(1) There is hereby created in the state treasury the transportation infrastructure revolving fund, referred to in this section as the "revolving fund", which shall be maintained and administered by the executive director. The revolving fund shall consist of federal, state, or private grants and all moneys that may be transferred or appropriated thereto by the general assembly or that may otherwise be made available to the fund pursuant to law. All interest or other return on the investment of moneys in the revolving fund and all payments of principal and interest credited to the revolving fund as repayment of loans and other financial assistance provided from the revolving fund pursuant to this section shall be credited to the revolving fund. The state treasurer shall be authorized to invest moneys in the revolving fund in such manner as allowed by law so long as such moneys are not needed for the purpose of the revolving fund. Moneys in the revolving fund are continuously appropriated to the department for the purposes set forth in this section. Any moneys credited to the revolving fund shall remain in the revolving fund and shall not revert to the general fund at the end of any given fiscal year.

(1.5) Notwithstanding any provision of subsection (1) of this section to the contrary, on April 20, 2009, the state treasurer shall deduct three million dollars from the revolving fund and transfer such sum to the general fund.

(2) The revolving fund shall include a highway account, a transit account, an aviation account, and a rail account. The general assembly shall, by appropriation, determine how state general fund moneys in the revolving fund shall be allocated to the highway account.

(3) The commission shall adopt rules in accordance with the "State Administrative Procedure Act" regarding:

(a) The eligibility requirements for financial assistance from the revolving fund;

(b) The disbursement of revolving fund moneys;

(c) The interest rates to be charged on loans made from the revolving fund; and

(d) The repayment of loans made from the revolving fund.

(4) Subject to the provisions of section 18 of article X of the state constitution, moneys in the revolving fund may be used for the following purposes:

(a) To provide assistance to public and private entities for the acquisition, improvement, or construction of highways, multimodal transportation, and intermodal transportation facilities in the state. Such assistance includes, but is not limited to, the making of loans and other forms of financial assistance for qualified projects.

(b) To pay the costs incurred by the state treasurer and the department in the performance of duties pursuant to this section; and

(c) Any other purpose consistent with the provisions of this section.

(5) Except as otherwise provided in subsection (6) of this section, "qualified project" means:

(a) Any public or private transportation project as authorized by the commission, including, but not limited to, planning, environmental impact studies, feasibility studies, engineering, construction, reconstruction, resurfacing, restoring, rehabilitation, or replacement of a public or private transportation facility within the state;

(b) The acquisition of real or personal property, or interests therein, for a public or private transportation facility within the state;

(c) Any highway, transit, aviation, rail, or other transportation project within the state that is eligible for financing or financial assistance under state or federal law;

(d) The maintenance, repair, improvement, or construction of any public or private highway, road, street, parkway, transit, aviation, or rail project within the state; and

(e) The acquisition, improvement, or construction of rights-of-way, bridges, tunnels, railroad-highway crossings, drainage structures, signs, guardrails, or protective structures within this state.

(6) The term "qualified project" shall not include transportation facilities and other transportation projects that are restricted to private use.

(7) In addition to requiring interest to be paid on loans made from the revolving fund, the executive director may charge to and collect from public and private entities receiving assistance from the revolving fund fees and charges sufficient to reimburse the department for reasonable expenses incurred in processing and reviewing applications and in recommending loans and financial assistance pursuant to the provisions of this section.

(8) (a) If a recipient of financial assistance from the revolving fund fails to meet any of the terms or conditions of the loan or other form of assistance, the department may bring a right of action through the state attorney general pursuant to section 43-1-112 against such recipient in district court to seek any applicable legal or equitable remedy, including reasonable attorneys fees.

(b) Except as otherwise provided in paragraph (c) of this subsection (8), in addition to the remedies provided under paragraph (a) of this subsection (8), if the recipient is a municipality or county and such recipient defaults on the repayment of any loan made from the revolving fund, the department may withhold funds that it would otherwise disburse to the recipient. In no event shall the amount withheld exceed the amount that a recipient owes to the revolving fund. Funds withheld from a defaulting recipient shall be deposited in the account of the revolving fund from which the recipient received financial assistance and credited towards the amount due to such fund from the recipient.

(c) For purposes of paragraph (b) of this subsection (8), the department may only withhold funds it would otherwise disburse to a municipality or county from the highway users tax fund if such municipality or county defaults on the repayment of a loan made from the revolving fund for the construction, maintenance, or supervision of a public highway in this state.