New Jersey-2010-A3451-Introduced

An Act concerning the Port Authority of New York and New Jersey, supplementing P.L.1921, c.151, authorizing the Governor, on behalf of the State of New Jersey, to enter into a supplemental compact or agreement with the State of New York supplementing the compact of April 30, 1921, between the states of New York and New Jersey, as amended and supplemented, and in conjunction therewith, to enter into an agreement with the State of New York to dissolve the compact establishing the waterfront commission of New York harbor, as amended and supplemented; authorizing the Governor to apply, on behalf of the State of New Jersey, to the Congress of the United States for its consent to such supplemental compact or agreement; and repealing parts of the statutory law.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. The Legislature finds and declares that:

a. The port of New York and New Jersey has been one of the backbones of the region's economy for decades. The port of New York and New Jersey is the largest port complex on the East coast of North America and the second largest in the United States. The port's strategic location, developed transportation infrastructure, and access to a significant percentage of the national market within one day's drive are key assets that have made the region a gateway for international trade. The port and freight industry in New Jersey alone supports more than 500,000 jobs and moves goods valued at more than $850 billion annually.

b. The waterfront commission of New York harbor, whose mission is to ensure fair hiring and employment practices and investigate, deter, and combat criminal activity and influence in the port of New York and New Jersey, has itself been tainted by corruption in recent years. Moreover, the waterfront commission, despite changes in the industry since the days of Marlon Brando when it was necessary to drive out organized crime's influence, has over-regulated the businesses at the Port and assumed powers that do not exist within its statutory authority in an effort to justify its existence as the only waterfront commission in any port in the United States. As a result, the waterfront commission has become an impediment to future job growth and prosperity at the port.

c. While there is a continued need to regulate port-located business to ensure fairness and safety, the waterfront commission is no longer necessary to carry out such regulation. Several taxpayer funded agencies already have the authority to monitor operations at the port, including: the U.S. Department of Homeland Security, the U.S. Coast Guard, the Federal Bureau of Investigation, the U.S. Department of Labor, the U.S. Department of Transportation, the Federal Maritime Commission, the Occupational Safety and Health Administration, the New Jersey and New York State Police, and local police departments.

d. The Port Authority of New York and New Jersey would be well-positioned to assume the functions of the waterfront commission. Abolishing the waterfront commission and transferring its functions to the Port Authority would be both practical and efficient, as the Port Authority is better suited to oversee such regulation without impeding economic prosperity at the port of New York and New Jersey.

2. a. The Governor is authorized: (1) to enter into a supplemental compact or agreement, on behalf of the State of New Jersey, with the State of New York supplementing the compact of April 30, 1921 between the states of New York and New Jersey, as amended and supplemented, as set forth in section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill); and (2) in conjunction therewith to enter into an agreement, on behalf of the State of New Jersey, with the State of New York, to dissolve the compact between the states of New York and New Jersey establishing the waterfront and airport commission of New York and New Jersey.

b. The Governor is further authorized to apply on behalf of the State of New Jersey to the Congress of the United States for its consent to and approval of (1) the supplemental compact described under paragraph (1) of subsection a. hereof, and (2) the dissolution of the compact described under paragraph (2) of subsection a. hereof.

3. Compact. The State of New Jersey hereby agrees with the State of New York, upon the enactment by the State of New York of legislation having the same effect as this section, to the following compact:

ARTICLE I

1. Conditions of employment. The states of New Jersey and New York hereby find and declare that the conditions under which waterfront labor was employed within the port of New York district prior to the establishment of the waterfront commission of New York harbor were depressing and degrading to such labor, resulting from the lack of any systematic method of hiring, the lack of adequate information as to the availability of employment, corrupt hiring practices, and the fact that persons conducting such hiring were frequently criminals and persons notoriously lacking in moral character and integrity and neither responsive or responsible to the employers nor to the uncoerced will of the majority of the members of the labor organizations of the employees; that as a result waterfront laborers suffered from irregularity of employment, fear and insecurity, inadequate earnings, an unduly high accident rate, subjection to borrowing at usurious rates of interest, exploitation and extortion as the price of securing employment, and a loss of respect for the law; that not only did there result a destruction of the dignity of an important segment of American labor, but a direct encouragement of crime which imposed a levy of greatly increased costs on food, fuel, and other necessaries handled in and through the port of New York district.

2. Public loader system condemned. The states of New Jersey and New York hereby find and declare that many of the evils above described resulted not only from the causes above described but from the practices of public loaders at piers and other waterfront terminals; that such public loaders served no valid economic purpose and operated as parasites exacting a high and unwarranted toll on the flow of commerce in and through the port of New York district, and used force and engaged in discriminatory and coercive practices including extortion against persons not desiring to employ them; and that the function of loading and unloading trucks and other land vehicles at piers and other waterfront terminals can and should be performed, as in every other major American port, without the evils and abuses of the public loader system, and by the carriers of freight by water, stevedores, and operators of such piers and other waterfront terminals or the operators of such trucks or other land vehicles.

3. Lack of regulation of occupation of stevedores. The states of New Jersey and New York hereby find and declare that many of the evils above described resulted not only from the causes above described but from the lack of regulation of the occupation of stevedores; that such stevedores formerly engaged in corrupt practices to induce their hire by carriers of freight by water and to induce officers and representatives of labor organizations to betray their trust to the members of such labor organizations.

4. Regulation of occupations of longshoremen, stevedores, pier superintendents, hiring agents, and port watchmen deemed exercise of police power. The states of New Jersey and New York hereby find and declare that the occupations of longshoremen, stevedores, pier superintendents, hiring agents, and port watchmen are affected with a public interest requiring their regulation, and that such regulation shall be deemed an exercise of the police power of the two states for the protection of the public safety, welfare, prosperity, health, peace, and living conditions of the people of the two states.

ARTICLE II

As used in this compact:

"Airport" means any area on land, water or building or any other facility located within the states of New York and New Jersey, except a military installation of the United States government, (a) which is located within 100 miles of any point in the port of New York district, (b) which is used, or intended for use, for the landing and take-off of aircraft operated by an air carrier, and any appurtenant areas which are used or intended for use, for airport buildings or other airport facilities or rights of way, together with all airport buildings, equipment, aircraft, and facilities located thereon, and (c) where the total tonnage of air freight in a calendar year loaded and unloaded on and from aircraft exceeds 20,000 tons.

"Air carrier" means any person who may be engaged or who may hold himself out as willing to be engaged, whether as a common carrier, as a contract carrier or otherwise, in the carriage of freight by air.

"Air freight" means freight, including baggage, aircraft stores and mail, which is, has been, or will be carried by or consigned for carriage by an air carrier.

"Air freight terminal" means any warehouse, depot, or other terminal, other than an airport, (a) any part of which is located within an airport and any part of which is used for the storage of air freight, or (b) which is operated by an air carrier or a contractor of an air carrier and any part of which is used for the storage of air freight and any part of which is located within the port of New York district.

"Air freight terminal operator" means the owner, lessee, or contractor or such other person, other than an employee, who is in direct and immediate charge and control of an air freight terminal, or any portion thereof.

"Air freight truck carrier" means a contractor, other than an employee, engaged for compensation pursuant to a contract or arrangement, directly or indirectly, with an air carrier or air carriers or with an air freight terminal operator or operators in the moving of freight to or from an airport or air freight terminal by a truck or other motor vehicle used primarily for the transportation of property.

"Air freight security area" means any area located within the airport to which the authority determines that limited ingress and egress is required for the protection and security of any air freight located within the airport.

"Airfreightman" means a natural person who is employed (a) by any person to physically move or to perform services incidental to the movement of air freight at an airport or in an air freight terminal, (b) by an air carrier or an air freight terminal operator or an air freight truck carrier to transport or to assist in the transportation of air freight to or from an airport or air freight terminal, or (c) by any person to engage in direct and immediate checking of any air freight located in an airport or in an air freight terminal or of the custodial accounting therefor.

"Airfreightman labor relations consultant" means any person who, pursuant to any contract or arrangement, advises or represents an air carrier, an air freight terminal operator, or an air freight truck carrier, or an organization of such employers, whether or not incorporated, or a labor organization representing any airfreightmen or airfreightman supervisors, concerning the organization or collective bargaining activities of airfreightmen or airfreightman supervisors, but shall not include any person designated by any government official or body to so act or any person duly licensed to practice law as an attorney in any jurisdiction. As used in this paragraph, the term "labor organization" shall mean and include any labor organization to which section 1 of Article XXIV of this compact (C. ) is applicable.

"Airfreightman supervisor" means a natural person who is employed to supervise directly and immediately the work of an airfreightman at an airport or at an air freight terminal.

"Authority" means the Port Authority of New York and New Jersey established by the compact dated April 30, 1921, between the states of New York and New Jersey, authorized by chapter 154 of the laws of New York of 1921 and chapter 151 of the laws of New Jersey of 1921.

"Carrier of freight by water" means any person who may be engaged or who may hold himself out as willing to be engaged, whether as a common carrier, as a contract carrier, or otherwise, except for carriage of liquid cargoes in bulk in tank vessels designed for use exclusively in such service or carriage by barge of bulk cargoes consisting of only a single commodity loaded or carried without wrappers or containers and delivered by the carrier without transportation mark or count in the carriage of freight by water between any point in the port of New York district and a point outside said district.

"Checker" means a longshoreman who is employed to engage in direct and immediate checking of waterborne freight or of the custodial accounting therefor or in the recording or tabulation of the hours worked at piers or other waterfront terminals by natural persons employed by carriers of freight by water or stevedores.

"Compact" means this compact and rules or regulations lawfully promulgated thereunder, and includes any amendments or supplements to this compact to implement the purposes thereof adopted by the action of the Legislature of either the State of New York or the State of New Jersey concurred in by the Legislature of the other.

"Court of the United States" means all courts enumerated in section 451 of Title 28 of the United States Code and the courts-martial of Armed Forces of the United States.

"Hiring agent" means any natural person who, on behalf of a carrier of freight by water or a stevedore, shall select any longshoreman for employment, and includes any natural person, who on behalf of any other person shall select any longshoreman for employment.

"Longshoreman" means a natural person, other than a hiring agent, who is employed for work at a pier or other waterfront terminal, either by a carrier of freight by water or by a stevedore (a) physically to move waterborne freight on vessels berthed at piers, on piers or at other waterfront terminals, or (b) to engage in direct and immediate checking of any such freight or of the custodial accounting therefor or in the recording or tabulation of the hours worked at piers or other waterfront terminals by natural persons employed by carriers of freight by water or stevedores, or (c) to supervise directly and immediately others who are employed as in subdivision (a) of this definition. "Longshoreman" also includes a natural person, other than a hiring agent, who is employed for work at a pier or other waterfront terminal (d) by a carrier of freight by water or by a stevedore physically to perform labor or services incidental to the movement of waterborne freight on vessels berthed at piers, on piers or at other waterfront terminals, including, but not limited to, cargo repairmen, coopers, general maintenance men, mechanical and miscellaneous workers, horse and cattle fitters, grain ceilers and marine carpenters, or (e) by any person physically to move waterborne freight to or from a barge, lighter or railroad car for transfer to or from a vessel of a carrier of freight by water which is, shall be, or shall have been berthed at the same pier or other waterfront terminal, or (f) by any person to perform labor or services involving, or incidental to, the movement of freight at a pier or other waterfront terminal as defined in this section.

"Longshoremen's register" means the register of eligible longshoremen compiled and maintained by the authority pursuant to Article VII (C. ).

"Marine terminal" means an area which includes piers, which is used primarily for the moving, warehousing, distributing, or packing of waterborne freight or freight to or from such piers, and which, inclusive of such piers, is under common ownership or control; "freight" means freight which has been or will be, carried by or consigned for carriage by a carrier of freight by water; and "container" means any receptacle, box, carton, or crate which is specifically designed and constructed so that it may be repeatedly used for the carriage of freight by a carrier of freight by water.

"Other waterfront terminal" means any warehouse, depot, or other terminal, other than a pier, which is located within 1,000 yards of any pier in the port of New York district and which is used for waterborne freight in whole or substantial part, and includes any warehouse, depot, or other terminal, other than a pier, whether enclosed or open, which is located in a marine terminal in the port of New York district, any part of which is used by any person to perform labor or services involving, or incidental to, the movement of waterborne freight or freight.

"Person" means not only a natural person but also any partnership, joint venture, association, corporation, or any other legal entity but shall not include the United States, any state or territory thereof or any department, division, board, authority, or authority of one or more of the foregoing.

"Pier" means any wharf, pier, dock, or quay.

"Pier superintendent" means any natural person other than a longshoreman who is employed for work at a pier or other waterfront terminal by a carrier of freight by water or a stevedore and whose work at such pier or other waterfront terminal includes the supervision, directly or indirectly, of the work of longshoremen.

"Port of New York district" means the district created by Article II of the compact dated April 30, 1921, between the states of New York and New Jersey, authorized by chapter 154 of the laws of New York of 1921 and chapter 151 of the laws of New Jersey of 1921.

"Port watchman" means any watchman, gateman, roundsman, detective, guard, guardian, or protector of property employed by the operator of any pier or other waterfront terminal or by a carrier of freight by water to perform services in such capacity on any pier or other waterfront terminal.

"Prior commission" means the waterfront commission of New York harbor or the waterfront and airport commission of New York and New Jersey, as appropriate.

"Select any longshoreman for employment," in the definition hereunder of a hiring agent, means select a person for the commencement or continuation of employment as a longshoreman, or the denial or termination of employment as a longshoreman.

"Stevedore" means a contractor, not including an employee, engaged for compensation pursuant to a contract or arrangement with a carrier of freight by water, in moving waterborne freight carried or consigned for carriage by such carrier on vessels of such carrier berthed at piers, on piers at which such vessels are berthed or at other waterfront terminals. "Stevedore" shall also include (a) contractors engaged for compensation pursuant to a contract or arrangement with the United States, any state or territory thereof, or any department, division, board, commission, or authority of one or more of the foregoing, in moving freight carried or consigned for carriage between any point in the port of New York district and a point outside said district on vessels of such a public agency berthed at piers, on piers at which such vessels are berthed or at other waterfront terminals, or (b) contractors, not including employees, engaged for compensation pursuant to a contract or arrangement with any person to perform labor or services incidental to the movement of waterborne freight on vessels berthed at piers, on piers or at other waterfront terminals, including, but not limited to, cargo storage, cargo repairing, coopering, general maintenance, mechanical and miscellaneous work, horse and cattle fitting, grain ceiling, and marine carpentry, or (c) contractors, not including employees, engaged for compensation pursuant to a contract or arrangement with any other person to perform labor or services involving, or incidental to, the movement of freight into or out of containers, which have been or which will be carried by a carrier of freight by water, on vessels berthed at piers, on piers or at other waterfront terminals.

"Waterborne freight" means freight carried by or consigned for carriage by carriers of freight by water, and shall also include "freight" described in subdivisions (a) and (c) of the definition hereinabove of "stevedore" and in the definition hereinabove of "other waterfront terminal" and ships' stores, baggage, and mail carried by or consigned for carriage by carriers of freight by water.

"Witness" means any person whose testimony is desired in any investigation, interview, or other proceeding conducted by the authority pursuant to the provisions of this compact.

ARTICLE III

1. General powers. In addition to the powers and duties elsewhere prescribed in this compact, the authority shall have the power:

a. To determine the location, size, and suitability of accommodations necessary and desirable for the establishment and maintenance of the employment information centers provided in Article XI hereof (C. ) and for administrative offices for the authority;

b. To administer and enforce the provisions of this compact;

c. To make and enforce such rules and regulations as the authority may deem necessary to effectuate the purposes of this compact or to prevent the circumvention or evasion thereof, to be effective upon publication in the manner which the authority shall prescribe and upon filing in the office of the Secretary of State of each State. A certified copy of any such rules and regulations, attested as true and correct by the authority, shall be presumptive evidence of the regular making, adoption, approval, and publication thereof;

d. By its members and its properly designated officers, agents, and employees, with respect to the implementation and enforcement of this compact, to administer oaths and issue subpoenas to compel the attendance of witnesses and the giving of testimony and the production of other evidence;

e. To have for its members and its properly designated officers, agents and employees, full and free access, ingress, and egress to and from all vessels, piers, and other waterfront terminals or other places in the port of New York district, for the purposes of making inspection or enforcing the provisions of this compact; and no person shall obstruct or in any way interfere with any such member, officer, employee, or agent in the making of such inspection, or in the enforcement of the provisions of this compact or in the performance of any other power or duty under this compact;

f. To recover possession of any suspended or revoked license issued under this compact;

g. To make investigations and collect and compile information concerning waterfront practices generally within the port of New York district and upon all matters relating to the accomplishment of the objectives of this compact;

h. To advise and consult with representatives of labor and industry and with public officials and agencies concerned with the effectuation of the purposes of this compact, upon all matters which the authority may desire, including but not limited to, the form and substance of rules and regulations, the administration of the compact, maintenance of the longshoremen's register, and issuance and revocation of licenses;

i. To make annual and other reports to the Governors and Legislatures of both states containing recommendations for the improvement of the conditions of waterfront labor within the port of New York district, for the alleviation of the evils described in Article I, and for the effectuation of the purposes of this compact. Such annual reports shall state the authority's finding and determination as to whether the public necessity still exists for (1) the continued registration of longshoremen; (2) the continued licensing of any occupation or employment required to be licensed hereunder; and (3) the continued public operation of the employment information centers provided for in Article XI (C. );

j. To co-operate with and receive from any department, division, bureau, board, commission, authority, or agency of either or both states, or of any county or municipality thereof, such assistance and data as will enable it properly to carry out its powers and duties hereunder; and to request any such department, division, bureau, board, commission, authority, or agency, with the consent thereof, to execute such of its functions and powers, as the public interest may require.

