Rpld S1279-a, add Art 5 Title 10-E SS1240 - 1259-a, Pub Auth L
Establishes the metropolitan transportation authority fiscal oversight control board to oversee and regulate the finances of the metropolitan transportation authority.
STATE OF NEW YORK
________________________________________________________________________
1206
2011-2012 Regular Sessions
IN ASSEMBLY(Prefiled)
January 5, 2011
___________
Introduced by M. of A. KOLB, CALHOUN, CASTELLI, MURRAY, MONTESANO --
Multi-Sponsored by -- M. of A. BURLING, CASTRO, CONTE, CORWIN,
CROUCH, FINCH, JORDAN, J. MILLER, MOLINARO, OAKS, RABBITT, SAYWARD --
read once and referred to the Committee on Corporations, Authorities
and Commissions
AN ACT to amend the public authorities law, in relation to establishing
the metropolitan transportation authority fiscal oversight board, and
to provide for the powers and duties of such board; and to repeal
section 1279-a of such law relating to the management advisory board
of the metropolitan transportation authority
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 1279-a of the public authorities law is REPEALED.
2 § 2. Article 5 of the public authorities law is amended by adding a
3 new title 10-E to read as follows:
4 TITLE 10-E
5 METROPOLITAN TRANSPORTATION
6 AUTHORITY FISCAL OVERSIGHT CONTROL BOARD
7 Section 1240. Short title.
8 1241. Legislative intent.
9 1242. Definitions.
10 1243. Establishment of metropolitan transportation authority
11 fiscal oversight control board.
12 1244. Administration of the board.
13 1245. General powers of the board.
14 1246. Transfer of powers, duties and functions.
15 1247. Transfer of records.
16 1248. Transfer of employees.
17 1249. Continuity of authority.
18 1250. Completion of unfinished business.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05220-01-1
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1 1251. Terms occurring in laws, contracts and other documents.
2 1252. Existing rights and remedies preserved.
3 1253. Pending actions and proceedings.
4 1254. Assistance to the board; employees of the inspector gener-
5 al.
6 1255. Review period.
7 1256. MTA financial plan.
8 1257. Actions against the board.
9 1258. Audits.
10 1259. Effect of inconsistent provisions.
11 1259-a. Separability; construction.
12 § 1240. Short title. This title shall be known and may be cited as the
13 "Metropolitan transportation authority fiscal oversight control board
14 act".
15 § 1241. Legislative intent. The legislature hereby finds and declares
16 that the metropolitan transportation authority is facing an ongoing
17 financial crisis, and that the crisis cannot be resolved absent outside
18 intervention. The legislature therefore declares that the creation of an
19 independent fiscal oversight board is necessary to address this finan-
20 cial crisis to restore the confidence of the financial markets, those
21 who use the metropolitan transportation authority services, those who do
22 business with such authority and the people of the state of New York.
23 § 1242. Definitions. For the purposes of this title, unless the
24 context requires otherwise:
25 1. "Board", "control board" and "fiscal oversight control board" mean
26 the metropolitan transportation authority fiscal oversight control board
27 established by section twelve hundred forty-three of this title.
28 2. "Forensic audit" means the use of accounting methods to collect
29 forensic evidence to determine if a criminal act including, but not
30 limited to, embezzlement or fraud, is occurring or has occurred within
31 the MTA.
32 3. "Inspector general" means the office of metropolitan transportation
33 authority inspector general established by section twelve hundred seven-
34 ty-nine of this article.
35 4. "MTA" means the metropolitan transportation authority established
36 by title eleven of this article.
37 5. "MTA region" means the metropolitan commuter transportation
38 district established by section twelve hundred sixty-two of this arti-
39 cle.
40 § 1243. Establishment of metropolitan transportation authority fiscal
41 oversight control board. There is hereby established the metropolitan
42 transportation authority fiscal oversight control board, as an independ-
43 ent entity within the office of inspector general, which shall exercise
44 the powers and duties provided for in this title.
