S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7685
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 16, 2019
                                ___________
 
 Introduced  by  M.  of  A.  MAGNARELLI  -- read once and referred to the
   Committee on Corporations, Authorities and Commissions
 
 AN ACT to amend the public authorities law,  in  relation  to  exempting
   mass transit authorities from bond issuance charges
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the  "statewide  transportation  authority  reinvestment  (STAR)  act of
 2019".
   § 2. Legislative intent. The  public  authorities  that  provide  mass
 transit  service  in  the  areas  of  New York City, Long Island, Hudson
 Valley, Buffalo, Rochester, Albany, Syracuse and their suburbs are given
 the power to issue debt, which they can use to fund capital projects  or
 operations.  However,  state  law  requires these authorities to pay the
 state a fee each time they issue bonds, totaling  up  to  almost  1%  of
 bonds  issued  depending  on the amount of the issuance. The legislature
 finds that in a time when these authorities face increasing fiscal chal-
 lenges, the fees these authorities must pay to the  state  rob  them  of
 resources to maintain reliable, attractive bus and rail service which is
 an  inherent public good. It is the intent of the legislature to relieve
 transportation authorities of the burden of acting as a  revenue  source
 for  the  state when they invest in their operations and capital infras-
 tructure, and that  these  authorities  use  the  savings  accrued  from
 exemptions  from this fee to maintain service levels and prevent service
 cuts, or for transformative capital projects.
   § 3. Section 2 of the public authorities law is amended  by  adding  a
 new subdivision 7 to read as follows:
   7. "MASS TRANSIT AUTHORITY" SHALL MEAN THE METROPOLITAN TRANSPORTATION
 AUTHORITY, NEW YORK CITY TRANSIT AUTHORITY, TRIBOROUGH BRIDGE AND TUNNEL
 AUTHORITY,  CAPITAL  DISTRICT TRANSPORTATION AUTHORITY, CENTRAL NEW YORK
 REGIONAL TRANSPORTATION AUTHORITY, ROCHESTER-GENESEE REGIONAL  TRANSPOR-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11065-01-9

 A. 7685                             2
 
 TATION  AUTHORITY,  NIAGARA  FRONTIER  TRANSPORTATION  AUTHORITY AND ALL
 SUBSIDIARIES THEREOF. IT SHALL ALSO REFER TO ANY LOCAL OR STATE AUTHORI-
 TY CREATED  FOR  THE  PURPOSE  OF  OPERATING  TRANSPORTATION  FACILITIES
 INCLUDING,  BUT  NOT  LIMITED  TO RAILROAD AND/OR OMNIBUS FACILITIES. IN
 ADDITION, IT SHALL REFER TO ANY LOCAL OR STATE AUTHORITY WHOSE  CHAIRMAN
 AND  MEMBERS  ALSO SERVE AS THE CHAIRMAN AND MEMBERS OF A LOCAL OR STATE
 AUTHORITY CREATED FOR THE PURPOSE OF OPERATING TRANSPORTATION FACILITIES
 INCLUDING, BUT NOT LIMITED TO RAILROAD AND/OR OMNIBUS FACILITIES.
   § 4. Subdivision 4 of section 2976 of the public authorities  law,  as
 added  by  section  12  of part E of chapter 494 of the laws of 2009, is
 amended to read as follows:
   4. The provisions of subdivisions one and two of  this  section  shall
 not  apply  TO  BONDS ISSUED BY MASS TRANSIT AUTHORITIES AND to recovery
 act bonds issued by the state of New York municipal bond bank agency  in
 connection with local American Recovery and Reinvestment Act pursuant to
 section two thousand four hundred thirty-six-b of this chapter.
   § 5. This act shall take effect immediately.