S T A T E O F N E W Y O R K
________________________________________________________________________
6267
2009-2010 Regular Sessions
I N S E N A T E
November 4, 2009
___________
Introduced by Sens. SALAND, BONACIC, LARKIN, LEIBELL -- read twice and
ordered printed, and when printed to be committed to the Committee on
Rules
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.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14970-02-9
S. 6267 2
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
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.