Provides for the expiration of the metropolitan commuter transportation mobility tax and establishes the MTA fiscal oversight board; repealer
download bill text pdf| Date of Action |
Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|---|---|
| May 25, 2010 |
referred to ways and means |
S T A T E O F N E W Y O R K
________________________________________________________________________
11265
I N A S S E M B L Y
May 25, 2010
___________
Introduced by M. of A. SALADINO, MONTESANO -- Multi-Sponsored by -- M.
of A. ALFANO -- read once and referred to the Committee on Ways and
Means
AN ACT to amend part C of chapter 25 of the laws of 2009, amending the
tax law and the administrative code of the city of New York relating
to the metropolitan commuter transportation mobility tax, in relation
to the effective date of such chapter; to amend the public authorities
law, in relation to establishing the metropolitan transportation
authority fiscal oversight board, and to provide for the powers and
duties of such board; and to repeal section 1279-a of the public
authorities law relating to the management advisory board of the
metropolitan transportation authority
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 23 of part C of chapter 25 of the laws of 2009,
amending the tax law and the administrative code of the city of New York
relating to the metropolitan commuter transportation mobility tax, is
amended to read as follows:
S 23. This act shall take effect immediately AND SHALL EXPIRE MARCH 1,
2011 WHEN UPON SUCH DATE THE PROVISIONS OF THIS ACT SHALL BE DEEMED
REPEALED; provided however that: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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11287-11-0
A. 11265 2
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
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.
S 2. Section 1279-a of the public authorities law is REPEALED.
S 3. Article 5 of the public authorities law is amended by adding a
new title 10-E to read as follows:
TITLE 10-E
METROPOLITAN TRANSPORTATION
AUTHORITY FISCAL OVERSIGHT CONTROL BOARD
SECTION 1240. SHORT TITLE.
1241. LEGISLATIVE INTENT.
1242. DEFINITIONS.
1243. ESTABLISHMENT OF METROPOLITAN TRANSPORTATION AUTHORITY
FISCAL OVERSIGHT CONTROL BOARD.
1244. ADMINISTRATION OF THE BOARD.
1245. GENERAL POWERS OF THE BOARD.
1246. TRANSFER OF POWERS, DUTIES AND FUNCTIONS.
1247. TRANSFER OF RECORDS.
1248. TRANSFER OF EMPLOYEES.
1249. CONTINUITY OF AUTHORITY.
1250. COMPLETION OF UNFINISHED BUSINESS.
1251. TERMS OCCURRING IN LAWS, CONTRACTS AND OTHER DOCUMENTS.
1252. EXISTING RIGHTS AND REMEDIES PRESERVED.
1253. PENDING ACTIONS AND PROCEEDINGS.
1254. ASSISTANCE TO THE BOARD; EMPLOYEES OF THE INSPECTOR GENER-
AL.
1255. REVIEW PERIOD.
1256. MTA FINANCIAL PLAN.
1257. ACTIONS AGAINST THE BOARD.
1258. AUDITS.
1259. EFFECT OF INCONSISTENT PROVISIONS.
1259-A. SEPARABILITY; CONSTRUCTION.
S 1240. SHORT TITLE. THIS TITLE SHALL BE KNOWN AND MAY BE CITED AS THE
"METROPOLITAN TRANSPORTATION AUTHORITY FISCAL OVERSIGHT CONTROL BOARD
ACT".
A. 11265 3
S 1241. LEGISLATIVE INTENT. THE LEGISLATURE HEREBY FINDS AND DECLARES
THAT THE METROPOLITAN TRANSPORTATION AUTHORITY IS FACING AN ONGOING
FINANCIAL CRISIS, AND THAT THE CRISIS CANNOT BE RESOLVED ABSENT OUTSIDE
INTERVENTION. THE LEGISLATURE THEREFORE DECLARES THAT THE CREATION OF AN
INDEPENDENT FISCAL OVERSIGHT BOARD IS NECESSARY TO ADDRESS THIS FINAN-
CIAL CRISIS TO RESTORE THE CONFIDENCE OF THE FINANCIAL MARKETS, THOSE
WHO USE THE METROPOLITAN TRANSPORTATION AUTHORITY SERVICES, THOSE WHO DO
BUSINESS WITH SUCH AUTHORITY AND THE PEOPLE OF THE STATE OF NEW YORK.
S 1242. DEFINITIONS. FOR THE PURPOSES OF THIS TITLE, UNLESS THE
CONTEXT REQUIRES OTHERWISE:
1. "BOARD", "CONTROL BOARD" AND "FISCAL OVERSIGHT CONTROL BOARD" MEAN
THE METROPOLITAN TRANSPORTATION AUTHORITY FISCAL OVERSIGHT CONTROL BOARD
ESTABLISHED BY SECTION TWELVE HUNDRED FORTY-THREE OF THIS TITLE.
2. "FORENSIC AUDIT" MEANS THE USE OF ACCOUNTING METHODS TO COLLECT
FORENSIC EVIDENCE TO DETERMINE IF A CRIMINAL ACT INCLUDING, BUT NOT
LIMITED TO, EMBEZZLEMENT OR FRAUD, IS OCCURRING OR HAS OCCURRED WITHIN
THE MTA.
3. "INSPECTOR GENERAL" MEANS THE OFFICE OF METROPOLITAN TRANSPORTATION
AUTHORITY INSPECTOR GENERAL ESTABLISHED BY SECTION TWELVE HUNDRED SEVEN-
TY-NINE OF THIS ARTICLE.
4. "MTA" MEANS THE METROPOLITAN TRANSPORTATION AUTHORITY ESTABLISHED
BY TITLE ELEVEN OF THIS ARTICLE.
5. "MTA REGION" MEANS THE METROPOLITAN COMMUTER TRANSPORTATION
DISTRICT ESTABLISHED BY SECTION TWELVE HUNDRED SIXTY-TWO OF THIS ARTI-
CLE.
S 1243. ESTABLISHMENT OF METROPOLITAN TRANSPORTATION AUTHORITY FISCAL
OVERSIGHT CONTROL BOARD. THERE IS HEREBY ESTABLISHED THE METROPOLITAN
TRANSPORTATION AUTHORITY FISCAL OVERSIGHT CONTROL BOARD, AS AN INDEPEND-
ENT ENTITY WITHIN THE OFFICE OF INSPECTOR GENERAL, WHICH SHALL EXERCISE
THE POWERS AND DUTIES PROVIDED FOR IN THIS TITLE.
S 1244. ADMINISTRATION OF THE BOARD. 1. THE BOARD SHALL CONSIST OF
SEVEN MEMBERS WHICH SHALL BE APPOINTED BY THE GOVERNOR. OF THE SEVEN
MEMBERS, ONE SUCH MEMBER SHALL BE APPOINTED FOLLOWING THE RECOMMENDATION
OF THE STATE COMPTROLLER; ONE SUCH MEMBER SHALL BE APPOINTED ON THE
RECOMMENDATION OF THE TEMPORARY PRESIDENT OF THE SENATE; ONE SUCH MEMBER
SHALL BE APPOINTED ON THE RECOMMENDATION OF THE SPEAKER OF THE ASSEMBLY;
ONE SUCH MEMBER SHALL BE APPOINTED ON THE RECOMMENDATION OF THE MINORITY
LEADER OF THE SENATE; AND ONE SUCH MEMBER SHALL BE APPOINTED ON THE
RECOMMENDATION OF THE MINORITY LEADER OF THE ASSEMBLY. EVERY MEMBER,
WHO IS OTHERWISE AN ELECTED OFFICIAL, SHALL BE ENTITLED TO DESIGNATE A
SINGLE REPRESENTATIVE TO ATTEND, IN HIS OR HER PLACE, MEETINGS OF THE
BOARD AND TO VOTE OR OTHERWISE ACT IN HIS OR HER BEHALF. SUCH DESIGNEES
SHALL BE RESIDENTS OF THE STATE. WRITTEN NOTICE OF SUCH DESIGNATION
SHALL BE FURNISHED PRIOR TO ANY PARTICIPATION BY THE SINGLE DESIGNEE.
