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CSSB 264(FIN) AM: "An Act relating to municipal highway construction grants, to minimum payments under certain municipal aid programs, to aid for municipal road maintenance, and to the transfer of roads to municipalities; and providing for an effective date."

00CS FOR SENATE BILL NO. 264(FIN) am 01 "An Act relating to municipal highway construction grants, to minimum payments 02 under certain municipal aid programs, to aid for municipal road maintenance, and 03 to the transfer of roads to municipalities; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 19.20 is amended by adding a new section to read: 06  Sec. 19.20.100. Municipal highway construction grants. (a) Each fiscal 07 year, $10,000,000 of federal funds may be appropriated to the department for 08 municipal road construction grants. The department shall make grants of the federal 09 funds to municipalities for construction projects for highways that are under municipal 10 jurisdiction. To qualify for a grant, a municipality must 11  (1) apply for the grant in the manner prescribed by the department; and 12  (2) meet all federal matching and other federal requirements for receipt 13 and expenditure of the funds. 14  (b) The amount of a municipal road construction grant is based on each mile

01 of highway maintained by the municipality, excluding (1) the official state highway 02 system, (2) highways not dedicated to public use, (3) highways maintained under 03 AS 19.30.111 - 19.30.251 (local service road program), (4) alleyways as defined in 04 regulations adopted by the department, and (5) highways not used by automotive 05 equipment. The grant for each municipality equals $2,500 per mile of road maintained 06 by the municipality. If amounts appropriated are insufficient to pay each 07 municipality's grant in full, the amounts that are available shall be distributed pro rata 08 among eligible municipalities. 09  (c) The department may adopt regulations under AS 44.62 (Administrative 10 Procedure Act) to carry out the purposes of this section. 11 * Sec. 2. AS 29.45.020(a) is amended to read: 12  Sec. 29.45.020. Taxpayer notice. (a) If a municipality levies and collects 13 property taxes, the governing body shall provide the following notice: 14 "NOTICE TO TAXPAYER 15 For the current fiscal year the (city)(borough) has been allocated the following amount 16 of state aid for school and municipal purposes under the applicable financial assistance 17 Acts: 18 PUBLIC SCHOOL FOUNDATION PROGRAM 19 ASSISTANCE (AS 14.17) $ 20 STATE AID FOR RETIREMENT OF SCHOOL 21  CONSTRUCTION DEBT (AS 14.11.100) $ 22 MUNICIPAL TAX RESOURCE EQUALIZATION 23  (AS 29.60.010 - 29.60.080) $ 24 PRIORITY REVENUE SHARING FOR 25 MUNICIPAL SERVICES (AS 29.60.100 - 29.60.180) $ 26 REVENUE SHARING FOR SAFE COMMUNITIES 27  (AS 29.60.350 - 29.60.375) $ 28  AID FOR MUNICIPAL ROAD MAINTENANCE 29  (AS 29.60.700 - 29.60.730) $ 30 TOTAL AID $ 31 The millage equivalent of this state aid, based on the dollar value of a mill in the

01 municipality during the current assessment year and for the preceding assessment year, 02 is: 03 MILLAGE EQUIVALENT 04 PREVIOUS YEAR THIS YEAR 05 PUBLIC SCHOOL FOUNDATION 06  PROGRAM ASSISTANCE . . . . MILLS . . . . MILLS 07 STATE AID FOR RETIREMENT 08   OF SCHOOL CONSTRUCTION 09  DEBT . . . .MILLS . . . .MILLS 10 MUNICIPAL TAX RESOURCE 11  EQUALIZATION . . . .MILLS . . . .MILLS 12 PRIORITY REVENUE SHARING 13 FOR MUNICIPAL SERVICES . . . .MILLS . . . .MILLS 14 REVENUE SHARING FOR SAFE 15 COMMUNITIES . . . .MILLS . . . .MILLS 16  AID FOR MUNICIPAL ROAD 17 MAINTENANCE . . . .MILLS . . . .MILLS 18 TOTAL MILLAGE 19 EQUIVALENT . . . .MILLS . . . .MILLS" 20 Notice shall be provided 21  (1) by furnishing a copy of the notice with tax statements mailed for 22 the fiscal year for which aid is received; or 23  (2) by publishing in a newspaper of general circulation in the 24 municipality a copy of the notice once each week for a period of three successive 25 weeks, with publication to occur not later than 45 days after the final adoption of the 26 municipality's budget. 27 * Sec. 3. AS 29.60.290(c) is amended to read: 28  (c) The department shall pay to each municipality eligible to receive a 29 minimum payment under this section an amount equal to the difference between the 30 minimum payment determined under (a) and (b) of this section and the sum of the 31 amounts payable for the same fiscal year under AS 29.60.010 - 29.60.080 , [AND]

