Create Transit Funding Authority

Section 1. Article 10-D of the public authorities law is amended by adding a new title 4 to read as follows:

TITLE 4

METROPOLITAN TRANSPORTATION

INFRASTRUCTURE FINANCING AUTHORITY Section 3975. Short title.

3976. Definitions.

3977. Metropolitan transportation infrastructure financing

authority.

3978. Administration of the authority.

3979. General powers of the authority.

3980. Bonds of the authority.

3981. Moneys of the authority.

3982. Use of bond proceeds.

3983. Agreement with state.

3984. Bonds as legal investments.

3985. Exemption from taxation.

3986. Audits.

3987. Remedies of bondholders.

3988. Assistance by state officers, departments, boards and

commissions.

3989. Applicability.

§ 3975. Short title. This title shall be known and may be cited as the "metropolitan transportation infrastructure financing authority act of 2017".

§ 3976. Definitions. For the purposes of this title, unless the context otherwise requires:

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

[ ] is old law to be omitted.

LBD07598-01-7

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1. "Authority" or "metropolitan transportation infrastructure financing authority" means the public benefit corporation created by this title.

2. "Bonds" means bonds, notes and other evidences of indebtedness, issued by the authority.

3. "Comptroller" means the comptroller of the state of New York.

4. "MTA" means the metropolitan transportation authority established pursuant to title eleven of article five of this chapter.

5. "Project capital costs" or "costs" means costs providing for the construction, reconstruction, acquisition or installation of physical public betterments or improvements; or the costs of any preliminary studies, appraisals, surveys, maps, plans, estimates and hearings; or costs for the preparation of designs, specifications, testing and environmental impact statements; or costs of engineering; or incidental costs, including, but not limited to, legal fees, printing or engraving, publication of notices, taking of title, apportionment of costs, and interest during construction; or any underwriting or other costs incurred in connection with the financing thereof.

6. "Revenues" means the tax revenues and all aid, rents, fees, charges, payments and the income and receipts paid or payable to the authority.

7. "State" means the state of New York.

8. "Tax revenues" means the taxes paid or payable to the authority pursuant to section thirty-nine hundred eighty-one of this title and such other revenues as the authority may derive directly from taxes imposed and collected by the state.

§ 3977. Metropolitan transportation infrastructure financing authority. 1. There is hereby created the metropolitan transportation infrastructure financing authority. The authority shall be a corporate governmental agency constituting a public benefit corporation and an instrumentality of the state.

2. In accordance with the provisions of this title, the authority may only finance costs, including the refunding of bonds issued by the authority to finance costs, and fund reserves to secure such bonds.

3. The authority shall continue until all its liabilities have been met or otherwise discharged. Upon the termination of the existence of the authority, all of its rights and property shall pass to and be vested in the state.

§ 3978. Administration of the authority. 1. The authority shall be administered by seven directors: five voting members consisting of the director of the budget, two members appointed by the governor, and one each by the speaker of the assembly and the temporary president of the senate; and two non-voting members, one each appointed by the minority leaders of the assembly and the senate.

2. The members of the board shall appoint one of the directors to serve as chairperson of the authority. The chairperson shall preside over all meetings of the directors and shall have such other duties as may be fixed by the directors.

3. Notwithstanding any inconsistent provision of any general, special or local law, ordinance, resolution or charter, no officer, member or employee of the state, any city, county, town or village, any governmental entity operating any public school or college, any school district or any other public agency or instrumentality which exercises governmental powers under the laws of the state, shall forfeit his or her office or employment by reason of his or her acceptance of appoint-

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ment as a director of the authority, nor shall service as such director be deemed incompatible or in conflict with such office or employment.

4. Notwithstanding any inconsistent provision of this chapter, five directors shall constitute a quorum for the transaction of any business or the exercise of any power of the authority. No action shall be taken by the authority except pursuant to a favorable vote of at least five directors present at a meeting at which such action is taken. Any director may, by written instrument, filed with and approved as to form by the authority, designate an alternate to perform, in the absence of such director, his or her duties under this title. The term "director" as used in this title shall include such alternates, except that no alternate may designate an alternate pursuant to this subdivision. The designation of such alternates shall be deemed temporary only and shall not affect the civil service or retirement rights of any persons so designated.

5. The authority shall appoint a treasurer and may appoint or employ officers, employees or agents as it may require and prescribe their duties.

6. The directors shall not be paid a salary, but shall be reimbursed or paid for all actual and necessary expenses incurred in the discharge of their duties.

