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SECTION 1266-C
Transit projects
Public Authorities (PBA) CHAPTER 43-A, ARTICLE 5, TITLE 11
§ 1266-c. Transit projects. 1. Subject to the provisions of this
section, the authority is hereby authorized, upon the request of the New
York city transit authority and upon such terms and conditions as shall
be agreed to by the authority (i) to plan, design, acquire, construct,
reconstruct, rehabilitate and improve facilities, equipment, devices and
appurtenances, and property or property rights constituting or to
constitute part of, or used or to be used in connection with the
operation of any transit facility now or hereafter owned or operated by
the New York city transit authority or any of its subsidiaries (each of
the foregoing activities and programs being referred to in this section
as a "transit project"), (ii) to finance the costs of a transit project
by the issuance of its notes, bonds or lease obligations, (iii) upon the
completion of any transit project or part thereof, to cause the same to
be transferred, leased or subleased to the New York city transit
authority or its designated subsidiary or other designee, for
consideration. The terms "facilities", "equipment", "devices and
appurtenances", "property" or "property rights" and "transit facility"
shall have the meanings given to such terms from time to time in section
twelve hundred of this article. The authority shall have no obligation
to operate or, except as may otherwise be provided in any lease to which
it may be a party as hereinafter provided, repair or maintain any
transit project or part thereof subsequent to its completion nor shall
it be liable to the transferee, lessee or sublessee by reason of any
warranty, express or implied, in respect thereof. Warranties furnished
in connection with such transit project shall be assignable and assigned
as directed by the New York city transit authority and approved by the
authority.

2. In connection with any transit project, and in order to effectuate
the purposes of this section, the authority shall, subject to the
provisions of this section, have all of the powers provided elsewhere in
this title, and, in addition, the authority may:

(a) issue its notes or bonds to finance all or any part of the costs
of a transit project;

(b) finance all or any part of the costs to the authority or to any
other person or entity, public or private, of such transit project
through, or accompanied by, a leasing of such project or any part
thereof by such person or entity to the authority or through or
accompanied by a sale by the authority to any such person or entity and
leaseback to the authority, in each case for subleasing to the New York
city transit authority, its designated subsidiary or other designee for
consideration, except that such leasing or leaseback from such person or
entity may be directly to the New York city transit authority or its
designated subsidiary or other designee with the consent of the
authority;

(c) issue its notes or bonds to defease the lien of, refund or
otherwise repay any outstanding notes, bonds or other obligations of the
New York city transit authority which in the judgment of the authority
would otherwise delay, impede or prevent its financing a transit
project;

(d) accept the notes, bonds, lease, sublease and other contractual
obligations of the New York city transit authority and any of its
designated subsidiaries in payment for a transfer, lease or sublease of
a transit project;

(e) accept from the New York city transit authority or its designated
subsidiary or from the city of New York, acting by its mayor alone, a
transfer of title to or the use, occupancy, control or possession of any
real or personal property (or any interest therein) needed or useful for
or in connection with any transit project;

(f) obtain security for the payment by the New York city transit
authority or its designated subsidiary of its notes, bonds, lease,
sublease or other contractual obligations, including a pledge of all or
any part of any of their revenues, which pledge may contain covenants
with respect to the charging and fixing of fares, fees and rentals, the
use and disposition of such fares, fees, rentals and other revenues, and
the setting aside of reserves therefrom;

(g) with the consent of the New York city transit authority or its
designated subsidiary, use, with or without compensation, its agents,
employees and facilities; and

(h) apply for, accept, enter into contracts for, administer and
disburse any federal, state or local aid or assistance, subject to the
terms and conditions thereof, which may be available for any transit
project.

