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

                                  7703

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              May 22, 2015
                               ___________

Introduced  by M. of A. BRENNAN -- read once and referred to the Commit-
  tee on Corporations, Authorities and Commissions

AN ACT to amend the public authorities law and the tax law, in  relation
  to  enacting  the metropolitan transportation infrastructure financing
  authority act of 2015

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

  Section  1.  Article  10-D of the public authorities law is amended by
adding a new title 4 to read as follows:
                                 TITLE 4
                       METROPOLITAN TRANSPORTATION
                   INFRASTRUCTURE FINANCING AUTHORITY
SECTION 3975. SHORT TITLE.
        3976. DEFINITIONS.
        3977. METROPOLITAN   TRANSPORTATION   INFRASTRUCTURE   FINANCING
                AUTHORITY.
        3978. ADMINISTRATION OF THE AUTHORITY.
        3979. GENERAL POWERS OF THE AUTHORITY.
        3980. BONDS OF THE AUTHORITY.
        3981. MONEYS OF THE AUTHORITY.
        3982. USE OF BOND PROCEEDS.
        3983. AGREEMENT WITH STATE.
        3984. BONDS AS LEGAL INVESTMENTS.
        3985. EXEMPTION FROM TAXATION.
        3986. AUDITS.
        3987. REMEDIES OF BONDHOLDERS.
        3988. ASSISTANCE  BY  STATE  OFFICERS,  DEPARTMENTS,  BOARDS AND
                COMMISSIONS.
        3989. APPLICABILITY.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11324-01-5

A. 7703                             2
              

  S 3975. SHORT TITLE. THIS TITLE SHALL BE KNOWN AND MAY BE CITED AS THE
"METROPOLITAN TRANSPORTATION INFRASTRUCTURE FINANCING AUTHORITY  ACT  OF
2015".
  S  3976.  DEFINITIONS.  FOR  THE  PURPOSES  OF  THIS TITLE, UNLESS THE
CONTEXT OTHERWISE REQUIRES:
  1. "AUTHORITY" OR "METROPOLITAN TRANSPORTATION INFRASTRUCTURE  FINANC-
ING  AUTHORITY"  MEANS  THE  PUBLIC  BENEFIT CORPORATION CREATED BY THIS
TITLE.
  2. "BONDS" MEANS BONDS, NOTES AND  OTHER  EVIDENCES  OF  INDEBTEDNESS,
ISSUED BY THE AUTHORITY.
  3. "COMPTROLLER" MEANS THE COMPTROLLER OF THE STATE OF NEW YORK.
  4.  "MTA"  MEANS THE METROPOLITAN TRANSPORTATION AUTHORITY ESTABLISHED
PURSUANT TO TITLE ELEVEN OF ARTICLE FIVE OF THIS CHAPTER.
  5. "PROJECT CAPITAL COSTS" OR "COSTS" MEANS COSTS  PROVIDING  FOR  THE
CONSTRUCTION,  RECONSTRUCTION,  ACQUISITION  OR INSTALLATION OF PHYSICAL
PUBLIC BETTERMENTS OR IMPROVEMENTS; OR  THE  COSTS  OF  ANY  PRELIMINARY
STUDIES,  APPRAISALS,  SURVEYS,  MAPS, PLANS, ESTIMATES AND HEARINGS; OR
COSTS FOR THE PREPARATION OF DESIGNS, SPECIFICATIONS, TESTING AND  ENVI-
RONMENTAL  IMPACT  STATEMENTS;  OR  COSTS  OF ENGINEERING; OR INCIDENTAL
COSTS, INCLUDING, BUT NOT LIMITED TO, LEGAL FEES, PRINTING OR ENGRAVING,
PUBLICATION OF NOTICES, TAKING OF TITLE,  APPORTIONMENT  OF  COSTS,  AND
INTEREST  DURING  CONSTRUCTION;  OR  ANY  UNDERWRITING  OR  OTHER  COSTS
INCURRED IN CONNECTION WITH THE FINANCING THEREOF.
  6. "REVENUES" MEANS THE TAX REVENUES AND ALL AID, RENTS, FEES,  CHARG-
ES, PAYMENTS AND THE INCOME AND RECEIPTS PAID OR PAYABLE TO THE AUTHORI-
TY.
  7. "STATE" MEANS THE STATE OF NEW YORK.
  8.  "TAX  REVENUES"  MEANS  THE TAXES PAID OR PAYABLE TO THE AUTHORITY
PURSUANT TO SECTION THIRTY-NINE HUNDRED EIGHTY-ONE  OF  THIS  TITLE  AND
SUCH  OTHER  REVENUES  AS  THE  AUTHORITY MAY DERIVE DIRECTLY FROM TAXES
IMPOSED AND COLLECTED BY THE STATE.
  S 3977. METROPOLITAN TRANSPORTATION INFRASTRUCTURE FINANCING  AUTHORI-
TY.  1.  THERE IS HEREBY CREATED THE METROPOLITAN TRANSPORTATION INFRAS-
TRUCTURE FINANCING AUTHORITY. THE AUTHORITY SHALL BE A CORPORATE GOVERN-
MENTAL  AGENCY  CONSTITUTING  A  PUBLIC  BENEFIT  CORPORATION   AND   AN
INSTRUMENTALITY OF THE STATE.
  2.  IN ACCORDANCE WITH THE PROVISIONS OF THIS TITLE, THE AUTHORITY MAY
ONLY FINANCE COSTS, INCLUDING THE  REFUNDING  OF  BONDS  ISSUED  BY  THE
AUTHORITY TO FINANCE COSTS, AND FUND RESERVES TO SECURE SUCH BONDS.
  3.  THE  AUTHORITY  SHALL CONTINUE UNTIL ALL ITS LIABILITIES HAVE BEEN
MET OR OTHERWISE DISCHARGED. UPON THE TERMINATION OF  THE  EXISTENCE  OF
THE AUTHORITY, ALL OF ITS RIGHTS AND PROPERTY SHALL PASS TO AND BE VEST-
ED IN THE STATE.
  S  3978.  ADMINISTRATION  OF  THE AUTHORITY. 1. THE AUTHORITY SHALL BE
ADMINISTERED BY SEVEN DIRECTORS: FIVE VOTING MEMBERS CONSISTING  OF  THE
DIRECTOR  OF  THE BUDGET, TWO MEMBERS APPOINTED BY THE GOVERNOR, AND ONE
EACH BY THE SPEAKER OF THE ASSEMBLY AND THE TEMPORARY PRESIDENT  OF  THE
SENATE;  AND  TWO NON-VOTING MEMBERS, ONE EACH APPOINTED BY THE MINORITY
LEADERS OF THE ASSEMBLY AND THE SENATE.
  2. THE MEMBERS OF THE BOARD SHALL APPOINT  ONE  OF  THE  DIRECTORS  TO
SERVE  AS  CHAIRPERSON  OF  THE AUTHORITY. THE CHAIRPERSON SHALL PRESIDE
OVER ALL MEETINGS OF THE DIRECTORS AND SHALL HAVE SUCH OTHER  DUTIES  AS
MAY BE FIXED BY THE DIRECTORS.
  3.  NOTWITHSTANDING ANY INCONSISTENT PROVISION OF ANY GENERAL, SPECIAL
OR LOCAL LAW, ORDINANCE, RESOLUTION OR CHARTER, NO  OFFICER,  MEMBER  OR
EMPLOYEE  OF  THE  STATE, ANY CITY, COUNTY, TOWN OR VILLAGE, ANY GOVERN-

