ML20086Q928
| ML20086Q928 | |
| Person / Time | |
|---|---|
| Site: | Shoreham File:Long Island Lighting Company icon.png |
| Issue date: | 12/30/1991 |
| From: | Coleman W LONG ISLAND POWER AUTHORITY, WINSTON & STRAWN |
| To: | NRC COMMISSION (OCM) |
| References | |
| CON-#491-12464 OLA-3, NUDOCS 9112310075 | |
| Download: ML20086Q928 (63) | |
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UNITED STATES OF AMERICA QfktU j NUCLEAR REGULATORY COMMISSION Before the Commission 71 KC 30 P3 :31 015 ?CE af Et t M I/w Y OOCKi DNG .'. ',i e Vi'J H Ain '
)
In the Matter of ) Docket No. 50-322-OLA-3
)
LONG ISLAND LIGHTING COMPANY ) (License Transfor
) Application)
(shoreham Nuclear Power Station, )
Unit 1) )
)
OPPOSITION OF THE LONG ISLAND POWER AUTHORITY TO MOTION FOR STAY OF LICENSE TRANSFER AND TO SUGGESTION OF MOOTNESS Of Counsel: William T. Coleman, Jr.
Carl R. Schenker, Jr.
Stanley B. Klimberg John D. Holum President of Shoreham Project John A. Rogovin and General Counsel O'MELVENY & MYERS Richard P. Bonnifield 555 13th Street, N.W.
Deputy General Counsel Washington, D.C. 20004 LONG ISLAND POWER AUTHORITY (202) 383-5360 200 Garden City Plaza Garden City, N.Y. 11530 Nicholas S. Reynolds (516) 742-2200 David A. Repka WINSTON & STRAWN 1400 L Street, N.W.
Washington, D.C. 20005 (202) 371-5726 counsel for the Long Island Power Authority December 30, 1991 9 12310075 911230 PDR ADOCK 05000322 PDR ab ds J
O
l TABLE OF CCNTENTS Pf132 I. PETITIONERS' FILINGS ARE UNTIMELY AND PROCEDURALLY DEFICIENT . . . . . . . . . . . . . . . . . . . . . . . . . 2 II. PETITIONERS ARE MOTIVATED BY MONEY AND PHILOSOPHICAL CONCERNS, NOT BY SAFETY OR ENVIRONMENTAL CONCERNS . . . . . 3 III. THERE IS NO SUBSTANTIVE BASIS FOR DELAYING APPROVAL OF LICENSE TRANSFER . . . . . . . . . . . . . . . . . . . . . . 5 IV. THE LICENSE TRANSFER AMENDMENT CAN DE APPROVED SUBJECT TO A POST-EFFECTIVENESS HEARING . . . . . . . . . . . . . . . . 8 i
V. PETITIONERS' SUGGESTION OF MOOTNESS IS FRIVOLOUS, AND THE LICENSE TRANSFER SHOULD PROCEED FORTHWITH . . . . . . . . . 11 CONCLUSION . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 ADDENDUM Tab A Long Island Power Authority Act ("LIPA Act"), New York Public Authorities Law 5 1020 gt agg.
- (McKinney supp. 1991)
Tab B Memorandum of Temporary State Commission on Coordination of State Activities, 1957 N.Y. Laws 2196 Tab C Letter f rom Arthur Levitt, New York State Comptroller, to Governor Averell Harriman, dated April 17, 1957 Tab D Memorandum from Louis J. Lefkowitz, New York State Attorney General, for Governor Averell Harriman, dated April 24, 1957 Tab E LIPA Act, New York Public Authorities Law ! 1020-d(1)-(4) (as amended), Chapter 335 1991 Regular Session
O- i LIPA December 30, 1991 -
!O' UNITED STATES OF AMERICA :
NUCLEAR REGULATORY COMMISSION Before the Commission
)
OL In the Matter of ) Docket No. 50-322-OLA-3 i
) '
LONG ISLAND LIGHTING COMPANY ) (License Transfer
) Application) '
_(Shoreham Nuclear _ Power Station, )
. Unit 1) )
O. > t J
OPPOSITION OF THE LONG ISLAND POWER AUTHORITY TO NOTION'FOR STAY OF LICENSE TRANSFER AND TO SUGGESTION OF NOOTNE88 On' December 17, for the second time this year, the Shoteham-Wading-River central School District ("SWRCSD")'and Scientists and Engineers for Secure Energy, Inc. ("SE2"), -
O i collectively " petitioners," asked the Commission to stay Staff action on the; joint application of the Long Island Lighting Company ("LILCO") and the Long Island Power Authority ("LIPA")
for a license amendment allowing. transfer of the Shoreham Nuclear Power Station ("Shoreham") from LILCO to LIPA in a possession-only status.-' Egg. Motion for Stay of License Transfer (dated Dec. 17, 1991)- (" Motion") ; Lona Island Liahtina Co. (Shoreham '
Nuclear Power Station, Unit 1), CLI-91-08, 33 NRC 461, 464 (1991)
("CLI-91-08"). . On December 19, petitioners "suggest(ed)" that theilicenr- 'ransfer proceeding should be considered moot because .
LIPA's-existen o supposedly may be terminated by an obscure and clearly. Inapplicable provision of New York law. (Suggestion of Mootness1Due'to LIPA's Imminent Demise (dated Dec. 19, 1991)
'(" Suggestion").) The relief sought 1" these dilatory and h
a . a . - . - - - - _ - - . . - _ _ . . _ , - - - - . - . -
D frivolous filings should be denied forthwith for the reasons shown below.
)
I. PETITIONERS' FILINGS ARE UNTIMELY AND PROCEDURALLY REPICIEF . _ , _
Preliminarily, it should be nc'oed that petitioners' II filings are both untimely and procedurally defective, and they should be denied for that reason as well as the reasons shown in Parts II through V below.
Ob As a motion for a stay, petitioners' Motion fails to comply with the requirements of 10 C.F.R. 5 2.788 for obtaining a stay and ;should be summarily denied for that reason. Moreover, Ib petitioners' Motion is in large part an untimely comment on the Staff's March 20, 1991 proposed no-significant-hazards determination concerning license transfer. E2s 56 Fed. Reg.
II 11,781 (1991). At a minimum, the Motion should not be considered to the extent it belatedly seeks to raise new arguments on that subject. This is especially true because petitioners have still IP not made any showing whatever that immediate effectiveness of license transfer raises nny hazards considerations.
Petitioners' Suggestion also disregards the 8> Commission's established procedurcs. The suggestion raises, for the first time anywhere, a substantive objection to license transfer, based on petitioners' far-fetched interpretation of II section 2828 of the New York Public Authorities Law (McKinney Supp. 1991). Petitioners have shown no ground for allowing this untimely supplement to their petitions to intervene and thus II should not be heard on this matter. Ege 10 C.F.R. 5 2.714(a)(1).
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l ---- -__ _ ___
1 C) l l
The Commission's indulgence of petitioners' disregard for established procedures will only encourage petitioners to
)
initiate further disruptive proceedings before the NRC.
II. PETITIONERS ARE MOTIVATED BY MONEY AND PHILOBOPlfICAL GQJiqERN8t LOT BY SAFETY OR EEYlR9)fHryTAL CONCERNS.
C) Petitioners' Motion claims that,.if the license transfer is made immediately offective through tho Sholly process, their rights "will be irreparably harmed." (Motion, C} p. 9.) But they make no showing whatever of cognizable injury from immediate effectiveness of the requested license transfer amendment, much less a showing of irreparable injury. Instead, C) petitioners allude to a "Rresumotion of endangerment to the public health and safety" and again invoke shopworn arguments under the National Environmental Policy Act ("NEPA"), 42 U.S.C.
(3 5 4321 et etg. (Motion, pp. 9-10 (emphasis added).)
Nowhere does petitioners' Motion even attempt ;o show that transfer of the Shoreham possession-only license (" POL") to C) LIPA would pose any health-and-safety threat to petitioners or to anyone else.1 Similarly, petitionors' Motion fails to support their conclusory assertion that Staff approval of license C) transfer would result in impermissible segmentation of the NRC's 2
Nor have petitioners' previous filings concerning license transfer shown (or even attempted to show) any health-or-C). -safety concerns-raised by transfer, in a POL status, of the license-for this defueled, non-operating, minimally contaminated plant. (Eng SWRCSD Comment on Hazards Consideration, Petition to Intervene,'and Request for Hearing (dated April 19, 1991) ; SE2 Comment, Petition, and Request (dated April 19, 1991); Joint Supp. Petition (dated Nov. 18, 1991).) This underscores the fact C) that petitioners raise no colorable Atomic Energy Act or NEPA issues.
3
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O NEPA review of decommissioning and thereby cause cognizable envir nmental injury. (sne H ti n, p. 2 n. 2. )
O Petitioners are unable to show irreparable Atomic Energy Act ("AEA") or NEPA injury from the proposed license transfer because their real motives for seeking to delay license transfer are rooted in SWRCSD's desire to prolong receipt of tax revenues from LILCO and SE2's philosophical opposition to LILCO's decision never to operate the Shoreham nuclear facility.
Approval of license transfer will trigger New York statutory provisions phasing out, over a 10-year period, the approximately
-$25 million per year-of property taxes that SWRCSD presontly '
receives from LILCO. Saa Long Island Power Authority Act, New York Public Authorities Law 9 1020-q (McKinney Supp. 1991) ("LIPA Act").8 And the entire 1989 Settlement Agreement precluding operation of Shoreham as a nuclear facility is contrary to SE2's ideological commitment to the nuclear-energy option, a cause that
. the D.C. Circuit round ill-served by SE2's insistence "on rais[ing) the costs of (LILCO's non-federal decision to] exit from the nuclear power industry." SWRCSD v. NRC, 931 F.2d 102, 107 (D.C. Cir. 1991). As the NRC is well aware, there is no justification for delay of license transfer in the matters of true concern to petitioners, forcing them to rely instead upon the gossamer allegations of injury discussed above.
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The LIPA Act is attached hereto at Tab A.
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- . _ - _ - - - . ~. _ . - -_. .- - _ _ -
O III. THERE IS NO SUBSTANTIVE BASIS FOR DELAYING APPROVAL OF klqENSE TRANSFER.
C) Not only are petitioners unable to identify any threatened injury to cognizable interests in support of delay, but neither their Motion nor their Suggestion (discussed in Part
() V below) provides any substantive basic for delay.
NEPA Grounda. Again jnvoking NEPA, petitioners' Motion contends that approval of license transfer must await commission C) con'el.4eration of supposed altornatives "to decommission [ing) the reactor," as previously recommended by "kSth the Council on Environmental Quality add the U.S. Department of Energy."
C) (Motion, pp. 8-9 (emphasis in original).) But the Commission has l
long since " disagreed with petitioners' basic NEPA theory" that t
the NRC must evaluate alternatives to (and effects of) LILCO's 33 non-federal decision never to operate Shoreham.3 Petitioners' i
l Motion does not even attcmpt to argue that approval of the license transfer would fail to comport with the NRC's previous C) rulings on NEPA issues. Thus, there is no basis in NEPA for holding license transfer in abeyance.
LIPA Finances /Intearity. Petitioners contend that LIPA C) lacks the " financial qualifications" and " managerial integrity" to become an NRC licensee. (Motion, p. 6.) But these unsupported and groundless contentions likewise provide no basis C) to hold license transfer in abeyance. Obviously, the Staff will l __
8 l CLI-91-08, 33 NRC at 405 (citing Lona Island Lichtina C2 (Shoreham Nuclea.* Power Station, Unit 1), CLI-90-08, 32 NRC 201 (1990), aff'd on reconsideration, Lona Island Lichtina Co.
() (Shoreham Nuclear Power Station, Unit 1), CLI-91-02, 33 NRC 61
- (1991)).
l 5
l0
__r.._.___.___ ... _ .. . _ _ . _ . _ ._
_-.___.m. . - - _ . - -
,3 , T "
e l c
i 0" not approve license transfer unless satisfied as to these matters I.
and, as it any other context, a post-effectiveness hearing can be 4 .
4 - held .if petitioners establish standing and submit litigable
.cor.tentions (neither of which they have done).- !
Petitioners' allegations regarding.LIPA's finances and integrity'have already been fully rebutted in previous filings-by I l 4 LIPA, LILCO, and the NRC Staff ' However, it bears noting here that LIPA is not " bankrupt"; LIPA has met and will meet all of its financial obligations, Shoreham and non-shoreham. (Compare Motion, p. 6 with LIPA Dec. 9' Response, p. 34.) Moreovar, gH of l LIPA's Shoreham-related expenses have been and will be paid by i
.O LILCO.8' _Accordingly, LIPA can and will meet all financial
^
obligations as-an NRC licensee even if-(contrary to its reasonable expectations) LIPA receives no additional allocations from New York State to continue non-Shoreham activities. (San LIPA Dec. 9 Response, pp. 3 5 - 3 6 .' ) '
O;
- sag LIPA Answer to Intervention. Petitions and Response re Hazards Consideration (dated May 6, 1991) ("LIPA May 6
- Answer"); .LILCO Opposition to -Request for Heating and Responne re
. Hazards Determinaticn (dated May 6, 1991) ("LILCO May 6 Answer") ; e
~
NRC Staff Response to Petitions,-Requests, and Hazards Comments (dated May.17, 1991) (" Staff May 17 Answer") ; LIPA Respons3'to O Joint Supp. Petition (dated Dec. 9, 1991) ("LIPA Dec. 9 Response"); LILCO Opposition to Contentions (dated Dec. 9, 1991);
NRC Staff _ Response to Joint Supp. Petition'.(dated Dec. 9, 1991)
(" Staff Dec. 9 Response'?) . ,
8 Sag, g&, . IdlLpa Island - Lichtina Co. (Shoreham Nuclear
,0- . Pow 3r Station), Exemptioni 56 Fed. Reg. 61,265 (1991)* LIPA -
Dec.---9 Response,=pp. 26-31.-
Further, LIPA's Board of Trustees has approved the charter of the Independent Review Panel ("IRP") to which petitioners refer and has selected the five members for
<O- appointment to the IRP, and the IRP appointees have agreed to serve. -(Eng Motion, p. 7.)
6
.Q. -
y_acation of POL. Finally, petitioners urge delay on the ground that L1PA and LILCO have sought transfer of the Shoreham license in its POL status which, petitioners speculate, could "be vacated by the conmission or the federal courts, resulting in LIPA becoming a full power nuclear reactor operating licensee." (Motion, p. 8.) This argument also must fail.
l In essence, petitioners argue that the NRC may not predicate a license action (here, approval of license transfer) upon a prior action that is subject to judicial challenge or an opportunity for a post-effectiveness hearing (here, issuance of the POL). If accepted, this stance would intolerably prolong (if not frustrate) NP, Icense proceedings and is inconsistent with established agency practice. Eqn, e.a., Lona Island Lichtina Co.
(Shoreham Nuclear Power Station, Unit 1), ALAB-810, 21 NRC 1616,
)
1619 (1985); Uranium Mill Licensina Recuirements, CLI-81-9, 13 NRC 460, 461-62 & n.4 (1981); Eqblic Service Co. of New l{nraoshire (Seabrook Station, Units 1 & 2), ALAB-338, 4 NRC 10, 13-14 (1976) (all denying stays of proceedinos sought during the pendency of an administrativs or judicial appeal).
Moreover, petitioners fail to identify any adverse k
safety or environmental consequences that could ensue even in the unlikely event that the POL were vacated after Staff approval of license transfer. From a safety perspective, there is no k
possibility that LIPA would seize upon any vacation of the POL to attempt to operate Shoreham, LIPA is forbidden from operating Shoreham not only by the terms of the POL but also by the 1989 Settlement Agreement and by New York state law. See LIPA Act .
7
)-
t ,
C) l 5 1020-t.7 Nor does the hypothetical possibility that the POL might be vacated have any significance for petitioners' NEPA-
)
4 based claims in view of LILCO's contractual obligation and firm commitment never to operate Shoreham. Egg, e.g., CLI-91-08, 33 NRC at 467, 470. Thus, pr*ttioners' Motion presents no
() )
substantive justification for holding license transfer in ;
abeyance.
IV. THE LICENSE TRANSFER AMENDMENT CAN DE APPROVED SUDJECT
'() TO A POST-EFFECTIVENESS HEARING.
According to petitioners, the license for this defueled, non-operating, minimally contaminated plant cannot be
() amended under the Sholly procedures to p .mit license transfer in advance of a hearing. (Eng Motion, pp. ?-6.) Contrary to petitioners' contention, the Sholly procedures are fully
() applicable here and thus approval of license transfer may lawfully be made immediately effective.
