Arkansas 2023 Regular Session

Arkansas House Bill HB1031 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		Stricken language would be deleted from and underlined language would be added to present law.
2		-	Act 127 of the Regular Session
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5	4		State of Arkansas As Engrossed: H1/31/23 1
6	5		94th General Assembly A Bill 2
7	6		Regular Session, 2023 HOUSE BILL 1031 3
8	7		4
9	8		By: Representative L. Fite 5
10	9		By: Senator K. Hammer 6
11	10		7
12	11		For An Act To Be Entitled 8
13	12		AN ACT TO AMEND THE ARKANSAS HIGHWAY REV ENUE 9
14	13		DISTRIBUTION LAW CON CERNING DISTRIBUTION S TO COUNTY 10
15	14		AID FUNDS AND MUNICI PAL AID FUNDS; AND F OR OTHER 11
16	15		PURPOSES. 12
17	16		13
18	17		14
19	18		Subtitle 15
20	19		TO AMEND THE ARKANSAS HIGHWAY REVENUE 16
21	20		DISTRIBUTION LAW CONCERNING DISTRIBUTIONS 17
22	21		TO COUNTY AID FUNDS AND MUNICIPAL AID 18
23	22		FUNDS. 19
24	23		20
25	24		21
26	25		BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 22
27	26		23
28	27		SECTION 1. Arkansas Code § 27 -70-207(b) and (c), concerning 24
29	28		distributions to county and city funds, are amended to read as follows: 25
30	29		(b)(1)(A) With the exception of those revenues transferred pursuant to 26
31	30		Section 2 of the Highway Improvement Revenue Act of 2007, all All highway 27
32	31		revenues transferred to the County Aid Fund under this subchapter shall be 28
33	32		paid over by the Treasurer of State to the treasurers of the respective 29
34	33		counties of this state for credit to the county highway fund, there to be 30
35	34		used for transportation projects as deemed beneficial by the county to 31
36	35		include without limitation: 32
37	36		(i) The maintenance, construction, and 33
38	37		reconstruction of roads and bridges in the county highway system and for 34
39	38		other surface transportation; 35
40	39		(ii) Public transportation; or 36 As Engrossed: H1/31/23 HB1031
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45	44		(iii) Any other transportation system improvement or 1
46	45		service within the political subdivision, including without limitation those 2
47	46		projects defined as a transportation system under § 27 -76-103 regardless of 3
48	47		whether or not the political subdivision is a member of a regional mobility 4
49	48		authority. 5
50	49		(B) A county may also use these funds to construct and 6
51	50		maintain parking for county courthouses, county administration buildings, 7
52	51		county health units, and county parks and to construct and maint ain sidewalks 8
53	52		that serve county courthouses, county administration buildings, county health 9
54	53		units, county parks, public schools, and other publicly owned property. 10
55	54		(C) A county may use these funds to pay for local projects 11
56	55		eligible for funding under st ate programs of the Arkansas Department of 12
57	56		Transportation and the State Highway Commission and under federal programs of 13
58	57		the Federal Highway Administration and the Federal Transit Administration. 14
59	58		(D) Furthermore, the funds may be used to install and 15
60	59		maintain traffic signals where needed to preserve public health, safety, and 16
61	60		welfare. 17
62	61		(E) A county may provide these funds to a regional 18
63	62		mobility authority to match federal transportation funds for the financing of 19
64	63		surface transportation system improveme nts on state highways, county roads, 20
65	64		and city streets. 21
66	65		(2)(A) Funds disbursed to the County Aid Fund pursuant to 22
67	66		Section 2 of the Highway Improvement Revenue Act of 2007 may be expended by 23
68	67		the counties on any legitimate county purpose and are not limite d to the uses 24
69	68		set forth in subdivision (b)(1) of this section. 25
70	69		(B) Funds disbursed to the County Aid Fund pursuant to 26
71	70		Section 2 of the Highway Improvement Revenue Act of 2007 shall be distributed 27
72	71		to the various counties as are other funds contained in the County Aid Fund 28
73	72		pursuant to subdivision (b)(3) of this section. 29
74	73		(3)(2) The Treasurer of State shall on or before the tenth day 30
75	74		next following the last day of each calendar month make distribution of the 31
76	75		revenues on the following basis: 32
77	76		(A) Thirty-one percent (31%) of the amount according to 33
