S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5400
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 10, 2023
                                ___________
 
 Introduced by M. of A. BRABENEC -- read once and referred to the Commit-
   tee 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 counties of
   Orange and Rockland 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
 and  Rockland  shall  have  an  option to withdraw from the metropolitan
 commuter transportation district and have such withdrawal take effect on
 either: (a) [January] APRIL first, [nineteen hundred  eighty-seven]  TWO
 THOUSAND  TWENTY-FOUR.  If  any  such  county plans to withdraw from the
 district on [January] APRIL first, [nineteen hundred  eighty-seven]  TWO
 THOUSAND TWENTY-FOUR, it shall (i) no later than seventy-five days after
 the  effective  date of this section, furnish the commissioner of trans-
 portation, and chairman of the authority and the  other  counties  which
 have  an option to withdraw, a resolution adopted by the county legisla-
 ture providing notice of intent to withdraw, (ii) on or before [October]
 JANUARY first, [nineteen hundred eighty-six] TWO THOUSAND  TWENTY-THREE,
 furnish  to  the  commissioner  of  transportation,  the chairman of the
 authority and other counties which have an option to withdraw, a  resol-
 ution adopted by the county legislature providing for a public transpor-
 tation  plan. For the purposes of this section, a "public transportation
 plan" shall mean a plan that maintains adequate  and  continuous  public
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08894-01-3
              

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 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  TWENTY-THREE,
 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 TWENTY-FOUR 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 hereafter.
   (b)  January first, [nineteen hundred eighty-eight] TWO THOUSAND TWEN-
 TY-FIVE or January first, [nineteen hundred  eighty-nine]  TWO  THOUSAND
 TWENTY-SIX.  If  any  such  county  plans  to withdraw on either January
 first, [nineteen hundred eighty-eight] TWO THOUSAND TWENTY-FIVE or Janu-
 ary first, [nineteen hundred eighty-nine] TWO  THOUSAND  TWENTY-SIX,  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  with-
 draw  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.
   (c) No later than thirty days after receipt of the public  transporta-
 tion  plan  the commissioner of transportation shall, in writing, either
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 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 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
 shall the authority enter into any contract for a project or part there-
 of which would increase liabilities pursuant to subdivision [six]  SIX-A
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 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 ORANGE 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 WITH-
 DRAWAL 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  AUTHORI-
 TY.  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 AUTHORI-
 TY  OR  ANY  SUBSIDIARY  CORPORATION  OF  THE AUTHORITY AND A COUNTY ARE
 UNABLE TO REACH AN AGREEMENT REQUIRED BY THIS  SECTION  FOR  SUCH  WITH-
 DRAWAL,  EITHER  PARTY  MAY MAKE APPLICATION TO A JUSTICE OF THE SUPREME
 COURT PRESIDING IN THE COUNTIES OF ORANGE OR ROCKLAND FOR APPOINTMENT OF
 A SPECIAL REFEREE. EACH  PARTY  SHALL  SUBMIT  TO  THE  JUSTICE  A  LIST
 CONTAINING  THE  NAMES  AND  QUALIFICATIONS  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 EXERCISED 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-
 ity  for  the  costs  of  operation,  maintenance  and  use of passenger
 stations pursuant to section twelve hundred seventy-seven of this [arti-
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 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.
   [9.] 8. 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
 authority, the Metro-North rail commuter council or the management advi-
 sory board, which is based upon residence in such county,  shall  termi-
 nate  upon the county's withdrawal and the office shall be deemed vacant
 and filled in the manner provided by law.
   [10.] 9. 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.