereof by a fine of not more than fifty dollars or imprison-
ment for not more than thirty days or both; for a second such
conviction by a fine of not less than twenty-five dollars nor more than
one hundred dollars or imprisonment for not more than sixty days or
both; for a third or any other subsequent such conviction, by a fine of
not less than fifty dollars nor more than two hundred dollars or by
imprisonment for not more than sixty days or both. Any person who is
guilty of violating any other provision of subdivision one of this
section shall be guilty of an offense and shall be punishable by a fine
not exceeding ten dollars or by imprisonment not exceeding thirty days
or by both such fine and imprisonment for each conviction thereof.
PART XXVI
MASS TRANSPORTATION FACILITIES TO AIR TERMINALS
Section 2601. Mass transportation facilities to air terminals.
§ 2601. Mass transportation facilities to air terminals. 1. The
states of New York and New Jersey hereby find and determine that:
(a) Each air terminal within the port of New York district serves the
entire district, and the problem of furnishing proper and adequate air
terminal facilities within the district is a regional and interstate
problem;
(b) Access by land travel to the great airports serving the port of
New York district, particularly John F. Kennedy and Newark international
airports, is becoming increasingly difficult, and such access is neces-
sary for the continued development of such airports which development is
A. 6754 111
vital and essential to the preservation of the economic well-being of
the northern New Jersey-New York metropolitan area;
(c) Additional highway construction to serve these great airports is
not feasible and creates severe problems in terms of increased air
pollution and the preemption of land which might otherwise be devoted to
park purposes and other desirable uses;
(d) Access to these airports by railroads or other forms of mass
transportation must be undertaken if they are to maintain their preemi-
nence and continue to serve the economic well-being of the northern New
Jersey-New York metropolitan area;
(e) Such mass transportation facilities may properly be regarded as
constituting a part of each air terminal, the development of which
should be the responsibility of those charged with the duties of air
terminal development;
(f) It is the purpose of this part to authorize and direct the port
authority of New York and New Jersey to undertake one or more mass
transportation access projects specifically with respect to John F.
Kennedy and Newark international airports in order to preserve and
develop the economic well-being of the northern New Jersey-New York
metropolitan area, and such undertakings are found and determined to be
in the public interest.
2. In furtherance of the aforesaid findings and determinations and in
partial effectuation of the comprehensive plan heretofore adopted by the
two states for the development of terminal and transportation facilities
in the port of New York district, the port authority of New York and New
Jersey is hereby specifically authorized to undertake pursuant to chap-
ter forty-three of the laws of New Jersey of nineteen hundred forty-sev-
en, as amended, and chapter eight hundred two of the laws of New York of
nineteen hundred forty-seven, as amended and continued by part XII of
this article, the following separate air terminal facilities:
(a) To provide access to Newark international airport. A railroad
line connecting Newark international airport, including (i) appropriate
mass transportation terminal facilities at and within the said airport;
(ii) construction, reconstruction and improvement of suitable offsite
facilities for the accommodation of air passengers, baggage, mail,
express, freight and other users of the connecting facility; and (iii)
such additional rail or other mass transportation, terminal, station,
parking, storage and service facilities as operations may require.
(b) To provide access to John F. Kennedy international airport. A
railroad line connecting John F. Kennedy international airport to the
main line of the Long Island railroad in the county of Queens, including
(i) a spur or branch to the Montauk line of the said railroad in the
said county; (ii) appropriate mass transportation terminal facilities
at and within the said airport; (iii) suitable offsite facilities for
the accommodation of air passengers, baggage, mail, express, freight and
other users of the connecting facility; and (iv) such additional rail or
other mass transportation, terminal, station, parking, storage and
service facilities, including improvements to the railroad approaches to
Pennsylvania Station and Jamaica Terminal in the city of New York, as
operations may require.
3. The port authority of New York and New Jersey is hereby authorized
and empowered to acquire real property located within the port district
by condemnation or the right of eminent domain pursuant to and in
accordance with any of the procedures authorized by chapter forty-three
of the laws of New Jersey of nineteen hundred forty-seven, as amended,
in the case of property having its situs in the state of New Jersey, and
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by chapter eight hundred two of the laws of New York of nineteen hundred
forty-seven, as amended and continued by part XII of this article, in
the case of property having its situs in the state of New York, for and
in connection with the undertaking of the air terminal access facilities
set forth in subdivision three of this section. Such authorization and
power to acquire real property by condemnation or the right of eminent
domain may not be exercised in connection with the undertaking of access
facilities, other than the access facilities set forth in subdivision
three of this section, unless authorized by the laws of the state in
which such facilities are to be located.
4. The port authority of New York and New Jersey is hereby authorized
and empowered in its discretion to enter into an agreement or agreements
upon such terms and conditions as it may deem in the public interest,
with the United States, the state of New Jersey, the state of New York,
or any agency, department, commission, public authority, board or divi-
sion of any of the foregoing, or any municipality or other public corpo-
ration in the state of New Jersey or in the state of New York, or any
person, firm, association, company or corporation, or any two or more of
the foregoing, to effectuate any one or more of the purposes of this
part; and the state of New Jersey, the state of New York, or any agency,
department, commission, public authority, board or division of either of
the foregoing, or any municipality or other public corporation in the
state of New Jersey or the state of New York, or any two or more of the
foregoing, are hereby authorized and empowered to enter into an agree-
ment or agreements with the port authority to effectuate any one or more
of the purposes of this part.
5. If any section, phrase, or provision of this part, as hereby
amended and supplemented or the application thereof to any person,
project or circumstances, be adjudged invalid by any court of competent
jurisdiction, such judgment shall be confined in its operation to the
section, part, phrase, provision or application directly involved in the
controversy in which such judgment shall have been rendered and shall
not affect or impair the validity of the remainder of this part or the
application thereof to other persons, projects or circumstances and the
two states hereby declare that they would have entered into this part or
the remainder thereof had the invalidity of such provision or applica-
tion thereof been apparent.
PART XXVII
INDUSTRIAL DEVELOPMENT PROJECTS AND FACILITIES
Section 2701. Findings and determinations.
2702. Definitions.
2703. Industrial development projects and facilities.
§ 2701. Findings and determinations. 1. The states of New York and
New Jersey hereby find and determine:
a. that to prevent further deterioration of the economy of the port
district and thereby to promote, preserve and protect trade and commerce
in and through the port of New York district as defined in the compact
between the two states dated April thirtieth, nineteen hundred twenty-
one (hereinafter called the port district), it is the policy of each of
the two states actively to promote, attract, encourage and develop
economically sound commerce and industry through governmental action;
b. that in order to preserve and protect the position of the port of
New York as the nation's leading gateway for world commerce, it is
incumbent on the states of New York and New Jersey to make every effort
A. 6754 113
to insure that the port receives its rightful share of interstate and
international commerce generated by the manufacturing, industrial, trade
and commercial segments of the economy of the nation and of the port
district;
c. that since nineteen hundred fifty the number of available jobs in
the port district, particularly within the older central cities thereof,
has decreased, thereby resulting in the underutilization of available
land and other resources, the erosion of the port district's tax bases
and a rate of unemployment substantially in excess of the national aver-
age;
d. that in order to preserve the port district from further economic
deterioration, adequate industrial development projects and facilities
must be provided, preserved and maintained to attract and retain indus-
try within the port district;
e. that a number of new industrial development projects and facilities
should be organized into industrial parks or districts;
f. that the construction of such industrial parks or districts shall
conform to the policies of the two states with respect to affirmative
action and equal employment opportunities;
g. that providing port district industrial development projects and
facilities is in the public interest and involves the exercise of public
and essential governmental functions which may include appropriate and
reasonable limitations on competition and which must be performed by the
two states, or any municipality, public authority, agency or commission
of either state and by a joint agency of the two states to accomplish
the purposes of this part;
h. that it is an objective of the two states, acting through the port
authority, to facilitate reemployment of residents of the older cities
through job training programs and employment opportunity priorities in
connection with industrial development parks in their respective cities;
i. that the acquisition and the use by such joint agency of abandoned,
undeveloped or underutilized land or land owned by governmental entities
within the port district for the generation of jobs and to reduce the
hazards of unemployment would promote, preserve and protect the indus-
try, trade and commerce of the port district, and will materially assist
in preserving for the two states and the people thereof the material and
other benefits of a prosperous port community;
j. that the collection, disposal and utilization of refuse, solid
waste or waste resulting from other treatment processes is an activity
of concern to all citizens within the port district, that the health,
safety and general welfare of the citizens within the port district
require efficient and reasonable collection and disposal services and
efficient utilization of such refuse, solid waste or waste resulting
from other treatment processes with adequate consideration given to
regional planning and coordination, and, therefore, that the
construction and operation of any port district industrial development
project and facility should conform to the environmental and solid waste
disposal standards and state and county plans therefor in the state in
which such project or facility is located;
k. that the dedication by the municipalities of the port district of
refuse, solid waste or waste resulting from other treatment processes to
resource recovery to permit the generation of lower priced energy and
the recovery of useful materials, together with the commitment by such
municipalities to pay fees to permit the delivery and removal after
processing of such refuse or solid waste at rates and for periods of
time at least sufficient to assure the continued furnishing of such
A. 6754 114
lower priced energy and material is in the public interest and would be
a major incentive for the attraction and retention of industry within
the port district;
l. that the port authority of New York and New Jersey (hereinafter
called the port authority), which was created by agreement of the two
states as a joint agent for the development of terminal, transportation
and other facilities of commerce of the port district and for the
promotion and protection of the commerce of the port, is a proper agency
to act in their behalf (either directly or by any subsidiary corpo-
ration) to finance and effectuate such industrial development projects
and facilities;
m. that it is desirable for the port authority, after consultation
with the governing body of each municipality and within the city of New
York the appropriate community board or boards and elsewhere another
government entity or entities designated by such municipality in which
industrial development projects or facilities are proposed to be located
and with other persons, including but not limited to private real estate
developers, to prepare and adopt a master plan providing for the devel-
opment of such industrial development projects and facilities in the
port district, which plan shall give consideration to the extent of
unemployment and the general economic conditions of the respective
portions of the port district and shall include among other things the
locations and the nature and scope of such projects and facilities as
may be included in the plan;
n. that the undertaking of such industrial development projects and
facilities by the port authority has the single object of and is part of
a unified plan to aid in preserving the economic well-being of the port
district and is found and determined to be in the public interest;
o. that no such port district industrial development projects and
facilities are to be constructed if the sole intent of the construction
thereof would be the removal of an industrial or manufacturing plant of
an occupant of such projects and facilities from one location to another
location or in the abandonment of one or more plants or facilities of
such occupant, unless such port district industrial development projects
and facilities are reasonably necessary to discourage such occupant from
removing such plant or facility to a location outside the port district
or are reasonably necessary to preserve the competitive position of such
project occupant in its industry;
p. that no such port district industrial development projects or
facilities are to be constructed unless and until the port authority has
entered into an agreement or agreements with the municipality in which
any such project or facility is to be located with respect to payments
in lieu of real estate taxes and the location, nature and scope of any
project or facility;
q. that, subject to entering into said agreement or agreements, the
port authority should have the ability to acquire, lease, vacate, clear
and otherwise develop abandoned, undeveloped or underutilized property
or property owned by governmental entities within the port district and
to finance and construct industrial development projects and facilities.
§ 2702. Definitions. The following terms as used in this part shall
have the following meanings:
a. "Bonds" shall mean bonds, notes, securities or other obligations or
evidences of indebtedness;
b. "Effectuation" of any project or facility or part of any such
project or facility shall include but not be limited to its establish-
ment, acquisition, construction, development, maintenance, operation,
A. 6754 115
improvement (by way of betterments, additions or otherwise) and rehabil-
itation by the port authority or any other person and the provision of
funds therefor through the issuance of obligations, the making or grant-
ing of loans or otherwise;
c. "General reserve fund statutes" shall mean chapter forty-eight of
the laws of New York of nineteen hundred thirty-one as amended and
continued by part XXIX of this article, and chapter five of the laws of
New Jersey of nineteen hundred thirty-one as amended, and "general
reserve fund" shall mean the general reserve fund of the port authority
authorized by said statutes;
d. "Governing body" shall mean the board or body vested with the
general legislative powers of the municipality in which an industrial
development project or facility will be financed or effectuated pursuant
to this part;
e. "Industrial development project or facility" or "port district
industrial development project or facility" shall mean any equipment,
improvement, structure or facility or any land, and any building, struc-
ture, facility or other improvement thereon, or any combination thereof,
and all real and personal property, located within the New York portion
of the port district or within a municipality in the New Jersey portion
of the port district which qualified for state aid under the provisions
of P.L., 1971, C.64 as most recently supplemented by P.L., 1978, C.14 or
which may hereafter qualify for such aid, including, but not limited to,
machinery, equipment and other facilities deemed necessary or desirable
in connection therewith, or incidental thereto, whether or not now in
existence or under construction, which shall be considered suitable by
the port authority for manufacturing, research, non-retail commercial or
industrial purposes within an industrial park, or for purposes of ware-
housing or consumer and supporting services directly related to any of
the foregoing or to any other port authority project or facility; and
which may also include or be an industrial pollution control facility or
a resource recovery facility, provided that no such industrial develop-
ment project or facility may include or be a facility used for the stor-
age of chemicals, fuel or liquified natural gas unless incidental to the
effectuation of such industrial development project or facility;
f. "Industrial pollution control facility" shall mean any equipment,
improvement, structure or facility or any land, and any building, struc-
ture, facility or other improvement thereon, or any combination thereof,
and all real and personal property, located within the port district,
including, but not limited to, machinery, equipment and other facilities
deemed necessary or desirable in the opinion of the port authority in
connection therewith, or incidental thereto, whether or not now in
existence or under construction, having to do with or the end purpose of
which is the control, abatement or prevention of land, sewer, water,
air, noise or general environmental pollution deriving from the opera-
tion of industrial, manufacturing, warehousing, commercial and research
facilities, including, but not limited to any air pollution control
facility, noise abatement facility, water management facility, waste
water collecting system, waste water treatment works, sewage treatment
works system, sewage treatment system or solid waste disposal facility
or site, provided that no such industrial pollution control facility may
include or be used as a site for organic landfill or be of a character
or nature generally furnished or supplied by any other governmental
entity where such industrial pollution control facility is located with-
out the consent of such governmental entity;
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g. "Municipality" means a city, county, town or village all or any
part of which is located within the New York portion of the port
district, or a city, county, town, borough or township all or any part
of which is located within the New Jersey portion of the port district;
h. "Person" means any person, including individuals, firms, partner-
ships, associations, societies, trusts, public utilities, public or
private corporations, or other legal entities, including public or
governmental bodies, which may include the port authority, as well as
natural persons. "Person" shall include the plural as well as the
singular;
i. "Port authority" shall include the port authority and any subsid-
iary corporation now or hereafter incorporated for any of the purposes
of this part; provided, however, as used in subdivisions four and five
of section twenty-seven hundred three of this part it shall not include
any such subsidiary corporation;
j. "Purposes of this part" shall mean the effectuation of industrial
development projects and facilities and of each project or facility
constituting a portion thereof and of each part of each project or
facility, and purposes incidental thereto;
k. "Real property" shall mean lands, structures, franchises and inter-
ests in land, including air space and air rights, waters, lands under
water, wetlands and riparian rights, and any and all things and rights
included within the said term, and includes not only fees simple abso-
lute but also any and all lesser interests, including but not limited to
easements, rights-of-way, uses, leases, licenses and all other incorpo-
real hereditaments and every estate, interest or right, legal or equita-
ble, including terms for years and liens thereon by way of judgments,
mortgages or otherwise;
l. "Resource recovery facility" shall mean any equipment, improvement,
structure or facility or any land, and any building, structure, facility
or other improvement thereon, or any combination thereof, and all real
and personal property located within the port district, including, but
not limited to, machinery, equipment and other facilities deemed neces-
sary or desirable in the opinion of the port authority in connection
therewith, or incidental thereto, whether or not now in existence or
under construction, for the disposal of refuse or other solid wastes or
wastes resulting from other treatment processes and for the recovery and
sale or use of energy and other resources from such refuse or other
solid wastes or wastes resulting from other treatment processes,
provided that no such resource recovery facility may include or be used
as a site for organic landfill;
m. "Surplus revenues" from any facility shall mean the balance of the
revenues from such facility (including but not limited to the revenues
of any subsidiary corporation incorporated for any of the purposes of
this part) remaining at any time currently in the hands of the port
authority after the deduction of the current expenses of the operation
and maintenance thereof, including a proportion of the general expenses
of the port authority as it shall deem properly chargeable thereto,
which general expenses shall include but not be limited to the expense
of protecting and promoting the commerce of the port district, and after
the deduction of any amounts which the port authority may or shall be
obligated or may or shall have obligated itself to pay to or set aside
out of the current revenues therefrom for the benefit of the holders of
any bonds legal for investment as defined in the general reserve fund
statutes;
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n. "Surplus revenues of port district industrial development projects
or facilities" shall mean the surplus revenues of all industrial devel-
opment projects or facilities effectuated pursuant to the terms of this
part.
§ 2703. Industrial development projects and facilities. 1. In furth-
erance of the findings and determinations detailed by section twenty-
seven hundred one of this part, in partial effectuation of and supple-
mental to the comprehensive plan heretofore adopted by the two said
states for the development of the said port district, and subject to the
preparation and adoption of the plan authorized in subdivision two of
this section and the execution of an agreement or agreements authorized
by subdivisions eleven and twelve of this section, the port authority is
hereby authorized, empowered and directed to establish, acquire,
construct, effectuate, develop, own, lease, maintain, operate, improve,
rehabilitate, sell, transfer and mortgage projects or facilities herein
referred to as port district industrial development projects or facili-
ties, as defined in this part.
The port authority is hereby authorized and empowered to establish,
levy and collect such rentals, fares, fees and other charges as it may
deem necessary, proper or desirable in connection with any facility or
part of any facility constituting a portion of any port district indus-
trial development project or facility and to issue bonds for any of the
purposes of this part and to provide for payment thereof, with interest
thereon, and for the amortization and retirement of such bonds, and to
secure all or any portion of such bonds by a pledge of such rentals,
fares, fees, charges and other revenues or any part thereon (including
but not limited to the revenues of any subsidiary corporation incorpo-
rated for any of the purposes of this part) and to secure all or any
portion of such bonds by mortgages upon any property held or to be held
by the port authority for any of the purposes of this part, and for any
of the purposes of this part to exercise all appropriate powers hereto-
fore or hereafter delegated to it by the states of New York and New
Jersey, including, but not limited to, those expressly set forth in this
part. The surplus revenues of port district industrial development
projects or facilities may be pledged in whole or in part as hereinafter
provided.
2. The port authority is hereby authorized to initiate studies and
prepare and adopt a master plan providing for the development of port
district industrial development projects and facilities which shall
include the location of such projects and facilities as may be included
in the plan and shall to the maximum extent practicable include inter
alia a general description of each of such projects and facilities, the
land use requirements necessary therefor, and estimates of project
costs, of project employment potential and of a schedule for commence-
ment of each such project. Prior to adopting such master plan, the port
authority shall give written notice to, afford a reasonable opportunity
for comment, consult with and consider any recommendation made by the
governing body of municipalities and within the city of New York the
appropriate community board or boards and elsewhere another governmental
entity or entities designated by such municipality in which industrial
development projects or facilities are proposed to be located and with
such other persons, including but not limited to private real estate
developers, which in the opinion of the port authority is either neces-
sary or desirable. The master plan shall include the port authority's
estimate of the revenues to be derived by municipalities from each such
industrial development project or facility and also a description of the
A. 6754 118
proposed additional arrangements with municipalities necessary or desir-
able for each such project or facility. The port authority may modify
or change any part of such plan in the same form and manner as provided
for the adoption of such original plan. At the time the port authority
authorizes any industrial development project or facility, the port
authority shall include with such authorization a statement as to the
status of each project included in such master plan and any amendment
thereof.
3. No industrial development project proposed to be located within the
city of New York may be included in such master plan unless and until
the mayor of the city of New York requests the port authority to conduct
a comprehensive study of the feasibility of the effectuation of one or
more industrial development projects or any parts thereof (including
resource recovery or industrial pollution control facilities) in such
city, which request shall specify the borough in which such comprehen-
sive study is to take place; provided, however, that the president of
any borough in which an industrial development project or facility is
proposed to be located may within sixty days of receipt of notice of
such request, and after consulting with and considering any recommenda-
tion made by the local borough improvement board, notify the port
authority not to include any proposed industrial development project or
facility within that county in such feasibility study. Any such request
by the mayor of the city of New York may specify the facilities to be
included in such industrial park project.
4. The moneys in the general reserve fund may be pledged in whole or
in part by the port authority as security for or applied by it to the
repayment with interest of any moneys which it may raise upon bonds
issued or incurred by it from time to time for any of the purposes of
this part or upon bonds secured in whole or in part by the pledge of the
revenues from any industrial development project or facility or any
portion thereof or upon bonds both so issued or incurred and so secured;
and the moneys in said general reserve fund may be applied by the port
authority to the fulfillment of any other undertakings which it may
assume to or for the benefit of the holders of any such bonds.
Subject to prior liens and pledges (and to the obligation of the port
authority to apply revenues to the maintenance of its general reserve
fund in the amount prescribed by the general reserve fund statutes), the
revenues from facilities established, constructed, acquired or otherwise
effectuated through the issuance or sale of bonds of the port authority
secured in whole or in part by a pledge of its general reserve fund or
any portion thereof may be pledged in whole or in part as security for
or applied by it to any of the purposes of this part, including the
repayment with interest of any moneys which it may raise upon bonds
issued or incurred from time to time for any of the purposes of this
part or upon bonds secured in whole or in part by the pledge of the
revenues of the port authority from any industrial development project
or facility or any portion thereof or upon bonds both so issued or
incurred and so secured; and said revenues may be applied by the port
authority to the fulfillment of any other undertakings which it may
assume to or for the benefit of the holders of such bonds.
5. In all cases where the port authority has raised or shall hereafter
raise moneys for any of the purposes of this part by the issue and sale
of bonds which are secured in whole or in part by a pledge of the gener-
al reserve fund or any portion thereof, the surplus revenues from indus-
trial development projects or facilities financed in whole or in part
out of the proceeds of such bonds and the surplus revenues from any
A. 6754 119
other port authority facility the surplus revenues of which at such time
may be payable into the general reserve fund shall be pooled and applied
by the port authority to the establishment and maintenance of the gener-
al reserve fund in an amount equal to one-tenth of the par value of all
bonds legal for investment, as defined in the general reserve fund stat-
utes, issued by the port authority and currently outstanding, including
such bonds issued for any of the purposes of this part; and all such
moneys in said general reserve fund may be pledged and applied in the
manner provided in the general reserve fund statutes.
In the event that any time the balance of moneys theretofore paid into
the general reserve fund and not applied therefrom shall exceed an
amount equal to one-tenth of the par value of all bonds upon the princi-
pal amount of which the amount of the general reserve fund is calcu-
lated, by reason of the retirement of bonds issued or incurred from time
to time for any of the purposes of this part the par value of which had
theretofore been included in the computation of said amount of the
general reserve fund, then the port authority may pledge or apply such
excess for and only for the purposes for which it is authorized by the
general reserve fund statutes to pledge the moneys in the general
reserve fund and such pledge may be made in advance of the time when
such excess may occur.
6. The two states covenant and agree with each other and with the
holders of any bonds issued by the port authority for the purposes of
this part, that so long as any of such bonds remain outstanding and
unpaid and the holders thereof shall not have given their consent as
provided in their contract with the port authority, the two states will
not diminish or impair the power of the port authority to establish,
levy and collect rentals, fares, fees or other charges in connection
with industrial development projects or facilities or any other facility
owned or operated by the port authority the revenues of which have been
or shall be pledged in whole or in part as security for such bonds
(directly or indirectly, or through the medium of the general reserve
fund or otherwise), or to determine the quantity, quality, frequency or
nature of any services provided by the port authority in connection with
the operation of each project or facility. This subdivision shall not
affect or diminish the provisions of subdivision twelve of this section.
7. The port authority is authorized and empowered to co-operate with
the states of New York and New Jersey, with any municipality thereof,
with any person, with the federal government and with any agency, public
authority or commission or any one or more of the foregoing, or with any
one or more of them, for and in connection with the acquisition, clear-
ance, replanning, rehabilitation, reconstruction or redevelopment of any
industrial development project or facility or of any other area forming
part of any industrial development project or facility for the purpose
of renewal and improvement of said area and for any of the purposes of
this part, and to enter into an agreement or agreements (and from time
to time to enter into agreements amending or supplementing the same)
with any such person, municipality, commission, public authority or
agency and with the states of New York and New Jersey and with the
federal government, or with any one or more of them, for or relating to
such purposes, including but not limited to agreements with respect to
the dedication by the municipalities of the port district of refuse,
solid waste or waste resulting from other treatment processes to
resource recovery to permit the generation of lower priced energy and
the recovery of useful materials; with respect to a commitment by such
municipalities to pay fees to permit the delivery and removal after
A. 6754 120
processing of such refuse or solid waste at rates and for periods of
time at least sufficient to assure the continued availability of such
energy and recovered materials; with respect to financial assistance,
loans and grants pursuant to any federal law now in effect or hereinaft-
er enacted which would provide such financial assistance, loans and
grants in connection with any of the purposes of this part, provided,
that if either state shall have or adopt general legislation governing
applications for such federal aid by municipalities, public authorities,
agencies or commissions of such state or the receipt or disbursement of
such federal aid by or on behalf of such municipalities, public authori-
ties, agencies or commissions, then such legislation shall at the option
of such state apply to applications by the port authority for such
federal aid in connection with an industrial development project or
facility located in such state and to the receipt and disbursement of
such federal aid by or on behalf of the port authority, in the same
manner and to the same extent as other municipalities, public authori-
ties, agencies or commissions of such state; and, with respect to occu-
pancy of space in any industrial development project or facility. The
port authority is hereby authorized and empowered to apply for and
accept financial assistance, loans and grants for such purposes under
federal, state or local laws, and to make application directly to the
proper officials or agencies for and receive federal, state or local
loans or grants in aid of any of the purposes of this part. Nothing
contained in this part shall be construed to limit or impair the power
of the governor of the state of New York and the governor of the state
of New Jersey to review the actions of the commissioners of the port
authority as provided for in chapter seven hundred of the laws of New
York of nineteen hundred twenty-seven, as amended and as continued by
part IV of this article, and in chapter three hundred thirty-three of
the laws of New Jersey of nineteen hundred twenty-seven, as amended, or
to authorize the port authority to commence the effectuation of any
industrial development project or facility unless and until the munici-
pality in which such project or facility is to be located has consented
to the commencement of such effectuation, with such consent to be
provided for in the agreement authorized by subdivision eleven or subdi-
vision twelve of this section. The port authority is authorized and
empowered to enter into an agreement or agreements (and from time to
time to enter into agreements amending or supplementing the same) with
any public authority, agency or commission of either or both states to
provide for the effectuation of any of the purposes of this part through
a subsidiary corporation owned jointly by the port authority and any
such public authority, agency or commission, and any such public author-
ity, agency or commission is authorized and empowered to enter into such
agreement or agreements with the port authority.