(). However, even assuming arcuendo that the Sholly
, procedures are inapplicable here, petitioners would still not be antitled to a hearing in adva.ce of license transfer. To obtain
() a hearing under AEA 5 189, 42 U.S.C. S 2239, petitioners must establish their own standing and demonstrata the existence of C)
' Moreover, even if the POL were vacated, the Shoreham license would still be subject to the March 1990 Confirmatory order, which prohibits the reloading of fuel without express NRC approval. Eg2 SWRCSD-v. NRC, 931 F.2d at 104. In addition, if still physically capable of operating at all, Shoreham plainly could not do so without time-consuming and expensive engineering
- O and construction worx, thereby guaranteeing ample time for the NRC to address questions raised by any change in license status.
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Q litigable contentions. This they have utterly failed to do.
(Eg_q the LIPA, LILCo, and NRC C *af f filings cited at apIr, Sp. 3, 6 nn. 1,4.)
Licens_qt Transfer Generally. Petitioners argue that the Sholly procedures are inapplicable to a requested license
)
amendment seeking a license transfer. (Eng Motion, pp. 4-6.)
This argument ha already been fully rebutted by LIPA, LILCO, and the NRC Staff in answer to petitioners' April .9, 1991 comments on the Staff's proposed no-significant-hazards determination. As
., shown there, petitioners' argumut.c is completely at odds with applicable NRC precedent, under which license transfers have t
routinely been effectuated by means of license amendments approved under the Sholly precedures. (San LIPA May 6 Answer, pp. 45-48; LILCO May 6 Answer, pp. 18-20; Staff May 17 Answer, pp. 27-38.)
Tr_a_n,Lf gr o f POL. Straining even farther, petitioners contend that Sholly procedures cannot be followed to amend a passessien-only_ license. Nstably, this myopic argument was not advanced in petitioners 5 April 19, 1991 comments on the Staff's initial no-significant-hazards determination, but apparently has only been raised here as an afterthought. (Compare Motion, p. 4 with the April 19 filings cited at suora p. 3 n.1.)
q Petitioners' entire " argument" on 4.his point consists lV of two conclusory sentences and rests solely on the fact that the statutory Sholly provisions and the relevant Ccmuission regulations refer only to amendment of "an operating license."
(Sag Motion, pp. 3-4 (citing 42 U.S.C. 5 2239(a)(2) (A) and 9
!9
l-G-
, >10 C.F.R. 55 50.91 & 50.92(c)).) But petitioners' assertions hardly rule out application of the Jholly procedures to POL 8
amendments and, if accepted, would lead to absurd results.'
Under petitioners' view, the NRC could not utilize the Sholly procedures to maka any amendment to a POL et m plant.
g But the NRC has frequently recognized that the Sholly procedures are applicable to proposed amendments to possession only licennes.' Pctitioners fail even to mention, much less to show 8 error in, these applicable NRC precedents.
Moreover, p3titioners' argument leads to absurd results in the license-transfer context. Under petitioners' view, while
_8 the Shoreham license was still in an operating status, it could properly have been transferred to LIPA pursuant to the Sholly 8 8 It is entirely understandable that 10 C.F.R. SS 50.91 and 50.92 refer to an " operating license for a facility licensed 1 under . . . 5 50.52," but not to a pol, since the term
" possession-only license," while long used in NRC practice, does not itself appear in NRC regulations. Under a sensible Q interpretation of the regulations, the reference to " operating license" in 59 50.91 and 50.92 should be read to include Part 50 licenses generally, including POL's. Egg 53 Fe d . Reg . 24,018, 24,024 (1988) (to be codified at 10 C.F.R. Pts. 30, 40, 50, 51, 70, 72). Certainly, in the circumstrnces of this case, the distinction that petitioners seek to draw between an "operatjng
,_$ license" and a POL with respect to the applicability of the Sholly procedures does not hold up. For instance, when LILCO first applied for a POL on January 5, 1990, it styled its application as a request for a "defueled operating license." The NRC subsequently determined that a "defueled operating license" and a POL were one and the same. 55 Fed. Reg. 34,098 (1990);
-- g _' 55 Fed. Reg. 36,358 (1990); Lag Lona Is1and Lichtina Co.
(Shoreham Nuclear Power Station, Unit 1), CLI-91 01, 33 NRC 1, 3, 5 (1991).
- SAS, e.o., Philadelphia Electric Co. (Peach Bottom Atomic Power Station, Unit 1), 54 Fed. Reg. 41,886 (1989) g (proposed amendment to POL); NASA (Plum Brook Statiw), 54 Fed.
Reg. 38,759, 38,765 (1989) (same).
10 L-
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procedures, however, it could not be transferred in a POL status.
. Yet, the July 1991 downgrading of the Shoreham license to POL status clearly reduced (rather than increased) the health-and-saft.ty sensitivity of the license, so it is nonsensical to argue that the downgraded license cannot also be transferred to LIPA pursuant to the Sholly procedures.
In view of the foregoing, including dispositive NRC precedent, a POL must reasonably be viewed as a downgraded 8 operating license eligible for Sholly procedures. Thus, contrary to petitioners' arguments, there is no procedural impediment to Staff approval of license transfer."
V. PETITIONER 8' SUGGESTION OF MOOTNESS IS FRIVOLOUS, AND THE LICENSE TRANSFER SHOULD PROCEED FSRTHWITH.
Invoking an obscure provision of New York's Public
$ Authorities Law, petitioners' Suggestion asserts that LIPA "may have its existence terminated" on January 15, 1992 and that the license transfer proceedings therefore are moot. (Suggestion,
$ p. 1 (emphasis added) . )" As shown below, this filing is frivolous.
First, the provision cited by petitioners -- section
$ 2B28 of the New York Public Authorities Law -- Yas intended to terminate only inactive, dead-letter authorities, not active ones
$ Furthermore, even outside the Sholly provisions, the Commission has inheren" discretion to provide hearings on a post-effective basis in the absence of significant hazards considerations. (Hg_q LIPA May 6 Answer, pp. 49-50.)
" Petitioners have failed to show that any New York
$ public authority -- much less an active one -- has ever been terminated under this provision.
11
S like LIPA. (Eng infra pp. 12-16.) Second, LIPA's termination under petitioners' far-fetched interpretation of section 2828 would flatly contradict numerous express provisions of the LIPA Act, which specifies that its provisions shall not be compromised by any inconsistent laws. (Eng infra pp. 16-19.) Accordingly, there is no basis whatever to question LIPA's continued existence.
The weakness of petitioners' position is underscored by the tentative nature of their argument. Petitioners merely "suggest[]" that LIPA's existence "may" be terminated.
(Suggestion, p. 1.) Moreover, petitioners concede that this result would nqt occur under the " plain language" of section 2828, but only under their interpretation which, without reference to any legislative history, they assert is "probab1[y]
8 correct ()." (Is1. , pp. 3, 5.) Indeed, petitioners themselves do not really appear to believe their own argument, as is shown by their failure to bring a New York State action challenging LIPA's continued vitality.
Section 2828. Section 2828, which was enacted in 1957, is not part of the LIPA Act, but is a provision applicable to dozens of utility, highway, and other authorities created under the New York Public Authorities Law. As a general provision, section 2828 addresses only the narrow question of early 8
termination for authorities that have assumed no liabilitlec "at the end of five years from the date of [their] creation 8:
Every authority or commission hereafter created by this
$ chapter shall terminate at the end of five years from the date of its creation if at the end of such neriod 12 8
- 8 it has outstandina no liabilitiqa; provided, however, that any appropriation made to rich authority or conmission by the state of New York or by any political
$ subdivision thereof shall not be deemJd a liability for the purpores of this section.
New York Public Authorities Law 5 2828 (McKinney supp. 1991)
(emphasis added).
8 Petitioners concede that LIPA has liabilities other than those owed to the State of New York and hence concede that LIPA is Dp.t subject to termination under section 2828's " plain 8 Those concessions should language." (Suggestion, pp. 3, 6-7.)
be the end of the matter, for it can hardly be supposed that the New York Legislature intended to subject a multitude of public 8 authorities to early termination under some test not expressed in the plain language of this enactment.
Seeking to substitute their own misguided I interpretation of section 2828 for its plain language, petitioners contend that the statutory phrase "no liabilities" must really mean "no not liabilities" because "no existing entity S can gygI present a balance sheet showing 'no liabilities' as of any date." (Suggestion, p. 3 (enphasis aoded).) Petitioners' arguments are not only inconsistent with the plain language of 8 the statute but also are contradicted by the legislative history of section 2828.
As the legislative history shows, the Legislature S intended section 2828 only to " provide () for the automatic terminution of inactive authorities" that never " commence [d]
operations within a reasonable time (five years) after their 13 I
h
l 9
creation."" The Legislature intended the section not to function as a " sunset law" for active agencies, but instead to
" stimulate" newly created authorities into "becom[ing) a going concern" rather than languishing as mere paper entities.
(Compare Suggestion, p. 2 with Levitt Letter.) LIPA plainly has net so languished. Among other things, LIPA has entered into contractn with LILCO among others for the traasfer, maintenance, and decommissioning of Shoreham, has filed related applications with chis Commission, and has defended its Shoreham-related activities in state and federal litigation initiated by those very petitioners.
8 To effectuate its specific goal of terminating any inactive authorities, the New York Legislature chose a sirnp'e test to measure whether an authority is active or inactive: Does 8
the authority have any " liabilities" after five years of existence? As explained in the provision's legislative history, the Legislature decided that "to be 'tculy operative' an S
authority must have outstanding liabilities" other than to the State." Petitioners concede that LIPA has liabilities other than to the State. And given the l'.ritci purpose and scope of lt i
section 2828 -- to root out inactive authorities -- LIPA's I-
" Memorandur of Temporary State Commission on
$ Coordination of State Activities, 1957 N.Y. Laws 2196 (attached horato at Tab B); Letter from Arthur Levitt, New York State comptroller, to Governor Averell Harriman, dated April 17, 1957
("Levitt Letter") (attached hereto at Tab C).
" Memorandum from Louis J. Lefkowitz, New York State l$ Attorney General, for Governor Averell !!arriman, dated April 24, 1957 (attached hereto at Tab D) .
14
]
cortinued existence under the plain language of section 2828 makes perfe sense and hardly renders the section a " nullity."
(Suggestion, p. 3.)
By contrast, petitioners' substituted test for termination - "no not liabilities" -- would render section 2828 a mindless engine of destruction in New York State. Under petitioners' view, regardless of the importance of an authority's mission or the vigor of its activities, every authority without not liabiitties to private creditors would be beheaded on its fifth anniversary. As petitioners themselves note, such
" unreasonable results" are never tolerated when interpreting a statute. (Suggestion, p. 3 (quoting McKinney's Statutes S 143 (1971)).)
Petitioners seek to bolster their "no not liabilities" theory by arguing that the "true meaning" of the no-liabilities
" qualification" is to protect non-governmental creditors who would otherwise " suffer financial harm by being left without h
recourse" if an authority were to terminate. (Suggestion, p . 5 . ) 1' In fact, as already shown, the Legislature adopted the no-liabilities test for a different purpose -- to differentiate active from inactive authorities and to terminate dead-letter authorities. There is not a shred of legislative history supporting petitioners' apparent position that all authorities which could satisfy their private creditors, if wrapped up, l'
Petitioners rely on a treatise that has nothing to do with section 2828, or any analogous provision. (See Suggestion, l p. 5 (citing 2 Meouillin Mun. Corn. SS 8.15 & 8.20 /3d ed.
1988).)
15 h
should therefore be terminated. Rather, if an authority is active on its fifth anniversary, as LIPA is, the term of its existence and the protection of its creditors are subjects to be addressed under that authority's enabling legislation, not under i
section 2828. Egg, e.Q., LIPA Act 5 1020-z.
LIPA Act. As noted above, LIPA concededly has liabilities and hence is not subject to termination under the
" plain language" of section 2828. (Suggestion, pp. 3, 6-7.)
l Furthermore, ever, if petitioners were correct in positing a "no not liabilities" test under section 2828, LIPA could not be terminated under that provision due to superseding provisions in t
the LIPA Act.
LIPA is an agency endowed with broad powers and characteristics consistent only with a life that is not expected to terminate automatically at the end of an arbitrary five-year period. Egg, e.a., LIPA Act SS 1020-a and 1020-c. The provisiens of the LIPA Act, "being necessary for the prosperity of the state and its inhabitants, shall be liberally construed to effect the purposes hereof," arr,ng which are LIPA's acquisition and decommissioning of Shoreham. LIPA Act SS 1020-h, 1020-t, 1020-ff. Further, section 1020-gg specifics that the provisions of the LIPA Act "shall be controlling" if they are " inconsistent with the provisions of any other law." Termination of LIPA under section 2828 obviously would be inconsistent with the legislative purpose to ensure that LIPA decommissions Shoreham, and with numerous specific pruvisions of the LIPA Act as well, 16
)
First, section 1020-g guarantees " parties to any contracts" with LIPA that "the state will not limit or alter the rights hereby vested in the authority until . . . such contracts are fully cerformed on the part of the authority." (Emphasis added.) LIPA has entered into numerous contracts, including the I Aaset Transfer Agreement with LILCO pursuant to which LIPA is to assume the Shoreham license and decommission the plant. The State has pledged by section 1020-2 not to " limit or alter" LIPA's statutory authority until such contracts are fully performed, and hence the State plainly cannot terminate LIPA's existence under section 2828 and require LILCO to pursue other l arra:,eements to dispose of its interest in Shoreham.
Second, numerous provisions in the LIPA Act clearly contradict petitioners' assertion that LIPA would be subject to I termination "at the end of five years . . . unlees the Legislature specifically reauthorizes LIPA." (Suggestion, p. 7.)
The New York Legislature provided that LIPA would have a h
perpetual existence, specifying in the LIPA Act that LIPA's
" authority and . . . corporate existence shall continue until terminated by law." LIPA Act 5 1020-z.25 h
Moreover, the New York Legislature recently amended the LIPA Act (effective July 15, 1991), to extend the terms of the original nine appointed trustees through December 31, 1993 and to 25 By contrast, the Green Island Power Authority has a true " sunset" provision; the Legislature restricted its term to 12 years. Esf Green Island Power Authority Act, New York Public l Authorities Law S 1020-c(3) (McKinney 1991 Supp.) ("the authority and its existence shall continue for a period of twelve years").
17 h
S I
postpone the elections scheduled for 1991 until 1993. Een LIPA Act 5 1020-d(1)-(4) (as amended), Chapter 335 1991 Regular Session (attached hereto at Tab E). Beginning in 1993, 22 trustees will be elected from districts to be established by the legislature "each tenth year" after May 1993. Eqc LIPA Act ,
5 1020-d(3) (as amended). That means the first redistricting would occur in May 2003 -- well past the supposed termination date of January 15, 1992. These actions by the New York Legislature just this past summer clearly show that, far from considering LIPA a candidate for termination under section 2828, the Legislature expected LIPA to be on the scene for decades.
In addition, as petitioners are well aware, the LI"A Act specifies that LIPA, once in control of Shoreham, will make payments in licu of taxes an Shoreham. Eqn LIPA Act 5 1020-q.
These payments are to decresse at a rate of 10 percent por year for 10 years. Id. This LIPA obligation plainly could not have been carried out in the more five-year span allotted authorities to initiate operations under section 2828. Thus, even if other authorities having "no not liabilities" on thei1 fifth anniversary are to be terminated under section 2828, LIPA has unique duties reauirina its longer existence.26 There is yet another important consideration defeating petitioners' suggestion that LIPA might be terminated on January 15, 1992. Just two months ago, the New York Court of Appeals 2' Ironically, it is precisely to further delay this ramp-down of tax payrents after license transfer that SWRCSD has O concocted its totally unsupportable assertion that LIPA is subject to termination under section 2828.
18
't
8 rejected various other challengec by these petitioners to the 1989 Settlement Agreement. The Court's opinion emphasized the importance of LIPA's activities and gave not the least suggestion that LIPA was in danger of imminent termination. Egg pitizens for an Orderly Enercy Policy ("COEP") v. Cuomo, 78 N.Y.2d 398 (1991). This Commission rejected petitioners' earlier request to hold the license transfer proceedings in abeyance during the pendency of COEP v. Cuomo before the New York Court of Appeals.
Egg CLI-91-08, 33 NRC at 471. Especially in the absence of state-court litigation invoking section 2828, there is even less reason to delay license transfer on the basis of petitioners' vishful suggestion that, under an unsupported interpretation of an inapt statute, LIPA may be terminated as of January 15, 1992.