SUCH SINGLE DESIGNEE SHALL SERVE AT THE PLEASURE OF THE REPRESENTATIVE,
AND SHALL NOT BE AUTHORIZED TO DELEGATE ANY OF HIS OR HER DUTIES OR
FUNCTIONS TO ANOTHER PERSON. EACH MEMBER SHALL BE APPOINTED FOR A TERM
OF FOUR YEARS, PROVIDED HOWEVER, THAT THREE OF THE MEMBERS FIRST
APPOINTED BY THE GOVERNOR, INCLUDING THE MEMBER APPOINTED FOLLOWING THE
RECOMMENDATION OF THE STATE COMPTROLLER SHALL SERVE FOR A TERM ENDING
JUNE THIRTIETH, TWO THOUSAND THIRTEEN, AND THE REMAINING FOUR MEMBERS
FIRST APPOINTED BY THE GOVERNOR INCLUDING THE MEMBERS APPOINTED ON THE
RECOMMENDATION OF THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF
THE ASSEMBLY, THE MINORITY LEADER OF THE SENATE AND THE MINORITY LEADER
OF THE ASSEMBLY SHALL SERVE FOR A TERM ENDING JUNE THIRTIETH, TWO THOU-
SAND FIFTEEN. EACH MEMBER SHALL HOLD OFFICE UNTIL HIS OR HER SUCCESSOR
A. 11265 4
HAS BEEN APPOINTED AND QUALIFIED. THEREAFTER, EACH MEMBER SHALL SERVE A
TERM OF FOUR YEARS, EXCEPT THAT ANY MEMBER APPOINTED TO FILL A VACANCY
SHALL SERVE ONLY UNTIL THE EXPIRATION OF HIS OR HER PREDECESSOR'S TERM.
2. THE GOVERNOR SHALL DESIGNATE A CHAIR AND A VICE-CHAIR FROM AMONG
THE MEMBERS. THE CHAIR SHALL PRESIDE OVER ALL MEETINGS OF THE MEMBERS
AND SHALL HAVE SUCH OTHER DUTIES AS THE MEMBERS MAY PRESCRIBE. THE
VICE-CHAIR SHALL PRESIDE OVER ALL MEETINGS OF THE MEMBERS IN THE ABSENCE
OF THE CHAIR AND SHALL HAVE SUCH OTHER DUTIES AS THE MEMBERS MAY
PRESCRIBE.
3. THE MEMBERS OF THE BOARD SHALL SERVE WITHOUT SALARY, BUT EACH
MEMBER SHALL BE REIMBURSED FOR ACTUAL AND NECESSARY EXPENSES INCURRED IN
THE PERFORMANCE OF SUCH MEMBER'S OFFICIAL DUTIES AS A MEMBER OF THE
BOARD.
4. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF ANY GENERAL, SPECIAL
OR LOCAL LAW, ORDINANCE, RESOLUTION OR CHARTER, NO OFFICER, MEMBER OR
EMPLOYEE OF THE STATE, ANY CITY, COUNTY, TOWN OR VILLAGE, ANY GOVERN-
MENTAL ENTITY OPERATING ANY PUBLIC SCHOOL OR COLLEGE, ANY SCHOOL
DISTRICT OR ANY OTHER PUBLIC AGENCY OR INSTRUMENTALITY WHICH EXERCISES
GOVERNMENTAL POWERS UNDER THE LAWS OF THE STATE, SHALL FORFEIT HIS OR
HER OFFICE OR EMPLOYMENT BY REASON OF HIS OR HER ACCEPTANCE OF APPOINT-
MENT AS A MEMBER, OFFICER OR EMPLOYEE OF THE BOARD, NOR SHALL SERVICE AS
SUCH MEMBER, OFFICER OR EMPLOYEE OF THE BOARD BE DEEMED INCOMPATIBLE OR
IN CONFLICT WITH SUCH OFFICE OR EMPLOYMENT.
5. FOUR MEMBERS SHALL CONSTITUTE A QUORUM FOR THE TRANSACTION OF ANY
BUSINESS OR THE EXERCISE OF ANY POWER OF THE BOARD. NO ACTION SHALL BE
TAKEN BY THE BOARD EXCEPT PURSUANT TO A FAVORABLE VOTE OF AT LEAST FOUR
MEMBERS PARTICIPATING IN A MEETING AT WHICH SUCH ACTION IS TAKEN.
6. THE BOARD SHALL APPOINT A TREASURER AND MAY APPOINT OFFICERS AND
AGENTS AS IT MAY REQUIRE AND PRESCRIBE THEIR DUTIES.
S 1245. GENERAL POWERS OF THE BOARD. EXCEPT AS OTHERWISE LIMITED BY
THIS TITLE, THE BOARD SHALL HAVE THE FOLLOWING POWERS AND DUTIES:
1. TO MAKE AND ALTER BY-LAWS FOR ITS ORGANIZATIONS AND MANAGEMENT;
2. TO MAKE AND EXECUTE CONTRACTS AND ALL OTHER INSTRUMENTS OR AGREE-
MENTS NECESSARY OR CONVENIENT TO CARRY OUT ANY POWERS AND FUNCTIONS
EXPRESSLY GIVEN IN THIS TITLE;
3. TO COMMENCE ANY ACTION TO PROTECT OR ENFORCE ANY RIGHT CONFERRED
UPON IT BY ANY LAW, CONTRACT OR OTHER AGREEMENT;
4. TO REVIEW, AUTHORIZE AND APPROVE ALL CONTRACTS OF THE MTA OR ANY OF
ITS SUBSIDIARIES IN EXCESS OF ONE HUNDRED THOUSAND DOLLARS;
5. TO APPROVE OR DISAPPROVE THE FINANCIAL PLAN AND THE FINANCIAL PLAN
MODIFICATIONS OF THE MTA, AND SHALL FORMULATE AND ADOPT ITS OWN MODIFI-
CATIONS TO THE FINANCIAL PLAN, AS NECESSARY SUCH MODIFICATIONS SHALL
BECOME EFFECTIVE UPON THEIR ADOPTION BY THE CONTROL BOARD;
6. TO SET A MAXIMUM LEVEL OF SPENDING FOR ANY PROPOSED BUDGET OF ANY
SUBSIDIARY ORGANIZATIONS OF THE MTA;
7. (A) TO IMPOSE A WAGE AND/OR HIRING FREEZE UPON A FINDING BY THE
CONTROL BOARD THAT A WAGE AND/OR HIRING FREEZE IS ESSENTIAL TO THE
ADOPTION OR MAINTENANCE OF A MTA BUDGET OR FINANCIAL PLAN THAT IS IN
COMPLIANCE WITH THIS TITLE, THE BOARD SHALL BE EMPOWERED TO ORDER THAT
ALL INCREASES IN SALARY OR WAGES OF EMPLOYEES OF THE MTA AND EMPLOYEES
OF COVERED SUBSIDIARIES WHICH WILL TAKE EFFECT AFTER THE DATE OF THE
ORDER PURSUANT TO COLLECTIVE BARGAINING AGREEMENTS, OTHER ANALOGOUS
CONTRACTS OR INTEREST ARBITRATION AWARDS, IN EXISTENCE OR THEREAFTER
ENTERED INTO, REQUIRING SUCH SALARY OR WAGE INCREASES AS OF ANY DATE
THEREAFTER ARE SUSPENDED. SUCH ORDER MAY ALSO PROVIDE THAT ALL INCREASED
PAYMENTS FOR HOLIDAY AND VACATIONS DIFFERENTIALS, SHIFT DIFFERENTIALS,
A. 11265 5
SALARY ADJUSTMENTS, ACCORDING TO PLAN AND STEP-UPS OR INCREMENTS FOR
EMPLOYEES OF THE MTA AND EMPLOYEES OF COVERED SUBSIDIARIES WHICH WILL
TAKE EFFECT AFTER THE DATE OF THE ORDER PURSUANT TO COLLECTIVE BARGAIN-
ING AGREEMENTS, OTHER ANALOGOUS CONTRACTS OR INTEREST ARBITRATION AWARDS
REQUIRING SUCH INCREASED PAYMENTS AS OF ANY DATE THEREAFTER ARE, IN THE
SAME MANNER, SUSPENDED. FOR THE PURPOSES OF COMPUTING THE PENSION BASE
OF RETIREMENT ALLOWANCES, ANY SUSPENDED SALARY OR WAGE INCREASES AND ANY
OTHER SUSPENDED PAYMENTS SHALL NOT BE CONSIDERED AS PART OF COMPENSATION
OR FINAL COMPENSATION OR OF ANNUAL SALARY EARNED OR EARNABLE.
