Let Putnam Leave Transit District

Section 1. Section 1279-b of the public authorities law, as added by chapter 669 of the laws of 1986, the opening paragraph of subdivision 1, the opening paragraph of paragraph (a) of subdivision 1 and subdivisions 3 and 5 as amended by chapter 670 of the laws of 1986, is amended to read as follows:

§ 1279-b. Transition--election to withdraw from the metropolitan commuter transportation district. 1. The counties of Dutchess, Orange, Putnam and Rockland shall have an option to withdraw from the metropolitan commuter transportation district and have such withdrawal take effect on either: (a) [January] April first, [nineteen hundred eightyseven] two thousand nineteen. If any such county plans to withdraw from the district on [January] April first, [nineteen hundred eighty-seven] two thousand nineteen, 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] January first, [nineteen hundred eighty-six] two thousand eighteen, 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

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD01817-01-7

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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. Such public transportation plan shall include, but not be limited to, an agreement by which such county shall be entitled to lease the facilities and services comprising such rail transportation system at fair market value and under such terms and conditions to be determined as set forth in subdivision six of this section. 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] two thousand eighteen, 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 such agreement has not been concluded by the respective parties, and a party has exercised its rights pursuant to subdivision six of this section, the approval of the commissioner of transportation shall not be required and the agreement or order set forth in subdivision six of this section, shall determine the terms and conditions of such withdrawal.

If a county planning to withdraw on [January] April first, [nineteen hundred eighty-seven] two thousand nineteen 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] two thousand twenty or January first, [nineteen hundred eighty-nine] two thousand twenty-one. If any such county plans to withdraw on either January first, [nineteen hundred eighty-eight] two thousand twenty or January first, [nineteen hundred eighty-nine] two thousand twenty-one, 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. If such agreement has not been concluded by the respective parties, and a party has exercised its rights pursuant to subdivision six of this section, the approval of the commissioner of transportation shall not be required and the agreement or order set forth in such subdivision six shall determine the terms and conditions of such withdrawal.

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(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] within 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, Putnam 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

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shall the authority enter into any contract for a project or part thereof which would increase liabilities pursuant to subdivision [six] six-a 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. Should the counties of Dutchess, Orange, Putnam or Rockland seek to withdraw from the district pursuant to this section, any such county and the authority, and/or, if appropriate any subsidiary corporation of the authority shall negotiate in good faith any agreement required by this section for withdrawal from the district. Such negotiations shall commence not later than fifteen days after the public transportation plan prepared by any such county has been submitted by such county to the authority, and/or, if appropriate, a subsidiary authority. In no event shall a county be required to negotiate with both the authority and a subsidiary authority. The negotiations conducted by and the actions of the authority or subsidiary authority shall be binding. If after sixty days from the commencement of such negotiations or at any time thereafter the authority or any subsidiary corporation of the authority and a county are unable to reach an agreement required by this section for such withdrawal, either party may make application to a justice of the supreme court presiding in the counties of Dutchess, Orange, Putnam or Rockland for appointment of a special referee. Each party shall submit to the justice a list containing the names and qualifications of five persons to serve as special referee. The justice shall select one person from among the names submitted by the parties to serve as special referee. The special referee shall mediate the negotiations for withdrawal for a period of no longer than sixty days. If, at the end of said sixty day period, the parties are not able to reach agreement, the special referee shall, within thirty days thereafter, recommend the terms of the withdrawal to the justice. The justice shall review the recommendations of the referee and the positions of the parties thereon and shall issue an order setting forth the terms of the withdrawal. Notwithstanding the entry of such order, a county shall have fifteen days from the entry of such order to terminate such proceeding. Upon the timely exercise of such right to terminate, such proceeding shall be deemed null and void and of no further effect. If a county has not exercised its right to terminate, said order shall be subject to appellate review in accordance with the civil practice law and rules, provided that any appeal from the order shall be granted expedited status.

6-a. 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 sixtynine of this [article] title and are assigned to such county in accordance with the provisions of subdivision two of this section.

[7.] 6-b. The obligations of a county that withdraws from the district to reimburse the authority and any subsidiary corporation of the author-

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