(a) Before a surcharge may be imposed, a transit improvement program shall be developed and adopted in accordance with this section.

(b) A transit improvement program must indicate and describe in reasonable detail the public transit system projects and services to be funded and implemented under the program.

(c) A transit improvement program must state:

(1) The type and rate of a surcharge that will provide funding to the program;

(2) When a surcharge will terminate or the date or conditions upon which the surcharge will be terminated or reduced;

(3) Any other sources of funding for the program;

(4) An estimate of the initial and recurring cost of the program;

(5) The implementing agencies responsible for carrying out the program; and

(6) The geographic location of the public transit system projects.

(d) Prior to adoption of a transit improvement program in accordance with subsection (e), a local government must:

(1) Solicit public comment regarding the transit improvement program;

(2) Make reasonable efforts to notify or coordinate with other local governments surrounding the local government that is considering adopting the transit improvement program; and

(3) Prepare a plan of financing that demonstrates a proposed transit improvement program's financial feasibility that includes the methodology and assumptions used in the financial forecasts and projections supporting the plan's analysis. The plan of financing shall include information on the amount of the transit improvement program's infrastructure to be financed through the issuance of bonds or other debt. The plan of financing's analysis will be based on forecasts and projections for at least a ten-year period after the planned inception date for the program. For the purposes of this section, “financial feasibility” means the transit improvement program is likely to be viable after taking into account the anticipated costs, risks, and liabilities of the transit improvement program, the anticipated revenue generated by the surcharge and transit improvement program, and the local government's financial position. A local government shall obtain a determination or opinion in accordance with the attestation standards from an independent certified public accounting firm that the assumptions in the local government's plan of financing provide a reasonable basis for the local government's forecast or projection given the hypothetical assumptions supporting its analysis that the proposed transit improvement program is financially feasible. Prior to obtaining the determination or opinion, the local government shall obtain approval from the comptroller of the treasury of the selection of the firm and the procedures to be used by the firm in making the determination or opinion. Upon approval of the firm and the procedures to be used by the firm by the comptroller of the treasury, the local government shall submit to the firm a plan of financing for any of the projects or services to be provided as part of the transit improvement program. Other relevant information may be considered in making the determination or opinion required by this subdivision (d)(3). The local government shall publish the completed financial feasibility determination or opinion in its entirety with the plan of financing on its website as soon as practicable after completion.

(e)

(1) A transit improvement program is adopted if it is passed by ordinance or resolution by majority vote of the local government's legislative body.

(2) A copy of such ordinance or resolution must be provided to the department of revenue prior to the election on the question of whether the surcharge shall be levied.

(f) The ordinance or resolution must contain a brief summary of the transit improvement program for which revenue from the surcharge will be used, written in a clear and coherent manner using words with common everyday meanings, and not exceeding two hundred fifty (250) words in length, and must include the information listed in subsections (b) and (c). The brief summary shall be placed on the ballot pursuant to § 67-4-3202(b)(1).

(g) The financing and operations of a transit improvement program shall be accounted for in a manner approved by the comptroller of the treasury and in compliance with generally accepted accounting principles (GAAP). Nothing in this part limits the authority of the comptroller of the treasury to audit the revenues and expenditures of a transit improvement program, the financing or operations of a transit improvement program, and to charge a reasonable fee for its services.