S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6299
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               March 3, 2025
                                ___________
 
 Introduced  by  M.  of A. JACOBSON, EACHUS, KAY, BRABENEC, MAHER -- read
   once and referred to the Committee on  Corporations,  Authorities  and
   Commissions
 
 AN  ACT  to amend the public authorities law, in relation to withdrawing
   Orange county from the metropolitan commuter transportation district

   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 and the opening paragraph of subdivision
 1, the opening paragraph of paragraph (a) of subdivision 1, and subdivi-
 sions 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 first, nineteen hundred eighty-seven.  If  any  such
 county  plans  to  withdraw from the district on January first, nineteen
 hundred eighty-seven, it shall (i) no later than seventy-five days after
 the effective date of this section, furnish the commissioner  of  trans-
 portation,  and [chairman] CHAIR 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 first, nineteen hundred eighty-six, furnish to the  commissioner
 of transportation, the [chairman] CHAIR of the authority and other coun-
 ties which have an option to withdraw, a resolution adopted by the coun-
 ty  legislature  providing  for  a  public  transportation plan. For the
 purposes of this section, a "public transportation plan"  shall  mean  a
 plan  that  maintains  adequate  and  continuous  public  transportation
 services from the withdrawing county to the city  of  New  York  or  any
 terminus  previously served, provides a reasonable level of rail passen-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07870-01-5
              

 A. 6299                             2
 
 ger 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. Prior
 to withdrawal pursuant to this paragraph or paragraph (b) of this subdi-
 vision, 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, 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 a county planning to withdraw on January  first,  nineteen  hundred
 eighty-seven  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 or January first,
 nineteen hundred eighty-nine. If any such county plans  to  withdraw  on
 either  January  first,  nineteen hundred eighty-eight or January first,
 nineteen hundred eighty-nine, 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] CHAIR  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  commis-
 sioner  of transportation, the [chairman] CHAIR of the authority and the
 counties which have an option to withdraw a resolution  adopted  by  the
 county  legislature  providing a public transportation plan as described
 in this section, (iii) on or before October first of the year immediate-
 ly 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.
   (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.
   (E)  NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS SUBDIVISION, THE
 COUNTY OF ORANGE SHALL HEREAFTER BE DEEMED TO HAVE PLANNED TO AND  WITH-
 DRAWN   FROM  THE  METROPOLITAN  COMMUTER  TRANSPORTATION  DISTRICT  FOR
 A. 6299                             3
 
 PURPOSES OF THIS ARTICLE WITHIN ONE YEAR OF THE EFFECTIVE DATE  OF  THIS
 PARAGRAPH.
   2.  (A)  The authority and any subsidiary corporation of the authority
 shall enter into an agreement or agreements with a county that plans  to
 withdraw  from  the  district  to transfer and assign to such county all
 authority and subsidiary railroad facilities and operations, rights  and
 obligations,  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 such  county.  If  the  parties
 agree  that  the authority or subsidiary thereof shall operate the rail-
 road facilities in a county after the effective date  of  such  county's
 withdrawal,  the  agreement  also shall provide for the terms and condi-
 tions of the operation of such service.
   (B) WITH RESPECT TO A WITHDRAWAL MADE PURSUANT  TO  PARAGRAPH  (E)  OF
 SUBDIVISION  ONE  OF  THIS  SECTION,  THE  AUTHORITY AND/OR ANY RELEVANT
 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 FORTY-FIVE DAYS AFTER
 THE AUTHORITY AND ANY SUBSIDIARY CORPORATION PROVIDES THE UPDATED  WRIT-
 TEN STATEMENT PURSUANT TO SUBDIVISION THREE OF THIS SECTION. 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 THEREAFT-
 ER 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 ORANGE COUNTY 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 MEDI-
 ATE 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 THERE-
 AFTER, 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.
 A. 6299                             4
 
