STATE OF NEW YORK ________________________________________________________________________ 3272 2025-2026 Regular Sessions IN ASSEMBLY January 27, 2025 ___________ Introduced by M. of A. BRABENEC -- 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: 1 Section 1. Section 1279-b of the public authorities law, as added by 2 chapter 669 of the laws of 1986, the opening paragraph of subdivision 1, 3 the opening paragraph of paragraph (a) of subdivision 1 and subdivisions 4 3 and 5 as amended by chapter 670 of the laws of 1986, is amended to 5 read as follows: 6 § 1279-b. Transition--election to withdraw from the metropolitan 7 commuter transportation district. 1. The counties of [Dutchess,] Orange 8 and Rockland shall have an option to withdraw from the metropolitan 9 commuter transportation district and have such withdrawal take effect on 10 either: (a) [January] April first, [nineteen hundred eighty-seven] two 11 thousand twenty-six. If any such county plans to withdraw from the 12 district on [January] April first, [nineteen hundred eighty-seven] two 13 thousand twenty-six, it shall (i) no later than seventy-five days after 14 the effective date of this section, furnish the commissioner of trans- 15 portation, and [chairman] chairperson of the authority and the other 16 counties which have an option to withdraw, a resolution adopted by the 17 county legislature providing notice of intent to withdraw, (ii) on or 18 before [October] January first, [nineteen hundred eighty-six] two thou- 19 sand twenty-five, furnish to the commissioner of transportation, the 20 [chairman] chairperson of the authority and other counties which have an 21 option to withdraw, a resolution adopted by the county legislature 22 providing for a public transportation plan. For the purposes of this 23 section, a "public transportation plan" shall mean a plan that maintains EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01099-01-5
A. 3272 2 1 adequate and continuous public transportation services from the with- 2 drawing county to the city of New York or any terminus previously 3 served, provides a reasonable level of rail passenger service, provides 4 a schedule for implementing such service, protects the public investment 5 in the rail transportation system and any other criteria deemed neces- 6 sary by the commissioner of transportation. Such public transportation 7 plan shall include, but not be limited to, an agreement by which such 8 county shall be entitled to lease the facilities and services comprising 9 such rail transportation system at fair market value and under such 10 terms and conditions to be determined as set forth in subdivision six of 11 this section. Prior to withdrawal pursuant to this paragraph or para- 12 graph (b) of this subdivision, a county must receive approval of its 13 public transportation plan pursuant to paragraph (c) of this subdivi- 14 sion, (iii) on or before December fifteenth, [nineteen hundred eighty- 15 six] two thousand twenty-five, furnish the commissioner of transporta- 16 tion, a copy of an agreement with the authority or an operator of rail 17 passenger service for the provision of rail passenger service to and 18 from such county and the city of New York or any terminus previously 19 served. If such agreement has not been concluded by the respective 20 parties, and a party has exercised its rights pursuant to subdivision 21 six of this section, the approval of the commissioner of transportation 22 shall not be required and the agreement or order set forth in subdivi- 23 sion six of this section, shall determine the terms and conditions of 24 such withdrawal. If a county planning to withdraw on [January] April 25 first, [nineteen hundred eighty-seven] two thousand twenty-six is unable 26 to withdraw because it could not meet the requirements of this para- 27 graph, it may elect to withdraw pursuant to paragraph (b) of this subdi- 28 vision hereafter. 29 (b) January first, [nineteen hundred eighty-eight] two thousand twen- 30 ty-seven or January first, [nineteen hundred eighty-nine] two thousand 31 twenty-eight. If any such county plans to withdraw on either January 32 first, [nineteen hundred eighty-eight] two thousand twenty-seven or 33 January first, [nineteen hundred eighty-nine] two thousand twenty-eight, 34 it shall (i) no later than ninety days after the first of January of the 35 year immediately preceding the year in which such county plans to with- 36 draw from the district, furnish the commissioner of transportation, the 37 [chairman] chairperson of the authority and the other counties which 38 have an option to withdraw, a resolution adopted by the county legisla- 39 ture providing notice of intent to withdraw from the district, (ii) no 40 later than one hundred twenty days after the first of January of the 41 year immediately preceding the year in which such county plans to with- 42 draw from the district furnish to the commissioner of transportation, 43 the [chairman] chairperson of the authority and the counties which have 44 an option to withdraw a resolution adopted by the county legislature 45 providing a public transportation plan as described in this section, 46 (iii) on or before October first of the year immediately preceding the 47 year in which such county plans to withdraw from the district, furnish 48 to the commissioner a copy of an agreement with the authority or an 49 operator of rail passenger service for the provision of rail passenger 50 service to and from such county and the city of New York or any terminus 51 previously served. If such agreement has not been concluded by the 52 respective parties, and a party has exercised its rights pursuant to 53 subdivision six of this section, the approval of the commissioner of 54 transportation shall not be required and the agreement or order set 55 forth in such subdivision six shall determine the terms and conditions 56 of such withdrawal.
