State Highway System Funding And Financing

On and after July 1, 2017, section 4 of the bill requires 10% of the net revenue generated by existing state sales and use taxes to be credited to the highway users tax fund, paid to the state highway fund for allocation to the department of transportation (CDOT), and spent by CDOT first to make payments due on any transportation revenue notes (TRANs) issued, subject to voter approval, as required by section 7 and, to the extent not needed for that purpose, for highway purposes or highway-related capital improvements as specified in section 6. Section 7 requires the submission of a ballot question to the voters of the state at the November 2017 statewide election, which, if approved, requires the executive director of CDOT to issue TRANs in a maximum principal amount of $3.5 billion and with a maximum repayment cost of $5.5 billion. TRANs must have a maximum repayment term of 20 years and must be paid first from the net state sales and use tax revenue paid to the state highway fund and allocated to CDOT by section 4 and thereafter from any legally available money under the control of the transportation commission. Section 8 requires TRANs proceeds to be used only to provide sufficient funding for the completion of economically and regionally significant state highway system projects throughout the state, including a specific list of projects. Section 2 eliminates required statutory transfers from the general fund to the capital construction fund and the highway users tax fund for state fiscal years 2017-18, 2018-19, and 2019-20. Section 3 requires CDOT rules that govern the consideration of contractor bids for CDOT projects to require consideration of all bids submitted by prequalified contractors and prohibit shortlisting. Section 5 requires CDOT, with respect to any transportation projects for which it awards a competitively bid contract on or after July 1, 2018, to report on its public website within 30 days of the contract award and maintain on its website for at least one year thereafter all information, excluding specific corporate financial information, from all bidders submitted in response to its invitation for bids for the project.(Note: This summary applies to this bill as introduced.)