Bill Text: NY S05049 | 2019-2020 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Enacts the statewide transportation authority reinvestment (STAR) act of 2020; exempts mass transit authorities from bond issuance charges.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed - Dead) 2020-01-21 - REPORTED AND COMMITTED TO FINANCE [S05049 Detail]

Download: New_York-2019-S05049-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          5049
                               2019-2020 Regular Sessions
                    IN SENATE
                                      April 4, 2019
                                       ___________
        Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
          printed to be committed to the Committee on Corporations,  Authorities
          and Commissions
        AN  ACT  to  amend  the public authorities law, in relation to exempting
          mass transit authorities from bond issuance charges
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Short  title. This act shall be known and may be cited as
     2  the "statewide  transportation  authority  reinvestment  (STAR)  act  of
     3  2019".
     4    §  2.  Legislative  intent.  The  public authorities that provide mass
     5  transit service in the areas of  New  York  City,  Long  Island,  Hudson
     6  Valley, Buffalo, Rochester, Albany, Syracuse and their suburbs are given
     7  the  power to issue debt, which they can use to fund capital projects or
     8  operations. However, state law requires these  authorities  to  pay  the
     9  state  a  fee  each  time  they issue bonds, totaling up to almost 1% of
    10  bonds issued depending on the amount of the  issuance.  The  legislature
    11  finds that in a time when these authorities face increasing fiscal chal-
    12  lenges,  the  fees  these  authorities must pay to the state rob them of
    13  resources to maintain reliable, attractive bus and rail service which is
    14  an inherent public good. It is the intent of the legislature to  relieve
    15  transportation  authorities  of the burden of acting as a revenue source
    16  for the state when they invest in their operations and  capital  infras-
    17  tructure,  and  that  these  authorities  use  the  savings accrued from
    18  exemptions from this fee to maintain service levels and prevent  service
    19  cuts, or for transformative capital projects.
    20    §  3.  Section  2 of the public authorities law is amended by adding a
    21  new subdivision 7 to read as follows:
    22    7. "mass transit authority" shall mean the metropolitan transportation
    23  authority, New York City transit authority, Triborough bridge and tunnel
    24  authority, Capital District transportation authority, Central  New  York
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11065-01-9
        S. 5049                             2
     1  regional  transportation authority, Rochester-Genesee regional transpor-
     2  tation authority, Niagara  Frontier  transportation  authority  and  all
     3  subsidiaries thereof. It shall also refer to any local or state authori-
     4  ty  created  for  the  purpose  of  operating  transportation facilities
     5  including, but not limited to railroad  and/or  omnibus  facilities.  In
     6  addition,  it shall refer to any local or state authority whose chairman
     7  and members also serve as the chairman and members of a local  or  state
     8  authority created for the purpose of operating transportation facilities
     9  including, but not limited to railroad and/or omnibus facilities.
    10    §  4.  Subdivision 4 of section 2976 of the public authorities law, as
    11  added by section 12 of part E of chapter 494 of the  laws  of  2009,  is
    12  amended to read as follows:
    13    4.  The  provisions  of subdivisions one and two of this section shall
    14  not apply to bonds issued by mass transit authorities  and  to  recovery
    15  act  bonds issued by the state of New York municipal bond bank agency in
    16  connection with local American Recovery and Reinvestment Act pursuant to
    17  section two thousand four hundred thirty-six-b of this chapter.
    18    § 5. This act shall take effect immediately.