Bill > S3918

Introduced Session

This bill establishes the Gateway Development Commission ("GDC") for the primary purpose of constructing the transportation projects known as the Gateway Program. The Gateway Program is intended to maintain and increase passenger rail capacity, reliability, safety, and security between New Jersey and New York and consists of the following component projects: the Hudson Tunnel project; the Portal North Bridge project; the Portal South Bridge project; the Hudson Yards right-of-way preservation project; the Sawtooth Bridge replacement project; the Moynihan Station construction and Penn Station rehabilitation project; the Secaucus Loop project; the Secaucus Junction renovation and expansion project; and the Penn Station South project. Purposes The purposes of the GDC are to facilitate the Gateway Program, serve the mutual interests of New Jersey, New York, and the National Railroad Passenger Corporation ("Amtrak"), act as a lead agency to facilitate the Gateway Program, pursue efforts to assist federal and state agencies and other entities to further passenger rail transportation between the two states, and to take any and all actions that may be necessary or appropriate to qualify for financial assistance, loans, grants, or other funding that may be available for the Gateway Program. Commission membership The GDC is to consist of nine commissioners, with three commissioners appointed by New York, three commissioners appointed by New Jersey, and three commissioners appointed by Amtrak. Commissioners are required to take and subscribe an oath of office, execute a commissioner's statement, and participate in board training. The bill establishes requirements for when commissioners are required to recuse themselves from GDC actions and requires the commissioners from New York and New Jersey to file annual financial disclosure statements consistent with the state law from which the commissioner is appointed. Organization of the commission The chairperson of the GDC is to serve from among the members appointed by New York and New Jersey with the chairpersonship alternating between the two states on an annual basis. Which commissioner serves as chairperson is to be determined by the laws of each respective state. A member appointed by Amtrak is to serve as the vice chairperson. The powers of the GDC may be exercised by the commissioners at a meeting duly noticed and held where a majority of commissioners are present. New Jersey, New York, and Amtrak each possess one collective vote, which is to be cast in accordance with the laws of New Jersey, the laws of New York, and as determined by Amtrak, respectively. Under the bill, the New Jersey vote may be cast only upon the affirmative vote of two New Jersey commissioners. Action may be taken and motions and resolutions adopted by the GDC only through the unanimous affirmative vote of each party to the GDC. The bill provides that each state may provide for a gubernatorial veto over any action of any commissioner appointed therefrom. The bill provides that the Governor of New Jersey has 10 business days after the meeting minutes are provided to the Governor to review actions taken at a GDC meeting. During that 10-day period, the Governor may approve the meeting minutes or may veto any action therein recited as having been taken by any New Jersey commissioner. If the Governor does not return the meeting minutes within 10 days, the minutes are deemed approved. Transparency and accountability measures The GDC is required to establish a committee structure that includes at least responsibilities concerning governance, audits, and finance. The GDC is required to adopt bylaws, rules, and regulations concerning the right of the public to be present at meetings of the GDC and to obtain records of the GDC. The GDC is required to adopt a mission statement that the GDC's mission is to serve the mutual interests of the state of New Jersey, state of New York, and Amtrak by facilitating the Gateway Program. The GDC is required to adopt a code of conduct, establish a whistleblower access and assistance program, establish a policy concerning contact with lobbyists for commissioners, officers, and employees with decision-making authority, and have an efficiency study of the GDC conducted by an independent entity at least every three years. The bill provides for duties and powers of an inspector general, who is responsible for receiving and investigating all complaints regarding fraud, waste, and abuse by commissioners, officers, and employees of the GDC. The inspector general is empowered to: administer oaths and examine witnesses; require the production of any books and papers deemed relevant or material to an investigation; examine, copy, or remove GDC documents or records; interview officers and employees of the GDC; monitor the implementation of any inspector general recommendations; and perform any other functions that are necessary or appropriate. All meetings of the GDC are required to be open to the public and members of the news media, except for when the GDC meets in executive session. The bill provides for specific exceptions to the requirement that the meeting be open to the public. Meeting agendas are required to be made available to the public at least 72 hours before a meeting and public notice of the time and place of the meeting is required to be provided to media outlets and conspicuously posted in designated areas and on the GDC's website at least five days before the meeting. The public is reserved at least 30 minutes at each board meeting to speak on any topic on an agenda. The GDC is required to keep reasonably comprehensible minutes of all meetings and to make those minutes available on its website within two weeks from the date of the meeting. The GDC is required to make all reasonable efforts to ensure that meetings are held in facilities that permit barrier-free physical access to people with