S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1605
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 12, 2017
                                ___________
 
 Introduced  by  M.  of  A.  ZEBROWSKI,  GUNTHER, JAFFEE -- 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:
   §  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 NINETEEN. If any such county plans to withdraw  from
 the  district  on [January] APRIL first, [nineteen hundred eighty-seven]
 TWO THOUSAND NINETEEN, 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
 EIGHTEEN, 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-
 portation plan" shall mean a plan that maintains adequate and continuous
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01817-01-7

 A. 1605                             2
 
 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  EIGHTEEN,
 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  NINETEEN  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 TWENTY
 or   January   first,   [nineteen   hundred  eighty-nine]  TWO  THOUSAND
 TWENTY-ONE.  If any such county plans  to  withdraw  on  either  January
 first,  [nineteen  hundred  eighty-eight] TWO THOUSAND TWENTY or January
 first, [nineteen hundred eighty-nine] TWO THOUSAND TWENTY-ONE, it  shall
 (i)  no  later  than  ninety days after the first of January of the year
 immediately 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 resol-
 ution  adopted  by the county legislature providing a public transporta-
 tion 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 AGREE-
 MENT 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 SUCH SUBDIVISION SIX SHALL DETERMINE
 THE TERMS AND CONDITIONS OF SUCH WITHDRAWAL.

 A. 1605                             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. 1605                             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. 1605                             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.
   § 2. This act shall take effect immediately.