Tag: road funding

Transportation Funding Boosted in 2018 Funding Measure

Posted on by Andria Hine
Source: AGC of America Highway Facts Bulletin 03/23/3018

Transportation Funding Boosted in 2018 Funding Measure

President Signs After Veto Threat

Congress completed action this week on a funding bill for the remainder of fiscal year (FY) 2018 that avoids yet another government shutdown and includes $10 billion plus in additional infrastructure investment—compared to FY 2017.  President Trump signed the measure today after briefly threatening to veto the measure siting concerns about some of its provisions. The deal was set in motion three weeks ago when the Bipartisan Budget Act of 2018 was approved.

That compromise measure put in place a two year blueprint for government spending which promised $20 billion in additional infrastructure funding over that period. The bill signed today is the first half of the promised infrastructure investment. The compromise Omnibus FY 2018 appropriations legislation includes a significant increase in funding for highway, transit and aviation construction. The bill largely approves funding at FAST Act authorized levels from the Highway Trust Fund for the highway and transit programs and provides an additional $4.4 billion from the general fund for transportation programs.

The agreement includes transportation funding as follows:

  • Fully funds FAST Act authorized funding of $44.23 billion for the Federal-aid highway program, an increase of $900 million over FY 2017.
  • An additional $2.565 billion for federal-aid highway funding (from the general fund). The biggest portion of this amount, $1.98 billion will be distributed to states only for highway, bridge and tunnel projects under existing formula, $225 million goes to a new bridge program for rural states (almost half of the states qualify), $15.8 million for Puerto Rico highways, $4.2 million for other territories and $300 million for Federal and tribal lands.
  • $1.5 billion for TIGER Grant Program which was funded at $500 million in FY 2017.
  • Fully funds FAST Act authorized funding of $9.733 billion for mass transit formula grants, no increase from the FY 2017 level.
  • An additional $834 million from the general fund for transit formula grants.
  • Provides $2.645 billion in funding for transit new start capital grant program which funds ongoing transit projects with full funding grant agreements (FFGA). An additional $232 million is provided for FFGA for 5 new transit projects.
  • $4.35 billion for the Airport Improvement Program, an increase of $1 billion from FY 2017.
  • $25 million in additional funds for the Railroad Rehabilitation & Improvement Financing (RRIF) program for credit subsidies.
  • The bill does not include an increase in the Passenger Facility Charge (PFC) from the current cap of $4.50. The PFC, levied on airline tickets, is used for airport capital construction projects. The Senate appropriations bill had proposed an increase of $4.00 in the cap.

In other infrastructure funding the bill provides $6.83 billion for the Army Corps of Engineers for navigation and flood-control projects an increase of $789 million from FY 2017 appropriated level.

AGC called on thousands of its social media grassroots supporters to urge Congress to keep its $10 billion infrastructure investment promise.  AGC pushed for Congress to pass the bill; however, the association also noted the litany of critical construction issues that remain unresolved by this bill and Congress, including but not limited to the need for long-term infrastructure funding, border security and immigration reform, and multiemployer pension reform.

2017 Indiana Legislative Wrap-Up

Posted on by Dan Osborn

Executive Summary

  • The transportation industry and Indiana will benefit greatly with the passage of the Transportation Infrastructure Funding House Bill 1002. The bill adds to current funding in the amount of $617 million in fiscal year 2018 and escalates annually to $1.209 billion in 2024.
  • A local governmental unit and a land developer may agree to the partial release of a performance bond or other surety on a more frequent basis than an annual basis. (HB 1117)
  • The adoption or enforcement of an ordinance requiring a commercial motor vehicle to obtain a permit to operate within the jurisdiction of the local authority is prohibited. Language was included to direct local authorities to issue refunds of amounts paid by a commercial motor vehicle operator to obtain a permit to operate the commercial motor vehicle. (HB 1422)
  • A stinger-steered (rear hitch mount) vehicle may have a maximum length per two coupled vehicles of 80 feet replacing the current maximum of 75 feet. (HB 1422)
  • Upon approaching a stationary survey or construction vehicle, a person who drives an approaching vehicle shall yield the right-of-way and proceed with caution. (HB 1491)

The Details

FUNDING

HB 1002 Transportation Infrastructure Funding (SOLIDAY E)
The legislature was successful in passing a sustainable long term transportation infrastructure bill. The bill will result in additional funding of $617 million in FY 2018 growing each year to an additional $1.209 billion in FY 2024. Specific bill details are as follows:

