Senate Bill No. 1461 proposes significant amendments to the management of the Special Transportation Fund (STF) and establishes a new fund called the Transportation Grants and Restricted Accounts Fund. The bill repeals Section 13b-68 and replaces it with provisions that designate the STF as a perpetual fund dedicated exclusively to transportation purposes, including debt service payments on state obligations. A key modification allows the Treasurer to appropriate excess funds from the STF when its balance exceeds eighteen percent of the net appropriations for the current fiscal year, enabling the use of these excess funds for redeeming, purchasing, or defeasing special tax obligation indebtedness.

Furthermore, the bill amends Section 3-37 to enhance reporting requirements for the Treasurer, mandating the submission of a final audited report to the Governor and the Investment Advisory Council by December 31 each year. This report must include detailed financial statements and performance discussions for the combined investment funds and the Short Term Investment Fund, as well as information on cash management and debt management activities related to the STF. The bill also makes a temporary measure permanent, requiring that any remaining balance in the STF exceeding 18% of net appropriations at the end of the fiscal year be utilized to pay down certain STF-supported debt, with specific methods and limits on projected debt service savings. The act will take effect upon passage.

Statutes affected:
Raised Bill: 3-37
FIN Joint Favorable: 3-37
File No. 850: 3-37