(B) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVI-
SION, THIS SUBDIVISION SHALL NOT BE APPLICABLE TO EMPLOYEES OF THE MTA
OR EMPLOYEES OF A COVERED SUBSIDIARY SUBJECT TO A COLLECTIVE BARGAINING
AGREEMENT OR AN EMPLOYEE OF THE MTA OR A COVERED SUBSIDIARY NOT SUBJECT
TO THE COLLECTIVE BARGAINING AGREEMENT WHERE THE COLLECTIVE BARGAINING
REPRESENTATIVE OR SUCH UNREPRESENTED EMPLOYEE HAS AGREED TO A DEFERMENT
OF SALARY OR WAGE INCREASE, BY AN INSTRUMENT IN WRITING WHICH HAS BEEN
CERTIFIED BY THE CONTROL BOARD AS BEING AN ACCEPTABLE AND APPROPRIATE
CONTRIBUTION TOWARD ALLEVIATING THE FISCAL CRISIS OF THE AUTHORITY. ANY
SUCH AGREEMENT TO A DEFERRAL OF SALARY OR WAGE INCREASE MAY PROVIDE THAT
FOR THE PURPOSES OF COMPUTING THE PENSION BASE OF RETIREMENT ALLOWANCES,
ANY DEFERRED SALARY OR WAGE INCREASE MAY BE CONSIDERED AS PART OF
COMPENSATION OR FINAL COMPENSATION OR OF ANNUAL SALARY EARNED OR EARNA-
BLE.
(C) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPHS (A) AND (B) OF THIS
SUBDIVISION, NO RETROACTIVE PAY ADJUSTMENTS OF ANY KIND SHALL ACCRUE OR
BE DEEMED TO ACCRUE DURING THE PERIOD OF WAGE FREEZE, AND NO SUCH ADDI-
TIONAL AMOUNTS SHALL BE PAID AT THE TIME A WAGE FREEZE IS LIFTED, OR AT
ANY TIME THEREAFTER;
8. TO CONDUCT FORENSIC AUDITS AND REPORT ANY IN WHICH THERE IS REASON
CASE TO BELIEVE A VIOLATION OF A LAW, ABUSE OR WASTE OCCURRED RELATING
TO THE MTA TO THE STATE INSPECTOR GENERAL OR, WHERE APPLICABLE, THE
INSPECTOR GENERAL;
9. TO REVIEW AND APPROVE OR DISAPPROVE ANY COLLECTIVE BARGAINING
AGREEMENT TO BE ENTERED INTO BY THE MTA OR ANY COVERED SUBSIDIARY OR
PURPORTING TO BIND, THE MTA OR ANY COVERED SUBSIDIARY. PRIOR TO ENTERING
INTO ANY COLLECTIVE BARGAINING AGREEMENT, THE MTA OR ANY COVERED SUBSID-
IARY SHALL SUBMIT A COPY OF SUCH COLLECTIVE BARGAINING AGREEMENT TO THE
CONTROL BOARD, ACCOMPANIED BY AN ANALYSIS OF THE PROJECTED COSTS OF SUCH
AGREEMENT AND CERTIFICATION THAT EXECUTION OF THE AGREEMENT WILL BE IN
ACCORDANCE WITH THE FINANCIAL PLAN. SUCH SUBMISSION SHALL BE IN SUCH
FORM AND SHALL INCLUDE SUCH ADDITIONAL INFORMATION AS THE CONTROL BOARD
MAY PRESCRIBE. THE CONTROL BOARD SHALL PROMPTLY REVIEW THE TERMS OF SUCH
COLLECTIVE BARGAINING AGREEMENT AND THE SUPPORTING INFORMATION IN ORDER
TO DETERMINE COMPLIANCE WITH THE FINANCIAL PLAN, AND SHALL DISAPPROVE
ANY COLLECTIVE BARGAINING AGREEMENT WHICH, IN ITS JUDGEMENT, WOULD BE
INCONSISTENT WITH THE FINANCIAL PLAN. NO COLLECTIVE BARGAINING AGREE-
MENT BINDING, OR PURPORTING TO BIND, THE MTA OR ANY COVERED SUBSIDIARY
AFTER THE EFFECTIVE DATE OF THIS TITLE SHALL BE VALID AND BINDING UPON
THE MTA OR ANY COVERED SUBSIDIARY UNLESS FIRST APPROVED BY RESOLUTION OF
THE CONTROL BOARD AND SHALL ACT JOINTLY WITH THE MTA IN SELECTING
MEMBERS OF ANY INTEREST ARBITRATION PANEL. NOTWITHSTANDING ANY OTHER
EVIDENCE PRESENTED BY THE MTA, THE COVERED ORGANIZATION OR ANY RECOG-
NIZED EMPLOYEE ORGANIZATION, THE ARBITRATION PANEL MUST, PRIOR TO ISSU-
ING ANY FINAL DECISION, PROVIDE THE BOARD WITH THE OPPORTUNITY TO PRES-
ENT EVIDENCE REGARDING THE FISCAL CONDITION OF THE MTA;
A. 11265 6
10. TO MAKE RECOMMENDATIONS TO THE GOVERNOR, THE TEMPORARY PRESIDENT
OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE MINORITY LEADERS OF THE
SENATE AND THE ASSEMBLY, AND THE CHAIRS AND RANKING MINORITY MEMBERS OF
THE FOLLOWING COMMITTEES: THE SENATE FINANCE COMMITTEE, THE ASSEMBLY
WAYS AND MEANS COMMITTEE, THE SENATE COMMITTEE ON CORPORATIONS, AUTHORI-
TIES AND COMMISSIONS AND THE ASSEMBLY COMMITTEE ON CORPORATIONS, AUTHOR-
ITIES AND COMMISSIONS AND CONTROL BOARD MEMBERS CONCERNING OPPORTUNITIES
TO IMPROVE THE PERFORMANCE, REPORTING, REFORMATION, STRUCTURE AND OVER-
SIGHT OF THE MTA;
11. TO PROVIDE SUCH ADDITIONAL INFORMATION AND ANALYSIS AS MAY BE
REASONABLY REQUESTED BY THE LEGISLATURE AND STATE COMPTROLLER;
12. TO REVIEW THE POTENTIAL FOR AND MAKE RECOMMENDATIONS TO THE GOVER-
NOR AND LEGISLATURE REGARDING THE TERMS OF BOARD MEMBERS;
13. TO DEVELOP AND ISSUE A WRITTEN ACKNOWLEDGEMENT THAT A BOARD MEMBER
MUST EXECUTE AT THE TIME THAT THE MEMBER TAKES AND SUBSCRIBES THEIR OATH
OF OFFICE, OR WITHIN SIXTY-FIVE DAYS AFTER THE EFFECTIVE DATE OF THIS
TITLE IF THE MEMBER HAS ALREADY TAKEN AND SUBSCRIBED THEIR OATH OF
OFFICE, IN WHICH THE BOARD MEMBER ACKNOWLEDGES THAT THEY UNDERSTAND
THEIR INDEPENDENCE AND FIDUCIARY DUTIES, INCLUDING THEIR DUTY OF LOYALTY
AND CARE TO THE ORGANIZATION AND COMMITMENT TO THE CONTROL BOARD'S
MISSION;
14. TO RECOMMEND TO THE LEGISLATURE AND GOVERNOR A COMPENSATION PLAN
FOR OFFICERS OF THE MTA AND COVERED SUBSIDIARIES;
15. TO DEVELOP GUIDELINES FOR BEST CORPORATE MANAGEMENT AND FINANCIAL
PRACTICES OF THE MTA, WHERE SUCH AUTHORITY SHALL COMPLY WITH THOSE
GUIDELINES EXCEPT WHEN THE MTA PROVIDES TO THE CONTROL BOARD A DETAILED
EXPLANATION OF THE MTA'S FAILURE TO COMPLY, AND WHERE AN EXPLAINING
AUTHORITY SHALL BE CONSIDERED IN COMPLIANCE WITH SUCH GUIDELINES UNLESS
AND UNTIL NOTIFIED TO THE CONTRARY BY THE CONTROL BOARD;
16. TO PERIODICALLY EVALUATE THE SUSPENSION OF SALARY OR WAGE
INCREASES OR SUSPENSION OF OTHER INCREASED PAYMENTS OR BENEFITS, AND
MAY, IF IT FINDS THAT THE FISCAL CRISIS, IN THE SOLE JUDGMENT OF THE
CONTROL BOARD HAS ABATED, TERMINATE SUCH SUSPENSIONS;