A. 7703                             3

MENTAL ENTITY  OPERATING  ANY  PUBLIC  SCHOOL  OR  COLLEGE,  ANY  SCHOOL
DISTRICT  OR  ANY OTHER PUBLIC AGENCY OR INSTRUMENTALITY WHICH EXERCISES
GOVERNMENTAL POWERS UNDER THE LAWS OF THE STATE, SHALL  FORFEIT  HIS  OR
HER  OFFICE OR EMPLOYMENT BY REASON OF HIS OR HER ACCEPTANCE OF APPOINT-
MENT AS A DIRECTOR OF THE AUTHORITY, NOR SHALL SERVICE AS SUCH  DIRECTOR
BE DEEMED INCOMPATIBLE OR IN CONFLICT WITH SUCH OFFICE OR EMPLOYMENT.
  4.  NOTWITHSTANDING  ANY  INCONSISTENT PROVISION OF THIS CHAPTER, FIVE
DIRECTORS SHALL CONSTITUTE A QUORUM FOR THE TRANSACTION OF ANY  BUSINESS
OR  THE EXERCISE OF ANY POWER OF THE AUTHORITY. NO ACTION SHALL BE TAKEN
BY THE AUTHORITY EXCEPT PURSUANT TO A FAVORABLE VOTE OF  AT  LEAST  FIVE
DIRECTORS PRESENT AT A MEETING AT WHICH SUCH ACTION IS TAKEN. ANY DIREC-
TOR  MAY,  BY  WRITTEN INSTRUMENT, FILED WITH AND APPROVED AS TO FORM BY
THE AUTHORITY, DESIGNATE AN ALTERNATE TO PERFORM, IN THE ABSENCE OF SUCH
DIRECTOR, HIS OR HER DUTIES UNDER THIS TITLE.  THE  TERM  "DIRECTOR"  AS
USED  IN THIS TITLE SHALL INCLUDE SUCH ALTERNATES, EXCEPT THAT NO ALTER-
NATE MAY DESIGNATE AN ALTERNATE PURSUANT TO THIS SUBDIVISION. THE DESIG-
NATION OF SUCH ALTERNATES SHALL BE DEEMED TEMPORARY ONLY AND  SHALL  NOT
AFFECT  THE  CIVIL SERVICE OR RETIREMENT RIGHTS OF ANY PERSONS SO DESIG-
NATED.
  5. THE AUTHORITY SHALL APPOINT A TREASURER AND MAY APPOINT  OR  EMPLOY
OFFICERS,  EMPLOYEES  OR  AGENTS  AS  IT MAY REQUIRE AND PRESCRIBE THEIR
DUTIES.
  6. THE DIRECTORS SHALL NOT BE PAID A SALARY, BUT SHALL  BE  REIMBURSED
OR  PAID FOR ALL ACTUAL AND NECESSARY EXPENSES INCURRED IN THE DISCHARGE
OF THEIR DUTIES.
  S 3979. GENERAL POWERS OF THE AUTHORITY. EXCEPT AS  OTHERWISE  LIMITED
BY THIS TITLE, THE AUTHORITY SHALL HAVE THE FOLLOWING POWERS IN ADDITION
TO  THOSE  SPECIALLY  CONFERRED ELSEWHERE IN THIS TITLE, SUBJECT ONLY TO
AGREEMENTS WITH BONDHOLDERS:
  1. TO SUE AND BE SUED;
  2. TO HAVE A SEAL AND ALTER THE SAME AT PLEASURE;
  3. TO MAKE AND ALTER BY-LAWS FOR ITS ORGANIZATION AND MANAGEMENT  AND,
SUBJECT  TO AGREEMENTS WITH ITS BONDHOLDERS, TO MAKE AND ALTER RULES AND
REGULATIONS GOVERNING THE EXERCISE OF ITS POWERS AND FULFILLMENT OF  ITS
PURPOSES UNDER THIS TITLE;
  4.  TO  MAKE AND EXECUTE CONTRACTS AND ALL OTHER INSTRUMENTS OR AGREE-
MENTS NECESSARY OR CONVENIENT TO CARRY  OUT  ANY  POWERS  AND  FUNCTIONS
EXPRESSLY GIVEN IN THIS TITLE;
  5.  TO  COMMENCE  ANY ACTION TO PROTECT OR ENFORCE ANY RIGHT CONFERRED
UPON IT BY ANY LAW, CONTRACT OR OTHER AGREEMENT;
  6. TO BORROW MONEY AND ISSUE BONDS, OR TO  REFUND  THE  SAME,  AND  TO
PROVIDE FOR THE RIGHTS OF THE HOLDERS OF ITS OBLIGATIONS;
  7.  TO ACCEPT GIFTS, GRANTS, LOANS OR CONTRIBUTIONS OF FUNDS OR FINAN-
CIAL OR OTHER AID IN ANY FORM FROM THE CITY, STATE OR FEDERAL GOVERNMENT
OR ANY AGENCY OR INSTRUMENTALITY THEREOF, OR FROM ANY OTHER  SOURCE  AND
FOR  ANY  OF ITS CORPORATE PURPOSES IN ACCORDANCE WITH THE PROVISIONS OF
THIS TITLE;
  8. TO INVEST ANY FUNDS HELD IN RESERVES OR SINKING FUNDS, OR ANY FUNDS
NOT REQUIRED FOR IMMEDIATE USE OR DISBURSEMENT, AT THE DISCRETION OF THE
AUTHORITY;
  9. TO PLEDGE ALL OR ANY PART OF  ITS  REVENUES  AS  SECURITY  FOR  THE
PAYMENT  OF THE PRINCIPAL OF AND INTEREST ON ANY BONDS SO ISSUED AND ANY
AGREEMENTS MADE IN CONNECTION THEREWITH;
  10. TO APPOINT SUCH OFFICERS AND EMPLOYEES AS IT MAY REQUIRE  FOR  THE
PERFORMANCE OF ITS DUTIES AND TO FIX AND DETERMINE THEIR QUALIFICATIONS,
DUTIES,  AND COMPENSATION; AND TO RETAIN OR EMPLOY COUNSEL, AUDITORS AND

