Increases maximum civil penalties authorized to be imposed for violations of the rules of the New York city transit authority

Summary of provisions

Section 1 of the bill would amend Public Authorities Law ("PAL") § 1204(5-a) to increase from $100 to $500 the maximum civil fine for violation of NYCT's Rules of Conduct. Section 1 also authorizes TAB to increase from $50 to $100 the penalties for those who violate NYCT's Rules of Conduct for failure to appear or make a timely response before the TAB.

Section 2 of the bill would amend PAL § 1209-a(4)(b) to increase civil penalties for transit infractions from $150 to $600 per infraction.

Section 3 of the bill would amend PAL § 1209-a(7)(a) and (g) to authorize service of notice of TAB hearing dates and orders, by first class mail, rather than registered or certified mail.

Section 4 of the bill would amend PAL § 1209-a(8) to authorize service of notices of TAB Appeals Board hearing dates by first-class mail, rather than registered or certified mail.

Section 5 of the bill provides for an immediate effective date.

Existing law

PAL §§ 1204.5-a and 1209-a(4)(b) limit the maximum fine for TAB violations to $100, and up to an additional $50 in penalties when respondents fail to adhere to required TAB procedures.

PAL §1209-a(5) requires that notices of violation of NYCT Rules of Conduct be personally served. The pertinent provisions regarding notices of TAB hearing dates, orders of adjournment, notices of decisions and orders, and notices of appeals board appearances are found in § 1209 a(7)(a), 7(g) and 8(d). Though all such notices are strictly administrative, they must be sent by registered or certified mail. By contrast, PAL § 1209-a(9)(c) authorizes TAB to use first-class mail for notices of default and notices of whether a judgment has been entered against a respondent.

Justification

This bill will make Transit Adjudication Bureau (TAB) proceedings more effective by increasing the deterrent effect of its sanctions and

easing the administrative and financial burden those proceedings place on New York City Transit (NYCT).

TAB was established in 1984 to provide a civil alternative to the Criminal Courts for the adjudication of infractions of NYCT's Rules of Conduct. Since its inception, TAB has played a significant role in reducing fare evasion, graffiti, disorderly conduct, littering, and other unlawful activities that impact the safety, security and comfort of NYCT riders. However, despite numerous fare increases and an over 100 percent increase in the consumer price index between 1985 and 2007, the fine structure for violations of NYCT's Rules of Conduct has remained unchanged since its inception.

This has hindered TAB's ability to provide an appropriate deterrent to fare evasion. A recent report issued by the Metropolitan Transportation Authority's (MTA) Subway Division estimated that 18.5 million people entered NYCT stations without paying in 2009, an average of 50,684 a day. These fare evasions cost the MTA $31 million in revenue. Based on 2009 statistics, the Subway Division's report estimated that a routine offender could expect to receive citation once every six to 13 weeks, making it far more economical to pay the $100 fine rather than the $162 cost to purchase six weekly metro cards.

In order for NYCT's Rules of Conduct and TAB to provide an appropriate deterrent effect, it is necessary to adjust the fine structure and give the TAB the flexibility to keep pace with inflation.

In addition, NYCT began a select bus service (bus rapid transit) pilot program in the early summer of 2008. There are two distinctive features of bus rapid transit, both designed to reduce the time needed for passengers to board. Customers will pre-pay and obtain a proof of payment receipt which the will be required to maintain in their possession for the duration of the trip. And, they will be able to board the bus through both the front and rear doors. These features create new challenges in preventing fare evasion -- the ability to impose a far more substantial fine for fare evasion would be a valuable deterrent and adjunct to any enforcement effort.

This bill would also make TAB's proceedings more efficient and less costly by lessening the burden placed on NYCT by notice requirements.

NYCT must personally serve an initial notice of violation of NYCT rules, the most important notice. Nothing in this bill changes that requirement. This bill affects only how NYCT will serve later administrative notices.

Under current law, TAB, like New York City's Parking Violations Bureau and Environmental Control Board, already uses first-class mail for some of these notices: notices of default and notices of whether TAB has entered a judgment against a respondent. But TAB is required to send other administrative notices by certified or registered mail. TAB therefore annually sends out some 20,000 pieces of certified mail at a current cost of approximately $5.25 each. Permitting TAB to serve these kinds of notices by first class mail will save TAB approximately $100,000 annually in postage costs alone.

It makes little sense to require more expensive and sometimes less reliable or less convenient certified or registered mail for the vast majority of TAB notices, but allow first-class mail for other important TAB notices.

In addition to savings in postage, this bill allows TAB to reduce the administrative costs of processing its mail by approximately $6,000 annually. Since 1996, when the MTA began proposing this change, the MTA would have realized approximately $1 million in savings if this straight-forward, administrative-efficiency bill had been enacted into law.

Not only is first-class mail less expensive than certified or registered mail, but it is at least as effective, perhaps more so. Many notices sent by certified mail are returned to TAB because the respondent was not available at the time of home delivery, and did not pick up the certified mail at the post office despite notices left by the letter carrier. Indeed, TAB relies upon first class delivery if it is unable to serve a notice by certified mail. Furthermore, service by first-class mail will benefit recipients, who will avoid the inconvenience of having to retrieve certified mail from the post office.

Legislative history

2009-10: Similar legislation, S.3618 Referred to Transportation

Fiscal implications

The first-class mail portion of this bill will save the MTA an estimated $100,000 annually, with an additional $6,000 in savings in administrative costs.

The increased fines for TAB violations will likely result in additional TAB revenues that should be partially offset by a reduced number of violations based on the expected deterrent effect of the increased fines.

Effective date

Immediately.