Bill Text: NY A04148 | 2019-2020 | General Assembly | Introduced


Bill Title: Establishes the metropolitan transportation authority fiscal oversight control board to oversee and regulate the finances of the metropolitan transportation authority.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Introduced) 2019-02-01 - referred to corporations, authorities and commissions [A04148 Detail]

Download: New_York-2019-A04148-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          4148
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    February 1, 2019
                                       ___________
        Introduced by M. of A. KOLB, BRABENEC, RAIA -- read once and referred to
          the Committee on Corporations, Authorities and Commissions
        AN  ACT to amend the public authorities law, in relation to establishing
          the metropolitan transportation authority fiscal oversight board,  and
          to  provide  for  the  powers  and duties of such board; and to repeal
          section 1279-a of such law relating to the management  advisory  board
          of the metropolitan transportation authority
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Section 1279-a of the public authorities law is REPEALED.
     2    § 2. Article 5 of the public authorities law is amended  by  adding  a
     3  new title 10-E to read as follows:
     4                                 TITLE 10-E
     5                         METROPOLITAN TRANSPORTATION
     6                  AUTHORITY FISCAL OVERSIGHT CONTROL BOARD
     7  Section 1240. Short title.
     8          1241. Legislative intent.
     9          1242. Definitions.
    10          1243. Establishment  of  metropolitan  transportation  authority
    11                  fiscal oversight control board.
    12          1244. Administration of the board.
    13          1245. General powers of the board.
    14          1246. Transfer of powers, duties and functions.
    15          1247. Transfer of records.
    16          1248. Transfer of employees.
    17          1249. Continuity of authority.
    18          1250. Completion of unfinished business.
    19          1251. Terms occurring in laws, contracts and other documents.
    20          1252. Existing rights and remedies preserved.
    21          1253. Pending actions and proceedings.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05715-01-9

        A. 4148                             2
     1          1254. Assistance to the board; employees of the inspector gener-
     2                  al.
     3          1255. Review period.
     4          1256. MTA financial plan.
     5          1257. Actions against the board.
     6          1258. Audits.
     7          1259. Effect of inconsistent provisions.
     8          1259-a. Separability; construction.
     9    § 1240. Short title. This title shall be known and may be cited as the
    10  "Metropolitan  transportation  authority  fiscal oversight control board
    11  act".
    12    § 1241. Legislative intent. The legislature hereby finds and  declares
    13  that  the  metropolitan  transportation  authority  is facing an ongoing
    14  financial crisis, and that the crisis cannot be resolved absent  outside
    15  intervention. The legislature therefore declares that the creation of an
    16  independent  fiscal  oversight board is necessary to address this finan-
    17  cial crisis to restore the confidence of the  financial  markets,  those
    18  who use the metropolitan transportation authority services, those who do
    19  business with such authority and the people of the state of New York.
    20    §  1242.  Definitions.  For  the  purposes  of  this title, unless the
    21  context requires otherwise:
    22    1. "Board", "control board" and "fiscal oversight control board"  mean
    23  the metropolitan transportation authority fiscal oversight control board
    24  established by section twelve hundred forty-three of this title.
    25    2.  "Forensic  audit"  means  the use of accounting methods to collect
    26  forensic evidence to determine if a  criminal  act  including,  but  not
    27  limited  to,  embezzlement or fraud, is occurring or has occurred within
    28  the MTA.
    29    3. "Inspector general" means the office of metropolitan transportation
    30  authority inspector general established by section twelve hundred seven-
    31  ty-nine of this article.
    32    4. "MTA" means the metropolitan transportation  authority  established
    33  by title eleven of this article.
    34    5.   "MTA  region"  means  the  metropolitan  commuter  transportation
    35  district established by section twelve hundred sixty-two of  this  arti-
    36  cle.
    37    §  1243. Establishment of metropolitan transportation authority fiscal
    38  oversight control board. There is hereby  established  the  metropolitan
    39  transportation authority fiscal oversight control board, as an independ-
    40  ent  entity within the office of inspector general, which shall exercise
    41  the powers and duties provided for in this title.
    42    § 1244. Administration of the board. 1. The  board  shall  consist  of
    43  seven  members  which  shall  be appointed by the governor. Of the seven
    44  members, one such member shall be appointed following the recommendation
    45  of the state comptroller; one such member  shall  be  appointed  on  the
    46  recommendation of the temporary president of the senate; one such member
    47  shall be appointed on the recommendation of the speaker of the assembly;
    48  one such member shall be appointed on the recommendation of the minority
    49  leader  of  the  senate;  and  one such member shall be appointed on the
    50  recommendation of the minority leader of the assembly.    Every  member,
    51  who  is  otherwise an elected official, shall be entitled to designate a
    52  single representative to attend, in his or her place,  meetings  of  the
    53  board and to vote or otherwise act in his or her behalf.  Such designees
    54  shall  be  residents  of the state.   Written notice of such designation
    55  shall be furnished prior to any participation by  the  single  designee.