2. Exercise of powers by officers, employees, and agents; additional powers. The powers and duties of the authority may be exercised by officers, employees, and agents designated by them, except the power to make rules and regulations. The authority shall have such additional powers and duties as may hereafter be delegated to or imposed upon it from time to time by the action of the Legislature of either State concurred in by the Legislature of the other.

ARTICLE IV

1. License to act as pier superintendent or hiring agent. No person shall act as a pier superintendent or as a hiring agent within the port of New York district without first having obtained from the authority a license to act as such pier superintendent or hiring agent, as the case may be, and no person shall employ or engage another person to act as a pier superintendent or hiring agent who is not so licensed.

2. Application for license. A license to act as a pier superintendent or hiring agent shall be issued only upon the written application, under oath, of the person proposing to employ or engage another person to act as such pier superintendent or hiring agent, verified by the prospective licensee as to the matters concerning the prospective licensee, and shall state the following:

a. The full name and business address of the applicant;

b. The full name, residence, business address, if any, place and date of birth and social security number of the prospective licensee;

c. The present and previous occupations of the prospective licensee, including the places where the person was employed and the names of the person's employers;

d. Such further facts and evidence as may be required by the authority to ascertain the character, integrity, and identity of the prospective licensee; and

e. That if a license is issued to the prospective licensee, the applicant will employ such licensee as pier superintendent or hiring agent, as the case may be.

3. Qualifications for license; persons convicted of certain crimes ineligible. No such license shall be granted:

a. Unless the authority shall be satisfied that the prospective licensee possesses good character and integrity;

b. If the prospective licensee has, without subsequent pardon, been convicted by a court of the United States, or any State or territory thereof, of the commission of, or the attempt or conspiracy to commit, treason, murder, manslaughter, or any felony or high misdemeanor or any of the following misdemeanors or offenses: illegally using, carrying, or possessing a pistol or other dangerous weapon; making or possessing burglar's instruments; buying or receiving stolen property; unlawful entry of a building; aiding an escape from prison; unlawfully possessing, possessing with intent to distribute, sale, or distribution of a controlled dangerous substance or a controlled dangerous substance analog; or violation of this compact. Any such prospective licensee ineligible for a license by reason of any such conviction may submit satisfactory evidence to the authority that the prospective licensee has for a period of not less than five years, measured as hereinafter provided, and up to the time of application, so acted as to warrant the grant of such license, in which event the authority may, in its discretion, issue an order removing such ineligibility. The aforesaid period of five years shall be measured either from the date of payment of any fine imposed upon such person or the suspension of sentence or from the date of the person's unrevoked release from custody by parole, commutation, or termination of sentence; and

c. If the prospective licensee knowingly or willfully advocates the desirability of overthrowing or destroying the government of the United States by force or violence or shall be a member of a group which advocates such desirability, knowing the purposes of such group include such advocacy.

4. Issuance of license; temporary permit. When the application shall have been examined and such further inquiry and investigation made as the authority shall deem proper and when the authority shall be satisfied therefrom that the prospective licensee possesses the qualifications and requirements prescribed in this article, the authority shall issue and deliver to the prospective licensee a license to act as pier superintendent or hiring agent for the applicant, as the case may be, and shall inform the applicant of this action. The authority may issue a temporary permit to any prospective licensee for a license under the provisions of this article pending final action on an application made for such a license. Any such permit shall be valid for a period not in excess of thirty days.

5. Licensee to act for one employer. No person shall be licensed to act as a pier superintendent or hiring agent for more than one employer, except at a single pier or other waterfront terminal, but nothing in this article shall be construed to limit in any way the number of pier superintendents or hiring agents any employer may employ.

6. Duration of license. A license granted pursuant to this article shall continue through the duration of the licensee's employment by the employer who shall have applied for the license.

7. Revocation or suspension of license. Any license issued pursuant to this article may be revoked or suspended for such period as the authority deems in the public interest or the licensee thereunder may be reprimanded for any of the following offenses:

a. Conviction of a crime or act by the licensee or other cause which would require or permit the person's disqualification from receiving a license upon original application;

b. Fraud, deceit, or misrepresentation in securing the license, or in the conduct of the licensed activity;

c. Violation of any of the provisions of this compact;

d. Unlawfully possessing, possessing with intent to distribute, sale, or distribution of a controlled dangerous substance or a controlled dangerous substance analog;

e. Employing, hiring, or procuring any person in violation of this compact or inducing or otherwise aiding or abetting any person to violate the terms of this compact;

f. Paying, giving, causing to be paid or given or offering to pay or give to any person any valuable consideration to induce such other person to violate any provision of this compact or to induce any public officer, agent, or employee to fail to perform the person's duty hereunder;

g. Consorting with known criminals for an unlawful purpose;

h. Transfer or surrender of possession of the license to any person either temporarily or permanently without satisfactory explanation;

i. False impersonation of another licensee under this compact;

j. Receipt or solicitation of anything of value from any person other than the licensee's employer as consideration for the selection or retention for employment of any longshoreman;

k. Coercion of a longshoreman by threat of discrimination or violence or economic reprisal, to make purchases from or to utilize the services of any person;

l. Lending any money to or borrowing any money from a longshoreman for which there is a charge of interest or other consideration; or

m. Membership in a labor organization which represents longshoremen or port watchmen; but nothing in this section shall be deemed to prohibit pier superintendents or hiring agents from being represented by a labor organization or organizations which do not also represent longshoremen or port watchmen. The American Federation of Labor, the Congress of Industrial Organizations and any other similar federation, congress, or other organization of national or international occupational or industrial labor organizations shall not be considered an organization which represents longshoremen or port watchmen within the meaning of this section although one of the federated or constituent labor organizations thereof may represent longshoremen or port watchmen.

ARTICLE V

1. Stevedore must obtain license. No person shall act as a stevedore within the port of New York district without having first obtained a license from the authority, and no person shall employ a stevedore to perform services as such within the port of New York district unless the stevedore is so licensed.

2. Application for license. Any person intending to act as a stevedore within the port of New York district shall file in the office of the authority a written application for a license to engage in such occupation, duly signed, and verified as follows:

a. If the applicant is a natural person, the application shall be signed and verified by such person and if the applicant is a partnership, the application shall be signed and verified by each natural person composing or intending to compose such partnership. The application shall state the full name, age, residence, business address, if any, present and previous occupations of each natural person so signing the same, and any other facts and evidence as may be required by the authority to ascertain the character, integrity, and identity of each natural person so signing such application.

b. If the applicant is a corporation, the application shall be signed and verified by the president, secretary, and treasurer thereof, and shall specify the name of the corporation, the date and place of its incorporation, the location of its principal place of business, the names and addresses of, and the amount of the stock held by stockholders owning five percent or more of any of the stock thereof, and of all officers, including all members of the board of directors. The requirements of subsection a. of this section as to a natural person who is a member of a partnership, and such requirements as may be specified in rules and regulations promulgated by the authority, shall apply to each such officer or stockholder and their successors in office or interest as the case may be.

In the event of the death, resignation, or removal of any officer, and in the event of any change in the list of stockholders who shall own five percent or more of the stock of the corporation, the secretary of such corporation shall forthwith give notice of that fact in writing to the authority, certified by said secretary.

3. Qualifications for license; persons convicted of certain crimes ineligible. No such license shall be granted:

a. If any person whose signature or name appears in the application is not the real party in interest required by section 2 of this article (C. ) to sign or to be identified in the application or if the person so signing or named in the application is an undisclosed agent or trustee for any such real party in interest;

b. Unless the authority shall be satisfied that the applicant and all members, officers, and stockholders required by section 2 of this article (C. ) to sign or be identified in the application for license possess good character and integrity;

c. Unless the applicant is either a natural person, partnership or corporation;

d. Unless the applicant shall be a party to a contract then in force or which will take effect upon the issuance of a license, with a carrier of freight by water for the loading and unloading by the applicant of one or more vessels of such carrier at a pier within the port of New York district;

e. If the applicant or any member, officer, or stockholder required by section 2 of this article (C. ) to sign or be identified in the application for license has, without subsequent pardon, been convicted by a court of the United states or any State or territory thereof of the commission of, or the attempt or conspiracy to commit, treason, murder, manslaughter or any felony or high misdemeanor or any of the misdemeanors or offenses described in subsection b. of section 3 of Article IV (C. ). Any applicant ineligible for a license by reason of any such conviction may submit satisfactory evidence to the authority that the person whose conviction was the basis of ineligibility has for a period of not less than five years, measured as hereinafter provided and up to the time of application, so acted as to warrant the grant of such license, in which event the authority may, in its discretion issue an order removing such ineligibility. The aforesaid period of five years shall be measured either from the date of payment of any fine imposed upon such person or the suspension of sentence or from the date of the person's unrevoked release from custody by parole, commutation or termination of sentence;

f. If the applicant has paid, given, caused to have been paid or given, or offered to pay or give to any officer or employee of any carrier of freight by water any valuable consideration for an improper or unlawful purpose or to induce such person to procure the employment of the applicant by such carrier for the performance of stevedoring services; or

g. If the applicant has paid, given, caused to be paid or given, or offered to pay or give to any officer or representative of a labor organization any valuable consideration for an improper or unlawful purpose or to induce such officer or representative to subordinate the interests of such labor organization or its members in the management of the affairs of such labor organization to the interests of the applicant.

4. Issuance of license; temporary permit. When the application shall have been examined and such further inquiry and investigation made as the authority shall deem proper and when the authority shall be satisfied therefrom that the applicant possesses the qualifications and requirements prescribed in this article, the authority shall issue and deliver a license to such applicant. The authority may issue a temporary permit to any applicant for a license under the provisions of this article pending final action on an application made for such a license. Any such permit shall be valid for a period not in excess of thirty days.

5. Term of stevedore's license. A stevedore's license shall be for a term of five years or fraction of such five-year period, and shall expire on the first day of December. In the event of the death of the licensee, if a natural person, or its termination or dissolution by reason of the death of a partner, if a partnership, or if the licensee shall cease to be a party to any contract of the type prescribed by subsection d. of section 3 of this article (C. ), the license shall terminate 90 days after such event or upon its expiration date, whichever shall be sooner. A license may be renewed by the authority for successive five-year periods upon fulfilling the same requirements as are set forth in this article for an original application for a stevedore's license.

6. Revocation or suspension of license. Any license issued pursuant to this article may be revoked or suspended for such period as the authority deems in the public interest or the licensee thereunder may be reprimanded for any of the following offenses on the part of the licensee or of any person required by section 2 of this article (C. ) to sign or be identified in an original application for a license:

a. Conviction of a crime or other cause which would permit or require disqualification of the licensee from receiving a license upon original application;

b. Fraud, deceit, or misrepresentation in securing the license or in the conduct of the licensed activity;

c. Failure by the licensee to maintain a complete set of books and records containing a true and accurate account of the licensee's receipts and disbursements arising out of his activities within the port of New York district;

d. Failure to keep said books and records available during business hours for inspection by the authority and its duly designated representatives until the expiration of the fifth calendar year following the calendar year during which occurred the transactions recorded therein; or

e. Any other offense described in subsections c. to i. inclusive, of section 7 of Article IV (C. ).

ARTICLE VI

1. Findings and declarations. The states of New Jersey and New York hereby find and declare that the transfer of cargo to and from trucks at piers and other waterfront terminals in the port of New York district has in the past resulted in vicious and notorious abuses by persons commonly known as "public loaders." There is compelling evidence that such persons exacted the payment of exorbitant charges for their services, real and alleged, and otherwise extorted large sums through force, threats of violence, unauthorized labor disturbances, and other coercive activities, and that they were responsible for and abetted criminal activities on the waterfront. These practices which developed in the port of New York district have the potential to impose unjustified costs on the handling of goods in and through the port of New York district, to increase the prices paid by consumers for food, fuel, and other necessaries, and to impair the economic stability of the port of New York district. It is the sense of the Legislatures of the states of New York and New Jersey that these practices and conditions must be eliminated to prevent grave injury to the welfare of the people.

2. Persons who may load or unload waterborne freight for compensation. It is hereby declared to be against the public policy of the states of New Jersey and New York and to be unlawful for any person to load or unload waterborne freight onto or from vehicles other than railroad cars at piers or at other waterfront terminals within the port of New York district, for a fee or other compensation, other than the following persons and their employees:

a. Carriers of freight by water, but only at piers at which their vessels are berthed;

b. Other carriers of freight, including but not limited to, railroads and truckers, but only in connection with freight transported or to be transported by such carriers;

c. Operators of piers or other waterfront terminals, including railroads, truck terminal operators, warehousemen and other persons, but only at piers or other waterfront terminals operated by them;

d. Shippers or consignees of freight, but only in connection with freight shipped by such shipper or consigned to such consignee; and

e. Stevedores licensed under Article V (C. ), whether or not such waterborne freight has been or is to be transported by a carrier of freight by water with which such stevedore shall have a contract of the type prescribed by subsection d. of section 3 of Article V (C. ).

Nothing herein contained shall be deemed to permit any such loading or unloading of any waterborne freight at any place by any such person by means of any independent contractor, or any other agent other than an employee, unless such independent contractor is a person permitted by this article to load or unload such freight at such place in the person's own right.

ARTICLE VII

1. Longshoremen's register. The authority shall establish a longshoremen's register in which shall be included all qualified longshoremen eligible, as hereinafter provided, for employment as such in the port of New York district. No person shall act as a longshoreman within the port of New York district unless at the time the person is included in the longshoremen's register, and no person shall employ another to work as a longshoreman within the port of New York district unless at the time such other person is included in the longshoremen's register.

2. Written statement required. Any person applying for inclusion in the longshoremen's register shall file at such place and in such manner as the authority shall designate a written statement, signed, and verified by such person, setting forth the applicant's full name, residence address, social security number, and such further facts and evidence as the authority may prescribe to establish the identity of such person and the person's criminal record, if any.

3. Grounds for denial of application for inclusion in register. The authority may in its discretion deny application for inclusion in the longshoremen's register by a person:

a. Who has been convicted by a court of the United States or any State or territory thereof, without subsequent pardon, of treason, murder, manslaughter, or of any felony or high misdemeanor or of any of the misdemeanors or offenses described in subsection b. of section 3 of Article IV (C. ) or of attempt or conspiracy to commit any of such crimes;

b. Who knowingly or willingly advocates the desirability of overthrowing or destroying the government of the United States by force or violence or who shall be a member of a group which advocates such desirability knowing the purposes of such group include such advocacy; or

c. Whose presence at the piers or other waterfront terminals in the port of New York district is found by the authority, on the basis of the facts and evidence before it, to constitute a danger to the public peace or safety.

4. Inclusion in register; temporary registration. Unless the authority shall determine to exclude the applicant from the longshoremen's register on a ground set forth in section 3 of this article (C. ), it shall include such person in the longshoremen's register. The authority may permit temporary registration of any applicant under the provisions of this article pending final action on an application made for such registration. Any such temporary registration shall be valid for a period not in excess of thirty days.

5. Reprimand or removal of longshoreman from register. The authority shall have power to reprimand any longshoreman registered under this article or to remove the person from the longshoremen's register for such period of time as it deems in the public interest for any of the following offenses:

a. Conviction of a crime or other cause which would permit disqualification of such person from inclusion in the longshoremen's register upon original application;

b. Fraud, deceit, or misrepresentation in securing inclusion in the longshoremen's register;

c. Transfer or surrender of possession to any person either temporarily or permanently of any card or other means of identification issued by the authority as evidence of inclusion in the longshoremen's register, without satisfactory explanation;

d. False impersonation of another longshoreman registered under this article or of another person licensed under this compact;

e. Willful commission of or willful attempt to commit at or on a waterfront terminal or adjacent highway any act of physical injury to any other person or of willful damage to or misappropriation of any other person's property, unless justified or excused by law; and

f. Any other offense described in subsections c. to f. inclusive of section 7 of Article IV (C. ).

6. Recovery of card upon removal from register. The authority shall have the right to recover possession of any card or other means of identification issued as evidence of inclusion in the longshoremen's register in the event that the holder thereof has been removed from the longshoremen's register.

7. Rights of labor not limited. Nothing contained in this article shall be construed to limit in any way any rights of labor reserved by Article XIV (C. ).

ARTICLE VIII

1. Removal from register of names of longshoremen not working or applying for employment. The authority shall, at regular intervals, remove from the longshoremen's register any person who shall have been registered for at least nine months and who shall have failed during the preceding six calendar months either to have worked as a longshoreman in the port of New York district or to have applied for employment as a longshoreman at an employment information center established under Article XI (C. ) for such minimum number of days as shall have been established by the authority pursuant to section 2 of this article (C. ).

