§ 11f. Transportation Infrastructure Bond Fund

(a) There is created a special fund within the Transportation Fund known as the Transportation Infrastructure Bond Fund to consist of funds raised from the motor fuel transportation infrastructure assessments levied pursuant to 23 V.S.A. §§ 3003a and 3106a. Interest from the Fund shall be credited to the Fund, and the amount in the Fund shall carry forward from year to year.

(b) As used in this section, the terms “Transportation Infrastructure Bonds Debt Service Fund” and “debt service obligations” are as defined in 32 V.S.A. § 951a.

(c) Monies in the Transportation Infrastructure Bond Fund shall be transferred to the Transportation Infrastructure Bonds Debt Service Fund to cover all debt service obligations of transportation infrastructure bonds that are due in the current fiscal year and as otherwise required in accordance with any trust agreement pertaining to such bonds.

(d) Provided that resources in the Transportation Infrastructure Bonds Debt Service Fund are sufficient in amount to cover all debt service obligations of transportation infrastructure bonds that are due in the current fiscal year and to meet all other obligations set forth in any trust agreement pertaining to any such bonds, any remaining balance in the Transportation Infrastructure Bond Fund may be used to pay for:

(1) the rehabilitation, reconstruction, or replacement of State bridges, culverts, roads, railroads, airports, and necessary buildings that, after such work, have an estimated minimum remaining useful life of 10 years;

(2) the rehabilitation, reconstruction, or replacement of municipal bridges, culverts, and highways that, after such work, have an estimated minimum remaining useful life of 10 years; and

(3) up to $100,000.00 per year for operating costs associated with administering the capital expenditures.

(e) To the extent in the current fiscal year any balance remains in the Transportation Infrastructure Bond Fund after all transfers required by subsection (c) of this section have been made and all appropriations authorized by subsection (d) of this section are accounted for, such remaining balance may be transferred to the Transportation Infrastructure Bonds Debt Service Fund to cover debt service obligations of transportation infrastructure bonds that are due in future fiscal years.

(f) The assessments for motor fuel transportation infrastructure assessments paid pursuant to 23 V.S.A. §§ 3003a and 3106a shall not be reduced below the rates in effect at the time of issuance of any transportation infrastructure bond until the principal, interest, and all costs that must be paid in order to retire the bond have been paid.

(g) Except as provided in subsection (h) of this section, all transfers of funds from the Transportation Infrastructure Bond Fund to the Transportation Infrastructure Bonds Debt Service Fund shall be approved by the General Assembly.

(h) To minimize disruption of summer construction schedules, it is the policy of the State to have a balance in the Transportation Infrastructure Bonds Debt Service Fund at the end of each fiscal year that is sufficient in amount to cover all debt service obligations of transportation infrastructure bonds that are due or are anticipated to be due in the succeeding fiscal year. To achieve the policy objective of ensuring the State’s transportation infrastructure bond obligations are fulfilled with a minimum of disruption to the construction schedules of approved projects, in the event that revenue, economic, or other conditions vary from those assumed in the consensus forecast and in the budget process in which the General Assembly approved transfers to the Transportation Infrastructure Bonds Debt Service Fund, the Secretary of Transportation with the approval of the Secretary of Administration may, notwithstanding the provisions of 32 V.S.A. § 706:

(1) transfer appropriations of transportation infrastructure bond funds to the Transportation Infrastructure Bonds Debt Service Fund; and

(2) transfer appropriations of transportation funds to replace transportation infrastructure bond funds transferred under subdivision (1) of this subsection, provided no significant delay in the construction schedule of any approved project results from the transfer.

(i) After executing a transfer authorized by subsection (h) of this section, the administration shall give prompt notice thereof to the Joint Fiscal Office and submit an explanation and description of the action taken to the Joint Fiscal Committee at its next scheduled meeting. (Added 2009, No. 50, § 27; amended 2011, No. 63, § F.100, eff. June 2, 2011.)