    56  Such  single designee shall serve at the pleasure of the representative,

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     1  and shall not be authorized to delegate any of  his  or  her  duties  or
     2  functions  to another person.  Each member shall be appointed for a term
     3  of four years,  provided  however,  that  three  of  the  members  first
     4  appointed  by the governor, including the member appointed following the
     5  recommendation of the state comptroller shall serve for  a  term  ending
     6  June  thirtieth,  two  thousand  twenty-three,  and  the  remaining four
     7  members first appointed by the governor including the members  appointed
     8  on  the  recommendation  of  the  temporary president of the senate, the
     9  speaker of the assembly, the minority  leader  of  the  senate  and  the
    10  minority leader of the assembly shall serve for a term ending June thir-
    11  tieth,  two  thousand twenty-five.   Each member shall hold office until
    12  his or her successor has been appointed and qualified. Thereafter,  each
    13  member  shall  serve  a  term  of  four  years,  except  that any member
    14  appointed to fill a vacancy shall serve only until the expiration of his
    15  or her predecessor's term.
    16    2. The governor shall designate a chair and a  vice-chair  from  among
    17  the  members.  The  chair shall preside over all meetings of the members
    18  and shall have such other duties as the members may prescribe. The vice-
    19  chair shall preside over all meetings of the members in the  absence  of
    20  the chair and shall have such other duties as the members may prescribe.
    21    3.  The  members  of  the  board  shall serve without salary, but each
    22  member shall be reimbursed for actual and necessary expenses incurred in
    23  the performance of such member's official duties  as  a  member  of  the
    24  board.
    25    4.  Notwithstanding any inconsistent provision of any general, special
    26  or local law, ordinance, resolution or charter, no  officer,  member  or
    27  employee  of  the  state, any city, county, town or village, any govern-
    28  mental entity  operating  any  public  school  or  college,  any  school
    29  district  or  any other public agency or instrumentality which exercises
    30  governmental powers under the laws of the state, shall  forfeit  his  or
    31  her  office or employment by reason of his or her acceptance of appoint-
    32  ment as a member, officer or employee of the board, nor shall service as
    33  such member, officer or employee of the board be deemed incompatible  or
    34  in conflict with such office or employment.
    35    5.  Four  members shall constitute a quorum for the transaction of any
    36  business or the exercise of any power of the board. No action  shall  be
    37  taken  by the board except pursuant to a favorable vote of at least four
    38  members participating in a meeting at which such action is taken.
    39    6. The board shall appoint a treasurer and may  appoint  officers  and
    40  agents as it may require and prescribe their duties.
    41    §  1245.  General  powers of the board. Except as otherwise limited by
    42  this title, the board shall have the following powers and duties:
    43    1. to make and alter by-laws for its organizations and management;
    44    2. to make and execute contracts and all other instruments  or  agree-
    45  ments  necessary  or  convenient  to  carry out any powers and functions
    46  expressly given in this title;
    47    3. to commence any action to protect or enforce  any  right  conferred
    48  upon it by any law, contract or other agreement;
    49    4. to review, authorize and approve all contracts of the MTA or any of
    50  its subsidiaries in excess of one hundred thousand dollars;
    51    5.  to approve or disapprove the financial plan and the financial plan
    52  modifications of the MTA, and shall formulate and adopt its own  modifi-
    53  cations  to  the  financial  plan, as necessary such modifications shall
    54  become effective upon their adoption by the control board;
    55    6. to set a maximum level of spending for any proposed budget  of  any
    56  subsidiary organizations of the MTA;

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     1    7.  (a)  to  impose  a wage and/or hiring freeze upon a finding by the
     2  control board that a wage and/or  hiring  freeze  is  essential  to  the
     3  adoption  or  maintenance  of  a MTA budget or financial plan that is in
     4  compliance with this title, the board shall be empowered to  order  that
     5  all  increases  in salary or wages of employees of the MTA and employees
     6  of covered subsidiaries which will take effect after  the  date  of  the
     7  order  pursuant  to  collective  bargaining  agreements, other analogous
     8  contracts or interest arbitration awards,  in  existence  or  thereafter
     9  entered  into,  requiring  such  salary or wage increases as of any date
    10  thereafter are suspended. Such order may also provide that all increased
    11  payments for holiday and vacations differentials,  shift  differentials,
    12  salary  adjustments,  according  to  plan and step-ups or increments for
    13  employees of the MTA and employees of covered  subsidiaries  which  will
    14  take  effect after the date of the order pursuant to collective bargain-
    15  ing agreements, other analogous contracts or interest arbitration awards
    16  requiring such increased payments as of any date thereafter are, in  the
    17  same  manner,  suspended. For the purposes of computing the pension base
    18  of retirement allowances, any suspended salary or wage increases and any
    19  other suspended payments shall not be considered as part of compensation
    20  or final compensation or of annual salary earned or earnable.