2. Minimum number of days of application for employment to be established. On or before the first day of June following the date on which this article becomes operative, and on or before each succeeding first day of June or December, the authority shall, for the purposes of section 1 of this article (C. ), establish for the six-month period beginning on each such date a minimum number of days and the distribution of such days during such period.

3. Standards to be observed in establishing minimum period. In establishing any such minimum number of days or period, the authority shall observe the following standards to accomplish the following objectives:

a. To encourage as far as practicable the regularization of the employment of longshoremen;

b. To bring the number of eligible longshoremen more closely into balance with the demand for longshoremen's services within the port of New York district without reducing the number of eligible longshoremen below that necessary to meet the requirements of longshoremen in the port of New York district;

c. To eliminate oppressive and evil hiring practices affecting longshoremen and waterborne commerce in the port of New York district;

d. To eliminate unlawful practices injurious to waterfront labor; and

e. To establish hiring practices and conditions which will permit the termination of governmental regulation and intervention at the earliest opportunity.

4. Reinstatement after removal from register. A longshoreman who has been removed from the longshoremen's register pursuant to this article may seek reinstatement upon fulfilling the same requirements as for initial inclusion in the longshoremen's register, but not before the expiration of one year from the date of removal, except that immediate reinstatement shall be made upon proper showing that the registrant's failure to work or apply for work the minimum number of days above described was caused by the fact that the registrant was engaged in the military service of the United States or was incapacitated by ill health, physical injury, or other good cause.

5. Registration on temporary basis for emergency needs. Notwithstanding any other provision of this article, the authority shall at any time have the power to register longshoremen on a temporary basis to meet special or emergency needs.

ARTICLE IX

1. License required. No person shall act as a port watchman within the port of New York district without first having obtained a license from the authority, and no person shall employ a port watchman who is not so licensed.

2. Application for license. A license to act as a port watchman shall be issued only upon written application, duly verified, which shall state the following:

a. The full name, residence, business address, if any, place, and date of birth and social security number of the applicant;

b. The present and previous occupations of the applicant, including the places where the applicant was employed and the names of the applicant's employers;

c. The citizenship of the applicant and, if the person is a naturalized citizen of the United States, the court and date of naturalization; and

d. Such further facts and evidence as may be required by the authority to ascertain the character, integrity, and identity of the applicant.

3. Qualifications for license; persons convicted of certain offenses ineligible. No such license shall be granted:

a. Unless the authority shall be satisfied that the applicant possesses good character and integrity;

b. If the applicant has, without subsequent pardon, been convicted by a court of the United States or of any State or territory thereof of the authority of, or the attempt or conspiracy to commit, treason, murder, manslaughter or any felony or high misdemeanor or any of the misdemeanors or offenses described in subsection b. of section 3 of Article IV (C. );

c. Unless the applicant shall meet such reasonable standards of physical and mental fitness for the discharge of a port watchman's duties as may from time to time be established by the authority;

d. If the applicant shall be a member of any labor organization which represents longshoremen or pier superintendents or hiring agents; but nothing in this article shall be deemed to prohibit port watchmen from being represented by a labor organization or organizations which do not also represent longshoremen or pier superintendents or hiring agents. The American Federation of Labor, the Congress of Industrial Organizations and any other similar federation, congress, or other organization of national or international occupational or industrial labor organizations shall not be considered an organization which represents longshoremen or pier superintendents or hiring agents within the meaning of this section although one of the federated or constituent labor organizations thereof may represent longshoremen or pier superintendents or hiring agents;

e. If the applicant knowingly or willfully advocates the desirability of overthrowing or destroying the government of the United States by force or violence or shall be a member of a group which advocates such desirability, knowing the purposes of such group include such advocacy.

4. Issuance of license; temporary permit. When the application shall have been examined and such further inquiry and investigation made as the authority shall deem proper and when the authority shall be satisfied therefrom that the applicant possesses the qualifications and requirements prescribed by this article and regulations issued pursuant thereto, the authority shall issue and deliver a license to the applicant. The authority may issue a temporary permit to any applicant for a license under the provisions of this article pending final action on an application made for such a license. Any such permit shall be valid for a period not in excess of thirty days.

5. Duration of license; renewal. A license granted pursuant to this article shall continue for a term of three years. A license may be renewed by the authority for successive three-year periods upon fulfilling the same requirements as are set forth in this article for an original application.

6. Indefinite validity of licenses. Notwithstanding any provision of section 5 of this article (C. ), a license to act as a port watchman shall continue indefinitely and need not be renewed, provided that the licensee shall, as required by the authority:

a. Submit to a medical examination and meet the physical and mental fitness standards established by the authority pursuant to subsection c. of section 3 of this article (C. );

b. Complete a refresher course of training; and

c. Submit supplementary personal history information.

a. Conviction of a crime or other cause which would permit or require the holder's disqualification from receiving a license upon original application;

b. Fraud, deceit or misrepresentation in securing the license; and

c. Any other offense described in subsections c. to i., inclusive, of section 7 of article IV (C. ).

8. Cancellation. The authority shall, at regular intervals, cancel the license or temporary permit of a port watchman who has failed during the preceding 12 months to work as a port watchman in the port of New York district a minimum number of hours as established by the authority, except that the authority shall immediately restore the license or temporary permit upon a proper showing that the failure to so work was caused by the fact that the licensee or permit holder was engaged in the military service of the United States or was incapacitated by ill health, physical injury, or other good cause.

ARTICLE X

1. Notice and opportunity for hearing on applications. The authority shall not deny any application for a license or registration without giving the applicant or prospective licensee reasonable prior notice and an opportunity to be heard.

2. Manner of denial, revocation, cancellation, or suspension of license or registration. Any application for a license or for inclusion in the longshoremen's register, and any license issued or registration made, may be denied, revoked, cancelled, or suspended as the case may be, only in the manner prescribed in this article.

3. Institution of proceedings to revoke, cancel, or suspend license or registration; hearing. The authority may on its own initiative or on complaint of any person, including any public official or agency, institute proceedings to revoke, cancel, or suspend any license or registration after a hearing at which the licensee or registrant and any person making such complaint shall be given an opportunity to be heard, provided that any order of the authority revoking, cancelling, or suspending any license or registration shall not become effective until fifteen days subsequent to the serving of notice thereof upon the licensee or registrant unless in the opinion of the authority the continuance of the license or registration for such period would be inimical to the public peace or safety. Such hearing shall be held in such manner and upon such notice as may be prescribed by the rules of the authority, but such notice shall be of not less than ten days and shall state the nature of the complaint.

4. Temporary suspension of license or registration. Pending the determination of such hearing pursuant to section 3 of this article, the authority may temporarily suspend a license or registration if in the opinion of the authority the continuance of the license or registration for such period is inimical to the public peace or safety.

5. Subpoenas, issuance of; evidence; procedure. The authority, or such member, officer, employee, or agent of the authority as may be designated by the authority for such purpose, shall have the power to issue subpoenas to compel the attendance of witnesses and the giving of testimony or production of other evidence and to administer oaths in connection with any such hearing. It shall be the duty of the authority or of any such member, officer, employee, or agent of the authority designated by the authority for such purpose to issue subpoenas at the request of and upon behalf of the licensee, registrant, or applicant. The authority or such person conducting the hearing shall not be bound by common law or statutory rules of evidence or by technical or formal rules of procedure in the conduct of such hearing.

6. Action to be taken upon findings and determination. Upon the conclusion of the hearing, the authority shall take such action upon such findings and determination as it deems proper and shall execute an order carrying such findings into effect. The action in the case of an application for a license or registration shall be the granting or denial thereof. The action in the case of a licensee shall be revocation of the license or suspension thereof for a fixed period or reprimand or a dismissal of the charges. The action in the case of a registered longshoreman shall be dismissal of the charges, reprimand, or removal from the longshoremen's register for a fixed period or permanently.

7. Judicial review. The action of the authority in denying any application for a license or in refusing to include any person in the longshoremen's register under this compact or in suspending or revoking such license or removing any person from the longshoremen's register or in reprimanding a licensee, or registrant shall be subject to judicial review by a proceeding instituted in either State at the instance of the applicant, licensee, or registrant in the manner provided by the law of such State for review of the final decision or action of administrative agencies of such State; provided, however, that notwithstanding any other provision of law the court shall have power to stay for not more than thirty days an order of the authority suspending or revoking a license or removing a longshoreman from the longshoremen's register.

ARTICLE XI

1. Findings and declarations regarding method of employment known as "shape-up." The states of New Jersey and New York hereby find and declare that the method of employment of longshoremen and port watchmen in the port of New York district, commonly known as the "shape-up," has resulted in vicious and notorious abuses, of which such employees have been the principal victims. There is compelling evidence that the "shape-up" has permitted and encouraged extortion from employees as the price of securing or retaining employment and has subjected such employees to threats of violence, unwilling joinder in unauthorized labor disturbances, and criminal activities on the waterfront. The "shape-up" has thus resulted in a loss of fundamental rights and liberties of labor, impaired the economic stability of the port of New York district, and weakened law enforcement therein. It is the sense of the Legislatures of the states of New Jersey and New York that these practices and conditions must be prohibited to prevent grave injury to the welfare of waterfront laborers and to the people at large and that the elimination of the "shape-up" and the establishment of a system of employment information centers are necessary to a solution of these public problems.

2. Employment information centers; establishment; employment through. The authority shall establish and maintain one or more employment information centers in each State within the port of New York district at such locations as it may determine. No person shall, directly or indirectly, hire any person for work as a longshoreman or port watchman within the port of New York district, except through such particular employment information center or centers as may be prescribed by the authority. No person shall accept any employment as a longshoreman or port watchman within the port of New York district, except through such an employment information center. At each such employment information center, the authority shall keep and exhibit the longshoremen's register and any other records it shall determine to the end that longshoremen and port watchmen shall have the maximum information as to available employment as such at any time within the port of New York district and to the end that employers shall have an adequate opportunity to fill their requirements of registered longshoremen and port watchmen at all times.

3. Information to be furnished by employers. Every employer of longshoremen or port watchmen within the port of New York district shall furnish such information as may be required by the rules and regulations prescribed by the authority with regard to the name of each person hired as a longshoreman or port watchman, the time and place of hiring, the time, place, and hours of work, and the compensation therefor.

4. Wage payments; cashing checks. All wage payments to longshoremen or port watchmen for work as such shall be made by check or cash evidenced by a written voucher receipted by the person to whom such cash is paid. The authority may arrange for the provision of facilities for cashing such checks.

ARTICLE XII

1. Provisions for expenses. By concurrent legislation enacted by their respective Legislatures, the two states may provide from time to time for meeting the authority's expenses under articles I through XVI (C. ) of this compact. Until other provision shall be made, such expense shall be met as authorized in this article.

2. Budget of expenses. The authority shall annually adopt a budget of its expenses for each year. Each budget shall be submitted to the Governors of the two states and shall take effect as submitted; provided, that either Governor may within thirty days disapprove or reduce any item or items, and the budget shall be adjusted accordingly.

3. Assessment of expenses upon employers. After taking into account such funds as may be available to it from reserves, Federal grants or otherwise, the balance of the authority's budgeted expenses for the performance of its functions and duties under this compact shall be assessed upon employers of persons registered or licensed under this compact. Each such employer shall pay to the authority an assessment computed upon the gross payroll payments made by such employer to longshoremen, pier superintendents, hiring agents, and port watchmen for work or labor performed within the port of New York district, at a rate, not in excess of two per cent, computed by the authority in the following manner: the authority shall annually estimate the gross payroll payments to be made by employers subject to assessment and shall compute a rate thereon which will yield revenues sufficient to finance the authority's budget for the performance of those functions and duties for each year. Such budget may include a reasonable amount for a reserve but such amount shall not exceed ten per cent of the total of all other items of expenditure contained therein. Such reserve shall be used for the stabilization of annual assessments, the payment of operating deficits and for the repayment of advances made by the two states.

4. Annual appropriations. The amount required to balance the authority's budgeted expenses for the performance of its functions and duties under this compact, in excess of the estimated yield of the maximum assessment, shall be certified by the authority, with the approval of the respective Governors, to the Legislatures of the two states, in proportion to the gross annual wage payments made to longshoremen for work in each State within the port of New York district. The Legislatures shall annually appropriate to the authority the amount so certified.

5. Collection and auditing of assessments. The authority may provide by regulation for the collection and auditing of assessments. Such assessments hereunder shall be payable pursuant to such provisions for administration, collection, and enforcement as the states may provide by concurrent legislation. In addition to any other sanction provided by law, the authority may revoke or suspend any license held by any person under this compact, or the person's privilege of employing persons registered or licensed hereunder, for non-payment of any assessment when due.

6. Assessment to be in lieu of other charges. The assessment hereunder shall be in lieu of any other charge for the issuance of licenses to stevedores, pier superintendents, hiring agents, and port watchmen or for the registration of longshoremen or use of an employment information center. The authority shall establish reasonable procedures for the consideration of protests by affected employees concerning the estimates and computation of the rate of assessment.

ARTICLE XIII

1. Failure of witness to attend or give testimony. The failure of any witness, when duly subpoenaed to attend, give testimony, or produce other evidence in connection with any matter arising under articles III through XVI of this compact (C. ), whether or not at a hearing, shall be punishable by the Superior Court in New Jersey and the Supreme Court in New York in the same manner as said failure is punishable by such court in a case therein pending.

2. False testimony or false reports; punishment. Any person who, having been sworn or affirmed as a witness in any such hearing, shall willfully give false testimony or who shall willfully make or file any false or fraudulent report or statement required by this compact to be made or filed under oath, shall be guilty of a misdemeanor, punishable by a fine of not more than $1,000 or imprisonment for not more than one year, or both.

3. Violation or conspiracy to violate provisions of compact. Any person who violates or attempts or conspires to violate any other provision of this compact shall be punishable as may be provided by the two states by action of the Legislature of either State concurred in by the Legislature of the other.

4. Interference with registration of longshoremen. Any person who interferes with or impedes the orderly registration of longshoremen pursuant to this compact or who conspires to or attempts to interfere with or impede such registration shall be punishable as may be provided by the two states by action of the Legislature of either State concurred in by the Legislature of the other.

5. Intimidation, punishment. Any person who, directly or indirectly, inflicts or threatens to inflict any injury, damage, harm, or loss or in any other manner practices intimidation upon or against any person in order to induce or compel such person or any other person to refrain from registering pursuant to this compact shall be punishable as may be provided by the two states by action of the Legislature of either State concurred in by the Legislature of the other.

6. Proof of violations. In any prosecution under this compact, it shall be sufficient to prove only a single act, or a single holding out or attempt, prohibited by law, without having to prove a general course of conduct, in order to prove a violation.

ARTICLE XIV

1. Certain rights of employees not limited by compact. This compact is not designed and shall not be construed to limit in any way any rights granted or derived from any other statute or any rule of law for employees to organize in labor organizations, to bargain collectively and to act in any other way individually, collectively, and through labor organizations or other representatives of their own choosing. Without limiting the generality of the foregoing, nothing contained in this compact shall be construed to limit in any way the right of employees to strike.

2. Collective bargaining rights not limited. This compact is not designed and shall not be construed to limit in any way any rights of longshoremen, hiring agents, pier superintendents, or port watchmen or their employers to bargain collectively and agree upon any method for the selection of such employees by way of seniority, experience, regular gangs, or otherwise; provided, that such employees shall be licensed or registered hereunder and such longshoremen and port watchmen shall be hired only through the employment information centers established hereunder and that all other provisions of this compact be observed.

ARTICLE XV

1. Expenses of administration. a. (1) Every person subject to the payment of any assessment under the provisions of section 3 of Article XII (C. ) of the compact shall file on or before the fifteenth day of the first month of each calendar quarter-year a separate return, together with the payment of the assessment due, for the preceding calendar quarter-year during which any pay roll payments were made to longshoremen, pier superintendents, hiring agents, or port watchmen for work performed as such within the district. Returns covering the amount of assessment payable shall be filed with the authority on forms to be furnished for such purpose and shall contain such data, information or matter as the authority may require to be included therein. The authority may grant a reasonable extension of time for filing returns, or for the payment of assessment, whenever good cause exists. Every return shall have annexed thereto a certification to the effect that the statements contained therein are true.

(2) Every person subject to the payment of assessment hereunder shall keep an accurate record of that person's employment of longshoremen, pier superintendents, hiring agents or port watchmen, which shall show the amount of compensation paid and such other information as the authority may require. Such records shall be preserved for a period of three years and be open for inspection at reasonable times. The authority may consent to the destruction of any such records at any time after said period or may require that they be kept longer, but not in excess of six years.

