(1) Net proceeds from the sale of any transportation revenue anticipation notes that the executive director issues pursuant to section 43-4-705 (13)(b) that are not otherwise pledged for the payment of the notes shall be allocated as follows:

(a) Eighty-five percent of the net proceeds shall be credited to the state highway fund created in section 43-1-219 and expended by the department only for qualified federal aid transportation projects that are included in the strategic transportation project investment program of the department of transportation and that are designated for tier 1 funding as ten-year development program projects on the department's development program project list, with at least twenty-five percent of the net proceeds of transportation revenue anticipation notes that are credited to the state highway fund being used for projects that are located in counties with populations of fifty thousand or fewer as of July 2015 as reported by the state demography office of the department of local affairs.

(b) Fifteen percent of the net proceeds shall be credited to the transportation revenue anticipation notes proceeds account of the multimodal transportation options fund created in section 43-4-1103 (1).

(2) (a) The transportation revenue anticipation notes reserve account is hereby created in the state highway fund. The state treasurer shall credit a portion of the money transferred from the general fund to the state highway fund pursuant to section 24-75-219 (5)(c)(IV)(A) to the reserve account as follows:

(I) On June 30, 2020, seventy-five million nine hundred fifty-two thousand five hundred dollars; and

(II) On June 30, 2021, seventy-five million nine hundred fifty-two thousand five hundred dollars.

(b) During any state fiscal year for which there is a general fund revenue shortfall and the governor formulates and implements a plan to reduce general fund expenditures as required by section 24-75-201.5, the transportation commission, in consultation with the governor, may allocate money from the account for the sole purpose of paying all or a portion of any payment on transportation revenue anticipation notes due during the state fiscal year. In addition, the commission may allocate money from the account at any time if doing so will allow the commission to fully repay the notes. Once all transportation revenue anticipation notes are repaid in full, the state treasurer shall transfer any money remaining in the account to the state highway fund.

(3) (a) This section is repealed:

(I) Effective January 1, 2019, if a ballot issue initiated by private citizens 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".

(II) Effective January 1, 2020, if a 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 2019 statewideelection pursuant to section 43-4-705 (13)(b) and a majority of the electors voting on the ballot issue vote "No/Against".

(b) This subsection (3) is repealed, effective January 1, 2020, if a 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 2019 statewide election pursuant to section 43-4-705 (13)(b) and a majority of the electors voting on the ballot issue vote "Yes/For".