§ 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.