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HB 30: "An Act relating to the transportation infrastructure fund, to local public transportation, to the municipal harbor facility grant fund, to motor fuel taxes, to the motor vehicle registration fee, to driver's license fees, to identification card fees, to the studded tire tax, and to the vehicle rental tax; and providing for an effective date."

00 HOUSE BILL NO. 30 01 "An Act relating to the transportation infrastructure fund, to local public 02 transportation, to the municipal harbor facility grant fund, to motor fuel taxes, to the 03 motor vehicle registration fee, to driver's license fees, to identification card fees, to the 04 studded tire tax, and to the vehicle rental tax; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 02.15.090 is amended by adding a new subsection to read: 07 (j) The funds received by the department from leases or fees under this section 08 shall be deposited in the transportation infrastructure fund established in art. IX, sec. 09 18, Constitution of the State of Alaska. 10 * Sec. 2. AS 18.65.310 is amended by adding a new subsection to read: 11 (l) The fees collected by the department under this section shall be deposited 12 into the transportation infrastructure fund established in art. IX, sec. 18, Constitution 13 of the State of Alaska. 14 * Sec. 3. AS 28.10.421(g) is amended to read:

01 (g) The fees collected by the department under (b), (c), (e), (h), and (i) of this 02 section shall be deposited in the transportation infrastructure fund established in 03 art. IX, sec. 18, Constitution of the State of Alaska. The fees collected by the 04 department under (d) and (f) of this section shall be deposited into the general 05 fund. The Department of Administration shall separately account for three percent of 06 the fees collected under (d) and (f) of this section and deposited in the general fund. 07 The annual estimated balance in the account may be used by the legislature to make 08 appropriations for administration of AS 28.10.021(a) and AS 28.22 (Alaska 09 Mandatory Automobile Insurance Act). 10 * Sec. 4. AS 28.15.271 is amended by adding a new subsection to read: 11 (f) All fees collected under this section shall be deposited into the 12 transportation infrastructure fund established in art. IX, sec. 18, Constitution of the 13 State of Alaska. 14 * Sec. 5. AS 29.60.800(a) is amended to read: 15 (a) There is established the municipal harbor facility grant fund consisting of 16 money appropriated to the fund. Each fiscal year, the legislature may appropriate 17 money to the fund [FROM THE WATERCRAFT FUEL TAX ACCOUNT 18 (AS 43.40.010(f)) AND FROM THE FISHERIES BUSINESS TAX COLLECTED 19 UNDER AS 43.75.015 AFTER PAYMENTS TO MUNICIPALITIES ARE MADE 20 UNDER AS 43.75.130. THE LEGISLATURE MAY MAKE OTHER 21 APPROPRIATIONS TO THE FUND]. The legislature may appropriate to the fund 22 income earned on money in the fund. 23 * Sec. 6. AS 37.05.146(c)(72) is amended to read: 24 (72) vehicle registration fees collected under AS 28.10.421(d) and (f) 25 [AS 28.10.421] and other fees and charges collected under AS 28.10.441; 26 * Sec. 7. AS 37.14 is amended by adding new sections to read: 27 Article 10. Transportation Infrastructure Fund. 28 Sec. 37.14.850. Transportation infrastructure fund. (a) Under art. IX, sec. 29 18, Constitution of the State of Alaska, the transportation infrastructure fund is 30 established. The fund consists of 31 (1) appropriations to the fund;

01 (2) revenue received after July 1, 2013, from any state tax on fuel used 02 for the propulsion of motor vehicles, aircraft, and watercraft, less refunds, credits, and 03 collection costs as provided by law; 04 (3) revenue received after July 1, 2013, from a registration fee levied 05 for a motor vehicle that is not a special registration fee and from any driver's license 06 fee; 07 (4) revenue received after July 1, 2013, from the studded tire tax under 08 AS 43.98.025; 09 (5) revenue received after July 1, 2013, from leases and fees from use 10 of airport facilities or space; 11 (6) revenue received after July 1, 2013, from airspace leases authorized 12 under 23 U.S.C. 156; 13 (7) other revenue received after July 1, 2013, as designated by the 14 legislature. 15 (b) The commissioner of revenue shall manage the fund as an endowment, 16 with the goal that the purchasing power of the fund will not diminish over time 17 without regard to additional contributions that may be made to the fund. The 18 commissioner shall invest the assets of the fund in a manner likely to yield at least a 19 six percent real rate of return over time. 20 (c) Money from an appropriation made to the fund remaining in the fund at the 21 end of a fiscal year does not lapse and remains available for investment and 22 appropriation in successive fiscal years. 23 Sec. 37.14.860. Use of the fund. (a) On or before October 1 of each year, the 24 commissioner of revenue shall prepare a report for the legislature that identifies 25 (1) that amount defined as six percent of the average of the market 26 values of the assets of the fund, excluding the money deposited into the fund in the 27 previous year under AS 37.14.850(a)(2) - (7), on June 30 for the five fiscal years 28 immediately preceding the fiscal year in which the report is prepared; and 29 (2) that amount defined as 50 percent of the revenue deposited into the 30 fund under AS 37.14.850(a)(2) - (7) in the previous fiscal year. 31 (b) The amount identified in (a) of this section is available for appropriation

