S T A T E   O F   N E W   Y O R K
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                                 8227--A

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              June 12, 2015
                               ___________

Introduced by M. of A. BRENNAN, WRIGHT, NOLAN, RODRIGUEZ, SIMON, HEVESI,
  KIM,  QUART,  KAVANAGH,  McDONOUGH  --  read  once and referred to the
  Committee on Ways and Means -- recommitted to the  Committee  on  Ways
  and  Means  in  accordance  with  Assembly Rule 3, sec. 2 -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN ACT to amend the public authorities law, the state  finance  law  and
  the  tax  law,  in  relation  to the funding of the multi-year capital
  program of the metropolitan transportation authority;  and  making  an
  appropriation therefor

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Legislative findings and declaration  of  purpose.  1.  The
metropolitan  transportation authority (MTA) is essential to meeting the
basic mobility and economic needs of the citizens of the MTA  region  in
the  state.  The  contributions of such mass transportation services are
also essential to addressing fundamental environmental policy and social
needs of the state's residents.
  2. The MTA must continue  to  function  as  the  primary  provider  of
reasonably priced, safe and reliable mass transportation services in the
MTA region. It is of vital importance to the ability of the metropolitan
transportation authority to meet the continued need for mobility and for
the  economic  health of the MTA and the state that additional dedicated
sources of reliable funding are made promptly available.
  3. It is the intent of the legislature to continue to fund the  multi-
year capital program of the MTA to ensure the continuation of reasonable
fares  and  provide  for a safe, reliable, efficient mass transportation
system.
  S 2. Subdivision (a) of section 1225-g of the public authorities  law,
as  added  by  chapter  576  of  the laws of 1972, is amended to read as
follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11634-03-6
              

A. 8227--A                          2

  (a) To enable the fund to realize its public and governmental purpose,
the fund may enter into agreements with the transportation authority, to
which the transit authority may be a party, pursuant to which the trans-
portation authority may plan, design, construct, acquire, extend, recon-
struct, rehabilitate, modernize, or otherwise improve any transit facil-
ity,  and  the  fund  may  lease  any  such  transit  facility  from the
transportation authority. The fund may apply the resources of  the  fund
to  the  payment of rentals and other payments required from the fund by
any such lease or other agreement and may pledge such resources as secu-
rity for such payments to the transportation authority with  respect  to
such  leases or other agreements.  THE FUND SHALL ENTER INTO SUCH LEASES
OR OTHER AGREEMENTS WITH THE TRANSPORTATION AUTHORITY PROVIDING FOR  THE
PAYMENT  OF RENTALS AND OTHER PAYMENTS SUFFICIENT TO ALLOW THE TRANSPOR-
TATION AUTHORITY TO FINANCE THE COSTS OF PLANNING AND  DESIGN,  ACQUISI-
TION,  CONSTRUCTION,  RECONSTRUCTION, REPLACEMENT, IMPROVEMENT, RECONDI-
TIONING, REHABILITATION AND PRESERVATION, INCLUDING THE  ACQUISITION  OF
REAL  PROPERTY AND INTERESTS THEREIN REQUIRED OR EXPECTED TO BE REQUIRED
IN CONNECTION THEREWITH, OF  TRANSIT  FACILITIES,  NOT  TO  EXCEED  FOUR
BILLION  FIVE  HUNDRED  MILLION  DOLLARS, WHICH ARE CAPITAL ELEMENTS SET
FORTH IN THE TWO THOUSAND FIFTEEN--TWO THOUSAND NINETEEN CAPITAL PROGRAM
PLANS APPROVED BY  THE  METROPOLITAN  TRANSPORTATION  AUTHORITY  CAPITAL
PROGRAM REVIEW BOARD.
  S  3.  Subdivision 1 of section 2799-gg of the public authorities law,
as amended by chapter 182 of the laws of 2009, is  amended  to  read  as
follows:
  1.  The  authority  shall have the power and is hereby authorized from
time to time to issue bonds, in conformity with applicable provisions of
the uniform commercial code, in such principal amounts as it may  deter-
mine  to  be  necessary pursuant to section twenty-seven hundred ninety-
nine-ff of this title to pay  the  cost  of  any  project  and  to  fund
reserves   to  secure  such  bonds,  including  incidental  expenses  in
connection therewith, AND TO PAY THE COST  OF  ANY  PROJECT  OR  ELEMENT
CONTAINED  IN  A  BUDGETED AND APPROVED CAPITAL PLAN OF THE METROPOLITAN
TRANSPORTATION AUTHORITY.
  The aggregate principal amount of such bonds,  notes  or  other  obli-
gations  outstanding  shall  not  exceed [thirteen billion, five hundred
million   dollars   ($13,500,000,000)]    EIGHTEEN    BILLION    DOLLARS
($18,000,000,000),  excluding  bonds,  notes or other obligations issued
pursuant to sections twenty-seven hundred ninety-nine-ss and twenty-sev-
en hundred ninety-nine-tt of this title; provided,  however,  that  upon
any  refunding  or  repayment  of  bonds (which term shall not, for this
purpose, include bond anticipation notes), the total aggregate principal
amount of outstanding bonds, notes or other obligations may  be  greater
than  [thirteen billion, five hundred million dollars ($13,500,000,000)]
EIGHTEEN BILLION DOLLARS ($18,000,000,000)  only  if  the  refunding  or
repayment  bonds,  notes  or other obligations were issued in accordance
with the provisions of subparagraph (a) of subdivision two of  paragraph
b  of  section  90.10  of the local finance law, as amended from time to
time. Notwithstanding the foregoing, bonds, notes or  other  obligations
issued by the authority may be outstanding in an amount greater than the
amount  permitted  by  the  preceding sentence, provided that such addi-
tional amount at issuance, together  with  the  amount  of  indebtedness
contracted  by  the  city  of  New  York,  shall  not  exceed  the limit
prescribed by section 104.00 of the local  finance  law.  The  authority
shall  have  the  power  from  time  to  time to refund any bonds of the
authority by the issuance of new bonds whether the bonds to be  refunded

