S T A T E   O F   N E W   Y O R K
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     S. 1624--A                                             A. 964--A
 
                        2017-2018 Regular Sessions
 
                       S E N A T E - A S S E M B L Y
 
                             January 10, 2017
                                ___________
 
 IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
   ed,  and  when  printed  to  be committed to the Committee on Investi-
   gations and Government Operations -- recommitted to the  Committee  on
   Investigations  and  Government  Operations  in accordance with Senate
   Rule  6,  sec.  8  --  committee  discharged,  bill  amended,  ordered
   reprinted as amended and recommitted to said committee
 
 IN  ASSEMBLY  --  Introduced  by M. of A. THIELE, ENGLEBRIGHT, COLTON --
   Multi-Sponsored by -- M. of A. MURRAY -- read once and referred to the
   Committee on Ways and Means -- recommitted to the  Committee  on  Ways
   and  Means  in  accordance  with  Assembly Rule 3, sec. 2 -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN ACT to amend the tax law, in relation to the definition of the metro-
   politan commuter transportation  district  for  the  purposes  of  the
   metropolitan  commuter  transportation  mobility tax; and to amend the
   public authorities law, in  relation  to  requiring  the  metropolitan
   transportation  authority  to  renegotiate the joint service operating
   agreement with the state of Connecticut
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative findings. Pursuant to chapter 25 of the laws of
 2009, the legislature did enact the metropolitan mobility tax within the
 twelve   county  region  constituting  the  metropolitan  transportation
 district. The legislature hereby finds that the residents of  the  towns
 of  Brookhaven,  East  Hampton,  Riverhead, Shelter Island, Southold and
 Southampton in the  county  of  Suffolk  receive  minimal  mass  transit
 services  from the metropolitan transportation authority. Further, these
 towns already pay  substantial  taxes  to  the  MTA  for  these  minimal
 services,  including increased sales taxes and mortgage recording taxes.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02108-02-8
              

 S. 1624--A                          2                          A. 964--A
 
 It has been estimated these six towns contribute more than  $60  million
 annually to the MTA than they receive back in service.
   In the interest of tax fairness and to avoid such additional inequita-
 ble  taxation  on  these  towns, it is the purpose of this act to exempt
 such towns from the newly adopted metropolitan  commuter  transportation
 mobility tax.
   § 2. Subsection (a) of section 800 of the tax law, as added by section
 1  of  part  C  of chapter 25 of the laws of 2009, is amended to read as
 follows:
   (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, EXCEPT THAT FOR THE PURPOSES OF
 THIS  ARTICLE, THE TOWNS OF BROOKHAVEN, EAST HAMPTON, RIVERHEAD, SHELTER
 ISLAND, SOUTHAMPTON AND SOUTHOLD IN SUFFOLK  COUNTY  SHALL  BE  EXCLUDED
 FROM  THE  DISTRICT  FOR  THE  PURPOSES OF THIS ARTICLE AND ANY REVENUES
 PREVIOUSLY COLLECTED FROM WITHIN THESE COUNTIES SHALL BE  REIMBURSED  TO
 EACH PAYOR BY MARCH THIRTY-FIRST, TWO THOUSAND TWENTY.
   §  3.  Section 1266 of the public authorities law is amended by adding
 a new subdivision 19 to read as follows:
   19. THE AUTHORITY IS REQUIRED  BY  MARCH  THIRTY-FIRST,  TWO  THOUSAND
 TWENTY TO:
   (A)  RENEGOTIATE THE JOINT SERVICE AGREEMENT BETWEEN THE AUTHORITY AND
 THE STATE OF CONNECTICUT RELATED TO THE OPERATION OF THE METRO-NORTH NEW
 HAVEN LINE TO (I)  REQUIRE  CONNECTICUT  TO  SET  NEW  HAVEN  LINE  FARE
 INCREASES  AT LEVELS NECESSARY TO SUSTAIN EQUIVALENT FARE LEVELS BETWEEN
 NEW YORK STATE RESIDENTS RIDING THE METRO-NORTH  COMMUTER  RAILROAD  AND
 CONNECTICUT  RESIDENTS  RIDING  THE  METRO-NORTH COMMUTER RAILROAD, (II)
 REQUIRE THAT CONNECTICUT OPERATING DEFICIT  SUBSIDY  PAYMENTS  SHALL  BE
 BASED  ON  CONNECTICUT  RESIDENT UTILIZATION OF THE METRO-NORTH COMMUTER
 RAILROAD AND CONNECTICUT RESIDENT UTILIZATION OF THE NEW YORK CITY TRAN-
 SIT AUTHORITY WITH SUCH SUBSIDIES TO BE DETERMINED  BY  MULTIPLYING  THE
 CONNECTICUT  RESIDENT UTILIZATION PERCENTAGES FOR THE METRO-NORTH COMMU-
 TER RAILROAD AND THE NEW YORK CITY TRANSIT AUTHORITY BY  THE  RESPECTIVE
 BASELINE  OPERATING DEFICIT OF THESE OPERATING ENTITIES PRIOR TO SUBSIDY
 ADJUSTMENTS AND PRIOR TO INCREASED REVENUES PROVIDED TO THE AUTHORITY BY
 NEW YORK STATE RESIDENTS PURSUANT TO PAYMENTS MANDATED BY CHAPTER  TWEN-
 TY-FIVE OF THE LAWS OF TWO THOUSAND NINE, AND (III) PROVIDE FOR RETROAC-
 TIVE  LUMP  SUM  PAYMENTS  DUE  FROM THE STATE OF CONNECTICUT RELATED TO
 CALENDAR YEAR TWO THOUSAND NINE; OR
   (B) REDUCE SERVICES AND EXPENSES RELATED TO THE METRO-NORTH NEW  HAVEN
 LINE  OPERATION  BY  AN  AMOUNT  WHICH PRODUCES RECURRING SAVINGS TO THE
 AUTHORITY WHICH ARE EQUIVALENT TO THE INCREASED JOINT SERVICE  AGREEMENT
 PAYMENTS  WHICH WOULD BE DETERMINED UNDER PARAGRAPH (A) OF THIS SUBDIVI-
 SION.
   § 4. This act shall take effect immediately.