§ 88-b. Suburban transportation fund. 1. There is hereby established
in the joint custody of the commissioner of taxation and finance and the
comptroller a fund to be known as the "suburban transportation fund".

2. The suburban transportation fund shall consist of moneys from the
commuter railroad account of the metropolitan transportation authority
special assistance fund required to be paid by such authority to the
suburban transportation fund pursuant to subdivision three of section
twelve hundred seventy-a of the public authorities law and any moneys
from the metropolitan transportation authority Dutchess, Orange and
Rockland fund transferred pursuant to subdivision four of section twelve
hundred seventy-a of the public authorities law.

3. Moneys in the suburban transportation fund shall be kept separate
from and shall not be commingled with any other moneys in the custody of
the commissioner of taxation and finance and the comptroller. All
deposits of such money shall, if required by the comptroller, be secured
by obligations of the United States or of the state of market value
equal at all times to the amount of the deposit and all banks and trust
companies are authorized to give such securities for such deposits.

4. Moneys of the fund shall be made available for financing any of the
following types of capital projects within the counties comprising the
metropolitan commuter transportation district, except those counties
comprising the city of New York, but only to the extent that such
projects are on an adopted transportation plan and approved by a
designated transportation coordinating committee, if one exists, or by
the metropolitan planning organization as created pursuant to section
fifteen-a of the transportation law if no designated transportation
coordinating committee exists: capacity and infrastructure improvements
to state, county, town, city, village roads, highways, parkways and
bridges; or state, county, town, city or village mass transportation
projects; provided, however, that in Nassau and Suffolk counties such
moneys shall be available only for capacity improvements to state roads,
highways, parkways and bridges. The amount of state funds historically
appropriated statewide, other than bond funds, for transportation
capital purposes from other sources shall not be reduced because of the
availability of such moneys made available pursuant to this chapter, nor
shall such moneys be used to match federal aid. Prior to the allocation
of state advance funds appropriated pursuant to this section, the
municipality responsible for the project shall certify to the
commissioner of transportation that the amount of funds appropriated for
transportation capital purposes by that municipality shall not be
reduced because of the availability of such state advance funds, and
that such moneys shall not be used to match federal aid.

The designated transportation coordinating committee, if one exists,
or the metropolitan planning organization if no designated
transportation coordinating committee exists, shall notify the
municipalities within its jurisdiction of which projects it has
approved.

5. In the event that any county withdraws from the metropolitan
commuter transportation district, the withdrawing county shall pay to
the state comptroller any amount that is required so that the state is
fully reimbursed for funds advanced in anticipation of reimbursement
from the suburban transportation fund. In the event that any withdrawing
county shall fail to make a payment pursuant to this subdivision, the
state comptroller shall withhold and pay to the capital projects fund an
amount equal to the amount owed from the next general or specific state
aid payment and scheduled to be paid to that county.

6. Moneys in the suburban transportation fund transferred pursuant to
section twelve hundred seventy-a of the public authorities law shall be
made available to the state department of transportation for capital
projects in the counties of Nassau, Suffolk, Westchester, Putnam,
Dutchess, Orange and Rockland on the basis of each county's average pro
rata share of the mortgage recording tax receipts raised in such
counties pursuant to subdivision one of section two hundred sixty-one of
the tax law during the period January first, nineteen hundred
eighty-four through December thirty-first, nineteen hundred eighty-six
as certified by the metropolitan transportation authority. Moneys
transferred to the suburban transportation fund at the request of
Dutchess, Orange or Rockland county pursuant to subdivision three of
section twelve hundred seventy-b of the public authorities law shall be
used by the state department of transportation to increase the
proportionate share of such capital projects in such county. Such
projects shall be financed by means of a state advance to be reimbursed
by the New York state thruway authority, or its successor agency,
through the issuance of its bonds or notes in the manner set forth in
subdivision seven of this section, or by means of a state advance to be
reimbursed directly from the suburban transportation fund.

7. (a) For projects funded by the suburban transportation fund, the
state department of transportation may enter into an agreement with the
New York state thruway authority, or its successor agency, for the
purpose of having the thruway authority, or its successor agency, issue
bonds or notes to pay the capital costs of such project. Such agreement
shall be subject to approval by the director of the division of the
budget.

(b) For projects funded pursuant to this subdivision, the affected
municipality shall enter into an agreement with the department of
transportation for the conveyance of all affected real property
including highways, roads and bridges to the thruway authority, or its
successor agency, for the term of the bonds or notes issued by the
thruway authority, or its successor agency, for such project or for such
lesser period that such bonds or notes are outstanding. During the
period of such conveyance to the thruway authority, or its successor
agency, the department of transportation or the municipality shall agree
to maintain the facility in a state of good repair, the responsibility
for which shall be with the state, or municipality, which had
jurisdiction over said facility prior to such agreement.

(c) Upon the final retirement of all bonds and notes issued by the
thruway authority, or its successor agency, for such purpose, such
property shall automatically revert to the conveying entity.

8. Payments to the thruway authority, or its successor agency,
pursuant to this section shall be subject to appropriation from the
suburban transportation fund. The thruway authority, or its successor
agency, shall utilize such moneys to pay the debt service on such bonds
or notes and to meet administrative costs in connection therewith.