A. 8227--A                          3

have  or have not matured, and may issue bonds partly to refund bonds of
the authority then outstanding and partly to pay the cost of any project
pursuant to section twenty-seven hundred ninety-nine-ff of  this  title.
Bonds  issued by the authority shall be payable solely out of particular
revenues or other moneys of the authority as may be  designated  in  the
proceedings  of  the authority under which the bonds shall be authorized
to be issued, subject to any agreements entered into between the author-
ity and the city, and subject to any  agreements  with  the  holders  of
outstanding bonds pledging any particular revenues or moneys.
  S 4. Subdivision 3 of section 92-ff of the state finance law, as added
by  section 1 of part G of chapter 25 of the laws of 2009, is amended to
read as follows:
  3. Such fund shall consist of all moneys collected [therefore]  THERE-
FOR  or  credited or transferred thereto from any other fund, account or
source, including, without limitation, the  revenues  derived  from  the
metropolitan  commuter  transportation  mobility  tax imposed by article
twenty-three of the tax law; REVENUES DERIVED FROM SECTION  SIX  HUNDRED
NINETY-EIGHT-A OF THE TAX LAW; revenues derived from the special supple-
mental  tax  on  passenger car rentals imposed by section eleven hundred
sixty-six-a of the tax law; revenues  derived  from  the  transportation
surcharge  imposed  by article twenty-nine-A of the tax law; the supple-
mental registration fees imposed by article seventeen-C of  the  vehicle
and  traffic law; and the supplemental metropolitan commuter transporta-
tion district license fees imposed by section five hundred three of  the
vehicle  and  traffic  law.  Any interest received by the comptroller on
moneys on deposit in the metropolitan transportation authority financial
assistance fund shall be retained in and become a part of such fund.
  S 5. Section 698 of the tax law, as amended by chapter 477 of the laws
of 1998, is amended to read as follows:
  S 698.  Deposit and disposition of revenue.  [All] EXCEPT AS  PROVIDED
IN  SECTION SIX HUNDRED NINETY-EIGHT-A OF THIS PART, ALL taxes, interest
and penalties collected or received by the commissioner under this arti-
cle shall be deposited and disposed of pursuant  to  the  provisions  of
section  one hundred seventy-one-a of this chapter.  Notwithstanding the
foregoing, unemployment insurance contributions and payments and  aggre-
gate  withholding  taxes  collected or received by the commissioner from
employers in a single remittance  accompanying  the  quarterly  combined
withholding,  wage reporting and unemployment insurance returns required
by paragraph four of subsection (a) of section six hundred  seventy-four
of  this article shall, if necessary, be deposited into an account to be
maintained jointly by the department and the department of labor at such
responsible bank, banking house or trust company as may be designated by
the comptroller.  The comptroller shall require adequate  security  from
such  depository. Such departments shall determine the proper allocation
of the monies in such account as between unemployment insurance contrib-
utions and payments and aggregate withholding taxes. Unemployment insur-
ance contributions and payments shall then be deposited and disposed  of
pursuant  to  the  provisions  of  title four of article eighteen of the
labor law, and  aggregate  withholding  taxes  shall  be  deposited  and
disposed  of pursuant to the provisions of sections one hundred seventy-
one-a, thirteen hundred thirteen and thirteen  hundred  thirty-three  of
this chapter, as applicable.
  S  6.  The tax law is amended by adding a new section 698-a to read as
follows:
  S 698-A. DEPOSIT AND DISPOSITION OF CERTAIN REVENUE.   NOTWITHSTANDING
THE  PROVISIONS  OF SECTION SIX HUNDRED NINETY-EIGHT OF THIS PART TO THE

