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

                                 4487--A

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 23, 2009
                               ___________

Introduced  by  Sens.  DILAN, PERKINS -- read twice and ordered printed,
  and when printed to be committed to the Committee on Transportation --
  reported favorably from said committee and committed to the  Committee
  on Finance -- committee discharged, bill amended, ordered reprinted as
  amended and recommitted to said committee

AN ACT to amend the vehicle and traffic law, in relation to supplemental
  learners  permits  (Part  A); to amend the vehicle and traffic law, in
  relation to the metropolitan commuter transportation district  supple-
  mental  registration fee (Part B); to amend the tax law and the admin-
  istrative code of the city of New York, in relation to  the  metropol-
  itan  commuter  transportation  mobility  tax;  and  to repeal certain
  provisions of the tax law relating thereto (Part C); to amend the  tax
  law,  in relation to the metropolitan commuter transportation district
  transportation surcharge (Part D); to amend the tax law,  in  relation
  to  a supplemental tax on passenger car rentals (Part E); to amend the
  state finance law, in  relation  to  the  metropolitan  transportation
  authority  financial assistance fund (Part F); and to amend the public
  authorities law, in relation to metropolitan transportation  authority
  reporting  requirements,  in relation to authorizing the merger of the
  positions of executive director and chair of the  metropolitan  trans-
  portation  authority, in relation to the promotion and use of Transit-
  Chek, in relation to project labor agreements, in relation to legisla-
  tive  oversight  of  the  metropolitan  transportation  authority,  in
  relation   to  regulation  of  metropolitan  transportation  authority
  finances, in relation to the independent  audit  of  the  metropolitan
  transportation  authority,  and  the publication of financial informa-
  tion, in relation to audits of the metropolitan transportation author-
  ity, in relation to directing the chairman of the metropolitan  trans-
  portation  authority to submit biennial reports to certain legislative
  committees on the condition of the metropolitan transportation author-
  ity, in relation to the fiduciary responsibility of board members,  in
  relation  to  whistle blowers on contract projects of the metropolitan
  transportation authority, and in relation to the powers and duties  of

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11287-04-9
              

S. 4487--A                          2

  the metropolitan transportation authority capital program review board
  (Part G)

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. This act enacts into law major  components  of  legislation
relating  to the metropolitan transportation authority and the metropol-
itan  commuter  transportation  district.    Each  component  is  wholly
contained  within  a Part identified as Parts A through G. The effective
date for each particular provision contained within  such  Part  is  set
forth  in  the  last  section of such Part. Any provision in any section
contained within a Part, including the effective date of the Part, which
makes reference to a section "of this act", when used in connection with
that particular component, shall be deemed to  mean  and  refer  to  the
corresponding section of the Part in which it is found. Section three of
this act sets forth the general effective date of this act.

                                 PART A

  Section 1. Subdivision 2 of section 503 of the vehicle and traffic law
is amended by adding a new paragraph (b-1) to read as follows:
  (B-1)  SUPPLEMENTAL  LEARNER  PERMIT/LICENSE  FEE  IN THE METROPOLITAN
COMMUTER TRANSPORTATION  DISTRICT.  (I)  IN  THE  METROPOLITAN  COMMUTER
TRANSPORTATION DISTRICT, ESTABLISHED BY SECTION ONE THOUSAND TWO HUNDRED
SIXTY-TWO  OF  THE PUBLIC AUTHORITIES LAW, UPON PASSAGE OF THE KNOWLEDGE
TEST REQUIRED TO OBTAIN A LEARNER'S PERMIT, THE APPLICANT FOR A  COMMER-
CIAL DRIVER'S LICENSE SHALL BE REQUIRED TO PAY A SUPPLEMENTAL FEE OF TWO
DOLLARS FOR EACH SIX MONTHS OR PORTION THEREOF OF THE PERIOD OF VALIDITY
OF  A  LEARNER'S PERMIT OR LICENSE WHICH IS OR MAY BE ISSUED PURSUANT TO
THE PROVISIONS OF SUBPARAGRAPH (I) OF PARAGRAPH (B) OF THIS SUBDIVISION.
  (II) IN THE METROPOLITAN COMMUTER TRANSPORTATION DISTRICT, ESTABLISHED
BY SECTION ONE THOUSAND TWO HUNDRED SIXTY-TWO OF THE PUBLIC  AUTHORITIES
LAW,  UPON  PASSAGE OF THE KNOWLEDGE TEST REQUIRED TO OBTAIN A LEARNER'S
PERMIT, THE APPLICANT FOR A CLASS C LICENSE WHICH DOES NOT HAVE AN H,  P
OR X ENDORSEMENT OR A CLASS E LICENSE SHALL BE REQUIRED TO PAY A SUPPLE-
MENTAL  FEE  OF  ONE DOLLAR AND TWENTY-FIVE CENTS FOR EACH SIX MONTHS OR
PORTION THEREOF OF THE PERIOD OF  VALIDITY  OF  A  LEARNER'S  PERMIT  OR
LICENSE WHICH IS OR MAY BE ISSUED PURSUANT TO THE PROVISIONS OF SUBPARA-
GRAPH  (II) OF PARAGRAPH (B) OF THIS SUBDIVISION, AND AN APPLICANT FOR A
CLASS D, DJ, M OR MJ LICENSE SHALL BE REQUIRED TO PAY A SUPPLEMENTAL FEE
OF SEVENTY-FIVE CENTS FOR EACH SIX MONTHS  OR  PORTION  THEREOF  OF  THE
PERIOD  OF  VALIDITY OF A LEARNER'S PERMIT OR LICENSE WHICH IS OR MAY BE
ISSUED PURSUANT TO THE PROVISIONS OF SUBPARAGRAPH (II) OF PARAGRAPH  (B)
OF THIS SUBDIVISION.
  (III)  THE  FEES  COLLECTED  PURSUANT TO SUBPARAGRAPHS (I) AND (II) OF
THIS PARAGRAPH SHALL BE DEPOSITED TO  THE  CREDIT  OF  THE  METROPOLITAN
TRANSPORTATION  AUTHORITY FINANCIAL ASSISTANCE FUND ESTABLISHED PURSUANT
TO SECTION NINETY-TWO-FF OF THE STATE FINANCE LAW.
  S 2. Subdivision 2 of section 503 of the vehicle and  traffic  law  is
amended by adding a new paragraph (c-3) to read as follows:
  (C-3)  SUPPLEMENTAL RENEWAL FEE IN THE METROPOLITAN COMMUTER TRANSPOR-
TATION DISTRICT. MOTORISTS RESIDING IN THE METROPOLITAN COMMUTER  TRANS-
PORTATION  DISTRICT,  ESTABLISHED  BY  SECTION  ONE THOUSAND TWO HUNDRED
SIXTY-TWO OF THE  PUBLIC  AUTHORITIES  LAW,  IN  ADDITION  TO  THE  FEES

S. 4487--A                          3

REQUIRED  TO  BE  PAID  PURSUANT  TO  PARAGRAPH  (C) OF THIS SUBDIVISION
SUPPLEMENTAL FEES FOR RENEWAL OF A LICENSE ISSUED  BY  THE  COMMISSIONER
SHALL BE AS FOLLOWS:
  (I) FOR A COMMERCIAL DRIVER'S LICENSE, TWO DOLLARS FOR EACH SIX MONTHS
OR PORTION THEREOF.
  (II)  FOR  A CLASS C LICENSE WHICH DOES NOT HAVE AN H, P OR X ENDORSE-
MENT OR A CLASS E LICENSE, ONE DOLLAR AND TWENTY-FIVE CENTS FOR EACH SIX
MONTHS OR PORTION THEREOF.
  (III) FOR A CLASS D, DJ, M OR MJ LICENSE, SEVENTY-FIVE CENTS FOR  EACH
SIX MONTHS OR PORTION THEREOF.
  (IV)  THE FEES COLLECTED PURSUANT TO SUBPARAGRAPHS (I), (II) AND (III)
OF THIS PARAGRAPH SHALL BE DEPOSITED TO THE CREDIT OF  THE  METROPOLITAN
TRANSPORTATION  AUTHORITY FINANCIAL ASSISTANCE FUND ESTABLISHED PURSUANT
TO SECTION NINETY-TWO-FF OF THE STATE FINANCE LAW.
  S 3. This act shall take effect September 1, 2009 and shall  apply  to
licenses issued and renewed on and after such date.

                                 PART B

  Section  1.    The  vehicle and traffic law is amended by adding a new
article 17-C to read as follows:
                               ARTICLE 17-C
              METROPOLITAN COMMUTER TRANSPORTATION DISTRICT
                      SUPPLEMENTAL REGISTRATION FEE
SECTION 499.   DEFINITIONS.
        499-A. METROPOLITAN  COMMUTER  TRANSPORTATION  DISTRICT  SUPPLE-
                 MENTAL REGISTRATION FEE.
        499-B. COLLECTION OF SUPPLEMENTAL FEE.
        499-C. CALCULATION OF SUPPLEMENTAL REGISTRATION FEE.
        499-D. DEPOSIT AND DISPOSITION OF REVENUE FROM SUPPLEMENTAL FEE.
  S  499.  DEFINITIONS.  FOR  THE PURPOSES OF THIS ARTICLE THE FOLLOWING
WORDS AND PHRASES SHALL HAVE THE  MEANINGS  ASCRIBED  TO  THEM  IN  THIS
SECTION EXCEPT WHERE ANOTHER DEFINITION IS SPECIFICALLY PROVIDED:
  1.  METROPOLITAN  COMMUTER  TRANSPORTATION  DISTRICT.  THE AREA OF THE
STATE INCLUDED IN THE DISTRICT CREATED AND GOVERNED  BY  SECTION  TWELVE
HUNDRED SIXTY-TWO OF THE PUBLIC AUTHORITIES LAW.
  2.  OWNER. THE TERM OWNER SHALL HAVE THE SAME MEANING AS THAT PROVIDED
FOR IN SECTION ONE HUNDRED TWENTY-EIGHT OF THIS CHAPTER.
  S 499-A. METROPOLITAN COMMUTER  TRANSPORTATION  DISTRICT  SUPPLEMENTAL
REGISTRATION  FEE.    REGISTRANTS  RESIDING IN THE METROPOLITAN COMMUTER
TRANSPORTATION DISTRICT SHALL UPON THE REGISTRATION, REREGISTRATION,  OR
RENEWAL OF A MOTOR VEHICLE BE CHARGED A SUPPLEMENTAL REGISTRATION FEE TO
BE  PAID  TO THE COMMISSIONER OR HIS OR HER AGENT IN ACCORDANCE WITH THE
PROVISIONS OF THIS ARTICLE.
  S 499-B. COLLECTION OF SUPPLEMENTAL FEE. ALL OWNERS OF MOTOR  VEHICLES
WHO  RESIDE  IN  THE METROPOLITAN COMMUTER TRANSPORTATION DISTRICT SHALL
PAY TO THE COMMISSIONER OR HIS OR HER AGENT THE  SUPPLEMENTAL  REGISTRA-
TION FEE PROVIDED FOR IN THIS ARTICLE UPON REGISTRATION, REREGISTRATION,
OR  RENEWAL  OF  MOTOR VEHICLES SUBJECT TO REGISTRATION FEES PURSUANT TO
THE FOLLOWING SECTIONS OF THIS CHAPTER: PARAGRAPH A OF  SUBDIVISION  SIX
OF  SECTION  FOUR  HUNDRED  ONE;  SCHEDULES A, B, C, E, F, G, I AND K OF
SUBDIVISION SEVEN OF SECTION FOUR HUNDRED ONE; PARAGRAPH A  OF  SUBDIVI-
SION  EIGHT OF SECTION FOUR HUNDRED ONE; PARAGRAPH A OF SUBDIVISION FIVE
OF SECTION FOUR HUNDRED TEN; AND SECTION FOUR HUNDRED ELEVEN-B.
  S 499-C. CALCULATION OF SUPPLEMENTAL  REGISTRATION  FEE.  THE  SUPPLE-
MENTAL REGISTRATION FEE TO BE CHARGED TO OWNERS OF MOTOR VEHICLES PURSU-

S. 4487--A                          4

ANT  TO  SECTION  FOUR  HUNDRED  NINETY-NINE-B OF THIS ARTICLE, SHALL BE
CALCULATED AT A RATE OF TWENTY-FIVE DOLLARS PER ANNUM FOR EACH YEAR THAT
SUCH REGISTRATION IS VALID. WHERE A REGISTRATION OR RENEWAL, SUBJECT  TO
THE PROVISIONS OF THIS ARTICLE, IS FOR A PERIOD OF MORE OR LESS THAN ONE
CALENDAR  YEAR,  THE ANNUAL SUPPLEMENTAL REGISTRATION FEE AS PROVIDED IN
THIS SECTION SHALL BE INCREASED OR REDUCED PROPORTIONATELY  ON  A  DAILY
COMPUTATION  BASIS,  EXCEPT THAT WHERE THE ANNUAL SUPPLEMENTAL REGISTRA-
TION FEE FOR SUCH VEHICLE WOULD AMOUNT TO TEN DOLLARS OR LESS,  THE  FEE
SHALL NOT BE SO PRORATED.
  S 499-D. DEPOSIT AND DISPOSITION OF REVENUE FROM SUPPLEMENTAL FEE. ALL
FUNDS  DERIVED  FROM  THE COLLECTION OF THE SUPPLEMENTAL FEE ESTABLISHED
PURSUANT TO THIS ARTICLE ARE TO BE DEPOSITED TO THE CREDIT OF THE METRO-
POLITAN TRANSPORTATION AUTHORITY FINANCIAL ASSISTANCE  FUND  ESTABLISHED
PURSUANT TO SECTION NINETY-TWO-FF OF THE STATE FINANCE LAW.
  S  2.  This act shall take effect September 1, 2009 and shall apply to
registrations issued and renewed on and after such date.

