HF1550 Bill Summary

• Transfers annual interest and investment income from the general fund to municipal road funding, starting July 1, 2017, with the amount equal to the lesser of total interest accrued or positive unrestricted general fund balance.

• Allocates the first $50,000,000 in municipal road funds 50/50 between larger cities and small cities assistance accounts, with amounts exceeding $50,000,000 directed entirely to small cities assistance.

• Creates a larger cities assistance account and distributes funds based on each city's proportional share of total municipal road money needs as determined by the commissioner.

• Imposes a $2 late fee for vehicle title transfer failures and 4 percent of motor vehicle lease sales tax revenue toward municipal road funding through the new distribution mechanism.

• Allows cities to maintain multi-year fund balances for specific road projects and exempts municipal road funds from certain state-aid requirements except for projects on state-aid streets or highways.