    21    (b) Notwithstanding the provisions of paragraph (a) of  this  subdivi-
    22  sion,  this  subdivision shall not be applicable to employees of the MTA
    23  or employees of a covered subsidiary subject to a collective  bargaining
    24  agreement  or an employee of the MTA or a covered subsidiary not subject
    25  to the collective bargaining agreement where the  collective  bargaining
    26  representative  or such unrepresented employee has agreed to a deferment
    27  of salary or wage increase, by an instrument in writing which  has  been
    28  certified  by  the  control board as being an acceptable and appropriate
    29  contribution toward alleviating the fiscal crisis of the authority.  Any
    30  such agreement to a deferral of salary or wage increase may provide that
    31  for the purposes of computing the pension base of retirement allowances,
    32  any  deferred  salary  or  wage  increase  may  be considered as part of
    33  compensation or final compensation or of annual salary earned or  earna-
    34  ble.
    35    (c)  Notwithstanding  the provisions of paragraphs (a) and (b) of this
    36  subdivision, no retroactive pay adjustments of any kind shall accrue  or
    37  be  deemed to accrue during the period of wage freeze, and no such addi-
    38  tional amounts shall be paid at the time a wage freeze is lifted, or  at
    39  any time thereafter;
    40    8.  to conduct forensic audits and report any in which there is reason
    41  to believe a violation of a law, abuse or waste occurred relating to the
    42  MTA to the state inspector general or, where applicable,  the  inspector
    43  general;
    44    9.  to  review  and  approve  or  disapprove any collective bargaining
    45  agreement to be entered into by the MTA or  any  covered  subsidiary  or
    46  purporting to bind, the MTA or any covered subsidiary. Prior to entering
    47  into any collective bargaining agreement, the MTA or any covered subsid-
    48  iary  shall submit a copy of such collective bargaining agreement to the
    49  control board, accompanied by an analysis of the projected costs of such
    50  agreement and certification that execution of the agreement will  be  in
    51  accordance  with  the  financial  plan. Such submission shall be in such
    52  form and shall include such additional information as the control  board
    53  may prescribe. The control board shall promptly review the terms of such
    54  collective  bargaining agreement and the supporting information in order
    55  to determine compliance with the financial plan,  and  shall  disapprove
    56  any  collective  bargaining  agreement which, in its judgement, would be

        A. 4148                             5
     1  inconsistent with the financial plan.  No collective  bargaining  agree-
     2  ment  binding,  or purporting to bind, the MTA or any covered subsidiary
     3  after the effective date of this title shall be valid and  binding  upon
     4  the MTA or any covered subsidiary unless first approved by resolution of
     5  the  control  board  and  shall  act  jointly  with the MTA in selecting
     6  members of any interest arbitration  panel.  Notwithstanding  any  other
     7  evidence  presented  by  the MTA, the covered organization or any recog-
     8  nized employee organization, the arbitration panel must, prior to  issu-
     9  ing  any final decision, provide the board with the opportunity to pres-
    10  ent evidence regarding the fiscal condition of the MTA;
    11    10. to make recommendations to the governor, the  temporary  president
    12  of  the senate, the speaker of the assembly, the minority leaders of the
    13  senate and the assembly, and the chairs and ranking minority members  of
    14  the  following  committees:   the senate finance committee, the assembly
    15  ways and means committee, the senate committee on corporations, authori-
    16  ties and commissions and the assembly committee on corporations, author-
    17  ities and commissions and control board members concerning opportunities
    18  to improve the performance, reporting, reformation, structure and  over-
    19  sight of the MTA;
    20    11.  to  provide  such  additional  information and analysis as may be
    21  reasonably requested by the legislature and state comptroller;
    22    12. to review the potential for and make recommendations to the gover-
    23  nor and legislature regarding the terms of board members;
    24    13. to develop and issue a written acknowledgement that a board member
    25  must execute at the time that the member takes and subscribes their oath
    26  of office, or within sixty-five days after the effective  date  of  this
    27  title  if  the  member  has  already  taken and subscribed their oath of
    28  office, in which the board  member  acknowledges  that  they  understand
    29  their independence and fiduciary duties, including their duty of loyalty
    30  and  care  to  the  organization  and  commitment to the control board's
    31  mission;
    32    14. to recommend to the legislature and governor a  compensation  plan
    33  for officers of the MTA and covered subsidiaries;
    34    15.  to develop guidelines for best corporate management and financial
    35  practices of the MTA, where  such  authority  shall  comply  with  those
    36  guidelines  except when the MTA provides to the control board a detailed
    37  explanation of the MTA's failure to  comply,  and  where  an  explaining
    38  authority  shall be considered in compliance with such guidelines unless
    39  and until notified to the contrary by the control board;
    40    16.  to  periodically  evaluate  the  suspension  of  salary  or  wage
    41  increases  or  suspension  of  other increased payments or benefits, and
    42  may, if it finds that the fiscal crisis, in the  sole  judgment  of  the
    43  control board has abated, terminate such suspensions;
    44    17.  to  appoint such officers and employees as it may require for the
