In February 1965, New York Governor Nelson Rockefeller suggested that the New York State Legislature create an authority to purchase, operate, and modernize the Long Island Rail Road (LIRR). The LIRR, then a subsidiary of the Pennsylvania Railroad (PRR), had been operating under bankruptcy protection since 1949. The proposed authority would also have the power to make contracts or arrangements with other commuter railroad operators in the New York City area. On May 21, 1965, the legislature chartered the Metropolitan Commuter Transportation Authority (MCTA) to take over the operations of the LIRR. Governor Rockefeller appointed his top aide, Dr. William J. Ronan, as chairman and chief executive officer of the MCTA. In June 1965, the state finalized an agreement to buy the LIRR from the PRR for $65 million. The MCTA made a down payment of $10 million for the LIRR in December 1965, and it completed the rest of the payment the next month.