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HB 329: "An Act relating to the transportation infrastructure fund, to local public transportation, to motor fuel taxes, and to the motor vehicle registration fee; and providing for an effective date."

00 HOUSE BILL NO. 329 01 "An Act relating to the transportation infrastructure fund, to local public 02 transportation, to motor fuel taxes, and to the motor vehicle registration fee; and 03 providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 06 to read: 07 LEGISLATIVE INTENT. It is the intent of the legislature that $1,000,000,000 be 08 appropriated to the transportation infrastructure fund on establishment of the fund. 09 * Sec. 2. AS 28.10.421(g) is amended to read: 10 (g) The fees collected by the department under (b), (c), (e), (h), and (i) of this 11 section shall be deposited in the transportation infrastructure fund established in 12 art. IX, sec. 18, Constitution of the State of Alaska. The fees collected by the 13 department under (d) and (f) of this section shall be deposited into the general 14 fund. The Department of Administration shall separately account for three percent of

01 the fees collected under (d) and (f) of this section and deposited in the general fund. 02 The annual estimated balance in the account may be used by the legislature to make 03 appropriations for administration of AS 28.10.021(a) and AS 28.22 (Alaska 04 Mandatory Automobile Insurance Act). 05 * Sec. 3. AS 29.60.800(a) is amended to read: 06 (a) There is established the municipal harbor facility grant fund consisting of 07 money appropriated to the fund. Each fiscal year, the legislature may appropriate 08 money to the fund from [THE WATERCRAFT FUEL TAX ACCOUNT 09 (AS 43.40.010(f)) AND FROM] the fisheries business tax collected under 10 AS 43.75.015 after payments to municipalities are made under AS 43.75.130. The 11 legislature may make other appropriations to the fund. The legislature may appropriate 12 to the fund income earned on money in the fund. 13 * Sec. 4. AS 37.05.146(c)(72) is amended to read: 14 (72) vehicle registration fees collected under AS 28.10.421(d) and 15 28.10.421(f) [AS 28.10.421] and other fees and charges collected under AS 28.10.441; 16 * Sec. 5. AS 37.14 is amended by adding new sections to read: 17 Article 10. Transportation Infrastructure Fund. 18 Sec. 37.14.850. Transportation infrastructure fund. (a) Under art. IX, sec. 19 18, Constitution of the State of Alaska, there is established the transportation 20 infrastructure fund. The fund consists of 21 (1) appropriations to the fund; 22 (2) revenue received after April 1, 2011, from any state tax on fuel 23 used for the propulsion of motor vehicles, aircraft, and watercraft, less refunds, credits, 24 and collection costs as provided by law; and 25 (3) revenue received after April 1, 2011, from a registration fee levied 26 for a motor vehicle that is not a special registration fee. 27 (b) The commissioner of revenue shall manage the fund as an endowment, 28 with the goal that the purchasing power of the fund will not diminish over time 29 without regard to additional contributions that may be made to the fund. The 30 commissioner shall invest the assets of the fund in a manner likely to yield at least a 31 six percent real rate of return over time.

01 (c) Money from an appropriation made to the fund remaining in the fund at the 02 end of a fiscal year does not lapse and remains available for investment and 03 appropriation in successive fiscal years. 04 Sec. 37.14.860. Use of the fund. (a) On or before October 1 of each year, the 05 commissioner of revenue shall prepare a report for the legislature that identifies that 06 amount defined as six percent of the average of the market values of the assets of the 07 fund on June 30 for the five fiscal years immediately preceding the fiscal year in 08 which the report is prepared. 09 (b) The amount identified in (a) of this section is available for appropriation 10 for capital projects for transportation and related facilities. An appropriation from the 11 fund may not be made to a project for which federal money has been allocated unless 12 the appropriation is for matching money for the project and the amount of all 13 appropriations from the fund to match federal money does not exceed 10 percent of 14 the total amount available for appropriation from the fund. 15 (c) Appropriations made from the fund for capital projects for transportation 16 and related facilities shall be distributed based on amounts not to exceed the following 17 percentages: 18 (1) 60 percent of the appropriations from the fund may be used for 19 projects related to roads and surface transportation; 20 (2) 13 percent of the appropriations from the fund may be used for 21 projects related to aviation; 22 (3) 12 percent of the appropriations from the fund may be used for 23 projects related to the Alaska marine highway system; 24 (4) eight percent of the appropriations from the fund may be used for 25 projects related to harbor facilities and state-owned marine facilities and for deposit 26 into the municipal harbor facility grant fund (AS 29.60.800); 27 (5) five percent of the appropriations from the fund may be used for 28 projects related to local community transportation and transit, with priority given to 29 projects in which community matching funds are available; and 30 (6) two percent of the appropriations from the fund may be used for 31 projects related to local service roads and trails.

