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

                                   751

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 5, 2011
                               ___________

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 TWELVE. If any such county plans to withdraw from the  district
on  [January]  APRIL first, [nineteen hundred eighty-seven] TWO THOUSAND
TWELVE, it shall (i) no later than seventy-five days after the effective
date of this section, furnish the commissioner  of  transportation,  and
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, (ii) on or before [October] JANUARY first,
[nineteen hundred  eighty-six]  TWO  THOUSAND  ELEVEN,  furnish  to  the
commissioner  of transportation, the chairman of the authority and other
counties which have an option to withdraw, a resolution adopted  by  the
county  legislature  providing for a public transportation plan. For the
purposes of this section, a "public transportation plan"  shall  mean  a

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

                                                           LBD03892-01-1

A. 751                              2

plan  that  maintains  adequate  and  continuous  public  transportation
services from the withdrawing county to the city  of  New  York  or  any
terminus  previously served, provides a reasonable level of rail passen-
ger 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 subdivision, a  county  must  receive
approval  of its public transportation plan pursuant to paragraph (c) of
this subdivision, (iii)  on  or  before  December  fifteenth,  [nineteen
hundred  eighty-six]  TWO  THOUSAND  ELEVEN, 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 SUBDIVI-
SION 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 TWELVE 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 THIR-
TEEN or January first, [nineteen hundred eighty-nine] TWO THOUSAND FOUR-
TEEN. If any such county plans to  withdraw  on  either  January  first,
[nineteen  hundred eighty-eight] TWO THOUSAND THIRTEEN or January first,
[nineteen hundred eighty-nine] TWO THOUSAND FOURTEEN, 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.

A. 751                              3

  (c) No later than thirty days after receipt of the public  transporta-
tion  plan  the commissioner of transportation shall, in writing, either
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

A. 751                              4

shall the authority enter into any contract for a project or part there-
of  which would increase liabilities pursuant to subdivision [six] SIX-A
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-

A. 751                              5

ity for the  costs  of  operation,  maintenance  and  use  of  passenger
stations pursuant to section twelve hundred seventy-seven of this [arti-
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.