45 § 1244. Administration of the board. 1. The board shall consist of
46 seven members which shall be appointed by the governor. Of the seven
47 members, one such member shall be appointed following the recommendation
48 of the state comptroller; one such member shall be appointed on the
49 recommendation of the temporary president of the senate; one such member
50 shall be appointed on the recommendation of the speaker of the assembly;
51 one such member shall be appointed on the recommendation of the minority
52 leader of the senate; and one such member shall be appointed on the
53 recommendation of the minority leader of the assembly. Every member,
54 who is otherwise an elected official, shall be entitled to designate a
55 single representative to attend, in his or her place, meetings of the
56 board and to vote or otherwise act in his or her behalf. Such designees
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1 shall be residents of the state. Written notice of such designation
2 shall be furnished prior to any participation by the single designee.
3 Such single designee shall serve at the pleasure of the representative,
4 and shall not be authorized to delegate any of his or her duties or
5 functions to another person. Each member shall be appointed for a term
6 of four years, provided however, that three of the members first
7 appointed by the governor, including the member appointed following the
8 recommendation of the state comptroller shall serve for a term ending
9 June thirtieth, two thousand fifteen, and the remaining four members
10 first appointed by the governor including the members appointed on the
11 recommendation of the temporary president of the senate, the speaker of
12 the assembly, the minority leader of the senate and the minority leader
13 of the assembly shall serve for a term ending June thirtieth, two thou-
14 sand seventeen. Each member shall hold office until his or her succes-
15 sor has been appointed and qualified. Thereafter, each member shall
16 serve a term of four years, except that any member appointed to fill a
17 vacancy shall serve only until the expiration of his or her predeces-
18 sor's term.
19 2. The governor shall designate a chair and a vice-chair from among
20 the members. The chair shall preside over all meetings of the members
21 and shall have such other duties as the members may prescribe. The vice-
22 chair shall preside over all meetings of the members in the absence of
23 the chair and shall have such other duties as the members may prescribe.
24 3. The members of the board shall serve without salary, but each
25 member shall be reimbursed for actual and necessary expenses incurred in
26 the performance of such member's official duties as a member of the
27 board.
28 4. Notwithstanding any inconsistent provision of any general, special
29 or local law, ordinance, resolution or charter, no officer, member or
30 employee of the state, any city, county, town or village, any govern-
31 mental entity operating any public school or college, any school
32 district or any other public agency or instrumentality which exercises
33 governmental powers under the laws of the state, shall forfeit his or
34 her office or employment by reason of his or her acceptance of appoint-
35 ment as a member, officer or employee of the board, nor shall service as
36 such member, officer or employee of the board be deemed incompatible or
37 in conflict with such office or employment.
38 5. Four members shall constitute a quorum for the transaction of any
39 business or the exercise of any power of the board. No action shall be
40 taken by the board except pursuant to a favorable vote of at least four
41 members participating in a meeting at which such action is taken.
42 6. The board shall appoint a treasurer and may appoint officers and
43 agents as it may require and prescribe their duties.
44 § 1245. General powers of the board. Except as otherwise limited by
45 this title, the board shall have the following powers and duties:
46 1. to make and alter by-laws for its organizations and management;
47 2. to make and execute contracts and all other instruments or agree-
48 ments necessary or convenient to carry out any powers and functions
49 expressly given in this title;
50 3. to commence any action to protect or enforce any right conferred
51 upon it by any law, contract or other agreement;
52 4. to review, authorize and approve all contracts of the MTA or any of
53 its subsidiaries in excess of one hundred thousand dollars;
54 5. to approve or disapprove the financial plan and the financial plan
55 modifications of the MTA, and shall formulate and adopt its own modifi-
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1 cations to the financial plan, as necessary such modifications shall
2 become effective upon their adoption by the control board;
3 6. to set a maximum level of spending for any proposed budget of any
4 subsidiary organizations of the MTA;
5 7. (a) to impose a wage and/or hiring freeze upon a finding by the
6 control board that a wage and/or hiring freeze is essential to the
7 adoption or maintenance of a MTA budget or financial plan that is in
8 compliance with this title, the board shall be empowered to order that
9 all increases in salary or wages of employees of the MTA and employees
10 of covered subsidiaries which will take effect after the date of the
11 order pursuant to collective bargaining agreements, other analogous
12 contracts or interest arbitration awards, in existence or thereafter
13 entered into, requiring such salary or wage increases as of any date
14 thereafter are suspended. Such order may also provide that all increased
15 payments for holiday and vacations differentials, shift differentials,
16 salary adjustments, according to plan and step-ups or increments for
17 employees of the MTA and employees of covered subsidiaries which will
18 take effect after the date of the order pursuant to collective bargain-
19 ing agreements, other analogous contracts or interest arbitration awards
20 requiring such increased payments as of any date thereafter are, in the
21 same manner, suspended. For the purposes of computing the pension base
22 of retirement allowances, any suspended salary or wage increases and any
23 other suspended payments shall not be considered as part of compensation
24 or final compensation or of annual salary earned or earnable.
