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HB 401: "An Act increasing the motor fuel tax levied and collected on motor vehicles and on certain fuel for internal combustion engines not used in or in conjunction with a motor vehicle; directing separate accounting of amounts derived from motor vehicle licensing, registration, and transfers and related activities; authorizing the appropriation of the proceeds of the motor fuel tax on motor vehicles and the amounts separately accounted for in the special highway fuel tax account to meet the costs of activities relating to motor vehicle licensing and registration and for the uses identified in the law establishing the account; and providing for an effective date."

00                             HOUSE BILL NO. 401                                                                          
01 "An Act increasing the motor fuel tax levied and collected on motor vehicles and on                                     
02 certain fuel for internal combustion engines not used in or in conjunction with a motor                                 
03 vehicle; directing separate accounting of amounts derived from motor vehicle licensing,                                 
04 registration, and transfers and related activities; authorizing the appropriation of the                                
05 proceeds of the motor fuel tax on motor vehicles and the amounts separately accounted                                   
06 for in the special highway fuel tax account to meet the costs of activities relating to                                 
07 motor vehicle licensing and registration and for the uses identified in the law                                         
08 establishing the account; and providing for an effective date."                                                         
09 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
10    * Section 1.  AS 28.10 is amended by adding a new section to read:                                                 
11            Sec. 28.10.595.  Separate accounting.  Except as to the proceeds of fees for                               
12       which a different form of accounting and disposition is otherwise specifically provided                           
01       in this chapter,                                                                                                  
02                 (1)  the fees collected by the department under this chapter shall be                                   
03       deposited in the special highway fuel tax account in the state general fund described in                          
04       AS 43.40.010(g); and                                                                                              
05                 (2)  the legislature may appropriate the annual estimated balance of the                                
06       funds from the special highway fuel tax account for the purposes described in                                     
07       AS 43.40.010(g).                                                                                                  
08    * Sec. 2.  AS 43.40.010(g) is amended to read:                                                                     
09            (g)  The proceeds of the revenue from the tax on all motor fuels, except as                                  
10       provided in (e), (f), and (j) of this section, shall be deposited in a special highway fuel                   
11       tax account in the state general fund.  The legislature may appropriate the annual                            
12       estimated balance of the funds from the account [IT] for (1)  the annual operating                    
13       costs for the operating division or unit in the Department of Administration that                             
14       has the duties and responsibilities described in AS 28.05.011(b)(1) - (7), including                          
15       registration, titling, and transfer of motor vehicles; and (2) expenditure by the                             
16       Department of Transportation and Public Facilities directly or as matched with                                    
17       available federal-aid highway money for maintenance of highways, construction of                                  
18       highway projects and ferries included in the program provided for in AS 19.10.150,                                
19       including approaches, appurtenances and related facilities and acquisition of rights-of-                          
20       way or easements, and other highway costs including surveys, administration, and                                  
21       related matters.  All departments of the state government authorized to spend funds                               
22       collected from taxes imposed by this chapter shall perform, when feasible, all                                    
23       construction or reconstruction projects by contract after the projects have been                                  
24       advertised for competitive bids, except that, when feasible, arrangements shall be                                
25       made with political subdivisions to carry out the construction or reconstruction                                  
26       projects.  If it is not feasible for the work to be performed by state engineering forces,                        
27       the commissioner of transportation and public facilities may contract on a professional                           
28       basis with private engineering firms for road design, bridge design, and services in                              
29       connection with surveys.  If more than one private engineering firm is available for the                          
30       work, the contracts shall be entered into on a negotiated basis.                                              
31    * Sec. 3.  AS 43.40.010 is amended by adding a new subsection to read:                                             
01            (m)  In addition to the tax on motor fuel levied under (a) and (b) of this section,                          
02       there is levied an additional tax of 10 cents a gallon on all motor fuel sold or otherwise                        
03       transferred within the state or consumed by a user.  The levy made by this subsection                             
04       does not apply to motor fuel described in (a)(1) - (3) or to motor fuel described in                              
05       (b)(1) - (3) of this section.                                                                                     
06    * Sec. 4.  AS 43.40.030(a) is amended to read:                                                                     
07            (a)  Except as specified in AS 43.40.010(j), a person who uses motor fuel to                                 
08       operate an internal combustion engine is entitled to a refund of 16 [SIX] cents a gallon                      
09       if                                                                                                                
10                 (1)  the tax on the motor fuel has been paid;                                                           
11                 (2)  the motor fuel is not aviation fuel, or motor fuel used in or on                                   
12       watercraft; and                                                                                                   
13                 (3)  the internal combustion engine is not used in or in conjunction with                               
14       a motor vehicle licensed to be operated on public ways.                                                           
15    * Sec. 5.  This Act takes effect  July 1, 2002.