(1) (a) The multimodal transportation options fund is hereby created in the state treasury. The fund consists of money transferred from the general fund to the fund pursuant to section 24-75-219 (5)(a)(III) and (5)(b)(III) and any other money that the general assembly may appropriate or transfer to the fund. The state treasurer shall credit all interest and income derived from the deposit and investment of money in the fund to the fund.

(b) The transportation revenue anticipation notes proceeds account is hereby created in the fund. Any net proceeds of transportation revenue anticipation notes that the state issues shall be credited to the account. The state treasurer shall credit all interest and income derived from the deposit and investment of money in the account to the account.

(2) (a) (I) Except as otherwise provided in subsection (2)(a)(II) of this section, subject to annual appropriation by the general assembly, money must be expended from the fund as follows:

(A) Eighty-five percent to the commission for local multimodal projects; and

(B) Fifteen percent to the commission for state multimodal projects that are selected by the commission.

(II) On July 1, 2018, the state treasurer shall transfer two million five hundred thousand dollars from the fund to the fund created in section 43-4-1002 (1).

(b) (I) Subject to the limitations set forth in subsection (2)(b)(II) of this section, money must be expended from the account as follows:

(A) Eighty-five percent to the commission for local multimodal projects; and

(B) Fifteen percent to the commission for state multimodal projects that are selected by the commission.

(II) The commission shall ensure, in cooperation with each recipient of such money from the account, that any net proceeds of tax-exempt transportation revenue anticipation notes credited to the account and any interest and income derived from the deposit and investment of any such proceeds are expended only in compliance with all applicable federal laws and regulations governing the use of tax-exempt note proceeds.

(c) With respect to the distribution of money for local multimodal projects required by subsection (2)(a)(I)(A) of this section and, for net proceeds of taxable transportation revenue anticipation notes and interest and income derived from the deposit and investment of such proceeds only, the distribution of money for local multimodal projects required by subsection (2)(b)(I)(A) of this section, the commission shall establish a formula for disbursement of the amount allocated for local multimodal projects, based on population and transit ridership, in consultation with the transportation advisory committee created in section 43-1-1104, the transit and rail advisory committee of the department, transit advocacy organizations, and bicycle and pedestrian advocacy organizations. Recipients shall provide a match equal to the amount of the award; except that the commission may create a formula for reducing or exempting the match requirement for local governments or agencies due to their size or any other special circumstances.

(3) (a) The department shall annually report to the transportation legislation review committee of the general assembly created in section 43-2-145 (1) regarding its expenditures from the fund and the account including, at a minimum:

(I) An aggregate accounting of all money expended from the fund and the account during the prior fiscal year; and

(II) A listing of all projects receiving funding from the fund and the account during the prior fiscal year that includes for each project:

(A) Identification of the entity receiving funding for the project;

(B) The amount of funding provided for the project; and

(C) The amount of local matching money provided for the project.

(b) Notwithstanding section 24-1-136 (11)(a), the reporting requirement specified in subsection (3)(a) of this section continues indefinitely.