25 (b) Notwithstanding the provisions of paragraph (a) of this subdivi-
26 sion, this subdivision shall not be applicable to employees of the MTA
27 or employees of a covered subsidiary subject to a collective bargaining
28 agreement or an employee of the MTA or a covered subsidiary not subject
29 to the collective bargaining agreement where the collective bargaining
30 representative or such unrepresented employee has agreed to a deferment
31 of salary or wage increase, by an instrument in writing which has been
32 certified by the control board as being an acceptable and appropriate
33 contribution toward alleviating the fiscal crisis of the authority. Any
34 such agreement to a deferral of salary or wage increase may provide that
35 for the purposes of computing the pension base of retirement allowances,
36 any deferred salary or wage increase may be considered as part of
37 compensation or final compensation or of annual salary earned or earna-
38 ble.
39 (c) Notwithstanding the provisions of paragraphs (a) and (b) of this
40 subdivision, no retroactive pay adjustments of any kind shall accrue or
41 be deemed to accrue during the period of wage freeze, and no such addi-
42 tional amounts shall be paid at the time a wage freeze is lifted, or at
43 any time thereafter;
44 8. to conduct forensic audits and report any in which there is reason
45 to believe a violation of a law, abuse or waste occurred relating to the
46 MTA to the state inspector general or, where applicable, the inspector
47 general;
48 9. to review and approve or disapprove any collective bargaining
49 agreement to be entered into by the MTA or any covered subsidiary or
50 purporting to bind, the MTA or any covered subsidiary. Prior to entering
51 into any collective bargaining agreement, the MTA or any covered subsid-
52 iary shall submit a copy of such collective bargaining agreement to the
53 control board, accompanied by an analysis of the projected costs of such
54 agreement and certification that execution of the agreement will be in
55 accordance with the financial plan. Such submission shall be in such
56 form and shall include such additional information as the control board
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1 may prescribe. The control board shall promptly review the terms of such
2 collective bargaining agreement and the supporting information in order
3 to determine compliance with the financial plan, and shall disapprove
4 any collective bargaining agreement which, in its judgement, would be
5 inconsistent with the financial plan. No collective bargaining agree-
6 ment binding, or purporting to bind, the MTA or any covered subsidiary
7 after the effective date of this title shall be valid and binding upon
8 the MTA or any covered subsidiary unless first approved by resolution of
9 the control board and shall act jointly with the MTA in selecting
10 members of any interest arbitration panel. Notwithstanding any other
11 evidence presented by the MTA, the covered organization or any recog-
12 nized employee organization, the arbitration panel must, prior to issu-
13 ing any final decision, provide the board with the opportunity to pres-
14 ent evidence regarding the fiscal condition of the MTA;
15 10. to make recommendations to the governor, the temporary president
16 of the senate, the speaker of the assembly, the minority leaders of the
17 senate and the assembly, and the chairs and ranking minority members of
18 the following committees: the senate finance committee, the assembly
19 ways and means committee, the senate committee on corporations, authori-
20 ties and commissions and the assembly committee on corporations, author-
21 ities and commissions and control board members concerning opportunities
22 to improve the performance, reporting, reformation, structure and over-
23 sight of the MTA;
24 11. to provide such additional information and analysis as may be
25 reasonably requested by the legislature and state comptroller;
26 12. to review the potential for and make recommendations to the gover-
27 nor and legislature regarding the terms of board members;
28 13. to develop and issue a written acknowledgement that a board member
29 must execute at the time that the member takes and subscribes their oath
30 of office, or within sixty-five days after the effective date of this
31 title if the member has already taken and subscribed their oath of
32 office, in which the board member acknowledges that they understand
33 their independence and fiduciary duties, including their duty of loyalty
34 and care to the organization and commitment to the control board's
35 mission;
36 14. to recommend to the legislature and governor a compensation plan
37 for officers of the MTA and covered subsidiaries;
38 15. to develop guidelines for best corporate management and financial
39 practices of the MTA, where such authority shall comply with those
40 guidelines except when the MTA provides to the control board a detailed
41 explanation of the MTA's failure to comply, and where an explaining
42 authority shall be considered in compliance with such guidelines unless
43 and until notified to the contrary by the control board;
44 16. to periodically evaluate the suspension of salary or wage
45 increases or suspension of other increased payments or benefits, and
46 may, if it finds that the fiscal crisis, in the sole judgment of the
47 control board has abated, terminate such suspensions;
48 17. to appoint such officers and employees as it may require for the
