New York Assembly expands binding arbitration to transit authorities’ subsidiaries

The New York State Assembly on April 29 passed a bill (calendar 02/22, Assembly number 8436) that extends binding arbitration to subsidiaries of regional transportation authorities, approving the measure by recorded voice and roll-call as announced on the floor. The clerk recorded the result in the transcript and the measure was declared passed.

Sponsors said the change simply brings subsidiaries into parity with the authorities themselves, closing a gap left in a 2021 law. The sponsor explained the bill "adds the subsidiaries of the Niagara Frontier Transportation Authority, the Rochester Genesee Regional Transportation Authority, the Capital District Transportation Authority, [and] the Central New York Regional Transportation Authority" and that the arbitration procedure — two party appointees and a mutually selected third member — would not otherwise change.

During extended questioning, Assembly members asked which entities would be affected and how the arbitration board would be constituted. The sponsor replied that the measure is intended to treat the subsidiaries "equally" with their parent authorities and confirmed the three-member binding arbitration procedure was unchanged. One member who queried the bill said the change reflects an existing practice for downstate authorities and is now being applied to upstate entities.

Lawmakers offered differing perspectives on the need for the change. Some praised the uniformity the bill provides; one member expressing concern stressed that binding arbitration can push costs higher for transit systems and for riders if those costs are passed through. Another member with a law-enforcement background described benefiting from state arbitration processes in prior negotiations and said he would support the bill.

The Assembly clerk recorded the final tally in the transcript; the bill was announced as passed and will proceed according to legislative process for enrollment and enactment.