8. Notwithstanding any contrary provision of law, general, special or
local, either state and any municipality thereof and any commission,
public authority or agency of either or both of said two states is
authorized and empowered to co-operate with the port authority and to
enter into an agreement or agreements (and from time to time to enter
into agreements amending or supplementing the same) with the port
authority or with any other person for and in connection with or relat-
ing to the acquisition, clearance, replanning, rehabilitation, recon-
struction, redevelopment, sale, transfer or mortgage of any industrial
development project or facility or of any other area forming part of any
industrial development project or facility for the purpose of renewal
and improvement of said area as aforesaid or for any of the other
A. 6754 121
purposes of this part, including but not limited to the dedication by
the municipalities of the port district of refuse, solid waste or waste
resulting from other treatment processes to resource recovery to permit
the generation of lower priced energy and the recovery of useful materi-
als and a commitment by such municipalities to pay fees to permit the
delivery and removal after processing of such refuse or solid waste at
rates and for periods of time at least sufficient to assure the contin-
ued availability of such energy and recovered materials, upon such
reasonable terms and conditions as may be determined by such state,
municipality, public authority, agency or commission and the port
authority. Such agreement may, without limiting the generality of the
foregoing, further include consent to the use by the port authority or
any other person of any real property owned or to be acquired by said
state, municipality, public authority, agency or commission and consent
to the use by such state, municipality, public authority, agency or
commission of any real property owned or to be acquired by the port
authority or by any other person which in either case is necessary,
convenient or desirable in the opinion of the port authority for any of
the purposes of this part, including such real property, improved or
unimproved, as has already been devoted to or has been or is to be
acquired for urban renewal or other public use, and as an incident to
such consent such state, municipality, public authority, agency or
commission may grant, convey, lease or otherwise transfer any such real
property to the port authority or to any other person and the port
authority may grant, convey, lease or otherwise transfer any such real
property to such state, municipality, public authority, agency, commis-
sion or any other person for such term and upon such conditions as may
be agreed upon. If real property of such state, municipality, public
authority, agency or commission be leased to the port authority or to
any other person for any of the purposes of this part, such state, muni-
cipality, public authority, agency or commission may consent to the port
authority or any other person having the right to mortgage the fee of
such property and thus enable the port authority or such other person to
give as security for its bond or bonds a lien upon the land and improve-
ments, but such state, municipality, public authority, agency or commis-
sion by consenting to the execution by the port authority or such other
person of a mortgage upon the leased property shall not thereby assume
and such consent shall not be construed as imposing upon such state,
municipality, public authority, agency or commission any liability upon
the bond or bonds secured by the mortgage. In connection with any of
the purposes of this part, either state and any municipality thereof,
any commission, public authority or agency of either or both of said two
states, the port authority and any other person are empowered to enter
into any other agreement or agreements (and from time to time to enter
into agreements amending or supplementing same) which may provide inter
alia for the establishment of prices or rates, a requirement that any
person sell, lease or purchase any commodity or service from any other
person, or any other similar arrangement.
Nothing contained in this subdivision shall impair or diminish the
powers vested in either state or in any municipality, public authority,
agency or commission to acquire, clear, replan, reconstruct, rehabili-
tate or redevelop abandoned, undeveloped or underutilized land and the
powers herein granted to either state or any municipality, public
authority, agency or commission shall be construed to be in aid of and
not in limitation or in derogation of any such powers heretofore or
A. 6754 122
hereafter conferred upon or granted to such state, municipality, public
authority, agency or commission.
Nothing contained in this part shall be construed to authorize the
port authority to acquire, by condemnation or the exercise of the right
of eminent domain, property now or hereafter vested in or held by either
state or by any municipality, public authority, agency or commission
without the authority or consent by such state, municipality, public
authority, agency or commission, provided that the state under whose
laws such public authority, agency or commission has been created may
authorize by appropriate legislation the port authority to acquire any
such property vested in or held by any such public authority, agency or
commission by condemnation or the exercise of the right of eminent
domain without such authority or consent; nor shall anything herein
impair or invalidate in any way any bonded indebtedness of either state
or any such municipality, public authority, agency or commission, nor
impair the provisions of law regulating the payment into sinking funds
of revenues derived from such property, or dedicating the revenues
derived from such property to a specific purpose.
The port authority, subject to the express authority or consent of any
such state, municipality, public authority, agency or commission, is
hereby authorized and empowered to acquire from any such state or muni-
cipality, or from any other public authority, agency or commission
having jurisdiction in the premises, by agreement therewith, and such
state or municipality, public authority, agency or commission, notwith-
standing any contrary provision of law, is hereby authorized and
empowered to grant and convey, upon reasonable terms and conditions, any
real property which may be necessary, convenient or desirable for any of
the purposes of this part, including such real property as has already
been devoted to a public use.
Notwithstanding any inconsistent provision of this section or part or
any compact or general or special law, the port authority may not
acquire any park lands for industrial development projects or facilities
unless each such conveyance of such land is specifically authorized by
the legislature of the state wherein the land is located.
Any consent by a municipality shall be given and the terms, conditions
and execution by a municipality of any agreement, deed, lease, convey-
ance or other instrument pursuant to this subdivision or any other
subdivision of this section shall be authorized in the manner provided
in article twenty-two of the compact of April thirtieth, nineteen
hundred twenty-one between the two states creating the port authority,
except that as to towns in the state of New York, such consent shall be
authorized in the manner provided in the town law and as to counties in
the state of New Jersey, such consent shall be authorized in the manner
provided in New Jersey statutes annotated, forty: one-one, et seq. Any
consent by either state shall be effective if given, and the terms and
conditions and execution of any agreement, deed, lease, conveyance or
other instrument pursuant to this section or any other section of this
part shall be effective if authorized by the governor of such state.
Any consent by a public authority, agency or commission shall be effec-
tive if given by such public authority, agency or commission.
9. The states of New York and New Jersey hereby consent to suits,
actions or proceedings by any municipality, public authority, agency or
commission against the port authority upon, in connection with or aris-
ing out of any agreement, or any amendment thereof, entered into for any
of the purposes of this part, as follows:
A. 6754 123
a. for judgments, orders or decrees restraining or enjoining the port
authority from transferring title to real property to other persons in
cases where it has agreed with said municipality, public authority,
agency, or commission for transfer of such title to the municipality,
public authority, agency or commission; and
b. for judgments, orders or decrees restraining or enjoining the port
authority from committing or continuing to commit other breaches of such
agreement or any amendment thereof; provided, that such judgment, order
or decree shall not be entered except upon two days' prior written
notice to the port authority of the proposed entry thereof; and
provided further that upon appeal taken by the port authority from such
judgment, order or decree the service of the notice of appeal shall
perfect the appeal and stay the execution of such judgment, order or
decree appealed from without an undertaking or other security.
Nothing herein contained shall be deemed to revoke, rescind or affect
any consent to suits, actions, or proceedings against the port authority
heretofore given by the two said states in chapter three hundred one of
the laws of New York of nineteen hundred fifty and continued by part XIV
of this article, and chapter two hundred four of the laws of New Jersey
of nineteen hundred fifty-one.
10. The effectuation of industrial development projects or facilities
of any such projects or facilities constituting a portion of any indus-
trial development project or facility, are and will be in all respects
for the benefit of the people of the states of New York and New Jersey,
for the increase of their commerce and prosperity and for the improve-
ment of their health and living conditions; and the port authority and
any subsidiary corporation incorporated for any of the purposes of this
part shall be regarded as performing an essential governmental function
in undertaking the effectuation thereof, and in carrying out the
provisions of law relating thereto.
11. The port authority shall be required to pay no taxes or assess-
ments upon any of the property acquired and used by it for any of the
purposes of this part or upon any deed, mortgage or other instrument
affecting such property or upon the recording of any such instrument.
However, to the end that no taxing jurisdiction shall suffer undue loss
of taxes and assessments by reason of the acquisition and ownership of
property by the port authority for any of the purposes of this part, the
port authority is hereby authorized and empowered, in its discretion, to
enter into a voluntary agreement or agreements with any city, town,
township or village whereby the port authority will undertake to pay in
lieu of taxes a fair and reasonable sum, if any, or sums annually in
connection with any real property acquired and owned by the port author-
ity for any of the purposes of this part and to provide for the payment
as a rental or additional rental charge by any person occupying any
portion of any industrial development project or facility either as
lessee, vendee or otherwise of such reasonable sum, if any, or sums as
hereinafter provided. Such sums in connection with any real property
acquired and owned by the port authority for any of the purposes of this
part shall not be more than the sum last paid as taxes upon such real
property prior to the time of its acquisition by the port authority;
provided, however, that in connection with any portion of any industrial
development project or facility, which is owned by the port authority or
another governmental entity and improved pursuant to this part with
buildings, structures or improvements greater in value than the build-
ings, structures or improvements in existence at the time of its acqui-
sition, development or improvement by the port authority, any person
A. 6754 124
occupying such portion of such industrial development project or facili-
ty either as lessee, vendee or otherwise shall, as long as title thereto
shall remain in the port authority or in another governmental entity,
pay as a rental or additional rental charge an amount in lieu of taxes,
if any, not in excess of the taxes on such improvements and on personal
property, including water and sewer service charges or assessments,
which such person would have been required to pay had it been the owner
of such property during the period for which such payment is made;
provided further, however, that neither the port authority nor any of
its projects, facilities, properties, monies or bonds and notes shall be
obligated, liable or subject to lien of any kind whatsoever for the
enforcement, collection or payment thereof. Each such city, town, town-
ship or village is hereby authorized and empowered to enter into such
agreement or agreements with the port authority which agreement or
agreements may also include provisions with respect to the joint review
of categories of tenants proposed as occupants for industrial develop-
ment projects or facilities with the cities, towns, townships or
villages in which they are proposed to be located, and to accept the
payment or payments which the port authority is hereby authorized and
empowered to make or which are paid by a person occupying any such
portion of such industrial development project or facility as rental or
as additional rental in lieu of taxes, and the sums so received by such
city, town, township or village shall be devoted to purposes to which
taxes may be applied in all affected taxing jurisdictions unless and
until otherwise directed by law of the state in which such city, town,
township or village is located. At least ten days prior to the authori-
zation by the port authority of any agreement provided for in this
subdivision, the port authority shall notify the chief executive officer
of each city in the port district within which an industrial development
project or facility has been included in the master plan provided for in
subdivision two of this section of the proposed authorization of such
agreement, shall seek their comments and shall include with such author-
ization any comments received from such city. The port authority shall
not sell or lease substantially all of an industrial development project
or facility to a proposed purchaser or lessee without the prior approval
by the municipality wherein the project or facility is located of such
purchaser or lessee.
12. Except as otherwise specifically provided, all details of the
effectuation, including but not limited to details of financing, leas-
ing, rentals, fees and other charges, rates, contracts and service, of
industrial development projects or facilities by the port authority
shall be within its sole discretion and its decision in connection with
any and all matters concerning industrial development projects or facil-
ities shall be controlling and conclusive; provided that the
construction and operation of any such project or facility shall conform
to the environmental and solid waste disposal standards and any state
and county plans therefor in the state in which such project or facility
is located. At least ninety days prior to the authorization by the port
authority of the first contract for the construction of any industrial
development project or facility, the port authority shall transmit to
the governor of the state in which such project or facility is to be
located a statement as to the conformance of such industrial development
project or facility with such environmental and solid waste disposal
standards and any state and county plans therefor, and shall consult
with such governor or his designee with respect thereto. The port
authority and the city, town, township or village in which any indus-
A. 6754 125
trial development project or facility is to be located and for whose
benefit such project or facility is undertaken are hereby authorized and
empowered to enter into an agreement or agreements to provide which
local laws, resolutions, ordinances, rules and regulations, if any, of
such city, town, township or village affecting any industrial develop-
ment project or facility shall apply to such project or facility. All
other existing local laws, resolutions, ordinances or rules and regu-
lations not provided for in such agreement shall be applicable to such
industrial development projects or facilities. All such local laws,
resolutions, ordinances or rules and regulations enacted after the date
of such agreement or agreements shall not be applicable to such projects
or facilities unless made applicable by such agreement or agreements or
any modification or modifications thereto.
So long as any facility constituting a portion of any industrial
development project or facility shall be owned, controlled or operated
by the port authority, no public authority, agency, commission or muni-
cipality of either or both of the two states shall have jurisdiction
over such project or facility nor shall any such public authority, agen-
cy, commission or municipality have any jurisdiction over the terms or
method of effectuation of all or any portion thereof by the port author-
ity including but not limited to the transfer of all or any portion
thereof to or by the port authority; provided, however, the port
authority is authorized and empowered to submit to the jurisdiction over
such project or facility of either state or any department thereof or
any such public authority, agency, commission or municipality when the
exercise of such jurisdiction is necessary for the administration or
implementation of federal environmental or solid waste disposal legis-
lation by either state.
Nothing in this part shall be deemed to prevent the port authority
from establishing, acquiring, owning, leasing, constructing, effectuat-
ing, developing, maintaining, operating, rehabilitating, improving,
selling, transferring or mortgaging all or any portion of any industrial
development project or facility through wholly owned subsidiary corpo-
rations of the port authority or subsidiary corporations owned by the
port authority jointly with any public authority, agency or commission
of either or both of the two states or from transferring to or from any
such corporations any moneys, real property or other property for any of
the purposes of this part. If the port authority shall determine from
time to time to form such a subsidiary corporation it shall do so by
executing and filing with the secretary of state of the State of New
York and the secretary of state of the State of New Jersey a certificate
of incorporation, which may be amended from time to time by similar
filing, which shall set forth the name of such subsidiary corporation,
its duration, the location of its principal office, any joint owners
thereof, and the purposes of the incorporation which shall be one or
more of the purposes of establishing, acquiring, owning, leasing,
constructing, effectuating, developing, maintaining, operating, rehabil-
itating, improving, selling, transferring or mortgaging all or any
portion of any industrial development project or facility. The direc-
tors of such subsidiary corporation shall be the same persons holding
the offices of commissioners of the port authority together with persons
representing any joint owner thereof as provided for in the agreement in
connection with the incorporation thereof. Such subsidiary corporation
shall have all the powers vested in the port authority itself for the
purposes of this part except that it shall not have the power to
contract indebtedness. Such subsidiary corporation and any of its prop-
A. 6754 126
erty, functions and activities shall have all of the privileges, immuni-
ties, tax exemptions and other exemptions of the port authority and of
the port authority's property, functions and activities. Such subsid-
iary corporation shall be subject to the restrictions and limitations to
which the port authority may be subject, including, but not limited to
the requirement that no action taken at any meeting of the board of
directors of such subsidiary corporation shall have force or effect
until the governors of the two states shall have an opportunity, in the
same manner and within the same time as now or hereafter provided by law
for approval or veto of actions taken at any meeting of the port author-
ity itself, to approve or veto such action. Such subsidiary corporation
shall be subject to suit in accordance with subdivision nine of this
section and chapter three hundred one of the laws of New York of nine-
teen hundred fifty and continued by part XIV of this article, and chap-
ter two hundred four of the laws of New Jersey of nineteen hundred
fifty-one as if such subsidiary corporation were the port authority
itself. Such subsidiary corporation may be a participating employer
under the New York retirement and social security law or any similar law
of either state and the employees of any such subsidiary corporation,
except those who are also employees of the port authority, shall not be
deemed employees of the port authority.
Whenever any state, municipality, commission, public authority, agen-
cy, officer, department, board or division is authorized and empowered
for any of the purposes of this part to co-operate and enter into agree-
ments with the port authority or to grant any consent to the port
authority or to grant, convey, lease or otherwise transfer any property
to the port authority or to execute any document, such state, munici-
pality, commission, public authority, agency, officer, department, board
or division shall have the same authorization and power for any of such
purposes to co-operate and enter into agreements with such subsidiary
corporation and to grant consents to such subsidiary corporation and to
grant, convey, lease or otherwise transfer property to such subsidiary
corporation and to execute documents for such subsidiary corporation.
13. The bonds issued by the port authority to provide funds for any of
the purposes of this part are hereby made securities in which all state
and municipal officers and bodies of both states, all trust companies
and banks other than savings banks, all building and loan associations,
savings and loan associations, investment companies and other persons
carrying on a commercial banking business, all insurance companies,
insurance associations and other persons carrying on an insurance busi-
ness, and all administrators, executors, guardians, trustees and other
fiduciaries, and all other persons whatsoever (other than savings
banks), who are now or may hereafter be authorized by either state to
invest in bonds of such state, may properly and legally invest any
funds, including capital, belonging to them or within their control, and
said bonds are hereby made securities which may properly and legally be
deposited with and shall be received by any state or municipal officer
or agency of either state for any purpose for which the deposit of bonds
of such state is now or may hereafter be authorized. The bonds issued
by the port authority to provide funds for any of the purposes of this
part as security for which the general reserve fund shall have been
pledged in whole or in part are hereby made securities in which all
savings banks also may properly and legally invest any funds including
capital, belonging to them or within their control.
14. Subsequent to and subject to the execution of the agreement or
agreements authorized by subdivisions eleven and twelve of this section
A. 6754 127
the projects and facilities and at the locations specified therein, if
the port authority shall find it necessary, convenient or desirable to
acquire from time to time any real property or any property other than
real property (including but not limited to contract rights and other
tangible or intangible personal property), for any of the purposes of
this act whether for immediate or future use (including temporary
construction, rehabilitation or improvement), the port authority may
find and determine that such property, whether a fee simple absolute or
a lesser interest, is required for a public use, and upon such determi-
nation the said property shall be and shall be deemed to be required for
such public use until otherwise determined by the port authority, and
such determination shall not be affected by the fact that such property
has theretofore been taken for and is then devoted to a public use; but
the public use in the hands of or under the control of the port authori-
ty shall be deemed superior to the public use in the hands of any other
person, association or corporation.
The port authority may acquire and is hereby authorized so to acquire
from time to time, for any of the purposes of this part, such property,
whether a fee simple absolute or a lesser estate, by condemnation
(including the exercise of the right of eminent domain) under and pursu-
ant to the provisions of the eminent domain procedure law of the state
of New York in the case of property located in or having its situs in
such state, and chapter three hundred sixty-one of the laws of New
Jersey of nineteen hundred seventy-one, in the case of property located
in or having its situs in such state, or, at the option of the port
authority, as provided in section fifteen of chapter forty-three of the
laws of New Jersey of nineteen hundred forty-seven, as amended, in the
case of property located in or having its situs in such state, or pursu-
ant to such other and alternate procedure as may be provided by law of
the state in which such property is located or has its situs; and all of
said statutes for the acquisition of real property shall, for any of the
purposes of this part, be applied also to the acquisition of other prop-
erty authorized by this subdivision, except that such provisions as
pertain to surveys, diagrams, maps, plans or profiles, assessed valu-
ation, lis pendens, service of notice and papers, filing in the office
of the clerk in which the real property affected is situated and such
other provisions as by their nature cannot be applicable to property
other than real property, shall not be applicable to the acquisition of
such other property. In the event that any property other than real
property is acquired for any of the purposes of this part under this
section then, with respect to such other property, notice of such
proceeding and all subsequent notices or court processes shall be served
upon the owners of such other property and upon the port authority by
personal service or by registered or certified mail, except as may be
otherwise directed by the court.
The port authority is hereby authorized and empowered, in its
discretion, from time to time to combine any property which is to be
acquired as aforesaid by condemnation for any of the purposes of this
part for acquisition in a single action or proceeding notwithstanding
that part of the property so to be acquired is personal property or
mixed real and personal property or may be owned by more than one owner.
The owner of any property acquired by condemnation or the exercise of
the right of eminent domain for any of the purposes of this act shall
not be awarded for such property any increment above the just compen-
sation required by the constitutions of the United States and of the
A. 6754 128
state or states in which the property is located or has its situs by
reason of any circumstances whatsoever.
Nothing herein contained shall be construed to prevent the port
authority from bringing any proceedings to remove a cloud on title or
such other proceedings as it may, in its discretion, deem proper and
necessary, or from acquiring any such property by negotiation or
purchase.
Where a person entitled to an award in the proceedings for the acqui-
sition of property by condemnation or the right of eminent domain for
any of the purposes of this part remains in possession of such property
after the time of the vesting of title in the port authority, the
reasonable value of this use and occupancy of such property subsequent
to such time, as fixed by agreement or by the court in such proceedings
or by any court of competent jurisdiction, shall be a lien against such
award, subject only to liens of record at the time of the vesting of
title in the port authority.
15. The port authority and its duly authorized agents, and all persons
acting under its authority and by its direction, may enter in the
daytime into and upon any real property for the purpose of making such
surveys, diagrams, maps, plans, soundings or borings as the port author-
ity may deem necessary, convenient or desirable for any of the purposes
of this part.
16. Any declarations contained herein with respect to the governmental
nature and public purpose of any industrial development project or
facility and to the exemption of any industrial development project or
facility property and instruments relating thereto from taxation and to
the discretion of the port authority with respect to said projects or
facilities shall not be construed to imply that other port authority
facilities, property and operations are not of a governmental nature or
do not serve public purposes, or that they are subject to taxation, or
that the determinations of the port authority with respect thereto are
not conclusive. The powers hereby vested in the port authority and in
any subsidiary corporation incorporated for any of the purposes of this
act (including but not limited to the power to acquire real property by
condemnation or the exercise of the right of eminent domain) shall be
continuing powers and no exercise thereof by the port authority or a
subsidiary corporation incorporated for any of the purposes of this part
shall be deemed to exhaust them or any of them.
17. This subdivision and the preceding subdivisions hereof constitute
an agreement between the states of New York and New Jersey supplementary
to the compact between the two states dated April thirtieth, nineteen
hundred twenty-one and amendatory thereof, and shall be liberally
construed to effectuate the purposes of said compact and of the compre-
hensive plan heretofore adopted by the two states, and the powers grant-
ed to the port authority shall be construed to be in aid of and not in
limitation or in derogation of any other powers, heretofore conferred
upon or granted to the port authority.
18. If any section, phrase, or provision of this part or the applica-
tion thereof to any person or circumstances be adjudged invalid by any
court of competent jurisdiction, so long as the section or remainder of
the part shall nonetheless permit the effectuation, as a unified
project, of any industrial development project or facility, such judg-
ment shall be confined in its operation to the section, part, phrase,
provision or application directly involved in the controversy in which
such judgment shall have been rendered and shall not affect or impair
the validity of the remainder of this act or the application thereof to
A. 6754 129
other persons or circumstances and the two states hereby declare that
they would have entered into this part or the remainder thereof had the
invalidity of such provision or application thereof been apparent.
19. A copy of the minutes of any action taken at any meeting of the
port authority in connection with any modification, addition or deletion
in or to any or all of the covenants with or pledges to bondholders
contained in a resolution authorizing the issuance of consolidated bonds
of the port authority from such covenants or pledges set forth in the
immediately preceding resolution of the port authority authorizing the
issuance of such bonds shall be filed with the temporary president and
minority leader of the senate and the speaker and minority leader of the
assembly of the state of New York and the secretary of the senate and
clerk of the general assembly of the state of New Jersey within ten
calendar days prior to transmitting the same to the governor of each
state for review if the legislature of such state be in session and not
adjourned for more than two days, and, in the event the legislatures of
the respective states are not in session or are adjourned for more than
two days, the same shall be filed with such officers thirty calendar
days prior to transmitting the same to the governor of each state for
review. Notice of such filing shall be provided to the governor of each
state at the same time.
The temporary president and minority leader of the senate and the
speaker and minority leader of the assembly of the state of New York and
the speaker of the general assembly and the president of the senate of
the state of New Jersey, or their representatives designated by them in
writing for this purpose, may by certificate filed with the secretary of
the port authority waive the foregoing filing requirement with respect
to any specific minutes.
20. The port authority shall file with the temporary president and
minority leader of the senate, the speaker and minority leader of the
assembly, the chairman of the assembly ways and means committee and the
chairman of the senate finance committee of the state of New York and
the president, minority leader and secretary of the senate and the
speaker and minority leader and clerk of the general assembly of the
state of New Jersey a copy of the minutes of any action taken at any
public meeting of the port authority in connection with any of the
purposes of this part. Such filing shall be made at least ten calendar
days before such minutes are transmitted to the governor of each state
for review; and notice of such filing shall be provided to the governor
of each state at the same time.
The temporary president and minority leader of the senate, the speaker
and minority leader of the assembly, the chairman of the assembly ways
and means committee and the chairman of the senate finance committee of
the state of New York and the speaker and minority leader of the general
assembly and the president and the minority leader of the senate of the
state of New Jersey, or their representatives designated by them in
writing for this purpose, may by certificate filed with the secretary of
the port authority waive the foregoing filing requirement with respect
to any specific minutes.
21. The comptroller of the state of New York and the treasurer of the
state of New Jersey may each from time to time request a special report
with such information as each such officer may require with respect
thereto from the port authority with respect to any or all industrial
development projects or facilities.
A. 6754 130
PART XXVIII
BUS TRANSPORTATION
Section 2801. Findings and determinations.
2802. Definitions.
2803. Bus transportation.
§ 2801. Findings and determinations. The states of New York and New
Jersey hereby find and determine that:
1. The efficient, economical and convenient mass transportation of
persons to, from and within the port district as defined in the compact
between the two states dated April thirtieth, nineteen hundred twenty-
one is vital and essential to the preservation and economic well being
of the northern New Jersey-New York metropolitan area;
2. In order to deter the economic deterioration of the northern New
Jersey-New York metropolitan area adequate facilities for the mass
transportation of persons must be provided and buses are and will remain
of extreme importance in such transportation;
3. The provision of mass transportation including bus transportation
in urban areas has become financially burdensome and may result in the
additional curtailment of significant portions of this essential public
service;
4. The economic viability of the existing facilities operated by the
port authority is dependent upon the effective and efficient functioning
of the transportation network of the northern New Jersey-New York metro-
politan area and access to and proper utilization of such port authority
facilities would be adversely affected if users of bus transportation
were to find such transportation unavailable or significantly curtailed;
5. Buses serving regional bus routes and feeder bus routes and ancil-
lary bus facilities constitute an essential part of the mass commuter
facilities of the port district;
6. The continued availability of bus transportation requires substan-
tial replacement of and additions to the number of buses presently in
use in the northern New Jersey-New York metropolitan area;
7. The port authority which was created by agreement of the two states
as their joint agent for the development of transportation and terminal
facilities and other facilities of commerce of the port district and for
the promotion and protection of the commerce of their port, is a proper
agency to provide such buses to each of the two states and such
provision of buses by the port authority is in the interest of the
continued viability of the facilities of the port authority, and is in
the public interest;
8. The operation of the facilities of the port authority, including
but not limited to the port authority bus terminal at forty-first street
and eighth avenue in New York county in the city and state of New York
and the extension thereto currently under construction (hereinafter
called the "bus terminal"), the George Washington bridge bus station and
the provision of buses and ancillary bus facilities pursuant to this
part involve the exercise of public and essential governmental functions
which must be performed by the two states or any municipality, public
authority, agency, or commission of either or both states;
9. The revision to the port authority bridge and tunnel toll schedules
which was effective May fifth, nineteen hundred seventy-five, is
expected to result in additional revenues to the port authority suffi-
cient to support the financing with consolidated bonds of the port
authority of approximately four hundred million dollars for passenger
mass transportation capital projects (hereinafter called "passenger
A. 6754 131
facilities"), approximately one hundred sixty million dollars thereof
being allocated to the extension to the bus terminal, with the remaining
two hundred forty million dollars to be allocated on the basis of one
hundred twenty million dollars in each state for passenger facilities,
including but not limited to the acquisition, development and financing
of buses and related facilities, as determined by each such state and
the port authority acting pursuant to legislative authorization and
commitments to the holders of port authority obligations; and
10. The port authority's function as a regional agency of the two
states makes it appropriate that line-haul regional bus route passenger
facilities be equipped pursuant to this part with buses and ancillary
bus facilities and that the need for development and equipment of such
routes be satisfied on a priority basis.
