S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  3278

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            January 24, 2013
                               ___________

Introduced  by M. of A. RABBITT -- read once and referred to the Commit-
  tee on Corporations, Authorities and Commissions

AN ACT to amend the public authorities law, in relation to the  election
  by  certain counties to withdraw from the metropolitan commuter trans-
  portation district; and in relation  to  permitting  the  counties  of
  Orange and Rockland to make such election

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 1279-b of the public authorities law, as  added  by
chapter 669 of the laws of 1986, the opening paragraph of subdivision 1,
the opening paragraph of paragraph (a) of subdivision 1 and subdivisions
3  and  5  as  amended by chapter 670 of the laws of 1986, is amended to
read as follows:
  S 1279-b.  Transition--election  to  withdraw  from  the  metropolitan
commuter  transportation district. 1. The counties of [Dutchess,] Orange
and Rockland shall have an option  to  withdraw  from  the  metropolitan
commuter transportation district and have such withdrawal take effect on
either:  (a)  [January] APRIL first, [nineteen hundred eighty-seven] TWO
THOUSAND FOURTEEN. If  any  such  county  plans  to  withdraw  from  the
district  on  [January] APRIL first, [nineteen hundred eighty-seven] TWO
THOUSAND FOURTEEN, it shall (i) no later than  seventy-five  days  after
the  effective  date of this section, furnish the commissioner of trans-
portation, and chairman of the authority and the  other  counties  which
have  an option to withdraw, a resolution adopted by the county legisla-
ture providing notice of intent to withdraw, (ii) on or before [October]
JANUARY first, [nineteen  hundred  eighty-six]  TWO  THOUSAND  THIRTEEN,
furnish  to  the  commissioner  of  transportation,  the chairman of the
authority and other counties which have an option to withdraw, a  resol-
ution adopted by the county legislature providing for a public transpor-
tation  plan. For the purposes of this section, a "public transportation
plan" shall mean a plan that maintains adequate  and  continuous  public