                                 PART C

  Section 1.  The tax law is amended by adding a new article 23 to  read
as follows:
                               ARTICLE 23
                  METROPOLITAN COMMUTER TRANSPORTATION
                              MOBILITY TAX
SECTION 800. DEFINITIONS.
        801. IMPOSITION OF TAX AND RATE.
        802. PASS THROUGH OF TAX PROHIBITED.
        803. EXEMPTION OVERRIDE.
        804. PAYMENT OF TAX.
        805. DEPOSIT AND DISPOSITION OF REVENUE.
        806. PROCEDURAL PROVISIONS.
  S 800. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE:
  (A)  METROPOLITAN  COMMUTER  TRANSPORTATION DISTRICT. THE METROPOLITAN
COMMUTER TRANSPORTATION DISTRICT ("MCTD") MEANS THE AREA  OF  THE  STATE
INCLUDED  IN THE DISTRICT CREATED AND GOVERNED BY SECTION TWELVE HUNDRED
SIXTY-TWO OF THE PUBLIC AUTHORITIES LAW.
  (B) EMPLOYER. EMPLOYER MEANS  AN  EMPLOYER  REQUIRED  BY  SECTION  SIX
HUNDRED  SEVENTY-ONE  OF  THIS  CHAPTER  TO DEDUCT AND WITHHOLD TAX FROM
WAGES, THAT HAS A PAYROLL EXPENSE IN EXCESS OF TWO THOUSAND FIVE HUNDRED
DOLLARS IN ANY CALENDAR QUARTER; OTHER THAN
  (1) ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES;
  (2) THE UNITED NATIONS; OR
  (3) AN INTERSTATE AGENCY OR PUBLIC CORPORATION CREATED PURSUANT TO  AN
AGREEMENT OR COMPACT WITH ANOTHER STATE OR THE DOMINION OF CANADA.
  (C)  PAYROLL  EXPENSE. PAYROLL EXPENSE MEANS WAGES AND COMPENSATION AS
DEFINED IN SECTIONS 3121 AND 3231 OF THE INTERNAL REVENUE CODE  (WITHOUT
REGARD  TO SECTION 3121(A)(1) AND SECTION 3231(E)(2)(A)(I)), PAID TO ALL
COVERED EMPLOYEES.
  (D) COVERED EMPLOYEE.  COVERED  EMPLOYEE  MEANS  AN  EMPLOYEE  WHO  IS
EMPLOYED WITHIN THE MCTD.
  (E)  NET EARNINGS FROM SELF-EMPLOYMENT. NET EARNINGS FROM SELF-EMPLOY-
MENT HAS THE SAME MEANING AS IN SECTION 1402  OF  THE  INTERNAL  REVENUE
CODE.
  S 801. IMPOSITION OF TAX AND RATE. (A) FOR THE SOLE PURPOSE OF PROVID-
ING  AN  ADDITIONAL STABLE AND RELIABLE DEDICATED FUNDING SOURCE FOR THE
METROPOLITAN TRANSPORTATION AUTHORITY AND ITS  SUBSIDIARIES  AND  AFFIL-

S. 4487--A                          5

IATES TO PRESERVE, OPERATE AND IMPROVE ESSENTIAL TRANSIT AND TRANSPORTA-
TION  SERVICES  IN  THE METROPOLITAN COMMUTER TRANSPORTATION DISTRICT, A
TAX IS HEREBY IMPOSED ON (1) THE PAYROLL EXPENSE OF EVERY  EMPLOYER  WHO
ENGAGES  IN BUSINESS WITHIN THE MCTD AND (2) THE NET EARNINGS FROM SELF-
EMPLOYMENT OF INDIVIDUALS THAT ARE ATTRIBUTABLE  TO  THE  MCTD  IF  SUCH
EARNINGS  ATTRIBUTABLE  TO  THE MCTD EXCEED TEN THOUSAND DOLLARS FOR THE
TAX YEAR. FOR THOSE COUNTIES LOCATED WITHIN A CITY WITH A POPULATION  OF
ONE  MILLION  OR MORE, AND THE COUNTIES OF NASSAU, SUFFOLK, WESTCHESTER,
AND ROCKLAND, THE TAX SHALL  BE  IMPOSED  AT  THE  RATE  OF  THIRTY-FOUR
HUNDREDTHS  (.34)  PERCENT.  FOR  THE  COUNTIES OF DUTCHESS, ORANGE, AND
PUTNAM, THE TAX SHALL BE IMPOSED AT THE RATE OF  TWENTY-FIVE  HUNDREDTHS
(.25) PERCENT.
  (B)(1)  AN  INDIVIDUAL  HAVING  NET EARNINGS FROM SELF-EMPLOYMENT FROM
ACTIVITY BOTH WITHIN AND WITHOUT THE METROPOLITAN  COMMUTER  TRANSPORTA-
TION DISTRICT IS REQUIRED TO ALLOCATE AND APPORTION SUCH NET EARNINGS TO
THE  MCTD  IN  THE  MANNER  REQUIRED FOR ALLOCATION AND APPORTIONMENT OF
INCOME UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER.
  (2) IN THE CASE OF INDIVIDUALS WITH EARNINGS FROM SELF-EMPLOYMENT, THE
NET  EARNINGS  FROM  SELF  EMPLOYMENT  THRESHOLD  IN  PARAGRAPH  TWO  OF
SUBSECTION  (A)  OF THIS SECTION WILL BE COMPUTED ON AN INDIVIDUAL BASIS
REGARDLESS OF WHETHER THAT INDIVIDUAL FILED A JOINT PERSONAL INCOME  TAX
RETURN.
  (C) THE DETERMINATION OF WHETHER A COVERED EMPLOYEE IS EMPLOYED WITHIN
THE MCTD WILL BE MADE BY UTILIZING THE RULES APPLICABLE TO THE JURISDIC-
TION  OF  EMPLOYMENT FOR PURPOSES OF THE STATEWIDE WAGE REPORTING SYSTEM
UNDER SECTION ONE HUNDRED SEVENTY-ONE-A OF THIS CHAPTER AND SUBSTITUTING
THE MCTD FOR THE STATE IN THAT APPLICATION.
  S 802. PASS THROUGH OF TAX PROHIBITED. AN EMPLOYER CANNOT DEDUCT  FROM
THE  WAGES OR COMPENSATION OF AN EMPLOYEE ANY AMOUNT THAT REPRESENTS ALL
OR ANY PORTION OF THE TAX IMPOSED ON THE EMPLOYER UNDER THIS ARTICLE.
  S 803. EXEMPTION OVERRIDE. ANY EXEMPTION FROM  TAX  SPECIFIED  IN  ANY
OTHER NEW YORK STATE LAW WILL NOT APPLY TO THE TAX IMPOSED BY THIS ARTI-
CLE.
  S  804.  PAYMENT  OF  TAX. (A) EMPLOYERS WITH PAYROLL EXPENSE. THE TAX
IMPOSED ON THE PAYROLL EXPENSE OF EMPLOYERS UNDER SECTION EIGHT  HUNDRED
ONE  OF THIS ARTICLE FOR EACH CALENDAR QUARTER MUST BE PAID QUARTERLY AT
THE SAME TIME AS THE STATEWIDE WAGE REPORTING SYSTEM REPORT IS  REQUIRED
UNDER  SECTION  ONE  HUNDRED  SEVENTY-ONE-A  OF  THIS CHAPTER; PROVIDED,
HOWEVER, THAT PAYMENT FOR THE LAST CALENDAR  QUARTER  MUST  BE  MADE  BY
JANUARY THIRTY-FIRST OF THE SUCCEEDING YEAR.
  (B)  INDIVIDUALS  WITH  NET EARNINGS FROM SELF-EMPLOYMENT. INDIVIDUALS
WITH EARNINGS FROM SELF-EMPLOYMENT MUST MAKE ESTIMATED TAX  PAYMENTS  OF
THE  TAX  IMPOSED BY THIS ARTICLE FOR THE TAXABLE YEAR ON THE SAME DATES
SPECIFIED IN SUBSECTION (A) OF THIS SECTION FOR THE  QUARTERLY  PAYMENTS
OF  THE  TAX  IMPOSED  ON THE PAYROLL EXPENSE OF EMPLOYERS. IN ADDITION,
THESE SELF-EMPLOYED INDIVIDUALS MUST FILE A RETURN FOR THE TAXABLE  YEAR
BY  THE  THIRTIETH  DAY  OF  THE FOURTH MONTH FOLLOWING THE CLOSE OF THE
TAXABLE YEAR.  PARAGRAPH ONE OF SUBSECTION (D) OF  SECTION  SIX  HUNDRED
EIGHTY-FIVE  OF  THIS  CHAPTER  SHALL  NOT  APPLY  TO  THE ESTIMATED TAX
PAYMENTS REQUIRED BY THIS SUBSECTION.
  S 805. DEPOSIT AND DISPOSITION OF REVENUE.   ALL TAXES,  INTEREST  AND
PENALTIES  COLLECTED  OR RECEIVED BY THE COMMISSIONER UNDER THIS ARTICLE
SHALL BE DEPOSITED AND DISPOSED OF PURSUANT TO THE PROVISIONS OF SECTION
ONE HUNDRED SEVENTY-ONE-A OF THIS CHAPTER, EXCEPT THAT  AFTER  RESERVING
AMOUNTS  IN  ACCORDANCE  WITH  SUCH SECTION ONE HUNDRED SEVENTY-ONE-A OF
THIS CHAPTER, THE REMAINDER SHALL BE PAID  BY  THE  COMPTROLLER  TO  THE

S. 4487--A                          6

CREDIT OF THE METROPOLITAN TRANSPORTATION AUTHORITY FINANCIAL ASSISTANCE
FUND ESTABLISHED BY SECTION NINETY-TWO-FF OF THE STATE FINANCE LAW.
  S  806. PROCEDURAL PROVISIONS. ALL PROVISIONS OF ARTICLE TWENTY-TWO OF
THIS CHAPTER WILL APPLY TO THE PROVISIONS OF THIS ARTICLE  IN  THE  SAME
MANNER  AND WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF ARTICLE
TWENTY-TWO OF THIS CHAPTER HAD BEEN INCORPORATED IN FULL INTO THIS ARTI-
CLE AND HAD BEEN SPECIFICALLY ADJUSTED FOR AND EXPRESSLY REFERRED TO THE
TAX IMPOSED BY THIS ARTICLE, EXCEPT TO THE EXTENT THAT ANY PROVISION  IS
EITHER  INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS NOT RELEVANT
TO THIS ARTICLE.   NOTWITHSTANDING THE  PRECEDING  SENTENCE,  NO  CREDIT
AGAINST  TAX IN ARTICLE TWENTY-TWO OF THIS CHAPTER CAN BE USED TO OFFSET
THE TAX DUE UNDER THIS ARTICLE. NOTWITHSTANDING ANY  OTHER  LAW  TO  THE
CONTRARY,  THE  COMMISSIONER  MAY  REQUIRE  THAT ALL FILINGS OF FORMS OR
RETURNS UNDER THIS ARTICLE MUST BE FILED ELECTRONICALLY AND ALL PAYMENTS
OF TAX MUST BE PAID ELECTRONICALLY.
  S 2. Clause (i) of subparagraph 5 of paragraph (a) of subdivision 9 of
section 208 of the tax law, as amended by chapter  61  of  the  laws  of
1989, is amended to read as follows:
  (i)  any refund or credit of a tax imposed under this article, ARTICLE
TWENTY-THREE, or article thirty-two of this chapter, for  which  tax  no
exclusion  or deduction was allowed in determining the taxpayer's entire
net income under this article, ARTICLE TWENTY-THREE, or  [such]  article
thirty-two OF THIS CHAPTER for any prior year,
  S  3.  Paragraph (b) of subdivision 9 of section 208 of the tax law is
amended by adding a new subparagraph 20 to read as follows:
  (20) THE AMOUNT OF ANY FEDERAL DEDUCTION FOR TAXES IMPOSED UNDER ARTI-
CLE TWENTY-THREE OF THIS CHAPTER.
  S 4. Paragraph 2 of subdivision (a) of section 292 of the tax law,  as
added  by  chapter  1005  of  the  laws  of  1970, is amended to read as
follows:
  (2) There shall be subtracted from federal unrelated business  taxable
income  the  amount  of  any  refund  or credit for overpayment of a tax
imposed under this article OR ARTICLE TWENTY-THREE OF THIS CHAPTER.
  S 5. Subdivision (a) of section 292 of  the  tax  law  is  amended  by
adding a new paragraph 8 to read as follows:
  (8)  THERE  MUST BE ADDED TO FEDERAL UNRELATED BUSINESS TAXABLE INCOME
THE AMOUNT OF ANY FEDERAL DEDUCTION  FOR  TAXES  IMPOSED  UNDER  ARTICLE
TWENTY-THREE OF THIS CHAPTER.
  S 6. Subsection (b) of section 612 of the tax law is amended by adding
a new paragraph 39 to read as follows:
  (39) THE AMOUNT OF ANY FEDERAL DEDUCTION FOR TAXES IMPOSED UNDER ARTI-
CLE TWENTY-THREE OF THIS CHAPTER.
  S  7.  Paragraph 7 of subsection (c) of section 612 of the tax law, as
added by chapter 563 of the laws of 1960, is amended to read as follows:
  (7) The amount of any refund or credit for overpayment of income taxes
imposed by this state, or any other taxing jurisdiction, AND  ANY  TAXES
IMPOSED  BY ARTICLE TWENTY-THREE OF THIS CHAPTER, to the extent properly
included in gross income for federal income tax purposes.
  S 8. Subsection (c) of section 615 of the tax law is amended by adding
a new paragraph 8 to read as follows:
  (8) THE AMOUNT OF ANY FEDERAL DEDUCTION FOR TAXES IMPOSED UNDER  ARTI-
CLE TWENTY-THREE OF THIS CHAPTER.
  S 9. Subsection 4 of section 618 of the tax law, as amended by section
4  of part HH-1 of chapter 57 of the laws of 2008, is amended to read as
follows:

S. 4487--A                          7

  (4) There shall be added or  subtracted  (as  the  case  may  be)  the
modifications described in paragraphs (6), (10), (17), (18), (19), (20),
(21),  (22),  (23), (24), (25), (26), (27), (29) [and], (38) AND (39) of
subsection (b) and in paragraphs (11), (13),  (15),  (19),  (20),  (21),
(22),  (23),  (24), (25), (26) and (28) of subsection (c) of section six
hundred twelve of this part.
  S 10. Subsection (a) of section 686 of the  tax  law,  as  amended  by
section  10  of  part R of chapter 60 of the laws of 2004, is amended to
read as follows:
  (a) General.-- The commissioner of taxation and  finance,  within  the
applicable  period  of  limitations, may credit an overpayment of income
tax and interest on such overpayment against any liability in respect of
any tax imposed by this chapter, INCLUDING TAXES IMPOSED  UNDER  ARTICLE
TWENTY-THREE  OF  THIS  CHAPTER, on the person who made the overpayment,
against any liability in respect of any  tax  imposed  pursuant  to  the
authority of this chapter or any other law on such person if such tax is
administered  by  the  commissioner  of  taxation  and  finance  and, as
provided  in   sections   one   hundred   seventy-one-c,   one   hundred
seventy-one-d,  one hundred seventy-one-e, one hundred seventy-one-f and
one hundred seventy-one-l of this chapter, against past-due  support,  a
past-due  legally enforceable debt, a city of New York tax warrant judg-
ment debt, and against the amount of a default in repayment of a guaran-
teed student, state university or  city  university  loan.  The  balance
shall  be  refunded  by  the  comptroller out of the proceeds of the tax
retained by him for such general purpose. Any refund under this  section
shall be made only upon the filing of a return and upon a certificate of
the  commissioner [of taxation and finance] approved by the comptroller.
The comptroller, as a condition precedent to  the  approval  of  such  a
certificate,  may  examine  into the facts as disclosed by the return of
the person who made the  overpayment  and  other  information  and  data
available in the files of the commissioner [of taxation and finance].
  S  11.  Subsection  (b)  of  section 1453 of the tax law is amended by
adding a new paragraph 15 to read as follows:
  (15) THE AMOUNT OF ANY FEDERAL DEDUCTION FOR TAXES IMPOSED UNDER ARTI-
CLE TWENTY-THREE OF THIS CHAPTER.
  S 12. Subsection (d) of section 1453 of the tax  law,  as  amended  by
chapter 267 of the laws of 1987, is REPEALED.
  S  13.  Subsection  (d)  of section 1453 of the tax law, as amended by
chapter 817 of the laws of 1987, is amended to read as follows:
  (d) Entire net income shall not include any refund or credit of a  tax
for  which  no  exclusion  or  deduction  was allowed in determining the
taxpayer's entire net income under this  article  or  articles  [nine-a,
nine-b  or  nine-c] NINE-A OR TWENTY-THREE of this chapter for any prior
year.
  S 14. Subparagraph (C) of paragraph 1 of subdivision  (b)  of  section
1503  of  the  tax law, as amended by chapter 55 of the laws of 1982, is
amended to read as follows:
  (C) any refund or credit of  a  tax  imposed  under  this  article  or
section  one hundred eighty-seven, OR ARTICLE TWENTY-THREE of this chap-
ter heretofore in effect to the extent properly included as  income  for
federal  income  tax  purposes,  for which no exclusion or deduction was
allowed in determining the taxpayer's entire net income under this arti-
cle for any prior year;
  S 15. Paragraph 2 of subdivision (b) of section 1503 of the tax law is
amended by adding a new subparagraph (V) to read as follows:

S. 4487--A                          8

  (V) THE AMOUNT OF ANY FEDERAL DEDUCTION FOR TAXES IMPOSED UNDER  ARTI-
CLE TWENTY-THREE OF THIS CHAPTER.
  S  16.  Subparagraph  5  of  paragraph (a) of subdivision 8 of section
11-602 of the administrative code of the city of New York, as amended by
chapter 241 of the laws of 1989, is amended to read as follows:
  (5) any refund or credit of a  tax  imposed  under  this  chapter,  or
imposed  by article nine, nine-A, TWENTY-THREE, or thirty-two of the tax
law, for which tax no exclusion or deduction was allowed in  determining
the  taxpayer's  entire  net  income under this subchapter or subchapter
three of this chapter for any prior year;
  S 17. Paragraph (b) of subdivision 8 of section 11-602 of the adminis-
trative code of the city of New York is amended by adding a new subpara-
graph 19 to read as follows:
  (19) THE AMOUNT OF ANY FEDERAL DEDUCTION FOR TAXES IMPOSED UNDER ARTI-
CLE TWENTY-THREE OF THE TAX LAW.
  S 18. Subdivision (b) of section 11-641 of the administrative code  of
the  city of New York is amended by adding a new paragraph 16 to read as
follows:
  (16) THE AMOUNT OF ANY FEDERAL DEDUCTION FOR TAXES IMPOSED UNDER ARTI-
CLE TWENTY-THREE OF THE TAX LAW.
  S 19. Subdivision (d) of section 11-641 of the administrative code  of
the  city of New York, as amended by chapter 525 of the laws of 1988, is
amended to read as follows:
  (d) Entire net income shall not include any refund or credit of a  tax
for  which  no  exclusion  or  deduction  was allowed in determining the
taxpayer's entire net income under this subchapter or subchapter two  of
this  chapter, OR IMPOSED BY ARTICLE TWENTY-THREE OF THE TAX LAW for any
prior year.
  S 20. Subdivision (b) of section 11-1712 of the administrative code of
the city of New York is amended by adding a new paragraph 35 to read  as
follows:
  (35) THE AMOUNT OF ANY FEDERAL DEDUCTION FOR TAXES IMPOSED UNDER ARTI-
CLE TWENTY-THREE OF THE TAX LAW.
  S  21. Paragraph 7 of subdivision (c) of section 11-1712 of the admin-
istrative code of the city of New York, such section  as  renumbered  by
chapter 639 of the laws of 1986, is amended to read as follows:
  (7) The amount of any refund or credit for overpayment of income taxes
imposed  by  this city, [or] any other taxing jurisdiction, OR ANY TAXES
IMPOSED BY ARTICLE TWENTY-THREE OF THE TAX LAW to  the  extent  properly
included in gross income for federal income tax purposes.
  S  22.  Subdivision 4 of section 11-1718 of the administrative code of
the city of New York, as amended by section 11 of part HH-1  of  chapter
57 of the laws of 2008, is amended to read as follows:
  (4)  There  shall  be  added  or  subtracted  (as the case may be) the
modifications described in paragraphs  six,  ten,  seventeen,  eighteen,
nineteen,  twenty,  twenty-one,  twenty-two,  twenty-three, twenty-four,
twenty-five, twenty-six, twenty-seven,  twenty-nine  [and],  thirty-four
AND  THIRTY-FIVE  of subdivision (b) and in paragraphs eleven, thirteen,
fifteen, nineteen, twenty, twenty-one, twenty-two,  twenty-three,  twen-
ty-four,  twenty-five, twenty-six and twenty-eight of subdivision (c) of
section 11-1712 of this subchapter.
  S 23. Severability.  If any provision of this act or  the  application
thereof  to any person or circumstances is held invalid, such invalidity
shall not affect other provisions or applications of this act which  can
be  given  effect  without  the invalid provision or application, and to
this end the provisions of this act are declared to be severable.

S. 4487--A                          9

  S 24. This act shall take effect immediately; provided however that:
  (a)  the  metropolitan  commuter  transportation district mobility tax
enacted pursuant to section one of this  act  that  is  (i)  imposed  on
employers,  shall apply on or after January 1, 2009, and (ii) imposed on
individuals with net earnings from self-employment shall apply to  taxa-
ble years beginning on or after January 1, 2009;
  (b)  the  initial  payment  of  such  mobility tax enacted pursuant to
section one of this act shall be made with the first  quarterly  payment
due  at  least  60 days after the date this bill becomes a law, and such
payment shall include the taxes owed for the period beginning on January
1, 2009;
  (c) no addition to tax under subsection (c) of section 685 of the  tax
law  shall  be  imposed  with  respect  to estimated tax payments of the
metropolitan commuter transportation district mobility tax  required  to
be  filed  prior  to the due date of the initial payment of the mobility
tax as specified in  subdivision  (b)  of  this  section,  provided  the
taxpayer makes such estimated tax payments by such due date;
  (d)  the amendments to subsection 4 of section 618 of the tax law made
by section nine of this act shall survive the expiration  and  reversion
of  such  subsection as provided in section 8 of chapter 782 of the laws
of 1988, as amended; and
  (e) the amendments to subdivision 4 of section 11-1718 of the adminis-
trative code of the city of New York made by section twenty-two of  this
act  shall  survive  the expiration and reversion of such subdivision as
provided in section 8 of chapter 782 of the laws of 1988, as amended.

                                 PART D

  Section 1. The tax law is amended by adding a new article 29-A to read
as follows:

                              ARTICLE 29-A
              METROPOLITAN COMMUTER TRANSPORTATION DISTRICT
                        TRANSPORTATION SURCHARGE

SECTION 1280. DEFINITIONS.
        1281. IMPOSITION OF SURCHARGE AND RATE.
        1282. PAYMENT OF SURCHARGE.
        1283. DEPOSIT AND DISPOSITION OF REVENUE.

  S 1280. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE:
  (A) METROPOLITAN COMMUTER TRANSPORTATION DISTRICT.  THE  AREA  OF  THE
STATE  INCLUDED  IN  THE DISTRICT CREATED AND GOVERNED BY SECTION TWELVE
HUNDRED SIXTY-TWO OF THE PUBLIC AUTHORITIES LAW.
  (B) TAXICAB. EVERY MOTOR VEHICLE, OTHER THAN A BUS, USED IN THE  BUSI-
NESS  OF  TRANSPORTING PASSENGERS FOR COMPENSATION, AND OPERATED IN SUCH
BUSINESS UNDER A LICENSE OR PERMIT ISSUED BY A LOCAL AUTHORITY.   HOWEV-
ER,  IT SHALL NOT INCLUDE LIVERY AS DEFINED IN SECTION ONE HUNDRED TWEN-
TY-ONE-E OF THE VEHICLE AND TRAFFIC LAW AND SHALL NOT  INCLUDE  VEHICLES
WHICH ARE RENTED OR LEASED WITHOUT A DRIVER.
  (C)  MEDALLION  TAXICAB. A MOTOR VEHICLE FOR TRANSPORTATION OF PASSEN-
GERS WHICH IS DULY LICENSED AS A  TAXICAB  BY  THE  TAXI  AND  LIMOUSINE
COMMISSION  OF  THE  CITY OF NEW YORK AND PERMITTED TO ACCEPT HAILS FROM
PASSENGERS IN THE STREET.
  (D) TRANSPORTATION SERVICE. THE SERVICE OF TRANSPORTING,  CARRYING  OR
CONVEYING A PERSON OR PERSONS BY TAXICAB OR MEDALLION TAXICAB.

