Bill Text: NY A03685 | 2019-2020 | General Assembly | Introduced


Bill Title: Requires any proposed increase in fares by the metropolitan commuter transportation authority shall be submitted to the comptroller for approval before such fare increase takes effect; requires the metropolitan commuter transportation authority to submit a report to the comptroller which includes a justification for such proposed fare increase and the current financial condition of such authority.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-01-30 - referred to corporations, authorities and commissions [A03685 Detail]

Download: New_York-2019-A03685-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          3685
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    January 30, 2019
                                       ___________
        Introduced  by M. of A. GUNTHER -- read once and referred to the Commit-
          tee on Corporations, Authorities and Commissions
        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:
     1    Section  1.  Subdivision  1  of section 1205 of the public authorities
     2  law, as amended by chapter 717 of the laws of 1967, is amended  to  read
     3  as follows:
     4    1.  Notwithstanding  the provisions of any other law, the terms of any
     5  contract or franchise, the authority shall have the power at  all  times
     6  to  fix or adjust the rate or rates of fare to be charged for the use of
     7  any transit facility operated by the authority as may in the judgment of
     8  the authority be necessary to maintain the operations of  the  authority
     9  on  a  self-sustaining  basis,  upon  approval  of the state comptroller
    10  pursuant to section twelve hundred sixty-five-c of this  article.    The
    11  operations  of  the authority shall be deemed to be on a self-sustaining
    12  basis, as required by this title, when the authority is able to pay from
    13  revenue, from any funds granted or transferred to the authority pursuant
    14  to any provision  of  law,  including  funds  granted  pursuant  to  the
    15  provisions  of  section ninety-eight-b of the general municipal law, and
    16  from any other funds actually available to the authority, including  the
    17  proceeds  of  borrowings  for  working capital purposes, the expenses of
    18  operation of the authority as the same shall become due.
    19    § 2. Section 1207-i of the  public  authorities  law,  as  amended  by
    20  section  17  of  part O of chapter 61 of the laws of 2000, is amended to
    21  read as follows:
    22    § 1207-i. Rates of fare while bonds, notes and other  obligations  are
    23  outstanding.  Notwithstanding  the  provisions of section twelve hundred
    24  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.
                                                                   LBD00569-01-9

        A. 3685                             2
     1  so  long as the authority shall have outstanding and unpaid bonds, notes
     2  or other obligations issued pursuant to section twelve  hundred  seven-b
     3  of  this  title, or the metropolitan transportation authority or Tribor-
     4  ough  bridge  and  tunnel  authority  shall  have outstanding and unpaid
     5  bonds, notes or other obligations secured by or payable from,  in  whole
     6  or in part, the revenues, assets or other monies of the authority or its
     7  subsidiary corporations, the authority shall have the power at all times
     8  to  fix or adjust the rate or rates of fare to be charged for the use of
     9  any transit facility operated by the authority,  upon  approval  of  the
    10  state  comptroller  pursuant  to  section twelve hundred sixty-five-c of
    11  this article, as may, in the judgment of  the  board,  be  necessary  to
    12  produce  sufficient  revenues  to pay, as the same shall become due, the
    13  principal of and interest on such bonds, notes and other obligations  of
    14  the  authority,  metropolitan  transportation  authority  and Triborough
    15  bridge and tunnel authority, together with  the  maintenance  of  proper
    16  reserves  therefor,  in  addition to paying as the same shall become due
    17  the expenses of operation of the authority. The authority,  metropolitan
    18  transportation  authority  and  Triborough  bridge and tunnel authority,
    19  shall be authorized to contract with the holders of  such  bonds,  notes
    20  and  other obligations with respect to the exercise of the power author-
    21  ized by this section. In furtherance of the mandate of the  metropolitan
    22  transportation  authority to develop and implement a unified mass trans-
    23  portation policy for the metropolitan commuter  transportation  district
    24  and  the  exercise  of  its  powers, including the power to issue notes,
    25  bonds and other obligations secured in whole or in part by the  revenues
    26  of  the  authority  and  its  subsidiaries,  metropolitan transportation
    27  authority and its subsidiaries, and the  Triborough  bridge  and  tunnel
    28  authority, the authority shall join with the metropolitan transportation
    29  authority  in  connection with the establishment, levy and collection of
    30  fares, tolls, rentals, rates, charges and other fees for the transporta-
    31  tion of passengers on any transit facilities operated by  authority  and
    32  its subsidiaries, including any changes thereto.
    33    §  3.  Subdivision 3 of section 1266 of the public authorities law, as
    34  amended by chapter 314 of the laws  of  1981,  is  amended  to  read  as
    35  follows:
    36    3.  [The] Except as provided in section twelve hundred sixty-five-c of
    37  this title, the authority may establish, levy and collect or cause to be
    38  established, levied and collected and, in the case of  a  joint  service
    39  arrangement,  join with others in the establishment, levy and collection
    40  of such fares, tolls, rentals, rates, charges and other fees as  it  may
    41  deem necessary, convenient or desirable for the use and operation of any
    42  transportation  facility  and related services operated by the authority
    43  or by a subsidiary corporation of the authority or under contract, lease
    44  or other arrangement, including joint  service  arrangements,  with  the
    45  authority.  Any such fares, tolls, rentals, rates, charges or other fees
    46  for the transportation of passengers shall be  established  and  changed
    47  only if approved by resolution of the authority adopted by not less than
    48  a  majority vote of the whole number of members of the authority then in
    49  office, with the chairman having one additional vote in the event  of  a
    50  tie  vote,  except as provided in section twelve hundred sixty-five-c of
    51  this title, and only after a  public  hearing,  provided  however,  that
    52  fares,  tolls, rentals, rates, charges or other fees for the transporta-
    53  tion of passengers on any transportation facility which are in effect at
    54  the time that the then owner of such transportation facility  becomes  a
    55  subsidiary corporation of the authority or at the time that operation of
    56  such  transportation  facility  is  commenced  by  the  authority  or is

