§ 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.