A. 7703                             4

PRIVATE FINANCIAL CONSULTANTS ON  A  CONTRACT  BASIS  OR  OTHERWISE  FOR
RENDERING PROFESSIONAL OR TECHNICAL SERVICES AND ADVICE; AND
  11.  TO DO ANY AND ALL THINGS NECESSARY OR CONVENIENT TO CARRY OUT ITS
PURPOSES AND EXERCISE THE POWERS EXPRESSLY GIVEN  AND  GRANTED  IN  THIS
TITLE  PROVIDED,  HOWEVER,  SUCH  AUTHORITY SHALL UNDER NO CIRCUMSTANCES
ACQUIRE, HOLD OR TRANSFER TITLE TO, LEASE, OWN  BENEFICIALLY  OR  OTHER-
WISE,  MANAGE, OPERATE OR OTHERWISE EXERCISE CONTROL OVER ANY REAL PROP-
ERTY, ANY IMPROVEMENT TO REAL PROPERTY OR  ANY  INTEREST  THEREIN  OTHER
THAN  A  LEASE  OF  OFFICE  SPACE  DEEMED  NECESSARY OR DESIRABLE BY THE
AUTHORITY.
  S 3980. BONDS OF THE AUTHORITY. 1. THE AUTHORITY SHALL HAVE THE  POWER
AND IS HEREBY AUTHORIZED FROM TIME TO TIME TO ISSUE BONDS, IN CONFORMITY
WITH APPLICABLE PROVISIONS OF THE UNIFORM COMMERCIAL CODE, IN SUCH PRIN-
CIPAL  AMOUNTS  AS  IT  MAY DETERMINE TO BE NECESSARY, NOT TO EXCEED THE
PRINCIPAL AGGREGATE AMOUNT OF EIGHT  BILLION  DOLLARS.    THE  AUTHORITY
SHALL  HAVE  THE  POWER  FROM  TIME  TO  TIME TO REFUND ANY BONDS OF THE
AUTHORITY BY THE ISSUANCE OF NEW BONDS WHETHER THE BONDS TO BE  REFUNDED
HAVE  OR HAVE NOT MATURED, AND MAY ISSUE BONDS PARTLY TO REFUND BONDS OF
THE AUTHORITY THEN OUTSTANDING. BONDS ISSUED BY THE AUTHORITY  SHALL  BE
PAYABLE  SOLELY  OUT  OF  THE  SPECIFIC  REVENUES OR OTHER MONEYS OF THE
AUTHORITY AS MAY BE DESIGNATED IN THE PROCEEDINGS OF THE AUTHORITY UNDER
WHICH THE BONDS SHALL BE AUTHORIZED TO BE ISSUED,  AND  SUBJECT  TO  ANY
AGREEMENTS WITH THE HOLDERS OF OUTSTANDING BONDS PLEDGING ANY PARTICULAR
REVENUES OR MONEYS.
  2.  SUCH  BONDS  SHALL  BE  AUTHORIZED BY RESOLUTION OF THE AUTHORITY,
SHALL BEAR SUCH DATE AND SHALL MATURE AT SUCH  TIME  OR  TIMES  AS  SUCH
RESOLUTION  MAY PROVIDE.   THE BONDS MAY BE ISSUED AS SERIAL BONDS OR AS
TERM BONDS OR AS A COMBINATION THEREOF.  THE BONDS SHALL  BEAR  INTEREST
AT SUCH RATE OR RATES, BE IN SUCH DENOMINATIONS AND IN SUCH FORM, EITHER
COUPON OR REGISTERED, CARRY SUCH REGISTRATION PRIVILEGES, BE EXECUTED IN
SUCH  MANNER,  BE  PAYABLE  IN  SUCH MEDIUM OF PAYMENT, AT SUCH PLACE OR
PLACES AND BE SUBJECT TO SUCH TERMS OF REDEMPTION AS SUCH RESOLUTION MAY
PROVIDE.
  3. ANY RESOLUTION OR RESOLUTIONS AUTHORIZING BONDS  OR  ANY  ISSUE  OF
BONDS  MAY  CONTAIN  PROVISIONS WHICH MAY BE A PART OF THE CONTRACT WITH
THE HOLDERS OF THE BONDS THEREBY AUTHORIZED AS TO:
  (A) PLEDGING ALL OR PART OF ITS  REVENUES,  TOGETHER  WITH  ANY  OTHER
MONEYS,  SECURITIES  OR  CONTRACTS,  TO SECURE THE PAYMENT OF THE BONDS,
SUBJECT TO SUCH AGREEMENTS WITH BONDHOLDERS AS MAY THEN EXIST;
  (B) THE SETTING ASIDE OF RESERVES AND THE CREATION  OF  SINKING  FUNDS
AND THE REGULATION AND DISPOSITION THEREOF;
  (C)  LIMITATIONS ON THE PURPOSE TO WHICH THE PROCEEDS FROM THE SALE OF
BONDS MAY BE APPLIED;
  (D) LIMITATIONS ON THE ISSUANCE OF ADDITIONAL BONDS,  THE  TERMS  UPON
WHICH  ADDITIONAL  BONDS  MAY BE ISSUED AND SECURED AND THE REFUNDING OF
BONDS;
  (E) THE PROCEDURE, IF ANY, BY WHICH THE TERMS  OF  ANY  CONTRACT  WITH
BONDHOLDERS  MAY  BE  AMENDED  OR ABROGATED, INCLUDING THE PROPORTION OF
BONDHOLDERS WHICH MUST CONSENT THERETO AND  THE  MANNER  IN  WHICH  SUCH
CONSENT MAY BE GIVEN; AND
  (F)  DEFINING  THE  ACTS  OR  OMISSIONS  TO ACT WHICH MAY CONSTITUTE A
DEFAULT IN THE OBLIGATIONS AND DUTIES OF THE AUTHORITY TO THE  BONDHOLD-
ERS  AND PROVIDING FOR THE RIGHTS AND REMEDIES OF THE BONDHOLDERS IN THE
EVENT OF SUCH DEFAULT, INCLUDING AS A MATTER OF RIGHT THE APPOINTMENT OF
A RECEIVER; PROVIDED, HOWEVER, THAT SUCH RIGHTS AND REMEDIES  SHALL  NOT