49 performance of its duties and to fix and determine their qualifications,
50 duties and compensation, and to retain or employ counsel, auditors and
51 private financial consultants and other services on a contract basis or
52 otherwise for rendering professional, business or technical services and
53 advice; and, in taking such actions, the control board shall consider
54 the financial impact on the MTA;
55 18. to make reports received by and prepared by the control board
56 available to the public, to the extent practicable, through the inter-
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1 net. In addition, the control board may make publicly available, and to
2 the extent practicable through the internet, such additional information
3 as it deems appropriate, provided such disclosure does not interfere
4 with the oversight functions of such board. The provisions of this
5 subdivision shall not require, however, the public disclosure of docu-
6 ments or information not subject to disclosure under the provisions of
7 section eighty-seven of the public officers law. Furthermore, before
8 making publicly available in any manner information that is not subject
9 to mandatory disclosure under the provisions of section eighty-seven of
10 the public officers law, the control board shall first obtain the
11 consent of the MTA;
12 19. to annually issue reports on its findings and analyses to the
13 governor, the chair and ranking minority member of the senate finance
14 committee, the chair and ranking minority member of the assembly ways
15 and means committee, the chair and ranking minority member of the senate
16 standing committee on corporations, authorities and commissions, the
17 chair and ranking minority member of the assembly standing committee on
18 corporations, authorities and commissions, the state comptroller and the
19 attorney general, with conclusions and opinions concerning the perform-
20 ance of the MTA and to study, review and report on the operations, prac-
21 tices and finances of the MTA. Such reports shall include, but not be
22 limited to: (a) the economic impact of the mobility tax on the MTA
23 region, (b) a compensation schedule in addition to the report described
24 in section twenty-eight hundred six of this chapter that shall include,
25 by position, title and name of the person holding such position or
26 title, the salary, compensation, allowance and/or benefits provided to
27 any officer, director or employee in a decision making or managerial
28 position of such authority whose salary is in excess of one hundred
29 thousand dollars, (c) educational background and professional experience
30 for all directors, officers and employees for whom salary reporting is
31 required under paragraph (b) of this subdivision, (d) the projects
32 undertaken by such authority during the past year, (e) a listing and
33 description, in addition to the report required by paragraph a of subdi-
34 vision three of section twenty-eight hundred ninety-six of this chapter
35 of all real property of the MTA having an estimated fair market value in
36 excess of fifty thousand dollars that the MTA acquires or disposes of
37 during such period. The report shall contain the price received or paid
38 by the authority and the name of the purchaser or seller for all such
39 property sold or bought by the MTA, (f) the MTA's code of ethics, (g) an
40 assessment of the effectiveness of its internal control structure and
41 procedures, (h) a description of the MTA and its board structure,
42 including (i) names of committees and committee members, (ii) lists of
43 board meetings and attendance, (iii) descriptions of major MTA units and
44 subsidiaries, and (iv) number of employees, (i) its charter, if any, and
45 by-laws, (j) a listing of material changes in operations and programs
46 during the reporting year, (k) a description of assets valued at more
47 than twenty thousand dollars and/or services bought or sold and
48 contracts for services valued at more than one hundred thousand dollars
49 entered into other than on a competitive basis, including (i) the nature
50 of those assets and services, (ii) the names of the counterparties, and
51 (iii) where the contract price for goods purchased exceeds fair market
52 value, or where the contract price for goods sold is less than fair
53 market value, a statement of the fair market value, a detailed explana-
54 tion executed by the chief executive officer, chief financial officer or
55 procurement officer of the reasons for the high price purchase or the
56 low price sale including the relationship, if any, of persons associated
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1 with the buyer/purchaser and persons associated with the MTA and/or the
2 officials who appointed members to the MTA board, and (l) a description
3 of any material pending litigation in which the authority is involved as
4 a party during the reporting year; and
5 20. to do any and all things necessary or convenient to carry out its
6 purposes and exercise the powers expressly given and granted in this
7 title, provided, however, the board shall under no circumstances
8 acquire, hold or transfer title to, lease, own beneficially or other-
9 wise, manage, operate or otherwise exercise control over any real prop-
10 erty, any improvement to real property or any interest therein other
11 than a lease or sublease of office space deemed necessary or desirable
12 by the control board.
