Establishing a local road improvement fund for appropriation to the commissioner of transportation (DOT) and a trunk highway corridor projects account in the fund for grants or loans to cities, counties and towns to assist in paying the local share of certain trunk highway projects, requiring the commissioner to determine the amount of the local share eligible for assistance and to establish an advisory committee to provide recommendations relating to expenditures from the account, specifying certain committee membership requirements; establishing a local road account for routes of regional significance in the local road improvement fund for grants or loans to cities, counties and towns to assist in paying the costs of constructing or reconstructing city streets, county highways or town roads with statewide or regional significance, requiring the commissioner to establish grant or loan application procedures and criteria to be used to select projects for funding, specifying certain consultation requirements and certain consideration factors; providing for the payment of administrative costs from the fund; requiring the commissioner of finance to transfer a certain amount of money from the bond proceeds fund to the local road improvement fund and to issue state bonds to fund the transfer (mk)