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05402-01-3
              

A. 3278                             2

transportation  services  from the withdrawing county to the city of New
York or any terminus previously served, provides a reasonable  level  of
rail  passenger  service,  provides  a  schedule  for  implementing such
service,  protects  the  public  investment  in  the rail transportation
system and any other criteria deemed necessary by  the  commissioner  of
transportation.  SUCH  PUBLIC TRANSPORTATION PLAN SHALL INCLUDE, BUT NOT
BE LIMITED TO, AN AGREEMENT BY WHICH SUCH COUNTY SHALL  BE  ENTITLED  TO
LEASE  THE  FACILITIES  AND SERVICES COMPRISING SUCH RAIL TRANSPORTATION
SYSTEM AT FAIR MARKET VALUE AND UNDER SUCH TERMS AND  CONDITIONS  TO  BE
DETERMINED  AS  SET  FORTH  IN SUBDIVISION SIX OF THIS SECTION. Prior to
withdrawal pursuant to this paragraph or paragraph (b) of this  subdivi-
sion,  a  county must receive approval of its public transportation plan
pursuant to paragraph (c) of this subdivision, (iii) on or before Decem-
ber fifteenth, [nineteen  hundred  eighty-six]  TWO  THOUSAND  THIRTEEN,
furnish  the commissioner of transportation, a copy of an agreement with
the authority or an operator of rail passenger service for the provision
of rail passenger service to and from such county and the  city  of  New
York  or  any terminus previously served. IF SUCH AGREEMENT HAS NOT BEEN
CONCLUDED BY THE RESPECTIVE PARTIES,  AND  A  PARTY  HAS  EXERCISED  ITS
RIGHTS  PURSUANT TO SUBDIVISION SIX OF THIS SECTION, THE APPROVAL OF THE
COMMISSIONER OF TRANSPORTATION SHALL NOT BE REQUIRED AND  THE  AGREEMENT
OR  ORDER  SET FORTH IN SUBDIVISION SIX OF THIS SECTION, SHALL DETERMINE
THE TERMS AND CONDITIONS OF SUCH WITHDRAWAL. If  a  county  planning  to
withdraw  on  [January] APRIL first, [nineteen hundred eighty-seven] TWO
THOUSAND FOURTEEN is unable to withdraw because it could  not  meet  the
requirements  of  this  paragraph,  it may elect to withdraw pursuant to
paragraph (b) of this subdivision hereafter.
  (b)  January  first,  [nineteen  hundred  eighty-eight]  TWO  THOUSAND
FIFTEEN  or  January  first, [nineteen hundred eighty-nine] TWO THOUSAND
SIXTEEN. If any such county plans to withdraw on either  January  first,
[nineteen  hundred  eighty-eight] TWO THOUSAND FIFTEEN or January first,
[nineteen hundred eighty-nine] TWO THOUSAND SIXTEEN,  it  shall  (i)  no
later than ninety days after the first of January of the year immediate-
ly  preceding  the  year in which such county plans to withdraw from the
district, furnish the commissioner of transportation,  the  chairman  of
the authority and the other counties which have an option to withdraw, a
resolution  adopted by the county legislature providing notice of intent
to withdraw from the district, (ii) no later  than  one  hundred  twenty
days  after  the  first of January of the year immediately preceding the
year in which such county plans to withdraw from the district furnish to
the commissioner of transportation, the chairman of  the  authority  and
the  counties  which  have an option to withdraw a resolution adopted by
the  county  legislature  providing  a  public  transportation  plan  as
described  in this section, (iii) on or before October first of the year
immediately preceding the year in which such county  plans  to  withdraw
from  the  district,  furnish to the commissioner a copy of an agreement
with the authority or an operator of  rail  passenger  service  for  the
provision of rail passenger service to and from such county and the city
of New York or any terminus previously served. IF SUCH AGREEMENT HAS NOT
BEEN  CONCLUDED BY THE RESPECTIVE PARTIES, AND A PARTY HAS EXERCISED ITS
RIGHTS PURSUANT TO SUBDIVISION SIX OF THIS SECTION, THE APPROVAL OF  THE
COMMISSIONER  OF  TRANSPORTATION SHALL NOT BE REQUIRED AND THE AGREEMENT
OR ORDER SET FORTH IN SUCH SUBDIVISION SIX SHALL DETERMINE THE TERMS AND
CONDITIONS OF SUCH WITHDRAWAL.
  (c) No later than thirty days after receipt of the public  transporta-
