S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1428
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 11, 2021
                                ___________
 
 Introduced  by  M. of A. CARROLL, J. RIVERA, SIMON -- Multi-Sponsored by
   -- M. of A.  COOK, GRIFFIN -- read once and referred to the  Committee
   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 2021
 
   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.
                                                            LBD05409-01-1
              

 A. 1428                             2

   § 3975. SHORT TITLE. THIS TITLE SHALL BE KNOWN AND MAY BE CITED AS THE
 "METROPOLITAN  TRANSPORTATION  INFRASTRUCTURE FINANCING AUTHORITY ACT OF
 2021".
   §  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.
   § 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-

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 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.
   § 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. 1428                             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.
   § 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. 1428                             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.
   §  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. 1428                             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
 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. 1428                             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 THIRTIETH, TWO THOUSAND TWENTY.
   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.

 A. 1428                             8
 
   § 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.
   § 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

 A. 1428                             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.
   § 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  TWENTY-ONE,  AN
 ADDITIONAL  TAX  AT  A  RATE  OF .25% OVER THE 6.85% RATE ESTABLISHED BY
 SUBPARAGRAPH (B) OF THIS PARAGRAPH FOR TAXPAYERS RESIDING IN THE  METRO-
 POLITAN  COMMUTER TRANSPORTATION DISTRICT CREATED AND ESTABLISHED PURSU-
 ANT 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 TWENTY-ONE, AN
 ADDITIONAL TAX AT A RATE OF .25% OVER  THE  6.85%  RATE  ESTABLISHED  BY
 SUBPARAGRAPH  (B) OF THIS PARAGRAPH FOR TAXPAYERS RESIDING IN THE METRO-
 POLITAN COMMUTER TRANSPORTATION DISTRICT CREATED AND ESTABLISHED  PURSU-
 ANT  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  TWENTY-ONE,  AN
 ADDITIONAL  TAX  AT  A  RATE  OF .25% OVER THE 6.85% RATE ESTABLISHED BY
 SUBPARAGRAPH (B) OF THIS PARAGRAPH FOR TAXPAYERS RESIDING IN THE  METRO-
 POLITAN  COMMUTER TRANSPORTATION DISTRICT CREATED AND ESTABLISHED PURSU-
 ANT 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-

 A. 1428                            10
 
 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.