§ 2802. Definitions. For the purpose of this part:
1. "Ancillary bus facilities" shall mean any facilities useful in the
provision of service for line-haul regional or feeder bus routes includ-
ing but not limited to (a) fare collection, communication, signal and
identification equipment, (b) equipment to aid in the provision of bus
service to the elderly and handicapped, (c) maintenance, repair and
storage facilities and equipment, and (d) bus stations for use primarily
by passengers traveling between New York and New Jersey; automobile
parking lots for use by people who transfer to buses on line-haul
regional bus routes or feeder bus routes; and shelters at roadside bus
stops to afford waiting bus passengers protection from precipitation and
wind;
2. "Buses" shall mean vehicles containing seats for twelve or more
passengers which are designed for and regularly used in scheduled common
carrier passenger mass transportation service on streets, highways and
exclusive busways and which are not designed or used for railroad
purposes;
3. "Consolidated bonds" shall mean consolidated bonds of the issue
established by the resolution of the port authority, adopted October
ninth, nineteen hundred fifty-two;
4. "Develop" shall mean plan, design, construct, improve or rehabili-
tate;
5. "Feeder bus routes" shall mean those bus routes entirely within the
regional bus area which connect within the port district with a bus stop
on a line-haul regional bus route, a passenger ferry, or a railroad
station;
6. "Line-haul regional bus routes" shall mean bus routes which are
entirely within the regional bus area and which extend from a point
outside the county in which the bus terminal is located to a point in
such county;
7. "Municipality" shall mean a county, city, borough, village, town,
township, or other similar political subdivision of New York or New
Jersey;
8. "Person" shall mean any person, including individuals, firms, part-
nerships, associations, societies, trusts, public utilities, public or
private corporations, or other legal entities, including public or
governmental bodies, which may include the port authority, as well as
natural persons;
9. "Railroad station" shall mean a stop on a rail or subway system at
which passengers embark or disembark; and
10. "Regional bus area" shall mean that area in the states of New York
and New Jersey which lies within a radius of seventy-five miles of the
bus terminal.
A. 6754 132
§ 2803. Bus transportation. 1. The port authority is authorized and
empowered to acquire, develop, finance, and transfer buses and ancillary
bus facilities for the purpose of leasing, selling, transferring or
otherwise disposing of such buses and ancillary bus facilities only to
the state of New York and the state of New Jersey or to any public
authority, agency, commission, city or county thereof and designated by
such state (hereinafter called the "lessee"). Such buses may be used
only on line-haul regional bus routes or on feeder bus routes and such
ancillary bus facilities shall be developed for and used in connection
with buses which travel on line-haul regional bus routes or feeder bus
routes; provided, however, that (a) such buses may be used for charter
bus trips which originate in the regional bus area, which take place
when such buses are not needed for service on line-haul regional bus
routes or feeder bus routes, and which comply with all applicable
requirements including but not limited to those of the port authority
and the lessee; and (b) provided that fare collection, communication and
identification equipment and maintenance, repair and storage facilities
and equipment acquired pursuant to this act may be utilized in
connection with bus service which is not on line-haul regional or feeder
bus routes to the extent that such utilization shall comply with all
applicable requirements including but not limited to those of the port
authority and the lessee. Ancillary bus facilities which are not located
on buses or which are not otherwise intended to be moved from place to
place shall be located only within the port district.
2. Any such lease, sale, transfer or other disposition of buses and
ancillary bus facilities shall be on such terms and conditions, includ-
ing consideration, consistent with this part as the port authority shall
deem in the public interest and which shall be acceptable to the port
authority and the lessee. Notwithstanding any contrary provision of law,
general, special or local, part of the consideration for any such lease
or transfer shall consist of an agreement by the lessee to maintain and
use such buses and ancillary bus facilities, or cause such buses and
ancillary bus facilities to be maintained and used by others under
agreement with the lessee, in the effective and efficient transportation
of passengers in accordance with this act and the port authority may
accept such agreement in lieu of any other consideration for such lease
or transfer. The lessee shall be responsible for the proper operation,
maintenance, repair and use of the buses and ancillary bus facilities
and the port authority shall not be liable in any respect by reason of
the ownership, development, operation, maintenance, repair or use of
such buses and ancillary bus facilities. Anything contained in this part
to the contrary notwithstanding, development of such buses and ancillary
bus facilities and introduction into service of such buses shall be
subject to the approval of the lessee.
3. The two states covenant and agree with each other and with the
holders of the present and future obligations of the port authority that
(a) the lessee of buses or ancillary bus facilities leased, transferred
or otherwise disposed of pursuant to this part shall be required to
defend and to provide for indemnification, subject to appropriations or
other funds which are or become legally available for this purpose, of
the port authority against any liability of whatsoever form or nature as
may be imposed upon the port authority by reason of the ownership,
development, operation, maintenance, repair or use thereof or arising
otherwise out of the port authority's interest therein; (b) the lessee
shall be required to provide for and be responsible for the proper oper-
ation, maintenance, repair, and use of such buses and ancillary bus
A. 6754 133
facilities leased, transferred or otherwise disposed of pursuant to this
part and the port authority shall have no responsibility as to such
operation, maintenance, repair or use; and (c) neither the states nor
the port authority will apply to any purpose in connection with or
relating to the operation, maintenance, repair or use of such bus or
ancillary bus facilities leased, transferred or otherwise disposed of
pursuant to this part, other than purposes in connection with the utili-
zation of other port authority facilities by such buses and passenger
information purposes, any of the rentals, tolls, fares, fees, charges,
revenues, reserves or other funds of the port authority which have been
or shall be pledged in whole or in part as security for obligations as
security for which there may be or shall be pledged, in whole or in part
the general reserve fund of the port authority.
4. Any capital expenditures by the port authority for buses and ancil-
lary bus facilities to be leased, sold, transferred or otherwise
disposed of pursuant to this part shall be made with the proceeds of
consolidated bonds of the port authority, which may be issued to finance
such capital expenditures, and such capital expenditures shall be a part
of and shall not exceed the allocations for passenger facilities to be
made from time to time as determined in accordance with subdivision nine
of section twenty-eight hundred one of this part.
5. The port authority is authorized and empowered to cooperate with
the states of New York and New Jersey, with any municipality thereof,
with the federal government and any public authority, agency or commis-
sion of the foregoing or with any one or more of them or with any other
person to the extent that it finds it necessary and desirable to do so
in connection with the acquisition, development, financing, leasing,
sale, transfer or other disposition of buses and ancillary bus facili-
ties and to enter into an agreement or agreements (and from time to time
to enter into agreements amending or supplementing the same) with said
states, municipalities, federal government, public authorities, agen-
cies, commissions and persons or with any one or more of them for or
relating to such purposes.
6. Notwithstanding any contrary provision of law, general, special or
local, either state or any municipality, public authority, agency, or
commission of either or both of said two states or any other person is
authorized and empowered to cooperate with the port authority and to
enter into an agreement or agreements (and from time to time to enter
into agreements amending or supplementing the same) with the port
authority including but not limited to the agreements with respect to
buses and ancillary bus facilities leased, transferred or otherwise
disposed of pursuant to this part, upon such reasonable terms and condi-
tions as determined by such state, municipality, public authority, agen-
cy, commission or person and the port authority.
7. Any consent by a municipality shall be given and the terms, condi-
tions and execution by a municipality of any agreement, deed, lease,
conveyance or other instrument pursuant to this subdivision or any other
subdivision of this section shall be authorized in the manner provided
in article twenty-two of the compact of April thirtieth, nineteen
hundred twenty-one between the two states creating the port authority,
except that as to towns in the state of New York, such consent shall be
authorized in the manner provided in the town law and as to counties in
the state of New Jersey, such consent shall be authorized in the manner
provided in New Jersey statutes annotated, title forty: chapter one,
section one, et seq. The terms and conditions and execution by either
state of any agreement, consent, designation, determination, deed,
A. 6754 134
lease, conveyance or other instrument pursuant to this subdivision or
any other subdivision of this section shall be effective if authorized
by the governor of such state. The powers herein granted to either state
or any municipality, public authority, agency or commission shall be
construed to be in aid of and not in limitation or in derogation of any
such powers heretofore or hereafter conferred upon or granted to such
state, municipality, public authority, agency or commission. Any consent
by a public authority, agency or commission shall be effective if given
by such public authority, agency or commission.
8. The port authority shall be required to pay no taxes or assessments
upon any of the property, real or personal, acquired or used by it for
any purpose of this part or upon any lease, deed, mortgage or other
instrument affecting such property or upon the recording of any instru-
ment made in connection with the acquisition, development, financing,
lease, sale, transfer or other disposition or use of such property.
9. The port authority shall not be subject to the jurisdiction of any
municipality, public authority, agency or commission of either or both
of the two states in connection with the acquisition, development,
financing, lease, sale, transfer or other disposition of buses, ancil-
lary bus facilities or otherwise in connection with the purposes of this
part.
10. The acquisition, development, financing, leasing, sale, transfer
or other disposition by the port authority of buses and ancillary bus
facilities in accordance with this part are and will be in all respects
for the benefit of the people of the said two states, for the increase
of their commerce and prosperity and for the improvement of their
health, safety and living conditions and shall be deemed to be public
purposes; and the port authority shall be regarded as performing an
essential governmental function in undertaking such acquisition, devel-
opment, financing, leasing, sale, transfer or other disposition or
otherwise carrying out the provisions of this part.
11. Any declarations contained herein with respect to the governmental
nature and public purposes of the facilities authorized by this part and
to the exemption of such facilities and instruments relating thereto
from taxation and to the discretion of the port authority with respect
to said facilities shall not be construed to imply that other port
authority facilities, property and operations are not of a governmental
nature or do not serve public purposes, or that they are subject to
taxation, or that the determinations of the port authority with respect
thereto are not conclusive.
12. This subdivision and the preceding subdivisions hereof constitute
an agreement between the states of New York and New Jersey supplementary
to the compact between the two states dated April thirtieth, nineteen
hundred twenty-one and amendatory thereof, and shall be liberally
construed to effectuate the purposes of said compact and of the compre-
hensive plan heretofore adopted by the two states, and the powers grant-
ed to the port authority shall be construed to be in aid of and not in
limitation or in derogation of any other powers heretofore conferred
upon or granted to the port authority.
PART XXIX
GENERAL RESERVE FUND
Section 2901. Definitions.
2902. Establishment of general reserve fund.
2903. Effective date.
A. 6754 135
§ 2901. Definitions. As used in this part:
(a) "Port authority" means the port of New York authority created by
the compact of April thirtieth, nineteen hundred twenty-one, between the
states of New York and New Jersey and continued by part I of this arti-
cle.
(b) "Bonds legal for investment" means bonds or other obligations or
securities of the port authority, in which savings banks in both of the
two said states are now or may hereafter be authorized to invest funds
within their control.
(c) "Terminal and/or transportation facilities" means terminal and/or
transportation facilities as used in the said compact of April thirti-
eth, nineteen hundred twenty-one, and as defined in subdivisions eleven
and twelve of section one hundred three of this article.
(d) "Surplus revenues" means, in the case of each terminal or trans-
portation facility, the balance of the revenues therefrom remaining at
any time currently in the hands of the port authority after the
deduction of the current expenses of the operation and maintenance ther-
eof, including a proper proportion of the general expenses of the port
authority, and after the deduction of any amounts which the port author-
ity may or shall be obligated or may or shall have obligated itself to
pay or to set aside out of the current revenues therefrom for the bene-
fit of the holders of any bonds legal for investment, and after the
deduction of any amounts currently due to the two said states on account
of any advances made by the two said states to the port authority in aid
of the effectuation of such terminal or transportation facility.
§ 2902. Establishment of general reserve fund. In all cases where the
port authority has raised or shall hereafter raise moneys for the estab-
lishment, acquisition, construction or effectuation of terminal and/or
transportation facilities by the issue and sale of bonds legal for
investment, as herein defined and limited, the surplus revenues received
by or accruing to the port authority from or in connection with the
operation of such terminal and/or transportation facilities built in
whole or in part by the proceeds of the sale of such bonds shall be
pooled and applied by it to the establishment and maintenance of a
general reserve fund in an amount equal to one-tenth (1/10) of the par
value of all bonds legal for investment, as herein defined and limited,
issued by the port authority and currently outstanding. The moneys in
the said general reserve fund may be pledged in whole or in part by the
port authority as security for or applied by it to the repayment with
interest of any moneys which it has raised or may hereafter raise upon
any bonds, legal or investment, as herein defined and limited, and made
and issued by it for any of its lawful purposes; and the said moneys may
be applied by the port authority to the fulfillment of any other under-
takings which it has assumed or may or shall hereafter assume to or for
the benefit of the holders of any of such bonds.
Any surplus revenues not required for the establishment and mainte-
nance of the aforesaid general reserve fund shall be used for such
purposes as may hereafter be directed by the two said states.
§ 2903. Effective date. This part shall take effect upon the enactment
into law by the state of New Jersey of legislation having an identical
effect with this act, but if the State of New Jersey has already enacted
such legislation, this act shall take effect immediately.
ARTICLE II
THE WATERFRONT AND AIRPORT COMMISSION OF NEW YORK AND
NEW JERSEY COMPACT
PART I
A. 6754 136
THE WATERFRONT AND AIRPORT COMMISSION OF NEW YORK AND
NEW JERSEY COMPACT
Section 3001. Compact.
3002. Findings and declarations.
3003. Definitions.
3004. Waterfront and airport commission of New York and New
Jersey.
3005. General powers of commission.
3006. Pier superintendents and hiring agents.
3007. Stevedores.
3008. Prohibition of public loading.
3009. Longshoreman.
3010. Regularization of longshoremen's employment.
3011. Port watchmen.
3012. Hearings, determinations and review.
3013. Employment information centers.
3014. Expenses of administration.
3015. General violations; prosecutions; penalties.
3016. Collective bargaining safeguarded.
3017. Amendments; construction; short title.
§ 3001. Compact. The "waterfront and airport commission of New York
and New Jersey compact" as first enacted by chapter eight hundred eight-
y-two of the laws of nineteen hundred fifty-three is hereby continued to
read as follows. The state of New York hereby agrees with the state of
New Jersey, upon the enactment by the state of New Jersey of legislation
having the same effect as this section, to the following compact.
§ 3002. Findings and declarations. 1. The states of New York and New
Jersey hereby find and declare that the conditions under which water-
front labor is employed within the port of New York district are
depressing and degrading to such labor, resulting from the lack of any
systematic method of hiring, the lack of adequate information as to the
availability of employment, corrupt hiring practices and the fact that
persons conducting such hiring are frequently criminals and persons
notoriously lacking in moral character and integrity and neither respon-
sive or responsible to the employers nor to the uncoerced will of the
majority of the members of the labor organizations of the employees;
that as a result waterfront laborers suffer from irregularity of employ-
ment, fear and insecurity, inadequate earnings, an unduly high accident
rate, subjection to borrowing at usurious rates of interest, exploita-
tion and extortion as the price of securing employment and a loss of
respect for the law; that not only does there result a destruction of
the dignity of an important segment of American labor, but a direct
encouragement of crime which imposes a levy of greatly increased costs
on food, fuel and other necessaries handled in and through the port of
New York district.
2. The states of New York and New Jersey hereby find and declare that
many of the evils above described result not only from the causes above
described but from the practices of public loaders at piers and other
waterfront terminals; that such public loaders serve no valid economic
purpose and operate as parasites exacting a high and unwarranted toll on
the flow of commerce in and through the port of New York district, and
have used force and engaged in discriminatory and coercive practices
including extortion against persons not desiring to employ them; and
that the function of loading and unloading trucks and other land vehi-
A. 6754 137
cles at piers and other waterfront terminals can and should be
performed, as in every other major American port, without the evils and
abuses of the public loader system, and by the carriers of freight by
water, stevedores and operators of such piers and other waterfront
terminals or the operators of such trucks or other land vehicles.
3. The states of New York and New Jersey hereby find and declare that
many of the evils above described result not only from the causes above
described but from the lack of regulation of the occupation of steve-
dores; that such stevedores have engaged in corrupt practices to induce
their hire by carriers of freight by water and to induce officers and
representatives of labor organizations to betray their trust to the
members of such labor organizations.
4. The states of New York and New Jersey hereby find and declare that
the occupations of longshoremen, stevedores, pier superintendents,
hiring agents and port watchmen are affected with a public interest
requiring their regulation and that such regulation shall be deemed an
exercise of the police power of the two states for the protection of the
public safety, welfare, prosperity, health, peace and living conditions
of the people of the two states.
§ 3003. Definitions. As used in this compact:
1. "The port of New York district" shall mean the district created by
article II of the compact dated April thirtieth, nineteen hundred twen-
ty-one, between the states of New York and New Jersey, authorized by
chapter one hundred fifty-four of the laws of New York of nineteen
hundred twenty-one and continued by article I of this chapter, and chap-
ter one hundred fifty-one of the laws of New Jersey of nineteen hundred
twenty-one.
2. "Commission" shall mean the waterfront and airport commission of
New York and New Jersey established by section three thousand four of
this part.
3. "Pier" shall include any wharf, pier, dock or quay.
4. "Other waterfront terminal" shall include any warehouse, depot or
other terminal (other than a pier) which is located within one thousand
yards of any pier in the port of New York district and which is used for
waterborne freight in whole or substantial part.
5. "Person" shall mean not only a natural person but also any partner-
ship, joint venture, association, corporation or any other legal entity
but shall not include the United States, any state or territory thereof
or any department, division, board, commission or authority of one or
more of the foregoing.
6. "Carrier of freight by water" shall mean any person who may be
engaged or who may hold himself out as willing to be engaged, whether as
a common carrier, as a contract carrier or otherwise (except for
carriage of liquid cargoes in bulk in tank vessels designed for use
exclusively in such service or carriage by barge of bulk cargoes
consisting of only a single commodity loaded or carried without wrappers
or containers and delivered by the carrier without transportation mark
or count) in the carriage of freight by water between any point in the
port of New York district and a point outside said district.
7. "Waterborne freight" shall mean freight carried by or consigned for
carriage by carriers of freight by water.
8. "Longshoreman" shall mean a natural person, other than a hiring
agent, who is employed for work at a pier or other waterfront terminal,
either by a carrier of freight by water or by a stevedore:
(a) physically to move waterborne freight on vessels berthed at piers,
on piers or at other waterfront terminals, or
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(b) to engage in direct and immediate checking of any such freight or
of the custodial accounting therefor or in the recording or tabulation
of the hours worked at piers or other waterfront terminals by natural
persons employed by carriers of freight by water or stevedores, or
(c) to supervise directly and immediately others who are employed as
in subdivision (a) of this section.
9. "Pier superintendent" shall mean any natural person other than a
longshoreman who is employed for work at a pier or other waterfront
terminal by a carrier of freight by water or a stevedore and whose work
at such pier or other waterfront terminal includes the supervision,
directly or indirectly, of the work of longshoremen.
10. "Port watchman" shall include any watchman, gateman, roundsman,
detective, guard, guardian or protector of property employed by the
operator of any pier or other waterfront terminal or by a carrier of
freight by water to perform services in such capacity on any pier or
other waterfront terminal.
11. "Longshoremen's register" shall mean the register of eligible
longshoremen compiled and maintained by the commission pursuant to
section three thousand nine of this part.
12. "Stevedore" shall mean a contractor (not including an employee)
engaged for compensation pursuant to a contract or arrangement with a
carrier of freight by water, in moving waterborne freight carried or
consigned for carriage by such carrier on vessels of such carrier
berthed at piers, on piers at which such vessels are berthed or at other
waterfront terminals.
13. "Hiring agent" shall mean any natural person, who on behalf of a
carrier of freight by water or a stevedore shall select any longshoreman
for employment.
14. "Compact" shall mean this compact and rules or regulations
lawfully promulgated thereunder.
§ 3004. Waterfront and airport commission of New York and New Jersey.
1. There is hereby created the waterfront and airport commission of New
York and New Jersey, which shall be a body corporate and politic, an
instrumentality of the states of New York and New Jersey.
2. The commission shall consist of four members, two to be chosen by
the state of New Jersey and two to be chosen by the state of New York.
The members representing each state shall be appointed by the governor
of such state with the advice and consent of the senate thereof, without
regard to the state of residence of such members, and shall receive
compensation to be fixed by the governor of such state. The term of
office of each member shall be for four years; provided, however, that
the two present members of the commission heretofore appointed shall
continue to serve as members until the expiration of the respective
terms for which they were appointed, that the term of the two new
members shall expire on June thirtieth, nineteen hundred seventy-three,
and that the term of the successors to the present members shall expire
on June thirtieth, nineteen hundred seventy-five. Each member shall
hold office until his successor has been appointed and qualified.
Vacancies in office shall be filled for the balance of the unexpired
term in the same manner as original appointments.
3. Three members of the commission shall constitute a quorum; but the
commission shall act only by a majority vote of all its members. Any
member may, by written instrument filed in the office of the commission,
designate any officer or employee of the commission to act in his place
as a member whenever he shall be unable to attend a meeting of the
commission. A vacancy in the office of a member shall not impair such
A. 6754 139
designation until the vacancy shall have been filled. The commission
shall elect one of its members to serve as chairman for a term of one
year; provided, however, that the term of the first chairman shall
expire on June thirtieth, nineteen hundred seventy-one. The chairman
shall represent a state other than the state represented by the imme-
diately preceding chairman.
§ 3005. General powers of commission. In addition to the powers and
duties elsewhere prescribed in this compact, the commission shall have
the power:
1. To sue and be sued;
2. To have a seal and alter the same at pleasure;
3. To acquire, hold and dispose of real and personal property by gift,
purchase, lease, license or other similar manner, for its corporate
purposes;
4. To determine the location, size and suitability of accommodations
necessary and desirable for the establishment and maintenance of the
employment information centers provided in section three thousand thir-
teen of this part and for administrative offices for the commission;
5. To appoint such officers, agents and employees as it may deem
necessary, prescribe their powers, duties and qualifications and fix
their compensation and retain and employ counsel and private consultants
on a contract basis or otherwise;
6. To administer and enforce the provisions of this compact;
7. To make and enforce such rules and regulations as the commission
may deem necessary to effectuate the purposes of this compact or to
prevent the circumvention or evasion thereof, to be effective upon
publication in the manner which the commission shall prescribe and upon
filing in the office of the secretary of state of each state. A certi-
fied copy of any such rules and regulations, attested as true and
correct by the commission, shall be presumptive evidence of the regular
making, adoption, approval and publication thereof;
8. By its members and its properly designated officers, agents and
employees, to administer oaths and issue subpoenas to compel the attend-
ance of witnesses and the giving of testimony and the production of
other evidence;
9. To have for its members and its properly designated officers,
agents and employees, full and free access, ingress and egress to and
from all vessels, piers and other waterfront terminals or other places
in the port of New York district, for the purposes of making inspection
or enforcing the provisions of this compact; and no person shall
obstruct or in any way interfere with any such member, officer, employee
or agent in the making of such inspection, or in the enforcement of the
provisions of this compact or in the performance of any other power or
duty under this compact;
10. To recover possession of any suspended or revoked license issued
under this compact;
11. To make investigations, collect and compile information concerning
waterfront practices generally within the port of New York district and
upon all matters relating to the accomplishment of the objectives of
this compact;
12. To advise and consult with representatives of labor and industry
and with public officials and agencies concerned with the effectuation
of the purposes of this compact, upon all matters which the commission
may desire, including but not limited to the form and substance of rules
and regulations, the administration of the compact, maintenance of the
longshoremen's register, and issuance and revocation of licenses;
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13. To make annual and other reports to the governors and legislatures
of both states containing recommendations for the improvement of the
conditions of waterfront labor within the port of New York district, for
the alleviation of the evils described in section three thousand two of
this part and for the effectuation of the purposes of this compact.
Such annual reports shall state the commission's finding and determi-
nation as to whether the public necessity still exists for (a) the
continued registration of longshoremen, (b) the continued licensing of
any occupation or employment required to be licensed hereunder and (c)
the continued public operation of the employment information centers
provided for in section three thousand thirteen of this part.
14. To cooperate with and receive from any department, division,
bureau, board, commission, or agency of either or both states, or of any
county or municipality thereof, such assistance and data as will enable
it properly to carry out its powers and duties hereunder; and to
request any such department, division, bureau, board, commission, or
agency, with the consent thereof, to execute such of its functions and
powers, as the public interest may require.
15. The powers and duties of the commission may be exercised by offi-
cers, employees and agents designated by them, except the power to make
rules and regulations. The commission shall have such additional powers
and duties as may hereafter be delegated to or imposed upon it from time
to time by the action of the legislature of either state concurred in by
the legislature of the other.
§ 3006. Pier superintendents and hiring agents. 1. On or after the
first day of December, nineteen hundred fifty-three, no person shall act
as a pier superintendent or as a hiring agent within the port of New
York district without first having obtained from the commission a
license to act as such pier superintendent or hiring agent, as the case
may be, and no person shall employ or engage another person to act as a
pier superintendent or hiring agent who is not so licensed.
2. A license to act as a pier superintendent or hiring agent shall be
issued only upon the written application, under oath, of the person
proposing to employ or engage another person to act as such pier super-
intendent or hiring agent, verified by the prospective licensee as to
the matters concerning him, and shall state the following:
(a) The full name and business address of the applicant;
(b) The full name, residence, business address (if any), place and
date of birth and social security number of the prospective licensee;
(c) The present and previous occupations of the prospective licensee,
including the places where he was employed and the names of his employ-
ers;
(d) Such further facts and evidence as may be required by the commis-
sion to ascertain the character, integrity and identity of the prospec-
tive licensee; and
(e) That if a license is issued to the prospective licensee, the
applicant will employ such licensee as pier superintendent or hiring
agent, as the case may be.
3. No such license shall be granted
(a) Unless the commission shall be satisfied that the prospective
licensee possesses good character and integrity;
(b) If the prospective licensee has, without subsequent pardon, been
convicted by a court of the United States, or any state or territory
thereof, of the commission of, or the attempt or conspiracy to commit,
treason, murder, manslaughter or any felony or high misdemeanor or any
of the following misdemeanors or offenses: illegally using, carrying or
A. 6754 141
possessing a pistol or other dangerous weapon; making or possessing
burglar's instruments; buying or receiving stolen property; unlawful
entry of a building; aiding an escape from prison; unlawfully possess-
ing, possessing with intent to distribute, sale or distribution of a
controlled dangerous substance (controlled substance) or, in New Jersey,
a controlled dangerous substance analog (controlled substance analog);
and violation of this compact. Any such prospective licensee ineligible
for a license by reason of any such conviction may submit satisfactory
evidence to the commission that he has for a period of not less than
five years, measured as hereinafter provided, and up to the time of
application, so conducted himself as to warrant the grant of such
license, in which event the commission may, in its discretion, issue an
order removing such ineligibility. The aforesaid period of five years
shall be measured either from the date of payment of any fine imposed
upon such person or the suspension of sentence or from the date of his
unrevoked release from custody by parole, commutation or termination of
his sentence;
(c) If the prospective licensee knowingly or wilfully advocates the
desirability of overthrowing or destroying the government of the United
States by force or violence or shall be a member of a group which advo-
cates such desirability, knowing the purposes of such group include such
advocacy.
4. When the application shall have been examined and such further
inquiry and investigation made as the commission shall deem proper and
when the commission shall be satisfied therefrom that the prospective
licensee possesses the qualifications and requirements prescribed in
this section, the commission shall issue and deliver to the prospective
licensee a license to act as pier superintendent or hiring agent for the
applicant, as the case may be, and shall inform the applicant of his
action. The commission may issue a temporary permit to any prospective
licensee for a license under the provisions of this section pending
final action on an application made for such a license. Any such permit
shall be valid for a period not in excess of thirty days.
5. No person shall be licensed to act as a pier superintendent or
hiring agent for more than one employer, except at a single pier or
other waterfront terminal, but nothing in this section shall be
construed to limit in any way the number of pier superintendents or
hiring agents any employer may employ.
6. A license granted pursuant to this section shall continue through
the duration of the licensee's employment by the employer who shall have
applied for his license.