17. TO APPOINT SUCH OFFICERS AND EMPLOYEES AS IT MAY REQUIRE FOR THE
PERFORMANCE OF ITS DUTIES AND TO FIX AND DETERMINE THEIR QUALIFICATIONS,
DUTIES AND COMPENSATION, AND TO RETAIN OR EMPLOY COUNSEL, AUDITORS AND
PRIVATE FINANCIAL CONSULTANTS AND OTHER SERVICES ON A CONTRACT BASIS OR
OTHERWISE FOR RENDERING PROFESSIONAL, BUSINESS OR TECHNICAL SERVICES AND
ADVICE; AND, IN TAKING SUCH ACTIONS, THE CONTROL BOARD SHALL CONSIDER
THE FINANCIAL IMPACT ON THE MTA;
18. TO MAKE REPORTS RECEIVED BY AND PREPARED BY THE CONTROL BOARD
AVAILABLE TO THE PUBLIC, TO THE EXTENT PRACTICABLE, THROUGH THE INTER-
NET. IN ADDITION, THE CONTROL BOARD MAY MAKE PUBLICLY AVAILABLE, AND TO
THE EXTENT PRACTICABLE THROUGH THE INTERNET, SUCH ADDITIONAL INFORMATION
AS IT DEEMS APPROPRIATE, PROVIDED SUCH DISCLOSURE DOES NOT INTERFERE
WITH THE OVERSIGHT FUNCTIONS OF SUCH BOARD. THE PROVISIONS OF THIS
SUBDIVISION SHALL NOT REQUIRE, HOWEVER, THE PUBLIC DISCLOSURE OF DOCU-
MENTS OR INFORMATION NOT SUBJECT TO DISCLOSURE UNDER THE PROVISIONS OF
SECTION EIGHTY-SEVEN OF THE PUBLIC OFFICERS LAW. FURTHERMORE, BEFORE
MAKING PUBLICLY AVAILABLE IN ANY MANNER INFORMATION THAT IS NOT SUBJECT
TO MANDATORY DISCLOSURE UNDER THE PROVISIONS OF SECTION EIGHTY-SEVEN OF
THE PUBLIC OFFICERS LAW, THE CONTROL BOARD SHALL FIRST OBTAIN THE
CONSENT OF THE MTA;
19. TO ANNUALLY ISSUE REPORTS ON ITS FINDINGS AND ANALYSES TO THE
GOVERNOR, THE CHAIR AND RANKING MINORITY MEMBER OF THE SENATE FINANCE
COMMITTEE, THE CHAIR AND RANKING MINORITY MEMBER OF THE ASSEMBLY WAYS
A. 11265 7
AND MEANS COMMITTEE, THE CHAIR AND RANKING MINORITY MEMBER OF THE SENATE
STANDING COMMITTEE ON CORPORATIONS, AUTHORITIES AND COMMISSIONS, THE
CHAIR AND RANKING MINORITY MEMBER OF THE ASSEMBLY STANDING COMMITTEE ON
CORPORATIONS, AUTHORITIES AND COMMISSIONS, THE STATE COMPTROLLER AND THE
ATTORNEY GENERAL, WITH CONCLUSIONS AND OPINIONS CONCERNING THE PERFORM-
ANCE OF THE MTA AND TO STUDY, REVIEW AND REPORT ON THE OPERATIONS, PRAC-
TICES AND FINANCES OF THE MTA. SUCH REPORTS SHALL INCLUDE, BUT NOT BE
LIMITED TO: (A) THE ECONOMIC IMPACT OF THE MOBILITY TAX ON THE MTA
REGION, (B) A COMPENSATION SCHEDULE IN ADDITION TO THE REPORT DESCRIBED
IN SECTION TWENTY-EIGHT HUNDRED SIX OF THIS CHAPTER THAT SHALL INCLUDE,
BY POSITION, TITLE AND NAME OF THE PERSON HOLDING SUCH POSITION OR
TITLE, THE SALARY, COMPENSATION, ALLOWANCE AND/OR BENEFITS PROVIDED TO
ANY OFFICER, DIRECTOR OR EMPLOYEE IN A DECISION MAKING OR MANAGERIAL
POSITION OF SUCH AUTHORITY WHOSE SALARY IS IN EXCESS OF ONE HUNDRED
THOUSAND DOLLARS, (C) EDUCATIONAL BACKGROUND AND PROFESSIONAL EXPERIENCE
FOR ALL DIRECTORS, OFFICERS AND EMPLOYEES FOR WHOM SALARY REPORTING IS
REQUIRED UNDER PARAGRAPH (B) OF THIS SUBDIVISION, (D) THE PROJECTS
UNDERTAKEN BY SUCH AUTHORITY DURING THE PAST YEAR, (E) A LISTING AND
DESCRIPTION, IN ADDITION TO THE REPORT REQUIRED BY PARAGRAPH A OF SUBDI-
VISION THREE OF SECTION TWENTY-EIGHT HUNDRED NINETY-SIX OF THIS CHAPTER
OF ALL REAL PROPERTY OF THE MTA HAVING AN ESTIMATED FAIR MARKET VALUE IN
EXCESS OF FIFTY THOUSAND DOLLARS THAT THE MTA ACQUIRES OR DISPOSES OF
DURING SUCH PERIOD. THE REPORT SHALL CONTAIN THE PRICE RECEIVED OR PAID
BY THE AUTHORITY AND THE NAME OF THE PURCHASER OR SELLER FOR ALL SUCH
PROPERTY SOLD OR BOUGHT BY THE MTA, (F) THE MTA'S CODE OF ETHICS, (G) AN
ASSESSMENT OF THE EFFECTIVENESS OF ITS INTERNAL CONTROL STRUCTURE AND
PROCEDURES, (H) A DESCRIPTION OF THE MTA AND ITS BOARD STRUCTURE,
INCLUDING (I) NAMES OF COMMITTEES AND COMMITTEE MEMBERS, (II) LISTS OF
BOARD MEETINGS AND ATTENDANCE, (III) DESCRIPTIONS OF MAJOR MTA UNITS AND
SUBSIDIARIES, AND (IV) NUMBER OF EMPLOYEES, (I) ITS CHARTER, IF ANY, AND
BY-LAWS, (J) A LISTING OF MATERIAL CHANGES IN OPERATIONS AND PROGRAMS
DURING THE REPORTING YEAR, (K) A DESCRIPTION OF ASSETS VALUED AT MORE
THAN TWENTY THOUSAND DOLLARS AND/OR SERVICES BOUGHT OR SOLD AND
CONTRACTS FOR SERVICES VALUED AT MORE THAN ONE HUNDRED THOUSAND DOLLARS
ENTERED INTO OTHER THAN ON A COMPETITIVE BASIS, INCLUDING (I) THE NATURE
OF THOSE ASSETS AND SERVICES, (II) THE NAMES OF THE COUNTERPARTIES, AND
(III) WHERE THE CONTRACT PRICE FOR GOODS PURCHASED EXCEEDS FAIR MARKET
VALUE, OR WHERE THE CONTRACT PRICE FOR GOODS SOLD IS LESS THAN FAIR
MARKET VALUE, A STATEMENT OF THE FAIR MARKET VALUE, A DETAILED EXPLANA-
TION EXECUTED BY THE CHIEF EXECUTIVE OFFICER, CHIEF FINANCIAL OFFICER OR
PROCUREMENT OFFICER OF THE REASONS FOR THE HIGH PRICE PURCHASE OR THE
LOW PRICE SALE INCLUDING THE RELATIONSHIP, IF ANY, OF PERSONS ASSOCIATED
WITH THE BUYER/PURCHASER AND PERSONS ASSOCIATED WITH THE MTA AND/OR THE
OFFICIALS WHO APPOINTED MEMBERS TO THE MTA BOARD, AND (L) A DESCRIPTION
OF ANY MATERIAL PENDING LITIGATION IN WHICH THE AUTHORITY IS INVOLVED AS
A PARTY DURING THE REPORTING YEAR; AND
20. TO DO ANY AND ALL THINGS NECESSARY OR CONVENIENT TO CARRY OUT ITS
PURPOSES AND EXERCISE THE POWERS EXPRESSLY GIVEN AND GRANTED IN THIS
TITLE, PROVIDED, HOWEVER, THE BOARD SHALL UNDER NO CIRCUMSTANCES
ACQUIRE, HOLD OR TRANSFER TITLE TO, LEASE, OWN BENEFICIALLY OR OTHER-
WISE, MANAGE, OPERATE OR OTHERWISE EXERCISE CONTROL OVER ANY REAL PROP-
ERTY, ANY IMPROVEMENT TO REAL PROPERTY OR ANY INTEREST THEREIN OTHER
THAN A LEASE OR SUBLEASE OF OFFICE SPACE DEEMED NECESSARY OR DESIRABLE
BY THE CONTROL BOARD.