01 for capital projects and major maintenance for transportation and related facilities. An 02 appropriation from the fund may not be made to a project for which federal money has 03 been allocated unless the appropriation is for matching money for the project and the 04 amount of all appropriations from the fund to match federal money does not exceed 20 05 percent of the total amount available for appropriation from the fund. 06 (c) Appropriations made from the fund for capital projects for transportation 07 and related facilities shall be distributed based on amounts not to exceed the following 08 percentages: 09 (1) 80 percent of the appropriations from the fund may be used for 10 projects related to roads and surface transportation, to include development of, major 11 maintenance of, and improvements to the road system in the state, all related 12 appurtenances within the rights-of-way, and walkways; 13 (2) 25 percent of the appropriations from the fund may be used for 14 projects related to aviation, to include development of, major maintenance of, and 15 improvements to the state's rural airport system and airports owned by the state or a 16 municipality; 17 (3) 25 percent of the appropriations from the fund may be used for 18 projects related to the Alaska marine highway system, to include the lease, purchase, 19 rehabilitation, major maintenance, or modification of existing or new vessels; 20 (4) 20 percent of the appropriations from the fund may be used for 21 projects related to harbor facilities and for deposit into the municipal harbor facility 22 grant fund (AS 29.60.800), to include the development of, major maintenance of, and 23 improvements to harbor and marine facilities; 24 (5) 20 percent of the appropriations from the fund may be used for 25 projects related to community transportation and public transit with priority given to 26 projects in which community matching funds are available, to include development of 27 and improvements to public transit conveyances and facilities, including land-based 28 and water-based vehicles and specialized local transportation for the elderly and 29 persons with disabilities; and 30 (6) 15 percent of the appropriations from the fund may be used for 31 projects related to pedestrian facilities, trails, and bike paths, to include development

01 of and improvements to sidewalks, bike paths, or pedestrian facilities that are located 02 in the rights-of-way maintained by the department and that are adjacent to a road. 03 Sec. 37.14.870. Market value of the fund. The Department of Revenue shall 04 determine the market value of the fund on the close of business on June 30 of each 05 year in accordance with generally accepted accounting principles for the determination 06 of fair value. 07 Sec. 37.14.880. Powers and duties of the commissioner of revenue. In 08 carrying out the investment duties under AS 37.14.850 - 37.14.899, the commissioner 09 of revenue has the powers and duties set out in AS 37.10.071. Not later than the 10th 10 day following the convening of each regular session of the legislature, the 11 commissioner of revenue shall make available a report to the legislature on the 12 condition and investment performance of the fund. 13 Sec. 37.14.890. Transportation Infrastructure Fund Advisory Council. (a) 14 The Transportation Infrastructure Fund Advisory Council is established and consists 15 of 24 members as follows: 16 (1) the chair of the House Transportation Committee; 17 (2) the chair of the Senate Transportation Committee; 18 (3) three deputy commissioners of transportation and public facilities 19 appointed by the commissioner of transportation and public facilities, or, if three 20 deputy commissioners are not available, the commissioner's designees; 21 (4) four members of the public, appointed by the governor, who 22 represent various modes of transportation, including land, air, and water; and 23 (5) one representative from each of the following organizations: 24 (A) Anchorage Metropolitan Area Transportation Solutions 25 Policy Committee; 26 (B) Fairbanks Metropolitan Area Transportation System Policy 27 Committee; 28 (C) Alaska Municipal League; 29 (D) Alaska Travel Industry Association; 30 (E) Alaska State Chamber of Commerce; 31 (F) The Associated General Contractors of Alaska;

