NY State Senate Bill 2025-S2714

Current Bill Status - In Senate Committee Transportation Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 22, 2025	referred to transportation

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2025-S2714 (ACTIVE) - Details

Current Committee:: Senate Transportation
Law Section:: Public Authorities Law
Laws Affected:: Add §§1279-m & 1279-n, Pub Auth L

2025-S2714 (ACTIVE) - Summary

Establishes the metropolitan transportation authority control board.

2025-S2714 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2714

SPONSOR: MURRAY
 
TITLE OF BILL:

An act to amend the public authorities law, in relation to establishing
the metropolitan transportation authority control board

 
PURPOSE:

To create a financial oversight board to bring crucially needed fiscal
discipline and management reform to the MTA

 
SUMMARY OF PROVISIONS:

Section 1 states the legislative findings

Section two adds two new sections 1279-m and 1279-n which creates the
control board, its membership, and provides its powers, functions, and
duties.

Section three is the effective date.

 
JUSTIFICATION:

The Metropolitan Authority Transportation (MTA) is an extremely impor-
tant public authority that provides transportation services that are
vital to the public and to our economy. Alarmingly, the MTA has been
rife with inefficiencies, waste and fraud. The taxpayers of our state
cannot afford to continue to face fare increases, new taxes and public
funding bailouts of the MTA that take more money out of the pockets of
people who already are struggling.

The MIA's own data indicates that they are not properly managing the
money they already have and not properly capitalizing on the funding
streams that are already in place.

For example, a recent blue-ribbon report by the MTA recommended more
enforcement against theft of services and cited losses in the hundreds
of millions of dollars. This same report indicates that over the last
five years losses have ballooned, instead of getting under control.  In
2017, the MTA lost approximately $150 million because of toll and fare
evasion. In 2018, the MTA lost approximately $290 million to toll
evasion. In 2019, losses doubled to $525 million. In 2020 & 2021, losses
reached over $500 million. By 2022, losses had reached $700 million and
by 2023, the toll evasion losses had reached a staggering $750 million.

Instead of holding toll violators accountable and putting more effective
systems in place, the answer to these ballooning costs by MTA officials
has been to implement new revenue schemes such as congestion pricing,
once again hurting the pocketbooks of people at a time when inflation
and cost of living has already burdened New Yorkers too much.

Unfortunately, the fiscal problems of the MTA are not limited to just
fare and toll evasion. According to the Office of the MTA Inspector
General (MTA OIG), over the 20-year period from 2002 to 2022, there has
been a whopping 294.6511 increase in the number of complaints they
received. These complaints are lodged in response to suspected
violations in the following categories: Construction and Vendor Integri-
ty Monitoring; Customer and Employee Safety; Procurement Violations and
Ethics Concerns; Overtime and Other Employee Fraud; and Management Best
Practices.

Further, a 2023 MTA OIG annual report shows that these complaint reports
received by the MTA skyrocketed to 4,214 which is a 687.6% change over
the last ten years since 2003.

The MTA can no longer ignore their glaring fiscal problems and continue
to turn to Albany and taxpayers for bailouts. The MTA leadership must be
held accountable for their fiscal woes. This is best accomplished by the
formation of an MTA fiscal control board that will oversee its fiscal
operations, balance its budget, and help reform the major processes
already identified by its own analyses that have resulted in hundreds of
millions of dollars in losses each year.

Fiscal oversight reform of public entities by oversight boards, as
enacted per state law, has been implemented successfully in New York
state for many local governments. These include: the City of Buffalo's
Buffalo Fiscal Stability Authority; the New York State Financial Emer-
gency Act for the City of New York; various county entities such as the
Erie County Fiscal Stability Authority; and, the Nassau County Interim
Finance Authority.

Major fiscal problems at a number of school districts have also resulted
in state legislative action to provide fiscal oversight.  These schools
include: the East Ramapo Central School District; Hempstead Union Free
School District; Rochester City School District; and the Wyandanch Union
Free School District.

When the fiscal problems and mismanagement plaguing a public entity like
the MTA are systemic and result in an undue burden to taxpayers, creat-
ing millions of dollars of losses to taxpayers year after year, the
leaders of the state have a responsibility to ensure that the public
entity be stabilized. State leaders must step in to put proper controls
and more effective management in place. The systemic problems and
multi-year losses and evidence of mismanagement at the MTA clearly merit
state intervention.

