(1) Except as provided in subsection (3), the state portion must be allocated to state issuers pursuant to 17-5-1316.
(2) As a condition of receiving an allocation, each state issuer:
(a) on issuance of the bonds, shall pay 35 cents per thousand of bonds to be deposited in the state general fund for the purpose of funding a portion of the annual comprehensive financial report audit; and
(b) shall provide the legislative auditor with full access to its financial records.
(3) Through the first Monday in September, allocations of the state portion must be made by the department to state issuers pursuant to 17-5-1316. After the first Monday in September, the state portion expires and any unallocated and unused state portion remaining must be allocated by the department as the state's volume cap to issuers pursuant to 17-5-1316 without preference.