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CSHB 329(TRA): "An Act relating to the transportation infrastructure fund, to local public transportation, to the municipal harbor facility grant fund, to motor fuel taxes, and to the motor vehicle registration fee; and providing for an effective date."

00 CS FOR HOUSE BILL NO. 329(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, and to 03 the motor vehicle registration fee; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 28.10.421(g) is amended to read: 06 (g) The fees collected by the department under (b), (c), (e), (h), and (i) of this 07 section shall be deposited in the transportation infrastructure fund established in 08 art. IX, sec. 18, Constitution of the State of Alaska. The fees collected by the 09 department under (d) and (f) of this section shall be deposited into the general 10 fund. The Department of Administration shall separately account for three percent of 11 the fees collected under (d) and (f) of this section and deposited in the general fund. 12 The annual estimated balance in the account may be used by the legislature to make 13 appropriations for administration of AS 28.10.021(a) and AS 28.22 (Alaska 14 Mandatory Automobile Insurance Act).

01 * Sec. 2. AS 29.60.800(a) is amended to read: 02 (a) There is established the municipal harbor facility grant fund consisting of 03 money appropriated to the fund. Each fiscal year, the legislature may appropriate 04 money to the fund [FROM THE WATERCRAFT FUEL TAX ACCOUNT 05 (AS 43.40.010(f)) AND FROM THE FISHERIES BUSINESS TAX COLLECTED 06 UNDER AS 43.75.015 AFTER PAYMENTS TO MUNICIPALITIES ARE MADE 07 UNDER AS 43.75.130. THE LEGISLATURE MAY MAKE OTHER 08 APPROPRIATIONS TO THE FUND]. The legislature may appropriate to the fund 09 income earned on money in the fund. 10 * Sec. 3. AS 37.05.146(c)(72) is amended to read: 11 (72) vehicle registration fees collected under AS 28.10.421(d) and (f) 12 [AS 28.10.421] and other fees and charges collected under AS 28.10.441; 13 * Sec. 4. AS 37.14 is amended by adding new sections to read: 14 Article 10. Transportation Infrastructure Fund. 15 Sec. 37.14.850. Transportation infrastructure fund. (a) Under art. IX, sec. 16 18, Constitution of the State of Alaska, there is established the transportation 17 infrastructure fund. The fund consists of 18 (1) appropriations to the fund; 19 (2) revenue received after July 1, 2011, from any state tax on fuel used 20 for the propulsion of motor vehicles, aircraft, and watercraft, less refunds, credits, and 21 collection costs as provided by law; and 22 (3) revenue received after July 1, 2011, from a registration fee levied 23 for a motor vehicle that is not a special registration fee. 24 (b) The commissioner of revenue shall manage the fund as an endowment, 25 with the goal that the purchasing power of the fund will not diminish over time 26 without regard to additional contributions that may be made to the fund. The 27 commissioner shall invest the assets of the fund in a manner likely to yield at least a 28 six percent real rate of return over time. 29 (c) Money from an appropriation made to the fund remaining in the fund at the 30 end of a fiscal year does not lapse and remains available for investment and 31 appropriation in successive fiscal years.

01 Sec. 37.14.860. Use of the fund. (a) On or before October 1 of each year, the 02 commissioner of revenue shall prepare a report for the legislature that identifies 03 (1) that amount defined as six percent of the average of the market 04 values of the assets of the fund, excluding the money deposited into the fund in the 05 previous year from motor fuel taxes and vehicle registration fees, on June 30 for the 06 five fiscal years immediately preceding the fiscal year in which the report is prepared; 07 and 08 (2) that amount defined as 50 percent of the motor fuel taxes and 09 registration fees deposited into the fund in the previous fiscal year. 10 (b) The amount identified in (a) of this section is available for appropriation 11 for capital projects for transportation and related facilities. An appropriation from the 12 fund shall not be made to a project for which federal money has been allocated unless 13 the appropriation is for matching money for the project and the amount of all 14 appropriations from the fund to match federal money does not exceed 10 percent of 15 the total amount available for appropriation from the fund. 16 (c) Appropriations made from the fund for capital projects for transportation 17 and related facilities shall be distributed based on amounts not to exceed the following 18 percentages: 19 (1) 80 percent of the appropriations from the fund may be used for 20 projects related to roads and surface transportation, to include development of, major 21 maintenance of, and improvements to the road system in the state, all related 22 appurtenances within the rights-of-way, and walkways; 23 (2) 25 percent of the appropriations from the fund may be used for 24 projects related to aviation, to include development of, major maintenance of, and 25 improvements to the state's rural airport system and airports owned by the state or a 26 municipality; 27 (3) 25 percent of the appropriations from the fund may be used for 28 projects related to the Alaska marine highway system, to include the lease, purchase, 29 rehabilitation, major maintenance, or modification of existing or new vessels; 30 (4) 20 percent of the appropriations from the fund may be used for 31 projects related to harbor facilities and for deposit into the municipal harbor facility

