S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4805
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 3, 2017
                                ___________
 
 Introduced by M. of A. DINOWITZ -- 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 2017

   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.
   § 3975. SHORT TITLE. THIS TITLE SHALL BE KNOWN AND MAY BE CITED AS THE
 "METROPOLITAN  TRANSPORTATION  INFRASTRUCTURE FINANCING AUTHORITY ACT OF
 2017".
   § 3976. DEFINITIONS. FOR  THE  PURPOSES  OF  THIS  TITLE,  UNLESS  THE
 CONTEXT OTHERWISE REQUIRES:
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07598-01-7

 A. 4805                             2
 
   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.
   §  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.
   § 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-
 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-

 A. 4805                             3
 
 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.
   § 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
 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

 A. 4805                             4
 
 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.
   §  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
 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

 A. 4805                             5
 
 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.
   § 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
 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.

 A. 4805                             6
 
   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.
   (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, 2016.

 A. 4805                             7
 
   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.
   §  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
 SEVENTEEN  THROUGH  TWO  THOUSAND  TWENTY-ONE  CAPITAL  PROGRAM PLANS AS
 SUBMITTED TO AND APPROVED BY THE MTA CAPITAL PROGRAM REVIEW BOARD PURSU-
 ANT TO TITLE ELEVEN OF ARTICLE FIVE OF THIS CHAPTER.
   § 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.
   §  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.
   §  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.
   §  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-

 A. 4805                             8
 
 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.
   § 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.
   § 3988. ASSISTANCE BY STATE OFFICERS, DEPARTMENTS, BOARDS AND  COMMIS-
 SIONS.  1.  ALL OTHER STATE DEPARTMENTS, AGENCIES AND PUBLIC AUTHORITIES
 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-

 A. 4805                             9
 
 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.
   §  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.
   § 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 SEVENTEEN, 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.
   § 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 SEVENTEEN, 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.
   § 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 SEVENTEEN, 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.
   § 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-
 ant to subdivision 6 of section 3981 of such law in accordance with  the
 provisions of section 3982 of such law.
   § 6. This act shall take effect immediately.