§ 3979. General powers of the authority. Except as otherwise limited by this title, the authority shall have the following powers in addition to those specially conferred elsewhere in this title, subject only to agreements with bondholders:

1. to sue and be sued;

2. to have a seal and alter the same at pleasure;

3. to make and alter by-laws for its organization and management and, subject to agreements with its bondholders, to make and alter rules and regulations governing the exercise of its powers and fulfillment of its purposes under this title;

4. to make and execute contracts and all other instruments or agreements necessary or convenient to carry out any powers and functions expressly given in this title;

5. to commence any action to protect or enforce any right conferred upon it by any law, contract or other agreement;

6. to borrow money and issue bonds, or to refund the same, and to provide for the rights of the holders of its obligations;

7. to accept gifts, grants, loans or contributions of funds or financial or other aid in any form from the city, state or federal government or any agency or instrumentality thereof, or from any other source and for any of its corporate purposes in accordance with the provisions of this title;

8. to invest any funds held in reserves or sinking funds, or any funds not required for immediate use or disbursement, at the discretion of the authority;

9. to pledge all or any part of its revenues as security for the payment of the principal of and interest on any bonds so issued and any agreements made in connection therewith;

10. to appoint such officers and employees as it may require for the performance of its duties and to fix and determine their qualifications, duties, and compensation; and to retain or employ counsel, auditors and private financial consultants on a contract basis or otherwise for rendering professional or technical services and advice; and

11. to do any and all things necessary or convenient to carry out its purposes and exercise the powers expressly given and granted in this

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title provided, however, such authority shall under no circumstances acquire, hold or transfer title to, lease, own beneficially or otherwise, manage, operate or otherwise exercise control over any real property, any improvement to real property or any interest therein other than a lease of office space deemed necessary or desirable by the authority.

§ 3980. Bonds of the authority. 1. The authority shall have the power and is hereby authorized from time to time to issue bonds, in conformity with applicable provisions of the uniform commercial code, in such principal amounts as it may determine to be necessary, not to exceed the principal aggregate amount of eight billion dollars. The authority shall have the power from time to time to refund any bonds of the authority by the issuance of new bonds whether the bonds to be refunded have or have not matured, and may issue bonds partly to refund bonds of the authority then outstanding. Bonds issued by the authority shall be payable solely out of the specific revenues or other moneys of the authority as may be designated in the proceedings of the authority under which the bonds shall be authorized to be issued, and subject to any agreements with the holders of outstanding bonds pledging any particular revenues or moneys.

2. Such bonds shall be authorized by resolution of the authority, shall bear such date and shall mature at such time or times as such resolution may provide. The bonds may be issued as serial bonds or as term bonds or as a combination thereof. The bonds shall bear interest at such rate or rates, be in such denominations and in such form, either coupon or registered, carry such registration privileges, be executed in such manner, be payable in such medium of payment, at such place or places and be subject to such terms of redemption as such resolution may provide.

3. Any resolution or resolutions authorizing bonds or any issue of bonds may contain provisions which may be a part of the contract with the holders of the bonds thereby authorized as to:

(a) pledging all or part of its revenues, together with any other moneys, securities or contracts, to secure the payment of the bonds, subject to such agreements with bondholders as may then exist;

(b) the setting aside of reserves and the creation of sinking funds and the regulation and disposition thereof;

(c) limitations on the purpose to which the proceeds from the sale of bonds may be applied;

(d) limitations on the issuance of additional bonds, the terms upon which additional bonds may be issued and secured and the refunding of bonds;

(e) the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, including the proportion of bondholders which must consent thereto and the manner in which such consent may be given; and

(f) defining the acts or omissions to act which may constitute a default in the obligations and duties of the authority to the bondholders and providing for the rights and remedies of the bondholders in the event of such default, including as a matter of right the appointment of a receiver; provided, however, that such rights and remedies shall not be inconsistent with the general laws of the state and other provisions of this title.

4. In addition to the powers herein conferred upon the authority to secure its bonds, the authority shall have power in connection with the issuance of bonds to enter into such agreements for the benefit of the

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bondholders as the authority may deem necessary, convenient or desirable concerning the use or disposition of its revenues or other moneys, including the entrusting, pledging or creation of any other security interest in any such revenues, moneys and the doing of any act, including refraining from doing any act, which the authority would have the right to do in the absence of such agreements. The authority shall have power to enter into amendments of any such agreements within the powers granted to the authority by this title and to perform such agreements. The provisions of any such agreements may be made a part of the contract with the holders of bonds of the authority.

5. The authority shall have power to contract with holders of any of its bonds as to the custody, collection, securing, investment, and payment of any moneys of the authority, of any moneys held in trust or otherwise for the payment of bonds, and to carry out such contract. Moneys held in trust or otherwise for the payment of bonds or in any way to secure bonds or notes and deposits of such moneys may be secured in the same manner as moneys of the authority, and all banks and trust companies are authorized to give such security for such deposits.

6. Whether or not the bonds of the authority are of such form and character as to be negotiable instruments under the terms of the uniform commercial code, the bonds are hereby made negotiable instruments within the meaning of and for all the purposes of the uniform commercial code, subject only to the provisions of the bonds for registration.