AR HB1031

Removes exception for revenues from Section 2 of the Highway Improvement Revenue Act of 2007, making all highway revenues to County Aid Fund and Municipal Aid Fund subject to the same use restrictions and distribution formulas.

Allows counties to use highway aid funds for maintenance and construction of roads, bridges, public transportation, parking at county buildings and parks, sidewalks, traffic signals, and projects eligible under state and federal transportation programs.

Allows cities to use highway aid funds for maintenance and construction of streets, public transportation, parking at city buildings and parks, and sidewalks, with ability to provide funds to regional mobility authorities.

Establishes repayment requirements for cities that spent street fund revenues inconsistently with required purposes: cities must repay funds from general revenue by end of following fiscal year or commit to paying 10% of general revenue annually until repaid, with approval for lower percentages from Legislative Joint Auditing Committee.

Authorizes Treasurer of State to withhold future highway revenues from cities that fail to repay owed amounts or make required repayment commitments, upon confirmation from Arkansas Legislative Audit and notice from Legislative Joint Auditing Committee.