8 8
4 8
19
.g
,8 CONCLUSIQH For the foregoing reasons, the relief sought in petitioners' Motion and Suggestion should be denied."
Respectfully submitted, i f s _
Of Counsell Mlliam T. Coleman, Jf.
Carl R. Schenker, Jr.
$ Stanley D. Klimberg John D. Holum Presid.cnt of Shoreham Project John A. Rogovin and General Counsel O'MELVENY & MYERS Richard P. Bonnifield 555 13th Street, N.W.
Deputy General Counsel Washington, D.C. 20004 1.ONG ISLAND POWER AUTHORITY (202) 383-5360
$ 200 Garden City Plaza Garden City, N.Y. 11530 Nicholas S. Reynolds (516) 742-2200 David A. Repka WINSTON & STRAWN 1400 L Street, N.W.
Washington, D.C. 20005
$ (202) 371-5726 Counsel for the Long Island Power Authority Dated: December 30, 1991 8
8
" LIPA does not object to petitioners' st ggestion
$ concerning timing provisions related to judicial review. (EE.Q Motion, p. 2 n.1.)
20 s
O PUBLIC ALTHORmES LAW O
O O
O 0
LO 4
TITLE 1-Al-LONG ISLAND POWER AUTHORI1T g
Section 1020. Short utle, 1020-a. Declancon of legialstive findings and dularations.
1020-b. Defeitions.
1020-<. long Ishad power authority; creation.
31 9
1" 9
- O l
61020 PttsLic AUruonrTIES LAW s.etion 1020<!. Trustees,
- n" 1024e. Offsem and employue; erpeun.
i 1020-f. Generst poners of the subnty.
1020-g. Powers to prende and maintam gebersting, trsnarrdssion and resoures recovery wute to energy facihues.
102&h. Amtsioen et property, nneluding the turche of W power of eminent domain.
- 10&L Subsidaries.
p 1020-j. Notes of the authority.
d 10&k. R**ds of the authonry.
1020-f. sts te and munienabces not lable on bonds or notes.
1020-m. legal investments.
1020-n. Deposit and investment of moneys of the authonty.
102bo. Arrtement of the state.
10 & p. Exemptaon from taastion. ,
.. 1020H1 Feyments in Iwu of tasse. '
n 1020-r. Itapoyment of state appropriations.
.U 1020-6. Pubhe utvice law genersfly not aW, Able to aut hority; inconsistent pronsions in certam owr acts superseded.
10&t, Authonty not to construct or operste a nuelaar powered facility in the semee area 1020-u. Employees of the authority not subject to the public employees' fair emploprwnt act.
1020-c. Equai emplopnent opportunity and minenty and women owned bus!nns enterpnse programs.
.Ve . 1020-w. Aud;t and annual toports.
1020-s. tuthonty subject to open n.ntings law.
1020-1 hrt pmwedags; preferences; venue.
1020-a arporate enstence.
102064. Confhets of interest.
1020-bb. Esculpauon.
1020-ec. Auhnty subject to certain pronsions contained in the state finance law, the pubbe utvice law, the social sernces law and the general municipal la w.
10&dd. = Authonty not to wek nor any subsidiary of the authenty, to apply for or accept preference hydroelntncity.
1020-ee. Nine Mde Pomt 11; daposioon of internt.
1020-ff. Liberalinterpretation.
1020-gg. Inconeistent pronsions of other laws supeneded. '
1020-hh. Severabihty.
O i Another atte 1.A is ni oui post.
I1020,8 Short title This title shall be known and resy be cited as the %ng Island power authority act".
(Added L1966, c. $17, I IJ O ' ^^*'h" i 1020 is set evi in ni)e 1.A poet.
Historical Note ,
- . Effect!,e Date. Section effective Jan. finance a (ved to be known as the hng l
- 15. 1987, punuant to L1966, c. 517, Island power authonty creabon and con.
j' i 11. tingency fund'.
I lAng Island Power Antherity Cre. **(b) Such fund chall consist of all mo-i,,,. ation and Continrency Fund. Section nies co!!eeted or received by the commis.
!J 9 of L1986, c. Alf, provided: sioner of taxation and (mance on or af.
I "(a) There is hmby established in the ter the effutte date [Jan.15,19g7 of l~ joint custody of the state comptroller this act (enacting this article and Pu)bhc and the commissioner of taistion and Service law l 24-b; amending swoon 32 lO
- n. 2a k) '
_ , . ,- - ~. ,_- . -,,
R WBLIC AWHORITIES LAW 610&a
<" 1006. Dection law il 6-142, 6-164, enemittee. Such eartifieste mar be 14-100,14-114 and Pubbe Semee law amended frem eine to tirne, subget to Q> -
t 10) from paymenta nade by LILCO h approval of the dneter of the bud.
P( .., Q pursuant to its obhrstons under see- get, and a copy of each such amendrnent
." cons one hundred eighty4it ud one shan be fued mth the sta e comptroller
- 4 W-' bundred sighty4tz.s of the tan law, pro, the chainran of the sesste finance com C nded however suel. fund shall not an- mjttee, ud the chairman of the usem.
, esed eleven ad! bon douars, av J any oth-p,. er monies received from sura pyments bly ways and means committae.
Me) The dimtor of the budget shall g# * ~'
shad be paad to the state tre my.
1c)'Ihe monies in this futu shau be tot issue uy es.tificate of approval un-WMbi a;,propnated to the suuonty to be used t0 *he authonty has tatered into a sTit-inh for costa and habDities incurred by the **D 1.reement eth the dnctor of the fdW,6q p e authonty in the furthersnoe of the provi budget pronding for npsyment by the authonty to the state of an amount
- A g 'l, ef sens of this set.
Nd) Notmthstanding & provvions equi to the to's! amount expended by
^
y, of any geners! or specallaw, no part of the stata from such appropnaton. en
( such fund shall be appropriated until a tarms to be determined by the director t
s y'
teruficate of approval shall have bten of the budget, and a cope of such agree-inaued by the dneter of the budget and ment shall be fded mth the state comp-a copy of such cernficau tUed wn. .he troller, the thatrman of the senate fe oute ecmptrollar, the chiarman of the nance committee and the chairman of senate finanet committee, and the thatr- the assembly ways and means cornmit.
maa of the assembly ways and means tee."
Notes of Decia;ons
- 1. Pnemption loss of tax revenue-. and inconsisteness Statute enating power authonty to betwun statute and mra uton mih re.
y acqure lighung company pmmpted swd to duty to negom v th lighting county resoluton authorumg fomacon company and prohibits t, acquisioon of local development corpoisuon t'or that of preferspee hydroeleane power.
Long laiand Ughung Co. v. Suffolk feYut n su r Jloc$1 velo :
County. 1984,118 A.D 2d 128, 505 N.Y.
corporauen to cooperste mth, and seu S.2d 966, appeal dernec 6e N.Y.2d 607, asseu to, that s*ste power authonty or that resoluton was consistent mth stat. 606 N.Y.Sid 1031, 498 N.E.2d 433.
S utory obscove of facihtaung decommis. arnend,
- 68 N.Y.2d 802, 506 N Y.S.2dsion of auclear pnwee p' ant, in nevr of 805. 498 3.E.2d 429.
I 102' ' Decnaration cf legielstive ilndings and declarations The , nature hereby finds and declares that:
Constantly escalating and excessive costs of electricity in the counties of 9 Suffolk and Natnu anel that portion of the councy of Queens served by the Long Island lighting company (hereinafter rcierred to as the " service
- ar" , a serious thtest to the economic wellt*ing, health and ufety
.esidents of and the commerce and industry in the senice area.
J "ncre is a lack of confidence that the needs of the residents a-d of commerce and industry in the service area for elecuietty car bi supph t n k a reliable, efficient and economic manner by the long IJand lignung g comps.ny (herein.fter referred to as "LILCO").
Such excessive costs and lack of confidence have deterred commer:e and industry from locating in the service ares and have caused existing commerce and industry to consider ser:ously moung out of the semce area.
The decisions by LILCC S commence construction cf the Shonham 4 nuclear power platt and thernfter to continue such construction were imprudent.
83 O
3a p l
= ___-_ _ - _ _ _ _ _ - _ _ _ _ _ - _ _ _ _ _ _ _ _ _ _ _ ____ _ __ _ _ _
- - . ~ . . . .=
Q.
t i1020-a Ptsuc AttrHORITIES LAW
. g 'ne investment of LILCO in the 3horeham nuclear power lant has u created significant rate increases, straining the economic capabilities of ratepayers in the service ana, and likely will require further substantial rste menaaes if such plant is placed in service.
It is uncertain whether the Shoreham nuclear plant ever wC) go into commercial service, or if it does whether its aliability, cost of construction, operation and maintenance wSI be such as to provide sufficient, reliable and economic electric service to ratepsyers in the service area. The very
-O< . substantisi financial strain of the investment in the Shoreham nucies plant has required ULCO to suspend dividends on its common and preferred stock, sevenly thnatening the continued economic viabihty of ULCO.
, For all the above reasone a situation threatening the economy, health and safety exista in the service ans.
Dealing with such a situation in an effective manner. masuring the g provision of an adequate supply of electricity in a nliable, efficient and Wl economic manner, and ntainir g existing commerce and industry in and attrsedng new commerce and industry to the service area, in which a substantial portio a of the state's population resides and which encompasses a substantial portion of the state a commerce and industv, are henby expressly determined to be matters of state concern within the meaning of
- paragraph three of subdivision (a) of section three of article nine of the D Se atters of state concern best can be dealt with by placin such invester owned utility with a publicly owned power author 7ty. Such an authority can best accomplish the purposes and objectives of this title by implementing. if it then appears appropriate, the results of negotiations .
between the state and ULCO. In such circumstances, such an authority '
will provide safe and adequate service at rates which will be lower than the rates which would otherwise result and will facilitate the shifting of
- 0: investment into more beneficial energy demand /eneisy avpoly manage-
. ment alternatives, realizing savings for the ratepayen and taxpayers in the senice area and otherwise restoring the confidence and protecting the
. - interests of ratepayers and the economy in the senice area. Moreover, in such circumstan:es the replacement of such invester owned utilities by such ar' authority will result in an improved s stem and reduction of f.sture costs and a safer, more efficient, rehable ar economical supply of electric g' energy. The 1 y".lature further finds tht such an authority shall uti!ize to the fullest enem practicable, all economical means of conservation, and technologies t .at rely on renewable energy resources, conneration and improvementa in energy efficiency which will benefit the weats of the -
ratepayers of the seryxe area.
(Added L1986, c. 517, i 1.)
3 Another { 1020-m is set out in 'litle 1-A post.
iOL nistorical Note F%etin Dete. Section effective Jan.
15, 1987, pursuant to L1980, c. 617, i 1L i 1024-6.8 Definitions As used or referred to in this title, unless a diffennt meaning clearly O" appean from the context
- 1. " Acquire" means, wit.S nspe.ct to any right, title or interest in or to any property, the act of taking by the exeruse of the power of eminent domain, or acquisition by purcha,se or otherwise.
34
- 0?
y,
.y.
_b-.'_._-_ .__ _ _ ' . . _
.m d
FUBUC AlmIORmES LAW { 1020-b O
- 2. "Act" means the long Island power authom act, being title one A of article fi:e of the public authoritaes law, as added by this tide.
- 8. - " Authority" means the Long Islind power authority cnsted by section one thousand twenty < of this title.
- 4. " Board" means the board of trustees of the authority.
b 6. " bonds" or notes" a mean the bonds, notes or other obligations issued by the authority pursuan; to this title.
- 6. " Fair market value" means the value of property, real, mixed, which would be cotainer in so armi lengthetwcw transaction an bmonal or informed and willing buyer under no compulsion to buy, ano an informed and willing seller under no compulsion to sell.
- 7. 'Tederal government" means the United States of America and any O agency or instrumentality, corporate or otherwise, of the United States of Acenca.
- 8. " Final determination" or " finally determined" means a judicial deci-sion (i) by the highest court of competent jurisdiction, or (u by a court of competent jurisdiction from which no appeal has been taken and the time within which to appeal has expired.
O. e ~Governmg body" means, with respect to any municipality, the body having charge of th fiscal affairs of such municipality,
- 10. "LILCO" means the Long Island lighting company, its subsidiaries and their successors and assigns, other than the authority.
- 11. " Municipality" means any city, town, village, county, municipal corporation, district corporation, district or other politacal subdivision of the g state.
- 12. "0CLD" means the original cost of assets,less depreciation.
- 13. " Prudent utility pesetices" at a particular time means any of the practices, methods, and acts, which,in the exercise of reasonable judpnent m light of the facts (inaluding but not limited to the practices, methods and acts engaged in or approved by a significant portion of the gas or the electrical utility industry, as the case may be, prior thereto) known at the v time the decisiot. was made, would have been expected to accomplish the desired result at the lowest ressenable cost consistent with rehability, safety and expedition. Prudent utility practice is not intended to be limited to the optimum prsttice, method or act, to the exclusion of all others, but rather to be a spectrum of possible prsetices, methods or sets. In evaluat.
ing whether any matter conforms to prudent utility practice, the parties shall take into account the fact that the authority is ' rpo ste municipali-O ty of the state with the statutory duties n .3 m,asibilities thereof.
- 14. "Real property" means landa, structures, francisses and interests in land, including lands under water and riparian rights, and any and all other things and rights usually included within such term, and includes also any and all interests in such property less than full title, such sa easements, rights of wsy, uses, leases, beenses and all othte incorporeal hereditaments and every estate, interest or right, legal or equitable, including terms for O years and liens thereon by way of judgments, mortgages or otherwise, and also all claims for damages for such .eal estate.
- 15. "RCNLD" means the reproduction cost of new assets,less deprecia-tion.
16.
" Security" bond, debenture, evid means . .. m any>
debtedness, note,transferable stock (whether common share, voting. trust or preferred),
, certificate or, in general, any interest or instrument commonly known as a d- 35 l
m 5a l J
{ 1020-b PLTLIC AUTHORITIES LAW F "secunty", or any certificate of interest or prticipation in, temportar or interim eernficate for, receipt for, or warrut or right to subscribe to or purchue any of the feregoing.
- 17. " Service tres" means the counties of Suffolk and Nusau and that portion of the county of Queens constituting LILCO's franchise area u of the effective date of this title, g 18. "Shorehtm plant" means the nuclear powered facility designed to generate electric power owned by LILCO and located in Shoreham, New York.
- 19. " State" means the state of New York.
- 20. " State agency" means any board, authority, agency, department, commission, public corporation, body politic or instrumentality of the state.
21, ' Trustees" means the trustees of the authority appointel or elected,
- b. as the case may be, pursuant to section one thousand twenty.d of this title.
- 22. " Valuation date" means (i) the effective date of this title, (ii) the date of the tsking of the stuk or asseta punuant to this title or (iii) such earlier or later date or,in the case of equity or debt securities, such period of iriding days in the primary established market in which such securities are traded, as may be determined to be necessary to exclude from the determination of the market value thereof any enhancement or depreciation
> in value arising from the announcement, expectation or accomplishment of the taking by the exercise of the power of eminent domain or otherwise, or specu!ative market activity intended to cause or having the effect of causing an increase or decteue in such market value.
(Added L1986, c. 517, i 1; amended L1987, c. 381, i 1.)
1 Another i 102&b is set out in Tit'e 1-A post.
I Historical Now 1987 Amendment. Subd.11. L1937 Effective Dste. Section effective Jan.
- c. 381, i 1, eff July 23. 1987, included 15, 1987, pursuant to L1966, c. Sli, distnet corporsoons. i 11.
I 1020-<.1 Long Island power authority; creation
>. i. For the purpose of effectuating the policy declared in section one thousand twenty a of this t"'e, there i.s hereby created a corporate munici-pal instrumentality of the state to be known as the "leng Island power authority", which shall be a body corporate and politic and a political subdivision of the state, esercising essential governmental and public powen.
- 2. The area of operations of the authority shall be the service area.
- 8. The authority is not created or organized, and its operations shall not be conducted, for the purpose of making a profit. No part of the revenues or assets of the authority shallinute to the benefit of or be distributable to its trustees or officers or any other private persons, except as herein provided for actual services rendered.
(Added L1966, e. 517, i 1.)
g i Another i 1020-c is set out in *itle *-A post.
Historical Note Effective Data. Sect.on effective Jan.
15, 1987, pursuant to L1986, c. $17, i11.