01 Sec. 37.14.870. Market value of the fund. The Department of Revenue shall 02 determine the market value of the fund on the close of business on June 30 of each 03 year in accordance with generally accepted accounting principles for the determination 04 of fair value. 05 Sec. 37.14.880. Powers and duties of the commissioner of revenue. In 06 carrying out the investment duties under AS 37.14.850 - 37.14.899, the commissioner 07 of revenue has the powers and duties set out in AS 37.10.071. Not later than the 10th 08 day following the convening of each regular session of the legislature, the 09 commissioner of revenue shall make available a report to the legislature on the 10 condition and investment performance of the fund. 11 Sec. 37.14.890. Transportation Infrastructure Fund Advisory Council. (a) 12 The Transportation Infrastructure Fund Advisory Council is established and consists 13 of eight members as follows: 14 (1) the chair of the House Transportation Committee; 15 (2) the chair of the Senate Transportation Committee; 16 (3) one legislator appointed by the chair of the House Transportation 17 Committee; 18 (4) one legislator appointed by the chair of the Senate Transportation 19 Committee; 20 (5) the commissioner of transportation and public facilities; and 21 (6) three regional directors of the Department of Transportation and 22 Public Facilities authorized under AS 44.42.040, appointed by the commissioner of 23 transportation and public facilities. 24 (b) Two of the legislative members of the council under (a)(1) - (4) of this 25 section shall represent a rural area and two shall represent an urban area. 26 (c) A member of the council appointed under (a) of this section serves without 27 compensation but is entitled to travel and per diem expenses as provided in 28 AS 39.20.180. 29 (d) Using the criteria developed by the Department of Transportation and 30 Public Facilities under AS 44.42.020(a)(17), the advisory council shall submit a report 31 to the legislature not later than December 31 of each year making recommendations

01 regarding what capital projects for transportation and related facilities should be 02 funded by the legislature from the fund. 03 Sec. 37.14.899. Definition. In AS 37.14.850 - 37.14.899, "fund" means the 04 transportation infrastructure fund established in art. IX, sec. 18, Constitution of the 05 State of Alaska. 06 * Sec. 6. AS 43.40.010(e) is amended to read: 07 (e) Sixty percent of the proceeds of the revenue from the taxes on aviation 08 fuel, excluding the amount determined to have been spent by the state in its collection, 09 shall be refunded to a municipality owning and operating or leasing and operating an 10 airport in the proportion that the revenue was collected at the municipal airport. All 11 other proceeds of the taxes on aviation fuel shall be paid into the transportation 12 infrastructure fund established in art. IX, sec. 18, Constitution of the State of 13 Alaska [A SPECIAL AVIATION FUEL TAX ACCOUNT IN THE STATE 14 GENERAL FUND. THE LEGISLATURE MAY APPROPRIATE FUNDS FROM 15 THIS ACCOUNT FOR AVIATION FACILITIES]. 16 * Sec. 7. AS 43.40.010(h) is amended to read: 17 (h) All motor fuel tax receipts shall be paid into the transportation 18 infrastructure fund established in art. IX, sec. 18, Constitution of the State of 19 Alaska [GENERAL FUND AND DISTRIBUTED TO THE PROPER ACCOUNTS 20 IN THE GENERAL FUND]. Valid motor fuel tax refund claims shall be paid from the 21 transportation infrastructure fund established in art. IX, sec. 18, Constitution of 22 the State of Alaska [HIGHWAY FUEL TAX ACCOUNT IN THE GENERAL 23 FUND]. 24 * Sec. 8. AS 43.40.030(a) is amended to read: 25 (a) A [EXCEPT AS SPECIFIED IN AS 43.40.010(j), A] person who uses 26 motor fuel to operate an internal combustion engine is entitled to a refund of six cents 27 a gallon if 28 (1) the tax on the motor fuel has been paid; 29 (2) the motor fuel is not aviation fuel, or motor fuel used in or on 30 watercraft; and 31 (3) the internal combustion engine is not used in or in conjunction with

