N.Y. Public Authorities Law § 553-j: Metropolitan transportation authority capital lockbox fund

§ 553-j. Metropolitan transportation authority capital lockbox fund.

1. The authority shall establish a fund to be known as the metropolitan

transportation authority capital lockbox fund which shall be kept

separate from and shall not be commingled with any other monies of the

authority. The fund shall consist of two separate and distinct accounts:

(i) the "2020 to 2024 capital program account" and (ii) the "2025 to

2029 capital program account".

(a) The 2020 to 2024 capital program account shall consist of all

monies received by the authority pursuant to article forty-four-C of the

vehicle and traffic law, subdivision twelve-a of section five hundred

fifty-three of this title, and revenues of the real estate transfer tax

deposited pursuant to subdivision (b) of section fourteen hundred

twenty-one of the tax law, and sales tax pursuant to subdivision (c) of

section eleven hundred forty-eight of the tax law, subparagraph (B) of

paragraph five of subdivision (c) of section twelve hundred sixty-one of

the tax law, and funds appropriated from the central business district

trust fund established pursuant to section ninety-nine-ff of the state

finance law.

(b) The 2025 to 2029 capital program account shall consist of all

monies deposited pursuant to subdivision four of section twelve hundred

seventy-h of this chapter.

2. Monies in the 2020 to 2024 capital program account shall be

applied, subject to agreements with bondholders and applicable federal

law, to the payment of operating, administration, and other necessary

expenses of the authority, or to the city of New York subject to the

memorandum of understanding executed pursuant to subdivision two-a of

section seventeen hundred four of the vehicle and traffic law properly

allocable to such program, including the planning, designing,

constructing, installing or maintaining of the central business district

tolling program, including, without limitation, the central business

district tolling infrastructure, the central business district tolling

collection system and the central business district tolling customer

service center, and the costs of any metropolitan transportation

authority capital projects included within the 2020 to 2024 MTA capital

program or any successor programs. Monies in the 2020 to 2024 capital

program account may be: (a) pledged by the authority to secure and be

applied to the payment of the bonds, notes or other obligations of the

authority to finance the costs of the central business district tolling

program, including, without limitation, the central business district

tolling infrastructure, the central business district tolling collection

system and the central business district tolling customer service

center, and the costs of any metropolitan transportation authority

capital projects included within the 2020 to 2024 MTA capital program or

any successor programs, including debt service, reserve requirements, if

any, the payment of amounts required under bond and note facilities or

agreements related thereto, the payment of federal government loans,

security or credit arrangements or other agreements related thereto; or

(b) used by the authority for the payment of such capital costs of the

central business district tolling program and the costs of any

metropolitan transportation authority capital projects included within

the 2020 to 2024 MTA capital program or any successor programs; or (c)

transferred to the metropolitan transportation authority and (1) pledged

by the metropolitan transportation authority to secure and be applied to

the payment of the bonds, notes or other obligations of the metropolitan

transportation authority to finance the costs of any metropolitan

transportation authority capital projects included within the 2020 to

2024 MTA capital program or any successor programs, including debt

service, reserve requirements, if any, the payment of amounts required

under bond and note facilities or agreements related thereto, the

payment of federal government loans, security or credit arrangements or

other agreements related thereto, or (2) used by the metropolitan

transportation authority for the payment of or to reimburse the costs,

including debt service, of any metropolitan transportation authority

capital projects included within the 2020 to 2024 MTA capital program or

any successor programs. Such revenues shall only supplement and shall

not supplant any federal, state, or local funds expended by the

authority or the metropolitan transportation authority, or such

authority's or metropolitan transportation authority's affiliates or

subsidiaries for such respective purposes. Central business district

toll revenues may be used as required to obtain, utilize, or maintain

federal authorization to collect tolls on federal aid highways.