S. 4487--A                         10

  S  1281.  IMPOSITION  OF SURCHARGE AND RATE. (A) A SURCHARGE IS HEREBY
IMPOSED AT A RATE OF ONE  DOLLAR  PER  USE  OF  TRANSPORTATION  SERVICES
PROVIDED WITHIN THE METROPOLITAN COMMUTER TRANSPORTATION DISTRICT.
  (B)  (1)  IF  A  TRANSPORTATION SERVICE SUBJECT TO THE SURCHARGE UNDER
THIS SECTION IS PROVIDED AND THE OWNER OR LESSOR OF THE  VEHICLE  LEASES
OR RENTS THE VEHICLE TO AN UNRELATED PERSON WHO PROVIDES THE TRANSPORTA-
TION  SERVICE,  THEN  (I)  THE  OWNER OR LESSOR IS DEEMED TO PROVIDE THE
TRANSPORTATION SERVICE DURING THE DAY OR OTHER PERIOD THAT THE UNRELATED
PERSON USES THE VEHICLE TO PROVIDE THE SERVICE, (II) THE OWNER OR LESSOR
IS DEEMED TO BE THE PROVIDER OF THE SERVICE PROVIDED  BY  THE  UNRELATED
PERSON,  (III)  THE  SURCHARGE  IMPOSED  BY THIS SECTION IS DEEMED TO BE
IMPOSED ON THE UNRELATED PERSON,  AND  (IV)  THE  OWNER  OR  LESSOR,  AS
PROVIDER, MUST COLLECT THE SURCHARGE FROM THE UNRELATED PERSON.
  (2) NOTWITHSTANDING ANY LAW TO THE CONTRARY:
  (I)  ANY  MUNICIPALITY OR PUBLIC CORPORATION THAT ESTABLISHES OR REGU-
LATES TRANSPORTATION SERVICES MUST ADJUST THOSE FARES TO INCLUDE THEREIN
THE SURCHARGE IMPOSED BY THIS SECTION AND MUST REQUIRE THAT  ANY  METERS
OR  OTHER  DEVICES  IN  THE  VEHICLES OR OTHERWISE THAT MEASURE FARES BE
ADJUSTED TO INCLUDE THIS SURCHARGE.
  (II) ANY PERSON THAT PROVIDES THE SERVICES DESCRIBED IN  THIS  SECTION
MUST  ADJUST  ANY  METERS  OR OTHER DEVICES IN THE VEHICLES OR OTHERWISE
THAT MEASURE FARES SO THAT THEY TIMELY REFLECT ANY CHANGE IN THE RATE OF
THE SURCHARGE DESCRIBED IN SUBDIVISION (A) OF THIS SECTION. NEITHER  THE
FAILURE  OF  A MUNICIPAL OR OTHER PUBLIC CORPORATION TO ADJUST FARES NOR
THE FAILURE OF ANY PERSON TO ADJUST THE METERS OR DEVICES  WILL  RELIEVE
ANY  PERSON FROM THE OBLIGATION TO COLLECT SUCH SURCHARGE TIMELY, AT THE
CORRECT RATE.
  S 1282. PAYMENT OF SURCHARGE. THE SURCHARGE IMPOSED UNDER THIS ARTICLE
SHALL BE PAID IN THE SAME MANNER AND SHALL BE SUBJECT TO  SAME  ADMINIS-
TRATIVE  PROVISIONS AS PROVIDED IN ARTICLE TWENTY-EIGHT OF THIS CHAPTER.
THE COMMISSIONER SHALL PROMULGATE RULES AND REGULATIONS  TO  ASSIST  THE
TAXPAYER IN THE REMITTANCE OF THE SURCHARGE.
  S  1283. DEPOSIT AND DISPOSITION OF REVENUE. ALL TAXES, FEES, INTEREST
AND PENALTIES COLLECTED OR  RECEIVED  BY  THE  COMMISSIONER  UNDER  THIS
SECTION SHALL BE DEPOSITED AND DISPOSED OF PURSUANT TO THE PROVISIONS OF
SECTION  ONE  HUNDRED  SEVENTY-ONE-A  OF  THIS  CHAPTER.  HOWEVER, FIFTY
PERCENT OF THOSE TAXES, INTEREST AND PENALTIES SHALL BE DEPOSITED TO THE
CREDIT OF THE METROPOLITAN TRANSPORTATION AUTHORITY FINANCIAL ASSISTANCE
FUND ESTABLISHED UNDER SECTION NINETY-TWO-FF OF THE  STATE  FINANCE  LAW
AND  THE  BALANCE  THEREOF SHALL BE DEPOSITED TO THE CREDIT OF THE DEDI-
CATED HIGHWAY AND BRIDGE TRUST  FUND  ESTABLISHED  PURSUANT  TO  SECTION
EIGHTY-NINE-B OF THE STATE FINANCE LAW.
  S 2. This act shall take effect June 1, 2009.

                                 PART E

  Section  1.  The  tax law is amended by adding a new section 1166-a to
read as follows:
  S 1166-A. SPECIAL SUPPLEMENTAL TAX ON PASSENGER CAR  RENTALS.  (A)  ON
AND  AFTER JUNE FIRST, TWO THOUSAND NINE, IN ADDITION TO THE TAX IMPOSED
UNDER SECTION ELEVEN HUNDRED SIXTY OF THIS CHAPTER AND  IN  ADDITION  TO
ANY TAX IMPOSED UNDER ANY OTHER ARTICLE OF THIS CHAPTER, THERE IS HEREBY
IMPOSED  AND THERE SHALL BE PAID A TAX OF FIVE PERCENT UPON THE RECEIPTS
FROM EVERY RENTAL OF A PASSENGER CAR WHICH IS  A  RETAIL  SALE  OF  SUCH
PASSENGER  CAR  WITHIN THE METROPOLITAN COMMUTER TRANSPORTATION DISTRICT
AS DEFINED IN SUBDIVISION (A) OF SECTION EIGHT HUNDRED OF THIS CHAPTER.

S. 4487--A                         11

  (B) EXCEPT TO THE EXTENT THAT A  PASSENGER  CAR  RENTAL  DESCRIBED  IN
SUBDIVISION  (A)  OF THIS SECTION HAS ALREADY BEEN OR WILL BE SUBJECT TO
THE TAX IMPOSED UNDER SUCH PARAGRAPH AND EXCEPT  AS  OTHERWISE  EXEMPTED
UNDER  THIS  ARTICLE,  THERE IS HEREBY IMPOSED ON EVERY PERSON AND THERE
SHALL  BE PAID A USE TAX FOR THE USE WITHIN THIS STATE ON AND AFTER JUNE
FIRST, TWO THOUSAND NINE OF ANY PASSENGER CAR RENTED BY THE USER  WITHIN
THE METROPOLITAN COMMUTER TRANSPORTATION DISTRICT AS DEFINED IN SUBDIVI-
SION  (A)  OF SECTION EIGHT HUNDRED OF THIS CHAPTER, WHICH IS A PURCHASE
AT RETAIL OF SUCH PASSENGER CAR,  BUT  NOT  INCLUDING  ANY  LEASE  OF  A
PASSENGER  CAR TO WHICH SUBDIVISION (I) OF SECTION ELEVEN HUNDRED ELEVEN
OF THIS CHAPTER APPLIES. FOR PURPOSES OF THIS PARAGRAPH, THE  TAX  SHALL
BE  AT THE RATE OF FIVE PERCENT OF THE CONSIDERATION GIVEN OR CONTRACTED
TO BE GIVEN FOR SUCH PROPERTY, OR FOR THE USE OF SUCH PROPERTY,  INCLUD-
ING ANY CHARGES FOR SHIPPING OR DELIVERY AS DESCRIBED IN PARAGRAPH THREE
OF  SUBDIVISION  (B)  OF SECTION ELEVEN HUNDRED ONE OF THIS CHAPTER, BUT
EXCLUDING ANY CREDIT FOR TANGIBLE PERSONAL  PROPERTY  ACCEPTED  IN  PART
PAYMENT AND INTENDED FOR RESALE.
  S  2.  Section 1167 of the tax law, as added by section 3 of part D of
chapter 85 of the laws of 2002, is amended to read as follows:
  S 1167. Deposit and disposition of revenue. All  taxes,  interest  and
penalties  collected  or received by the commissioner under this article
shall be deposited and disposed of pursuant to the provisions of section
one hundred seventy-one-a of this chapter, except that  after  reserving
amounts  in  accordance  with  such section one hundred seventy-one-a of
this chapter, the remainder shall be paid  by  the  comptroller  to  the
credit  of  the  highway  and  bridge  trust fund established by section
eighty-nine-b of the state finance law, PROVIDED,  HOWEVER,  COLLECTIONS
MADE  PURSUANT  TO  SECTION  ELEVEN  HUNDRED SIXTY-SIX-A OF THIS ARTICLE
SHALL BE PAID TO THE CREDIT OF THE METROPOLITAN TRANSPORTATION AUTHORITY
FINANCIAL ASSISTANCE FUND ESTABLISHED BY SECTION  NINETY-TWO-FF  OF  THE
STATE FINANCE LAW.
  S 3. This act shall take effect June 1, 2009.

                                 PART F

  Section  1.  The  state finance law is amended by adding a new section
92-ff to read as follows:
  S 92-FF. METROPOLITAN TRANSPORTATION  AUTHORITY  FINANCIAL  ASSISTANCE
FUND. 1. THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE COMMIS-
SIONER  OF TAXATION AND FINANCE AND THE STATE COMPTROLLER A SPECIAL FUND
TO BE KNOWN AS  THE  "METROPOLITAN  TRANSPORTATION  AUTHORITY  FINANCIAL
ASSISTANCE FUND".
  2.  MONEYS  IN  THE  METROPOLITAN  TRANSPORTATION  AUTHORITY FINANCIAL
ASSISTANCE FUND SHALL BE KEPT SEPARATELY FROM AND SHALL NOT  BE  COMMIN-
GLED  WITH  ANY  OTHER  MONEYS IN THE JOINT OR SOLE CUSTODY OF THE STATE
COMPTROLLER OR THE COMMISSIONER OF TAXATION AND FINANCE.
  3. SUCH FUND SHALL CONSIST OF THE REVENUES DERIVED FROM THE  METROPOL-
ITAN   COMMUTER   TRANSPORTATION   MOBILITY   TAX   IMPOSED  BY  ARTICLE
TWENTY-THREE OF THE TAX LAW; REVENUES DERIVED FROM THE  SPECIAL  SUPPLE-
MENTAL  TAX  ON  PASSENGER CAR RENTALS IMPOSED BY SECTION ELEVEN HUNDRED
SIXTY-SIX-A OF THE TAX LAW; REVENUES  DERIVED  FROM  THE  TRANSPORTATION
SURCHARGE  IMPOSED  BY ARTICLE TWENTY-NINE-A OF THE TAX LAW; THE SUPPLE-
MENTAL REGISTRATION FEES IMPOSED BY ARTICLE SEVENTEEN-C OF  THE  VEHICLE
AND  TRAFFIC LAW; AND THE SUPPLEMENTAL METROPOLITAN COMMUTER TRANSPORTA-
TION DISTRICT LICENSE FEES IMPOSED BY SECTION FIVE HUNDRED THREE OF  THE
VEHICLE AND TRAFFIC LAW.

S. 4487--A                         12

  4.  MONEYS  OF THE FUND SHALL, FOLLOWING APPROPRIATION BY THE LEGISLA-
TURE, BE UTILIZED FOR THE OPERATIONS OF AND IMPROVEMENTS TO TRANSIT  AND
TRANSPORTATION  SERVICES  PROVIDED  BY  THE  METROPOLITAN TRANSPORTATION
AUTHORITY.
  S 2. This act shall take effect immediately.

                                 PART G

  Section  1.  Subdivision 11 of section 553-e of the public authorities
law, as amended by chapter 929 of the laws of 1986, is amended  to  read
as follows:
  11.  The  aggregate  principal  amount  of  bonds and notes issued and
outstanding at any time to finance  projects  authorized  by  paragraphs
(m),  (n),  (o), (p) and (r) of subdivision nine of section five hundred
fifty-three of this title shall  not  exceed  one  billion  one  hundred
million  dollars through December thirty-first, nineteen hundred eighty-
six and three billion two hundred million dollars  thereafter,  provided
however that such latter amount shall not exceed two billion two hundred
million dollars for all bonds and notes other than those issued pursuant
to  section  five  hundred fifty-three-d of this title.  This limitation
shall not include (i) bonds and notes  issued  to  refund  or  otherwise
repay  bonds  or  notes theretofore issued for such purposes, (ii) bonds
issued to fund any reasonably required debt  service  reserve  fund  for
bonds  and  notes,  and  (iii)  an  amount  equal  to any original issue
discount from the [prinicipal] PRINCIPAL amount of any  bonds  or  notes
issued  and  then  outstanding. From the proceeds of the bonds and notes
provided for in the first sentence of this subdivision, other than bonds
or notes authorized by section five hundred fifty-three-d of this title,
the authority shall not expend more than one billion three hundred twen-
ty million dollars for transit projects as  defined  in  section  twelve
hundred  sixty-six-c  of this chapter nor more than eight hundred eighty
million dollars for transportation facilities as such term is defined in
subdivision [fourteen] SEVENTEEN of section twelve hundred sixty-one  of
this  chapter other than marine or aviation facilities. For the purposes
of this subdivision, facilities under the  jurisdiction  of  the  Staten
Island  rapid  transit  operating  authority shall be considered transit
projects.
  S 2. Section 1261 of the public authorities law, as added  by  chapter
324  of the laws of 1965, subdivision 7 as amended by chapter 415 of the
laws of 1966, subdivision 8 as amended by chapter 569  of  the  laws  of
1973, subdivision 14 as amended by section 20 and subdivisions 19 and 20
as  added  by  section  21  of part O of chapter 61 of the laws of 2000,
subdivisions 16 and 17 as added by chapter 717 of the laws of 1967,  and
subdivision  18  as added by chapter 427 of the laws of 1983, is amended
to read as follows:
  S 1261. Definitions. As used or referred to in this  title,  unless  a
different meaning clearly appears from the context:
  1.    "Authority" shall mean the corporation created by section twelve
hundred sixty-three of this title.
  2.  "Authority facilities" shall mean the authority's railroad,  omni-
bus,  marine  and  aviation  facilities and operations pursuant to joint
service arrangements.
  3. "BUDGET" SHALL MEAN THE PRELIMINARY,  FINAL  PROPOSED  AND  ADOPTED
FINAL PLANS OF THE AUTHORITY, AND EACH OF ITS AGENCIES.
  [3.]  4.  "Comptroller" shall mean the comptroller of the state of New
York.

