HB1779 Summary

• Amends Arkansas Code § 27-70-204 to require the State Treasurer to compute and transfer monthly interest earned on State Highway and Transportation Department funds to the Highway Fund at the average rate of interest earned on all State Treasury funds invested.

• Creates a Division of State Aid Road-Street Construction within the Arkansas State Highway and Transportation Department headed by a state aid engineer appointed by the State Highway Commission.

• Establishes the State Aid Street Fund to receive revenues from the State Highway Special Construction Account, transferring up to $21,000,000 annually until fiscal year 2014, then with no cap thereafter; municipalities with over 25,000 residents must match at 90% state/10% local, while smaller municipalities receive 100% state funding.

• Creates a 9-member State Aid Street Committee (3 mayors appointed by Governor, 3 by House Speaker, 3 by Senate President Pro Tempore) to select street projects for state funding and construction.

• Requires municipalities to maintain designated state aid streets or face denial of future funding; allows the state engineer to perform necessary maintenance and charge costs to the municipality's allocated funds.

• Becomes effective July 1, 2011, as an emergency measure to address street disrepair in Arkansas municipalities.