A fiscal control board for the MTA is what is needed to turn the system-
ic inefficiencies, waste and fraud around. A fiscal control board will
improve the fiscal situation and help balance the MTA budget in a way
that protects taxpayers from unfair and unaffordable cost increases. The
taxpayers, the MTA riders and all New Yorkers have already invested
enough money into the MTA to have the best transit system in the world.
This legislation will ensure that the vital services the MTA provides
will be available for years to come.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

This legislation could provide substantial savings to taxpayers and
commuters in the MTA region.

 
EFFECTIVE DATE:
This act shall take effect 90 days after being signed into law.

2025-S2714 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2714
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 22, 2025
                                ___________
 
 Introduced by Sens. MURRAY, BORRELLO, CHAN, HELMING, MATTERA, OBERACKER,
   PALUMBO,  RHOADS,  WEIK  --  read  twice and ordered printed, and when
   printed to be committed to the Committee on Transportation
 
 AN ACT to amend the public authorities law, in relation to  establishing
   the metropolitan transportation authority control board

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative findings and declaration. The legislature here-
 by finds and declares that the metropolitan transportation authority  is
 facing  a  severe  fiscal crisis, and that the crisis cannot be resolved
 absent assistance from the state. The legislature finds that the author-
 ity has repeatedly relied on annual extraordinary increases in state aid
 as well as cost increases passed on to taxpayers and  its  customers  to
 balance  its budget, and that the state and taxpayers cannot continue to
 take such extraordinary actions on the authority's behalf. The  legisla-
 ture further finds and declares that maintenance of a balanced budget by
 the  metropolitan  transportation  authority  is  a matter of overriding
 state concern, requiring the legislature to intervene to provide a means
 whereby: the  long-term  fiscal  stability  of  the  authority  will  be
 assured,  the core infrastructure investment needs of the authority will
 be met, the confidence of investors in the authority's bonds  and  notes
 is  preserved,  the  burden  to taxpayers of untenable cost increases is
 lifted and the economy of both the region and the state as  a  whole  is
 protected.
   §  2. The public authorities law is amended by adding two new sections
 1279-m and 1279-n to read as follows:
   §  1279-M.  METROPOLITAN  TRANSPORTATION  AUTHORITY   CONTROL   BOARD;
 CREATION;   PROCEDURE.  1.  THE  METROPOLITAN  TRANSPORTATION  AUTHORITY
 CONTROL BOARD IS HEREBY CREATED TO HAVE AND EXERCISE THE POWERS,  DUTIES
 AND  PREROGATIVES  PROVIDED  BY  THE  PROVISIONS OF THIS CHAPTER AND ANY
 OTHER PROVISION OF LAW.
   2. THE MEMBERSHIP OF THE BOARD SHALL CONSIST OF FIVE PERSONS APPOINTED
 BY THE GOVERNOR, OF WHICH ONE SHALL BE UPON THE  RECOMMENDATION  OF  THE
 TEMPORARY  PRESIDENT  OF  THE SENATE, ONE UPON THE RECOMMENDATION OF THE

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04921-01-5
 S. 2714                             2
 