S. 4487--A                         13

  [4.] 5. "Equipment" shall mean  rolling  stock,  omnibuses,  vehicles,
air,  marine  or  surface  craft, motors, boilers, engines, wires, ways,
conduits  and  mechanisms,  machinery,  tools,  implements,   materials,
supplies,  instruments  and  devices  of every nature whatsoever used or
useful for transportation purposes or for the generation or transmission
of  motive  power including but not limited to all power houses, and all
apparatus and all devices for signalling, communications and ventilation
as may be necessary, convenient or desirable  for  the  operation  of  a
transportation facility.
  [5.]  6. "Federal government" shall mean the United States of America,
and any officer, department, board, commission, bureau, division, corpo-
ration, agency or instrumentality thereof.
  7. "GAP" SHALL MEAN THE  DIFFERENCE  BETWEEN  PROJECTED  REVENUES  AND
EXPENSES FOR ANY GIVEN FISCAL YEAR BASED ON THE EXISTING FARE STRUCTURE.
  8. "GAP-CLOSING INITIATIVE" SHALL MEAN ANY ACTION TO REDUCE A PROJECT-
ED GAP.
  [6.] 9. "Governor" shall mean the governor of the state of New York.
  [7.] 10. "Joint service arrangements" shall mean agreements between or
among  the  authority  and  any common carrier or freight forwarder, the
state, any state agency, the federal  government,  any  other  state  or
agency  or  instrumentality thereof, any public authority of this or any
other state, or any political subdivision or municipality of the  state,
relating  to  property,  buildings,  structures,  facilities,  services,
rates, fares, classifications, divisions, allowances or charges (includ-
ing charges between operators of railroad, omnibus, marine and  aviation
facilities),  or  rules  or  regulations  pertaining  thereto, for or in
connection with or incidental to transportation in part in or upon rail-
road, omnibus, marine or aviation facilities located within the district
and in part in or upon railroad, omnibus, marine or aviation  facilities
located outside the district.
  [8.]  11.  "Marine  and  aviation facilities" shall mean equipment and
craft for the transportation  of  passengers,  mail  and  cargo  between
points within the district or pursuant to joint service arrangements, by
marine  craft  and  aircraft  of  all types including but not limited to
hydrofoils, ferries, lighters, tugs,  barges,  helicopters,  amphibians,
seaplanes  or  other contrivances now or hereafter used in navigation or
movement on waterways or in the navigation of or flight in airspace.  It
shall also mean any marine port or airport facility within the transpor-
tation  district but outside the port of New York district as defined in
chapter one hundred fifty-four of the laws of nineteen  hundred  twenty-
one,  including  but  not limited to terminals, docks, piers, bulkheads,
ramps or any facility or real property necessary, convenient or  desira-
ble  for the accommodation of passengers and cargo or the docking, sail-
ing, landing, taking off, accommodation  or  servicing  of  such  marine
craft or aircraft.
  [9.]  12.  "Omnibus facilities" shall mean motor vehicles, of the type
operated by carriers subject to the jurisdiction of the  public  service
commission,  engaged  in  the  transportation  of  passengers  and their
baggage, express and mail between points within the district or pursuant
to joint  service  arrangements,  and  equipment,  property,  buildings,
structures,  improvements,  loading or unloading areas, parking areas or
other facilities, necessary, convenient or desirable  for  the  accommo-
dation  of  such  motor  vehicles or their passengers, including but not
limited to buildings, structures and areas notwithstanding that portions
may not be devoted to any omnibus purpose other than the  production  of

S. 4487--A                         14

revenues  available  for the costs and expenses of all or any facilities
of the authority.
  [10.]  13.  "Railroad  facilities" shall mean right of way and related
trackage, rails, cars, locomotives, other rolling stock, signal,  power,
fuel,  communication  and  ventilation  systems, power plants, stations,
terminals, storage yards, repair and maintenance shops, yards, equipment
and parts, offices and other real estate or personalty used or held  for
or  incidental  to  the  operation, rehabilitation or improvement of any
railroad operating or to operate between points within the  district  or
pursuant  to  joint  service  arrangements, including but not limited to
buildings, structures, and areas notwithstanding that  portions  thereof
may  not be devoted to any railroad purpose other than the production of
revenues available for the costs and expenses of all or  any  facilities
of the authority.
  [11.] 14. "Real property" shall mean lands, structures, franchises and
interests  in  land,  waters, lands under water, riparian rights and air
rights and any and all things and rights included within said  term  and
includes  not  only  fees  simple  absolute  but also any and all lesser
interests including but not limited to easements, rights of  way,  uses,
leases,  licenses  and  all  other  incorporeal  hereditaments and every
estate, interest or right, legal or equitable, including terms for years
and liens thereon by way of judgments, mortgages or otherwise.
  [12.] 15. "State" shall mean the state of New York.
  [13.] 16. "State agency" shall mean any  officer,  department,  board,
commissioner,  bureau,  division,  public benefit corporation, agency or
instrumentality of the state.
  [14.] 17. "Transportation facility" shall mean any transit,  railroad,
omnibus,  marine or aviation facility and any person, firm, partnership,
association or, corporation which owns,  leases  or  operates  any  such
facility or any other facility used for service in the transportation of
passengers,  United States mail or personal property as a common carrier
for hire and any portion thereof and the  rights,  leaseholds  or  other
interest  therein together with routes, tracks, extensions, connections,
parking lots, garages, warehouses, yards, storage yards, maintenance and
repair shops, terminals, stations and other related facilities  thereof,
the  devices,  appurtenances, and equipment thereof and power plants and
other instrumentalities used or useful therefor or in connection  there-
with.
  [15.]  18.  "Transportation  district"  and  "district" shall mean the
metropolitan commuter transportation district created by section  twelve
hundred sixty-two of this title.
  [16.] 19. "New York city transit authority" shall mean the corporation
created by section twelve hundred one of this chapter.
  [17.]  20.  "Triborough  bridge  and  tunnel authority" shall mean the
corporation created by section five hundred fifty-two of this chapter.
  [18.] 21. "Inspector general" shall mean the metropolitan  transporta-
tion authority inspector general.
  [19.]  22.  "Revenues."  All  monies  received by the authority or its
subsidiaries, or New York city transit authority or its subsidiaries, or
Triborough bridge and tunnel authority, as the case may be, from whatev-
er source, derived directly or indirectly from or in connection with the
operations of the respective entity.
  [20.] 23. "Transit facility." Transit facility as defined in  subdivi-
sion fifteen of section twelve hundred of this article.

S. 4487--A                         15

  24.  "UTILIZATION"  SHALL MEAN PUBLIC USAGE OF THE AUTHORITY'S SUBWAY,
BUS, RAILROAD AND PARATRANSIT RIDERSHIP, AND BRIDGE AND TUNNEL CROSSINGS
AS REFLECTED IN EMPIRICAL DATA.
  S  3. Subparagraph 1 of paragraph (a) of subdivision 1 of section 1263
of the public authorities law, as amended by chapter 549 of the laws  of
1994, is amended to read as follows:
  (1)  There is hereby created the "metropolitan transportation authori-
ty." The authority shall be a body corporate and politic constituting  a
public  benefit  corporation. The authority shall consist of a chairman,
[sixteen] EIGHTEEN other voting members, and  two  non-voting  and  four
alternate  non-voting  members, as described in subparagraph two of this
paragraph appointed by the governor by and with the advice  and  consent
of  the senate. Four of the [sixteen] EIGHTEEN voting members other than
the chairman shall be appointed on the  written  recommendation  of  the
mayor  of the city of New York; ONE OF THE EIGHTEEN VOTING MEMBERS OTHER
THAN THE CHAIRMAN SHALL BE APPOINTED ON THE  WRITTEN  RECOMMENDATION  OF
THE  TEMPORARY  PRESIDENT  OF  THE  SENATE;  ONE  OF THE EIGHTEEN VOTING
MEMBERS OTHER THAN THE CHAIRMAN SHALL BE APPOINTED ON THE WRITTEN RECOM-
MENDATION OF THE SPEAKER OF THE ASSEMBLY; and each of seven other voting
members other than the chairman shall be appointed after selection  from
a written list of three recommendations from the chief executive officer
of  the  county  in  which  the  particular member is required to reside
pursuant to the provisions of this subdivision. Of the members appointed
on recommendation of the chief executive officer of a county,  one  such
member shall be, at the time of appointment, a resident of the county of
Nassau[;], one a resident of the county of Suffolk[;], one a resident of
the county of Westchester[; and], one a resident of the county of Dutch-
ess, one a resident of the county of Orange, one a resident of the coun-
ty of Putnam and one a resident of the county of Rockland, provided that
the  term of any member who is a resident of a county that has withdrawn
from the  metropolitan  commuter  transportation  district  pursuant  to
section  twelve  hundred  seventy-nine-b of this article shall terminate
upon the effective date of such county's withdrawal from such  district.
Of  the  five  voting members, other than the chairman, appointed by the
governor without recommendation from any other person, three  shall  be,
at  the  time  of appointment, residents of the city of New York and two
shall be, at the time of appointment, residents of such city or  of  any
of  the aforementioned counties in the metropolitan commuter transporta-
tion district. The chairman and each of the members shall  be  appointed
for  a  term  of  six  years,  provided however, that the chairman first
appointed shall serve for a term ending June thirtieth, nineteen hundred
eighty-one, and the sixteen other members first  appointed  shall  serve
for  the  following  terms:  The members from the counties of Nassau and
Westchester shall each serve for a term ending June thirtieth,  nineteen
hundred eighty-five; the members from the county of Suffolk and from the
counties of Dutchess, Orange, Putnam and Rockland shall each serve for a
term  ending  June  thirtieth,  nineteen  hundred ninety-two; two of the
members appointed on recommendation of the mayor of the city of New York
shall each serve for a term  ending  June  thirtieth,  nineteen  hundred
eighty-four  and, two shall each serve for a term ending June thirtieth,
nineteen hundred eighty-one; two of the members appointed by the  gover-
nor  without the recommendation of any other person shall each serve for
a term ending June thirtieth, nineteen  hundred  eighty-two,  two  shall
each serve for a term ending June thirtieth, nineteen hundred eighty and
one  shall  serve  for  a  term  ending June thirtieth, nineteen hundred
eighty-five. The two non-voting and four  alternate  non-voting  members

S. 4487--A                         16

shall  serve until January first, two thousand one. The members from the
counties of Dutchess, Orange, Putnam and Rockland shall cast one collec-
tive vote.
  S  4.  Paragraph  (a)  of  subdivision 4 of section 1263 of the public
authorities law, as amended by chapter 766  of  the  laws  of  2005,  is
amended to read as follows:
  (a)  [On recommendation of the chairman, the authority shall] NOTWITH-
STANDING SUBDIVISION THREE OF SECTION TWENTY-EIGHT  HUNDRED  TWENTY-FOUR
OF  THIS  CHAPTER  OR  ANY  OTHER  PROVISION OF LAW TO THE CONTRARY, THE
CHAIRMAN SHALL BE THE CHIEF EXECUTIVE OFFICER OF THE AUTHORITY AND SHALL
BE RESPONSIBLE FOR THE DISCHARGE OF  THE  EXECUTIVE  AND  ADMINISTRATIVE
FUNCTIONS AND POWERS OF THE AUTHORITY. THE CHAIRMAN MAY appoint an exec-
utive  director  [who shall be responsible for the] AND SUCH OTHER OFFI-
CIALS AND EMPLOYEES AS SHALL  IN  HIS  OR  HER  JUDGMENT  BE  NEEDED  TO
discharge  [of] the executive and administrative functions and powers of
the authority[, including the administration and  the  day-to-day  oper-
ations of the authority and who shall not be a member of the authority].
  S  5.  The  public  authorities law is amended by adding a new section
1268-a to read as follows:
  S 1268-A. PROMOTION OF QUALIFIED TRANSPORTATION FRINGES.  THE AUTHORI-
TY SHALL PROMOTE THE BROAD  USE  OF  QUALIFIED  TRANSPORTATION  FRINGES,
UNDER  SECTION 132(F) OF THE INTERNAL REVENUE CODE, IN ORDER TO INCREASE
THE NUMBER OF PARTICIPATING COMPANIES AND  EMPLOYEES  IN  SUCH  PROGRAM.
THE  AUTHORITY SHALL ALSO STUDY AND REPORT ON WAYS IN WHICH PROGRAMS MAY
BE IMPROVED SO AS TO INCREASE PUBLIC PARTICIPATION.
  S 6. Subdivisions 2, 3 and 7 of section 1269-b of the public  authori-
ties law, as added by chapter 314 of the laws of 1981, the opening para-
graph  of  subdivision 3 as amended by  chapter 637 of the laws of 1996,
and paragraph (a) of subdivision 7 as amended by chapter 929 of the laws
of 1986, are amended and a new subdivision  2-a  is  added  to  read  as
follows:
  2.  Each  plan  shall  itemize  the  capital elements included in each
section of the plan under the following categories of  expenditure:  (a)
rolling  stock  and  buses;  (b) passenger stations; (c) track; (d) line
equipment; (e) line structures;  (f)  signals  and  communications;  (g)
power  equipment,  emergency power equipment and substations; (h) shops,
yards, maintenance facilities, depots and terminals; (i)  service  vehi-
cles;  (j)  security  systems; (k) electrification extensions; [and] (l)
[unspecified, miscellaneous and emergency] MINORITY AND WOMEN'S BUSINESS
DEVELOPMENT; AND (M) UNSPECIFIED, MISCELLANEOUS AND EMERGENCY.
  2-A. AT LEAST SIXTY DAYS BEFORE IT SUBMITS ITS CAPITAL  PROGRAM  PLANS
TO  THE  METROPOLITAN  TRANSPORTATION  AUTHORITY  CAPITAL PROGRAM REVIEW
BOARD FOR THE ENSUING FIVE-YEAR PERIOD, IN ACCORDANCE WITH PARAGRAPH (A)
OF SUBDIVISION ONE OF THIS SECTION, THE AUTHORITY  SHALL  PROVIDE  DRAFT
COPIES  OF  THEM TO THE SPEAKER OF THE ASSEMBLY, THE TEMPORARY PRESIDENT
OF THE SENATE, AND THE JOINT CORPORATION AND  TRANSPORTATION  COMMITTEES
OF THE SENATE AND ASSEMBLY. WITHIN THIRTY DAYS AFTER SUCH RECEIPT OF THE
PROPOSED FIVE-YEAR CAPITAL PROGRAM PLANS, THE LEGISLATURE MAY STRIKE ANY
CAPITAL  ELEMENTS FROM THE PLANS, BUT SHALL NOT ADD ANY CAPITAL ELEMENTS
TO THEM. AFTER AND IN ACCORDANCE WITH SUCH LEGISLATIVE ACTION,  IF  ANY,
OR  THE CONCLUSION OF THE THIRTY-DAY PERIOD, WHICHEVER SHALL COME FIRST,
THE AUTHORITY SHALL REFORMULATE THE PLANS  AS  APPROPRIATE,  AND  SUBMIT
THEM TO THE METROPOLITAN TRANSPORTATION AUTHORITY CAPITAL PROGRAM REVIEW
BOARD.
  3.  A  plan  may  only  be approved BY THE METROPOLITAN TRANSPORTATION
AUTHORITY CAPITAL PROGRAM REVIEW BOARD in two ways:  (i)  a  plan  shall

