Assembly Bill A280A

                                BILL NUMBER:A280

TITLE OF BILL:  An act to amend the public authorities law, in relation
to prohibiting limitations on discounts from the Marine Parkway Gil
Hodges Memorial Bridge or the Cross Bay Veterans Memorial Bridge as
security for bonds and notes

PURPOSE OF GENERAL IDEA OF BILL: To eliminate the placement of discount
and minimum toll language in future bond resolutions and covenants
issued by the Triborough Bridge and Tunnel Authority and the Metropol-
itan Transportation Authority.

JUSTIFICATION:  Current bond resolutions and covenants of the TBTA and
the MTA state the minimum discount to be offered as thirty-three and
one-third per centum (33-1/3%). Bond resolutions which state the specif-
ic discount rate prohibit any future action in relation to toll
reduction. Language within the bonds and covenants also state that the
toll amount charged is to be a minimum of one dollar. It is the inten-
tion of this legislation to eliminate these statements in future bond
resolutions and covenants so that there is no mandate for a minimum toll
charge and there is no restriction as to the minimum discount offered.

The residents of the Rockaway area and surrounding communities are
required to pay for use of the Cross Bay Bridge as they conduct their
daily activities. Commuters must cross the Marine Parkway Bridge as it
connects the Peninsula to Brooklyn. Payment of a toll is required as
              

travelers come and go to school, work or shop. This is the only intra-
county, intra-community bridge which has a toll. The toll restricts the
economic development within Rockaway and unnecessarily burdens the resi-
dents of this community.

There is movement which attempts to limit, decrease and remove the toll
on these bridges. However, the TBTA has stated that these actions are
unconstitutional due to the bonds already in place and the language
relating to discounting. Any proposal to decrease the toll charged on
these two bridges is hampered by the discount language contained within
bond resolutions and covenants.

Additional restrictions exist with the resolution and covenant language
mandating a minimum toll charge. According to this provision, the TBTA
is required to charge a toll of at least one dollar. Efforts to remove
the entire toll are frustrated by the inclusion of this verbiage. The
TBTA and the MTA believe the current bond and covenant language consti-
tutionally prevents any amendments to their bond and toll guidelines.
The bill removes the constitutional conflict by prohibiting further use
of the discount language and minimum toll requirement.

PRIOR LEGISLATIVE HISTORY:

2007-2008: A.65 - Referred to Corporations, Authorities and Commissions.
2005-2006: A.582 - Advanced to third reading Cal. 499
2003-2004: A.3397 - Ordered to third reading Rules Cal. 1515

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: Immediately.