01 grant fund (AS 29.60.800), to include the development of, major maintenance of, and 02 improvements to harbor and marine facilities; 03 (5) 20 percent of the appropriations from the fund may be used for 04 projects related to community transportation and public transit with priority given to 05 projects in which community matching funds are available, to include development of 06 and improvements to public transit conveyances and facilities, including land-based 07 and water-based vehicles and specialized local transportation for the elderly and 08 persons with disabilities; and 09 (6) 15 percent of the appropriations from the fund may be used for 10 projects related to pedestrian facilities, trails, and bike paths, to include development 11 of and improvements to sidewalks, bike paths, or pedestrian facilities that are located 12 in the rights-of-way maintained by the department and are adjacent to a road. 13 (d) Not more than three percent of the amount available for appropriation from 14 the fund in a year may be appropriated for operating costs related to motor vehicle 15 licensing and registration. 16 Sec. 37.14.870. Market value of the fund. The Department of Revenue shall 17 determine the market value of the fund on the close of business on June 30 of each 18 year in accordance with generally accepted accounting principles for the determination 19 of fair value. 20 Sec. 37.14.880. Powers and duties of the commissioner of revenue. In 21 carrying out the investment duties under AS 37.14.850 - 37.14.899, the commissioner 22 of revenue has the powers and duties set out in AS 37.10.071. Not later than the 10th 23 day following the convening of each regular session of the legislature, the 24 commissioner of revenue shall make available a report to the legislature on the 25 condition and investment performance of the fund. 26 Sec. 37.14.890. Transportation Infrastructure Fund Advisory Council. (a) 27 The Transportation Infrastructure Fund Advisory Council is established and consists 28 of 12 members as follows: 29 (1) the chair of the House Transportation Committee; 30 (2) the chair of the Senate Transportation Committee; 31 (3) three deputy commissioners of transportation and public facilities

01 appointed by the commissioner of transportation and public facilities, or, if three 02 deputy commissioners are not available, the commissioner's designees; 03 (4) three regional directors of the Department of Transportation and 04 Public Facilities authorized under AS 44.42.040, appointed by the commissioner of 05 transportation and public facilities; and 06 (5) four members of the public, appointed by the governor to staggered 07 four-year terms, who represent various modes of transportation, including land, air, 08 and water. 09 (b) Each of the four public members appointed under (a)(5) of this section 10 shall 11 (1) be from a different judicial district as described in AS 22.10.010; 12 and 13 (2) have extensive experience and knowledge in the field of 14 transportation of people and goods. 15 (c) The governor shall designate a chair of the council from among the public 16 members appointed under (a)(5) of this section. If a vacancy occurs among the 17 members appointed under (a)(5) of this section, the governor shall immediately 18 appoint a member for the unexpired portion of the term. 19 (d) A member of the council appointed under (a) of this section serves without 20 compensation but is entitled to travel and per diem expenses as provided in 21 AS 39.20.180. 22 (e) Using the criteria developed by the Department of Transportation and 23 Public Facilities under AS 44.42.020(a)(17), the advisory council shall submit a report 24 to the governor and the legislature not later than October 15 of each year making 25 recommendations regarding what capital projects for transportation and related 26 facilities should be funded from the fund. 27 Sec. 37.14.899. Definition. In AS 37.14.850 - 37.14.899, "fund" means the 28 transportation infrastructure fund established in art. IX, sec. 18, Constitution of the 29 State of Alaska. 30 * Sec. 5. AS 43.40.010(e) is amended to read: 31 (e) Sixty percent of the proceeds of the revenue from the taxes on aviation