A. 3272 3 1 (c) No later than thirty days after receipt of the public transporta- 2 tion plan the commissioner of transportation shall, in writing, either 3 approve such plan as conforming with the requirements heretofore 4 described or disapprove such plan as failing to meet such requirements 5 and the reasons therefor. Disapproval of a plan shall not prohibit a 6 county from resubmitting a public transportation plan and such resubmit- 7 ted plan shall be approved or disapproved no later than fifteen days 8 after receipt by the commissioner of transportation. The public trans- 9 portation plan shall be subject to any state or federal public hearing 10 requirements which the authority would be subject to if the authority 11 made the changes proposed by such plan. 12 (d) Any such county which plans to withdraw from the district must 13 meet the requirements of this section prior to the effective date of 14 withdrawal, and no withdrawal for the purposes of this section shall 15 take effect unless such county furnishes the resolutions and agreement 16 prior to the effective date of withdrawal. 17 2. The authority and any subsidiary corporation of the authority shall 18 enter into an agreement or agreements with a county that plans to with- 19 draw from the district to transfer and assign to such county all author- 20 ity and subsidiary railroad facilities and operations, rights and obli- 21 gations, and contract rights and obligations, including operating 22 contract rights and obligations, which are owned, operated, maintained 23 or used directly or by contract or which are otherwise involved in the 24 provision of railroad services to such counties. Such agreement shall 25 provide, in the event a facility, operation, right or obligation is 26 necessary and material to the provision of rail passenger service in the 27 district or is not assignable under applicable bond covenants or 28 contracts or the parties agree that it should not be assigned, that the 29 authority or subsidiary thereof shall continue to hold and be responsi- 30 ble for such facility, operation, right or obligation and that such 31 county shall reimburse to the authority that portion of the cost to the 32 authority or subsidiary of its retention of such facility, operation, 33 right or obligation that is allocable [to] within such county. If the 34 parties agree that the authority or subsidiary thereof shall operate the 35 railroad facilities in a county after the effective date of such coun- 36 ty's withdrawal, the agreement also shall provide for the terms and 37 conditions of the operation of such service. 38 3. Within forty-five days of the effective date of this section, the 39 authority and any subsidiary corporation of the authority shall provide 40 to the counties of [Dutchess,] Orange and Rockland a written statement, 41 including cost estimates and the useful life, if any, of all of its 42 facilities, operations, rights and obligations relating to the provision 43 of rail service in such counties. 44 4. The authority and any subsidiary corporation of the authority is 45 authorized to enter into an agreement or agreements with a county that 46 plans to withdraw from the district, pursuant to which the authority or 47 subsidiary thereof will provide technical assistance to such county 48 prior to, during and after the withdrawal, with respect to the transfer 49 of ownership, operation, maintenance and use of railroad facilities 50 within such county. Such agreement may provide that the county reimburse 51 the authority or its subsidiary for the cost to the authority and its 52 subsidiary for the provision of such technical assistance. 53 5. The authority shall have no obligation to undertake or continue any 54 project or part thereof in a current or future capital program plan 55 which pertains to railroad facilities within or services to a county 56 that withdraws from the district on or after such date of withdrawal nor
A. 3272 4 1 shall the authority enter into any contract for a project or part there- 2 of which would increase liabilities pursuant to subdivision [six] six-a 3 of this section in a county after such county notifies the authority of 4 its intent to withdraw as provided in subdivision one of this section, 5 provided, however, that if the authority has executed a contract for the 6 effectuation of a project or part thereof in a capital program plan in 7 such county, it shall be assigned to such county in accordance with 8 subdivision two of this section, unless the parties agree that it shall 9 not be assigned and that the authority or its subsidiary shall continue 10 to be responsible therefor, in which event the county shall reimburse 11 the authority or its subsidiary in accordance with the provisions of 12 subdivision two of this section. 