N.Y. State Finance Law § 92-r: Local government assistance tax fund

* § 92-r. Local government assistance tax fund. 1. There is hereby

established in the joint custody of the comptroller and the commissioner

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

government assistance tax fund.

2. Such fund shall consist of the amount of revenue collected within

the state from the imposition of the sales and compensating use taxes

(including interest and penalties) pursuant to section eleven hundred

five and section eleven hundred ten of the tax law equal to the amount

attributable to a one percent rate of taxation, less such amounts as the

commissioner of taxation and finance may determine to be necessary for

refunds.

3. On or before the twelfth day of each month, the commissioner of

taxation and finance shall certify to the comptroller the amounts

specified in subdivision two of this section relating to the preceding

month and, in addition on the last day of the fiscal year the

commissioner shall certify such amounts relating to the last month of

such fiscal year. The amount of revenues so certified shall be deposited

by the comptroller in the local government assistance tax fund.

4. Revenues in the local government assistance tax fund shall be kept

separate and shall not be commingled with any other moneys in the

custody of the comptroller. All deposits of such revenues shall, if

required by the comptroller, be secured by obligations of the United

States or of the state having a market value equal at all times to the

amount of such deposits and all banks and trust companies are authorized

to give security for such deposits. Any such revenues in such fund may,

in the discretion of the comptroller, be invested in obligations in

which the comptroller is authorized to invest pursuant to section

ninety-eight-a of this article.

5. (a) Upon receipt by the comptroller of a certificate or

certificates from the chairperson of the local government assistance

corporation submitted pursuant to section thirty-two hundred forty of

the public authorities law, that such corporation requires a payment or

payments, from the local government assistance tax fund, the comptroller

shall pay from such fund pursuant to an appropriation on or before the

date specified in such certificate or within thirty days after such

receipt, whichever is later, to such corporation, as the chairperson

thereof may direct in any such certificate, the amount or amounts so

certified. The chairperson of such corporation shall furnish the

commissioner of taxation and finance with copies of such certificates.

In order to set aside the moneys necessary to meet the amounts required

on the payment date or dates specified in such certificate or

certificates, the comptroller shall comply with the provisions of

paragraph (b) of this subdivision. The comptroller shall from time to

time, but in no event later than the fifteenth day of each month (other

than the last month of the fiscal year) and the last day of the last

month of the fiscal year of each fiscal year, pay over and distribute to

the credit of the general fund of the state treasury all revenues in the

local government assistance tax fund, if any, in excess of the aggregate

amount required to be set aside pursuant to paragraph (b) of this

subdivision provided that an appropriation has been made to pay all

amounts specified in such certificate or certificates as being required

by the corporation for such fiscal year, and provided further that an

appropriation has been made to make all dedicated highway and bridge

trust fund cooperative agreement payments specified in the certificate

submitted by the chairperson of the New York state thruway authority

pursuant to subdivision two of section three hundred eighty-five of the

public authorities law. In no event shall the comptroller pay over and

distribute any revenues (other than the amount to be deducted for

administering, collecting and distributing such sales and compensating

use taxes) to any person other than the local government assistance

corporation (i) unless and until the aggregate of all payments certified

to the comptroller as required by such corporation and required to be

set aside pursuant to paragraph (b) of this subdivision for such fiscal

year shall have been appropriated to such corporation in accordance with

the schedule specified in the certificate or certificates filed by the

chairperson of the corporation or (ii) if, after having been so

certified and appropriated, any payment required to be set aside

pursuant to paragraph (b) of this subdivision has not been made to the

corporation on the date by which it was required to have been made

pursuant to such schedule, or (iii) unless and until the aggregate of

all dedicated highway and bridge trust fund cooperative agreement

payments certified by the chairperson of the New York state thruway

authority pursuant to subdivision two of section three hundred

eighty-five of the public authorities law shall have been appropriated

to such authority; provided, however, that no person including such

corporation or the holders of its bonds or notes shall have any lien on

such revenues and such agreement shall be executory only to the extent

of such revenues available to the state in such fund and provided

further that, if the state has appropriated and paid to the corporation

the amounts necessary for the corporation to meet its requirements, for

the current fiscal year, pursuant to the certificate or certificates

submitted by the chairperson pursuant to section thirty-two hundred

forty of the public authorities law and notwithstanding any other

provision of law, the comptroller shall, on the last day of each fiscal

year, pay to the general fund of the state all sums remaining in the

local government assistance tax fund on such date.

(b) No later than the tenth business day of each month during any

fiscal year in which a debt service or required payment on any issue of

bonds, notes or other financial obligations of the corporation is due,

the comptroller shall prepare a schedule of the amount of revenue

anticipated to be deposited pursuant to subdivision two of this section

during the balance of such fiscal year in such detail as is necessary to

carry out the purposes of this paragraph, based upon estimates of such

revenues filed with him by the director of the budget. Except for the

purpose of meeting a debt service or required payment on any issue of

bonds, notes or other financial obligations of the corporation that is

due on a monthly basis or more frequently, commencing at any time that a

debt service or required payment on any such issue equals ninety-five

percent of the amount of revenues anticipated to be deposited pursuant

to subdivision two of this section shown on such schedule to be received

during the period ending on the date on which such payment is due, after

deducting from such revenues the aggregate amount of all such payments

on any other issue of bonds, notes or other financial obligations of the

corporation due during such period and against which revenues have not,

at such time, been collected and set aside pursuant to the provisions of

this subdivision, the comptroller shall set aside all such revenues as

received until the amount so set aside is sufficient to pay the amount

of such payment on such issue and any other issue with a payment date on

or before the payment date on such issue; provided, however, that the

comptroller shall commence to set aside revenues no later than the

fifteenth day prior to the date on which such payment is due and

continue to set aside such revenues until the balance is sufficient to

pay the amount of such payment when due and the amount of such payment

on any other issue due on or before such date. For the purpose of

meeting a debt service or required payment on any issue of bonds, notes

or other financial obligations of the corporation that is due on a

monthly basis or more frequently, the comptroller shall set aside all

revenues deposited pursuant to subdivision two of this section as

received until the amount so set aside is, in the reasonable judgment of

the comptroller, sufficient to pay the debt service or other required

payment on such issue and any other such issue with a payment date on or

before such payment date. In the event that the amount set aside by the

comptroller pursuant to this paragraph on any payment date is not

sufficient to meet the payments required pursuant to a certificate or

certificates submitted by the chairperson pursuant to section thirty-two

hundred forty of the public authorities law, the comptroller shall

immediately transfer from the general fund to the fund established by

this section an amount which, when combined with the amount set aside

pursuant to this paragraph, shall be sufficient to meet the payment

required pursuant to such certificate or certificates. In no event shall

the comptroller be held liable for the failure to set aside an amount

sufficient to pay the debt service or required payment of the

corporation.

6. All payments of moneys from the local government assistance tax

fund shall be made on the audit and warrant of the comptroller.

* NB Repealed six months after all liabilities of the New York Local

Government Assistance Corporation are met or discharged.