Bill Text: NY S05049 | 2019-2020 | General Assembly | Amended

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Bill Title: Enacts the statewide transportation authority reinvestment (STAR) act of 2020; exempts mass transit authorities from bond issuance charges.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed - Dead) 2020-01-21 - REPORTED AND COMMITTED TO FINANCE [S05049 Detail]

Download: New_York-2019-S05049-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         5049--A

                               2019-2020 Regular Sessions

                    IN SENATE

                                      April 4, 2019
                                       ___________

        Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
          printed to be committed to the Committee on Corporations,  Authorities
          and  Commissions  --  recommitted  to  the  Committee on Corporations,
          Authorities and Commissions in accordance with Senate Rule 6,  sec.  8
          --  committee  discharged,  bill amended, ordered reprinted as amended
          and recommitted to said committee

        AN ACT to amend the public authorities law,  in  relation  to  exempting
          mass transit authorities from bond issuance charges

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Short title. This act shall be known and may  be  cited  as
     2  the  "statewide  transportation  authority  reinvestment  (STAR)  act of
     3  2020".
     4    § 2. Legislative intent. The  public  authorities  that  provide  mass
     5  transit  service  in  the  areas  of  New York City, Long Island, Hudson
     6  Valley, Buffalo, Rochester, Albany, Syracuse and their suburbs are given
     7  the power to issue debt, which they can use to fund capital projects  or
     8  operations.  However,  state  law  requires these authorities to pay the
     9  state a fee each time they issue bonds, totaling  up  to  almost  1%  of
    10  bonds  issued  depending  on the amount of the issuance. The legislature
    11  finds that in a time when these authorities face increasing fiscal chal-
    12  lenges, the fees these authorities must pay to the  state  rob  them  of
    13  resources to maintain reliable, attractive bus and rail service which is
    14  an  inherent public good. It is the intent of the legislature to relieve
    15  transportation authorities of the burden of acting as a  revenue  source
    16  for  the  state when they invest in their operations and capital infras-
    17  tructure, and that  these  authorities  use  the  savings  accrued  from
    18  exemptions  from this fee to maintain service levels and prevent service
    19  cuts, or for transformative capital projects.
    20    § 3. Section 2 of the public authorities law is amended  by  adding  a
    21  new subdivision 7 to read as follows:

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11065-02-0
        S. 5049--A                          2

     1    7. "mass transit authority" shall mean the metropolitan transportation
     2  authority, New York City transit authority, Triborough bridge and tunnel
     3  authority,  Capital  District transportation authority, Central New York
     4  regional transportation authority, Rochester-Genesee regional  transpor-
     5  tation  authority,  Niagara  Frontier  transportation  authority and all
     6  subsidiaries thereof. It shall also refer to any local or state authori-
     7  ty created  for  the  purpose  of  operating  transportation  facilities
     8  including,  but  not  limited  to railroad and/or omnibus facilities. In
     9  addition, it shall refer to any local or state authority whose  chairman
    10  and  members  also serve as the chairman and members of a local or state
    11  authority created for the purpose of operating transportation facilities
    12  including, but not limited to railroad and/or omnibus facilities.
    13    § 4. Subdivision 4 of section 2976 of the public authorities  law,  as
    14  added  by  section  12  of part E of chapter 494 of the laws of 2009, is
    15  amended to read as follows:
    16    4. The provisions of subdivisions one and two of  this  section  shall
    17  not  apply  to  bonds issued by mass transit authorities and to recovery
    18  act bonds issued by the state of New York municipal bond bank agency  in
    19  connection with local American Recovery and Reinvestment Act pursuant to
    20  section two thousand four hundred thirty-six-b of this chapter.
    21    § 5. This act shall take effect immediately.