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

                                  2978

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            January 21, 2011
                               ___________

Introduced  by M. of A. ZEBROWSKI, GUNTHER, JAFFEE -- Multi-Sponsored by
  -- M. of A. RABBITT -- read once and  referred  to  the  Committee  on
  Corporations, Authorities and Commissions

AN  ACT to amend the public authorities law, in relation to the election
  by certain counties to withdraw from the metropolitan commuter  trans-
  portation district; and in relation to permitting the county of Putnam
  to make such election

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

  Section 1. Section 1279-b of the public authorities law, as  added  by
chapter 669 of the laws of 1986, the opening paragraph of subdivision 1,
the opening paragraph of paragraph (a) of subdivision 1 and subdivisions
3  and  5  as  amended by chapter 670 of the laws of 1986, is amended to
read as follows:
  S 1279-b.  Transition--election  to  withdraw  from  the  metropolitan
commuter  transportation  district. 1. The counties of Dutchess, Orange,
PUTNAM and Rockland shall have an option to withdraw from the  metropol-
itan  commuter  transportation  district  and  have such withdrawal take
effect on either: (a) [January] APRIL first, [nineteen  hundred  eighty-
seven]  TWO THOUSAND THIRTEEN. If any such county plans to withdraw from
the district on [January] APRIL first, [nineteen  hundred  eighty-seven]
TWO  THOUSAND  THIRTEEN,  it  shall  (i) no later than seventy-five days
after the effective date of this section, furnish  the  commissioner  of
transportation,  and  chairman  of  the authority and the other counties
which have an option to withdraw, a resolution  adopted  by  the  county
legislature  providing  notice  of intent to withdraw, (ii) on or before
[October] JANUARY first,  [nineteen  hundred  eighty-six]  TWO  THOUSAND
TWELVE,  furnish  to the commissioner of transportation, the chairman of
the authority and other counties which have an  option  to  withdraw,  a
resolution  adopted  by  the  county  legislature providing for a public
transportation plan. For the purposes of this section, a "public  trans-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00747-01-1
              

A. 2978                             2

portation plan" shall mean a plan that maintains adequate and continuous
public  transportation  services from the withdrawing county to the city
of New York or any terminus previously  served,  provides  a  reasonable
level  of  rail  passenger service, provides a schedule for implementing
such service, protects the public investment in the rail  transportation
system  and  any  other criteria deemed necessary by the commissioner of
transportation. SUCH PUBLIC TRANSPORTATION PLAN SHALL INCLUDE,  BUT  NOT
BE  LIMITED  TO,  AN AGREEMENT BY WHICH SUCH COUNTY SHALL BE ENTITLED TO
LEASE THE FACILITIES AND SERVICES COMPRISING  SUCH  RAIL  TRANSPORTATION
SYSTEM  AT  FAIR  MARKET VALUE AND UNDER SUCH TERMS AND CONDITIONS TO BE
DETERMINED AS SET FORTH IN SUBDIVISION SIX OF  THIS  SECTION.  Prior  to
withdrawal  pursuant to this paragraph or paragraph (b) of this subdivi-
sion, a county must receive approval of its public  transportation  plan
pursuant to paragraph (c) of this subdivision, (iii) on or before Decem-
ber  fifteenth,  [nineteen  hundred  eighty-six]  TWO  THOUSAND  TWELVE,
furnish the commissioner of transportation, a copy of an agreement  with
the authority or an operator of rail passenger service for the provision
of  rail  passenger  service to and from such county and the city of New
York or any terminus previously served. IF SUCH AGREEMENT HAS  NOT  BEEN
CONCLUDED  BY  THE  RESPECTIVE  PARTIES,  AND  A PARTY HAS EXERCISED ITS
RIGHTS PURSUANT TO SUBDIVISION SIX OF THIS SECTION, THE APPROVAL OF  THE
COMMISSIONER  OF  TRANSPORTATION SHALL NOT BE REQUIRED AND THE AGREEMENT
OR ORDER SET FORTH IN SUBDIVISION SIX OF THIS SECTION,  SHALL  DETERMINE
THE TERMS AND CONDITIONS OF SUCH WITHDRAWAL.
  If  a  county planning to withdraw on [January] APRIL first, [nineteen
hundred eighty-seven]  TWO  THOUSAND  THIRTEEN  is  unable  to  withdraw
because  it  could  not  meet the requirements of this paragraph, it may
elect to withdraw pursuant to paragraph (b) of this subdivision hereaft-
er.
  (b) January first, [nineteen hundred eighty-eight] TWO THOUSAND  FOUR-
TEEN  or  January  first,  [nineteen  hundred  eighty-nine] TWO THOUSAND
FIFTEEN.  If any such county plans to withdraw on either January  first,
[nineteen  hundred eighty-eight] TWO THOUSAND FOURTEEN or January first,
[nineteen hundred eighty-nine] TWO THOUSAND FIFTEEN,  it  shall  (i)  no
later than ninety days after the first of January of the year immediate-
ly  preceding  the  year in which such county plans to withdraw from the
district, furnish the commissioner of transportation,  the  chairman  of
the authority and the other counties which have an option to withdraw, a
resolution  adopted by the county legislature providing notice of intent
to withdraw from the district, (ii) no later  than  one  hundred  twenty
days  after  the  first of January of the year immediately preceding the
year in which such county plans to withdraw from the district furnish to
the commissioner of transportation, the chairman of  the  authority  and
the  counties  which  have an option to withdraw a resolution adopted by
the  county  legislature  providing  a  public  transportation  plan  as
described  in this section, (iii) on or before October first of the year
immediately preceding the year in which such county  plans  to  withdraw
from  the  district,  furnish to the commissioner a copy of an agreement
with the authority or an operator of  rail  passenger  service  for  the
provision of rail passenger service to and from such county and the city
of  New  York  or any terminus previously served.  IF SUCH AGREEMENT HAS
NOT BEEN CONCLUDED BY THE RESPECTIVE PARTIES, AND A PARTY HAS  EXERCISED
ITS  RIGHTS PURSUANT TO SUBDIVISION SIX OF THIS SECTION, THE APPROVAL OF
THE COMMISSIONER OF TRANSPORTATION SHALL NOT BE REQUIRED AND THE  AGREE-
MENT  OR  ORDER  SET  FORTH  IN SUCH SUBDIVISION SIX SHALL DETERMINE THE
TERMS AND CONDITIONS OF SUCH WITHDRAWAL.