S 1246. TRANSFER OF POWERS, DUTIES AND FUNCTIONS. ALL POWERS, DUTIES
AND FUNCTIONS CONFERRED UPON THE MANAGEMENT ADVISORY BOARD CREATED BY
A. 11265 8
THE FORMER SECTION TWELVE HUNDRED SEVENTY-NINE-A OF THIS ARTICLE, SHALL
BE TRANSFERRED TO AND ASSUMED BY THE BOARD.
S 1247. TRANSFER OF RECORDS. THE FORMER MANAGEMENT ADVISORY BOARD
CREATED BY THE FORMER SECTION TWELVE HUNDRED SEVENTY-NINE-A OF THIS
ARTICLE SHALL DELIVER TO THE BOARD ALL BOOKS, PAPERS, RECORDS AND PROP-
ERTY AS REQUESTED BY THE BOARD.
S 1248. TRANSFER OF EMPLOYEES. UPON THE TRANSFER OF THE FUNCTIONS OF
THE FORMER MANAGEMENT ADVISORY BOARD CREATED BY THE FORMER SECTION
TWELVE HUNDRED SEVENTY-NINE-A OF THIS ARTICLE TO THE BOARD, ANY AFFECTED
EMPLOYEES MAY BE TRANSFERRED TO THE BOARD IN ACCORDANCE WITH SECTION
SEVENTY OF THE CIVIL SERVICE LAW.
S 1249. CONTINUITY OF AUTHORITY. FOR THE PURPOSE OF SUCCESSION TO ALL
FUNCTIONS, POWERS, DUTIES AND OBLIGATIONS TRANSFERRED AND ASSIGNED TO,
DEVOLVED UPON AND ASSUMED BY THE BOARD SHALL BE DEEMED AND HELD TO
CONSTITUTE THE CONTINUATION OF THE FORMER MANAGEMENT ADVISORY BOARD
PERTAINING TO THE POWERS AND FUNCTIONS TRANSFERRED.
S 1250. COMPLETION OF UNFINISHED BUSINESS. ANY BUSINESS OR OTHER
MATTER UNDERTAKEN OR COMMENCED BY THE FORMER MANAGEMENT ADVISORY BOARD
CREATED BY THE FORMER SECTION TWELVE HUNDRED SEVENTY-NINE-A OF THIS
ARTICLE PERTAINING TO OR CONNECTED WITH THE FUNCTIONS, POWERS, OBLI-
GATIONS AND DUTIES TRANSFERRED AND ASSIGNED TO THE BOARD, AND PENDING ON
THE EFFECTIVE DATE OF THIS TITLE MAY BE CONDUCTED AND COMPLETED BY THE
BOARD IN THE SAME MANNER AND UNDER THE SAME TERMS AND CONDITIONS AND
WITH THE SAME EFFECT AS IF CONDUCTED AND COMPLETED BY THE FORMER MANAGE-
MENT ADVISORY BOARD.
S 1251. TERMS OCCURRING IN LAWS, CONTRACTS AND OTHER DOCUMENTS. WHEN-
EVER THE FORMER MANAGEMENT ADVISORY BOARD CREATED BY THE FORMER SECTION
TWELVE HUNDRED SEVENTY-NINE-A OF THIS ARTICLE IS REFERRED TO OR DESIG-
NATED IN ANY LAW, CONTRACT OR DOCUMENTS PERTAINING TO THE FUNCTIONS,
POWERS, OBLIGATIONS AND DUTIES TRANSFERRED AND ASSIGNED TO THE BOARD,
SUCH REFERENCE OR DESIGNATION SHALL BE DEEMED TO REFER TO THE BOARD.
S 1252. EXISTING RIGHTS AND REMEDIES PRESERVED. NO EXISTING RIGHT OR
REMEDY OF ANY CHARACTER SHALL BE LOST, IMPAIRED OR AFFECTED BY REASON OF
THIS TITLE.
S 1253. PENDING ACTIONS AND PROCEEDINGS. NO ACTION OR PROCEEDING
PENDING AT THE TIME WHEN THIS ACT SHALL TAKE EFFECT, BROUGHT BY OR
AGAINST THE FORMER MANAGEMENT ADVISORY BOARD CREATED BY THE FORMER
SECTION TWELVE HUNDRED SEVENTY-NINE-A OF THIS ARTICLE RELATING TO THE
FUNCTION, POWER OR DUTY TRANSFERRED TO OR DEVOLVED UPON THE BOARD SHALL
BE AFFECTED BY THIS TITLE, BUT THE SAME MAY BE PROSECUTED OR DEFENDED IN
THE NAME OF THE BOARD ACCOUNTABILITY AND UPON APPLICATION TO THE COURT,
THE BOARD SHALL BE SUBSTITUTED AS A PARTY.
S 1254. ASSISTANCE TO THE BOARD; EMPLOYEES OF THE INSPECTOR GENERAL.
1. THE BOARD MAY USE AGENTS, EMPLOYEES AND FACILITIES OF THE INSPECTOR
GENERAL.
2. OFFICERS AND EMPLOYEES OF THE MTA MAY BE TRANSFERRED TO THE BOARD
WITHOUT EXAMINATION AND WITHOUT LOSS OF ANY CIVIL SERVICE OR RETIREMENT
STATUS OR RIGHTS. ANY OFFICER OR EMPLOYEE OF THE BOARD WHO HERETOFORE
ACQUIRED OR SHALL HEREAFTER ACQUIRE SUCH POSITION STATUS BY TRANSFER AND
WHO AT THE TIME OF SUCH TRANSFER WAS A MEMBER OF THE NEW YORK STATE AND
LOCAL EMPLOYEES' RETIREMENT SYSTEM SHALL CONTINUE TO BE A MEMBER OF SUCH
SYSTEM AS LONG AS HE OR SHE CONTINUES IN SUCH SERVICE, AND SHALL CONTIN-
UE TO HAVE ALL THE RIGHTS, PRIVILEGES AND OBLIGATIONS OF MEMBERSHIP IN
SUCH SYSTEM.
A. 11265 9
S 1255. REVIEW PERIOD. 1. ANNUALLY NOT LATER THAN NOVEMBER FIRST, THE
MTA SHALL SUBMIT TO THE BOARD AN ANNUAL BUDGET PROPOSAL AND FINANCIAL
PLAN.
2. NOT LATER THAN THIRTY DAYS AFTER SUCH SUBMISSION, THE BOARD SHALL
APPROVE OR DISAPPROVE THE BUDGET PROPOSAL AND FINANCIAL PLAN.
3. IN THE EVENT THE BOARD SHALL DISAPPROVE SUCH BUDGET PROPOSAL AND
FINANCIAL PLAN BASED ON DISAPPROVAL OF CERTAIN ACTIONS OR ASSUMPTIONS,
THE BOARD SHALL PROMPTLY THEREAFTER NOTIFY THE MTA OF ITS REASONS. WITH-
IN FIFTEEN DAYS FROM THE RECEIPT OF SUCH NOTIFICATION THE MTA SHALL
MODIFY THE BUDGET PROPOSAL AND FINANCIAL PLAN, AND UNLESS SUCH BUDGET
PROPOSAL AND FINANCIAL PLAN MODIFICATION IS APPROVED BY THE BOARD, THE
BOARD SHALL IMPOSE A FINANCIAL PLAN OF ITS OWN FORMULATION AS SOON AS
PRACTICABLE.
S 1256. MTA FINANCIAL PLAN. 1. THE MTA SHALL PREPARE AND SUBMIT TO
THE BOARD A FOUR-YEAR FINANCIAL PLAN, NOT LATER THAN THE DATE REQUIRED
FOR SUBMISSION OF THE ANNUAL BUDGET. SUCH FINANCIAL PLAN SHALL, IN ADDI-
TION TO THE REQUIREMENTS FOR FINANCIAL PLANS SET FORTH IN SUBDIVISIONS
TWO AND THREE OF THIS SECTION, CONTAIN ACTIONS SUFFICIENT TO ENSURE WITH
RESPECT TO THE MAJOR OPERATING FUNDS FOR EACH FISCAL YEAR OF THE PLAN
THAT ANNUAL AGGREGATE OPERATING EXPENSES FOR SUCH FISCAL YEAR SHALL NOT
EXCEED ANNUAL AGGREGATE OPERATING REVENUES FOR SUCH FISCAL YEAR.