    45  performance of its duties and to fix and determine their qualifications,
    46  duties and compensation, and to retain or employ counsel,  auditors  and
    47  private  financial consultants and other services on a contract basis or
    48  otherwise for rendering professional, business or technical services and
    49  advice; and, in taking such actions, the control  board  shall  consider
    50  the financial impact on the MTA;
    51    18.  to  make  reports  received  by and prepared by the control board
    52  available to the public, to the extent practicable, through  the  inter-
    53  net.  In addition, the control board may make publicly available, and to
    54  the extent practicable through the internet, such additional information
    55  as  it  deems  appropriate,  provided such disclosure does not interfere
    56  with the oversight functions of  such  board.  The  provisions  of  this

        A. 4148                             6
     1  subdivision  shall  not require, however, the public disclosure of docu-
     2  ments or information not subject to disclosure under the  provisions  of
     3  section  eighty-seven  of  the  public officers law. Furthermore, before
     4  making  publicly available in any manner information that is not subject
     5  to mandatory disclosure under the provisions of section eighty-seven  of
     6  the  public  officers  law,  the  control  board  shall first obtain the
     7  consent of the MTA;
     8    19. to annually issue reports on its  findings  and  analyses  to  the
     9  governor,  the  chair  and ranking minority member of the senate finance
    10  committee, the chair and ranking minority member of  the  assembly  ways
    11  and means committee, the chair and ranking minority member of the senate
    12  standing  committee  on  corporations,  authorities and commissions, the
    13  chair and ranking  minority member of the assembly standing committee on
    14  corporations, authorities and commissions, the state comptroller and the
    15  attorney general, with conclusions and opinions concerning the  perform-
    16  ance of the MTA and to study, review and report on the operations, prac-
    17  tices  and  finances  of the MTA. Such reports shall include, but not be
    18  limited to: (a) the economic impact of  the  mobility  tax  on  the  MTA
    19  region,  (b) a compensation schedule in addition to the report described
    20  in section twenty-eight hundred six of this chapter that shall  include,
    21  by  position,  title  and  name  of  the person holding such position or
    22  title, the salary, compensation, allowance and/or benefits  provided  to
    23  any  officer,  director  or  employee in a decision making or managerial
    24  position of such authority whose salary is  in  excess  of  one  hundred
    25  thousand dollars, (c) educational background and professional experience
    26  for  all  directors, officers and employees for whom salary reporting is
    27  required under paragraph (b)  of  this  subdivision,  (d)  the  projects
    28  undertaken  by  such  authority  during the past year, (e) a listing and
    29  description, in addition to the report required by paragraph a of subdi-
    30  vision three of section twenty-eight hundred ninety-six of this  chapter
    31  of all real property of the MTA having an estimated fair market value in
    32  excess  of  fifty  thousand dollars that the MTA acquires or disposes of
    33  during such period. The report shall contain the price received or  paid
    34  by  the  authority  and the name of the purchaser or seller for all such
    35  property sold or bought by the MTA, (f) the MTA's code of ethics, (g) an
    36  assessment of the effectiveness of its internal  control  structure  and
    37  procedures,  (h)  a  description  of  the  MTA  and its board structure,
    38  including (i) names of committees and committee members, (ii)  lists  of
    39  board meetings and attendance, (iii) descriptions of major MTA units and
    40  subsidiaries, and (iv) number of employees, (i) its charter, if any, and
    41  by-laws,  (j)  a  listing of material changes in operations and programs
    42  during the reporting year, (k) a description of assets  valued  at  more
    43  than  twenty  thousand  dollars  and/or  services  bought  or  sold  and
    44  contracts for services valued at more than one hundred thousand  dollars
    45  entered into other than on a competitive basis, including (i) the nature
    46  of  those assets and services, (ii) the names of the counterparties, and
    47  (iii) where the contract price for goods purchased exceeds  fair  market
    48  value,  or  where  the  contract  price for goods sold is less than fair
    49  market value, a statement of the fair market value, a detailed  explana-
    50  tion executed by the chief executive officer, chief financial officer or
    51  procurement  officer  of  the reasons for the high price purchase or the
    52  low price sale including the relationship, if any, of persons associated
    53  with the buyer/purchaser and persons associated with the MTA and/or  the
    54  officials  who appointed members to the MTA board, and (l) a description
    55  of any material pending litigation in which the authority is involved as
    56  a party during the reporting year; and

        A. 4148                             7
     1    20. to do any and all things necessary or convenient to carry out  its
     2  purposes  and  exercise  the  powers expressly given and granted in this
     3  title,  provided,  however,  the  board  shall  under  no  circumstances
     4  acquire,  hold  or  transfer title to, lease, own beneficially or other-
     5  wise,  manage, operate or otherwise exercise control over any real prop-
     6  erty, any improvement to real property or  any  interest  therein  other
     7  than  a  lease or sublease of office space deemed necessary or desirable
     8  by the control board.
