§ 1203-A — Subsidiary corporation

New York § 1203-A

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 9: New York City Transit Authority
• Art. 5: Public Utility Authorities

Text

§ 1203-a. Subsidiary corporation. 1. Notwithstanding the provisions of\nthis title or of any general, special or local law to the contrary, the\ncity and the transit authority may enter into an agreement which shall\nprovide that any omnibus lines hereafter acquired by the city may be\nleased by the city for operation and maintenance to a public benefit\ncorporation which shall be a subsidiary of the transit authority. The\nstatus of such officers and employees as shall be taken into the service\nof such subsidiary corporation, including those who had been employed by\nthe former owner of any such omnibus lines, shall be governed\nexclusively by the provisions of this section.\n 2. A public benefit corporation entitled Manhattan and Bronx surface\ntransit operating authority (hereinafter referred to as the subsidiary\ncorporation) is hereby created. The purpose of said subsidiary\ncorporation shall be to operate, pursuant to the powers conferred\nhereunder and for a temporary period, the omnibus lines hereafter\nacquired by the city, until the said omnibus lines shall be sold or\notherwise disposed of to private or public operation. The directors of\nsuch subsidiary corporation shall be the persons holding the offices of\nchairman and members of the transit authority or their successors. The\nprovisions of this title concerning the number of members of the\nauthority, the number thereof required for a quorum and to transact\nbusiness, the powers and functions of the chairman and his authority to\ndelegate the same, and the effect which the tenure of the members and\nchairman has upon the holding of other public office shall all be\napplicable with like force and effect to the directors of such\nsubsidiary corporation.\n 3. The subsidiary corporation shall have all of the powers vested in\nthe transit authority by section twelve hundred four of this title\nexcept those contained in subdivisions five, six, eight, nine, fourteen\nand sixteen thereof. In addition, such subsidiary corporation shall have\nthe following powers:\n (a) pursuant to the provisions of this section, to maintain and\noperate the omnibus lines transferred to it by the city;\n (b) to appoint officers and employees, assign powers and duties to\nthem and fix their compensation. Said officers and employees shall not\nbecome, for any purpose, employees of the city or of the transit\nauthority and shall not acquire civil service status or become members\nof the New York city employees' retirement system but, shall, for\npurposes of subparagraph (i) of paragraph three of subsection (c) of\nsection six hundred twelve of the tax law be deemed to be officers and\nemployees of a subdivision of the state;\n (c) to improve, maintain and operate such buildings, structures and\nfacilities as may be necessary or convenient;\n (d) with the consent of the transit authority, to use officers,\nemployees, agents and facilities of the transit authority and to\nreimburse the transit authority therefor;\n (e) to utilize business methods and efficient procedures to promote\nthe safety and convenience of the traveling public, in the carrying out\nof its corporate purposes;\n (f) to operate omnibus lines on those routes in the city of New York\nwhere on February twenty-eighth, nineteen hundred sixty-two, omnibus\nlines were operated under franchises or temporary certificates of\nconvenience and necessity which have been revoked, terminated, rescinded\nor condemned, or acquired by any other means, and to extend such routes\nso as to provide the complete service operated on February\ntwenty-eighth, nineteen hundred sixty-two; and such operation, together\nwith the necessary extensions, shall be deemed to constitute operation\nover approved routes with the same force and effect as if the said\nroutes had been duly approved by the board of estimate of the city, as\nprovided by law; and to operate on such other routes as the board may\nauthorize by resolution adopted only after a public hearing held after\nnotice thereof, and of the proposed route, and the proposed resolutions\nauthorizing the same, have been published in full for at least fifteen\ndays, except Sundays and legal holidays, immediately prior thereto in\nthe City Record, and at least twice in two newspapers published in the\nborough or boroughs affected, to be designated by the board.\n 4. Such subsidiary corporation and any of its property, functions and\nactivities shall have all of the privileges, immunities, tax exemptions\nand other exemptions of the transit authority.