3. All of the provisions of this title not inconsistent with the
provisions of this section shall be applicable with respect to any
bonds, notes or lease obligations of the authority issued or entered
into to finance any transit project, or to defease the lien of, refund
or otherwise repay outstanding bonds, notes or other obligations of the
New York city transit authority, subject to the following conditions:

(a) such bonds and notes shall be payable as to principal, redemption
premium, if any, and interest and such other obligations shall be
payable, all in the manner more particularly provided by the authority
in the resolution under which the same shall be authorized to be issued;

(b) such lease obligations shall be non-recourse obligations limited
to the recovery of the leased property by the lessor and as to the
payments of sums of money coming due thereunder, to proceedings against
the sublessee under any underlying sublease or pursuant to any pledge or
assignment given to secure sums payable under such underlying sublease;

(c) no bonds or notes of the authority shall be issued for the purpose
of defeasing the lien of, refunding or otherwise repaying outstanding
bonds, notes or other obligations of the New York city transit authority
unless (i) the city of the New York shall have entered into an agreement
on terms satisfactory to the authority to make periodic payments to the
New York city transit authority, and (ii) the New York city transit
authority shall have entered into an agreement on terms satisfactory to
the authority to make periodic payments to the authority, in each case
sufficient to pay, when due, the principal, redemption premium, if any,
and interest upon the bonds or notes of the authority issued to effect
such defeasance, refunding or repayment;

(d) notwithstanding and in addition to any provisions for the
redemption of such bonds or notes which may be contained in any contract
with the holders thereof, the city of New York may, upon furnishing
sufficient funds therefor, require the authority to redeem as a whole
any issue of such bonds or notes at the time or times and at the place
or places and in accordance with the terms upon which such bonds or
notes are redeemable; and

(e) the city of New York shall not be liable on such bonds or notes,
and such bonds or notes shall not be a debt of the city of New York, and
shall contain on the face thereof a statement to such effect.

4. The authority shall not undertake any transit project unless the
New York city transit authority or the subsidiary for whose benefit the
transit project is to be undertaken, or both, shall pay or agree to pay,
in the form of a bond, note, lease, sublease or other contractual
obligation, in a manner and on terms and conditions satisfactory to the
authority, any portion of the costs to the authority of such transit
project and the financing thereof which is not paid to the authority
from any federal, state or local aid or assistance or which is not
payable from any other moneys made available or payable to the authority
by others for such project.

5. Neither the provisions of section one hundred ninety-seven-c of the
New York city charter, relating to a uniform land use review procedure,
nor the provisions of any other local law of the city of New York of
like or similar tenor or import shall apply (i) to the acquisition of
any real property (or any interest therein) for the purposes of any
transit project by the city or by the New York city transit authority or
any of its subsidiaries; (ii) to the subsequent transfer of any real
property (or interest therein) so acquired to the authority or its
designee for the purposes of such project or to the transfer to the
authority or its designee for such purposes of any real property (or
interest therein) then owned by the city or by the New York city transit
authority or any such subsidiary; nor (iii) to the transfer to the
authority or its designee for such purposes of the right of use,
occupancy, control or possession of any real property (or interest
therein), whether presently owned or hereafter acquired by the city or
by the New York city transit authority or any such subsidiary; provided
in each such case, however, that if at the time of such proposed
acquisition or transfer the real property which is the subject of such
acquisition or transfer is not then being utilized for a transit or
transportation purpose or is not an insubstantial addition to such
property contiguous thereto; (a) the authority proposing to acquire or
receive such property shall, unless a submission with respect to such
property has previously been made and approved as herein provided,
submit to the community board for the community district in which such
property is located, data with respect to the proposed use of such
property and to the design of any facility proposed to be constructed
thereon; (b) such community board shall inform the board of estimate of
the city of New York, with copies to the city planning commission of the
city of New York and the proposing authority, of its views and
recommendations with respect thereto within forty-five days of such
submission, and if the community board shall fail to so inform the board
of estimate within such period it shall be deemed to have recommended
the proposal; and (c) the board of estimate shall, within forty-five
days of the recommendation of the community board, approve or disapprove
such acquisition or transfer, and if the board of estimate shall fail to
act within such period it shall be deemed to have approved the same.

