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CSHB 30(TRA): "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, to the vehicle rental tax, and to other fees and taxes related to motor vehicles; and providing for an effective date."

00 CS FOR HOUSE BILL NO. 30(TRA) 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, to the vehicle rental tax, and to other fees and taxes related to motor 05 vehicles; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 18.65.310 is amended by adding a new subsection to read: 08 (l) The fees collected by the department under this section shall be deposited 09 into the transportation infrastructure fund established in art. IX, sec. 18, Constitution 10 of the State of Alaska. 11 * Sec. 2. AS 28.10.421(g) is amended to read: 12 (g) The fees collected by the department under (b), (c), (e), (h), and (i) of this 13 section shall be deposited in the transportation infrastructure fund established in

01 art. IX, sec. 18, Constitution of the State of Alaska. The fees collected by the 02 department under (d) and (f) of this section shall be deposited into the general 03 fund. The Department of Administration shall separately account for three percent of 04 the fees collected under (d) and (f) of this section and deposited in the general fund. 05 The annual estimated balance in the account may be used by the legislature to make 06 appropriations for administration of AS 28.10.021(a) and AS 28.22 (Alaska 07 Mandatory Automobile Insurance Act). 08 * Sec. 3. AS 28.90 is amended by adding a new section to article 1 to read: 09 Sec. 28.90.050. Fees collected by the department. Unless otherwise provided 10 by law, state fees or taxes collected under this title, less refunds, shall be deposited in 11 the transportation infrastructure fund established under art. IX, sec. 18, Constitution of 12 the State of Alaska. Any tax or fee related to snowmobiles collected under this title 13 may not be deposited into the transportation infrastructure fund established under art. 14 IX, sec. 18, Constitution of the State of Alaska. 15 * Sec. 4. AS 29.60.800(a) is amended to read: 16 (a) There is established the municipal harbor facility grant fund consisting of 17 money appropriated to the fund. Each fiscal year, the legislature may appropriate 18 money to the fund [FROM THE WATERCRAFT FUEL TAX ACCOUNT 19 (AS 43.40.010(f)) AND FROM THE FISHERIES BUSINESS TAX COLLECTED 20 UNDER AS 43.75.015 AFTER PAYMENTS TO MUNICIPALITIES ARE MADE 21 UNDER AS 43.75.130. THE LEGISLATURE MAY MAKE OTHER 22 APPROPRIATIONS TO THE FUND]. The legislature may appropriate to the fund 23 income earned on money in the fund. 24 * Sec. 5. AS 37.05.146(c)(72) is amended to read: 25 (72) vehicle registration fees collected under AS 28.10.421(d) and (f) 26 [AS 28.10.421] and other fees and charges collected under AS 28.10.441; 27 * Sec. 6. AS 37.14 is amended by adding new sections to read: 28 Article 10. Transportation Infrastructure Fund. 29 Sec. 37.14.850. Transportation infrastructure fund. (a) Under art. IX, sec. 30 18, Constitution of the State of Alaska, the transportation infrastructure fund is 31 established. The fund consists of

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

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

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

01 (G) Alaska Marine Transportation Advisory Board; 02 (H) Alaska Association of Harbormasters and Port 03 Administrators; 04 (I) Alaska Oil and Gas Association; 05 (J) Alaska Miners Association; 06 (K) Alaska Mobility Coalition; and 07 (L) Alaska Inter-Tribal Council. 08 (b) Each of the four public members appointed under (a)(4) of this section 09 shall 10 (1) be from a different judicial district as described in AS 22.10.010; 11 and 12 (2) have extensive experience and knowledge in the field of 13 transportation of people and goods. 14 (c) The council members listed in (a)(4) and (5) of this section shall serve 15 staggered four-year terms. 16 (d) From the members listed in (a)(4) and (5) of this section, the council shall 17 elect a chair of the council. If a vacancy occurs among the members appointed under 18 (a)(4) of this section, the governor shall immediately appoint a member for the 19 unexpired portion of the term. 20 (e) A member of the council appointed under (a) of this section serves without 21 compensation but is entitled to travel and per diem expenses as provided in 22 AS 39.20.180. 23 (f) Using the criteria developed by the Department of Transportation and 24 Public Facilities under AS 44.42.020(a)(17), the advisory council shall submit a report 25 to the governor and the legislature not later than October 15 of each year making 26 recommendations regarding what capital projects for transportation and related 27 facilities should be funded from the fund. 28 Sec. 37.14.899. Definition. In AS 37.14.850 - 37.14.899, "fund" means the 29 transportation infrastructure fund established in art. IX, sec. 18, Constitution of the 30 State of Alaska. 31 * Sec. 7. AS 43.40.010(e) is amended to read:

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

01 applicant in the amount of the claim. 02 * Sec. 11. AS 43.52.080(b) is amended to read: 03 (b) Fifty percent of the [THE] proceeds of the vehicle rental taxes imposed 04 by AS 43.52.010 - 43.52.099 shall be deposited into the transportation 05 infrastructure fund established in art. IX, sec. 18, Constitution of the State of 06 Alaska. Fifty percent of the proceeds of the vehicle rental tax imposed by 07 AS 43.52.010 - 43.52.099 shall be deposited into a special vehicle rental tax account 08 in the general fund. 09 * Sec. 12. AS 43.98.025 is amended by adding a new subsection to read: 10 (i) The fees remitted to the department under (b) of this section shall be 11 deposited in the transportation infrastructure fund established in art. IX, sec. 18, 12 Constitution of the State of Alaska. 13 * Sec. 13. AS 44.42.020(a) is amended to read: 14 (a) The department shall 15 (1) plan, design, construct, and maintain all state modes of 16 transportation and transportation facilities and all docks, floats, breakwaters, buildings, 17 and similar facilities; 18 (2) study existing transportation modes and facilities in the state to 19 determine how they might be improved or whether they should continue to be 20 maintained; 21 (3) study alternative means of improving transportation in the state 22 with regard to the economic costs of each alternative and its environmental and social 23 effects; 24 (4) develop a comprehensive, long-range, intermodal transportation 25 plan for the state; 26 (5) study alternatives to existing modes of transportation in urban areas 27 and develop plans to improve urban transportation; 28 (6) cooperate and coordinate with and enter into agreements with 29 federal, state, and local government agencies and private organizations and persons in 30 exercising its powers and duties; 31 (7) manage, operate, and maintain state transportation facilities and all

