S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4122
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 9, 2023
                                ___________
 
 Introduced  by M. of A. MAMDANI -- Multi-Sponsored by -- M. of A. ANDER-
   SON, ARDILA, CARROLL, CUNNINGHAM,  DE LOS SANTOS,  DINOWITZ,  EPSTEIN,
   FORREST,   GALLAGHER,   GIBBS,   GONZALEZ-ROJAS,  JACKSON,  KIM,  LEE,
   MITAYNES, RAGA, SEAWRIGHT, SEPTIMO, SHRESTHA, SIMONE, TAPIA, WALKER --
   read once and referred to the Committee on  Corporations,  Authorities
   and Commissions
 
 AN  ACT  in  relation  to  spending  by  the Metropolitan Transportation
   Authority; and requiring the Metropolitan Transportation Authority  to
   freeze  fares,  increase  service  frequency and establish a permanent
   fare-free bus program
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "MTA Freeze Fares, Fund Frequency and Free  Bus  Act,"  or  the  MTA
 "Formula 3 Act".
   § 2. Legislative findings and intent. The legislature hereby finds and
 declares  the  importance  of  the  New York Metropolitan Transportation
 Authority (MTA) and affirms the duty of the legislature to  ensure  that
 the  Authority  operates  effectively.  The  MTA  provides  an essential
 service: transporting millions of New Yorkers on billions of trips  each
 year  to and from their places of work, worship, and gathering. For many
 New  Yorkers,  however,  the  cost  is  prohibitive  -  particularly  as
 inflation  climbs,  wages  remain  stagnant, and the cost of basic goods
 rises. At the same time, the MTA faces a fiscal crisis due to  ridership
 declines  from the COVID-19 pandemic, the exhaustion of federal COVID-19
 relief, and the Authority's historically high debt  loads.  Accordingly,
 the  legislature further finds and declares that it is the state's obli-
 gation to solve the MTA's budget crisis, while rejecting  a  fare  hike,
 increasing  service  and making buses free. The state must intervene and
 fill the deficit, while also charting a sustainable future for the  MTA.
 Simultaneously,  it is the intent of the legislature to enhance account-

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05013-02-3
              

 A. 4122                             2
 
 ability through reporting measures; establish prudent and accurate budg-
 et measures; and improve safety. All of these goals together will aid in
 providing safe, reliable and affordable transit service to riders.
   § 3. The MTA (the "Authority") shall allocate state funds received for
 the tax years 2023-2026 in the following ways:
   a.  $600,000,000  in the tax year 2023; $1,190,000,000 in the tax year
 2024; $1,230,000,000 in the tax year 2025; and $1,622,000,000 in the tax
 year 2026 to fill their estimated deficit gap.
   b. $114,000,000 in the tax year 2023; $193,000,000  in  the  tax  year
 2024;  $313,000,000  in  the  tax year 2025; and $360,000,000 in the tax
 year 2026 to pay down the deficit without  the  implementation  of  fare
 increases.  The  Authority shall not increase fares with receipt of this
 funding for the duration of tax years 2023-2026.
   c. $350,000,000 each year for tax years 2023-2026 to account  for  73%
 return to ridership based on 2019 ridership totals. Upon receipt of such
 funding,  the Authority shall issue a public report which shall include,
 but not be limited to, ridership numbers and  fare  revenue,  with  fare
 revenue inclusive of all subsidies paid on behalf of riders for discount
 programs.  This report shall be released no later than 60 days after the
 end of each state fiscal year.
   d. $150,000,000 each year for tax years  2023-2026  for  MTA  workers'
 contract  wage  increases.  Upon  receipt of such funding, the Authority
 shall issue a public report which shall include, but not be limited  to,
 comparing  raise percentages to actual salaries, including the effect of
 changes to steps, work rules or any other impactful policy.
   e. $300,000,000 each year for tax years 2023-2026 to run  subways  and
 most buses at least every six minutes, every day of the week.
   (i)  As  soon as practicable and without compromising the availability
 of express subway service or the reliability of subway and bus  service,
 and  upon  receipt  of  such funding, the Authority shall operate subway
 service and bus service on the 100 most  heavily   used   bus   and  all
 subway  lines    at   least every six minutes at least 17 hours per day,
 seven days per week.
   (ii) Until such time as the Authority is  able  to  make  any  capital
 improvements  necessary to operate subway lines and the 100 most heavily
 used city bus lines at least every six minutes  during  off-peak  hours,
 the Authority shall provide on those lines the same frequency of service
 during off-peak, non-overnight hours, as it does during the peak or rush
 hour period.
   (iii)  Existing rush hour service and service on less heavily used bus
 lines shall not be reduced in order to fund additional service  pursuant
 to this subdivision.
   (iv)  Upon receipt of such funding, the Authority shall issue a public
 report which shall include, but not be limited  to,  cost  and  schedule
 projections by line, with target timing for headways broken down by each
 line,  and  if  spending  targets  are  missed,  explanation for missing
 targets.
   f. $488,000,000  each  year  for  tax years 2023-2026 to increase  bus
 service across the system by 20%.
   (i) Upon receipt of such funding, the Authority shall issue  a  public
 report  which  shall  include,  but not be limited to, cost and schedule
 projections by line funded by this increase.
   (ii) The Authority shall conduct a study to identify  routes  included
 in  both   the   fulfillment  of  the six minute headways policy and the
 20% increase across the  bus  system  in  order  to  identify  duplicate
 routes.    It  must  then report on the savings   from  eliminating said
 A. 4122                             3
 
