BIC MATTERS: Urge Your Legislators and Gov. Holcomb to Support Road Funding Bill

TO: BIC Grassroots Network
FROM: Vicki Kitchin, Executive Director
DATE: April 11, 2017

BIC MATTERS: Urge Your Legislators and Governor Holcomb to Support Road Funding Bill

Within the next eleven days legislators from the House and Senate, along with Governor Eric Holcomb will need to hash out a long-term plan for additional road funding. This is a once in a generation opportunity to get it right and we believe they can do it. Yesterday’s conference committee hearing on HB 1002 provided a perfect launching point for these negotiations (see below for hearing recap).

What can you do to help? Within these next few days, make a point to reach out to your legislators. If you have a contact with Governor Holcomb or his staff, reach out there also. Your message is simple: Support long-term, dedicated, stable and adequate funding so that INDOT and local governments can provide the transportation system required to take Indiana to the next level. BIC supports the funding levels in the House-passed version of HB 1002 which would generate about $1.1 billion annually in new funding when fully implemented.

Please report to BIC any feedback you get from your legislators or the Governor’s office. It’s very important that we get a read on what legislators are telling constituents. After a deal is reached, both the House and Senate will need to vote on the agreement. You can reach BIC at (317) 439-2108.

Recap of April 10 Conference Committee Hearing
Thanks to all who attended the joint House-Senate Conference Committee meeting on HB 1002. We accomplished our goal of filling the House Chamber with road funding supporters. BIC members came from many corners of the state. We appreciate your time and effort.

Testimony
Representative Ed Soliday (R-Valparaiso) chaired the meeting. He urged testifiers to limit remarks to three minutes each. Even with that guideline, the committee listened to over two hours of testimony mostly from supporters urging conferees to pass the higher funding levels contained in the House version of HB 1002.

INDOT Commissioner Joe McGuinness led testimony telling the committee that INDOT’s needs haven’t changed since he first testified earlier in session. He said INDOT’s needs have likely increased since January given the freeze/thaw cycles we’ve experienced this spring. He said INDOT needs additional funding just to preserve and maintain the existing system and the need grows from there when adding in capital projects designed for increased mobility. Chairman Soliday asked McGuinness to explain why Indiana needs to conduct a tolling study. McGuinness said there are many questions about tolling such as: what are the federal requirements; what could the state expect in revenue projections from tolls; on which interstates would tolling work best; and what are the costs of building out the system.

Several representatives from local government talked about their preference for the funding levels in the House version of HB 1002 and their grave concerns about the funding formula changes in the Senate version.

Bob McCullouch, Ph.D., P.E., Program Manager of Purdue LTAP, described the information his group analyzed from the local asset management plans submitted last year as part of the Community Crossings Grant program. He talked about local road and bridge condition ratings and the funding that would be required to maintain the system. The data is summarized in Purdue LTAP publication “12-2016 Indiana Local Road and Bridge Conditions.”

Others testifying in support included representatives from the logistics industry, mayors, state and local chambers of commerce, truckers, organized labor, engineers, commissioners, county government, farmers and Build Indiana Council. One anti-tax advocate testified in opposition, an oil company owner expressed concern with fuel pricing compared to neighboring states and one business expressed concern about increased truck registration fees.

Committee Discussion
When testimony concluded, Chairman Soliday urged committee discussion. Senator Luke Kenley (R-Noblesville) commented that it had been a good hearing. He said the Senate tried to explore new ways to provide road funding. He emphasized that tolling will be necessary to provide future revenue. He said that the legislature has never before tried to raise this level of revenue for any purpose and that they have to do it this year. He thanked Chairman Soliday for leading the charge.

Senator Karen Tallian (D-Portage) said the Senate version of HB 1002 does not provide enough funding for local roads. She is concerned about increased truck fees and if the sales tax on gas is moved from the general fund to road accounts it has to be replaced by something. She agreed the state needs to look at tolling to capture revenue from out-of-state traffic.

