S T A T E   O F   N E W   Y O R K
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    S. 5451                                                  A. 8180

                       2009-2010 Regular Sessions

                      S E N A T E - A S S E M B L Y

                               May 6, 2009
                               ___________

IN  SENATE  --  Introduced by Sens. DILAN, PERKINS -- (at request of the
  Governor) -- read twice and ordered printed, and when  printed  to  be
  committed to the Committee on Rules

IN  ASSEMBLY -- Introduced by M. of A. SILVER, FARRELL, LAVINE, MILLMAN,
  BOYLAND, BRENNAN,  BROOK-KRASNY,  CLARK,  COOK,  DINOWITZ,  ESPAILLAT,
  JEFFRIES, LANCMAN, MARKEY, MAYERSOHN, PERALTA, POWELL, ROBINSON, SCAR-
  BOROUGH  --  (at request of the Governor) -- read once and referred to
  the Committee on Ways and Means

AN ACT to amend the vehicle and traffic law, in relation to supplemental
  learners permits (Part A); to amend the vehicle and  traffic  law,  in
  relation  to the metropolitan commuter transportation district supple-
  mental registration fee (Part B); to amend the tax law and the  admin-
  istrative  code  of the city of New York, in relation to the metropol-
  itan commuter transportation  mobility  tax;  and  to  repeal  certain
  provisions  of  the  tax  law  relating thereto (Part C); to amend the
  education law, in relation to certain  moneys  apportioned  to  school
  districts  for  reimbursement  of  article twenty-three of the tax law
  payments (Part D); to amend the tax law,  in  relation  to  a  tax  on
  medallion  taxicab  rides  in the metropolitan commuter transportation
  district (Part E); to amend the tax law, in relation to a supplemental
  tax on passenger car rentals (Part F); to amend the state finance law,
  in relation to the  metropolitan  transportation  authority  financial
  assistance fund and making an appropriation relating thereto (Part G);
  making  an  appropriation providing financial assistance to the metro-
  politan transportation authority (Part G-1); and to amend  the  public
  authorities  law, in relation to metropolitan transportation authority
  reporting requirements, in relation to legislative  oversight  of  the
  metropolitan  transportation  authority,  in relation to regulation of
  metropolitan transportation authority finances,  in  relation  to  the
  independent  audit  of  the metropolitan transportation authority, and
  the publication of financial information, in relation to audits of the
  metropolitan transportation authority, in relation  to  directing  the
  chairman  of the metropolitan transportation authority to submit bien-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD11287-10-9

S. 5451                             2                            A. 8180

  nial reports to certain legislative committees on the condition of the
  metropolitan transportation authority, in relation  to  the  fiduciary
  responsibility  of  board  members,  in relation to whistle-blowers on
  contract projects of the metropolitan transportation authority, and in
  relation  to  the powers and duties of the metropolitan transportation
  authority capital program review board (Part H)

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Legislative findings and declaration of purpose.  1. Mass
transportation services  in  the  metropolitan  commuter  transportation
district  ("MTA  district")  are essential to meeting the basic mobility
and economic needs of the citizens of the MTA district,  the  state  and
the  region.  The contributions of such mass transportation services are
also essential to addressing fundamental environmental policy and social
needs of the state's residents.
  2. The metropolitan transportation authority must continue to function
as the primary provider of reasonably priced,  safe  and  reliable  mass
transportation services in the MTA district.
  3. It is of vital importance to the ability of the metropolitan trans-
portation  authority to meet the continued need for mobility and for the
economic health of the MTA district that additional dedicated sources of
reliable funding be made promptly available.
  4. Such funding is needed to ensure  the  continuation  of  reasonable
fares  and  provide  for  the continuation of the capital program of the
authority to ensure the ongoing rehabilitation, improvement  and  expan-
sion of the mass transit system.
  5.  It  is  the  intent of the governor and legislature to continue to
fund the capital program of the metropolitan transportation authority as
well as other transportation needs of the state including  highways  and
bridges,  non-MTA  transit,  passenger and freight rail and aviation and
port facilities on a multi-year basis.
  6. It is the intent of the governor and the legislature to address the
capital needs of the department of transportation including highways and
bridges, non-MTA transit, passenger and freight rail  and  aviation  and
port  facilities  at the same time and for the same duration as the next
MTA capital program. The governor and the legislature request  that  the
department  of  transportation  begin  the development of such a program
immediately and provide the legislature with an outline  of  the  objec-
tives  of  the program and the performance measures that will be used to
determine investment in transportation in the state for the next  multi-
year capital program by October 1, 2009.
  S 2. This act enacts into law major components of legislation relating
to the metropolitan transportation authority and the metropolitan commu-
ter  transportation district.  Each component is wholly contained within
a Part identified as Parts A through H.  The  effective  date  for  each
particular provision contained within such Part is set forth in the last
section  of  such  Part. Any provision in any section contained within a
Part, including the effective date of the Part, which makes reference to
a section "of this act", when used in connection  with  that  particular
component,  shall  be  deemed  to  mean  and  refer to the corresponding
section of the Part in which it is found. Section three of this act sets
forth the general effective date of this act.

S. 5451                             3                            A. 8180

                                 PART A

  Section 1. Subdivision 2 of section 503 of the vehicle and traffic law
is amended by adding a new paragraph (b-1) to read as follows:
  (B-1)  SUPPLEMENTAL  LEARNER  PERMIT/LICENSE  FEE  IN THE METROPOLITAN
COMMUTER TRANSPORTATION DISTRICT. (I) UPON PASSAGE OF THE KNOWLEDGE TEST
REQUIRED TO OBTAIN A LEARNER'S  PERMIT,  AN  APPLICANT  FOR  A  DRIVER'S
LICENSE WHO RESIDES IN THE METROPOLITAN COMMUTER TRANSPORTATION DISTRICT
ESTABLISHED  BY SECTION ONE THOUSAND TWO HUNDRED SIXTY-TWO OF THE PUBLIC
AUTHORITIES LAW SHALL BE REQUIRED TO  PAY  A  SUPPLEMENTAL  FEE  OF  ONE
DOLLAR  FOR EACH SIX MONTHS OR PORTION THEREOF OF THE PERIOD OF VALIDITY
OF A LEARNER'S PERMIT OR LICENSE WHICH IS OR MAY BE ISSUED  PURSUANT  TO
THE  PROVISIONS  OF  SUBPARAGRAPH  (I)  OR (II) OF PARAGRAPH (B) OF THIS
SUBDIVISION.
  (II) THE COMMISSIONER SHALL DEPOSIT DAILY ALL FUNDS COLLECTED PURSUANT
TO SUBPARAGRAPH (I) OF THIS PARAGRAPH WITH SUCH RESPONSIBLE BANKS, BANK-
ING HOUSES OR TRUST COMPANIES AS MAY BE DESIGNATED BY  THE  STATE  COMP-
TROLLER,  TO THE CREDIT OF THE COMPTROLLER. ON OR BEFORE THE TWELFTH DAY
OF EACH MONTH, THE COMMISSIONER SHALL CERTIFY  TO  THE  COMPTROLLER  THE
AMOUNT  OF  ALL  REVENUES  RECEIVED PURSUANT TO SUBPARAGRAPH (I) OF THIS
PARAGRAPH DURING THE PRIOR MONTH AS A RESULT  OF  THE  SUPPLEMENTAL  FEE
IMPOSED,  INCLUDING ANY INTEREST AND PENALTIES THEREON.  THE REVENUES SO
CERTIFIED SHALL BE DEPOSITED BY THE STATE COMPTROLLER IN  THE  METROPOL-
ITAN  TRANSPORTATION  AUTHORITY  AID  TRUST  ACCOUNT OF THE METROPOLITAN
TRANSPORTATION AUTHORITY FINANCIAL ASSISTANCE FUND ESTABLISHED  PURSUANT
TO  SECTION  NINETY-TWO-FF OF THE STATE FINANCE LAW FOR DEPOSIT, SUBJECT
TO APPROPRIATION, IN THE CORPORATE TRANSPORTATION ACCOUNT OF THE  METRO-
POLITAN  TRANSPORTATION AUTHORITY SPECIAL ASSISTANCE FUND ESTABLISHED BY
SECTION TWELVE HUNDRED SEVENTY-A OF THE PUBLIC AUTHORITIES  LAW,  TO  BE
APPLIED  AS  PROVIDED  IN  PARAGRAPH  (E)  OF  SUBDIVISION  FOUR OF SUCH
SECTION.  ANY MONEY COLLECTED PURSUANT TO THIS SECTION THAT IS DEPOSITED
BY THE COMPTROLLER IN  THE  METROPOLITAN  TRANSPORTATION  AUTHORITY  AID
TRUST  ACCOUNT  OF  THE  METROPOLITAN TRANSPORTATION AUTHORITY FINANCIAL
ASSISTANCE FUND SHALL BE HELD IN SUCH FUND FREE AND CLEAR OF  ANY  CLAIM
BY  ANY  PERSON  OR  ENTITY  PAYING  AN  ADDITIONAL FEE PURSUANT TO THIS
SECTION, INCLUDING, WITHOUT LIMITING THE GENERALITY  OF  THE  FOREGOING,
ANY  RIGHT  OR  CLAIM AGAINST THE METROPOLITAN TRANSPORTATION AUTHORITY,
ANY OF ITS BONDHOLDERS, OR ANY SUBSIDIARY OR AFFILIATE OF THE  METROPOL-
ITAN TRANSPORTATION AUTHORITY.
  S  2.  Subdivision  2 of section 503 of the vehicle and traffic law is
amended by adding a new paragraph (c-3) to read as follows:
  (C-3) (I) SUPPLEMENTAL RENEWAL FEE IN THE METROPOLITAN COMMUTER TRANS-
PORTATION DISTRICT.  IN ADDITION TO THE FEES REQUIRED TO BE PAID  PURSU-
ANT  TO  PARAGRAPH  (C)  OF  THIS SUBDIVISION, A SUPPLEMENTAL FEE OF ONE
DOLLAR FOR EACH SIX MONTHS OR PORTION THEREOF OF  THE  VALIDITY  OF  THE
LICENSE  SHALL  BE PAID FOR RENEWAL OF A LICENSE OF A PERSON WHO RESIDES
IN THE METROPOLITAN  COMMUTER  TRANSPORTATION  DISTRICT  ESTABLISHED  BY
SECTION ONE THOUSAND TWO HUNDRED SIXTY-TWO OF THE PUBLIC AUTHORITIES LAW
ISSUED BY THE COMMISSIONER.
  (II) THE COMMISSIONER SHALL DEPOSIT DAILY ALL FUNDS COLLECTED PURSUANT
TO  THIS  PARAGRAPH WITH SUCH RESPONSIBLE BANKS, BANKING HOUSES OR TRUST
COMPANIES AS MAY BE DESIGNATED BY THE STATE COMPTROLLER, TO  THE  CREDIT
OF  THE  COMPTROLLER.  ON  OR  BEFORE THE TWELFTH DAY OF EACH MONTH, THE
COMMISSIONER SHALL CERTIFY TO THE COMPTROLLER THE AMOUNT OF ALL REVENUES
RECEIVED PURSUANT TO THIS PARAGRAPH DURING THE PRIOR MONTH AS  A  RESULT
OF  THE  SUPPLEMENTAL FEES IMPOSED, INCLUDING ANY INTEREST AND PENALTIES

S. 5451                             4                            A. 8180

THEREON. THE REVENUES SO CERTIFIED SHALL BE DEPOSITED BY THE STATE COMP-
TROLLER IN THE METROPOLITAN TRANSPORTATION AUTHORITY AID  TRUST  ACCOUNT
OF  THE  METROPOLITAN TRANSPORTATION AUTHORITY FINANCIAL ASSISTANCE FUND
ESTABLISHED  PURSUANT  TO SECTION NINETY-TWO-FF OF THE STATE FINANCE LAW
FOR DEPOSIT, SUBJECT TO APPROPRIATION, IN THE  CORPORATE  TRANSPORTATION
ACCOUNT  OF THE METROPOLITAN TRANSPORTATION AUTHORITY SPECIAL ASSISTANCE
FUND ESTABLISHED BY SECTION  TWELVE  HUNDRED  SEVENTY-A  OF  THE  PUBLIC
AUTHORITIES  LAW, TO BE APPLIED AS PROVIDED IN PARAGRAPH (E) OF SUBDIVI-
SION FOUR OF SUCH SECTION.  ANY MONEY COLLECTED PURSUANT TO THIS SECTION
THAT IS DEPOSITED BY THE COMPTROLLER IN THE METROPOLITAN  TRANSPORTATION
AUTHORITY AID TRUST ACCOUNT OF THE METROPOLITAN TRANSPORTATION AUTHORITY
FINANCIAL  ASSISTANCE  FUND SHALL BE HELD IN SUCH FUND FREE AND CLEAR OF
ANY CLAIM BY ANY PERSON OR ENTITY PAYING AN ADDITIONAL FEE  PURSUANT  TO
THIS  SECTION, INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGO-
ING, ANY RIGHT OR CLAIM AGAINST THE METROPOLITAN TRANSPORTATION AUTHORI-
TY, ANY OF ITS BONDHOLDERS, OR ANY SUBSIDIARY OR AFFILIATE OF THE METRO-
POLITAN TRANSPORTATION AUTHORITY.
  S 3. This act shall take effect September 1, 2009 and shall  apply  to
licenses  issued  and  renewals  of  licenses expiring on and after such
date.

                                 PART B

  Section 1.  The vehicle and traffic law is amended  by  adding  a  new
article 17-C to read as follows:
                               ARTICLE 17-C
              METROPOLITAN COMMUTER TRANSPORTATION DISTRICT
                      SUPPLEMENTAL REGISTRATION FEE
SECTION 499.   DEFINITION.
        499-A. METROPOLITAN  COMMUTER  TRANSPORTATION  DISTRICT  SUPPLE-
                 MENTAL REGISTRATION FEE.
        499-B. COLLECTION OF SUPPLEMENTAL FEE.
        499-C. CALCULATION OF SUPPLEMENTAL REGISTRATION FEE.
        499-D. DEPOSIT AND DISPOSITION OF REVENUE FROM SUPPLEMENTAL FEE.
  S 499. DEFINITION. FOR THE  PURPOSES  OF  THIS  ARTICLE  "METROPOLITAN
COMMUTER  TRANSPORTATION  DISTRICT"  SHALL  MEAN  THE  AREA OF THE STATE
INCLUDED IN THE DISTRICT CREATED AND GOVERNED BY SECTION TWELVE  HUNDRED
SIXTY-TWO OF THE PUBLIC AUTHORITIES LAW.
  S  499-A.  METROPOLITAN  COMMUTER TRANSPORTATION DISTRICT SUPPLEMENTAL
REGISTRATION FEE.   REGISTRANTS RESIDING IN  THE  METROPOLITAN  COMMUTER
TRANSPORTATION  DISTRICT  SHALL  UPON  THE  REGISTRATION OR RENEWAL OF A
MOTOR VEHICLE BE CHARGED A SUPPLEMENTAL REGISTRATION FEE TO BE  PAID  TO
THE  COMMISSIONER  OR HIS OR HER AGENT IN ACCORDANCE WITH THE PROVISIONS
OF THIS ARTICLE.
  S 499-B. COLLECTION OF SUPPLEMENTAL  FEE.  ALL  REGISTRANTS  OF  MOTOR
VEHICLES WHO RESIDE IN THE METROPOLITAN COMMUTER TRANSPORTATION DISTRICT
SHALL  PAY  TO  THE  COMMISSIONER  OR  HIS OR HER AGENT THE SUPPLEMENTAL
REGISTRATION FEE PROVIDED FOR  IN  THIS  ARTICLE  UPON  REGISTRATION  OR
RENEWAL  OF  MOTOR VEHICLES SUBJECT TO REGISTRATION FEES PURSUANT TO THE
FOLLOWING SECTIONS OF THIS CHAPTER: PARAGRAPH A OF  SUBDIVISION  SIX  OF
SECTION  FOUR HUNDRED ONE; SCHEDULES A, B, C, E, F, G, I AND K OF SUBDI-
VISION SEVEN OF SECTION FOUR HUNDRED ONE;  PARAGRAPH  A  OF  SUBDIVISION
EIGHT  OF  SECTION  FOUR HUNDRED ONE; PARAGRAPH A OF SUBDIVISION FIVE OF
SECTION FOUR HUNDRED TEN; AND SECTION FOUR HUNDRED ELEVEN-B.
  S 499-C. CALCULATION OF SUPPLEMENTAL  REGISTRATION  FEE.  THE  SUPPLE-
MENTAL  REGISTRATION  FEE TO BE CHARGED PURSUANT TO SECTION FOUR HUNDRED

S. 5451                             5                            A. 8180

NINETY-NINE-B OF THIS ARTICLE, SHALL BE CALCULATED AT A RATE OF  TWENTY-
FIVE  DOLLARS  PER  ANNUM  FOR  EACH YEAR OR PORTION OF A YEAR THAT SUCH
REGISTRATION IS VALID.
  S 499-D. DEPOSIT AND DISPOSITION OF REVENUE FROM SUPPLEMENTAL FEE. THE
COMMISSIONER  SHALL  DEPOSIT DAILY ALL FUNDS DERIVED FROM THE COLLECTION
OF THE SUPPLEMENTAL FEE ESTABLISHED PURSUANT TO THIS ARTICLE  WITH  SUCH
RESPONSIBLE  BANKS,  BANKING  HOUSES OR TRUST COMPANIES AS MAY BE DESIG-
NATED BY THE STATE COMPTROLLER, TO THE CREDIT OF THE COMPTROLLER. ON  OR
BEFORE  THE TWELFTH DAY OF EACH MONTH, THE COMMISSIONER SHALL CERTIFY TO
THE COMPTROLLER THE AMOUNT OF ALL REVENUES  RECEIVED  PURSUANT  TO  THIS
ARTICLE  DURING  THE  PRIOR  MONTH  AS  A RESULT OF THE SUPPLEMENTAL FEE
IMPOSED, INCLUDING ANY INTEREST AND PENALTIES THEREON. THE  REVENUES  SO
CERTIFIED  SHALL  BE DEPOSITED BY THE STATE COMPTROLLER IN THE METROPOL-
ITAN TRANSPORTATION AUTHORITY AID  TRUST  ACCOUNT  OF  THE  METROPOLITAN
TRANSPORTATION  AUTHORITY FINANCIAL ASSISTANCE FUND ESTABLISHED PURSUANT
TO SECTION NINETY-TWO-FF OF THE STATE FINANCE LAW FOR  DEPOSIT,  SUBJECT
TO  APPROPRIATION, IN THE CORPORATE TRANSPORTATION ACCOUNT OF THE METRO-
POLITAN TRANSPORTATION AUTHORITY SPECIAL ASSISTANCE FUND ESTABLISHED  BY
SECTION  TWELVE  HUNDRED  SEVENTY-A OF THE PUBLIC AUTHORITIES LAW, TO BE
APPLIED AS PROVIDED  IN  PARAGRAPH  (E)  OF  SUBDIVISION  FOUR  OF  SUCH
SECTION.  ANY MONEY COLLECTED PURSUANT TO THIS SECTION THAT IS DEPOSITED
BY THE COMPTROLLER IN  THE  METROPOLITAN  TRANSPORTATION  AUTHORITY  AID
TRUST  ACCOUNT  OF  THE  METROPOLITAN TRANSPORTATION AUTHORITY FINANCIAL
ASSISTANCE FUND SHALL BE HELD IN SUCH FUND FREE AND CLEAR OF  ANY  CLAIM
BY  ANY  PERSON  OR  ENTITY  PAYING  AN  ADDITIONAL FEE PURSUANT TO THIS
SECTION, INCLUDING, WITHOUT LIMITING THE GENERALITY  OF  THE  FOREGOING,
ANY  RIGHT  OR  CLAIM AGAINST THE METROPOLITAN TRANSPORTATION AUTHORITY,
ANY OF ITS BONDHOLDERS, OR ANY SUBSIDIARY OR AFFILIATE OF THE  METROPOL-
ITAN TRANSPORTATION AUTHORITY.
  S  2.  This act shall take effect September 1, 2009 and shall apply to
registrations issued and renewals of registrations expiring on and after
such date.