2. EACH FINANCIAL PLAN AND FINANCIAL PLAN MODIFICATION SHALL CONFORM
TO THE REQUIREMENTS OF PARAGRAPH (A) OF THIS SUBDIVISION AND SHALL
PROVIDE THAT THE MAJOR OPERATING FUNDS OF THE MTA WILL BE BALANCED IN
ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. THE FINANCIAL
PLAN SHALL BE DEVELOPED AND APPROVED, AND MAY FROM TIME TO TIME BE MODI-
FIED, IN ACCORDANCE WITH THE FOLLOWING PROCEDURES:
(A) THE MTA SHALL SUBMIT TO THE BOARD A CERTIFICATE STATING THAT THE
BUDGET SUBMITTED TO THE BOARD IS CONSISTENT WITH THE FINANCIAL PLAN
SUBMITTED THEREWITH AND THAT OPERATION WITHIN THE BUDGET IS FEASIBLE.
(B) PRIOR TO THE APPROVAL OR DISAPPROVAL OF THE FINANCIAL PLAN OF THE
MTA BY THE BOARD, THE BOARD SHALL VERIFY THAT THE MTA HAS REQUESTED
COMMUNITY, EDUCATIONAL OR OTHER ENTITIES TO SEEK PUBLIC INPUT AND
COMMENT RELATING TO THE MTA'S AND/OR ANY COVERED SUBSIDIARIES' FINANCIAL
PLAN. THE BOARD SHALL EVALUATE ANY PROPOSALS SUBMITTED TO THE BOARD FOR
COST SAVINGS AND/OR SERVICE DELIVERY ENHANCEMENT BY THE MTA.
(C) IF THE BOARD DETERMINES THAT THE FINANCIAL PLAN OR FINANCIAL PLAN
MODIFICATION PROVIDED PURSUANT TO PARAGRAPH (E) OF THIS SUBDIVISION OR
SECTION TWELVE HUNDRED FIFTY-FIVE OF THIS TITLE IS COMPLETE AND COMPLIES
WITH THE STANDARDS SET FORTH IN THIS SUBDIVISION, THE BOARD SHALL MAKE A
CERTIFICATION TO THE MTA SETTING FORTH REVENUE ESTIMATES AGREED TO BY
THE BOARD IN ACCORDANCE WITH SUCH DETERMINATION.
(D) THE BOARD SHALL, IN THE EVENT IT DISAGREES WITH ELEMENTS OF THE
FINANCIAL PLAN PROVIDED PURSUANT TO PARAGRAPH (E) OF THIS SUBDIVISION,
OR SECTION TWELVE HUNDRED FIFTY-FIVE OF THIS TITLE, PROVIDE NOTICE THER-
EOF TO THE MTA, WITH COPIES TO THE DIRECTOR OF THE BUDGET, THE STATE
COMPTROLLER, THE CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE, THE
CHAIR OF THE SENATE FINANCE COMMITTEE AND THE RANKING MINORITY MEMBERS
OF SUCH COMMITTEES, IF, IN THE JUDGMENT OF THE BOARD, SUCH PLAN: (I) IS
INCOMPLETE; (II) FAILS TO CONTAIN PROJECTIONS OF REVENUES AND EXPENDI-
TURES THAT ARE BASED ON REASONABLE AND APPROPRIATE ASSUMPTIONS AND METH-
ODS OF ESTIMATIONS; (III) FAILS TO PROVIDE THAT OPERATIONS OF THE MTA
AND THE COVERED SUBSIDIARIES WILL BE CONDUCTED WITHIN THE CASH RESOURCES
AVAILABLE; OR (IV) FAILS TO COMPLY WITH THE PROVISIONS OF THIS TITLE OR
OTHER REQUIREMENTS OF LAW.
A. 11265 10
(E) AFTER THE INITIAL ADOPTION OF AN APPROVED FINANCIAL PLAN, THE
REVENUE ESTIMATES CERTIFIED BY THE BOARD AND THE FINANCIAL PLAN SHALL BE
REGULARLY REEXAMINED BY THE BOARD IN CONSULTATION WITH THE MTA, THE
STATE COMPTROLLER AND THE COVERED SUBSIDIARIES, AND THE MTA SHALL
PROVIDE A MODIFIED FINANCIAL PLAN IN SUCH DETAIL AND WITHIN SUCH TIME
PERIODS AS THE BOARD MAY REQUIRE. IN THE EVENT OF REDUCTIONS IN SUCH
REVENUE ESTIMATES, OR IN THE EVENT THE MTA OR A COVERED SUBSIDIARY SHALL
EXPEND FUNDS AT A RATE THAT WOULD EXCEED THE AGGREGATE EXPENDITURE LIMI-
TATION FOR THE MTA OR COVERED SUBSIDIARY PRIOR TO THE EXPIRATION OF THE
FISCAL YEAR, THE MTA SHALL SUBMIT A FINANCIAL PLAN MODIFICATION TO
EFFECT SUCH ADJUSTMENTS IN REVENUE ESTIMATES AND REDUCTIONS IN TOTAL
EXPENDITURES AS MAY BE NECESSARY TO CONFORM TO SUCH REVISED REVENUE
ESTIMATES OR AGGREGATE EXPENDITURE LIMITATIONS.
(F) IF, WITHIN A TIME PERIOD SPECIFIED BY THE BOARD, THE MTA FAILS TO
MAKE SUCH MODIFICATIONS AFTER REDUCTIONS IN REVENUE ESTIMATES, OR TO
PROVIDE A MODIFIED PLAN IN DETAIL AND WITHIN SUCH TIME PERIOD REQUIRED
BY THE BOARD, THE BOARD SHALL ADOPT A RESOLUTION SO FINDING AND SHALL,
AS SOON AS PRACTICABLE THEREAFTER, FORMULATE AND ADOPT A FINANCIAL PLAN
TO BE EFFECTIVE UNTIL THE BOARD APPROVES A FINANCIAL PLAN SUBMITTED BY
THE MTA. ALL BUDGETS AND OPERATIONS OF THE MTA OR A COVERED SUBSIDIARY
SHALL BE IN CONFORMANCE AND COMPLIANCE WITH THE FINANCIAL PLAN THEN IN
EFFECT.
(G) THE MTA SHALL AMEND ITS BUDGET OR SHALL SUBMIT A FINANCIAL PLAN
MODIFICATION FOR THE APPROVAL OF THE BOARD SUCH THAT THE MTA'S BUDGET
AND THE APPROVED FINANCIAL PLAN SHALL BE CONSISTENT. IN NO EVENT SHALL
THE MTA OPERATE UNDER A BUDGET THAT IS INCONSISTENT WITH AN APPROVED
FINANCIAL PLAN.
3. THE FINANCIAL PLAN SHALL BE IN SUCH FORM AND SHALL CONTAIN SUCH
INFORMATION FOR EACH YEAR DURING WHICH THE FINANCIAL PLAN IS IN EFFECT
AS THE BOARD MAY SPECIFY, AND SHALL INCLUDE THE MTA AND ALL THE COVERED
SUBSIDIARIES, AND SHALL, IN SUCH DETAIL AS THE BOARD FROM TIME TO TIME
MAY PRESCRIBE, INCLUDE (A) STATEMENTS OF ALL ESTIMATED REVENUES AND OF
ALL EXPENDITURES AND CASH FLOW PROJECTIONS OF THE MTA AND EACH COVERED
SUBSIDIARY, AND (B) AN ACCOUNTING OF THE EXPENDITURE OF EFFICIENCY
INCENTIVE GRANTS AVAILABLE TO THE MTA FOR EACH YEAR OF THE PLAN.