S. 4487--A                         17

only  be  approved by the board by a unanimous vote of the members enti-
tled to vote thereon and within ninety days or by  September  fifteenth,
nineteen  hundred  ninety-six in the case of a plan submitted during the
period described in paragraph (b) of subdivision one of this section, of
the submission of a plan the metropolitan transportation authority capi-
tal program review board may notify the authority of its approval of the
same; or (ii) if the plan is not approved by the board within such nine-
ty day period or by September fifteenth, nineteen hundred ninety-six, as
the  case  may be, and no individual member of the board who is entitled
to vote thereon has notified the authority in writing of his disapproval
within such period, the plan shall be deemed to have been approved.
  If the plan is not approved, the authority may thereafter  reformulate
and resubmit such plan at any time. Within thirty days of the submission
of  such  reformulated  plan  the  board may notify the authority of its
approval of the same by the unanimous vote of the  members  entitled  to
vote  thereon, or, if the reformulated plan is not approved and no indi-
vidual member of the board who is entitled to vote on such  reformulated
plan  has  notified  the  authority in writing of his disapproval within
such period,  the  reformulated  plan  shall  be  deemed  to  have  been
approved.
  IN  DISAPPROVING  A PLAN, OR IN ANTICIPATION OF NOT ATTAINING APPROVAL
OF A PLAN, THE METROPOLITAN  TRANSPORTATION  AUTHORITY  CAPITAL  PROGRAM
REVIEW  BOARD  MAY  INDICATE  TO  THE AUTHORITY WITHIN THIRTY DAYS AFTER
SUBMISSION OF THE PLAN THAT IT DISAPPROVES ONLY OF SPECIFICALLY  IDENTI-
FIED  CAPITAL  ELEMENTS  IN THE PLAN PROPOSED BY THE AUTHORITY, AND THAT
THE METROPOLITAN TRANSPORTATION AUTHORITY CAPITAL PROGRAM  REVIEW  BOARD
WILL APPROVE THE PLAN IF THOSE ELEMENTS ARE REMOVED OR ARE SATISFACTORI-
LY  REFORMULATED  IN  THE MANNER EXPRESSLY DESCRIBED BY THE METROPOLITAN
TRANSPORTATION AUTHORITY CAPITAL PROGRAM REVIEW  BOARD.  NOTWITHSTANDING
THE FOREGOING, THE METROPOLITAN TRANSPORTATION AUTHORITY CAPITAL PROGRAM
REVIEW  BOARD  SHALL NOT CONDITION ITS APPROVAL OF THE PLAN ON THE ADDI-
TION TO SUCH PLAN BY THE AUTHORITY OF  CAPITAL  ELEMENTS  NOT  CONTAINED
THEREIN.
  7.  (a) The authority may from time to time submit to the metropolitan
transportation authority capital  program  review  board  amendments  or
modifications  to  any  five-year  plan theretofore submitted, and shall
submit such an amendment or modification (i) if the  estimated  cost  of
any  capital element for which a specified dollar amount was proposed to
be expended exceeds the amount set forth in the approved plan  for  such
element by more than ten percent, (ii) if with respect to a particularly
described  capital  element for which only an estimate of projected cost
has been provided in  the  plan  there  is  a  material  change  in  the
description  of  such  element from that contained in the approved plan,
(iii) if a capital element not previously included in the approved  plan
is  proposed  to  be  undertaken and its cost, together with the cost of
other elements included in category (l) of  the  plan,  exceeds  by  ten
percent  the amount provided for such category (l) elements, (iv) if the
authority shall propose to change by more than one year  the  time  when
any  capital  element  is proposed to be initiated or the effect of such
change will be to increase  the  estimated  amount  of  capital  funding
required in any year covered by the plan by more than twenty percent, or
(v)  if  the  availability  of  funding sources changes to the degree to
which the authority or the Triborough bridge and  tunnel  authority  are
precluded  from exercising the authorization provided in subdivision six
of this section and the authority wishes to do so.

S. 4487--A                         18

  (b) An amendment or modification may only be approved in two ways: (i)
an amendment or modification shall only be approved by the  board  by  a
unanimous vote of the members entitled to vote thereon and within thirty
days  of the submission of an amendment or modification the metropolitan
transportation  authority  capital  program  review board may notify the
authority of its approval of the same;  or  (ii)  if  the  amendment  or
modification  is not approved by the board within such thirty day period
and no individual member of the board who is entitled to  vote  thereon,
has  notified  the  authority  in writing of his disapproval within such
period, the amendment or modification  shall  be  deemed  to  have  been
approved.
  (C) IN DISAPPROVING AN AMENDMENT OR MODIFICATION TO ANY FIVE-YEAR PLAN
THERETOFORE  SUBMITTED,  OR IN ANTICIPATION OF NOT ATTAINING APPROVAL OF
SUCH AMENDMENT OR MODIFICATION, THE METROPOLITAN TRANSPORTATION AUTHORI-
TY CAPITAL PROGRAM REVIEW BOARD MAY INDICATE  TO  THE  AUTHORITY  WITHIN
TWENTY  DAYS  AFTER  SUBMISSION OF THE AMENDMENT OR MODIFICATION THAT IT
DISAPPROVES ONLY OF SPECIFICALLY IDENTIFIED ELEMENTS OF THE AMENDMENT OR
MODIFICATION PROPOSED BY THE AUTHORITY, AND THAT THE METROPOLITAN TRANS-
PORTATION AUTHORITY  CAPITAL  PROGRAM  REVIEW  BOARD  WILL  APPROVE  THE
AMENDED  OR  MODIFIED PLAN IF THOSE ELEMENTS ARE SATISFACTORILY REFORMU-
LATED IN THE MANNER EXPRESSLY DESCRIBED BY THE METROPOLITAN  TRANSPORTA-
TION AUTHORITY CAPITAL PROGRAM REVIEW BOARD. NOTWITHSTANDING THE FOREGO-
ING,  THE  METROPOLITAN  TRANSPORTATION AUTHORITY CAPITAL PROGRAM REVIEW
BOARD SHALL NOT CONDITION ITS APPROVAL OF AN AMENDMENT  OR  MODIFICATION
OF  THE  PLAN  ON  THE ADDITION TO SUCH PLAN BY THE AUTHORITY OF CAPITAL
ELEMENTS NOT PREVIOUSLY CONTAINED THEREIN.
  S 7. The public authorities law is amended by adding four new sections
1269-e, 1269-f, 1269-g and 1269-h to read as follows:
  S 1269-E. FINANCIAL AND OPERATIONAL REPORTS.  1. THE  AUTHORITY  SHALL
SUBMIT  TO  THE  GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE AND THE
SPEAKER OF THE  ASSEMBLY,  NO  LATER  THAN  THIRTY  DAYS  FOLLOWING  THE
SUBMISSION  OF  THE  ANNUAL INDEPENDENT AUDIT REPORT PURSUANT TO SECTION
TWENTY-EIGHT HUNDRED TWO OF THIS CHAPTER, AND THE AUTHORITY  SHALL  POST
ON  ITS  WEBSITE A COMPLETE, DETAILED REPORT OR REPORTS IN PLAIN ENGLISH
EXPLAINING:
  (A) ITS FINANCIAL REPORTS, INCLUDING:
  (I) AUDITED FINANCIALS IN ACCORDANCE WITH ALL  APPLICABLE  REGULATIONS
AND  GENERALLY  ACCEPTED ACCOUNTING PRINCIPLES AS DEFINED IN SUBDIVISION
TEN OF SECTION TWO OF THE STATE FINANCE LAW;
  (II) GRANT AND SUBSIDY PROGRAMS;
  (III) DISTINCT OPERATING AND FINANCIAL RISKS;
  (IV) CURRENT RATINGS OF ITS BONDS  ISSUED  BY  MUNICIPAL  BOND  RATING
AGENCIES AND ANY CHANGES IN SUCH RATINGS; AND
  (V) LONG-TERM LIABILITIES, LEASES AND EMPLOYEE BENEFIT PLANS; AND
  (B)  AN ASSESSMENT OF THE EFFECTIVENESS OF ITS INTERNAL CONTROL STRUC-
TURE AND PROCEDURES, INCLUDING ITS CODE OF ETHICS AND A LISTING OF MATE-
RIAL CHANGES IN INTERNAL OPERATIONS AND PROGRAMS  DURING  THE  REPORTING
YEAR; AND
  (C)  ITS ANALYSIS OF THE CURRENT STATE OF THE AUTHORITY, INCLUDING ITS
BUDGETS, PROJECTS CURRENTLY BEING UNDERTAKEN, PROJECTED COSTS AND REVEN-
UES, EXPENSES, CONTRACTS, RIDERSHIP, PERSONNEL, MINORITY AND WOMEN OWNED
BUSINESS ENTERPRISES, AND OTHER RELEVANT INFORMATION AS REQUESTED BY THE
RESPECTIVE LEGISLATIVE COMMITTEES.
  2. ORAL TESTIMONY. UPON SUBMISSION OF EACH ANNUAL REPORT, OR AS OTHER-
WISE DIRECTED BY THE RESPECTIVE LEGISLATIVE LEADERS, THE CHAIRMAN  SHALL
PROVIDE  ORAL  TESTIMONY  AS  REQUESTED  TO  THE APPROPRIATE LEGISLATIVE

S. 4487--A                         19

COMMITTEES REGARDING THE REPORTS SUBMITTED  AND  THE  ANALYSIS  RELATIVE
THERETO.
  3.  WITHIN SIXTY DAYS AFTER THE EFFECTIVE DATE OF THIS SECTION, AND AT
SUCH TIMES THEREAFTER AS IT SHALL DETERMINE TO BE APPROPRIATE AND NECES-
SARY, AND SUBJECT  TO  OTHER  APPLICABLE  LAWS,  THE  LEGISLATURE  SHALL
COMMISSION AN AUDITING FIRM NOT EMPLOYED BY THE AUTHORITY TO CONDUCT FOR
THE  LEGISLATURE  AN  INDEPENDENT  AUDIT  OF FINANCIAL STATEMENTS OF THE
AUTHORITY, ANY SUBSIDIARY THEREOF OR ANY OTHER  ENTITY  CREATED  BY  THE
AUTHORITY.  THE SCOPE OF THE AUDIT COMMISSIONED BY THE LEGISLATURE SHALL
BE DETERMINED BY IT FROM TIME TO TIME, AND MAY INCLUDE FINANCIAL, OPERA-
TIONAL AND OTHER MATTERS CONCERNING THE ACTIVITIES AND MANAGEMENT OF THE
AUTHORITY. THE AUTHORITY, THE STATE COMPTROLLER AND  ANY  PROFESSIONALS,
CONTRACTORS  OR  CONSULTANTS  RETAINED BY THE AUTHORITY SHALL FURNISH TO
THE AUDITING FIRM RETAINED BY THE LEGISLATURE SUCH  BOOKS,  RECORDS  AND
DOCUMENTS  AS  ARE  REQUESTED BY SUCH FIRM, AND SHALL RENDER COOPERATION
AND ASSISTANCE TO THE AUDIT.
  S 1269-F. MISSION STATEMENT  AND  MEASUREMENT  REPORT.  THE  AUTHORITY
SHALL  SUBMIT TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE AND
THE SPEAKER OF THE ASSEMBLY, ON OR BEFORE MARCH THIRTY-FIRST EACH  YEAR,
AND  POST  ON  ITS  WEBSITE  A  PROPOSED AUTHORITY MISSION STATEMENT AND
PROPOSED MEASUREMENTS OF THE AUTHORITY'S SATISFACTORY COMPLETION  THERE-
OF.  THE PROPOSED MISSION STATEMENT AND PROPOSED MEASUREMENTS SHALL HAVE
THE FOLLOWING COMPONENTS: A STATEMENT EXPRESSING THE PURPOSE  AND  GOALS
OF THE AUTHORITY; A DESCRIPTION OF THE STAKEHOLDERS OF THE AUTHORITY AND
ITS  UNDERSTANDING  OF THEIR REASONABLE EXPECTATIONS, WHICH STAKEHOLDERS
SHALL INCLUDE AT LEAST THE RESIDENTS AND TAXPAYERS OF THE  AREA  OF  THE
STATE  SERVED  BY  THE  AUTHORITY,  THE  PERSONS  THAT  USE THE SERVICES
PROVIDED BY THE AUTHORITY, AND THE EMPLOYEES OF THE  AUTHORITY  AND  ANY
EMPLOYEE  ORGANIZATION;  THE  GOALS  OF THE AUTHORITY IN RESPONSE TO THE
NEEDS OF EACH GROUP OF STAKEHOLDERS; AND A LIST OF MEASURES BY WHICH THE
PERFORMANCE OF THE AUTHORITY AND THE ACHIEVEMENT OF  ITS  GOALS  MAY  BE
EVALUATED.
  S  1269-G.  PROJECT  LABOR  AGREEMENTS.  THE AUTHORITY SHALL REQUIRE A
CONTRACTOR AWARDED A CONTRACT, SUBCONTRACT, LEASE, GRANT, BOND, COVENANT
OR OTHER AGREEMENT WHERE THE TOTAL COST TO THE AUTHORITY IS  TWENTY-FIVE
MILLION  DOLLARS OR MORE TO ENTER INTO A PROJECT LABOR AGREEMENT FOR THE
WORK WHENEVER THE AUTHORITY IN ITS SOLE DISCRETION SHALL DETERMINE  THAT
THE  INTERESTS  OF  THE  PUBLIC IN OBTAINING THE BEST WORK AT THE LOWEST
PRICE, PREVENTING FAVORITISM, FRAUD AND CORRUPTION, AND OTHER  PERTINENT
CONSIDERATIONS SUCH AS THE IMPACT OF DELAY, CAN BE BEST MET BY A PROJECT
LABOR  AGREEMENT  AS  DEFINED  IN  SECTION TWO HUNDRED TWENTY-TWO OF THE
LABOR LAW.
  S 1269-H. REQUIREMENTS FOR CERTAIN  AUTHORITY  CONTRACTS  AND  RELATED
SUBCONTRACTS.  1.  WHERE  ANY PERSON OR BUSINESS ORGANIZATION, INCLUDING
ANY CONTRACTOR OR SUBCONTRACTOR, IS PAID OR IS TO BE PAID BY THE AUTHOR-
ITY, OR WITH FUNDS ORIGINATING FROM THE AUTHORITY,  OR  WITH  FUNDS  FOR
PERFORMANCE  ON  A  PROJECT  FINANCED  BY  THE AUTHORITY, MORE THAN FIVE
HUNDRED THOUSAND DOLLARS DURING ANY CALENDAR YEAR, SUCH PERSON OR  BUSI-
NESS ORGANIZATION SHALL:
  (A)  POST  INFORMATION CONFORMING TO THE PROVISIONS OF SUBDIVISION TWO
OF THIS SECTION IN ONE OR MORE CONSPICUOUS PLACES AT  EACH  MAJOR  WORK-
PLACE  SITE  WHERE  PERSONS  WHO PERFORM WORK ON THE CONTRACT OR SUBCON-
TRACT, INCLUDING MANAGEMENT, ARE  MOST  LIKELY  TO  SEE  SUCH  POSTINGS;
PROVIDED  THAT,  THIS  REQUIREMENT MAY BE SATISFIED BY THE DISPLAYING OF
SUCH INFORMATION WITH OTHER NOTICES THAT INFORM PERSONS OF RIGHTS  UNDER

