(1) Subject to the provisions of this part 7, the executive director, on behalf of the department, from time to time, may issue revenue anticipation notes for the purpose of financing any qualified federal aid transportation projects.

(2) (a) Subject to the provisions of this subsection (2), the principal of and interest on revenue anticipation notes and any costs associated with the issuance and administration of such notes shall be payable solely from:

(I) Federal transportation funds and state matching funds that are allocated on an annual basis for such purpose by the commission, in its sole discretion, in accordance with section 43-1-113;

(II) Any proceeds of such notes and any earnings from the investment of such note proceeds pledged for such purpose;

(II.5) Money transferred from the general fund to the state highway fund pursuant to section 24-75-219 (5)(c); and

(III) Any other revenues, funds, or other security pledged for such purpose that do not constitute revenues or funds of the state.

(b) The owners or holders of the revenue anticipation notes may not look to any other revenues of the state for the payment of the notes.

(c) (I) (A) The portion of the principal of and interest on revenue anticipation notes and the costs associated with the issuance and administration of such notes that may be paid from federal transportation funds pursuant to federal law and any agreement between the United States department of transportation and the department or the political subdivision that is or is to be the initial recipient of such federal transportation funds, hereinafter referred to in this subsection (2) as "the federal share of principal, interest, and costs", shall be paid from federal transportation funds that the commission, in its sole discretion, has allocated on an annual basis for this purpose in accordance with section 43-1-113.

(B) If federal transportation funds are not sufficient to pay the federal share of principal, interest, and costs when due, the executive director shall request and the commission may grant such request to temporarily pay the federal share of principal, interest, and costs with state matching funds that the commission, in its sole discretion, has allocated on an annual basis for this purpose in accordance with section 43-1-113.

(II) Notwithstanding the provisions of section 43-1-220 (2)(c) and (2)(h), the state highway fund, the state highway supplementary fund, or both, shall be reimbursed for the amount of moneys in said fund or funds used in accordance with subparagraph (I) of this paragraph (c) from federal transportation funds that the commission determines are not needed in the future to pay the federal share of principal, interest, and costs.

(d) No moneys credited to the state highway fund that are required to be expended in accordance with the provisions of section 18 of article X of the state constitution shall be allocated and used to pay revenue anticipation notes financing any qualified federal aid transportation project that is not a state highway project or to pay any costs associated with the issuance and administration of such notes.

(3) (a) The executive director shall issue revenue anticipation notes pursuant to a certificate executed by the executive director, a trust indenture between the executive director and any commercial bank or trust company having full trust powers, or any other instrument issued by the executive director.

(b) As the executive director deems appropriate, the certificate, trust indenture, or other instrument authorizing revenue anticipation notes may contain such provisions setting forth the rights and remedies of the owners or holders of the revenue anticipation notes, may contain such provisions for protecting and enforcing the rights and remedies of the owners or holders of the revenue anticipation notes as the executive director deems appropriate, and may contain such other provisions that the executive director deems appropriate for the security of the owners or holders of the revenue anticipation notes. Such provisions may include, but shall not be limited to, provisions regarding letters of credit, insurance, stand-by credit agreements, or other forms of credit ensuring timely payment of the revenue anticipation notes, including the redemption price or the purchase price, and provisions regarding the reimbursement of providers of such credit out of revenues available for the payment of principal of and interest on the revenue anticipation notes for any amounts paid by such providers with respect to such notes.

(4) (a) Subject to the provisions of paragraph (b) of this subsection (4), revenue anticipation notes may be issued in such aggregate principal amount, may be issued in one or more series, may bear such dates, may be in such denomination or denominations, may mature on any date or dates, may mature in such amount or amounts, may be in such form, may be payable at such place or places, may be subject to such terms of redemption with or without a premium, may contain such provisions as the executive director deems appropriate regarding insurance to ensure the timely payment of the notes, and may contain such other provisions not inconsistent with the provisions of this part 7 as the executive director may determine.

(b) The aggregate amount of annual installments of principal and interest on all revenue anticipation notes issued pursuant to this part 7 that are scheduled to be paid during any given fiscal year, determined as of the date of issuance of each series of notes, shall not exceed an amount equal to fifty percent of the aggregate amount of federal transportation funds paid to the department during the fiscal year immediately preceding the fiscal year in which such series of notes is issued.

(5) The rate or rates of interest borne by the revenue anticipation notes may be fixed, adjustable, or variable or any combination thereof without regard to any interest rate limitation appearing in any other law of this state. If any rate or rates are adjustable or variable, the standard, index, method, or formula shall be determined by the executive director.

(6) Revenue anticipation notes may be sold at public or private sale and may be sold at, above, or below the principal amounts thereof. The sale of such notes shall not be subject to the "Procurement Code", articles 101 to 112 of title 24, C.R.S.

(7) Revenue anticipation notes shall be signed on behalf of the department by the executive director and the chief engineer of the department. Pursuant to article 55 of title 11, C.R.S., the signatures of the executive director and the chief engineer of the department may be facsimile signatures imprinted, engraved, stamped, or otherwise placed on the revenue anticipation notes. If all of the signatures on the revenue anticipation notes are facsimile signatures, provision shall be made for a manual authenticating signature on the revenue anticipation notes by or on behalf of a designated authenticating agent.

(8) The power to fix the date of sale of the revenue anticipation notes, to receive bids or proposals, to award and sell revenue anticipation notes, to fix interest rates, and to take all other action necessary to sell and deliver the notes may be delegated to an agent of the executive director.

(9) Any outstanding revenue anticipation notes may be refunded by the executive director pursuant to article 56 of title 11, C.R.S. All revenue anticipation notes are declared to be negotiable instruments.

