STATE OF NEW YORK ________________________________________________________________________ 4288 2025-2026 Regular Sessions IN SENATE February 3, 2025 ___________ Introduced by Sen. SKOUFIS -- read twice and ordered printed, and when printed to be committed to the Committee on Transportation AN ACT to amend the public authorities law, in relation to withdrawing Orange county from the metropolitan commuter transportation district 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 and the opening paragraph of subdivision 3 1, the opening paragraph of paragraph (a) of subdivision 1, and subdivi- 4 sions 3 and 5 as amended by chapter 670 of the laws of 1986, is amended 5 to 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 first, nineteen hundred eighty-seven. If any such 11 county plans to withdraw from the district on January first, nineteen 12 hundred eighty-seven, it shall (i) no later than seventy-five days after 13 the effective date of this section, furnish the commissioner of trans- 14 portation, and [chairman] chair of the authority and the other counties 15 which have an option to withdraw, a resolution adopted by the county 16 legislature providing notice of intent to withdraw, (ii) on or before 17 October first, nineteen hundred eighty-six, furnish to the commissioner 18 of transportation, the [chairman] chair of the authority and other coun- 19 ties which have an option to withdraw, a resolution adopted by the coun- 20 ty legislature providing for a public transportation plan. For the 21 purposes of this section, a "public transportation plan" shall mean a 22 plan that maintains adequate and continuous public transportation 23 services from the withdrawing county to the city of New York or any 24 terminus previously served, provides a reasonable level of rail passen- 25 ger service, provides a schedule for implementing such service, protects EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07870-01-5
S. 4288 2 1 the public investment in the rail transportation system and any other 2 criteria deemed necessary by the commissioner of transportation. Prior 3 to withdrawal pursuant to this paragraph or paragraph (b) of this subdi- 4 vision, a county must receive approval of its public transportation plan 5 pursuant to paragraph (c) of this subdivision, (iii) on or before Decem- 6 ber fifteenth, nineteen hundred eighty-six, furnish the commissioner of 7 transportation, a copy of an agreement with the authority or an operator 8 of rail passenger service for the provision of rail passenger service to 9 and from such county and the city of New York or any terminus previously 10 served. 11 If a county planning to withdraw on January first, nineteen hundred 12 eighty-seven is unable to withdraw because it could not meet the 13 requirements of this paragraph, it may elect to withdraw pursuant to 14 paragraph (b) of this subdivision hereafter. 15 (b) January first, nineteen hundred eighty-eight or January first, 16 nineteen hundred eighty-nine. If any such county plans to withdraw on 17 either January first, nineteen hundred eighty-eight or January first, 18 nineteen hundred eighty-nine, it shall (i) no later than ninety days 19 after the first of January of the year immediately preceding the year in 20 which such county plans to withdraw from the district, furnish the 21 commissioner of transportation, the [chairman] chair of the authority 22 and the other counties which have an option to withdraw, a resolution 23 adopted by the county legislature providing notice of intent to withdraw 24 from the district, (ii) no later than one hundred twenty days after the 25 first of January of the year immediately preceding the year in which 26 such county plans to withdraw from the district furnish to the commis- 27 sioner of transportation, the [chairman] chair of the authority and the 28 counties which have an option to withdraw a resolution adopted by the 29 county legislature providing a public transportation plan as described 30 in this section, (iii) on or before October first of the year immediate- 31 ly preceding the year in which such county plans to withdraw from the 32 district, furnish to the commissioner a copy of an agreement with the 33 authority or an operator of rail passenger service for the provision of 34 rail passenger service to and from such county and the city of New York 35 or any terminus previously served. 36 (c) No later than thirty days after receipt of the public transporta- 37 tion plan the commissioner of transportation shall, in writing, either 38 approve such plan as conforming with the requirements heretofore 39 described or disapprove such plan as failing to meet such requirements 40 and the reasons therefor. Disapproval of a plan shall not prohibit a 41 county from resubmitting a public transportation plan and such resubmit- 42 ted plan shall be approved or disapproved no later than fifteen days 43 after receipt by the commissioner of transportation. The public trans- 44 portation plan shall be subject to any state or federal public hearing 45 requirements which the authority would be subject to if the authority 46 made the changes proposed by such plan. 47 (d) Any such county which plans to withdraw from the district must 48 meet the requirements of this section prior to the effective date of 49 withdrawal, and no withdrawal for the purposes of this section shall 50 take effect unless such county furnishes the resolutions and agreement 51 prior to the effective date of withdrawal. 52 (e) Notwithstanding the foregoing provisions of this subdivision, the 53 county of Orange shall hereafter be deemed to have planned to and with- 54 drawn from the metropolitan commuter transportation district for 55 purposes of this article within one year of the effective date of this 56 paragraph.
