Bill > H3167

This bill amends existing law to further regulate how funds from the Highway Fund, which is a state fund used for transportation projects, can be spent by municipalities. Specifically, it clarifies that these funds can be used for maintaining, repairing, improving, and constructing municipal roads and bridges, as well as sidewalks, bikeways, and projects eligible under the Intermodal Surface Transportation Efficiency Act of 1991 (a federal law that provided funding for transportation improvements). The bill also allows for the use of funds for salt storage sheds, public parking facilities related to mass transit, and engineering services for transportation projects, with a requirement that such engineering services be performed by prequalified firms unless a waiver is granted by the department. A significant provision is that at least 90 percent of the funds allocated to each municipality must be used for maintaining, repairing, improving, and constructing municipal ways and bridges, and bikeways, along with design and engineering expenses, while the remaining 10 percent can be used for these purposes or other eligible uses. Municipalities with fewer than 10,000 residents can petition for a waiver of this percentage limitation. The bill also mandates that municipalities must submit plans for how these funds will be used by April 15th each year and reports on how they were spent by December 15th each year, and the department will notify municipalities of their allocated funds by April 1st annually. Importantly, no revenue from the Transportation Fund can be transferred to other funds except for specific fringe benefit costs. Finally, the department can withhold funds if a municipality fails to comply with traffic control standards or agreements.