                                 PART C

  Section 1.  The tax law is amended by adding a new article 23 to  read
as follows:
                               ARTICLE 23
                  METROPOLITAN COMMUTER TRANSPORTATION
                              MOBILITY TAX
SECTION 800. DEFINITIONS.
        801. IMPOSITION OF TAX AND RATE.
        802. PASS THROUGH OF TAX PROHIBITED.
        803. EXEMPTION OVERRIDE.
        804. PAYMENT OF TAX.
        805. DEPOSIT AND DISPOSITION OF REVENUE.
        806. PROCEDURAL PROVISIONS.
  S 800. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE:
  (A)  METROPOLITAN  COMMUTER  TRANSPORTATION DISTRICT. THE METROPOLITAN
COMMUTER TRANSPORTATION DISTRICT ("MCTD") MEANS THE AREA  OF  THE  STATE
INCLUDED  IN THE DISTRICT CREATED AND GOVERNED BY SECTION TWELVE HUNDRED
SIXTY-TWO OF THE PUBLIC AUTHORITIES LAW.
  (B) EMPLOYER. EMPLOYER MEANS  AN  EMPLOYER  REQUIRED  BY  SECTION  SIX
HUNDRED  SEVENTY-ONE  OF  THIS  CHAPTER  TO DEDUCT AND WITHHOLD TAX FROM
WAGES, THAT HAS A PAYROLL EXPENSE IN EXCESS OF TWO THOUSAND FIVE HUNDRED
DOLLARS IN ANY CALENDAR QUARTER; OTHER THAN

S. 5451                             6                            A. 8180

  (1) ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES;
  (2) THE UNITED NATIONS; OR
  (3)  AN INTERSTATE AGENCY OR PUBLIC CORPORATION CREATED PURSUANT TO AN
AGREEMENT OR COMPACT WITH ANOTHER STATE OR THE DOMINION OF CANADA.
  (C) PAYROLL EXPENSE. PAYROLL EXPENSE MEANS WAGES AND  COMPENSATION  AS
DEFINED  IN SECTIONS 3121 AND 3231 OF THE INTERNAL REVENUE CODE (WITHOUT
REGARD TO SECTION 3121(A)(1) AND SECTION 3231(E)(2)(A)(I)), PAID TO  ALL
COVERED EMPLOYEES.
  (D)  COVERED  EMPLOYEE.  COVERED  EMPLOYEE  MEANS  AN  EMPLOYEE WHO IS
EMPLOYED WITHIN THE MCTD.
  (E) NET EARNINGS FROM SELF-EMPLOYMENT. NET EARNINGS FROM  SELF-EMPLOY-
MENT  HAS  THE  SAME  MEANING AS IN SECTION 1402 OF THE INTERNAL REVENUE
CODE.
  S 801. IMPOSITION OF TAX AND RATE. (A) FOR THE SOLE PURPOSE OF PROVID-
ING AN ADDITIONAL STABLE AND RELIABLE DEDICATED FUNDING SOURCE  FOR  THE
METROPOLITAN  TRANSPORTATION  AUTHORITY  AND ITS SUBSIDIARIES AND AFFIL-
IATES TO PRESERVE, OPERATE AND IMPROVE ESSENTIAL TRANSIT AND TRANSPORTA-
TION SERVICES IN THE METROPOLITAN COMMUTER  TRANSPORTATION  DISTRICT,  A
TAX  IS HEREBY IMPOSED AT A RATE OF THIRTY-FOUR HUNDREDTHS (.34) PERCENT
OF (1) THE PAYROLL EXPENSE OF EVERY EMPLOYER  WHO  ENGAGES  IN  BUSINESS
WITHIN  THE  MCTD AND (2) THE NET EARNINGS FROM SELF-EMPLOYMENT OF INDI-
VIDUALS THAT ARE ATTRIBUTABLE TO THE MCTD IF SUCH EARNINGS  ATTRIBUTABLE
TO THE MCTD EXCEED TEN THOUSAND DOLLARS FOR THE TAX YEAR.
  (B)(1)  AN  INDIVIDUAL  HAVING  NET EARNINGS FROM SELF-EMPLOYMENT FROM
ACTIVITY BOTH WITHIN AND WITHOUT THE METROPOLITAN  COMMUTER  TRANSPORTA-
TION DISTRICT IS REQUIRED TO ALLOCATE AND APPORTION SUCH NET EARNINGS TO
THE  MCTD  IN  THE  MANNER  REQUIRED FOR ALLOCATION AND APPORTIONMENT OF
INCOME UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER.
  (2) IN THE CASE OF INDIVIDUALS WITH EARNINGS FROM SELF-EMPLOYMENT, THE
NET  EARNINGS  FROM  SELF  EMPLOYMENT  THRESHOLD  IN  PARAGRAPH  TWO  OF
SUBSECTION  (A)  OF THIS SECTION WILL BE COMPUTED ON AN INDIVIDUAL BASIS
REGARDLESS OF WHETHER THAT INDIVIDUAL FILED A JOINT PERSONAL INCOME  TAX
RETURN.
  (C) THE DETERMINATION OF WHETHER A COVERED EMPLOYEE IS EMPLOYED WITHIN
THE MCTD WILL BE MADE BY UTILIZING THE RULES APPLICABLE TO THE JURISDIC-
TION  OF  EMPLOYMENT FOR PURPOSES OF THE STATEWIDE WAGE REPORTING SYSTEM
UNDER SECTION ONE HUNDRED SEVENTY-ONE-A OF THIS CHAPTER AND SUBSTITUTING
THE MCTD FOR THE STATE IN THAT APPLICATION.
  S 802. PASS THROUGH OF TAX PROHIBITED. AN EMPLOYER CANNOT DEDUCT  FROM
THE  WAGES OR COMPENSATION OF AN EMPLOYEE ANY AMOUNT THAT REPRESENTS ALL
OR ANY PORTION OF THE TAX IMPOSED ON THE EMPLOYER UNDER THIS ARTICLE.
  S 803. EXEMPTION OVERRIDE. ANY EXEMPTION FROM  TAX  SPECIFIED  IN  ANY
OTHER NEW YORK STATE LAW WILL NOT APPLY TO THE TAX IMPOSED BY THIS ARTI-
CLE.
  S  804.  PAYMENT  OF  TAX. (A) EMPLOYERS WITH PAYROLL EXPENSE. THE TAX
IMPOSED ON THE PAYROLL EXPENSE OF EMPLOYERS UNDER SECTION EIGHT  HUNDRED
ONE  OF THIS ARTICLE FOR EACH CALENDAR QUARTER MUST BE PAID QUARTERLY AT
THE SAME TIME AS THE STATEWIDE WAGE REPORTING SYSTEM REPORT IS  REQUIRED
UNDER SECTION ONE HUNDRED SEVENTY-ONE-A OF THIS CHAPTER; PROVIDED HOWEV-
ER,  THAT  EMPLOYERS  SUBJECT TO SECTION NINE OF THIS CHAPTER OTHER THAN
SCHOOL DISTRICTS AS DEFINED IN SECTION THIRTY-SIX HUNDRED NINE-G OF  THE
EDUCATION  LAW  MUST PAY THE TAX ON THE PAYROLL EXPENSE AT THE SAME TIME
AS THE WITHHOLDING TAX REMITTED UNDER THE ELECTRONIC  PAYMENT  REPORTING
SYSTEM  AND  THE  ELECTRONIC FUNDS TRANSFER SYSTEM AUTHORIZED BY SECTION
NINE OF THIS CHAPTER.

S. 5451                             7                            A. 8180

  (B) INDIVIDUALS WITH NET EARNINGS  FROM  SELF-EMPLOYMENT.  INDIVIDUALS
WITH  EARNINGS  FROM SELF-EMPLOYMENT MUST MAKE ESTIMATED TAX PAYMENTS OF
THE TAX IMPOSED BY THIS ARTICLE FOR THE TAXABLE YEAR ON THE  SAME  DATES
SPECIFIED  IN  SUBSECTION (A) OF THIS SECTION FOR THE QUARTERLY PAYMENTS
OF  THE  TAX  IMPOSED  ON THE PAYROLL EXPENSE OF EMPLOYERS. IN ADDITION,
THESE SELF-EMPLOYED INDIVIDUALS MUST FILE A RETURN FOR THE TAXABLE  YEAR
BY  THE  THIRTIETH  DAY  OF  THE FOURTH MONTH FOLLOWING THE CLOSE OF THE
TAXABLE YEAR.  PARAGRAPH ONE OF SUBSECTION (D) OF  SECTION  SIX  HUNDRED
EIGHTY-FIVE  OF  THIS  CHAPTER  SHALL  NOT  APPLY  TO  THE ESTIMATED TAX
PAYMENTS REQUIRED BY THIS SUBSECTION.
  S 805. DEPOSIT AND DISPOSITION OF REVENUE. (A)  THE  TAXES,  INTEREST,
AND  PENALTIES  IMPOSED BY THIS ARTICLE AND COLLECTED OR RECEIVED BY THE
COMMISSIONER SHALL BE DEPOSITED DAILY WITH SUCH RESPONSIBLE BANKS, BANK-
ING HOUSES OR TRUST COMPANIES, AS MAY BE DESIGNATED BY THE  COMPTROLLER,
TO THE CREDIT OF THE COMPTROLLER IN TRUST FOR THE METROPOLITAN TRANSPOR-
TATION  AUTHORITY.  AN ACCOUNT MAY BE ESTABLISHED IN ONE OR MORE OF SUCH
DEPOSITORIES. SUCH DEPOSITS WILL BE KEPT SEPARATE  AND  APART  FROM  ALL
OTHER  MONEY IN THE POSSESSION OF THE COMPTROLLER. THE COMPTROLLER SHALL
REQUIRE ADEQUATE SECURITY FROM  ALL  SUCH  DEPOSITORIES.  OF  THE  TOTAL
REVENUE  COLLECTED OR RECEIVED UNDER THIS ARTICLE, THE COMPTROLLER SHALL
RETAIN SUCH AMOUNT AS THE COMMISSIONER MAY DETERMINE TO BE NECESSARY FOR
REFUNDS UNDER THIS ARTICLE. THE COMMISSIONER IS AUTHORIZED AND  DIRECTED
TO DEDUCT FROM THE AMOUNTS IT RECEIVES UNDER THIS ARTICLE, BEFORE DEPOS-
IT  INTO  THE TRUST ACCOUNTS DESIGNATED BY THE COMPTROLLER, A REASONABLE
AMOUNT NECESSARY TO EFFECTUATE REFUNDS OF APPROPRIATIONS OF THE  DEPART-
MENT  TO  REIMBURSE THE DEPARTMENT FOR THE COSTS INCURRED TO ADMINISTER,
COLLECT AND DISTRIBUTE THE TAXES IMPOSED BY THIS ARTICLE.
  (B) ON OR BEFORE THE TWELFTH AND TWENTY-SIXTH DAY OF  EACH  SUCCEEDING
MONTH,  AFTER  RESERVING SUCH AMOUNT FOR SUCH REFUNDS AND DEDUCTING SUCH
AMOUNTS FOR SUCH COSTS, AS  PROVIDED  FOR  IN  SUBSECTION  (A)  OF  THIS
SECTION, THE COMMISSIONER SHALL CERTIFY TO THE COMPTROLLER THE AMOUNT OF
ALL  REVENUES  SO  RECEIVED  DURING  THE  PRIOR MONTH AS A RESULT OF THE
TAXES, INTEREST AND PENALTIES SO IMPOSED.  THE  AMOUNT  OF  REVENUES  SO
CERTIFIED SHALL BE PAID OVER BY THE FIFTEENTH AND THE FINAL BUSINESS DAY
OF  EACH  SUCCEEDING MONTH FROM SUCH ACCOUNT INTO THE MOBILITY TAX TRUST
ACCOUNT OF THE METROPOLITAN TRANSPORTATION AUTHORITY  FINANCIAL  ASSIST-
ANCE  FUND  ESTABLISHED  PURSUANT  TO SECTION NINETY-TWO-FF OF THE STATE
FINANCE LAW, FOR PAYMENT, PURSUANT TO APPROPRIATIONS BY THE  LEGISLATURE
TO  THE  METROPOLITAN  TRANSPORTATION AUTHORITY FINANCE FUND ESTABLISHED
PURSUANT TO SECTION TWELVE HUNDRED SEVENTY-H OF THE  PUBLIC  AUTHORITIES
LAW.
  S  806. PROCEDURAL PROVISIONS. ALL PROVISIONS OF ARTICLE TWENTY-TWO OF
THIS CHAPTER WILL APPLY TO THE PROVISIONS OF THIS ARTICLE  IN  THE  SAME
MANNER  AND WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF ARTICLE
TWENTY-TWO OF THIS CHAPTER HAD BEEN INCORPORATED IN FULL INTO THIS ARTI-
CLE AND HAD BEEN SPECIFICALLY ADJUSTED FOR AND EXPRESSLY REFERRED TO THE
TAX IMPOSED BY THIS ARTICLE, EXCEPT TO THE EXTENT THAT ANY PROVISION  IS
EITHER  INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS NOT RELEVANT
TO THIS ARTICLE.   NOTWITHSTANDING THE  PRECEDING  SENTENCE,  NO  CREDIT
AGAINST  TAX IN ARTICLE TWENTY-TWO OF THIS CHAPTER CAN BE USED TO OFFSET
THE TAX DUE UNDER THIS ARTICLE. NOTWITHSTANDING ANY  OTHER  LAW  TO  THE
CONTRARY,  THE  COMMISSIONER  MAY  REQUIRE  THAT ALL FILINGS OF FORMS OR
RETURNS UNDER THIS ARTICLE MUST BE FILED ELECTRONICALLY AND ALL PAYMENTS
OF TAX MUST BE PAID ELECTRONICALLY.

S. 5451                             8                            A. 8180

  S 2. Clause (i) of subparagraph 5 of paragraph (a) of subdivision 9 of
section 208 of the tax law, as amended by chapter  61  of  the  laws  of
1989, is amended to read as follows:
  (i)  any refund or credit of a tax imposed under this article, ARTICLE
TWENTY-THREE, or article thirty-two of this chapter, for  which  tax  no
exclusion  or deduction was allowed in determining the taxpayer's entire
net income under this article, ARTICLE TWENTY-THREE, or  [such]  article
thirty-two OF THIS CHAPTER for any prior year,
  S  3.  Paragraph (b) of subdivision 9 of section 208 of the tax law is
amended by adding a new subparagraph 20 to read as follows:
  (20) THE AMOUNT OF ANY FEDERAL DEDUCTION FOR TAXES IMPOSED UNDER ARTI-
CLE TWENTY-THREE OF THIS CHAPTER.
  S 4. Paragraph 2 of subdivision (a) of section 292 of the tax law,  as
added  by  chapter  1005  of  the  laws  of  1970, is amended to read as
follows:
  (2) There shall be subtracted from federal unrelated business  taxable
income  the  amount  of  any  refund  or credit for overpayment of a tax
imposed under this article OR ARTICLE TWENTY-THREE OF THIS CHAPTER.
  S 5. Subdivision (a) of section 292 of  the  tax  law  is  amended  by
adding a new paragraph 8 to read as follows:
  (8)  THERE  MUST BE ADDED TO FEDERAL UNRELATED BUSINESS TAXABLE INCOME
THE AMOUNT OF ANY FEDERAL DEDUCTION  FOR  TAXES  IMPOSED  UNDER  ARTICLE
TWENTY-THREE OF THIS CHAPTER.
  S 6. Subsection (b) of section 612 of the tax law is amended by adding
a new paragraph 39 to read as follows:
  (39) THE AMOUNT OF ANY FEDERAL DEDUCTION FOR TAXES IMPOSED UNDER ARTI-
CLE TWENTY-THREE OF THIS CHAPTER.
  S  7.  Paragraph 7 of subsection (c) of section 612 of the tax law, as
added by chapter 563 of the laws of 1960, is amended to read as follows:
  (7) The amount of any refund or credit for overpayment of income taxes
imposed by this state, or any other taxing jurisdiction, AND  ANY  TAXES
IMPOSED  BY ARTICLE TWENTY-THREE OF THIS CHAPTER, to the extent properly
included in gross income for federal income tax purposes.
  S 8. Subsection (c) of section 615 of the tax law is amended by adding
a new paragraph 8 to read as follows:
  (8) THE AMOUNT OF ANY FEDERAL DEDUCTION FOR TAXES IMPOSED UNDER  ARTI-
CLE TWENTY-THREE OF THIS CHAPTER.
  S 9. Subsection 4 of section 618 of the tax law, as amended by section
4  of part HH-1 of chapter 57 of the laws of 2008, is amended to read as
follows:
  (4) There shall be added or  subtracted  (as  the  case  may  be)  the
modifications described in paragraphs (6), (10), (17), (18), (19), (20),
(21),  (22),  (23), (24), (25), (26), (27), (29) [and], (38) AND (39) of
subsection (b) and in paragraphs (11), (13),  (15),  (19),  (20),  (21),
(22),  (23),  (24), (25), (26) and (28) of subsection (c) of section six
hundred twelve of this part.
  S 10. Subsection (a) of section 686 of the  tax  law,  as  amended  by
section  10  of  part R of chapter 60 of the laws of 2004, is amended to
read as follows:
  (a) General.-- The commissioner of taxation and  finance,  within  the
applicable  period  of  limitations, may credit an overpayment of income
tax and interest on such overpayment against any liability in respect of
any tax imposed by this chapter, INCLUDING TAXES IMPOSED  UNDER  ARTICLE
TWENTY-THREE  OF  THIS  CHAPTER, on the person who made the overpayment,
against any liability in respect of any  tax  imposed  pursuant  to  the
authority of this chapter or any other law on such person if such tax is

S. 5451                             9                            A. 8180

administered  by  the  commissioner  of  taxation  and  finance  and, as
provided  in   sections   one   hundred   seventy-one-c,   one   hundred
seventy-one-d,  one hundred seventy-one-e, one hundred seventy-one-f and
one  hundred  seventy-one-l of this chapter, against past-due support, a
past-due legally enforceable debt, a city of New York tax warrant  judg-
ment debt, and against the amount of a default in repayment of a guaran-
teed  student,  state  university  or  city university loan. The balance
shall be refunded by the comptroller out of  the  proceeds  of  the  tax
retained  by him for such general purpose. Any refund under this section
shall be made only upon the filing of a return and upon a certificate of
the commissioner [of taxation and finance] approved by the  comptroller.
The  comptroller,  as  a  condition  precedent to the approval of such a
certificate, may examine into the facts as disclosed by  the  return  of
the  person  who  made  the  overpayment  and other information and data
available in the files of the commissioner [of taxation and finance].
  S 11. Subsection (b) of section 1453 of the  tax  law  is  amended  by
adding a new paragraph 15 to read as follows:
  (15) THE AMOUNT OF ANY FEDERAL DEDUCTION FOR TAXES IMPOSED UNDER ARTI-
CLE TWENTY-THREE OF THIS CHAPTER.
  S  12.  Subsection  (d)  of section 1453 of the tax law, as amended by
chapter 267 of the laws of 1987, is REPEALED.
  S 13. Subsection (d) of section 1453 of the tax  law,  as  amended  by
chapter 817 of the laws of 1987, is amended to read as follows:
  (d)  Entire net income shall not include any refund or credit of a tax
for which no exclusion or  deduction  was  allowed  in  determining  the
taxpayer's  entire  net  income  under this article or articles [nine-a,
nine-b or nine-c] NINE-A OR TWENTY-THREE of this chapter for  any  prior
year.
  S  14.  Subparagraph  (C) of paragraph 1 of subdivision (b) of section
1503 of the tax law, as amended by chapter 55 of the laws  of  1982,  is
amended to read as follows:
  (C)  any  refund  or  credit  of  a  tax imposed under this article or
section one hundred eighty-seven, OR ARTICLE TWENTY-THREE of this  chap-
ter  heretofore  in effect to the extent properly included as income for
federal income tax purposes, for which no  exclusion  or  deduction  was
allowed in determining the taxpayer's entire net income under this arti-
cle for any prior year;
  S 15. Paragraph 2 of subdivision (b) of section 1503 of the tax law is
amended by adding a new subparagraph (V) to read as follows:
  (V)  THE AMOUNT OF ANY FEDERAL DEDUCTION FOR TAXES IMPOSED UNDER ARTI-
CLE TWENTY-THREE OF THIS CHAPTER.
  S 16. Subparagraph 5 of paragraph (a)  of  subdivision  8  of  section
11-602 of the administrative code of the city of New York, as amended by
chapter 241 of the laws of 1989, is amended to read as follows:
  (5)  any  refund  or  credit  of  a tax imposed under this chapter, or
imposed by article nine, nine-A, TWENTY-THREE, or thirty-two of the  tax
law,  for which tax no exclusion or deduction was allowed in determining
the taxpayer's entire net income under  this  subchapter  or  subchapter
three of this chapter for any prior year;
  S 17. Paragraph (b) of subdivision 8 of section 11-602 of the adminis-
trative code of the city of New York is amended by adding a new subpara-
graph 19 to read as follows:
  (19) THE AMOUNT OF ANY FEDERAL DEDUCTION FOR TAXES IMPOSED UNDER ARTI-
CLE TWENTY-THREE OF THE TAX LAW.

S. 5451                            10                            A. 8180

  S  18. Subdivision (b) of section 11-641 of the administrative code of
the city of New York is amended by adding a new paragraph 16 to read  as
follows:
  (16) THE AMOUNT OF ANY FEDERAL DEDUCTION FOR TAXES IMPOSED UNDER ARTI-
CLE TWENTY-THREE OF THE TAX LAW.
  S  19. Subdivision (d) of section 11-641 of the administrative code of
the city of New York, as amended by chapter 525 of the laws of 1988,  is
amended to read as follows:
  (d)  Entire net income shall not include any refund or credit of a tax
for which no exclusion or  deduction  was  allowed  in  determining  the
taxpayer's  entire net income under this subchapter or subchapter two of
this chapter, OR IMPOSED BY ARTICLE TWENTY-THREE OF THE TAX LAW for  any
prior year.
  S 20. Subdivision (b) of section 11-1712 of the administrative code of
the  city of New York is amended by adding a new paragraph 35 to read as
follows:
  (35) THE AMOUNT OF ANY FEDERAL DEDUCTION FOR TAXES IMPOSED UNDER ARTI-
CLE TWENTY-THREE OF THE TAX LAW.
  S 21. Paragraph 7 of subdivision (c) of section 11-1712 of the  admin-
istrative  code  of  the city of New York, such section as renumbered by
chapter 639 of the laws of 1986, is amended to read as follows:
  (7) The amount of any refund or credit for overpayment of income taxes
imposed by this city, [or] any other taxing jurisdiction, OR  ANY  TAXES
IMPOSED  BY  ARTICLE  TWENTY-THREE OF THE TAX LAW to the extent properly
included in gross income for federal income tax purposes.
  S 22. Subdivision 4 of section 11-1718 of the administrative  code  of
the  city  of New York, as amended by section 11 of part HH-1 of chapter
57 of the laws of 2008, is amended to read as follows:
  (4) There shall be added or  subtracted  (as  the  case  may  be)  the
modifications  described  in  paragraphs  six, ten, seventeen, eighteen,
nineteen, twenty,  twenty-one,  twenty-two,  twenty-three,  twenty-four,
twenty-five,  twenty-six,  twenty-seven,  twenty-nine [and], thirty-four
AND THIRTY-FIVE of subdivision (b) and in paragraphs  eleven,  thirteen,
fifteen,  nineteen,  twenty, twenty-one, twenty-two, twenty-three, twen-
ty-four, twenty-five, twenty-six and twenty-eight of subdivision (c)  of
section 11-1712 of this subchapter.
  S 23. This act shall take effect immediately; provided however that:
  (a)  the  metropolitan  commuter  transportation  mobility tax enacted
pursuant to section one of this act that is (i)  imposed  on  employers,
shall  apply  on and after March 1, 2009, provided however, that the tax
shall apply to public school districts within the metropolitan  commuter
transportation  district  (MCTD) on and after September 1, 2009 and (ii)
imposed on individuals with net earnings from  self-employment  for  tax
years  beginning  on  or after January 1, 2009, but the individual's tax
liability for the 2009 tax year will be based only  on  ten-twelfths  of
such net earnings for the 2009 tax year;
  (b)  the  initial payment of such metropolitan commuter transportation
mobility tax enacted pursuant to section one of this act shall  be  made
with the third quarterly payment due in tax year 2009; provided however,
that  the  initial  payment of such metropolitan commuter transportation
mobility tax shall be made at the same time as the first payment of  the
withholding tax required to be paid pursuant to section 9 of the tax law
that  is  due  on  or  after after October 31, 2009, and such payment by
employers shall include the taxes owed for the entire  period  beginning
on  March 1, 2009 and that such payment by individuals with net earnings
from self-employment shall include the estimated taxes owed for the 2009

S. 5451                            11                            A. 8180

tax year as limited  by  paragraph  (ii)  of  subdivision  (a)  of  this
section,  provided however, that public school districts within the MCTD
shall include taxes owed for the period beginning September 1, 2009;
  (c)  no addition to tax under subsection (c) of section 685 of the tax
law shall be imposed with respect  to  estimated  tax  payments  of  the
metropolitan  commuter  transportation mobility tax required to be filed
prior to the due date of the initial payment  of  the  mobility  tax  as
specified  in  subdivision  (b)  of  this section, provided the taxpayer
makes such estimated tax payments by such due date;
  (d) the amendments to subsection 4 of section 618 of the tax law  made
by  section  nine of this act shall survive the expiration and reversion
of such subsection as provided in section 8 of chapter 782 of  the  laws
of 1988, as amended; and
  (e) the amendments to subdivision 4 of section 11-1718 of the adminis-
trative  code of the city of New York made by section twenty-two of this
act shall survive the expiration and reversion of  such  subdivision  as
provided in section 8 of chapter 782 of the laws of 1988, as amended.

