STATE OF NEW YORK
________________________________________________________________________
2073
2021-2022 Regular Sessions
IN ASSEMBLY
January 14, 2021
___________
Introduced by M. of A. ZEBROWSKI, GUNTHER, BRABENEC -- read once and
referred to the Committee on Corporations, Authorities and Commissions
AN ACT to amend the public authorities law, in relation to the election
by certain counties to withdraw from the metropolitan commuter trans-
portation district; and in relation to permitting the county of Putnam
to make such election
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 1279-b of the public authorities law, as added by
2 chapter 669 of the laws of 1986, the opening paragraph of subdivision 1,
3 the opening paragraph of paragraph (a) of subdivision 1 and subdivisions
4 3 and 5 as amended by chapter 670 of the laws of 1986, is amended to
5 read as follows:
6 § 1279-b. Transition--election to withdraw from the metropolitan
7 commuter transportation district. 1. The counties of Dutchess, Orange,
8 Putnam and Rockland shall have an option to withdraw from the metropol-
9 itan commuter transportation district and have such withdrawal take
10 effect on either: (a) [January] April first, [nineteen hundred eighty-
11 seven] two thousand twenty-three. If any such county plans to withdraw
12 from the district on [January] April first, [nineteen hundred eighty-
13 seven] two thousand twenty-three, it shall (i) no later than seventy-
14 five days after the effective date of this section, furnish the commis-
15 sioner of transportation, and chairman of the authority and the other
16 counties which have an option to withdraw, a resolution adopted by the
17 county legislature providing notice of intent to withdraw, (ii) on or
18 before [October] January first, [nineteen hundred eighty-six] two thou-
19 sand twenty-two, furnish to the commissioner of transportation, the
20 chairman of the authority and other counties which have an option to
21 withdraw, a resolution adopted by the county legislature providing for a
22 public transportation plan. For the purposes of this section, a "public
23 transportation plan" shall mean a plan that maintains adequate and
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06080-01-1
A. 2073 2
1 continuous public transportation services from the withdrawing county to
2 the city of New York or any terminus previously served, provides a
3 reasonable level of rail passenger service, provides a schedule for
4 implementing such service, protects the public investment in the rail
5 transportation system and any other criteria deemed necessary by the
6 commissioner of transportation. Such public transportation plan shall
7 include, but not be limited to, an agreement by which such county shall
8 be entitled to lease the facilities and services comprising such rail
9 transportation system at fair market value and under such terms and
10 conditions to be determined as set forth in subdivision six of this
11 section. Prior to withdrawal pursuant to this paragraph or paragraph (b)
12 of this subdivision, a county must receive approval of its public trans-
13 portation plan pursuant to paragraph (c) of this subdivision, (iii) on
14 or before December fifteenth, [nineteen hundred eighty-six] two thousand
15 twenty-two, furnish the commissioner of transportation, a copy of an
16 agreement with the authority or an operator of rail passenger service
17 for the provision of rail passenger service to and from such county and
18 the city of New York or any terminus previously served. If such agree-
19 ment has not been concluded by the respective parties, and a party has
20 exercised its rights pursuant to subdivision six of this section, the
21 approval of the commissioner of transportation shall not be required and
22 the agreement or order set forth in subdivision six of this section,
23 shall determine the terms and conditions of such withdrawal.
24 If a county planning to withdraw on [January] April first, [nineteen
25 hundred eighty-seven] two thousand twenty-three is unable to withdraw
26 because it could not meet the requirements of this paragraph, it may
27 elect to withdraw pursuant to paragraph (b) of this subdivision hereaft-
28 er.
29 (b) January first, [nineteen hundred eighty-eight] two thousand twen-
30 ty-four or January first, [nineteen hundred eighty-nine] two thousand
31 twenty-five. If any such county plans to withdraw on either January
32 first, [nineteen hundred eighty-eight] two thousand twenty-four or Janu-
33 ary first, [nineteen hundred eighty-nine] two thousand twenty-five, it
34 shall (i) no later than ninety days after the first of January of the
35 year immediately preceding the year in which such county plans to with-
36 draw from the district, furnish the commissioner of transportation, the
37 chairman of the authority and the other counties which have an option to
38 withdraw, a resolution adopted by the county legislature providing
39 notice of intent to withdraw from the district, (ii) no later than one
40 hundred twenty days after the first of January of the year immediately
41 preceding the year in which such county plans to withdraw from the
42 district furnish to the commissioner of transportation, the chairman of
43 the authority and the counties which have an option to withdraw a resol-
44 ution adopted by the county legislature providing a public transporta-
45 tion plan as described in this section, (iii) on or before October first
46 of the year immediately preceding the year in which such county plans to
47 withdraw from the district, furnish to the commissioner a copy of an
48 agreement with the authority or an operator of rail passenger service
49 for the provision of rail passenger service to and from such county and
50 the city of New York or any terminus previously served. If such agree-
51 ment has not been concluded by the respective parties, and a party has
52 exercised its rights pursuant to subdivision six of this section, the
53 approval of the commissioner of transportation shall not be required and
54 the agreement or order set forth in such subdivision six shall determine
55 the terms and conditions of such withdrawal.