Chairman Soliday recessed the meeting and said conferees would continue meeting to discuss issues and reach a final agreement before the end of the legislative session (likely to be Friday, April 21).

BIC MATTERS: Senate Passes Road Funding Bill

TO: BIC Grassroots Network
FROM: Vicki Kitchin, Executive Director
DATE: April 5, 2017

BIC MATTERS: Senate Passes Road Funding Bill

Late yesterday afternoon on a vote of 34-13, the Indiana Senate passed its version of HB 1002. The strong vote for passage in the Senate underscores Senate leadership’s resolve to pass a comprehensive road funding bill this session. During the floor debate, several senators testified in support of the bill including Senate President Pro Tempore David Long, Appropriations Committee Chairman Luke Kenley, Tax and Fiscal Policy Committee Chairman Brandt Hershman and Transportation Committee Chairman and bill sponsor Mike Crider.

The Senate passed HB 1002 in the same form as passed by the Tax and Fiscal Policy Committee last week. As a reminder, the bill now includes the following revenue provisions:

  • Ten cent gas tax increase phased in over two years;
  • Six cent diesel tax increase phased in over two years;
  • Ten cent diesel surcharge increase phased in over two years and moved to pump;
  • Increase in vehicle registration fee of $15 per year;
  • 50% increase in commercial vehicle registration fees and International Registration Plan registration fees;
  • Increases fee on new tire sales by $5 per tire;
  • Annual $75 fee for hybrid vehicles;
  • Allows the Governor through Indiana Finance Authority and INDOT to pursue tolling.

We now have a comparison of the new revenue raised by the House and Senate versions of HB 1002. By 2021 the House-passed bill would result in $1.13 billion in annual new funding, with $748 million going to INDOT and $382 million going to locals. The Senate-passed version would result in $766 million in annual new funding with $610 million going to INDOT and $156 million to locals.

NEXT STEP: The House can now concur or dissent on the Senate version of HB 1002. We expect the House will dissent. This action will result in a conference committee established to negotiate a final version of the bill. For the most part, these negotiations will take place in private meetings between House and Senate leadership and the Governor.

BIC applauds the Indiana Senate for passing HB 1002. While it falls short of the funding in the House version, this action by the Senate keeps the discussion alive and allows for the opportunity to reach an agreement on a final bill.

ACTION REQUESTED: We ask that BIC members take the time to thank Senators who voted in favor of HB 1002. Keep in mind that this was a difficult vote for many Senators. Thank them for their vote and remind them of the $1.2 billion per year need for INDOT and the $775 million per year need for locals. Ask them to support conference committee negotiations that move closer to filling this need for state and local road and bridge improvements.

Legislative leaders are planning to adjourn the session on April 21. Between now and then legislators will be negotiating several issues including the road funding package, the overall state budget and many others. So, stay tuned and keep up your contacts with your House and Senate members. Remember, for a final road funding package to be approved, they will all need to cast another vote.

Call BIC with questions or with any feedback you get from legislators.

Road Work Safety Partners Kicking Off Construction Season With Work Zone Awareness Week Event

Source: Indiana Department of Transportation

You are invited to join the Indiana Department of Transportation (INDOT) along with highway construction, utility industry and public safety partners on Tuesday, April 4 at 11 a.m. to mark the ceremonial start to highway construction season. Help us promote safe driving behaviors near work zones and raise awareness about Indiana’s Move-Over Laws as part of Work Zone Awareness Week.

WHO: INDOT and a large assembly of highway construction, utility industry and public safety partners, including:

  • INDOT Commissioner Joe McGuinness,
  • Indiana State Police Superintendent Doug Carter,
  • Indiana Dept. of Labor Commissioner Rick Ruble,
  • Indiana Constructors Inc. President Richard Hedgecock,
  • American Traffic Safety Services Association – Indiana Chapter,
  • Road Construction Awareness Corporation

WHERE: INDOT Traffic Management Center and Indiana State Police Post 52 (8620 East 21st Street, Indianapolis, IN. 46219)

WHEN: Tuesday, April 4 at 11 a.m. until noon. Please arrive early.

