S T A T E   O F   N E W   Y O R K
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                                  7435

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              April 6, 2009
                               ___________

Introduced by M. of A. FIELDS -- read once and referred to the Committee
  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:

  Section 1. Subdivision 1 of section 1205  of  the  public  authorities
law,  as  amended by chapter 717 of the laws of 1967, is amended to read
as follows:
  1. Notwithstanding the provisions of any other law, the terms  of  any
contract  or  franchise, the authority shall have the power at all times
to fix or adjust the rate or rates of fare to be charged for the use  of
any transit facility operated by the authority as may in the judgment of
the  authority  be necessary to maintain the operations of the authority
on a self-sustaining basis,  UPON  APPROVAL  OF  THE  STATE  COMPTROLLER
PURSUANT  TO  SECTION  TWELVE HUNDRED SIXTY-FIVE-B OF THIS ARTICLE.  The
operations of the authority shall be deemed to be on  a  self-sustaining
basis, as required by this title, when the authority is able to pay from
revenue, from any funds granted or transferred to the authority pursuant
to  any  provision  of  law,  including  funds  granted  pursuant to the
provisions of section ninety-eight-b of the general municipal  law,  and
from  any other funds actually available to the authority, including the
proceeds of borrowings for working capital  purposes,  the  expenses  of
operation of the authority as the same shall become due.
  S  2.  Section  1207-i  of  the  public authorities law, as amended by
section 17 of part O of chapter 61 of the laws of 2000,  is  amended  to
read as follows:
  S  1207-i.  Rates of fare while bonds, notes and other obligations are
outstanding. Notwithstanding the provisions of  section  twelve  hundred
five  of  this title or the provisions of any other law to the contrary,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10815-01-9
              

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so long as the authority shall have outstanding and unpaid bonds,  notes
or  other  obligations issued pursuant to section twelve hundred seven-b
of this title, or the metropolitan transportation authority  or  Tribor-
ough  bridge  and  tunnel  authority  shall  have outstanding and unpaid
bonds, notes or other obligations secured by or payable from,  in  whole
or in part, the revenues, assets or other monies of the authority or its
subsidiary corporations, the authority shall have the power at all times
to  fix or adjust the rate or rates of fare to be charged for the use of
any transit facility operated by the authority,  UPON  APPROVAL  OF  THE
STATE  COMPTROLLER  PURSUANT  TO  SECTION TWELVE HUNDRED SIXTY-FIVE-B OF
THIS ARTICLE, as may, in the judgment of  the  board,  be  necessary  to
produce  sufficient  revenues  to pay, as the same shall become due, the
principal of and interest on such bonds, notes and other obligations  of
the  authority,  metropolitan  transportation  authority  and Triborough
bridge and tunnel authority, together with  the  maintenance  of  proper
reserves  therefor,  in  addition to paying as the same shall become due
the expenses of operation of the authority. The authority,  metropolitan
transportation  authority  and  Triborough  bridge and tunnel authority,
shall be authorized to contract with the holders of  such  bonds,  notes
and  other obligations with respect to the exercise of the power author-
ized by this section. In furtherance of the mandate of the  metropolitan
transportation  authority to develop and implement a unified mass trans-
portation policy for the metropolitan commuter  transportation  district
and  the  exercise  of  its  powers, including the power to issue notes,
bonds and other obligations secured in whole or in part by the  revenues
of  the  authority  and  its  subsidiaries,  metropolitan transportation
authority and its subsidiaries, and the  Triborough  bridge  and  tunnel
authority, the authority shall join with the metropolitan transportation
authority  in  connection with the establishment, levy and collection of
fares, tolls, rentals, rates, charges and other fees for the transporta-
tion of passengers on any transit facilities operated by  authority  and
its subsidiaries, including any changes thereto.
  S  3.  Subdivision 3 of section 1266 of the public authorities law, as
amended by chapter 314 of the laws  of  1981,  is  amended  to  read  as
follows:
  3.  [The] EXCEPT AS PROVIDED IN SECTION TWELVE HUNDRED SIXTY-FIVE-B OF
THIS TITLE, THE authority may establish, levy and collect or cause to be
established, levied and collected and, in the case of  a  joint  service
arrangement,  join with others in the establishment, levy and collection
of such fares, tolls, rentals, rates, charges and other fees as  it  may
deem necessary, convenient or desirable for the use and operation of any
transportation  facility  and related services operated by the authority
or by a subsidiary corporation of the authority or under contract, lease
or other arrangement, including joint  service  arrangements,  with  the
authority.  Any such fares, tolls, rentals, rates, charges or other fees
for the transportation of passengers shall be  established  and  changed
only if approved by resolution of the authority adopted by not less than
a  majority vote of the whole number of members of the authority then in
office, with the chairman having one additional vote in the event  of  a
tie  vote,  EXCEPT AS PROVIDED IN SECTION TWELVE HUNDRED SIXTY-FIVE-B OF
THIS TITLE, and only after a  public  hearing,  provided  however,  that
fares,  tolls, rentals, rates, charges or other fees for the transporta-
tion of passengers on any transportation facility which are in effect at
the time that the then owner of such transportation facility  becomes  a
subsidiary corporation of the authority or at the time that operation of
such  transportation  facility  is  commenced  by  the  authority  or is