S. 4288 3 1 2. (a) The authority and any subsidiary corporation of the authority 2 shall enter into an agreement or agreements with a county that plans to 3 withdraw from the district to transfer and assign to such county all 4 authority and subsidiary railroad facilities and operations, rights and 5 obligations, and contract rights and obligations, including operating 6 contract rights and obligations, which are owned, operated, maintained 7 or used directly or by contract or which are otherwise involved in the 8 provision of railroad services to such counties. Such agreement shall 9 provide, in the event a facility, operation, right or obligation is 10 necessary and material to the provision of rail passenger service in the 11 district or is not assignable under applicable bond covenants or 12 contracts or the parties agree that it should not be assigned, that the 13 authority or subsidiary thereof shall continue to hold and be responsi- 14 ble for such facility, operation, right or obligation and that such 15 county shall reimburse to the authority that portion of the cost to the 16 authority or subsidiary of its retention of such facility, operation, 17 right or obligation that is allocable to such county. If the parties 18 agree that the authority or subsidiary thereof shall operate the rail- 19 road facilities in a county after the effective date of such county's 20 withdrawal, the agreement also shall provide for the terms and condi- 21 tions of the operation of such service. 22 (b) With respect to a withdrawal made pursuant to paragraph (e) of 23 subdivision one of this section, the authority and/or any relevant 24 subsidiary corporation of the authority shall negotiate in good faith 25 any agreement required by this section for withdrawal from the district. 26 Such negotiations shall commence not later than forty-five days after 27 the authority and any subsidiary corporation provides the updated writ- 28 ten statement pursuant to subdivision three of this section. In no event 29 shall a county be required to negotiate with both the authority and a 30 subsidiary authority. The negotiations conducted by and the actions of 31 the authority or subsidiary authority shall be binding. If after sixty 32 days from the commencement of such negotiations or at any time thereaft- 33 er the authority or any subsidiary corporation of the authority and a 34 county are unable to reach an agreement required by this section for 35 such withdrawal, either party may make application to a justice of the 36 supreme court presiding in Orange county for appointment of a special 37 referee. Each party shall submit to the justice a list containing the 38 names and qualifications of five persons to serve as special referee. 39 The justice shall select one person from among the names submitted by 40 the parties to serve as special referee. The special referee shall medi- 41 ate the negotiations for withdrawal for a period of no longer than sixty 42 days. If, at the end of said sixty day period, the parties are not able 43 to reach agreement, the special referee shall, within thirty days there- 44 after, recommend the terms of the withdrawal to the justice. The justice 45 shall review the recommendations of the referee and the positions of the 46 parties thereon and shall issue an order setting forth the terms of the 47 withdrawal. Notwithstanding the entry of such order, a county shall have 48 fifteen days from the entry of such order to terminate such proceeding. 49 Upon the timely exercise of such right to terminate, such proceeding 50 shall be deemed null and void and of no further effect. If a county has 51 not exercised its right to terminate, said order shall be subject to 52 appellate review in accordance with the civil practice law and rules, 53 provided that any appeal from the order shall be granted expedited 54 status. 55 3. Within forty-five days of the effective date of this section, the 56 authority and any subsidiary corporation of the authority shall provide
S. 4288 4 1 to the counties of Dutchess, Orange and Rockland a written statement, 2 including cost estimates and the useful life, if any, of all of its 3 facilities, operations, rights and obligations relating to the provision 4 of rail service in such counties. Provided further that within forty- 5 five days of the effective date of paragraph (e) of subdivision one of 6 this section, the authority and any subsidiary corporation of the 7 authority shall provide to the counties of Dutchess, Orange, Rockland 8 and Putnam an updated written statement, including updated cost esti- 9 mates and the useful life, if any, of all of its facilities, operations, 10 rights and obligations relating to the provision of rail service in such 11 counties. 12 4. The authority and any subsidiary corporation of the authority is 13 authorized to enter into an agreement or agreements with a county that 14 plans to withdraw from the district, pursuant to which the authority or 15 subsidiary thereof will provide technical assistance to such county 16 prior to, during and after the withdrawal, with respect to the transfer 17 of ownership, operation, maintenance and use of railroad facilities 18 within such county. Such agreement may provide that the county reimburse 19 the authority or its subsidiary for the cost to the authority and its 20 subsidiary for the provision of such technical assistance. 