S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5741
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              March 17, 2021
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Procurement and Contracts
 
 AN ACT to amend the public authorities law, in  relation  to  the  regu-
   lation of bus privatization contracts
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1.  Legislative  intent.  The  legislature  hereby  finds  and
 declares  that  decisions  to  use private contractors to provide public
 transportation service must be based on factors which promote the public
 interest. To ensure that citizens of  the  state  receive  high  quality
 transit  services  at low cost, with due regard for the taxpayers of the
 state and the needs of public and private workers, the legislature finds
 it necessary to regulate such privatization contracts.
   § 2. The public authorities law is amended by  adding  a  new  section
 2875-c to read as follows:
   §  2875-C.  REGULATION  OF PRIVATIZATION CONTRACTS. 1. DEFINITIONS. AS
 USED IN THIS SECTION, THE FOLLOWING WORDS SHALL HAVE THE FOLLOWING MEAN-
 INGS:
   A. "PUBLIC TRANSPORTATION SYSTEM" MEANS ANY  PASSENGER  TRANSPORTATION
 SERVICE PROVIDED BY BUS, WHICH, DURING ITS HOURS OF OPERATION, IS AVAIL-
 ABLE ON AN EQUAL OPPORTUNITY BASIS TO ANY PERSON, WITHOUT PREFERENCE FOR
 SERVICE AVAILABILITY, ELIGIBILITY OR DESIGN BEING GIVEN TO ANY PERSON OR
 POPULATION  SUB-GROUP  BECAUSE  OF  AGE,  GENDER, RACE, NATIONAL ORIGIN,
 CREED OR AGENCY CLIENT STATUS, AND WHICH  IS  REGULARLY  ADVERTISED  AND
 MARKETED  AS  AVAILABLE  TO  THE GENERAL PUBLIC. NOTHING IN THIS ARTICLE
 SHALL BE DEEMED TO MEAN THAT THE  TRANSPORTATION  SERVICES  OPERATED  OR
 PROVIDED BY HUMAN OR SOCIAL SERVICE AGENCIES SOLELY FOR THEIR CLIENTS OR
 PROGRAMS   CONSTITUTE,  IN  AND  OF  THEMSELVES,  PUBLIC  TRANSPORTATION
 SERVICES.
   B. "PRIVATIZATION CONTRACT" SHALL MEAN AN AGREEMENT OR COMBINATION  OR
 SERIES  OF  AGREEMENTS BY WHICH A PRIVATE PERSON OR ENTITY AGREES WITH A
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06549-01-1