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commenced under contract, lease or other  arrangement,  including  joint
service  arrangements,  with  the  authority  may be continued in effect
without such a hearing. Such fares, tolls, rentals, rates,  charges  and
other  fees shall be established as may in the judgment of the authority
be necessary to maintain the combined operations of  the  authority  and
its  subsidiary corporations on a self-sustaining basis.  The said oper-
ations shall be deemed to be on a self-sustaining basis as  required  by
this  title,  when the authority is able to pay or cause to be paid from
revenue and any other  funds  or  property  actually  available  to  the
authority  and  its subsidiary corporations (a) as the same shall become
due, the principal of and interest on the  bonds  and  notes  and  other
obligations  of  the  authority  and  of  such  subsidiary corporations,
together with the maintenance of proper reserves therefor, (b) the  cost
and  expense  of  keeping the properties and assets of the authority and
its subsidiary corporations in good condition and repair,  and  (c)  the
capital  and  operating  expenses  of  the  authority and its subsidiary
corporations. The authority may contract with the holders of  bonds  and
notes  with  respect  to  the  exercise of the powers authorized by this
section. No acts or activities taken or proposed  to  be  taken  by  the
authority  or any subsidiary of the authority pursuant to the provisions
of this subdivision shall be deemed to be "actions" for the purposes  or
within  the  meaning  of article eight of the environmental conservation
law.
  S 4. The public authorities law is amended by  adding  a  new  section
1265-b to read as follows:
   S  1265-B.  APPROVAL  OF  STATE  COMPTROLLER.  1. THE AUTHORITY SHALL
SUBMIT A WRITTEN REPORT TO THE STATE COMPTROLLER PRIOR TO  THE  DATE  OF
ANY INCREASE IN FARES FOR THE TRANSPORTATION OF PASSENGERS TAKES EFFECT.
SUCH  REPORT  SHALL  INCLUDE  A  JUSTIFICATION  FOR  SUCH  PROPOSED FARE
INCREASE AND THE CURRENT FINANCIAL CONDITION OF THE AUTHORITY. THE STATE
COMPTROLLER MAY REQUIRE ANY ADDITIONAL DATA OR INFORMATION  THAT  HE  OR
SHE DEEMS NECESSARY IN SUCH REPORT. NO PROPOSED FARE INCREASE SHALL TAKE
EFFECT UNTIL APPROVED BY RESOLUTION OF THE AUTHORITY PURSUANT TO SECTION
TWELVE  HUNDRED  SIXTY-SIX OF THIS TITLE AND APPROVED BY THE STATE COMP-
TROLLER.
  2. THIS SECTION SHALL NOT BE DEEMED TO ADVERSELY  AFFECT  OR  DIMINISH
ANY PUBLIC HEARING REQUIREMENTS.
  S  5.  This  act shall take effect on the ninetieth day after it shall
have become a law and shall apply to any fares  increased  on  or  after
such effective date.