A. 7703                             5

BE  INCONSISTENT WITH THE GENERAL LAWS OF THE STATE AND OTHER PROVISIONS
OF THIS TITLE.
  4.  IN  ADDITION  TO THE POWERS HEREIN CONFERRED UPON THE AUTHORITY TO
SECURE ITS BONDS, THE AUTHORITY SHALL HAVE POWER IN CONNECTION WITH  THE
ISSUANCE  OF  BONDS TO ENTER INTO SUCH AGREEMENTS FOR THE BENEFIT OF THE
BONDHOLDERS AS THE AUTHORITY MAY DEEM NECESSARY, CONVENIENT OR DESIRABLE
CONCERNING THE USE OR DISPOSITION  OF  ITS  REVENUES  OR  OTHER  MONEYS,
INCLUDING  THE  ENTRUSTING,  PLEDGING  OR CREATION OF ANY OTHER SECURITY
INTEREST IN ANY SUCH REVENUES, MONEYS AND THE DOING OF ANY ACT,  INCLUD-
ING  REFRAINING  FROM  DOING ANY ACT, WHICH THE AUTHORITY WOULD HAVE THE
RIGHT TO DO IN THE ABSENCE OF SUCH AGREEMENTS. THE AUTHORITY SHALL  HAVE
POWER  TO ENTER INTO AMENDMENTS OF ANY SUCH AGREEMENTS WITHIN THE POWERS
GRANTED TO THE AUTHORITY BY THIS TITLE AND TO PERFORM  SUCH  AGREEMENTS.
THE PROVISIONS OF ANY SUCH AGREEMENTS MAY BE MADE A PART OF THE CONTRACT
WITH THE HOLDERS OF BONDS OF THE AUTHORITY.
  5.  THE  AUTHORITY SHALL HAVE POWER TO CONTRACT WITH HOLDERS OF ANY OF
ITS BONDS AS TO  THE  CUSTODY,  COLLECTION,  SECURING,  INVESTMENT,  AND
PAYMENT  OF  ANY MONEYS OF THE AUTHORITY, OF ANY MONEYS HELD IN TRUST OR
OTHERWISE FOR THE PAYMENT OF BONDS, AND  TO  CARRY  OUT  SUCH  CONTRACT.
MONEYS HELD IN TRUST OR OTHERWISE FOR THE PAYMENT OF BONDS OR IN ANY WAY
TO  SECURE  BONDS OR NOTES AND DEPOSITS OF SUCH MONEYS MAY BE SECURED IN
THE SAME MANNER AS MONEYS OF THE AUTHORITY,  AND  ALL  BANKS  AND  TRUST
COMPANIES ARE AUTHORIZED TO GIVE SUCH SECURITY FOR SUCH DEPOSITS.
  6.  WHETHER  OR  NOT  THE  BONDS OF THE AUTHORITY ARE OF SUCH FORM AND
CHARACTER AS TO BE NEGOTIABLE INSTRUMENTS UNDER THE TERMS OF THE UNIFORM
COMMERCIAL CODE, THE BONDS ARE HEREBY MADE NEGOTIABLE INSTRUMENTS WITHIN
THE MEANING OF AND FOR ALL THE PURPOSES OF THE UNIFORM COMMERCIAL  CODE,
SUBJECT ONLY TO THE PROVISIONS OF THE BONDS FOR REGISTRATION.
  7.  NEITHER  THE  DIRECTORS  OF THE AUTHORITY NOR ANY PERSON EXECUTING
BONDS SHALL BE LIABLE PERSONALLY THEREON OR BE SUBJECT TO  ANY  PERSONAL
LIABILITY  OR  ACCOUNTABILITY  SOLELY BY REASON OF THE ISSUANCE THEREOF.
THE BONDS OR OTHER OBLIGATIONS OF THE AUTHORITY SHALL NOT BE A  DEBT  OF
THE  STATE, AND THE STATE SHALL NOT BE LIABLE THEREON, NOR SHALL THEY BE
PAYABLE OUT OF ANY FUNDS OTHER THAN THOSE OF  THE  AUTHORITY;  AND  SUCH
BONDS SHALL CONTAIN ON THE FACE THEREOF A STATEMENT TO SUCH EFFECT.
  8.  THE AUTHORITY, SUBJECT TO SUCH AGREEMENTS WITH BONDHOLDERS AS THEN
MAY EXIST, SHALL HAVE POWER TO PURCHASE BONDS OF THE  AUTHORITY  OUT  OF
ANY MONEYS AVAILABLE THEREFOR, WHICH SHALL THEREUPON BE CANCELLED.
  S  3981. MONEYS OF THE AUTHORITY. 1. SUBJECT TO THE PROVISIONS OF THIS
TITLE, THE DIRECTORS OF THE AUTHORITY  SHALL  RECEIVE,  ACCEPT,  INVEST,
ADMINISTER,  EXPEND AND DISBURSE FOR ITS CORPORATE PURPOSES ALL MONEY OF
THE AUTHORITY FROM WHATEVER SOURCES DERIVED INCLUDING  (A)  PAYMENTS  BY
THE  COMMISSIONER OF TAXATION AND FINANCE OR THE COMPTROLLER PURSUANT TO
THIS TITLE; (B) THE PROCEEDS OF BONDS; (C)  THE  REVENUES  DESCRIBED  IN
SUBDIVISION  SIX  OF THIS SECTION; AND (D) ANY OTHER PAYMENTS, GIFTS, OR
APPROPRIATIONS TO THE AUTHORITY FROM ANY OTHER SOURCE.
  2. SUBJECT TO THE PROVISIONS OF ANY CONTRACT WITH BONDHOLDERS,
  (A) THE MONEY OF THE AUTHORITY SHALL BE  PAID  TO  THE  AUTHORITY  AND
SHALL NOT BE COMMINGLED WITH ANY OTHER MONEY, AND
  (B)  ALL  MONEY  RECEIVED  BY THE AUTHORITY WHICH, TOGETHER WITH OTHER
MONEY OF THE AUTHORITY AVAILABLE  FOR  THE  OPERATING  EXPENSES  OF  THE
AUTHORITY,  THE  PAYMENT  OF DEBT SERVICE AND PAYMENTS TO RESERVE FUNDS,
EXCEEDS THE AMOUNT REQUIRED FOR SUCH PURPOSES SHALL  BE  TRANSFERRED  TO
THE STATE.
  3.  THE  MONEY IN ANY OF THE AUTHORITY'S ACCOUNTS SHALL BE PAID OUT ON
CHECKS SIGNED BY THE TREASURER, OR BY OTHER LAWFUL AND APPROPRIATE MEANS