01 29.60.100 - 29.60.180 , and 29.60.700 - 29.60.720 . 02 * Sec. 4. AS 29.60.372(a) is amended to read: 03  (a) If a municipality qualifies for a payment during a fiscal year under 04 AS 29.60.350 and also under AS 29.60.010 - 29.60.080, 29.60.100 - 29.60.180, or 05 29.60.290, and if the total amount payable to the municipality under those sections is 06 less than a minimum entitlement of $40,000, the department shall pay to the 07 municipality an amount equal to the difference between $40,000 and the total amount 08 payable under AS 29.60.350, 29.60.010 - 29.60.080, 29.60.100 - 29.60.180, 29.60.290, 09 and 29.60.700 - 29.60.720 [THOSE SECTIONS AND $40,000] as adjusted under 10 AS 29.60.373. 11 * Sec. 5. AS 29.60 is amended by adding new sections to read: 12 Article 9. Aid for Municipal Road Maintenance. 13  Sec. 29.60.700. Aid for municipal road maintenance. (a) The department 14 shall pay to a municipality that has the power to provide for road maintenance and 15 exercises that power a grant based on each mile of road, street, or highway maintained 16 by the municipality excluding 17  (1) the official state highway system; 18  (2) roads, streets, or highways not dedicated to public use; 19  (3) roads, streets, or highways maintained under AS 19.30.111 - 20 19.30.251 (local service road program); 21  (4) alleyways; and 22  (5) roads, streets, or highways not used by automotive equipment. 23  (b) The amount of a grant to a municipality under this section for a year 24 equals $1,000 for each mile of road, street, or highway maintained by the municipality 25 during that year. 26  Sec. 29.60.710. Municipal road maintenance account. (a) The municipal 27 road maintenance account is established in the department. Money to carry out the 28 provisions of AS 29.60.700 - 29.60.730 may be annually appropriated by the 29 legislature from proceeds of the revenue from the tax on motor fuel under 30 AS 43.40.010(m) or from federal or other sources. If amounts in the account are 31 insufficient to pay each municipality's grant authorized under AS 29.60.700, the

01 amounts that are available shall be distributed pro rata among eligible municipalities. 02  (b) Unless otherwise provided in the appropriation, money appropriated to the 03 municipal road maintenance account for a fiscal year that exceeds the amount required 04 to fully fund grants authorized under AS 29.60.700 for that fiscal year shall be 05 allocated by the Department of Community and Regional Affairs to the Department 06 of Transportation and Public Facilities for road improvements under AS 29.60.730(b). 07  Sec. 29.60.720. Regulations. The department shall adopt regulations necessary 08 to carry out the purposes of AS 29.60.700 - 29.60.730. The regulations must include 09 minimum road maintenance standards required for eligibility for grant money. The 10 department shall require a municipality to submit a performance report adequate to 11 demonstrate to the department that maintenance was performed by the municipality and 12 that the maintenance meets minimum standards prescribed by regulation. 13  Sec. 29.60.730. Transfer of roads to municipalities. (a) On application to 14 the Department of Transportation and Public Facilities by a municipality, a road, street, 15 or highway located within the boundaries of the municipality may be transferred to that 16 municipality by the Department of Transportation and Public Facilities if, after the 17 transfer, the municipality will qualify for a grant to maintain the road, street, or 18 highway under AS 29.60.700. 19  (b) Within 60 days after receiving a request from a municipality for the 20 transfer of a road, street, or highway, the Department of Transportation and Public 21 Facilities shall determine, and notify the municipality, whether the road, street, or 22 highway needs grading, surfacing, or other improvements before it is transferred to the 23 municipality under this section. Within 60 days after receiving the notification, the 24 municipality may withdraw its request for the transfer. If the Department of 25 Transportation and Public Facilities determines that the road, street, or highway may 26 be transferred after improvements are made to it and if the municipality does not 27 withdraw its request for the transfer, the Department of Transportation and Public 28 Facilities shall make those improvements, subject to appropriations for that purpose, 29 and transfer the road, street, or highway after the improvements are made. Money to 30 carry out this section shall be annually appropriated. 31 * Sec. 6. AS 43.40.010(g) is amended to read:

01  (g) The proceeds of the revenue from the tax on all motor fuels, except as 02 provided in (e), (f) , [AND] (j) , and (m) of this section, shall be deposited in a special 03 highway fuel tax account in the state general fund. The legislature may appropriate 04 funds from it for expenditure by the Department of Transportation and Public Facilities 05 directly or as matched with available federal-aid highway money for maintenance of 06 highways, construction of highway projects and ferries included in the program 07 provided for in AS 19.10.150, including approaches, appurtenances and related 08 facilities and acquisition of rights-of-way or easements, and other highway costs 09 including surveys, administration, and related matters. All departments of the state 10 government authorized to spend funds collected from taxes imposed by this chapter 11 shall perform, when feasible, all construction or reconstruction projects by contract 12 after the projects have been advertised for competitive bids, except that, when feasible, 13 arrangements shall be made with political subdivisions to carry out the construction 14 or reconstruction projects. If it is not feasible for the work to be performed by state 15 engineering forces, the commissioner of transportation and public facilities may 16 contract on a professional basis with private engineering firms for road design, bridge 17 design, and services in connection with surveys. If more than one private engineering 18 firm is available for the work , the contracts shall be entered into on a negotiated basis. 19 * Sec. 7. AS 43.40.010 is amended by adding a new subsection to read: 20  (m) Each year, the Department of Community and Regional Affairs shall 21 determine the amount necessary to fully fund grants to municipalities under 22 AS 29.60.700. That amount of the proceeds of the revenue from the taxes on motor 23 fuel used in motor vehicles licensed to be operated on public ways shall be deposited 24 in a special municipal road maintenance account in the state general fund. The 25 legislature may appropriate funds from the municipal road maintenance account for 26 grants to municipalities under AS 29.60.700. 27 * Sec. 8. AS 29.60.110(a) is repealed. 28 * Sec. 9. This Act takes effect July 1, 1998.