01 (G) Alaska Trucking Association; 02 (H) Aviation Advisory Board; 03 (I) Alaska Marine Transportation Advisory Board; 04 (J) Alaska Association of Harbormasters and Port 05 Administrators; 06 (K) Alaska Oil and Gas Association; 07 (L) Alaska Miners Association; 08 (M) Alaska Mobility Coalition; 09 (N) Alaska Inter-Tribal Council; and 10 (O) Alaska Federation of Natives. 11 (b) Each of the four public members appointed under (a)(4) of this section 12 shall 13 (1) be from a different judicial district as described in AS 22.10.010; 14 and 15 (2) have extensive experience and knowledge in the field of 16 transportation of people and goods. 17 (c) The council members listed in (a)(4) and (5) of this section shall serve 18 staggered four-year terms. 19 (d) From the members listed in (a)(4) and (5) of this section, the council shall 20 elect a chair of the council. If a vacancy occurs among the members appointed under 21 (a)(4) of this section, the governor shall immediately appoint a member for the 22 unexpired portion of the term. 23 (e) A member of the council appointed under (a) of this section serves without 24 compensation but is entitled to travel and per diem expenses as provided in 25 AS 39.20.180. 26 (f) Using the criteria developed by the Department of Transportation and 27 Public Facilities under AS 44.42.020(a)(17), the advisory council shall submit a report 28 to the governor and the legislature not later than October 15 of each year making 29 recommendations regarding what capital projects for transportation and related 30 facilities should be funded from the fund. 31 Sec. 37.14.899. Definition. In AS 37.14.850 - 37.14.899, "fund" means the

01 transportation infrastructure fund established in art. IX, sec. 18, Constitution of the 02 State of Alaska. 03 * Sec. 8. AS 43.40.010(e) is amended to read: 04 (e) Sixty percent of the proceeds of the revenue from the taxes on aviation 05 fuel, excluding the amount determined to have been spent by the state in its collection, 06 shall be refunded to a municipality owning and operating or leasing and operating an 07 airport in the proportion that the revenue was collected at the municipal airport. All 08 other proceeds of the taxes on aviation fuel shall be paid into the transportation 09 infrastructure fund established in art. IX, sec. 18, Constitution of the State of 10 Alaska [A SPECIAL AVIATION FUEL TAX ACCOUNT IN THE STATE 11 GENERAL FUND. THE LEGISLATURE MAY APPROPRIATE FUNDS FROM 12 THIS ACCOUNT FOR AVIATION FACILITIES]. 13 * Sec. 9. AS 43.40.010(h) is amended to read: 14 (h) All motor fuel tax receipts shall be paid into the transportation 15 infrastructure fund established in art. IX, sec. 18, Constitution of the State of 16 Alaska [GENERAL FUND AND DISTRIBUTED TO THE PROPER ACCOUNTS 17 IN THE GENERAL FUND]. Valid motor fuel tax refund claims shall be paid from the 18 transportation infrastructure fund established in art. IX, sec. 18, Constitution of 19 the State of Alaska [HIGHWAY FUEL TAX ACCOUNT IN THE GENERAL 20 FUND]. 21 * Sec. 10. AS 43.40.030(a) is amended to read: 22 (a) A [EXCEPT AS SPECIFIED IN AS 43.40.010(j), A] person who uses 23 motor fuel to operate an internal combustion engine is entitled to a refund of six cents 24 a gallon if 25 (1) the tax on the motor fuel has been paid; 26 (2) the motor fuel is not aviation fuel, or motor fuel used in or on 27 watercraft; and 28 (3) the internal combustion engine is not used in or in conjunction with 29 a motor vehicle licensed to be operated on public ways. 30 * Sec. 11. AS 43.40.070 is amended to read: 31 Sec. 43.40.070. Refund warrants. Upon approval of a refund claim by the