6. In its performance of any transit project, the authority shall not
be deemed the agent or instrumentality of the city of New York or the
New York city transit authority or any of its subsidiaries
notwithstanding the fact that title to any real or personal property (or
any interest therein) which is the subject of or is a part of such
project is held by or upon completion of such project is to be
transferred to such other entity. In its performance of any transit
project, however, the provisions of section twelve hundred nine of this
chapter shall apply to the authority as if it were the "authority"
referred to therein.

7. The authority, in addition to the powers provided elsewhere in this
title, shall possess all of the powers, rights and privileges of the New
York city transit authority or its designated subsidiary in connection
with the undertaking by the authority of any transit project. The
authority, upon suitable notice to and an offer to consult with an
officer designated by the city of the New York, may occupy the streets
of the city of New York for the purpose of doing any work over or under
the same in connection with any transit project without the consent of
or payment to such city.

8. After the transfer, transfer back, lease or sublease to the New
York city transit authority or its designated subsidiary or other
designee of any transit project or part thereof, actions for damages for
injuries to real or personal property or for the destruction thereof, or
for personal injuries or death, based upon the use, condition or state
of such project or part thereof may not be instituted against the
authority, which shall have no liability or responsibility to the
transferee, lessee or sublessee or to third parties therefor.

9. Except as the authority shall otherwise agree, title to any transit
project or any part thereof or interest therein which shall have been
transferred, leased or subleased to the New York city transit authority
or its designated subsidiary, shall remain in such transferee, lessee or
sublessee any provision of title nine of this article or of any lease or
other agreement entered into under the provisions of that title to the
contrary notwithstanding.

10. The providing of any transit project shall not relieve the city of
New York of its obligations under law and by lease to pay the capital
costs of the New York city transit authority or its subsidiaries.

11. No transit project to be constructed upon real property
theretofore used for a transit or transportation purpose, or on an
insubstantial addition to such property contiguous thereto, which will
not change in a material respect the general character of such prior
transit or transportation use, nor any acts or activities in connection
with such project, shall be subject to the provisions of article eight,
nineteen, twenty-four or twenty-five of the environmental conservation
law, or to any local law or ordinance adopted pursuant to any such
article. Nor shall any transit project or any acts or activities in
connection therewith taken by any person or entity, public or private,
pursuant to this section be subject to the provisions of article eight
of the environmental conservation law if such project, acts or
activities require the preparation of a statement under or pursuant to
any federal law or regulation as to the environmental impact thereof.

12. The provisions of this section and of all agreements undertaken by
the New York city transit authority in accordance therewith shall in all
respects be subject to the rights of the holders of any outstanding
bonds or notes of such authority.

13. a. All contracts for design, construction, services and materials
pursuant to this title of whatever nature and all documents soliciting
bids or proposals therefor shall contain or make reference to the
following provisions:

(i) The contractor will not discriminate against employees or
applicants for employment because of race, creed, color, national
origin, sex, age, disability, or marital status, and will undertake or
continue existing programs of affirmative action to ensure that minority
group persons and women are afforded equal opportunity without
discrimination. Such programs shall include, but not be limited to,
recruitment, employment, job assignment, promotion, upgrading, demotion,
transfer, layoff, termination, rates of pay or other forms of
compensation, and selections for training or retraining, including
apprenticeship and on-the-job training.

(ii) At the request of the New York city transit authority, the
metropolitan transportation authority, and their subsidiaries
(hereinafter referred to as the authority), the contractor shall request
each employment agency, labor union, or authorized representative of
workers with which it has a collective bargaining or other agreement or
understanding and which is involved in the performance of the contract
with the authority to furnish a written statement that such employment
agency, labor union or representative shall not discriminate because of
race, creed, color, national origin, sex, age, disability or marital
status and that such union or representative will cooperate in the
implementation of the contractor's obligations hereunder.