13 § 1246. Transfer of powers, duties and functions. All powers, duties
14 and functions conferred upon the management advisory board created by
15 the former section twelve hundred seventy-nine-a of this article, shall
16 be transferred to and assumed by the board.
17 § 1247. Transfer of records. The former management advisory board
18 created by the former section twelve hundred seventy-nine-a of this
19 article shall deliver to the board all books, papers, records and prop-
20 erty as requested by the board.
21 § 1248. Transfer of employees. Upon the transfer of the functions of
22 the former management advisory board created by the former section
23 twelve hundred seventy-nine-a of this article to the board, any affected
24 employees may be transferred to the board in accordance with section
25 seventy of the civil service law.
26 § 1249. Continuity of authority. For the purpose of succession to all
27 functions, powers, duties and obligations transferred and assigned to,
28 devolved upon and assumed by the board shall be deemed and held to
29 constitute the continuation of the former management advisory board
30 pertaining to the powers and functions transferred.
31 § 1250. Completion of unfinished business. Any business or other
32 matter undertaken or commenced by the former management advisory board
33 created by the former section twelve hundred seventy-nine-a of this
34 article pertaining to or connected with the functions, powers, obli-
35 gations and duties transferred and assigned to the board, and pending on
36 the effective date of this title may be conducted and completed by the
37 board in the same manner and under the same terms and conditions and
38 with the same effect as if conducted and completed by the former manage-
39 ment advisory board.
40 § 1251. Terms occurring in laws, contracts and other documents. When-
41 ever the former management advisory board created by the former section
42 twelve hundred seventy-nine-a of this article is referred to or desig-
43 nated in any law, contract or documents pertaining to the functions,
44 powers, obligations and duties transferred and assigned to the board,
45 such reference or designation shall be deemed to refer to the board.
46 § 1252. Existing rights and remedies preserved. No existing right or
47 remedy of any character shall be lost, impaired or affected by reason of
48 this title.
49 § 1253. Pending actions and proceedings. No action or proceeding
50 pending at the time when this act shall take effect, brought by or
51 against the former management advisory board created by the former
52 section twelve hundred seventy-nine-a of this article relating to the
53 function, power or duty transferred to or devolved upon the board shall
54 be affected by this title, but the same may be prosecuted or defended in
55 the name of the board accountability and upon application to the court,
56 the board shall be substituted as a party.
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1 § 1254. Assistance to the board; employees of the inspector general.
2 1. The board may use agents, employees and facilities of the inspector
3 general.
4 2. Officers and employees of the MTA may be transferred to the board
5 without examination and without loss of any civil service or retirement
6 status or rights. Any officer or employee of the board who heretofore
7 acquired or shall hereafter acquire such position status by transfer and
8 who at the time of such transfer was a member of the New York state and
9 local employees' retirement system shall continue to be a member of such
10 system as long as he or she continues in such service, and shall contin-
11 ue to have all the rights, privileges and obligations of membership in
12 such system.
13 § 1255. Review period. 1. Annually not later than November first, the
14 MTA shall submit to the board an annual budget proposal and financial
15 plan.
16 2. Not later than thirty days after such submission, the board shall
17 approve or disapprove the budget proposal and financial plan.
18 3. In the event the board shall disapprove such budget proposal and
19 financial plan based on disapproval of certain actions or assumptions,
20 the board shall promptly thereafter notify the MTA of its reasons. With-
21 in fifteen days from the receipt of such notification the MTA shall
22 modify the budget proposal and financial plan, and unless such budget
23 proposal and financial plan modification is approved by the board, the
24 board shall impose a financial plan of its own formulation as soon as
25 practicable.
26 § 1256. MTA financial plan. 1. The MTA shall prepare and submit to
27 the board a four-year financial plan, not later than the date required
28 for submission of the annual budget. Such financial plan shall, in addi-
29 tion to the requirements for financial plans set forth in subdivisions
30 two and three of this section, contain actions sufficient to ensure with
31 respect to the major operating funds for each fiscal year of the plan
32 that annual aggregate operating expenses for such fiscal year shall not
33 exceed annual aggregate operating revenues for such fiscal year.