36 6a i
PUBLIC AUTHORITIES LAW {lCOd A
i 102%I.1 Trusteen
- 1. The authority initially shall consist of nine trustees, who sha',1 serve until December thirty.first, nineteen hundred ninety one, five of whom to be appointed by the governor nne of whom shall be the chairman, two of
, whom to be appointed b the temporary president of the senate and two of
) whom to be appointed the speaker of the snembly. Each trustee shall hold office until his successor has been appointed and qualified. In the event of a vacancy occurring in the office of an initial trustee by death, resignation or otherwise, the respective appointing officer shall appoint a successor, who shall hold office for the unerpired term.
- 2. Beginning January first, nineteen hundred ninety two, such authority shall consist of twenty-two trustees. One trustee, who shall be the
.) chairman, shall be appointed by the governor, and shall serve at the governor's pleasure. Twenty one trustees shall be elected from districts established by the legislature. Each elected trustee shall be a resident of the district from which he is elected. No person who is elected or appointed official of the state or any municipality or any agency or instrumentality thereof, shall be qualified to serve as an elected trustee.
Each trustee shall hold office until his successor has been elected and 5 qualified. In the event of a vacancy occurrug in the office of a trustee by death, resignation or otherwise, a successor shall be chosen to hold office for the unexpired term in the manner prescribed by the election law.
- 3. Prior to May first, nineteen hundred ninecyone, and each tenth year thereafter, the legislature shall establish twenty one distri ta, which shall be equal in population as determined by the last federal decennial census, p 4. Such trustees, shall be elected in elections conducted by the boards of election pursuant to applicable provisions o' the election law. The first such election shall be held on the first Tuesday in December nineteen hundred ninety one, and the trustees so elected shall take office on January first, nineteen hundred ninety two. At such election seven trustees shall be elected for a term of one year; seven shall ba elected for a term of two years; and seven shall be elected for terms of three years each. Each such term ending on December thirty ftrst of the last year thereof. Not later than July first, nineteen hundred ninety<ne and each subsequent ynt in which a reapportionment or readjustment of such districts, takes place, the state board of elections shall determine by lot, which such trustees shall be elected for which terms. Thereafter, seven trustees shsll be elected on the first Tuesday in December of each year to replace the trustees whose terms will expire at the end of such year, for terms of three years each
, except that, all trustees shall be elected at the first election held after a reapportionment or readjustment of such districts. No political party shall be ei. titled to nominate candidates for the office of trustee at any such el. tion.
- 5. Un$ the trustees first elected pursuant to subdivision four hereof shall have taen office, five trustees shall constitute a quorum for the purpose of organizing the authority and conducting the business thereof.
> Thereafter, eleven trustees shall constitute a quorum for the purpose of conduct >ng the business of the authority. The vote of a majority of the trustees shall be required for the pwpose of taking action.
- 6. The trustee appointed as chairman as provided in this section shall receive an annual salary which shall be set at the salary prtseribed for the posit ions listed in paragraph (f) of subdivis.in one of section one hundred sixty nine of the executive law. Each other trustee shall receive no salary
) 37 7a
O-i1020-d PUBLIC AUTHORITIES LAW but shall be entitled to reimbursement for reasonable expenses in the performance of duties assigned hereunder.
9 7, Notwithstanding the provisions of any other law, no trustee, officer or employee of the state, any state agency or any municipality appointed a trustee of the authority the governor, the temporary president of de senate or the speaker of e assembly pursuant to subdivision one of this section shall be deemed to have forfeited or shall forfeit his offke or employment by reason of his acceptance of a trusteeship on the authority, his service thereon or his employment therewith.
O (Added L1966, c. 517, i 1.)
1 Another i 1024-d is set out in 'ntle 1-A pet.
Historical Note Ehtlee Dete. Section effeedve Jan.
15, 1987, pursuant to L1966, c. 617, g I II' ___
{1020-e.1 Officers and employees: expenses The board, or the chairman pursuant to authority duly delegated to him, from time to time shall hire, without regard to any personnel or civil service law, rule or regulation of the state and in accordsnee with guide-lines adopted by the authority such employees and consultants, including g' without limitation those in the areas of engineering, marketing, finance, appraisal, accounting and law, as it may require for the performance of its duties and shall prescrioe the duties and compensation of each officer and employee, provided, however, that if any such employees are hired sa a consequence of an acquisition of all the stock or assets of LILCO, they shall be hired subject and be enti'Fd to all applicable provisions of (i) any esisting contract or wntracta a*.h labor unions and (ii) all existing pension g or other retirement plans. Notwithstanding the provisions of any general, special or local law, the board may determine that, if any per,sion or retirement plan becomes inapplicable or is terminaud, all or such class or classes of employees of the authority as the board may determine may elect to become members of the New York state employees' retirement system on the basis o' compensation payable to them by the authority.
(Added L1986, c. $17, i 1.)
g 1 Another i 1020-e is set out in Title 1-A post.
~
Historical Note Effective Dete. Section effective Jan.
- 15. 1987, pursuant to L1986, c. 617, i 11.
$ l1024f. General powers of the authority Except as otherwise limited by this title, the authority shall have all of the powers necessary or convenient to carry out the purposes and provi-sions of this title, meluding without limiting the generah,ty of the fore-going, the power:
(a) To sue and be sued in all courta and to participate in actions and proceedings, whether judicial, administrative, arbitrative or otherwise; 8 (b) To have a corporate seal, and to alter such seal at pleasure, and to use it by causing it or t facsimile to be affixed or impressed or reproduced in any other manner; 38 9
8a h
C PUBUC AUTHORITIES LAW {1020-f (c) To appoint officers, agents and etnployees, without reged to any personnel or civil service law, rule or regulation of the state ud in C accoduce with guidelines adopted by the authority, prescribe their duties and qualifications and fix and pay their compensation; (d) To purchase, receive, take by grant, gift, devise, bequest or other-wise, lease, or otherwise acquire, own, hold, improve, employ, use and otherwise deal in and with, real or personal property whether tangible or intagible, or any aterest therein, rithin the state:
O. (e) To acquire raal or personal property, wi, ether tangible or intangible, including without limitation property rights, interests in property, franchis-es, obligations, contracts, and debt and equity securities, by the exercise of the power of eminent domain; preided, however, that any real property acqui ed by the exercise of the power of eminent domain must be located within the service area;
,. (f) To sell, convey, lease, exchuge, transfer, abandon or otherwise C dispose of, or mortgage, pledge or create a security interest h, all or any of its assets, properties or any interest therein, wherever situated; (g) To ;.uechase, take, rective, subscribe for, or otherwise acquire, hold, make a tencer offer for, vote, employ, sell, lend, lease, exchange, transfer, or otherwise dispose of, mortgage, pledge or grant a security interest in, use and otherwise deal in and with, bocis and other obligations, shares or
[
i other securities (or inorota J* rein) issued by others, whether engaged in 0 a similar or different os sus 3r activin; (h) To make and execut agreements, mntracts and other instruments necessary or conveaient in the exercise of the powers and functions of the authority under tHs title, including contracts with any person, futn, corpo-ration, municipality, state agency or other entity in accordance with the provisions of section one hundred three of the general municipallaw, and L all state agencies and all municipalities are hereby authori:4d to enter into O and do all things necessary to perform any such agreement, contract or other instrument with the authority; (i) To borrow money at such rste or rates of interest as the authonty l
may de' ermine, issue its notes, bonds or other obligations to evidence such i
indebtedness, and secure any ofits obligations by mortgage or pledge of all or any of its property or any interest therein, wherever situated;
- f. (j) To arrange for guarantees of its bonds, notes or other obligations by O the federal government or by any pnvate insure or otherwise, and to pay
[
I any premiums therefor, (1) To issue such bonds or notes on other obligations whether or not the in< ame therefrom is exempt from federalincome taxation; t (l) To purchase bonds, notes or othsr obligations of the authority at such I price or prices as the authority may determine; (m) To lend money, invest and reinvest its funds, and take and hold real and personal property as security for the payment of funds so loaned or invested; (n) To procure insurance against any loss in connection with its proper-ties or operations in such amount or amounts and from such insurers, including the federal government, as it may deem necessary or desirable, j
and to pay any premiums therefor; (oi To cm . or acquire one or more wholly owned subsidiaries in accordsnea s,U section one thousand twenty i of this title to carry out n!1 or ar~ part a the purposes of this title; 39 O
p- 9a l'.
1
y llhf PUBUC AttrHORmES LAW (p) To negotiate and enter into agnements with trustees or neeivers appointed by United States bankruptcy courts or federal district courts or G in other proceclings involving adjustment of debts and authorise legal counsel for the authority to appear in any such proceedmgs; (q) To fue a petition under chapter nine of title eleven of the United States bankruptcy code8 or take other similar action for the adjustment of ,
its debts; (r) To enter into agnements to purchase power from the power authert-g ty of the state of New York, the state, any state agency, any municipality, ,
any private entity, or any other available source at such price or prices as may be negotiated; provided, however, that the authority shall not have the power to enter into any agnement or any negotiation for the purchase of power from the dominion of Canada, or any political mbdivision, puPic authority or private corporstion therein; but may ente: . u an agreement with the power authority of the state of New "ork fer d purchase of such power, (s) To enter into management agreements f >r the operation of all or any of the property or facilit es owned by the auGority; (t) To transfer any asset of the authority to one or more (i) private utility or (ii) rnunicipa? gas or dectric agency established pursuant to article fourteen A of the general munieipal law, for such consideration and upon such terms as the authority may deterTnine to be in the best interest of the e gas and electric ratepayers in the service area; lu) Subject to the provisions of subdivision six of section one thousand twenty k of- this title and after holdin,g public hearings thereon upon reasonable public notice, with at least one such hearmg to be held ia the county of Suffolk and at least one in the county of Nanau, to fix rates and charges for the furnishing or rendition of gu or electric power or of any related service at the lowest level consistent with sound fiscal and operat-G ing practicas of the authority and which provide for safe and adequate service; (v) To enter upon any lands and within any building whenever in its judgment it may be neceaary for the purpos4 of making surveys and examinations to accomplish any purpose authorized by this title; (w) To enter into agruments to pay annual sums in lieu of tarts to any g- municipality with respect to any real property which is owned by the authority and is located in such municipality; (x) To maintain an office or offices at such place or places in the state as it may deter.nine; (y) To make any inquiry, investigation, survey or study which the author-ity may deem necessary to enable it effectively to carry out the provisions of this title and, for that purpose, to take and hear proofs an? testimony, e and with the prior vote of a majority of the board which majority vote shall include the vote of the chairman to compel the attendance of witnesses and to require the production of records, books, papers, accounts and other documents, including public records, and to make copies thereof or extracts therefrom; and (s) To adopt, revise, amend and repeal rules and regulations with respect to its operations, properties and facilities as may be necessary or conve.
O- nient to carry out the purposes of this title, subject to the provtsions of the state administrstive procedure act.
(Added Lt986, c. 617. I 1.)
40 9
l 10a O
).
PUBl.lC AL'THORITIES LAW {1020-g i Another i 1020-f is set out in 'htle 1-A poet.
811 U1C.A. I 901 et seq.
)
Historical Note F.tfectin Data. Section effecove hn.
15, 1987 pursuant to 1.1966, c. 517, i 11.
) i 1026-g.' Powers to provide and mainttJn generating, transmission and resource recovery waste to energy faculties Without limiting the generality of the powers conferrtd upon the authori-ty by section one thousand twenty f of this title, the authority shall have i the specific power: l (a) Subject to the provisions of subdivision one of seedon ten hundred twenty s of this title, to acquire, construet, improve, rehabilitate, maintain
),. and operate such generating, t:snsmission and related facilities as the authori deems necessary or desirable to maintain an adequate and dependa le supply of gas and electric power within the service area; (b) Subject to the provisions of subdivision one of section ten hundred twenty s of this title, to acquire, construct, improve, rehabilitate, maintain and operate such hydroelectric or energy storage reojects within the state as it deems necessary or desirable to contribute in '.he adequacy, economy
,) and reliab0ity of the supply of electric power and energy or to conserve fuel:
(c) Subject to the provisions of subdivision one of section tee hundred twenty.s of this title, to determine the location, type, size, construction, lease, purchase, ownership, acquisition, use and operation of any generat-ing, transmission or other related facility, provided, however, that in making such determinations relating to electric power facilities the authori-ty shall give primary consideration to the construction of energy efficient facilities, energy conservation, load management programs, and cogeners-tion in the service area; (d) To proceed with the physical constru Son or completion of any generating, transmission or related facility; (e) To apply to the appropriate agenciu and officii.is f the federal and state governmsnts, for such licenses, permits or approval of its plans or projects as it may deem necessary or advisable, and to accept such licenses, permits or approvals as may be tendered to it by r ich agencies or officials, upon such terms and conditions as it may deem .ppropriate; (f) To Institute suit, or to apply to any legislative body for legislation, or to take such other action sa it may deem necessary or advisable in the furtherance of the purposes of this t;tle and for the protection of its rights, Y' if for any reason the authority shall fail to secure any such license, permit
(. or approval as it may deem necessary or advisable; (g) To study means of maintaining the customer base in, and attracting commerce and industry to the service tras; (h) To implement programs and poliefes designed to increase the efficien-cy of ener end use, to shift demand from riods of high demand to periods of w demand and to facilitate the de elopment of cogeneration;
) (i) To develop, with public participation, a comprehensive least<ost plan which shall consider practial and economical use of conservation, renews-ble resources, and cogeneration for providing service to its customers; 41 11a
n r.t i
i1020-g PUBLIC AvrnOnrTIES LAW (j) To cooperate with and to enter into contractual arrangements with
.O. privat, utility companies or publie entities:
(0 with respect to the construction and operation of facilities by the authority and the sale of all or part of the output thenfrom; (ii) with respect to the construction, completion, ac and/or operaton of generating facilitie6, fuel, docks,quisition,sidings, loading or ownership ur. loading equipment, storage facilities and other subsidiary facilities and 0- th' di'p sit n of the output of such generating facilities; and (iii) with respect to the constructirn, acquisition, ownership, operation and/or use of transmission facilities; (k) To cooperate with and to entar into contractual arrangements with
, municipalities with respect to the construction, improvement, rehabilitation, ownership and/cr operation of generating facilities; (l) To cooperate with and to entar into contractual arrangements with Uc the New York state energy nsearch and developmeat authority in connee.
tion with the planning, siting, development, construction, operation and maintenance of generating facilities of the authority utilizing new energy technologies; (m) Subject to the provisions of section ten hundired twenty.sa of this title, to construct, matntain and operate resource recovery waste to energy q facilities; and (n) After the establishment of Long Island Powe: Authority (LIPA) and the commencement of its function as a utility, LIPA ahall acquire from LILCO all franchise and utility service reponsibilities for all ultimate consumers of gas and electricity within LILCO's former service territory,
-including the responsibility tc provide safe and adaquate service.
(Added L1966, c. 517, i 1.)
-0 2 Another i 1020-g is ut out in Tit:e 1-A post.
Historical Note Effective Dete. Section effective Jan.
15, 1967, pursuant to L1966. c. 517, i 11.
d i1020-h.1 Acquisition of property, including the exercise of the power of eminent don :.in
- L The legislature hereby expressly finds and determines:
(a) The acquisition by the authority, through purchase or the exercise of the power of eminent domain, of either the securities or assets of LlLCO whichever is less expensive for the ratepayers, as the authority may AV determine will be just to the ratepayers in the service ans, is the most appropriata means of dealing with the emergency involving the economv.
health and safety of the residents and the industry and commerce in the service area, notwithstanding the fact that-LILCO presently may be devoted to a public use, since the public use of such property by the uthority is hereby deemed to be superior to the pubhc use of such property by any other persen, association, or corporation.
(b) The authority, prior to exercis!c d: acquire the stock or assets of "LCO,g shallits power enter into of emirent domain negotiations with to LILCO for the purpose of sequirtng such stock or assets upon such terms as the authority, in its sole discretion determines will result in rates equal to or less than the rates which would result if LILCO were to continue in operation.
42 Q~
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PUBUC AUTHORITIES 1.AW {1020.h (e) The situs of all stock issued by LIMO, a New York corporation, is the state of New York.
m' (d) The compensation paid by the authority to L1140 shall be just to the 1 rstepayers in the service tres who must pay such compensation.
(e) If the authority determir.es that it is ths stock of LILCO tlat should be taken, the pmper measure of damages shall be the fair market value thereof as evidenced by the price of such stock on the exchange on which they are traded on the valuation date sines there is an establbhed market for such stock that la reflective of its value. In no event, however, shall consequential or severance damages be awarded tf control cf ULCO shall
} hace been taken by the authority.
