S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5514
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               March 9, 2021
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Corporations,  Authorities
   and Commissions
 
 AN  ACT  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.
                                                            LBD10078-01-1

 S. 5514                             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.

 S. 5514                             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-A of the  consolidated  laws  is  added  to  read  as
 follows:
 
                   CHAPTER 28-A OF THE CONSOLIDATED LAWS
                        INTERSTATE AUTHORITIES LAW

 S. 5514                             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)

 S. 5514                             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

 S. 5514                             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.

 S. 5514                             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

 S. 5514                             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

 S. 5514                             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.

 S. 5514                            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.

 S. 5514                            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.

 S. 5514                            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

 S. 5514                            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.

 S. 5514                            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

 S. 5514                            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.

 S. 5514                            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.

 S. 5514                            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

 S. 5514                            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

 S. 5514                            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

 S. 5514                            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

 S. 5514                            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

 S. 5514                            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

 S. 5514                            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

 S. 5514                            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

 S. 5514                            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;

 S. 5514                            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

 S. 5514                            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.

 S. 5514                            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.

 S. 5514                            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

 S. 5514                            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-

 S. 5514                            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

 S. 5514                            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.

 S. 5514                            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

 S. 5514                            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

 S. 5514                            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

 S. 5514                            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

 S. 5514                            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

 S. 5514                            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,

 S. 5514                            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,

 S. 5514                            40

 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,

 S. 5514                            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.

 S. 5514                            42
 
   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

 S. 5514                            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

 S. 5514                            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

 S. 5514                            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

 S. 5514                            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

 S. 5514                            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

 S. 5514                            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,

 S. 5514                            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

 S. 5514                            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

 S. 5514                            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

 S. 5514                            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

 S. 5514                            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-

 S. 5514                            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.

 S. 5514                            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

 S. 5514                            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-

 S. 5514                            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

 S. 5514                            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-

 S. 5514                            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.

 S. 5514                            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.

 S. 5514                            61
 
   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-

 S. 5514                            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

 S. 5514                            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

 S. 5514                            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

 S. 5514                            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

 S. 5514                            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

 S. 5514                            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.

 S. 5514                            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-

 S. 5514                            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

 S. 5514                            70
 
 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

 S. 5514                            71
 
 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.

 S. 5514                            72
 
   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

 S. 5514                            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

 S. 5514                            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  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

 S. 5514                            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

 S. 5514                            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.

 S. 5514                            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

 S. 5514                            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

 S. 5514                            79
 
 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,

 S. 5514                            80
 
 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.

 S. 5514                            81
 
   § 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.

 S. 5514                            82
 
   § 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

 S. 5514                            83
 
 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

 S. 5514                            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

 S. 5514                            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-

 S. 5514                            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.

 S. 5514                            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.

 S. 5514                            88
 
                                 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

 S. 5514                            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

 S. 5514                            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.

 S. 5514                            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;

 S. 5514                            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

 S. 5514                            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

 S. 5514                            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,

 S. 5514                            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

 S. 5514                            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

 S. 5514                            97

 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

 S. 5514                            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

 S. 5514                            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-

 S. 5514                            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-

 S. 5514                            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

 S. 5514                            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

 S. 5514                            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,

 S. 5514                            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

 S. 5514                            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

 S. 5514                            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.

 S. 5514                            107
 
   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

 S. 5514                            108
 
 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

 S. 5514                            109
 
 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.

 S. 5514                            110
 
   (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

 S. 5514                            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

 S. 5514                            112
 
 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

 S. 5514                            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

 S. 5514                            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,

 S. 5514                            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;

 S. 5514                            116
 
   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;

 S. 5514                            117
 
   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

 S. 5514                            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

 S. 5514                            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

 S. 5514                            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

 S. 5514                            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

 S. 5514                            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:

 S. 5514                            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

 S. 5514                            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-

 S. 5514                            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-

 S. 5514                            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

 S. 5514                            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

 S. 5514                            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

 S. 5514                            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.

 S. 5514                            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

 S. 5514                            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.

 S. 5514                            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

 S. 5514                            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,

 S. 5514                            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.

 S. 5514                            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 part shall take effect immediately.
                                ARTICLE II
           THE WATERFRONT AND AIRPORT COMMISSION OF NEW YORK AND
                            NEW JERSEY COMPACT
                                  PART I

 S. 5514                            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-

 S. 5514                            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

 S. 5514                            138
 
   (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

 S. 5514                            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;

 S. 5514                            140

   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

 S. 5514                            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);

 S. 5514                            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-

 S. 5514                            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

 S. 5514                            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

 S. 5514                            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;

 S. 5514                            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-

 S. 5514                            147
 
 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;

 S. 5514                            148
 
   (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)  through  (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

 S. 5514                            149
 
 shall  be  given  an opportunity to be heard, provided that any order of
 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

 S. 5514                            150
 
 joinder in unauthorized labor disturbances and  criminal  activities  on
 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

 S. 5514                            151
 
 assessment  and  shall  compute a rate thereon which will yield revenues
 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

 S. 5514                            152
 
 two  states by action of the legislature of either state concurred in by
 the legislature of the other.
   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.

 S. 5514                            153
 
         3111. Denial of applications.
         3112. Revocation of licenses and registrations.
         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

 S. 5514                            154
 
 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 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

 S. 5514                            155
 
 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.
   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:

 S. 5514                            156

   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

 S. 5514                            157
 
 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

 S. 5514                            158
 
 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

 S. 5514                            159
 
 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, 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, and federal criminal history information from the federal
 bureau of investigation for the purposes of this subdivision and  subdi-
 visions 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.

 S. 5514                            160

   § 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

 S. 5514                            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

 S. 5514                            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;

 S. 5514                            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;

 S. 5514                            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.

 S. 5514                            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-

 S. 5514                            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;

 S. 5514                            167
 
   (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-

 S. 5514                            168
 
 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

 S. 5514                            169
 
 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

 S. 5514                            170
 
 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

 S. 5514                            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.

 S. 5514                            172
 
   § 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,

 S. 5514                            173
 
 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.

 S. 5514                            174
 
   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-

 S. 5514                            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

 S. 5514                            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

 S. 5514                            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

 S. 5514                            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-

 S. 5514                            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.

 S. 5514                            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

 S. 5514                            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

 S. 5514                            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.

 S. 5514                            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.

 S. 5514                            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.

 S. 5514                            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

 S. 5514                            186
 
 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

 S. 5514                            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

 S. 5514                            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

 S. 5514                            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,

 S. 5514                            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

 S. 5514                            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-

 S. 5514                            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

 S. 5514                            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

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 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

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 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

 S. 5514                            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.