A. 7703                             6

SUCH AS WIRE OR ELECTRONIC TRANSFER, ON REQUISITIONS OF THE  CHAIRPERSON
OF THE AUTHORITY OR OF SUCH OTHER OFFICER AS THE DIRECTORS SHALL AUTHOR-
IZE  TO MAKE SUCH REQUISITION, OR PURSUANT TO A BOND RESOLUTION OR TRUST
INDENTURE.
  4.  ALL  MONEYS  OF  THE AUTHORITY FROM WHATEVER SOURCE DERIVED MAY BE
PAID TO THE TREASURER OF THE AUTHORITY AND BE DEPOSITED FORTHWITH  IN  A
BANK  OR  BANKS IN THE STATE DESIGNATED BY SUCH AUTHORITY. THE MONEYS IN
SUCH ACCOUNT MAY BE PAID BY THE TREASURER OR OTHER AGENT DULY DESIGNATED
BY THE AUTHORITY ON REQUISITION OF THE CHAIRMAN OF THE BOARD  OF  DIREC-
TORS  OF  THE  AUTHORITY  OR  OF SUCH PERSON OR PERSONS AS THE BOARD MAY
AUTHORIZE TO MAKE SUCH REQUISITIONS.   ALL DEPOSITS OF  AUTHORITY  MONEY
SHALL  BE SECURED BY OBLIGATIONS OF THE UNITED STATES OR OF THE STATE AT
A MARKET VALUE EQUAL AT ALL TIMES TO THE AMOUNT OF THE DEPOSIT, AND  ALL
BANKS  AND TRUST COMPANIES ARE AUTHORIZED TO GIVE SUCH SECURITY FOR SUCH
DEPOSITS.
  5. THE AUTHORITY SHALL HAVE THE POWER, NOTWITHSTANDING THE  PROVISIONS
OF  THIS SECTION, TO CONTRACT WITH THE HOLDERS OF ANY OF ITS BONDS AS TO
THE CUSTODY, COLLECTION, SECURING, INVESTMENT AND PAYMENT OF  ANY  MONEY
OF THE AUTHORITY OR ANY MONEY HELD IN TRUST OR OTHERWISE FOR THE PAYMENT
OF  BONDS  OR  IN  ANY  WAY  TO  SECURE BONDS, AND TO CARRY OUT ANY SUCH
CONTRACT NOTWITHSTANDING THAT SUCH CONTRACT MAY BE INCONSISTENT WITH THE
OTHER PROVISIONS OF THIS TITLE. MONEY HELD IN TRUST OR OTHERWISE FOR THE
PAYMENT OF BONDS OR IN ANY WAY TO SECURE  BONDS  AND  DEPOSITS  OF  SUCH
MONEY  MAY  BE SECURED IN THE SAME MANNER AS MONEY OF THE AUTHORITY, AND
ALL BANKS AND TRUST COMPANIES ARE AUTHORIZED TO GIVE SUCH  SECURITY  FOR
SUCH DEPOSITS.
  6. (A) REVENUES OF THE AUTHORITY SHALL INCLUDE, BUT NOT BE LIMITED TO:
  (I)  REVENUES  FROM  THE  ADDITIONAL  .25 PERCENT RATE OF THE PERSONAL
INCOME TAX FOR TAXPAYERS RESIDING IN THE METROPOLITAN COMMUTER TRANSPOR-
TATION DISTRICT CREATED  AND  ESTABLISHED  PURSUANT  TO  SECTION  TWELVE
HUNDRED  SIXTY-TWO  OF  THIS  CHAPTER WITH A TAXABLE INCOME GREATER THAN
FIVE HUNDRED THOUSAND DOLLARS BUT  LESS  THAN  TWO  MILLION  DOLLARS  AS
PROVIDED BY SUBPARAGRAPH (C) OF PARAGRAPH ONE OF SUBSECTION (A), SUBPAR-
AGRAPH  (C)  OF  PARAGRAPH ONE OF SUBSECTION (B) AND SUBPARAGRAPH (C) OF
PARAGRAPH ONE OF SUBSECTION (C) OF SECTION SIX HUNDRED ONE  OF  THE  TAX
LAW; AND
  (II) ANNUAL FUNDING FROM THE CITY OF NEW YORK AS FOLLOWS:
  (A) FOR THE FIRST FISCAL YEAR OF THE CITY OF NEW YORK COMMENCING AFTER
THE EFFECTIVE DATE OF THIS TITLE, THE AMOUNT THAT SUCH CITY APPROPRIATED
FOR THE SUPPORT OF THE MTA IN THE BASE YEAR PLUS SIXTY MILLION DOLLARS;
  (B)  FOR  THE  SECOND  FISCAL  YEAR OF THE CITY OF NEW YORK COMMENCING
AFTER THE EFFECTIVE DATE OF THIS TITLE, THE AMOUNT THAT SUCH CITY APPRO-
PRIATED FOR THE SUPPORT OF THE MTA IN THE BASE YEAR PLUS ONE HUNDRED AND
TWENTY MILLION DOLLARS;
  (C) FOR THE THIRD FISCAL YEAR OF THE CITY OF NEW YORK COMMENCING AFTER
THE EFFECTIVE DATE OF THIS TITLE, THE AMOUNT THAT SUCH CITY APPROPRIATED
FOR THE SUPPORT OF THE MTA IN THE BASE YEAR PLUS ONE HUNDRED AND  EIGHTY
MILLION DOLLARS;
  (D)  FOR  THE  FOURTH  FISCAL  YEAR OF THE CITY OF NEW YORK COMMENCING
AFTER THE EFFECTIVE DATE OF THIS TITLE, THE AMOUNT THAT SUCH CITY APPRO-
PRIATED FOR THE SUPPORT OF THE MTA IN THE BASE YEAR PLUS TWO HUNDRED AND
FORTY MILLION DOLLARS; AND
  (E) FOR THE FIFTH FISCAL YEAR OF THE CITY OF NEW YORK COMMENCING AFTER
THE EFFECTIVE DATE OF THIS TITLE, AND FOR EACH FISCAL YEAR OF SUCH  CITY
THEREAFTER,  THE  AMOUNT  THAT SUCH CITY APPROPRIATED FOR THE SUPPORT OF
THE MTA IN THE BASE YEAR PLUS THREE HUNDRED MILLION DOLLARS.

