S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  9479

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 6, 2010
                               ___________

Introduced  by  M.  of A. GUNTHER, JAFFEE, CAHILL, ZEBROWSKI, SKARTADOS,
  GALEF, RABBITT, CALHOUN, MOLINARO -- read once  and  referred  to  the
  Committee on Corporations, Authorities and Commissions

AN  ACT to amend the public authorities law and the tax 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 and intent. The legislature recognizes
that transit riders within the counties of Dutchess, Orange, Putnam  and
Rockland  comprise  only one percent of the combined population of these
counties; only ten percent of all Metro-North Commuter  Railroad  riders
and only two tenths of one percent of New York city subway riders.
  The  legislature  further recognizes that under chapter 25 of the laws
of 2009, these four counties have been mandated to contribute more  than
ninety million dollars in added revenues to the metropolitan transporta-
tion  authority  to  supplement  the  two  hundred  seventy-five million
dollars in county payments already being made  to  the  authority  every
year.
  The  legislature acknowledges that this level of payment totaling over
three hundred sixty-five million dollars annually or close to thirty-two
thousand dollars per transit rider reflects an unfair  burden  on  resi-
dents  of these counties in which the overwhelming majority of residents
receive no transit services from the metropolitan transportation author-
ity at all.
  The legislature further recognizes that twenty-six percent  of  Metro-
North  Commuter  Railroad  transit  riders are Connecticut residents who
were not asked to contribute to the metropolitan transportation authori-
ty operating deficit bailout formulated under chapter 25 of the laws  of
2009.
  It  is  not  the  intent of the legislature within this legislation to
negatively impact the level  of  revenue  flowing  to  the  metropolitan
transportation  authority.  It  is  however  the legislature's intent to

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                      [ ] is old law to be omitted.
                                                           LBD14970-02-9

A. 9479                             2

ensure fairness to the residents of the counties  of  Dutchess,  Orange,
Putnam and Rockland by eliminating the metropolitan commuter transporta-
tion  tax imposed upon the residents of these four counties; and requir-
ing  the  metropolitan transportation authority to renegotiate the joint
service operating agreement between  the  authority  and  the  state  of
Connecticut to reflect equity based on utilization.
  S 2. 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 TEN
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.
  S  3.  Subdivision  (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,  PROVIDED  HOWEVER,  THAT  THE
COUNTIES OF DUTCHESS, ORANGE, PUTNAM AND ROCKLAND SHALL BE EXCLUDED FROM
THIS  DISTRICT  FOR THE PURPOSES OF THIS ARTICLE AND ANY REVENUES PREVI-
OUSLY COLLECTED FROM WITHIN THESE COUNTIES SHALL BE REIMBURSED  TO  EACH
PAYOR BY MARCH THIRTY-FIRST, TWO THOUSAND TEN.
  S 4. This act shall take effect immediately.