  • Raises gas, diesel and motor carrier surcharge taxes by 10 cents each beginning in FY18 and indexes the taxes annually for seven years with a one cent per year cap.
  • Gradually shifts the sales tax on gas to the state highway fund by 2025 (but allows the Governor to hold back these funds for general fund purposes subject to review by the state budget committee).
  • Increases the International Registration Plan and BMV registration fees by 25% for trucks greater than 26,000 lbs.
  • Implements a $15 statewide transportation infrastructure fee for all vehicles less than 26,000 lbs.
  • Implements an annual electric vehicle fee of $150 and a hybrid fee of $50.
  • Eliminates the sales tax on special fuel.
  • Requires INDOT to study tolling and to apply for a federal tolling waiver; requires state budget committee review before INDOT could implement tolling.
  • Requires INDOT to develop metrics and prioritize projects using a data-driven model.
  • Moves the motor carrier surcharge tax to the pump and applies to all diesel buyers.
  • Continues the community crossing matching grant program for locals and modifies the match requirements as follows: counties over 50,000 population and cities/towns over 10,000 population will be at a 50/50 match; counties under 50,000 population and cities/towns under 10,000 population will be at a 75/25 match.
  • Allows INDOT to operate a federal funds exchange program with locals.
  • Extends local wheel tax/surtax adoption deadlines.
  • Restricts local uses of MVH funds to exclude paying for police and painting structures and requires that 50% of MVH funds be used for construction, reconstruction and maintenance.
  • Phases in changes to the MVH split from current 53% state/47% local to 60% state and 40% local beginning in FY18 and ending in FY23.
  • Allows the IFA to facilitate the completion of a P3 project in a situation where the P3 agreement has been terminated or the IFA has exercised its right to seek remedies.

SB 128 REGIONAL INFRASTRUCTURE IMPROVEMENT PROJECTS (MESSMER M)
Provides that the Indiana finance authority (IFA), rather than the budget agency, administers the local infrastructure revolving loan funds (loan funds). Expands the types of entities that may participate in the loan funds. Authorizes the IFA to issue its bonds to carry out the loan funds. Expands the types of infrastructure that are eligible for the loan funds to include bridges or other public ways. Provides that a regional development authority (RDA) may apply for a “FASTLANE” grant from the Federal Highway Administration (or a grant from any other federal program) for highway funding. Authorizes an RDA to enter into a supplemental funding agreement with the Indiana department of transportation or a political subdivision to contribute local matching funds to be used to pay a part or all of the nonfederal share of the costs necessary to carry out regional transportation infrastructure projects. Allows a county or municipality participating in an RDA to transfer money to a fund from its general fund or rainy day fund (or other available fund) to the RDA for purposes of providing funds for regional transportation infrastructure projects. Provides that a city, county, or political subdivision that fails to make a payment or transfer to a development authority as required is subject to a deduction by the state treasurer and a deduction of available funds from the development authority. Creates the regional development authority infrastructure fund (infrastructure fund). Provides that a regional development authority may expend money in the fund for certain infrastructure development projects. Provides that the IFA will administer the infrastructure fund. Provides an adjusted gross income tax deduction to a taxpayer that makes a contribution or gift to the infrastructure fund. Allows a county, city, or town to provide local income tax revenue to the infrastructure fund. Upon recommendation by an RDA, authorizes a county or municipality to establish a cumulative fund for the purpose of funding regional transportation infrastructure projects.

STATE AND LOCAL PUBLIC WORKS

HB 1117 PERFORMANCE BOND REQUIREMENTS (MILLER D)
Provides that a local governmental unit and a land developer may agree to the partial release of a performance bond or other surety required of the land developer to ensure the completion of certain unfinished improvements and installations in a subdivision on a more frequent basis than an annual basis. (Under current law, a performance bond or other surety may be partially released on an annual basis, which would continue to be permitted.) Provides that a contractor is not required to submit a payment bond for a public works contract of a state educational institution if the amount to be paid under the contract is less than $500,000 and the state educational institution agrees to waive the requirement. Provides that a contractor is not required to submit a performance bond for a public works contract of a state educational institution if the amount to be paid under the contract is less than $500,000 and the state educational institution agrees to waive the requirement. Makes a technical change to make language in the statute uniform.