01 department, a disbursement shall be made from the transportation infrastructure 02 fund established in art. IX, sec. 18, Constitution of the State of Alaska, 03 [HIGHWAY FUEL TAX ACCOUNT IN THE GENERAL FUND] in favor of the 04 applicant in the amount of the claim. 05 * Sec. 12. AS 43.52.080(b) is amended to read: 06 (b) Fifty percent of the [THE] proceeds of the vehicle rental taxes imposed 07 by AS 43.52.010 - 43.52.099 shall be deposited into the transportation 08 infrastructure fund established in art. IX, sec. 18, Constitution of the State of 09 Alaska. Fifty percent of the proceeds of the vehicle rental tax imposed by 10 AS 43.52.010 - 43.52.099 shall be deposited into a special vehicle rental tax account 11 in the general fund. 12 * Sec. 13. AS 43.98.025 is amended by adding a new subsection to read: 13 (i) The fees remitted to the department under (b) of this section shall be 14 deposited in the transportation infrastructure fund established in art. IX, sec. 18, 15 Constitution of the State of Alaska. 16 * Sec. 14. AS 44.42.020(a) is amended to read: 17 (a) The department shall 18 (1) plan, design, construct, and maintain all state modes of 19 transportation and transportation facilities and all docks, floats, breakwaters, buildings, 20 and similar facilities; 21 (2) study existing transportation modes and facilities in the state to 22 determine how they might be improved or whether they should continue to be 23 maintained; 24 (3) study alternative means of improving transportation in the state 25 with regard to the economic costs of each alternative and its environmental and social 26 effects; 27 (4) develop a comprehensive, long-range, intermodal transportation 28 plan for the state; 29 (5) study alternatives to existing modes of transportation in urban areas 30 and develop plans to improve urban transportation; 31 (6) cooperate and coordinate with and enter into agreements with

01 federal, state, and local government agencies and private organizations and persons in 02 exercising its powers and duties; 03 (7) manage, operate, and maintain state transportation facilities and all 04 docks, floats, breakwaters, and buildings, including all state highways, vessels, 05 railroads, pipelines, airports, and aviation facilities; 06 (8) study alternative means of transportation in the state, considering 07 the economic, social, and environmental effects of each alternative; 08 (9) coordinate and develop state and regional transportation systems, 09 considering deletions, additions, and the absence of alterations; 10 (10) develop facility program plans for transportation and state 11 buildings, docks, and breakwaters required to implement the duties set out in this 12 section, including but not limited to functional performance criteria and schedules for 13 completion; 14 (11) supervise and maintain all state automotive and mechanical 15 equipment, aircraft, and vessels, except vessels and aircraft used by the Department of 16 Fish and Game or the Department of Public Safety; for state vehicles maintained by 17 the department, the department shall, every five years, evaluate the cost, efficiency, 18 and commercial availability of alternative fuels for automotive purposes, and the 19 purpose for which the vehicles are intended to be used, and convert vehicles to use 20 alternative fuels or purchase energy efficient vehicles whenever practicable; the 21 department may participate in joint ventures with public or private partners that will 22 foster the availability of alternative fuels for all automotive fuel consumers; 23 (12) supervise aeronautics inside the state, under AS 02.10; 24 (13) implement the safety and financial responsibility requirements for 25 air carriers under AS 02.40; 26 (14) inspect weights and measures; 27 (15) at least every four years, study alternatives available to finance 28 transportation systems in order to provide an adequate level of funding to sustain and 29 improve the state's transportation system; 30 (16) promote and support methods or modes of local public 31 transportation serving persons in various regions of the state;

01 (17) develop criteria for determining eligibility of projects for 02 funding and for evaluating projects for funding from the transportation 03 infrastructure fund that provide for a statewide balance of projects in both urban 04 and rural areas. 05 * Sec. 15. AS 44.62.175(a) is amended to read: 06 (a) The lieutenant governor shall develop and supervise the Alaska Online 07 Public Notice System, to be maintained on the state's site on the Internet. The 08 lieutenant governor shall prescribe the form of notices posted on the system by state 09 agencies. The Alaska Online Public Notice System must include 10 (1) notices of proposed actions given under AS 44.62.190(a); 11 (2) notices of state agency meetings required under AS 44.62.310(e), 12 even if the meeting has been held; 13 (3) notices of solicitations to bid issued under AS 36.30.130; 14 (4) notices of state agency requests for proposals issued under 15 AS 18.55.255, 18.55.320; AS 36.30.210; AS 37.05.316; and AS 38.05.120 [; AND 16 AS 43.40.010]; 17 (5) executive orders and administrative orders issued by the governor; 18 (6) written delegations of authority made by the governor or the head 19 of a principal department under AS 44.17.010; 20 (7) the text or a summary of the text of a regulation or order of repeal 21 of a regulation for which notice is given under AS 44.62.190(a), including an 22 emergency regulation or repeal regardless of whether it has taken effect; 23 (8) notices required by AS 44.62.245(b) regarding an amended version 24 of a document or other material incorporated by reference in a regulation; 25 (9) a summary of the text of recently issued formal opinions and 26 memoranda of advice of the attorney general; 27 (10) a list of vacancies on boards, commissions, and other bodies 28 whose members are appointed by the governor; and 29 (11) in accordance with AS 39.52.240(h), advisory opinions of the 30 attorney general. 31 * Sec. 16. AS 43.40.010(f), 43.40.010(g), and 43.40.010(j) are repealed.

