The bill establishes the "Transportation Trust Fund" as a nonreverting fund within the state treasury, which will consist of various sources including distributions, appropriations, gifts, grants, and donations. The fund is designed to provide state matching funds for federal grants aimed at transportation infrastructure projects. It mandates annual transfers from the Transportation Trust Fund to the state road fund, starting July 1, 2028, based on a percentage of the fund's average market value over the previous three years. Additionally, the bill allows for the appropriation of funds from the Transportation Trust Fund to the general fund in case of insufficient general fund balances, ensuring that appropriations can be met without creating a deficit.

The bill also includes provisions for the distribution of gross receipts tax revenue from electricity sales to the Transportation Trust Fund, with specified percentages increasing over time. It amends the distribution of the motor vehicle excise tax to allocate a portion to the Transportation Trust Fund and requires certain unexpended general fund capital outlay appropriations to revert to the Transportation Trust Fund instead of the general fund. An initial appropriation of $400 million is made from the general fund to the Transportation Trust Fund for fiscal year 2026 and beyond, with any unspent balance remaining in the fund. The effective date for the provisions of this act is set for July 1, 2025.

Statutes affected:
introduced version: 7-14-10