A. 7703                             7

  (B) FOR THE PURPOSES OF SUBPARAGRAPH (II) OF  PARAGRAPH  (A)  OF  THIS
SUBDIVISION, THE TERM "BASE YEAR" SHALL MEAN THE FISCAL YEAR OF THE CITY
OF NEW YORK ENDING JUNE 30, 2014.
  7.  REVENUES  RECEIVED BY THE AUTHORITY PURSUANT TO THIS SECTION SHALL
BE APPLIED IN THE FOLLOWING ORDER OF PRIORITY:  FIRST  PURSUANT  TO  THE
AUTHORITY'S  CONTRACTS  WITH  BONDHOLDERS,  THEN  TO PAY THE AUTHORITY'S
OPERATING EXPENSES NOT OTHERWISE PROVIDED FOR.
  S 3982. USE OF BOND PROCEEDS. THE MONEYS OR PROCEEDS RECEIVED  BY  THE
AUTHORITY FROM THE SALE OF BONDS SHALL BE PAID TO THE MTA TO BE EXPENDED
FOR  ANY PROJECT CAPITAL COSTS OR ELEMENTS DESCRIBED IN THE TWO THOUSAND
FIFTEEN THROUGH TWO THOUSAND NINETEEN CAPITAL PROGRAM PLANS AS SUBMITTED
TO AND APPROVED BY THE MTA CAPITAL  PROGRAM  REVIEW  BOARD  PURSUANT  TO
TITLE ELEVEN OF ARTICLE FIVE OF THIS CHAPTER.
  S  3983.  AGREEMENT  WITH  STATE.  THE STATE DOES HEREBY PLEDGE TO AND
AGREE WITH THE HOLDERS OF ANY BONDS ISSUED BY THE AUTHORITY  UNDER  THIS
ACT  THAT  THE STATE WILL NOT LIMIT OR ALTER THE RIGHTS HEREBY VESTED IN
SUCH AUTHORITY TO FULFILL THE TERMS OF ANY AGREEMENTS MADE WITH THE SAID
HOLDERS THEREOF, OR IN ANY WAY IMPAIR THE RIGHTS AND  REMEDIES  OF  SUCH
HOLDERS UNTIL SUCH BONDS TOGETHER WITH THE INTEREST THEREON, WITH INTER-
EST  ON  ANY UNPAID INSTALLMENTS OF INTEREST, AND ALL COSTS AND EXPENSES
IN CONNECTION WITH ANY ACTION OR PROCEEDING BY  OR  ON  BEHALF  OF  SUCH
HOLDERS,  ARE  FULLY PAID AND DISCHARGED. THE AUTHORITY IS AUTHORIZED TO
INCLUDE THIS PLEDGE AND AGREEMENT OF THE STATE IN ANY AGREEMENT WITH THE
HOLDERS OF SUCH BONDS.
  S 3984. BONDS AS LEGAL INVESTMENTS. THE BONDS  OF  THE  AUTHORITY  ARE
HEREBY  MADE  SECURITIES IN WHICH ALL PUBLIC OFFICERS AND BODIES OF THIS
STATE AND ALL POLITICAL SUBDIVISIONS OF  THE  STATE  AND  OTHER  PERSONS
CARRYING  ON AN INSURANCE BUSINESS, ALL BANKS, BANKERS, TRUST COMPANIES,
SAVINGS BANKS AND SAVINGS ASSOCIATIONS, INCLUDING SAVINGS AND LOAN ASSO-
CIATIONS, BUILDING AND LOAN ASSOCIATIONS, INVESTMENT COMPANIES AND OTHER
PERSONS CARRYING ON A BANKING BUSINESS, ALL  ADMINISTRATORS,  GUARDIANS,
EXECUTORS, TRUSTEES AND OTHER FIDUCIARIES, AND ALL OTHER PERSONS WHATSO-
EVER WHO ARE NOW OR MAY HEREAFTER BE AUTHORIZED TO INVEST IN BONDS OR IN
OTHER  OBLIGATIONS  OF THE STATE, MAY PROPERLY AND LEGALLY INVEST FUNDS,
INCLUDING CAPITAL, IN THEIR CONTROL OR BELONGING TO THEM. SUCH BONDS ARE
ALSO HEREBY MADE SECURITIES WHICH MAY  BE  DEPOSITED  WITH  AND  MAY  BE
RECEIVED  BY  ALL  PUBLIC OFFICERS AND BODIES OF THE STATE AND ALL POLI-
TICAL SUBDIVISIONS OF THE STATE AND PUBLIC CORPORATIONS FOR ANY  PURPOSE
FOR  WHICH THE DEPOSIT OF BONDS OR OTHER OBLIGATIONS OF THE STATE IS NOW
OR MAY HEREAFTER BE AUTHORIZED.
  S 3985. EXEMPTION FROM TAXATION. 1. IT IS HEREBY DETERMINED  THAT  THE
CREATION  OF THE AUTHORITY AND THE CARRYING OUT OF ITS CORPORATE PURPOSE
IS IN ALL RESPECTS A PUBLIC AND GOVERNMENTAL PURPOSE FOR THE BENEFIT  OF
THE PEOPLE OF THE STATE AND FOR THE IMPROVEMENT OF THEIR HEALTH, SAFETY,
WELFARE,  COMFORT  AND  SECURITY,  AND  THAT  SAID  PURPOSES  ARE PUBLIC
PURPOSES AND THAT A CORPORATION WILL BE PERFORMING AN ESSENTIAL  GOVERN-
MENTAL  FUNCTION IN THE EXERCISE OF THE POWERS CONFERRED UPON IT BY THIS
ACT.
  2. THE PROPERTY OF THE AUTHORITY AND ITS INCOME AND  OPERATIONS  SHALL
BE EXEMPT FROM TAXATION.
  3.  THE  BONDS  OF  THE  AUTHORITY ISSUED PURSUANT TO THIS ACT AND THE
INCOME THEREFROM AND ALL ITS FEES,  CHARGES,  GIFTS,  GRANTS,  REVENUES,
RECEIPTS AND OTHER MONEYS RECEIVED OR TO BE RECEIVED, PLEDGED TO PAY, OR
SECURE  THE  PAYMENT  OF, SUCH NOTES OR BONDS SHALL AT ALL TIMES BE FREE
FROM TAXATION, EXCEPT FOR ESTATE AND GIFT TAXES AND TAXES ON TRANSFERS.