(3) (a) The authority shall audit and determine the amount of assessment due from the return filed and such other information as is available to it. Whenever a deficiency in payment of the assessment is determined, the authority shall give notice of any such determination to the person liable therefor. Such determination shall finally and conclusively fix the amount due, unless the person against whom it is assessed shall, within thirty days after the giving of notice of such determination, apply in writing to the authority for a hearing, or unless the authority on its own motion shall reduce the same. After such hearing, the authority shall give notice of its decision to the person liable therefor. A determination of the authority under this section shall be subject to judicial review, if application for such review is made within thirty days after the giving of notice of such decision. Any determination under this section shall be made within five years from the time the return was filed and if no return was filed such determination may be made at any time.

(b) Any notice authorized or required under this section may be given by mailing the same to the person for whom it is intended at the last address that the person shall have given to the authority, or in the last return filed with the authority under this section, or, if no return has been filed then to such address as may be obtainable. The mailing of such notice shall be presumptive evidence of the receipt of same by the person to whom addressed. Any period of time, which is determined according to the provisions of this section, for the giving of notice shall commence to run from the date of mailing of such notice.

(4) Whenever any person shall fail to pay, within the time limited herein, any assessment which the person is required to pay to the authority under the provisions of this section, the authority may enforce payment of such fee by civil action for the amount of such assessment with interest and penalties.

(5) The employment by a nonresident of a longshoreman, or a licensed pier superintendent, hiring agent, or port watchman in either State or the designation by a nonresident of a longshoreman, pier superintendent, hiring agent, or port watchman to perform work in such State shall be deemed equivalent to an appointment by such nonresident of the Secretary of State of such State to be the nonresident's true and lawful attorney upon whom may be served the process in any action or proceeding against the nonresident growing out of any liability for assessments, penalties or interest, and a consent that any such process against the nonresident which is so served shall be of the same legal force and validity as if served personally within such State and within the territorial jurisdiction of the court from which the process issues. Service of process within either State shall be made by either: (a) personally delivering to and leaving with the Secretary of State or a deputy Secretary of State of such State duplicate copies thereof at the office of the Department of State in the capital city of such State, in which event such Secretary of State shall forthwith send by registered mail one of such copies to the person at the last address designated by the person to the authority for any purpose under this section or in the last return filed by the person under this section with the authority or as shown on the records of the authority, or if no return has been filed, at the person's last known office address within or without such State; or (b) personally delivering to and leaving with the Secretary of State or a deputy Secretary of State of such State a copy thereof at the office of the Department of State in the capital city of such State and by delivering a copy thereof to the person, personally without such State. Proof of such personal service without such State shall be filed with the clerk of the court in which the process is pending within thirty days after such service and such service shall be complete ten days after proof thereof is filed.

(6) Whenever the authority shall determine that any moneys received as assessments were paid in error, it may cause the same to be refunded, provided an application therefor is filed with the authority within two years from the time the erroneous payment was made.

(7) In addition to any other powers authorized hereunder, the authority shall have power to make reasonable rules and regulations to effectuate the purposes of this section.

(8) Any person who shall willfully fail to pay any assessment due hereunder shall be assessed interest at a rate of one per centum (1%) per month on the amount due and unpaid and penalties of five per centum (5%) of the amount due for each thirty days or part thereof that the assessment remains unpaid. The authority may, for good cause shown, abate all or part of such penalty.

(9) Any person who shall willfully furnish false or fraudulent information or shall willfully fail to furnish pertinent information, as required, with respect to the amount of assessment due, shall be guilty of a misdemeanor, punishable by a fine of not more than $1,000, or imprisonment for not more than one year, or both.

(10) All funds of the authority received as payment of any assessment or penalty under this section shall be deposited with such responsible banks or trust companies as may be designated by the authority. The authority may require that all such deposits be secured by obligations of the United States or of the states of New Jersey or New York of a market value equal at all times to the amount of the deposits, and all banks and trust companies are authorized to give such security for such deposits. The moneys so deposited shall be withdrawn only by check signed by the members of the authority or by such other officers or employees of the authority as it may from time to time designate.

(11) The accounts, books and records of the authority, including its receipts, disbursements, contracts, leases, investments and any other matters relating to its financial standing shall be examined and audited annually by independent auditors to be retained for such purpose by the authority.

b. The authority shall reimburse each State for any funds advanced to the authority exclusive of sums appropriated pursuant to section 4 of Article XII (C. ) of the compact.

2. Officers and employees. Any officer or employee in the State, county or municipal civil service in either State who shall transfer to service with the authority may be given one or more leaves of absence without pay and may, before the expiration of such leave or leaves of absence, and without further examination or qualification, return to the person's former position or be certified by the appropriate civil service agency for retransfer to a comparable position in such State, county, or municipal civil service if such a position is then available.

The authority may, by agreement with any Federal agency from which any officer or employee may transfer to service with the authority, make similar provision for the retransfer of such officer or employee to such Federal agency.

Notwithstanding the provisions of any other law in either State, any officer or employee in the State, county, or municipal service in either State who shall transfer to service with the authority and who is a member of any existing State, county, or municipal pension or retirement system in New Jersey or New York, shall continue to have all rights, privileges, obligations, and status with respect to such fund, system, or systems as if the person had continued in State, county, or municipal office or employment, but during the period of service as a member, officer, or employee of the authority, all contributions to any pension or retirement fund or system to be paid by the employer on account of such member, officer, or employee, shall be paid by the authority. The authority may, by agreement with the appropriate Federal agency, make similar provisions relating to continuance of retirement system membership for any Federal officer or employee so transferred.

3. Penalties. Any person who shall violate any of the provisions of the compact, for which no other penalty is prescribed, shall be guilty of a misdemeanor, punishable by a fine of not more than $500 or by imprisonment for not more than one year, or both.

4. Federal funds. a. The Port Authority of New York and New Jersey is hereby designated on its own behalf or as agent of the State of New Jersey and the State of New York, as provided by the act of Congress of the United States, effective June sixth, one thousand nine hundred and thirty-three, entitled "An act to provide for the establishment of a national employment system and for co-operation with the states in the promotion of such system and for other purposes," as amended, for the purpose of obtaining such benefits of such act of Congress as are necessary or appropriate to the establishment and operation of employment information centers authorized by this compact.

b. The authority shall have all powers necessary to co-operate with appropriate officers or agencies of either State or the United States, to take such steps to formulate such plans and to execute such projects, including but not limited to the establishment and operation of employment information centers, as may be necessary to obtain such benefits for the operation of the authority in accomplishing the purposes of this compact.

c. Any officer or agency designated by each of the two states, pursuant to said act of June sixth, one thousand nine hundred and thirty-three, as amended, is authorized and empowered, upon the request of the authority and subject to its direction, to exercise the powers and duties conferred upon the authority by the provisions of this section.

ARTICLE XVI

1. Registration of longshoreman when required for continuation in employment. Whenever, as a result of legislative amendments to this compact or of a ruling by the authority, registration as a longshoreman is required for any person to continue in employment, such person shall be registered as a longshoreman; provided, however, that such person satisfies all the other requirements of this compact for registration as a longshoreman.

2. Additional powers of the authority. In addition to the powers and duties elsewhere described in this act, the authority shall have the following powers:

a. To issue temporary permits and permit temporary registrations under such terms and conditions as the authority may prescribe which shall be valid for a period to be fixed by the authority not in excess of six months;

b. To require any applicant for a license or registration or any prospective licensee to furnish such facts and evidence as the authority may deem appropriate to enable it to ascertain whether the license or registration should be granted;

c. In any case in which the authority has the power to revoke, cancel or suspend any stevedore license, the authority shall also have the power to impose as an alternative to such revocation, cancellation, or suspension, a penalty, which the licensee may elect to pay the authority in lieu of the revocation, cancellation or suspension. The maximum penalty shall be $5,000 for each separate offense. The authority may, for good cause shown, abate all or part of such penalty;

d. To designate any officer, agent, or employee of the authority to be an investigator who shall be vested with all the powers of a peace or police officer of the State of New York in that State, and of the State of New Jersey in that State;

e. To confer immunity, in the following manner: In any investigation, interview, or other proceeding conducted under oath by the authority or any duly authorized officer, employee, or agent thereof, if a person refuses to answer a question or produce evidence of any other kind on the ground that the person may be incriminated thereby, and notwithstanding such refusal, an order is made upon 24 hours' prior written notice to the appropriate Attorney General of the State of New York or the State of New Jersey, and to the appropriate district attorney or prosecutor having an official interest therein, by the unanimous vote of the members of the authority or their designees, that such person answer the question or produce the evidence, such person shall comply with the order. If such person complies with the order, and if, but for this subsection, would have been privileged to withhold the answer given or the evidence produced by the person, then immunity shall be conferred upon the person, as provided for herein.

"Immunity" as used in this subsection means that such person shall not be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter, or thing concerning which, in accordance with the order by the unanimous vote of the members of the authority or their designees, the person gave answer or produced evidence, and that no such answer given or evidence produced shall be received against the person upon any criminal proceeding. But the person may nevertheless be prosecuted or subjected to penalty or forfeiture for any perjury or contempt committed in answering, or failing to answer, or in producing or failing to produce evidence, in accordance with the order, and any such answer given or evidence produced shall be admissible against the person upon any criminal proceeding concerning such perjury or contempt.

Immunity shall not be conferred upon any person except in accordance with the provisions of this section. If, after compliance with the provisions of this section, a person is ordered to answer a question or produce evidence of any other kind and complies with such order, and it is thereafter determined that the appropriate Attorney General or district attorney or prosecutor having an official interest therein was not notified, such failure or neglect shall not deprive such person of any immunity otherwise properly conferred upon the person;

f. To require any applicant or renewal applicant for registration as a longshoreman, any applicant or renewal applicant for registration as a checker, or any applicant or renewal applicant for registration as a telecommunications system controller and any person who is sponsored for a license as a pier superintendent or hiring agent, any person who is an individual owner of an applicant or renewal applicant stevedore or any persons who are individual partners of an applicant or renewal applicant stevedore, or any officers, directors or stockholders owning five percent or more of any of the stock of an applicant or renewal applicant corporate stevedore or any applicant or renewal applicant for a license as a port watchman or any other category of applicant or renewal applicant for registration or licensing within the authority's jurisdiction to be fingerprinted by the authority at the cost and expense of the applicant or renewal applicant;

g. To exchange fingerprint data with and receive criminal history record information from the Federal Bureau of Investigation and the State Bureau of Identification for use in making the determinations required by this section; and

h. Notwithstanding any other provision of law to the contrary, to require any applicant for employment or employee of the authority engaged in the implementation or enforcement of this compact to be fingerprinted at the cost and expense of the applicant or employee and to exchange fingerprint data with and receive criminal history record information from the Federal Bureau of Investigation and the State Bureau of Identification for use in the hiring or retention of such person.

3. Regularization of longshoremen's employment. Notwithstanding any other provisions of this compact, the authority shall have the power to remove from the longshoremen's register any person, including those persons registered as longshoremen for less than nine months, who shall have failed to have worked as a longshoreman in the port of New York district for such minimum number of days during a period of time as shall have been established by the authority. In administering this section, the authority, in its discretion, may count applications for employment as a longshoreman at an employment information center established under Article XI (C. ) of this compact as constituting actual work as a longshoreman, provided, however, that the authority shall count as actual work the compensation received by any longshoreman pursuant to the guaranteed wage provisions of any collective bargaining agreement relating to longshoremen. Prior to the commencement of any period of time established by the authority pursuant to this section, the authority shall establish for such period the minimum number of days of work required and the distribution of such days during such period and shall also determine whether or not application for employment as a longshoreman shall be counted as constituting actual work as a longshoreman. The authority may classify longshoremen according to length of service as a longshoreman and such other criteria as may be reasonable and necessary to carry out the provisions of this compact. The authority shall have the power to vary the requirements of this section with respect to their application to the various classifications of longshoremen. In administering this section the authority shall observe the standards set forth in section 2 of P.L.1966, c.18 (C.32:23-114) as that section shall have been amended through the enactment of P.L.1999, c.206. Nothing in this section shall be construed to modify, limit, or restrict in any way any of the rights protected by Article XIV (C. ) of this compact.

4. Additional violations. Any person who, having been duly sworn or affirmed as a witness in any investigation, interview, or other proceeding conducted by the authority pursuant to the provisions of this article, shall willfully give false testimony shall be guilty of a misdemeanor punishable by a fine of not more than $1,000 or imprisoned for not more than one year, or both.

5. Civil penalties. The authority may maintain a civil action on behalf of the State against any person who violates or attempts or conspires to violate any provision of this article or who fails, omits, or neglects to obey, observe, or comply with any order or direction of the authority, to recover a judgment for a money penalty not exceeding $500 for each and every offense. Every violation of any such provision, order, or direction shall be a separate and distinct offense, and, in case of a continuing violation, every day's continuance shall be and be deemed to be a separate and distinct offense. Any such action may be compromised or discontinued on application of the authority upon such terms as the court may approve and a judgment may be rendered for an amount less than the amount demanded in the complaint as justice may require.

6. Civil enforcement. The authority may maintain a civil action against any person to compel compliance with any of the provisions of the compact, or to prevent violations, attempts, or conspiracies to violate any such provisions, or interference, attempts, or conspiracies to interfere with or impede the enforcement of any such provisions or the exercise or performance of any power or duty thereunder, either by mandamus, injunction, or action or proceeding in lieu of prerogative writ.

7. Hearings. a. At hearings conducted by the authority pursuant to Article X (C. ) of this compact, applicants, prospective licensees, licensees, and registrants shall have the right to be accompanied and represented by counsel.

b. After the conclusion of a hearing but prior to the making of an order by the authority, a hearing may, upon petition and in the discretion of the hearing officer, be reopened for the presentation of additional evidence. Such petition to reopen the hearing shall state in detail the nature of the additional evidence, together with the reasons for the failure to submit such evidence prior to the conclusion of the hearing. The authority may upon its own motion and upon reasonable notice reopen a hearing for the presentation of additional evidence. Upon petition, after the making of an order of the authority, rehearing may be granted in the discretion of the authority. Such a petition for rehearing shall state in detail the grounds upon which the petition is based and shall separately set forth each error of law and fact alleged to have been made by the authority in its determination, together with the facts and arguments in support thereof. Such petition shall be filed with the authority not later than 30 days after service of such order, unless the authority for good cause shown shall otherwise direct. The authority may upon its own motion grant a rehearing after the making of an order.

8. Denial of applications; definitions. In addition to the grounds elsewhere set forth in this compact, the authority may deny an application for a license or registration for any of the following:

a. Conviction by a court of the United States or any State or territory thereof of coercion;

b. Conviction by any such court, after having been previously convicted by any such court of any crime or of the offenses hereinafter set forth, of a misdemeanor or any of the following offenses: assault, malicious injury to property, malicious mischief, unlawful taking of a motor vehicle, corruption of employees or possession of lottery or number slips;

c. Fraud, deceit or misrepresentation in connection with any application or petition submitted to, or any interview, hearing or proceeding conducted by the authority or prior commission;

d. Violation of any provision of this compact or commission of any offense thereunder;

e. Refusal on the part of any applicant, or prospective licensee, or of any member, officer or stockholder required by section 2 of Article V (C. ) of the compact to sign or be identified in an application for a stevedore license, to answer any material question or produce any material evidence in connection with the person's application or any application made on the person's behalf for a license or registration pursuant to this compact;

f. Association with a person who has been identified by a federal, State or local law enforcement agency as a member or associate of an organized crime group, a terrorist group, or a career offender cartel, or who is a career offender, under circumstances where such association creates a reasonable belief that the participation of the applicant in any activity required to be licensed or registered under this compact would be inimical to the policies of this compact.

For purposes of this subsection, a "terrorist group" shall mean a group associated, affiliated, or funded in whole or in part by a terrorist organization designated by the United States Secretary of State in accordance with section 219 of the Immigration and Nationality Act, as amended from time to time, or any other organization which assists, funds, or engages in crimes or acts of terrorism as defined in the laws of the United States, or of either of the states of New Jersey or New York; a "career offender" shall mean a person whose behavior is pursued in an occupational manner or context for the purpose of economic gain, utilizing such methods as are deemed criminal violations against the public policy of the states of New Jersey and New York; and a "career offender cartel" shall mean a number of career offenders acting in concert, and may include what is commonly referred to as an organized crime group; or

g. Conviction of a racketeering activity or knowing association with a person who has been convicted of a racketeering activity by a court of the United States, or any State or territory thereof under circumstances where such association creates a reasonable belief that the participation of the applicant in any activity required to be licensed or registered under this compact would be inimical to the policies of this compact.

