S T A T E O F N E W Y O R K
________________________________________________________________________
4825--B
2011-2012 Regular Sessions
I N S E N A T E
April 27, 2011
___________
Introduced by Sens. SALAND, BALL, BONACIC, CARLUCCI, LARKIN -- read
twice and ordered printed, and when printed to be committed to the
Committee on Transportation -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee --
recommitted to the Committee on Transportation in accordance with
Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
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 recog-
nizes 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.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02327-06-2
S. 4825--B 2
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
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; requiring
transit riders within these counties to pay increased fares of thirteen
percent; and requiring the metropolitan transportation authority to
renegotiate or terminate 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
THIRTEEN 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 YEARS TWO THOUSAND TEN AND TWO THOUSAND ELEVEN; 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; OR
(C) NOTWITHSTANDING ANY PROVISION OF THIS SECTION OR ANY OTHER LAW TO
THE CONTRARY, TERMINATE THE AMENDED AND RESTATED SERVICE AGREEMENT,
DATED AS OF JUNE 21, 1985, AND ANY AMENDMENTS AND/OR MODIFICATIONS THER-
ETO, INCLUDING BUT NOT LIMITED TO ANY AND ALL ARBITRATION OPINIONS AND
AWARDS, PURSUANT TO ARTICLE TWELVE OF SAID AMENDED AND RESTATED SERVICE
AGREEMENT.
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
S. 4825--B 3
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 THIRTEEN.
S 4. This act shall take effect immediately.
