Source: https://www.nysenate.gov/legislation/bills/2009/S5451
Timestamp: 2020-07-04 21:54:34
Document Index: 682333963

Matched Legal Cases: ['§ 1261', '§ 1204', '§ 1263', '§ 1263', '§ 1263', '§\n552', '§ 1201', '§ 1266', '§\n1266', '§ 1266', '§ 1266', '§ 1266', '§ 1268', '§ 1269', '§ 1269', '§ 1269', '§ 1269', '§ 1270', '§ 1270', '§ 1270', '§ 1270', '§ 1270', '§ 1276', '§ 1276', '§ 1276', '§ 1276', '§ 1276', '§ 1279', '§ 1276', '§ 1266']

NY State Senate Bill S5451
senate Bill S5451
Archive: Last Bill Status Via A8180 - Signed by Governor
Get Status Alerts for S5451
May 06, 2009 substituted by a8180
ordered to third reading cal.286
S5451 (ACTIVE) - Details
S5451 (ACTIVE) - Summary
S5451 (ACTIVE) - Sponsor Memo
BILL NUMBER:  S5451
supplemental learners permits (Part A); to amend the vehicle and
traffic law, in relation to the metropolitan commuter transportation
district supplemental registration fee (Part B); to amend the tax law
the metropolitan commuter transportation mobility tax; and to repeal
certain provisions of the tax law relating thereto (Part C); to amend
the education law, in relation to certain moneys apportioned to school
districts for reimbursement of article twenty-three of the tax law
payments (Part D); to amend the tax law, in relation to a tax on
medallion taxicab rides in the metropolitan commuter transportation
in relation to the metropolitan transportation authority financial
making an appropriation providing financial assistance to the
metropolitan transportation authority (Part G-1); and to amend the
public authorities law, in relation to metropolitan transportation
authority reporting requirements, in relation to legislative oversight
of the metropolitan transportation authority, in relation to
regulation of metropolitan transportation authority finances, in
relation to the independent audit of the metropolitan transportation
authority, and the publication of financial information, in relation
to audits of the metropolitan transportation authority, in relation to
directing the chairman of the metropolitan transportation authority to
submit biennial reports to certain legislative committees on the
condition of the metropolitan transportation authority, in relation to
the fiduciary responsibility of board members, in relation to
whistle-blowers on contract projects of the metropolitan
transportation authority, and in relation to the powers and duties of
the metropolitan transportation authority capital program review board
This bill would establish new secure sources of funding for the
Metropolitan Transportation Authority and its affiliates and
subsidiaries ("MTA") and implement governance changes at MTA.
Section 1 sets forth the legislative findings and declaration of
purpose for the bill.
Part A would impose a supplemental fee of one dollar for each six
month period of validity of persons holding a learner's permit or
Part B would impose a supplemental fee of twenty-five dollars per
year on the registration and renewals of all registrants of motor
vehicles who reside within the metropolitan commuter transportation
Part C would impose a payroll mobility tax of 0.34 percent on
payrolls within the metropolitan commuter transportation district.
Part D would apportion money to school districts for reimbursement
of the payroll mobility tax.
Part E would impose a surcharge of fifty cents on taxicabs within
the metropolitan commuter transportation district.
Part F would impose an additional sales tax of five percent of
rentals of automobiles on rental within the metropolitan commuter
Part G would create the Metropolitan Transportation Authority
Part G(1) would create the appropriations for payment of the
mobility tax revenues and the other revenues to the MTA.
Part H would enact governance reforms to improve the accountability
and transparency at the MTA.
SUMMARY OF SPECIFIC PROVISIONS OF PART H :
Section 1 would amend PAL § 1261 of the public authorities law to
add definitions.
Section 2 would renumber PAL § 1204-a as 1204-e.
Sections 3 and 4 would amend section PAL § 1263(1)(a)(1) to require
that members appointed to MTA's board with terms commencing on or
after June 30, 2009 have experience in areas of activity central to
the mission of the MTA. In addition, thirty days after the effective
date of the chapter, the term of the chairman would expire.
Section 5 of the bill would amend PAL § 1263(4) to provide that the
chairman of the MTA shall serve as the chief executive officer of the
MTA and be responsible for the discharge of the executive and
administrative functions and powers of the authority. The chairman is
further conferred the discretion to delegate functions and powers to
an executive director or other officers.
Section 5 also amends PAL § 1263(4)(d) to add a new paragraph (d) to
prohibit the chairman from participating in establishing the salary or
other personnel policies regarding the chief executive officer (given
that the powers of chief executive officer would now be reposed in the
chairman) and mandates a single salary be paid to the chairman for
service as chairman and chief executive officer.
Sections 6 and 7 of the bill makes conforming amendments to PAL §
552(1) and PAL § 1201.0(2) to authorize the MTA chairman, who ex
officio also serves as chairman and chief executive officer of the New
York City Transportation Authority ("NYCTA") and of the Triborough
Bridge and Tunnel Authority ("TBTA"), to delegate, at his or her
discretion, any functions to officers of NYCTA and TBTA.