A. 2978                             3

  (c) No later than thirty days after receipt of the public  transporta-
tion  plan  the commissioner of transportation shall, in writing, either
approve  such  plan  as  conforming  with  the  requirements  heretofore
described  or  disapprove such plan as failing to meet such requirements
and  the  reasons  therefor.  Disapproval of a plan shall not prohibit a
county from resubmitting a public transportation plan and such resubmit-
ted plan shall be approved or disapproved no  later  than  fifteen  days
after  receipt  by the commissioner of transportation. The public trans-
portation plan shall be subject to any state or federal  public  hearing
requirements  which  the  authority would be subject to if the authority
made the changes proposed by such plan.
  (d) Any such county which plans to withdraw  from  the  district  must
meet  the  requirements  of  this section prior to the effective date of
withdrawal, and no withdrawal for the purposes  of  this  section  shall
take  effect  unless such county furnishes the resolutions and agreement
prior to the effective date of withdrawal.
  2. The authority and any subsidiary corporation of the authority shall
enter into an agreement or agreements with a county that plans to  with-
draw from the district to transfer and assign to such county all author-
ity  and subsidiary railroad facilities and operations, rights and obli-
gations,  and  contract  rights  and  obligations,  including  operating
contract  rights  and obligations, which are owned, operated, maintained
or used directly or by contract or which are otherwise involved  in  the
provision  of  railroad  services to such counties. Such agreement shall
provide, in the event a facility,  operation,  right  or  obligation  is
necessary and material to the provision of rail passenger service in the
district  or  is  not  assignable  under  applicable  bond  covenants or
contracts or the parties agree that it should not be assigned, that  the
authority  or subsidiary thereof shall continue to hold and be responsi-
ble for such facility, operation, right  or  obligation  and  that  such
county  shall reimburse to the authority that portion of the cost to the
authority or subsidiary of its retention of  such  facility,  operation,
right  or  obligation  that is allocable [to] WITHIN such county. If the
parties agree that the authority or subsidiary thereof shall operate the
railroad facilities in a county after the effective date of  such  coun-
ty's  withdrawal,  the  agreement  also  shall provide for the terms and
conditions of the operation of such service.
  3. Within forty-five days of the effective date of this  section,  the
authority  and any subsidiary corporation of the authority shall provide
to the counties of Dutchess,  Orange,  PUTNAM  and  Rockland  a  written
statement,  including cost estimates and the useful life, if any, of all
of its facilities, operations, rights and obligations  relating  to  the
provision of rail service in such counties.
  4.  The  authority  and any subsidiary corporation of the authority is
authorized to enter into an agreement or agreements with a  county  that
plans  to withdraw from the district, pursuant to which the authority or
subsidiary thereof will provide  technical  assistance  to  such  county
prior  to, during and after the withdrawal, with respect to the transfer
of ownership, operation, maintenance  and  use  of  railroad  facilities
within such county. Such agreement may provide that the county reimburse
the  authority  or  its subsidiary for the cost to the authority and its
subsidiary for the provision of such technical assistance.
  5. The authority shall have no obligation to undertake or continue any
project or part thereof in a current  or  future  capital  program  plan
which  pertains  to  railroad  facilities within or services to a county
that withdraws from the district on or after such date of withdrawal nor