\n 5. The agreement between the city and the subsidiary corporation by\nwhich the said omnibus lines are leased shall provide as follows:\n (a) for the rate or rates of fare to be charged on such omnibus lines,\nprovided, however, that from and after March first, nineteen hundred\nsixty-eight, the subsidiary corporation shall have full and exclusive\ncontrol over the setting of such rate or rates of fare;\n (b) the subsidiary corporation shall be entitled to utilize the\nofficers, employees, agents, facilities and services of the city on the\nsame terms and conditions as are applicable to or provided to the\ntransit authority;\n (c) capital costs not now charged by the transit authority as\noperating expenses shall be paid by the city; provided, however, that\nfrom and after March first, nineteen hundred sixty-eight, the subsidiary\ncorporation shall also have the right to incur capital costs in its own\nname to the extent that capital funds are available to it pursuant to\nthe provisions of sections twelve hundred nineteen-a and twelve hundred\nthree-b of this chapter or of any other law, which capital costs shall\nnot be payable by the city; and provided, further, that no project to be\nfinanced by the use of such capital funds which is estimated by the\nsubsidiary corporation to involve an expenditure in excess of one\nmillion dollars shall be commenced unless the mayor and the board of\nestimate shall each have been notified in writing by the subsidiary\ncorporation of the intent of the subsidiary corporation to undertake\nsuch project and of the nature thereof. No such project shall be\ncommenced if and to the extent that either the mayor or a majority in\nvoting power of the members of the board of estimate shall find that it\nis incompatible with sound planning for the development or redevelopment\nof the city, provided such finding, together with the reasons therefor,\nis set forth in a writing delivered to the subsidiary corporation within\nthirty days of the receipt by the mayor or the board of estimate, as the\ncase may be, of the notification of the subsidiary corporation relating\nto such project. Where the city is required to pay the capital costs of\nthe subsidiary corporation pursuant to such agreement, serial bonds or\ncapital notes may be issued by the city, pursuant to the local finance\nlaw, to finance any such costs. The subsidiary corporation shall submit\ntimely requests for the necessary capital funds to the city planning\ncommission and the mayor of the city;\n (d) The initial working capital of the subsidiary corporation shall be\nadvanced by the city from any funds of the city (but not from borrowed\nfunds) in the form of a grant or a loan in such amount as the parties\nshall deem necessary but in no event shall the said amount exceed five\nmillion dollars. If in the form of a grant, the advance shall be deemed\nto be in partial consideration of the acceptance by the subsidiary\ncorporation of the initial transfer, in which case the sum shall not be\nrepaid, but if in the form of a loan, the amount of the advance shall be\nrepaid under such terms and conditions as shall be mutually agreed upon\nby the parties.\n 6. The provisions of section twelve hundred seven, subdivision one,\nsections twelve hundred eight, twelve hundred nine, twelve hundred\neleven, twelve hundred twelve, twelve hundred twelve-a, twelve hundred\nthirteen, twelve hundred fifteen, twelve hundred sixteen, twelve hundred\ntwenty and twelve hundred twenty-one of this title, shall apply to the\nsubsidiary corporation in the same manner as to the transit authority\nand the term "authority", as used in such sections shall be deemed to\napply to the subsidiary corporation.\n 7. Upon the written request of the mayor the subsidiary corporation\nshall permit reduced fares for one or more classes of omnibus line users\ndesignated by the mayor upon the agreement of the city to assume the\nburden of the resulting differential, together with the attendant\nadministrative costs of the subsidiary corporation, pursuant to\nprocedures satisfactory to the subsidiary corporation.\n 8. From and after March first, nineteen hundred sixty-eight, no\nsubstantial or general change in the levels of service furnished upon\nthe facilities of the subsidiary corporation shall be instituted except\nupon not less than thirty days' written notice to the mayor and to the\nboard of estimate.\n 9. The subsidiary corporation shall establish and publish or cause to\nbe published schedules for all passenger transportation services under\nits operation. Such schedules shall include the estimated departure and\narrival time at each terminal point of each route except that, on lines\nwhere the headway time during the period between six A.M. and seven P.M.\nis less than ten minutes, such headway time alone may be listed for that\nperiod. Such schedules shall also show the elapsed running time between\nthe terminal and each station. Schedules shall be made available on each\nomnibus operated on the line to which the schedule applies.\n 10. No acts or activities taken or proposed to be taken by the\nsubsidiary corporation pursuant to the provisions of paragraph (a) of\nsubdivision five or subdivision seven of this section shall be deemed to\nbe "actions" for the purposes or within the meaning of article eight of\nthe environmental conservation law.\n 11. The subsidiary corporation and its corporate existence shall\ncontinue until terminated by law, provided however, that no such law\nshall take effect so long as the subsidiary corporation or the transit\nauthority or any other of its subsidiaries shall have outstanding any\nnotes or bonds or lease, sublease or other contractual obligations\nissued or incurred pursuant to section twelve hundred seven-m of this\ntitle or issued or incurred in connection with the transfer of its\ninterest in and the lease from the transferee of any property furnished\nto it pursuant to chapter twelve of the laws of nineteen hundred\nseventy-nine or section fifteen of chapter three hundred fourteen of the\nlaws of nineteen hundred eighty-one, unless adequate provision has been\nmade for the payment or satisfaction of such outstanding notes, bonds,\nlease, sublease or other contractual obligations.\n