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

01 and rural areas. 02 * Sec. 14. AS 44.62.175(a) is amended to read: 03 (a) The lieutenant governor shall develop and supervise the Alaska Online 04 Public Notice System, to be maintained on the state's site on the Internet. The 05 lieutenant governor shall prescribe the form of notices posted on the system by state 06 agencies. The Alaska Online Public Notice System must include 07 (1) notices of proposed actions given under AS 44.62.190(a); 08 (2) notices of state agency meetings required under AS 44.62.310(e), 09 even if the meeting has been held; 10 (3) notices of solicitations to bid issued under AS 36.30.130; 11 (4) notices of state agency requests for proposals issued under 12 AS 18.55.255, 18.55.320; AS 36.30.210; AS 37.05.316; and AS 38.05.120 [; AND 13 AS 43.40.010]; 14 (5) executive orders and administrative orders issued by the governor; 15 (6) written delegations of authority made by the governor or the head 16 of a principal department under AS 44.17.010; 17 (7) the text or a summary of the text of a regulation or order of repeal 18 of a regulation for which notice is given under AS 44.62.190(a), including an 19 emergency regulation or repeal regardless of whether it has taken effect; 20 (8) notices required by AS 44.62.245(b) regarding an amended version 21 of a document or other material incorporated by reference in a regulation; 22 (9) a summary of the text of recently issued formal opinions and 23 memoranda of advice of the attorney general; 24 (10) a list of vacancies on boards, commissions, and other bodies 25 whose members are appointed by the governor; and 26 (11) in accordance with AS 39.52.240(h), advisory opinions of the 27 attorney general. 28 * Sec. 15. AS 28.10.152(e); AS 43.40.010(f), 43.40.010(g), and 43.40.010(j) are repealed. 29 * Sec. 16. The uncodified law of the State of Alaska is amended by adding a new section to 30 read: 31 TRANSITION. Notwithstanding AS 37.14.850 - 37.14.899, as enacted by sec. 6 of

01 this Act, the commissioner of revenue shall calculate average transportation infrastructure 02 fund values for purposes of AS 37.14.860(a)(1) in the years 2014 through 2018 as follows: 03 (1) the commissioner of revenue shall prepare a report to the legislature on or 04 before October 1, 2013, identifying that amount defined as six percent of the market value of 05 the transportation infrastructure fund, excluding the money deposited into the fund in the 06 previous fiscal year under AS 37.14.850(a)(2) - (5), on July 1, 2013; the amount is available 07 for appropriation during the First Regular Session of the Twenty-Eighth Alaska State 08 Legislature under AS 37.14.860(b), enacted by sec. 6 of this Act; 09 (2) for average transportation infrastructure fund value calculations for 2014 10 through 2017, on or before October 1, 2014, and on or before October 1 in subsequent years 11 through October 2017, the commissioner of revenue shall prepare a report to the legislature 12 that identifies that amount defined as six percent of the average of the market values of the 13 assets of the transportation infrastructure fund, excluding the money deposited into the fund in 14 the previous fiscal year under AS 37.14.850(a)(2) - (5), on July 1, 2013, and on June 30 of 15 each subsequent year, as identified in the reports required by this paragraph; the amounts are 16 available for appropriation during the respective regular sessions of the Alaska State 17 Legislature under AS 37.14.860(b), enacted by sec. 6 of this Act. 18 * Sec. 17. The uncodified law of the State of Alaska is amended by adding a new section to 19 read: 20 INITIAL APPOINTMENTS AND TERMS. Notwithstanding AS 37.14.890(a), as 21 enacted by sec. 6 of this Act, the terms of the first members of the Transportation 22 Infrastructure Fund Advisory Council appointed by the governor under AS 37.14.890(a)(4) 23 and (5), as enacted by sec. 6 of this Act, are as follows: (1) four members shall be appointed 24 for four-year terms; (2) four members shall be appointed for three-year terms; (3) four 25 members shall be appointed for two-year terms; and (4) four members shall be appointed for 26 one-year terms. The governor shall specify the term of office of each member appointed 27 subject to this section. 28 * Sec. 18. The uncodified law of the State of Alaska is amended by adding a new section to 29 read: 30 SEVERABILITY. Under AS 01.10.030, if AS 37.14.890(a)(1) or (2), enacted by sec. 31 6 of this Act, or the application of them to any person or circumstance is held invalid, the

01 remainder of the provisions of that section and their application to other persons or 02 circumstance is not affected. 03 * Sec. 19. The uncodified law of the State of Alaska is amended by adding a new section to 04 read: 05 CONTINGENCY. The provisions of this Act take effect only if an amendment to the 06 Constitution of the State of Alaska establishing the transportation infrastructure fund as a 07 dedicated fund is approved by the voters before July 1, 2013. 08 * Sec. 20. If, under sec. 19 of this Act, this Act takes effect, it takes effect on the effective 09 date of the constitutional amendment described in sec. 19 of this Act.