§ 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
transportation, and 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, (ii) on or before
October first, nineteen hundred eighty-six, furnish to the commissioner
of transportation, the chairman of the authority and other counties
which have an option to withdraw, a resolution adopted by the county
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 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. Prior
to withdrawal pursuant to this paragraph or paragraph (b) of this
subdivision, a county must receive approval of its public transportation
plan pursuant to paragraph (c) of this subdivision, (iii) on or before
December 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 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 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 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.

(c) No later than thirty days after receipt of the public
transportation 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 resubmitted plan shall be approved or disapproved no later than
fifteen days after receipt by the commissioner of transportation. The
public transportation 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
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
responsible 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
railroad facilities in a county after the effective date of such
county'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
thereof 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.

6. 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
metropolitan 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.

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, 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 and the state comptroller shall withhold
and pay monies to the authority in accordance with the procedures set
forth in that section.

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
authority, 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.