WHY: This year’s National Work Zone Awareness Week theme is “Work Zone Safety Is In Your Hands.” We intend to raise motorists’ awareness about the personal responsibility for making safe choices and the consequences of dangerous driving behaviors near highway work zones. Our goal is to improve safety, reduce crashes and injuries, and bring the number of fatalities to zero. Safety requires participation from everyone, especially drivers, to make all highway work zones as safe as possible. We are all in this together.

For more information about Indiana’s Move-Over Laws, go to http://www.in.gov/isp/2890.htm.

Please share this invitation. Safety is the top priority of INDOT and its partners, and we need as much support as we can gather to make this construction season a success. Hardhats and safety vests or orange clothing are strongly encouraged.

Stay informed
Follow @INDOTEast on Twitter and INDOT East Central on Facebook. Find links to all INDOT social media pages at http://bit.ly/INDOTsocial.

Subscribe to receive text and email alerts about INDOT projects and services at http://bit.ly/INDOTsubscription.

Motorists can learn about highway work zones and other traffic alerts at indot.carsprogram.org, 1-800-261-ROAD (7623) or 511 from a mobile phone.

BIC Matters: Senate Committee Passes Road Funding Bill

TO: BIC Grassroots Network
FROM: Vicki Kitchin, Executive Director
DATE: March 28, 2017

SUBJECT: Senate Committee Passes Road Funding Bill

This morning the Senate Tax and Fiscal Policy Committee, chaired by Senator Brandt Hershman (R-Buck Creek) significantly amended HB 1002 before passing it on a vote of 11-2. All Republicans in attendance voted in favor as did two Democrats (Senators Randolph and Tallian).

The official fiscal impact statement is not yet available. However, BIC’s preliminary analysis estimates the amended bill would result in about $670 million annually in new funds for Indiana road and bridge improvements. The amendment directs most of the new funds to INDOT with approximately $90 million per year going to locals through a grant program. Other than this local grant program, locals are held to 2017 levels plus inflation going forward. Senator Luke Kenley (R-Noblesville) said that the committee believes that this amount satisfactorily addresses the local need when factoring in locals’ ability to raise their own revenue.

The amended bill includes the following new revenue provisions:

  • Ten cent gas tax increase phased in over two years;
  • Six cent diesel tax increase phased in over two years;
  • Ten cent diesel surcharge increase phased in over two years and moved to pump;
  • New vehicle registration fee of $15 per year;
  • 50% increase in commercial vehicle registration fees and International Registration Plan registration fees;
  • New $5 per tire fee;
  • New $75 fee for hybrid vehicles;
  • Allows the Governor through Indiana Finance Authority and INDOT to pursue tolling.

Chairman Hershman and Senator Kenley noted that the sales tax on gasoline, which the House had moved to the highway accounts, will be considered as part of the Senate’s budget bill. That discussion will take place later this week in the Senate Appropriations Committee.

BOTTOM LINE: BIC applauds the Senate Tax and Fiscal Policy Committee for passing amended HB 1002. While the bill does not increase road funding as much as the House version did, and while it does not provide adequate funds for local roads and bridges, it does provide the opportunity for the Senate, House and Governor to reach agreement on a long-term road funding package. Those negotiations in these next four weeks of session will lead to further modifications of this bill.

If you have a member on the Senate Tax and Fiscal Policy Committee, please thank your Senator for moving the bill forward.

Next steps: HB 1002 could be eligible for further amendment on the Senate floor as soon as this Thursday, and a vote by the full Senate could come next week, although we can’t be certain it will move that fast. In fact, much will hinge on the Senate version of the budget (HB 1001) which the Appropriations Committee will consider this Thursday.

Stay tuned for more information and call if you have any questions.