(iii) The contractor will state, in all solicitations or
advertisements for employees placed by or on behalf of the contractor in
the performance of the contract with the authority, that all qualified
applicants will be afforded equal employment opportunity without
discrimination because of race, creed, color, national origin, sex, age,
disability or marital status. (iv) The contractor will include the
provisions of subparagraphs (i) through (iii) of this paragraph in every
subcontract or purchase order in such a manner that such provisions will
be binding upon each subcontractor or vendor as to its work in
connection with the contract with the authority.

b. The authority shall establish procedures and guidelines to ensure
that contractors and subcontractors undertake programs of affirmative
action and equal employment opportunity as required by this subdivision.
Such procedures may require after notice in a bid solicitation, the
submission of an affirmative action program prior to the award of any
contract, or at any time thereafter, and may require the submission of
compliance reports relating to the operation and implementation of any
affirmative action program adopted hereunder. The authority may take
appropriate action including contractual sanctions for non-compliance to
effectuate the provisions of this subdivision and shall be responsible
for monitoring compliance with this title.

14. (a) (i) In the performance of projects pursuant to this title
minority and women-owned business enterprises shall be given the
opportunity for meaningful participation. The authority provided for in
this title shall establish measures and procedures to secure meaningful
participation and identify those contracts and items of work for which
minority and women-owned business enterprises may best bid to actively
and affirmatively promote and assist their participation in the
projects, so as to facilitate the award of a fair share of contracts to
such enterprises; provided, however, that nothing in this title shall be
construed to limit the ability of the authority to assure that qualified
minority and women-owned business enterprises may participate in the
program. For purposes hereof, minority business enterprise shall mean
any business enterprise which is at least fifty-one per centum owned by,
or in the case of a publicly owned business, at least fifty-one per
centum of the stock of which is owned by citizens or permanent resident
aliens who are Black, Hispanic, Asian or American Indian, Pacific
Islander or Alaskan natives and such ownership interest is real,
substantial and continuing and have the authority to independently
control the day to day business decisions of the entity for at least one
year; and women-owned business enterprise shall mean any business
enterprise which is at least fifty-one per centum owned by, or in the
case of a publicly owned business, at least fifty-one per centum of the
stock of which is owned by citizens or permanent resident aliens who are
women, and such ownership interest is real, substantial and continuing
and have the authority to independently control the day to day business
decisions of the entity for at least one year.

The provisions of this paragraph shall not be construed to limit the
ability of any minority or women-owned business enterprise to bid on any
contract.

(ii) In the implementation of this subdivision, the authority shall
consider compliance by any contractor with the requirements of any
federal, state, or local law concerning minority and women-owned
business enterprises, which may effectuate the requirements of this
subdivision. If the authority determines that by virtue of the
imposition of the requirements of any such law, in respect to capital
project contracts, the provisions thereof duplicate or conflict with
such law, the authority may waive the applicability of this subdivision
to the extent of such duplication or conflict.

(iii) Nothing in this subdivision shall be deemed to require that
overall state and federal requirements for participation of minority and
women-owned business enterprises in programs authorized under this title
be applied without regard to local circumstances to all projects or in
all communities.

(b) In order to implement the requirements and objectives of this
subdivision, the authority shall establish procedures to monitor the
contractors' compliance with provisions hereof, provide assistance in
obtaining competing qualified minority and women-owned business
enterprises to perform contracts proposed to be awarded, and take other
appropriate measures to improve the access of minority and women-owned
business enterprises to these contracts.

15. (a) In connection with the performance of projects pursuant to
this section, the authority shall, to the extent practicable and not
inconsistent with any federal law, regulation or requirement, promote
the meaningful participation of small business and New York state
business enterprises in the provision of goods and services that are
produced or manufactured in New York state as part of procurements
undertaken by the authority.

(b) The authority shall within one hundred eighty days after the
effective date of this subdivision develop, and review annually
thereafter, a plan to effect the purposes of this subdivision.