78	77		area, with each county to receive the proportion that its area bears to the 34
79	78		area of the state; 35
80	79		(B) Seventeen and one -half percent (17.5%) of the amount 36 As Engrossed: H1/31/23 HB1031
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85	84		according to the amount of state motor vehicle licens e fees collected in the 1
86	85		calendar year next preceding any distribution as certified to the Treasurer 2
87	86		of State by the Secretary of the Department of Finance and Administration, 3
88	87		with each county to receive the proportion that the total of fees collected 4
89	88		from the county bears to the total of fees collected in the state; 5
90	89		(C) Seventeen and one -half percent (17.5%) of the amount 6
91	90		according to population based upon the most recent federal decennial census, 7
92	91		with each county to receive the proportion that its popu lation bears to the 8
93	92		population of the state; 9
94	93		(D) Thirteen and one -half percent (13.5%) of the amount 10
95	94		according to rural population based upon the most recent federal decennial 11
96	95		census, with each county to receive the proportion that its rural population 12
97	96		bears to the rural population of the state; and 13
98	97		(E) Twenty and one-half percent (20.5%) of the amount 14
99	98		shall be divided equally among the seventy -five (75) counties. 15
100	99		(c)(1)(A) With the exception of those revenues transferred pursuant to 16
101	100		Section 2 of the Highway Improvement Revenue Act of 2007, all All highway 17
102	101		revenues transferred to the Municipal Aid Fund under this subchapter shall be 18
103	102		paid over by the Treasurer of State by direct deposit to the treasurers of 19
104	103		the respective cities of the first class, cities of the second class, and 20
105	104		incorporated towns f or credit to the street fund, there to be used for 21
106	105		transportation projects as deemed beneficial by the governing body of the 22
107	106		political subdivision to include without limitation: 23
108	107		(i) The maintenance, construction, and 24
109	108		reconstruction of streets that are not continuations of state highways and 25
110	109		for other surface transportation; 26
111	110		(ii) Public transportation; or 27
112	111		(iii) Any other transportation system improvement or 28
113	112		service within the political subdivision, including without limitation those 29
114	113		projects defined as a transportation system under § 27 -76-103, regardless of 30
115	114		whether or not the political subdivision is a member of a regional mobility 31
116	115		authority. 32
117	116		(B) A city may provide these funds to a regional mobility 33
118	117		authority to match federal transportation funds for the financing of surface 34
119	118		transportation system improvements on state highways, county roads, and city 35
120	119		streets. 36 As Engrossed: H1/31/23 HB1031
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125	124		(C) A city may use these funds to construct and maintain 1
126	125		parking for city administration buildings, city recreation buildings, and 2
127	126		city parks, and to construct and maintain sidewalks that serve city 3
128	127		administration buildings, city recreational buildings, city -owned parking 4
129	128		lots, city-owned parking decks, and city parks. 5
130	129		(2)(A) The Treasurer of State shall on or before the tenth day 6
131	130		next following the last day of each calendar month make distribution of the 7
132	131		funds on the basis of population according to the most recent federal census, 8
133	132		with the amount to be paid over to each city or incorporated town in the 9
134	133		proportion that its population bears to the total population of all cities 10
135	134		and towns. 11
136	135		(B) If a municipality incorporates during a year in which 12
137	136		a federal decennial census is conducted, then for purposes of this section 13
138	137		and until data from a federal decennial or spec ial census is made available 14
139	138		to the municipality, the population of the municipality shall be based on the 15
140	139		most recent federal decennial census as calculated by the Arkansas Geographic 16
141	140		Information Systems Office. 17
142	141		(3)(A)(i) As used in this subdivision (c )(3), "general revenue" 18
