§ 98-b. Municipal assistance to public authorities furnishing
transportation services. Every city, village, town or county not wholly
contained within a city the whole or any part of which is directly
served by a transportation facility operated by a public authority shall
be empowered to make unconditional grants of money or property to such
public authority for the purpose of assisting it in meeting its capital
or operating expenses, provided such money does not consist of borrowed
funds and such property has not been acquired by the use of borrowed
funds. Such purpose is hereby declared to be a city, county, town and
village purpose. The term "transportation facility," as used herein,
shall include rapid transit, commuter railroad, omnibus, marine, airport
and aviation facilities. The provisions of this section are intended as
enabling legislation only and shall not be interpreted as implying that
absent their enactment a municipality would lack the power to authorize
any such grant; but they shall not be interpreted as an authorization to
public authorities generally to accept such grants.

The acceptance of any such grant by a public authority shall not
operate to make such authority an agency of the municipality making the
grant.