File #: Int 1403-2025    Version: * Name: Studying alternative public transit fare systems.
Type: Introduction Status: Committee
Committee: Committee on Transportation and Infrastructure
On agenda: 9/25/2025
Enactment date: Law number:
Title: A Local Law in relation to studying alternative public transit fare systems
Sponsors: Yusef Salaam, Oswald Feliz, Chris Banks
Council Member Sponsors: 3
Summary: This bill would require the Department of Transportation to conduct a study on the feasibility and potential benefits of a zone-based transit fare system. In this bill, a zone-based system means a system of charging fares based on the residency of the rider. The bill would also require the Department of Transportation to report on the feasibility of a pilot program of a tap-in, tap-out transit payment system, in which riders would be required to tap a card to both enter and exit a station.
Indexes: Report Required
Attachments: 1. Summary of Int. No. 1403, 2. Int. No. 1403, 3. September 25, 2025 - Stated Meeting Agenda, 4. Hearing Transcript - Stated Meeting 9-25-25.pdf

Int. No. 1403

 

By Council Members Salaam, Feliz and Banks

 

A Local Law in relation to studying alternative public transit fare systems

 

Be it enacted by the Council as follows:

 

Section 1. a. Definitions for the purposes of this local law, the following terms have the following meanings:

City. The term “city” means the city of New York.

Commissioner. The term “commissioner” means the commissioner of transportation.

Community district. The term “community district” means any of the 59 geographic areas established pursuant to chapter 69 of the New York city charter.

Department. The term “department” means the department of transportation.

Public transit. The term “public transit” means any mode of transit operated by the New York city transit authority.

Tap-in, tap-out. The term “tap-in, tap-out” means a system of transit fare collection in which a rider is charged based upon distance travelled as recorded by sensors installed at both entrance and exit turnstiles.

Zone 1. The term “zone 1” means the community districts with the 14 highest median household incomes.

Zone 2. The term “zone 2” means the community districts with the 15 highest median household incomes following zone 1.

Zone 3. The term “zone 3” means the community districts with the 15 highest median household incomes following zones 1 and 2.

Zone 4. The term “zone 4” means the community districts with the 15 lowest median household incomes.

Zone-Based. The term “zone-based” means a system of charging fares for riders of public transit based on the community district residency of each rider with a maximum fare of $5 per ride charged to non-residents and residents of zone 1, a fare of $4.50 charged to residents of zone 2, a fare of $3 charged to residents of zone 3, and no fare charged to residents of zone 4.

b. Zone-based fares study. The commissioner, in consultation with the metropolitan transportation authority, shall conduct a study on the feasibility and possible effects of implementing a zone-based system for collecting fares on public transit. Through this study, the commissioner shall:

1. Identify the number of riders who would be charged each of the 4 separate zone-based fares;

2. Identify any logistical challenges and potential barriers to implementing this system;

3. Determine any potential changes in ridership for public transit in the city and for each mode of public transit;

4. Determine local benefits that could result from implementing this system in each community district, including greater access to transportation for the local population;

5. Determine benefits to each of the public transit systems, including any benefits from potential increases or decreases in ridership;

6. Determine any challenges or disadvantages that may result from increases or decreases in ridership attributable to the use of a zone-based system; and

7. Determine the potential environmental consequences of implementing this system, including any change in the amount of greenhouse gas emissions and air pollution.

c. Tap-in, tap-out pilot program study. The commissioner, in consultation with the metropolitan transportation authority, shall conduct a study on the feasibility and possible effects of implementing a pilot program for collecting fares on public transit using a tap-in, tap-out system. Through this study, the commissioner shall:

1. Propose a subway line on which to conduct a pilot program;

2. Determine the costs of installing infrastructure necessary to implement a tap-in, tap-out system;

3. Determine any benefits to the transit system to using a tap-in, tap-out system, including for ridership and farebox revenue; and

4. Determine any challenges and potential barriers to implementing a tap-in, tap-out system on a subway line.

d. Report. No later than 1 year after the effective date of this local law, the commissioner shall submit to the mayor and speaker of the council, and post on the department’s website, a report on the findings of the studies required under subdivisions b and c of this section.

§ 2. This local law takes effect immediately.

 

FO

LS #18135

2/20/2025 2:00 PM