     9    § 1246.  Transfer of powers, duties and functions. All powers,  duties
    10  and  functions  conferred  upon the management advisory board created by
    11  the former section twelve hundred seventy-nine-a of this article,  shall
    12  be transferred to and assumed by the board.
    13    §  1247.    Transfer  of records. The former management advisory board
    14  created by the former section  twelve  hundred  seventy-nine-a  of  this
    15  article  shall deliver to the board all books, papers, records and prop-
    16  erty as requested by the board.
    17    § 1248. Transfer of employees. Upon the transfer of the  functions  of
    18  the  former  management  advisory  board  created  by the former section
    19  twelve hundred seventy-nine-a of this article to the board, any affected
    20  employees may be transferred to the board  in  accordance  with  section
    21  seventy of the civil service law.
    22    § 1249.  Continuity of authority. For the purpose of succession to all
    23  functions,  powers,  duties and obligations transferred and assigned to,
    24  devolved upon and assumed by the board  shall  be  deemed  and  held  to
    25  constitute  the  continuation  of  the  former management advisory board
    26  pertaining to the powers and functions transferred.
    27    § 1250. Completion of  unfinished  business.  Any  business  or  other
    28  matter  undertaken  or commenced by the former management advisory board
    29  created by the former section  twelve  hundred  seventy-nine-a  of  this
    30  article  pertaining  to  or  connected with the functions, powers, obli-
    31  gations and duties transferred and assigned to the board, and pending on
    32  the effective date of this title may be conducted and completed  by  the
    33  board  in  the  same  manner and under the same terms and conditions and
    34  with the same effect as if conducted and completed by the former manage-
    35  ment advisory board.
    36    § 1251. Terms occurring in laws, contracts and other documents.  When-
    37  ever  the former management advisory board created by the former section
    38  twelve hundred seventy-nine-a of this article is referred to  or  desig-
    39  nated  in  any  law,  contract or documents pertaining to the functions,
    40  powers, obligations and duties transferred and assigned  to  the  board,
    41  such reference or designation shall be deemed to refer to the board.
    42    §  1252.  Existing rights and remedies preserved. No existing right or
    43  remedy of any character shall be lost, impaired or affected by reason of
    44  this title.
    45    § 1253.   Pending actions and proceedings.  No  action  or  proceeding
    46  pending  at  the  time  when  this  act shall take effect, brought by or
    47  against the former management  advisory  board  created  by  the  former
    48  section  twelve  hundred  seventy-nine-a of this article relating to the
    49  function, power or duty transferred to or devolved upon the board  shall
    50  be affected by this title, but the same may be prosecuted or defended in
    51  the  name of the board accountability and upon application to the court,
    52  the board shall be substituted as a party.
    53    § 1254. Assistance to the board; employees of the  inspector  general.
    54  1.   The board may use agents, employees and facilities of the inspector
    55  general.

        A. 4148                             8
     1    2. Officers and employees of the MTA may be transferred to  the  board
     2  without  examination and without loss of any civil service or retirement
     3  status or rights. Any officer or employee of the  board  who  heretofore
     4  acquired or shall hereafter acquire such position status by transfer and
     5  who  at the time of such transfer was a member of the New York state and
     6  local employees' retirement system shall continue to be a member of such
     7  system as long as he or she continues in such service, and shall contin-
     8  ue to have all the rights, privileges and obligations of  membership  in
     9  such system.
    10    §  1255. Review period. 1. Annually not later than November first, the
    11  MTA shall submit to the board an annual budget  proposal  and  financial
    12  plan.
    13    2. Not  later  than thirty days after such submission, the board shall
    14  approve or disapprove the budget proposal and financial plan.
    15    3. In the event the board shall disapprove such  budget  proposal  and
    16  financial  plan  based on disapproval of certain actions or assumptions,
    17  the board shall promptly thereafter notify the MTA of its reasons. With-
    18  in fifteen days from the receipt of  such  notification  the  MTA  shall
    19  modify  the  budget  proposal and financial plan, and unless such budget
    20  proposal and financial plan modification is approved by the  board,  the
    21  board  shall  impose  a financial plan of its own formulation as soon as
    22  practicable.
    23    § 1256. MTA financial plan.  1. The MTA shall prepare  and  submit  to
    24  the  board  a four-year financial plan, not later than the date required
    25  for submission of the annual budget. Such financial plan shall, in addi-
    26  tion to the requirements for financial plans set forth  in  subdivisions
    27  two and three of this section, contain actions sufficient to ensure with
    28  respect  to  the  major operating funds for each fiscal year of the plan
    29  that annual aggregate operating expenses for such fiscal year shall  not
    30  exceed annual aggregate operating revenues for such fiscal year.