 SPEAKER OF THE ASSEMBLY, ONE UPON THE  RECOMMENDATION  OF  THE  MINORITY
 LEADER  OF  THE  SENATE  AND ONE UPON THE RECOMMENDATION OF THE MINORITY
 LEADER OF THE ASSEMBLY. THE TERM OF THE MEMBERS  FIRST  APPOINTED  SHALL
 CONTINUE  FOR  TWENTY-FOUR  MONTHS  AFTER  THE INITIAL APPOINTMENT. UPON
 RECOMMENDATION OF THE NOMINATING PARTY, THE  GOVERNOR  MAY  REPLACE  ANY
 MEMBER  IN  ACCORDANCE  WITH  THE  PROVISION  CONTAINED  HEREIN  FOR THE
 APPOINTMENT OF MEMBERS. THE GOVERNOR SHALL DESIGNATE ONE OF THE  MEMBERS
 TO  SERVE  AS CHAIRPERSON.  THE BOARD SHALL ACT BY UNANIMOUS VOTE OF THE
 VOTING MEMBERS OF THE BOARD. ANY DETERMINATION OF  THE  BOARD  SHALL  BE
 EVIDENCED BY A CERTIFICATION THEREOF EXECUTED BY ALL THE VOTING MEMBERS.
 EACH MEMBER OF THE BOARD SHALL BE ENTITLED TO DESIGNATE A REPRESENTATIVE
 TO  ATTEND  MEETINGS OF THE BOARD IN SUCH MEMBER'S PLACE, AND TO VOTE OR
 OTHERWISE ACT ON SUCH MEMBER'S BEHALF IN SUCH MEMBER'S  ABSENCE.  NOTICE
 OF  SUCH  DESIGNATION  SHALL BE FURNISHED IN WRITING TO THE BOARD BY THE
 DESIGNATING MEMBER. A REPRESENTATIVE SHALL SERVE AT THE PLEASURE OF  THE
 DESIGNATING  MEMBER DURING THE MEMBER'S TERM OF OFFICE. A REPRESENTATIVE
 SHALL NOT BE AUTHORIZED TO DELEGATE ANY OF SUCH REPRESENTATIVE'S  DUTIES
 OR FUNCTIONS TO ANY OTHER PERSON.
   3.  NOTWITHSTANDING  ANY  INCONSISTENT  PROVISIONS  OF  LAW,  GENERAL,
 SPECIAL OR LOCAL, NO OFFICER OR EMPLOYEE OF THE STATE, OF ANY  POLITICAL
 SUBDIVISION  OF  THE  STATE,  OF  ANY  GOVERNMENTAL ENTITY OPERATING ANY
 PUBLIC SCHOOL OR COLLEGE OR OF ANY OTHER PUBLIC AGENCY OR INSTRUMENTALI-
 TY OR UNIT OF GOVERNMENT WHICH EXERCISES GOVERNMENTAL POWERS  UNDER  THE
 LAWS  OF THE STATE, SHALL FORFEIT SUCH OFFICE OR EMPLOYMENT BY REASON OF
 ACCEPTANCE OR APPOINTMENT AS A MEMBER, REPRESENTATIVE, OFFICER, EMPLOYEE
 OR AGENT OF THE BOARD NOR SHALL SERVICE AS SUCH MEMBER,  REPRESENTATIVE,
 OFFICER,  EMPLOYEE  OR  AGENT  OF THE BOARD BE DEEMED INCOMPATIBLE OR IN
 CONFLICT WITH SUCH OFFICE OR EMPLOYMENT. THE  MEMBERS,  THEIR  REPRESEN-