disabilities. The bill subjects the GDC to the New York freedom of information law for requests filed in New York and to the New Jersey open public records law for requests filed in New Jersey. The GDC is required to appear before a committee of the legislative houses of each state upon request from that house's presiding officer. Each legislative house is entitled to require two such appearances in each calendar year. The bill specifies which officers are required to appear, unless otherwise agreed to by the presiding officer of the legislative house making the request. Duties of the GDC The duties of the GDC are to: (1) make appropriate application for, and act as a coordinating, distributing, or recipient agency for funding and authorizations necessary or appropriate to facilitate the Gateway Program; (2) serve as the lead agency responsible for cooperating with various entities to facilitate the Gateway Program; (3) adopt bylaws and make appropriate orders to carry out and discharge its powers, duties, and functions; (4) expend funds and hold and prudently invest funds; (5) recommend appropriate federal, state, and local government legislation and agency administrative action pertaining to the Gateway Program; (6) prepare a report with details on the progress on GDC activities and information on the financial and construction plan for the following two fiscal years, which is subject to approval by the two legislatures; and (7) take any other action as may be necessary or appropriate to further the purposes of the GDC. Powers of the GDC The powers of the GDC are to: (1) facilitate the Gateway Program through contracts and agreements and other documents and instruments, provided that the GDC complies with workers compensation, prevailing wage, and other labor laws in each respective state; (2) sue and be sued; (3) accept and expend funds; (4) acquire property, including by condemnation, and, solely in furtherance of the purposes of the GDC, manage that property and develop undeveloped property necessary or appropriate to facilitate the Gateway Program; (5) make, procure, enter into, execute, and deliver contracts; (6) make applications for and accept funding, permits, authorizations, and approvals as may be necessary to facilitate the Gateway Program; (7) enter into agreements with a private entity or entities to facilitate the Gateway Program; (8) adopt its own public procurement rules and guidelines; (9) coordinate with entities from each or both states to issue or guarantee bonds, notes, or other evidence of indebtedness, enter into loan agreements and otherwise borrow funds, or incur indebtedness; (10) acquire and hold securities for investment purposes; (11) appoint officers and employees; (12) obtain insurance; (13) cooperate with governmental entities or private entities; (14) indemnify individuals and entities to the extent required to facilitate the Gateway Program; (15) establish or acquire subsidiaries as required to facilitate the Gateway Program; (16) utilize the existing labor force in the states and foster labor harmony in allowing for adoption of efficient labor work rules and practices during construction of the Gateway Program; and (17) exercise all other powers as may be necessary or appropriate. Financial reporting and audit and financial statements The bill requires the GDC to publish a comprehensive annual financial report to be submitted annually to the governors and state legislatures within 120 days of the end of the GDC's fiscal year. The annual report is required to include the GDC's financial statements, statistical and other regional data, a narrative of the GDC's activities during the year, and other information. The GDC is required to prepare financial statements on an annual basis in accordance with generally accepted accounting principles and the accounting standards issued by the governmental accounting standards board. The bill requires the financial statements to be audited by an independent firm of certified public accountants and establishes requirements concerning the financial audit. Contracting The bill establishes requirements for contracts for the GDC, which include requirements for specifications, grounds for cancellation of a contract, disqualification to contract with the GDC, removal of disqualification of public contractors by petition, a statement of non-collusion to be included in bids and proposals, and requirements concerning minority-owned and women-owned businesses and New York and New Jersey business enterprises. The bill also subjects the GDC contracts to approval by each state's comptroller in accordance with the powers provided to each respective state comptroller pursuant to state law. Subsidiaries No less than 60 days prior to the formation of a subsidiary, the GDC is required to provide notice to the governor of each state and certain members of each state's legislatures. The creation of a subsidiary corporation is subject to approval by the board. Within 60 days of the effective date of the bill, and on or before the first day of January of each year annually thereafter, any subsidiary corporation, in cooperation with the GDC, is required to provide to the governor and legislature of each state a report on the subsidiary corporation containing information required under the bill. Sixty days prior to the issuance of any debt by the subsidiary, or the GDC on behalf of the subsidiary, the GDC is required to provide notice to the same individuals required to receive notice for the formation of a subsidiary. Property disposition The bill provides certain requirements for the disposition of property owned by the GDC. Any sale of real property is to be undertaken and conducted pursuant to the provisions of the existing laws governing the sale of real property in the state in which the real property is located and by approval of the board. The GDC is not permitted to dispose of real property unless an appraisal of the value