Senate Bill S2564

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2564
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 21, 2025
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Transportation
 
 AN ACT to amend the public authorities law, in relation to requiring the
   metropolitan commuter transportation authority to obtain approval from
   the state comptroller to increase fares

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision  1  of section 1205 of the public authorities
 law, as amended by chapter 717 of the laws of 1967, is amended  to  read
 as follows:
   1.  Notwithstanding  the provisions of any other law, the terms of any
 contract or franchise, the authority shall have the power at  all  times
 to  fix or adjust the rate or rates of fare to be charged for the use of
 any transit facility operated by the authority as may in the judgment of
 the authority be necessary to maintain the operations of  the  authority
 on  a  self-sustaining  basis,  UPON  APPROVAL  OF THE STATE COMPTROLLER
 PURSUANT TO SECTION TWELVE HUNDRED SIXTY-FIVE-C OF THIS  ARTICLE.    The
 operations  of  the authority shall be deemed to be on a self-sustaining
 basis, as required by this title, when the authority is able to pay from
 revenue, from any funds granted or transferred to the authority pursuant
 to any provision  of  law,  including  funds  granted  pursuant  to  the
 provisions  of  section ninety-eight-b of the general municipal law, and
 from any other funds actually available to the authority, including  the
 proceeds  of  borrowings  for  working capital purposes, the expenses of
 operation of the authority as the same shall become due.
   § 2. Section 1207-i of the  public  authorities  law,  as  amended  by
 section  17  of  part O of chapter 61 of the laws of 2000, is amended to
 read as follows:
   § 1207-i. Rates of fare while bonds, notes and other  obligations  are
 outstanding.  Notwithstanding  the  provisions of section twelve hundred
 five of this title or the provisions of any other law to  the  contrary,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05059-01-5
              

 S. 2564                             2
 
 so  long as the authority shall have outstanding and unpaid bonds, notes
 or other obligations issued pursuant to section twelve  hundred  seven-b
 of  this  title, or the metropolitan transportation authority or Tribor-
 ough  bridge  and  tunnel  authority  shall  have outstanding and unpaid
 bonds, notes or other obligations secured by or payable from,  in  whole
 or in part, the revenues, assets or other monies of the authority or its
 subsidiary corporations, the authority shall have the power at all times
 to  fix or adjust the rate or rates of fare to be charged for the use of
 any transit facility operated by the authority,  UPON  APPROVAL  OF  THE
 STATE  COMPTROLLER  PURSUANT  TO  SECTION TWELVE HUNDRED SIXTY-FIVE-C OF
 THIS ARTICLE, as may, in the judgment of  the  board,  be  necessary  to
 produce  sufficient  revenues  to pay, as the same shall become due, the
 principal of and interest on such bonds, notes and other obligations  of
 the  authority,  metropolitan  transportation  authority  and Triborough
 bridge and tunnel authority, together with  the  maintenance  of  proper
 reserves  therefor,  in  addition to paying as the same shall become due
 the expenses of operation of the authority. The authority,  metropolitan
 transportation  authority  and  Triborough  bridge and tunnel authority,
 shall be authorized to contract with the holders of  such  bonds,  notes
 and  other obligations with respect to the exercise of the power author-
 ized by this section. In furtherance of the mandate of the  metropolitan
 transportation  authority to develop and implement a unified mass trans-
 portation policy for the metropolitan commuter  transportation  district
 and  the  exercise  of  its  powers, including the power to issue notes,
 bonds and other obligations secured in whole or in part by the  revenues
 of  the  authority  and  its  subsidiaries,  metropolitan transportation
 authority and its subsidiaries, and the  Triborough  bridge  and  tunnel
 authority, the authority shall join with the metropolitan transportation
 authority  in  connection with the establishment, levy and collection of
 fares, tolls, rentals, rates, charges and other fees for the transporta-
 tion of passengers on any transit facilities operated by  authority  and
 its subsidiaries, including any changes thereto.
   §  3.  Subdivision 3 of section 1266 of the public authorities law, as
 amended by chapter 314 of the laws  of  1981,  is  amended  to  read  as
 follows:
   3.  [The] EXCEPT AS PROVIDED IN SECTION TWELVE HUNDRED SIXTY-FIVE-C OF
 THIS TITLE, THE authority may establish, levy and collect or cause to be
 established, levied and collected and, in the case of  a  joint  service
 arrangement,  join with others in the establishment, levy and collection
 of such fares, tolls, rentals, rates, charges and other fees as  it  may
 deem necessary, convenient or desirable for the use and operation of any
 transportation  facility  and related services operated by the authority
 or by a subsidiary corporation of the authority or under contract, lease
 or other arrangement, including joint  service  arrangements,  with  the
 authority.  Any such fares, tolls, rentals, rates, charges or other fees
 for the transportation of passengers shall be  established  and  changed
 only if approved by resolution of the authority adopted by not less than
 a  majority vote of the whole number of members of the authority then in
 office, with the [chairman] CHAIR having  one  additional  vote  in  the
 event  of  a  tie  vote,  EXCEPT  AS  PROVIDED IN SECTION TWELVE HUNDRED
 SIXTY-FIVE-C OF THIS TITLE, and only after a  public  hearing,  provided
 however,  that  fares,  tolls, rentals, rates, charges or other fees for
 the transportation of passengers on any  transportation  facility  which
 are  in  effect  at  the time that the then owner of such transportation
 facility becomes a subsidiary corporation of the  authority  or  at  the
 time  that operation of such transportation facility is commenced by the
 S. 2564                             3
 