                                 PART D

  Section 1. The education law is amended by adding a new section 3609-g
to read as follows:
  S  3609-G. MONEYS APPORTIONED TO SCHOOL DISTRICTS FOR REIMBURSEMENT OF
ARTICLE TWENTY-THREE OF THE TAX LAW PAYMENTS COMMENCING IN THE 2009-2010
SCHOOL YEAR. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY,
SCHOOL DISTRICTS SHALL BE REIMBURSED FOR PAYMENTS MADE PURSUANT TO ARTI-
CLE TWENTY-THREE OF THE TAX LAW PURSUANT TO THIS SECTION.
  1. DEFINITION. AS USED IN THIS SECTION THE  FOLLOWING  TERM  SHALL  BE
DEFINED  AS  FOLLOWS:    "SCHOOL  DISTRICT"  SHALL  MEAN A PUBLIC SCHOOL
DISTRICT AND SHALL NOT INCLUDE A SPECIAL ACT SCHOOL DISTRICT AS  DEFINED
IN SECTION FOUR THOUSAND ONE OF THIS CHAPTER.
  2. PRESCRIBED PAYMENTS.  ON OR AFTER THE FIRST BUSINESS DAY OF JUNE OF
EACH  SCHOOL  YEAR,  COMMENCING  JUNE  FIRST, TWO THOUSAND TEN, A SCHOOL
DISTRICT SHALL BE PAID AN AMOUNT EQUAL TO ONE  HUNDRED  PERCENT  OF  THE
PAYMENTS  MADE  BY  A SCHOOL DISTRICT ON OR AFTER MAY FIRST OF THE PRIOR
SCHOOL YEAR AND BEFORE MAY FIRST OF  THE  CURRENT  SCHOOL  YEAR  TO  THE
COMMISSIONER OF TAXATION AND FINANCE PURSUANT TO ARTICLE TWENTY-THREE OF
THE  TAX  LAW. NO PAYMENT MAY BE MADE PURSUANT TO THIS SUBDIVISION UNTIL
SUCH AMOUNT FOR EACH SCHOOL DISTRICT IS CERTIFIED BY THE COMMISSIONER OF
TAXATION AND FINANCE AND TRANSMITTED TO THE COMMISSIONER.  SUCH  CERTIF-
ICATION  SHALL BE MADE ON OR BEFORE MAY THIRTY-FIRST SO AS TO FACILITATE
PAYMENTS TO BE MADE PURSUANT TO THIS SECTION.
  3. (A) MONEYS PAID PURSUANT TO THIS SECTION SHALL BE  PAYABLE  TO  THE
TREASURER  OF EACH CITY SCHOOL DISTRICT, AND THE TREASURER OF EACH UNION
FREE SCHOOL DISTRICT AND OF EACH CENTRAL SCHOOL  DISTRICT  AND  OF  EACH
OTHER SCHOOL DISTRICT, IF THERE BE A TREASURER, OTHERWISE TO THE COLLEC-
TOR  OR  OTHER  DISBURSING OFFICER OF SUCH DISTRICT, WHO SHALL APPLY FOR
AND RECEIVE THE SAME AS SOON AS PAYABLE.
  (B) IN THE CASE OF CITY  SCHOOL  DISTRICTS  OF  THE  CITIES  WITH  ONE
HUNDRED  TWENTY-FIVE  THOUSAND  INHABITANTS  OR  MORE, ANY PAYMENT WHICH
PURSUANT TO THIS SECTION IS REQUIRED TO BE MADE TO THE TREASURER OF  THE
CITY  SCHOOL  DISTRICT,  SHALL BE MADE TO THE CITY TREASURER OR CHAMBER-
LAIN.
  4. ANY PAYMENT TO A SCHOOL DISTRICT PURSUANT TO THIS SECTION SHALL  BE
GENERAL  RECEIPTS OF THE DISTRICT AND MAY BE USED FOR ANY LAWFUL PURPOSE
OF THE DISTRICT.

S. 5451                            12                            A. 8180

  5. IT IS THE INTENT OF THE GOVERNOR TO SUBMIT AND THE  LEGISLATURE  TO
ENACT FOR EACH FISCAL YEAR AFTER THE TWO THOUSAND NINE--TWO THOUSAND TEN
FISCAL  YEAR  IN AN ANNUAL BUDGET BILL AN APPROPRIATION IN THE AMOUNT TO
BE PAID TO SCHOOL DISTRICTS PURSUANT TO THIS SECTION.
  S  2.  Paragraph  t  of subdivision 1 of section 3602 of the education
law, as amended by section 11 of part B of chapter 57  of  the  laws  of
2007, is amended to read as follows:
  t.  The  "approved  operating  expense"  for the apportionments to any
school district hereunder shall mean the amount computed as follows: The
apportionment to any school district  for  operating  expense  shall  be
based  upon  the  total  expenditures from its general fund and from its
capital fund and from its risk retention fund for purposes  of  employee
benefit  claims  related to salaries paid from the general fund, and for
any city school districts with a population of  more  than  one  hundred
twenty-five  thousand  inhabitants its expenditures from the special aid
fund of grant moneys for improving pupil performance and categorical aid
for special reading programs as provided in the aid to localities budget
during the applicable year as  approved  by  the  commissioner,  and  in
accordance with the classification of expenditures in use by the commis-
sioner  for  the reporting by school districts of receipts, expenditures
and other financial data. For the purpose of  this  paragraph  operating
expense  shall be defined as total cash expenditures during the applica-
ble year, but shall exclude: (1) any balances  and  transfers;  (2)  any
payments  for  transportation  of  pupils  to and from school during the
regular school year inclusive of capital outlays and debt service there-
for; (2-a) a portion of any payments for transportation of pupils to and
from district operated summer school programs  pursuant  to  subdivision
six  of  section thirty-six hundred twenty-two-a of this article, inclu-
sive of capital outlays and debt service therefor, equal to the  product
of  such expenditures multiplied by the quotient of the total apportion-
ment after the proration, if any, required by such  subdivision  six  of
such section divided by the total apportionment prior to such proration;
(3) any payments for capital outlay and debt service for school building
purposes, provided, however, that in the case of a school district which
has  entered into a contract with state university pursuant to paragraph
o of subdivision two of section three hundred fifty-five of  this  chap-
ter,  under which the school district makes payments to state university
on account of capital outlay relating to certain  children  residing  in
such  school  district,  such payments shall not be so excluded; (4) any
payments for cafeteria or school lunch programs;  (5)  any  proceeds  of
short  term  borrowings  in  the  general fund and any payments from the
proceeds of the sale of obligations in the capital fund;  (6)  any  cash
receipts  which  reduce  the  cost  of  an item when applied against the
expenditure therefor, except gifts, donations and  earned  interest  and
any  refunds made; (7) any payments made to boards of cooperative educa-
tional services for purposes or programs for which an  apportionment  is
paid  pursuant  to  other sections of this chapter, except that payments
attributable to eligible pupils with disabilities and ineligible  pupils
residing  in  noncomponent  districts  shall  be  included  in operating
expense; (8) any tuition payments made to other school districts  inclu-
sive  of  payments  made to a central high school district by one of its
component school districts; (9) any apportionment  or  payment  received
from   the  state  for  experimental  or  special  programs  paid  under
provisions other than those found in this section  and  other  than  any
apportionments  or  payments  received from the state by the city school
district of the city of Yonkers for the purpose  of  funding  an  educa-

S. 5451                            13                            A. 8180

tional  improvement program pursuant to a court order and other than any
other state grants in aid identified by the commissioner for general use
as specified by the board of education pursuant to  subdivision  two  of
section  seventeen  hundred  eighteen  of  this  chapter; (10) any funds
received from the federal government except the federal share  of  medi-
caid  subject  to the provisions of section thirty-six hundred nine-a of
this part and except Impact Aid funds received pursuant to sections  two
and  six of Public Law eighty-one-eight hundred seventy-four (PL 81-874)
or any law superseding such law in any such district which received  aid
pursuant  to  both  such sections; provided further, however, that there
shall be excluded from such federal funds or  other  apportionments  any
payments  from  such  funds already deducted pursuant to this paragraph;
(11) any payments made for which an apportionment is disallowed pursuant
to regulations of the  commissioner;  (12)  any  expenditures  made  for
accounting, tabulation, or computer equipment, in excess of ten thousand
dollars  unless  such expenditures shall have been specifically approved
by  the  commissioner;  (13)  any  rentals  received  pursuant  to   the
provisions  of  section  four  hundred three-a of this chapter; (14) any
rentals or other annual payments received pursuant to the provisions  of
section four hundred three-b of this chapter; (15) any expenditures made
for  persons twenty-one years of age or over attending employment prepa-
ration  education  programs  pursuant  to  subdivision  eleven  of  this
section; (16) any tuition payments made pursuant to a contract under the
provisions  of  paragraphs  e,  f,  g,  h, i and l of subdivision two of
section forty-four hundred one of this chapter or any  tuition  payments
on  behalf  of pupils attending a state school under paragraph d of such
subdivision; [and] (17) in any year in which expenditures  are  made  to
the New York state teachers' retirement system or the New York state and
local  employees'  retirement  system for both the prior school year and
the current school  year,  any  expenditures  made  to  such  retirement
systems  and  recorded  in  the  school year prior to the school year in
which such obligations are paid; AND (18) ANY PAYMENTS  TO  THE  COMMIS-
SIONER  OF  TAXATION AND FINANCE PURSUANT TO ARTICLE TWENTY-THREE OF THE
TAX LAW.
  S 2-a.  If an appropriation were not to be enacted in any state fiscal
year after 2009-10 to reimburse  school  districts  in  accordance  with
subdivision  5  of  section  3609-g  of  the  education  law, the school
districts may suspend payment of their obligations  in  accordance  with
article 23 of the tax law until such time as an appropriation in accord-
ance  with subdivision 5 of section 3609-g of the education law is made.
In no case, however, shall the suspension of payment obligation exceed a
period of six months, nor shall the liability be reduced.
  S 3. This act shall take effect July 1, 2009.

                                 PART E

  Section 1. The tax law is amended by adding a new article 29-A to read
as follows:
                              ARTICLE 29-A
       TAX ON MEDALLION TAXICAB RIDES IN THE METROPOLITAN COMMUTER
                         TRANSPORTATION DISTRICT
SECTION 1280. DEFINITIONS.
        1281. IMPOSITION OF TAX.
        1282. PRESUMPTION OF TAXABILITY.
        1283. SPECIAL PROVISIONS.
        1284. RETURNS.

S. 5451                            14                            A. 8180

        1285. PAYMENT OF TAX.
        1286. RECORDS TO BE KEPT.
        1287. SECRECY OF RETURNS AND REPORTS.
        1288. DEPOSIT AND DISPOSITION OF REVENUE.
        1289. COOPERATION BY CITY.
        1290. PRACTICE AND PROCEDURE.
  S  1280.  DEFINITIONS.  WHEN  USED  IN  THIS ARTICLE, UNLESS OTHERWISE
EXPRESSLY STATED, THE FOLLOWING WORDS AND TERMS SHALL HAVE THE FOLLOWING
MEANINGS:
  (A) "PERSON"  MEANS  AN  INDIVIDUAL,  PARTNERSHIP,  LIMITED  LIABILITY
COMPANY, SOCIETY, ASSOCIATION, JOINT STOCK COMPANY, CORPORATION, ESTATE,
RECEIVER,  TRUSTEE,  ASSIGNEE,  REFEREE  OR ANY OTHER PERSON ACTING IN A
FIDUCIARY OR REPRESENTATIVE CAPACITY, WHETHER APPOINTED BY  A  COURT  OR
OTHERWISE,  ANY  COMBINATION OF INDIVIDUALS, AND ANY OTHER FORM OF UNIN-
CORPORATED ENTERPRISE OWNED OR CONDUCTED BY TWO OR MORE PERSONS.
  (B) "MCTD" MEANS THE  METROPOLITAN  COMMUTER  TRANSPORTATION  DISTRICT
ESTABLISHED  BY  SECTION TWELVE HUNDRED SIXTY-TWO OF THE PUBLIC AUTHORI-
TIES LAW.
  (C) "CITY" MEANS A CITY OF A MILLION OR MORE LOCATED IN THE MCTD.
  (D) "TAXICAB" MEANS A MOTOR VEHICLE CARRYING PASSENGERS  FOR  HIRE  IN
THE CITY, DULY LICENSED BY THE TAXI AND LIMOUSINE COMMISSION OF THE CITY
AND PERMITTED TO ACCEPT HAILS FROM PROSPECTIVE PASSENGERS IN THE STREET.
  (E)  "TAXICAB  RIDE"  MEANS  A  TAXICAB  RIDE  PROVIDED TO ONE OR MORE
PASSENGERS TO A GIVEN DESTINATION.
  (F) "TAXICAB OWNER" MEANS A PERSON OWNING A TAXICAB AND SHALL  INCLUDE
A  PURCHASER UNDER A RESERVE TITLE CONTRACT, CONDITIONAL SALES AGREEMENT
OR VENDOR'S LIEN AGREEMENT. IN ADDITION, AN OWNER  SHALL  BE  DEEMED  TO
INCLUDE  ANY  LESSEE,  LICENSEE  OR BAILEE HAVING THE EXCLUSIVE USE OF A
TAXICAB, UNDER A LEASE OR OTHERWISE, FOR A  PERIOD  OF  THIRTY  DAYS  OR
MORE.
  (G) "PASSENGER" MEANS AN INDIVIDUAL SEATED IN A TAXICAB FOR TRAVEL FOR
HIRE TO A GIVEN DESTINATION.
  (H)  "TAXIMETER"  SHALL  INCLUDE  ANY  DEVICE WHICH, WHEN AFFIXED TO A
MOTOR VEHICLE, IS SO CONSTRUCTED AS TO OPERATE AS A FARE INDICATOR AND A
TIME AND DISTANCE REGISTER FOR THE PURPOSE OF AUTOMATICALLY  DETERMINING
THE CHARGE FOR WHICH A PASSENGER BECOMES LIABLE.
  S  1281.  IMPOSITION  OF  TAX. IN ADDITION TO ANY OTHER TAX IMPOSED BY
THIS CHAPTER OR OTHER LAW, THERE IS  HEREBY  IMPOSED  ON  EVERY  TAXICAB
OWNER  A  TAX  OF FIFTY CENTS PER TAXICAB RIDE ON EVERY RIDE THAT ORIGI-
NATES IN THE CITY AND TERMINATES ANYWHERE WITHIN THE TERRITORIAL BOUNDA-
RIES OF THE MCTD.
  S 1282. PRESUMPTION OF TAXABILITY.  FOR  THE  PURPOSE  OF  THE  PROPER
ADMINISTRATION OF THIS ARTICLE AND TO PREVENT EVASION OF THE TAX IMPOSED
BY THIS ARTICLE, IT SHALL BE PRESUMED THAT EVERY TAXICAB RIDE THAT ORIG-
INATES  IN  THE CITY IS SUBJECT TO THE TAX IMPOSED BY THIS ARTICLE. THIS
PRESUMPTION SHALL PREVAIL UNTIL THE CONTRARY IS PROVEN, AND  THE  BURDEN
OF PROVING THE CONTRARY SHALL BE ON THE PERSON LIABLE FOR PAYMENT OF THE
TAX.
  S  1283.  SPECIAL  PROVISIONS.  NOTWITHSTANDING ANY PROVISIONS OF THIS
ARTICLE TO THE CONTRARY: (A) IF A  TAXICAB  OWNER  SUBJECT  TO  THE  TAX
IMPOSED  BY  THIS ARTICLE LEASES, RENTS OR OTHERWISE FURNISHES A TAXICAB
TO AN UNRELATED PERSON WHO USES THE TAXICAB  TO  PROVIDE  TAXICAB  RIDES
ORIGINATING  IN THE CITY, THEN:  (1) THE OWNER IS DEEMED TO PROVIDE SUCH
TAXICAB RIDES DURING THE DAY OR OTHER PERIOD THAT THE  UNRELATED  PERSON
USES  THE  TAXICAB  TO  PROVIDE  SUCH RIDES; (2) THE TAX IMPOSED BY THIS
ARTICLE SHALL BE IMPOSED ON SUCH OWNER; AND (3) THE OWNER MUST  PAY  THE

S. 5451                            15                            A. 8180

TAX  IMPOSED  BY THIS ARTICLE ON THE NUMBER OF RIDES SUBJECT TO SUCH TAX
PROVIDED BY SUCH UNRELATED PERSON DURING THE DAY OR OTHER PERIOD.
  (B)  NOTWITHSTANDING  ANY LAW TO THE CONTRARY: (1) ALTHOUGH THE TAX IS
IMPOSED ON THE TAXICAB OWNER, THE TAXICAB  OWNER  MUST  PASS  ALONG  THE
ECONOMIC INCIDENCE OF THE TAX TO THE PASSENGER BY ADJUSTING THE FARE FOR
THE  RIDE,  AND  THE PASSING ALONG OF SUCH ECONOMIC INCIDENCE MAY NOT BE
CONSTRUED BY ANY COURT OR ADMINISTRATIVE BODY AS IMPOSING THE TAX ON THE
PERSON OR ENTITY THAT PAYS THE FARE FOR A RIDE. A  CITY  THAT  REGULATES
TAXICABS  OR  TAXICAB  FARES MUST ADJUST THE FARES AUTHORIZED TO INCLUDE
THEREIN THE TAX IMPOSED BY THIS ARTICLE, AS THE RATE  OF  SUCH  TAX  MAY
FROM  TIME TO TIME CHANGE, AND MUST TIMELY REQUIRE THAT ANY TAXIMETER IN
A TAXICAB USED TO PROVIDE RIDES IN THE CITY BE ADJUSTED TO  INCLUDE  THE
TAX.
  (2)  A  TAXICAB OWNER IN SUCH CITY MUST TIMELY ADJUST THE TAXIMETER IN
ANY OF SUCH PERSON'S TAXICABS SO THAT IT REFLECTS  THE  TAX  IMPOSED  BY
THIS ARTICLE AS SUCH RATE MAY FROM TIME TO TIME CHANGE.
  (3)  NEITHER  THE FAILURE OF SUCH CITY TO ADJUST FARES NOR THE FAILURE
OF A TAXICAB OWNER TO ADJUST A TAXIMETER WILL RELIEVE ANY PERSON  LIABLE
FOR  THE TAX IMPOSED BY THIS ARTICLE FROM THE OBLIGATION TO PAY SUCH TAX
TIMELY, AT THE CORRECT RATE.
  (C) FOR PURPOSES OF THIS SECTION, "UNRELATED PERSON"  MEANS  A  PERSON
OTHER  THAN A RELATED PERSON AS DEFINED FOR PURPOSES OF SECTION FOURTEEN
OF THIS CHAPTER.
  S 1284. RETURNS. EVERY PERSON LIABLE FOR THE TAX IMPOSED BY THIS ARTI-
CLE SHALL FILE A RETURN QUARTERLY WITH THE COMMISSIONER.    EACH  RETURN
SHALL  SHOW  THE  NUMBER OF RIDES IN THE QUARTER FOR WHICH THE RETURN IS
FILED, TOGETHER WITH SUCH OTHER  INFORMATION  AS  THE  COMMISSIONER  MAY
REQUIRE.  THE  RETURNS REQUIRED BY THIS SECTION SHALL BE FILED FOR QUAR-
TERLY PERIODS ENDING ON THE LAST DAY  OF  MARCH,  JUNE,  SEPTEMBER,  AND
DECEMBER OF EACH YEAR, AND EACH RETURN SHALL BE FILED WITHIN TWENTY DAYS
AFTER  THE  END  OF  THE  QUARTERLY PERIOD COVERED THEREBY.   EVERY SUCH
PERSON SHALL ALSO FILE A RETURN WITH THE COMMISSIONER FOR THE PERIOD  OF
NOVEMBER AND DECEMBER TWO THOUSAND NINE, BY JANUARY TWENTIETH, TWO THOU-
SAND  TEN,  CONTAINING  THE INFORMATION DESCRIBED ABOVE.  IF THE COMMIS-
SIONER DEEMS IT NECESSARY IN ORDER TO ENSURE  THE  PAYMENT  OF  THE  TAX
IMPOSED BY THIS ARTICLE, THE COMMISSIONER MAY REQUIRE RETURNS TO BE MADE
FOR  SHORTER PERIODS THAN PRESCRIBED BY THE FOREGOING PROVISIONS OF THIS
SECTION, AND UPON SUCH DATES AS THE COMMISSIONER MAY SPECIFY.  THE  FORM
OF  RETURNS  SHALL  BE  PRESCRIBED BY THE COMMISSIONER AND SHALL CONTAIN
SUCH INFORMATION AS THE COMMISSIONER MAY DEEM NECESSARY FOR  THE  PROPER
ADMINISTRATION  OF  THIS  ARTICLE.  THE COMMISSIONER MAY REQUIRE AMENDED
RETURNS TO BE FILED WITHIN TWENTY DAYS AFTER NOTICE AND TO  CONTAIN  THE
INFORMATION  SPECIFIED  IN THE NOTICE. THE COMMISSIONER MAY REQUIRE THAT
THE RETURNS BE FILED ELECTRONICALLY.
  S 1285. PAYMENT OF TAX. EVERY PERSON REQUIRED TO FILE A  RETURN  UNDER
THIS  ARTICLE  SHALL,  AT  THE  TIME  OF  FILING SUCH RETURN, PAY TO THE
COMMISSIONER THE TOTAL OF ALL  TAX  IMPOSED  BY  THIS  ARTICLE,  ON  THE
CORRECT NUMBER OF RIDES SUBJECT TO TAX UNDER THIS ARTICLE. THE AMOUNT SO
PAYABLE  TO  THE  COMMISSIONER  FOR  THE  PERIOD  FOR  WHICH A RETURN IS
REQUIRED TO BE FILED SHALL BE DUE AND PAYABLE TO THE COMMISSIONER ON THE
DATE LIMITED FOR THE FILING OF  THE  RETURN  FOR  SUCH  PERIOD,  WITHOUT
REGARD TO WHETHER A RETURN IS FILED OR WHETHER THE RETURN WHICH IS FILED
CORRECTLY  SHOWS  THE  CORRECT  NUMBER OF RIDES OR THE AMOUNT OF TAX DUE
THEREON. THE COMMISSIONER MAY REQUIRE THAT THE  TAX  BE  PAID  ELECTRON-
ICALLY.

