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 - Dead) 2020-07-13 - held for consideration in 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 Section 1279-a of the public authorities law is REPEALED. 2 § 2.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. LBD05715-01-9A. 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,A. 4148 3 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;A. 4148 4 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 beA. 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 thisA. 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; andA. 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, theA. 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 toA. 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.