(10) The executive director is authorized to engage the services of such consultants, financial advisors, underwriters, bond insurers, letter of credit banks, rating agencies, agents, or other persons whose services may be required or deemed advantageous by the executive director in connection with such revenue anticipation notes. The executive director shall contract for such services in accordance with the "Procurement Code", articles 101 to 112 of title 24, C.R.S.; except that contracting for services of bond insurers, letter of credit banks, and rating agencies shall not be subject to the "Procurement Code".

(11) The executive director may, with respect to revenue anticipation notes that have been issued or proposed revenue anticipation notes, enter into interest rate exchange agreements in accordance with article 59.3 of title 11, C.R.S.

(12) (a) The proceeds from the issuance of revenue anticipation notes that are not otherwise pledged for the payment of such notes, state matching funds, or federal transportation funds, any of which have been allocated on an annual basis by the commission, in its sole discretion, in accordance with section 43-1-113 for the payment of revenue anticipation notes or any costs associated with the issuance and administration of such notes, are pledged and shall be used only for the purpose or purposes for which such revenues are allocated. The proceeds from the issuance of revenue anticipation notes that are pledged pursuant to section 43-4-707 (1) shall be used only for the purpose or purposes for which such revenues are pledged. Any such pledge shall be valid and binding from the time the commission makes the allocation; except that any pledge of revenue anticipation note proceeds pursuant to section 43-4-707 (1) shall be valid and binding from the date of issuance of such notes. The pledge shall create a valid security interest, and such revenues shall immediately be subject to the lien of the pledge and security interest without any physical delivery or further act, and the lien of the pledge and security interest shall be valid and binding against all parties having claims of any kind in tort, contract, or otherwise against the pledging party irrespective of whether such claiming party has notice of such lien. The instrument by which the pledge and security interest is created need not be recorded or filed in order to perfect such pledge and security interest.

(b) Notwithstanding any other provision of law to the contrary, including but not limited to section 24-91-103.6, C.R.S., the lien of the pledge and security interest on any revenue anticipation note proceeds shall notaffect the authority of the department to enter into contracts for the design and construction of any qualified federal aid transportation project.

(13) (a) Notwithstanding any other provision of this part 7 to the contrary, the executive director shall have the authority to issue revenue anticipation notes pursuant to this part 7 only if voters statewide approve the ballot question submitted at the November 1999 statewide election pursuant to section 43-4-703 (1) and only then to the extent allowed under the maximum amounts of debt and repayment cost so approved.

(b)

(I) Subject to voter approval of the ballot issue submitted at the November 2019 statewide election pursuant to subsection (13)(b)(III) of this section and the repayment funding commitment requirement specified in subsection (13)(b)(II) of this section, the executive director shall issue additional transportation revenue anticipation notes in a maximum amount of two billion three hundred thirty-seven million dollars and with a maximum repayment cost of three billion two hundred fifty million dollars. The maximum repayment term for any notes issued pursuant to this subsection (13)(b) is twenty years, and the certificate, trust indenture, or other instrument authorizing their issuance shall provide that the state may pay the notes in full without penalty no later than ten years following the date of issuance.

(II) Notwithstanding section 43-1-113 (19) and subsection (12)(a) of this section, before issuing any revenue anticipation notes as authorized by subsection (13)(b)(I) of this section, the transportation commission shall adopt a resolution in which it agrees, subject to the requirements of section 43-4-706 (2), that it intends to annually allocate from legally available money under its control any amount needed for payment of the notes until the notes are fully repaid. The commission shall first allocate for payment of the notes money transferred from the general fund to the state highway fund pursuant to section 24-75-219 (5)(b) and any money allocated by the commission from the transportation revenue anticipation notes reserve account created in section 43-4-714 (2) and thereafter shall allocate for payment of the notes any other legally available money under its control.

(III) The secretary of state shall submit to the registered electors of the state for their approval or rejection at the November 2019 statewide election the following ballot issue: "Shall state of Colorado debt be increased $2,337,000,000, with a maximum repayment cost of $3,250,000,000, without raising taxes, through the issuance of transportation revenue anticipation notes for the purpose of addressing critical priority transportation needs in the state by financing transportation projects, shall note proceeds and investment earnings on note proceeds be excluded from state fiscal year spending limits, and shall the amount of lease-purchase agreements required by current law to be issued for the purpose of financing transportation projects be reduced?"

(IV) No later than May 1, 2019, the department shall provide to the director of research of the legislative council the most recent available list of qualified federal aid transportation projects, including multimodal capital projects, that are designated for tier 1 funding as ten-year development program projects on the department's 2019 development program project list and that the department will fund with proceeds of any transportation revenue anticipation notes issued as authorized by this subsection (13)(b). In order to fully inform thevoters of the state concerning the projects to be funded with proceeds of any such additional transportation revenue anticipation notes before the voters vote on the ballot question specified in subsection (13)(b)(III) of this section, the director of research shall publish the list, including any subsequent updates to the list made before final approval by the legislative council of the 2019 ballot information booklet prepared pursuant to section 1-40-124.5, which updates the department shall expeditiously provide to the director of research, in the ballot information booklet.

(V) (A) This subsection (13)(b) is repealed, effective January 1, 2019, if a citizen-initiated ballot issue that authorizes the state to issue transportation revenue anticipation notes is submitted to the registered electors of the state for their approval or rejection at the November 2018 general election and a majority of the electors voting on the ballot issue vote "Yes/For".

(B) This subsection (13)(b) is repealed, effective January 1, 2020, if a majority of the electors voting on the ballot issue in subsection (13)(b)(III) of this section vote "No/Against".

(C) This subsection (13)(b)(V) is repealed, effective January 1, 2020, if a majority of the electors voting on the ballot issue in subsection (13)(b)(III) of this section vote "Yes/For".