S. 5451                            16                            A. 8180

  S  1286.  RECORDS  TO  BE  KEPT.  EVERY PERSON REQUIRED TO PAY ANY TAX
IMPOSED BY THIS ARTICLE SHALL KEEP RECORDS OF EVERY RIDE ORIGINATING  IN
THE  CITY AND OF ALL AMOUNTS PAID, CHARGED OR DUE THEREON AND OF THE TAX
PAYABLE THEREON, IN SUCH FORM AS THE  COMMISSIONER  MAY  REQUIRE.  EVERY
SUCH  PERSON SHALL ALSO KEEP A TRUE AND COMPLETE COPY OF EVERY CONTRACT,
AGREEMENT, OR ARRANGEMENT CONCERNING THE LEASE, RENTAL,  OR  LICENSE  TO
USE A TAXICAB FOR WHICH THE PERSON IS REQUIRED TO REMIT THE TAX ON RIDES
IMPOSED  BY THIS ARTICLE ON SUCH PERSON. SUCH RECORDS SHALL BE AVAILABLE
FOR INSPECTION AND EXAMINATION AT ANY TIME UPON DEMAND  BY  THE  COMMIS-
SIONER OR THE COMMISSIONER'S DULY AUTHORIZED AGENT OR EMPLOYEE AND SHALL
BE  PRESERVED  FOR A PERIOD OF THREE YEARS, EXCEPT THAT THE COMMISSIONER
MAY CONSENT TO THEIR DESTRUCTION WITHIN THAT PERIOD OR MAY REQUIRE  THAT
THEY BE KEPT LONGER. SUCH RECORDS MAY BE KEPT WITHIN THE MEANING OF THIS
SECTION  WHEN  REPRODUCED  ON  ANY PHOTOGRAPHIC, PHOTOSTATIC, MICROFILM,
MICRO-CARD, MINIATURE  PHOTOGRAPHIC  OR  OTHER  PROCESS  WHICH  ACTUALLY
REPRODUCES  THE  ORIGINAL  RECORD. IF THOSE RECORDS ARE MAINTAINED IN AN
ELECTRONIC FORMAT, THEY MUST BE MADE AVAILABLE  AND  ACCESSIBLE  TO  THE
COMMISSIONER IN ELECTRONIC FORMAT.
  S  1287. SECRECY OF RETURNS AND REPORTS. (A) EXCEPT IN ACCORDANCE WITH
PROPER JUDICIAL ORDER OR AS OTHERWISE  PROVIDED  BY  LAW,  IT  SHALL  BE
UNLAWFUL  FOR  THE  COMMISSIONER, ANY OFFICER OR EMPLOYEE OF THE DEPART-
MENT, ANY PERSON ENGAGED OR RETAINED BY THE DEPARTMENT ON AN INDEPENDENT
CONTRACT BASIS, OR ANY PERSON WHO IN ANY MANNER MAY ACQUIRE KNOWLEDGE OF
THE CONTENTS OF A RETURN OR REPORT FILED WITH THE COMMISSIONER  PURSUANT
TO  THIS ARTICLE, TO DIVULGE OR MAKE KNOWN IN ANY MANNER ANY PARTICULARS
SET FORTH OR DISCLOSED IN  ANY  SUCH  RETURN  OR  REPORT.  THE  OFFICERS
CHARGED  WITH  THE  CUSTODY  OF  SUCH  RETURNS  AND REPORTS SHALL NOT BE
REQUIRED TO PRODUCE ANY OF THEM OR EVIDENCE  OF  ANYTHING  CONTAINED  IN
THEM  IN  ANY ACTION OR PROCEEDING IN ANY COURT, EXCEPT ON BEHALF OF THE
COMMISSIONER IN AN ACTION OR PROCEEDING UNDER  THE  PROVISIONS  OF  THIS
CHAPTER OR IN ANY OTHER ACTION OR PROCEEDING INVOLVING THE COLLECTION OF
A TAX DUE UNDER THIS CHAPTER TO WHICH THE STATE OR THE COMMISSIONER IS A
PARTY OR A CLAIMANT, OR ON BEHALF OF ANY PARTY TO ANY ACTION, PROCEEDING
OR  HEARING  UNDER  THE  PROVISIONS  OF  THIS  ARTICLE WHEN THE RETURNS,
REPORTS OR FACTS SHOWN THEREBY ARE DIRECTLY  INVOLVED  IN  SUCH  ACTION,
PROCEEDING  OR HEARING, IN ANY OF WHICH EVENTS THE COURT, OR IN THE CASE
OF A HEARING, THE DIVISION OF TAX APPEALS MAY REQUIRE THE PRODUCTION OF,
AND MAY ADMIT INTO EVIDENCE, SO MUCH OF SAID RETURNS, REPORTS OR OF  THE
FACTS SHOWN THEREBY, AS ARE PERTINENT TO THE ACTION, PROCEEDING OR HEAR-
ING  AND  NO  MORE. THE COMMISSIONER OR THE DIVISION OF TAX APPEALS MAY,
NEVERTHELESS, PUBLISH A COPY OR A SUMMARY OF ANY DECISION RENDERED AFTER
A HEARING REQUIRED BY THIS ARTICLE. NOTHING IN  THIS  SECTION  SHALL  BE
CONSTRUED TO PROHIBIT THE DELIVERY TO A PERSON WHO HAS FILED A RETURN OR
REPORT OR TO SUCH PERSON'S DULY AUTHORIZED REPRESENTATIVE OF A CERTIFIED
COPY OF ANY RETURN OR REPORT FILED IN CONNECTION WITH SUCH PERSON'S TAX.
NOR SHALL ANYTHING IN THIS SECTION BE CONSTRUED TO PROHIBIT THE PUBLICA-
TION  OF  STATISTICS  SO  CLASSIFIED AS TO PREVENT THE IDENTIFICATION OF
PARTICULAR RETURNS OR REPORTS AND THE ITEMS THEREOF, OR  THE  INSPECTION
BY  THE  ATTORNEY GENERAL OR OTHER LEGAL REPRESENTATIVES OF THE STATE OF
THE RETURN OR REPORT OF ANY PERSON REQUIRED TO PAY  THE  TAX  WHO  SHALL
BRING  ACTION TO REVIEW THE TAX BASED THEREON, OR AGAINST WHOM AN ACTION
OR PROCEEDING UNDER THIS CHAPTER HAS BEEN RECOMMENDED BY THE COMMISSION-
ER OR THE ATTORNEY GENERAL OR HAS BEEN INSTITUTED, OR THE INSPECTION  OF
THE RETURNS OR REPORTS REQUIRED UNDER THIS ARTICLE BY THE COMPTROLLER OR
DULY DESIGNATED OFFICER OR EMPLOYEE OF THE STATE DEPARTMENT OF AUDIT AND
CONTROL,  FOR  PURPOSES  OF  THE  AUDIT OF A REFUND OF ANY TAX PAID BY A

S. 5451                            17                            A. 8180

PERSON REQUIRED TO PAY THE TAX UNDER THIS ARTICLE.   PROVIDED,  FURTHER,
NOTHING  IN  THIS SECTION SHALL BE CONSTRUED TO PROHIBIT THE DISCLOSURE,
IN SUCH MANNER AS THE COMMISSIONER DEEMS APPROPRIATE, OF THE  NAMES  AND
OTHER  APPROPRIATE  IDENTIFYING INFORMATION OF THOSE PERSONS REQUIRED TO
PAY TAX UNDER THIS ARTICLE.
  (B) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION,
THE COMMISSIONER MAY, IN HIS OR HER DISCRETION, PERMIT THE PROPER  OFFI-
CER  OF  A CITY THAT REGULATES TAXICABS OR THE DULY AUTHORIZED REPRESEN-
TATIVE OF SUCH OFFICER, TO INSPECT ANY RETURN FILED UNDER THIS  ARTICLE,
OR  MAY  FURNISH  TO SUCH OFFICER OR SUCH OFFICER'S AUTHORIZED REPRESEN-
TATIVE AN ABSTRACT OF ANY SUCH RETURN OR SUPPLY SUCH PERSON WITH  INFOR-
MATION  CONCERNING AN ITEM CONTAINED IN ANY SUCH RETURN, OR DISCLOSED BY
ANY INVESTIGATION OF TAX LIABILITY UNDER THIS ARTICLE; BUT SUCH  PERMIS-
SION  SHALL  BE  GRANTED OR SUCH INFORMATION FURNISHED ONLY IF SUCH CITY
SHALL HAVE FURNISHED THE COMMISSIONER WITH ALL INFORMATION REQUESTED  BY
THE  COMMISSIONER  PURSUANT TO THIS ARTICLE AND SHALL HAVE PERMITTED THE
COMMISSIONER OR THE COMMISSIONER'S AUTHORIZED REPRESENTATIVE TO MAKE ANY
INSPECTION OF ANY RECORDS  OR  REPORTS  CONCERNING  TAXICABS  AND  THEIR
OWNERS  OR  OPERATORS  FILED  WITH  OR  POSSESSED BY SUCH CITY WHICH THE
COMMISSIONER MAY HAVE REQUESTED FROM SUCH CITY.
  (C) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION,
THE COMMISSIONER, IN HIS OR HER DISCRETION, MAY REQUIRE OR PERMIT ANY OR
ALL PERSONS LIABLE FOR ANY TAX IMPOSED BY THIS ARTICLE, TO MAKE  PAYMENT
TO  BANKS,  BANKING  HOUSES OR TRUST COMPANIES DESIGNATED BY THE COMMIS-
SIONER AND TO FILE RETURNS WITH SUCH  BANKS,  BANKING  HOUSES  OR  TRUST
COMPANIES  AS AGENTS OF THE COMMISSIONER, IN LIEU OF PAYING ANY SUCH TAX
DIRECTLY TO THE COMMISSIONER. HOWEVER, THE COMMISSIONER SHALL  DESIGNATE
ONLY SUCH BANKS, BANKING HOUSES OR TRUST COMPANIES AS ARE ALREADY DESIG-
NATED  BY  THE  COMPTROLLER  AS  DEPOSITORIES PURSUANT TO SECTION TWELVE
HUNDRED EIGHTY-EIGHT OF THIS ARTICLE.
  (D) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION,
THE COMMISSIONER MAY PERMIT THE SECRETARY OF THE TREASURY OF THE  UNITED
STATES OR SUCH SECRETARY'S DELEGATE, OR THE AUTHORIZED REPRESENTATIVE OF
EITHER  SUCH OFFICER, TO INSPECT ANY RETURN FILED UNDER THIS ARTICLE, OR
MAY FURNISH TO SUCH OFFICER OR SUCH OFFICER'S AUTHORIZED  REPRESENTATIVE
AN  ABSTRACT  OF  ANY SUCH RETURN OR SUPPLY SUCH PERSON WITH INFORMATION
CONCERNING AN ITEM CONTAINED IN ANY SUCH RETURN,  OR  DISCLOSED  BY  ANY
INVESTIGATION  OF  TAX LIABILITY UNDER THIS ARTICLE, BUT SUCH PERMISSION
SHALL BE GRANTED OR SUCH INFORMATION FURNISHED ONLY IF THE LAWS  OF  THE
UNITED STATES GRANT SUBSTANTIALLY SIMILAR PRIVILEGES TO THE COMMISSIONER
OR  OFFICER  OF  THIS  STATE  CHARGED WITH THE ADMINISTRATION OF THE TAX
IMPOSED BY THIS ARTICLE, AND ONLY IF SUCH INFORMATION IS TO BE USED  FOR
TAX  PURPOSES ONLY; AND PROVIDED FURTHER THE COMMISSIONER MAY FURNISH TO
THE COMMISSIONER OF INTERNAL REVENUE OR SUCH  COMMISSIONER'S  AUTHORIZED
REPRESENTATIVE  SUCH  RETURNS  FILED  UNDER  THIS  ARTICLE AND OTHER TAX
INFORMATION, AS SUCH COMMISSIONER MAY CONSIDER PROPER, FOR USE IN  COURT
ACTIONS OR PROCEEDINGS UNDER THE INTERNAL REVENUE CODE, WHETHER CIVIL OR
CRIMINAL,  WHERE A WRITTEN REQUEST THEREFOR HAS BEEN MADE TO THE COMMIS-
SIONER BY THE SECRETARY OF THE TREASURY OF THE  UNITED  STATES  OR  SUCH
SECRETARY'S  DELEGATE,  PROVIDED  THE  LAWS  OF  THE UNITED STATES GRANT
SUBSTANTIALLY SIMILAR POWERS TO THE SECRETARY OF  THE  TREASURY  OF  THE
UNITED  STATES  OR  HIS  OR  HER DELEGATE. WHERE THE COMMISSIONER HAS SO
AUTHORIZED USE OF RETURNS AND  OTHER  INFORMATION  IN  SUCH  ACTIONS  OR
PROCEEDINGS,  OFFICERS  AND  EMPLOYEES  OF THE DEPARTMENT MAY TESTIFY IN
SUCH ACTIONS OR PROCEEDINGS IN RESPECT TO SUCH RETURNS OR OTHER INFORMA-
TION.

S. 5451                            18                            A. 8180

  (E) RETURNS AND REPORTS FILED UNDER THIS ARTICLE  SHALL  BE  PRESERVED
FOR  THREE YEARS AND THEREAFTER UNTIL THE COMMISSIONER ORDERS THEM TO BE
DESTROYED.
  (F)  (1)  ANY  OFFICER OR EMPLOYEE OF THE STATE WHO WILLFULLY VIOLATES
THE PROVISIONS OF SUBDIVISION (A) OF THIS  SECTION  SHALL  BE  DISMISSED
FROM  OFFICE  AND BE INCAPABLE OF HOLDING ANY PUBLIC OFFICE FOR A PERIOD
OF FIVE YEARS THEREAFTER.
  (2) CROSS-REFERENCE: FOR CRIMINAL PENALTIES, SEE ARTICLE  THIRTY-SEVEN
OF THIS CHAPTER.
  S  1288.  DEPOSIT  AND  DISPOSITION  OF  REVENUE.  NOTWITHSTANDING ANY
PROVISION OF LAW TO THE CONTRARY: (A) ALL TAXES, INTEREST AND  PENALTIES
COLLECTED OR RECEIVED BY THE COMMISSIONER PURSUANT TO THIS ARTICLE SHALL
BE  DEPOSITED DAILY WITH SUCH RESPONSIBLE BANKS, BANKING HOUSES OR TRUST
COMPANIES, AS MAY BE DESIGNATED BY THE COMPTROLLER, TO THE CREDIT OF THE
COMPTROLLER. SUCH AN ACCOUNT MAY BE ESTABLISHED IN ONE OR MORE  OF  SUCH
DEPOSITORIES.  SUCH  DEPOSITS  SHALL BE KEPT SEPARATE AND APART FROM ALL
OTHER MONEY IN THE POSSESSION OF THE COMPTROLLER. THE COMPTROLLER  SHALL
REQUIRE  ADEQUATE  SECURITY  FROM  ALL  SUCH  DEPOSITORIES. OF THE TOTAL
REVENUE COLLECTED OR RECEIVED UNDER THIS SECTION, THE COMPTROLLER  SHALL
RETAIN  IN  THE  COMPTROLLER'S HANDS SUCH AMOUNT AS THE COMMISSIONER MAY
DETERMINE TO BE NECESSARY FOR REFUNDS UNDER THIS  ARTICLE.  THE  COMMIS-
SIONER  IS AUTHORIZED AND DIRECTED TO DEDUCT FROM SUCH AMOUNTS COLLECTED
OR RECEIVED UNDER THIS ARTICLE, BEFORE DEPOSIT INTO THE ACCOUNTS  SPECI-
FIED  BY  THE  COMPTROLLER,  A REASONABLE AMOUNT NECESSARY TO EFFECTUATE
REFUNDS OF APPROPRIATIONS OF THE DEPARTMENT TO REIMBURSE THE  DEPARTMENT
FOR THE COSTS TO ADMINISTER, COLLECT AND DISTRIBUTE THE TAXES IMPOSED BY
THIS ARTICLE.
  (B)  ON  OR  BEFORE  THE  TWELFTH DAY FOLLOWING THE END OF EACH MONTH,
AFTER RESERVING SUCH AMOUNT FOR SUCH REFUNDS AND SUCH COSTS, THE COMMIS-
SIONER SHALL CERTIFY TO THE COMPTROLLER THE AMOUNT OF  ALL  REVENUES  SO
RECEIVED  PURSUANT TO THIS ARTICLE DURING THE PRIOR MONTH AS A RESULT OF
THE TAXES, INTEREST AND PENALTIES SO IMPOSED.
  (C) THE COMPTROLLER SHALL PAY OVER THE AMOUNT OF REVENUES SO CERTIFIED
BY THE COMMISSIONER TO THE  METROPOLITAN  TRANSPORTATION  AUTHORITY  AID
TRUST  ACCOUNT  OF  THE  METROPOLITAN TRANSPORTATION AUTHORITY FINANCIAL
ASSISTANCE FUND  ESTABLISHED  BY  SECTION  NINETY-TWO-FF  OF  THE  STATE
FINANCE  LAW  FOR  DEPOSIT,  SUBJECT  TO APPROPRIATION, IN THE CORPORATE
TRANSPORTATION ACCOUNT  OF  THE  METROPOLITAN  TRANSPORTATION  AUTHORITY
SPECIAL  ASSISTANCE FUND ESTABLISHED BY SECTION TWELVE HUNDRED SEVENTY-A
OF THE PUBLIC AUTHORITIES LAW TO BE APPLIED AS PROVIDED IN PARAGRAPH (E)
OF SUBDIVISION FOUR OF SUCH SECTION TWELVE HUNDRED SEVENTY-A. ANY  MONEY
COLLECTED  PURSUANT TO THIS ARTICLE THAT IS DEPOSITED BY THE COMPTROLLER
IN THE METROPOLITAN TRANSPORTATION AUTHORITY AID TRUST  ACCOUNT  OF  THE
METROPOLITAN TRANSPORTATION AUTHORITY FINANCIAL ASSISTANCE FUND SHALL BE
HELD  IN  SUCH  FUND FREE AND CLEAR OF ANY CLAIM BY ANY PERSON OR ENTITY
PAYING THE TAX PURSUANT TO THIS ARTICLE, INCLUDING, WITHOUT LIMITING THE
GENERALITY OF THE FOREGOING, ANY RIGHT OR CLAIM AGAINST THE METROPOLITAN
TRANSPORTATION AUTHORITY, ANY OF ITS BONDHOLDERS, OR ANY  SUBSIDIARY  OR
AFFILIATE OF THE METROPOLITAN TRANSPORTATION AUTHORITY.
  S  1289. COOPERATION BY CITY. THE CITY SHALL COOPERATE WITH AND ASSIST
THE COMMISSIONER TO EFFECT THE PURPOSES OF THIS ARTICLE AND THE  COMMIS-
SIONER'S  RESPONSIBILITIES  UNDER  THIS  ARTICLE. SUCH COOPERATION SHALL
INCLUDE FURNISHING  THE  NAMES,  ADDRESSES  AND  ALL  OTHER  INFORMATION
CONCERNING  EVERY  OWNER,  OPERATOR  AND DRIVER OF TAXICABS IN THE CITY,
TOGETHER WITH ANY OTHER INFORMATION THE COMMISSIONER REQUESTS, ALL WITH-
OUT COST TO THE COMMISSIONER.

S. 5451                            19                            A. 8180

  S 1290. PRACTICE AND PROCEDURE. THE PROVISIONS OF ARTICLE TWENTY-SEVEN
OF THIS CHAPTER SHALL APPLY WITH RESPECT TO THE  ADMINISTRATION  OF  AND
PROCEDURE  WITH  RESPECT  TO THE TAX IMPOSED BY THIS ARTICLE IN THE SAME
MANNER AND WITH THE SAME FORCE AND EFFECT AS IF  THE  LANGUAGE  OF  SUCH
ARTICLE TWENTY-SEVEN HAD BEEN INCORPORATED IN FULL INTO THIS ARTICLE AND
HAD  EXPRESSLY  REFERRED  TO  THE  TAX UNDER THIS ARTICLE, EXCEPT TO THE
EXTENT THAT ANY SUCH PROVISION IS EITHER INCONSISTENT WITH  A  PROVISION
OF  THIS  ARTICLE OR IS NOT RELEVANT TO THIS ARTICLE. CRIMINAL PENALTIES
PROVIDED IN SECTION ONE THOUSAND EIGHT HUNDRED TWENTY  OF  THIS  CHAPTER
SHALL  APPLY  IN THE SAME MANNER AND WITH THE SAME FORCE AND EFFECT WITH
RESPECT TO THIS ARTICLE.
  S 2. Section 1825 of the tax law, as amended by section 2 of part N of
chapter 686 of the laws of 2003, is amended to read as follows:
  S 1825. Violation of secrecy provisions of the  tax  law.--Any  person
who  violates  the  provisions of subdivision (b) of section twenty-one,
subdivision one of section two hundred two, subdivision eight of section
two hundred eleven, subdivision (a) of section three  hundred  fourteen,
subdivision  one  or  two  of section four hundred thirty-seven, section
four hundred eighty-seven,  subdivision  one  or  two  of  section  five
hundred  fourteen,  subsection  (e) of section six hundred ninety-seven,
subsection (a) of section nine hundred ninety-four, subdivision  (a)  of
section  eleven  hundred forty-six, SECTION TWELVE HUNDRED EIGHTY-SEVEN,
subdivision (a) of section fourteen hundred eighteen, subsection (a)  of
section fourteen hundred sixty-seven, subdivision (a) of section fifteen
hundred  eighteen, subdivision (a) of section fifteen hundred fifty-five
of this chapter, and subdivision (e) of section 11-1797 of the  adminis-
trative code of the city of New York shall be guilty of a misdemeanor.
  S  3.  This act shall take effect November 1, 2009, and shall apply to
taxicab rides commencing on or after such date.