of the real property has been made by an independent appraiser and the appraisal is included in the record of the transaction. The GDC is not permitted to sell, lease, or otherwise alienate property for less than fair market value unless: the transferee is a government entity 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 the purpose of the transfer is within the purpose, mission, or governing statute of the GDC and a written determination is made by the board that there is no reasonable alternative to the proposed below-market transfer that would achieve the same purpose, prior to board approval of the transfer. The bill requires the board to adopt rules and regulations concerning disposition, acquisition, and transfer of real property or any interest in real property which, at a minimum, includes a requirement that certain information be made available to the board at the meeting where approval is scheduled. Not less than 10 days in advance of any meeting of the board at which the board is to consider an action to authorize the sale of real property, the chief executive officer is required to provide public notice of the proposed action along with relevant material terms and provisions of the sale by posting the information on the GDC's website. The chief executive officer may authorize or arrange for contracts for the sale of personal property owned by the GDC upon terms and conditions as the chief executive officer deems proper and execute the contract on behalf of the GDC where the value of the personal property is not in excess of $1,000,000; provided, however, that personal property valued at more than $250,000 is not to be sold under the authority of the chief executive officer other than to the highest bidder after public advertisement. Where the value of the personal property is in excess of $1,000,000, the sale of the property is dependent on authorization by the board. Exemption from taxes and other laws The bill provides that the GDC is not required to pay taxes or assessments of any character levied by either state or any local government upon any property used by the GDC, its agents, or its contractors for facilitation of the Gateway Program or any income or revenue therefrom. The bill requires the GDC to, as a matter of policy, conform to various laws in regard to the construction and maintenance of the Gateway Program and in regard to health and fire protection to the extent that the GDC finds doing so is practicable. Consent to suit The state of New York and state of New Jersey consent to suits, actions, or proceedings against the GDC except as specifically provided in the bill. The consent does not apply to: (1) causes of action accruing before the effective date of the bill; (2) causes of action arising out of any contract entered into or assumed by or assigned to the GDC before the effective date of the bill; (3) civil suits, actions, or proceedings for the recovery of statutory penalties; and (4) suits, actions, or proceedings for judgments, orders, or decrees restraining, enjoining, or preventing the GDC from committing or continuing to commit any acts, except for suits brought by each state's Attorney General. The GDC is declared immune from liability in the state of New Jersey in the same manner that the state itself is immune from liability under the "New Jersey Tort Claims Act" and "New Jersey Contractual Liability Act." Dissolution The GDC is required to dissolve on the first day of the 36th month following the completion of the Gateway Program, provided that plans have been adopted for the transfer of the component projects and repayment of or arrangement for the full repayment of any bonds or other securities or other debt incurred for Gateway Program purposes without the impairment of the creditworthiness of either state and that any entity receiving a component project enter into an agreement concerning responsibility for the maintenance and upkeep of the relevant component project. The bill provides that Amtrak may not be unduly prejudiced by the dissolution. The bill authorizes the governors of both states to jointly determine that dissolution of the GDC on the required date is impractical and to extend the dissolution for one year to the first day of the 48th month following completion of the Gateway Program in order to resolve any issues concerning transfer of component projects, resolution of outstanding debt, or to remedy any undue prejudice to Amtrak. The bill provides that the GDC is prohibited from remaining in existence beyond the first day of the 48th month following completion of the Gateway Program. Amendment to the agreement The bill provides that the states may amend the agreement through the action of one legislature concurred in by the legislature of the other state. New Jersey commissioners The bill provides that the three commissioners from New Jersey are to serve at the pleasure of the Governor. Of the three commissioners, one is appointed by the Governor, one is appointed by the Governor upon recommendation of the Speaker of the General Assembly, and one is appointed by the Governor upon the recommendation of the Senate President. All vacancies in the office of commissioner are to be filled in the same manner as the original appointment. Each New Jersey commissioner may be removed from office through the adoption of articles of impeachment by the General Assembly which are delivered to the Senate and following a trial and vote by the Senate on those articles of impeachment. Condemnation power The bill provides that the power of eminent domain may be utilized for Gateway Program purposes by the Commissioner of Transportation, contingent upon the Commissioner of Transportation entering into an agreement addressing the acquisition with the GDC.

AI Summary

Committee Categories

Patrick Diegnan (D)*,  Tom Kean (R)*,  Loretta Weinberg (D)*,  Joe Lagana (D), 

Substituted by A5570 (ACS) (on 06/20/2019)

Official Document