01 * Sec. 17. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 TRANSITION. Notwithstanding AS 37.14.850 - 37.14.899, as enacted by sec. 7 of 04 this Act, the commissioner of revenue shall calculate average transportation infrastructure 05 fund values for purposes of AS 37.14.860(a)(1) in the years 2014 through 2018 as follows: 06 (1) the commissioner of revenue shall prepare a report to the legislature on or 07 before October 1, 2013, identifying that amount defined as six percent of the market value of 08 the transportation infrastructure fund, excluding the money deposited into the fund in the 09 previous fiscal year under AS 37.14.850(a)(2) - (7), on July 1, 2013; the amount is available 10 for appropriation during the First Regular Session of the Twenty-Eighth Alaska State 11 Legislature under AS 37.14.860(b), enacted by sec. 7 of this Act; 12 (2) for average transportation infrastructure fund value calculations for 2014 13 through 2017, on or before October 1, 2014, and on or before October 1 in subsequent years 14 through October 2017, the commissioner of revenue shall prepare a report to the legislature 15 that identifies that amount defined as six percent of the average of the market values of the 16 assets of the transportation infrastructure fund, excluding the money deposited into the fund in 17 the previous fiscal year under AS 37.14.850(a)(2) - (7), on July 1, 2013, and on June 30 of 18 each subsequent year, as identified in the reports required by this paragraph; the amounts are 19 available for appropriation during the respective regular sessions of the Alaska State 20 Legislature under AS 37.14.860(b), enacted by sec. 7 of this Act. 21 * Sec. 18. The uncodified law of the State of Alaska is amended by adding a new section to 22 read: 23 INITIAL APPOINTMENTS AND TERMS. Notwithstanding AS 37.14.890(a), as 24 enacted by sec. 7 of this Act, the terms of the first members of the Transportation 25 Infrastructure Fund Advisory Council appointed by the governor under AS 37.14.890(a)(4) 26 and (5), as enacted by sec. 7 of this Act, are as follows: (1) five members shall be appointed 27 for four-year terms; (2) five members shall be appointed for three-year terms; (3) five 28 members shall be appointed for two-year terms; and (4) four members shall be appointed for 29 one-year terms. The governor shall specify the term of office of each member appointed 30 subject to this section. 31 * Sec. 19. The uncodified law of the State of Alaska is amended by adding a new section to

01 read: 02 SEVERABILITY. Under AS 01.10.030, if AS 37.14.890(a)(1) or (2), enacted by sec. 03 7 of this Act, or the application of them to any person or circumstance is held invalid, the 04 remainder of the provisions of that section and their application to other persons or 05 circumstance is not affected. 06 * Sec. 20. The uncodified law of the State of Alaska is amended by adding a new section to 07 read: 08 CONTINGENCY. Except as to AS 44.42.020(a)(16), enacted by sec. 14 of this Act, 09 the provisions of this Act take effect only if an amendment to the Constitution of the State of 10 Alaska establishing the transportation infrastructure fund as a dedicated fund is approved by 11 the voters before July 1, 2013. 12 * Sec. 21. AS 44.42.020(a)(16), enacted by sec. 14 of this Act, takes effect immediately 13 under AS 01.10.070(c). 14 * Sec. 22. If, under sec. 20 of this Act, AS 44.42.020(a)(17), enacted by sec. 14 of this Act, 15 takes effect, it takes effect on the day following the date of certification of the results of the 16 2012 general election. 17 * Sec. 23. Except as provided in secs. 21 and 22 of this Act, if this Act takes effect under 18 sec. 20 of this Act, it takes effect July 1, 2013.