 authority or is commenced under contract, lease  or  other  arrangement,
 including  joint service arrangements, with the authority may be contin-
 ued in effect without such a hearing. Such fares, tolls, rentals, rates,
 charges  and  other  fees shall be established as may in the judgment of
 the authority be necessary to maintain the combined  operations  of  the
 authority  and  its  subsidiary corporations on a self-sustaining basis.
 The said operations shall be deemed to be on a self-sustaining basis  as
 required by this title, when the authority is able to pay or cause to be
 paid  from revenue and any other funds or property actually available to
 the authority and its subsidiary corporations  (a)  as  the  same  shall
 become  due,  the  principal  of and interest on the bonds and notes and
 other obligations of the authority and of such subsidiary  corporations,
 together  with the maintenance of proper reserves therefor, (b) the cost
 and expense of keeping the properties and assets of  the  authority  and
 its  subsidiary  corporations  in good condition and repair, and (c) the
 capital and operating expenses  of  the  authority  and  its  subsidiary
 corporations.  The  authority may contract with the holders of bonds and
 notes with respect to the exercise of  the  powers  authorized  by  this
 section.  No  acts  or  activities  taken or proposed to be taken by the
 authority or any subsidiary of the authority pursuant to the  provisions
 of  this subdivision shall be deemed to be "actions" for the purposes or
 within the meaning of article eight of  the  environmental  conservation
 law.
   §  4.  The  public  authorities law is amended by adding a new section
 1265-c to read as follows:
    § 1265-C. APPROVAL OF  STATE  COMPTROLLER.  1.  THE  AUTHORITY  SHALL
 SUBMIT  A  WRITTEN  REPORT TO THE STATE COMPTROLLER PRIOR TO THE DATE OF
 ANY INCREASE IN FARES FOR THE TRANSPORTATION OF PASSENGERS TAKES EFFECT.
 SUCH REPORT  SHALL  INCLUDE  A  JUSTIFICATION  FOR  SUCH  PROPOSED  FARE
 INCREASE AND THE CURRENT FINANCIAL CONDITION OF THE AUTHORITY. THE STATE
 COMPTROLLER  MAY  REQUIRE  ANY  ADDITIONAL DATA OR INFORMATION THAT SUCH
 COMPTROLLER DEEMS NECESSARY IN SUCH REPORT. NO  PROPOSED  FARE  INCREASE
 SHALL TAKE EFFECT UNTIL APPROVED BY RESOLUTION OF THE AUTHORITY PURSUANT
 TO  SECTION  TWELVE  HUNDRED SIXTY-SIX OF THIS TITLE AND APPROVED BY THE
 STATE COMPTROLLER.
   2. THIS SECTION SHALL NOT BE DEEMED TO ADVERSELY  AFFECT  OR  DIMINISH
 ANY PUBLIC HEARING REQUIREMENTS.
   §  5.  This  act shall take effect on the ninetieth day after it shall
 have become a law and shall apply to any fares  increased  on  or  after
 such effective date.