4. THE FINANCIAL PLAN SHALL INCLUDE ANY INFORMATION WHICH THE BOARD
MAY REQUEST TO SATISFY ITSELF THAT (A) PROJECTED EMPLOYMENT LEVELS,
COLLECTIVE BARGAINING AGREEMENTS AND OTHER ACTIONS RELATING TO EMPLOYEE
COSTS, CAPITAL CONSTRUCTION AND SUCH OTHER MATTERS AS THE BOARD MAY
SPECIFY ARE CONSISTENT WITH THE PROVISIONS MADE FOR SUCH OBLIGATIONS IN
THE FINANCIAL PLAN, (B) THE MTA AND THE COVERED SUBSIDIARIES ARE TAKING
WHATEVER ACTION IS NECESSARY WITH RESPECT TO PROGRAMS MANDATED BY STATE
AND FEDERAL LAW TO ENSURE THAT EXPENDITURES FOR SUCH PROGRAMS ARE LIMIT-
ED TO AND COVERED BY THE EXPENDITURES STATED IN THE FINANCIAL PLAN, (C)
ADEQUATE RESERVES ARE PROVIDED TO MAINTAIN ESSENTIAL PROGRAMS IN THE
EVENT REVENUES HAVE BEEN OVERESTIMATED OR EXPENDITURES UNDERESTIMATED
FOR ANY PERIOD, AND (D) THE MTA HAS ADEQUATE CASH RESOURCES TO MEET ITS
OBLIGATIONS. IN ADDITION, EXCEPT TO THE EXTENT SUCH REPORTING REQUIRE-
MENTS MAY BE MODIFIED PURSUANT TO AGREEMENT BETWEEN THE BOARD AND THE
MTA, FOR EACH FISCAL YEAR, OR WHILE BONDS, NOTES OR OTHER OBLIGATIONS
ISSUED BY THE MTA ARE OUTSTANDING, THE MTA SHALL PREPARE A QUARTERLY
REPORT OF SUMMARIZED BUDGET DATA DEPICTING OVERALL TRENDS, BY MAJOR
CATEGORY WITHIN FUNDS, OF ACTUAL REVENUES AND BUDGET EXPENDITURES FOR
THE ENTIRE BUDGET RATHER THAN INDIVIDUAL LINE ITEMS, AS WELL AS UPDATED
QUARTERLY CASH FLOW PROJECTIONS OF RECEIPTS AND DISBURSEMENTS. SUCH
REPORTS SHALL COMPARE REVENUE ESTIMATES AND APPROPRIATIONS AS SET FORTH
A. 11265 11
IN SUCH BUDGET AND IN THE QUARTERLY REVENUE AND EXPENDITURE PROJECTIONS
SUBMITTED THEREWITH, WITH THE ACTUAL REVENUES AND EXPENDITURES MADE TO
DATE. SUCH REPORTS SHALL ALSO COMPARE ACTUAL RECEIPTS AND DISBURSEMENTS
WITH THE ESTIMATES CONTAINED IN THE CASH FLOW PROJECTIONS, TOGETHER WITH
VARIANCES AND THEIR EXPLANATION. ALL QUARTERLY REPORTS SHALL BE ACCOMPA-
NIED BY RECOMMENDATIONS FROM THE MTA TO THE BOARD SETTING FORTH ANY
REMEDIAL ACTION NECESSARY TO RESOLVE ANY UNFAVORABLE BUDGET VARIANCE
INCLUDING THE OVERESTIMATION OF REVENUES AND THE UNDERESTIMATION OF
APPROPRIATIONS. THESE REPORTS SHALL BE COMPLETED WITHIN THIRTY DAYS
AFTER THE END OF EACH QUARTER AND SHALL BE SUBMITTED TO THE INSPECTOR
GENERAL, THE BOARD, THE DIRECTOR OF THE BUDGET AND THE STATE COMP-
TROLLER.
5. FOR EACH FINANCIAL PLAN AND FINANCIAL PLAN MODIFICATION TO BE
PREPARED AND SUBMITTED BY THE MTA TO THE BOARD PURSUANT TO THE
PROVISIONS OF THIS SECTION, THE COVERED SUBSIDIARIES SHALL SUBMIT TO THE
MTA SUCH INFORMATION WITH RESPECT TO THEIR PROJECTED EXPENDITURES,
REVENUES AND CASH FLOWS FOR EACH OF THE YEARS COVERED BY SUCH FINANCIAL
PLAN OR MODIFICATION AS THE MTA SHALL DETERMINE.
S 1257. ACTIONS AGAINST THE BOARD. 1. EXCEPT IN AN ACTION FOR WRONGFUL
DEATH, NO ACTION OR PROCEEDING SHALL BE PROSECUTED OR MAINTAINED AGAINST
THE BOARD FOR PERSONAL INJURY OR DAMAGE TO REAL OR PERSONAL PROPERTY
ALLEGED TO HAVE BEEN SUSTAINED BY REASON OF THE NEGLIGENCE OR WRONGFUL
ACT OF THE BOARD OR OF ANY MEMBER, OFFICER, AGENT OR EMPLOYEE THEREOF,
UNLESS (A) IT SHALL APPEAR BY AND AS AN ALLEGATION IN THE COMPLAINT OR
MOVING PAPERS THAT A NOTICE OF CLAIM SHALL HAVE BEEN MADE AND SERVED
UPON THE BOARD, WITHIN THE TIME LIMIT PRESCRIBED BY AND IN COMPLIANCE
WITH SECTION FIFTY-E OF THE GENERAL MUNICIPAL LAW, (B) IT SHALL APPEAR
BY AND AS AN ALLEGATION IN THE COMPLAINT OR MOVING PAPERS THAT AT LEAST
THIRTY DAYS HAVE ELAPSED SINCE THE SERVICE OF SUCH NOTICE AND THAT
ADJUSTMENT OR PAYMENT THEREOF HAS BEEN NEGLECTED OR REFUSED, AND (C) THE
ACTION OR PROCEEDING SHALL BE COMMENCED WITHIN ONE YEAR AFTER THE
HAPPENING OF THE EVENT UPON WHICH THE CLAIM IS BASED. AN ACTION AGAINST
THE BOARD FOR WRONGFUL DEATH SHALL BE COMMENCED IN ACCORDANCE WITH THE
NOTICE OF CLAIM AND TIME LIMITATION PROVISIONS OF TITLE ELEVEN OF ARTI-
CLE NINE OF THIS CHAPTER.
2. WHEREVER A NOTICE OF CLAIM IS SERVED UPON THE BOARD, IT SHALL HAVE
THE RIGHT TO DEMAND AN EXAMINATION OF THE CLAIMANT RELATIVE TO THE
OCCURRENCE AND EXTENT OF THE INJURIES OR DAMAGES FOR WHICH CLAIM IS
MADE, IN ACCORDANCE WITH THE PROVISIONS OF SECTION FIFTY-H OF THE GENER-
AL MUNICIPAL LAW.
3. THE BOARD MAY REQUIRE ANY PERSON PRESENTING FOR SETTLEMENT AN
ACCOUNT OR CLAIM FOR ANY CAUSE WHATEVER AGAINST THE BOARD TO BE SWORN
BEFORE A MEMBER, COUNSEL OR AN ATTORNEY, OFFICER OR EMPLOYEE THEREOF
DESIGNATED FOR SUCH PURPOSE, CONCERNING SUCH ACCOUNT OR CLAIM AND WHEN
SO SWORN, TO ANSWER ORALLY AS TO ANY FACTS RELATIVE TO SUCH ACCOUNT OR
CLAIM. THE BOARD SHALL HAVE POWER TO SETTLE OR ADJUST ANY CLAIMS IN
FAVOR OF OR AGAINST THE BOARD.
4. THE RATE OF INTEREST TO BE PAID BY THE BOARD UPON ANY JUDGMENT FOR
WHICH IT IS LIABLE, OTHER THAN A JUDGMENT ON BONDS, NOTES OR OTHER OBLI-
GATIONS, SHALL NOT EXCEED THE MAXIMUM RATE OF INTEREST ON JUDGMENTS AND
ACCRUED CLAIMS AGAINST MUNICIPAL AUTHORITIES AS PROVIDED IN THE GENERAL
MUNICIPAL LAW. INTEREST ON PAYMENTS OF PRINCIPAL OR INTEREST ON ANY
BONDS, NOTES OR OTHER OBLIGATIONS IN DEFAULT SHALL ACCRUE AT THE RATE
SPECIFIED IN THE GENERAL MUNICIPAL LAW UNTIL PAID OR OTHERWISE SATIS-
FIED.
A. 11265 12
5. THE VENUE OF EVERY ACTION, SUIT OR SPECIAL PROCEEDING BROUGHT
AGAINST THE BOARD SHALL BE THE SUPREME COURT IN A COUNTY IN THE MTA
REGION.