    31    2.  Each  financial plan and financial plan modification shall conform
    32  to the requirements of paragraph  (a)  of  this  subdivision  and  shall
    33  provide  that  the  major operating funds of the MTA will be balanced in
    34  accordance with generally accepted accounting principles. The  financial
    35  plan shall be developed and approved, and may from time to time be modi-
    36  fied, in accordance with the following procedures:
    37    (a)  The  MTA shall submit to the board a certificate stating that the
    38  budget submitted to the board is  consistent  with  the  financial  plan
    39  submitted therewith and that operation within the budget is feasible.
    40    (b)  Prior to the approval or disapproval of the financial plan of the
    41  MTA by the board, the board shall verify  that  the  MTA  has  requested
    42  community,  educational  or  other  entities  to  seek  public input and
    43  comment relating to the MTA's and/or any covered subsidiaries' financial
    44  plan.  The board shall evaluate any proposals submitted to the board for
    45  cost savings and/or service delivery enhancement by the MTA.
    46    (c) If the board determines that the financial plan or financial  plan
    47  modification  provided  pursuant to paragraph (e) of this subdivision or
    48  section twelve hundred fifty-five of this title is complete and complies
    49  with the standards set forth in this subdivision, the board shall make a
    50  certification to the MTA setting forth revenue estimates  agreed  to  by
    51  the board in accordance with such determination.
    52    (d)  The  board  shall, in the event it disagrees with elements of the
    53  financial plan provided pursuant to paragraph (e) of  this  subdivision,
    54  or section twelve hundred fifty-five of this title, provide notice ther-
    55  eof  to  the  MTA,  with copies to the director of the budget, the state
    56  comptroller, the chair of the assembly ways  and  means  committee,  the

        A. 4148                             9
     1  chair  of  the senate finance committee and the ranking minority members
     2  of such committees, if, in the judgment of the board, such plan: (i)  is
     3  incomplete;  (ii)  fails to contain projections of revenues and expendi-
     4  tures that are based on reasonable and appropriate assumptions and meth-
     5  ods  of  estimations;  (iii) fails to provide that operations of the MTA
     6  and the covered subsidiaries will be conducted within the cash resources
     7  available; or (iv) fails to comply with the provisions of this title  or
     8  other requirements of law.
     9    (e)  After  the  initial  adoption  of an approved financial plan, the
    10  revenue estimates certified by the board and the financial plan shall be
    11  regularly reexamined by the board in  consultation  with  the  MTA,  the
    12  state  comptroller  and  the  covered  subsidiaries,  and  the MTA shall
    13  provide a modified financial plan in such detail and  within  such  time
    14  periods  as  the  board  may require. In the event of reductions in such
    15  revenue estimates, or in the event the MTA or a covered subsidiary shall
    16  expend funds at a rate that would exceed the aggregate expenditure limi-
    17  tation for the MTA or covered subsidiary prior to the expiration of  the
    18  fiscal  year,  the  MTA  shall  submit  a financial plan modification to
    19  effect such adjustments in revenue estimates  and  reductions  in  total
    20  expenditures  as  may  be  necessary  to conform to such revised revenue
    21  estimates or aggregate expenditure limitations.
    22    (f) If, within a time period specified by the board, the MTA fails  to
    23  make  such  modifications  after  reductions in revenue estimates, or to
    24  provide a modified plan in detail and within such time  period  required
    25  by  the  board, the board shall adopt a resolution so finding and shall,
    26  as soon as practicable thereafter, formulate and adopt a financial  plan
    27  to  be  effective until the board approves a financial plan submitted by
    28  the MTA. All budgets and operations of the MTA or a  covered  subsidiary
    29  shall  be  in conformance and compliance with the financial plan then in
    30  effect.
    31    (g) The MTA shall amend its budget or shall submit  a  financial  plan
    32  modification  for  the  approval of the board such that the MTA's budget
    33  and the approved financial plan shall be consistent. In no  event  shall
    34  the  MTA  operate  under  a budget that is inconsistent with an approved
    35  financial plan.
    36    3. The financial plan shall be in such form  and  shall  contain  such
    37  information  for  each year during which the financial plan is in effect
    38  as the board may specify, and shall include the MTA and all the  covered
    39  subsidiaries,  and  shall, in such detail as the board from time to time
    40  may prescribe, include (a) statements of all estimated revenues  and  of
    41  all  expenditures  and cash flow projections of the MTA and each covered
    42  subsidiary, and (b) an  accounting  of  the  expenditure  of  efficiency
    43  incentive grants available to the MTA for each year of the plan.