SB 472 REQUESTS TO LOCATE UNDERGROUND UTILITY FACILITIES (CRIDER M)
Amends the statute concerning the locating and marking of underground utility facilities (Indiana’s 811 law) to allow a person responsible for: (1) a construction project; or (2) any other project or operation; that will involve an excavation or demolition operation to provide a voluntary design information notice to the association known as the Indiana Underground Plant Protection Service (association) before commencing preliminary engineering studies or construction planning activities in the project area that will be affected by the excavation or demolition. Provides that a design information notice must be received by the association at least 10 full working days but not more than 20 calendar days before the commencement of the preliminary engineering studies or construction planning activities. Specifies the information that must be included in a design information notice. Provides that not more than two design information notices for the same project and from the same person or source may be submitted in any given 180 day period. Requires the association, upon receiving a design information notice, to: (1) notify each utility operator that has underground facilities located in the affected project area; and (2) provide the person serving the design information notice a list of the identified operators. Requires an operator, upon receiving notice of a submitted design information notice, to contact the person serving the design information notice within 10 days and do one or more of the following: (1) Provide a description of, and location information for, the operator’s underground facilities in the affected project area. (2) Allow the person serving the design information notice to inspect, at a location acceptable to the operator, drawings or other records for the operator’s underground facilities in the affected project area. (3) Designate with temporary facility markers the location of the operator’s underground facilities within the affected project area. Allows an operator to reject a design information notice: (1) based on security considerations; or (2) if producing the required description of, or location information for, the operator’s affected underground facilities would place the operator at a competitive disadvantage; pending the operator’s verification of the legitimacy of the design information notice. Provides that the submission of a design information notice does not relieve a person responsible for the excavation or demolition operation involved in the project from providing the notice required under the law before commencing the excavation or demolition operation. Removes a provision in the statute that requires a county recorder who receives an inquiry from a person seeking to provide the required notice of an excavation or demolition to refer the person to the association.

HB 1422 DEPARTMENT OF TRANSPORTATION PROPERTY MATTERS (PRESSEL J)
Provides that the commissioner of the department may transfer certain real property owned by the department to a nonprofit land management organization without a prior appraisal if: (1) the real property is owned by the department in fee simple; and (2) the real property is nonmarketable due to environmental mitigation requirements imposed by federal or state regulations. Requires the department to establish rules for approving installation of traffic control signals. Defines certain terms. Prohibits the adoption or enforcement of an ordinance requiring a commercial motor vehicle to obtain a permit to operate within the jurisdiction of the local authority. Adds noncode to provide a refund of amounts paid by a commercial motor vehicle operator to obtain a permit to operate the commercial motor vehicle within the jurisdiction of the local authority.

LEGAL

HB 1491 VARIOUS MOTOR VEHICLE LAW AMENDMENTS. (SOLIDAY E)
Renames the county motor vehicle excise surtax to be the county vehicle excise tax. Renames the municipal motor vehicle license excise surtax to be the municipal vehicle excise tax. Renames the motor vehicle license excise tax to be the vehicle excise tax. Makes other revisions in the following statutes: (1) The vehicle excise tax. (2) The excise tax on recreational vehicles and truck campers. (3) The commercial vehicle excise tax. (4) The boat excise tax. Makes clarifying amendments in Title 9. Provides that an autocycle manufactured before July 1, 2015, is not required to be equipped with antilock brakes. Provides that an ordinance adopted by a county, city, or town authorizing the operation of a golf cart or an off-road vehicle on the highways of the county, city, or town must require an individual who operates the golf cart or off-road vehicle: (1) to hold a driver’s license (current law); or (2) be at least 16 years and 180 days of age and hold an identification card issued by the bureau of motor vehicles, including a photo exempt identification card. Provides that the definition of “farm wagon” exempts off-road vehicles from title and registration procedures when the farm wagon is used on private farm property. Provides that upon approaching a stationary survey or construction vehicle, a person who drives an approaching vehicle shall yield the right-of-way and proceed with caution. Removes the sunset clause for distributions of fee revenue to the integrated public safety communications fund. Amends the Abraham Lincoln license plate statute. Exempts the Lewis and Clark expedition license plate from the specialty group license plate requirements. Provides that a court may not award attorney’s fees in a class action suit against a governmental entity until a hearing is held. Emphasizes that a permanent registration must be renewed on an annual basis to pay all applicable excise tax. Urges the legislative council to assign to the interim study committee on roads and transportation for study during the 2017 interim the topic of the motor vehicle inspection and maintenance program in Lake and Porter counties and whether there are alternatives to the program that would satisfy regulatory requirements and have a comparable effect on air quality. Makes conforming amendments.

HB 1447 TRANSPORTATION OF AGRICULTURAL COMMODITIES (FRIEND W)
Provides that an owner of a “carrier, shipper, or other party” may not cause or knowingly permit a vehicle to: (1) exceed certain size or weight restrictions; and (2) be operated upon a highway. Specifies that certain infractions concerning vehicle size and weight are Class C infractions. Prohibits the bureau of motor vehicles from assessing points under the point system for violations of commercial size and weight limitations after December 31, 2015. Provides that points assessed for such violations after December 31, 2015 are null and void.