 S. 5741                             2
 
 PUBLIC TRANSPORTATION SYSTEM TO PROVIDE SERVICES, VALUED AT ONE  HUNDRED
 THOUSAND DOLLARS OR MORE, WHICH ARE SUBSTANTIALLY SIMILAR TO AND IN LIEU
 OF,  SERVICES  HERETOFORE  PROVIDED,  IN  WHOLE  OR  IN PART, BY REGULAR
 EMPLOYEES  OF  THE  PUBLIC TRANSPORTATION SYSTEM. AN AGREEMENT SOLELY TO
 PROVIDE LEGAL, MANAGEMENT CONSULTING, PLANNING,  ENGINEERING  OR  DESIGN
 SERVICES SHALL NOT BE CONSIDERED A PRIVATIZATION CONTRACT.
   2.  REQUIREMENTS. A. A PUBLIC TRANSPORTATION SYSTEM SHALL NOT MAKE ANY
 PRIVATIZATION CONTRACT AND NO SUCH CONTRACT SHALL BE  VALID  UNLESS  THE
 PUBLIC  TRANSPORTATION  SYSTEM  COMPLIES  WITH  EACH  OF  THE  FOLLOWING
 REQUIREMENTS:
   (1) THE PUBLIC TRANSPORTATION SYSTEM SHALL PREPARE A SPECIFIC  WRITTEN
 STATEMENT  OF  THE SERVICES PROPOSED TO BE THE SUBJECT OF THE PRIVATIZA-
 TION CONTRACT, INCLUDING THE SPECIFIC QUANTITY AND STANDARD  OF  QUALITY
 OF THE SUBJECT SERVICES;
   (2)  THE  PUBLIC  TRANSPORTATION  SYSTEM  SHALL INCLUDE IN THE WRITTEN
 STATEMENT A SUMMARY OF THE EMPLOYEES'  SALARIES,  PENSION  BENEFITS  AND
 HEALTH CARE COVERAGE AND HOW THOSE SALARIES, PENSION BENEFITS AND HEALTH
 CARE COVERAGE WILL BE AFFECTED BY THE PRIVATIZATION CONTRACT;
   (3)  THE  ORGANIZATION  SHALL  SOLICIT COMPETITIVE SEALED BIDS FOR THE
 PRIVATIZATION CONTRACTS BASED UPON THIS STATEMENT;
   (4) THE DAY DESIGNATED BY THE PUBLIC TRANSPORTATION SYSTEM UPON  WHICH
 IT  WILL  ACCEPT  THESE  SEALED  BIDS  SHALL BE THE SAME FOR ANY AND ALL
 PARTIES;
   (5) THIS STATEMENT SHALL BE A PUBLIC RECORD, SHALL  BE  FILED  AT  THE
 PUBLIC  TRANSPORTATION  SYSTEM,  AND  SHALL  BE TRANSMITTED TO THE STATE
 COMPTROLLER FOR REVIEW PURSUANT TO SUBDIVISION THREE OF THIS SECTION;
   (6) THE TERM OF ANY PRIVATIZATION  CONTRACT  SHALL  NOT  EXCEED  THREE
 YEARS; AND
   (7)  NO AMENDMENT TO A PRIVATIZATION CONTRACT SHALL BE VALID IF IT HAS
 THE PURPOSE OR EFFECT OF AVOIDING ANY REQUIREMENT OF THIS SECTION.
   B. AFTER SOLICITING AND  RECEIVING  BIDS,  THE  PUBLIC  TRANSPORTATION
 SYSTEM SHALL PUBLICLY DESIGNATE THE BIDDER TO WHICH IT PROPOSES TO AWARD
 THE  CONTRACT.  THE PUBLIC TRANSPORTATION SYSTEM SHALL PREPARE A COMPRE-
 HENSIVE WRITTEN ANALYSIS OF THE CONTRACT COST BASED UPON THE  DESIGNATED
 BID,  SPECIFICALLY  INCLUDING  THE  COSTS  OF  TRANSITION FROM PUBLIC TO
 PRIVATE OPERATION, OF ADDITIONAL UNEMPLOYMENT AND  RETIREMENT  BENEFITS,
 IF  ANY, AND OF MONITORING AND OTHERWISE ADMINISTERING CONTRACT PERFORM-
 ANCE. IF THE DESIGNATED BIDDER IS HEADQUARTERED OUTSIDE THE STATE,  SAID
 CONTRACT COST SHALL BE INCREASED BY THE AMOUNT OF INCOME TAX REVENUE, IF
 ANY, WHICH WILL BE LOST TO THE STATE.
   C.  THE  PUBLIC  TRANSPORTATION  SYSTEM  SHALL  PROVIDE  A COPY OF THE
 PROPOSED PRIVATIZATION CONTRACT AS WELL AS CERTIFY  IN  WRITING  TO  THE
 STATE COMPTROLLER THAT:
   (1)  IT  HAS  COMPLIED  WITH ALL PROVISIONS OF THIS SECTION AND OF ALL
 OTHER APPLICABLE LAWS;
   (2) THE QUALITY OF THE PUBLIC TRANSPORTATION SERVICES TO  BE  PROVIDED
 BY  THE  DESIGNATED BIDDER IS LIKELY TO SATISFY THE QUALITY REQUIREMENTS
 OF THE STATEMENT PREPARED PURSUANT TO SUBPARAGRAPH ONE OF PARAGRAPH A OF
 THIS SUBDIVISION AND TO EQUAL OR EXCEED THE QUALITY  OF  SERVICES  WHICH
 COULD BE PROVIDED BY REGULAR PUBLIC TRANSPORTATION SYSTEM EMPLOYEES;
   (3)  THE  CONTRACT COST WILL BE AT LEAST FIFTEEN PERCENT LESS THAN THE
 ESTIMATED CURRENT YEAR COST OF THE PUBLIC SYSTEM;
   (4) THE DESIGNATED BIDDER AND ITS SUPERVISORY EMPLOYEES, WHILE IN  THE
 EMPLOY OF SAID DESIGNATED BIDDER, HAVE NO ADJUDICATED RECORD OF SUBSTAN-
 TIAL  OR  REPEATED  WILLFUL  NONCOMPLIANCE  WITH ANY RELEVANT FEDERAL OR
 STATE  REGULATORY  STATUTE  INCLUDING,  BUT  NOT  LIMITED  TO,  STATUTES