tion  plan  the commissioner of transportation shall, in writing, either

A. 3278                             3

approve  such  plan  as  conforming  with  the  requirements  heretofore
described  or  disapprove such plan as failing to meet such requirements
and the reasons therefor. Disapproval of a plan  shall  not  prohibit  a
county from resubmitting a public transportation plan and such resubmit-
ted  plan  shall  be  approved or disapproved no later than fifteen days
after receipt by the commissioner of transportation. The  public  trans-
portation  plan  shall be subject to any state or federal public hearing
requirements which the authority would be subject to  if  the  authority
made the changes proposed by such plan.
  (d)  Any  such  county  which plans to withdraw from the district must
meet the requirements of this section prior to  the  effective  date  of
withdrawal,  and  no  withdrawal  for the purposes of this section shall
take effect unless such county furnishes the resolutions  and  agreement
prior to the effective date of withdrawal.
  2. The authority and any subsidiary corporation of the authority shall
enter  into an agreement or agreements with a county that plans to with-
draw from the district to transfer and assign to such county all author-
ity and subsidiary railroad facilities and operations, rights and  obli-
gations,  and  contract  rights  and  obligations,  including  operating
contract rights and obligations, which are owned,  operated,  maintained
or  used  directly or by contract or which are otherwise involved in the
provision of railroad services to such counties.  Such  agreement  shall
provide,  in  the  event  a  facility, operation, right or obligation is
necessary and material to the provision of rail passenger service in the
district or  is  not  assignable  under  applicable  bond  covenants  or
contracts  or the parties agree that it should not be assigned, that the
authority or subsidiary thereof shall continue to hold and be  responsi-
ble  for  such  facility,  operation,  right or obligation and that such
county shall reimburse to the authority that portion of the cost to  the
authority  or  subsidiary  of its retention of such facility, operation,
right or obligation that is allocable [to] WITHIN such  county.  If  the
parties agree that the authority or subsidiary thereof shall operate the
railroad  facilities  in a county after the effective date of such coun-
ty's withdrawal, the agreement also shall  provide  for  the  terms  and
conditions of the operation of such service.
  3.  Within  forty-five days of the effective date of this section, the
authority and any subsidiary corporation of the authority shall  provide
to  the counties of [Dutchess,] Orange and Rockland a written statement,
including cost estimates and the useful life, if  any,  of  all  of  its
facilities, operations, rights and obligations relating to the provision
of rail service in such counties.
  4.  The  authority  and any subsidiary corporation of the authority is
authorized to enter into an agreement or agreements with a  county  that
plans  to withdraw from the district, pursuant to which the authority or
subsidiary thereof will provide  technical  assistance  to  such  county
prior  to, during and after the withdrawal, with respect to the transfer
of ownership, operation, maintenance  and  use  of  railroad  facilities
within such county. Such agreement may provide that the county reimburse
the  authority  or  its subsidiary for the cost to the authority and its
subsidiary for the provision of such technical assistance.
  5. The authority shall have no obligation to undertake or continue any
project or part thereof in a current  or  future  capital  program  plan
which  pertains  to  railroad  facilities within or services to a county
that withdraws from the district on or after such date of withdrawal nor
shall the authority enter into any contract for a project or part there-
of which would increase liabilities pursuant to subdivision [six]  SIX-A