01 a motor vehicle licensed to be operated on public ways. 02 * Sec. 9. AS 43.40.070 is amended to read: 03 Sec. 43.40.070. Refund warrants. Upon approval of a refund claim by the 04 department, a disbursement shall be made from the transportation infrastructure 05 fund established in art. IX, sec. 18, Constitution of the State of Alaska, 06 [HIGHWAY FUEL TAX ACCOUNT IN THE GENERAL FUND] in favor of the 07 applicant in the amount of the claim. 08 * Sec. 10. AS 44.42.020(a) is amended to read: 09 (a) The department shall 10 (1) plan, design, construct, and maintain all state modes of 11 transportation and transportation facilities and all docks, floats, breakwaters, buildings, 12 and similar facilities; 13 (2) study existing transportation modes and facilities in the state to 14 determine how they might be improved or whether they should continue to be 15 maintained; 16 (3) study alternative means of improving transportation in the state 17 with regard to the economic costs of each alternative and its environmental and social 18 effects; 19 (4) develop a comprehensive, long-range, intermodal transportation 20 plan for the state; 21 (5) study alternatives to existing modes of transportation in urban areas 22 and develop plans to improve urban transportation; 23 (6) cooperate and coordinate with and enter into agreements with 24 federal, state, and local government agencies and private organizations and persons in 25 exercising its powers and duties; 26 (7) manage, operate, and maintain state transportation facilities and all 27 docks, floats, breakwaters, and buildings, including all state highways, vessels, 28 railroads, pipelines, airports, and aviation facilities; 29 (8) study alternative means of transportation in the state, considering 30 the economic, social, and environmental effects of each alternative; 31 (9) coordinate and develop state and regional transportation systems,

01 considering deletions, additions, and the absence of alterations; 02 (10) develop facility program plans for transportation and state 03 buildings, docks, and breakwaters required to implement the duties set out in this 04 section, including but not limited to functional performance criteria and schedules for 05 completion; 06 (11) supervise and maintain all state automotive and mechanical 07 equipment, aircraft, and vessels, except vessels and aircraft used by the Department of 08 Fish and Game or the Department of Public Safety; for state vehicles maintained by 09 the department, the department shall every five years evaluate the cost, efficiency, and 10 commercial availability of alternative fuels for automotive purposes, and the purpose 11 for which the vehicles are intended to be used, and convert or purchase vehicles to use 12 alternative fuels whenever practicable; the department may participate in joint 13 ventures with public or private partners that will foster the availability of alternative 14 fuels for all automotive fuel consumers; 15 (12) supervise aeronautics inside the state, under AS 02.10; 16 (13) implement the safety and financial responsibility requirements for 17 air carriers under AS 02.40; 18 (14) inspect weights and measures; 19 (15) at least every four years, study alternatives available to finance 20 transportation systems in order to provide an adequate level of funding to sustain and 21 improve the state's transportation system; 22 (16) promote and support methods or modes of local public 23 transportation serving persons in various regions of the state; 24 (17) develop criteria for determining eligibility of projects for 25 funding and for evaluating projects for funding from the transportation 26 infrastructure fund that provide for a statewide balance of projects in both urban 27 and rural areas. 28 * Sec. 11. AS 44.62.175(a) is amended to read: 29 (a) The lieutenant governor shall develop and supervise the Alaska Online 30 Public Notice System, to be maintained on the state's site on the Internet. The 31 lieutenant governor shall prescribe the form of notices posted on the system by state