34 2. Each financial plan and financial plan modification shall conform
35 to the requirements of paragraph (a) of this subdivision and shall
36 provide that the major operating funds of the MTA will be balanced in
37 accordance with generally accepted accounting principles. The financial
38 plan shall be developed and approved, and may from time to time be modi-
39 fied, in accordance with the following procedures:
40 (a) The MTA shall submit to the board a certificate stating that the
41 budget submitted to the board is consistent with the financial plan
42 submitted therewith and that operation within the budget is feasible.
43 (b) Prior to the approval or disapproval of the financial plan of the
44 MTA by the board, the board shall verify that the MTA has requested
45 community, educational or other entities to seek public input and
46 comment relating to the MTA's and/or any covered subsidiaries' financial
47 plan. The board shall evaluate any proposals submitted to the board for
48 cost savings and/or service delivery enhancement by the MTA.
49 (c) If the board determines that the financial plan or financial plan
50 modification provided pursuant to paragraph (e) of this subdivision or
51 section twelve hundred fifty-five of this title is complete and complies
52 with the standards set forth in this subdivision, the board shall make a
53 certification to the MTA setting forth revenue estimates agreed to by
54 the board in accordance with such determination.
55 (d) The board shall, in the event it disagrees with elements of the
56 financial plan provided pursuant to paragraph (e) of this subdivision,
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1 or section twelve hundred fifty-five of this title, provide notice ther-
2 eof to the MTA, with copies to the director of the budget, the state
3 comptroller, the chair of the assembly ways and means committee, the
4 chair of the senate finance committee and the ranking minority members
5 of such committees, if, in the judgment of the board, such plan: (i) is
6 incomplete; (ii) fails to contain projections of revenues and expendi-
7 tures that are based on reasonable and appropriate assumptions and meth-
8 ods of estimations; (iii) fails to provide that operations of the MTA
9 and the covered subsidiaries will be conducted within the cash resources
10 available; or (iv) fails to comply with the provisions of this title or
11 other requirements of law.
12 (e) After the initial adoption of an approved financial plan, the
13 revenue estimates certified by the board and the financial plan shall be
14 regularly reexamined by the board in consultation with the MTA, the
15 state comptroller and the covered subsidiaries, and the MTA shall
16 provide a modified financial plan in such detail and within such time
17 periods as the board may require. In the event of reductions in such
18 revenue estimates, or in the event the MTA or a covered subsidiary shall
19 expend funds at a rate that would exceed the aggregate expenditure limi-
20 tation for the MTA or covered subsidiary prior to the expiration of the
21 fiscal year, the MTA shall submit a financial plan modification to
22 effect such adjustments in revenue estimates and reductions in total
23 expenditures as may be necessary to conform to such revised revenue
24 estimates or aggregate expenditure limitations.
25 (f) If, within a time period specified by the board, the MTA fails to
26 make such modifications after reductions in revenue estimates, or to
27 provide a modified plan in detail and within such time period required
28 by the board, the board shall adopt a resolution so finding and shall,
29 as soon as practicable thereafter, formulate and adopt a financial plan
30 to be effective until the board approves a financial plan submitted by
31 the MTA. All budgets and operations of the MTA or a covered subsidiary
32 shall be in conformance and compliance with the financial plan then in
33 effect.
34 (g) The MTA shall amend its budget or shall submit a financial plan
35 modification for the approval of the board such that the MTA's budget
36 and the approved financial plan shall be consistent. In no event shall
37 the MTA operate under a budget that is inconsistent with an approved
38 financial plan.
39 3. The financial plan shall be in such form and shall contain such
40 information for each year during which the financial plan is in effect
41 as the board may specify, and shall include the MTA and all the covered
42 subsidiaries, and shall, in such detail as the board from time to time
43 may prescribe, include (a) statements of all estimated revenues and of
44 all expenditures and cash flow projections of the MTA and each covered
45 subsidiary, and (b) an accounting of the expenditure of efficiency
46 incentive grants available to the MTA for each year of the plan.