7. Any license issued pursuant to this section may be revoked or
suspended for such period as the commission deems in the public interest
or the licensee thereunder may be reprimanded for any of the following
offenses:
(a) Conviction of a crime or act by the licensee or other cause which
would require or permit his disqualification from receiving a license
upon original application;
(b) Fraud, deceit or misrepresentation in securing the license, or in
the conduct of the licensed activity;
(c) Violation of any of the provisions of this section;
(d) Conviction of a crime involving unlawfully possessing, possession
with intent to distribute, sale or distribution of a controlled danger-
ous substance (controlled substance) or, in New Jersey, a controlled
dangerous substance analog (controlled substance analog);
A. 6754 142
(e) Employing, hiring or procuring any person in violation of this
section or inducing or otherwise aiding or abetting any person to
violate the terms of this section;
(f) Paying, giving, causing to be paid or given or offering to pay or
give to any person any valuable consideration to induce such other
person to violate any provision of this section or to induce any public
officer, agent or employee to fail to perform his duty hereunder;
(g) Consorting with known criminals for an unlawful purpose;
(h) Transfer or surrender of possession of the license to any person
either temporarily or permanently without satisfactory explanation;
(i) False impersonation of another licensee under this section;
(j) Receipt or solicitation of anything of value from any person other
than the licensee's employer as consideration for the selection or
retention for employment of any longshoreman;
(k) Coercion of a longshoreman by threat of discrimination or violence
or economic reprisal, to make purchases from or to utilize the services
of any person;
(l) Lending any money to or borrowing any money from a longshoreman
for which there is a charge of interest or other consideration; and
(m) Membership in a labor organization which represents longshoremen
or port watchmen; but nothing in this subdivision shall be deemed to
prohibit pier superintendents or hiring agents from being represented by
a labor organization or organizations which do not also represent long-
shoremen or port watchmen. The American Federation of Labor, the
Congress of Industrial Organizations and any other similar federation,
congress or other organization of national or international occupational
or industrial labor organizations shall not be considered an organiza-
tion which represents longshoremen or port watchmen within the meaning
of this section although one of the federated or constituent labor
organizations thereof may represent longshoremen or port watchmen.
§ 3007. Stevedores. 1. On or after the first day of December, nine-
teen hundred fifty-three, no person shall act as a stevedore within the
port of New York district without having first obtained a license from
the commission, and no person shall employ a stevedore to perform
services as such within the port of New York district unless the steve-
dore is so licensed.
2. Any person intending to act as a stevedore within the port of New
York district shall file in the office of the commission a written
application for a license to engage in such occupation, duly signed and
verified as follows:
(a) If the applicant is a natural person, the application shall be
signed and verified by such person and if the applicant is a partner-
ship, the application shall be signed and verified by each natural
person composing or intending to compose such partnership. The applica-
tion shall state the full name, age, residence, business address (if
any), present and previous occupations of each natural person so signing
the same, and any other facts and evidence as may be required by the
commission to ascertain the character, integrity and identity of each
natural person so signing such application.
(b) If the applicant is a corporation, the application shall be signed
and verified by the president, secretary and treasurer thereof, and
shall specify the name of the corporation, the date and place of its
incorporation, the location of its principal place of business, the
names and addresses of, and the amount of the stock held by stockholders
owning 5 per cent or more of any of the stock thereof, and of all offi-
cers (including all members of the board of directors). The require-
A. 6754 143
ments of paragraph (a) of this subdivision as to a natural person who is
a member of a partnership, and such requirements as may be specified in
rules and regulations promulgated by the commission, shall apply to each
such officer or stockholder and their successors in office or interest
as the case may be.
(c) In the event of the death, resignation or removal of any officer,
and in the event of any change in the list of stockholders who shall own
five per cent or more of the stock of the corporation, the secretary of
such corporation shall forthwith give notice of that fact in writing to
the commission, certified by said secretary.
3. No such license shall be granted
(a) If any person whose signature or name appears in the application
is not the real party in interest required by subdivision two of this
section to sign or to be identified in the application or if the person
so signing or named in the application is an undisclosed agent or trus-
tee for any such real party in interest;
(b) Unless the commission shall be satisfied that the applicant and
all members, officers and stockholders required by subdivision two of
this section to sign or be identified in the application for license
possess good character and integrity;
(c) Unless the applicant is either a natural person, partnership or
corporation;
(d) Unless the applicant shall be a party to a contract then in force
or which will take effect upon the issuance of a license, with a carrier
of freight by water for the loading and unloading by the applicant of
one or more vessels of such carrier at a pier within the port of New
York district;
(e) If the applicant or any member, officer or stockholder required by
subdivision two of this section to sign or be identified in the applica-
tion for license has, without subsequent pardon, been convicted by a
court of the United States or any state or territory thereof of the
commission of, or the attempt or conspiracy to commit, treason, murder,
manslaughter or any felony or high misdemeanor or any of the misdemea-
nors or offenses described in paragraph (b) of subdivision three of this
section. Any applicant ineligible for a license by reason of any such
conviction may submit satisfactory evidence to the commission that the
person whose conviction was the basis of ineligibility has for a period
of not less than five years, measured as hereinafter provided and up to
the time of application, so conducted himself as to warrant the grant of
such license, in which event the commission may, in its discretion issue
an order removing such ineligibility. The aforesaid period of five years
shall be measured either from the date of payment of any fine imposed
upon such person or the suspension of sentence or from the date of his
unrevoked release from custody by parole, commutation or termination of
his sentence;
(f) If, on or after July first, nineteen hundred fifty-three, the
applicant has paid, given, caused to have been paid or given or offered
to pay or give to any officer or employee of any carrier of freight by
water any valuable consideration for an improper or unlawful purpose or
to induce such person to procure the employment of the applicant by such
carrier for the performance of stevedoring services;
(g) If, on or after July first, nineteen hundred fifty-three, the
applicant has paid, given, caused to be paid or given or offered to pay
or give to any officer or representative of a labor organization any
valuable consideration for an improper or unlawful purpose or to induce
such officer or representative to subordinate the interests of such
A. 6754 144
labor organization or its members in the management of the affairs of
such labor organization to the interests of the applicant.
4. When the application shall have been examined and such further
inquiry and investigation made as the commission shall deem proper and
when the commission shall be satisfied therefrom that the applicant
possesses the qualifications and requirements prescribed in this
section, the commission shall issue and deliver a license to such appli-
cant. The commission may issue a temporary permit to any applicant for
a license under the provisions of this article pending final action on
an application made for such a license. Any such permit shall be valid
for a period not in excess of thirty days.
5. A license granted pursuant to this section shall be for a term of
two years or fraction of such two year period, and shall expire on the
first day of December of each odd numbered year. In the event of the
death of the licensee, if a natural person, or its termination or
dissolution by reason of the death of a partner, if a partnership, or if
the licensee shall cease to be a party to any contract of the type
required by paragraph (d) of subdivision three of this section, the
license shall terminate ninety days after such event or upon its expira-
tion date, whichever shall be sooner. A license may be renewed by the
commission for successive two year periods upon fulfilling the same
requirements as are set forth in this section for an original applica-
tion.
6. Any license issued pursuant to this section may be revoked or
suspended for such period as the commission deems in the public interest
or the licensee thereunder may be reprimanded for any of the following
offenses on the part of the licensee or of any person required by subdi-
vision two of this section to sign or be identified in an original
application for a license:
(a) Conviction of a crime or other cause which would permit or require
disqualification of the licensee from receiving a license upon original
application;
(b) Fraud, deceit or misrepresentation in securing the license or in
the conduct of the licensed activity;
(c) Failure by the licensee to maintain a complete set of books and
records containing a true and accurate account of the licensee's
receipts and disbursements arising out of his activities within the port
of New York district;
(d) Failure to keep said books and records available during business
hours for inspection by the commission and its duly designated represen-
tatives until the expiration of the fifth calendar year following the
calendar year during which occurred the transactions recorded therein;
(e) Any other offense described in paragraphs (c) to (i) inclusive, of
subdivision seven of section three thousand six of this part.
§ 3008. Prohibition of public loading. 1. The states of New York and
New Jersey hereby find and declare that the transfer of cargo to and
from trucks at piers and other waterfront terminals in the port of New
York district has resulted in vicious and notorious abuses by persons
commonly known as "public loaders." There is compelling evidence that
such persons have exacted the payment of exorbitant charges for their
services, real and alleged, and otherwise extorted large sums through
force, threats of violence, unauthorized labor disturbances and other
coercive activities, and that they had been responsible for and abetted
criminal activities on the waterfront. These practices which have
developed in the port of New York district impose unjustified costs on
the handling of goods in and through the port of New York district, and
A. 6754 145
increase the prices paid by consumers for food, fuel and other neces-
saries, and impair the economic stability of the port of New York
district. It is the sense of the legislatures of the states of New York
and New Jersey that these practices and conditions must be eliminated to
prevent grave injury to the welfare of the people.
2. It is hereby declared to be against the public policy of the states
of New York and New Jersey and to be unlawful for any person to load or
unload waterborne freight onto or from vehicles other than railroad cars
at piers or at other waterfront terminals within the port of New York
district, for a fee or other compensation, other than the following
persons and their employees:
(a) Carriers of freight by water, but only at piers at which their
vessels are berthed;
(b) Other carriers of freight (including but not limited to railroads
and truckers), but only in connection with freight transported or to be
transported by such carriers;
(c) Operators of piers or other waterfront terminals (including rail-
roads, truck terminal operators, warehousemen and other persons), but
only at piers or other waterfront terminals operated by them;
(d) Shippers or consignees of freight, but only in connection with
freight shipped by such shipper or consigned to such consignee;
(e) Stevedores licensed under section three thousand eight of this
part whether or not such waterborne freight has been or is to be trans-
ported by a carrier of freight by water with which such stevedore shall
have a contract of the type prescribed by paragraph (d) of subdivision 3
of section three thousand seven of this part.
Nothing herein contained shall be deemed to permit any such loading or
unloading of any waterborne freight at any place by any such person by
means of any independent contractor, or any other agent other than an
employee, unless such independent contractor is a person permitted by
this section to load or unload such freight at such place in his own
right.
§ 3009. Longshoremen. 1. The commission shall establish a
longshoremen's register in which shall be included all qualified long-
shoremen eligible, as hereinafter provided, for employment as such in
the port of New York district. On or after the first day of December,
nineteen hundred fifty-three, no person shall act as a longshoreman
within the port of New York district unless at the time he is included
in the longshoremen's register, and no person shall employ another to
work as a longshoreman within the port of New York district unless at
the time such other person is included in the longshoremen's register.
2. Any person applying for inclusion in the longshoremen's register
shall file at such place and in such manner as the commission shall
designate a written statement, signed and verified by such person,
setting forth his full name, residence address, social security number,
and such further facts and evidence as the commission may prescribe to
establish the identity of such person and his criminal record, if any.
3. The commission may in its discretion deny application for inclusion
in the longshoremen's register by a person
(a) Who has been convicted by a court of the United States or any
state or territory thereof, without subsequent pardon, of treason,
murder, manslaughter or of any felony or high misdemeanor or of any of
the misdemeanors or offenses described in paragraph (b) of subdivision
three of section three thousand six of this part or of attempt or
conspiracy to commit any of such crimes;
A. 6754 146
(b) Who knowingly or willingly advocates the desirability of over-
throwing or destroying the government of the United States by force or
violence or who shall be a member of a group which advocates such desir-
ability knowing the purposes of such group include such advocacy;
(c) Whose presence at the piers or other waterfront terminals in the
port of New York district is found by the commission on the basis of the
facts and evidence before it, to constitute a danger to the public peace
or safety.
4. Unless the commission shall determine to exclude the applicant from
the longshoremen's register on a ground set forth in subdivision three
of this section it shall include such person in the longshoremen's
register. The commission may permit temporary registration of any appli-
cant under the provisions of this section pending final action on an
application made for such registration. Any such temporary registration
shall be valid for a period not in excess of thirty days.
5. The commission shall have power to reprimand any longshoreman
registered under this section or to remove him from the longshoremen's
register for such period of time as it deems in the public interest for
any of any following offenses:
(a) Conviction of a crime or other cause which would permit disquali-
fication of such person from inclusion in the longshoremen's register
upon original application;
(b) Fraud, deceit or misrepresentation in securing inclusion in the
longshoremen's register;
(c) Transfer or surrender of possession to any person either temporar-
ily or permanently of any card or other means of identification issued
by the commission as evidence of inclusion in the longshoremen's regis-
ter, without satisfactory explanation;
(d) False impersonation of another longshoreman registered under this
article or of another person licensed under this compact;
(e) Wilful commission of or wilful attempt to commit at or on a water-
front terminal or adjacent highway any act of physical injury to any
other person or of wilful damage to or misappropriation of any other
person's property, unless justified or excused by law; and
(f) Any other offense described in subdivisions (c) to (f) inclusive
of subdivision seven of section three thousand six of this part.
6. The commission shall have the right to recover possession of any
card or other means of identification issued as evidence of inclusion in
the longshoremen's register in the event that the holder thereof has
been removed from the longshoremen's register.
7. Nothing contained in this article shall be construed to limit in
any way any rights of labor reserved by section three thousand sixteen
of this part.
§ 3010. Regularization of longshoremen's employment. 1. On or after
the first day of December, nineteen hundred fifty-four, the commission
shall, at regular intervals, remove from the longshoremen's register any
person who shall have been registered for at least nine months and who
shall have failed during the preceding six calendar months either to
have worked as a longshoreman in the port of New York district or to
have applied for employment as a longshoreman at an employment informa-
tion center established under section three thousand thirteen of this
part for such minimum number of days as shall have been established by
the commission pursuant to subdivision two of this section.
2. On or before the first day of June, nineteen hundred fifty-four and
on or before each succeeding first day of June or December, the commis-
sion shall, for the purposes of subdivision one of this section, estab-
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lish for the six-month period beginning on each such date a minimum
number of days and the distribution of such days during such period.
3. In establishing any such minimum number of days or period, the
commission shall observe the following standards:
(a) To encourage as far as practicable the regularization of the
employment of longshoremen;
(b) To bring the number of eligible longshoremen more closely into
balance with the demand for longshoremen's services within the port of
New York district without reducing the number of eligible longshoremen
below that necessary to meet the requirements of longshoremen in the
port of New York district;
(c) To eliminate oppressive and evil hiring practices affecting long-
shoremen and waterborne commerce in the port of New York district;
(d) To eliminate unlawful practices injurious to waterfront labor;
and
(e) To establish hiring practices and conditions which will permit the
termination of governmental regulation and intervention at the earliest
opportunity.
4. A longshoreman who has been removed from the longshoremen's regis-
ter pursuant to this section may seek reinstatement upon fulfilling the
same requirements as for initial inclusion in the longshoremen's regis-
ter, but not before the expiration of one year from the date of removal,
except that immediate reinstatement shall be made upon proper showing
that the registrant's failure to work or apply for work the minimum
number of days above described was caused by the fact that the regis-
trant was engaged in the military service of the United States or was
incapacitated by ill health, physical injury, or other good cause.
5. Notwithstanding any other provision of this section, the commission
shall at any time have the power to register longshoremen on a temporary
basis to meet special or emergency needs.
§ 3011. Port watchmen. 1. On or after the first day of December, nine-
teen hundred fifty-three, no person shall act as a port watchman within
the port of New York district without first having obtained a license
from the commission, and no person shall employ a port watchman who is
not so licensed.
2. A license to act as a port watchman shall be issued only upon writ-
ten application, duly verified, which shall state the following:
(a) The full name, residence, business address (if any), place and
date of birth and social security number of the applicant;
(b) The present and previous occupations of the applicant, including
the places where he was employed and the names of his employers;
(c) The citizenship of the applicant and, if he is a naturalized citi-
zen of the United States, the court and date of his naturalization; and
(d) Such further facts and evidence as may be required by the commis-
sion to ascertain the character, integrity and identity of the appli-
cant.
3. No such license shall be granted
(a) Unless the commission shall be satisfied that the applicant
possesses good character and integrity;
(b) If the applicant has, without subsequent pardon, been convicted by
a court of the United States or of any state or territory thereof of the
commission of, or the attempt or conspiracy to commit, treason, murder,
manslaughter or any felony or high misdemeanor or any of the misdemea-
nors or offenses described in paragraph (b) of subdivision three of
section three thousand six of this part;
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(c) Unless the applicant shall meet such reasonable standards of phys-
ical and mental fitness for the discharge of his duties as may from time
to time be established by the commission;
(d) If the applicant shall be a member of any labor organization which
represents longshoremen or pier superintendents or hiring agents; but
nothing in this section shall be deemed to prohibit port watchmen from
being represented by a labor organization or organizations which do not
also represent longshoremen or pier superintendents or hiring agents.
The American Federation of Labor, the Congress of Industrial Organiza-
tions and any other similar federation, congress or other organization
of national or international occupational or industrial labor organiza-
tions shall not be considered an organization which represents long-
shoremen or pier superintendents or hiring agents within the meaning of
this article although one of the federated or constituent labor organ-
izations thereof may represent longshoremen or pier superintendents or
hiring agents;
(e) If the applicant knowingly or wilfully advocates the desirability
of overthrowing or destroying the government of the United States by
force or violence or shall be a member of a group which advocates such
desirability, knowing the purposes of such group include such advocacy.
4. When the application shall have been examined and such further
inquiry and investigation made as the commission shall deem proper and
when the commission shall be satisfied therefrom that the applicant
possesses the qualifications and requirements prescribed by this section
and regulations issued pursuant thereto, the commission shall issue and
deliver a license to the applicant. The commission may issue a tempo-
rary permit to any applicant for a license under the provisions of this
section pending final action on an application made for such a license.
Any such permit shall be valid for a period not in excess of thirty
days.
5. A license granted pursuant to this section shall continue for a
term of three years. A license may be renewed by the commission for
successive three-year periods upon fulfilling the same requirements as
are set forth in this section for an original application.
6. Any license issued pursuant to this section may be revoked or
suspended for such period as the commission deems in the public interest
or the licensee thereunder may be reprimanded for any of the following
offenses:
(a) Conviction of a crime or other cause which would permit or require
his disqualification from receiving a license upon original application;
(b) Fraud, deceit or misrepresentation in securing the license; and
(c) Any other offense described in subdivisions (c) to (i), inclusive,
of subdivision seven of section three thousand six of this part.
§ 3012. Hearings, determinations and review. 1. The commission shall
not deny any application for a license or registration without giving
the applicant or prospective licensee reasonable prior notice and an
opportunity to be heard.
2. Any application for a license or for inclusion in the
longshoremen's register, and any license issued or registration made,
may be denied, revoked, cancelled, suspended as the case may be, only in
the manner prescribed in this section.
3. The commission may on its own initiative or on complaint of any
person, including any public official or agency, institute proceedings
to revoke, cancel or suspend any license or registration after a hearing
at which the licensee or registrant and any person making such complaint
shall be given an opportunity to be heard, provided that any order of
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the commission revoking, cancelling or suspending any license or regis-
tration shall not become effective until fifteen days subsequent to the
serving of notice thereof upon the licensee or registrant unless in the
opinion of the commission the continuance of the license or registration
for such period would be inimicable to the public peace or safety. Such
hearings shall be held in such manner and upon such notice as may be
prescribed by the rules of the commission, but such notice shall be of
not less than ten days and shall state the nature of the complaint.
4. Pending the determination of such hearing pursuant to subdivision
three of this section the commission may temporarily suspend a license
or registration if in the opinion of the commission the continuance of
the license or registration for such period is inimicable to the public
peace or safety.
5. The commission, or such member, officer, employee or agent of the
commission as may be designated by the commission for such purpose,
shall have the power to issue subpoenas to compel the attendance of
witnesses and the giving of testimony or production of other evidence
and to administer oaths in connection with any such hearing. It shall be
the duty of the commission or of any such member, officer, employee or
agent of the commission designated by the commission for such purpose to
issue subpoenas at the request of and upon behalf of the licensee,
registrant or applicant. The commission or such person conducting the
hearing shall not be bound by common law or statutory rules of evidence
or by technical or formal rules of procedure in the conduct of such
hearing.
6. Upon the conclusion of the hearing, the commission shall take such
action upon such findings and determination as it deems proper and shall
execute an order carrying such findings into effect. The action in the
case of an application for a license or registration shall be the grant-
ing or denial thereof. The action in the case of a licensee shall be
revocation of the license or suspension thereof for a fixed period or
reprimand or a dismissal of the charges. The action in the case of a
registered longshoreman shall be dismissal of the charges, reprimand or
removal from the longshoremen's register for a fixed period or perma-
nently.
7. The action of the commission in denying any application for a
license or in refusing to include any person in the longshoremen's
register under this compact or in suspending or revoking such license or
removing any person from the longshoremen's register or in reprimanding
a licensee or registrant shall be subject to judicial review by a
proceeding instituted in either state at the instance of the applicant,
licensee or registrant in the manner provided by the law of such state
for review of the final decision or action of administrative agencies of
such state, provided, however, that notwithstanding any other provision
of law the court shall have power to stay for not more than thirty days
an order of the commission suspending or revoking a license or removing
a longshoreman from the longshoremen's register.
§ 3013. Employment information centers. 1. The states of New York and
New Jersey hereby find and declare that the method of employment of
longshoremen and port watchmen in the port of New York district, common-
ly known as the "shape-up", has resulted in vicious and notorious
abuses, of which such employees have been the principal victims. There
is compelling evidence that the "shape-up" has permitted and encouraged
extortion from employees as the price of securing or retaining employ-
ment and has subjected such employees to threats of violence, unwilling
joinder in unauthorized labor disturbances and criminal activities on
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the waterfront. The "shape-up" has thus resulted in a loss of fundamen-
tal rights and liberties of labor, has impaired the economic stability
of the port of New York district and weakened law enforcement therein.
It is the sense of the legislatures of the states of New York and New
Jersey that these practices and conditions must be eliminated to prevent
grave injury to the welfare of waterfront laborers and of the people at
large and that the elimination of the "shape-up" and the establishment
of a system of employment information centers are necessary to a
solution of these public problems.
2. The commission shall establish and maintain one or more employment
information centers in each state within the port of New York district
at such locations as it may determine. No person shall, directly or
indirectly, hire any person for work as a longshoreman or port watchman
within the port of New York district, except through such particular
employment information center or centers as may be prescribed by the
commission. No person shall accept any employment as a longshoreman or
port watchman within the port of New York district, except through such
an employment information center. At each such employment information
center the commission shall keep and exhibit the longshoremen's register
and any other records it shall determine to the end that longshoremen
and port watchmen shall have the maximum information as to available
employment as such at any time within the port of New York district and
to the end that employers shall have an adequate opportunity to fill
their requirements of registered longshoremen and port watchmen at all
times.
3. Every employer of longshoremen or port watchmen within the port of
New York district shall furnish such information as may be required by
the rules and regulations prescribed by the commission with regard to
the name of each person hired as a longshoreman or port watchman, the
time and place of hiring, the time, place and hours of work, and the
compensation therefor.
4. All wage payments to longshoremen or port watchmen for work as such
shall be made by check or cash evidenced by a written voucher receipted
by the person to whom such cash is paid. The commission may arrange for
the provision of facilities for cashing such checks.
§ 3014. Expenses of administration. 1. By concurrent legislation
enacted by their respective legislatures, the two states may provide
from time to time for meeting the commission's expenses. Until other
provision shall be made, such expense shall be met as authorized in this
section.
2. The commission shall annually adopt a budget of its expenses for
each year. Each budget shall be submitted to the governors of the two
states and shall take effect as submitted provided that either governor
may within thirty days disapprove or reduce any item or items, and the
budget shall be adjusted accordingly.
3. After taking into account such funds as may be available to it from
reserves, federal grants or otherwise, the balance of the commission's
budgeted expenses shall be assessed upon employers of persons registered
or licensed under this compact. Each such employer shall pay to the
commission as assessment computed upon the gross payroll payments made
by such employer to longshoremen, pier superintendents, hiring agents
and port watchmen for work or labor performed within the port of New
York district, at a rate, not in excess of two per cent, computed by the
commission in the following manner; the commission shall annually esti-
mate the gross payroll payments to be made by employers subject to
assessment and shall compute a rate thereon which will yield revenues
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sufficient to finance the commission's budget for each year. Such budg-
et may include a reasonable amount for a reserve but such amount shall
not exceed ten per cent of the total of all other items of expenditure
contained therein. Such reserve shall be used for the stabilization of
annual assessments, the payment of operating deficits and for the repay-
ment of advances made by the two states.
4. The amount required to balance the commission's budget, in excess
of the estimated yield of the maximum assessment, shall be certified by
the commission, with the approval of the respective governors, to the
legislatures of the two states, in proportion to the gross annual wage
payments made to longshoremen for work in each state within the port of
New York district. The legislatures shall annually appropriate to the
commission the amount so certified.
5. The commission may provide by regulation for the collection and
auditing of assessments. Such assessments hereunder shall be payable
pursuant to such provisions for administration, collection and enforce-
ment as the states may provide by concurrent legislation. In addition
to any other sanction provided by law, the commission may revoke or
suspend any license held by any person under this compact, or his privi-
lege of employing persons registered or licensed hereunder, for non-pay-
ment of any assessment when due.
6. The assessment hereunder shall be in lieu of any other charge for
the issuance of licenses to stevedores, pier superintendents, hiring
agents and pier watchmen or for the registration of longshoremen or the
use of an employment information center. The commission shall establish
reasonable procedures for the consideration of protests by affected
employers concerning the estimates and computation of the rate of
assessment.
§ 3015. General violations; prosecutions; penalties. 1. The failure
of any witness, when duly subpoenaed to attend, give testimony or
produce other evidence, whether or not at a hearing, shall be punishable
by the superior court in New Jersey and the supreme court in New York in
the same manner as said failure is punishable by such court in a case
therein pending.
2. Any person who, having been sworn or affirmed as a witness in any
such hearing, shall wilfully give false testimony or who shall wilfully
make or file any false or fraudulent report or statement required by
this compact to be made or filed under oath, shall be guilty of a misde-
meanor, punishable by a fine of not more than one thousand dollars or
imprisonment for not more than one year or both.
3. Any person who violates or attempts or conspires to violate any
other provision of this compact shall be punishable as may be provided
by the two states by action of the legislature of either state concurred
in by the legislature of the other.
4. Any person who interferes with or impedes the orderly registration
of longshoremen pursuant to this compact or who conspires to or attempts
to interfere with or impede such registration shall be punishable as may
be provided by the two states by action of the legislature of either
state concurred in by the legislature of the other.
5. Any person who directly or indirectly inflicts or threatens to
inflict any injury, damage, harm or loss or in any other manner prac-
tices intimidation upon or against any person in order to induce or
compel such person or any other person to refrain from registering
pursuant to this compact shall be punishable as may be provided by the
two states by action of the legislature of either state concurred in by
the legislature of the other.
A. 6754 152
6. In any prosecution under this compact, it shall be sufficient to
prove only a single act (or a single holding out or attempt) prohibited
by law, without having to prove a general course of conduct, in order to
prove a violation.
§ 3016. Collective bargaining safeguarded. 1. This compact is not
designed and shall not be construed to limit in any way any rights
granted or derived from any other statute or any rule of law for employ-
ees to organize in labor organizations, to bargain collectively and to
act in any other way individually, collectively, and through labor
organizations or other representatives of their own choosing. Without
limiting the generality of the foregoing, nothing contained in this
compact shall be construed to limit in any way the right of employees to
strike.
2. This compact is not designed and shall not be construed to limit in
any way any rights of longshoremen, hiring agents, pier superintendents
or port watchmen or their employers to bargain collectively and agree
upon any method for the selection of such employees by way of seniority,
experience, regular gangs or otherwise, provided that such employees
shall be licensed or registered hereunder and such longshoremen and port
watchmen shall be hired only through the employment information centers
established hereunder and that all other provisions of this compact be
observed.
§ 3017. Amendments; construction; short title. 1. Amendments and
supplements to this compact to implement the purposes thereof may be
adopted by the action of the legislature of either state concurred in by
the legislature of the other.
2. If any part or provision of this compact or the application thereof
to any person or circumstances be adjudged invalid by any court of
competent jurisdiction, such judgment shall be confined in its operation
to the part, provision or application directly involved in the contro-
versy in which such judgment shall have been rendered and shall not
affect or impair the validity of the remainder of this compact or the
application thereof to other persons or circumstances and the two states
hereby declare that they would have entered into this compact or the
remainder thereof had the invalidity of such provision or application
thereof been apparent.
3. In accordance with the ordinary rules for construction of inter-
state compacts this compact shall be liberally construed to eliminate
the evils described therein and to effectuate the purposes thereof.
PART II
WATERFRONT COMMISSION COMPACT
3101. Waterfront commission compact.
3102. Expenses of administration.
3103. Reimbursement.
3104. Penalties.
3105. Federal funds.
3106. Supplementary definitions.
3107. Additional powers of the commission.
3108. Regularization of longshoremen's employment.
3109. Additional violations.
3110. Hearings.
3111. Denial of applications.
3112. Revocation of licenses and registrations.
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3113. Removal of port watchmen's ineligibility.