                                 PART F

  Section 1. The tax law is amended by adding a new  section  1166-a  to
read as follows:
  S  1166-A.  SPECIAL  SUPPLEMENTAL TAX ON PASSENGER CAR RENTALS. (A) IN
ADDITION TO THE TAX IMPOSED UNDER SECTION ELEVEN HUNDRED SIXTY  OF  THIS
ARTICLE  AND  IN  ADDITION TO ANY TAX IMPOSED UNDER ANY OTHER ARTICLE OF
THIS CHAPTER, THERE IS HEREBY IMPOSED AND THERE SHALL BE PAID A  TAX  AT
THE  RATE  OF  FIVE  PERCENT  UPON  THE  RECEIPTS FROM EVERY RENTAL OF A
PASSENGER CAR WHICH IS A RETAIL SALE OF SUCH PASSENGER  CAR  WITHIN  THE
METROPOLITAN  COMMUTER TRANSPORTATION DISTRICT AS DEFINED IN SUBDIVISION
(A) OF SECTION EIGHT HUNDRED OF THIS CHAPTER.
  (B) EXCEPT TO THE EXTENT THAT A  PASSENGER  CAR  RENTAL  DESCRIBED  IN
SUBDIVISION  (A)  OF THIS SECTION HAS ALREADY BEEN OR WILL BE SUBJECT TO
THE TAX IMPOSED UNDER SUCH SUBDIVISION AND EXCEPT AS OTHERWISE  EXEMPTED
UNDER  THIS  ARTICLE,  THERE IS HEREBY IMPOSED ON EVERY PERSON AND THERE
SHALL BE PAID A USE TAX FOR THE USE  WITHIN  THE  METROPOLITAN  COMMUTER
TRANSPORTATION  DISTRICT  AS DEFINED IN SUBDIVISION (A) OF SECTION EIGHT
HUNDRED OF THIS CHAPTER; OF ANY PASSENGER CAR RENTED BY THE  USER  WHICH
IS  A  PURCHASE  AT  RETAIL OF SUCH PASSENGER CAR, BUT NOT INCLUDING ANY
LEASE OF A PASSENGER CAR TO WHICH  SUBDIVISION  (I)  OF  SECTION  ELEVEN
HUNDRED  ELEVEN OF THIS CHAPTER APPLIES. FOR PURPOSES OF THIS PARAGRAPH,
THE TAX SHALL BE AT THE RATE OF FIVE PERCENT OF THE CONSIDERATION  GIVEN
OR  CONTRACTED  TO  BE  GIVEN  FOR SUCH PROPERTY, OR FOR THE USE OF SUCH
PROPERTY, INCLUDING ANY CHARGES FOR SHIPPING OR DELIVERY AS DESCRIBED IN
PARAGRAPH THREE OF SUBDIVISION (B) OF SECTION ELEVEN HUNDRED ONE OF THIS

S. 5451                            20                            A. 8180

CHAPTER,  BUT  EXCLUDING  ANY  CREDIT  FOR  TANGIBLE  PERSONAL  PROPERTY
ACCEPTED IN PART PAYMENT AND INTENDED FOR RESALE.
  S 2. Section 1165 of the tax law, as amended by section 2 of part D of
chapter 85 of the laws of 2002, is amended to read as follows:
  S 1165. Administrative provisions. The [tax] TAXES imposed by [section
eleven  hundred  sixty  of]  this  article  shall  be  administered  and
collected in a like manner as and jointly  with  the  taxes  imposed  by
sections  eleven  hundred five and eleven hundred ten of article twenty-
eight of this chapter. All of the provisions  of  such  article  twenty-
eight  (except  sections  eleven  hundred  seven,  eleven hundred eight,
[eleven hundred nine and] eleven hundred forty-eight, AND, FOR  PURPOSES
OF  THE  TAX  IMPOSED  BY  SECTION  ELEVEN HUNDRED SIXTY, SECTION ELEVEN
HUNDRED  NINE)  relating  to  or  applicable  to   the   administration,
collection  and  review  of  the  taxes  imposed by such sections eleven
hundred five and eleven hundred ten, including, but not limited to,  the
provisions   relating  to  definitions,  exemptions,  returns,  personal
liability for the tax, collection of tax from the  customer,  collection
of tax at the time of registration of a motor vehicle and payment of tax
by  a  person  required to file a return, shall apply to the [tax] TAXES
imposed by this article so far as such provisions can be made applicable
to the [tax] TAXES imposed by this article with such limitations as  set
forth  in  this  article  and  such modifications as may be necessary in
order to adapt such  language  to  the  [tax]  TAXES  so  imposed.  Such
provisions shall apply with the same force and effect as if the language
of those provisions had been set forth in full in this article except to
the extent that any provision is either inconsistent with a provision of
this article or is not relevant to the [tax] TAXES imposed by this arti-
cle. For purposes of this article, any reference in article twenty-eight
to  the tax or taxes imposed by such article shall be deemed to refer to
the [tax] TAXES imposed by this article also unless a different  meaning
is  clearly required. Provided, further, however, that the provisions of
subdivision seven of section eleven hundred  eighteen  of  this  chapter
shall  apply  to  the  [tax]  TAXES on uses within this state imposed by
[section eleven hundred sixty of] this article only in  the  event  that
the  rate  of  the  retail  sales  or use tax paid, under the conditions
described in such subdivision seven, to any other state or  jurisdiction
within  any  other  state exceeds the aggregate rate of the compensating
use tax imposed under section eleven hundred ten of this chapter and any
compensating use tax imposed pursuant to the authority of article  twen-
ty-nine  of  this  chapter,  and  in such event only with respect to the
difference between the rate paid to such  other  state  or  jurisdiction
thereof and such aggregate rate. Provided, further, that for purposes of
this article and for articles twenty-eight and twenty-nine of this chap-
ter,  the provisions of section eleven hundred seventeen of this chapter
shall not apply to the rental, as such term is defined in this  article,
of  motor  vehicles  and that the provisions contained in section eleven
hundred thirty-six of this chapter with respect to filing  a  part-quar-
terly  return  monthly and section eleven hundred thirty-seven-A of this
chapter relating to returns and payments  of  estimated  tax  shall  not
apply to the [tax] TAXES imposed under this article.
  S  3.  Section 1167 of the tax law, as added by section 3 of part D of
chapter 85 of the laws of 2002, is amended to read as follows:
  S 1167. Deposit and disposition of revenue. All  taxes,  interest  and
penalties  collected  or received by the commissioner under this article
shall be deposited and disposed of pursuant to the provisions of section
one hundred seventy-one-a of this chapter, except that  after  reserving

S. 5451                            21                            A. 8180

amounts  in  accordance  with  such section one hundred seventy-one-a of
this chapter, the remainder shall be paid  by  the  comptroller  to  the
credit  of  the  highway  and  bridge  trust fund established by section
eighty-nine-b of the state finance law, PROVIDED, HOWEVER, TAXES, INTER-
EST  AND  PENALTIES  COLLECTED  OR  RECEIVED  PURSUANT TO SECTION ELEVEN
HUNDRED SIXTY-SIX-A OF THIS ARTICLE SHALL BE PAID TO THE CREDIT  OF  THE
METROPOLITAN TRANSPORTATION AUTHORITY AID TRUST ACCOUNT OF THE METROPOL-
ITAN  TRANSPORTATION  AUTHORITY FINANCIAL ASSISTANCE FUND ESTABLISHED BY
SECTION NINETY-TWO-FF OF THE STATE FINANCE LAW.
  S 4. Paragraph 6 of subsection (a) of section 1801 of the tax law,  as
added  by  section 15 of subpart l of part V-1 of chapter 57 of the laws
of 2009, is amended to read as follows:
  (6) fails to collect any tax required to be collected  under  articles
twelve-A,   eighteen,   twenty,   twenty-two   [or],   twenty-eight   OR
TWENTY-EIGHT-A of this chapter, or pursuant to the authority of  article
twenty-nine of this chapter;
  S  5. This act shall take effect June 1, 2009 and shall apply to sales
made or uses occurring on and after such date  in  accordance  with  the
transitional provisions in section 1106 of the tax law.

                                 PART G

  Section  1.  The  state finance law is amended by adding a new section
92-ff to read as follows:
  S 92-FF. METROPOLITAN TRANSPORTATION  AUTHORITY  FINANCIAL  ASSISTANCE
FUND. 1. THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE COMMIS-
SIONER  OF TAXATION AND FINANCE AND THE STATE COMPTROLLER A SPECIAL FUND
TO BE KNOWN AS  THE  "METROPOLITAN  TRANSPORTATION  AUTHORITY  FINANCIAL
ASSISTANCE FUND".
  2.  MONEYS  IN  THE  METROPOLITAN  TRANSPORTATION  AUTHORITY FINANCIAL
ASSISTANCE FUND SHALL BE KEPT SEPARATELY FROM AND SHALL NOT  BE  COMMIN-
GLED  WITH  ANY  OTHER  MONEYS IN THE JOINT OR SOLE CUSTODY OF THE STATE
COMPTROLLER OR THE COMMISSIONER OF TAXATION AND FINANCE.
  3. SUCH FUND SHALL CONSIST OF ALL MONEYS COLLECTED THEREFORE OR  CRED-
ITED  OR  TRANSFERRED  THERETO  FROM  ANY OTHER FUND, ACCOUNT OR SOURCE,
INCLUDING, WITHOUT LIMITATION, THE REVENUES DERIVED FROM  THE  METROPOL-
ITAN   COMMUTER   TRANSPORTATION   MOBILITY   TAX   IMPOSED  BY  ARTICLE
TWENTY-THREE OF THE TAX LAW; REVENUES DERIVED FROM THE  SPECIAL  SUPPLE-
MENTAL  TAX  ON  PASSENGER CAR RENTALS IMPOSED BY SECTION ELEVEN HUNDRED
SIXTY-SIX-A OF THE TAX LAW; REVENUES  DERIVED  FROM  THE  TRANSPORTATION
SURCHARGE  IMPOSED  BY ARTICLE TWENTY-NINE-A OF THE TAX LAW; THE SUPPLE-
MENTAL REGISTRATION FEES IMPOSED BY ARTICLE SEVENTEEN-C OF  THE  VEHICLE
AND  TRAFFIC LAW; AND THE SUPPLEMENTAL METROPOLITAN COMMUTER TRANSPORTA-
TION DISTRICT LICENSE FEES IMPOSED BY SECTION FIVE HUNDRED THREE OF  THE
VEHICLE  AND  TRAFFIC LAW.   ANY INTEREST RECEIVED BY THE COMPTROLLER ON
MONEYS ON DEPOSIT IN THE METROPOLITAN TRANSPORTATION AUTHORITY FINANCIAL
ASSISTANCE FUND SHALL BE RETAINED IN AND BECOME A PART OF SUCH FUND.
  4. THE METROPOLITAN TRANSPORTATION AUTHORITY FINANCIAL ASSISTANCE FUND
SHALL CONSIST OF TWO SEPARATE AND DISTINCT ACCOUNTS: (A)  THE  "MOBILITY
TAX  TRUST  ACCOUNT"  AND (B) THE "METROPOLITAN TRANSPORTATION AUTHORITY
AID TRUST ACCOUNT." MONEYS IN EACH OF THE ACCOUNTS SHALL BE  KEPT  SEPA-
RATELY FROM AND NOT COMMINGLED WITH ANY OTHER MONEYS IN THE METROPOLITAN
TRANSPORTATION AUTHORITY FINANCIAL ASSISTANCE FUND.
  5.  (A)  THE  "MOBILITY  TAX  TRUST ACCOUNT" SHALL CONSIST OF REVENUES
REQUIRED TO BE DEPOSITED THEREIN PURSUANT TO THE PROVISIONS  OF  ARTICLE

S. 5451                            22                            A. 8180

TWENTY-THREE OF THE TAX LAW AND ALL OTHER MONEYS CREDITED OR TRANSFERRED
THERETO FROM ANY OTHER FUND OR SOURCE PURSUANT TO LAW.
  (B)  MONEYS  IN  THE  "MOBILITY  TAX TRUST ACCOUNT" SHALL, PURSUANT TO
APPROPRIATION BY THE LEGISLATURE, BE TRANSFERRED ON A MONTHLY  BASIS  TO
THE  METROPOLITAN  TRANSPORTATION  AUTHORITY FINANCE FUND ESTABLISHED BY
SECTION TWELVE HUNDRED SEVENTY-H  OF  THE  PUBLIC  AUTHORITIES  LAW  AND
UTILIZED IN ACCORDANCE WITH SAID SECTION. IT IS THE INTENT OF THE LEGIS-
LATURE  TO  ENACT TWO APPROPRIATIONS FROM THE MOBILITY TAX TRUST ACCOUNT
TO THE METROPOLITAN TRANSPORTATION AUTHORITY FINANCE FUND ESTABLISHED BY
SECTION TWELVE HUNDRED SEVENTY-H OF THE PUBLIC AUTHORITIES LAW. ONE SUCH
APPROPRIATION SHALL BE EQUAL TO THE AMOUNTS EXPECTED TO BE AVAILABLE FOR
SUCH PURPOSE PURSUANT TO ARTICLE TWENTY-THREE OF THE TAX LAW OR FROM ANY
OTHER MONIES DESCRIBED IN PARAGRAPH (A) OF THIS SUBDIVISION  DURING  THE
TWO  THOUSAND  NINE--TWO THOUSAND TEN FISCAL YEAR AND SHALL BE EFFECTIVE
IN THAT FISCAL YEAR. THE OTHER SUCH APPROPRIATION SHALL BE EQUAL TO  THE
AMOUNTS  EXPECTED  TO  BE AVAILABLE FOR SUCH PURPOSE PURSUANT TO ARTICLE
TWENTY-THREE OF THE TAX LAW OR FROM ANY OTHER MONIES DESCRIBED IN  PARA-
GRAPH  (A) OF THIS SUBDIVISION DURING THE TWO THOUSAND TEN--TWO THOUSAND
ELEVEN FISCAL YEAR AND SHALL, NOTWITHSTANDING THE PROVISIONS OF  SECTION
FORTY  OF THIS CHAPTER, TAKE EFFECT ON THE FIRST DAY OF THE TWO THOUSAND
TEN--TWO THOUSAND ELEVEN FISCAL YEAR AND LAPSE ON THE LAST DAY  OF  THAT
FISCAL YEAR. IT IS THE INTENT OF THE GOVERNOR TO SUBMIT AND THE LEGISLA-
TURE  TO  ENACT  FOR  EACH  FISCAL YEAR AFTER THE TWO THOUSAND NINE--TWO
THOUSAND TEN FISCAL YEAR IN AN ANNUAL BUDGET BILL:  (I) AN APPROPRIATION
FOR THE AMOUNT EXPECTED TO  BE  AVAILABLE  IN  THE  MOBILITY  TAX  TRUST
ACCOUNT  DURING  SUCH  FISCAL  YEAR  FOR THE METROPOLITAN TRANSPORTATION
AUTHORITY PURSUANT TO ARTICLE TWENTY-THREE OF THE TAX LAW OR  ANY  OTHER
MONIES  DESCRIBED  IN  PARAGRAPH  (A)  OF  THIS SUBDIVISION; AND (II) AN
APPROPRIATION FOR THE AMOUNT PROJECTED BY THE DIRECTOR OF THE BUDGET  TO
BE DEPOSITED IN THE MOBILITY TAX TRUST ACCOUNT PURSUANT TO ARTICLE TWEN-
TY-THREE  OF THE TAX LAW OR FROM ANY OTHER MONIES DESCRIBED IN PARAGRAPH
(A) OF THIS SUBDIVISION FOR THE NEXT SUCCEEDING FISCAL YEAR. SUCH APPRO-
PRIATION FOR PAYMENT OF  REVENUES  PROJECTED  TO  BE  DEPOSITED  IN  THE
SUCCEEDING  FISCAL YEAR SHALL, NOTWITHSTANDING THE PROVISIONS OF SECTION
FORTY OF THIS CHAPTER, TAKE EFFECT ON THE FIRST DAY OF  SUCH  SUCCEEDING
FISCAL  YEAR  AND  LAPSE ON THE LAST DAY OF SUCH FISCAL YEAR. IF FOR ANY
FISCAL YEAR COMMENCING ON OR AFTER THE FIRST DAY OF APRIL, TWO  THOUSAND
TEN THE GOVERNOR FAILS TO SUBMIT A BUDGET BILL CONTAINING THE FOREGOING,
OR  THE LEGISLATURE FAILS TO ENACT A BILL WITH SUCH PROVISIONS, THEN THE
METROPOLITAN TRANSPORTATION AUTHORITY SHALL NOTIFY THE COMPTROLLER,  THE
DIRECTOR  OF THE BUDGET, THE CHAIRPERSON OF THE SENATE FINANCE COMMITTEE
AND THE CHAIRPERSON OF THE ASSEMBLY WAYS AND MEANS COMMITTEE OF  AMOUNTS
REQUIRED  TO BE DISBURSED FROM THE APPROPRIATION MADE DURING THE PRECED-
ING FISCAL YEAR FOR PAYMENT IN SUCH FISCAL YEAR. IN NO EVENT  SHALL  THE
COMPTROLLER MAKE ANY PAYMENTS FROM SUCH APPROPRIATION PRIOR TO MAY FIRST
OF  SUCH  FISCAL  YEAR, AND UNLESS AND UNTIL THE DIRECTOR OF THE BUDGET,
THE CHAIRPERSON OF THE SENATE FINANCE COMMITTEE AND THE  CHAIRPERSON  OF
THE ASSEMBLY WAYS AND MEANS COMMITTEE HAVE BEEN NOTIFIED OF THE REQUIRED
PAYMENTS  AND  THE  TIMING OF SUCH PAYMENTS TO BE MADE FROM THE MOBILITY
TAX TRUST ACCOUNT TO THE METROPOLITAN TRANSPORTATION  AUTHORITY  FINANCE
FUND  ESTABLISHED  BY  SECTION  TWELVE  HUNDRED  SEVENTY-H OF THE PUBLIC
AUTHORITIES LAW AT LEAST FORTY-EIGHT HOURS PRIOR TO ANY  SUCH  PAYMENTS.
UNTIL  SUCH  TIME AS PAYMENTS PURSUANT TO SUCH APPROPRIATION ARE MADE IN
FULL, REVENUES IN THE MOBILITY TAX TRUST ACCOUNT SHALL NOT BE PAID  OVER
TO ANY PERSON OTHER THAN THE METROPOLITAN TRANSPORTATION AUTHORITY.

S. 5451                            23                            A. 8180

  6.  (A)  THE "METROPOLITAN TRANSPORTATION AUTHORITY AID TRUST ACCOUNT"
SHALL CONSIST OF REVENUES REQUIRED TO BE DEPOSITED THEREIN  PURSUANT  TO
THE  PROVISIONS  OF  SECTION  ELEVEN HUNDRED SIXTY-SIX-A OF THE TAX LAW;
ARTICLE TWENTY-NINE-A OF THE TAX LAW; ARTICLE SEVENTEEN-C OF THE VEHICLE
AND TRAFFIC LAW; AND SECTION FIVE HUNDRED THREE OF THE VEHICLE AND TRAF-
FIC  LAW,  AND ALL OTHER MONEYS CREDITED OR TRANSFERRED THERETO FROM ANY
OTHER FUND OR SOURCE PURSUANT TO LAW.
  (B) MONEYS IN THE  METROPOLITAN  TRANSPORTATION  AUTHORITY  AID  TRUST
ACCOUNT  SHALL, FOLLOWING APPROPRIATION BY THE LEGISLATURE, BE DEPOSITED
QUARTERLY BY THE COMPTROLLER INTO THE CORPORATE  TRANSPORTATION  ACCOUNT
OF  THE  METROPOLITAN  TRANSPORTATION  AUTHORITY SPECIAL ASSISTANCE FUND
ESTABLISHED BY SECTION TWELVE HUNDRED SEVENTY-A OF THE  PUBLIC  AUTHORI-
TIES LAW, TO BE APPLIED AS PROVIDED IN PARAGRAPH (E) OF SUBDIVISION FOUR
OF SUCH SECTION TWELVE HUNDRED SEVENTY-A OF THE PUBLIC AUTHORITIES LAW.
  7.  NOTHING  CONTAINED IN THIS SECTION SHALL BE DEEMED TO RESTRICT THE
RIGHT OF THE STATE TO AMEND, REPEAL, MODIFY OR OTHERWISE ALTER  STATUTES
IMPOSING OR RELATING TO THE TAXES AND FEES PRODUCING REVENUES FOR DEPOS-
IT  IN  THE  METROPOLITAN  TRANSPORTATION AUTHORITY FINANCIAL ASSISTANCE
FUND OR THE APPROPRIATIONS RELATING THERETO. THE METROPOLITAN  TRANSPOR-
TATION  AUTHORITY  SHALL  NOT INCLUDE WITHIN ANY RESOLUTION, CONTRACT OR
AGREEMENT WITH HOLDERS OF THE BONDS OR NOTES ISSUED UNDER SECTION TWELVE
HUNDRED SIXTY-NINE OF THE PUBLIC AUTHORITIES  LAW  ANY  PROVISION  WHICH
PROVIDES  THAT  A DEFAULT OCCURS AS A RESULT OF THE STATE EXERCISING ITS
RIGHT TO AMEND, REPEAL, MODIFY OR OTHERWISE ALTER SUCH TAXES  OR  APPRO-
PRIATIONS.
  S 2. This act shall take effect immediately.

                                PART G-1

  Section 1. The several amounts specified in this act for aid to local-
ities, or so much thereof as may be sufficient to accomplish the purpose
of  providing  financial  assistance  to the metropolitan transportation
authority are hereby appropriated and authorized to be paid as  provided
in this section.

METROPOLITAN TRANSPORTATION AUTHORITY SUPPORT PROGRAM

  Special   Revenue  Funds  -  Other/Aid  to
    Localities
  Metropolitan   Transportation    Authority
    Financial Assistance Fund - 225
  Mobility Tax Trust Account

To the metropolitan transportation authority
  for  deposit in the metropolitan transpor-
  tation authority finance fund pursuant  to
  the  provisions  of  section  92-ff of the
  state finance law, as added by the chapter
  of the  laws  of  2009  which  added  this
  section.    Moneys appropriated herein may
  be made available at such times  and  upon
  such conditions as may be deemed appropri-
  ate  by the commissioner of transportation
  and the director of the budget in  accord-
  ance  with  section  92-ff  of  the  state
  finance law ............................. $1,482,000,000

S. 5451                            24                            A. 8180

To the metropolitan transportation authority
  for deposit in the metropolitan  transpor-
  tation  authority finance fund pursuant to
  the provisions of  section  92-ff  of  the
  state finance law, as added by the chapter
  of  the  laws  of  2009  which  added this
  section, for the period April 1,  2010  to
  March 31, 2011 and notwithstanding section
  40  of  the  state  finance law shall take
  effect on April 1, 2010 and shall lapse on
  March 31, 2011 .......................... $1,563,000,000

  Special  Revenue  Funds  -  Other/Aid   to
    Localities
  Metropolitan    Transportation   Authority
    Financial Assistance Fund - 225
  Metropolitan Transportation Authority  Aid
    Trust Account

Notwithstanding  any  inconsistent provision
  of law, the following appropriation is for
  payment  of   assistance   provided   that
  payments  from this appropriation shall be
  made pursuant to a financial plan approved
  by the director of the budget.
To the metropolitan transportation authority
  for deposit in the metropolitan  transpor-
  tation  authority corporate transportation
  account of the metropolitan transportation
  authority special assistance fund pursuant
  to section 92-ff of the state finance  law
  ........................................... $161,100,000

  General Fund / State Operations
  State Purposes Account - 003

                    Nonpersonal Service

For the payment of the metropolitan commuter
  transportation mobility  tax  pursuant  to
  Article 23 of the tax law as added by part
  C of the chapter of the laws of 2009 which
  added  this  section  on  behalf  of state
  employees  employed  in  the  Metropolitan
  Commuter Transportation District ........... $18,000,000

  S  2.  No  expenditure  may be made from any appropriation in this act
until a certificate of approval has been issued by the director  of  the
budget  and  a  copy  of such certificate shall have been filed with the
state comptroller, the chairman of the senate finance committee and  the
chairman of the assembly ways and means committee.
  S 3. This act shall take effect immediately.