ICI Legislative Committee – It’s Halftime

We have reached halftime in the 2017 state legislative session. Coach ICI’s halftime speech to senators, considering the transportation funding bill passed through the house last week, would include:

  • Encouragement to not lose focus on our state transportation funding goal of sustainable long-term funding;
  • Don’t react to “shot fakes” – keep both feet on the ground to defend against attacks on this session’s road funding focus, and finally;
  • Work as team. If everyone does their job, Indiana will soon have streets, highways, and interstates worthy of our state motto: The Crossroads of America.

Back to reality, ICI staff and members met with representatives from APPIAN, 1816, Inc. and Build Indiana Council to discuss the first half of the 2017 legislative session and the initiatives moving down the home stretch. The consensus is that the first half of this session has been low key. High profile contentious social issues are not leading the agenda as in previous sessions. Transportation funding has been the talk of the Statehouse halls. The House passed its transportation funding bill, HB 1002, last week, and it’s now in the hands of the Senate where the Tax and Fiscal Policy Committee chaired by Senator Brandt Hershman (R-Buck Creek) will consider it. Currently HB 1002 includes a combination of funding mechanisms including a fuel tax increase, indexing of all fuel tax rates, transfer of $0.045 of the gasoline sales tax to the State Highway Fund, a $15 annual automobile registration fee and a $150 fee for all electric vehicles.

In addition to HB 1002, there are several non-funding bills we are actively working on or tracking. HB 1018 addresses vehicles that haul aggregate. The bill states that the vehicle, loaded or unloaded, shall be free from any openings that would allow material to escape. ICI is not in favor of this bill. It appears to target aggregate haulers and would allow law enforcement to stop trucks upon suspicion that material has fallen from any part of a vehicle.

Two other bills, HB 1447 and SB 295 address the points on CDL licenses that were assessed in 2016 due to a spring 2016 revision to the Bureau of Motor Vehicles points table. ICI supports the aim of the bills. They would provide relief for truck drivers that have been cited for driving an overweight truck without having full control over the material loaded in it. ICI staff and our lobbying team will continue to communicate with key lawmakers associated with these bills.

Finally, it was noted that Representative Ed Soliday (R-Valparaiso) has included language in his motor vehicle law catch-all bill to include surveyors and construction vehicles in the current “move over, slow down” law.

Build Indiana Council is planning a second Road Funding Day on March 21. Please register and plan to go to the Statehouse on that day to support road funding and communicate with your legislators!

Congress Votes to Repeal Blacklisting Rule

Source: AGC of America

FOR IMMEDIATE RELEASE CONTACT:  Brian Turmail  (703) 459-0238; turmailb@agc.org

Monday, March 6, 2017

CONGRESSIONAL REPEAL OF BLACKLISTING RULE PROTECTS THE INTEGRITY AND FAIRNESS OF THE FEDERAL CONTRACTING PROCESS, CONSTRUCTION OFFICIAL SAYS

Congressional Review Act Measure Repealing the Obama Administration’s So-Called “Fair Pay and Safe Workplaces” Rule Protects Innocent Firms from Being Debarred by Unsubstantiated Allegations

The chief executive officer of the Associated General Contractors of America, Stephen E. Sandherr, issued the following statement in response to passage tonight of a Congressional Review Act measure repealing the Obama Administration’s so-called “Fair Pay and Safe Workplaces” rule:

“Congress has wisely voted to preserve the integrity and fairness of the federal contracting process by voting to repeal former President Obama’s blacklisting rule.  This measure, the so-called Fair Pay and Safety Workplaces rule, would have allowed government officials to debar, or blacklist, construction companies from bidding on federal projects based on the mere allegation of labor law violations without any due process.

“To be clear, there should be no place in federal contracting for unsafe or unscrupulous firms.  Yet the former President’s measure did nothing to reform or improve the existing suspension and debarment process.  Instead, it created a new layer of bureaucracy that would have given federal officials broad discretion to punish construction firms based on any number of unsubstantiated allegations without establishing a process for those firms to defend themselves.  That is why the Associated General Contractors worked so aggressively to push for passage of today’s repeal measure.

“We urge President Trump to sign this measure into law as quickly as possible.”

###