3114. Petition for order to remove an ineligibility.
3115. Denial of stevedore applications.
3116. Checkers.
3117. Supplementary violations.
3118. Suspension or acceptance of applications for inclusion in
longshoremen's register; exceptions.
3119. Temporary suspension of permits, licenses and registra-
tions.
3120. Continuance of port watchmen's licenses.
3121. Regularization of port watchmen's employment.
3122. Duration of stevedore's license.
3123. Implementation of telecommunications hiring system for
longshoremen and checkers and registration of telecommu-
nications system controller.
§ 3101. Waterfront commission compact. This compact shall be known
and may be cited as the "Waterfront Commission Compact."
§ 3102. Expenses of administration. 1. Every person subject to the
payment of any assessment under the provisions of subdivision three of
section three thousand fourteen of this article shall file on or before
the fifteenth day of the first month of each calendar quarter-year a
separate return, together with the payment of the assessment due, for
the preceding calendar quarter-year during which any payroll payments
were made to longshoremen, pier superintendents, hiring agents or port
watchmen for work performed as such within the district. Returns cover-
ing the amount of assessment payable shall be filed with the commission
on forms to be furnished for such purpose and shall contain such data,
information or matter as the commission may require to be included ther-
ein. The commission may grant a reasonable extension of time for filing
returns, or for the payment of assessment, whenever good cause exists.
Every return shall have annexed thereto a certification to the effect
that the statements contained therein are true.
2. Every person subject to the payment of assessment hereunder shall
keep an accurate record of his employment of longshoremen, pier super-
intendents, hiring agents or port watchmen, which shall show the amount
of compensation paid and such other information as the commission may
require. Such records shall be preserved for a period of three years
and be open for inspection at reasonable times. The commission may
consent to the destruction of any such records at any time after said
period or may require that they be kept longer, but not in excess of six
years.
3. (a) The commission shall audit and determine the amount of assess-
ment due from the return filed and such other information as is avail-
able to it. Whenever a deficiency in payment of the assessment is
determined the commission shall give notice of any such determination to
the person liable therefor. Such determination shall finally and
conclusively fix the amount due, unless the person against whom it is
assessed shall, within thirty days after the giving of notice of such
determination, apply in writing to the commission for a hearing, or
unless the commission on its own motion shall reduce the same. After
such hearing, the commission shall give notice of its decision to the
person liable therefor. A determination of the commission under this
section shall be subject to judicial review, if application for such
review is made within thirty days after the giving of notice of such
decision. Any determination under this section shall be made within
A. 6754 154
five years from the time the return was filed and if no return was filed
such determination may be made at any time.
(b) Any notice authorized or required under this section may be given
by mailing the same to the person for whom it is intended at the last
address given by him to the commission, or in the last return filed by
him with the commission under this section, or, if no return has been
filed then to such address as may be obtainable. The mailing of such
notice shall be presumptive evidence of the receipt of same by the
person to whom addressed. Any period of time, which is determined
according to the provision of this section, for the giving of notice
shall commence to run from the date of mailing of such notice.
4. Whenever any person shall fail to pay, within the time limited
herein, any assessment which he is required to pay to the commission
under the provisions of this section the commission may enforce payment
of such fee by civil action for the amount of such assessment with
interest and penalties.
5. The employment by a nonresident of a longshoreman, or a licensed
pier superintendent, hiring agent or port watchman in either state or
the designation by a nonresident of a longshoreman, pier superintendent,
hiring agent or port watchman to perform work in such state shall be
deemed equivalent to an appointment by such nonresident of the secretary
of state of such state to be his true and lawful attorney upon whom may
be served the process in any action or proceeding against him growing
out of any liability for assessments, penalties or interest, and a
consent that any such process against him which is so served shall be of
the same legal force and validity as if served on him personally within
such state and within the territorial jurisdiction of the court from
which the process issues. Service of process within either state shall
be made by either (1) personally delivering to and leaving with the
secretary of state or a deputy secretary of state of such state dupli-
cate copies thereof at the office of the department of state in the
capitol city of such state, in which event such secretary of state shall
forthwith send by registered mail one of such copies to the person at
the last address designated by him to the commission for any purpose
under this section or in the last return filed by him under this section
with the commission or as shown on the records of the commission, or if
no return has been filed, at his last known office address within or
without such state, or (2) personally delivering to and leaving with the
secretary of state or a deputy secretary of state of such state a copy
thereof at the office of the department of state in the capitol city of
such state and by delivering a copy thereof to the person, personally
without such state. Proof of such personal service without such state
shall be filed with the clerk of the court in which the process is pend-
ing within thirty days after such service and such service shall be
complete ten days after proof thereof is filed.
6. Whenever the commission shall determine that any moneys received as
assessments were paid in error, it may cause the same to be refunded,
provided an application therefor is filed with the commission within two
years from the time the erroneous payment was made.
7. In addition to any other powers authorized hereunder, the commis-
sion shall have power to make reasonable rules and regulations to effec-
tuate the purposes of this section.
8. When any person shall wilfully fail to pay any assessment due here-
under he shall be assessed interest at a rate of one per cent per month
on the amount due and unpaid and penalties of five per cent of the
amount due for each thirty days or part thereof that the assessment
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remains unpaid. The commission, may, for good cause shown, abate all or
part of such penalty.
9. Any person who shall wilfully furnish false or fraudulent informa-
tion or shall wilfully fail to furnish pertinent information, as
required, with respect to the amount of assessment due, shall be guilty
of a misdemeanor, punishable by a fine of not more than one thousand
dollars, or imprisonment for not more than one year, or both.
10. All funds of the commission shall be deposited with such responsi-
ble banks or trust companies as may be designated by the commission.
The commission may require that all such deposits be secured by obli-
gations of the United States or of the states of New York or New Jersey
of a market value equal at all times to the amount of the deposits, and
all banks and trust companies are authorized to give such security for
such deposits. The moneys so deposited shall be withdrawn only by check
signed by both members of the commission or by such other officers or
employees of the commission as it may from time to time designate.
11. The accounts, books and records of the commission, including its
receipts, disbursements, contracts, leases, investments and any other
matters relating to its financial standing shall be examined and audited
annually by independent auditors to be retained for such purpose by the
commission.
§ 3103. Reimbursement. The commission shall reimburse each state for
any funds advanced to the commission exclusive of sums appropriated
pursuant to subdivision four of section three thousand fourteen of this
article.
§ 3104. Penalties. Any person who shall violate any of the provisions
of the compact or of section thirty-one hundred two of this part for
which no other penalty is prescribed shall be guilty of a misdemeanor,
punishable by a fine of not more than five hundred dollars or by impri-
sonment for not more than one year, or both.
§ 3105. Federal funds. 1. The waterfront commission of New York
harbor is hereby designated on its own behalf or as agent of the state
of New York and the state of New Jersey, as provided by the act of the
congress of the United States, effective June sixth, nineteen hundred
thirty-three, entitled "An act to provide for the establishment of a
national employment system and for cooperating with the states in the
promotion of such system and for other purposes" as amended, for the
purpose of obtaining such benefits of such act of congress as are neces-
sary or appropriate to the establishment and operation of employment
information centers authorized by section three thousand thirteen of
this article.
2. The commission shall have all powers necessary to cooperate with
appropriate officers or agencies of either state or the United States,
to take such steps, to formulate such plans, and to execute such
projects (including but not limited to the establishment and operation
of employment information centers) as may be necessary to obtain such
benefits for the operations of the commission in accomplishing the
purposes of this article.
3. The officer or agency heretofore designated by each of the two
states pursuant to said act of June sixth, nineteen hundred thirty-
three, as amended, is authorized and empowered, upon the request of the
commission and subject to its direction, to exercise the powers and
duties conferred upon the commission by the provisions of this section.
§ 3106. Supplementary definitions. As used in the compact established
by part I of this article:
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1. "Stevedore" shall also include (a) contractors engaged for compen-
sation pursuant to a contract or arrangement with the United States, any
state or territory thereof, or any department, division, board, commis-
sion or authority of one or more of the foregoing, in moving freight
carried or consigned for carriage between any point in the port of New
York district and a point outside said district on vessels of such a
public agency berthed at piers, on piers at which such vessels are
berthed or at other waterfront terminals, or
(b) contractors (not including employees) engaged for compensation
pursuant to a contract or arrangement with any person to perform labor
or services incidental to the movement of waterborne freight on vessels
berthed at piers, on piers or at other waterfront terminals, including,
but not limited to, cargo storage, cargo repairing, coopering, general
maintenance, mechanical and miscellaneous work, horse and cattle
fitting, grain ceiling, and marine carpentry, or
(c) contractors (not including employees) engaged for compensation
pursuant to a contract or arrangement with any other person to perform
labor or services involving, or incidental to, the movement of freight
into or out of containers (which have been or which will be carried by a
carrier of freight by water) on vessels berthed at piers, on piers or at
other waterfront terminals.
2. "Waterborne freight" shall also include freight described in para-
graphs (a) and (c) of subdivision one of this section and in subdivision
ten of this section and ships' stores, baggage and mail carried by or
consigned for carriage by carriers of freight by water.
3. "Court of the United States" shall mean all courts enumerated in
section four hundred fifty-one of title twenty-eight of the United
States code and the courts-martial of the armed forces of the United
States.
4. "Witness" shall mean any person whose testimony is desired in any
investigation, interview or other proceeding conducted by the commission
pursuant to the provisions of this article.
5. "Checker" shall mean a longshoreman who is employed to engage in
direct and immediate checking of waterborne freight or of the custodial
accounting therefor or in the recording or tabulation of the hours
worked at piers or other waterfront terminals by natural persons
employed by carriers of freight by water or stevedores.
6. "Longshoreman" shall also include a natural person, other than a
hiring agent, who is employed for work at a pier or other waterfront
terminal:
(a) either by a carrier of freight by water or by a stevedore phys-
ically to perform labor or services incidental to the movement of water-
borne freight on vessels berthed at piers, on piers or at other water-
front terminals, including, but not limited to, cargo repairmen,
coopers, general maintenance men, mechanical and miscellaneous workers,
horse and cattle fitters, grain ceilers and marine carpenters, or
(b) by any person physically to move waterborne freight to or from a
barge, lighter or railroad car for transfer to or from a vessel of a
carrier of freight by water which is, shall be, or shall have been
berthed at the same pier or other waterfront terminal, or
(c) by any person to perform labor or services involving, or inci-
dental to, the movement of freight at a waterfront terminal as defined
in subdivision ten of this section.
7. "Compact" shall also include any amendments or supplements to the
waterfront commission compact to implement the purposes thereof adopted
by the action of the legislature of either the state of New York or the
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state of New Jersey concurred in by the legislature of the other and as
established by part I of this article.
8. The term "select any longshoreman for employment" in the definition
of a hiring agent in this act shall include selection of a person for
the commencement or continuation of employment as a longshoreman, or the
denial or termination of employment as a longshoreman.
9. "Hiring agent" shall also include any natural person, who on behalf
of any other person shall select any longshoreman for employment.
10. "Other waterfront terminal" shall also include any warehouse,
depot or other terminal (other than a pier), whether enclosed or open,
which is located in a marine terminal in the port of New York district
and any part of which is used by any person to perform labor or services
involving, or incidental to, the movement of waterborne freight or
freight.
As used in this section, "marine terminal" means an area which
includes piers, which is used primarily for the moving, warehousing,
distributing or packing of waterborne freight or freight to or from such
piers, and which, inclusive of such piers, is under common ownership or
control; "freight" means freight which has been, or will be, carried by
or consigned for carriage by a carrier of freight by water; and
"container" means any receptacle, box, carton or crate which is specif-
ically designed and constructed so that it may be repeatedly used for
the carriage of freight by a carrier of freight by water.
Whenever, as a result of legislative amendments to this article or of
a ruling by the commission, registration as a longshoreman is required
for any person to continue in his employment, such person shall be
registered as a longshoreman without regard to the provisions of section
thirty-one hundred eighteen of this part, provided, however, that such
person satisfies all the other requirements of this article for regis-
tration as a longshoreman.
§ 3107. Additional powers of the commission. In addition to the
powers and duties elsewhere described in this part, the commission shall
have the following powers:
1. To issue temporary permits and permit temporary registrations under
such terms and conditions as the commission may prescribe which shall be
valid for a period to be fixed by the commission not in excess of six
months.
2. To require any applicant for a license or registration or any
prospective licensee to furnish such facts and evidence as the commis-
sion may deem appropriate to enable it to ascertain whether the license
or registration should be granted.
3. In any case in which the commission has the power to revoke, cancel
or suspend any stevedore license the commission shall also have the
power to impose as an alternative to such revocation, cancellation or
suspension, a penalty, which the licensee may elect to pay to the
commission in lieu of the revocation, cancellation or suspension. The
maximum penalty shall be five thousand dollars for each separate
offense. The commission may, for good cause shown, abate all or part of
such penalty.
4. To designate any officer, agent or employee of the commission to be
an investigator who shall be vested with all the powers of a peace or
police officer of the state of New York in that state, and of the state
of New Jersey in that state.
5. To confer immunity, in the following manner: In any investigation,
interview or other proceeding conducted under oath by the commission or
any duly authorized officer, employee or agent thereof, if a person
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refuses to answer a question or produce evidence of any other kind on
the ground that he may be incriminated thereby, and, notwithstanding
such refusal, an order is made upon twenty-four hours prior written
notice to the appropriate attorney general of the state of New York or
the state of New Jersey, and to the appropriate district attorney or
prosecutor having an official interest therein, by the unanimous vote of
both members of the commission or their designees appointed pursuant to
the provisions of subdivision three of section three thousand four of
this article, that such person answer the question or produce the
evidence, such person shall comply with the order. If such person
complies with the order, and if, but for this subdivision, he would have
been privileged to withhold the answer given or the evidence produced by
him, then immunity shall be conferred upon him, as provided for herein.
"Immunity" as used in this subdivision means that such person shall
not be prosecuted or subjected to any penalty or forfeiture for or on
account of any transaction, matter or thing concerning which, in accord-
ance with the order by the unanimous vote of both members of the commis-
sion or their designees appointed pursuant to the provisions of subdivi-
sion three of section three thousand four of this article, he gave
answer or produced evidence, and that no such answer given or evidence
produced shall be received against him upon any criminal proceeding.
But he may nevertheless be prosecuted or subjected to penalty or forfei-
ture for any perjury or contempt committed in answering, or failing to
answer, or in producing or failing to produce evidence, in accordance
with the order, and any such answer given or evidence produced shall be
admissible against him upon any criminal proceeding concerning such
perjury or contempt.
Immunity shall not be conferred upon any person except in accordance
with the provisions of this subdivision. If, after compliance with the
provisions of this subdivision, a person is ordered to answer a question
or produce evidence of any other kind and complies with such order, and
it is thereafter determined that the appropriate attorney general or
district attorney or prosecutor having an official interest therein was
not notified, such failure or neglect shall not deprive such person of
any immunity otherwise properly conferred upon him.
6. To require any applicant for registration as a longshoreman, any
applicant for registration as a checker or any applicant for registra-
tion as a telecommunications system controller and any person who is
sponsored for a license as a pier superintendent or hiring agent, any
person who is an individual owner of an applicant stevedore or any
persons who are individual partners of an applicant stevedore, or any
officers, directors or stockholders owning five percent or more of any
of the stock of an applicant corporate stevedore or any applicant for a
license as a port watchman or any other category of applicant for regis-
tration or licensing by law within the commission's jurisdiction to be
fingerprinted by the commission.
7. To require any applicant for registration as a longshoreman, any
applicant for registration as a checker or any applicant for registra-
tion as a telecommunications system controller and any person who is
sponsored for a license as a pier superintendent or hiring agent, any
person who is an individual owner of an applicant stevedore or any
persons who are individual partners of an applicant stevedore, or any
officers, directors or stockholders owning five percent or more of any
of the stock of an applicant corporate stevedore or any applicant for a
license as a port watchman or any other category of applicant for regis-
tration or licensing by law within the commission's jurisdiction who
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has: previously applied and had an application denied upon submission;
been removed from registration; or, had a license suspended, or revoked
and is reapplying for registration or licensing within the commission's
jurisdiction to be fingerprinted by the commission.
8. To exchange fingerprint data with and receive state criminal histo-
ry record information from the division of criminal justice services, as
defined in subdivision one of section three thousand thirty-five of the
education law of the state of New York, and federal criminal history
record information from the federal bureau of investigation for use in
making the determinations required by this part.
9. Notwithstanding any other provision of law to the contrary, to
require any applicant for employment by the commission or person
described in subdivision seven of this section to be fingerprinted and
to exchange fingerprint data with and receive state criminal history
record information from the division of criminal justice services, as
defined in subdivision one of section three thousand thirty-five of the
education law of the state of New York, and federal criminal history
information from the federal bureau of investigation for the purposes of
this subdivision and subdivisions six, seven and eight of this section.
§ 3108. Regularization of longshoremen's employment. 1. Notwithstand-
ing any other provisions of section three thousand ten of this article,
the commission shall have the power to remove from the longshoremen's
register any person (including those persons registered as longshoremen
for less than nine months) who shall have failed to have worked as a
longshoreman in the port of New York district for such minimum number of
days during a period of time as shall have been established by the
commission. In administering this section, the commission, in its
discretion, may count applications for employment as a longshoreman at
an employment information center established under section three thou-
sand thirteen of this article as constituting actual work as a long-
shoreman, provided, however, that the commission shall count as actual
work the compensation received by any longshoreman pursuant to the guar-
anteed wage provisions of any collective bargaining agreement relating
to longshoremen. Prior to the commencement of any period of time estab-
lished by the commission pursuant to this section, the commission shall
establish for such period the minimum number of days of work required
and the distribution of such days during such period and shall also
determine whether or not application for employment as a longshoreman
shall be counted as constituting actual work as a longshoreman. The
commission may classify longshoremen according to length of service as a
longshoreman and such other criteria as may be reasonable and necessary
to carry out the provisions of this part. The commission shall have the
power to vary the requirements of this section with respect to their
application to the various classifications of longshoremen. In adminis-
tering this section, the commission shall observe the standards set
forth in section thirty-one hundred eighteen of this part. Nothing in
this section shall be construed to modify, limit or restrict in any way
any of the rights protected by article XV of the compact established by
part I of this article.
§ 3109. Additional violations. Any person who, having been duly sworn
or affirmed as a witness in any investigation, interview or other
proceeding conducted by the commission pursuant to the provisions of
this part, shall wilfully give false testimony shall be guilty of a
misdemeanor punishable by a fine of not more than one thousand dollars
or imprisonment for not more than one year or both.
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§ 3110. Hearings. 1. At hearings conducted by the commission pursuant
to section three thousand twelve of this article, applicants, prospec-
tive licensees, licensees and registrants shall have the right to be
accompanied and represented by counsel.
2. After the conclusion of a hearing but prior to the making of an
order by the commission, a hearing may, upon petition and in the
discretion of the hearing officer, be reopened for the presentation of
additional evidence. Such petition to reopen the hearing shall state in
detail the nature of the additional evidence, together with the reasons
for the failure to submit such evidence prior to the conclusion of the
hearing. The commission may upon its own motion and upon reasonable
notice reopen a hearing for the presentation of additional evidence.
Upon petition, after the making of an order of the commission, rehear-
ing may be granted in the discretion of the commission. Such a petition
for rehearing shall state in detail the grounds upon which the petition
is based and shall separately set forth each error of law and fact
alleged to have been made by the commission in its determination,
together with the facts and arguments in support thereof. Such petition
shall be filed with the commission not later than thirty days after
service of such order, unless the commission for good cause shown shall
otherwise direct.
The commission may upon its own motion grant a rehearing after the
making of an order.
§ 3111. Denial of applications. In addition to the grounds elsewhere
set forth in this article, the commission may deny an application for a
license or registration for any of the following:
1. Conviction by a court of the United States or any state or territo-
ry thereof of coercion;
2. Conviction by any such court, after having been previously
convicted by any such court of any crime or of the offenses hereinafter
set forth, of a misdemeanor or any of the following offenses: assault,
malicious injury to property, malicious mischief, unlawful taking of a
motor vehicle, corruption of employees or possession of lottery or
number slips; or
3. Fraud, deceit or misrepresentation in connection with any applica-
tion or petition submitted to, or any interview, hearing or proceeding
conducted by the commission.
4. Violation of any provision of this part or commission of any
offense thereunder.
5. Refusal on the part of any applicant, or prospective licensee, or
of any member, officer or stockholder required by subdivision two of
section three thousand seven of this article to sign or be identified in
an application for a stevedore license, to answer any material question
or produce any material evidence in connection with his application or
any application made on his behalf for a license or registration pursu-
ant to this part.
6. Association with a person who has been identified by a federal,
state, or local law enforcement agency as a member or associate of an
organized crime group, a terrorist group, or a career offender cartel,
or who is a career offender, under circumstances where such association
creates a reasonable belief that the participation of the applicant in
any activity required to be licensed under this article would be inimi-
cal to the policies of this article. For the purpose of this section,
(a) a terrorist group shall mean a group associated, affiliated or fund-
ed in whole or in part by a terrorist organization designated by the
secretary of state in accordance with section 219 of the immigration and
A. 6754 161
nationality act, as amended from time to time, or any other organization
which assists, funds or engages in acts of terrorism as defined in the
laws of the United States, or of either of the states of New York (such
as subdivision one of section 490.05 of the penal law) or New Jersey;
and (b) a career offender shall mean a person whose behavior is pursued
in an occupational manner or context for the purpose of economic gain
utilizing such methods as are deemed criminal violations against the
public policy of the states of New York and New Jersey, and a career
offender cartel shall mean a number of career offenders acting in
concert, and may include what is commonly referred to as an organized
crime group.
7. Conviction of a racketeering activity or knowing association with a
person who has been convicted of a racketeering activity by a court of
the United States or any state or territory thereof under circumstances
where such association creates a reasonable belief that the partic-
ipation of the applicant in any activity required to be licensed under
this part would be inimical to the policies of this part.
§ 3112. Revocation of licenses and registrations. In addition to the
grounds elsewhere set forth in this part, any license or registration
issued or made pursuant thereto may be revoked or suspended for such
period as the commission deems in the public interest or the licensee or
registrant may be reprimanded, for:
1. Conviction of any crime or offense in relation to gambling, book-
making, pool selling, lotteries or similar crimes or offenses if the
crime or offense was committed at or on a pier or other waterfront
terminal or within five hundred feet thereof; or
2. Wilful commission of, or wilful attempt to commit at or on a water-
front terminal or adjacent highway, any act of physical injury to any
other person or of wilful damage to or misappropriation of any other
person's property, unless justified or excused by law; or
3. Receipt or solicitation of anything of value from any person other
than a licensee's or registrant's employer as consideration for the
selection or retention for employment of such licensee or registrant; or
4. Coercion of a licensee or registrant by threat of discrimination or
violence or economic reprisal, to make purchases from or to utilize the
services of any person; or
5. Refusal to answer any material question or produce any evidence
lawfully required to be answered or produced at any investigation,
interview or other proceeding conducted by the commission pursuant to
the provisions of this article, or, if such refusal is accompanied by a
valid plea of privilege against self-incrimination, refusal to obey an
order to answer such question or produce such evidence made by the
commission pursuant to the provisions of subdivision five of section
thirty-one hundred seven of this part.
6. Association with a person who has been identified by a federal,
state, or local law enforcement agency as a member or associate of an
organized crime group, a terrorist group, or a career offender cartel,
or who is a career offender, under circumstances where such association
creates a reasonable belief that the participation of the applicant in
any activity required to be licensed under this part would be inimical
to the policies of this part. For the purpose of this section, (a) a
terrorist group shall mean a group associated, affiliated or funded in
whole or in part by a terrorist organization designated by the secretary
of state in accordance with section 219 of the immigration and national-
ity act, as amended from time to time, or any other organization which
assists, funds or engages in acts of terrorism as defined in the laws of
A. 6754 162
the United States, or of either of the states of New York (such as
subdivision one of section 490.05 of the penal law) or New Jersey; and
(b) a career offender shall mean a person whose behavior is pursued in
an occupational manner or context for the purpose of economic gain
utilizing such methods as are deemed criminal violations against the
public policy of the states of New York and New Jersey, and a career
offender cartel shall mean a number of career offenders acting in
concert, and may include what is commonly referred to as an organized
crime group.
7. Conviction of a racketeering activity or knowing association with a
person who has been convicted of a racketeering activity by a court of
the United States or any state or territory thereof under circumstances
where such association creates a reasonable belief that the partic-
ipation of the applicant in any activity required to be licensed under
this article would be inimical to the policies of this article.
§ 3113. Removal of port watchmen's ineligibility. Any port watchman
ineligible for a license by reason of the provisions of paragraph (b) of
subdivision three of section three thousand eleven of this article may
petition for and the commission may issue an order removing the ineligi-
bility in the manner provided in paragraph (b) of subdivision three of
section three thousand six of this article.
§ 3114. Petition for order to remove an ineligibility. A petition for
an order to remove an ineligibility under paragraph (b) of subdivision
three of section three thousand six, paragraph (e) of subdivision three
of section three thousand seven, paragraph (b) of subdivision three of
section three thousand six of this article, or paragraph (b) of subdivi-
sion three of section thirty-one hundred sixteen of this part may be
made to the commission before or after the hearing required by section
three thousand twelve of this article.
§ 3115. Denial of stevedore applications. In addition to the grounds
elsewhere set forth in this part the commission shall not grant an
application for a license as stevedore if on or after July first, nine-
teen hundred fifty-six, the applicant has paid, given, caused to have
been paid or given or offered to pay or give to any agent of any carrier
of freight by water any valuable consideration for an improper or unlaw-
ful purpose or, without the knowledge and consent of such carrier, to
induce such agent to procure the employment of the applicant by such
carrier or its agent for the performance of stevedoring services.
§ 3116. Checkers. 1. The commission shall establish within the
longshoremen's register a list of all qualified longshoremen eligible,
as hereinafter provided, for employment as checkers in the port of New
York district. No person shall act as a checker within the port of New
York district unless at the time he is included in the longshoremen's
register as a checker, and no person shall employ another to work as a
checker within the port of New York district unless at the time such
other person is included in the longshoremen's register as a checker.
2. Any person applying for inclusion in the longshoremen's register as
a checker shall file at any such place and in such manner as the commis-
sion shall designate a written statement, signed and verified by such
person, setting forth the following:
(a) The full name, residence, place and date of birth and social secu-
rity number of the applicant;
(b) The present and previous occupations of the applicant, including
the places where he was employed and the names of his employers;
A. 6754 163
(c) Such further facts and evidence as may be required by the commis-
sion to ascertain the character, integrity and identity of the appli-
cant.
3. No person shall be included in the longshoremen's register as a
checker
(a) Unless the commission shall be satisfied that the applicant
possesses good character and integrity;
(b) If the applicant has, without subsequent pardon, been convicted by
a court of the United States or any state or territory thereof, of the
commission of, or the attempt or conspiracy to commit treason, murder,
manslaughter or any felony or high misdemeanor or any of the following
misdemeanors or offenses: illegally using, carrying or possessing a
pistol or other dangerous weapon; making or possessing burglar's instru-
ments; buying or receiving stolen property; unlawful entry of a build-
ing; aiding an escape from prison; unlawfully possessing, possessing
with intent to distribute, sale or distribution of a controlled danger-
ous substance (controlled substance) or, in New Jersey, a controlled
dangerous substance analog (controlled substance analog); petty larceny,
where the evidence shows the property was stolen from a vessel, pier or
other waterfront terminal; and violation of the compact. Any such
applicant ineligible for inclusion in the longshoremen's register as a
checker by reason of any such conviction may submit satisfactory
evidence to the commission that he has for a period of not less than
five years, measured as hereinafter provided, and up to the time of
application, so conducted himself as to warrant inclusion in the
longshoremen's register as a checker, in which event the commission may,
in its discretion, issue an order removing such ineligibility. The afor-
esaid period of five years shall be measured either from the date of
payment of any fine imposed upon such person or the suspension of
sentence or from the date of his unrevoked release from custody by
parole, commutation or termination of his sentence;
(c) If the applicant knowingly or wilfully advocates the desirability
of overthrowing or destroying the government of the United States by
force or violence or shall be a member of a group which advocates such
desirability, knowing the purposes of such group include such advocacy.