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1 (c) No later than thirty days after receipt of the public transporta-
2 tion plan the commissioner of transportation shall, in writing, either
3 approve such plan as conforming with the requirements heretofore
4 described or disapprove such plan as failing to meet such requirements
5 and the reasons therefor. Disapproval of a plan shall not prohibit a
6 county from resubmitting a public transportation plan and such resubmit-
7 ted plan shall be approved or disapproved no later than fifteen days
8 after receipt by the commissioner of transportation. The public trans-
9 portation plan shall be subject to any state or federal public hearing
10 requirements which the authority would be subject to if the authority
11 made the changes proposed by such plan.
12 (d) Any such county which plans to withdraw from the district must
13 meet the requirements of this section prior to the effective date of
14 withdrawal, and no withdrawal for the purposes of this section shall
15 take effect unless such county furnishes the resolutions and agreement
16 prior to the effective date of withdrawal.
17 2. The authority and any subsidiary corporation of the authority shall
18 enter into an agreement or agreements with a county that plans to with-
19 draw from the district to transfer and assign to such county all author-
20 ity and subsidiary railroad facilities and operations, rights and obli-
21 gations, and contract rights and obligations, including operating
22 contract rights and obligations, which are owned, operated, maintained
23 or used directly or by contract or which are otherwise involved in the
24 provision of railroad services to such counties. Such agreement shall
25 provide, in the event a facility, operation, right or obligation is
26 necessary and material to the provision of rail passenger service in the
27 district or is not assignable under applicable bond covenants or
28 contracts or the parties agree that it should not be assigned, that the
29 authority or subsidiary thereof shall continue to hold and be responsi-
30 ble for such facility, operation, right or obligation and that such
31 county shall reimburse to the authority that portion of the cost to the
32 authority or subsidiary of its retention of such facility, operation,
33 right or obligation that is allocable [to] within such county. If the
34 parties agree that the authority or subsidiary thereof shall operate the
35 railroad facilities in a county after the effective date of such coun-
36 ty's withdrawal, the agreement also shall provide for the terms and
37 conditions of the operation of such service.
38 3. Within forty-five days of the effective date of this section, the
39 authority and any subsidiary corporation of the authority shall provide
40 to the counties of Dutchess, Orange, Putnam and Rockland a written
41 statement, including cost estimates and the useful life, if any, of all
42 of its facilities, operations, rights and obligations relating to the
43 provision of rail service in such counties.
44 4. The authority and any subsidiary corporation of the authority is
45 authorized to enter into an agreement or agreements with a county that
46 plans to withdraw from the district, pursuant to which the authority or
47 subsidiary thereof will provide technical assistance to such county
48 prior to, during and after the withdrawal, with respect to the transfer
49 of ownership, operation, maintenance and use of railroad facilities
50 within such county. Such agreement may provide that the county reimburse
51 the authority or its subsidiary for the cost to the authority and its
52 subsidiary for the provision of such technical assistance.
53 5. The authority shall have no obligation to undertake or continue any
54 project or part thereof in a current or future capital program plan
55 which pertains to railroad facilities within or services to a county
56 that withdraws from the district on or after such date of withdrawal nor
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1 shall the authority enter into any contract for a project or part there-
2 of which would increase liabilities pursuant to subdivision [six] six-a
3 of this section in a county after such county notifies the authority of
4 its intent to withdraw as provided in subdivision one of this section,
5 provided, however, that if the authority has executed a contract for the
6 effectuation of a project or part thereof in a capital program plan in
7 such county, it shall be assigned to such county in accordance with
8 subdivision two of this section, unless the parties agree that it shall
9 not be assigned and that the authority or its subsidiary shall continue
10 to be responsible therefor, in which event the county shall reimburse
11 the authority or its subsidiary in accordance with the provisions of
12 subdivision two of this section.
