Create MTA Oversight Board

Section 1. Section 1279-a of the public authorities law is REPEALED.

§ 2. Article 5 of the public authorities law is amended by adding a new title 10-E to read as follows:

TITLE 10-E

METROPOLITAN TRANSPORTATION

AUTHORITY FISCAL OVERSIGHT CONTROL BOARD Section 1240. Short title.

1241. Legislative intent.

1242. Definitions.

1243. Establishment of metropolitan transportation authority

fiscal oversight control board.

1244. Administration of the board.

1245. General powers of the board.

1246. Transfer of powers, duties and functions.

1247. Transfer of records.

1248. Transfer of employees.

1249. Continuity of authority.

1250. Completion of unfinished business.

1251. Terms occurring in laws, contracts and other documents.

1252. Existing rights and remedies preserved.

1253. Pending actions and proceedings.

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

[ ] is old law to be omitted.

LBD08154-01-7

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1254. Assistance to the board; employees of the inspector gener-

al.

1255. Review period.

1256. MTA financial plan.

1257. Actions against the board.

1258. Audits.

1259. Effect of inconsistent provisions.

1259-a. Separability; construction.

§ 1240. Short title. This title shall be known and may be cited as the "Metropolitan transportation authority fiscal oversight control board act".

§ 1241. Legislative intent. The legislature hereby finds and declares that the metropolitan transportation authority is facing an ongoing financial crisis, and that the crisis cannot be resolved absent outside intervention. The legislature therefore declares that the creation of an independent fiscal oversight board is necessary to address this financial crisis to restore the confidence of the financial markets, those who use the metropolitan transportation authority services, those who do business with such authority and the people of the state of New York.

§ 1242. Definitions. For the purposes of this title, unless the context requires otherwise:

1. "Board", "control board" and "fiscal oversight control board" mean the metropolitan transportation authority fiscal oversight control board established by section twelve hundred forty-three of this title.

2. "Forensic audit" means the use of accounting methods to collect forensic evidence to determine if a criminal act including, but not limited to, embezzlement or fraud, is occurring or has occurred within the MTA.

3. "Inspector general" means the office of metropolitan transportation authority inspector general established by section twelve hundred seventy-nine of this article.

4. "MTA" means the metropolitan transportation authority established by title eleven of this article.

5. "MTA region" means the metropolitan commuter transportation district established by section twelve hundred sixty-two of this article.

§ 1243. Establishment of metropolitan transportation authority fiscal oversight control board. There is hereby established the metropolitan transportation authority fiscal oversight control board, as an independent entity within the office of inspector general, which shall exercise the powers and duties provided for in this title.

§ 1244. Administration of the board. 1. The board shall consist of seven members which shall be appointed by the governor. Of the seven members, one such member shall be appointed following the recommendation of the state comptroller; one such member shall be appointed on the recommendation of the temporary president of the senate; one such member shall be appointed on the recommendation of the speaker of the assembly; one such member shall be appointed on the recommendation of the minority leader of the senate; and one such member shall be appointed on the recommendation of the minority leader of the assembly. Every member, who is otherwise an elected official, shall be entitled to designate a single representative to attend, in his or her place, meetings of the board and to vote or otherwise act in his or her behalf. Such designees shall be residents of the state. Written notice of such designation shall be furnished prior to any participation by the single designee. Such single designee shall serve at the pleasure of the representative,

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and shall not be authorized to delegate any of his or her duties or functions to another person. Each member shall be appointed for a term of four years, provided however, that three of the members first appointed by the governor, including the member appointed following the recommendation of the state comptroller shall serve for a term ending June thirtieth, two thousand twenty-one, and the remaining four members first appointed by the governor including the members appointed on the recommendation of the temporary president of the senate, the speaker of the assembly, the minority leader of the senate and the minority leader of the assembly shall serve for a term ending June thirtieth, two thousand twenty-three. Each member shall hold office until his or her successor has been appointed and qualified. Thereafter, each member shall serve a term of four years, except that any member appointed to fill a vacancy shall serve only until the expiration of his or her predecessor's term.

2. The governor shall designate a chair and a vice-chair from among the members. The chair shall preside over all meetings of the members and shall have such other duties as the members may prescribe. The vicechair shall preside over all meetings of the members in the absence of the chair and shall have such other duties as the members may prescribe.

3. The members of the board shall serve without salary, but each member shall be reimbursed for actual and necessary expenses incurred in the performance of such member's official duties as a member of the board.

4. 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 appointment as a member, officer or employee of the board, nor shall service as such member, officer or employee of the board be deemed incompatible or in conflict with such office or employment.