4. When the application shall have been examined and such further
inquiry and investigation made as the commission shall deem proper and
when the commission shall be satisfied therefrom that the applicant
possesses the qualifications and requirements prescribed by this
section, the commission shall include the applicant in the
longshoremen's register as a checker. The commission may permit tempo-
rary registration as a checker to any applicant under this section pend-
ing final action on an application made for such registration, under
such terms and conditions as the commission may prescribe, which shall
be valid for a period to be fixed by the commission, not in excess of
six months.
5. The commission shall have power to reprimand any checker registered
under this section or to remove him from the longshoremen's register as
a checker for such period of time as it deems in the public interest for
any of the following offenses:
(a) Conviction of a crime or other cause which would permit disquali-
fication of such person from inclusion in the longshoremen's register as
a checker upon original application;
(b) Fraud, deceit or misrepresentation in securing inclusion in the
longshoremen's register as a checker or in the conduct of the registered
activity;
A. 6754 164
(c) Violation of any of the provisions of the compact established by
part I of this article;
(d) Conviction of a crime involving unlawfully possessing, possession
with intent to distribute, sale or distribution of a controlled danger-
ous substance (controlled substance) or, in New Jersey, a controlled
dangerous substance analog (controlled substance analog);
(e) Inducing or otherwise aiding or abetting any person to violate the
terms of the compact established by part I of this article;
(f) Paying, giving, causing to be paid or given or offering to pay or
give to any person any valuable consideration to induce such other
person to violate any provision of the compact or to induce any public
officer, agent or employee to fail to perform his duty under the
compact;
(g) Consorting with known criminals for an unlawful purpose;
(h) Transfer or surrender of possession to any person either temporar-
ily or permanently of any card or other means of identification issued
by the commission as evidence of inclusion in the longshoremen's regis-
ter without satisfactory explanation;
(i) False impersonation of another longshoreman or of another person
licensed under the compact.
6. The commission shall have the right to recover possession of any
card or other means of identification issued as evidence of inclusion in
the longshoremen's register as a checker in the event that the holder
thereof has been removed from the longshoremen's register as a checker.
7. Nothing contained in this section shall be construed to limit in
any way any rights of labor reserved by section three thousand six of
this article.
§ 3117. Supplementary violations. Any person who, without justifica-
tion or excuse in law, directly or indirectly intimidates or inflicts
any injury, damage, harm, loss or economic reprisal upon any person
licensed or registered by the commission, or any other person, or
attempts, conspires or threatens so to do, in order to interfere with,
impede or influence such licensed or registered person in the perform-
ance or discharge of his duties or obligations shall be punishable as
provided in section thirty-one hundred four of this part.
§ 3118. Suspension of acceptance of applications for inclusion in
longshoremen's register; exceptions. 1. The commission shall have the
power to make determinations to suspend the acceptance of application
for inclusion in the longshoremen's register for such periods of time as
the commission may from time to time establish and, after any such peri-
od of suspension, the commission shall have the power to make determi-
nations to accept applications for such period of time as the commission
may establish or in such number as the commission may determine, or
both. Such determinations to suspend or accept applications shall be
made by the commission: (a) on its own initiative or (b) upon the joint
recommendation in writing of stevedores and other employers of long-
shoremen in the port of New York district, acting through their repre-
sentative for the purpose of collective bargaining with a labor organ-
ization representing such longshoremen in such district and such labor
organization or (c) upon the petition in writing of a stevedore or
another employer of longshoremen in the port of New York district which
does not have a representative for the purpose of collective bargaining
with a labor organization representing such longshoremen. The commission
shall have the power to accept or reject such joint recommendation or
petition.
A. 6754 165
All joint recommendations or petitions filed for the acceptance of
applications with the commission for inclusion in the longshoremen's
register shall include:
(a) the number of employees requested;
(b) the category or categories of employees requested;
(c) a detailed statement setting forth the reasons for said joint
recommendation or petition;
(d) in cases where a joint recommendation is made under this section,
the collective bargaining representative of stevedores and other employ-
ers of longshoremen in the port of New York district and the labor
organization representing such longshoremen shall provide the allocation
of the number of persons to be sponsored by each employer of longshore-
men in the port of New York district; and
(e) any other information requested by the commission.
2. In administering the provisions of this section, the commission
shall observe the following standards:
(a) To encourage as far as practicable the regularization of the
employment of longshoremen;
(b) To bring the number of eligible longshoremen into balance with the
demand for longshoremen's services within the port of New York district
without reducing the number of eligible longshoremen below that neces-
sary to meet the requirements of longshoremen in the port of New York
district;
(c) To encourage the mobility and full utilization of the existing
work force of longshoremen;
(d) To protect the job security of the existing work force of long-
shoremen by considering the wages and employment benefits of prospective
registrants;
(e) To eliminate oppressive and evil hiring practices injurious to
waterfront labor and waterborne commerce in the port of New York
district, including, but not limited to, those oppressive and evil
hiring practices that may result from either a surplus or shortage of
waterfront labor;
(f) To consider the effect of technological change and automation and
such other economic data and facts as are relevant to a proper determi-
nation;
(g) To protect the public interest of the port of New York district.
In observing the foregoing standards and before determining to suspend
or accept applications for inclusion in the longshoremen's register, the
commission shall consult with and consider the views of, including any
statistical data or other factual information concerning the size of the
longshoremen's register submitted by, carriers of freight by water,
stevedores, waterfront terminal owners and operators, any labor organ-
ization representing employees registered by the commission, and any
other person whose interests may be affected by the size of the
longshoremen's register.
Any joint recommendation or petition granted hereunder shall be
subject to such terms and conditions as the commission may prescribe.
3. Any determination by the commission pursuant to this section to
suspend or accept applications for inclusion in the longshoremen's
register shall be made upon a record, shall not become effective until
five days after notice thereof to the collective bargaining represen-
tative of stevedores and other employers of longshoremen in the port of
New York district and to the labor organization representing such long-
shoremen and/or the petitioning stevedore or other employer of long-
shoremen in the port of New York district and shall be subject to judi-
A. 6754 166
cial review for being arbitrary, capricious, and an abuse of discretion
in a proceeding jointly instituted by such representative and such labor
organization and/or by the petitioning stevedore or other employer of
longshoremen in the port of New York district. Such judicial review
proceeding may be instituted in either state in the manner provided by
the law of such state for review of the final decision or action of
administrative agencies of such state, provided, however, that such
proceeding shall be decided directly by the appellate division as the
court of first instance (to which the proceeding shall be transferred by
order of transfer by the supreme court in the state of New York or in
the state of New Jersey by notice of appeal from the commission's deter-
mination) and provided further that notwithstanding any other provision
of law in either state no court shall have power to stay the commis-
sion's determination prior to final judicial decision for more than
fifteen days. In the event that the court enters a final order setting
aside the determination by the commission to accept applications for
inclusion in the longshoremen's register, the registration of any long-
shoremen included in the longshoremen's register as a result of such
determination by the commission shall be cancelled.
This section shall apply, notwithstanding any other provision of this
article, provided however, such section shall not in any way limit or
restrict the provisions of subdivision five of section three thousand
ten of this article empowering the commission to register longshoremen
on a temporary basis to meet special or emergency needs or the
provisions of subdivision four of section three thousand ten of this
article relating to the immediate reinstatement of persons removed from
the longshoremen's register pursuant to section three thousand ten of
this article. Nothing in this section shall be construed to modify,
limit or restrict in any way any of the rights protected by section
three thousand sixteen of this article.
4. Upon the granting of any joint recommendation or petition under
this section for the acceptance of applications for inclusion in the
longshoremen's register, the commission shall accept applications upon
written sponsorship from the prospective employer of longshoremen. The
sponsoring employer shall furnish the commission with the name, address
and such other identifying or category information as the commission may
prescribe for any person so sponsored. The sponsoring employer shall
certify that the selection of the persons so sponsored was made in a
fair and non-discriminatory basis in accordance with the requirements of
the laws of the United States and the states of New York and New Jersey
dealing with equal employment opportunities.
Notwithstanding any of the foregoing, where the commission determines
to accept applications for inclusion in the longshoremen's register on
its own initiative, such acceptance shall be accomplished in such manner
deemed appropriate by the commission.
5. Notwithstanding any other provision of this article, the commission
may include in the longshoremen's register under such terms and condi-
tions as the commission may prescribe:
(a) a person issued registration on a temporary basis to meet special
or emergency needs who is still so registered by the commission;
(b) a person defined as a longshoreman in subdivision six of section
thirty-one hundred six of this part who is employed by a stevedore
defined in paragraph (b) or (c) of subdivision one of section thirty-one
hundred six of this part and whose employment is not subject to the
guaranteed annual income provisions of any collective bargaining agree-
ment relating to longshoremen;
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(c) no more than twenty persons issued registration limited to acting
as scalemen pursuant to the provisions of chapter 953 of the laws of
1969 and chapter 64 of the laws of 1982 who are still so registered by
the commission and who are no longer employed as scalemen on the effec-
tive date of this subdivision;
(d) a person issued registration on a temporary basis as a checker to
meet special or emergency needs who applied for such registration prior
to January 15, 1986 and who is still so registered by the commission;
(e) a person issued registration on a temporary basis as a checker to
meet special or emergency needs in accordance with a waterfront commis-
sion resolution of September 4, 1996 and who is still so registered by
the commission;
(f) a person issued registration on a temporary basis as a container
equipment operator to meet special or emergency needs in accordance with
a waterfront commission resolution of September 4, 1996 and who is still
so registered by the commission; and
(g) a person issued registration on a temporary basis as a longshore-
man to meet special or emergency needs in accordance with a waterfront
commission resolution of September 4, 1996 and who is still so regis-
tered by the commission.
6. The commission may include in the longshoremen's register, under
such terms and conditions as the commission may prescribe, persons
issued registration on a temporary basis as a longshoreman or a checker
to meet special or emergency needs and who are still so registered by
the commission upon the enactment of this section.
§ 3119. Temporary suspension of permits, licenses and registrations.
1. The commission may temporarily suspend a temporary permit or a
permanent license or a temporary or permanent registration pursuant to
the provisions of subdivision four of section three thousand twelve of
this article until further order of the commission or final disposition
of the underlying case, only where the permittee, licensee or registrant
has been indicted for, or otherwise charged with, a crime which is
equivalent to a felony in the state of New York or to a crime of the
third, second or first degree in the state of New Jersey or only where
the permittee or licensee is a port watchman who is charged by the
commission pursuant to section three thousand twelve of this article
with misappropriating any other person's property at or on a pier or
other waterfront terminal.
2. In the case of a permittee, licensee or registrant who has been
indicted for, or otherwise charged with, a crime, the temporary suspen-
sion shall terminate immediately upon acquittal or upon dismissal of the
criminal charge. A person whose permit, license or registration has been
temporarily suspended may, at any time, demand that the commission
conduct a hearing as provided for in section three thousand twelve of
this article. Within sixty days of such demand, the commission shall
commence the hearing and, within thirty days of receipt of the adminis-
trative judge's report and recommendation, the commission shall render a
final determination thereon; provided, however, that these time require-
ments, shall not apply for any period of delay caused or requested by
the permittee, licensee or registrant. Upon failure of the commission to
commence a hearing or render a determination within the time limits
prescribed herein, the temporary suspension of the licensee or regis-
trant shall immediately terminate. Notwithstanding any other provision
of this subdivision, if a federal, state, or local law enforcement agen-
cy or prosecutor's office shall request the suspension or deferment of
any hearing on the ground that such a hearing would obstruct or preju-
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dice an investigation or prosecution, the commission may in its
discretion, postpone or defer such hearing for a time certain or indefi-
nitely. Any action by the commission to postpone a hearing shall be
subject to immediate judicial review as provided in subdivision seven of
section three thousand twelve of this article.
3. The commission may in addition, within its discretion, bar any
permittee, licensee or registrant whose license or registration has been
suspended pursuant to the provisions of subdivision one of this section,
from any employment by a licensed stevedore or a carrier of freight by
water during the period of such suspension, if the alleged crime that
forms the basis of such suspension involves the possession with intent
to distribute, sale, or distribution of a controlled dangerous substance
(controlled substance) or, in New Jersey, controlled dangerous substance
analog (controlled substance analog), racketeering or theft from a pier
or waterfront terminal.
§ 3120. Continuance of port watchmen's licenses. Notwithstanding any
provision of subdivision five of section three thousand eleven of this
article, a license to act as a port watchman shall continue and need not
be renewed, provided the licensee shall, as required by the commission:
1. Submit to a medical examination and meet the physical and mental
fitness standards established by the commission pursuant to subdivision
three of section three thousand eleven of this article;
2. Complete a refresher course of training; and
3. Submit supplementary personal history information.
§ 3121. Regularization of port watchmen's employment. The commission
shall, at regular intervals, cancel the license or temporary permit of a
port watchman who shall have failed during the preceding twelve months
to have worked as a port watchman in the port of New York district a
minimum number of hours as shall have been established by the commis-
sion, except that immediate restoration of such license or temporary
permit shall be made upon proper showing that the failure to so work was
caused by the fact that the licensee or permittee was engaged in the
military service of the United States or was incapacitated by ill
health, physical injury or other good cause.
§ 3122. Duration of stevedore's license. A stevedore's license grant-
ed pursuant to section three thousand seven of this article shall be for
a term of five years or fraction of such five year period, and shall
expire on the first day of December. In the event of the death of the
licensee, if a natural person, or its termination or dissolution by
reason of a death of a partner, if a partnership, or if the licensee
shall cease to be a party to any contract of the type required by para-
graph (d) of subdivision three of section three thousand seven of this
article, the license shall terminate ninety days after such event or
upon its expiration date, whichever shall be sooner. A license may be
renewed by the commission for successive five year periods upon fulfill-
ing the same requirements as are set forth in section three thousand
seven of this article for an original application for a stevedore's
license.
§ 3123. Implementation of telecommunications hiring system for long-
shoremen and checkers and registration of telecommunications system
controller. 1. The commission may designate one of the employment
information centers it is authorized to establish and maintain under
section three thousand thirteen of this article for the implementation
of a telecommunications hiring system through which longshoremen and
checkers may be hired and accept employment without any personal appear-
ance at said center. Any such telecommunications hiring system shall
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incorporate hiring and seniority agreements between the employers of
longshoremen and checkers and the labor organization representing long-
shoremen and checkers in the port of New York district, provided said
agreements are not in conflict with the provisions of this part.
2. The commission shall permit employees of the association represent-
ing employers of longshoremen and checkers and of the labor organization
representing longshoremen and checkers in the port of New York district,
or of a joint board of such association and labor organization, to
participate in the operation of said telecommunications hiring system,
provided that any such employee is registered by the commission as a
"telecommunications system controller" in accordance with the
provisions, standards and grounds set forth in this part with respect to
the registration of checkers. No person shall act as a "telecommuni-
cations system controller" unless he or she is so registered. Any
application for such registration and any registration made or issued
may be denied, revoked, cancelled or suspended, as the case may be, only
in the manner prescribed in section three thousand twelve of this arti-
cle. Any and all such participation in the operation of said telecommu-
nications hiring system shall be monitored by the commission.
3. Any and all records, documents, tapes, discs and other data
compiled, collected or maintained by said association of employers,
labor organization and joint board of such association and labor organ-
ization pertaining to the telecommunications hiring system shall be
available for inspection, investigation and duplication by the commis-
sion.
PART III
COMMISSION ESTABLISHED FOR NEW YORK STATE
3201. Commission established for New York state.
3202. Prohibition against loitering.
3203. Prohibition against unions having officers, agents or
employees who have been convicted of certain crimes and
offenses.
3204. Exception to section 3203 of this part for certain employ-
ees.
§ 3201. Commission established for New York state. Unless and until
the provisions of the compact contained in part I of this article shall
have been concurred in by the state of New Jersey, the consent of
congress given thereto, and the commission, provided for therein, estab-
lished:
1. The provisions of such compact and sections thirty-one hundred two,
thirty-one hundred three, thirty-one hundred four and thirty-one hundred
five of this article shall apply to and be in full force and effect
within the state of New York, except as limited by this section, and any
violation of such compact or section shall be a violation of the laws of
the state of New York, provided, however, that (with respect to the
definitions contained in such compact):
(a) "The port of New York district" shall mean only that portion of
the district within the state of New York;
(b) The "commission", hereinafter referred to in this section as the
"New York commission", shall mean and consist of the member appointed by
the governor of this state by and with the advice and consent of the
senate, and he shall possess and exercise all the powers and duties of
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the commission set forth in part I of this article and any other powers
and duties conferred herein;
(c) The powers and duties of any other officer or agency of this state
prescribed by part I of this article or otherwise by this article shall
be effective as if the provisions of the compact were effective as a law
of this state; and
(d) The New York commission shall not be deemed to be a body corporate
and politic and shall be in the executive department of this state.
2. The New York commission is authorized to cooperate with a similar
commission of the state of New Jersey, to exchange information on any
matter pertinent to the purposes of this article, and to enter into
reciprocal agreements for the accomplishment of such purposes, including
but not limited to the following objectives:
(a) To provide for the reciprocal recognition of any license issued or
registration made by either commission;
(b) To give reciprocal effect to any revocation, suspension or repri-
mand with respect to any licensee, and any reprimand or removal from a
longshoremen's register;
(c) To provide that any act or omission by a licensee or registrant in
either state which would be a basis for disciplinary action against such
licensee or registrant if it occurred in the state in which the license
was issued or the person registered shall be the basis for disciplinary
action in both states;
(d) To provide that longshoremen registered in either state, who
perform work or who apply for work at an employment information center
within the other state shall be deemed to have performed work or to have
applied for work in the state in which they are registered.
3. Notwithstanding any other provision of law, the officers, employees
and agents of the commission established by this section may be
appointed or employed without regard to their state of residence. Such
commission may appoint or employ the same person to a similar office or
employment in this state as he holds in a similar commission or agency
of the state of New Jersey.
Notwithstanding any other provision of this article, for the purpose
of providing for the commission's expenses of administration during the
remainder of the calendar year following the effective date of this
article, and until June thirtieth, nineteen hundred fifty-four the
assessment for such expense shall be at the rate of one and one-half per
cent. Such assessment shall be made, collected and enforced in accord-
ance with section three thousand fourteen of this article.
§ 3202. Prohibition against loitering. No person shall, without a
satisfactory explanation, loiter upon any vessel, dock, wharf, pier,
bulkhead, terminal, warehouse, or other waterfront facility or within
five hundred feet thereof in that portion of the port of New York
district within the state of New York.
§ 3203. Prohibition against unions having officers, agents or employ-
ees who have been convicted of certain crimes and offenses. No person
shall solicit, collect or receive any dues, assessments, levies, fines
or contributions, or other charges within the state for or on behalf of
any labor organization which represents employees registered or licensed
pursuant to the provisions of this article or which derives its charter
from a labor organization representing one hundred or more of such
registered or licensed employees, if any officer, agent or employee of
such labor organization, or of a welfare fund or trust administered
partially or entirely by such labor organization or by trustees or other
persons designated by such labor organization, has been convicted by a
A. 6754 171
court of the United States, or any state or territory thereof, of a
felony, any misdemeanor involving moral turpitude or any crime or
offense enumerated in subdivision three (b) of section thirty-one
hundred sixteen of this article, unless he has been subsequently
pardoned therefor by the governor or other appropriate authority of the
state or jurisdiction in which such conviction was had or has received a
certificate of good conduct from the board of parole pursuant to the
provisions of the executive law to remove the disability. No person so
convicted shall serve as an officer, agent or employee of such labor
organization, welfare fund or trust unless such person has been so
pardoned or has received a certificate of good conduct. No person,
including such labor organization, welfare fund or trust, shall know-
ingly permit such convicted person to assume or hold any office, agency,
or employment in violation of this section.
As used in this section, the term "labor organization" shall mean and
include any organization which exists and is constituted for the purpose
in whole or in part of collective bargaining, or of dealing with employ-
ers concerning grievances, terms and conditions of employment, or of
other mutual aid or protection; but it shall not include a federation
or congress of labor organizations organized on a national or interna-
tional basis even though one of its constituent labor organizations may
represent persons so registered or licensed.
Any person who shall violate this section shall be guilty of a misde-
meanor punishable by a fine of not more than five hundred dollars or
imprisonment for not more than one year or both.
§ 3204. Exception to section thirty-two hundred three of this part for
certain employees. If upon application to the commission by an employee
who has been convicted of a crime or offense specified in section thir-
ty-two hundred three of this part the commission, in its discretion,
determines in an order that it would not be contrary to the purposes and
objectives of this article for such employee to work in a particular
employment for a labor organization, welfare fund or trust within the
meaning of section thirty-two hundred three of this part, the provisions
of section thirty-two hundred three of this part shall not apply to the
particular employment of such employee with respect to such conviction
or convictions as are specified in the commission's order. This section
is applicable only to those employees who for wages or salary perform
manual, mechanical, or physical work of a routine or clerical nature at
the premises of the labor organization, welfare fund or trust by which
they are employed.
PART IV
COMPACT
3301. Compact.
3302. Findings and declarations.
3303. Definitions.
3304. General powers of the commission.
3305. Airfreightmen and airfreightman supervisors.
3306. Air freight terminal operators; air freight truck carri-
ers; and airfreightmen; labor relations consultants.
3307. Air freight security area.
3308. Hearings, determinations and review.
3309. Expenses of administration.
3310. General violations; prosecutions; penalties.
3311. Amendments; construction; short title.
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§ 3301. Compact. The state of New York hereby agrees with the state
of New Jersey, upon the enactment by the state of New Jersey of legis-
lation having the same effect as this section, to the following compact:
§ 3302. Findings and declarations. 1. The states of New York and New
Jersey hereby find and declare that the movement of freight through the
two states is vital to their economies and prosperity; that ever
increasing amounts of such freight are being carried by the air freight
industry; that said air freight industry in the two states constitutes
an inseparable and integral unit of the commerce of the two states;
that criminal and racketeer elements have infiltrated the air freight
industry; that such criminal infiltration is threatening the growth of
said air freight industry; that one of the means by which such criminal
and racketeer elements infiltrate the air freight industry is by posing
as labor relations consultants and that firms handling air freight are
often forced to employ or engage such persons; that the air freight
industry is suffering an alarming rise in the amount of pilferage and
theft of air freight; and that it is imperative to the continued growth
and economic well-being of the states of New York and New Jersey that
every possible effective measure be taken to prevent the pilferage and
theft of air freight and the criminal infiltration of the air freight
industry.
2. The states of New York and New Jersey hereby find and declare that
many of the evils existing in the air freight industry result not only
from the causes above described but from the lack of regulation of the
air freight industry in and about the port of New York district; that
the air freight industry is affected with a public interest requiring
regulation, just as the states of New York and New Jersey have hereto-
fore found and declared in respect to the shipping industry; and that
such regulation of the air freight industry shall be deemed an exercise
of the police power of the two states for the protection of the public
safety, welfare, prosperity, health, peace and living conditions of the
people of the states.
§ 3303. Definitions. As used in this compact:
1. "Commission" shall mean the waterfront and airport commission of
New York and New Jersey established by section three thousand four of
this article.
2. "Airport" shall mean any area on land, water or building or any
other facility located within the states of New York and New Jersey
(except a military installation of the United States government) (a)
which is located within one hundred miles of any point in the port of
New York district, (b) which is used, or intended for use, for the land-
ing and take-off of aircraft operated by an air carrier, and any appur-
tenant areas which are used or intended for use, for airport buildings
or other airport facilities or rights of way, together with all airport
buildings, equipment, aircraft, and facilities located thereon, and (c)
where the total tonnage of air freight in a calendar year loaded and
unloaded on and from aircraft exceeds twenty thousand tons.
3. "Air carrier" shall mean any person who may be engaged or who may
hold himself out as willing to be engaged, whether as a common carrier,
as a contract carrier or otherwise, in the carriage of freight by air.
4. "Air freight" shall mean freight (including baggage, aircraft
stores and mail) which is, has been, or will be carried by or consigned
for carriage by an air carrier.
5. "Air freight terminal" shall include any warehouse, depot or other
terminal (other than an airport) (a) any part of which is located within
an airport and any part of which is used for the storage of air freight,
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or (b) which is operated by an air carrier or a contractor of an air
carrier and any part of which is used for the storage of air freight and
any part of which is located within the port of New York district.
6. "Air freight terminal operator" shall mean the owner, lessee, or
contractor or such other person (other than an employee) who is in
direct and immediate charge and control of an air freight terminal, or
any portion thereof.
7. "Air freight truck carrier" shall mean a contractor (other than an
employee) engaged for compensation pursuant to a contract or arrange-
ment, directly or indirectly, with an air carrier or air carriers or
with an air freight terminal operator or operators in the moving of
freight to or from an airport or air freight terminal by a truck or
other motor vehicle used primarily for the transportation of property.
8. "Air freight security area" shall mean any area located within the
airport to which the commission determines that limited ingress and
egress is required for the protection and security of any air freight
located within the airport.
9. "Airfreightman" shall mean a natural person who is employed
(a) by any person to physically move or to perform services incidental
to the movement of air freight at an airport or in an air freight termi-
nal; or
(b) by an air carrier or an air freight terminal operator or an air
freight truck carrier to transport or to assist in the transportation of
air freight to or from an airport or air freight terminal; or
(c) by any person to engage in direct and immediate checking of any
air freight located in an airport or in an air freight terminal or of
the custodial accounting therefor.
10. "Airfreightman supervisor" shall mean a natural person who is
employed to supervise directly and immediately the work of an airfr-
eightman at an airport or at an air freight terminal.
11. "Airfreightman labor relations consultant" shall mean any person
who, pursuant to any contract or arrangement, advises or represents an
air carrier, an air freight terminal operator, or an air freight truck
carrier, or an organization of such employers (whether or not incorpo-
rated), or a labor organization representing any airfreightmen or airfr-
eightman supervisors, concerning the organization or collective bargain-
ing activities of airfreightmen or airfreightman supervisors, but shall
not include any person designated by any government official or body to
so act or any person duly licensed to practice law as an attorney in any
jurisdiction. As used in this paragraph, the term "labor organization"
shall mean and include any labor organization to which section thirty-
four hundred one of this article is applicable.
12. "Person" shall mean not only a natural person but also any part-
nership, joint venture, association, corporation or any other legal
entity but shall not include the United States, any state or territory
thereof or any department, division, board, commission or authority of
one or more of the foregoing or any officer or employee thereof while
engaged in the performance of his official duties.
13. "The port of New York district" shall mean the district created by
article II of the compact dated April thirtieth, nineteen hundred twen-
ty-one, between the states of New York and New Jersey, authorized by
chapter one hundred fifty-four of the laws of New York of nineteen
hundred twenty-one and continued by article I of this chapter, and chap-
ter one hundred fifty-one of the laws of New Jersey of nineteen hundred
twenty-one, and any amendments thereto.
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14. "Court of the United States" shall mean all courts enumerated in
section four hundred fifty-one of title twenty-eight of the United
States code and the courts-martial of the armed forces of the United
States.
15. "Witness" shall mean any person whose testimony is desired in any
investigation, interview or other proceeding conducted by the commission
pursuant to the provisions of this compact.
16. "Compact" shall mean this compact and rules and regulations
lawfully promulgated thereunder and shall also include any amendments or
supplements to this compact to implement the purposes thereof adopted by
the action of the legislature of either the state of New York or the
state of New Jersey concurred in by the legislature of the other.