6. NEITHER ANY MEMBER OF THE BOARD NOR ANY OFFICER, EMPLOYEE OR AGENT
OF THE BOARD, WHILE ACTING WITHIN THE SCOPE OF HIS OR HER AUTHORITY,
SHALL BE SUBJECT TO ANY LIABILITY RESULTING FROM EXERCISING OR CARRYING
OUT ANY OF THE POWERS GIVEN IN THIS TITLE.
7. (A) THE STATE SHALL HOLD HARMLESS AND INDEMNIFY MEMBERS, OFFICERS
AND EMPLOYEES OF THE BOARD, ALL OF WHOM SHALL BE DEEMED OFFICERS AND
EMPLOYEES OF THE STATE FOR PURPOSES OF SECTION SEVENTEEN OF THE PUBLIC
OFFICERS LAW, AGAINST ANY CLAIM, DEMAND, SUIT, OR JUDGMENT ARISING BY
REASON OF ANY ACT OR OMISSION TO ACT BY SUCH MEMBER, OFFICER OR EMPLOYEE
OCCURRING IN THE DISCHARGE OF HIS OR HER DUTIES AND WITHIN THE SCOPE OF
HIS OR HER SERVICE ON BEHALF OF THE BOARD INCLUDING ANY CLAIM, DEMAND,
SUIT OR JUDGMENT BASED ON ALLEGATIONS THAT FINANCIAL LOSS WAS SUSTAINED
BY ANY PERSON IN CONNECTION WITH THE ACQUISITION, DISPOSITION OR HOLDING
OF SECURITIES OR OTHER OBLIGATIONS. IN THE EVENT OF ANY SUCH CLAIM,
DEMAND, SUIT OR JUDGMENT, A MEMBER, OFFICER OR EMPLOYEE OF THE BOARD
SHALL BE HELD HARMLESS AND INDEMNIFIED, NOTWITHSTANDING THE LIMITATIONS
OF SUBDIVISION ONE OF SECTION SEVENTEEN OF THE PUBLIC OFFICERS LAW,
UNLESS SUCH INDIVIDUAL IS FOUND BY A FINAL JUDICIAL DETERMINATION NOT TO
HAVE ACTED, IN GOOD FAITH, FOR A PURPOSE WHICH HE OR SHE REASONABLY
BELIEVED TO BE IN THE BEST INTEREST OF THE BOARD OR NOT TO HAVE HAD
REASONABLE CAUSE TO BELIEVE THAT HIS OR HER CONDUCT WAS LAWFUL.
(B) IN CONNECTION WITH ANY SUCH CLAIM, DEMAND, SUIT, OR JUDGMENT, ANY
MEMBER, OFFICER OR EMPLOYEE OF THE BOARD SHALL BE ENTITLED TO REPRESEN-
TATION BY PRIVATE COUNSEL OF HIS OR HER CHOICE IN ANY CIVIL JUDICIAL
PROCEEDING WHENEVER THE ATTORNEY GENERAL DETERMINES BASED UPON HIS OR
HER INVESTIGATION AND REVIEW OF THE FACTS AND CIRCUMSTANCES OF THE CASE
THAT REPRESENTATION BY THE ATTORNEY GENERAL WOULD BE INAPPROPRIATE. THE
ATTORNEY GENERAL SHALL NOTIFY THE INDIVIDUAL IN WRITING OF SUCH DETERMI-
NATION THAT THE INDIVIDUAL IS ENTITLED TO BE REPRESENTED BY PRIVATE
COUNSEL. THE ATTORNEY GENERAL MAY REQUIRE, AS A CONDITION TO PAYMENT OF
THE FEES AND EXPENSES OF SUCH REPRESENTATIVE, THAT APPROPRIATE GROUPS OF
SUCH INDIVIDUALS BE REPRESENTED BY THE SAME COUNSEL. IF THE INDIVIDUAL
OR GROUPS OF INDIVIDUALS IS ENTITLED TO REPRESENTATION BY PRIVATE COUN-
SEL UNDER THE PROVISIONS OF THIS SECTION, THE ATTORNEY GENERAL SHALL SO
CERTIFY TO THE STATE COMPTROLLER. REASONABLE ATTORNEYS' FEES AND LITI-
GATION EXPENSES SHALL BE PAID BY THE STATE TO SUCH PRIVATE COUNSEL FROM
TIME TO TIME DURING THE PENDENCY OF THE CIVIL ACTION OR PROCEEDING,
SUBJECT TO CERTIFICATION THAT THE INDIVIDUAL IS ENTITLED TO REPRESEN-
TATION UNDER THE TERMS AND CONDITIONS OF THIS SECTION BY THE BOARD, UPON
THE AUDIT AND WARRANT OF THE STATE COMPTROLLER. THE PROVISIONS OF THIS
SUBDIVISION SHALL BE IN ADDITION TO AND SHALL NOT SUPPLANT ANY INDEMNI-
FICATION OR OTHER BENEFITS HERETOFORE OR HEREAFTER CONFERRED UPON
MEMBERS, OFFICERS, OR EMPLOYEES OF AND REPRESENTATIVES TO THE BOARD BY
SECTION SEVENTEEN OF THE PUBLIC OFFICERS LAW, BY ACTION OF THE BOARD OR
OTHERWISE. THE PROVISIONS OF THIS SUBDIVISION SHALL INURE ONLY TO
MEMBERS, OFFICERS AND EMPLOYEES OF THE BOARD, SHALL NOT ENLARGE OR
DIMINISH THE RIGHTS OF ANY OTHER PARTY, AND SHALL NOT IMPAIR, LIMIT OR
MODIFY THE RIGHTS AND OBLIGATIONS OF ANY INSURER UNDER ANY POLICY OF
INSURANCE.
S 1258. AUDITS. 1. ANY ACCOUNTS OF THE BOARD SHALL BE SUBJECT TO THE
AUDIT OF THE STATE COMPTROLLER. IN ADDITION, THE BOARD SHALL BE SUBJECT
TO AN ANNUAL FINANCIAL AUDIT PERFORMED BY AN INDEPENDENT CERTIFIED
ACCOUNTANT SELECTED BY THE BOARD. SUCH AUDIT REPORT SHALL BE SUBMITTED
A. 11265 13
TO THE BOARD, THE INSPECTOR GENERAL, THE GOVERNOR, THE STATE COMP-
TROLLER, THE CHAIR AND RANKING MINORITY MEMBER OF THE SENATE FINANCE
COMMITTEE AND THE CHAIR AND RANKING MINORITY MEMBER OF THE ASSEMBLY WAYS
AND MEANS COMMITTEE.
2. FOR EACH FISCAL YEAR, AND WITHIN ONE HUNDRED TWENTY DAYS AFTER THE
CLOSE OF THE MTA'S FISCAL YEAR, THE MTA SHALL SUBMIT ITS AUDITED FINAN-
CIAL STATEMENTS TO THE BOARD.
S 1259. EFFECT OF INCONSISTENT PROVISIONS. INSOFAR AS THE PROVISIONS
OF THIS TITLE ARE INCONSISTENT WITH THE PROVISIONS OF ANY OTHER ACT,
GENERAL OR SPECIAL LAW (INCLUDING ARTICLE NINE OF THIS CHAPTER), OR OF
ANY CHARTER, LOCAL LAW, ORDINANCE OR RESOLUTION OF ANY MUNICIPALITY, THE
PROVISIONS OF THIS TITLE SHALL BE CONTROLLING. NOTHING CONTAINED IN THIS
SECTION SHALL BE HELD TO SUPPLEMENT OR OTHERWISE EXPAND THE POWERS OR
DUTIES OF THE BOARD OTHERWISE SET FORTH IN THIS TITLE.
S 1259-A. SEPARABILITY; CONSTRUCTION. IF ANY CLAUSE, SENTENCE, PARA-
GRAPH, SECTION, OR PART OF THIS TITLE 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, SECTION, OR PART THEREOF
INVOLVED IN THE CONTROVERSY IN WHICH SUCH JUDGMENT SHALL HAVE BEEN
RENDERED. THE PROVISIONS OF THIS TITLE SHALL BE LIBERALLY CONSTRUED TO
ASSIST THE EFFECTUATION OF THE PUBLIC PURPOSES FURTHERED HEREBY.
S 4. This act shall take effect on the sixtieth day after it shall
have become a law; provided, however, that the governor is hereby
authorized and directed to appoint all seven members of the metropolitan
transportation authority fiscal oversight control board on or before
such effective date.
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