STATE OF NEW YORK ________________________________________________________________________ 5808 2025-2026 Regular Sessions IN ASSEMBLY February 20, 2025 ___________ Introduced by M. of A. HYNDMAN -- read once and referred to the Commit- tee on Corporations, Authorities and Commissions 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 24 five of this title or the provisions of any other law to the contrary, EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05059-01-5
A. 5808 2 1 so long as the authority shall have outstanding and unpaid bonds, notes 2 or other obligations issued pursuant to section twelve hundred seven-b 3 of this title, or the metropolitan transportation authority or Tribor- 4 ough bridge and tunnel authority shall have outstanding and unpaid 5 bonds, notes or other obligations secured by or payable from, in whole 6 or in part, the revenues, assets or other monies of the authority or its 7 subsidiary corporations, the authority shall have the power at all times 8 to fix or adjust the rate or rates of fare to be charged for the use of 9 any transit facility operated by the authority, upon approval of the 10 state comptroller pursuant to section twelve hundred sixty-five-c of 11 this article, as may, in the judgment of the board, be necessary to 12 produce sufficient revenues to pay, as the same shall become due, the 13 principal of and interest on such bonds, notes and other obligations of 14 the authority, metropolitan transportation authority and Triborough 15 bridge and tunnel authority, together with the maintenance of proper 16 reserves therefor, in addition to paying as the same shall become due 17 the expenses of operation of the authority. The authority, metropolitan 18 transportation authority and Triborough bridge and tunnel authority, 19 shall be authorized to contract with the holders of such bonds, notes 20 and other obligations with respect to the exercise of the power author- 21 ized by this section. In furtherance of the mandate of the metropolitan 22 transportation authority to develop and implement a unified mass trans- 23 portation policy for the metropolitan commuter transportation district 24 and the exercise of its powers, including the power to issue notes, 25 bonds and other obligations secured in whole or in part by the revenues 26 of the authority and its subsidiaries, metropolitan transportation 27 authority and its subsidiaries, and the Triborough bridge and tunnel 28 authority, the authority shall join with the metropolitan transportation 29 authority in connection with the establishment, levy and collection of 30 fares, tolls, rentals, rates, charges and other fees for the transporta- 31 tion of passengers on any transit facilities operated by authority and 32 its subsidiaries, including any changes thereto. 33 § 3. Subdivision 3 of section 1266 of the public authorities law, as 34 amended by chapter 314 of the laws of 1981, is amended to read as 35 follows: 36 3. [The] Except as provided in section twelve hundred sixty-five-c of 37 this title, the authority may establish, levy and collect or cause to be 38 established, levied and collected and, in the case of a joint service 39 arrangement, join with others in the establishment, levy and collection 40 of such fares, tolls, rentals, rates, charges and other fees as it may 41 deem necessary, convenient or desirable for the use and operation of any 42 transportation facility and related services operated by the authority 43 or by a subsidiary corporation of the authority or under contract, lease 44 or other arrangement, including joint service arrangements, with the 45 authority. Any such fares, tolls, rentals, rates, charges or other fees 46 for the transportation of passengers shall be established and changed 47 only if approved by resolution of the authority adopted by not less than 48 a majority vote of the whole number of members of the authority then in 49 office, with the [chairman] chair having one additional vote in the 50 event of a tie vote, except as provided in section twelve hundred 51 sixty-five-c of this title, and only after a public hearing, provided 52 however, that fares, tolls, rentals, rates, charges or other fees for 53 the transportation of passengers on any transportation facility which 54 are in effect at the time that the then owner of such transportation 55 facility becomes a subsidiary corporation of the authority or at the 56 time that operation of such transportation facility is commenced by the
A. 5808 3 1 authority or is commenced under contract, lease or other arrangement, 2 including joint service arrangements, with the authority may be contin- 3 ued in effect without such a hearing. Such fares, tolls, rentals, rates, 4 charges and other fees shall be established as may in the judgment of 5 the authority be necessary to maintain the combined operations of the 6 authority and its subsidiary corporations on a self-sustaining basis. 7 The said operations shall be deemed to be on a self-sustaining basis as 8 required by this title, when the authority is able to pay or cause to be 9 paid from revenue and any other funds or property actually available to 10 the authority and its subsidiary corporations (a) as the same shall 11 become due, the principal of and interest on the bonds and notes and 12 other obligations of the authority and of such subsidiary corporations, 13 together with the maintenance of proper reserves therefor, (b) the cost 14 and expense of keeping the properties and assets of the authority and 15 its subsidiary corporations in good condition and repair, and (c) the 16 capital and operating expenses of the authority and its subsidiary 17 corporations. The authority may contract with the holders of bonds and 18 notes with respect to the exercise of the powers authorized by this 19 section. No acts or activities taken or proposed to be taken by the 20 authority or any subsidiary of the authority pursuant to the provisions 21 of this subdivision shall be deemed to be "actions" for the purposes or 22 within the meaning of article eight of the environmental conservation 23 law. 24 § 4. The public authorities law is amended by adding a new section 25 1265-c to read as follows: 26 § 1265-c. Approval of state comptroller. 1. The authority shall 27 submit a written report to the state comptroller prior to the date of 28 any increase in fares for the transportation of passengers takes effect. 29 Such report shall include a justification for such proposed fare 30 increase and the current financial condition of the authority. The state 31 comptroller may require any additional data or information that such 32 comptroller deems necessary in such report. No proposed fare increase 33 shall take effect until approved by resolution of the authority pursuant 34 to section twelve hundred sixty-six of this title and approved by the 35 state comptroller. 36 2. This section shall not be deemed to adversely affect or diminish 37 any public hearing requirements. 38 § 5. This act shall take effect on the ninetieth day after it shall 39 have become a law and shall apply to any fares increased on or after 40 such effective date.