§ 3304. General powers of the commission. In addition to the powers
and duties of the commission conferred in parts I, II, III, and V of
this article, the commission shall have the power:
1. To administer and enforce the provisions of this compact;
2. To establish such divisions and departments within the commission
as the commission may deem necessary and to appoint such officers,
agents and employees as it may deem necessary, prescribe their powers,
duties and qualifications and fix their compensation and retain and
employ counsel and private consultants on a contract basis or otherwise;
3. To make and enforce such rules and regulations as the commission
may deem necessary to effectuate the purposes of this compact or to
prevent the circumvention or evasion thereof including, but not limited
to, rules and regulations (which shall be applicable to any person
licensed by the commission, his employer, or any other person within an
airport) to provide for the maximum protection of air freight, such as
checking and custodial accounting, guarding, storing, fencing, gatehous-
es, access to air freight, air freight loss reports, and any other
requirements which the commission in its discretion may deem to be
necessary and appropriate to provide such maximum protection. The rules
and regulations of the commission shall be effective upon publication in
the manner which the commission shall prescribe and upon filing in the
office of the secretary of state of each state. A certified copy of any
such rules and regulations, attested as true and correct by the commis-
sion, shall be presumptive evidence of the regular making, adoption,
approval and publication thereof;
4. To have for its members and its properly designated officers,
agents and employees, full and free access, ingress and egress to and
from all airports, air freight terminals, all aircraft traveling to or
from an airport and all trucks or other motor vehicles or equipment
which are carrying air freight to or from any airport or air freight
terminal for the purposes of conducting investigations, making
inspections or enforcing the provisions of this compact; and no person
shall obstruct or in any way interfere with any such member, officer,
employee or agent in the making of such investigation or inspection or
in the enforcement of the provisions of this compact or in the perform-
ance of any other power or duty under this compact;
5. To make investigations, collect and compile information concerning
airport practices generally, and upon all matters relating to the accom-
plishment of the objectives of this compact;
6. To advise and consult with representatives of labor and industry
and with public officials and agencies concerned with the effectuation
of the purposes of this compact, upon all matters which the commission
may desire, including but not limited to the form and substance of rules
and regulations and the administration of the compact and the expe-
A. 6754 175
ditious handling and efficient movement of air freight consistent with
the security of such air freight;
7. To make annual and other reports to the governors and legislatures
of both states containing recommendations for the effectuation of the
purposes of this compact;
8. To issue temporary licenses and temporary permits under such terms
and conditions as the commission may prescribe;
9. In any case in which the commission has the power to revoke or
suspend any license or permit the commission shall also have the power
to impose as an alternative to such revocation or suspension, a penalty,
which the licensee or permittee may elect to pay the commission in lieu
of the revocation or suspension. The maximum penalty shall be five
thousand dollars for each separate offense. The commission may, for good
cause shown, abate all or part of such penalty;
10. To determine the location, size and suitability of field and
administrative offices and any other accommodations necessary and desir-
able for the performance of the commission's duties under this compact;
11. To acquire, hold and dispose of real and personal property, by
gift, purchase, lease, license or other similar manner, for its corpo-
rate purposes, and in connection therewith to borrow money;
12. To recover possession of any card or other means of identification
issued by the commission as evidence of a license or permit in the event
that the holder thereof no longer is a licensee or permittee;
13. To require any licensee or permittee to exhibit upon demand the
license or permit issued to him by the commission or to wear such
license or permit.
The powers and duties of the commission may be exercised by officers,
employees and agents designated by them, except the power to make rules
and regulations. The commission shall have such additional powers and
duties as may hereafter be delegated to or imposed upon it from time to
time by the action of the legislature of either state concurred in by
the legislature of the other.
§ 3305. Airfreightmen and airfreightman supervisors. 1. On and after
the ninetieth day after the effective date of this compact, no person
shall act as an airfreightman or an airfreightman supervisor within the
state of New York or the state of New Jersey without having first
obtained from the commission a license to act as such airfreightman or
airfreightman supervisor, as the case may be, and no person shall employ
another person to act as an airfreightman or airfreightman supervisor
who is not so licensed.
2. A license to act as an airfreightman or airfreightman supervisor
shall be issued only upon the written application, under oath, of the
person proposing to employ or engage another person to act as such
airfreightman or airfreightman supervisor, verified by the prospective
licensee as to the matters concerning him, and shall set forth the
prospective licensee's full name, residence address, social security
number, and such further facts and evidence as may be required by the
commission to determine the identity, the existence of a criminal
record, if any, and the eligibility of the prospective licensee for a
license.
3. The commission may in its discretion deny the application for such
license submitted on behalf of a prospective licensee for any of the
following causes:
(a) Conviction by a court of the United States or any state or terri-
tory thereof, without subsequent pardon, of the commission of, or the
attempt or conspiracy to commit, treason, murder, manslaughter, coercion
A. 6754 176
or any felony or high misdemeanor or any of the following misdemeanors
or offenses (excluding, however, any conviction for a misdemeanor or
lesser offense arising out of physical misconduct committed during the
course of lawful organizational or collective bargaining activities of
any labor organization): illegally using, carrying or possessing a
pistol or other dangerous weapon; making, manufacturing or possessing
burglar's instruments; buying or receiving stolen property; criminal
possession of stolen property; unlawful entry of a building; criminal
trespass; aiding an escape from prison; and unlawfully possessing,
selling or distributing a dangerous drug;
(b) Conviction by any such court, after having been previously
convicted by any such court of any crime or of the offenses hereinafter
set forth, of a misdemeanor or any of the following offenses (excluding,
however, any conviction for a misdemeanor or lesser offense arising out
of physical misconduct committed during the course of lawful organiza-
tional or collective bargaining activities of any labor organization):
assault, malicious injury to property, criminal mischief, malicious
mischief, criminal tampering, unlawful use or taking of a motor vehicle,
corruption of employees, promoting gambling, possession of gambling
records or devices, or possession of lottery or number slips;
(c) Fraud, deceit or misrepresentation in connection with any applica-
tion or petition submitted to, or any interview, hearing or proceeding
conducted by the commission;
(d) Violation of any provision of this section or the commission of
any offense thereunder;
(e) Refusal on the part of the applicant, or prospective licensee, to
answer any material question or produce any material evidence in
connection with the application;
(f) As to an airfreightman, his presence at the airports or air
freight terminals is found by the commission on the basis of the facts
and evidence before it to constitute a danger to the public peace or
safety;
(g) As to an airfreightman supervisor, failure to satisfy the commis-
sion that the prospective licensee possesses good character and integri-
ty;
(h) Conviction of a crime or other cause which would permit reprimand
of such prospective licensee or the suspension or revocation of his
license if such person were already licensed.
4. When the application shall have been examined and such further
inquiry and investigation made as the commission shall deem proper and
when the commission shall be satisfied therefrom that the prospective
licensee possesses the qualifications and requirements prescribed in
this article, the commission shall issue and deliver to the prospective
licensee a license to act as an airfreightman or as an airfreightman
supervisor, as the case may be, and shall inform the applicant of its
action.
5. The commission shall have the power to reprimand any airfreightman
or airfreightman supervisor licensed under this article or to revoke or
suspend his license for such period as the commission deems in the
public interest for any of the following causes:
(a) Conviction of a crime or other cause which would permit the denial
of a license upon original application;
(b) Fraud, deceit or misrepresentation in securing the license, or in
the conduct of the licensed activity;
(c) Transfer or surrender of possession to any person either temporar-
ily or permanently of any card or other means of identification issued
A. 6754 177
by the commission as evidence of a license, without satisfactory expla-
nation;
(d) False impersonation of another person who is a licensee or permit-
tee of the commission under this compact;
(e) Wilful commission of, or wilful attempt to commit at an airport or
at an air freight terminal or adjacent highway any act of physical inju-
ry to any other person or of wilful damage to or misappropriation of any
other person's property, unless justified or excused by law.
(f) Violation of any of the provisions of this compact or inducing or
otherwise aiding or abetting any person to violate the terms of this
compact;
(g) Addiction to the use of, or unlawful possession, sale or distrib-
ution of a dangerous drug;
(h) Paying, giving, causing to be paid or given or offering to pay or
give to any person any valid consideration to induce such other person
to violate any provision of this compact or to induce any public offi-
cer, agent or employee to fail to perform his duty under this compact;
(i) Consorting with known criminals for unlawful purposes;
(j) Receipt or solicitation of anything of value from any person other
than the licensee's or permittee's employer as consideration for the
selection or retention for employment of any person who is a licensee or
permittee of the commission under this compact;
(k) Coercion of any person who is a licensee or permittee of the
commission under this compact by threat of discrimination or violence or
economic reprisal to make purchases from or to utilize the services of
any person;
(l) Lending any money to or borrowing any money from any person who is
a licensee or permittee of the commission under this compact for which
there is a charge of interest or other consideration which is usurious;
(m) Conviction of any criminal offense in relation to gambling, book-
making, pool selling, lotteries or similar crimes or offenses if the
crime or offense was committed at an airport or air freight terminal or
within five hundred feet thereof;
(n) Refusal to answer any material question or produce any material
evidence lawfully required to be answered or produced at any investi-
gation, interview or other proceeding conducted by the commission pursu-
ant to the provisions of this compact, or, if such refusal is accompa-
nied by a valid plea of privilege against self-incrimination, refusal to
obey an order to answer such question or produce such evidence made by
the commission pursuant to the power of the commission under this
compact to grant immunity from prosecution;
(o) Refusal to exhibit his license or permit upon the demand of any
officer, agent or employee of the commission or failure to wear such
license or permit when required.
6. A license granted pursuant to this section shall expire on the
expiration date (which shall be at least one year from the date of its
issuance) set forth by the commission on the card or other means of
identification issued by the commission as evidence of a license or upon
the termination of employment with the employer who applied for the
license. Upon expiration thereof, a license may be renewed by the
commission upon fulfilling the same requirements as are set forth in
this compact for an original application.
§ 3306. Air freight terminal operators; air freight truck carriers;
and airfreightmen; labor relations consultants. 1. On and after the
ninetieth day after the effective date of this compact, no person,
except an air carrier, shall act as an air freight terminal operator or
A. 6754 178
as an air freight truck carrier or as an airfreightman labor relations
consultant within the state of New York or the state of New Jersey with-
out having first obtained a license from the commission to act as an air
freight terminal operator or as an air freight truck carrier or as an
airfreightman labor relations consultant, as the case may be, and no
person shall employ or engage another person to perform services as an
air freight terminal operator or as an air freight truck carrier or as
an airfreightman labor relations consultant who is not so licensed.
2. Any person intending to act as an air freight terminal operator or
as an air freight truck carrier or as an airfreightman labor relations
consultant within the state of New York or the state of New Jersey shall
file in the office of the commission a written application for a license
to engage in such occupation duly signed and verified as follows:
(a) If the applicant is a natural person, the application shall be
signed and verified by such person and if the applicant is a partner-
ship, the application shall be signed and verified by each natural
person composing or intending to compose such partnership. The applica-
tion shall state the full name, age, residence, business address (if
any), present and previous occupations of each natural person so signing
the same, and any other facts and evidence as may be required by the
commission to ascertain the character, integrity, identity and criminal
record, if any, of each natural person so signing such application.
(b) If the applicant is a corporation, the application shall be signed
and verified by the president, secretary and treasurer thereof, and
shall specify the name of the corporation, the date and place of its
incorporation, the location of its principal place of business, the
names and addresses of, and the amount of the stock held by stockholders
owning ten per cent or more of any of the stock thereof, and of all the
officers (including all members of the board of directors). The
requirements of paragraph (a) of this subdivision as to a natural person
who is a member of a partnership, and such requirements as may be speci-
fied in rules and regulations promulgated by the commission, shall apply
to each such officer or stockholder and their successors in office or
interest as the case may be.
In the event of the death, resignation or removal of any officer, and
in the event of any change in the list of stockholders who shall own ten
per cent or more of the stock of the corporation, the secretary of such
corporation shall forthwith give notice of that fact in writing to the
commission, certified by said secretary.
3. No such license shall be granted
(a) If any person whose signature or name appears in the application
is not the real party in interest required by subdivision two of this
section to sign or to be identified in the application or if the person
so signing or named in the application is an undisclosed agent or trus-
tee for any such real party in interest or if any such real party in
interest does not sign the application;
(b) Unless the commission shall be satisfied that the applicant and
all members, officers and stockholders required by subdivision two of
this section to sign or be identified in the application for license
possess good character and integrity;
(c) If the applicant or any member, officer or stockholder required by
subdivision two of this section to sign or be identified in the applica-
tion for license has, without subsequent pardon, been convicted by a
court of the United States or any state or territory thereof of the
commission of, or the attempt or conspiracy to commit any crime or
offense described in paragraph (a) of subdivision three of section thir-
A. 6754 179
ty-three hundred five of this part. Any applicant ineligible for a
license by reason of any such conviction may submit satisfactory
evidence to the commission that the person whose conviction was the
basis of ineligibility has for a period of not less than five years,
measured as hereinafter provided and up to the time of application, so
conducted himself as to warrant the grant of such license, in which
event the commission may, in its discretion issue an order removing such
ineligibility. The aforesaid period of five years shall be measured
either from the date of payment of any fine imposed upon such person or
the suspension of sentence or from the date of his unrevoked release
from custody by parole, commutation or termination of his sentence.
Such petition may be made to the commission before or after the hearing
on the application;
(d) If, on or after the effective date of this compact, the applicant
has paid, given, caused to have been paid or given or offered to pay or
give to any officer or employee of any other person employing or engag-
ing him in his licensed activity any valuable consideration for an
improper or unlawful purpose or to induce such officer or employee to
procure the employment of the applicant in his licensed activity by such
other person;
(e) If, on or after the effective date of this compact, the applicant
has paid, given, caused to have been paid, or given or offered to pay or
give to any officer or representative of a labor organization any valu-
able consideration for an improper or unlawful purpose or to induce such
officer or representative to subordinate the interest of such labor
organization or its members in the management of the affairs of such
labor organization to the interests of the applicant or any other
person;
(f) If, on or after the effective date of this compact, the applicant
has paid, given, caused to have been paid or given or offered to pay or
give to any agent of any other person any valuable consideration for an
improper or unlawful purpose or, without the knowledge and consent of
such other person, to induce such agent to procure the employment of the
applicant in his licensed activity by such other person.
4. When the application shall have been examined and such further
inquiry and investigation made as the commission shall deem proper and
when the commission shall be satisfied therefrom that the applicant
possess the qualifications and requirements prescribed in this section,
the commission shall issue and deliver a license to the applicant.
5. The commission shall have the power to reprimand any person
licensed under this section or to revoke or suspend his license for such
period as the commission deems in the public interest for any of the
following causes on the part of the licensee or of any person required
by subdivision two of this section to sign or be identified in an
original application for a license:
(a) Any cause set forth in subdivision five of section thirty-three
hundred five of this part;
(b) Failure by the licensee to maintain a complete set of books and
records containing a true and accurate account of the licensee's
receipts and disbursements arising out of his licensed activities;
(c) Failure to keep said books and records available during business
hours for inspection by the commission and its duly designated represen-
tatives until the expiration of the fifth calendar year following the
calendar year during which occurred the transactions recorded therein;
(d) Failure to pay any assessment or fee payable to the commission
under this compact when due.
A. 6754 180
6. A license granted pursuant to this section shall expire on the
expiration date (which shall be at least one year from the date of its
issuance) set forth by the commission on the card or other means of
identification issued by the commission as evidence of a license. Upon
expiration thereof, a license may be renewed by the commission upon
fulfilling the same requirements as are set forth in this section for an
original application.
§ 3307. Air freight security area. 1. On or after the effective date
of this compact, the commission shall have the power to designate any
area located within an airport as an air freight security area. No
person who is not licensed by the commission pursuant to this compact
shall have ingress to an air freight security area unless issued a
permit by the commission.
2. Any person who is not licensed by the commission pursuant to this
compact and who desires upon any occasion ingress to an air freight
security area shall apply at the entrance to such area for a permit for
ingress for that particular occasion. In order to secure a permit, a
prospective permittee must show identification establishing his name and
address and he may be required by the commission to sign a consent to
the surrender of his permit upon egress from such area and, if he is
driving a motor vehicle, to an inspection of his motor vehicle upon
egress from such area. Any person desiring a permit to enter an air
freight security area may be denied such permit by the commission in its
discretion if the commission determines that the presence of such person
in such area would constitute a danger to the public peace or safety.
3. Any person whose business, employment or occupation requires him to
have ingress upon a regular basis to an air freight security area shall
be required, in order to obtain ingress to such area, to apply to the
commission for a permit for a fixed period of duration to be determined
by the commission. Such applicant for a permit of a fixed period of
duration shall fulfill the same requirements as the prospective licensee
for an airfreightman's license. The commission may in the exercise of
its discretion suspend or revoke such permit of a fixed period of dura-
tion for the same causes which would permit the commission to revoke the
license of an airfreightman.
4. The commission shall have the power to inspect any truck or any
other motor vehicle within an air freight security area.
5. The provisions of this article shall not be applicable to any
person who is a member of the flight crew or flight personnel of an
aircraft which is operated by an air carrier and which is located within
an air freight security area upon a showing of such identification as
may be required by the commission.
§ 3308. Hearings, determinations and review. 1. The commission shall
not deny any application for a license or permit without giving the
applicant or prospective licensee or permittee reasonable prior notice
and an opportunity to be heard.
2. Any application for a license or permit, and any license or permit
issued, may be denied, revoked or suspended, as the case may be, only in
the manner prescribed in this section.
3. The commission may on its own initiative or on complaint of any
person, including any public official or agency, institute proceedings
to revoke or suspend any license or permit after a hearing at which the
licensee or permittee and any person making such complaint shall be
given an opportunity to be heard, provided that any order of the commis-
sion revoking or suspending any license or permit shall not become
effective until fifteen days subsequent to the serving of notice thereof
A. 6754 181
upon the licensee or permittee unless in the opinion of the commission
the continuance of the license or permit for such period would be inimi-
cal to the public peace or safety. Such hearings shall be held in such
manner and upon such notice as may be prescribed by the rules of the
commission, but such notice shall be of not less than ten days and shall
state the nature of the complaint.
4. Pending the determination of such hearing pursuant to subdivision
three of this section, the commission may temporarily suspend a license
or permit if in the opinion of the commission the continuance of the
license or permit for such period is inimical to the public peace or
safety.
5. The commission, or such member, officer, employee or agent of the
commission as may be designated by the commission for such purpose,
shall have the power to issue subpoenas throughout both states to compel
the attendance of witnesses and the giving of testimony or production of
other evidence and to administer oaths in connection with any such hear-
ing. It shall be the duty of the commission or of any such member,
officer, employee or agent of the commission designated by the commis-
sion for such purpose to issue subpoenas at the request of and upon
behalf of the licensee, permittee or applicant. The commission or such
person conducting the hearing shall not be bound by common law or statu-
tory rules of evidence or by technical or formal rules or procedure in
the conduct of such hearing.
6. Upon the conclusion of the hearing, the commission shall take such
action upon such findings and determinations as it deems proper and
shall execute an order carrying such findings into effect. The action
in the case of an application for a license or permit shall be the
granting or denial thereof. The action in the case of a licensee or
permittee shall be revocation of the license or permit or suspension
thereof for a fixed period or reprimand or a dismissal of the charges.
7. The action of the commission in denying any application for a
license or permit or in suspending or revoking such license or permit or
in reprimanding a licensee or permittee shall be subject to judicial
review by a proceeding instituted in either state at the instance of the
applicant, licensee or permittee in the manner provided by the law of
such state for review of the final decision or action of administrative
agencies of such state, provided, however, that notwithstanding any
other provision of law the court shall have power to stay for not more
than thirty days an order of the commission suspending or revoking a
license or permit.
8. At hearings conducted by the commission pursuant to this section,
applicants, prospective licensees and permittees, licensees and permit-
tees shall have the right to be accompanied and represented by counsel.
9. After the conclusion of a hearing but prior to the making of an
order by the commission, a hearing may, upon petition and in the
discretion of the hearing officer, be reopened for the presentation of
additional evidence. Such petition to reopen the hearing shall state in
detail the nature of the additional evidence, together with the reasons
for the failure to submit such evidence prior to the conclusion of the
hearing. The commission may upon its own motion and upon reasonable
notice reopen a hearing for the presentation of additional evidence.
Upon petition, after the making of an order of the commission, rehearing
may be granted in the discretion of the commission. Such a petition for
rehearing shall state in detail the grounds upon which the petition is
based and shall separately set forth each error of law and fact alleged
to have been made by the commission in its determination, together with
A. 6754 182
the facts and arguments in support thereof. Such petition shall be
filed with the commission not later than thirty days after service of
such order unless the commission for good cause shown shall otherwise
direct. The commission may upon its own motion grant a rehearing after
the making of an order.
§ 3309. Expenses of administration. 1. In addition to the budget of
its expenses under the waterfront commission compact, the commission
shall annually adopt a budget of its expenses under this compact for
each year. The annual budget shall be submitted to the governors of the
two states and shall take effect as submitted provided that either
governor may within thirty days disapprove or reduce any item or items,
and the budget shall be adjusted accordingly.
2. After taking into account such funds as may be available to it from
reserves in excess of ten per cent of such budget under this compact,
federal grants, or otherwise, the balance of the commission's budgeted
expenses shall be obtained by fees payable under this article and by
assessments upon employers of persons licensed under this compact as
provided in this article.
3. With respect to airfreightmen and airfreightman supervisors who are
employed by an air freight truck carrier regularly to move freight to or
from an airport, the employers shall pay to the commission for each such
airfreightman and airfreightman supervisor a license fee to be deter-
mined by the commission, not in excess of one hundred dollars for each
year, commencing with the first day of April. The employer of every
person who is issued a permit of fixed duration by the commission for
ingress to an air freight security area, or the permittee himself if he
is self-employed, shall pay to the commission a fee to be determined by
the commission, not in excess of seventy-five dollars for each year,
commencing with the first day of April. The commission shall reduce the
maximum fees payable under this section proportionately with any
reduction in the maximum assessment rate of two per cent provided for by
this section.
4. Every employer of airfreightmen and airfreightman supervisors
licensed by the commission, except as otherwise provided in subdivision
three of this section, shall pay to the commission an assessment
computed upon the gross payroll payments made by such employer to airfr-
eightmen and airfreightman supervisors for work performed as such, at a
rate, not in excess of two per cent, computed by the commission, in the
following manner: the commission shall annually estimate the fees paya-
ble under this section and the gross payroll payments to be made by
employers subject to assessment and shall compute the fees and a rate of
assessment which will yield revenues sufficient to finance the balance
of the commission's budget for each year as provided in subdivision two
of this section. The commission may hold in reserve an amount not to
exceed ten per cent of its total budgeted expenses for the year, which
reserve shall not be included as part of the budget. Such reserve shall
be held for the stabilization of annual assessments, the payment of
operating deficits and for the repayment of any advances made by the two
states.
5. The amount required to balance the commission's budget in excess of
the estimated yield of the maximum fees and assessment, shall be certi-
fied by the commission, with the approval of the respective governors,
to the legislatures of the two states, in proportion to the respective
totals of the assessments and fees paid to the commission by persons in
each of the two states. The legislatures shall annually appropriate to
the commission the amount so certified.
A. 6754 183
6. The assessments and fees hereunder shall be in lieu of any other
charge for the issuance of licenses or permits by the commission pursu-
ant to this compact.
7. In addition to any other sanction provided by law, the commission
may revoke or suspend any license or permit held by any employer under
this compact and/or the license or permit held under this compact by any
employees of such employer, or the permit held under this compact by any
permittee who is self-employed, and in addition the commission may deny
ingress to such employers, employees or permittees to air freight secu-
rity areas, for nonpayment of any assessment or fee when due.
8. Every person subject to the payment of any assessment under this
compact shall file on or before the twentieth day of the first month of
each calendar quarter-year a separate return, together with the payment
of the assessment due, for the preceding calendar quarter-year during
which any payroll payments were made to licensed persons for whom
assessments are payable for work performed as such. Returns covering the
amount of assessment payable shall be filed with the commission on forms
to be furnished for such purpose and shall contain such data, informa-
tion or matter as the commission may require to be included therein.
The commission may grant a reasonable extension of time for filing
returns, or for payment of assessment, whenever good cause exists.
Every return shall have annexed thereto a certification to the effect
that the statements contained therein are true.
9. Every person subject to the payment of assessment hereunder shall
keep an accurate record of his employment of licensed persons for whom
assessments are payable, which shall show the amount of compensation
paid and such other information as the commission may require. Such
records shall be preserved for a period of three years and be open for
inspection at reasonable times. The commission may consent to the
destruction of any such records at any time after said period or may
require that they be kept longer but not in excess of six years.
10. (a) The commission shall audit and determine the amount of assess-
ment due from the return filed and such other information as is avail-
able to it. Whenever a deficiency in payment of the assessment is
determined the commission shall give notice of any such determination to
the person liable therefor. Such determination shall finally and
conclusively fix the amount due, unless the person against whom it is
assessed shall, within thirty days after the giving of notice of such
determination, apply in writing to the commission for a hearing, or
unless the commission on its own motion shall reduce the same. After
such hearing, the commission shall give notice of its decision to the
person liable therefor. A determination of the commission under this
subdivision shall be subject to judicial review, if application for such
review is made within thirty days after the giving of notice of such
decision. Any determination under this section shall be made within
five years from the time the return was filed and if no return was filed
such determination may be made at any time.
(b) Any notice authorized or required under this section may be given
by mailing the same to the person for whom it is intended at the last
address given by him to the commission, or in the last return filed by
him with the commission under this section, or if no return has been
filed then to such address as may be obtainable. The mailing of such
notice shall be presumptive evidence of the receipt of same by the
person to whom addressed. Any period of time, which is determined
according to the provision of this subdivision, for the giving of notice
shall commence to run from the date of mailing of such notice.
A. 6754 184
11. Every person required to pay a fee for a license or a permit under
this section shall pay the same upon filing of the application with the
commission for such license or permit. The fee for such license or
permit shall be prorated for the fiscal year for which the same is paya-
ble as of the date the application for such license or permit is filed
with the commission. The commission shall prorate and make a refund of
such fee for the period between the date of application and the date of
the issuance of such license or permit. Upon surrender of such license
or permit or upon the revocation of any such license or permit issued to
an employee before the expiration of the fiscal year, the commission
shall make a refund prorated for the unexpired portion of the year, less
ten per cent of such refund. In the event of denial of any application
for a license or permit, the commission shall refund the fee paid upon
application, less ten per cent of such refund.
12. Whenever any person shall fail to pay, within the time limited
herein, any assessment or fee which he is required to pay to the commis-
sion under the provisions of this section the commission may enforce
payment of such assessment or fee by civil action for the amount of such
assessment or fee with interest and penalties.
13. The employment by a nonresident of a licensed person or permittee
for whom assessments or fees are payable in either state or the desig-
nation by a nonresident of a licensed person or permittee to perform
work in such state shall be deemed equivalent to an appointment by such
nonresident of the secretary of state of such state to be his true and
lawful attorney upon whom may be served the process in any action or
proceeding against him growing out of any liability for assessments or
fees, penalties or interest, and a consent that any such process against
him which is so served shall be of the same legal force and validity as
if served on him personally within such state and within the territorial
jurisdiction of the court from which the process issues. Service of
process within either state shall be made by either (1) personally
delivering to and leaving with the secretary of state or a deputy secre-
tary of state of such state duplicate copies thereof at the office of
the department of state in the capital city of such state, in which
event such secretary of state shall forthwith send by registered mail
one of such copies to the person at the last address designated by him
to the commission for any purpose under this section or in the last
return filed by him under this section with the commission or as shown
on the records of the commission, or if no return has been filed, at his
last known office address within or without such state, or (2)
personally delivering to and leaving with the secretary of state or a
deputy secretary of state of such state a copy thereof at the office of
the department of state in the capital city of such state and by deliv-
ering a copy thereof to the person, personally without such state.
Proof of such personal service without such state shall be filed with
the clerk of the court in which the process is pending within thirty
days after such service and such service shall be complete ten days
after proof thereof is filed.