COMMERCIAL

SB 353 REAL PROPERTY IMPROVEMENT CONTRACTS (HEAD R)
Amends the statute concerning home improvement contracts to do the following: (1) Redesignate a “home improvement contract” a “real property improvement contract” and make conforming changes in terminology throughout the statute. (2) Specify that for purposes of the statute, improvements include interior improvements made to real property, including improvements made to a basement. (3) Expand a consumer’s right to cancel a contract to include canceling a contract before midnight on the third business day after the later of the following: (A) The date the contract is signed by the consumer and the real property improvement supplier. (B) If applicable, the date the consumer receives written notice from the consumer’s insurance company of a final determination as to whether the consumer’s claim or the contract is a covered loss under an insurance policy. (Current law allows an insured consumer to cancel a contract only before midnight on the third business day after the insured consumer has received written notice from the consumer’s insurance company that any part of the claim or contract is not a covered loss under the insurance policy.) (4) Require that a real property improvement contract include an electronic mail address for the real property improvement supplier and each owner, officer, employee, or agent to whom consumer problems and inquiries can be directed. (5) Allow a consumer to submit a notice of contract cancellation by electronic mail. (6) Prohibit a third party subcontractor or vendor from initiating or pursuing a claim with an insured consumer’s insurance company. (7) Provide that a real property improvement contract: (A) may not assign any rights of the consumer to any supplier or third party; and (B) must reflect the full amount of the contract price, less any discounts offered. (8) Make it a Class A misdemeanor for a real property improvement supplier or a third party to recklessly, knowingly, or intentionally impersonate a consumer.

FAILED LEGISLATION OF INTEREST

HB 1226 PIPING MATERIALS FOR PUBLIC WORKS PROJECTS (VANNATTER H)
Provides, for purposes of the law on public works projects of state agencies and political subdivisions, including design-build public works projects, that: (1) the specifications or design criteria package must specify that all piping materials that meet the recognized standards of the American Society for Testing and Materials or the American Water Works Association may be acquired for and used in the projects; and (2) in the acquisition of piping materials for a project, the characteristics of the piping materials as to quality, sustainability, durability, and corrosion resistance of the piping materials shall be considered, where applicable.

HB 1261 AUTOMATED TRAFFIC ENFORCEMENT (SOLIDAY E)
Authorizes a county, city, or town to adopt and enforce an ordinance (ordinance) that regulates the placement and use of automated traffic enforcement safety devices (devices) to detect certain traffic offenses (offenses). Authorizes the department of transportation and the Indiana finance authority to use devices and to adopt rules concerning devices to enforce the collection of judgments for violations of highway work zone speed limits. Provides for civil penalties for offenses and violations. Specifies that the civil penalty must be applied first to defray the cost of the installation, operation, and maintenance of the devices, and specifies the manner in which the remaining funds are distributed. Prohibits the: (1) reporting of offenses and violations on a driving record; (2) use of offenses and violations to determine rates for motor vehicle insurance; and (3) assessment of points under the point system by the bureau of motor vehicles (bureau) for offenses and violations. Requires notification to the bureau if offenses and violations have not been paid timely. Requires the bureau to suspend the registration of a vehicle and deny the transfer of the title of the vehicle when the offenses and violations have not been paid.

HB 1266 PERFORMANCE AND PAYMENT BONDS (GUTWEIN D)
Requires that public-private agreements must contain performance bond and payment bond requirements.

HB 1351 MOTORIZED EQUIPMENT VEHICLE RENTAL EXCISE TAX (HUSTON T)
Excludes certain motorized equipment vehicles from the assessment of the personal property tax. Imposes an excise tax on the rental of those motorized equipment vehicles (excise tax). Provides procedures for the sourcing, collection, and distribution of the excise tax. Provides that the excise tax is apportioned and distributed to local governmental units in the same manner that property taxes are apportioned and distributed.

SB 308 ASSESSMENT OF HEAVY EQUIPMENT OFFERED FOR RENT (HERSHMAN B)
Provides that motorized heavy equipment vehicles that are leased, or held for lease, by the owner and are otherwise subject to the personal property tax shall be assessed for property tax purposes at the place of the owner’s business location at which the motorized heavy equipment vehicle was leased, or is held for lease, as recorded on the owner’s books and records on the assessment date. Provides that the owner is not required to file a personal property tax return for a motorized heavy equipment vehicle in a township or county other than the township or county of the owner’s business location in which the motorized heavy equipment vehicle is assessed and subject to taxation under the amended law, regardless of the place where the motorized heavy equipment vehicle may be situated as of the assessment date. (Under current law, an owner must file a personal property tax return in the township or county in which the motorized heavy equipment vehicle is situated for regular use on the assessment date.)