Section 7-a of the bill would amend section 1262 of the public
authorities law to permit the governor to remove a member of a public
authority for breach of fiduciary duty.
Section 8 of the bill would amend PAL §§ 1266(5) and (8) in order,
among other things, to establish that the chairman and the executive
director of each subsidiary of MTA shall be the chairman and the
executive director of the MTA, serving ex officio and that the
chairman shall be the chief executive officer of each subsidiary and
that MTA may cause its powers, duties, functions or activities to be
exercised or performed by or through TBTA (by amendment of PAL §
1266(5)); and establish that the provisions of PAL § 1266(8) also
apply to TBTA (by amendment of PAL § 1266(8)).
Section 9 of the bill is intentionally omitted.
Section 10 of the bill would add a new PAL § 1266-i defining the
permanent citizens advisory committee.
Section 11 of the bill would add a new section PAL § 1268-a to
require the authority to promote broad usage of qualified
Section 11-a of the bill would amend PAL § 1269-b to require the
authority to provide members of the MTA capital program review board
informational copies of a proposed capital plan.
Section 12 of the bill would amend section 1269-b(2) to provide that
the five-year capital plan of the authority must describe plans to
promote participation by minority- and women-owned business
Section 13 would add new sections 1269-e, f, g and h of the public
* PAL § 1269-e would require the authority, within 30 days after the
annual submission of its independent audit, to submit a report to the
the senate. The report is to explain the financial condition of the
authority, including specified financial elements; its internal
control structures and procedures; and the current state of the
authority, including specified relevant issues.
* PAL § 1269-f would require the authority submit to the governor,
annually by October 31 a proposed mission statement and proposed
performance measurements for the authority.
* PAL § 1269-g of the public authorities law would require
contractors with authority public works contracts to provide
information to employees on how to report fraud or abuse to the
inspector general of the authority or the attorney-general of the
state, along with information about the rights and protections that
article 13 of the finance law and section 740 of the labor law affords
employees who report fraud or abuse.
Section 14 and 15 of the bill would amend PAL § 1270-a to authorize
the authority to deposit into the corporate transportation account of
the MTA special assistance fund the revenues received from the State's
MTA aid trust account. PAL § 1270-a is also amended to provide that
monies so deposited will be used by the authority to secure bonds,
notes or other obligations or pay for operating costs or capital costs
(including debt service and reserve requirements).
Section 16 of the bill would add PAL §§ 1270-g and 1270-h.
* PAL § 1270-g requires the authority to implement policies to
minimize unwarranted expenses in connection with provision of member
or employee benefits and in assignment and use of automobiles owned or
leased by the authority.
* PAL § 1270-h establishes the MTA authority finance fund, the fund
in to which the comptroller is to deposit on a monthly basis the
revenues from the mobility tax collected in the mobility tax trust
account of the MTA financial assistance fund. The section provides
that moneys deposited into the MTA authority finance fund may be
pledged by the authority to secure bonds, notes or other obligations
to finance capital projects or used for payment of capital costs,
including debt service and reserve requirements. Subject to the
provisions of any such pledge (or in the event there is no such
pledge), any excess moneys in the MTA authority finance fund may be
used by the authority for payment of operating costs or capital costs
Section 17 of the bill would adds PAL § 1276-b, PAL § 1276-c and PAL
§ 1276-d to the public authorities law.
* PAL § 1276-b requires the authority to post its budgets and
financial plans on its website, and requires, among other things, that
the budgets and plans of the authority to be presented in a clear,
consistent format from year to year; that the budget and financial
plans be based on reasonable assumptions and methods of estimate and
include estimates of projected operating revenues and expenses; that
the authority provide supporting documentation for its assumptions and
methods of estimation; and provide budget and financial plan updates.
* PAL § 1276-c provides that the independent auditor that performs
the MTA audit shall not perform non-audit services for the authority,
absent previous written approval by the audit committee.
* Section 1276-d would authorize the legislature to commission an
independent outside audit of authority finances and operations.
Section 18 of the bill would add PAL § 1279-c to the public
authorities law, creating the office of legislative and community
input for the purposes of communicating information to, and receiving
comments from, members of the legislature and PCAC. Biennially, the
office is to issue a report to the legislative leaders and the public
about the comments and concerns of which it has been made aware and
its recommendations for addressing them.
Section 19 is amended to add PAL § 1276-e to require the authority
to provide a listing of law firms retained by the authority which
receive payment for services in the past year.
Section 20 would add a subdivision 15 to PAL § 1266-c of the public
authorities law, providing that the authority, to the extent
practicable and not inconsistent with federal law, promote meaningful
participation of small business and New York state business
enterprises in provision of goods and services produced or
manufactured in New York state for procurements undertaken by the
Section 21 would set effective dates.