A. 2978                             4

shall the authority enter into any contract for a project or part there-
of which would increase liabilities pursuant to subdivision [six]  SIX-A
of  this section in a county after such county notifies the authority of
its  intent  to withdraw as provided in subdivision one of this section,
provided, however, that if the authority has executed a contract for the
effectuation of a project or part thereof in a capital program  plan  in
such  county,  it  shall  be  assigned to such county in accordance with
subdivision two of this section, unless the parties agree that it  shall
not  be assigned and that the authority or its subsidiary shall continue
to be responsible therefor, in which event the  county  shall  reimburse
the  authority  or  its  subsidiary in accordance with the provisions of
subdivision two of this section.
  6. SHOULD THE COUNTIES OF DUTCHESS, ORANGE, PUTNAM OR ROCKLAND SEEK TO
WITHDRAW FROM THE DISTRICT PURSUANT TO THIS SECTION, ANY SUCH COUNTY AND
THE AUTHORITY, AND/OR, IF APPROPRIATE ANY SUBSIDIARY CORPORATION OF  THE
AUTHORITY  SHALL  NEGOTIATE IN GOOD FAITH ANY AGREEMENT REQUIRED BY THIS
SECTION FOR  WITHDRAWAL  FROM  THE  DISTRICT.  SUCH  NEGOTIATIONS  SHALL
COMMENCE  NOT  LATER  THAN  FIFTEEN DAYS AFTER THE PUBLIC TRANSPORTATION
PLAN PREPARED BY ANY SUCH COUNTY HAS BEEN SUBMITTED BY  SUCH  COUNTY  TO
THE  AUTHORITY,  AND/OR,  IF  APPROPRIATE, A SUBSIDIARY AUTHORITY. IN NO
EVENT SHALL A COUNTY BE REQUIRED TO NEGOTIATE WITH  BOTH  THE  AUTHORITY
AND  A  SUBSIDIARY  AUTHORITY.  THE  NEGOTIATIONS  CONDUCTED  BY AND THE
ACTIONS OF THE AUTHORITY OR SUBSIDIARY AUTHORITY SHALL BE BINDING.    IF
AFTER  SIXTY  DAYS  FROM THE COMMENCEMENT OF SUCH NEGOTIATIONS OR AT ANY
TIME THEREAFTER THE AUTHORITY  OR  ANY  SUBSIDIARY  CORPORATION  OF  THE
AUTHORITY AND A COUNTY ARE UNABLE TO REACH AN AGREEMENT REQUIRED BY THIS
SECTION  FOR  SUCH  WITHDRAWAL,  EITHER  PARTY MAY MAKE APPLICATION TO A
JUSTICE OF THE SUPREME COURT PRESIDING  IN  THE  COUNTIES  OF  DUTCHESS,
ORANGE,  PUTNAM  OR  ROCKLAND FOR APPOINTMENT OF A SPECIAL REFEREE. EACH
PARTY SHALL SUBMIT TO THE JUSTICE A LIST CONTAINING THE NAMES AND QUALI-
FICATIONS OF FIVE PERSONS TO SERVE AS SPECIAL REFEREE. THE JUSTICE SHALL
SELECT ONE PERSON FROM AMONG THE NAMES SUBMITTED BY THE PARTIES TO SERVE
AS SPECIAL REFEREE. THE SPECIAL REFEREE SHALL MEDIATE  THE  NEGOTIATIONS
FOR WITHDRAWAL FOR A PERIOD OF NO LONGER THAN SIXTY DAYS. IF, AT THE END
OF  SAID  SIXTY DAY PERIOD, THE PARTIES ARE NOT ABLE TO REACH AGREEMENT,
THE SPECIAL REFEREE SHALL, WITHIN THIRTY DAYS THEREAFTER, RECOMMEND  THE
TERMS  OF  THE  WITHDRAWAL  TO THE JUSTICE. THE JUSTICE SHALL REVIEW THE
RECOMMENDATIONS OF THE REFEREE AND THE POSITIONS OF THE PARTIES  THEREON
AND  SHALL  ISSUE  AN  ORDER  SETTING FORTH THE TERMS OF THE WITHDRAWAL.
NOTWITHSTANDING THE ENTRY OF SUCH ORDER, A  COUNTY  SHALL  HAVE  FIFTEEN
DAYS FROM THE ENTRY OF SUCH ORDER TO TERMINATE SUCH PROCEEDING. UPON THE
TIMELY  EXERCISE  OF  SUCH  RIGHT TO TERMINATE, SUCH PROCEEDING SHALL BE
DEEMED NULL AND VOID AND OF NO FURTHER EFFECT. IF A COUNTY HAS NOT EXER-
CISED ITS RIGHT TO TERMINATE, SAID ORDER SHALL BE SUBJECT  TO  APPELLATE
REVIEW  IN  ACCORDANCE  WITH  THE CIVIL PRACTICE LAW AND RULES, PROVIDED
THAT ANY APPEAL FROM THE ORDER SHALL BE GRANTED EXPEDITED STATUS.
  6-A. Any county which withdraws from the district shall  reimburse  to
the authority or its subsidiary, within the time period agreed to by the
parties, any capital expenditures heretofore undertaken by the authority
or  its subsidiary for railroad facilities only within such county which
were financed by commuter railroad revenue bonds issued by the metropol-
itan transportation authority pursuant to section twelve hundred  sixty-
nine  of this [article] TITLE and are assigned to such county in accord-
ance with the provisions of subdivision two of this section.
  [7.] 6-B. The obligations of a county that withdraws from the district
to reimburse the authority and any subsidiary corporation of the author-