(f) If the authority determines that it is the assets of LILCO that should be taken, fair market value would not constitute just compensation to LILCO since there is an insufficient market in the usual venst for its assets to ascertain the value thereof from the market. In determining the compensation payable for such assets, there shall be taken into considera. ,
tion the capitalization of ULCO's expected future eamings. -)
). . (g) LILCO has no reasonable expectation of realizing actual earnings from the Shoreham plant or of givmg effect to any earnings or returns which may have beer nflected on the books of L!LCO for accounting purposes. Moreover,it would not be nasonable, under current and nason-ably foreseeable ci.cumstances, to expect that the Shonham plant would be reproduced by a public or private utility in ULCO's present position. l k (h) LI140 would have to phase in over a long period of time any rate increases based on the costs of the Shonham plant.
4 (i) *he public senice commission has imposed a limitatio . on the earn, ings which LILCO may nalize on its interest in the Nine Mile Point nuclear power facility.
(j) The public service commission has irnposed on ULCO imprudenco penalties with respect to the Shoreham plant.
(k) la determining just compensation, the following facton shall be '
[^ evaluated in deciding whether OCLD or RCNLD or neither constitutes the proper basis:
(i) LILCO h a ngulated utility. Under the laws of the state providing for the regulation of utilities LILCO's futun earnings are restricted to the permitted rate of nturn times LILCO's OCLD.
(ii) ULCO presently is being operated as an enterprise the economic i viability of which is dependent upon extraordirary financial stability adjust-ments by the public service commission. Such extraordinary and unprece-dented rate nlief was granted by the public senice commission in oroer to provide cash flow nlief to pavent ULCO's bankruptcy with the expecta-tion that ratepayers would neeive the full credit of such in lower rates, and that the public service commission requind such extraordinary rate relief to be discontinued in the event that ULCO filed a petitbn for relief in a voluntary case under the Bankruptcy Act or if a final order for reli=f was entered involuntarily under such act. L1140's lack of profitability resulta not from any npressive or other improper action taken by any governmen-tal entity but from such facton as mismanagement, imprudent decisions regarding the Shoreham plant and general inefficiency.
-Cli) nere is no reasonable probability that, after condemnation of its assets, ULCO will nproduce them.
(>- (iv) Use of RCNLD may result in an unwarranted windfall to ULCO and an unjustifiable penalty to the ratepayers who would have to pay it, since 43 I
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-11020-h muC 9m:0mics law 4
to the extent an award based on RCNLD would excom, an award based on ;
}" OCLD, it would nflect to a large arent the effects of inflation which
' = ovid not increase the value of the property to ULCO or its rate base for ;
I retemaking purposes or to the auths '
geomte and transmit electric power .y service nthin the for thearea.
purpose of continuing to (l) Neither consequential not uvance damages are proper if the ,
authority condemns e.ll the asuts of Lil40.
-(m) In determining whether LILCO has any oing concern value, the b:
l court shall take into considation the feet that f!LCO's continued opera-tions an dependent upon the extraordinary financial stability adjustments granted by the public service commission.
l (n) Such an acquisition by the authority of the neurities or assets of 1 LILC) serves the public purposes of assuring the provision of an adequate ,
' supply of gas and electricity in a reliable, efficient and economic manner
), and ntaining ' existing commerce and industry in and attracting new commerce and industry to the service ma, all of which an matters of state wide concern.
- 2. In furthersnee of the legislat vei findings and determinations set forth in subdivision one of th's extion, the authority is he,nby authorized and empowered to acquire, Jtrough purchase or the exercise of the power of eminent domain, n!1 or any part of the securities or assets of ULCO, as the authonty in its sole disent on may determine; provided, however, that 3a prior to proceeding with any such sequisition under this title, the board shall determine, in its sole discretion based upon such engineering,- finan-O, .cial and legal data, studies and opinions as it may deem appropriate, that the rstes projected to be charged after such acquisition and for such reasonable period of time as the board may determine will not be higher than the rates projected to be charged by ULCO during such period if such acquisition had not occurred.
~
- 3. The authority also is suthorized and empowered, in its discretion, to 'l make a tender offer or tender offers for all or any portion of the securities i of ULCO at such price or prices as the authority may determine to be e appropriate; provided, however that such tender offer or tender offers, in the sole judgment of Oe authority, will result in rstes less than the rates which would result from continued operation by U140.
- 1 (a) The authority shall make such offer or offers or any adjustment thenof prior to acquiring any such securities or any assets of LILCO
, through the exercise of the power of eminent domain. The authority may. ,
pay for n h securities in cash er by exchanging thenfor the authority's bonds or . combination thereof. ~
- (b) In the case of a tender offer in which a subsidiary of the authority
- sequires at least sixty six and two thirdc nereent of LILCO's common S-stock, suen subsidiary may merge with Lil40 and eitMr continue in e
' existence or dissolve, as it may determine.
' (c) The provisions of section fivt bundred thirtan and article sixteen of
. ' the business corporation law and any other p ovisions of law relating to procedures in a corporate takeover, including withut limitation chapter -
nine hundred fifteen of the laws of ninetun hundnd eighty five, shall not
- 1. . be applicable to the actions of the authority punuant to this title,
- j. ;
(d) In determining whether acce tance of such a tender offer by the authority is in %e best intensts o ULC0, the directors of LILCO sha!!
consider not only the dollar amount of such offer but the interests of employees, suppliers, rat payers, creditors (including holdm of LILCO's debt securities), and the economy of the service area and the- state.
44 y
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PUBLIC ALTHORITIES LAW $1020-h .
- 4. The authority, should it determbe,6 fta sole discretion, ta sequin the stc.k or assets of ULCO by the exercise of the power of eminent j Jomain, shall not take title to nor posse =sion of such stock or asseta prior to a final determination of the amount of compensation to be paid for such stock or satets not prior to a determkation by the authority, in its sole discretion that the takhg of such stock or sasets will result in rates less than the rates which would result from continued operation by U140.
Notwithstanding the provisions of the eminent domain procedure law, the provisions of subdivisions five and six shall apply to the acquisition of the g stock or property of LII40 by the power of eminent domain, provided however, to the extent the provisions herein do not supersede or conflict with the provisions of such law the provisions of such law shall apply.
- 5. Procedure for acquisition of LILCO stock. (a) In the event the authority determines to acqui*e the stock of LILCO by the exercise of the power of eminent domain, having first entered into negotiations with LILCO for the purchase of such stock, the authority rseed not hold s.ny
$ public hearing on its intention to condemn such stock or on tl.e question of the public use of such action, such finding having been made by the legislature herein. The authority shall commence auch acquisition by serving upon LILCO and filing with the county clerk of the county in which the pnneipal office of ULCO is located et notice describing the stxk being acquired, the valuation date, as determined by the authority, and such additionalinformation as the authority may reuonably deem necessary to 3 facilitate the process of condemnation and payment. The notice shall state that it is a notice of pendency of an acquisition proceeding and that the authority wil elect whether or not to pay the amoutst of such award when it has been finally determined. De authority also shall cause a copy of such notice (i) to be served upon the stock tnnsfer agent or agents designated by ULCO for the transfer and registration of tu stock and (ii) to be published in st least five successive issues of a daily newspaper of 3 national circulation.
(b) Upon receipt of such notice. the stock tnnsfer agent or agents, at the expense of the authority, shall forthwith serve upon each of the registered owners of such stock a copy of such notice. Service shall be deemed sufficient if mailed by certified or registered mail to the address of each such owner as show on LILCO's stock tnnsfer books. Service of the notice upon the stock tnnsfer agent or agents and its publication shall not 3 be jurisdictional prerequisites to the validity of the taking. Failure to not:fy any own.:r of stock to be taken will not invalidate any proceedings brought hereunder or any title acquired by the authorhy.
(c) Upon filing af the notice described in paragnph (a) hereof, the authority shall ytition a special term of the supreme court in the judicial district m which ULCO has its principal office for the acquisition of the stock. Such pe.ition shall be generally in the form prescribed by the 9 eminent domain procedure law so far sa consistent herewith.
(d) The supreme court in th district in which LILCO has its Mncipal office chall hr- exclusive juradiction to hear and determine claims
- arising from . , acquisition of stock by the exercise of ths power of j eminent domain and shall hear such claims without a jury and without refera! w a tvferee or commissioners. Notwithstanding the provisens of
.ec'r.m nine hundred one of the civil practice law and rules, upon motion to I the court bv the authority, the condemnation proceedir.g for the acquisition of stock shall be maintained as a class action, pursuant to remaining provisions of article nine of the civil practice law and rules, and the owners 45
.e
}
L
{
i1020-h PUBLIC AUTHORITIES LAW of the stock shall be deemed a defendant class on the buis of the following erpress legislatne findings:
I (i) the clus of ULCG stock owners is so numerous thct joinder af all membars is impractiesble; b (ii) the issue of enluation of ULCO atock is common to all ULCO stock owners and thers are questinra of law or fact common to the members of -
such clus which predominate over aay questions affecting on!y individual
- members; (iii) the claims or defenses,if any, of any representative owner of ULCO ,
stock to acq".isition thereof by th authority are typical of the claims or defenses of the cltss; (iv) there are representative f protect the 6terests of the class; andparties who will fairly and adequately l (v) the prosecution of separate actions by or against individual memLrs of the class would create a risk of inconsistent or varying adjudications with respect to the issue of valuation and other issnes common to the class.
I (e) The procedure for determining just compensation shall be in the manner prescribed by the eminent domaia procedure law, except to the g extent such prxedure is inconsistent with the provisions of this title, in which case the provisions of this title rhall control.
(f) Uoon the entry of an award finally determining just compensation for the stock, the authority shall have sixty days after receipt of notice of entry of such aw4rd within which to elect to proceed with the taking or to abandon such acquisition as provided in subdwision ten hereof. Notice of I
{ such election shall be served by the authority and by the stock transfer g agent in the mannet d(scribed in paragraph (a) hereof, if the authority elects to proceed with the acquisition, it shall deposit with the suprerne court in which the condemnation proceeding wu held an amount equal to the award within one hundred eighty days after receipt by the authority of notice of entry of such award. Upon the making of auch deposit, the authority shall notify ULCO's stock vansfer agent in writing of such deposit. The sum so oe domain procedure law. positied shall be applied as provided in the errinent Upon making such deposit ano ginng such notice D
to the stock transfer agent, title to all stock described in the notice of taking shall immediately vest in the authe:ity and the author ty shall have the immediate right theretc. In the event the authority elects to abandon the acquisition, the provisions of subdivision ten hereof shall appiy.
{
t (g) It shall be a condition precedent to the payment of compeasation for -
any such securities that such securities be surrendered to the supreme b court or to such other entity, incluuing the issuer's stock trn isfer agent, as the supreme court msy direct.
- 6. Procedure for acquisition of ULCO assets. (a)lf the au'hority shall find it necessary or convenient to acquire any real or prsonal property of ULCO, (other than securities), whether for immediate or future use, then the authority need not determine that such property is required for publie use, since the legislature already has made such determination in this title L
F which determiration shall be binding for all purposes. The authority need not publish any notice of its intention to acquire such property or hold any public hearing with respect thcreto or to the public use of such action.
(b) When any real property of ULCO within this state is rought to be equired oy the e.xercise of the power of eminent domain, and after the aatherity shall have ente ed into negotiations with LILCO for the purchase of such property, the authority shall cause a servey and map t' be made thereof and shall cause such survey and mtp to be filed in its office and in 46 16a l
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. . . . _ _ _ _ - _ - - - - - - - - - - - - " ' ~ ^ ~ ~ - ~ ~
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PUBLIC AITI'HORITIES LAW { 1020-h the office of the county clerk in which such property is located. There shall be annexed to such survey and map a certificate e.tecuted by the chief engineer of the authority, or by such other officer or employee as may be O designated by the board, ttsting that the property or interest therein described in such survey and snap is necessary for its purposes.
(c) Upon filing such survey and map, the authe*rity shall petition a special term of the sup eme court in the jtidicial district ir which the pro located for the acqWsition of such property or interest therem.perty Such is petition sha!! describe the property being acquired, the valuation date, u determined by the authority, and such additionalinformation u the author-O icy may reasonably deem necessary to facilitate the process of condemna-tion and payment. The petition shal) state that the r,uthority will elect whether or not to pay the amount of such award when it hu been feally determined. In all other respects, such petition shall be generslly in th'e fo n prescribed by the eminent domain procedure law, so far u consistot ether with a notice of pendency of the proceed-q- herewith. Such ing, shall be filed in thepetition,tofice of of the count { clerk of the county in the property is located and shall os indexw and recorded u provided by 4 law. A copy of such petition, together with a notice of the presentation thereof to such special term of the supreme court, shall be served upon the owners of such propert) as provided m the eminent domain procedure law.
The authority r v cause a duplicate original affidavit of the service thereof ta be re .ued in the books used for recording deeds in the office of the county cle<. of the county in which the property described in such
.n notice is lo:sted, and the recording of such affidavit shall be prtrna facie o tvidence of due service thereof, (d) Subsequent proceedin shall be conducted generally in the manner prescribed by the eminent omain procedure law except to the extent the provisions thereof are inconsistent with the provisions of this title,in which case the provisions of this title shall control.
.(e) In any procMing involving the valuation of ULCO property taken O' by the authority the supreme court shall ascertain and determine just compensation for the property taken as of the valuation date, gwing due consideration to the applicable findings and determinations of the legisla-ture set forth in subdivision one hereof.
(f) Should LILCO's property be taken by the exercise of the power of eminent domain omd if UI.CO shall have agreed upon the compensation to be paid therefor M settlement of the proceeding, if, ULCO shall be entitled O to payment of the agreed or awarded compensatien within one hundred eighty days after the date of the sgreement upon the ameunt of the compensation or of the entry of the award, together with interm upon the amount of such compensation from the time of acquisition thereof by tP authority to the date of payment of such compensatien; but such int %
shall cease upon the service t,y the authority, upon the person or cortw, tion entitled thereto, of a fifteen days' notice that the authority is ready
.q and willing to pay the amount of such compensation upon the presentation
' of proper proofs and vouchers. Such notice shall be served personally or by registered mail and publication thereof shall be made at leut once a week for these successive weeks in a daily newspaper of general circulation tu the count'; in which such property or any part thereof is located.
(g) Upon the entry of an award finally determining just compensation for the property of ULCO, the authority shall have sixty days after receipt of notice of entry of such award within which to elect to proceed with the "q
taki,g or to abandon such acquisition as provided in subdivision ten hereof.
Notice of sveh election shall be served by the authority on the owners of 47 lO
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{ 1020-h PUBUC AUTHORITIES LAW D_ _
such property in the manner described b psrsgraph (c) hereof. If the authority elects to proceed with the acquhition, it shall deposit with the supreme court in which the condemnation proceedeg was held an smount i
equal to the award within one hundred eighty days after receipt by the authority of notice of entry of such award. Upon the making of such c
deposit, the authority shall notify ULCO in wHtag of such deposit. The O sem so depoalted shall be applied as provided in the eminent domain procedure law. Upon making such deposit and giving such notice to ULCO, title to a'l property described in the notice of taking shallimmedi-ately vest in the authority and the authority shtll have the immediate right thereto. The order satting forth :he award, together with evidence from the clerk of the court of receipt of the ameint of the award, shall be filed in the office of the county ejerk of the county in which the property is O located and shall be indexed and recorded in the same manner as a notice of pendency under the eminent domain procedure law. The cater or person in possession of such property shall delivu possession thereof to the authority upon demand, and in case possession is not delivered then demanded or demand is not convenient because of absence of the owner or inability to locate or determine the owner, the authority may apply to the court without notice for an order requiring the sheriff to put it bto
-n possession of such real preperty. Such an order shall be executed as if it
'" were an execution for the delivery of the possession of the property. In the event the authority elects to abandon the acquisition, the provisions of subdivision ten hereof shall apply.
f L At any time the authority and its uuly authorized agents and employ-ees may, on reasonable notice and during business boun,(i) enter upon any real property proposed to be acquist.d for the purpose of making the 0- surveys or maps mutioned in this section, or of making such other surveys, inspections or examinations of real and personal property and (ii) inspect and make copies of the books and records of the issuer of such securities, all as the authority may deem necessary or convenient for the purposes of this title.
B. IJpon the acquisition of all the outstanding shares of stock of 6.
corporate issuar representing all the voting rights and equity thereof, the O authority shall as soon as reasonably practicable take all steps neccesary to assure that the rights and claims of all the holders of any other stock and debt securitiet and all other creditors thereof are as secure as they were immediately prior to the acquisition by the authority. Nothing herein shall prohibit the authority from taking any appropriate and prudent action to renegotiate and restr.-ture such debt or from purchasmg the preferred stack and debt securities issued by such corporation at such prices as the authority may determine. The authority may also exchange its bonds for
,' O' any outstanding preferred stock or debt securities with the consent of the holders of such preferred stock or debt securities.