2-a. Monies in the 2025 to 2029 capital program account shall be

applied, subject to agreements with bondholders and applicable federal

law, to the payment of the costs of any metropolitan transportation

authority capital projects included within the 2025 to 2029 MTA capital

program or any successor programs. Monies in the 2025 to 2029 capital

program account may be: (a) pledged by the authority to secure and be

applied to the payment of the bonds, notes or other obligations of the

authority to finance the costs of any metropolitan transportation

authority capital projects included within the 2025 to 2029 MTA capital

program or any successor programs, including debt service, reserve

requirements, if any, the payment of amounts required under bond and

note facilities or agreements related thereto, the payment of federal

government loans, security or credit arrangements or other agreements

related thereto; or (b) used by the authority for the payment of such

capital costs of any metropolitan transportation authority capital

projects included within the 2025 to 2029 MTA capital program or any

successor programs; or (c) transferred to the metropolitan

transportation authority and (1) pledged by the metropolitan

transportation authority to secure and be applied to the payment of the

bonds, notes or other obligations of the metropolitan transportation

authority to finance the costs of any metropolitan transportation

authority capital projects included within the 2025 to 2029 MTA capital

program or any successor programs, including debt service, reserve

requirements, if any, the payment of amounts required under bond and

note facilities or agreements related thereto, the payment of federal

government loans, security or credit arrangements or other agreements

related thereto, or (2) used by the metropolitan transportation

authority for the payment of or to reimburse the costs, including debt

service, of any metropolitan transportation authority capital projects

included within the 2025 to 2029 MTA capital program or any successor

programs. Such revenues shall only supplement and shall not supplant any

federal, state, or local funds expended by the authority or the

metropolitan transportation authority, or such authority's or

metropolitan transportation authority's affiliates or subsidiaries for

such respective purposes.

3. Any monies deposited in the fund shall be held in the fund free and

clear of any claim by any person arising out of or in connection with

article forty-four-C of the vehicle and traffic law, subdivision

twelve-a of section five hundred fifty-three of this title, and article

twenty-three of the tax law. Without limiting the generality of the

foregoing, no person paying any amount that is deposited into the fund

shall have any right or claim against the authority or the metropolitan

transportation authority, any of their bondholders, any of the

authority's or the metropolitan transportation authority's subsidiaries

or affiliates to any monies in or distributed from the fund or in

respect of a refund, rebate, credit or reimbursement of monies arising

out of or in connection with article forty-four-C of the vehicle and

traffic law, subdivision twelve-a of section five hundred fifty-three of

this title, and article twenty-three of the tax law.

3-a. Of the capital project costs paid by this fund: eighty percent

shall be capital project costs of the New York city transit authority

and its subsidiary, Staten Island Rapid Transit Operating Authority, and

MTA Bus with priority given to the subway system, new signaling, new

subway cars, track and car repair, accessibility, buses and bus system

improvements and further investments in expanding transit availability

to areas in the outer boroughs that have limited mass transit options;

ten percent shall be capital project costs of the Long Island Rail Road,

including but not limited to, parking facilities, rolling stock,

capacity enhancements, accessibility, and expanding transit availability

to areas in the Metropolitan Commuter Transportation District that have

limited mass transit options; and ten percent shall be capital project

costs of the Metro-North Commuter Railroad Company, including but not

limited to, parking facilities, rolling stock, capacity enhancements,

accessibility, and expanding transit availability to areas in the

Metropolitan Commuter Transportation District that have limited mass

transit options.

4. The authority shall report annually on all receipts and

expenditures of the fund and each account within the fund. The report

shall detail operating expenses of the central business district tolling

program and all fund expenditures including capital projects. The report

shall be readily available to the public, and shall be posted on the

authority's website and be submitted to the governor, the temporary

president of the senate, the speaker of the assembly, the mayor and

council of the city of New York, the metropolitan transportation

authority board, and the metropolitan transportation authority capital

program review board.

5. Any operating funding used for the purposes of a central business

district tolling program shall only be from the 2020 to 2024 capital

program account and shall be approved, annually, in a plan of

expenditures, by the director of the budget.