                                 PART H

S. 5451                            25                            A. 8180

  Section  1.  Section  1261  of the public authorities law, as added by
chapter 324 of the laws of 1965, subdivision 7 as amended by chapter 415
of the laws of 1966, subdivision 8 as amended by chapter 569 of the laws
of 1973, subdivision 14 as amended by section 20 and subdivisions 19 and
20  as  added by section 21 of part O of chapter 61 of the laws of 2000,
subdivisions 16 and 17 as added by chapter 717 of the laws of 1967,  and
subdivision  18  as added by chapter 427 of the laws of 1983, is amended
to read as follows:
  S 1261. Definitions. As used or referred to in this  title,  unless  a
different meaning clearly appears from the context:
  1.    "Authority" shall mean the corporation created by section twelve
hundred sixty-three of this title.
  2.  "Authority facilities" shall mean the authority's railroad,  omni-
bus,  marine  and  aviation  facilities and operations pursuant to joint
service arrangements.
  3. "BUDGET" SHALL MEAN THE PRELIMINARY,  FINAL  PROPOSED  AND  ADOPTED
FINAL PLANS OF THE AUTHORITY, AND EACH OF ITS AGENCIES.
  [3.]  4.  "Comptroller" shall mean the comptroller of the state of New
York.
  [4.] 5. "Equipment" shall mean  rolling  stock,  omnibuses,  vehicles,
air,  marine  or  surface  craft, motors, boilers, engines, wires, ways,
conduits  and  mechanisms,  machinery,  tools,  implements,   materials,
supplies,  instruments  and  devices  of every nature whatsoever used or
useful for transportation purposes or for the generation or transmission
of motive power including but not limited to all power houses,  and  all
apparatus and all devices for signalling, communications and ventilation
as  may  be  necessary,  convenient  or desirable for the operation of a
transportation facility.
  [5.] 6. "Federal government" shall mean the United States of  America,
and any officer, department, board, commission, bureau, division, corpo-
ration, agency or instrumentality thereof.
  7.  "GAP"  SHALL  MEAN  THE  DIFFERENCE BETWEEN PROJECTED REVENUES AND
EXPENSES FOR ANY GIVEN FISCAL YEAR BASED ON THE EXISTING FARE STRUCTURE.
  8. "GAP-CLOSING INITIATIVE" SHALL MEAN ANY ACTION TO REDUCE A PROJECT-
ED GAP.
  [6.] 9. "Governor" shall mean the governor of the state of New York.
  [7.] 10. "Joint service arrangements" shall mean agreements between or
among the authority and any common carrier  or  freight  forwarder,  the
state,  any  state  agency,  the  federal government, any other state or
agency or instrumentality thereof, any public authority of this  or  any
other  state, or any political subdivision or municipality of the state,
relating  to  property,  buildings,  structures,  facilities,  services,
rates, fares, classifications, divisions, allowances or charges (includ-
ing  charges between operators of railroad, omnibus, marine and aviation
facilities), or rules or  regulations  pertaining  thereto,  for  or  in
connection with or incidental to transportation in part in or upon rail-
road, omnibus, marine or aviation facilities located within the district
and  in part in or upon railroad, omnibus, marine or aviation facilities
located outside the district.
  [8.] 11. "Marine and aviation facilities"  shall  mean  equipment  and
craft  for  the  transportation  of  passengers,  mail and cargo between
points within the district or pursuant to joint service arrangements, by
marine craft and aircraft of all types  including  but  not  limited  to
hydrofoils,  ferries,  lighters,  tugs, barges, helicopters, amphibians,
seaplanes or other contrivances now or hereafter used in  navigation  or
movement  on waterways or in the navigation of or flight in airspace. It

S. 5451                            26                            A. 8180

shall also mean any marine port or airport facility within the transpor-
tation district but outside the port of New York district as defined  in
chapter  one  hundred fifty-four of the laws of nineteen hundred twenty-
one,  including  but  not limited to terminals, docks, piers, bulkheads,
ramps or any facility or real property necessary, convenient or  desira-
ble  for the accommodation of passengers and cargo or the docking, sail-
ing, landing, taking off, accommodation  or  servicing  of  such  marine
craft or aircraft.
  [9.]  12.  "Omnibus facilities" shall mean motor vehicles, of the type
operated by carriers subject to the jurisdiction of the  public  service
commission,  engaged  in  the  transportation  of  passengers  and their
baggage, express and mail between points within the district or pursuant
to joint  service  arrangements,  and  equipment,  property,  buildings,
structures,  improvements,  loading or unloading areas, parking areas or
other facilities, necessary, convenient or desirable  for  the  accommo-
dation  of  such  motor  vehicles or their passengers, including but not
limited to buildings, structures and areas notwithstanding that portions
may not be devoted to any omnibus purpose other than the  production  of
revenues  available  for the costs and expenses of all or any facilities
of the authority.
  [10.] 13. "Railroad facilities" shall mean right of  way  and  related
trackage,  rails, cars, locomotives, other rolling stock, signal, power,
fuel, communication and ventilation  systems,  power  plants,  stations,
terminals, storage yards, repair and maintenance shops, yards, equipment
and  parts, offices and other real estate or personalty used or held for
or incidental to the operation, rehabilitation  or  improvement  of  any
railroad  operating  or to operate between points within the district or
pursuant to joint service arrangements, including  but  not  limited  to
buildings,  structures,  and areas notwithstanding that portions thereof
may not be devoted to any railroad purpose other than the production  of
revenues  available  for the costs and expenses of all or any facilities
of the authority.
  [11.] 14. "Real property" shall mean lands, structures, franchises and
interests in land, waters, lands under water, riparian  rights  and  air
rights  and  any and all things and rights included within said term and
includes not only fees simple absolute  but  also  any  and  all  lesser
interests  including  but not limited to easements, rights of way, uses,
leases, licenses and  all  other  incorporeal  hereditaments  and  every
estate, interest or right, legal or equitable, including terms for years
and liens thereon by way of judgments, mortgages or otherwise.
  [12.] 15. "State" shall mean the state of New York.
  [13.]  16.  "State  agency" shall mean any officer, department, board,
commissioner, bureau, division, public benefit  corporation,  agency  or
instrumentality of the state.
  [14.]  17. "Transportation facility" shall mean any transit, railroad,
omnibus, marine or aviation facility and any person, firm,  partnership,
association  or,  corporation  which  owns,  leases or operates any such
facility or any other facility used for service in the transportation of
passengers, United States mail or personal property as a common  carrier
for  hire  and  any  portion thereof and the rights, leaseholds or other
interest therein together with routes, tracks, extensions,  connections,
parking lots, garages, warehouses, yards, storage yards, maintenance and
repair  shops, terminals, stations and other related facilities thereof,
the devices, appurtenances, and equipment thereof and power  plants  and
other  instrumentalities used or useful therefor or in connection there-
with.

S. 5451                            27                            A. 8180

  [15.] 18. "Transportation district"  and  "district"  shall  mean  the
metropolitan  commuter transportation district created by section twelve
hundred sixty-two of this title.
  [16.] 19. "New York city transit authority" shall mean the corporation
created by section twelve hundred one of this chapter.
  [17.]  20.  "Triborough  bridge  and  tunnel authority" shall mean the
corporation created by section five hundred fifty-two of this chapter.
  [18.] 21. "Inspector general" shall mean the metropolitan  transporta-
tion authority inspector general.
  [19.]  22.  "Revenues."  All  monies  received by the authority or its
subsidiaries, or New York city transit authority or its subsidiaries, or
Triborough bridge and tunnel authority, as the case may be, from whatev-
er source, derived directly or indirectly from or in connection with the
operations of the respective entity.
  [20.] 23. "Transit facility." Transit facility as defined in  subdivi-
sion fifteen of section twelve hundred of this article.
  24. "UTILIZATION" SHALL MEAN PUBLIC USAGE OF THE SUBWAY, BUS, RAILROAD
AND  PARATRANSIT  SERVICES,  AND  BRIDGE  AND  TUNNEL  CROSSINGS, OF THE
AUTHORITY AND ITS AFFILIATES AND SUBSIDIARIES AS REFLECTED IN  EMPIRICAL
DATA.
  S 2. Section 1204-a of the public authorities law, as added by chapter
483 of the laws of 1981, is renumbered section 1204-e.
  S  3. Subparagraph 1 of paragraph (a) of subdivision 1 of section 1263
of the public authorities law, as amended by chapter 549 of the laws  of
1994, is amended to read as follows:
  (1)  There is hereby created the "metropolitan transportation authori-
ty." The authority shall be a body corporate and politic constituting  a
public  benefit  corporation. The authority shall consist of a chairman,
sixteen other voting members, and  two  non-voting  and  four  alternate
non-voting  members,  as described in subparagraph two of this paragraph
appointed by the governor by and with the  advice  and  consent  of  the
senate.    ANY  MEMBER  APPOINTED  TO A TERM COMMENCING ON OR AFTER JUNE
THIRTIETH, TWO THOUSAND NINE SHALL HAVE EXPERIENCE IN ONE OR MORE OF THE
FOLLOWING AREAS: TRANSPORTATION, PUBLIC ADMINISTRATION, BUSINESS MANAGE-
MENT,  FINANCE,  ACCOUNTING,  LAW,  ENGINEERING,  LAND  USE,  URBAN  AND
REGIONAL   PLANNING,   MANAGEMENT   OF  LARGE  CAPITAL  PROJECTS,  LABOR
RELATIONS, OR HAVE EXPERIENCE IN SOME OTHER AREA OF ACTIVITY CENTRAL  TO
THE  MISSION  OF THE AUTHORITY. Four of the sixteen voting members other
than the chairman shall be appointed on the  written  recommendation  of
the  mayor  of  the  city  of  New  York; and each of seven other voting
members other than the chairman shall be appointed after selection  from
a written list of three recommendations from the chief executive officer
of  the  county  in  which  the  particular member is required to reside
pursuant to the provisions of this subdivision. Of the members appointed
on recommendation of the chief executive officer of a county,  one  such
member shall be, at the time of appointment, a resident of the county of
Nassau[;], one a resident of the county of Suffolk[;], one a resident of
the county of Westchester[; and], one a resident of the county of Dutch-
ess, one a resident of the county of Orange, one a resident of the coun-
ty of Putnam and one a resident of the county of Rockland, provided that
the  term of any member who is a resident of a county that has withdrawn
from the  metropolitan  commuter  transportation  district  pursuant  to
section  twelve  hundred  seventy-nine-b of this article shall terminate
upon the effective date of such county's withdrawal from such  district.
Of  the  five  voting members, other than the chairman, appointed by the
governor without recommendation from any other person, three  shall  be,

S. 5451                            28                            A. 8180

at  the  time  of appointment, residents of the city of New York and two
shall be, at the time of appointment, residents of such city or  of  any
of  the aforementioned counties in the metropolitan commuter transporta-
tion  district.  The chairman and each of the members shall be appointed
for a term of six years,  provided  however,  that  the  chairman  first
appointed shall serve for a term ending June thirtieth, nineteen hundred
eighty-one, [and the] PROVIDED THAT THIRTY DAYS AFTER THE EFFECTIVE DATE
OF  THE  CHAPTER  OF  THE  LAWS  OF TWO THOUSAND NINE WHICH AMENDED THIS
SUBPARAGRAPH, THE TERM OF THE CHAIRMAN SHALL EXPIRE; PROVIDED,  FURTHER,
THAT  SUCH  CHAIRMAN  MAY CONTINUE TO DISCHARGE THE DUTIES OF HIS OR HER
OFFICE UNTIL THE POSITION OF CHAIRMAN IS FILLED BY  APPOINTMENT  BY  THE
GOVERNOR  UPON THE ADVICE AND CONSENT OF THE SENATE AND THE TERM OF SUCH
NEW CHAIRMAN SHALL TERMINATE JUNE THIRTIETH, TWO THOUSAND  FIFTEEN.  THE
sixteen  other  members  first  appointed  shall serve for the following
terms: The members from the counties of  Nassau  and  Westchester  shall
each  serve  for  a term ending June thirtieth, nineteen hundred eighty-
five; the members from the county of Suffolk and from  the  counties  of
Dutchess, Orange, Putnam and Rockland shall each serve for a term ending
June   thirtieth,  nineteen  hundred  ninety-two;  two  of  the  members
appointed on recommendation of the mayor of the city of New  York  shall
each  serve  for  a term ending June thirtieth, nineteen hundred eighty-
four and, two shall each serve for a term ending June  thirtieth,  nine-
teen  hundred  eighty-one;  two of the members appointed by the governor
without the recommendation of any other person shall each  serve  for  a
term  ending June thirtieth, nineteen hundred eighty-two, two shall each
serve for a term ending June thirtieth, nineteen hundred eighty and  one
shall  serve  for a term ending June thirtieth, nineteen hundred eighty-
five. The two non-voting and four  alternate  non-voting  members  shall
serve  until January first, two thousand one. The members from the coun-
ties of Dutchess, Orange, Putnam and Rockland shall cast one  collective
vote.
  S  4.  Paragraph  (a)  of  subdivision 1 of section 1263 of the public
authorities law, as amended by chapter 929  of  the  laws  of  1986,  is
amended to read as follows:
  (a)  There is hereby created the "metropolitan transportation authori-
ty." The authority shall be a body corporate and politic constituting  a
public  benefit  corporation.  The authority shall consist of a chairman
and sixteen other members appointed by the  governor  by  and  with  the
advice  and  consent  of  the  senate.    ANY MEMBER APPOINTED TO A TERM
COMMENCING ON OR AFTER JUNE THIRTIETH,  TWO  THOUSAND  NINE  SHALL  HAVE
EXPERIENCE IN ONE OR MORE OF THE FOLLOWING AREAS OF EXPERTISE: TRANSPOR-
TATION, PUBLIC ADMINISTRATION, BUSINESS MANAGEMENT, FINANCE, ACCOUNTING,
LAW,  ENGINEERING,  LAND USE, URBAN AND REGIONAL PLANNING, MANAGEMENT OF
LARGE CAPITAL PROJECTS, LABOR RELATIONS,  OR  HAVE  EXPERIENCE  IN  SOME
OTHER  AREA OF ACTIVITY CENTRAL TO THE MISSION OF THE AUTHORITY. Four of
the sixteen members other than the chairman shall be  appointed  on  the
written recommendation of the mayor of the city of New York; and each of
seven  other  members  other  than the chairman shall be appointed after
selection from a written list of three recommendations  from  the  chief
executive  officer  of  the  county  in  which  the particular member is
required to reside pursuant to the provisions of  this  subdivision.  Of
the  members  appointed on recommendation of the chief executive officer
of a county, one such member shall be, at the  time  of  appointment,  a
resident  of  the  county  of  Nassau;  one  a resident of the county of
Suffolk; one a resident of the county of Westchester; and one a resident
of the county of Dutchess, one a resident of the county of Orange, one a

S. 5451                            29                            A. 8180

resident of the county of Putnam and one a resident  of  the  county  of
Rockland,  provided  that  the term of any member who is a resident of a
county that has withdrawn from the metropolitan commuter  transportation
district pursuant to section twelve hundred seventy-nine-b of this arti-
cle  shall terminate upon the effective date of such county's withdrawal
from such district. Of  the  five  members,  other  than  the  chairman,
appointed  by the governor without recommendation from any other person,
three shall be, at the time of appointment, residents of the city of New
York and two shall be, at the time of  appointment,  residents  of  such
city or of any of the aforementioned counties in the metropolitan commu-
ter  transportation district. The chairman and each of the members shall
be appointed for a term of six years, provided however, that the  chair-
man  first appointed shall serve for a term ending June thirtieth, nine-
teen hundred eighty-one, [and the] PROVIDED THAT THIRTY DAYS  AFTER  THE
EFFECTIVE  DATE  OF  THE  CHAPTER OF THE LAWS OF TWO THOUSAND NINE WHICH
AMENDED THIS PARAGRAPH, THE TERM OF THE CHAIRMAN SHALL EXPIRE; PROVIDED,
FURTHER, THAT SUCH CHAIRMAN MAY CONTINUE TO DISCHARGE THE DUTIES OF  HIS
OFFICE  UNTIL  THE  POSITION OF CHAIRMAN IS FILLED BY APPOINTMENT BY THE
GOVERNOR UPON THE ADVICE AND CONSENT OF THE SENATE AND THE TERM OF  SUCH
NEW  CHAIRMAN  SHALL TERMINATE JUNE THIRTIETH, TWO THOUSAND FIFTEEN. THE
sixteen other members first appointed  shall  serve  for  the  following
terms:  The  members  from  the counties of Nassau and Westchester shall
each serve for a term ending June thirtieth,  nineteen  hundred  eighty-
five;  the  members  from the county of Suffolk and from the counties of
Dutchess, Orange, Putnam and Rockland shall each serve for a term ending
June  thirtieth,  nineteen  hundred  ninety-two;  two  of  the   members
appointed  on  recommendation of the mayor of the city of New York shall
each serve for a term ending June thirtieth,  nineteen  hundred  eighty-
four  and,  two shall each serve for a term ending June thirtieth, nine-
teen hundred eighty-one; two of the members appointed  by  the  governor
without  the  recommendation  of any other person shall each serve for a
term ending June thirtieth, nineteen hundred eighty-two, two shall  each
serve  for a term ending June thirtieth, nineteen hundred eighty and one
shall serve for a term ending June thirtieth, nineteen  hundred  eighty-
five.  The  members  from  the  counties of Dutchess, Orange, Putnam and
Rockland shall cast one collective vote.
  S 5. Paragraph (a) of subdivision 4 of  section  1263  of  the  public
authorities  law,  as  amended  by  chapter  766 of the laws of 2005, is
amended, and a new paragraph (d) is added to read as follows:
  (a) [On recommendation of the chairman, the authority shall]  NOTWITH-
STANDING  SUBDIVISION  THREE OF SECTION TWENTY-EIGHT HUNDRED TWENTY-FOUR
OF THIS CHAPTER OR ANY OTHER PROVISION  OF  LAW  TO  THE  CONTRARY,  THE
CHAIRMAN SHALL BE THE CHIEF EXECUTIVE OFFICER OF THE AUTHORITY AND SHALL
BE  RESPONSIBLE  FOR  THE  DISCHARGE OF THE EXECUTIVE AND ADMINISTRATIVE
FUNCTIONS AND POWERS OF THE AUTHORITY. THE CHAIRMAN MAY appoint an exec-
utive director [who shall be responsible for the] AND SUCH  OTHER  OFFI-
CIALS  AND  EMPLOYEES  AS  SHALL  IN  HIS  OR HER JUDGEMENT BE NEEDED TO
discharge [of] the executive and administrative functions and powers  of
the  authority[,  including  the administration and the day-to-day oper-
ations of the authority and who shall not be a member of the authority].
  (D) NOTWITHSTANDING PARAGRAPH (C) OF SUBDIVISION ONE OF SECTION  TWEN-
TY-EIGHT  HUNDRED  TWENTY-FOUR OF THIS CHAPTER OR ANY OTHER PROVISION OF
LAW TO THE CONTRARY, THE CHAIRMAN SHALL NOT PARTICIPATE IN  ESTABLISHING
AUTHORITY  POLICIES  REGARDING  THE  PAYMENT OF SALARY, COMPENSATION AND
REIMBURSEMENT TO, NOR ESTABLISH RULES FOR THE TIME  AND  ATTENDANCE  OF,
THE  CHIEF  EXECUTIVE OFFICER. THE SALARY OF THE CHAIRMAN, AS DETERMINED

S. 5451                            30                            A. 8180

PURSUANT TO SUBDIVISION TWO OF THIS SECTION, SHALL ALSO BE  COMPENSATION
FOR ALL SERVICES PERFORMED AS CHIEF EXECUTIVE OFFICER.
  S  6.  Subdivision 2 of section 1201 of the public authorities law, as
amended by chapter 766 of the laws  of  2005,  is  amended  to  read  as
follows:
  2.  The  chairman  of such board shall be the chairman of metropolitan
transportation authority, serving ex officio, and, PROVIDED  THAT  THERE
IS  AN  EXECUTIVE DIRECTOR OF THE METROPOLITAN TRANSPORTATION AUTHORITY,
the executive director of the authority shall be the executive  director
of  the  metropolitan  transportation  authority,  serving  ex  officio.
NOTWITHSTANDING SUBDIVISION THREE OF SECTION TWENTY-EIGHT HUNDRED  TWEN-
TY-FOUR  OF  THIS CHAPTER OR ANY OTHER PROVISION OF LAW TO THE CONTRARY,
THE CHAIRMAN SHALL BE THE CHIEF EXECUTIVE OFFICER OF THE  AUTHORITY  AND
SHALL  BE RESPONSIBLE FOR THE DISCHARGE OF THE EXECUTIVE AND ADMINISTRA-
TIVE FUNCTIONS AND POWERS OF THE AUTHORITY. The CHAIRMAN  AND  executive
director,  IF ANY, EACH shall be empowered to delegate his or her [func-
tion] FUNCTIONS and [power to appoint, discipline  and  remove  officers
and employees] POWERS to one or more officers or employees designated by
him or her.
  S  7.  Subdivision  1 of section 552 of the public authorities law, as
amended by chapter 766 of the laws  of  2005,  is  amended  to  read  as
follows:
  1. A board, to be known as "Triborough bridge and tunnel authority" is
hereby created. Such board shall be a body corporate and politic consti-
tuting  a  public  benefit  corporation.  It  shall consist of seventeen
members, all serving ex officio. Those members shall be the persons  who
from  time  to  time  shall  hold the offices of chairman and members of
metropolitan transportation authority. The chairman of such board  shall
be  the  chairman  of  metropolitan transportation authority, serving ex
officio, and, PROVIDED THAT THERE IS AN EXECUTIVE DIRECTOR OF THE METRO-
POLITAN TRANSPORTATION AUTHORITY, the executive director of the authori-
ty shall be the executive director of  the  metropolitan  transportation
authority,  serving  ex  officio.  NOTWITHSTANDING  SUBDIVISION THREE OF
SECTION TWENTY-EIGHT HUNDRED TWENTY-FOUR OF THIS CHAPTER  OR  ANY  OTHER
PROVISION OF LAW TO THE CONTRARY, THE CHAIRMAN SHALL BE THE CHIEF EXECU-
TIVE OFFICER OF THE AUTHORITY AND SHALL BE RESPONSIBLE FOR THE DISCHARGE
OF THE EXECUTIVE AND ADMINISTRATIVE FUNCTIONS AND POWERS OF THE AUTHORI-
TY. The CHAIRMAN AND executive director, IF ANY, EACH shall be empowered
to  delegate  his  or  her  [function]  FUNCTIONS and [power to appoint,
discipline and remove officers and employees] POWERS  to  the  executive
officer  of the Triborough bridge and tunnel authority or to such person
as may succeed to the powers and duties of said executive  officer.  The
chairman  and  other members of the board hereby created, and the execu-
tive director, IF ANY, shall not be entitled to compensation  for  their
services  hereunder  but  shall  be  entitled to reimbursement for their
actual and necessary expenses incurred in the performance of their offi-
cial duties.
  S 7-a. Subdivision 7 of section 1263 of the public authorities law, as
added by chapter 324 of the laws of 1965, is amended to read as follows:
  7. The governor may remove any member  for  inefficiency,  neglect  of
duty,  BREACH  OF  FIDUCIARY  DUTY  or misconduct in office after giving
[him] THE MEMBER a copy of the charges against [him] THE MEMBER  and  an
opportunity  to  be heard, in person or by counsel in [his] THE MEMBER'S
defense, upon not less than ten days' notice. If any member shall be  so
removed,  the  governor  shall  file  in the office of the department of

S. 5451                            31                            A. 8180

state a complete statement of charges made against such member, and  his
findings thereon, together with a complete record of the proceedings.
  S  8.  Subdivision 5 of section 1266 of the public authorities law, as
amended by section 23 of part O of chapter 61 of the laws  of  2000,  is
amended to read as follows:
  5.  The authority may acquire, hold, own, lease, establish, construct,
effectuate, operate, maintain, renovate, improve, extend or  repair  any
transportation  facilities  through,  and  cause  any one or more of its
powers, duties, functions or activities to be exercised or performed by,
one or more wholly owned subsidiary corporations of the authority, or by
New York city transit authority or any of its subsidiary corporations in
the case of transit facilities and may transfer  to  or  from  any  such
corporations  any moneys, real property or other property for any of the
purposes of this title upon such terms and conditions as shall be agreed
to and subject to such payment or repayment obligations as are  required
by  law  or  by  any  agreement to which any of the affected entities is
subject. The directors or members of each such subsidiary corporation of
the authority corporation shall be the same persons holding the  offices
of  members  of  the  authority.  THE CHAIRMAN OF THE BOARD OF EACH SUCH
SUBSIDIARY SHALL BE THE CHAIRMAN OF THE AUTHORITY,  SERVING  EX  OFFICIO
AND,  PROVIDED  THAT  THERE IS AN EXECUTIVE DIRECTOR OF THE METROPOLITAN
TRANSPORTATION AUTHORITY, THE  EXECUTIVE  DIRECTOR  OF  SUCH  SUBSIDIARY
SHALL  BE  THE  EXECUTIVE  DIRECTOR  OF  THE METROPOLITAN TRANSPORTATION
AUTHORITY, SERVING EX OFFICIO.   NOTWITHSTANDING  SUBDIVISION  THREE  OF
SECTION  TWENTY-EIGHT  HUNDRED  TWENTY-FOUR OF THIS CHAPTER OR ANY OTHER
PROVISION OF LAW TO THE CONTRARY, THE CHAIRMAN SHALL BE THE CHIEF EXECU-
TIVE OFFICER OF EACH SUCH SUBSIDIARY AND SHALL BE  RESPONSIBLE  FOR  THE
DISCHARGE  OF  THE  EXECUTIVE AND ADMINISTRATIVE FUNCTIONS AND POWERS OF
EACH SUCH SUBSIDIARY.   THE CHAIRMAN AND  EXECUTIVE  DIRECTOR,  IF  ANY,
SHALL BE EMPOWERED TO DELEGATE HIS OR HER FUNCTIONS AND POWERS TO ONE OR
MORE  OFFICERS OR EMPLOYEES OF EACH SUCH SUBSIDIARY DESIGNATED BY HIM OR
HER. Each such subsidiary corporation of the authority and  any  of  its
property,  functions  and  activities  shall have all of the privileges,
immunities, tax exemptions and other exemptions of the authority and  of
the  authority's  property, functions and activities.  Each such subsid-
iary corporation shall be subject to the restrictions and limitations to
which the authority may be subject. Each such subsidiary corporation  of
the authority shall be subject to suit in accordance with section twelve
hundred  seventy-six of this title. The employees of any such subsidiary
corporation, except those who are also employees of the authority, shall
not be deemed employees of the authority.
  If the authority shall determine that one or more  of  its  subsidiary
corporations  should  be in the form of a public benefit corporation, it
shall create each such  public  benefit  corporation  by  executing  and
filing with the secretary of state a certificate of incorporation, which
may  be  amended  from time to time by filing, which shall set forth the
name of such public benefit subsidiary corporation,  its  duration,  the
location  of  its  principal  office,  and any or all of the purposes of
acquiring, owning, leasing,  establishing,  constructing,  effectuating,
operating,  maintaining,  renovating,  improving, extending or repairing
one or more facilities  of  the  authority.  Each  such  public  benefit
subsidiary  corporation  shall be a body politic and corporate and shall
have all those powers vested in the authority by the provisions of  this
title  which the authority shall determine to include in its certificate
of incorporation except the power to contract indebtedness.