A. 3278                             4

of  this section in a county after such county notifies the authority of
its intent to withdraw as provided in subdivision one of  this  section,
provided, however, that if the authority has executed a contract for the
effectuation  of  a project or part thereof in a capital program plan in
such county, it shall be assigned to  such  county  in  accordance  with
subdivision  two of this section, unless the parties agree that it shall
not be assigned and that the authority or its subsidiary shall  continue
to  be  responsible  therefor, in which event the county shall reimburse
the authority or its subsidiary in accordance  with  the  provisions  of
subdivision two of this section.
  6. SHOULD THE COUNTIES OF ORANGE OR ROCKLAND SEEK TO WITHDRAW FROM THE
DISTRICT  PURSUANT  TO  THIS SECTION, ANY SUCH COUNTY AND THE AUTHORITY,
AND/OR, IF APPROPRIATE ANY SUBSIDIARY CORPORATION OF THE AUTHORITY SHALL
NEGOTIATE IN GOOD FAITH ANY AGREEMENT REQUIRED BY THIS SECTION FOR WITH-
DRAWAL FROM THE DISTRICT. SUCH NEGOTIATIONS  SHALL  COMMENCE  NOT  LATER
THAN  FIFTEEN  DAYS AFTER THE PUBLIC TRANSPORTATION PLAN PREPARED BY ANY
SUCH COUNTY HAS BEEN SUBMITTED BY SUCH COUNTY TO THE AUTHORITY,  AND/OR,
IF  APPROPRIATE,  A  SUBSIDIARY AUTHORITY. IN NO EVENT SHALL A COUNTY BE
REQUIRED TO NEGOTIATE WITH BOTH THE AUTHORITY AND A SUBSIDIARY  AUTHORI-
TY.  THE  NEGOTIATIONS  CONDUCTED BY AND THE ACTIONS OF THE AUTHORITY OR
SUBSIDIARY AUTHORITY SHALL BE BINDING. IF  AFTER  SIXTY  DAYS  FROM  THE
COMMENCEMENT OF SUCH NEGOTIATIONS OR AT ANY TIME THEREAFTER THE AUTHORI-
TY  OR  ANY  SUBSIDIARY  CORPORATION  OF  THE AUTHORITY AND A COUNTY ARE
UNABLE TO REACH AN AGREEMENT REQUIRED BY THIS  SECTION  FOR  SUCH  WITH-
DRAWAL,  EITHER  PARTY  MAY MAKE APPLICATION TO A JUSTICE OF THE SUPREME
COURT PRESIDING IN THE COUNTIES OF ORANGE OR ROCKLAND FOR APPOINTMENT OF
A SPECIAL REFEREE. EACH  PARTY  SHALL  SUBMIT  TO  THE  JUSTICE  A  LIST
CONTAINING  THE  NAMES  AND  QUALIFICATIONS  OF FIVE PERSONS TO SERVE AS
SPECIAL REFEREE. THE JUSTICE SHALL SELECT  ONE  PERSON  FROM  AMONG  THE
NAMES  SUBMITTED BY THE PARTIES TO SERVE AS SPECIAL REFEREE. THE SPECIAL
REFEREE SHALL MEDIATE THE NEGOTIATIONS FOR WITHDRAWAL FOR A PERIOD OF NO
LONGER THAN SIXTY DAYS. IF, AT THE END OF SAID  SIXTY  DAY  PERIOD,  THE
PARTIES  ARE  NOT  ABLE  TO  REACH AGREEMENT, THE SPECIAL REFEREE SHALL,
WITHIN THIRTY DAYS THEREAFTER, RECOMMEND THE TERMS OF THE WITHDRAWAL  TO
THE JUSTICE. THE JUSTICE SHALL REVIEW THE RECOMMENDATIONS OF THE REFEREE
AND  THE  POSITIONS  OF  THE  PARTIES  THEREON  AND SHALL ISSUE AN ORDER
SETTING FORTH THE TERMS OF THE WITHDRAWAL. NOTWITHSTANDING THE ENTRY  OF
SUCH  ORDER,  A  COUNTY  SHALL  HAVE FIFTEEN DAYS FROM THE ENTRY OF SUCH
ORDER TO TERMINATE SUCH PROCEEDING. UPON THE  TIMELY  EXERCISE  OF  SUCH
RIGHT TO TERMINATE, SUCH PROCEEDING SHALL BE DEEMED NULL AND VOID AND OF
NO FURTHER EFFECT. IF A COUNTY HAS NOT EXERCISED ITS RIGHT TO TERMINATE,
SAID  ORDER  SHALL BE SUBJECT TO APPELLATE REVIEW IN ACCORDANCE WITH THE
CIVIL PRACTICE LAW AND RULES, PROVIDED THAT ANY APPEAL  FROM  THE  ORDER
SHALL BE GRANTED EXPEDITED STATUS.
  6-A.  Any  county which withdraws from the district shall reimburse to
the authority or its subsidiary, within the time period agreed to by the
parties, any capital expenditures heretofore undertaken by the authority
or its subsidiary for railroad facilities only within such county  which
were financed by commuter railroad revenue bonds issued by the metropol-
itan  transportation authority pursuant to section twelve hundred sixty-
nine of this [article] TITLE and are assigned to such county in  accord-
ance with the provisions of subdivision two of this section.
  [7.] 6-B. The obligations of a county that withdraws from the district
to reimburse the authority and any subsidiary corporation of the author-
ity  for  the  costs  of  operation,  maintenance  and  use of passenger
stations pursuant to section twelve hundred seventy-seven of this [arti-

A. 3278                             5

cle] TITLE, shall continue for any such costs incurred up to the  effec-
tive  date  of  the  county's withdrawal from the district and for costs
incurred thereafter that result from acts preceding such withdrawal, and
the  applicability  of  the  payment  provisions  and procedures of such
section twelve hundred seventy-seven to such county shall continue ther-
eafter with respect to the aforesaid costs.
  [8.] 7. In the event of a county's failure  to  make  payment  of  any
monies  determined by the authority to be owed and due it or any subsid-
iary corporation of the authority pursuant to the terms of any agreement
entered into pursuant to this section, the authority  is  authorized  to
recover  such  payments  in the same manner as in section twelve hundred
seventy-seven of this [article] TITLE and the  state  comptroller  shall
withhold  and  pay monies to the authority in accordance with the proce-
dures set forth in that section.
  [9.] 8. The term of office of any resident of a county that  withdraws
from  the  district  under this section, as a member of the board of the
authority, the Metro-North rail commuter council or the management advi-
sory board, which is based upon residence in such county,  shall  termi-
nate  upon the county's withdrawal and the office shall be deemed vacant
and filled in the manner provided by law.
  [10.] 9. The provisions of this section and all agreements  undertaken
in  accordance herewith shall be subject to the rights of the holders of
any outstanding bonds or notes issued by the authority.
  S 2. This act shall take effect immediately.