Requires any proposed increase in fares by the metropolitan commuter transportation authority shall be submitted to the comptroller for approval before such fare increase takes effect; requires the metropolitan commuter transportation authority to submit a report to the comptroller which includes a justification for such proposed fare increase and the current financial condition of such authority.
STATE OF NEW YORK
________________________________________________________________________
9400
IN ASSEMBLY
March 6, 2024
___________
Introduced by M. of A. HYNDMAN -- read once and referred to the Commit-
tee on Corporations, Authorities and Commissions
AN ACT to amend the public authorities law, in relation to requiring the
metropolitan commuter transportation authority to obtain approval from
the state comptroller to increase fares
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 1 of section 1205 of the public authorities
2 law, as amended by chapter 717 of the laws of 1967, is amended to read
3 as follows:
4 1. Notwithstanding the provisions of any other law, the terms of any
5 contract or franchise, the authority shall have the power at all times
6 to fix or adjust the rate or rates of fare to be charged for the use of
7 any transit facility operated by the authority as may in the judgment of
8 the authority be necessary to maintain the operations of the authority
9 on a self-sustaining basis, upon approval of the state comptroller
10 pursuant to section twelve hundred sixty-five-c of this article. The
11 operations of the authority shall be deemed to be on a self-sustaining
12 basis, as required by this title, when the authority is able to pay from
13 revenue, from any funds granted or transferred to the authority pursuant
14 to any provision of law, including funds granted pursuant to the
15 provisions of section ninety-eight-b of the general municipal law, and
16 from any other funds actually available to the authority, including the
17 proceeds of borrowings for working capital purposes, the expenses of
18 operation of the authority as the same shall become due.
19 § 2. Section 1207-i of the public authorities law, as amended by
20 section 17 of part O of chapter 61 of the laws of 2000, is amended to
21 read as follows:
22 § 1207-i. Rates of fare while bonds, notes and other obligations are
23 outstanding. Notwithstanding the provisions of section twelve hundred
24 five of this title or the provisions of any other law to the contrary,
25 so long as the authority shall have outstanding and unpaid bonds, notes
26 or other obligations issued pursuant to section twelve hundred seven-b
27 of this title, or the metropolitan transportation authority or Tribor-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03630-01-3
A. 9400 2
1 ough bridge and tunnel authority shall have outstanding and unpaid
2 bonds, notes or other obligations secured by or payable from, in whole
3 or in part, the revenues, assets or other monies of the authority or its
4 subsidiary corporations, the authority shall have the power at all times
5 to fix or adjust the rate or rates of fare to be charged for the use of
6 any transit facility operated by the authority, upon approval of the
7 state comptroller pursuant to section twelve hundred sixty-five-c of
8 this article, as may, in the judgment of the board, be necessary to
9 produce sufficient revenues to pay, as the same shall become due, the
10 principal of and interest on such bonds, notes and other obligations of
11 the authority, metropolitan transportation authority and Triborough
12 bridge and tunnel authority, together with the maintenance of proper
13 reserves therefor, in addition to paying as the same shall become due
14 the expenses of operation of the authority. The authority, metropolitan
15 transportation authority and Triborough bridge and tunnel authority,
16 shall be authorized to contract with the holders of such bonds, notes
17 and other obligations with respect to the exercise of the power author-
18 ized by this section. In furtherance of the mandate of the metropolitan
19 transportation authority to develop and implement a unified mass trans-
20 portation policy for the metropolitan commuter transportation district
21 and the exercise of its powers, including the power to issue notes,
22 bonds and other obligations secured in whole or in part by the revenues
23 of the authority and its subsidiaries, metropolitan transportation
24 authority and its subsidiaries, and the Triborough bridge and tunnel
25 authority, the authority shall join with the metropolitan transportation
26 authority in connection with the establishment, levy and collection of
27 fares, tolls, rentals, rates, charges and other fees for the transporta-
28 tion of passengers on any transit facilities operated by authority and
29 its subsidiaries, including any changes thereto.
30 § 3. Subdivision 3 of section 1266 of the public authorities law, as
31 amended by chapter 314 of the laws of 1981, is amended to read as
32 follows:
33 3. [The] Except as provided in section twelve hundred sixty-five-c of
34 this title, the authority may establish, levy and collect or cause to be
35 established, levied and collected and, in the case of a joint service
36 arrangement, join with others in the establishment, levy and collection
37 of such fares, tolls, rentals, rates, charges and other fees as it may
38 deem necessary, convenient or desirable for the use and operation of any
39 transportation facility and related services operated by the authority
40 or by a subsidiary corporation of the authority or under contract, lease
41 or other arrangement, including joint service arrangements, with the
42 authority. Any such fares, tolls, rentals, rates, charges or other fees
43 for the transportation of passengers shall be established and changed
44 only if approved by resolution of the authority adopted by not less than
45 a majority vote of the whole number of members of the authority then in
46 office, with the chairman having one additional vote in the event of a
47 tie vote, except as provided in section twelve hundred sixty-five-c of
48 this title, and only after a public hearing, provided however, that
49 fares, tolls, rentals, rates, charges or other fees for the transporta-
50 tion of passengers on any transportation facility which are in effect at
51 the time that the then owner of such transportation facility becomes a
52 subsidiary corporation of the authority or at the time that operation of
53 such transportation facility is commenced by the authority or is
54 commenced under contract, lease or other arrangement, including joint
55 service arrangements, with the authority may be continued in effect
56 without such a hearing. Such fares, tolls, rentals, rates, charges and
A. 9400 3
1 other fees shall be established as may in the judgment of the authority
2 be necessary to maintain the combined operations of the authority and
3 its subsidiary corporations on a self-sustaining basis. The said oper-
4 ations shall be deemed to be on a self-sustaining basis as required by
5 this title, when the authority is able to pay or cause to be paid from
6 revenue and any other funds or property actually available to the
7 authority and its subsidiary corporations (a) as the same shall become
8 due, the principal of and interest on the bonds and notes and other
9 obligations of the authority and of such subsidiary corporations,
10 together with the maintenance of proper reserves therefor, (b) the cost
11 and expense of keeping the properties and assets of the authority and
12 its subsidiary corporations in good condition and repair, and (c) the
13 capital and operating expenses of the authority and its subsidiary
14 corporations. The authority may contract with the holders of bonds and
15 notes with respect to the exercise of the powers authorized by this
16 section. No acts or activities taken or proposed to be taken by the
17 authority or any subsidiary of the authority pursuant to the provisions
18 of this subdivision shall be deemed to be "actions" for the purposes or
19 within the meaning of article eight of the environmental conservation
20 law.
21 § 4. The public authorities law is amended by adding a new section
22 1265-c to read as follows:
23 § 1265-c. Approval of state comptroller. 1. The authority shall
24 submit a written report to the state comptroller prior to the date of
25 any increase in fares for the transportation of passengers takes effect.
26 Such report shall include a justification for such proposed fare
27 increase and the current financial condition of the authority. The state
28 comptroller may require any additional data or information that he or
29 she deems necessary in such report. No proposed fare increase shall take
30 effect until approved by resolution of the authority pursuant to section
31 twelve hundred sixty-six of this title and approved by the state comp-
32 troller.
33 2. This section shall not be deemed to adversely affect or diminish
34 any public hearing requirements.
35 § 5. This act shall take effect on the ninetieth day after it shall
36 have become a law and shall apply to any fares increased on or after
37 such effective date.