S. 5451                            32                            A. 8180

  Whenever any state, political subdivision,  municipality,  commission,
agency, officer, department, board, division or person is authorized and
empowered  for any of the purposes of this title to co-operate and enter
into agreements with the authority such  state,  political  subdivision,
municipality,  commission,  agency, officer, department, board, division
or person shall have the same authorization and power for  any  of  such
purposes  to  co-operate  and  enter  into  agreements with a subsidiary
corporation of the authority.
  S 9. Intentionally omitted.
  S 10. The public authorities law is amended by adding  a  new  section
1266-i to read as follows:
  S  1266-I.  THE PERMANENT CITIZENS ADVISORY COMMITTEE. THERE IS HEREBY
ESTABLISHED A PERMANENT CITIZENS ADVISORY COMMITTEE. THE MEMBERS OF  THE
COMMITTEE  SHALL  CONSIST OF THE FOLLOWING MEMBERS: THE LONG ISLAND RAIL
ROAD COMMUTER'S COUNCIL, THE METRO-NORTH COMMUTER COUNCIL, AND  THE  NEW
YORK  CITY  TRANSIT  AUTHORITY  ADVISORY  COUNCIL, AS DEFINED IN SECTION
TWELVE HUNDRED FOUR-E OF THIS CHAPTER.
  S 11. The public authorities law is amended by adding  a  new  section
1268-a to read as follows:
  S 1268-A. PROMOTION OF QUALIFIED TRANSPORTATION FRINGES.  THE AUTHORI-
TY  SHALL  PROMOTE  THE  BROAD  USE OF QUALIFIED TRANSPORTATION FRINGES,
UNDER SECTION 132(F) OF THE INTERNAL REVENUE CODE, IN ORDER TO  INCREASE
THE  NUMBER  OF  PARTICIPATING COMPANIES AND EMPLOYEES IN SUCH PROGRAMS.
THE AUTHORITY MAY ALSO STUDY AND REPORT ON WAYS IN WHICH PROGRAMS MAY BE
IMPROVED SO AS TO INCREASE PUBLIC PARTICIPATION.
  S 11-a. Section 1269-b of the public authorities  law  is  amended  by
adding a new subdivision 2-a to read as follows:
  2-A.  A  COPY  OF  ANY  PROPOSED  CAPITAL  PROGRAM  PLAN THAT HAS BEEN
DISTRIBUTED TO ONE OR MORE COMMITTEES OF THE AUTHORITY SHALL  BE  SIMUL-
TANEOUSLY  PROVIDED,  FOR  INFORMATIONAL PURPOSES, TO THE MEMBERS OF THE
METROPOLITAN TRANSPORTATION  AUTHORITY  CAPITAL  PROGRAM  REVIEW  BOARD.
PROVISION OF SUCH A PROPOSED CAPITAL PROGRAM PLAN TO THE CAPITAL PROGRAM
REVIEW BOARD PURSUANT TO THIS PROVISION FOR INFORMATIONAL PURPOSES SHALL
NOT  CONSTITUTE  THE  SUBMISSION  OF  A CAPITAL PROGRAM PLAN FOR CAPITAL
PROGRAM REVIEW BOARD APPROVAL.
  S 12. Paragraph (c) of subdivision 1 of section 1269-b of  the  public
authorities  law,  as  amended  by  chapter  384 of the laws of 2007, is
amended to read as follows:
  (c) on or before October first, two thousand thirteen and every  fifth
year  thereafter,  the authority shall submit to the metropolitan trans-
portation authority capital program review  board  two  capital  program
plans for the five-year period commencing January first of the following
year.    SUCH  PLANS  SHALL INCLUDE METHODS TO MAXIMIZE PARTICIPATION BY
MINORITY AND WOMEN-OWNED BUSINESS ENTERPRISES.
  S 13. The public authorities  law  is  amended  by  adding  three  new
sections 1269-e, 1269-f and 1269-g to read as follows:
  S  1269-E.  FINANCIAL  AND  OPERATIONAL  REPORTS.  THE AUTHORITY SHALL
SUBMIT TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE  SENATE  AND  THE
SPEAKER  OF  THE  ASSEMBLY,  NO  LATER  THAN  THIRTY  DAYS FOLLOWING THE
SUBMISSION OF THE ANNUAL INDEPENDENT AUDIT REPORT  PURSUANT  TO  SECTION
TWENTY-EIGHT  HUNDRED TWO OF THIS CHAPTER, A COMPLETE DETAILED REPORT OR
REPORTS SETTING  FORTH,  TO  THE  EXTENT  SUCH  MATTERS  ARE  NOT  FULLY
ADDRESSED IN THE ANNUAL INDEPENDENT AUDIT REPORT, THE FOLLOWING:
  1. ITS FINANCIAL REPORTS, INCLUDING:

S. 5451                            33                            A. 8180

  A.  AUDITED  FINANCIALS  IN ACCORDANCE WITH ALL APPLICABLE REGULATIONS
AND FOLLOWING GENERALLY ACCEPTED ACCOUNTING  PRINCIPLES  AS  DEFINED  IN
SUBDIVISION TEN OF SECTION TWO OF THE STATE FINANCE LAW;
  B. GRANT AND SUBSIDY PROGRAMS;
  C. OPERATING AND FINANCIAL RISKS;
  D.  CURRENT  RATINGS  OF ITS BONDS ISSUED BY RECOGNIZED MUNICIPAL BOND
RATING AGENCIES AND NOTICE CHANGES IN SUCH RATINGS; AND
  E. LONG-TERM LIABILITIES, INCLUDING LEASES AND EMPLOYEE BENEFIT PLANS;
AND
  2. AN ASSESSMENT OF THE EFFECTIVENESS OF ITS INTERNAL  CONTROL  STRUC-
TURE AND PROCEDURES, INCLUDING:
  A. DESCRIPTIONS OF THE AUTHORITY AND ITS MAJOR UNITS AND SUBSIDIARIES;
  B.  THE  NUMBER  OF  EMPLOYEES,  AND MINORITY AND WOMEN EMPLOYEES, FOR
EACH;
  C. AN ORGANIZATIONAL CHART;
  D. ITS CHARTER, IF ANY AND BY-LAWS;
  E. THE EXTENT OF PARTICIPATION BY MINORITY AND WOMEN OWNED ENTERPRISES
IN AUTHORITY CONTRACTS AND SERVICES IN ACCORDANCE WITH ARTICLE FIFTEEN-A
OF THE EXECUTIVE LAW; AND
  F. A LISTING OF MATERIAL CHANGES IN INTERNAL OPERATIONS  AND  PROGRAMS
DURING THE REPORTING YEAR.
  S  1269-F.  MISSION STATEMENT AND MEASUREMENT REPORT. 1. THE AUTHORITY
SHALL SUBMIT TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE  AND
THE  SPEAKER  OF  THE  ASSEMBLY,  ON OR BEFORE OCTOBER THIRTY-FIRST, TWO
THOUSAND NINE, A PROPOSED AUTHORITY MISSION STATEMENT AND PROPOSED MEAS-
UREMENTS. THE PROPOSED MISSION STATEMENT AND PROPOSED MEASUREMENTS SHALL
HAVE THE FOLLOWING COMPONENTS: A BRIEF MISSION STATEMENT EXPRESSING  THE
PURPOSE AND GOALS OF THE AUTHORITY; A DESCRIPTION OF THE STAKEHOLDERS OF
THE  AUTHORITY  AND  THEIR  REASONABLE  EXPECTATIONS FROM THE AUTHORITY,
WHICH STAKEHOLDERS SHALL INCLUDE AT A MINIMUM: THE RESIDENTS AND TAXPAY-
ERS OF THE AREA OF THE STATE SERVED BY THE AUTHORITY, THE  PERSONS  THAT
USE  THE  SERVICES  PROVIDED  BY THE AUTHORITY, AND THE EMPLOYEES OF THE
AUTHORITY AND ANY EMPLOYEE ORGANIZATION; THE GOALS OF THE  AUTHORITY  IN
RESPONSE TO THE NEEDS OF EACH GROUP OF STAKEHOLDERS; AND A LIST OF MEAS-
URES  BY  WHICH  PERFORMANCE OF THE AUTHORITY AND THE ACHIEVEMENT OF ITS
GOALS MAY BE EVALUATED.
  2. THE AUTHORITY SHALL THEREAFTER REEXAMINE ITS MISSION STATEMENT  AND
MEASUREMENTS  ON AN ANNUAL BASIS, AND PUBLISH ON ITS WEBSITE SELF EVALU-
ATIONS BASED ON THE STATED MEASURES.
  S 1269-G. REQUIREMENTS FOR CERTAIN  AUTHORITY  CONTRACTS  AND  RELATED
SUBCONTRACTS. 1.  ANY CONTRACTOR OR SUBCONTRACTOR SUBJECT TO THE POSTING
REQUIREMENTS  OF  PARAGRAPH  A  OF  SUBDIVISION  THREE-A  OF SECTION TWO
HUNDRED TWENTY OF THE LABOR LAW WITH RESPECT TO A PUBLIC WORKS  CONTRACT
OF THE AUTHORITY SHALL:
  (A)  POST  INFORMATION CONFORMING TO THE PROVISIONS OF SUBDIVISION TWO
OF THIS SECTION IN ONE OR MORE CONSPICUOUS PLACES AT  EACH  MAJOR  WORK-
PLACE  SITE  WHERE  PERSONS  WHO PERFORM WORK ON THE CONTRACT OR SUBCON-
TRACT, INCLUDING MANAGEMENT, ARE  MOST  LIKELY  TO  SEE  SUCH  POSTINGS;
PROVIDED  THAT,  THIS  REQUIREMENT MAY BE SATISFIED BY THE DISPLAYING OF
SUCH INFORMATION WITH OTHER NOTICES THAT INFORM PERSONS OF RIGHTS  UNDER
FEDERAL  OR  STATE LAWS OR RULES, HUMAN RESOURCE POLICIES, OR COLLECTIVE
BARGAINING AGREEMENTS;
  (B) POST INFORMATION CONFORMING TO THE PROVISIONS OF  SUBDIVISION  TWO
OF  THIS  SECTION  ON  AN INTERNET AND INTRANET WEBSITE, IF ANY, OF THAT
PERSON OR BUSINESS ORGANIZATION; PROVIDED THAT, THIS REQUIREMENT MAY  BE
SATISFIED  BY  PROVIDING  ON SUCH WEBSITE A CONSPICUOUS HYPERLINK TO THE

S. 5451                            34                            A. 8180

AUTHORITY WEBSITE MAINTAINED  PURSUANT  TO  SUBDIVISION  THREE  OF  THIS
SECTION,  WHICH  HYPERLINK  SHALL  BE LABELED "PROTECTIONS FOR REPORTING
FRAUD IN NEW YORK";
  (C)  DISTRIBUTE  INFORMATION  SPECIFIED  IN  SUBDIVISION  TWO  OF THIS
SECTION TO THOSE PERSONS, INCLUDING EMPLOYEES AND MANAGERS, WHO  PERFORM
WORK  ON  THE CONTRACT; PROVIDED THAT, THIS REQUIREMENT MAY BE SATISFIED
BY DISTRIBUTING SUCH INFORMATION IN AN EMPLOYEE HANDBOOK  OR  THROUGH  A
SPECIFIC  ELECTRONIC COMMUNICATION CONTAINING THE INFORMATION TO A KNOWN
ELECTRONIC MAIL ADDRESS MAINTAINED BY THE PERSON; AND
  (D) COMPLY WITH THE PROVISIONS OF THIS SUBDIVISION, AND PROVIDE TO THE
AUTHORITY SATISFACTORY EVIDENCE OF SUCH COMPLIANCE, WITHIN NINETY DAYS.
  2. THE DISCLOSURES REQUIRED BY SUBDIVISION ONE OF THIS SECTION SHALL:
  (A) PROVIDE THE TELEPHONE NUMBERS AND ADDRESSES TO REPORT  INFORMATION
OF  FRAUD  OR  OTHER ILLEGAL ACTIVITY TO THE APPROPRIATE OFFICERS OF THE
INSPECTOR GENERAL OF THE  AUTHORITY  AND  THE  ATTORNEY-GENERAL  OF  THE
STATE;
  (B)  DESCRIBE  IN  DETAIL  CONDUCT  PROHIBITED  BY SECTION ONE HUNDRED
EIGHTY-NINE OF THE STATE FINANCE LAW,  AND  THE  ROLE  OF  THAT  ACT  IN
PREVENTING AND DETECTING FRAUD AND ABUSE IN WORK PAID FOR BY THE AUTHOR-
ITY OR WITH FUNDS ORIGINATING FROM THE AUTHORITY;
  (C)  NOTIFY  PROSPECTIVE  QUI  TAM PLAINTIFFS ON HOW TO FILE A QUI TAM
ACTION, INCLUDING THE NECESSITY TO CONTACT PRIVATE  COUNSEL  SKILLED  IN
FILING  SUCH  ACTIONS  AND  OF  THE  POTENTIAL  FOR CASH REWARDS IN SUCH
ACTIONS BASED ON THE PERCENTAGE OF THE FUNDS RECOVERED  BY  THE  GOVERN-
MENT; AND
  (D)  DESCRIBE PROHIBITIONS ON EMPLOYER RETALIATION AGAINST PERSONS WHO
FILE OR ASSIST ACTIONS UNDER ARTICLE THIRTEEN OF THE STATE  FINANCE  LAW
(THE  NEW YORK FALSE CLAIMS ACT) PURSUANT TO SECTION ONE HUNDRED NINETY-
ONE OF THE STATE FINANCE LAW, OR WHO REPORT ILLEGAL CONDUCT THAT THREAT-
ENS THE HEALTH OR SAFETY OF THE PUBLIC PURSUANT TO SECTION SEVEN HUNDRED
FORTY OF THE LABOR LAW.
  3. NO LATER THAN FORTY-FIVE DAYS AFTER  THE  EFFECTIVE  DATE  OF  THIS
SECTION,  THE AUTHORITY SHALL ESTABLISH AND CONTINUOUSLY MAINTAIN ON ITS
PUBLIC WEBSITE AND ITS INTRANET SITE  A  PAGE  THAT  SHALL  PROVIDE  THE
INFORMATION SPECIFIED IN SUBDIVISION TWO OF THIS SECTION, AND THAT SHALL
ALSO  PROVIDE  SAMPLE  STATEMENTS, DISPLAYS AND OTHER MATERIALS SUITABLE
FOR INSERTION IN EMPLOYEE HANDBOOKS  OR  POSTING  AT  WORKPLACES  OR  ON
WEBSITES THAT WOULD SATISFY THE DISCLOSURE REQUIREMENTS OF THIS SECTION.
  4.  ON  AND  AFTER  THE  EFFECTIVE DATE OF THIS SECTION, THE AUTHORITY
SHALL NOT ENTER INTO ANY CONTRACT DESCRIBED IN SUBDIVISION ONE  OF  THIS
SECTION THAT DOES NOT INCORPORATE THE TERMS OF THIS SECTION.
  5.  MATERIAL  COMPLIANCE  BY A COVERED PERSON OR BUSINESS ORGANIZATION
THAT HAS CONTRACTED WITH THE AUTHORITY UNDER A  CONTRACT  THAT  INCORPO-
RATES THE TERMS OF THIS SECTION SHALL BE A MATERIAL CONDITION OF PAYMENT
FOR THE PROVISION OF GOODS OR SERVICES.
  6.  THE AUTHORITY IS AUTHORIZED TO ADOPT SUCH RULES AND REGULATIONS AS
ARE NECESSARY TO EFFECT THE PURPOSES OF THIS SECTION.
  S 14. Subdivision 1 of section 1270-a of the public  authorities  law,
as amended by section 29 of part O of chapter 61 of the laws of 2000, is
amended to read as follows:
  1.  The authority shall create and establish a fund to be known as the
"metropolitan transportation authority special  assistance  fund"  which
shall  be  kept separate from and shall not be commingled with any other
moneys of the authority. The special assistance fund  shall  consist  of
three  separate  accounts: (i) the "transit account", (ii) the "commuter
railroad account" and (iii) the "corporate transportation account".

S. 5451                            35                            A. 8180

  The authority shall make deposits  in  the  transit  account  and  the
commuter  railroad  account of the moneys received by it pursuant to the
provisions of subdivision one of section two hundred  sixty-one  of  the
tax law in accordance with the provisions thereof, and shall make depos-
its in the corporate transportation account of the moneys received by it
pursuant  to  the  provisions  of subdivision two of section two hundred
sixty-one OF THE TAX LAW AND SECTION NINETY-TWO-FF of [such]  THE  STATE
FINANCE law.
  S 15. Subdivision 4 of section 1270-a of the public authorities law is
amended by adding a new paragraph (e) to read as follows:
  (E)  NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS SUBDIVISION, ANY
MONEYS IN THE CORPORATE TRANSPORTATION ACCOUNT THAT ARE RECEIVED BY  THE
AUTHORITY  PURSUANT  TO  THE  PROVISIONS OF SECTION NINETY-TWO-FF OF THE
STATE FINANCE LAW MAY BE PLEDGED BY THE AUTHORITY,  OR  PLEDGED  TO  THE
TRIBOROUGH  BRIDGE AND TUNNEL AUTHORITY, TO SECURE BONDS, NOTES OR OTHER
OBLIGATIONS OF THE AUTHORITY OR THE TRIBOROUGH BRIDGE AND TUNNEL AUTHOR-
ITY, AS THE CASE MAY BE, AND, IF SO PLEDGED TO THE TRIBOROUGH BRIDGE AND
TUNNEL AUTHORITY, SHALL BE PAID TO  THE  TRIBOROUGH  BRIDGE  AND  TUNNEL
AUTHORITY  IN  SUCH  AMOUNTS AND AT SUCH TIMES AS NECESSARY TO PAY OR TO
REIMBURSE THAT AUTHORITY FOR ITS PAYMENT OF  DEBT  SERVICE  AND  RESERVE
REQUIREMENTS,  IF  ANY, ON THAT PORTION OF SPECIAL TRIBOROUGH BRIDGE AND
TUNNEL AUTHORITY BONDS AND NOTES ISSUED BY THAT  AUTHORITY  PURSUANT  TO
SECTION  FIVE  HUNDRED  FIFTY-THREE-D  OF  THIS  CHAPTER. SUBJECT TO THE
PROVISIONS OF ANY SUCH PLEDGE, OR IN THE EVENT THERE IS NO SUCH  PLEDGE,
ANY  MONEYS  IN  THE  CORPORATE  TRANSPORTATION  ACCOUNT RECEIVED BY THE
AUTHORITY PURSUANT TO THE PROVISIONS OF  SECTION  NINETY-TWO-FF  OF  THE
STATE  FINANCE LAW MAY BE USED BY THE AUTHORITY FOR PAYMENT OF OPERATING
COSTS OF, AND CAPITAL COSTS, INCLUDING DEBT SERVICE AND RESERVE REQUIRE-
MENTS, IF ANY, OF OR FOR  THE  AUTHORITY,  THE  NEW  YORK  CITY  TRANSIT
AUTHORITY  AND  THEIR  SUBSIDIARIES AS THE AUTHORITY SHALL DETERMINE. NO
MONEYS IN THE CORPORATE TRANSPORTATION ACCOUNT THAT ARE RESERVED BY  THE
AUTHORITY  PURSUANT  TO  THE  PROVISIONS OF SECTION NINETY-TWO-FF OF THE
STATE FINANCE LAW MAY BE USED FOR MAKING ANY PAYMENT  TO  THE  DUTCHESS,
ORANGE  AND ROCKLAND FUND CREATED BY SECTION TWELVE HUNDRED SEVENTY-B OF
THIS TITLE OR CONSIDERED IN CALCULATING THE AMOUNTS REQUIRED TO BE  PAID
INTO SUCH FUND.
  S  16.    The  public  authorities  law  is  amended by adding two new
sections 1270-g and 1270-h to read as follows:
  S 1270-G. REGULATION OF CERTAIN AUTHORITY EXPENDITURES. THE  AUTHORITY
SHALL IMPLEMENT POLICIES AS APPROPRIATE TO MINIMIZE UNWARRANTED EXPENSES
AND TO PROTECT AGAINST ABUSES IN CONNECTION WITH (I) THE GRANTING OF ANY
PRIVILEGES  OR BENEFITS HAVING FINANCIAL VALUE, OTHER THAN WAGE PAYMENTS
OR EXPENSE REIMBURSEMENTS, TO MEMBERS OR STAFF OF THE AUTHORITY, OR  ANY
SUBSIDIARY  OR  OTHER  AUTHORITY  CREATED BY THE AUTHORITY; AND (II) THE
FULL-TIME AND PART-TIME ASSIGNMENT  AND  USE  OF  AUTOMOBILES  OWNED  OR
LEASED BY THE AUTHORITY, OR ANY SUBSIDIARY OR OTHER AUTHORITY CREATED BY
THE  AUTHORITY,  AND THE USE BY AUTHORITY EMPLOYEES AND BOARD MEMBERS OF
LIVERY VEHICLES, AS DEFINED IN SECTION ONE HUNDRED TWENTY-ONE-E  OF  THE
VEHICLE AND TRAFFIC LAW.
  S  1270-H. METROPOLITAN TRANSPORTATION AUTHORITY FINANCE FUND.  1. THE
AUTHORITY SHALL ESTABLISH A FUND TO BE KNOWN AS THE "METROPOLITAN TRANS-
PORTATION AUTHORITY FINANCE FUND" WHICH SHALL BE KEPT SEPARATE FROM  AND
SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS OF THE AUTHORITY.
  2.  THE  COMPTROLLER SHALL DEPOSIT MONTHLY, PURSUANT TO APPROPRIATION,
INTO THE METROPOLITAN TRANSPORTATION AUTHORITY FINANCE FUND  THE  MONEYS
DEPOSITED  IN  THE MOBILITY TAX TRUST ACCOUNT OF THE METROPOLITAN TRANS-

