Introduced by Senator Sears of Bennington District and Senator Shepard of Bennington District
Subject: Transportation; bonding; GARVEE bonds
Statement of purpose: This bill proposes to authorize the state treasurer to issue Grant Anticipation Revenue Vehicles (“GARVEE”) bonds, which are financing instruments issued in anticipation of reimbursement with future federal aid funds, for transportation projects of $10 million or more.
AN ACT RELATING TO THE ISSUANCE OF GARVEE BONDS FOR CERTAIN TRANSPORTATION CAPITAL PROJECTS
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 19 V.S.A. § 12c is added to read:
§ 12c. BONDING AUTHORITY
(a) It is the policy of the state to manage state and federal financial resources in as judicious a manner as possible, including the select use of Grant Anticipation Revenue Vehicles (“GARVEE”) bonds. These are debt‑financing instruments issued in anticipation of reimbursement with future federal aid funds. To that end, the state treasurer is authorized to issue GARVEE bonds for transportation projects undertaken by the agency of transportation which cost $10 million or more and are in the approved transportation program.
(b) The secretary of transportation, consulting with the treasurer, shall identify transportation projects that will be funded with bond proceeds. The secretary, in consultation with the treasurer, may revise the project list. The secretary of transportation shall notify the state treasurer within 30 days of the postponement of any authorized projects for which bonding is the source of funds.
(c) The spending authority authorized by this act shall be continuing and shall not revert at the end of the fiscal year.
The Vermont General Assembly
115 State Street