1. Distribution and use of funds. Funds from the Local Road Assistance Program must be distributed to each eligible municipality, county or Indian reservation through rural road assistance and urban compact assistance funding as follows. A. Rural road assistance funds must be distributed as follows. (1) Funds are distributed at a rate of $600 per year per lane mile for all rural state aid roads and all public roads maintained by a municipality located outside urban compact areas as defined in section 754, except that funds are distributed at a rate of $300 per year per lane mile for all seasonal public roads. (2) Funds must be used for maintenance or for capital improvements of roadway infrastructure, bridges and drainage structures. [PL 2025, c. 66, §5 (AMD).] B. Urban compact assistance funds must be distributed as follows. (1) Funds are distributed at a rate of $2,500 per year per lane mile for summer maintenance performed by municipalities on state and state aid highways in compact areas as defined in section 754. For each lane mile beyond the 2nd lane on a highway with more than 2 lanes, funds are reimbursed at a rate of $1,250 per lane mile for summer maintenance in compact areas. Funds are distributed at a rate of $1,700 per year per lane mile for winter maintenance performed by municipalities on state highways in compact areas as defined in sections 754 and 1001 regardless of the number of lanes. Funds are distributed at a rate of $600 per year per lane mile for all other public roads maintained by a municipality and located inside a compact area, except that funds are distributed at a rate of $300 per year per lane mile for all seasonal public roads. (2) Funds must be used only for the maintenance or for capital improvement of public roads infrastructure, bridges and drainage structures. [PL 2025, c. 66, §5 (AMD).] C. [PL 2013, c. 354, Pt. I, §1 (RP); PL 2013, c. 354, Pt. I, §4 (AFF).] D. The annual funding dedicated for the Local Road Assistance Program must be 9% of the Highway Fund allocation to the Department of Transportation for general construction and maintenance of highways and bridges. Annually, by July 1st, the Commissioner of Transportation shall administratively adjust the base funding and the reimbursement rates per lane mile proportionately according to revenue available. [PL 2025, c. 9, Pt. B, §1 (AMD).] [PL 2025, c. 66, §5 (AMD).] 2. Retention of allocation for Local Road Assistance Program. Prior to apportioning funds to each municipality, the Department of Transportation shall retain sufficient funds from the allocation for the Local Road Assistance Program to ensure equitable funds are provided for roads in unorganized areas and for administration. [PL 2011, c. 652, §6 (AMD); PL 2011, c. 652, §14 (AFF).] 3. Payment of funds. The funds apportioned to each municipality must be paid by the State to the municipality before December 1st each year. [PL 2013, c. 354, Pt. I, §3 (AMD); PL 2013, c. 354, Pt. I, §4 (AFF).] 4. Limitations. [PL 1999, c. 473, Pt. D, §4 (RP).] 5. State aid minor collector capital projects. [PL 2011, c. 652, §6 (RP); PL 2011, c. 652, §14 (AFF).] 6. Municipal, county or Indian reservation administration. [PL 2011, c. 652, §6 (RP); PL 2011, c. 652, §14 (AFF).]
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