A. 7703                             8

  S 3986. AUDITS. 1. THE ACCOUNTS OF THE AUTHORITY SHALL BE  SUBJECT  TO
THE SUPERVISION AND AUDIT OF THE COMPTROLLER. THE COMPTROLLER AND HIS OR
HER  LEGALLY AUTHORIZED REPRESENTATIVE ARE AUTHORIZED AND EMPOWERED FROM
TIME TO TIME TO EXAMINE THE ACCOUNTS AND BOOKS OF THE AUTHORITY, INCLUD-
ING  ITS  RECEIPTS,  DISBURSEMENTS,  CONTRACTS,  LEASES,  SINKING FUNDS,
INVESTMENTS AND ANY OTHER RECORDS AND PAPERS RELATING TO  ITS  FINANCIAL
STANDING.
  2.  THE  COMPTROLLER MAY REQUIRE THE AUTHORITY TO BE THE SUBJECT OF AN
ANNUAL MANAGEMENT AND FINANCIAL AUDIT PERFORMED BY AN INDEPENDENT CERTI-
FIED ACCOUNTANT  SELECTED  BY  THE  COMPTROLLER.  SUCH  AUDITED  REPORT,
TOGETHER  WITH  THE AUDITED FINANCIAL STATEMENTS OF THE AUTHORITY, SHALL
BE SUBMITTED TO THE GOVERNOR, THE SPEAKER OF THE ASSEMBLY, THE TEMPORARY
PRESIDENT OF THE SENATE, AND THE CHAIR AND RANKING  MINORITY  MEMBER  OF
THE  SENATE  FINANCE COMMITTEE AND THE CHAIR AND RANKING MINORITY MEMBER
OF THE ASSEMBLY WAYS AND MEANS COMMITTEE.
  S 3987. REMEDIES OF BONDHOLDERS. SUBJECT TO ANY RESOLUTION  OR  RESOL-
UTIONS ADOPTED BY THE AUTHORITY:
  1.  IN  THE  EVENT  THAT THE AUTHORITY SHALL DEFAULT IN THE PAYMENT OF
PRINCIPAL OF OR INTEREST ON ANY ISSUE OF  BONDS  AFTER  THE  SAME  SHALL
BECOME  DUE,  WHETHER  AT MATURITY OR UPON CALL FOR REDEMPTION, AND SUCH
DEFAULT SHALL CONTINUE FOR A PERIOD OF THIRTY DAYS, OR IN THE EVENT THAT
THE AUTHORITY SHALL FAIL OR REFUSE TO COMPLY WITH THE PROVISIONS OF THIS
TITLE OR SHALL DEFAULT IN ANY AGREEMENT MADE WITH  THE  HOLDERS  OF  ANY
ISSUE  OF BONDS, THE HOLDERS OF TWENTY-FIVE PERCENT IN AGGREGATE PRINCI-
PAL AMOUNT OF THE BONDS OF SUCH ISSUE THEN OUTSTANDING, BY INSTRUMENT OR
INSTRUMENTS FILED IN THE OFFICE OF THE CLERK OF THE COUNTY IN WHICH  THE
PRINCIPAL OFFICE OF THE AUTHORITY IS LOCATED AND PROVED AND ACKNOWLEDGED
IN  THE  SAME  MANNER AS A DEED TO BE RECORDED, MAY APPOINT A TRUSTEE TO
REPRESENT THE HOLDERS OF SUCH BONDS FOR THE  PURPOSE  PROVIDED  IN  THIS
SECTION.
  2.  SUCH TRUSTEE MAY, AND UPON WRITTEN REQUEST OF THE HOLDERS OF TWEN-
TY-FIVE PER CENTUM IN PRINCIPAL AMOUNT OF SUCH BONDS OUTSTANDING  SHALL,
IN HIS OR HER OR ITS OWN NAME:
  (A)  BY ACTION OR PROCEEDING IN ACCORDANCE WITH THE CIVIL PRACTICE LAW
AND RULES, ENFORCE ALL RIGHTS OF THE BONDHOLDERS AND REQUIRE THE AUTHOR-
ITY TO CARRY OUT ANY OTHER AGREEMENTS WITH THE HOLDERS OF SUCH BONDS AND
TO PERFORM ITS DUTIES UNDER THIS TITLE;
  (B) BRING AN ACTION OR PROCEEDING UPON SUCH BONDS;
  (C) BY ACTION OR PROCEEDING, REQUIRE THE AUTHORITY TO ACCOUNT AS IF IT
WERE THE TRUSTEE OF AN EXPRESS TRUST FOR THE HOLDERS OF SUCH BONDS;
  (D) BY ACTION OR PROCEEDING, ENJOIN ANY ACTS OR THINGS  WHICH  MAY  BE
UNLAWFUL OR IN VIOLATION OF THE RIGHTS OF THE HOLDERS OF SUCH BONDS; AND
  (E)  DECLARE ALL SUCH BONDS DUE AND PAYABLE, AND IF ALL DEFAULTS SHALL
BE MADE GOOD, THEN WITH THE CONSENT OF THE HOLDERS  OF  TWENTY-FIVE  PER
CENTUM  OF  THE  PRINCIPAL  AMOUNT OF SUCH BONDS THEN OUTSTANDING, ANNUL
SUCH DECLARATION AND ITS CONSEQUENCES.
  3. SUCH TRUSTEE SHALL, IN ADDITION TO THE PROVISIONS  OF  SUBDIVISIONS
ONE  AND  TWO OF THIS SECTION, HAVE AND POSSESS ALL OF THE POWERS NECES-
SARY OR APPROPRIATE FOR THE EXERCISE OF ANY FUNCTIONS  SPECIFICALLY  SET
FORTH IN THIS SECTION OR INCIDENT TO THE GENERAL REPRESENTATION OF BOND-
HOLDERS IN THE ENFORCEMENT AND PROTECTION OF THEIR RIGHTS.
  4. THE SUPREME COURT SHALL HAVE JURISDICTION OF ANY ACTION OR PROCEED-
ING  BY THE TRUSTEE ON BEHALF OF SUCH BONDHOLDERS. THE VENUE OF ANY SUCH
ACTION OR PROCEEDING SHALL BE LAID IN THE COUNTY OF ALBANY.
  S 3988. ASSISTANCE BY STATE OFFICERS, DEPARTMENTS, BOARDS AND  COMMIS-
SIONS.  1.  ALL OTHER STATE DEPARTMENTS, AGENCIES AND PUBLIC AUTHORITIES