S. 4487--A                         20

FEDERAL  OR  STATE LAWS OR RULES, HUMAN RESOURCE POLICIES, OR COLLECTIVE
BARGAINING AGREEMENTS;
  (B)  POST  INFORMATION CONFORMING TO THE PROVISIONS OF SUBDIVISION TWO
OF THIS SECTION ON THE HOME PAGE OF AN INTERNET AND INTRANET WEBSITE, IF
ANY, OF THAT  PERSON  OR  BUSINESS  ORGANIZATION;  PROVIDED  THAT,  THIS
REQUIREMENT  MAY BE SATISFIED BY PROVIDING ON SUCH WEBSITE A CONSPICUOUS
HYPERLINK TO THE AUTHORITY WEBSITE MAINTAINED  PURSUANT  TO  SUBDIVISION
THREE OF THIS SECTION, WHICH HYPERLINK SHALL BE LABELED "PROTECTIONS FOR
REPORTING FRAUD IN NEW YORK";
  (C)  DISTRIBUTE  INFORMATION  SPECIFIED  IN  SUBDIVISION  TWO  OF THIS
SECTION TO THOSE PERSONS, INCLUDING EMPLOYEES AND MANAGERS, WHO  PERFORM
WORK  ON  THE CONTRACT; PROVIDED THAT, THIS REQUIREMENT MAY BE SATISFIED
BY DISTRIBUTING SUCH INFORMATION IN AN EMPLOYEE HANDBOOK  OR  THROUGH  A
SPECIFIC  ELECTRONIC COMMUNICATION CONTAINING THE INFORMATION TO A KNOWN
ELECTRONIC MAIL ADDRESS MAINTAINED BY THE PERSON; AND
  (D) COMPLY WITH THE PROVISIONS OF THIS SUBDIVISION, AND PROVIDE TO THE
AUTHORITY SATISFACTORY EVIDENCE OF SUCH COMPLIANCE, WITHIN NINETY DAYS.
  2. THE DISCLOSURES REQUIRED BY SUBDIVISION ONE OF THIS SECTION SHALL:
  (A) PROVIDE THE TELEPHONE NUMBERS AND ADDRESSES TO REPORT  INFORMATION
OF  FRAUD  OR  OTHER ILLEGAL ACTIVITY TO THE APPROPRIATE OFFICERS OF THE
INSPECTOR GENERAL OF THE  AUTHORITY  AND  THE  ATTORNEY-GENERAL  OF  THE
STATE;
  (B)  DESCRIBE  IN  DETAIL  CONDUCT  PROHIBITED  BY SECTION ONE HUNDRED
EIGHTY-NINE OF THE STATE FINANCE LAW,  AND  THE  ROLE  OF  THAT  ACT  IN
PREVENTING AND DETECTING FRAUD AND ABUSE IN WORK PAID FOR BY THE AUTHOR-
ITY OR WITH FUNDS ORIGINATING FROM THE AUTHORITY;
  (C)  NOTIFY  PROSPECTIVE  QUI  TAM PLAINTIFFS ON HOW TO FILE A QUI TAM
ACTION, INCLUDING THE NECESSITY TO CONTACT PRIVATE  COUNSEL  SKILLED  IN
FILING  SUCH  ACTIONS  AND  OF  THE  POTENTIAL  FOR CASH REWARDS IN SUCH
ACTIONS BASED ON THE PERCENTAGE OF THE FUNDS RECOVERED  BY  THE  GOVERN-
MENT; AND
  (D)  DESCRIBE PROHIBITIONS ON EMPLOYER RETALIATION AGAINST PERSONS WHO
FILE OR ASSIST ACTIONS UNDER ARTICLE THIRTEEN OF THE STATE  FINANCE  LAW
(THE  NEW YORK FALSE CLAIMS ACT) PURSUANT TO SECTION ONE HUNDRED NINETY-
ONE OF THE STATE FINANCE LAW, OR WHO REPORT ILLEGAL CONDUCT THAT THREAT-
ENS THE HEALTH OR SAFETY OF THE PUBLIC PURSUANT TO SECTION SEVEN HUNDRED
FORTY OF THE LABOR LAW.
  3. NO LATER THAN FORTY-FIVE DAYS AFTER  THE  EFFECTIVE  DATE  OF  THIS
SECTION,  THE AUTHORITY SHALL ESTABLISH AND CONTINUOUSLY MAINTAIN ON ITS
PUBLIC WEBSITE AND ITS INTRANET SITE  A  PAGE  THAT  SHALL  PROVIDE  THE
INFORMATION SPECIFIED IN SUBDIVISION TWO OF THIS SECTION, AND THAT SHALL
ALSO  PROVIDE  SAMPLE  STATEMENTS, DISPLAYS AND OTHER MATERIALS SUITABLE
FOR INSERTION IN EMPLOYEE HANDBOOKS  OR  POSTING  AT  WORKPLACES  OR  ON
WEBSITES THAT WOULD SATISFY THE DISCLOSURE REQUIREMENTS OF THIS SECTION.
  4.  ON  AND  AFTER  THE  EFFECTIVE DATE OF THIS SECTION, THE AUTHORITY
SHALL NOT ENTER INTO ANY CONTRACT DESCRIBED IN SUBDIVISION ONE  OF  THIS
SECTION THAT DOES NOT INCORPORATE THE TERMS OF THIS SECTION.
  5.  COMPLIANCE  BY A COVERED PERSON OR BUSINESS ORGANIZATION WITH THIS
SECTION SHALL BE A MATERIAL CONDITION OF PAYMENT FOR  THE  PROVISION  OF
GOODS OR SERVICES.
  6.  THE AUTHORITY IS AUTHORIZED TO ADOPT SUCH RULES AND REGULATIONS AS
ARE NECESSARY TO EFFECT THE PURPOSES OF THIS SECTION.
  S 8.  The public authorities law is amended by adding  a  new  section
1270-g to read as follows:
  S  1270-G. REGULATION OF CERTAIN AUTHORITY EXPENDITURES. THE AUTHORITY
SHALL, PURSUANT TO ARTICLE TWO OF  THE  STATE  ADMINISTRATIVE  PROCEDURE

S. 4487--A                         21

ACT,  PROMULGATE  AND IMPLEMENT RULES AND REGULATIONS TO MINIMIZE UNWAR-
RANTED EXPENSES AND TO PROTECT AGAINST ABUSES IN CONNECTION WITH (I) THE
GRANTING OF ANY PRIVILEGES OR BENEFITS  HAVING  FINANCIAL  VALUE,  OTHER
THAN WAGE PAYMENTS OR EXPENSE REIMBURSEMENTS, TO MEMBERS OR STAFF OF THE
AUTHORITY,  OR ANY SUBSIDIARY OR OTHER AUTHORITY CREATED BY THE AUTHORI-
TY; (II) THE FULL-TIME AND PART-TIME ASSIGNMENT AND USE  OF  AUTOMOBILES
OWNED  OR  LEASED BY THE AUTHORITY, OR ANY SUBSIDIARY OR OTHER AUTHORITY
CREATED BY THE AUTHORITY, AND THE USE BY AUTHORITY EMPLOYEES  AND  BOARD
MEMBERS   OF   LIVERY  VEHICLES,  AS  DEFINED  IN  SECTION  ONE  HUNDRED
TWENTY-ONE-E OF THE VEHICLE AND TRAFFIC LAW; AND (III),  THE  SELECTION,
RETENTION  AND  COMPENSATION  OF OUTSIDE LEGAL COUNSEL AND OTHER PROFES-
SIONALS BY AND FOR THE AUTHORITY, OR ANY SUBSIDIARY OR  OTHER  AUTHORITY
CREATED  BY  THE  AUTHORITY,  WHERE  TOTAL  CHARGES  UNDER  THE RETAINER
CONTRACT MAY EXCEED ONE-HALF MILLION DOLLARS, WITH SUFFICIENT DETAIL  TO
IDENTIFY  THE FIRMS ENGAGED; THE DISTINCT MATTER OR MATTERS AND PURPOSES
FOR WHICH THEY ARE ENGAGED; THE HOURLY OR OTHER  RATES  CHARGED  BY  ALL
PROFESSIONALS TO THE AUTHORITY; AND THE TOTAL CHARGES BILLED BY AND PAID
TO  SUCH  FIRMS  BY  THE  AUTHORITY, IN THE CURRENT REPORTING PERIOD AND
SINCE THE INCEPTION OF THE MATTER OR MATTERS. IN  CONNECTION  THEREWITH,
AND  ON  AT  LEAST  AN  ANNUAL BASIS HEREAFTER, THE AUTHORITY SHALL MAKE
PUBLICLY AVAILABLE ON ITS WEBSITE DETAILED INFORMATION WITH  RESPECT  TO
THE  AUTHORITY'S USE AND COSTS FOR SUCH SERVICES, INCLUDING THE SPECIFIC
INFORMATION REQUIRED HEREINABOVE.
  S 9. The public  authorities  law  is  amended  by  adding  three  new
sections 1276-b, 1276-c and 1276-d to read as follows:
  S  1276-B.  COMPTROLLER AUDIT.   THE STATE COMPTROLLER OR ITS DESIGNEE
MAY FROM TIME TO TIME, UPON THE REQUEST OF THE GOVERNOR,  THE  TEMPORARY
PRESIDENT  OF THE SENATE OR THE SPEAKER OF THE ASSEMBLY OR ON HIS OR HER
OWN INITIATIVE, EXAMINE THE BOOKS, RECORDS AND ACCOUNTS OF THE  AUTHORI-
TY,  AND ANY OTHER MATTERS RELATING TO ITS FINANCIAL OPERATIONS, INCLUD-
ING, BUT NOT LIMITED TO, THE AUTHORITY'S  BASIS  FOR  ANY  FEE  OR  TOLL
INCREASE,  AND  REPORT  THE RESULTS OF EACH EXAMINATION TO THE GOVERNOR,
THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY,  THE
CHAIRS  OF  THE SENATE AND ASSEMBLY COMMITTEES ON CORPORATIONS, AUTHORI-
TIES AND COMMISSIONS AND THE CHAIRS OF THE SENATE AND  ASSEMBLY  COMMIT-
TEES ON TRANSPORTATION.
  S  1276-C.  AUTHORITY BUDGET AND FINANCIAL PLAN. 1. IN ADDITION TO THE
REQUIREMENTS OF SECTION TWENTY-EIGHT HUNDRED TWO OF THIS  CHAPTER,  EACH
AUTHORITY  BUDGET AND PLAN SHALL BE POSTED ON ITS WEBSITE AND SHALL: (A)
PRESENT INFORMATION RELATING TO THE AUTHORITY AND EACH OF  ITS  AGENCIES
IN  A CLEAR AND CONSISTENT MANNER AND FORMAT; (B) BE PREPARED IN ACCORD-
ANCE WITH GENERALLY ACCEPTED ACCOUNTING  PRINCIPLES;  (C)  BE  BASED  ON
REASONABLE  ASSUMPTIONS AND METHODS OF ESTIMATION; (D) INCLUDE ESTIMATES
OF PROJECTED OPERATING REVENUES AND EXPENSES; (E) IDENTIFY  ANY  PLANNED
TRANSACTION THAT WOULD SHIFT RESOURCES, FROM ANY SOURCE, FROM ONE FISCAL
YEAR  TO  ANOTHER,  AND  THE  AMOUNT  OF ANY RESERVES; AND (F) CONTAIN A
SUMMARY IN PLAIN ENGLISH OF THE PRINCIPAL INFORMATION IN THE BUDGET  AND
CONCLUSIONS TO BE DRAWN FROM IT.
  2.  SUPPORTING  DOCUMENTATION.  THE  AUTHORITY  SHALL PREPARE AND MAKE
AVAILABLE FOR PUBLIC INSPECTION ON ITS WEBSITE INFORMATION THAT  DETAILS
THE  SOURCES  OF DATA AND THE ASSUMPTIONS AND METHODS OF ESTIMATION USED
TO CALCULATE ALL OPERATING AND CAPITAL  BUDGET  PROJECTIONS,  CONSISTENT
WITH GENERALLY ACCEPTED BUDGETARY PRACTICES.
  3.  THE  AUTHORITY  SHALL  ESTABLISH  AT  LEAST ANNUALLY THE QUARTERLY
REVENUE AND EXPENSE TARGETS FOR THE AUTHORITY, AND FOR  EACH  SUBSIDIARY