        A. 3685                             3
     1  commenced under contract, lease or other  arrangement,  including  joint
     2  service  arrangements,  with  the  authority  may be continued in effect
     3  without such a hearing. Such fares, tolls, rentals, rates,  charges  and
     4  other  fees shall be established as may in the judgment of the authority
     5  be necessary to maintain the combined operations of  the  authority  and
     6  its  subsidiary corporations on a self-sustaining basis.  The said oper-
     7  ations shall be deemed to be on a self-sustaining basis as  required  by
     8  this  title,  when the authority is able to pay or cause to be paid from
     9  revenue and any other  funds  or  property  actually  available  to  the
    10  authority  and  its subsidiary corporations (a) as the same shall become
    11  due, the principal of and interest on the  bonds  and  notes  and  other
    12  obligations  of  the  authority  and  of  such  subsidiary corporations,
    13  together with the maintenance of proper reserves therefor, (b) the  cost
    14  and  expense  of  keeping the properties and assets of the authority and
    15  its subsidiary corporations in good condition and repair,  and  (c)  the
    16  capital  and  operating  expenses  of  the  authority and its subsidiary
    17  corporations. The authority may contract with the holders of  bonds  and
    18  notes  with  respect  to  the  exercise of the powers authorized by this
    19  section. No acts or activities taken or proposed  to  be  taken  by  the
    20  authority  or any subsidiary of the authority pursuant to the provisions
    21  of this subdivision shall be deemed to be "actions" for the purposes  or
    22  within  the  meaning  of article eight of the environmental conservation
    23  law.
    24    § 4. The public authorities law is amended by  adding  a  new  section
    25  1265-c to read as follows:
    26     §  1265-c.  Approval  of  state  comptroller.  1. The authority shall
    27  submit a written report to the state comptroller prior to  the  date  of
    28  any increase in fares for the transportation of passengers takes effect.
    29  Such  report  shall  include  a  justification  for  such  proposed fare
    30  increase and the current financial condition of the authority. The state
    31  comptroller may require any additional data or information  that  he  or
    32  she deems necessary in such report. No proposed fare increase shall take
    33  effect until approved by resolution of the authority pursuant to section
    34  twelve  hundred  sixty-six of this title and approved by the state comp-
    35  troller.
    36    2. This section shall not be deemed to adversely  affect  or  diminish
    37  any public hearing requirements.
    38    §  5.  This  act shall take effect on the ninetieth day after it shall
    39  have become a law and shall apply to any fares  increased  on  or  after
    40  such effective date.
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