A. 7703                             9

MAY RENDER SUCH SERVICES TO THE AUTHORITY WITHIN THEIR RESPECTIVE  FUNC-
TIONS AS MAY BE REQUESTED BY SUCH AUTHORITY.
  2.  UPON  REQUEST  OF THE AUTHORITY, ANY STATE DEPARTMENT OR AGENCY IS
HEREBY AUTHORIZED AND EMPOWERED TO TRANSFER TO THE AUTHORITY SUCH  OFFI-
CERS  AND EMPLOYEES AS IT MAY DEEM NECESSARY FROM TIME TO TIME TO ASSIST
SUCH CORPORATION IN CARRYING OUT ITS FUNCTIONS  AND  DUTIES  UNDER  THIS
ACT.  OFFICERS  AND  EMPLOYEES  SO TRANSFERRED SHALL NOT LOSE OR FORFEIT
THEIR CIVIL SERVICE STATUS OR RIGHTS.
  S 3989. APPLICABILITY. NOTWITHSTANDING ANY PROVISION OF LAW  CONTAINED
IN  THIS CHAPTER TO THE CONTRARY, THE AUTHORITY SHALL BE SUBJECT TO, AND
BE REQUIRED TO COMPLY WITH, THE FOLLOWING PROVISIONS SET FORTH IN  ARTI-
CLE  NINE  OF THIS CHAPTER ONLY: SUBPARAGRAPHS ONE, TWO, THREE, FOUR AND
FIVE-A OF PARAGRAPH (A)  OF  SUBDIVISION  ONE  OF  SECTION  TWENTY-EIGHT
HUNDRED  OF  THIS  CHAPTER; PARAGRAPHS (B) AND (C) OF SUBDIVISION ONE OF
SECTION TWENTY-EIGHT HUNDRED  OF  THIS  CHAPTER;  SUBDIVISION  THREE  OF
SECTION TWENTY-EIGHT HUNDRED OF THIS CHAPTER; SUBDIVISIONS ONE AND THREE
OF  SECTION TWENTY-EIGHT HUNDRED ONE OF THIS CHAPTER; SUBDIVISION ONE OF
SECTION TWENTY-EIGHT HUNDRED TWO OF THIS CHAPTER;  SECTION  TWENTY-EIGHT
HUNDRED THREE OF THIS CHAPTER; SECTION TWENTY-EIGHT HUNDRED FIVE OF THIS
CHAPTER;  PARAGRAPHS  (A),  (B), (D), (G) AND (H) OF SUBDIVISION ONE AND
SUBDIVISION TWO OF SECTION  TWENTY-EIGHT  HUNDRED  TWENTY-FOUR  OF  THIS
CHAPTER;  AND  SECTIONS  TWENTY-EIGHT  HUNDRED  FIFTY-SIX,  TWENTY-EIGHT
HUNDRED SEVENTY-NINE-A,  TWENTY-EIGHT  HUNDRED  NINETY  AND  TWENTY-NINE
HUNDRED TWENTY-FIVE OF THIS CHAPTER.
  S  2.  Paragraph  1 of subsection (a) of section 601 of the tax law is
amended by adding a new subparagraph (C) to read as follows:
  (C) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FIFTEEN,  AN  ADDI-
TIONAL TAX AT A RATE OF .25% OVER THE 6.85% RATE ESTABLISHED BY SUBPARA-
GRAPH  (B)  OF THIS PARAGRAPH FOR TAXPAYERS RESIDING IN THE METROPOLITAN
COMMUTER TRANSPORTATION DISTRICT CREATED  AND  ESTABLISHED  PURSUANT  TO
SECTION TWELVE HUNDRED SIXTY-TWO OF THE PUBLIC AUTHORITIES LAW WHOSE NEW
YORK  TAXABLE  INCOME  IS  GREATER THAN $500,000 THAT SHALL APPLY TO NEW
YORK TAXABLE INCOME OF $500,000 OR MORE BUT LESS THAN $2,000,000.
  S 3. Paragraph 1 of subsection (b) of section 601 of the  tax  law  is
amended by adding a new subparagraph (C) to read as follows:
  (C)  FOR  TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FIFTEEN, AN ADDI-
TIONAL TAX AT A RATE OF .25% OVER THE 6.85% RATE ESTABLISHED BY SUBPARA-
GRAPH (B) OF THIS PARAGRAPH FOR TAXPAYERS RESIDING IN  THE  METROPOLITAN
COMMUTER  TRANSPORTATION  DISTRICT  CREATED  AND ESTABLISHED PURSUANT TO
SECTION TWELVE HUNDRED SIXTY-TWO OF THE PUBLIC AUTHORITIES LAW WHOSE NEW
YORK TAXABLE INCOME IS GREATER THAN $500,000 THAT  SHALL  APPLY  TO  NEW
YORK TAXABLE INCOME OF $500,000 OR MORE BUT LESS THAN $2,000,000.
  S  4.  Paragraph  1 of subsection (c) of section 601 of the tax law is
amended by adding a new subparagraph (C) to read as follows:
  (C) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FIFTEEN,  AN  ADDI-
TIONAL TAX AT A RATE OF .25% OVER THE 6.85% RATE ESTABLISHED BY SUBPARA-
GRAPH  (B)  OF THIS PARAGRAPH FOR TAXPAYERS RESIDING IN THE METROPOLITAN
COMMUTER TRANSPORTATION DISTRICT CREATED  AND  ESTABLISHED  PURSUANT  TO
SECTION TWELVE HUNDRED SIXTY-TWO OF THE PUBLIC AUTHORITIES LAW WHOSE NEW
YORK  TAXABLE  INCOME  IS  GREATER THAN $500,000 THAT SHALL APPLY TO NEW
YORK TAXABLE INCOME OF $500,000 OR MORE BUT LESS THAN $2,000,000.
  S 5. Notwithstanding any provisions of this act to the contrary, until
such time as the metropolitan  transportation  infrastructure  financing
authority  has  issued  bonds  pursuant  to  section  3980 of the public
authorities law and received the proceeds from the sale or  issuance  of
such  bonds, such authority shall distribute the revenue received pursu-

A. 7703                            10

ant to subdivision 6 of section 3981 of such law in accordance with  the
provisions of section 3982 of such law.
  S 6. This act shall take effect immediately.