    44    4.  The  financial  plan shall include any information which the board
    45  may request to satisfy itself  that  (a)  projected  employment  levels,
    46  collective  bargaining agreements and other actions relating to employee
    47  costs, capital construction and such other  matters  as  the  board  may
    48  specify  are consistent with the provisions made for such obligations in
    49  the financial plan, (b) the MTA and the covered subsidiaries are  taking
    50  whatever  action is necessary with respect to programs mandated by state
    51  and federal law to ensure that expenditures for such programs are limit-
    52  ed to and covered by the expenditures stated in the financial plan,  (c)
    53  adequate  reserves  are  provided  to maintain essential programs in the
    54  event revenues have been overestimated  or  expenditures  underestimated
    55  for  any period, and (d) the MTA has adequate cash resources to meet its
    56  obligations. In addition, except to the extent such  reporting  require-

        A. 4148                            10
     1  ments  may  be  modified pursuant to agreement between the board and the
     2  MTA, for each fiscal year, or while bonds, notes  or  other  obligations
     3  issued  by  the  MTA  are outstanding, the MTA shall prepare a quarterly
     4  report  of  summarized  budget  data  depicting overall trends, by major
     5  category within funds, of actual revenues and  budget  expenditures  for
     6  the  entire budget rather than individual line items, as well as updated
     7  quarterly cash flow projections  of  receipts  and  disbursements.  Such
     8  reports  shall compare revenue estimates and appropriations as set forth
     9  in such budget and in the quarterly revenue and expenditure  projections
    10  submitted  therewith,  with the actual revenues and expenditures made to
    11  date. Such reports shall also compare actual receipts and  disbursements
    12  with the estimates contained in the cash flow projections, together with
    13  variances and their explanation. All quarterly reports shall be accompa-
    14  nied  by  recommendations  from  the  MTA to the board setting forth any
    15  remedial action necessary to resolve  any  unfavorable  budget  variance
    16  including  the  overestimation  of  revenues  and the underestimation of
    17  appropriations. These reports shall  be  completed  within  thirty  days
    18  after  the  end  of each quarter and shall be submitted to the inspector
    19  general, the board, the director of  the  budget  and  the  state  comp-
    20  troller.
    21    5.  For  each  financial  plan  and  financial plan modification to be
    22  prepared and  submitted  by  the  MTA  to  the  board  pursuant  to  the
    23  provisions of this section, the covered subsidiaries shall submit to the
    24  MTA  such  information  with  respect  to  their projected expenditures,
    25  revenues and cash flows for each of the years covered by such  financial
    26  plan or modification as the MTA shall determine.
    27    § 1257. Actions against the board. 1. Except in an action for wrongful
    28  death, no action or proceeding shall be prosecuted or maintained against
    29  the  board  for  personal  injury or damage to real or personal property
    30  alleged to have been sustained by reason of the negligence  or  wrongful
    31  act  of  the board or of any member, officer, agent or employee thereof,
    32  unless (a) it shall appear by and as an allegation in the  complaint  or
    33  moving  papers  that  a  notice of claim shall have been made and served
    34  upon the board, within the time limit prescribed by  and  in  compliance
    35  with  section  fifty-e of the general municipal law, (b) it shall appear
    36  by and as an allegation in the complaint or moving papers that at  least
    37  thirty  days  have  elapsed  since  the  service of such notice and that
    38  adjustment or payment thereof has been neglected or refused, and (c) the
    39  action or proceeding shall  be  commenced  within  one  year  after  the
    40  happening  of the event upon which the claim is based. An action against
    41  the board for wrongful death shall be commenced in accordance  with  the
    42  notice  of claim and time limitation provisions of title eleven of arti-
    43  cle nine of this chapter.
    44    2. Wherever a notice of claim is served upon the board, it shall  have
    45  the  right  to  demand  an  examination  of the claimant relative to the
    46  occurrence and extent of the injuries or  damages  for  which  claim  is
    47  made, in accordance with the provisions of section fifty-h of the gener-
    48  al municipal law.
    49    3.  The  board  may  require  any  person presenting for settlement an
    50  account or claim for any cause whatever against the board  to  be  sworn
    51  before  a  member,  counsel  or an attorney, officer or employee thereof
    52  designated for such purpose, concerning such account or claim  and  when
    53  so  sworn,  to answer orally as to any facts relative to such account or
    54  claim. The board shall have power to settle  or  adjust  any  claims  in
    55  favor of or against the board.

        A. 4148                            11
     1    4.  The rate of interest to be paid by the board upon any judgment for
     2  which it is liable, other than a judgment on bonds, notes or other obli-
     3  gations, shall not exceed the maximum rate of interest on judgments  and
     4  accrued  claims against municipal authorities as provided in the general
     5  municipal  law.  Interest  on  payments  of principal or interest on any
     6  bonds, notes or other obligations in default shall accrue  at  the  rate
     7  specified  in  the  general municipal law until paid or otherwise satis-
     8  fied.
     9    5. The venue of every  action,  suit  or  special  proceeding  brought
    10  against  the  board  shall  be  the supreme court in a county in the MTA
    11  region.
    12    6. Neither any member of the board nor any officer, employee or  agent
    13  of  the  board,  while  acting within the scope of his or her authority,
    14  shall be subject to any liability resulting from exercising or  carrying
    15  out any of the powers given in this title.
