§ 88-a. Mass transportation operating assistance fund. 1. There is
hereby established in the joint custody of the commissioner of taxation
and finance and the state comptroller a special fund to be known as the
"mass transportation operating assistance fund".

2. Moneys in the mass transportation operating assistance fund shall
be kept separately from and shall not be commingled with any other
moneys in the joint or sole custody of the state comptroller or the
commissioner of taxation and finance.

3. Except for moneys in the account established by subdivision six of
this section, moneys of the fund, following appropriation by the
legislature, shall be allocated upon a certificate of approval of
availability by the director of the budget solely for the transportation
assistance purposes set forth within the specific accounts contained
within the fund established by this section.

4. The mass transportation operating assistance fund shall consist of
three separate and distinct accounts: (a) the "public transportation
systems operating assistance account", (b) the "urban mass transit
operating assistance account", and (c) the "metropolitan mass
transportation operating assistance account". Moneys in each of the
accounts shall be kept separately from and not commingled with any other
moneys in the mass transportation operating assistance fund.

5. (a) The "public transportation systems operating assistance
account" shall consist of revenues required to be deposited therein
pursuant to the provisions of section one hundred eighty-two-a of the
tax law and all other moneys credited or transferred thereto from any
other fund or source pursuant to law.

(b) Moneys in the public transportation systems operating assistance
account shall be paid on a quarterly basis beginning October first,
nineteen hundred eighty-one. However, if there is a demonstrated cash
shortfall in any eligible system, payments to such system may be
accelerated. Such payments shall be made in accordance with a schedule
as specified by appropriation for the payment of operating costs of
public mass transportation systems outside the metropolitan commuter
transportation district as defined by section twelve hundred sixty-two
of the public authorities law, eligible to receive operating assistance
pursuant to section eighteen-b of the transportation law.

(c) Notwithstanding any law to the contrary, the comptroller is hereby
authorized and directed to transfer from the general fund for deposit
into the public transportation system operating assistance account, upon
request of the director of the budget, on or before March 31 of each
year, an amount equal to the following:

(i) For the state fiscal year ending March 31, 2015, two million eight
hundred eight thousand ninety-six dollars;

(ii) In each succeeding state fiscal year, the transfer shall equal
the product of the dollar amount in (i) and one plus the sales tax
growth factor. For the purposes of this subparagraph, the sales tax
growth factor is the percentage, if any, by which the aggregate amount
of sales and compensating use taxes imposed pursuant to the authority of
subpart B of part I of article twenty-nine of the tax law, excluding
such sales and compensating use taxes collected in the twelve counties
that comprise the metropolitan transportation commuter district created
and established pursuant to section twelve hundred sixty-two of the
public authorities law, for the twelve month period ending on December
thirty-first of the immediately preceding calendar year exceeds the
aggregate amount of such sales and compensating use taxes for the twelve
month period ending on December thirty-first, two thousand thirteen. In
no year will the amount of the deposit authorized under this section be
less than the amount made in the prior year.

6. (a) The "urban mass transit operating assistance account" shall
consist of the revenues required to be deposited therein pursuant to the
provisions of article thirty-one-a of the tax law, and all other moneys
credited or transferred thereto from any other fund or source pursuant
to law.

(b) Moneys in the urban mass transit operating assistance account
shall be available only for payment by the comptroller of refunds of,
and of judgments awarded for claims for refund of, taxes paid on or
after October first, nineten hundred eighty-one but before April
thirteenth, nineteen hundred eighty-two pursuant to the provisions of
article thirty-one-A of the tax law, provided that, in the case of a
refund, application for such refund has been made to the comptroller
prior to April first, nineteen hundred eighty-six. Interest at the rate
authorized by section sixteen of the state finance law shall be payable
with such refunds and shall be computed from February first, nineteen
hundred eighty-two or the date on which the tax was paid, whichever is
later.

(c) When the comptroller determines that moneys of the account are
insufficient for the payment of any such refunds or judgments, he shall
certify to the commissioner of finance of the city of New York the
amount of such insufficiency and, from moneys in the special account or
accounts established by and pursuant to sections W46-2.0 and II46-4.0 of
the administrative code of the city of New York, such commissioner of
finance shall, within twelve days of such certification, pay over such
amount to the comptroller for deposit in the urban mass transit
operating assistance account of the mass transportation operating
assistance fund to meet such insufficiency.

7. (a) The "metropolitan mass transportation operating assistance
account" shall consist of the revenues derived from the taxes for the
metropolitan transportation district imposed by section eleven hundred
nine of the tax law and that proportion of the receipts received
pursuant to the tax imposed by article nine-a of such law as specified
in section one hundred seventy-one-a of such law, and that proportion of
the receipts received pursuant to the tax imposed by article nine of
such law as specified in section two hundred five of such law, and the
receipts required to be deposited pursuant to the provisions of section
one hundred eighty-two-a, and all other moneys credited or transferred
thereto from any other fund or source pursuant to law.

(b) Moneys in the metropolitan mass transportation operating
assistance account shall be paid on a quarterly basis beginning October
first, nineteen hundred eight-one. However, if there is a demonstrated
cash shortfall in any eligible system, payments to such system may be
accelerated. Such moneys shall be paid in accordance with schedules as
specified by appropriations for payment of operating costs of public
transportation systems in the metropolitan transportation commuter
district in order to meet the operating expenses of such systems,
provided, however, with respect to the metropolitan transportation
authority, its affiliates and subsidiaries, and notwithstanding any
general or special law to the contrary, other than such a law which
makes specific reference to this section, and subject to the provisions
of section twelve hundred seventy-c of the public authorities law, so
long as the metropolitan transportation authority dedicated tax fund
established by section twelve hundred seventy-c of the public
authorities law shall exist, any such appropriation to the metropolitan
transportation authority, its affiliates or its subsidiaries shall be
deemed to be an appropriation to the metropolitan transportation
authority and the total amount paid pursuant to such appropriation or
appropriations shall be deposited to such metropolitan transportation
authority dedicated tax fund and distributed in accordance with the
provisions of section twelve hundred seventy-c of the public authorities
law. 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 producing revenues for
deposit in the metropolitan mass transportation operating assistance
account 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.

9. Any moneys in the mass transportation operating assistance fund and
in any of the accounts in such fund may, at the discretion of the state
comptroller, be invested in securities and obligations as defined by
section ninety-eight-a of this chapter. Any income earned by the
investment of moneys in any of the accounts in such fund shall be added
to and become a part of, and shall be used for the purposes of such
account.