13 6. Should the counties of Orange or Rockland seek to withdraw from the 14 district pursuant to this section, any such county and the authority, 15 and/or, if appropriate any subsidiary corporation of the authority shall 16 negotiate in good faith any agreement required by this section for with- 17 drawal from the district. Such negotiations shall commence not later 18 than fifteen days after the public transportation plan prepared by any 19 such county has been submitted by such county to the authority, and/or, 20 if appropriate, a subsidiary authority. In no event shall a county be 21 required to negotiate with both the authority and a subsidiary authori- 22 ty. The negotiations conducted by and the actions of the authority or 23 subsidiary authority shall be binding. If after sixty days from the 24 commencement of such negotiations or at any time thereafter the authori- 25 ty or any subsidiary corporation of the authority and a county are 26 unable to reach an agreement required by this section for such with- 27 drawal, either party may make application to a justice of the supreme 28 court presiding in the counties of Orange or Rockland for appointment of 29 a special referee. Each party shall submit to the justice a list 30 containing the names and qualifications of five persons to serve as 31 special referee. The justice shall select one person from among the 32 names submitted by the parties to serve as special referee. The special 33 referee shall mediate the negotiations for withdrawal for a period of no 34 longer than sixty days. If, at the end of said sixty-day period, the 35 parties are not able to reach agreement, the special referee shall, 36 within thirty days thereafter, recommend the terms of the withdrawal to 37 the justice. The justice shall review the recommendations of the referee 38 and the positions of the parties thereon and shall issue an order 39 setting forth the terms of the withdrawal. Notwithstanding the entry of 40 such order, a county shall have fifteen days from the entry of such 41 order to terminate such proceeding. Upon the timely exercise of such 42 right to terminate, such proceeding shall be deemed null and void and of 43 no further effect. If a county has not exercised its right to terminate, 44 said order shall be subject to appellate review in accordance with the 45 civil practice law and rules, provided that any appeal from the order 46 shall be granted expedited status. 47 6-a. Any county which withdraws from the district shall reimburse to 48 the authority or its subsidiary, within the time period agreed to by the 49 parties, any capital expenditures heretofore undertaken by the authority 50 or its subsidiary for railroad facilities only within such county which 51 were financed by commuter railroad revenue bonds issued by the metropol- 52 itan transportation authority pursuant to section twelve hundred sixty- 53 nine of this [article] title and are assigned to such county in accord- 54 ance with the provisions of subdivision two of this section. 55 [7.] 6-b. The obligations of a county that withdraws from the district 56 to reimburse the authority and any subsidiary corporation of the author-
A. 3272 5 1 ity for the costs of operation, maintenance and use of passenger 2 stations pursuant to section twelve hundred seventy-seven of this [arti- 3 cle] title, shall continue for any such costs incurred up to the effec- 4 tive date of the county's withdrawal from the district and for costs 5 incurred thereafter that result from acts preceding such withdrawal, and 6 the applicability of the payment provisions and procedures of such 7 section twelve hundred seventy-seven to such county shall continue ther- 8 eafter with respect to the aforesaid costs. 9 [8.] 7. In the event of a county's failure to make payment of any 10 monies determined by the authority to be owed and due it or any subsid- 11 iary corporation of the authority pursuant to the terms of any agreement 12 entered into pursuant to this section, the authority is authorized to 13 recover such payments in the same manner as in section twelve hundred 14 seventy-seven of this [article] title and the state comptroller shall 15 withhold and pay monies to the authority in accordance with the proce- 16 dures set forth in that section. 17 [9.] 8. The term of office of any resident of a county that withdraws 18 from the district under this section, as a member of the board of the 19 authority, the Metro-North rail commuter council or the management advi- 20 sory board, which is based upon residence in such county, shall termi- 21 nate upon the county's withdrawal and the office shall be deemed vacant 22 and filled in the manner provided by law. 23 [10.] 9. The provisions of this section and all agreements undertaken 24 in accordance herewith shall be subject to the rights of the holders of 25 any outstanding bonds or notes issued by the authority. 26 § 2. This act shall take effect immediately.