S. 5451                            36                            A. 8180

PORTATION AUTHORITY FINANCIAL ASSISTANCE FUND PURSUANT TO ARTICLE  TWEN-
TY-THREE  OF  THE  TAX  LAW, AND ANY OTHER PROVISION OF LAW DIRECTING OR
PERMITTING THE DEPOSIT OF MONEYS IN SUCH FUND.
  3.  MONEYS  IN  THE FUND MAY BE (A) PLEDGED BY THE AUTHORITY TO SECURE
AND BE APPLIED TO THE PAYMENT OF THE BONDS, NOTES OR  OTHER  OBLIGATIONS
OF  THE  AUTHORITY ISSUED ON OR AFTER THE EFFECTIVE DATE OF THIS SECTION
TO FINANCE CAPITAL PROJECTS OF THE AUTHORITY AND  ITS  SUBSIDIARIES  AND
THE  NEW  YORK  CITY TRANSIT AUTHORITY AND ANY SUBSIDIARIES; OR (B) USED
FOR PAYMENT OF CAPITAL COSTS, INCLUDING DEBT SERVICE,  RESERVE  REQUIRE-
MENTS,  IF  ANY,  THE  PAYMENT  OF  AMOUNTS REQUIRED UNDER BOND AND NOTE
FACILITIES OR AGREEMENTS RELATED THERETO, THE PAYMENT OF FEDERAL GOVERN-
MENT LOANS, SECURITY OR CREDIT ARRANGEMENTS OR OTHER AGREEMENTS  RELATED
THERETO, AND THE PAYMENT OF ALL COSTS RELATED TO SUCH OBLIGATIONS, OF OR
FOR THE AUTHORITY, THE NEW YORK CITY TRANSIT AUTHORITY AND THEIR SUBSID-
IARIES  AS  THE AUTHORITY SHALL DETERMINE.  SUBJECT TO THE PROVISIONS OF
ANY SUCH PLEDGE, OR IN THE EVENT THERE IS NO  SUCH  PLEDGE,  ANY  EXCESS
MONEYS  IN THIS FUND MAY BE USED BY THE AUTHORITY FOR PAYMENT OF OPERAT-
ING COSTS OF, AND CAPITAL COSTS,  INCLUDING  DEBT  SERVICE  AND  RESERVE
REQUIREMENTS, IF ANY, OF OR FOR THE AUTHORITY, THE NEW YORK CITY TRANSIT
AUTHORITY  AND  THEIR SUBSIDIARIES AS THE AUTHORITY SHALL DETERMINE.  TO
THE EXTENT MONEYS IN THE FUND HAVE BEEN  PLEDGED  BY  THE  AUTHORITY  TO
SECURE  AND  PAY  THE BONDS, NOTES OR OTHER OBLIGATIONS OF THE AUTHORITY
ISSUED TO FINANCE CAPITAL PROJECTS OF THE AUTHORITY AND ITS SUBSIDIARIES
AND THE NEW YORK CITY TRANSIT AUTHORITY AND ANY SUBSIDIARIES  AS  HEREIN
PROVIDED,  MONIES  DEPOSITED  INTO  THE  FUND  SHALL BE DEPOSITED TO THE
EXTENT NECESSARY TO SATISFY THE REQUIREMENTS  OF  ANY  DEBT  SERVICE  OR
RESERVE  REQUIREMENTS, IF ANY, OF THE RESOLUTION AUTHORIZING SUCH BONDS,
NOTES OR OTHER OBLIGATIONS.
  4. ANY MONIES DEPOSITED IN THE FUND SHALL BE HELD IN THE FUND FREE AND
CLEAR OF ANY CLAIM BY ANY PERSON ARISING OUT OF OR  IN  CONNECTION  WITH
ARTICLE  TWENTY-THREE OF THE TAX LAW. WITHOUT LIMITING THE GENERALITY OF
THE FOREGOING AND WITHOUT LIMITING THE RIGHTS AND DUTIES OF THE  COMMIS-
SIONER  OF  TAXATION  AND  FINANCE UNDER ARTICLE TWENTY-THREE OF THE TAX
LAW, NO ENTITY PAYING A MOBILITY TAX UNDER ARTICLE TWENTY-THREE  OF  THE
TAX  LAW  SHALL  HAVE  ANY  RIGHT OR CLAIM AGAINST THE AUTHORITY, ANY OF
THEIR BONDHOLDERS, ANY OF THE AUTHORITY'S OTHER SUBSIDIARIES OR THE  NEW
YORK  CITY  TRANSIT  AUTHORITY  OR  ANY  SUBSIDIARY  TO ANY MONEYS IN OR
DISTRIBUTED FROM THE FUND OR IN RESPECT OF A REFUND, REBATE,  CREDIT  OR
REIMBURSEMENT OF TAXES PAID UNDER ARTICLE TWENTY-THREE OF THE TAX LAW.
  S  17.  The  public  authorities  law  is  amended by adding three new
sections 1276-b, 1276-c and 1276-d to read as follows:
  S 1276-B. AUTHORITY BUDGET AND FINANCIAL PLAN. 1. IN ADDITION  TO  THE
REQUIREMENTS  OF  SECTION TWENTY-EIGHT HUNDRED TWO OF THIS CHAPTER, EACH
AUTHORITY BUDGET AND PLAN SHALL BE POSTED ON ITS WEBSITE AND SHALL:  (A)
PRESENT  INFORMATION  RELATING TO THE AUTHORITY AND EACH OF ITS AGENCIES
IN A CLEAR AND CONSISTENT MANNER AND FORMAT; (B) BE PREPARED IN  ACCORD-
ANCE  WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, EXCEPT AS OTHERWISE
CONSENTED TO BY THE COMPTROLLER UPON GOOD CAUSE SHOWN; (C) BE  BASED  ON
REASONABLE  ASSUMPTIONS AND METHODS OF ESTIMATION; (D) INCLUDE ESTIMATES
OF PROJECTED OPERATING REVENUES AND EXPENSES; (E) IDENTIFY  ANY  PLANNED
TRANSACTION THAT WOULD SHIFT RESOURCES, FROM ANY SOURCE, FROM ONE FISCAL
YEAR  TO  ANOTHER,  AND  THE  AMOUNT  OF ANY RESERVES; AND (F) CONTAIN A
SUMMARY IN PLAIN ENGLISH OF THE PRINCIPAL INFORMATION IN THE BUDGET  AND
CONCLUSIONS TO BE DRAWN FROM IT.
  2.  SUPPORTING  DOCUMENTATION.  THE  AUTHORITY  SHALL PREPARE AND MAKE
AVAILABLE FOR PUBLIC INSPECTION ON ITS WEBSITE INFORMATION THAT  DETAILS

S. 5451                            37                            A. 8180

THE  SOURCES  OF DATA AND THE ASSUMPTIONS AND METHODS OF ESTIMATION USED
TO CALCULATE ALL OPERATING AND CAPITAL  BUDGET  PROJECTIONS,  CONSISTENT
WITH GENERALLY ACCEPTED BUDGETARY PRACTICES.
  3.  THE  AUTHORITY  SHALL  ESTABLISH  AT  LEAST ANNUALLY THE QUARTERLY
REVENUE AND EXPENSE TARGETS FOR THE AUTHORITY, AND FOR  EACH  SUBSIDIARY
OR  OTHER  AUTHORITY  CREATED  BY  THE AUTHORITY ITSELF AND FOR WHICH IT
REPORTS FINANCIAL DATA.
  4. MONITORING THE BUDGET  AND  FINANCIAL  PLAN.  THE  AUTHORITY  SHALL
PREPARE  AND  MAKE  AVAILABLE FOR PUBLIC INSPECTION ON ITS WEBSITE:  (A)
WITHIN SIXTY DAYS OF THE RELEASE OF THE ADOPTED BUDGET AND  ANY  UPDATES
TO  THE  BUDGET (EXCEPT UPDATES RELEASED WITHIN NINETY DAYS OF THE CLOSE
OF THE FISCAL YEAR), MONTHLY PROJECTIONS FOR THE CURRENT FISCAL YEAR  OF
ALL  REVENUES  AND  EXPENSES, STAFFING FOR THE AUTHORITY AND EACH OF ITS
AGENCIES, AND UTILIZATION FOR EACH  OF  THE  AUTHORITY'S  AGENCIES  THAT
OPERATE TRANSPORTATION SYSTEMS, INCLUDING BRIDGES AND TUNNELS; (B) WITH-
IN  SIXTY  DAYS  AFTER THE CLOSE OF EACH QUARTER, A COMPARISON OF ACTUAL
REVENUES AND EXPENSES, ACTUAL STAFFING AND ACTUAL UTILIZATION TO PLANNED
OR PROJECTED LEVELS FOR EACH OF THE AUTHORITY'S  AGENCIES  THAT  OPERATE
TRANSPORTATION  SYSTEMS, INCLUDING BRIDGES AND TUNNELS, WITH AN EXPLANA-
TION OF EACH MATERIAL VARIANCE AND ITS BUDGETARY IMPACT; AND (C)  WITHIN
NINETY  DAYS  AFTER  THE  CLOSE  OF  EACH  QUARTER,  THE  STATUS OF EACH
GAP-CLOSING INITIATIVE WITH A PROJECTED VALUE GREATER THAN  ONE  MILLION
DOLLARS  IN  ANY  GIVEN  FISCAL  YEAR; THE STATUS OF CAPITAL PROJECTS BY
CAPITAL ELEMENT, INCLUDING BUT NOT LIMITED TO COMMITMENTS,  EXPENDITURES
AND COMPLETIONS; AND AN EXPLANATION OF MATERIAL VARIANCES FROM THE PLAN,
COST OVERRUNS AND DELAYS.
  5.  STRATEGIC  OPERATION  PLAN.  FINANCIAL  INFORMATION REQUIRED TO BE
SUBMITTED BY THE AUTHORITY PURSUANT TO PARAGRAPHS D AND E OF SUBDIVISION
ONE OF SECTION TWELVE  HUNDRED  SIXTY-NINE-C  OF  THIS  TITLE  SHALL  BE
PRESENTED IN A FORMAT CONSISTENT WITH THE BUDGET AND PLAN, IN DOWNLOADA-
BLE, SEARCHABLE FORMAT.
  S  1276-C.  INDEPENDENT  AUDIT OF AUTHORITY.   THE INDEPENDENT AUDITOR
RETAINED BY THE AUTHORITY SHALL NOT PROVIDE TO THE AUTHORITY,  CONTEMPO-
RANEOUSLY  WITH THE AUDIT UNLESS IT SHALL HAVE PREVIOUSLY RECEIVED WRIT-
TEN APPROVAL BY THE AUDIT COMMITTEE ANY NON-AUDIT SERVICE, INCLUDING:
  1. ROUTINE BOOKKEEPING OR OTHER SERVICES;
  2. FINANCIAL INFORMATION SYSTEMS DESIGN AND IMPLEMENTATION;
  3. APPRAISAL OR VALUATION SERVICES, FAIRNESS  OPINIONS,  OR  CONTRIBU-
TION-IN-KIND REPORTS;
  4. ACTUARIAL SERVICES;
  5. OUTSOURCING SERVICES;
  6. AUTHORITY MANAGEMENT FUNCTIONS OR HUMAN RESOURCES;
  7. BROKER   OR   DEALER,  INVESTMENT  ADVISOR  OR  INVESTMENT  BANKING
SERVICES;
  8. LEGAL SERVICES AND EXPERT SERVICES UNRELATED TO THE AUDIT.
  S 1276-D. INDEPENDENT AUDIT BY THE LEGISLATURE. AFTER  THE  SUBMISSION
OF  THE  ANNUAL  INDEPENDENT AUDIT REPORT TO THE LEGISLATURE PURSUANT TO
SECTION TWO THOUSAND EIGHT HUNDRED TWO OF THIS CHAPTER, AND AFTER REVIEW
OF SUCH REPORT, THE TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER OF
THE ASSEMBLY MAY COMMISSION AN AUDITING FIRM, EVERY TWO YEARS, AFTER THE
YEAR TWO THOUSAND NINE, TO CONDUCT AN INDEPENDENT AUDIT OF THE  AUTHORI-
TY,  INCLUDING  ITS  SUBSIDIARIES. THE TEMPORARY PRESIDENT OF THE SENATE
AND THE SPEAKER OF THE ASSEMBLY SHALL SET THE SCOPE OF SUCH  AUDIT,  AND
DETERMINE  THE  TERMS  OF  THE REQUEST FOR PROPOSAL FOR SUCH AUDIT. SUCH
AUDIT SHALL BE PERFORMED FOR THE YEAR TWO THOUSAND NINE.  THE  AUTHORITY
SHALL FULLY COOPERATE WITH AND ASSIST IN SUCH AN AUDIT.

S. 5451                            38                            A. 8180

  S  18.  The  public authorities law is amended by adding a new section
1279-c to read as follows:
  S  1279-C.  THE  OFFICE  OF  LEGISLATIVE AND COMMUNITY INPUT.   1. THE
CHAIRPERSON OF THE AUTHORITY SHALL ESTABLISH THE OFFICE  OF  LEGISLATIVE
AND COMMUNITY INPUT FOR THE PURPOSE OF COMMUNICATING INFORMATION TO, AND
RECEIVING  COMMENTS,  CONCERNS  AND RECOMMENDATIONS FROM, MEMBERS OF THE
LEGISLATURE, AND MEMBERS OF THE PERMANENT CITIZENS ADVISORY COMMITTEE TO
THE AUTHORITY, AS DEFINED IN SECTION TWELVE HUNDRED SIXTY-SIX-I OF  THIS
CHAPTER, ON THE FOLLOWING:
  (A)  THE  OPERATIONS  OF  THE RAPID TRANSIT, OMNIBUS AND COMMUTER RAIL
LINE FACILITIES OF THE AUTHORITY INCLUDING, BUT NOT LIMITED TO:
  (I) THE QUALITY OF SERVICE PROVIDED ON ANY RAPID TRANSIT, OMNIBUS, AND
COMMUTER RAIL LINE OR ROUTE;
  (II) THE FREQUENCY OF OPERATING SERVICE ON THE AUTHORITY'S MASS TRANS-
IT FACILITIES;
  (III) THE MAINTENANCE AND CONDITION OF THE  AUTHORITY'S  MASS  TRANSIT
FACILITIES  INCLUDING,  BUT  NOT  LIMITED TO, RAPID TRANSIT AND COMMUTER
RAIL STATIONS, RAILCARS, BUSES, RAIL LINES, FARE COLLECTION SYSTEMS  AND
SOUND SYSTEMS; AND
  (IV)  PROPOSED  SERVICE CHANGES, INCLUDING ANY REDUCTIONS OR EXPANSION
OF SERVICES, AS IT RELATES TO THE AUTHORITY'S MASS  TRANSIT  FACILITIES;
AND
  (B)  ANY PROPOSED, SUBMITTED AND/OR APPROVED CAPITAL PROGRAM PLAN, ITS
COMPONENTS, ELEMENTS AND PROJECTS, AND ASSOCIATED EXPENDITURES. ANY SUCH
COMMENTS, CONCERNS AND RECOMMENDATIONS RELATING TO THE  CAPITAL  PROGRAM
PLAN, ITS COMPONENTS, ELEMENTS AND PROJECTS, AND ASSOCIATED EXPENDITURES
SHALL  BE TAKEN INTO CONSIDERATION IN THE DEVELOPMENT OF THE CURRENT AND
EACH SUCCESSIVE CAPITAL PROGRAM PLAN AND/OR ANY AMENDMENT TO SUCH PLAN.
  2. THE OFFICE SHALL ESTABLISH A PROCESS TO ENSURE TIMELY  NOTIFICATION
OF  THE RECEIPT OF, AND RESPONSE TO, COMMENTS, CONCERNS, AND RECOMMENDA-
TIONS BY MEMBERS OF THE LEGISLATURE OR MEMBERS OF THE PERMANENT CITIZENS
ADVISORY COMMITTEE TO THE AUTHORITY.
  3. THE CHAIR AND OFFICE SHALL PREPARE A REPORT CONTAINING THE  FOLLOW-
ING INFORMATION:
  (A)  A  COMPILATION  OF  THE  COMMENTS,  CONCERNS, AND RECOMMENDATIONS
RECEIVED BY THE OFFICE;
  (B) HOW THESE COMMENTS, CONCERNS OR RECOMMENDATIONS WERE  OR  WILL  BE
ADDRESSED,  SUCH  AS  THE  AUTHORITY'S  RESPONSE BY THE INCORPORATION OR
INITIATION OF SYSTEM AND OPERATIONAL ADJUSTMENTS, IMPROVEMENTS OR EXPAN-
SIONS IF APPLICABLE; AND
  (C) HOW THESE COMMENTS, CONCERNS OR RECOMMENDATIONS WERE  OR  WILL  BE
ADDRESSED,  SUCH AS THE AUTHORITY'S RESPONSE BY CHANGING OR AMENDING THE
CAPITAL PLAN, AS WELL AS PROVIDING STATUS UPDATES  ON  THE  PROGRESS  OF
SUCH PLAN.
  4.  SUCH REPORT SHALL ON A BIANNUAL BASIS, COMMENCING SEPTEMBER FIRST,
TWO THOUSAND NINE, BE SUBMITTED TO THE GOVERNOR, THE TEMPORARY PRESIDENT
OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY, BE POSTED ON THE AUTHORI-
TY'S WEBSITE AND ALSO BE MADE READILY AVAILABLE TO THE PUBLIC.
  S 19.  The public authorities law is amended by adding a  new  section
1276-e to read as follows:
  S  1276-E.  REPORTING.  THE  AUTHORITY SHALL POST ON ITS WEBSITE ON OR
BEFORE THE FIRST OF MAY, THE LAW FIRMS RETAINED BY THE  AUTHORITY  WHICH
IN THE PAST YEAR RECEIVED PAYMENT FOR SERVICES IN SUCH YEAR.
  S  20.  Section  1266-c  of  the  public authorities law is amended by
adding a new subdivision 15 to read as follows:

S. 5451                            39                            A. 8180

  15. (A) IN CONNECTION WITH THE PERFORMANCE  OF  PROJECTS  PURSUANT  TO
THIS  SECTION,  THE  AUTHORITY  SHALL, TO THE EXTENT PRACTICABLE AND NOT
INCONSISTENT WITH ANY FEDERAL LAW, REGULATION  OR  REQUIREMENT,  PROMOTE
THE  MEANINGFUL PARTICIPATION OF SMALL BUSINESS AND NEW YORK STATE BUSI-
NESS  ENTERPRISES  IN  THE  PROVISION  OF  GOODS  AND  SERVICES THAT ARE
PRODUCED OR MANUFACTURED IN NEW  YORK  STATE  AS  PART  OF  PROCUREMENTS
UNDERTAKEN BY THE AUTHORITY.
  (B)  THE  AUTHORITY  SHALL  WITHIN  ONE  HUNDRED EIGHTY DAYS AFTER THE
EFFECTIVE DATE OF THIS SUBDIVISION DEVELOP, AND REVIEW  ANNUALLY  THERE-
AFTER, A PLAN TO EFFECT THE PURPOSES OF THIS SUBDIVISION.
  S 21. This act shall take effect immediately; provided, however, that:
(a) the amendments to subparagraph (1) of paragraph (a) of subdivision 1
of  section  1263 of the public authorities law made by section three of
this act shall be subject to the expiration and reversion of such  para-
graph  pursuant  to  section  3  of  chapter 549 of the laws of 1994, as
amended, when upon such date the provisions of section four of this  act
shall take effect;
  (b)  the  amendments  to  subdivision  4 of section 1263 of the public
authorities law made by section five  of  this  act,  subdivision  2  of
section  1201  of the public authorities law made by section six of this
act, subdivision 1 of section 552 of the public authorities law made  by
section  seven  of  this  act,  and subdivision 5 of section 1266 of the
public authorities law made by section eight of  this  act,  shall  take
effect  upon the date of the appointment by the governor with the advice
and consent of the senate of a chair to the new term of  office  created
pursuant to section three of this act. The governor's office of appoint-
ments  shall  notify  the  legislative bill drafting commission upon the
appointment of a chairman to the new term provided for in section  three
of  this  act in order that the legislative bill drafting commission may
maintain an accurate and timely effective database of the original  text
of  the laws of the state of New York in furtherance of effectuating the
provisions of section 44 of the legislative law and section 70-b of  the
public officers law; and
  (c)  paragraph  c  of  subdivision  1  of section 1269-b of the public
authorities law as amended by section  twelve  of  this  act  shall  not
affect  the  expiration  of such paragraph and shall be deemed to expire
therewith.
  S 3. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be  adjudged  by  any  court  of
competent  jurisdiction  to  be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall  be  confined  in
its  operation  to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would  have  been  enacted  even  if  such
invalid provisions had not been included herein.
  S  4.  This  act shall take effect immediately provided, however, that
the applicable effective date of Parts A through H of this act shall  be
as specifically set forth in the last section of such Parts.