§ 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, 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 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 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.