 S. 5741                             3
 
 CONCERNING LABOR RELATIONS, OCCUPATIONAL SAFETY AND HEALTH, NONDISCRIMI-
 NATION AND AFFIRMATIVE ACTION, ENVIRONMENTAL PROTECTION AND CONFLICTS OF
 INTEREST;
   (5)  THE PROPOSED PRIVATIZATION CONTRACT IS IN THE PUBLIC INTEREST, IN
 THAT IT MEETS THE APPLICABLE QUALITY  AND  FISCAL  STANDARDS  SET  FORTH
 HEREIN; AND
   (6) THE CONTRACT IS IN CONFORMANCE WITH THE PROVISIONS OF ANY APPLICA-
 BLE COLLECTIVE BARGAINING AGREEMENT AND SUBJECT TO THE PROVISIONS OF ANY
 EMPLOYEE PROTECTION ARRANGEMENTS ESTABLISHED UNDER 49 U.S.C. 5333(B).
   3.  REVIEW  BY  STATE  COMPTROLLER; APPROVAL OR OBJECTION; PROCEDURES;
 PROMULGATION OF REGULATIONS. A. NO PRIVATIZATION CONTRACT SHALL BE VALID
 IF WITHIN THIRTY BUSINESS DAYS AFTER RECEIVING  THE  CERTIFICATION  FROM
 THE  PUBLIC  TRANSPORTATION  SYSTEM,  THE STATE COMPTROLLER NOTIFIES THE
 PUBLIC TRANSPORTATION SYSTEM OF ITS OBJECTION. SUCH OBJECTION  SHALL  BE
 IN  WRITING AND SHALL STATE SPECIFICALLY THE STATE COMPTROLLER'S FINDING
 THAT THE PUBLIC TRANSPORTATION SYSTEM HAS FAILED TO COMPLY WITH  ONE  OR
 MORE REQUIREMENT FOR PRIVATIZATION, INCLUDING THAT THE STATE COMPTROLLER
 FINDS  INCORRECT, BASED ON INDEPENDENT REVIEW OF ALL THE RELEVANT FACTS,
 ANY OF THE FINDINGS REACHED BY THE  PUBLIC  TRANSPORTATION  SYSTEM.  THE
 STATE  COMPTROLLER  MAY  EXTEND THE TIME FOR SUCH OBJECTION FOR AN ADDI-
 TIONAL PERIOD OF THIRTY BUSINESS DAYS BEYOND THE ORIGINAL  THIRTY  BUSI-
 NESS DAYS BY WRITTEN NOTICE TO THE PUBLIC TRANSPORTATION SYSTEM, STATING
 THE REASON FOR SUCH EXTENSION.
   B.  FOR  THE  PURPOSE  OF REVIEWING THE PUBLIC TRANSPORTATION SYSTEM'S
 COMPLIANCE AND CERTIFICATION, THE STATE COMPTROLLER OR HIS OR HER DESIG-
 NEE MAY REQUIRE BY SUMMONS THE ATTENDANCE AND TESTIMONY  UNDER  OATH  OF
 WITNESSES AND THE PRODUCTION OF BOOKS, PAPERS AND OTHER RECORDS RELATING
 TO SUCH REVIEW.
   C.  THE STATE COMPTROLLER MAY ADOPT REGULATIONS AND PRESCRIBE FORMS TO
 CARRY OUT THE PROVISIONS OF THIS SECTION.
   D. THE OBJECTION OF THE STATE COMPTROLLER PURSUANT TO PARAGRAPH  A  OF
 THIS SUBDIVISION SHALL BE FINAL AND BINDING ON THE PUBLIC TRANSPORTATION
 SYSTEM, UNLESS THE STATE COMPTROLLER THEREAFTER IN WRITING WITHDRAWS THE
 OBJECTION,  STATING  THE  SPECIFIC REASONS, BASED UPON A REVISED CERTIF-
 ICATION BY THE PUBLIC TRANSPORTATION SYSTEM AND  UPON  THE  STATE  COMP-
 TROLLER'S REVIEW THEREOF.
   §  3.  This  act shall take effect on the ninetieth day after it shall
 have become a law.