01 agencies. The Alaska Online Public Notice System must include 02 (1) notices of proposed actions given under AS 44.62.190(a); 03 (2) notices of state agency meetings required under AS 44.62.310(e), 04 even if the meeting has been held; 05 (3) notices of solicitations to bid issued under AS 36.30.130; 06 (4) notices of state agency requests for proposals issued under 07 AS 18.55.255, 18.55.320; AS 36.30.210; AS 37.05.316; and AS 38.05.120 [; AND 08 AS 43.40.010]; 09 (5) executive orders and administrative orders issued by the governor; 10 (6) written delegations of authority made by the governor or the head 11 of a principal department under AS 44.17.010; 12 (7) the text or a summary of the text of a regulation or order of repeal 13 of a regulation for which notice is given under AS 44.62.190(a), including an 14 emergency regulation or repeal regardless of whether it has taken effect; 15 (8) notices required by AS 44.62.245(b) regarding an amended version 16 of a document or other material incorporated by reference in a regulation; 17 (9) a summary of the text of recently issued formal opinions and 18 memoranda of advice of the attorney general; 19 (10) a list of vacancies on boards, commissions, and other bodies 20 whose members are appointed by the governor; and 21 (11) in accordance with AS 39.52.240(h), advisory opinions of the 22 attorney general. 23 * Sec. 12. AS 43.40.010(f), 43.40.010(g), and 43.40.010(j) are repealed. 24 * Sec. 13. The uncodified law of the State of Alaska is amended by adding a new section to 25 read: 26 TRANSITION. Notwithstanding AS 37.14.850 - 37.14.899, as enacted by sec. 5 of 27 this Act, the commissioner of revenue shall calculate average transportation infrastructure 28 fund values in the years 2012 through 2016 as follows: 29 (1) the commissioner of revenue shall prepare a report to the legislature on or 30 before October 1, 2011, identifying that amount defined as five percent of the market value of 31 the transportation infrastructure fund on July 1, 2011; the amount is available for

01 appropriation during the First Regular Session of the Twenty-Seventh Alaska State 02 Legislature under AS 37.14.860(b), enacted by sec. 5 of this Act; 03 (2) for average transportation infrastructure fund value calculations for 2012 04 through 2015, on or before October 1, 2012, and on or before October 1 in subsequent years 05 through October 2015, the commissioner of revenue shall prepare a report to the legislature 06 that identifies that amount defined as five percent of the average of the market values of the 07 assets of the transportation infrastructure fund on July 1, 2011, and on June 30 of each 08 subsequent year, as identified in the reports required by this paragraph; the amounts are 09 available for appropriation during the respective regular sessions of the Alaska State 10 Legislature under AS 37.14.860(b), enacted by sec. 5 of this Act. 11 * Sec. 14. The uncodified law of the State of Alaska is amended by adding a new section to 12 read: 13 CONTINGENCY. Except as to AS 44.42.020(a)(16), enacted by sec. 10 of this Act, 14 the provisions of this Act take effect only if an amendment to the Constitution of the State of 15 Alaska establishing the transportation infrastructure fund as a dedicated fund is approved by 16 the voters before April 1, 2011. 17 * Sec. 15. AS 44.42.020(a)(16), enacted by sec. 10 of this Act, takes effect immediately 18 under AS 01.10.070(c). 19 * Sec. 16. Except as provided in sec. 15 of this Act, if this Act takes effect under sec. 14 of 20 this Act, it takes effect April 1, 2011.