NY Rapid Trans L § 90 (2021)
2021 New York Laws RAT - Rapid Transit Article 8 - Plan for Unification 90 - Commission to Prepare Plan.

§  90. Commission to prepare plan.  a. The commission after making the   necessary studies and investigations shall prepare a plan for the relief   of the emergency  which  is  hereby  declared  to  exist,  and  for  the   improvement  of  transit  in  any  such  city.   Such plan shall contain   provisions which in the judgment of the commission, will  accomplish  as   nearly as may be the following purposes:1. The acquisition and unification, under public ownership or control,   of railroads by purchase and direct conveyance or transfer, or by lease,   recapture,  assignment  of  lease,  modification  or  extinguishment  of   existing  contract  or  by  contracts  for  equipment,  maintenance  and   operation  or  maintenance  and  operation, by or under supervision of a   board of transportation, or partly by one of such methods and partly  by   one  or  more  of  the others, so that service thereon may be increased,   extended and improved to the fullest extent possible,2. The receipt as soon as practicable by the city of net revenues from   the operation of the railroads which will be applicable to  the  payment   of  interest and amortization charges on corporate stock or bonds of the   city after deduction of  all  expenses  of  maintenance  and  operation,   reserves  for  depreciation  and  otherwise,  interest  and amortization   charges and other deductions as may be provided in  a  plan  or  in  any   contract or lease made in pursuance of its provisions, and3.  The  assuring to the people of the city the continued operation of   the railroads at the present or lowest possible  fares  consistent  with   their  safe and economical operation and the performance by the board of   its obligations under any plan and under any lease or contract  made  in   pursuance of its provisions.   In  case  a  plan  or  any  amendment  thereof  or supplement thereto or   separate plan adopted with the approval of the board of estimate of  the   city  as  provided  in  this  article,  shall include any street surface   railroads, it may  also  include  any  stage  coach  or  omnibus  lines,   together  with  the  plant,  property  and  equipment  thereof, owned or   operated in conjunction with, or as a part of the same system  as,  such   street surface railroads.    b.  The  commission shall include in the plan appropriate provision for   the protection of tort creditors; and shall provide for the  continuance   in  original  or  modified  form  of  any  existing plan or provision of   railroad companies for employees' pension and sick benefit  relief,  but   such  continuance shall in no manner or form impair the actuarial status   or benefits of employees who are members of the New York city employees'   retirement system. Without limiting the authority and discretion of  the   commission,  it may consider the incorporation in the plan of provisions   whereby the title to such railroads as are not already owned by the city   and whose ownership thereby is deemed by the commission to be  desirable   may  be  vested  in the city and whereby rights under existing contracts   for the construction, equipment and operation of rapid transit railroads   already owned by the city may be acquired by the city. Such title and/or   such rights may be vested in the city directly or may first pass through   an intervening corporation and then to the city, either free  and  clear   of   liens   and   encumbrances   or  subject  to  specified  liens  and   encumbrances, in return for a lease  or  leases  by  the  city  of  such   railroads  and  of  any  other  railroads  owned by it and such other or   additional considerations as  the  commission  may  determine  with  the   approval  of the board of estimate. In the event of the incorporation of   such provisions in the plan the commission shall outline an  arrangement   whereby  outstanding securities of the railroad companies may be retired   by application of the  amounts  paid  by  the  city  for  the  railroads   acquired and whereby such securities may be amortized or otherwise paid.   Any  railroad  company  included  in  the  plan, with the consent of the    holders of record of at least two-thirds of its  outstanding  shares  of   stock entitled to vote thereon, given as provided in section one hundred   forty-eight  of  the railroad law, may transfer and convey its property,   appurtenances  and  franchises,  or any part thereof, to the city and/or   such intervening corporation as provided in the plan, subject,  however,   to  the  rights of appraisal of the shares of any dissenting stockholder   as provided in section one hundred sixty-one of the  railroad  law.  Any   railroad  company  included  in  a plan whose entire outstanding capital   stock or whose railroad facilities are acquired by the city as  provided   therein  may be dissolved without judicial proceeding in the same manner   as provided in and subject  to  the  same  provisions  as  contained  in   section  one  hundred  five of the stock corporation law with respect to   the dissolution of stock corporations, and upon filing  the  certificate   of  dissolution  in  the office of the secretary of state, titles to and   ownership of the railroad, franchises, properties  and  assets  of  such   railroad  company shall pass to and vest in the city. The certificate of   dissolution of any such railroad company shall bear endorsed thereon, in   addition to the consent of the state tax commission,  the  approval  and   consent of the commission to the filing of such certificate.c. In connection with the preparation of any plan the commission shall   cause  a valuation to be made of the railroads, properties and interests   therein,  including  leases  and  leasehold  interests  and  outstanding   contracts  the assignment to or cancellation of which by the city may be   deemed advisable but  excluding  franchises  and  going  value,  of  the   railroad  company  or railroad companies it proposes to include therein.   Any such valuation including the value of contracts acquired may  be  in   such  detail  and  include such elements of cost or value and be made in   such manner as the commission  from  time  to  time  may  determine  and   prescribe,   with   due  regard  to  the  past,  present  and  estimated   prospective earnings of such railroads, properties and interests at  the   rate  of  fare  that the railroad company prior to April twenty-seventh,   nineteen hundred twenty-one was entitled to charge under the  provisions   of  the contracts or franchises under which such properties are operated   or held or of any lawful order then in force fixing or regulating  rates   of  fare, or under existing law, and in view of the competition of other   lines and with due regard to all other pertinent facts  and  conditions;   but  such  valuation  shall not in any case exceed the fair reproduction   cost of such properties less depreciation, and, in the case of leasehold   interests and contracts to be assigned, acquired or cancelled, the  fair   value  of  any  such  leaseholds  and  contracts.  Any such valuation as   finally determined by the commission may be the basis for the  inclusion   of  such  railroads, properties, contracts and interests in the plan and   for fixing the allowances and returns on account thereof under the  plan   and under any leases or contracts made in pursuance of its provisions.d.  In  connection with the preparation of the plan the commission may   include in the plan provision for railroads operating  between  a  point   within  the  city  and a point without the city and connecting railroads   whose lines stop at or near the city line. The plan may also include, in   addition to and in conjunction with the railroad of a  railroad  company   included  therein, a railroad owned by the city and/or a railroad leased   or to be leased by the city from the owner or lessee of such railroad.