AR HB1009

Establishes the Highway Commission Review and Advisory Subcommittee of the Legislative Council with 20 members to review State Highway Commission rules regarding fund distribution criteria and highway construction spending priorities.

Creates the Arkansas Highway Transfer Fund as a special revenue fund to provide additional funding to the State Highway and Transportation Department for constructing and maintaining state highways, with transfers requiring Legislative Council or Joint Budget Committee approval.

Redirects 25% of remaining general revenues (after maximum annual allocations) to the Arkansas Highway Transfer Fund and transfers $1.5 million one-time in Fiscal Year 2017 and $20 million annually beginning Fiscal Year 2018 from the Securities Reserve Fund to the Highway Transfer Fund.

Renames the "Arkansas Rainy Day Fund" to "Long Term Reserve Fund" and modifies its distribution procedures while capping the fund balance at $125 million.

Declares an emergency regarding Arkansas bridge and road repair needs, making most provisions effective July 1, 2016, with selected financial provisions effective July 1, 2017; transfers $40 million from the General Improvement Fund to the Arkansas Highway Transfer Fund for highway construction and maintenance.