N.Y. State Finance Law § 89-c: Dedicated mass transportation trust fund

§ 89-c. Dedicated mass transportation trust fund. 1. There is hereby

established in the joint custody of the state comptroller and the

commissioner of taxation and finance a special fund to be known as the

"dedicated mass transportation trust fund".

2. The dedicated mass transportation trust fund shall consist of all

moneys collected therefor or credited or transferred thereto from any

other fund, account or source. Any interest received by the comptroller

on moneys on deposit in the dedicated mass transportation trust fund

shall be retained in and become a part of such fund.

3. Moneys in the dedicated mass transportation trust fund shall,

following appropriation by the legislature, be utilized for the

reconstruction, replacement, purchase, modernization, improvement,

reconditioning, preservation and maintenance of mass transit facilities,

vehicles and rolling stock, or the payment of debt service or operating

expenses incurred by mass transit operating agencies, and for rail

projects authorized pursuant to section fourteen-j of the transportation

law, for payments to the general debt service fund of amounts equal to

amounts required for service contract payments related to rail projects

as provided and authorized by section three hundred eighty-six of the

public authorities law and for programs to assist small and minority and

women-owned firms engaged in transportation construction and

reconstruction projects, including a revolving fund for working capital

loans, and a bonding guarantee assistance program in accordance with

provisions of this chapter. It is the intent of the governor to submit

and the legislature to enact in a budget bill for fiscal year nineteen

hundred ninety-four--ninety-five, two appropriations from the dedicated

mass transportation trust fund to the metropolitan transportation

authority dedicated tax fund established by section twelve hundred

seventy-c of the public authorities law. One such appropriation shall be

equal to the amounts expected to be available for such purpose pursuant

to subdivision (d) of section three hundred one-j of the tax law during

the nineteen hundred ninety-four--ninety-five fiscal year and shall be

effective in that fiscal year. The other such appropriation shall be

equal to the amount expected to be available for such purpose pursuant

to subdivision (d) of section three hundred one-j of the tax law during

the nineteen hundred ninety-five--ninety-six fiscal year and shall,

notwithstanding the provisions of section forty of this chapter, take

effect on the first day of the nineteen hundred ninety-five--ninety-six

fiscal year and lapse on the last day of that fiscal year. It is the

intent of the governor to submit and the legislature to enact for each

fiscal year after the nineteen hundred ninety-four--ninety-five fiscal

year in an annual budget bill: (i) an appropriation for the amount

expected to be available in the dedicated mass transportation trust fund

during such fiscal year for the metropolitan transportation authority

pursuant to subdivision (d) of section three hundred one-j of the tax

law and paragraph two of subdivision (d) of section eleven hundred nine

of the tax law, including any amounts on deposit therein from any prior

year which have been previously appropriated, and (ii) an appropriation

of the amounts projected by the director of the budget to be deposited

in the metropolitan transportation authority dedicated tax fund from the

dedicated mass transportation trust fund pursuant to subdivision (d) of

section three hundred one-j of the tax law and paragraph two of

subdivision (d) of section eleven hundred nine of the tax law, for the

next succeeding fiscal year. Such appropriation for payment of revenues

expected to be received in the succeeding fiscal year shall,

notwithstanding section forty of this chapter, take effect on the first

day of such succeeding fiscal year and lapse on the last day of such

fiscal year. If for any fiscal year commencing on or after the first day

of April, nineteen hundred ninety-four the governor fails to submit a

budget bill containing the foregoing, or the legislature fails to enact

a bill with such provisions, then the authority shall notify the

comptroller, the director of the budget, the chairperson of the senate

finance committee and the chairperson of the assembly ways and means

committee of amounts required to be disbursed from the appropriation

made during the preceding fiscal year for payment in such fiscal year.

In no event shall the comptroller make any payments from such

appropriation prior to May first of such fiscal year, and unless and

until the director of the budget, the chairperson of the senate finance

committee and the chairperson of the assembly ways and means committee

have been notified of the required payments and the timing of such

payments to be made from the dedicated mass transportation trust fund to

the metropolitan transportation authority dedicated tax fund at least

forty-eight hours prior to any such payments. Until such time as

payments pursuant to such appropriation are made in full, revenues in

the dedicated mass transportation trust fund shall not be paid over to

any person other than the metropolitan transportation authority. Nothing

contained in this subdivision shall be deemed to restrict the right of

the state to amend, repeal, modify or otherwise alter statutes imposing

or relating to the taxes imposed pursuant to section three hundred one-j

of the tax law, the taxes imposed pursuant to paragraph two of

subdivision (d) of section eleven hundred nine of the tax law, or the

appropriations relating thereto. The metropolitan transportation

authority shall not include within any resolution, contract or agreement

with holders of the bonds or notes issued under section twelve hundred

sixty-nine of the public authorities law any provision which provides

that a default occurs as a result of the state exercising its right to

amend, repeal, modify or otherwise alter such taxes or appropriations.