- 9. /ui soon sa pruticable after the authority has acquired sufficient shares of LILCO stoch to do so or after it has acquired all the property of ,
L1140 pursuant to this title,.the authority shall forthwith cbse and decommission the Shoreham plant and rhallinvestigate and develop alter-native uses, if any, for such plant.
'O
- 10. If the authority determines, in its sole discretioa, that the total cost of acquisition will result in rates in excess of the rates which would imit from continued operation by LILCO, the authority shall abandon at acquisition. In such event, the authority shall serve 4.otice of such aban-donment (1)in the case of a stock acquisition, by causing to be mailed by certified or registered mail a copy of such notice to each former owner of
'j 48 18a I g
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PUBLIC AITTHORTITES LAW i1020-1 stock as shown on LILCO's stock transfer books immediately prior to such acquisition at the address shown ors such stock transfer books and by O causing to be published a copy of such notice in at least five successive innues of a daily newspaper of national circulation or (ii)in the case of an asset acquisition, in the same manner as provided for the service of a peution for acquisition in paragraph (c) of subdivision six hereof. In addition,in the case of an asset acquisition the authonty shall file a copy of the notice of abandonment with the county clerk of the county in w}uch is located any real pmperty that was taken and with the clerk of the supreme Q court in which the proceeding was instituted.
- 11. The provisions with respect to the valuation of stock and property set forth in this section shall apply only to stock or property of LILLO, as the case may be, acquired by the authority by the exercise of the power of eminent domain.
(Added L1986, c. f17, i 1.)
1 Amsther i 1020-h is set out in htle 1-A post.
Historical Note Errective Date. Section effective Jan.
- 15. 1981, punuant to L1986, c. 611, i 11.
, Law Review Commentaries Ughts out fnt LILCO: A look - .t New York's takeover plan. 53 Brook]yn LRev. 723 (1987).
Notas of Dxisions Constitutionality 1 process. long Island Ughting Co. v.
Merger with subsidiary ? Cuomo, N.D.N.Y.1987, 666 F.Supp. 370.
O . w erger with .ub.idiarr Provision of leng Island Power Au-1, Constitutionality thority Act which allowed power authort Provision of New York long Island ty subsidiary acquirtng two thrds of Power Authonty Act which eumpted power company's common stoch to power authonty from terms of aantake- merge with power company, eluninsung over statute had argvable justification in rights of power company's shareholders irrelevance of purposes of antitakeover to vote on propoud merger, su not O. .tatute to acquwuon of po er company stuu of state s pouce pwer and saus.
by public authonty and, therefort, was fied pnnciples of suhtanuve due pro-legitimate esercise of police porer and een. Long Island ughung Co. v. Cuo-asu:fied principles of substanove due mo, N.D.N.Y.1987, 666 y.Supp. 310.
I1020-1.1 Subsidiades
'g 1. The authority shall have the right to exercise and perform all or part
. of its powers and functions through one or more wholly owned subsidiaries by acquiring the voting shares thereof or by resolution of the board threcting any of P.s trustees, officers or employees to crganize a subsidiary rofit corporation cerporstion lew pursuant to the business or the transportatian corporation corporations law.law, theres-Such not-for7.ution alw.ll
' ' *
- p#'rescribe the purpose for which such subsidiary corporation is to be O . The authority may transfer <,o any subsidiary entporstion any mon-eys, property (real, personal or ndxed) or facilities in order to evry out the purposes of this title. Each such sutskiiary corporation shall have all the 49 O
I l
7 19a '
Q-
O A
i1020-1 PUBLIC AUTHORITIES LAW O
~lJ privileges, immunities, %x exemptions and other exemptions of the authori.
ty to the extent the same are not inconsistent 57th the statute or statutes pursuant to which such subsidiary was incorporated provided, however, that in any event any such subsidiary corporation 6 hall be entitled to nempticas from the state public service law and any regulation by, or the jurisdiction of, the public service commission, and the state environmental O Su'htY "'" *ct t th' t*"t P'"vid'd in 'ubdivi'i " *** f "'ti ' "' '
thousand twenty s of this title.
(Added L1986 c. 517, i 1.)
I Another i 10241 is set out in Title 1-A post
- Historical Note Effective Date. Section effective Jan.
O 15. 1987, pursuant to L19ss. e. 517, i 11.
I102%).8 Notes of the authority The authc-ity shall have the power and is hereby authorized from time to time to issue its negotiable notes in conformity with appheable provisione O~' 'I th' ""!' "" ' **"'i'l
- d' ' ' '"Y ' '? t* purpose and to refuri from time to time any notes by the issuance of new notes, whether th.
notes to be refunded have or have not matured. The authority may issue notes partly to refund notes or to discha:ge other obligations then out, standing and partly for any other corporate purpose of the authori:y. The notes may be authorized, sold, executed and delinred in the same manner as bonds. Any resolution or resolutions authorizing notes of the authority 0 or any issue there f may c ntain any provisions which the authonty is authorized to include in any resolution or esolutions authonzing bonds of he authority or any issue threof, and the authority may include in any notes any terms, covenants or conditions which it is authorized to include in anybonds.
(Added L1986, c. 517. I 1.1 1 Another { 1000-j is set out in Title 1-A post.
O Historical Note Effective Date. Section affective Jan.
- 15. 1957, pursuant to L1986, c. 517, i 11 l102bk.1 Bonds of the authority -
0 1. The authority shall have power and is hereby authorized from time to -
time to issue its negotiable bonds in conformity with applicable provisions ot' the uniform commercial code for any purpose authorized by this title, including without li.nitation (a) to acquire any real or personal property cr facilities deemed necessary by the authority,(b) to pay interest on bonds or notes of the authority,(c) to estr.blish reserves to secure such bonds and notes, (d) to establish or maintain such other funds or accounts for such O purpose or purposes as the authonty may deem necessary or desirable, and (c' to pay all other expenses of the authority incident to the issuance of such bonds or notes.
- 2. Except as may be otherwise expressly provided by the authority, the bonds and notes of every issue si'all be general obligations of the authority payable out of any montys or revenues of the authority, subject only to O
, 20a
" i PUBLIC AttrHORITIES LAW - gg g a-v agreements with the holders of particular bonds or notes, or any ts - thuefor, pledging any particular moneys or revenues.
s e authority shall have power (n n tirce to time, wherever it deems retp~eg expedient, to rtfund any bonds by the issuance of new bonds, whether the bonds to be refunded teve or have not matured, and may it, sue
.O bonds partjy to refund bonds then outstanding and partly for any other corporste purpose of the authority. Refunding bonds may be eschanged for the bonda to be nefunded, with such cash adjustmenta as may be agreed, or may be sold with the proceeds applied to the purchase, peyment or provision for payment of the bonds to be refunded.
- 4. Bonds may be issued, payable in annual installrnents or as term bonds or both. Bonds shall be authorised by resolution of the board of the O authority and shall bear such date or dates, mature e,t such time or times, not exceeding fi.f ty years from their respective dates, bear interest at such rate or rstes, be in st'ch denominations, be in such form, either coupon or registered, carry such registration privileges, be executed in such manner, be payable in lawful money of the United States of Amenes or by check at such place or places, and be subject to such terms of redemption, as such resolution or resolutions may provide. In the event that term bonds are
-Q" issued, the resolution authorizing the same may make such provisions for the establishment and maintenance of sinking funds for the payment thereof as the authority may deem necessary or appropriate. Bonds or notes may be sold at public or private sale at such price or trices as the authority shall determme but shall not be sold by the authonty at private sale unless such sale and terms thereof have been approved in writing by
( the state comptroller, Pending preparation of definitive bonds or notes.
n'
'- the authority may issue bonds or notes in temporary form which shall be exchangeu for bonds or notes in definitive form when available.
- 5. Any resolution or resolutions authorizing any bonds or any issue of bonds may (a) delegate to an officer or officers of the authority the power to approve the issuance of bonds from time to time and to fix the details of any auch bonds or issues of bonds by an appropri. ' certificate of such authorised officer or officers and (b) contain provis.;as, which shall be a 3' part of the contract with the holders of the bonds to be authorized as to: (il pledging or creating a lien on all or any part of the moneys, revenucs or properties of the authority to secure the payment of the bonds or of any particular issue of bonds or anv portion of any issue of bonds, subject to such agreements with bondholders as may then exist:
(ii) the rates, fees and other charges to be charged, and the amounts to be rai$ee in each year ther.by, and the use ano disposition of the revenues:
O (iii) the setting aside of reserves or sinking funds, and the regulation and disposition thereof; (iv) limitations on the right of the authority to restrict and regulate the use of any of its property:
(v) limitations on the ps yse to which the proceeds of sale of any issue of bonds then or thereafur a. be issued may be applied:
O (vi) limitations on the issuance of additional bonds, the terms upon which additionalbonds inay be issued and secured, and the refunding of outstand-ing t inds:
(vii) the procedure, if and I,y which the terms of any contract with bondholders may be amended, the amount or percentage of outstanding bonds the hoiders of which must consent thereto, and the manner in wWh O- such cor.sent may be given:
51 9
21a l 0:
_ _ _ _ _ _ . _ _ _ _ _ _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ . _ _ m -
s O
{1020.-k PUBLIC AUTHORITIES LAW (c'ii) defining the acts or omissions to act which shall constitute a default 9 in the duties of the authority to holders of in obligations and providing the rights and nmedies of such holders or of a trustee acting on their behalfin the event of a default; and
' (ix) any other matters of like or different character, which in any way may affect the security and pwtection of the bonds and the rights of the holders thereof. *
- 6. Notwithstanding any other provisions of this title, any such resolu.
O tion or resolutions shall contain a covenant by th authonty that it will at all times maintain rates, fees or charges sufficient to psy, and that any contracts entered into by the authority for the sale, transmission or distribution of electricity shall contain rates, fees or charges sufficient to pay, the costa of operation and maintenance of the faci;itier owned or operated by the authority, payments in lieu of tees, renewals, replace-ments and capital additions, the principal of and interest on any obligations b issued pursuant to such resolution as the same severally become due and payable, and to establish or maintain any reserves or other funds or accounts required or established by or pursuant to the terms of such resolu' ion or resolutions.
- 7. It is the intention of the legislature that any pledge of moneys, j revenues or property or of a revenue producing contract or contracts made i by the authority shall be valid and binding from the time when 6e pledge g is made; that the moneys, revenues or proceeds so pledged and thereafter received by the authority shall immediately be subject tc the lien of such pledge without any physical delivery thereof or further act; and that the lien of any such pledge shall be valid and binding ss against all parties having clahns of any kind in tort, contract or otherv.ise against the authority irrespective of whether such parties have notice thereof. Neither the resolution nor ar y other instrument by which a pledge or lien is created g pursuant to this subdivision need be recorded in order to peueet such pledge or hen.
- 8. Neither the trustees of the suthority nor any person executing the bonds or notes shall be liable personally on the bonds or notes or be subject to any personalliscility or accountability by reason of the issuance thereof.
- 9. The authority shall have power out of any funds available therefor to purchase bonds or notes at such price or prices as it deems advisable. The D sathority may hold, pledge, cancel or resell suen bonds, subject to agre+
ments with bondholdets.
- 10. A1. bonds, notes and other obligations issued by the authority under the provisbns of this title are hereby helared to have all the quahties and incidents of negotiable instruments under the applicable laws of the state.
(Ajded L1986, c. A17, i 1.)
1 Another i 1020-k is set out in Titje 1-A post.
Historical Note Effective Date. Section effective hn.
15.19P7, pursuant to L1986, c. 517 I 11.
l l2020-l.3 State and municipalities not liable on bonds or notes l ' The bonds, notes and other obligstions of the authority shall not be a debt of the state or of any municipality, and neither the state nor any municipality shall be liable thereon. The authority shall not have the 52 6
wae-t 22a 1
r oa PUBLIC ALTHORmES LAW 61020n power t> pledge the credit, the revenues or the taxing power of the state or
- O ' "Y ""* ~h*7 ""d"'i*" ***" " "' """""'*"8 power of the st. o'r of any municipality shall be,"or shall be deemed to be,
~ pledged to the payment of any bonds, notes or other obhgations of the authority. Eac' evidence of indebtedness of the authority, including the bonds and notes of the authority, shall contain a clear and explicit state, ment of the provisions of this section.
(Added L1986, e. 515. I 1.)
g' 1 Another i 1020-l is set out in 'Utle 1- , ca t.
Illstorical Note Effective Date. Section effective Jan.
15, 1987, pursuant to L1986, c. 517,,
i 11 S l 1024 m.3 Legal investments Any bonds or notes issued by the authority are hereby made securities in which all public officers and bodies of this state and all municipalities, all insurance companies and associations and other persons carrying on an insurance business, all banks, bankers, trust companies, savings banks and savings associations, including savings and loan associations, building and lean associations, investment companies and other persons carrying on a O banking basiness, all trusts, estates and guardianships and all other persons whatsoever, who are now or may hereafter be authorized to invest m bonds or other obligations of the state, may properly and legally invest funds, including capital in their control or belonging to them. The bonds and notes are also hereby made securities which may be deposited with and shall be received by all public officers and bodies of the state ar.d all reunicipalities for any purpo6e for which the deposit of bonds or other 9 obligations of the state is now or may hereafter be authorized.
(Added L1986. c. b17, i 1.)
i Another l 1020-m is set out in Titje 1-A post.
Historical Note Effective Date. Section effeenve Jan.
5 987, punusnt to L1986, c. 517,
} 1020- n.' Depoelt and investment of moneys of the authority 1.' All moneys of the authority from whateve source deri.ed, except as otherwise authorized or provided in this title, shall be paid to the treasurer of the autnority and shall be deposited forthwith m a bank or banks g designated by the authority. Le moneys in such accounts shall be reith*=un on the order of such person or persons as the authority may authorbe. All deposits of such moneys shall be securs,in accordance witn section two thousand nine hundred twenty five of this cht.pter The state comptroller and his legally autho,ized representatives are authorized and smpoured from time to time to examine the accounts r.nd books of the s ~ . 9 j, including its receipts, disbursements, contracts, leases, sinking runds, investments and any other records and, papers relating to its G financial standing; the authority shall not be requtred to pay a fee for any such examination.
- 2. De authority shall have power to contact with holders of any of its bonds or notes, or any trustee therefor, as to the custody, ecllection, 53
~
9
\
23a 9.
b
{1020-n PUBLIC ASHORITIES LAW D
securing, investment and payment of any moneys of the authority and of any moneys held in trust or otherwise for the payment of bonds or notes, and to cany out any such contract. Moneys held in trust or otherwise for the payment of bonds or notes or in any way to secure bonds or notes and deposits of such moneys shall be secured in accordance with section two thousand nine hundred twenty five of this chapter, and all banks and trust S companies in the state are authorized to give such secunty for such deposits.
- 3. Subject to speements with noteholders and eendholders or any trustee therefor, the authority shall prescribe a uniform system of ac-counts in accordance with generally accepted acacunting principlcs.
(Added L1986, c. 517, i 1.)
g 1 Another i 1024-n is set out in Title 1-A post Historical Note l Enective Date, faction effecove Jan.
15, 1987, pursuant to L1986, c. 517, i 11.
g i 1020-e.1 Agreement of the state
- 1. The state of New York does hereby pledge to and agree with the hold +s of any obhgations issued under this title and the parties to any contracts with the authority hereunder that the state will not limit or alter the rights hereby vested in the authority until such ?bliptions together
- .ith the interest thereon are fully met and discharged and/or such con-tracts are fully performed t.i the part of the avtWty, provided that 3 nothing herein contained shall prtclude such limitation or alteration if and when adequate provision shall be made by law for the protection of the holders of such obligations of the authority, or those entering into such contracts with the authority. The authority as sgent for the state is authorized to include this pledge and agreemen. by the state in all agree-ments with the holders of such obligations and in ul ruch contracts.
- 2. Nothing in this title shall be construed at diminishing or enlarging
$ any valid existing rights under s . 'icense heretofore issued pursuant to ,
the prodsions of the federal power act.
I (added L1965. t 517, i 1.)
1 Another i 1020 o is set out in Title 1-A post.
Historical Note ER.etive Date. .cecuen effettive Jan.
O 15, 1987, pursuant to L1986, c. Elf, .
I 11.
I1020p. Exemption from taxation L lt is hereby found and declared that the operation of the authority is prinarily for the benefit of the people of the state of New York, for the g m.provement of their health, weifue and prosperity, an6 is a public purposs, sni the authority shall be regsrded as performing sn essential governmental function in carrying nut the provisions of this title.