9. Revocation, suspension of licenses, and registrations; definitions. In addition to the grounds elsewhere set forth in this compact any license or registration issued or made pursuant thereto may be revoked or suspended for such period as the authority deems in the public interest or the licensee or registrant may be reprimanded, for:

a. Conviction of any crime or offense in relation to gambling, bookmaking, pool selling, lotteries, or similar crimes or offenses if the crime or offense was committed at or on a pier or other waterfront terminal or within 500 feet thereof;

b. Willful authority of, or willful attempt to commit at or on a waterfront terminal or adjacent highway, any act of physical injury to any other person or of willful damage to or misappropriation of any other person's property, unless justified or excused by law;

c. Receipt or solicitation of anything of value from any person other than a licensee's or registrant's employer as consideration for the selection or retention for employment of such licensee or registrant;

d. Coercion of a licensee or registrant by threat of discrimination or violence or economic reprisal, to make purchases from or to utilize the services of any person;

e. Refusal to answer any material question or produce any evidence lawfully required to be answered or produced at any investigation, interview, or other proceeding conducted by the authority pursuant to the provisions of this compact, or, if such refusal is accompanied by a valid plea of privilege against self-incrimination, refusal to obey an order to answer such question or produce such evidence made by the authority pursuant to the provisions of section 2 of this article (C. ); or

f. Association with a person who has been identified by a federal, State or local law enforcement agency as a member or associate of an organized crime group, a terrorist group, or a career offender cartel, or who is a career offender, under circumstances where such association creates a reasonable belief that the participation of the licensee or registrant in any activity required to be licensed or registered under this act would be inimical to the policies of this compact.

For the purposes of this subsection, a "terrorist group" shall mean a group associated, affiliated, or funded, in whole or in part, by a terrorist organization designated by the United States Secretary of State in accordance with section 219 of the Immigration and Nationality Act, as amended from time to time, or any other organization which assists, funds, or engages in crimes or acts of terrorism as defined in the laws of the United States, or of either of the states of New Jersey or New York; a "career offender" shall mean a person whose behavior is pursued in an occupational manner or context for the purpose of economic gain utilizing such methods as are deemed criminal violations against the public policy of the states of New Jersey and New York; and a "career offender cartel" shall mean a number of career offenders acting in concert, and may include what is commonly referred to as an organized crime group; or

g. Conviction of a racketeering activity or knowing association with a person who has been convicted of a racketeering activity by a court of the United States, or any State or territory thereof under circumstances where such association creates a reasonable belief that the participation of the licensee or registrant in any activity required to be licensed or registered under this compact would be inimical to the policies of this compact.

10. Removal of port watchmen's ineligibility. Any port watchman ineligible for a license by reason of the provisions of subsection b. of section 3 of Article IX (C. ) of the compact may petition for and the authority may issue an order removing the ineligibility in the manner provided in subsection b. of section 3 of Article IV (C. ) of the compact.

11. Petition for order to remove an ineligibility. A petition for an order to remove an ineligibility under subsection b. of section 3 of Article IV (C. ), subsection e. of section 3 of Article V (C. ), subsection b. of section 3 of Article IX (C. ), or paragraph (2) of subsection c. of section 14 of this article (C. ) may be made to the authority before or after the hearing required by Article X of the compact.

12. Denial of stevedore applications. In addition to the grounds elsewhere set forth in this compact, the authority shall not grant an application for a license as stevedore if the applicant has paid, given, caused to have been paid or given, or offered to pay or give to any agent of any carrier of freight by water any valuable consideration for an improper or unlawful purpose or, without the knowledge and consent of such carrier, to induce such agent to procure the employment of the applicant by such carrier or its agent for the performance of stevedoring services.

13. Exemption from arrest and service of process. If a person, in obedience to a subpoena, issued pursuant to subsection d. of section 1 of Article III (C. ) or section 5 of Article X (C. ) of the compact directing the person to attend and testify comes into either State party to this compact from the other State, the person shall not, while in that State pursuant to such subpoena, be subject to arrest or the service of process, civil or criminal, in connection with matters which arose before the person's entrance into such State under the subpoena.

14. Checkers. a. The authority shall establish within the longshoremen's register a list of all qualified longshoremen eligible, as hereinafter provided, for employment as checkers in the port of New York district. No person shall act as a checker within the port of New York district unless at the time the person is included in the longshoremen's register as a checker, and no person shall employ another to work as a checker within the port of New York district unless at the time such other person is included in the longshoremen's register as a checker.

b. Any person applying for inclusion in the longshoremen's register as a checker shall file at any such place and in such manner as the authority shall designate a written statement, signed and verified by such person, setting forth the following:

(1) The full name, residence, place and date of birth, and social security number of the applicant;

(2) The present and previous occupations of the applicant, including the places where the applicant was employed and the names of the applicant's employers; and

(3) Such further facts and evidence as may be required by the authority to ascertain the character, integrity, and identity of the applicant.

c. No person shall be included in the longshoremen's register as a checker:

(1) Unless the authority shall be satisfied that the applicant possesses good character and integrity;

(2) If the applicant has, without subsequent pardon, been convicted by a court of the United States or any State or territory thereof, of the authority of, or the attempt or conspiracy to commit treason, murder, manslaughter, or any felony or high misdemeanor or any of the following misdemeanors or offenses: illegally using, carrying or possessing a pistol or other dangerous weapon; making or possessing burglar's instruments; buying or receiving stolen property; unlawful entry of a building; aiding an escape from prison; unlawfully possessing, possessing with intent to distribute, sale or distribution of a controlled dangerous substance or a controlled dangerous substance analog; petty larceny, where the evidence shows the property was stolen from a vessel, pier or other waterfront terminal; or violation of the compact. Any such applicant ineligible for inclusion in the longshoremen's register as a checker by reason of any such conviction may submit satisfactory evidence to the authority that the applicant has for a period of not less than five years, measured as hereinafter provided, and up to the time of application, so acted as to warrant inclusion in the longshoremen's register as a checker, in which event the authority may, in its discretion, issue an order removing such ineligibility. The aforesaid period of five years shall be measured either from the date of payment of any fine imposed upon such person or the suspension of sentence or from the date of the person's unrevoked release from custody by parole, commutation or termination of sentence;

(3) If the applicant knowingly or willfully advocates the desirability of overthrowing or destroying the government of the United states by force or violence or shall be a member of a group which advocates such desirability, knowing the purposes of such group include such advocacy.

d. When the application shall have been examined and such further inquiry and investigation made as the authority shall deem proper and when the authority shall be satisfied therefrom that the applicant possesses the qualifications and requirements prescribed by this section, the authority shall include the applicant in the longshoremen's register as a checker. The authority may permit temporary registration as a checker to any applicant under this section pending final action on an application made for such registration, under such terms and conditions as the authority may prescribe, which shall be valid for a period to be fixed by the authority, not in excess of six months.

e. The authority shall have power to reprimand any checker registered under this section or to remove the person from the longshoremen's register as a checker for such period of time as it deems in the public interest for any of the following offenses:

(1) Conviction of a crime or other cause which would permit disqualification of such person from inclusion in the longshoremen's register as a checker upon original application;

(2) Fraud, deceit, or misrepresentation in securing inclusion in the longshoremen's register as a checker or in the conduct of the registered activity;

(3) Violation of any of the provisions of the compact;

(4) Unlawfully possessing, possessing with intent to distribute, sale, or distribution of a controlled dangerous substance or a controlled dangerous substance analog;

(5) Inducing or otherwise aiding or abetting any person to violate the terms of the compact;

(6) Paying, giving, causing to be paid or given, or offering to pay or give to any person any valuable consideration to induce such other person to violate any provision of the compact or to induce any public officer, agent or employee to fail to perform the person's duty under the compact;

(7) Consorting with known criminals for an unlawful purpose;

(8) Transfer or surrender of possession to any person either temporarily or permanently of any card or other means of identification issued by the authority as evidence of inclusion in the longshoremen's register without satisfactory explanation; or

(9) False impersonation of another longshoreman or of another person licensed under the compact.

f. The authority shall have the right to recover possession of any card or other means of identification issued as evidence of inclusion in the longshoremen's register as a checker in the event that the holder thereof has been removed from the longshoremen's register as a checker.

g. Nothing contained in this section shall be construed to limit in any way any rights of labor reserved by Article XIV (C. ) of the compact.

15. Implementation of telecommunications hiring system for longshoremen and checkers and registration of telecommunications system controllers.

a. The authority may designate one of the employment information centers it is authorized to establish and maintain under Article XI (C. ) for the implementation of a telecommunications hiring system through which longshoremen and checkers may be hired and accept employment without any personal appearance at the center. The telecommunications hiring system shall incorporate hiring and seniority agreements between the employers of longshoremen and checkers and the labor organizations representing longshoremen and checkers in the port of New York district, provided the agreements are not in conflict with the provisions of the compact.

b. The authority shall permit employees of the management organizations representing employers of longshoremen and checkers in the port of New York district, and of the labor organizations representing longshoremen and checkers in the port of New York district, or of a joint board of these management and labor organizations, to participate in the operation of the telecommunications hiring system, if these employees are registered by the authority as "telecommunications system controllers" in accordance with the provisions of subsection f. of section 2 of this article (C. ), with respect to the registration of checkers. A person shall not act as a "telecommunications system controller" unless he or she is registered. An application for registration and a registration made or issued may be denied, revoked, cancelled or suspended, as the case may be, only in the manner prescribed in Article X (C. ) of the compact. Participation in the operation of the telecommunications hiring system shall be monitored by the authority.

c. The records, documents, tapes, discs, and other data compiled, collected or maintained by a management organization, a labor organization, and a joint board of these management and labor organizations pertaining to the telecommunications hiring system shall be available for inspection, investigation, and duplication by the authority.

16. Supplementary violations. Any person who, without justification or excuse in law, directly or indirectly intimidates or inflicts any injury, damage, harm, loss, or economic reprisal upon any person licensed or registered by the authority, or any other person, or attempts, conspires, or threatens so to do, in order to interfere with, impede, or influence such licensed or registered person in the performance or discharge of his duties or obligations shall be punishable as provided in section 5 of this article.

17. Longshoremen's register. The authority shall accept applications for inclusion in the longshoremen's register: a. upon the joint recommendation in writing of stevedores and other employers of longshoremen in the port of New York district, acting through their representative for the purposes of collective bargaining with a labor organization representing such longshoremen in such district, and such labor organization; or b. upon the petition in writing of a stevedore or other employer of longshoremen in the port of New York district which does not have a representative for the purposes of collective bargaining with a labor organization representing such longshoremen.

18. Temporary suspension of permits, licenses, and registrations for indictment or other charge of crime. a. The authority may temporarily suspend a temporary permit or a permanent license or a temporary or permanent registration pursuant to the provisions of section 4 of Article X (C. ) of this compact until further order of the authority or final disposition of the underlying case, only where the permittee, licensee, or registrant has been indicted for, or otherwise charged with, a crime which is equivalent to a felony in the State of New York or to a crime of the third, second, or first degree in the State of New Jersey or only where the permittee or licensee is a port watchman who is charged by the authority pursuant to Article X (C. ) of this compact with misappropriating any other person's property at or on a pier or other waterfront terminal.

b. In the case of a permittee, licensee, or registrant who has been indicted for, or otherwise charged with, a crime, the temporary suspension shall terminate immediately upon acquittal or upon dismissal of the criminal charge. A person whose permit, license, or registration has been temporarily suspended may, at any time, demand that the authority conduct a hearing as provided for in Article X of this compact. Within 60 days of such demand, the authority shall commence the hearing and, within 30 days of receipt of the administrative law judge's report and recommendation, the authority shall render a final determination thereon; provided, however, that these time requirements, shall not apply for any period of delay caused or requested by the permittee, licensee, or registrant. Upon failure of the authority to commence a hearing or render a determination within the time limits prescribed herein, the temporary suspension of the permittee, licensee or registrant shall immediately terminate. Notwithstanding any other provision of this subsection, if a federal, State, or local law enforcement agency or prosecutor's office shall request the suspension or deferment of any hearing on the ground that such a hearing would obstruct or prejudice an investigation or prosecution, the authority may in its discretion, postpone or defer such hearing for a time certain or indefinitely. Any action by the authority to postpone a hearing shall be subject to immediate judicial review as provided in section 7 of Article X (C. ) of this compact.

c. The authority may, within its discretion, bar any permittee, licensee, or registrant who has been suspended pursuant to the provisions of subsection a. of this section, from any employment by a licensed stevedore or a carrier of freight by water, if that individual has been indicted or otherwise charged in any federal, State or territorial proceeding with any crime involving the possession with intent to distribute, sale, or distribution of a controlled dangerous substance or controlled dangerous substance analog, racketeering or theft from a pier or waterfront terminal.

ARTICLE XVII

1. Criminal infiltration of air freight industry. The states of New York and New Jersey hereby find and declare that the movement of freight through the two states is vital to their economies and prosperity; that ever increasing amounts of such freight are being carried by the air freight industry; that said air freight industry in the two states constitutes an inseparable and integral unit of the commerce of the two states; that criminal and racketeer elements have infiltrated the air freight industry; that such criminal infiltration is threatening the growth of said air freight industry; that one of the means by which such criminal and racketeer elements infiltrate the air freight industry is by posing as labor relations consultants and that firms handling air freight are often forced to employ or engage such persons; that the air freight industry is suffering an alarming rise in the amount of pilferage and theft of air freight; and that it is imperative to the continued growth and economic well-being of the states of New York and New Jersey that every possible effective measure be taken to prevent the pilferage and theft of air freight and the criminal infiltration of the air freight industry.

2. Public interest; exercise of police power. The states of New York and New Jersey hereby find and declare that many of the evils existing in the air freight industry result not only from the causes above described but from the lack of regulation of the air freight industry in and about the port of New York district; that the air freight industry is affected with a public interest requiring regulation, just as the states of New York and New Jersey have heretofore found and declared in respect to the shipping industry; and that such regulation of the air freight industry shall be deemed an exercise of the police power of the two states for the protection of the public safety, welfare, prosperity, health, peace and living conditions of the people of the states.

3. Additional powers. In addition to the powers and duties of the authority elsewhere conferred in this compact, the authority shall have the power:

a. To administer and enforce the provisions of articles XVII through XXV (C. ) of this compact;

b. To establish such divisions and departments within the authority as the authority may deem necessary and to appoint such officers, agents, and employees as it may deem necessary, prescribe their powers, duties, and qualifications and fix their compensation and retain and employ counsel and private consultants on a contract basis or otherwise;

c. To make and enforce such rules and regulations as the authority may deem necessary to effectuate the purposes of this article or to prevent the circumvention or evasion thereof including, but not limited to, rules and regulations, which shall be applicable to any person licensed by the authority, the person's employer, or any other person within an airport, to provide for the maximum protection of air freight, such as checking and custodial accounting, guarding, storing, fencing, gatehouses, access to air freight, air freight loss reports, and any other requirements which the authority in its discretion may deem to be necessary and appropriate to provide such maximum protection. The rules and regulations of the authority shall be effective upon publication in the manner which the authority shall prescribe and upon filing in the office of the Secretary of State of each State. A certified copy of any such rules and regulations, attested as true and correct by the authority, shall be presumptive evidence of the regular making, adoption, approval and publication thereof;

d. To have for its members and its properly designated officers, agents, and employees, full and free access, ingress and egress to and from all airports, air freight terminals, all aircraft traveling to or from an airport and all trucks or other motor vehicles or equipment which are carrying air freight to or from any airport or air freight terminal for the purposes of conducting investigations, making inspections, or enforcing the provisions of this compact; and no person shall obstruct or in any way interfere with any such member, officer, employee or agent in the making of such investigation or inspection or in the enforcement of the provisions of this article or in the performance of any other power or duty under this compact;

e. To make investigations and to collect and compile information concerning airport practices generally, and upon all matters relating to the accomplishment of the objectives of this article;

f. To advise and consult with representatives of labor and industry and with public officials and agencies concerned with the effectuation of the purposes of this article, upon all matters which the authority may desire, including but not limited to the form and substance of rules and regulations and the administration of the article and the expeditious handling and efficient movement of air freight consistent with the security of such air freight;

g. To make annual and other reports to the Governors and Legislatures of both states containing recommendations for the effectuation of the purposes of this article;

h. To issue temporary licenses and temporary permits under such terms and conditions as the authority may prescribe;

i. In any case in which the authority has the power to revoke or suspend any license or permit the authority shall also have the power to impose as an alternative to such revocation or suspension, a penalty, which the licensee or permittee may elect to pay the authority in lieu of the revocation or suspension. The maximum penalty shall be $5,000 for each separate offense. The authority may, for good cause shown, abate all or part of such penalty;

j. To determine the location, size, and suitability of field and administrative offices and any other accommodations necessary and desirable for the performance of the authority's duties under this compact;

k. To acquire, hold, and dispose of real and personal property, by gift, purchase, lease, license, or other similar manner, for its corporate purposes, and in connection therewith to borrow money;

l. To recover possession of any card or other means of identification issued by the authority as evidence of a license or permit in the event that the holder thereof no longer is a licensee or permittee;

m. To require any licensee or permittee to exhibit upon demand the license or permit issued to the person by the authority or to wear such license or permit.

The powers and duties of the authority may be exercised by officers, employees and agents designated by the authority, except the power to make rules and regulations. The authority shall have such additional powers and duties as may hereafter be delegated to or imposed upon it from time to time by the action of the Legislature of either State concurred in by the Legislature of the other.

ARTICLE XVIII

1. Necessity of license. No person shall act as an airfreightman or an airfreightman supervisor within the State of New York or the State of New Jersey without having first obtained from the authority a license to act as such airfreightman or airfreightman supervisor, as the case may be, and no person shall employ another person to act as an airfreightman or airfreightman supervisor who is not so licensed.