14. Whenever the commission shall determine that any moneys received
as assessments or fees were paid in error, it may cause the same to be
refunded, provided an application therefor is filed with the commission
within two years from the time the erroneous payment was made.
15. In addition to any other powers authorized hereunder, the commis-
sion shall have power to make reasonable rules and regulations to effec-
tuate the purposes of this section.
A. 6754 185
16. When any person shall wilfully fail to pay any assessment or fee
due hereunder he shall be assessed interest at a rate of one per cent
per month on the amount due and unpaid and penalties of five per cent of
the amount due for each thirty days or part thereof that the assessment
remains unpaid. The commission may, for good cause shown, abate all or
part of such penalty.
17. Any person who shall wilfully furnish false or fraudulent infor-
mation or shall wilfully fail to furnish pertinent information as
required, with respect to the amount of any assessment or fee due, shall
be guilty of a misdemeanor, punishable by a fine of not more than one
thousand dollars, or imprisonment for not more than one year, or both.
18. All funds of the commission shall be deposited with such responsi-
ble banks or trust companies as may be designated by the commission.
The commission may require that all such deposits be secured by obli-
gations of the United States or of the states of New York or New Jersey
of a market value equal at all times to the amount of the deposits, and
all banks and trust companies are authorized to give such security for
such deposits. The moneys so deposited shall be withdrawn only by check
signed by two members of the commission or by such other officers or
employees of the commission as it may from time to time designate.
19. The accounts, books and records of the commission, including its
receipts, disbursements, contracts, leases, investments and any other
matters relating to its financial standing shall be examined and audited
annually by independent auditors to be retained for such purpose by the
commission.
20. The commission shall reimburse each state for any funds advanced
to the commission exclusive of sums appropriated pursuant to subdivision
five of this section.
§ 3310. General violations; prosecutions; penalties. 1. The failure
of any witness, when duly subpoenaed to attend, to give testimony or
produce other evidence in any investigation, interview or other proceed-
ing conducted by the commission pursuant to the provisions of this
compact, shall be punishable by the superior court in New Jersey and the
supreme court in New York in the same manner as said failure is punisha-
ble by such court in a case therein pending.
2. Any person who, having been duly sworn or affirmed as a witness in
any investigation, interview or other proceeding conducted by the
commission pursuant to the provisions of this compact, shall wilfully
give false testimony shall be guilty of a misdemeanor punishable by a
fine of not more than one thousand dollars or imprisonment for not more
than one year or both.
3. Any person who interferes with or impedes the orderly licensing of
or orderly granting of any permits to any other person pursuant to this
compact, or who attempts, conspires, or threatens so to do, shall be
guilty of a misdemeanor punishable by a fine of not more than one thou-
sand dollars or imprisonment for not more than one year or both.
4. Any person who directly or indirectly inflicts or threatens to
inflict any injury, damage, harm or loss or in any other manner prac-
tices intimidation upon or against any person in order to induce or
compel such person or any other person to refrain from obtaining a
license or permit pursuant to this compact shall be guilty of a misde-
meanor punishable by a fine of not more than one thousand dollars or
imprisonment for not more than one year or both.
5. Any person who, without justification or excuse in law, directly or
indirectly, intimidates or inflicts any injury, damage, harm, loss or
economic reprisal upon any person who holds a license or permit issued
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by the commission pursuant to this compact, or any other person, or
attempts, conspires or threatens so to do, in order to interfere with,
impede or influence such licensee or permittee in the performance or
discharge of his duties or obligations shall be guilty of a misdemeanor,
punishable by a fine of not more than one thousand dollars or imprison-
ment of not more than one year or both.
6. Any person who shall violate any of the provisions of this compact,
for which no other penalty is prescribed, shall be guilty of a misdemea-
nor, punishable by a fine of not more than one thousand dollars or by
imprisonment for not more than one year or both.
7. In any prosecution under this compact, it shall be sufficient to
prove only a single act (or a single holding out or attempt) prohibited
by law without having to prove a general course of conduct, in order to
prove a violation.
§ 3311. Amendments; construction; short title. 1. Amendments and
supplements to this compact to implement the purposes thereof may be
adopted by the action of the legislature of either state concurred in by
the legislature of the other.
2. If any part or provision of this compact or the application there-
of to any person or circumstances be adjudged invalid by any court of
competent jurisdiction, such judgment shall be confined in its operation
to the part, provision or application directly involved in the contro-
versy in which such judgment shall have been rendered and shall not
affect or impair the validity of the remainder of this compact or the
application thereof to other persons or circumstances and the two states
hereby declare that they would have entered into this compact or the
remainder thereof had the invalidity of such provision or application
thereof been apparent.
3. In accordance with the ordinary rules for construction of inter-
state compacts this compact shall be liberally construed to eliminate
the evils described therein and to effectuate the purposes thereof.
4. This compact shall be known and may be cited as the "Airport
Commission Compact".
PART V
OFFICERS AND EMPLOYEES;
CIVIL PENALTIES AND ENFORCEMENT
3401. Prohibition against unions having officers, agents or
employees who have been convicted of certain crimes and
offenses.
3402. Prohibition against employer organizations having offi-
cers, agents or employees who have been convicted of
certain crimes and offenses.
3403. Exceptions to sections thirty-four hundred one and thir-
ty-four hundred two of this part for certain employees.
3404. Civil penalties.
3405. Civil enforcement.
3406. Exemption from arrest and service of process.
3407. Nonresident witnesses.
3408. Officers and employees.
3409. Penalties.
3410. Short title.
§ 3401. Prohibition against unions having officers, agents or employ-
ees who have been convicted of certain crimes and offenses. No person
A. 6754 187
shall solicit, collect or receive any dues, assessments, levies, fines
or contributions, or other charges within the state for or on behalf of
any labor organization which receives, directly or indirectly, twenty
per cent or more of its dues, assessments, levies, fines or contrib-
utions, or other charges from persons who hold licenses issued by the
commission pursuant to the airport commission compact, or for or on
behalf of a labor organization which derives its charter from a labor
organization which receives, directly or indirectly, twenty per cent or
more of its dues, assessments, levies, fines or contributions, or other
charges from persons who hold licenses issued by the commission pursuant
to the airport commission compact, if any officer, agent or employee of
such labor organization, or of a welfare fund or trust administered
partially or entirely by such labor organization or by trustees or other
persons designated by such labor organization, has been convicted by a
court of the United States, or any state or territory thereof, of a
felony, any misdemeanor involving moral turpitude or any crime or
offense enumerated in subdivision (a) of subdivision three of section
thirty-three hundred five of this article, unless he has been subse-
quently pardoned therefor by the governor or other appropriate authority
of the state or jurisdiction in which such conviction was had or has
received a certificate of good conduct or other relief from disabili-
ties arising from the fact of conviction from a board of parole or simi-
lar authority. No person so convicted shall serve as an officer, agent
or employee of such labor organization, welfare fund or trust unless
such person has been so pardoned or has received such a certificate of
good conduct. No person, including such labor organization, welfare
fund or trust, shall knowingly permit such convicted person to assume or
hold any office, agency or employment in violation of this section.
As used in this section, the term "labor organization" shall mean and
include any organization which exists and is constituted for the purpose
in whole or in part of collective bargaining, or of dealing with employ-
ers concerning grievances, terms and conditions of employment, or of
other mutual aid or protection; but it shall not include a federation
or congress of labor organizations organized on a national or interna-
tional basis even though one of its constituent labor organizations may
represent persons who hold licenses issued by the commission pursuant to
the airport commission compact.
§ 3402. Prohibition against employer organizations having officers,
agents or employees who have been convicted of certain crimes and
offenses. No person shall solicit, collect or receive any dues, assess-
ments, levies, fines or contributions, or other charges within the state
for or on behalf of any organization of employers (whether incorporated
or not) twenty per cent or more of whose members have in their employ-
ment any employees who are members of a labor organization to which the
prohibition of section thirty-four hundred one of this part is applica-
ble, if any officer, agent or employee of such employer organization or
of a welfare fund or trust administered partially or entirely by such
employer organization or by trustees or other persons designated by such
employer organization, has been convicted by a court of the United
States, or any state or territory thereof, of a felony, any misdemeanor
involving moral turpitude or any crime or offense enumerated in para-
graph (a) of subdivision three of section thirty-three hundred five of
the compact established pursuant to part IV of this article, unless he
has been subsequently pardoned therefor by the governor or other appro-
priate authority of the state or jurisdiction in which such conviction
was had or has received a certificate of good conduct or other relief
A. 6754 188
from disabilities arising from the fact of conviction from a board of
parole or similar authority. No person so convicted shall serve as an
officer, agent or employee of such employer organization, welfare fund
or trust unless such person has been so pardoned or has received such a
certificate of good conduct. No person, including such employer organ-
ization, welfare fund or trust, shall knowingly permit such convicted
person to assume or hold any office, agency or employment in violation
of this section.
§ 3403. Exceptions to sections thirty-four hundred one and thirty-four
hundred two of this part for certain employees. If upon application to
the commission by an employee who has been convicted of a crime or
offense specified in section thirty-four hundred one or section thirty-
four hundred two of this part the commission, in its discretion, deter-
mines in an order that it would not be contrary to the purposes and
objectives of the airport commission compact for such employee to work
in a particular employment otherwise prohibited by section thirty-four
hundred one or section thirty-four hundred two, the provisions of
section thirty-four hundred one or section thirty-four hundred two, as
the case may be, shall not apply to the particular employment of such
employee with respect to such conviction or convictions as are specified
in the commission's order. This section is applicable only to those
employees who for wages or salary perform manual, mechanical or physical
work of a routine or clerical nature at the premises of the labor organ-
ization, employer organization, welfare fund or trust by which they are
employed.
§ 3404. Civil penalties. The commission may maintain a civil action
on behalf of the state against any person who violates or attempts or
conspires to violate any provision of this part or who fails, omits or
neglects to obey, observe or comply with any order or direction of the
commission issued under this part, to recover a judgment for a money
penalty not exceeding five hundred dollars for each and every offense.
Every violation of any such provision, order or direction shall be a
separate and distinct offense and, in case of a continuing violation,
every day's continuance shall be and be deemed to be a separate and
distinct offense. Any such action may be settled or discontinued on
application of the commission upon such terms as the court may approve
and a judgment may be rendered for an amount less than the amount
demanded in the complaint as justice may require.
§ 3405. Civil enforcement. The commission may maintain a civil action
against any person to compel compliance with any of the provisions of
this compact or any order or direction of the commission issued under
this compact or to prevent violations, attempts or conspiracies to
violate any such provisions, or interference, attempts or conspiracies
to interfere with or impede the enforcement of any such provisions or
the exercise or performance of any power or duty thereunder, either by
mandamus, injunction or action or proceeding in lieu of prerogative
writ.
§ 3406. Exemption from arrest and service of process. If a person in
obedience to a subpoena, issued pursuant to this part directing him to
attend and testify comes into either state party to this part from the
other state, he shall not, while in that state pursuant to such subpoe-
na, be subject to arrest or the service of process, civil or criminal,
in connection with matters which arose before his entrance into such
state under the subpoena.
§ 3407. Nonresident witnesses. Any investigation, interview or other
proceeding conducted by the commission pursuant to the provisions of
A. 6754 189
this compact shall be deemed to be a civil action pending in the supreme
court in New York or in the superior court in New Jersey so as to permit
the commission to obtain disclosure, in accordance with the provisions
governing disclosure in such civil actions, from any person who may be
outside the states.
§ 3408. Officers and employees. Any officer or employee in the state,
county or municipal civil service in either state who shall transfer to
service with the commission may be given one or more leaves of absence
without pay and may, before the expiration of such leave or leaves of
absence, and without further examination or qualification, return to his
former position or be certified by the appropriate civil service agency
for retransfer to a comparable position in such state, county, or munic-
ipal civil service if such a position is then available.
The commission may, by agreement with any federal agency from which
any officer or employee may transfer to service with the commission,
make similar provision for the retransfer of such officer or employee to
such federal agency.
Notwithstanding the provisions of any other law in either state, any
officer or employee in the state, county or municipal service in either
state who shall transfer to service with the commission and who is a
member of any existing state, county or municipal pension or retirement
system in New Jersey or New York, shall continue to have all rights,
privileges, obligations and status with respect to such fund, system or
systems as if he had continued in his state, county or municipal office
or employment, but during the period of his service as a member, officer
or employee of the commission, all contributions to any pension or
retirement fund or system to be paid by the employer on account of such
member, officer or employee, shall be paid by the commission. The
commission may, by agreement with the appropriate federal agency, make
similar provisions relating to continuance of retirement system member-
ship for any federal officer or employee so transferred.
§ 3409. Penalties. Any person who shall violate any of the provisions
of this compact, for which no other penalty is prescribed, shall be
guilty of a misdemeanor, punishable by a fine of not more than one thou-
sand dollars or imprisonment for not more than one year or both.
§ 3410. Short title. This part shall be known and may be cited as the
"Waterfront and airport commission act".
§ 31. Chapter 28 of the consolidated laws constituting the interstate
authorities law created by section thirty of this act shall be deemed
for all purposes to be a continuation of the port authority of New York
and New Jersey as it was constituted immediately preceding the effective
date of this act and shall not be construed as a newly created authori-
ty. All unexpended balances of appropriations of monies heretobefore
made or allocated to the port authority of New York and New Jersey as
such authority was constituted immediately preceding the effective date
of this act, whether obligated or unobligated, are hereby transferred to
and made available to the port authority of New York and New Jersey as
created in section thirty of this act. All rules, regulations, orders,
determinations, and decisions of the port authority of New York and New
Jersey, as it was constituted immediately preceding the effective date
of this act, shall continue in full force and effect as rules, regu-
lations, orders, determinations and decisions of the port authority of
New York and New Jersey created by section thirty of this act.
§ 32. Severability clause. If any clause, sentence, paragraph, subdi-
vision, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
A. 6754 190
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would have been enacted even if such
invalid provisions had not been included herein.
§ 33. This act shall take effect upon the enactment into law by the
state of New Jersey of legislation having an identical effect with this
act, but if the state of New Jersey shall have already enacted such
legislation this act shall take effect on the one hundred eightieth 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. The chairman of the
port authority shall notify the legislative bill drafting commission
upon the enactment into law of such legislation by both such states in
order that the commission may maintain an accurate and timely effective
data base of the official text of the laws of the state of New York in
furtherance of effecting the provision of section 44 of the legislative
law and section 70-b of the public officers law.
SUMMARY OF WATERFRONT COMMISSION ACT
Chapter 882 of the laws of 1953, effective June 30, 1953, authorizes a
Compact between the States of New Jersey and New York to improve water-
front labor conditions in the port of New York District, establishes a
bi-state commission to administer the plan, and provides that in the
interim, until Congress grants its consent to the Compact, the two
states may separately but cooperatively place the program in operation.
The Interim Arrangement
Since there may be some delay in procuring Congressional consent, the
statute in each State provides for a single-state commission to perform
within the State the functions of the bi-state commission until Congres-
sional approval to the Compact is obtained. The bill is so drafted that
the Commission will be able to function in each State from the time of
enactment of the bill.
Section 3 authorizes the Commissioners from each State to work in the
closest possible cooperation with each other to effectuate the purposes
of the Act.
The State of New York will advance $400,000 to the Commission and the
State of New Jersey, $200,000, to provide initial funds for the opera-
tion of the Commission.
The licensing, registration and employment center provisions of the
bill do not become operative until December 1, 1953.
The Compact
The proposed Compact is set forth in the sixteen articles which make
up Section 1 of the bill.
Legislative Findings
Article I contains legislative declarations and findings which reflect
the conclusions set forth in the Report of the New York State Crime
Commission on the port of New York Waterfront, the record of the public
A. 6754 191
hearings held thereon by Governor Thomas E. Dewey on June 8 and 9, 1953
and the companion report of the New Jersey Law Enforcement Council. In
substance the findings are that the methods now used in the Port of New
York District for hiring waterfront labor, and the conduct of the busi-
ness of public loading and stevedoring are uneconomic, unjust and
degrading insofar as the worker is concerned, foster waterfront crime
and corruption, and adversely affect the economical and expeditious
handling of port commerce. Accordingly, it is declared that the present
practices of public loaders must be eliminated and that the occupations
of stevedores, pier superintendents, hiring agents, pier watchmen and
longshoreman must be regulated in the public interest.
Basic Plan
The plan to improve waterfront labor conditions has five basic
features:
1. Licensing of pier superintendents and hiring agents,-only persons
of good character (convicted criminals are barred for at least five
years) will be licensed for these key positions. The license must be
requested by the employer concerned, is good only for the duration of
the employment and may be revoked for specified cause;
2. Licensing of stevedores and port watchmen;
3. The abolition of "public loading;"
4. Registration of longshoremen,-the right to register is absolute
unless the person had been convicted of a crime (but this disqualifica-
tion may be waived by the Commission) or is engaged in subversive activ-
ity or unless his employment on the waterfront is clearly likely to
endanger the public peace or safety. Longshoremen who are not attached
to the waterfront labor market may be dropped from the register under
specified conditions thus providing more and steadier work for and
increasing the earning capacity of those who depend on this work for
their livelihood;
5. Operation by the Commission of regionally located employment
exchanges for registered longshoremen and licensed port watchmen,
replacing the wasteful and inhuman "shape-up" method, providing informa-
tion as to available employment and flexibility in obtaining such
employment, but without interference with employer-employee freedom of
selection or with provisions of collective bargaining agreements.
The rights of licensees and registrants are carefully protected by
procedural safeguards set forth in Article XI including hearings, court
review and other requirements for the protection of the individual.
The Waterfront Commission
Article III creates the Waterfront Commission of New York Harbor. The
commission consists of two members, one from each State appointed by the
Governor with the consent of the Senate, to serve for a term of three
years. It is contemplated that they may be compensated either on a full
time or per diem basis dependent upon whether the office will be a poli-
cy making one with administration delegated to an Executive Director or
a full time executive assignment.
Appropriate provision is made for the transfer of civil service
employees to service with the Commission without loss of Civil Service
or retirement privileges.
The general powers of the Commission as set forth in Article IV are to
make rules and regulations to carry out the statutory plan, to adminis-
A. 6754 192
ter oaths and issue subpoenas, to have access to the waterfront in the
performance of its duties, to investigate waterfront practices in the
port district and to advise and consult with other public officers and
with representatives of labor and industry on matters within its juris-
diction, including problems involved in rule making, in the granting and
denial of registrations and licenses and in the maintenance of the
longshoremen's register. The Commission is required to report annually
to the Governors and Legislatures of both States and to make recommenda-
tions for the improvement of the conditions of waterfront labor within
the port district.
In order to insure that public regulation of waterfront labor prac-
tices shall no unnecessarily continue once law and order has been
restored to the waterfront, the Commission is expressly required to
include in its Annual Report findings as to whether the public necessity
still exists for continued registration of longshoremen, licensing of
the other waterfront occupations and public operation of the employment
information centers.
Licensing of Pier Superintendents and Hiring Agents
Article V requires that on and after December 1, 1953, any person who
wishes to act as a pier superintendent or hiring agent for a shipping
company or stevedore at a pier or other waterfront terminal within the
port district must be licensed. Because pier superintendents and hiring
agents are, or should be, key supervisory representatives of the employ-
er for whose acts the employer should be held responsible, the applica-
tion for these licenses is to be made by the prospective employer. A
person is disqualified for either of theses licenses if he has been
convicted of a felony or high misdemeanor or of the following violations
of law which, while less serious in themselves, make him a bad risk for
waterfront employment:-illegally using, carrying or possessing a danger-
ous weapon; making or possessing burglar's instruments; buying or
receiving stolen property; unlawful entry; aiding an escape from prison;
unlawfully possessing or distributing narcotic drugs and previous
violation of the Compact. However, if a person so disqualified submits
satisfactory evidence of good conduct for at least five years, the
Commission may waive this statutory disability.
Additional grounds for disqualification for a license as a pier super-
intendent or hiring agent include subversive activities by the applicant
or a finding that he is not a person of good character or integrity.
The term of a pier superintendent's or hiring agent's license is tied
to his employment by the employer-applicant. However, it may be revoked
or suspended or he may be reprimanded for the following specified caus-
es:-violation of the Compact; conviction of a crime or other cause which
would have been disqualifying originally; consorting with criminals for
an unlawful purpose; fraud in securing the license or while acting ther-
eunder; addition to or trafficking in narcotic drugs; violation of the
Compact; bribing public officers or anyone else to violate their duties
under the Compact; unwarranted giving of his license to someone else;
impersonation of another licensee; accepting a bribe in connection with
his work; coercion of longshoremen; lending money to or borrowing money
from a longshoreman for a fee.
Pier superintendents and hiring agents are ineligible for membership
in any union which represent longshoremen.
Stevedores
A. 6754 193
Article VI requires that on and after December 1, 1953 all stevedores
in the port district must be licensed. The license application must
fully disclose the real parties in interest. A license will be granted
if the Commission is satisfied as to the good character and integrity of
the real parties in interest and if the applicant is a bona fide steve-
dore, that is to say that he has, or will, if licensed, have a contract
with a shipping company to load and unload the company's ships at a pier
in this port.
Prior conviction of the same serious crimes which disqualify pier
superintendents and hiring agents also disqualify a stevedore. The
Commission is authorized to waive this disqualification upon a showing
of at least five years' good conduct. Additional grounds for disquali-
fication in the case of stevedores are prescribed to accord with the
Crime Commission's specific findings of abuses and evils now prevalent
in this industry. These include payments made for an improper or unlaw-
ful purpose and are designed to reach the payment of bribes to a shipper
to obtain a stevedoring contract or to a union representative to betray
his trust.
Public Loading
Article VII sets forth the States' policy against "public loading" and
reviews the compelling policy reasons for abolition of the public loader
system. Under the bill loading service will be performed in the port of
New York as it is in every other major American port-by water carriers;
operators of piers and other waterfront terminals at their own facili-
ties; railroads, truckers, and other carriers in connection with freight
being carried by them; shippers or consignees in connection with their
own freight; and licensed stevedores, in the regular course of business,
and through their own employees.
Longshoremen
A longshoremen's register is to be established by the Commission by
December 1, 1953. Article VIII sets forth the provisions with respect to
the registration of longshoremen.
There is no fee for registration and no special qualifications are
prescribed. The applicant must provide his name, address, social securi-
ty number and such further facts as may be needed to establish his iden-
tity and criminal record, if any.
Conviction of certain serious crimes or engaging in subversive activ-
ities is made basis for disqualification. The Commission, however, may
waive the disqualification in a proper case and it may register a long-
shoreman even though he has previously been convicted of a crime.
In the light of the Crime Commission's disclosures of the activities
of known waterfront gangsters who have so far escaped being convicted of
crime, provision has been inserted to permit the Commission to deny
registration as a longshoreman to a person "whose presence on the piers
or other waterfront terminals in the port of New York district is found
by the Commission, on the basis of the facts and evidence before it, to
constitute a danger to the public peace or safety."
A longshoreman may be removed or suspended from the register only for
specified cause. In such case he is entitled to a hearing before the
Commission, Counsel, his own witnesses, and court review. The causes
specified are similar to those specified for removal of hiring agents
A. 6754 194
and wilful acts involving physical injury to a person or damage to or
misappropriation of property at a waterfront terminal.
Article IX contains the provisions designed to permit purging the
longshoremen's register periodically of drifters and floaters who,
although they are not bona fide longshoremen, have been permitted under
the present system to take work away from longshoremen who depend on it
for their livelihood.
For each six month period, and in advance, the Commission will estab-
lish the minimum number of days a man must work or offer himself for
work as a longshoreman in order to stay on the register. A person fail-
ing so to qualify will be dropped on ten days' notice and cannot again
be registered for one year unless he can show that his absence was occa-
sioned by military service, sickness or other good cause.
Port Watchmen
Port watchmen will be licensed pursuant to Article X. Applicants must
not only possess qualifications similar to those prescribed for pier
superintendents, but must also meet reasonable standards of physical and
mental fitness. Since these port watchmen are security officers, prior
criminal convictions is an absolute bar to a license. Because of the
nature of their duties, port watchmen are not permitted to belong to the
same union as longshoremen or pier superintendents or hiring agents.
The term of the port watchmen's license is three years and is not tied
to a particular employment. The grounds for revocation or suspension are
basically the same as those for pier superintendents and hiring agents.
Hearings and Court Review
Article XI safeguards the rights of licensees and registrants by
prescribing procedures for Commission hearings and assuring court review
of Commission determinations. A registered longshoreman or any licensee
must be given notice of any charges made against him and is entitled to
a hearing at which he may have counsel and cross examine witnesses and
the licensee or longshoreman can require the Commission to subpoena
witnesses requested by him. At least ten days advance notice of such a
hearing must be provided.
The refusal to register a longshoreman or issue a license cannot be
effective until after opportunity has been afforded for such hearing and
any Commission determination affecting the right to work is subject to
court review. The reviewing court is granted power to stay the Commis-
sion's action for thirty days. No provision is incorporated in the bill
which makes refusal to testify or refusal to answer questions, without
other cause, grounds for refusing or rescinding a license or registra-
tion.
Employment Information Centers
Article XII authorizes the Commission to establish employment informa-
tion centers throughout the port district to replace the "shape-up". All
hiring of longshoremen and port watchmen will be through these publicly
operated centers. The employer would have freedom of choice in the
selection of employees at such centers but there would be no interfer-
ence with normal and proper hiring practices, including the gang or unit
system, or procedures established under collective bargaining agreements
not inconsistent with the requirements of the Compact. The Commission
A. 6754 195
will establish a system of records and communication with employers and
workers designed to provide the maximum possible information as to
available employment for longshoremen. The Commission is empowered to
obtain any Federal assistance that may be available under the Wagner-
Peyser Act for the operation of the employment centers.
Expenses of Administration
Article XIII and other sections of the act adopt the principle of
charging the cost of administration upon the basis of service received.
The Commission will prepare an annual budget of estimated expenses and
assess the cost, over federal or other contributions, against the
employers of the registered and licensed waterfront employees in propor-
tion to their gross annual payments to such employees. The rate of
assessment may not be more than two percent of the payroll payments.
Expenses of the Commission, in excess of amounts produced by two percent
payroll assessment will be met by the two States, proportionately, out
of general revenues. Until the Commission is jointly established by the
two States, or July 1, 1954, whichever is earlier, the rate will be one
and one-half percent in each State.
The budget of the Commission may be reduced or modified by the Gover-
nor of each State. In addition, the Commission may establish procedures
to enable employers to protest budget estimates and computations of the
rate of assessment.
It is felt that the savings to employers and consignees which may be
obtained through a reduction in pilferage, the elimination of "phantom"
employees from the payroll and other exactions and levies on commerce
will greatly exceed the cost of administration of the waterfront commis-
sion program.
Violations
Article XIV concerns general violations of the Compact and prose-
cutions and penalties therefor. Contempt is made punishable in accord-
ance with normal judicial process. Wilful, false statements under oath
are constituted as perjury and other violations of the Compact or
attempts or conspiracies to violate it are made punishable as is inter-
ference with the orderly registration of longshoremen.
The statute also prohibits loitering on the waterfront without satis-
factory explanation. The language for this section is taken from compa-
rable provisions of law which presently apply to subways, railroads, air
and bus terminals.
Section 8 prohibits the collection of funds for waterfront labor
unions having officers or agents who are convicted felons unless they
have been subsequently pardoned or have received in the State of New
York a certificate of good conduct.
Collective Bargaining Safeguarded
There is nothing in the statute which is designed or can reasonably be
construed to interfere in any way with the right of the waterfront
industry to select its own employees, or with the right of industry and
labor to bargain collectively and agree on any method for the selection
of longshoremen and port watchmen by way of seniority, experience, regu-
lar gangs or otherwise in conformity with the license, registration and
employment information center provisions of the statute. Because of the
A. 6754 196
apparent misunderstanding of this point reflected at the public hear-
ings, express declaration to this effect has been included as Article XV
in the Compact.
Similarly, to obviate any misunderstanding, Article XV includes an
express statement that the statute is not designed and shall not be
construed to limit labor's rights.
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