BILL NUMBER:S5629

TITLE OF BILL:  An act to amend the executive law, in relation to
increasing port security; and to amend chapter 154 of the laws of 1921
relating to the Port Authority of New York and New Jersey, in relation
to contracts with foreign persons, corporations, or entities

PURPOSE:

This bill would require the Division of Homeland Security and
Emergency Services for the State of New York, the Office of Homeland

Security and Emergency Preparedness for the State of New Jersey, and
the Waterfront Commission of New York Harbor to establish a port
security enhancement plan by February 15, 2014, and require the Port
Authority to execute security agreements providing for background
checks, limitations of construction services, and increased security
personnel, in all contracts with foreign entities, and to make a
report to the Legislature, providing specific and ongoing information
on all such contracts within 30 days of the effective date of this
act, and every 18 days thereafter.

SUMMARY OF SPECIFIC PROVISIONS:

Specifically, this bill would:

              

1. Add a new section 719 to the executive law, to require the Division
of Homeland Security and Emergency Services for the State of New York,
the Office of Homeland Security and Emergency Preparedness for the
State of New Jersey, and the Waterfront Commission of New York Harbor,
on or before the 15th day of February, after the effective date of
this section, to prepare, and deliver to the governors of the states
of New York and New Jersey, the presidents pro tem pore of the senates
of New York and New Jersey and the speakers of the assemblies of New
York and New Jersey, a comprehensive report, which provides a plan of
action and includes recommendations, for the improvement of port and
waterway security for the port of New York and New Jersey, as well as
the ports, waterways and coastlines of the states of New York and New
Jersey.

Such report shall include:

*An examination of the overall security issues of the port of New York
and New Jersey, and making recommendations with respect to such
issues, including:
*The overall provision and status of port security;
*The division of responsibility for all facets of port security;
*Current impediments to providing optimal levels of security;
*Police patrols of the port:
*Interagency cooperation between federal, state and local authorities;
*Employee, crew, shipper, transporter and visitor background checks;
*Current and potential technology enhancements;
*Economic considerations;
*Real property and leasehold issues; and
*Such other and further items as the commission deems important; and
*Such report shall also include an examination of the overall security
issues of the ports, waterways and coastlines of the states of New


York and New Jersey, making recommendations with respect to the such
issues.

2. Create a new Article VI-A of the Port Authority Compact Law
(Section 6407-a of the Unconsolidated Laws) to provide the following:

*That the port authority shall not have the authority, to purchase,
construct, lease and/or operate any terminal or port facility; or to
make charges for the use thereof; or to own, hold, lease and/or
operate real or personal property, wherein any rights, powers or
duties of the port authority are given, awarded, transferred or
assigned in the ownership, holding, leasing and/or operation of any
such terminal or port facility, or such real or personal property, to
any foreign based person, corporation or entity, without maintaining
within such contracts a foreign contract security agreement

*The foreign contract security agreement would require:

*That all employees of the foreign based person, corporation or entity
shall, prior to their employment or continuation of employment, with
the foreign based person, corporation or entity, or any subsidiary
thereof, at any terminal or part owned, leased or controlled by the
port authority, pass a background security check, which shall be
administered and designed by the Waterfront Commission, and that all
costs of designing and administration of such background security
checks shall be paid for by the foreign based person, corporation or
entity; and

*That all construction, fit up and/or modifications of the terminal or
port facility, owned, leased or controlled by the port authority,
including the purchase, installation and/or maintenance of equipment
for use at such facility, shall be exclusively performed by a person,
corporation or entity which is not foreign based or controlled, and
which has been pre-cleared by the Waterfront Commission, and in no
event shall the foreign based person, corporation or entity be
provided with, or be given access to, any maps drawings, diagrams,
blueprints or any other secure documents concerning the buildings and
grounds of the terminal or port facility, its equipment and/or
operational infrastructure; and

*An agreement that the foreign based person, corporation or entity
shall fund regular and necessary patrols and inspections of the
terminal or port facility, and its equipment, cargo and operations by
the port authority police, waterfront commission police, personnel of
the United States Coast Guard, and/or personnel of the United States
Customs to the extent and number as shall be required by regulation by
the state police of the states of New York and New Jersey, in
cooperation and consultation with the Offices of Homeland and Public
Security of the United States, and states of New York and New Jersey;
and

