Section 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.
    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.