N.Y. Public Authorities Law § 1279-b: Transition--election to withdraw from the metropolitan commuter transportation district

§ 1279-b. Transition--election to withdraw from the metropolitan

commuter transportation district. 1. The counties of Dutchess, Orange

and Rockland shall have an option to withdraw from the metropolitan

commuter transportation district and have such withdrawal take effect on

either: (a) January first, nineteen hundred eighty-seven. If any such

county plans to withdraw from the district on January first, nineteen

hundred eighty-seven, it shall (i) no later than seventy-five days after

the effective date of this section, furnish the commissioner of

transportation, and chairman of the authority and the other counties

which have an option to withdraw, a resolution adopted by the county

legislature providing notice of intent to withdraw, (ii) on or before

October first, nineteen hundred eighty-six, furnish to the commissioner

of transportation, the chairman of the authority and other counties

which have an option to withdraw, a resolution adopted by the county

legislature providing for a public transportation plan. For the purposes

of this section, a "public transportation plan" shall mean a plan that

maintains adequate and continuous public transportation services from

the withdrawing county to the city of New York or any terminus

previously served, provides a reasonable level of rail passenger

service, provides a schedule for implementing such service, protects the

public investment in the rail transportation system and any other

criteria deemed necessary by the commissioner of transportation. Prior

to withdrawal pursuant to this paragraph or paragraph (b) of this

subdivision, a county must receive approval of its public transportation

plan pursuant to paragraph (c) of this subdivision, (iii) on or before

December fifteenth, nineteen hundred eighty-six, furnish the

commissioner of transportation, a copy of an agreement with the

authority or an operator of rail passenger service for the provision of

rail passenger service to and from such county and the city of New York

or any terminus previously served.

If a county planning to withdraw on January first, nineteen hundred

eighty-seven is unable to withdraw because it could not meet the

requirements of this paragraph, it may elect to withdraw pursuant to

paragraph (b) of this subdivision hereafter.

(b) January first, nineteen hundred eighty-eight or January first,

nineteen hundred eighty-nine. If any such county plans to withdraw on

either January first, nineteen hundred eighty-eight or January first,

nineteen hundred eighty-nine, it shall (i) no later than ninety days

after the first of January of the year immediately preceding the year in

which such county plans to withdraw from the district, furnish the

commissioner of transportation, the chairman of the authority and the

other counties which have an option to withdraw, a resolution adopted by

the county legislature providing notice of intent to withdraw from the

district, (ii) no later than one hundred twenty days after the first of

January of the year immediately preceding the year in which such county

plans to withdraw from the district furnish to the commissioner of

transportation, the chairman of the authority and the counties which

have an option to withdraw a resolution adopted by the county

legislature providing a public transportation plan as described in this

section, (iii) on or before October first of the year immediately

preceding the year in which such county plans to withdraw from the

district, furnish to the commissioner a copy of an agreement with the

authority or an operator of rail passenger service for the provision of

rail passenger service to and from such county and the city of New York

or any terminus previously served.

(c) No later than thirty days after receipt of the public

transportation plan the commissioner of transportation shall, in

writing, either approve such plan as conforming with the requirements

heretofore described or disapprove such plan as failing to meet such

requirements and the reasons therefor. Disapproval of a plan shall not

prohibit a county from resubmitting a public transportation plan and

such resubmitted plan shall be approved or disapproved no later than

fifteen days after receipt by the commissioner of transportation. The

public transportation plan shall be subject to any state or federal

public hearing requirements which the authority would be subject to if

the authority made the changes proposed by such plan.

(d) Any such county which plans to withdraw from the district must

meet the requirements of this section prior to the effective date of

withdrawal, and no withdrawal for the purposes of this section shall

take effect unless such county furnishes the resolutions and agreement

prior to the effective date of withdrawal.

