§ 432. Railroad participation in the program. The level of railroad
participation in the program for the period nineteen hundred
eighty-seven through nineteen hundred ninety-one shall depend on the
estimated tax abatement as computed by the commissioner of taxation and
finance pursuant to either subdivision (c) of section four hundred
eighty-nine-j or subdivision (c) of section four hundred eighty-nine-hh
of the real property tax law. The nature of railroad participation in
the program, as set forth below, shall be based on the railroad's
economic or exemption factor under title two-A and title two-B of
article four of the real property tax law, as applicable, and the
railroad's size classification as determined by the United States
department of transportation, based on railroad system gross revenues.
Regardless of the level of their participation, all railroads shall
annually certify to the commissioner that to the best of their knowledge
and belief such railroads are in substantial compliance with the terms
and conditions of any contracts they may have with the department.

1. Class I railroads with economic factors greater than fifteen
percent and other railroads with exemption factors less than eighty-five
percent shall undertake capital improvement projects which augment the
railroad's normal capital program.

2. Class I railroads with economic factors equal to fifteen percent
shall expand their maintenance-of-way programs over and above the level
the railroad would have otherwise undertaken.

3. Other railroads with exemption factors equal to eighty-five percent
shall apply their additional tax abatement toward the continuation of
service, in a manner determined by railroad management.

4. Class I railroads over whose facilities intercity rail passenger
service is operated shall include projects which will benefit such
service and shall demonstrate a willingness to cooperate in achieving
public and private improvement initiatives.

5. Further, all railroads participating in the program are encouraged
to select projects which complement or build upon railroad projects
supported with public funds.