*This new Article VI-A would also require that the Port Authority
produce ongoing reports on foreign contracts. Pursuant to such
requirement within 30 days of the effective date of this act, and
every 180 days thereafter, the Port Authority must submit to the Chair
of the New York State Senate Standing Committee on Veterans, Homeland
Security, and Military Affairs, the Chair of the New York State


Assembly Standing Committee on Governmental Operations, the Chair of
the New Jersey State Senate Standing Committee on Law, Public Safety
and Governmental Affairs, and the Chair of the New Jersey State
Assembly Standing Committee on Homeland Security and State
Preparedness, a complete report of all current and proposed contracts,
agreements and delegations between the port authority and any foreign
based person, corporation and entity. Such report shall include a
detailed description of such current or proposed contract, agreement
or delegation; and

This new Article VI-A would further require that any contract,
agreement or delegation by the port authority to any foreign person,
corporation or entity, which does not contain the express security
agreement outlined above, on or before January 1, following the
effective date of this article, shalt be deemed void and cancelled,
with the port authority being responsible for the payment of damages,
if any, for the voiding and cancelling of the same.

JUSTIFICATION:

At this time of heightened public safety concerns, New York State,
with one of the largest coastlines in America, and with an economy and
transportation network long associated with water and shipping, needs
to take serious and immediate action to protect its port, waterway and
coastal security.

Additionally, the Port Authority of New York and New Jersey has been
presented with an issue of National and State security concerning its
contract operations of terminal and port facilities with foreign based
entities. After the lessons of terrorist attacks in the United States,
the States of New York and New Jersey cannot afford to take such
concerns lightly and need to take real and concrete action to increase
public protection at one of its most important infrastructure
facilities, its port.

This bill would take demonstrative steps to accomplish this goal by
requiring the establishment of a port security enhancement plan as
well as the institution of security agreements in all Port Authority
contracts with foreign entities involving terminal and port
operations. In so doing, this bill would seek to address the major
security risk factors involving such contracts. By requiring that any
such contract to provide for the background check screening of all
employees working with such foreign corporation, or subsidiary
thereof, pass a background screening test designed and administered by
the state police in consultation with the state and federal
departments of homeland security, this bill seeks to ensure that the
persons working at such terminals and port facilities do not in any
way pose a security risk or have any connections or involvement with
persons who might seek to commit an act of terrorism or injury to the
public or the port.

By prohibiting foreign contractors from engaging in any construction,
fit up and/or modifications of the terminal or port facility,
including the purchase, installation and/or maintenance of equipment
for use at such facility, and that all such services be exclusively
performed by a domestic entity, which has been pre-cleared by the
state police in cooperation and consultation with the departments of


Homeland Security, and by further prohibiting such foreign based
contractor from being provided with, or be given access to, any maps
drawings, diagrams, blueprints or any other secure documents
concerning the buildings and grounds of the terminal or port facility,
its equipment and/or operational infrastructure, this bill would
additionally help to alleviate security concerns with respect to
foreign knowledge and access to the physical layouts and
vulnerabilities of terminal and port facilities.

By also requiring foreign contractors to fund regular and necessary
patrols and inspections of the terminal or port facility, and its
equipment, cargo and operations by the port authority police,
personnel of the United States Coast Guard, and/or personnel of the
United States Customs, to the extent and number as shall be required
by regulation by the state police in cooperation and consultation with
the departments of Homeland Security, this bill also seeks to
significantly increase terminal and port security at these sites
specifically, and at all sites of the Port Authority specifically.

The provisions of this bill which require the reports to the
legislatures with respect to these foreign contracts would provide for
a measure of ongoing oversight over these contracts by the state
legislatures of the states of New York and New Jersey and establish a
mechanism to provide information over these proposed deals to both the
public and their elected representatives.

LEGISLATIVE HISTORY:

2008: S.3743-A - Passed Senate (59-0)

FISCAL IMPLICATIONS:

None noted.

EFFECTIVE DATE:

This act shall take effect immediately; provided, however, that
section two of 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 immediately;
provided that the chair of the port authority shall notify the
legislative bill drafting commission upon the occurrence of the
enactment of the legislation provided for in section two of this act
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 effectuating the provisions of section 44
of the legislative law and section 70-b of the public officers law.