2. The authority and any subsidiary corporation of the authority shall

enter into an agreement or agreements with a county that plans to

withdraw from the district to transfer and assign to such county all

authority and subsidiary railroad facilities and operations, rights and

obligations, and contract rights and obligations, including operating

contract rights and obligations, which are owned, operated, maintained

or used directly or by contract or which are otherwise involved in the

provision of railroad services to such counties. Such agreement shall

provide, in the event a facility, operation, right or obligation is

necessary and material to the provision of rail passenger service in the

district or is not assignable under applicable bond covenants or

contracts or the parties agree that it should not be assigned, that the

authority or subsidiary thereof shall continue to hold and be

responsible for such facility, operation, right or obligation and that

such county shall reimburse to the authority that portion of the cost to

the authority or subsidiary of its retention of such facility,

operation, right or obligation that is allocable to such county. If the

parties agree that the authority or subsidiary thereof shall operate the

railroad facilities in a county after the effective date of such

county's withdrawal, the agreement also shall provide for the terms and

conditions of the operation of such service.

3. Within forty-five days of the effective date of this section, the

authority and any subsidiary corporation of the authority shall provide

to the counties of Dutchess, Orange and Rockland a written statement,

including cost estimates and the useful life, if any, of all of its

facilities, operations, rights and obligations relating to the provision

of rail service in such counties.

4. The authority and any subsidiary corporation of the authority is

authorized to enter into an agreement or agreements with a county that

plans to withdraw from the district, pursuant to which the authority or

subsidiary thereof will provide technical assistance to such county

prior to, during and after the withdrawal, with respect to the transfer

of ownership, operation, maintenance and use of railroad facilities

within such county. Such agreement may provide that the county reimburse

the authority or its subsidiary for the cost to the authority and its

subsidiary for the provision of such technical assistance.

5. The authority shall have no obligation to undertake or continue any

project or part thereof in a current or future capital program plan

which pertains to railroad facilities within or services to a county

that withdraws from the district on or after such date of withdrawal nor

shall the authority enter into any contract for a project or part

thereof which would increase liabilities pursuant to subdivision six of

this section in a county after such county notifies the authority of its

intent to withdraw as provided in subdivision one of this section,

provided, however, that if the authority has executed a contract for the

effectuation of a project or part thereof in a capital program plan in

such county, it shall be assigned to such county in accordance with

subdivision two of this section, unless the parties agree that it shall

not be assigned and that the authority or its subsidiary shall continue

to be responsible therefor, in which event the county shall reimburse

the authority or its subsidiary in accordance with the provisions of

subdivision two of this section.

6. Any county which withdraws from the district shall reimburse to the

authority or its subsidiary, within the time period agreed to by the

parties, any capital expenditures heretofore undertaken by the authority

or its subsidiary for railroad facilities only within such county which

were financed by commuter railroad revenue bonds issued by the

metropolitan transportation authority pursuant to section twelve hundred

sixty-nine of this article and are assigned to such county in accordance

with the provisions of subdivision two of this section.

7. The obligations of a county that withdraws from the district to

reimburse the authority and any subsidiary corporation of the authority

for the costs of operation, maintenance and use of passenger stations

pursuant to section twelve hundred seventy-seven of this article, shall

continue for any such costs incurred up to the effective date of the

county's withdrawal from the district and for costs incurred thereafter

that result from acts preceding such withdrawal, and the applicability

of the payment provisions and procedures of such section twelve hundred

seventy-seven to such county shall continue thereafter with respect to

the aforesaid costs.

8. In the event of a county's failure to make payment of any monies

determined by the authority to be owed and due it or any subsidiary

corporation of the authority pursuant to the terms of any agreement

entered into pursuant to this section, the authority is authorized to

recover such payments in the same manner as in section twelve hundred

seventy-seven of this article and the state comptroller shall withhold

and pay monies to the authority in accordance with the procedures set

forth in that section.

9. The term of office of any resident of a county that withdraws from

the district under this section, as a member of the board of the

authority, the Metro-North rail commuter council or the management

advisory board, which is based upon residence in such county, shall

terminate upon the county's withdrawal and the office shall be deemed

vacant and filled in the manner provided by law.

10. The provisions of this section and all agreements undertaken in

accordance herewith shall be subject to the rights of the holders of any

outstanding bonds or notes issued by the authority.