 TATIVES, OFFICERS AND STAFF TO THE BOARD SHALL BE DEEMED EMPLOYEES WITH-
 IN THE MEANING OF SECTION SEVENTEEN OF THE PUBLIC OFFICERS LAW.
   4.  THE  MEMBERS  OF  THE BOARD SHALL SERVE WITHOUT SALARY OR PER DIEM
 ALLOWANCE BUT SHALL BE ENTITLED TO REIMBURSEMENT FOR ACTUAL  AND  NECES-
 SARY EXPENSES INCURRED IN THE PERFORMANCE OF OFFICIAL DUTIES PURSUANT TO
 THIS  SECTION  OR  OTHER  PROVISION  OF  LAW, PROVIDED HOWEVER THAT SUCH
 MEMBERS AND REPRESENTATIVES ARE NOT,  AT  THE  TIME  SUCH  EXPENSES  ARE
 INCURRED, PUBLIC EMPLOYEES OTHERWISE ENTITLED TO SUCH REIMBURSEMENT.
   § 1279-N. POWERS, FUNCTIONS AND DUTIES OF THE METROPOLITAN TRANSPORTA-
 TION AUTHORITY CONTROL BOARD; LIMITATIONS. 1. THE METROPOLITAN TRANSPOR-
 TATION  AUTHORITY CONTROL BOARD SHALL HAVE THE POWER AND IT SHALL BE ITS
 DUTY  TO  RECEIVE  APPLICATIONS  FOR  APPROVAL  OF  THE  FINANCING   AND
 CONSTRUCTION  OF ANY PROJECT PROPOSED BY THE METROPOLITAN TRANSPORTATION
 AUTHORITY. ANY APPLICATION MADE CONCERNING A PROJECT SHALL  INCLUDE  THE
 TERMS,  CONDITIONS  AND  DATES  OF THE REPAYMENT OF STATE APPROPRIATIONS
 AUTHORIZED BY LAW PURSUANT TO A REPAYMENT AGREEMENT. ANY  SUBSIDIARY  OF
 THE  METROPOLITAN  TRANSPORTATION AUTHORITY SHALL ALSO BE SUBJECT TO THE
 PROVISIONS OF THIS SECTION. ALL  APPLICATIONS  AND  SUBMISSIONS  TO  THE
 BOARD  REQUIRED  TO  BE  MADE BY A SUBSIDIARY SHALL BE MADE ON BEHALF OF
 SUCH SUBSIDIARY BY THE METROPOLITAN TRANSPORTATION AUTHORITY. THE METRO-
 POLITAN TRANSPORTATION AUTHORITY SHALL NOT MAKE  ANY  COMMITMENT,  ENTER
 INTO  ANY AGREEMENT OR INCUR ANY INDEBTEDNESS FOR THE PURPOSE OF ACQUIR-
 ING, CONSTRUCTING, OR FINANCING ANY PROJECT UNLESS  PRIOR  APPROVAL  HAS
 BEEN RECEIVED FROM THE BOARD.
   2.  THE BOARD MAY REQUIRE AS PART OF SUCH APPLICATION SUCH INFORMATION
 AS IT DEEMS NECESSARY AND SHALL  ACT  UPON  SUCH  APPLICATION  WITHIN  A
 REASONABLE  TIME.  THE  BOARD SHALL FURNISH THE STATE COMPTROLLER WITH A
 COPY OF EACH SUCH APPLICATION WITHIN THREE DAYS FOLLOWING RECEIPT THERE-
 S. 2714                             3
 