- 2. The authority shall be required to pay no taaes nor assessments upon any of the property acquired or controlled by it or upon its activities in the operation and msintenance thereof or upon income derived thertfrom.
l provided that nothing herein shall prevent the authority from entering into O M l
l 24a i S l
O PUBLIC AtTHORITIES LAW f1020s n
v agreements to make payments in lieu of taxes with the governing bodies of municipalities, u provided for in section one thousand twenty q of this title.
- 8. The securities and other obligations issued by the authority, their trsasfer and the income therefrom shall, at all times, be free from taxation by the state or any municipality, axcept for estate and gift taxes.
, (Added L1986, c. 617, i 1.)
8 Another i 1020-p is set out in Title 1-A post.
O Historical Note Effective Data. Section effectne Jan.
15, 1987, pursuant to L1986, c. 517, i 11.
i1020-q.3 Paymenta in lieu of taxes O
- 1. Each year after property theretofoit owned by LILCO is acquired by the authority by any mer.ns authorized by this title and, as e consequence, is removed from the tax rolls, the authority shall make payments in lieu of taxes to municipalities and school districts equal to the taxes and asses -
ments which would have been received from year to year by each such jurisdiction if such acquisition had not occurred, except for such taxing n" jurisdictions which tax the Shoreham plant, in which case the in lieu of tax payments shall in the first year after the acquisition be equal to one hundred percent of the taxes and assessments which would have been received by such taxing jurisdictions. In each succeeding year such in lieu.
of tax payments shall be decreased by tan percent until such time as such payments equal taxes and assessments which would have been levied on such plant in a nonoperative state.
O 2. The authority shall also make payments in lieu of taxes for those taxes which would otherwise be imposed upon LILCO, if LILCO were to continue in operation, pursuant to sections one hundred eighty-six, one hundred eighty-six-a, one hundred eighty six b and one hundred eighty-six c of the tax law, paragraph (b) of subdivision four of section one hundred seventy.four of the navigation law, and any taxes imposed by a city pursuant to the authorization granted by section twenty b of the general O. city law,
- 3. No municipality or governmental subdivision, including a schoci e district or special district, shall be liable to the authority or any other entity for a refund of property taxes originally assessed against the Shoreham i
~
plant. Any judicial determination that the Shoreham plant assessment was excessive, unequal or unlawful for any of the years from nineteen hundred n seventy six to the effective date of this title shall not result in a refund by d
any taxing jurisdiction of taxes previously paid by LILCO pursuant to such Shoreham phnt assessment. The authority shall discontinue and abandon all proceedmgs, brought by its predecessor in interest, which seek the repayment of c.ll or part of the taxes assessed against the Shoreham plant.
(Added L1986, c $17, i 1.)
3 Another i 1020 q is set out in Title 1-A poet.
,g Historical Note Effestive Date. Section effective Jan.
15, 1987, punuant to L1966, c. 517, i 11.
55 O
t l
25a I O l 1
l
__x-__--_-_______-______-__-___-__.___-_--__--------_----_------------_----------------------------
91020-r. Pusuc Attraonmts LAW
- l 1086 4.1 Repayment of state appropriations b All appro ristions made by the state to h authority shall be tnated as advances b the state to the authority, and shall be npaid to it withc4
. interest either out of the proceeds of- bonds issued by the author. v ~
.x pursuant to the provisions of this title, or by the delivery of non intenst bearing bonds of the authority to the state for all or any part of such advances, or out of eseess revenues of the authority, at such times acd on such conditions as the state and the authority mutually may agne upon.
b (Added L1984, c. Elf, i 1.1 1 Another ( 1030-r is set out in htte 1-A poet, Historical Note Effective Deu. Secuos effective Jan.
15, 1987, pursuant to L1986, c. 517, E. .
i 1026 4.8 Public service law generally not applicable to authorityt inconsistent provisions in certain other acts superseded 5
L The rates, services and practices relating to the electricity' generated by facilities owned or operated by the authority shall not be subject to the F provisions of the public service law or to regulation by, or the risdiction of, the public service commission, except to the extent (a) artie seven of K' ' the public service law applies to the sitag and operation of a major utility ,
transmission facility as dermed therein,(b) article eight of such law applies to the siting of a generating facility as defined therein, and (c) section eighteen a of such law provides for assessment for certain costs, property.
or operations.- -w s :2. The issuance by the authority of its obligttions to acquire the k . securities or assets of LILCO sha!! be deemed not to be state action" within the meaning of the state environmental quality review act, and such set shall not be applicable in any respect to such acquisition or any action of the author:ty to effect such acquisition.
(Added L1984, c. 517, i 1.) . ..
l Another i 1020 4 is set out in 'litle 1-A poet.
Hintericai Note .
h Effectlte Dete. Section effective Jan.
15, 1987, pursuant to L1986, c. 517, c g gg,
/E N l 192M.8 Authority not to construct or operste a nuclear powered facility in the service aos In no event shall the authority construct or operste a nuclear powered facility in the service area.
- (Added L1904, c. 517, i 1.) -
W l Another i 1020-t is set out in Title 1-A poet.
' Historical Note
' Effectlee Dete. Section effective Jan. -
15,-1987, pursuant to L1986, c. 517, I 11.
g 6
r 9 4
_=- '
$$..~ p
PUBLIC AUTHORITIES LAW { 1020-v l 102%u,1 Employees of the authority not subject to the public employ-ees' fait employment act
> All empicyees of the authority shall be exempt from the provisions of the public employees' fair employment act as att forth in article fourteen of the civil service ,aw.
(Added L1966, c. 611, i 1.)
1 Another i 1024-u is set out in Title 1-A post.
Hlatorical Note P
thetin D*te. Section effective An.
15, 1987, pursuant to L1986, c. 511, i11.
(102be.1 Equal employment opportunity ud minority and women owned business enterprise programs b 1. All contracts entered into by the authority pursuant to this title of whatever nature and all documents soliciting bids or , proposals th efoi shall contain or make reference to the followmg provisions:
(a) The contncter will not discriminate against employees or applicants for employment because of race, creed, color, national origin, sex, age, disability, or merital status, and will undertake or continue existing pro-grams of affirmative action to ensure that minority group penons and
> women are afforded equal opportunity without diseruninstion. Such pro-gnms shall include, but not be limited to, recruitment, employrnent, job assignment, promotion, upgrading, demot en, transfer, layoff, termination, i
rates of pay or other forms of compensation, and selection fwr training and retraining, including apprenticeship and on-the-job training.
(b) At the request of the authority, the contractor shall request uch employment agency, labor union, or authorized representative of workers
> with which it has a collective bargainini; or other agreement or under-standing and which is involved in the performance of the contract with the authority to furnish a written statement that such employment agency, labor union or representative shall not discrQninate because of race, creed.
color, national origin, sex, age, disability or marital status and that such union or representative will cooperate in the implementation of the contrae-tor's obligations hereunder.
p- (c) The contractor shall state, in all solicitations or advertisements for employees placed by or on behalf of the contra, tor in the performance of the contract with the authority that all qualified applicants will be afforded equal employment opportunity without discrimination because G race. ,
creed, color, national engm, sex, age, disability or marital status. J (d) The contractor will include the provisicus of paragnphs (a) through >
(e) of this subdivision in every subcontract or purchase order in such a manner that such provisions will be binding upon each subcontractor or vendor as to its work in connection with the contract with the authority.
- 2. The authority shall establish measures, procedurrs and guidelines to ensure that contractors and subcontractors undertake meaningful pro-grsms to employ and promote qualified minority group members and women. Such procedures may require after notice in a bid solicitation, the submission of a minority and women workforce utilization program prior to the award of any contract, or at any time thereafter, and may require the submission of compliance reports relating to the operation and implementa-tion of any workforce utilization ty may take appropriatemeluding action,theprogram impositionsadopted of aanctionshereunder.
ior The autbri-57 a wgp = m+ a 27a l
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.)10204 PitsLIC ALTHonITIts LAk . i noncompliance to effectuate the pmvisions of this section and shall be
?
,W respnsible for monitoring compliuce with this title,
' 3. ' In the performance of projects pursuut to this title, mirority and womenowned business enterprises shall be given the opportunity for meaningful participation. The authority shall establish quantifiable stan-r dards and measures and procedures to secun meaningful participation and
. identify those contracts ud items of work for which minority and women.
owned business enterprises may beat bid to actively cnd affirmatively promote and assist their puticipation in projects, so as to facilitate the award of a fair shue of contraeu to such enterprises; provided, however,
, that nothing in this title shall be construed to lait the ability of the
[. authority to usure that qualified minority ud women owned business enternnses may participate in the program. For purposes hereof, m'nonty
- - business enterpnse shall meu any business enterprise whi
- h is at leut fdty one per centum owned by, or in the case of a publicly owned business, at least fdty one per centum of the stock or other voting interest is owned by citizens or penna.ect resident aliens who are Plack. Hispanic, Asian, e, Americaa Indian, Pacific islander, or Alaskan natie, and soch ownership interest is real, substantial and continuing and has the authority to inde-odently co:vtrol the day to day business decisions of the entity for at
' east one year; and women owned business enterprise shall mean any business enterprise which is at least fdty one per centum owned by, or in the case of a publicly owned busmess, at least fdty one per centum of the stock to other veting interests of which is owned by citizens or pene.anent
- resident aliens who are women, and such ownership interest is real, substantial and continuing and has the authority to independently control the day to day business decisions of the endty for at least one year, The provisions of this subdivision shall not be construed to limit the g
ability of any minority business enterprise to bid on any contract
- 4. In order to implement the requirements and objectives of this section, the authonry shall establish prxedures to monitor contractors compliance with provisions hereof, provide assistance in obtaining competing qualified minority and women owned business enterprises to perform contracts pro-posed to be awar6d 2npose evntractual sanctions for non compliance, and take cther appropriate nessures to improve the access of minonty and women owned business enterprises to these contracts.
(Added L1966. c. 517, i 14 3 Amether i 1024 v is set out in Title 1-A post Historical Note EMwtin Date. Section effective Jen, 15, 1987, punutnt so L1986. c. 517, i :1.
I 10:4-w.3 Audit and annual reports The accounts of the authority shall be subject to the supervision af the state comptroller and an annual audit shall be performed by an independent certified accountant selected by the state division of the budget The authority shall submit annually to the governor, the state comptroller, the temporary president of the senate, the speaker of the assembly and the county executives and governing bodies of the counties of Suffolk and Nassau, a detailed report pursuant to the provisions of section two thou-sand eight hundred of title one of article nine of this chapter, which report shr! be verified by the chairman of the authenty, The authority shall 58 28a
. - - . . - - ~ _ _ _ . . - - -
PUBLIC Al'THORJTIES LAW 'l1080-z a~
comply with the pronsions of sections two thoasand eight hundred one.
two thousand eight hundred two and rao thousand eight hundred three cf title one of attacle air,e of this chapter.
(Added L1966, c. 617.1 11 8 Another i 1024 w is set out in inle 1-A pcot.
Elstorical Note I
ENective Date. Section effecove Jan.
I
- t 15. 1987, pursuant to L1986, e. Elf, f" ,
i11 l..
' =
{1020-a. Authority subjee; to open meetings law The authority shall be subject to the provisions of article seven of the public officers law relating to the open meetings law.
(Added L1956, c. 517, { 1.)
tilstorical Note ,
ENntive Date. Section effecove Jan.
15, 1987, pursuant so L1986, c. 517 i11.
)1020-y. Court proceedings: preferences; venue k
- 1. Any action, suit or proceeding to which t .e authority may be a party '
in which any question arises u to the validity of this title or the valuation of stock or assets acquired by the authority by the exercise of the power of eminent domain shall W preferred over all other civil causes in all courts of the state, except election matters, and shall be heard and determitied in preference to all other civil business pendirg therein, ercept ele 60n matters, irrespective of position on the calendar. The same preference .
shall b granted upon application of counsel to the authority in any setion er proceeding questioning the validi<.y of this title or the valuation of stock or assets acquired by the authority by the exercise of the power of eminent domain in which such counsel may be allowed to intervene. The venue of wny action or proceeding questioning the validity of this title shail be laid in the county in which the principal office of the authority is located.
- 2. In the event any party shall appeal an award of compensation for the U
taking by the authority of stock or assets, such party shall post a bond in such amount, if any, as the supreme court shall deem appropriate to adequately protect the interests of the other party under all the circum-stances.
(Added L1986 c. 517, i 1.)
Historical Note ENective Dete. Sution effective Jan.
- 15. 1987, pursuant to L1986, c. 517,
, in j1020-t Corporate existence The authority and its cor by law, provided, however, that no porate existence such law shall takeshall effectcontinue so long asintil the terminated authority shall have bonds, notes or other obligations outstanding, unless adequate provision has been made for the payment thereof.
(Added L1984, c. 517, i 1.)
59 29a
. ~ - --
. , . - . , . e.. - . - . .
- - - - - - .- -~
s
- { 1020-z- PUBLIC ALTHORITIES LAW ,
t Historical Note ~ -,
- Effetite Date, - Section effective Jan.
- c 15, lHf, pmuant to L1966, c. $17, i 11
'l1070-aa. Confileta of interest - _. _
1, - If any member, cfficer or employee of the authority shall have an
- interest, either direct or indirect, in any contrset to which the authority is,-
or is to be, a party, such interest shall be disclosed to the authority in ,
writing and shall ba set forth:in the minutes of the authontys The x member, officer or employee having such interest shall not parucipate in '
any action by the authority with respect to such contract.
- 2. No member, officer or employee shall be deemed to have such an interest solely by reason of t.ie ownership of two pcreent or less of the securities of a co.peration which is, or is to be, a yarty to a contract with the authonty, including without limitation the holding company of any-banking institution in which the funds of the authority an, or are to be, deposited or which is, or is to be, acting as trustee or paying agent under any bond or note resolution trust indenture or similar instrument to which 1 the authority is a party,
- 3. Nothing in this section shall be deemed or construed to limit the right of any rnember, officer or employee of the aathonty to acquire an interest in bonds or notes of the authority. .
(Added L1956, c. 517, i 14 Histories' Note =
Effective Data. Section effective Jan. *
- 15. 1987, punuant to L1H6, c. Sli, i 11.
{ ;1026-bb. Exculpation
- 1. The trustees and officers of the authority, while atting wnhin the scope of their authority as trustees or officers, shall not be subject to any ,
personal or civil liability resulting from the exercise, carrying out or ,
advocacy of any of the authority's purposes or powers, unless the conduct '
of the trustees or officers is fmally determined by a court of competent jurisdiction to constitute intentional wrongdoing.
- 2. The provisions of section seventeen of the public officers law shall
. apply to trustees and officers of the authority,in connection with any and all claims, demands, suits, actions or proceedings which may be made or brought against any of them arising out of any determinations made or - '
actions taken or omitted to be taken in compliance with any obligations under or pursuant to the terms of this title.
- 3. Notwithstanding any other provisions of law to the contrary, the provisions of section eighteen of the public officers law shall apply to the employees of the authonty,in connecuon with any and all claims, demands.
suits, actions or proceedings which may be brought against any of them arising out of any detenninstions made or actions taken or omitad to be taken in compliance with any obligations under or pursuant to the terms of-this etle. Whenever the provisions of section seventeen of the publie ,
- officers law do not apply to the trustees and offictrs of the authcrity, the- l provisions of section eighteen of the public officers law '. hall apply to such -
trustees and officers.
60 30a
O q7
~
PL1tLIC ALTHORTTIES LAW { 103 .. c
- d. Any costs incurred by the state in accordance with sub6 vision two of this secton shall be treated as advances by the state to the authority, and-shall be repaid to it 3,thout interest either out of the proceeds of bonds issued by the authority pursuant to the provisions of this title, or by the delivery of non interest beanng bonds of the authority to the state for all or any part of such advances, or or. of excess nvenues of the authority, at such tirnes and on such con 6tions as the state and the authority mutually inay r. gree upon. Any agreement entered into by the state and the authonty for the repayment of any costs incurred pursuant to sub& vision a
two of this sesbon, shall be subject to the appruval of the public authonties control board.
5.. As used la this sution, the terms " trustee" " officer" and " employ; ee" shallinclude a fonner trustee, officer or employee and his or her estate or ju6cially appo>ted penonal representatve,
_ (Added L1987, c.134, i 1.)
Historical Note T.ffectin Date; Applicabillry. See former service terntorg of the keg Is.
tiot 3 of L1987, e. S.t4, provided "This land bghting company, act(ad&ng thia 4 mn and nnumbenns Former Section 102Mb. Renumber-former see' 4 1020-bb through ed 1020-cc.
