Bill Text: NY S00525 | 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) 2019-01-09 - REFERRED TO TRANSPORTATION [S00525 Detail]

Download: New_York-2019-S00525-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                           525
                               2019-2020 Regular Sessions
                    IN SENATE
                                       (Prefiled)
                                     January 9, 2019
                                       ___________
        Introduced  by Sen. CARLUCCI -- read twice and ordered printed, and when
          printed to be committed to the Committee on Transportation
        AN ACT to amend the public authorities law, in relation to requiring the
          metropolitan commuter transportation authority to obtain approval from
          the state comptroller to increase fares
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     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
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00569-01-9

        S. 525                              2
     1  five of this title or the provisions of any other law to  the  contrary,
     2  so  long as the authority shall have outstanding and unpaid bonds, notes
     3  or other obligations issued pursuant to section twelve  hundred  seven-b
     4  of  this  title, or the metropolitan transportation authority or Tribor-
     5  ough bridge and tunnel  authority  shall  have  outstanding  and  unpaid
     6  bonds,  notes  or other obligations secured by or payable from, in whole
     7  or in part, the revenues, assets or other monies of the authority or its
     8  subsidiary corporations, the authority shall have the power at all times
     9  to fix or adjust the rate or rates of fare to be charged for the use  of
    10  any  transit  facility  operated  by the authority, upon approval of the
    11  state comptroller pursuant to section  twelve  hundred  sixty-five-c  of
    12  this  article,  as  may,  in  the judgment of the board, be necessary to
    13  produce sufficient revenues to pay, as the same shall  become  due,  the
    14  principal  of and interest on such bonds, notes and other obligations of
    15  the authority,  metropolitan  transportation  authority  and  Triborough
    16  bridge  and  tunnel  authority,  together with the maintenance of proper
    17  reserves therefor, in addition to paying as the same  shall  become  due
    18  the  expenses of operation of the authority. The authority, metropolitan
    19  transportation authority and Triborough  bridge  and  tunnel  authority,
    20  shall  be  authorized  to contract with the holders of such bonds, notes
    21  and other obligations with respect to the exercise of the power  author-
    22  ized  by this section. In furtherance of the mandate of the metropolitan
    23  transportation authority to develop and implement a unified mass  trans-
    24  portation  policy  for the metropolitan commuter transportation district
    25  and the exercise of its powers, including  the  power  to  issue  notes,
    26  bonds  and other obligations secured in whole or in part by the revenues
    27  of the  authority  and  its  subsidiaries,  metropolitan  transportation
    28  authority  and  its  subsidiaries,  and the Triborough bridge and tunnel
    29  authority, the authority shall join with the metropolitan transportation
    30  authority in connection with the establishment, levy and  collection  of
    31  fares, tolls, rentals, rates, charges and other fees for the transporta-
    32  tion  of  passengers on any transit facilities operated by authority and
    33  its subsidiaries, including any changes thereto.
    34    § 3. Subdivision 3 of section 1266 of the public authorities  law,  as
    35  amended  by  chapter  314  of  the  laws  of 1981, is amended to read as
    36  follows:
    37    3. [The] Except as provided in section twelve hundred sixty-five-c  of
    38  this title, the authority may establish, levy and collect or cause to be
    39  established,  levied  and  collected and, in the case of a joint service
    40  arrangement, join with others in the establishment, levy and  collection
    41  of  such  fares, tolls, rentals, rates, charges and other fees as it may
    42  deem necessary, convenient or desirable for the use and operation of any
    43  transportation facility and related services operated by  the  authority
    44  or by a subsidiary corporation of the authority or under contract, lease
    45  or  other  arrangement,  including  joint service arrangements, with the
    46  authority. Any such fares, tolls, rentals, rates, charges or other  fees
    47  for  the  transportation  of passengers shall be established and changed
    48  only if approved by resolution of the authority adopted by not less than
    49  a majority vote of the whole number of members of the authority then  in
    50  office,  with  the chairman having one additional vote in the event of a
    51  tie vote, except as provided in section twelve hundred  sixty-five-c  of
    52  this  title,  and  only  after  a public hearing, provided however, that
    53  fares, tolls, rentals, rates, charges or other fees for the  transporta-
    54  tion of passengers on any transportation facility which are in effect at
    55  the  time  that the then owner of such transportation facility becomes a
    56  subsidiary corporation of the authority or at the time that operation of

        S. 525                              3
     1  such transportation  facility  is  commenced  by  the  authority  or  is
     2  commenced  under  contract,  lease or other arrangement, including joint
     3  service arrangements, with the authority  may  be  continued  in  effect
     4  without  such  a hearing. Such fares, tolls, rentals, rates, charges and
     5  other fees shall be established as may in the judgment of the  authority
     6  be  necessary  to  maintain the combined operations of the authority and
     7  its subsidiary corporations on a self-sustaining basis.  The said  oper-
     8  ations  shall  be deemed to be on a self-sustaining basis as required by
     9  this title, when the authority is able to pay or cause to be  paid  from
    10  revenue  and  any  other  funds  or  property  actually available to the
    11  authority and its subsidiary corporations (a) as the same  shall  become
    12  due,  the  principal  of  and  interest on the bonds and notes and other
    13  obligations of  the  authority  and  of  such  subsidiary  corporations,
    14  together  with the maintenance of proper reserves therefor, (b) the cost
    15  and expense of keeping the properties and assets of  the  authority  and
    16  its  subsidiary  corporations  in good condition and repair, and (c) the
    17  capital and operating expenses  of  the  authority  and  its  subsidiary
    18  corporations.  The  authority may contract with the holders of bonds and
    19  notes with respect to the exercise of  the  powers  authorized  by  this
    20  section.  No  acts  or  activities  taken or proposed to be taken by the
    21  authority or any subsidiary of the authority pursuant to the  provisions
    22  of  this subdivision shall be deemed to be "actions" for the purposes or
    23  within the meaning of article eight of  the  environmental  conservation
    24  law.
    25    §  4.  The  public  authorities law is amended by adding a new section
    26  1265-c to read as follows:
    27     § 1265-c. Approval of  state  comptroller.  1.  The  authority  shall
    28  submit  a  written  report to the state comptroller prior to the date of
    29  any increase in fares for the transportation of passengers takes effect.
    30  Such report  shall  include  a  justification  for  such  proposed  fare
    31  increase and the current financial condition of the authority. The state
    32  comptroller  may  require  any additional data or information that he or
    33  she deems necessary in such report. No proposed fare increase shall take
    34  effect until approved by resolution of the authority pursuant to section
    35  twelve hundred sixty-six of this title and approved by the  state  comp-
    36  troller.
    37    2.  This  section  shall not be deemed to adversely affect or diminish
    38  any public hearing requirements.
    39    § 5. This act shall take effect on the ninetieth day  after  it  shall
    40  have  become  a  law  and shall apply to any fares increased on or after
    41  such effective date.
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