Senate Bill S6422A

                                 BILL NUMBER:  S6422

 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 OR 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 Metropolitan 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 specific 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 intention
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 residents 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 constitutionally prevents any amendments to
their bond and toll guidelines.

This bill removes the constitutional conflict by prohibiting further
use of the discount language and minimum toll requirement.

 PRIOR LEGISLATIVE HISTORY :
New bill.

 FISCAL IMPLICATIONS :
To be determined.

 EFFECTIVE DATE :
Immediately.