47 4. The financial plan shall include any information which the board
48 may request to satisfy itself that (a) projected employment levels,
49 collective bargaining agreements and other actions relating to employee
50 costs, capital construction and such other matters as the board may
51 specify are consistent with the provisions made for such obligations in
52 the financial plan, (b) the MTA and the covered subsidiaries are taking
53 whatever action is necessary with respect to programs mandated by state
54 and federal law to ensure that expenditures for such programs are limit-
55 ed to and covered by the expenditures stated in the financial plan, (c)
56 adequate reserves are provided to maintain essential programs in the
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1 event revenues have been overestimated or expenditures underestimated
2 for any period, and (d) the MTA has adequate cash resources to meet its
3 obligations. In addition, except to the extent such reporting require-
4 ments may be modified pursuant to agreement between the board and the
5 MTA, for each fiscal year, or while bonds, notes or other obligations
6 issued by the MTA are outstanding, the MTA shall prepare a quarterly
7 report of summarized budget data depicting overall trends, by major
8 category within funds, of actual revenues and budget expenditures for
9 the entire budget rather than individual line items, as well as updated
10 quarterly cash flow projections of receipts and disbursements. Such
11 reports shall compare revenue estimates and appropriations as set forth
12 in such budget and in the quarterly revenue and expenditure projections
13 submitted therewith, with the actual revenues and expenditures made to
14 date. Such reports shall also compare actual receipts and disbursements
15 with the estimates contained in the cash flow projections, together with
16 variances and their explanation. All quarterly reports shall be accompa-
17 nied by recommendations from the MTA to the board setting forth any
18 remedial action necessary to resolve any unfavorable budget variance
19 including the overestimation of revenues and the underestimation of
20 appropriations. These reports shall be completed within thirty days
21 after the end of each quarter and shall be submitted to the inspector
22 general, the board, the director of the budget and the state comp-
23 troller.
24 5. For each financial plan and financial plan modification to be
25 prepared and submitted by the MTA to the board pursuant to the
26 provisions of this section, the covered subsidiaries shall submit to the
27 MTA such information with respect to their projected expenditures,
28 revenues and cash flows for each of the years covered by such financial
29 plan or modification as the MTA shall determine.
30 § 1257. Actions against the board. 1. Except in an action for wrongful
31 death, no action or proceeding shall be prosecuted or maintained against
32 the board for personal injury or damage to real or personal property
33 alleged to have been sustained by reason of the negligence or wrongful
34 act of the board or of any member, officer, agent or employee thereof,
35 unless (a) it shall appear by and as an allegation in the complaint or
36 moving papers that a notice of claim shall have been made and served
37 upon the board, within the time limit prescribed by and in compliance
38 with section fifty-e of the general municipal law, (b) it shall appear
39 by and as an allegation in the complaint or moving papers that at least
40 thirty days have elapsed since the service of such notice and that
41 adjustment or payment thereof has been neglected or refused, and (c) the
42 action or proceeding shall be commenced within one year after the
43 happening of the event upon which the claim is based. An action against
44 the board for wrongful death shall be commenced in accordance with the
45 notice of claim and time limitation provisions of title eleven of arti-
46 cle nine of this chapter.
47 2. Wherever a notice of claim is served upon the board, it shall have
48 the right to demand an examination of the claimant relative to the
49 occurrence and extent of the injuries or damages for which claim is
50 made, in accordance with the provisions of section fifty-h of the gener-
51 al municipal law.
52 3. The board may require any person presenting for settlement an
53 account or claim for any cause whatever against the board to be sworn
54 before a member, counsel or an attorney, officer or employee thereof
55 designated for such purpose, concerning such account or claim and when
56 so sworn, to answer orally as to any facts relative to such account or
A. 1206 11
1 claim. The board shall have power to settle or adjust any claims in
2 favor of or against the board.
3 4. The rate of interest to be paid by the board upon any judgment for
4 which it is liable, other than a judgment on bonds, notes or other obli-
5 gations, shall not exceed the maximum rate of interest on judgments and
6 accrued claims against municipal authorities as provided in the general
7 municipal law. Interest on payments of principal or interest on any
8 bonds, notes or other obligations in default shall accrue at the rate
9 specified in the general municipal law until paid or otherwise satis-
10 fied.
11 5. The venue of every action, suit or special proceeding brought
12 against the board shall be the supreme court in a county in the MTA
13 region.
14 6. Neither any member of the board nor any officer, employee or agent
15 of the board, while acting within the scope of his or her authority,
16 shall be subject to any liability resulting from exercising or carrying
17 out any of the powers given in this title.