143	142		means any revenue deposited into a general fund account that is not: 19
144	143		(a) Restricted by the source of that revenue; 20
145	144		or 21
146	145		(b) Transferred from another municipal fund 22
147	146		account. 23
148	147		(ii) Beginning on July 28, 2021, if a cit y or 24
149	148		incorporated town has spent funds credited to the street fund in a manner 25
150	149		inconsistent with the purposes required by subdivision (c)(1) of this 26
151	150		section, the city or incorporated town shall repay the funds that were not 27
152	151		used in accordance with subdivis ion (c)(1) of this section to the street fund 28
153	152		from the city's or incorporated town's general revenue by the end of the 29
154	153		following fiscal year. 30
155	154		(B) A city or incorporated town is not eligible to receive 31
156	155		highway revenues under subdivision (c)(1) of this s ection until the city or 32
157	156		incorporated town: 33
158	157		(i) Repays the entirety of the funds owed to the 34
159	158		street fund, including any funds owed prior to July 28, 2021, as required 35
160	159		under subdivision (c)(3)(A) of this section; or 36 As Engrossed: H1/31/23 HB1031
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165	164		(ii) Passes an ordinance or a r esolution committing 1
166	165		to pay and pays ten percent (10%) of the city's or incorporated town's 2
167	166		general revenue to the street fund each year until the funds owed are repaid. 3
168	167		(C) However, if a city or incorporated town is unable to 4
169	168		repay the funds owed as r equired by subdivision (c)(3)(B) of this section, 5
170	169		the city or incorporated town may request the approval of the Legislative 6
171	170		Joint Auditing Committee to pass an ordinance or resolution committing to pay 7
172	171		a percentage less than ten percent (10%) of the city's or incorporated town's 8
173	172		general revenue to the street fund each year until the funds owed are repaid. 9
174	173		(4)(A) If the Legislative Joint Auditing Committee is presented 10
175	174		with a finding that a city or incorporated town spent funds credited to the 11
176	175		street fund in a manner inconsistent with the purposes specified in 12
177	176		subdivision (c)(1) of this section or that the city or incorporated town 13
178	177		failed to make a repayment owed under subdivision (c)(3)(B)(ii) or 14
179	178		subdivision (c)(3)(C) of this section, the Legislative Join t Auditing 15
180	179		Committee may provide notice of the finding to the: 16
181	180		(i) Treasurer of State; and 17
182	181		(ii) The city's or incorporated town's officials or 18
183	182		employees authorized to prevent or correct the inconsistent spending. 19
184	183		(B) Upon notice of a finding from the Legislative Joint 20
185	184		Auditing Committee under subdivision (c)(4)(A) of this section, the Treasurer 21
186	185		of State shall: 22
187	186		(i) Confirm with Arkansas Legislative Audit within 23
188	187		thirty (30) days of being notified by the Legislative Joint Auditing 24
189	188		Committee that a city or incorporated town spent funds credited to the street 25
190	189		fund in a manner inconsistent with the purposes required by subdivision 26
191	190		(c)(1) of this section or failed to make a repayment owed under subdivision 27
192	191		(c)(3)(B)(ii) or subdivision (c)(3)(C) o f this section; and 28
193	192		(ii) Withhold highway revenues under subdivision 29
194	193		(c)(1) of this section until the entirety of the funds owed are repaid by the 30
195	194		city or incorporated town to the street fund. 31
196	195		(5)(A) Funds disbursed to the Municipal Aid Fund pursua nt to 32
197	196		Section 2 of the Highway Improvement Revenue Act of 2007 may be expended by 33
198	197		the cities on any legitimate municipal purpose and are not limited to the 34
199	198		uses set forth in subdivision (c)(1) of this section. 35
200	199		(B) Funds disbursed to the Municipal Aid F und pursuant to 36 As Engrossed: H1/31/23 HB1031
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205	204		Section 2 of the Highway Improvement Revenue Act of 2007 shall be distributed 1
206	205		to the various cities as are other funds contained in the Municipal Aid Fund 2
207	206		pursuant to subdivision (c)(2) of this section. 3
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209	208		/s/L. Fite 5
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