S. 4487--A                         22

OR  OTHER  AUTHORITY  CREATED  BY  THE AUTHORITY ITSELF AND FOR WHICH IT
REPORTS FINANCIAL DATA.
  4.  MONITORING  THE  BUDGET  AND  FINANCIAL  PLAN. THE AUTHORITY SHALL
PREPARE AND MAKE AVAILABLE FOR PUBLIC INSPECTION ON ITS  WEBSITE:    (A)
WITHIN  SIXTY  DAYS OF THE RELEASE OF THE ADOPTED BUDGET AND ANY UPDATES
TO THE BUDGET (EXCEPT UPDATES RELEASED WITHIN NINETY DAYS OF  THE  CLOSE
OF  THE FISCAL YEAR), MONTHLY PROJECTIONS FOR THE CURRENT FISCAL YEAR OF
ALL REVENUES AND EXPENSES, STAFFING FOR THE AUTHORITY AND  EACH  OF  ITS
AGENCIES,  AND  UTILIZATION  FOR  EACH  OF THE AUTHORITY'S AGENCIES THAT
OPERATE TRANSPORTATION SYSTEMS, INCLUDING BRIDGES AND TUNNELS; AND  (B),
WITHIN  THIRTY DAYS AFTER THE CLOSE OF EACH QUARTER, (I) A COMPARISON OF
ACTUAL REVENUES AND EXPENSES, ACTUAL STAFFING AND ACTUAL UTILIZATION  TO
PLANNED  OR  PROJECTED  LEVELS FOR EACH OF THE AUTHORITY'S AGENCIES THAT
OPERATE TRANSPORTATION SYSTEMS, INCLUDING BRIDGES AND TUNNELS,  WITH  AN
EXPLANATION OF EACH MATERIAL VARIANCE AND ITS BUDGETARY IMPACT; (II) THE
STATUS  OF  EACH  GAP-CLOSING  INITIATIVE WITH A PROJECTED VALUE GREATER
THAN ONE MILLION DOLLARS IN ANY GIVEN FISCAL YEAR; AND (III) THE  STATUS
OF  CAPITAL  PROJECTS  BY  CAPITAL ELEMENT, INCLUDING BUT NOT LIMITED TO
COMMITMENTS, EXPENDITURES AND COMPLETIONS, AND AN EXPLANATION OF MATERI-
AL VARIANCES FROM THE PLAN, COST OVERRUNS AND DELAYS.
  5. STRATEGIC OPERATION PLAN.  FINANCIAL  INFORMATION  REQUIRED  TO  BE
SUBMITTED BY THE AUTHORITY PURSUANT TO PARAGRAPHS D AND E OF SUBDIVISION
ONE  OF  SECTION  TWELVE  HUNDRED  SIXTY-NINE-D  OF  THIS TITLE SHALL BE
PRESENTED IN A FORMAT CONSISTENT WITH THE BUDGET AND PLAN, IN DOWNLOADA-
BLE, SEARCHABLE FORMAT, IN THE SAME LEVEL OF DETAIL AS  IS  PROVIDED  TO
STAFF AND MEMBERS OF THE AUTHORITY.
  S  1276-D.  INDEPENDENT  AUDIT OF AUTHORITY.   THE INDEPENDENT AUDITOR
RETAINED BY THE AUTHORITY SHALL NOT PROVIDE TO THE AUTHORITY,  CONTEMPO-
RANEOUSLY  WITH  THE  AUDIT SERVICES, ANY NON-AUDIT SERVICE OF ANY KIND,
INCLUDING, BUT NOT LIMITED TO:
  1. ROUTINE BOOKKEEPING OR OTHER SERVICES;
  2. FINANCIAL INFORMATION SYSTEMS DESIGN AND IMPLEMENTATION;
  3. APPRAISAL OR VALUATION SERVICES, FAIRNESS  OPINIONS,  OR  CONTRIBU-
TION-IN-KIND REPORTS;
  4. ACTUARIAL SERVICES;
  5. OUTSOURCING SERVICES;
  6. AUTHORITY MANAGEMENT FUNCTIONS OR HUMAN RESOURCES;
  7. BROKER   OR   DEALER,  INVESTMENT  ADVISOR  OR  INVESTMENT  BANKING
SERVICES;
  8. LEGAL SERVICES AND EXPERT SERVICES UNRELATED TO THE AUDIT;
  9. ANY SERVICE THAT WOULD  PRESENT  A  CONFLICT  OF  INTEREST  OR  THE
APPEARANCE OF A CONFLICT OF INTEREST.
  S  10.  The  public authorities law is amended by adding a new section
1279-c to read as follows:
  S 1279-C. THE OFFICE OF LEGISLATIVE AND COMMUNITY INPUT. 1. THE CHAIR-
MAN OF THE AUTHORITY SHALL  ESTABLISH  THE  OFFICE  OF  LEGISLATIVE  AND
COMMUNITY  INPUT  FOR  THE  PURPOSE OF COMMUNICATING INFORMATION TO, AND
RECEIVING COMMENTS, CONCERNS AND RECOMMENDATIONS FROM,  MEMBERS  OF  THE
LEGISLATURE, AND MEMBERS OF THE PERMANENT CITIZENS ADVISORY COMMITTEE TO
THE  AUTHORITY  COMPOSED  OF  THE  MEMBERS  OF THE NEW YORK CITY TRANSIT
AUTHORITY ADVISORY COUNCIL, THE MEMBERS OF THE  LONG  ISLAND  RAIL  ROAD
COMMUTER'S COUNCIL, AND THE MEMBERS OF THE METRO-NORTH COMMUTER COUNCIL,
ON  THE  OPERATIONS OF THE RAPID TRANSIT, OMNIBUS AND COMMUTER RAIL LINE
FACILITIES OF THE AUTHORITY, INCLUDING, BUT NOT LIMITED TO:
  (A) THE QUALITY AND FREQUENCY OF SERVICE PROVIDED ON  THE  AUTHORITY'S
MASS TRANSIT FACILITIES;

S. 4487--A                         23

  (B)  THE  MAINTENANCE  AND  CONDITION  OF THE AUTHORITY'S MASS TRANSIT
FACILITIES, INCLUDING, BUT NOT LIMITED TO, RAPID  TRANSIT  AND  COMMUTER
RAIL  STATIONS, RAILCARS, BUSES, RAIL LINES, FARE COLLECTION SYSTEMS AND
SOUND SYSTEMS; AND
  (C) PROPOSED SERVICE CHANGES, INCLUDING ANY REDUCTIONS OR EXPANSION OF
SERVICES, AS IT RELATES TO THE AUTHORITY'S MASS TRANSIT FACILITIES.
  2.  THE OFFICE SHALL ESTABLISH A PROCESS TO ENSURE TIMELY NOTIFICATION
OF THE RECEIPT OF, AND RESPONSE TO, COMMENTS, CONCERNS, AND  RECOMMENDA-
TIONS BY MEMBERS OF THE LEGISLATURE OR MEMBERS OF THE PERMANENT CITIZENS
ADVISORY  COMMITTEE TO THE AUTHORITY WHICH SHALL BE TAKEN INTO CONSIDER-
ATION IN THE DEVELOPMENT OF EACH CAPITAL PROGRAM PLAN AND/OR ANY  AMEND-
MENT TO SUCH PLAN.
  3.  THE  OFFICE SHALL PREPARE A REPORT CONTAINING A COMPILATION OF THE
COMMENTS, CONCERNS, AND RECOMMENDATIONS RECEIVED BY THE OFFICE, AND  HOW
THESE COMMENTS, CONCERNS OR RECOMMENDATIONS WERE OR WILL BE ADDRESSED.
  SUCH REPORT SHALL BE SUBMITTED ON A BIENNIAL BASIS, COMMENCING SEPTEM-
BER  FIRST,  TWO THOUSAND NINE, TO THE GOVERNOR, THE TEMPORARY PRESIDENT
OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY, BE POSTED ON THE AUTHORI-
TY'S WEBSITE AND BE MADE READILY AVAILABLE TO THE PUBLIC.
  S 11. Subdivision 1 of section 2824 of the public authorities law,  as
added by chapter 766 of the laws of 2005, is amended to read as follows:
  1.  Board  members  of  state  and local authorities shall (a) execute
direct oversight of the authority's [chief executive] CHAIRMAN and other
senior management in the effective and ethical management of the author-
ity; (b) understand, review and monitor the implementation of  fundamen-
tal  financial  and management controls and operational decisions of the
authority; (c) establish  policies  regarding  the  payment  of  salary,
compensation and reimbursements to, and establish rules for the time and
attendance  of,  the  chief executive and senior management; (d) adopt a
code of ethics applicable to each officer, director and  employee  that,
at a minimum, includes the standards established in section seventy-four
of  the  public  officers law; (e) establish written policies and proce-
dures on personnel including policies protecting employees from  retali-
ation  for disclosing information concerning acts of wrongdoing, miscon-
duct, malfeasance, or other inappropriate behavior  by  an  employee  or
board  member  of the authority, investments, travel, the acquisition of
real property and the disposition of real and personal property and  the
procurement of goods and services; [and] (f) adopt AND MAINTAIN IN FORCE
a  defense and indemnification policy [and disclose such plan to any and
all prospective board members]  OF  INSURANCE  FOR  BOARD  MEMBERS;  (G)
DISCHARGE  EACH  OF THEIR DUTIES AS BOARD MEMBERS IN GOOD FAITH AND WITH
THAT DEGREE OF INDEPENDENCE, DILIGENCE, CARE AND SKILL WHICH AN ORDINAR-
ILY PRUDENT PERSON WOULD EXERCISE UNDER SIMILAR CIRCUMSTANCES IN A  LIKE
POSITION, PROVIDED, HOWEVER, THAT ANY OTHERWISE LAWFUL AND PROPER ACTION
TAKEN  BY  A  BOARD MEMBER AFTER DISCLOSURE OF SUCH MEMBER'S CONFLICT OF
INTEREST BASED ON HIS OR HER PUBLIC OFFICE SHALL  NOT  BE  CONSIDERED  A
FAILURE TO FULFILL HIS OR HER FIDUCIARY DUTIES; AND (H) AT THE TIME THAT
THE  MEMBER  TAKES  AND  SUBSCRIBES HIS OR HER OATH OF OFFICE, OR WITHIN
SIXTY DAYS AFTER THE EFFECTIVE DATE OF THIS PARAGRAPH IF THE MEMBER  HAS
ALREADY  TAKEN  AND  SUBSCRIBED  HIS  OR  HER OATH OF OFFICE, EXECUTE AN
ACKNOWLEDGMENT THAT THE BOARD MEMBER UNDERSTANDS HIS OR HER INDEPENDENCE
AND FIDUCIARY DUTIES, INCLUDING LOYALTY AND CARE TO THE ORGANIZATION AND
COMMITMENT TO THE AUTHORITY'S MISSION.
  S 12. Section 1266-c of the  public  authorities  law  is  amended  by
adding a new subdivision 15 to read as follows:

S. 4487--A                         24

  15.  (A)  IN  THE  PERFORMANCE  OF PROJECTS PURSUANT TO THIS TITLE THE
AUTHORITY SHALL, TO THE EXTENT PRACTICABLE AND CONSISTENT  WITH  FEDERAL
LAW:
  (1)  PURCHASE  GOODS AND SERVICES THAT ARE PRODUCED OR MANUFACTURED IN
NEW YORK STATE; AND
  (2) REQUIRE ANY  CONTRACTOR  DOING  BUSINESS  WITH  THE  AUTHORITY  TO
PURCHASE  GOODS  AND  SERVICES  THAT ARE PRODUCED OR MANUFACTURED IN NEW
YORK STATE.
  (B) THE AUTHORITY SHALL WITHIN  ONE  HUNDRED  TWENTY  DAYS  AFTER  THE
EFFECTIVE  DATE  OF THIS SUBDIVISION PROMULGATE RULES AND REGULATIONS TO
EFFECT THE PURPOSES OF THIS SUBDIVISION.
  (C) THE AUTHORITY SHALL WAIVE ANY PROVISION OF  THIS  SUBDIVISION,  OR
ANY  RULE OR REGULATION PROMULGATED PURSUANT TO IT IF IT DETERMINES THAT
SUCH PROVISION OR RULE OR REGULATION CANNOT BE COMPLIED WITH IN CONFORM-
ITY WITH ANY FEDERAL RULE OR REQUIREMENT.
  S 13. This act shall take effect immediately; provided,  however,  the
amendments  to  paragraph  (a)  of  subdivision 1 of section 1263 of the
public authorities law made by section  three  of  this  act  shall  not
affect  the  expiration  and  reversion  of  such paragraph and shall be
deemed to expire therewith.
  S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be  adjudged  by  any  court  of
competent  jurisdiction  to  be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall  be  confined  in
its  operation  to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would  have  been  enacted  even  if  such
invalid provisions had not been included herein.
  S  3.  This  act shall take effect immediately provided, however, that
the applicable effective date of Parts A through G of this act shall  be
as specifically set forth in the last section of such Parts.