01 fuel, excluding the amount determined to have been spent by the state in its collection, 02 shall be refunded to a municipality owning and operating or leasing and operating an 03 airport in the proportion that the revenue was collected at the municipal airport. All 04 other proceeds of the taxes on aviation fuel shall be paid into the transportation 05 infrastructure fund established in art. IX, sec. 18, Constitution of the State of 06 Alaska [A SPECIAL AVIATION FUEL TAX ACCOUNT IN THE STATE 07 GENERAL FUND. THE LEGISLATURE MAY APPROPRIATE FUNDS FROM 08 THIS ACCOUNT FOR AVIATION FACILITIES]. 09 * Sec. 6. AS 43.40.010(h) is amended to read: 10 (h) All motor fuel tax receipts shall be paid into the transportation 11 infrastructure fund established in art. IX, sec. 18, Constitution of the State of 12 Alaska [GENERAL FUND AND DISTRIBUTED TO THE PROPER ACCOUNTS 13 IN THE GENERAL FUND]. Valid motor fuel tax refund claims shall be paid from the 14 transportation infrastructure fund established in art. IX, sec. 18, Constitution of 15 the State of Alaska [HIGHWAY FUEL TAX ACCOUNT IN THE GENERAL 16 FUND]. 17 * Sec. 7. AS 43.40.030(a) is amended to read: 18 (a) A [EXCEPT AS SPECIFIED IN AS 43.40.010(j), A] person who uses 19 motor fuel to operate an internal combustion engine is entitled to a refund of six cents 20 a gallon if 21 (1) the tax on the motor fuel has been paid; 22 (2) the motor fuel is not aviation fuel, or motor fuel used in or on 23 watercraft; and 24 (3) the internal combustion engine is not used in or in conjunction with 25 a motor vehicle licensed to be operated on public ways. 26 * Sec. 8. AS 43.40.070 is amended to read: 27 Sec. 43.40.070. Refund warrants. Upon approval of a refund claim by the 28 department, a disbursement shall be made from the transportation infrastructure 29 fund established in art. IX, sec. 18, Constitution of the State of Alaska, 30 [HIGHWAY FUEL TAX ACCOUNT IN THE GENERAL FUND] in favor of the 31 applicant in the amount of the claim.

01 * Sec. 9. AS 44.42.020(a) is amended to read: 02 (a) The department shall 03 (1) plan, design, construct, and maintain all state modes of 04 transportation and transportation facilities and all docks, floats, breakwaters, buildings, 05 and similar facilities; 06 (2) study existing transportation modes and facilities in the state to 07 determine how they might be improved or whether they should continue to be 08 maintained; 09 (3) study alternative means of improving transportation in the state 10 with regard to the economic costs of each alternative and its environmental and social 11 effects; 12 (4) develop a comprehensive, long-range, intermodal transportation 13 plan for the state; 14 (5) study alternatives to existing modes of transportation in urban areas 15 and develop plans to improve urban transportation; 16 (6) cooperate and coordinate with and enter into agreements with 17 federal, state, and local government agencies and private organizations and persons in 18 exercising its powers and duties; 19 (7) manage, operate, and maintain state transportation facilities and all 20 docks, floats, breakwaters, and buildings, including all state highways, vessels, 21 railroads, pipelines, airports, and aviation facilities; 22 (8) study alternative means of transportation in the state, considering 23 the economic, social, and environmental effects of each alternative; 24 (9) coordinate and develop state and regional transportation systems, 25 considering deletions, additions, and the absence of alterations; 26 (10) develop facility program plans for transportation and state 27 buildings, docks, and breakwaters required to implement the duties set out in this 28 section, including but not limited to functional performance criteria and schedules for 29 completion; 30 (11) supervise and maintain all state automotive and mechanical 31 equipment, aircraft, and vessels, except vessels and aircraft used by the Department of

01 Fish and Game or the Department of Public Safety; for state vehicles maintained by 02 the department, the department shall every five years evaluate the cost, efficiency, and 03 commercial availability of alternative fuels for automotive purposes, and the purpose 04 for which the vehicles are intended to be used, and convert or purchase vehicles to use 05 alternative fuels whenever practicable; the department may participate in joint 06 ventures with public or private partners that will foster the availability of alternative 07 fuels for all automotive fuel consumers; 08 (12) supervise aeronautics inside the state, under AS 02.10; 09 (13) implement the safety and financial responsibility requirements for 10 air carriers under AS 02.40; 11 (14) inspect weights and measures; 12 (15) at least every four years, study alternatives available to finance 13 transportation systems in order to provide an adequate level of funding to sustain and 14 improve the state's transportation system; 15 (16) promote and support methods or modes of local public 16 transportation serving persons in various regions of the state; 17 (17) develop criteria for determining eligibility of projects for 18 funding and for evaluating projects for funding from the transportation 19 infrastructure fund that provide for a statewide balance of projects in both urban 20 and rural areas. 21 * Sec. 10. AS 44.62.175(a) is amended to read: 22 (a) The lieutenant governor shall develop and supervise the Alaska Online 23 Public Notice System, to be maintained on the state's site on the Internet. The 24 lieutenant governor shall prescribe the form of notices posted on the system by state 25 agencies. The Alaska Online Public Notice System must include 26 (1) notices of proposed actions given under AS 44.62.190(a); 27 (2) notices of state agency meetings required under AS 44.62.310(e), 28 even if the meeting has been held; 29 (3) notices of solicitations to bid issued under AS 36.30.130; 30 (4) notices of state agency requests for proposals issued under 31 AS 18.55.255, 18.55.320; AS 36.30.210; AS 37.05.316; and AS 38.05.120 [; AND