21 5. (a) The authority shall have no obligation to undertake or continue 22 any project or part thereof in a current or future capital program plan 23 which pertains to railroad facilities within or services to a county 24 that withdraws from the district on or after such date of withdrawal nor 25 shall the authority enter into any contract for a project or part there- 26 of which would increase liabilities pursuant to subdivision six of this 27 section in a county after such county notifies the authority of its 28 intent to withdraw as provided in subdivision one of this section, 29 provided, however, that if the authority has executed a contract for the 30 effectuation of a project or part thereof in a capital program plan in 31 such county, it shall be assigned to such county in accordance with 32 subdivision two of this section, unless the parties agree that it shall 33 not be assigned and that the authority or its subsidiary shall continue 34 to be responsible therefor, in which event the county shall reimburse 35 the authority or its subsidiary in accordance with the provisions of 36 subdivision two of this section. 37 (b) Notwithstanding the provisions of paragraph (a) of this subdivi- 38 sion, the authority and its subsidiary shall continue to have its obli- 39 gations to undertake and continue all projects and parts thereof in a 40 current or future capital program plan which pertains to railroad facil- 41 ities within or services to Orange county prior to the withdrawal of 42 such county under paragraph (e) of subdivision one of this section and 43 the authority and its subsidiary may enter into any contract for a 44 project or part thereof which would increase liabilities pursuant to 45 subdivision six of this section in Orange county after the withdrawal of 46 such county under paragraph (e) of subdivision one of this section. 47 Orange county shall not be required to reimburse the authority or its 48 subsidiary in accordance with the provisions of subdivision two of this 49 section for any contract executed prior to the withdrawal of such county 50 under paragraph (e) of subdivision one of this section. 51 6. (a) Any county which withdraws from the district shall reimburse to 52 the authority or its subsidiary, within the time period agreed to by the 53 parties, any capital expenditures heretofore undertaken by the authority 54 or its subsidiary for railroad facilities only within such county which 55 were financed by commuter railroad revenue bonds issued by the metropol- 56 itan transportation authority pursuant to section twelve hundred sixty-
S. 4288 5 1 nine of this article and are assigned to such county in accordance with 2 the provisions of subdivision two of this section. 3 (b) Notwithstanding the provisions of paragraph (a) of this subdivi- 4 sion, Orange county shall not be required to reimburse the authority or 5 its subsidiaries for any capital expenditures heretofore undertaken for 6 railroad facilities within Orange county which were financed by commuter 7 railroad revenue bonds issued by the metropolitan transportation author- 8 ity pursuant to section twelve hundred sixty-nine of this title prior to 9 the withdrawal of such county under paragraph (e) of subdivision one of 10 this section. 11 7. The obligations of a county that withdraws from the district to 12 reimburse the authority and any subsidiary corporation of the authority 13 for the costs of operation, maintenance and use of passenger stations 14 pursuant to section twelve hundred seventy-seven of this [article] 15 title, shall continue for any such costs incurred up to the effective 16 date of the county's withdrawal from the district and for costs incurred 17 thereafter that result from acts preceding such withdrawal, and the 18 applicability of the payment provisions and procedures of such section 19 twelve hundred seventy-seven to such county shall continue thereafter 20 with respect to the aforesaid costs. 21 8. In the event of a county's failure to make payment of any monies 22 determined by the authority to be owed and due it or any subsidiary 23 corporation of the authority pursuant to the terms of any agreement 24 entered into pursuant to this section, the authority is authorized to 25 recover such payments in the same manner as in section twelve hundred 26 seventy-seven of this [article] title and the state comptroller shall 27 withhold and pay monies to the authority in accordance with the proce- 28 dures set forth in that section. In the event that the county has paid 29 more to the authority than the amount of services the authority has 30 provided to the county, the authority shall make payment to the with- 31 drawing county compensating for the difference in the amount of services 32 received from the authority and monies paid by the county to the author- 33 ity, and this payment shall be extrapolated over the previous five years 34 from the date of withdrawal. If the authority fails to make such payment 35 to the county, the amount owed shall be withheld by the state comp- 36 troller from the authority and the monies shall be paid to the county. 37 9. The term of office of any resident of a county that withdraws from 38 the district under this section, as a member of the board of the author- 39 ity, the Metro-North rail commuter council or the management advisory 40 board, which is based upon residence in such county, shall terminate 41 upon the county's withdrawal and the office shall be deemed vacant and 42 filled in the manner provided by law. 43 10. The provisions of this section and all agreements undertaken in 44 accordance herewith shall be subject to the rights of the holders of any 45 outstanding bonds or notes issued by the authority. 46 § 2. This act shall take effect immediately; provided that public 47 works with requests for qualifications issued prior to the withdrawal 48 contained under paragraph (e) of subdivision 1 of section 1279-b of the 49 public authorities law shall be permitted to continue under this act 50 notwithstanding such withdrawal, and nothing contained in this act shall 51 limit the right or obligation of any entity to comply with the 52 provisions of any existing contract or to award contracts as otherwise 53 provided by law.