A. 2978                             5

ity for the  costs  of  operation,  maintenance  and  use  of  passenger
stations pursuant to section twelve hundred seventy-seven of this [arti-
cle]  TITLE, shall continue for any such costs incurred up to the effec-
tive  date  of  the  county's withdrawal from the district and for costs
incurred thereafter that result from acts preceding such withdrawal, and
the applicability of the  payment  provisions  and  procedures  of  such
section twelve hundred seventy-seven to such county shall continue ther-
eafter with respect to the aforesaid costs.
  [8.]  7.  In  the  event  of a county's failure to make payment of any
monies determined by the authority to be owed and due it or any  subsid-
iary corporation of the authority pursuant to the terms of any agreement
entered  into  pursuant  to this section, the authority is authorized to
recover such payments in the same manner as in  section  twelve  hundred
seventy-seven  of  this  [article] TITLE and the state comptroller shall
withhold and pay monies to the authority in accordance with  the  proce-
dures set forth in that section.
  8.  THE  AUTHORITY SHALL MAKE PAYMENT TO THE COUNTY THAT WITHDRAWS FOR
THE DIFFERENCE IN THE AMOUNT OF SERVICES RECEIVED FROM THE AUTHORITY AND
MONIES PAID BY THE COUNTY  TO  THE  AUTHORITY,  THIS  PAYMENT  SHALL  BE
EXTRAPOLATED  OVER  THE PREVIOUS FIVE YEARS FROM THE DATE OF WITHDRAWAL.
IF THE AUTHORITY FAILS TO MAKE SUCH PAYMENT TO THE  COUNTY,  THE  AMOUNT
OWED  SHALL  BE WITHHELD BY THE STATE COMPTROLLER FROM THE AUTHORITY AND
THE MONIES SHALL BE PAID TO THE COUNTY.
  9.  The term of office of any resident of a county that withdraws from
the district under this section, as a member of the board of the author-
ity, the Metro-North rail commuter council or  the  management  advisory
board,  which  is  based  upon residence in such county, shall terminate
upon the county's withdrawal and the office shall be deemed  vacant  and
filled in the manner provided by law.
  10.    The provisions of this section and all agreements undertaken in
accordance herewith shall be subject to the rights of the holders of any
outstanding bonds or notes issued by the authority.
  S 2. This act shall take effect immediately.