13 6. Should the counties of Dutchess, Orange, Putnam or Rockland seek to
14 withdraw from the district pursuant to this section, any such county and
15 the authority, and/or, if appropriate any subsidiary corporation of the
16 authority shall negotiate in good faith any agreement required by this
17 section for withdrawal from the district. Such negotiations shall
18 commence not later than fifteen days after the public transportation
19 plan prepared by any such county has been submitted by such county to
20 the authority, and/or, if appropriate, a subsidiary authority. In no
21 event shall a county be required to negotiate with both the authority
22 and a subsidiary authority. The negotiations conducted by and the
23 actions of the authority or subsidiary authority shall be binding. If
24 after sixty days from the commencement of such negotiations or at any
25 time thereafter the authority or any subsidiary corporation of the
26 authority and a county are unable to reach an agreement required by this
27 section for such withdrawal, either party may make application to a
28 justice of the supreme court presiding in the counties of Dutchess,
29 Orange, Putnam or Rockland for appointment of a special referee. Each
30 party shall submit to the justice a list containing the names and quali-
31 fications of five persons to serve as special referee. The justice shall
32 select one person from among the names submitted by the parties to serve
33 as special referee. The special referee shall mediate the negotiations
34 for withdrawal for a period of no longer than sixty days. If, at the end
35 of said sixty day period, the parties are not able to reach agreement,
36 the special referee shall, within thirty days thereafter, recommend the
37 terms of the withdrawal to the justice. The justice shall review the
38 recommendations of the referee and the positions of the parties thereon
39 and shall issue an order setting forth the terms of the withdrawal.
40 Notwithstanding the entry of such order, a county shall have fifteen
41 days from the entry of such order to terminate such proceeding. Upon the
42 timely exercise of such right to terminate, such proceeding shall be
43 deemed null and void and of no further effect. If a county has not exer-
44 cised its right to terminate, said order shall be subject to appellate
45 review in accordance with the civil practice law and rules, provided
46 that any appeal from the order shall be granted expedited status.
47 6-a. Any county which withdraws from the district shall reimburse to
48 the authority or its subsidiary, within the time period agreed to by the
49 parties, any capital expenditures heretofore undertaken by the authority
50 or its subsidiary for railroad facilities only within such county which
51 were financed by commuter railroad revenue bonds issued by the metropol-
52 itan transportation authority pursuant to section twelve hundred sixty-
53 nine of this [article] title and are assigned to such county in accord-
54 ance with the provisions of subdivision two of this section.
55 [7.] 6-b. The obligations of a county that withdraws from the district
56 to reimburse the authority and any subsidiary corporation of the author-
A. 2073 5
1 ity for the costs of operation, maintenance and use of passenger
2 stations pursuant to section twelve hundred seventy-seven of this [arti-
3 cle] title, shall continue for any such costs incurred up to the effec-
4 tive date of the county's withdrawal from the district and for costs
5 incurred thereafter that result from acts preceding such withdrawal, and
6 the applicability of the payment provisions and procedures of such
7 section twelve hundred seventy-seven to such county shall continue ther-
8 eafter with respect to the aforesaid costs.
9 [8.] 7. In the event of a county's failure to make payment of any
10 monies determined by the authority to be owed and due it or any subsid-
11 iary corporation of the authority pursuant to the terms of any agreement
12 entered into pursuant to this section, the authority is authorized to
13 recover such payments in the same manner as in section twelve hundred
14 seventy-seven of this [article] title and the state comptroller shall
15 withhold and pay monies to the authority in accordance with the proce-
16 dures set forth in that section.
17 8. The authority shall make payment to the county that withdraws for
18 the difference in the amount of services received from the authority and
19 monies paid by the county to the authority, this payment shall be
20 extrapolated over the previous five years from the date of withdrawal.
21 If the authority fails to make such payment to the county, the amount
22 owed shall be withheld by the state comptroller from the authority and
23 the monies shall be paid to the county.
24 9. The term of office of any resident of a county that withdraws from
25 the district under this section, as a member of the board of the author-
26 ity, the Metro-North rail commuter council or the management advisory
27 board, which is based upon residence in such county, shall terminate
28 upon the county's withdrawal and the office shall be deemed vacant and
29 filled in the manner provided by law.
30 10. The provisions of this section and all agreements undertaken in
31 accordance herewith shall be subject to the rights of the holders of any
32 outstanding bonds or notes issued by the authority.
33 § 2. This act shall take effect immediately.