    16    7.  (a)  The state shall hold harmless and indemnify members, officers
    17  and employees of the board, all of whom shall  be  deemed  officers  and
    18  employees  of  the state for purposes of section seventeen of the public
    19  officers law, against any claim, demand, suit, or  judgment  arising  by
    20  reason of any act or omission to act by such member, officer or employee
    21  occurring  in the discharge of his or her duties and within the scope of
    22  his or her service on behalf of the board including any  claim,  demand,
    23  suit  or judgment based on allegations that financial loss was sustained
    24  by any person in connection with the acquisition, disposition or holding
    25  of securities or other obligations. In the  event  of  any  such  claim,
    26  demand,  suit  or  judgment,  a member, officer or employee of the board
    27  shall be held harmless and indemnified, notwithstanding the  limitations
    28  of  subdivision  one  of  section  seventeen of the public officers law,
    29  unless such individual is found by a final judicial determination not to
    30  have acted, in good faith, for a purpose  which  he  or  she  reasonably
    31  believed  to  be  in  the  best interest of the board or not to have had
    32  reasonable cause to believe that his or her conduct was lawful.
    33    (b) In connection with any such claim, demand, suit, or judgment,  any
    34  member,  officer or employee of the board shall be entitled to represen-
    35  tation by private counsel of his or her choice  in  any  civil  judicial
    36  proceeding  whenever  the  attorney general determines based upon his or
    37  her investigation and review of the facts and circumstances of the  case
    38  that  representation by the attorney general would be inappropriate. The
    39  attorney general shall notify the individual in writing of such determi-
    40  nation that the individual is entitled  to  be  represented  by  private
    41  counsel.  The attorney general may require, as a condition to payment of
    42  the fees and expenses of such representative, that appropriate groups of
    43  such individuals be represented by the same counsel. If  the  individual
    44  or  groups of individuals is entitled to representation by private coun-
    45  sel under the provisions of this section, the attorney general shall  so
    46  certify  to the state comptroller.  Reasonable attorneys' fees and liti-
    47  gation expenses shall be paid by the state to such private counsel  from
    48  time  to  time  during  the  pendency of the civil action or proceeding,
    49  subject to certification that the individual is  entitled  to  represen-
    50  tation under the terms and conditions of this section by the board, upon
    51  the  audit  and warrant of the state comptroller. The provisions of this
    52  subdivision shall be in addition to and shall not supplant any  indemni-
    53  fication  or  other  benefits  heretofore  or  hereafter  conferred upon
    54  members, officers, or employees of and representatives to the  board  by
    55  section  seventeen of the public officers law, by action of the board or
    56  otherwise. The provisions  of  this  subdivision  shall  inure  only  to

        A. 4148                            12
     1  members,  officers  and  employees  of  the  board, shall not enlarge or
     2  diminish the rights of any other party, and shall not impair,  limit  or
     3  modify  the  rights  and  obligations of any insurer under any policy of
     4  insurance.
     5    §  1258.  Audits. 1. Any accounts of the board shall be subject to the
     6  audit of the state comptroller. In addition, the board shall be  subject
     7  to  an  annual  financial  audit  performed  by an independent certified
     8  accountant selected by the board. Such audit report shall  be  submitted
     9  to  the  board,  the  inspector  general,  the governor, the state comp-
    10  troller, the chair and ranking minority member  of  the  senate  finance
    11  committee and the chair and ranking minority member of the assembly ways
    12  and means committee.
    13    2.  For each fiscal year, and within one hundred twenty days after the
    14  close of the MTA's fiscal year, the MTA shall submit its audited  finan-
    15  cial statements to the board.
    16    §  1259.  Effect of inconsistent provisions. Insofar as the provisions
    17  of this title are inconsistent with the provisions  of  any  other  act,
    18  general  or  special law (including article nine of this chapter), or of
    19  any charter, local law, ordinance or resolution of any municipality, the
    20  provisions of this title shall be controlling. Nothing contained in this
    21  section shall be held to supplement or otherwise expand  the  powers  or
    22  duties of the board otherwise set forth in this title.
    23    §  1259-a.  Separability; construction. If any clause, sentence, para-
    24  graph, section, or part of this title shall be adjudged by any court  of
    25  competent  jurisdiction  to  be invalid, such judgment shall not affect,
    26  impair or invalidate the remainder thereof, but shall be confined in its
    27  operation to the clause, sentence, paragraph, section, or  part  thereof
    28  involved  in  the  controversy  in  which  such judgment shall have been
    29  rendered. The provisions of this title shall be liberally  construed  to
    30  assist the effectuation of the public purposes furthered hereby.
    31    §  3.  This  act  shall take effect on the sixtieth day after it shall
    32  have become a law;  provided,  however,  that  the  governor  is  hereby
    33  authorized and directed to appoint all seven members of the metropolitan
    34  transportation  authority  fiscal  oversight  control board on or before
    35  such effective date.
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