 OF BY THE BOARD. THE BOARD SHALL NOT APPROVE ANY SUCH APPLICATION  PRIOR
 TO  THE  EARLIER  OF  (A)  SEVEN DAYS FOLLOWING THE RECEIPT BY THE STATE
 COMPTROLLER OF SUCH APPLICATION OR (B) THE RECEIPT BY THE BOARD  OF  THE
 STATE  COMPTROLLER'S  COMMENTS  ON  THE  APPLICATION  OR THE STATE COMP-
 TROLLER'S CONSENT TO AN EARLIER DETERMINATION BY THE BOARD.    REFERENCE
 TO  THE  STATE COMPTROLLER IN THIS SUBDIVISION SHALL INCLUDE ANY AUTHOR-
 IZED REPRESENTATIVE OF THE STATE COMPTROLLER.
   3. THE BOARD MAY APPROVE  APPLICATIONS  ONLY  UPON  ITS  DETERMINATION
 THAT,  WITH  RELATION  TO ANY PROPOSED PROJECT, THERE ARE COMMITMENTS OF
 FUNDS SUFFICIENT TO FINANCE THE ACQUISITION  AND  CONSTRUCTION  OF  SUCH
 PROJECT.  IN  DETERMINING  THE  SUFFICIENCY OF COMMITMENTS OF FUNDS, THE
 BOARD MAY CONSIDER COMMITMENTS OF FUNDS, PROJECTIONS OF  FEES  OR  OTHER
 REVENUES  AND  SECURITY,  WHICH  MAY,  IN  THE  DISCRETION OF THE BOARD,
 INCLUDE COLLATERAL SECURITY SUFFICIENT TO RETIRE A PROPOSED INDEBTEDNESS
 OR PROTECT OR INDEMNIFY AGAINST POTENTIAL  LIABILITIES  PROPOSED  TO  BE
 UNDERTAKEN. A COPY OF SUCH DETERMINATION SHALL BE SUBMITTED TO THE CHIEF
 EXECUTIVE  OFFICER  OF THE METROPOLITAN TRANSPORTATION AUTHORITY AND THE
 STATE COMPTROLLER.
   3-A. THE BOARD SHALL  NOT  APPROVE  RECOVERY  ACT  BONDS  APPLICATIONS
 PROVIDED  BY THE STATE OF NEW YORK MUNICIPAL BOND BANK AGENCY UNLESS THE
 BOARD FINDS SUFFICIENT INTEREST RATE AND OTHER SAVINGS TO  EACH  PARTIC-
 IPATING MUNICIPALITY.
   4.  NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS SECTION, THE REQUIRE-
 MENTS OF SUBDIVISIONS ONE, TWO, THREE, AND THREE-A OF THIS SECTION SHALL
 NOT APPLY WITH REGARD TO ANY PROJECT OF THE METROPOLITAN  TRANSPORTATION
 AUTHORITY  IN  PROGRESS  AS  OF  THE  EFFECTIVE DATE OF THIS SECTION, AS
 DETERMINED BY THE METROPOLITAN TRANSPORTATION  AUTHORITY  CONTROL  BOARD
 WHOSE AFFIRMATIVE DETERMINATION SHALL BE CONCLUSIVE AS TO ALL MATTERS OF
 LAW AND FACT FOR THE PURPOSE OF THE LIMITATIONS OF THIS SECTION.
   5.  NOTHING  CONTAINED  IN  SUBDIVISIONS  ONE,  TWO  AND THREE OF THIS
 SECTION SHALL LIMIT THE RIGHT OR OBLIGATION OF THE  METROPOLITAN  TRANS-
 PORTATION  AUTHORITY  TO  COMPLY  WITH  THE  PROVISIONS  OF ANY EXISTING
 CONTRACT, INCLUDING ANY EXISTING LABOR CONTRACT OR CONTRACT WITH OR  FOR
 THE BENEFIT OF THE HOLDERS OF ANY OBLIGATIONS OF THE METROPOLITAN TRANS-
 PORTATION AUTHORITY.
   6.  THE BOARD MAY PARTICIPATE IN ANY MEETING OF THE AUTHORITY HELD FOR
 THE PURPOSE OF NEGOTIATIONS WITH LABOR ORGANIZATIONS AND/OR THE CREATION
 OF ANY LABOR CONTRACT ON OR AFTER THE EFFECTIVE DATE OF THIS SECTION.
   7. A MEMBER OF THE BOARD SHALL VOTE WITHIN THE SCOPE OF SUCH  MEMBER'S
 LEGAL  AUTHORITY.  THE LEGAL AUTHORITY OF A MEMBER OF THE BOARD PURSUANT
 TO THIS SECTION IS SOLELY TO DETERMINE WHETHER THE AUTHORITY HAS  DEMON-
 STRATED  THAT THERE IS THE COMMITMENT OF FUNDS SUFFICIENT TO FINANCE THE
 ACQUISITION AND CONSTRUCTION OF THE PROJECT SUBJECT TO APPROVAL. FAILURE
 OF A MEMBER TO VOTE WITHIN THE SCOPE OF SUCH  MEMBER'S  LEGAL  AUTHORITY
 CONSTITUTES  A VIOLATION OF THE PUBLIC'S TRUST FOR THE PURPOSES OF PARA-
 GRAPH H OF SUBDIVISION THREE OF SECTION SEVENTY-FOUR OF THE PUBLIC OFFI-
 CERS LAW. AS  THE  APPOINTING  AUTHORITY,  THE  GOVERNOR  HAS  THE  FULL
 DISCRETION  TO  IMMEDIATELY  REMOVE  A  MEMBER OF THE BOARD THE GOVERNOR
 FINDS TO BE ACTING, OR THREATENING TO ACT,  BEYOND  THE  SCOPE  OF  SUCH
 MEMBER'S LEGAL AUTHORITY SET FORTH HEREIN.
   §  3.  This  act shall take effect on the ninetieth day after it shall
 have become a law. Effective immediately, the addition, amendment and/or
 repeal of any rule or regulation necessary  for  the  implementation  of
 this  act  on its effective date are authorized to be made and completed
 on or before such effective date.

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Senate Bill S2714

Sponsored By

Current Bill Status - In Senate Committee Transportation Committee

co-Sponsors

2025-S2714 (ACTIVE) - Details

2025-S2714 (ACTIVE) - Summary

2025-S2714 (ACTIVE) - Sponsor Memo

2025-S2714 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S2714

Share this bill

Sponsored By

Current Bill Status - In Senate Committee Transportation Committee

co-Sponsors

2025-S2714 (ACTIVE) - Details

2025-S2714 (ACTIVE) - Summary

2025-S2714 (ACTIVE) - Sponsor Memo

2025-S2714 (ACTIVE) - Bill Text download pdf

Comments