The MTA faces a 2009 operating budget shortfall of $1.8 billion, a
deficit rooted in years of reliance on self-supported debt to fund its
capital needs. Large and growing debt service payments, which in
recent years had been masked by unprecedented collection of real
estate transactional taxes, now place extraordinary pressure on the
2009 MTA operating budget and will continue to pressure MTA budgets --
and the farebox -- in years to come unless legislative action is
taken. The real estate bubble has burst and the weakening economy has
significantly eroded existing dedicated tax sources, while
simultaneously adversely impacting MTA's cost of borrowing, pension
contributions and system generated revenues.
To reduce that $1.8 billion deficit, the MTA has undertaken a series
of administrative and managerial cost-cutting and productivity
measures, but these actions alone cannot satisfy the statutory
requirement that MTA be self-sustaining. To close the substantial 2009
budgetary gap that remains after such measures, MTA has been compelled
to authorize unprecedented service reductions to subway, bus and
commuter rail service, as well as dramatic fare and toll increases
that would raise fare and toll-generated revenues by 23 percent,
beginning on June 1, 2009.  These service cuts and fare increases, if
implemented at these levels, would pose significant burdens on many
users of the system, and, even after implementation, MTA still would
confront a serious operating budget deficit in 2009 and even larger
deficits in 2010.
Nor do these proposed service cuts and 23 percent fare and toll
increases provide any solution to satisfying MTA's future
infrastructure needs. Capital funding for the revitalization effort
launched in 1982 will be exhausted by the end of this year. There is
an immediate need to build on the progress made to date and address
the financing of a new five-year capital program concurrently with the
issue of fares and service. Disinvestment is not a viable option.
That path, taken in the 1960's and 1970's, led to the near collapse of
the MTA system, with ridership falling by 17 percent and the region's
population declining by 5 percent. Today's record transit ridership is
directly related to the publicly recognized improvements in the
transit system achieved over the last two and a half decades, during
which six successive capital plans have transformed the quality,
reliability and safety of the system, to the enormous benefit of the
City, region and State. In addition, to the direct benefits to mass
transit users and to the regional and State economy, continued
investment in mass transit furthers important policy goals:  advancing
regional energy independence, providing reliable and affordable
alternatives to the high costs of driving, positioning the region to
take advantage of anticipated population growth, and promoting a clean
During these troubled economic times, when economic stimulus is so
critically needed, the State cannot afford to postpone capital
investment in mass transportation infrastructure. The economic
benefits of MTA's capital program are deep and widespread. The MTA
capital program is an important economic engine for the State and the
region, contributing many thousands of jobs annually, while benefiting
millions of straphangers and commuters and supporting the economic
competitiveness of the region. Since 1982, millions of dollars have
gone to companies across the State - to contractors and subcontractors
who build rolling stock, to parts suppliers, to construction companies
rebuilding infrastructure or working on new facilities. The capital
program has been a critical component of job creation in New York City
and State communities as far away as Buffalo, Albany and Plattsburgh.
The most recent capital program alone is estimated to have generated
nearly 350,000 total worker-years of employment, nearly $30 billion in
regional economic activity, $1 billion in income taxes and $12 billion
in wages statewide.
The Bill contains provisions recommended by the Metropolitan
Transportation Authority Financing Commission (the "Ravitch
Commission"), formed by the Governor Paterson, that will address MTA's
operating and capital needs, defraying a major part of the proposed
2009 fare increase and service reductions while addressing over the
next two years the need for capital investment in mass transit. New
funding sources are created in the form of a new dedicated regional
Mobility Tax to be imposed in the twelve counties comprising the MTA
District and several additional revenue sources in the MTA District.
These funding sources are necessary to support the ongoing operating
and capital needs of the MTA and resulting economic and policy
benefits to the region and State.
This bill provides new and recurring sources of revenue from the
mobility tax and other taxes, fees and surcharges that will support
MTA programs, provide a continuing source for MTA capital investment
and diminish the need for future fare and toll increases.  State
spending and revenues would both increase as a result of tax
collection and appropriation to the MTA, yielding an impact that is
cumulatively neutral on the State financial plan.
There would be a cost to the State financial plan, totaling
approximately $17 million in 2009-10, as a result of the mobility tax
being imposed on State payroll within the Metropolitan Commuter
Transportation District. In addition, payrolls of local governments
and school districts would be subject to the mobility tax. The bill
provides for State's reimbursement to public school districts for the
full amount of their mobility tax payments.
Part A is effective September 1, 2009.
Part B is effective September1, 2009.
Part C is effective as set forth in that Part.
Part D is effective July 1, 2009.
Part E is effective November 1, 2009.
Part F is effective June 1, 2009.
Part G is effective immediately.
Part G1 is effective immediately.
Part H is effective immediately, except as set forth in that Part.
S5451 (ACTIVE) - Bill Text download pdf