5. Four members shall constitute a quorum for the transaction of any business or the exercise of any power of the board. No action shall be taken by the board except pursuant to a favorable vote of at least four members participating in a meeting at which such action is taken.

6. The board shall appoint a treasurer and may appoint officers and agents as it may require and prescribe their duties.

§ 1245. General powers of the board. Except as otherwise limited by this title, the board shall have the following powers and duties:

1. to make and alter by-laws for its organizations and management;

2. 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;

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

4. to review, authorize and approve all contracts of the MTA or any of its subsidiaries in excess of one hundred thousand dollars;

5. to approve or disapprove the financial plan and the financial plan modifications of the MTA, and shall formulate and adopt its own modifications to the financial plan, as necessary such modifications shall become effective upon their adoption by the control board;

6. to set a maximum level of spending for any proposed budget of any subsidiary organizations of the MTA;

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7. (a) to impose a wage and/or hiring freeze upon a finding by the control board that a wage and/or hiring freeze is essential to the adoption or maintenance of a MTA budget or financial plan that is in compliance with this title, the board shall be empowered to order that all increases in salary or wages of employees of the MTA and employees of covered subsidiaries which will take effect after the date of the order pursuant to collective bargaining agreements, other analogous contracts or interest arbitration awards, in existence or thereafter entered into, requiring such salary or wage increases as of any date thereafter are suspended. Such order may also provide that all increased payments for holiday and vacations differentials, shift differentials, salary adjustments, according to plan and step-ups or increments for employees of the MTA and employees of covered subsidiaries which will take effect after the date of the order pursuant to collective bargaining agreements, other analogous contracts or interest arbitration awards requiring such increased payments as of any date thereafter are, in the same manner, suspended. For the purposes of computing the pension base of retirement allowances, any suspended salary or wage increases and any other suspended payments shall not be considered as part of compensation or final compensation or of annual salary earned or earnable.

(b) Notwithstanding the provisions of paragraph (a) of this subdivision, this subdivision shall not be applicable to employees of the MTA or employees of a covered subsidiary subject to a collective bargaining agreement or an employee of the MTA or a covered subsidiary not subject to the collective bargaining agreement where the collective bargaining representative or such unrepresented employee has agreed to a deferment of salary or wage increase, by an instrument in writing which has been certified by the control board as being an acceptable and appropriate contribution toward alleviating the fiscal crisis of the authority. Any such agreement to a deferral of salary or wage increase may provide that for the purposes of computing the pension base of retirement allowances, any deferred salary or wage increase may be considered as part of compensation or final compensation or of annual salary earned or earnable.

(c) Notwithstanding the provisions of paragraphs (a) and (b) of this subdivision, no retroactive pay adjustments of any kind shall accrue or be deemed to accrue during the period of wage freeze, and no such additional amounts shall be paid at the time a wage freeze is lifted, or at any time thereafter;

8. to conduct forensic audits and report any in which there is reason to believe a violation of a law, abuse or waste occurred relating to the MTA to the state inspector general or, where applicable, the inspector general;

9. to review and approve or disapprove any collective bargaining agreement to be entered into by the MTA or any covered subsidiary or purporting to bind, the MTA or any covered subsidiary. Prior to entering into any collective bargaining agreement, the MTA or any covered subsidiary shall submit a copy of such collective bargaining agreement to the control board, accompanied by an analysis of the projected costs of such agreement and certification that execution of the agreement will be in accordance with the financial plan. Such submission shall be in such form and shall include such additional information as the control board may prescribe. The control board shall promptly review the terms of such collective bargaining agreement and the supporting information in order to determine compliance with the financial plan, and shall disapprove any collective bargaining agreement which, in its judgement, would be

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inconsistent with the financial plan. No collective bargaining agreement binding, or purporting to bind, the MTA or any covered subsidiary after the effective date of this title shall be valid and binding upon the MTA or any covered subsidiary unless first approved by resolution of the control board and shall act jointly with the MTA in selecting members of any interest arbitration panel. Notwithstanding any other evidence presented by the MTA, the covered organization or any recognized employee organization, the arbitration panel must, prior to issuing any final decision, provide the board with the opportunity to present evidence regarding the fiscal condition of the MTA;

10. to make recommendations to the governor, the temporary president of the senate, the speaker of the assembly, the minority leaders of the senate and the assembly, and the chairs and ranking minority members of the following committees: the senate finance committee, the assembly ways and means committee, the senate committee on corporations, authorities and commissions and the assembly committee on corporations, authorities and commissions and control board members concerning opportunities to improve the performance, reporting, reformation, structure and oversight of the MTA;

11. to provide such additional information and analysis as may be reasonably requested by the legislature and state comptroller;

12. to review the potential for and make recommendations to the governor and legislature regarding the terms of board members;