01 AS 43.40.010]; 02 (5) executive orders and administrative orders issued by the governor; 03 (6) written delegations of authority made by the governor or the head 04 of a principal department under AS 44.17.010; 05 (7) the text or a summary of the text of a regulation or order of repeal 06 of a regulation for which notice is given under AS 44.62.190(a), including an 07 emergency regulation or repeal regardless of whether it has taken effect; 08 (8) notices required by AS 44.62.245(b) regarding an amended version 09 of a document or other material incorporated by reference in a regulation; 10 (9) a summary of the text of recently issued formal opinions and 11 memoranda of advice of the attorney general; 12 (10) a list of vacancies on boards, commissions, and other bodies 13 whose members are appointed by the governor; and 14 (11) in accordance with AS 39.52.240(h), advisory opinions of the 15 attorney general. 16 * Sec. 11. AS 43.40.010(f), 43.40.010(g), and 43.40.010(j) are repealed. 17 * Sec. 12. The uncodified law of the State of Alaska is amended by adding a new section to 18 read: 19 TRANSITION. Notwithstanding AS 37.14.850 - 37.14.899, as enacted by sec. 4 of 20 this Act, the commissioner of revenue shall calculate average transportation infrastructure 21 fund values for purposes of AS 37.14.860(a)(1) in the years 2012 through 2016 as follows: 22 (1) the commissioner of revenue shall prepare a report to the legislature on or 23 before October 1, 2011, identifying that amount defined as six percent of the market value of 24 the transportation infrastructure fund, excluding the money deposited into the fund in the 25 previous fiscal year from motor fuel taxes and vehicle registration fees, on July 1, 2011; the 26 amount is available for appropriation during the First Regular Session of the Twenty-Seventh 27 Alaska State Legislature under AS 37.14.860(b), enacted by sec. 4 of this Act; 28 (2) for average transportation infrastructure fund value calculations for 2012 29 through 2015, on or before October 1, 2012, and on or before October 1 in subsequent years 30 through October 2015, the commissioner of revenue shall prepare a report to the legislature 31 that identifies that amount defined as six percent of the average of the market values of the

01 assets of the transportation infrastructure fund, excluding the money deposited into the fund in 02 the previous fiscal year from motor fuel taxes and vehicle registration fees, on July 1, 2011, 03 and on June 30 of each subsequent year, as identified in the reports required by this 04 paragraph; the amounts are available for appropriation during the respective regular sessions 05 of the Alaska State Legislature under AS 37.14.860(b), enacted by sec. 4 of this Act. 06 * Sec. 13. The uncodified law of the State of Alaska is amended by adding a new section to 07 read: 08 INITIAL APPOINTMENTS AND TERMS. Notwithstanding AS 37.14.890(a), as 09 enacted by sec. 4 of this Act, the terms of the first public members of the Transportation 10 Infrastructure Fund Advisory Council appointed by the governor under AS 37.14.890(a)(5), 11 as enacted by sec. 4 of this Act, are as follows: (1) one member shall be appointed for a four- 12 year term; (2) one member shall be appointed for a three-year term; (3) one member shall be 13 appointed for a two-year term; and (4) one member shall be appointed for a one-year term. 14 The governor shall specify the term of office of each member appointed subject to this 15 section. 16 * Sec. 14. The uncodified law of the State of Alaska is amended by adding a new section to 17 read: 18 SEVERABILITY. Under AS 01.10.030, if AS 37.14.890(a)(1) or 37.14.890(a)(2), 19 enacted by sec. 4 of this Act, or the application of them to any person or circumstance is held 20 invalid, the remainder of the provisions of that section and their application to other persons 21 or circumstance is not affected. 22 * Sec. 15. The uncodified law of the State of Alaska is amended by adding a new section to 23 read: 24 CONTINGENCY. Except as to AS 44.42.020(a)(16), enacted by sec. 9 of this Act, the 25 provisions of this Act take effect only if an amendment to the Constitution of the State of 26 Alaska establishing the transportation infrastructure fund as a dedicated fund is approved by 27 the voters before July 1, 2011. 28 * Sec. 16. AS 44.42.020(a)(16), enacted by sec. 9 of this Act, takes effect immediately 29 under AS 01.10.070(c). 30 * Sec. 17. If, under sec. 15 of this Act, AS 44.42.020(a)(17), enacted by sec. 9 of this Act, 31 takes effect, it takes effect on the day following the date of certification of the results of the

01 2010 general election. 02 * Sec. 18. Except as provided in secs. 16 and 17 of this Act, if this Act takes effect under 03 sec. 15 of this Act, it takes effect July 1, 2011.