   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.  PROVIDED FURTHER THAT WITHIN FORTY-
 FIVE DAYS OF THE EFFECTIVE DATE OF PARAGRAPH (E) OF SUBDIVISION  ONE  OF
 THIS  SECTION,  THE  AUTHORITY  AND  ANY  SUBSIDIARY  CORPORATION OF THE
 AUTHORITY SHALL PROVIDE TO THE COUNTIES OF  DUTCHESS,  ORANGE,  ROCKLAND
 AND  PUTNAM  AN  UPDATED WRITTEN STATEMENT, INCLUDING UPDATED COST ESTI-
 MATES 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. (A) 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 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.
   (B) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF  THIS  SUBDIVI-
 SION,  THE AUTHORITY AND ITS SUBSIDIARY SHALL CONTINUE TO HAVE ITS OBLI-
 GATIONS TO UNDERTAKE AND CONTINUE ALL PROJECTS AND PARTS  THEREOF  IN  A
 CURRENT OR FUTURE CAPITAL PROGRAM PLAN WHICH PERTAINS TO RAILROAD FACIL-
 ITIES  WITHIN  OR  SERVICES  TO ORANGE COUNTY PRIOR TO THE WITHDRAWAL OF
 SUCH COUNTY UNDER PARAGRAPH (E) OF SUBDIVISION ONE OF THIS  SECTION  AND
 THE  AUTHORITY  AND  ITS  SUBSIDIARY  MAY  ENTER INTO ANY CONTRACT FOR A
 PROJECT OR PART THEREOF WHICH WOULD  INCREASE  LIABILITIES  PURSUANT  TO
 SUBDIVISION SIX OF THIS SECTION IN ORANGE COUNTY AFTER THE WITHDRAWAL OF
 SUCH  COUNTY  UNDER  PARAGRAPH  (E)  OF SUBDIVISION ONE OF THIS SECTION.
 ORANGE COUNTY SHALL NOT BE REQUIRED TO REIMBURSE THE  AUTHORITY  OR  ITS
 SUBSIDIARY  IN ACCORDANCE WITH THE PROVISIONS OF SUBDIVISION TWO OF THIS
 SECTION FOR ANY CONTRACT EXECUTED PRIOR TO THE WITHDRAWAL OF SUCH COUNTY
 UNDER PARAGRAPH (E) OF SUBDIVISION ONE OF THIS SECTION.
   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
 A. 6299                             5
 
 were financed by commuter railroad revenue bonds issued by the metropol-
 itan  transportation authority pursuant to section twelve hundred sixty-
 nine of this article and are assigned to such county in accordance  with
 the provisions of subdivision two of this section.
   (B)  NOTWITHSTANDING  THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVI-
 SION, ORANGE COUNTY SHALL NOT BE REQUIRED TO REIMBURSE THE AUTHORITY  OR
 ITS  SUBSIDIARIES FOR ANY CAPITAL EXPENDITURES HERETOFORE UNDERTAKEN FOR
 RAILROAD FACILITIES WITHIN ORANGE COUNTY WHICH WERE FINANCED BY COMMUTER
 RAILROAD REVENUE BONDS ISSUED BY THE METROPOLITAN TRANSPORTATION AUTHOR-
 ITY PURSUANT TO SECTION TWELVE HUNDRED SIXTY-NINE OF THIS TITLE PRIOR TO
 THE WITHDRAWAL OF SUCH COUNTY UNDER PARAGRAPH (E) OF SUBDIVISION ONE  OF
 THIS SECTION.
   7.  The  obligations  of  a county that withdraws from the district to
 reimburse the authority and any subsidiary corporation of the  authority
 for  the  costs  of operation, maintenance and use of passenger stations
 pursuant to section  twelve  hundred  seventy-seven  of  this  [article]
 TITLE,  shall  continue  for any such costs incurred up to the effective
 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  thereafter
 with respect to the aforesaid costs.
   8.  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  subsidiary
 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. IN THE EVENT THAT THE COUNTY  HAS  PAID
 MORE  TO  THE  AUTHORITY  THAN  THE AMOUNT OF SERVICES THE AUTHORITY HAS
 PROVIDED TO THE COUNTY, THE AUTHORITY SHALL MAKE PAYMENT  TO  THE  WITH-
 DRAWING COUNTY COMPENSATING FOR THE DIFFERENCE IN THE AMOUNT OF SERVICES
 RECEIVED FROM THE AUTHORITY AND MONIES PAID BY THE COUNTY TO THE AUTHOR-
 ITY, AND 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 COMP-
 TROLLER 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; provided that public
 works with requests for qualifications issued prior  to  the  withdrawal
 contained  under paragraph (e) of subdivision 1 of section 1279-b of the
 public authorities law shall be permitted to  continue  under  this  act
 notwithstanding such withdrawal, and nothing contained in this act shall
 limit  the  right  or  obligation  of  any  entity  to  comply  with the
 provisions of any existing contract or to award contracts  as  otherwise
 provided by law.