A. 8227--A                          4

CONTRARY, FOR TAXABLE  YEAR  TWO  THOUSAND  SIXTEEN,  THREE-TENTHS  (.3)
PERCENT;  FOR  TAXABLE  YEAR  TWO  THOUSAND  SEVENTEEN,  SIX-TENTHS (.6)
PERCENT; AND FOR TAXABLE YEAR TWO THOUSAND  EIGHTEEN,  NINE-TENTHS  (.9)
PERCENT,  OF  THE TAXES, INTEREST AND PENALTIES COLLECTED OR RECEIVED BY
THE COMMISSIONER UNDER THIS  ARTICLE  FROM  TAXPAYERS  RESIDING  IN  THE
METROPOLITAN  COMMUTER  TRANSPORTATION  DISTRICT ESTABLISHED PURSUANT TO
SECTION TWELVE HUNDRED SIXTY-TWO OF THE PUBLIC AUTHORITIES LAW SHALL  BE
DEPOSITED AND DISPOSED OF PURSUANT TO SECTION EIGHT HUNDRED FIVE OF THIS
CHAPTER.  FOR  TAXABLE YEARS BEGINNING IN TWO THOUSAND NINETEEN, ONE AND
TWO-TENTHS (1.2) PERCENT OF THE TAXES, INTEREST AND PENALTIES  COLLECTED
OR RECEIVED BY THE COMMISSIONER UNDER THIS ARTICLE FROM TAXPAYERS RESID-
ING  IN  THE  METROPOLITAN  COMMUTER TRANSPORTATION DISTRICT ESTABLISHED
PURSUANT TO SECTION TWELVE HUNDRED SIXTY-TWO OF THE  PUBLIC  AUTHORITIES
LAW SHALL BE DEPOSITED AND DISPOSED OF PURSUANT TO SECTION EIGHT HUNDRED
FIVE OF THIS CHAPTER.
  S 7. Subsection (a) of section 805 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) The taxes, interest, and penalties imposed by this article AND  BY
SECTION  SIX  HUNDRED  NINETY-EIGHT-A  OF  THIS CHAPTER and collected or
received by the commissioner shall be deposited daily with such  respon-
sible  banks, banking houses or trust companies, as may be designated by
the comptroller, to the credit of  the  comptroller  in  trust  for  the
metropolitan  transportation authority. An account may be established in
one or more of such depositories. Such deposits will  be  kept  separate
and apart from all other money in the possession of the comptroller. The
comptroller  shall require adequate security from all such depositories.
Of the total revenue collected or received under this article, the comp-
troller shall retain such amount as the commissioner may determine to be
necessary for refunds under this article. The commissioner is authorized
and directed to deduct from the amounts it receives under this  article,
before  deposit into the trust accounts designated by the comptroller, a
reasonable amount necessary to effectuate refunds of  appropriations  of
the  department  to  reimburse  the department for the costs incurred to
administer, collect and distribute the taxes imposed by this article.
  S 8.  The sum of one billion  dollars  ($1,000,000,000),  or  so  much
thereof as may be  necessary, is hereby appropriated to the metropolitan
transportation  authority  from  any moneys in the state treasury in the
capital projects fund - dedicated infrastructure investment fund to  the
credit of the infrastructure investment account - special infrastructure
purpose,  not  otherwise appropriated, for the costs of capital projects
for the planning and design, acquisition, construction,  reconstruction,
replacement,  improvement,  reconditioning, rehabilitation and preserva-
tion, including the acquisition of real property and  interests  therein
required  or  expected  to be required in connection therewith, of urban
and commuter passenger, freight rail, omnibus, mass  transit  and  rapid
transit  systems, facilities and equipment, including acquisition, which
are capital elements set forth in the 2015-2019  capital  program  plans
approved  by  the  metropolitan transportation authority capital program
review board. Such sum shall be payable on the audit and warrant of  the
state  comptroller on vouchers certified or approved by the metropolitan
transportation authority, or its duly designated representative  in  the
manner provided by law. No expenditure shall be made from this appropri-
ation  until  a  certificate of approval of availability shall have been
issued by the director of the budget and  filed  with  the  state  comp-
troller  and a copy filed with the chair of the senate finance committee

A. 8227--A                          5

and the chair of the assembly ways and means committee. Such certificate
may be amended from time to time by the director of  the  budget  and  a
copy  of  each such amendment shall be filed with the state comptroller,
the  chair  the  senate  finance committee and the chair of the assembly
ways and means committee.
  S 9. This act shall take effect April 1, 2017.