2. Application. A license to act as an airfreightman or airfreightman supervisor shall be issued only upon the written application, under oath, of the person proposing to employ or engage another person to act as such airfreightman or airfreightman supervisor, verified by the prospective licensee as to the matters concerning that prospective licensee, and shall set forth the prospective licensee's full name, residence address, social security number, and such further facts and evidence as may be required by the authority to determine the identity, the existence of a criminal record, if any, and the eligibility of the prospective licensee for a license.

3. Denial of application; ineligibility of persons convicted of certain crimes. The authority may in its discretion deny the application for such license submitted on behalf of a prospective licensee for any of the following causes:

a. Conviction by a court of the United States or any State or territory thereof, without subsequent pardon, of the authority of, or the attempt or conspiracy to commit, treason, murder, manslaughter, coercion or any felony or high misdemeanor or any of the following misdemeanors or offenses, excluding, however, any conviction for a misdemeanor or lesser offense arising out of physical misconduct committed during the course of lawful organizational or collective bargaining activities of any labor organization: illegally using, carrying, or possessing a pistol or other dangerous weapon; making, manufacturing, or possessing burglar's instruments; buying or receiving stolen property; criminal possession of stolen property; unlawful entry of a building; criminal trespass; aiding an escape from prison; and unlawfully possessing, selling or distributing a dangerous drug;

b. Conviction by any such court, after having been previously convicted by any such court of any crime or of the offenses hereinafter set forth, of a misdemeanor or any of the following offenses, excluding, however, any conviction for a misdemeanor or lesser offense arising out of physical misconduct committed during the course of lawful organizational or collective bargaining activities of any labor organization: assault, malicious injury to property, criminal mischief, malicious mischief, criminal tampering, unlawful use or taking of a motor vehicle, corruption of employees, promoting gambling, possession of gambling records or devices, or possession of lottery or number slips;

c. Fraud, deceit, or misrepresentation in connection with any application or petition submitted to, or any interview, hearing, or proceeding conducted by the authority pursuant to the provisions of this compact or by the prior commission pursuant to the compact creating that commission;

d. Violation of any provision of this compact or the commission of any offense thereunder;

e. Refusal on the part of the applicant, or prospective licensee, to answer any material question or produce any material evidence in connection with the application;

f. As to an airfreightman, the person's presence at the airports or air freight terminals is found by the authority on the basis of the facts and evidence before it to constitute a danger to the public peace or safety;

g. As to an airfreightman supervisor, failure to satisfy the authority that the prospective licensee possesses good character and integrity;

h. Conviction of a crime or other cause which would permit reprimand of such prospective licensee or the suspension or revocation of the person's license if such person were already licensed.

4. Issuance of license. When the application shall have been examined and such further inquiry and investigation made as the authority shall deem proper and when the authority shall be satisfied therefrom that the prospective licensee possesses the qualifications and requirements prescribed in this article (C. ), the authority shall issue and deliver to the prospective licensee a license to act as an airfreightman or as an airfreightman supervisor, as the case may be, and shall inform the applicant of its action.

5. Reprimand of licensees; revocation or suspension of license; grounds. The authority shall have the power to reprimand any airfreightman or airfreightman supervisor licensed under this article or to revoke or suspend the person's license for such period as the authority deems in the public interest for any of the following causes:

a. Conviction of a crime or other cause which would permit the denial of a license upon original application;

b. Fraud, deceit, or misrepresentation in securing the license, or in the conduct of the licensed activity;

c. Transfer or surrender of possession to any person either temporarily or permanently of any card or other means of identification issued by the authority as evidence of a license, without satisfactory explanation;

d. False impersonation of another person who is a licensee or permittee of the authority under this compact;

e. Willful commission of, or willful attempt to commit at an airport or at an air freight terminal or adjacent highway any act of physical injury to any other person or of willful damage to or misappropriation of any other person's property unless justified or excused by law;

f. Violation of any of the provisions of this compact or inducing or otherwise aiding or abetting any person to violate the terms of this compact;

g. Addiction to the use of, or unlawful possession, sale or distribution of a dangerous drug;

h. Paying, giving, causing to be paid or given, or offering to pay or give to any person any valid consideration to induce such other person to violate any provision of this compact or to induce any public officer, agent, or employee to fail to perform any duty under this compact;

i. Consorting with known criminals for unlawful purposes;

j. Receipt or solicitation of anything of value from any person other than the licensee's or permittee's employer as consideration for the selection or retention for employment of any person who is a licensee or permittee of the authority under this compact;

k. Coercion of any person who is a licensee or permittee of the authority under this compact by threat of discrimination or violent or economic reprisal to make purchases from or to utilize the services of any person;

l. Lending any money to or borrowing any money from any person who is a licensee or permittee of the authority under this compact for which there is a charge of interest or other consideration which is usurious;

m. Conviction of any criminal offense in relation to gambling, bookmaking, pool selling, lotteries, or similar crimes or offenses if the crime or offense was committed at an airport or air freight terminal or within 500 feet thereof;

n. Refusal to answer any material question or produce any material evidence lawfully required to be answered or produced at any investigation, interview, or other proceeding conducted by the authority pursuant to the provisions of this compact or by the prior commission pursuant to the compact creating that commission, or, if such refusal is accompanied by a valid plea of privilege against self-incrimination, refusal to obey an order to answer such question or produce such evidence made by the authority pursuant to the power of the authority under this compact to grant immunity from prosecution;

o. Refusal by the person to exhibit a license or permit issued to the person upon the demand of any officer, agent, or employee of the authority or failure to wear such license or permit when required.

6. Duration of license; renewal. A license granted pursuant to this article (C. ) shall expire on the expiration date, which shall be at least one year from the date of its issuance, set forth by the authority on the card or other means of identification issued by the authority as evidence of a license or upon the termination of employment with the employer who applied for the license. Upon expiration thereof, a license may be renewed by the authority upon fulfilling the same requirements as are set forth in this article for an original application.

ARTICLE XIX

1. License requirement. On and after the 90th day following the effective date of this compact, no person, except an air carrier, shall act as an air freight terminal operator or as an air freight truck carrier or as an airfreightman labor relations consultant within the State of New York or the State of New Jersey without having first obtained a license from the authority to act as an air freight terminal operator or as an air freight truck carrier or as an airfreightman labor relations consultant, as the case may be, and no person shall employ or engage another person to perform services as an air freight terminal operator or as an air freight truck carrier or as an airfreightman labor relations consultant who is not so licensed.

2. Application for license. Any person intending to act as an air freight terminal operator or as an air freight truck carrier or as an airfreightman labor relations consultant within the State of New York of the State of New Jersey shall file in the office of the authority a written application for a license to engage in such occupation duly signed and verified as follows:

a. If the applicant is a natural person, the application shall be signed and verified by such person and if the applicant is a partnership, the application shall be signed and verified by each natural person composing or intending to compose such partnership. The application shall state the full name, age, residence, business address, if any, present and previous occupations of each natural person so signing the same, and any other facts and evidence as may be required by the authority to ascertain the character, integrity, identity, and criminal record, if any, of each natural person so signing such application.

b. If the applicant is a corporation, the application shall be signed and verified by the president, secretary, and treasurer thereof, and shall specify the name of the corporation, the date and place of its incorporation, the location of its principal place of business, the names and addresses of, and the amount of the stock held by stockholders owning 10% or more of any of the stock thereof, and of all the officers, including all members of the board of directors. The requirements of subsection a. of this section as to a natural person who is a member of a partnership, and such requirements as may be specified in rules and regulations promulgated by the authority, shall apply to each such officer or stockholder and their successors in office or interest as the case may be.

In the event of the death, resignation, or removal of any officer, and in the event of any change in the list of stockholders who shall own 10% or more of the stock of the corporation, the secretary of such corporation shall forthwith give notice of that fact in writing to the authority, certified by said secretary.

3. Qualifications for license. No such license shall be granted:

b. Unless the authority shall be satisfied that the applicant and all members, officers, and stockholders required by section 2 of this article to sign or be identified in the application for license possess good character and integrity;

c. If the applicant or any member, officer, or stockholder required by section 2 of this article to sign or be identified in the application for license has, without subsequent pardon, been convicted by a court of the United States or any state or territory thereof of the commission of, or the attempt or conspiracy to commit any crime or offense described in subsection a. of section 3 of Article XVIII (C. ) of this compact. Any applicant ineligible for a license by reason of any such conviction may submit satisfactory evidence to the authority that the person whose conviction was the basis of ineligibility has for a period of not less than five years, measured as hereinafter provided and up to the time of application, so acted as to warrant the grant of such license, in which event the authority may, in its discretion issue an order removing such ineligibility. The aforesaid period of five years shall be measured either from the date of payment of any fine imposed upon such person or the suspension of sentence or from the date of the person's unrevoked release from custody by parole, commutation or termination of sentence. Such petition may be made to the authority before or after the hearing on the application;

d. If the applicant has paid, given, caused to have been paid or given, or offered to pay or give to any officer or employee of any other person employing or engaging the person in a licensed activity any valuable consideration for an improper or unlawful purpose or to induce such officer or employee to procure the employment of the applicant in a licensed activity by such other person;

e. If the applicant has paid, given, caused to have been paid or given, or offered to pay or give to any officer or representative of a labor organization any valuable consideration for an improper or unlawful purpose or to induce such officer or representative to subordinate the interest of such labor organization or its members in the management of the affairs of such labor organization to the interests of the applicant or any other person;

f. If the applicant has paid, given, caused to have been paid or given, or offered to pay or give to any agent of any other person any valuable consideration for an improper or unlawful purpose or, without the knowledge and consent of such other person, to induce such agent to procure the employment of the applicant in his licensed activity by such other person.

4. Issuance of license. When the application shall have been examined and such further inquiry and investigation made as the authority shall deem proper and when the authority shall be satisfied therefrom that the applicant possesses the qualifications and requirements prescribed in this article, the authority shall issue and deliver a license to the applicant.

5. Reprimand of licensees; revocation or suspension of license. The authority shall have the power to reprimand any person licensed under this article (C. ) or to revoke or suspend the person's license for such period as the authority deems in the public interest for any of the following causes on the part of the licensee or of any person required by section 2 of this article (C. ) to sign or be identified in an original application for a license:

a. Any cause set forth in section 5 of Article XVIII (C. ) of this compact;

b. Failure by the licensee to maintain a complete set of books and records containing a true and accurate account of the licensee's receipts and disbursements arising out of the person's licensed activities;

c. Failure to keep said books and records available during business hours for inspection by the authority and its duly designated representatives until the expiration of the fifth calendar year following the calendar year during which occurred the transactions recorded therein;

d. Failure to pay any assessment or fee payable to the authority under this compact when due.

6. Duration of license; renewal. A license granted pursuant to this article shall expire on the expiration date, which shall be at least one year from the date of its issuance, set forth by the authority on the card or other means of identification issued by the authority as evidence of a license. Upon expiration thereof, a license may be renewed by the authority upon fulfilling the same requirements as are set forth in this article for an original application.

ARTICLE XX

1. Designation; license to enter. On or after the effective date of this compact, the authority shall have the power to designate any area located within an airport as an air freight security area. No person who is not licensed by the authority pursuant to this compact shall have ingress to an air freight security area unless issued a permit by the authority.

2. Occasional entrance; permit. Any person who is not licensed by the authority pursuant to this compact and who desires upon any occasion ingress to an air freight security area shall apply at the entrance to such area for a permit for ingress for that particular occasion. In order to secure a permit, a prospective permittee must show identification establishing the applicant's name and address and may be required by the authority to sign a consent to the surrender of the permit upon egress from such area and, if driving a motor vehicle, to an inspection of that motor vehicle upon egress from such area. Any person desiring a permit to enter an air freight security area may be denied such permit by the authority in its discretion if the authority determines that the presence of such person in such area would constitute a danger to the public peace or safety.

3. Regular entrance; permit. Any person whose business, employment, or occupation requires the person to have ingress upon a regular basis to an air freight security area shall be required, in order to obtain ingress to such area, to apply to the authority for a permit for a fixed period of duration to be determined by the authority. Such applicant for a permit of a fixed period of duration shall fulfill the same requirements as the prospective licensee for an airfreightman's license. The authority may in the exercise of its discretion suspend or revoke such permit of a fixed period of duration for the same causes which would permit the authority to revoke the license of an airfreightman.

4. Inspection of vehicles. The authority shall have the power to inspect any truck or any other motor vehicle within an air freight security area.

5. Application of article to flight personnel. The provisions of this article shall not be applicable to any person who is a member of the flight crew or flight personnel of an aircraft which is operated by an air carrier and which is located within an air freight security area upon a showing of such identification as may be required by the authority.

ARTICLE XXI

1. Notice and opportunity for hearing on application. The authority shall not deny any application for a license or permit under articles XVIII through XX (C. ) of this compact without giving the applicant or prospective licensee or permittee reasonable prior notice and an opportunity to be heard.

2. Manner of denial, revocation, or suspension of license or permit. Any application for a license or permit, and any license or permit issued, may be denied, revoked, or suspended, as the case may be, only in the manner prescribed in this article.

3. Institution of proceedings to revoke or suspend license or permit; hearing. The authority may on its own initiative or on complaint of any person, including any public official or agency, institute proceedings to revoke or suspend any license or permit after a hearing at which the licensee or permittee and any person making such complaint shall be given an opportunity to be heard, provided that any order of the authority revoking or suspending any license or permit shall not become effective until 15 days subsequent to the serving of notice thereof upon the licensee or permittee unless in the opinion of the authority the continuance of the license or permit for such period would be inimical to the public peace or safety. Such hearings shall be held in such manner and upon such notice as may be prescribed by the rules of the authority, but such notice shall be of not less than 10 days and shall state the nature of the complaint.

4. Temporary suspension of license or permit. Pending the determination of such hearing pursuant to section 3 of this article (C. ) the authority may temporarily suspend a license or permit if in the opinion of the authority the continuance of the license or permit for such period is inimical to the public peace or safety.

5. Issuance of subpoenas; evidence; procedure. The authority, or such member, officer, employee, or agent of the authority as may be designated by the authority for such purpose, shall have the power to issue subpoenas throughout both states to compel the attendance of witnesses and the giving of testimony or production of other evidence and to administer oaths in connection with any such hearing. It shall be the duty of the authority or of any such member, officer, employee, or agent of the authority designated by the authority for such purpose to issue subpoenas at the request of and upon behalf of the licensee, permittee, or applicant. The authority or such person conducting the hearing shall not be bound by common law or statutory rules of evidence or by technical or formal rules of procedure in the conduct of such hearing.

6. Action upon findings and determinations. Upon the conclusion of the hearing, the authority shall take such action upon such findings and determinations as it deems proper and shall execute an order carrying such findings into effect. The action in the case of an application for a license or permit shall be the granting or denial thereof. The action in the case of a licensee or permittee shall be revocation of the license or permit or suspension thereof for a fixed period or reprimand or a dismissal of the charges.

7. Judicial review. The action of the authority in denying any application for a license or permit or in suspending or revoking such license or permit or in reprimanding a licensee or permittee shall be subject to judicial review by a proceeding instituted in either State at the instance of the applicant, licensee, or permittee in the manner provided by the law of such state for review of the final decision or action of administrative agencies of such State; provided, however, that notwithstanding any other provision of law the court shall have power to stay for not more than 30 days an order of the authority suspending or revoking a license or permit.

8. Right to counsel. At hearings conducted by the authority pursuant to this article, applicants, prospective licensees and permittees, licensees, and permittees shall have the right to be accompanied and represented by counsel.

9. Reopening of hearing. After the conclusion of a hearing but prior to the making of an order by the authority, a hearing may, upon petition and in the discretion of the hearing officer, be reopened for the presentation of additional evidence. Such petition to reopen the hearing shall state in detail the nature of the additional evidence, together with the reasons for the failure to submit such evidence prior to the conclusion of the hearing. The authority may upon its own motion and upon reasonable notice reopen a hearing for the presentation of additional evidence. Upon petition, after the making of an order of the authority, rehearing may be granted in the discretion of the authority. Such a petition for rehearing shall state in detail the grounds upon which the petition is based and shall separately set forth each error of law and fact alleged to have been made by the authority in its determination, together with the facts and arguments in support thereof. Such petition shall be filed with the authority not later than 30 days after service of such order unless the authority for good cause shown shall otherwise direct. The authority may upon its own motion grant a rehearing after the making of an order.

ARTICLE XXII

1. Budget of expenses. In addition to the budget of its expenses under articles I through XVI (C. ) of this compact, the authority shall annually adopt a budget of its expenses under articles XVII through XXIV (C. ) for each year. The annual budget shall be submitted to the Governors of the two states and shall take effect as submitted provided that either Governor may within 30 days disapprove or reduce any item or items, and the budget shall be adjusted accordingly.

2. Obtaining funds; fees and assessments upon employers. After taking into account such funds as may be available to it from reserves in excess of 10% of such budget under this compact, federal grants, or otherwise, the balance of the authority's budgeted expenses shall be obtained by fees payable under this article and by assessments upon employers of persons licensed under this compact as provided in this article.