 duplications, and allocate the cost savings of said routes  to  pay  off
 applicable, outstanding debts with no prepayment penalties.
   §  4.  The Authority shall implement a permanent fare-free bus program
 for buses operated by its subsidiary entities commencing no  later  than
 January  1,  2024.  From  January  1,  2024  until December 31, 2024 the
 Authority shall implement an initial phase of the program in  the  Bronx
 including  identified  bus routes with a cumulative operating cost of no
 more than $147,800,000. From January 1, 2025 until December 31, 2025 the
 Authority shall implement a phase of the program in  Brooklyn  including
 identified  bus  routes with a cumulative operating cost of no more than
 $342,300,000. From January 1, 2026 until December 31, 2026 the Authority
 shall implement a phase of the program in  Queens  including  identified
 bus   routes   with   a  cumulative  operating  cost  of  no  more  than
 $575,700,000. From January 1, 2027 until December 31, 2027 the Authority
 shall implement a phase of the program in Manhattan  and  Staten  Island
 including  identified  bus routes with a cumulative operating cost of no
 more than $778,000,000. The Authority shall  promulgate  any  rules  and
 regulations to implement the program.
   Upon  receipt  of  such  funding,  the  Authority shall issue a public
 report which shall include, but not be limited to, ridership,  a  break-
 down  of  operating costs for the program, selected routes, and cost and
 schedule projections by line.
   § 5. $500,000,000 in the tax year 2023 for one-time operating money to
 cover associated costs with increased subway and bus service,  including
 but  not  limited  to,  personnel  needs,  rolling stock procurement and
 facility costs.
   § 6. Should ridership in any tax year from 2023-2026 be  greater  than
 73%  of  2019  ridership totals or should MTA workers' contracts be less
 than the 3.5% of the projected raise accounted for in subdivision  d  of
 section  three  of  this act, the excess monies shall be used to pay off
 applicable, outstanding debts with no prepayment penalties.
   § 7. The Authority shall henceforth be required to  only  issue  bonds
 with  level debt service payments, with exception of expansion projects;
 provided, however, that this exception shall  only  be  granted  if  the
 Authority  puts  forth  a proposal for approval to the state comptroller
 that the project qualifies for an expansion project.
   § 8. This act shall take effect immediately.