1020-gg of tht, cde u sectons 1020 ce Separability of Provisions. Section 2 through 1020-hh of h utle, respecove- of L1987, c. 334, provided; "If any pm ly) sha!! take effect immedately (July nakn of this set (addtng this seebon and 22, 1987) and shall apply to all accons tenumbenng fonner seeuons 1020-bb and procee6ngs pending upon the effee- through 1020-gg of this atle as sectons tu date hereof or nereafter insututed; lo2Ne through 1020-hh of this atle.
prended. however, that subdmsion two respecovely) or the appheaton hereof to of secuon one thousand twnty-bla of any person or circumstance a held un-the pubbe authenbes lau (subd. 2 of this consututional or mvahd in whole or in' secton). u added by section orie of this part by any court of competent juns&c-
- set, shall not s.pply to causes of setion . tion, such hol&ng of unconstitutaonahty which arue on or after the assumpoon or invahdacy sh.!! m no way effect or by the authonty of all utihty service impair any other pronsion of h act or responsioih6es for all ultimate consum - the opphestaan of any such pronsion to ers of gu and/or eleetncity othm the any other person or circumstance."
Notes of Decisione r 1. Constitutionality tion ensted no State debt and &d not Pubbe Authenues law seccon proeid, requin any borronog by the State in ing for immunity, defecse, and indem*.i- that the tegulatun appropnates, as f canon of trustees and cff cers of the part of the Sute's annual budget, specif-kng Island Power Authonty from per, ie amount of tas raised revenues. to be sonal or civil liab.'hty nsulting from paid from the State's general fund. for carrying out the Authonty's purposes payments of indemnity . and defense d;d not violate consututonal prohibicon . costa. long Island 1.ighung Co v.
against ginng or len&ng of the State's = Mack.1958,13i A.D.2d 285, 529 N.Y.
endat in aid of pubbe corporacon; pee. E2d 501 l 1020-ce. Authority subject to certain provisions contained in the state finance law, the pub!Ie service law, the social servie-es law and the general muntelpal law All contracts of the authenty nall be subject to the provisions of the state finance law relating to contracta made by the state. The authonty -
shall also establish rules and regulatons with respect to provi6ng to its residential gu, cleetne and steam utility customers those nghts and protections pmided in ardele two and sectons one hundred seventeen and 61 31a
l1020-ce PUBUC ALTil0RmES LAW one hedred eighteen of the public ser ice law and section one hundred thirty one-a of the so:ial senices law. The authenty shalllet contracts for construction or purchue of suppH.s, matanals, or equipment pursuant to section one hundred three ad 3ragnph te) of subdivision four of acetion one hundnd twenty w of the general snunicipal law.
(Formerly i 1020-bb, added L1966. c. 517. I 1; recumtered i 1% L1987, e.
834.1IJ
=
Historical Note e ENectlee Dete. Section effective Ju. Former SectJon 1020 <c. Renumber. ,
'15. 1987, pursuut to L1956, c. 617 ed 102Nd.
I 11.
( 1020 dd, Authority not to seek nor any e absidiary of the authority, to apply for or accept preference hydroelectricity The authority not any subsidiary of the authority, shall not seek, apply -
for, nor accept hydroelectricity produced by the power authority of the ,
state of New York and marketed subject to the federal preference clause contained in the Niagara Redevelopment Act at 16 USC Section 836(bX1)3
- and distributed by the Power Authority of the State of New York subject to section ten hundr$J five of this chapter. Nothing herein shall be construed to prohibit the authority from entering into agreementa with '
public bodies within its service territory for the wheeling and/or distribu.
.. tion of such hydroelectricity.
Formerly i 1020-ce,' 6dded L1986, c. 517, i 1; renumbered i 102Nd. L1987, c.
334,i1.) +
816 U.S.C.A. ( 836(bXI).
Historical Note -
Effective Dete. Section effective Jan.. Former Section 1020mid. Renumber.
- 15. 1967, pursuant to L1986, c. 517, ed 1024 e.
(11
- { 1024 ee. Nine Mile Point II: disposition of interest l The authority shall make every ef!cet to convey its inutest in the Nme. -;
M;le Point 11 nuclear gere. ting facility through the sale of its interest in auch facility to the power authority of the state of New Tork or to one or more of the co tenanta of such plant, provided, however, that in any acquisition of such interest by the power authority of the state of New .
York or by one or more of the co tenants, the autPrity shall agree to remain respunsible for the purchue of such share of de power generated by such facility u it is required to purchue ander agreements entered into -
by LILCO and obligating the authority.
~
Formerly i 102Md. added L1986 ~e. $17, i 1; renzbered i 1020-ee, L1987, c.
134, i 1.)
Histor!tal Note Effective Dete. Sectbn effective hn. Former Section Ic20-ee Renumber-
- 15, 1987, pursuant to L1986, E. :17 ed 1020-ff.
pn L 62.
32a
. - _ . , - . , _ . . . ~ . _ - _ . . -.._._._..._.a,, _ . _ . _ _ _ _ . ...-.._a
( 10 0-ff, Liberal interpretation This title, being necessary for the prosperi!Y of the state s.nd its inhabitasts, shall be liberally construed to affect the purposes bereof.
Formerly i 1020-ee, added L1966, c. 611, i 1: retumbered i 1000-ff, L1987, c.
114. I 1.)
Historical Note I.frec.he Data. Section effeetne Jan. Former Section 1910-ft. Renumber-15, 1981, punuant to L19H. c. 511, ed 1020.gg, i 11.
j IC20 gg, laeonsistent provisions of other laws superseded Insofar as the provisions of this title sre inconsistent with the provisions of uy other law or any pan thereof, the provnions of this trile shall be controlling.
Formerty i 1024-ff, added L1986, c. 617, i 1; renumbervd l 1020-gg, L1987, e. --
334, i 1.;
lbstorleal Note Isective Deta. Section effecove Jan. Former Secen 1926-gg. Ranumber-15, 1957, punuant to L1986, c. 517, ed IC24-hh 4 11.
{ IC20-hh. Severability
'[he provisions of this title tra seversble, and if any part or provision hereof, or the application thereof to any person or circumstance, shall be adjudged by uy court of competent juns6ction to be invalid or unenforce-able, such judgment shal: not affect, impair or invalidate the remainder of this title or the application of such provision to uy other person or circumstance, but shall be confined in its operation to the provision, person or circumstance directly involved in the controversy in which such judg-ment shall have been rendered.
a Ecrmerry 1 1020-gg, added L1986, c. 617, l 1; renumbered i 1020-hh. L19g7, c.
834, l 1.)
Historical Note F.ffecties Data. Section effect.ee Jan.
15.1Hi, pursuant to L1966, c. 817, _
l 11.
I 33a
LEGISLATIVE MEMORANDA TUBLIC AUTHORITIES--TERMINATION OF CORPORATE EXISTENCE Tez, of Lane, see ch. 91c
..hmerandum of Temporary State Commission en Coordination of State Actinties The bill adds to the above law a new general scetion 2550 which rio-vides that any public authonty created hereafter will terminate auto.
mattenlly nie years after the date Of its Ctration if 4 - W time it has no lialnhties outstatling.
Tbc hill also provides that app.opriations made to pi,t .. authoritia*
by the state of Nem York or by any political subdivision thacaf shnli not be linbilities for the purpme of deterndnine w tether an nothmit.s has outstanding liabihties at the end of its initial five year olwintisc-period.
This hill is recomniended by the Temporary State Conunia-ion on Coordinatirm of State Activities.
This in!! provida* for the autowtic terndration or inactixe au'hm iics. It is applienble only to authorities carated here:iiter and doc +
not apply to existi i;authoritin.
2196
1 STATE or Ntw yong DEPARTMENT Or AUDIT AND CONTROL ALDANY am? vm (gym April 17, 1957 His Excellercy Averell Harriman Governor of the State of New York Executive Chamber-Albany, New York Sir: Re: Senate Eill Int. 2433, Pr. 2566, Loc Bv Fr. Hults This memorandum has been prepared at the request of your Counse Under the terms of this bill the life of every public authority hereafter created, is to terminate at the end of five years from the date of its creation, provided it has no outstanding liabilities other than moneys advanced by the State or any political subdivision thereof. This bill has been recommcnded by the Temporary Commission on Coordination of State Activities.
This bill seems aimed at those authorities that do not commence operations within a reasonable time af ter their creation. The five year period set forth in the statute seems reasonable and should stimulate the authority to become a going concern.
The bill could have one result not ' intended by its sponsors.
It may encourage the creation of trial authorities on the theory that they will come to an automatic end if not productive.
This bill would take effect immediately.
This Department recommends that the bill be approved.
Very truly yours, ARTHUR LEVITT State Comptroller By 0' h). f Alfre, W. Haight Counsel to the Comptroller
t . nl .
>, '1 t ss e. e
.S T AT l! t i t* N et w h*n 64 H DrtiAnT.sticsT 01, l.aw Lows l. Lernown:
A t T C a ** C . O t h t a a 6 Ie:.i'0HAf DU:i FCil THE C0 Chi:Ch Re: Senate Int. 2h33, l'r. h003 The above bill woulo carry out a recommendation of the Temporary Otate Commission on Coordinetion of State Activitico designed to ciye authorities a preliminary period of five y[ ears Document within 1956) !!o. 46, which p . 105to become ) . It operative is limital(See Leg.
to authori-ties "hereafter" created by the Public Authorities L1w. It would operate by automatically terminatint the exictence'of an authority if it had no outstanding liabilities five years after the date of its creation. The bill does not purport to. determine the existence or duration of any authority i'f it has such liabilities at the end of the five year period.
The Commission feels that to be "truly operative" an author-ity must have oatstanding liabilitie.s and that if it is not operative it should not have continued existence without further lecislative review.-
It is noted that appropriations by the State to the Authority or Commission would not be considered an out-standing licbilicy. This must refer, as the Commicsion re-port indicates, to first instance appropriations made as advance: to be repaid. It may be observed that 'he provi- .
sien could resQlt in the general funds of the State bearing an expense which was intended to be paid out of the' revenue of the Authority or Co=:ission affected.
I find no legal objection to che bill.
Dated April 24,1957 3,espectfully submitted, la...i )k<n LOUIS J . LEFKO'lI Attorney General 8
1991 REGillAR SESSION Ch. 335 LONG ISLAND POWER Almf 0RITY TRUSTEES--TERMS AND DATES FOR ELECTION CHAPTER 3JS S, 6365 Approved and effective July 15, IMI AN ACT to amend the pubtle su6orttlee kw, in relatbn to trusees of the Long Island power authority The People of the State ofMrw York, repruented in Senate and Assembly, do enact .
as follovt:
- 11. Subdivisions 1,2,3 and 4 of section 1020-d of the public authority law, as added by chapter 517 of the laws of 1986, are amended to read as follows:
- 1. The authority initially slall consist of nine trustees, v6o shall serve until December
' thirty firct. nineteen hundred asnety4ae ninety thive, five of whom to be appointed by the governor one of whom shall be the chairman, two of whom to be appointed by the temporary president of the senate and two of whoin to be appointed by the speaker of the assembly. Each trustee shal hold office until his successor has been appointed and qualified. In the event of a vacancy occurring in the office of an initial trustee by death, resignatiac or otherwise, the respective appointing officer shall appoint a successor, who shall hold otfice for the unerpred term.
- 2. Begbning January first, nineteen hundred My ninety four, such authority shall consist of twenty two trustees. One trustne, who shall be the chairman, shall be appointed by the governor, and shat serve at the goverr.or's pleasure. Twenty one trustees shall be elected fnen districts established by the legislature. Erch elected trustee shall be a resident af the district from which he is elected. No person who is elected or appointed official of the state or any municipality or say agency or instrumen-tality thereof, shaE be qualilled to serve as an elected tnsstee. E:.ch trustee shall hold office until his successor has been elected and qualified. In the event _of a vacancy occurring in the office of a tisstee by death, resigention or otherwise, a successor shall be chosen to hold off.* for the anexpired term in the manner prescribed by the election law.
- 3. Prior to May first, nineteen hundred air.asyw.e niney three, and each tenth year thereaftar, the legislature shall estabEsh tsentyone daricts, which shall be equal in population as determined by the last federal decennial census.
- 4. Such trustees, shall be elected in elections conduded by the bosnis of election punuant to appliesble provisions of the election brw. The first such election shall be held on the first Tuesday in December mineteen hundred amety4ne ninety three, and the trustees so elected shall take offim on Janwy fint, nineteen bundred NyM ninety four. At such electima seven trastees shall be adected for a term of one year, seven shall be elected for a term of two years; t.nd seven shall be elected for terms of three years each. Each smeh term ending ce December thirty first of the last year thereof. Not later than Jaiy first, nineteen hundred Hyme ninety three and each subsequent year 'm which a reappurtionment er readjmement of such districts, takes place, the state board of elect 2ons shell determiw by lat, which sach trustees shall be weenskins m heae.d w we+,s.m. w e 699 v- ,e-- w -
e.- e +,- -a w - g --
M -- e w e+ema-
Ch. 335 LAWS OF FEW YORK elected for which terms. Thereafter, seven trustees shall be elected on t.he int Tuesday in December of each year to replace the trusten whose terms will expire at the end of such year, for terms of three years each except that, all tnstees shd be elected at the int election held after a reapportionment or readjustment of such districts. No political party shall be entitled to nommnate candidates for the ofra of trutee at any such election.
j 2. his act shall take effect immediately.
l 700 u4itioime w.,,,46, % % g %
1 I
l'
[9thliLO CERTIFICATE OF S U11Q1 U$NiiC
~9L - DEC 30 P3 :32 Pursuant to the service requirements of 10 C.F.R.
t.r n et M 35 i 2.712-(1991), I hereby certify that on December 30,b.1990,n ( Wi.W- i 1
~ i !.llt b I served a copy of the Opposition of the - Long Island Power Authority to Motion for Stay of License Transfer and to Suggestion of Mootness and transmittal letter via Courier upon the following parties, except where otherwise indicated:
Commissioner Ivan Selin Stephen A. Wakefield, Esq.
Chairman General Counsel Nuclear Regulatory Commission U.S. Department of Energy one White Flint North Building Forrestal Building 11555 Rockville Pike 1000 Independence Avenue, S.W.
Rockville, Maryland 20852 Washington, D.C. 20535 (First Class Mail)
Commissioner Kenneth C. Rogers Nuclear Regulatory-Commission The Honorable Samuel J. Chilk One White-Flint North Building The Secretary of the Commission 11555 Rockvil'le Pike Nuclear Regulatory Commission Rockville, Maryland 20852 One White Flint North Building 11555 Rockville Pike A Commissioner James R. Curtiss Rockville, Maryland 20852 Nuclear Regulatory Commission One White Flint-North Building Administrative Judge ,
11555'Rockville Pike Thomas S. Moore, Chairman Rockville, Maryland 20852 Administrative Judge Nuclear Regulatory Commission Commissioner Forrest J. Remick Washington, D.C. 20555 Nuclear Regulatory Commission (First Class Mail)
One White Flint North Building 11555 Rockville Pike Administrative Judge Rockville, Maryland 20852 Jerry R. Kline Atomic Safety Commissioner E. Gail de Plangue and Licensing Board Nuclear Regulatory Commission Nuclear Regulatory Commission One White Flint North Building Washington, D.C. 20555 11555 Rockville Pike Rockville, Maryland 20852 (First Class Mail)
Administrative Judge Donald P. Irwin,_Esq.
George A.-Ferguson Counsel,- Long Island 5307 Al Jones Drive Lighting Company Columbih Beach, Maryland 20764 Hunton & Williams (First-Class Mail-) 707 East Main Street Richmond, Virginia' 23212
'Edwin J. Reis, Esq. (Via Federal Express)
Deputy Assistant General Counsel for Reacter_ Licensing Gerald C. Goldstein, Esq.
Nuclear Regulatory Commission Office of the General Counsel One White Flint North Building Power Authority of 11555 Rockville Pike State of New York Rockville, Maryland 208t2 _1633-Broadway New York, New York 10019 James P. McGranery, Jr., Esq. (Via Federal Express)
Dow, Lohnes & Albertson 1255 23rd Street, N.W. Samuel A. Cherniak, Esq.
Suite 500 NYS Department of Law Washington, D.C. 20037 Bureau of Consumer Frauds and Protection Regulatory Publications Branch 120 Broadway
. Division of Freedom of. New York, New York 10271 Information & Publications (Via Federal Express)
Services Office of Administration Nuclear Regulatory Commission Washington, D.C. 20555 (First Class Mail) 1
/. n s, -
Carl R'. Scrienker, Jr.
O'Melveny & Myers 555 13th Street, N.W.
Washington, D.C. 20004 Dated: December 30, 1991 l
t