Section 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.