18 7. (a) The state shall hold harmless and indemnify members, officers
19 and employees of the board, all of whom shall be deemed officers and
20 employees of the state for purposes of section seventeen of the public
21 officers law, against any claim, demand, suit, or judgment arising by
22 reason of any act or omission to act by such member, officer or employee
23 occurring in the discharge of his or her duties and within the scope of
24 his or her service on behalf of the board including any claim, demand,
25 suit or judgment based on allegations that financial loss was sustained
26 by any person in connection with the acquisition, disposition or holding
27 of securities or other obligations. In the event of any such claim,
28 demand, suit or judgment, a member, officer or employee of the board
29 shall be held harmless and indemnified, notwithstanding the limitations
30 of subdivision one of section seventeen of the public officers law,
31 unless such individual is found by a final judicial determination not to
32 have acted, in good faith, for a purpose which he or she reasonably
33 believed to be in the best interest of the board or not to have had
34 reasonable cause to believe that his or her conduct was lawful.
35 (b) In connection with any such claim, demand, suit, or judgment, any
36 member, officer or employee of the board shall be entitled to represen-
37 tation by private counsel of his or her choice in any civil judicial
38 proceeding whenever the attorney general determines based upon his or
39 her investigation and review of the facts and circumstances of the case
40 that representation by the attorney general would be inappropriate. The
41 attorney general shall notify the individual in writing of such determi-
42 nation that the individual is entitled to be represented by private
43 counsel. The attorney general may require, as a condition to payment of
44 the fees and expenses of such representative, that appropriate groups of
45 such individuals be represented by the same counsel. If the individual
46 or groups of individuals is entitled to representation by private coun-
47 sel under the provisions of this section, the attorney general shall so
48 certify to the state comptroller. Reasonable attorneys' fees and liti-
49 gation expenses shall be paid by the state to such private counsel from
50 time to time during the pendency of the civil action or proceeding,
51 subject to certification that the individual is entitled to represen-
52 tation under the terms and conditions of this section by the board, upon
53 the audit and warrant of the state comptroller. The provisions of this
54 subdivision shall be in addition to and shall not supplant any indemni-
55 fication or other benefits heretofore or hereafter conferred upon
56 members, officers, or employees of and representatives to the board by
A. 1206 12
1 section seventeen of the public officers law, by action of the board or
2 otherwise. The provisions of this subdivision shall inure only to
3 members, officers and employees of the board, shall not enlarge or
4 diminish the rights of any other party, and shall not impair, limit or
5 modify the rights and obligations of any insurer under any policy of
6 insurance.
7 § 1258. Audits. 1. Any accounts of the board shall be subject to the
8 audit of the state comptroller. In addition, the board shall be subject
9 to an annual financial audit performed by an independent certified
10 accountant selected by the board. Such audit report shall be submitted
11 to the board, the inspector general, the governor, the state comp-
12 troller, the chair and ranking minority member of the senate finance
13 committee and the chair and ranking minority member of the assembly ways
14 and means committee.
15 2. For each fiscal year, and within one hundred twenty days after the
16 close of the MTA's fiscal year, the MTA shall submit its audited finan-
17 cial statements to the board.
18 § 1259. Effect of inconsistent provisions. Insofar as the provisions
19 of this title are inconsistent with the provisions of any other act,
20 general or special law (including article nine of this chapter), or of
21 any charter, local law, ordinance or resolution of any municipality, the
22 provisions of this title shall be controlling. Nothing contained in this
23 section shall be held to supplement or otherwise expand the powers or
24 duties of the board otherwise set forth in this title.
25 § 1259-a. Separability; construction. If any clause, sentence, para-
26 graph, section, or part of this title shall be adjudged by any court of
27 competent jurisdiction to be invalid, such judgment shall not affect,
28 impair or invalidate the remainder thereof, but shall be confined in its
29 operation to the clause, sentence, paragraph, section, or part thereof
30 involved in the controversy in which such judgment shall have been
31 rendered. The provisions of this title shall be liberally construed to
32 assist the effectuation of the public purposes furthered hereby.
33 § 3. This act shall take effect on the sixtieth day after it shall
34 have become a law; provided, however, that the governor is hereby
35 authorized and directed to appoint all seven members of the metropolitan
36 transportation authority fiscal oversight control board on or before
37 such effective date.