3. License and permit fees. With respect to airfreightmen and airfreightman supervisors who are employed by an air freight truck carrier regularly to move freight to or from an airport, the employers shall pay to the authority for each such airfreightman and airfreightman supervisor a license fee to be determined by the authority, not in excess of $100 for each year, commencing with April 1. The employer of every person who is issued a permit of fixed duration by the authority for ingress to an air freight security area, or the permittee if self-employed, shall pay to the authority a fee to be determined by the authority, not in excess of $75 for each year, commencing with April 1. The authority shall reduce the maximum fees payable under this section proportionately with any reduction in the maximum assessment rate of 2% provided for by this article.

4. Computation of assessment. Every employer of airfreightmen and airfreightman supervisors licensed by the authority, except as otherwise provided in section 3 of this article (C. ), shall pay to the authority an assessment computed upon the gross payroll payments made by such employer to airfreightmen and airfreightman supervisors for work performed as such, at a rate, not in excess of 2% computed by the authority, in the following manner: the authority shall annually estimate the fees payable under this article and the gross payroll payments to be made by employers subject to assessment and shall compute the fees and a rate of assessment which will yield revenues sufficient to finance the balance of the authority's annual budgeted expenses for the performance of its functions and duties under this article. The authority may hold in reserve an amount not to exceed 10% of its total budgeted expenses for the year, which reserve shall not be included as part of the budget. Such reserve shall be held for the stabilization of annual assessments, the payment of operating deficits and for the repayment of any advances made by the two states.

5. Annual appropriations. The amount required to balance the authority's budgeted expenses for the performance of its functions and duties under this article, that is in excess of the estimated yield of the maximum fees and assessment, shall be certified by the authority, with the approval of the respective Governors, to the Legislatures of the two states, in proportion to the respective totals of the assessments and fees under this article paid to the authority by persons in each of the two states. The Legislatures shall annually appropriate to the authority the amount so certified.

6. Assessments and fees in lieu of other charges. The assessments and fees under this article shall be in lieu of any other charge for the issuance of licenses or permits by the authority pursuant to this compact.

7. Nonpayment of assessment or fee; revocation or suspension of license or permit. In addition to any other sanction provided by law, the authority may revoke or suspend any license or permit held by any employer under articles XVIII through XX (C. ) of this compact or the license or permit held under those articles by any employees of such employer, or the permit held under those articles by any permittee who is self-employed, and in addition the authority may deny ingress to such employers, employees, or permittees to air freight security areas, for nonpayment of any assessment or fee when due.

8. Returns. Every person subject to the payment of any assessment under articles XVIII through XX (C. ) of this compact shall file on or before the twentieth day of the first month of each calendar quarter-year a separate return, together with the payment of the assessment due, for the preceding calendar quarter-year during which any payroll payments were made to licensed persons for whom assessments are payable for work performed as such. Returns covering the amount of assessment payable shall be filed with the authority on forms to be furnished for such purpose and shall contain such data, information or matter as the authority may require to be included therein. The authority may grant a reasonable extension of time for filing returns, or for payment of assessment, whenever good cause exists. Every return shall have annexed thereto a certification to the effect that the statements contained therein are true.

9. Record of employment of licensed persons. Every person subject to the payment of assessment under articles XVIII through XX (C. ) of this compact shall keep an accurate record of such person's employment of licensed persons for whom assessments are payable, which shall show the amount of compensation paid and such other information as the authority may require. Such records shall be preserved for a period of three years and be open for inspection at reasonable times. The authority may consent to the destruction of any such records at any time after said period or may require that they be kept longer but not in excess of six years.

10. Audit; deficiency; hearing; judicial review. a. The authority shall audit and determine the amount of assessment due from the return filed and such other information as is available to it. Whenever a deficiency in payment of the assessment is determined the authority shall give notice of any such determination to the person liable therefor. Such determination shall finally and conclusively fix the amount due, unless the person against whom it is assessed shall, within 30 days after the giving of notice of such determination, apply in writing to the authority for a hearing, or unless the authority on its own motion shall reduce the same. After such hearing, the authority shall give notice of its decision to the person liable therefor. A determination of the authority under this section shall be subject to judicial review, if application for such review is made within 30 days after the giving of notice of such decision. Any determination under this article shall be made within five years from the time the return was filed and if no return was filed such determination may be made at any time.

b. Any notice authorized or required under this article may be given by mailing the same to the person for whom it is intended at the last address that the person shall have given to the authority, or in the last return filed that the person shall have filed with the authority under this article, or if no return has been filed then to such address as may be obtainable. The mailing of such notice shall be presumptive evidence of the receipt of same by the person to whom addressed. Any period of time, which is determined according to the provision of this section, for the giving of notice shall commence to run from the date of mailing of such notice.

11. Time for payment of fee; proration of fee; refund. Every person required to pay a fee for a license or a permit under this article shall pay the same upon filing of the application with the authority for such license or permit. The fee for such license or permit shall be prorated for the fiscal year for which the same is payable as of the date the application for such license or permit is filed with the authority. The authority shall prorate and make a refund of such fee for the period between the date of application and the date of the issuance of such license or permit. Upon surrender of such license or permit or upon the revocation of any such license or permit issued to an employee before the expiration of the fiscal year, the authority shall make a refund prorated for the unexpired portion of the year, less 10% of such refund. In the event of denial of any application for a license or permit, the authority shall refund the fee paid upon application, less 10% of such refund.

12. Enforcement of payment. Whenever any person shall fail to pay, within the time limited herein, any assessment or fee which the person is required to pay to the authority under the provisions of this article, the authority may enforce payment of such assessment or fee by civil action for the amount of such assessment or fee with interest and penalties.

13. Service of process upon nonresident; appointment of Secretary of State as agent. The employment by a nonresident of a licensed person or permittee for whom assessments or fees are payable in either State or the designation by a nonresident of a licensed person or permittee to perform work in such State shall be deemed equivalent to an appointment by such nonresident of the Secretary of State of such State to be the nonresident's true and lawful attorney upon whom may be served the process in any action or proceeding against the nonresident growing out of any liability for assessments or fees, penalties, or interest, and a consent that any such process against the nonresident which is so served shall be of the same legal force and validity as if served on the nonresident personally within such State and within the territorial jurisdiction of the court from which the process issues. Service of process within either State shall be made by either: (1) personally delivering to and leaving with the Secretary of State or a Deputy Secretary of State of such state duplicate copies thereof at the office of the Department of State in the capitol city of such State, in which event such Secretary of State shall forthwith send by registered mail one of such copies to the person at the last address that the person shall have designated to the authority for any purpose under this article or in the last return that the person shall have filed under this article with the authority or as shown on the records of the authority, or if no return has been filed, at the person's last known office address within or without such State; or (2) personally delivering to and leaving with the Secretary of State or a Deputy Secretary of State of such State a copy thereof at the office of the Department of State in the capitol city of such State and by delivering a copy thereof to the person, personally without such State. Proof of such personal service without such State shall be filed with the clerk of the court in which the process is pending within 30 days after such service and such service shall be complete 10 days after proof thereof is filed.

14. Refund of erroneous payment. Whenever the authority shall determine that any moneys received as assessments or fees were paid in error, it may cause the same to be refunded, provided an application therefor is filed with the authority within two years from the time the erroneous payment was made.

15. Rules and regulations. In addition to any other powers authorized hereunder, the authority shall have power to make reasonable rules and regulations to effectuate the purposes of this article.

16. Willful failure to pay assessment or fee; interest and penalties. Any person who willfully fails to pay any assessment or fee due hereunder shall be assessed interest at a rate of 1% per month on the amount due and unpaid and penalties of 5% of the amount due for each 30 days or part thereof that the assessment remains unpaid. The authority may, for good cause shown, abate all or part of such penalty.

17. Willfully furnishing false or fraudulent information; penalty. Any person who shall willfully furnish false or fraudulent information or shall willfully fail to furnish pertinent information as required, with respect to the amount of any assessment or fee due, shall be guilty of a misdemeanor, punishable by a fine of not more than $1,000 or imprisonment for not more than one year, or both.

18. Deposit of funds; security for deposits; withdrawal. All funds of the authority received under the provisions of this article shall be deposited with such responsible banks or trust companies as may be designated by the authority. The authority may require that all such deposits be secured by obligations of the United States or of the states of New York or New Jersey of a market value equal at all times to the amount of the deposits, and all banks and trust companies are authorized to give such security for such deposits. The moneys so deposited shall be withdrawn only by check signed by two members of the authority or by such other officers or employees of the authority as it may from time to time designate.

19. Examination and audit of books. The accounts, books, and records of the authority, including its receipts, disbursements, contracts, leases, investments, and any other matters relating to its financial standing shall be examined and audited annually by independent auditors to be retained for such purpose by the authority.

20. Reimbursement for funds advanced. The authority shall reimburse each State for any funds advanced to the authority to support the performance of its functions and duties under this article (C. ), exclusive of sums appropriated pursuant to section 5 of this article (C. ).

ARTICLE XXIII

1. Failure of witness to attend or give testimony. The failure of any witness, when duly subpoenaed to attend, to give testimony or produce other evidence in any investigation, interview or other proceeding conducted by the authority pursuant to the provisions of this compact or by the prior commission pursuant to the compact creating that commission, shall be punishable by the Superior Court in New Jersey and the Supreme Court in New York in the same manner as said failure is punishable by such court in a case therein pending.

2. False testimony or false reports; penalty. Any person who, having been duly sworn or affirmed as a witness in any investigation, interview or other proceeding conducted by the authority pursuant to the provisions of this compact or by the prior commission pursuant to the compact creating that commission, shall willfully give false testimony shall be guilty of a misdemeanor punishable by a fine of not more than $1,000 or imprisonment for not more than one year, or both.

3. Violation or conspiracy to violate provisions of compact. Any person who interferes with or impedes the orderly licensing of or orderly granting of any permits to any other person pursuant to articles XVIII through XX of this compact, or who attempts, conspires, or threatens so to do, shall be guilty of a misdemeanor punishable by a fine of not more than $1,000 or imprisonment for not more than one year, or both.

4. Interference with licensing. Any person who directly or indirectly inflicts or threatens to inflict any injury, damage, harm, or loss or in any other manner practices intimidation upon or against any person in order to induce or compel such person or any other person to refrain from obtaining a license or permit pursuant to articles XVIII through XX of this compact shall be guilty of a misdemeanor punishable by a fine of not more than $1,000 or imprisonment for not more than one year, or both.

5. Intimidation. Any person who, without justification or excuse in law, directly or indirectly, intimidates or inflicts any injury, damage, harm, loss or economic reprisal upon any person who holds a license or permit issued by the authority pursuant to articles XVIII through XX of this compact, or any other person, or attempts, conspires or threatens so to do, in order to interfere with, impede or influence such licensee or permittee in the performance or discharge of the duties or obligations of that licensee or permittee shall be guilty of a misdemeanor, punishable by a fine of not more than $1,000 or imprisonment of not more than one year or both.

6. Violations; penalty. Any person who shall violate any of the provisions of articles XVIII through XX of this compact, for which no other penalty is prescribed, shall be guilty of a misdemeanor, punishable by a fine of not more than $1,000 or by imprisonment for not more than one year or both.

7. Proof of single act or attempt. In any prosecution under this article, it shall be sufficient to prove only a single act, or a single holding out or attempt, prohibited by law without having to prove a general course of conduct, in order to prove a violation.

ARTICLE XXIV

1. Prohibition against unions having officers, agents, or employees who have been convicted of certain crimes and offenses. No person shall solicit, collect or receive any dues, assessments, levies, fines, or contributions, or other charges within the State for or on behalf of any labor organization which receives, directly or indirectly, 20% or more of its dues, assessments, levies, fines, or contributions, or other charges from persons who hold licenses issued by the authority pursuant to articles XVIII and XIX (C. ) of this compact, or for or on behalf of a labor organization which derives its charter from a labor organization which receives directly or indirectly, 20% or more of its dues, assessments, levies, fines, or contributions, or other charges from persons who hold licenses issued by the authority pursuant to those articles, if any officer, agent, or employee of such labor organization, or of a welfare fund or trust administered partially or entirely by such labor organization or by trustees or other persons designated by such labor organization, has been convicted by a court of the United states, or any state or territory thereof, of a felony, any misdemeanor involving moral turpitude or any crime or offense enumerated in subsection a. of section 3 of Article XVIII of this compact, unless the person has been subsequently pardoned therefor by the Governor or other appropriate authority of the state or jurisdiction in which such conviction was had or has received a certificate of good conduct or other relief from disabilities arising from the fact of conviction from a board of parole or similar authority. No person so convicted shall serve as an officer, agent, or employee of such labor organization, welfare fund or trust unless such person has been so pardoned or has received such a certificate of good conduct. No person, including such labor organization, welfare fund, or trust, shall knowingly permit such convicted person to assume or hold any office, agency or employment in violation of this section.

As used in this section, the term "labor organization" shall mean and include any organization which exists and is constituted for the purpose in whole or in part of collective bargaining, or of dealing with employers concerning grievances, terms and conditions of employment, or of other mutual aid or protection; but it shall not include a federation or congress of labor organizations organized on a national or international basis even though one of its constituent labor organizations may represent persons who hold licenses issued by the authority pursuant to articles XVIII or XIX (C. ) of this compact.

2. Prohibition against employer organizations having officers, agents or employees who have been convicted of certain crimes and offenses. No person shall solicit, collect, or receive any dues, assessments, levies, fines, or contributions, or other charges within the state for or on behalf of any organization of employers, whether incorporated or not, 20% or more of whose members have in their employment any employees who are members of a labor organization to which the prohibition of section 1 of this article (C. ) is applicable, if any officer, agent, or employee of such employer organization or of a welfare fund or trust administered partially or entirely by such employer organization or by trustees or other persons designated by such employer organization, has been convicted by a court of the United States, or any State or territory thereof, of a felony, any misdemeanor involving moral turpitude or any crime or offense enumerated in subsection a. of section 3 of Article XVIII of this compact, unless he has been subsequently pardoned therefor by the Governor or other appropriate authority of the state or jurisdiction in which such conviction was had or has received a certificate of good conduct or other relief from disabilities arising from the fact of conviction from a board of parole or similar authority. No person so convicted shall serve as an officer, agent, or employee of such employer organization, welfare fund or trust unless such person has been so pardoned or has received such a certificate of good conduct. No person, including such employer organization, welfare fund, or trust, shall knowingly permit such convicted person to assume or hold any office, agency or employment in violation of this section.

3. Exceptions to sections 1 and 2 of this article for certain employees. If upon application to the authority by an employee who has been convicted of a crime or offense specified in section 1 or section 2 of this article (C. or ), the authority, in its discretion, determines in an order that it would not be contrary to the purposes and objectives of articles XVII through XXIII (C. ) of this compact or this article for such employee to work in a particular employment otherwise prohibited by section 1 or section 2, the provisions of section 1, or section 2, as the case may be, shall not apply to the particular employment of such employee with respect to such conviction or convictions as are specified in the authority's order. This section is applicable only to those employees who for wages or salary perform manual, mechanical, or physical work of a routine or clerical nature at the premises of the labor organization, employer organization, welfare fund or trust by which they are employed.

4. Civil penalties. The authority may maintain a civil action on behalf of the State against any person who violates or attempts or conspires to violate any provision of articles XVIII through XX of this compact or who fails, omits, or neglects to obey, observe, or comply with any order or direction of the authority issued under articles XVIII through XX of this compact, to recover a judgment for a money penalty not exceeding $500 for each and every offense. Every violation of any such provision, order, or direction shall be a separate and distinct offense and, in case of a continuing violation, every day's continuance shall be and be deemed to be a separate and distinct offense. Any such action may be settled or discontinued on application of the authority upon such terms as the court may approve and a judgment may be rendered for an amount less than the amount demanded in the complaint as justice may require.

5. Civil enforcement. The authority may maintain a civil action against any person to compel compliance with any of the provisions of articles XVIII through XXIII and this article or any order or direction of the authority issued under those articles or to prevent violations, attempts, or conspiracies to violate any such provisions, or interference, attempts, or conspiracies to interfere with or impede the enforcement of any such provisions or the exercise or performance of any power or duty thereunder, either by mandamus, injunction or action or proceeding in lieu of prerogative writ.

6. Exemption from arrest and service of process. If a person in obedience to a subpoena, issued pursuant to articles XVIII through XXIII and this article directing the person to attend and testify comes into either State party to this compact from the other State, the person shall not, while in that State pursuant to such subpoena, be subject to arrest or the service of process, civil or criminal, in connection with matters which arose before the person's entrance into such State under the subpoena.

7. Nonresident witnesses. Any investigation, interview or other proceeding conducted by the authority pursuant to the provisions of articles XVIII through XXIII and this article shall be deemed to be a civil action pending in the Superior Court in New Jersey or the Supreme Court in New York so as to permit the authority to obtain disclosure, in accordance with the provisions governing disclosure in such civil actions, from any person who may be outside the states.

8. Officers and employees. Any officer or employee in the State, county or municipal civil service in either State who shall transfer to service with the authority may be given one or more leaves of absence without pay and may, before the expiration of such leave or leaves of absence, and without further examination or qualification, return to the person's former position or be certified by the appropriate civil service agency for retransfer to a comparable position in such state, county, or municipal civil service if such a position is then available.

Notwithstanding the provisions of any other law in either State, any officer or employee in the State, county, or municipal service in either State who shall transfer to service with the authority and who is a member of any existing State, county, or municipal pension or retirement system in New Jersey or New York, shall continue to have all rights, privileges, obligations, and status with respect to such fund, system or systems as if the person had continued in the person's State, county, or municipal office or employment, but during the period of service as a member, officer, or employee of the authority, all contributions to any pension or retirement fund or system to be paid by the employer on account of such member, officer, or employee, shall be paid by the authority. The authority may, by agreement with the appropriate Federal agency, make similar provisions relating to continuance of retirement system membership for any Federal officer or employee so transferred.

9. Penalties. Any person who shall violate any of the provisions of articles XVIII through XXIII and this article, for which no other penalty is prescribed, shall be guilty of a misdemeanor, punishable by a fine of not more than $1,000 or imprisonment for not more than one year, or both.

ARTICLE XXV

1. Amendments and supplements. Amendments and supplements to this compact to implement the purposes thereof may be adopted by the action of the Legislature of either State concurred in by the Legislature of the other.

2. Partial invalidity of compact or application thereof. If any part or provision of this compact or the application thereof to any person or circumstances be adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in the controversy in which such judgment shall have been rendered and shall not affect or impair the validity of the remainder of this compact or the application thereof to other persons or circumstances and the two states hereby declare that they would have entered into this compact or the remainder thereof had the invalidity of such provision or application thereof been apparent.

3. Liberal construction. In accordance with the ordinary rules for construction of interstate compacts this compact shall be liberally construed to eliminate the evils described therein and to effectuate the purposes thereof.

4. Short title of compact. This compact shall be known and may be cited as the "Port Authority Waterfront and Airport Compact."

4. Jurisdiction established for New Jersey. Until the provisions of the compact contained in section 3 of this act (C. ) shall have been concurred in by the State of New York, the consent of Congress, as required, shall have been given thereto, and the jurisdiction of the authority, provided for therein, shall have been established:

a. The provisions of the compact shall, to the extent authorized under the Constitution and laws of the United States, apply to and be in full force and effect within the State of New Jersey, except as limited by this section, and any violation of such compact or section shall be a violation of the laws of the State of New Jersey; provided, however, that, with respect to the definitions contained in such compact:

(1) "The port of New York district" shall mean only that portion of the district within the State of New Jersey;

(2) The "authority," hereinafter referred to in this section as the "New Jersey authority," shall mean and consist of the members of the authority appointed by the Governor of this State by and with the advice and consent of the Senate, and those members shall possess and exercise all the powers and duties of the authority set forth in articles I through XXIV of section 3 of this act and any other powers and duties conferred herein;

(3) The powers and duties of any other officer or agency of this State prescribed by section 3 of this act shall be effective as if the provisions of the compact set forth in that section were effective as a statute of this State; and

(4) The New Jersey authority shall not be deemed to be a body corporate and politic and shall be in, but not of, the Department of Labor and Workforce Development of this State.

b. The New Jersey authority is authorized to co-operate with a similar authority or other public entity of the State of New York, to exchange information on any matter pertinent to the purposes of this act, and to enter into reciprocal agreements for the accomplishment of such purposes, including but not limited to the following objectives:

(1) To provide for the reciprocal recognition of any license issued or registration made by either authority or by the New Jersey authority and such other public entity;

(2) To give reciprocal effect to any revocation, suspension, or reprimand with respect to any licensee, and any reprimand or removal from a longshoremen's register;

(3) To provide that any act or omission by a licensee or registrant in either State which would be a basis for disciplinary action against such licensee or registrant if it occurred in the State in which the license was issued or the person registered shall be the basis for disciplinary action in both states; and

(4) To provide that longshoremen registered in either State, who perform work or who apply for work at an employment information center within the other State shall be deemed to have performed work or to have applied for work in the State in which they are registered.

c. Notwithstanding any other provision of law, the officers, employees and agents of the authority established by this section may be appointed or employed without regard to their State of residence. Such authority may appoint or employ the same person to a similar office or employment in this State as the person holds in a similar authority or agency of the State of New York.

d. Prohibition against loitering. Any person who shall, without a satisfactory explanation, loiter upon any vessel, dock, wharf, pier, bulkhead, terminal, warehouse, or other waterfront facility or within 500 feet thereof in that portion of the port of New York district within the State of New Jersey, shall be a disorderly person.

e. Collection of funds for unions having officers, agents, or employees who have been convicted of certain crimes and offenses. No person shall solicit, collect, or receive any dues, assessments, levies, fines, or contributions, or other charges within the State of New Jersey for or on behalf of any labor organization, which represents employees registered or licensed pursuant to the provisions of this compact in their capacities as such registered or licensed employees or which derives its charter from a labor organization representing 100 or more of such registered or licensed employees, if any officer, agent or employee of the labor organization for which such dues, assessments, levies, fines, or contributions, or other charges are solicited, collected, or received, or of a welfare fund or trust administered partially or entirely by such labor organization or by trustees or other persons designated by such labor organization, has been convicted by a court of the United States, or any State or territory thereof, of treason, murder, manslaughter, or any felony, high misdemeanor, or misdemeanor involving moral turpitude, or any crime or offense enumerated in paragraph (2) of subsection c. of section 14 of Article XVI (C. ) of the compact set forth in section 3 of this act, unless that person has been subsequently pardoned therefor by the Governor or other appropriate authority of the State or jurisdiction in which such conviction was had or has received a certificate of good conduct or other relief from disabilities arising from the fact of conviction from a board of parole or similar authority.

As used in this section, the term "labor organization" shall mean and include any organization which exists and is constituted for the purpose in whole or in part of collective bargaining, or of dealing with employers concerning grievances, terms and conditions of employment, or other mutual aid or protection; but it shall not include a federation or congress of labor organizations organized on a national or international basis even though one of its constituent labor organizations may represent persons so registered or licensed.

Any person who shall violate this section shall be guilty of a misdemeanor punishable by a fine of $500 or imprisonment for one year, or both.

f. Exception for certain employees. If upon application to the authority by an employee who has been convicted of a crime or offense specified in subsection e. of this section, the authority, in its discretion, determines in an order that it would not be contrary to the purposes and objectives of this compact for such employee to work in a particular employment for a labor organization, welfare fund, or trust subject to the provisions of subsection e. of this section, the provisions of that subsection e. shall not apply to the particular employment of such employee with respect to such conviction or convictions as are specified in the authority's order. This subsection is applicable only to those employees who for wages or salary perform manual, mechanical, or physical work of a routine or clerical nature at the premises of the labor organization, welfare fund, or trust by which they are employed.

g. Prohibition and injunctive relief against the holding of union office or position by officers, agents, or employees who have been convicted of certain crimes and offenses. No person who has been convicted of a crime or offense specified in subsection e. of this section shall directly or indirectly serve as an officer, agent, or employee of a labor organization, welfare fund, or trust subject to the provisions of that subsection e. unless such person has been subsequently pardoned for such crime or offense by the Governor or other appropriate authority of the State or jurisdiction in which such conviction was had or has received a certificate of good conduct or other relief from disabilities arising from the fact of conviction from a board of parole or similar authority or has received pursuant to subsection f. of this section an order of exception from the authority. No person, including a labor organization, welfare fund, or trust within the meaning of subsection e. of this section, shall knowingly permit any other person to assume or hold any office, agency, or employment in violation of this section.

As used in this section the term "person" shall mean not only a natural person but also any partnership, joint venture, association, corporation, or any other legal entity.

Any person who shall violate, aid and abet the violation, or conspire or attempt to violate this subsection shall be guilty of a misdemeanor punishable by a fine of $500 or imprisonment for one year, or both.

The authority may maintain a civil action against any person, labor organization, welfare fund, or trust or officers thereof to compel compliance with this section, or to prevent any violations, the aiding and abetting thereof, or any attempt or conspiracy to violate this section, either by mandamus, injunction, or action or proceeding in lieu of prerogative writ and upon a proper showing a temporary restraining order or other appropriate temporary order shall be granted ex parte and without bond pending final hearing and determination.

Nothing in this subsection shall be construed to modify, limit, or restrict in any way the provisions of subsection e. of this section.

5. As of the transfer date, the waterfront commission compact, entered into by the State of New Jersey pursuant to its agreement thereto under P.L.1953, c.202 (C.32:23-1 et seq.) and by the State of New York pursuant to its agreement thereto under P.L.1953, c.882 (NY Unconsol. Ch. 307, s.1), as amended and supplemented, and the airport commission compact, entered into by the State of New Jersey pursuant to its agreement thereto under P.L.1970, c.58 (C.32:23-150 et seq.) and by the State of New York pursuant to its agreement thereto under P.L.1970, c.951 (NY Unconsol. Ch. 307, s.10), are dissolved.

As used in this act, "transfer date" means the 90th day following the adoption by Congress of legislation consenting to and approving the compact set forth hereunder.

6. Transitional provisions. a. Until such date as the pertinent provisions of section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall have become operative, the Port Authority of New York and New Jersey (hereinafter the "authority") shall not exercise any powers, rights, or duties conferred by those provisions or by any other law in any way which will interfere with the powers, rights, and duties of the New Jersey authority, as described in paragraph (2) of subsection a. of section 4 of this act, or the waterfront commission of New York harbor or waterfront and airport commission of New York and New Jersey (hereinafter the "commission"), as appropriate. The authority, the New Jersey authority, and the commission are directed to cooperate with each other during the period preceding the transfer date, and the commission shall make available to the New Jersey authority or the authority, as appropriate, all information concerning its property and assets, contracts, operations and finances as the New Jersey authority or the authority, as appropriate, may require to provide for the efficient exercise by those respective bodies of all powers, rights and duties conferred upon each of them by this act.

b. On the transfer date:

(1) The authority shall assume all of the powers, rights, assets, and duties of the commission, and such powers shall then and thereafter be vested in and exercised by the authority;

(2) The terms of office of the members of the commission shall terminate, the officers having custody of the funds of the commission shall deliver those funds into the custody of the chief financial officer of the authority, the property and assets of the commission shall, without further act or deed, become the property and assets of the authority, and the commission shall cease to exist; and

(3) The officers and employees of the commission are transferred to the authority and shall become employees of the authority until determined otherwise by the authority.

Nothing in this act shall be construed to deprive any officers or employees of the commission of their rights, privileges, obligations, or status with respect to any pension or retirement system. The employees shall retain all of their rights and benefits under existing collective negotiation agreements or contracts until such time as new or revised agreements or contracts are agreed to. All existing employee representatives shall be retained to act on behalf of those employees until such time as the employees shall, pursuant to law, elect to change those representatives. Nothing in this act shall affect the civil service status, if any, of those officers or employees;

(4) All debts, liabilities, obligations, and contracts of the commission, except to the extent specifically provided for or established to the contrary in this act, are imposed upon the authority, and all creditors of the commission and persons having claims against or contracts with the commission of any kind or character may enforce those debts, claims, and contracts against the authority as successor to the commission in the same manner as they might have done against the commission, and the rights and remedies of those holders, creditors, and persons having claims against or contracts with the commission shall not be limited or restricted in any manner by this act;

(5) In continuing the functions, contracts, obligations, and duties of the commission, the authority is authorized to act in its own name or in the name of the commission as may be convenient or advisable under the circumstances from time to time;

(6) Any references to the commission in any other law or regulation shall then and thereafter be deemed to refer and apply to the authority;

(7) All rules and regulations of the commission shall continue in effect as the rules and regulations of the authority until amended, supplemented, or rescinded by the authority in accordance with law. Notwithstanding any requirements of law to the contrary, the authority may adopt regulations, after notice and an opportunity for public comment, amending, supplementing, modifying, or repealing the regulations of both the authority and the commission, or either of them. Such regulations shall be effective at such time as shall be prescribed by law or by the terms of the regulations, as appropriate, and shall be effective for a period not to exceed 18 months from the transfer date and they may, thereafter, be amended, adopted, or readopted in accordance with law. Regulations of the commission inconsistent with the provisions of this act or of regulations of the authority shall be deemed void if so judged by the authority acting pursuant to the provisions of this paragraph;

(8) All operations of the commission shall continue as operations of the authority until altered by the authority as provided or permitted pursuant to this act; and

(9) The powers vested in the authority by this act shall be construed as being in addition to, and not in diminution of, the powers heretofore vested by law in the commission to the extent not otherwise altered or provided for in this act.

c. A license, registration, or permit issued by the commission prior to the transfer date shall, subject to the terms of its issuance, continue to be valid on and after the transfer date as a license, registration, or permit issued by the authority. An application for a license, registration, or permit filed with the commission prior to and pending on the transfer date shall, as of and from the transfer date, be deemed to be filed with and pending before the authority. No action for the implementation or enforcement of the compact establishing the waterfront commission of New York harbor, as amended and supplemented, which action shall have been commenced by the commission prior to the transfer date, shall be deemed to have lapsed or otherwise terminated by reason of the authority's assumption, under the provisions of the compact set forth in section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), of responsibility for implementation or enforcement of such compact, but rather such action shall, at the authority's discretion, survive as an action of the authority.

d. As soon as practicable after the transfer date, the authority shall notify the Governor and the presiding officers of each house of the Legislature that the transfer has occurred, the date of the transfer, and any other information concerning the transfer the authority deems appropriate.

7. Repealer. The following are repealed:

P.L.1953, c.202 (C.32:23-1 et seq.);

P.L.1991, c.248 (C.32:23-23.1);

P.L.1985, c.32 (C.32:23-43.1 and 32:23-44.1);

Section 2 of P.L.1956, c.20 (C.32:23-75.1);

P.L.1954, c.3 (C.32:23-77.1 et seq.);

Sections 4 and 5 of P.L.1962, c.5 (C.32:23-80.1 and 32:23-80.2);

P.L.1954, c.14 (C.32:23-85 et seq.);

P.L.1956, c.19 (C.32:23-99 et seq.);

Sections 6, 8, 9, and 10 of P.L.1956, c.194 (C.32:23-105 through 32:23-108);

P.L.1990, c.59 (C.32:23-105.1 through 32:23-105.3);

Sections 2 and 6 through 9 of P.L.1962, c.5 (C.32:23-109 through 32:23-113);

Sections 2 through 5 of P.L.1966, c.18 (C.32:23-114 through 32:23-117);

P.L.1976, c.102 (C.32:23-118 through 32:23-121); and

Sections 4 through 19 of P.L.1970, c.58 (C.32:23-150 through 32:23-225).

8. This act shall take effect immediately; provided, however, that:

a. Section 3 shall be inoperative until the enactment into law by the State of New York of legislation having an identical effect, but if the State of New York shall have already enacted such legislation, then that section shall become operative immediately; except that any provision of that section with respect to which the consent of the Congress of the United States is required by the Constitution and laws of the United States shall be inoperative until such consent of Congress shall be given thereto;

b. Section 4 shall be operative immediately, but shall remain operative after section 3 shall become operative only with respect to the provisions of section 3 requiring the consent of the Congress of the United States for which such consent shall not have been given, and shall expire on the transfer date as defined in section 5 of this act; and

c. Sections 5 and 7 shall be inoperative until that transfer date.

STATEMENT

This bill provides for abolishment of the waterfront commission of New York harbor and dissolution of the bi-state compact providing for the establishment, jurisdiction, functions, and duties of the commission. The bill provides for the assumption of those functions and duties by the Port Authority of New York and New Jersey through a supplemental compact to the bi-state compact establishing that authority; the supplemental compact would take effect upon adoption of the compact by the states of New Jersey and New York and, to the extent required, upon consent thereto by the Congress of the United States.

Under legislation enacted by New Jersey and New York in 1953 and consented to by Congress that same year, the two states entered into a compact establishing the waterfront commission of New York harbor. This commission is empowered under the compact to regulate the employment of individuals, and the engagement of businesses, in the provision of various cargo handling services within the port of New York district. Notably, the compact provides for the licensure of those acting within the district as pier superintendents, hiring agents, stevedores, and port watchmen, and for the registration of longshoremen. The commission is authorized to establish and maintain within the district "employment information centers" through which longshoremen and port watchmen must be hired in order to work in the district. The compact provides that conviction of any of various offenses shall be grounds upon which a person may be disqualified from receiving or retaining status as a licensee or registrant under the compact. The compact authorizes the commission to enforce its regulations through investigations, hearings and civil penalties, and to fund its operations through an assessment upon the employers of those subject to its regulation; the assessment may not exceed two percent of the estimated gross payroll of those employers.

In 1970, both New Jersey and New York enacted legislation to supplement the 1953 compact. Under this legislation, the commission's authority to regulate cargo handling was extended to the licensure of those serving at airports within the two states as airfreightmen or airfreightman supervisors, air freight terminal operators, or air freight truck carriers. Like the earlier legislation, the 1970 legislation confers on the commission the power to enforce its regulation of airport cargo handling, and to fund such regulatory and improvement activity through a payroll-based assessment on employers. This supplementary compact has not received Congressional consent, and has not been implemented.