BIC Matters: Vote Counts for Highway Funding Bill

Posted on by admin_ici

TO: BIC Grassroots Network
FROM: Vicki Kitchin, Executive Director
DATE: April 25, 2017

BIC Matters: Vote Counts for Highway Funding Bill

We’ve had several requests for the final vote counts on House Enrolled Act 1002. It’s interesting to note that the final votes were bipartisan. In the House, 60 Republicans and 9 Democrats voted in favor, while 8 Republicans and 21 Democrats opposed the bill. In the Senate, 33 Republicans and 4 Democrats voted in favor, while 7 Republicans and 5 Democrats voted no.

Here, we share those vote counts, a copy of the final legislation that awaits Governor Holcomb’s signature and the fiscal summary showing the new funding for INDOT and locals.

House Vote
Senate Vote
HEA 1002 Language
HEA 1002 Fiscal Summary

We are continuing to analyze the final language and will send updates as available.

Meanwhile, if your legislators voted in favor of the bill, please reach out to them. This vote was courageous and difficult for many of them; it is important that the BIC Grassroots Network show appreciation to those legislators who voted for this major highway funding package.They deserve a big “Thank You!”

Also, take the time to send special thanks to Indiana House Speaker Brian Bosma, Chairman Ed Soliday, Chairman Tim Brown, Senate President Pro Tempore David Long, Chairman Luke Kenley, Chairman Mike Crider and Chairman Brandt Hershman. Their leadership made this happen.

BIC Matters: Indiana Legislature Passes Long-Term, Dedicated, Stable Highway Funding Package

Posted on by admin_ici

TO: BIC Grassroots Network
FROM: Vicki Kitchin
DATE: April 22, 2017

BIC Matters: Indiana Legislature Passes Long-Term, Dedicated, Stable Highway Funding Package

The Indiana state legislature has passed HB 1002, the highway funding package that will provide long-term, dedicated and stable increased funding for state and local highways, roads, streets and bridges. The House voted 69-29 in favor; the Senate voted 37-12 in favor; and both votes had bipartisan support. The bill now goes to Governor Holcomb for his signature; he has publicly indicated his support for the package.

HB 1002 will result in additional funding of $617 million in FY 2018 growing each year to an additional $1.209 billion in FY 2024. Specifically, it includes the following:

  • Raises gas, diesel and motor carrier surcharge taxes by 10 cents each beginning in FY18 and indexes the taxes annually for seven years with a one cent per year cap
  • Gradually shifts the sales tax on gas to the state highway fund by 2025 (but allows the Governor to hold back these funds for general fund purposes subject to review by the state budget committee)
  • Increases the International Registration Plan and BMV registration fees by 25% for trucks greater than 26,000 lbs.
  • Implements a $15 statewide transportation infrastructure fee for all vehicles less than 26,000 lbs.
  • Implements an annual electric vehicle fee of $150 and a hybrid fee of $50
  • Eliminates the sales tax on special fuel
  • Requires INDOT to study tolling and to apply for a federal tolling waiver; requires state budget committee review before INDOT could implement tolling
  • Requires INDOT to develop metrics and prioritize projects using a data-driven model
  • Moves the motor carrier surcharge tax to the pump and applies to all diesel buyers
  • Continues the community crossing matching grant program for locals and modifies the match requirements as follows: counties over 50,000 population and cities/towns over 10,000 population will be at a 50/50 match; counties under 50,000 population and cities/towns under 10,000 population will be at a 75/25 match
  • Allows INDOT to operate a federal funds exchange program with locals
  • Extends local wheel tax/surtax adoption deadlines
  • Restricts local uses of MVH funds to exclude paying for police and painting structures and requires that 50% of MVH funds be used for construction, reconstruction and maintenance
  • Phases in changes to the MVH split from current 53% state/47% local to 60% state and 40% local beginning in FY18 and ending in FY23
  • Allows the IFA to facilitate the completion of a P3 project in a situation where the P3 agreement has been terminated or the IFA has exercised its right to seek remedies

Our state legislators deserve our praise and thanks for taking this courageous vote to improve our state’s highways and bridges and ensure that Indiana reaches the next level for the future.

Chairman Ed Soliday has worked to achieve this measure for at least six years. He has mandated an approach and solution that is unequivocally data-driven. House Speaker Brian Bosma and Chairman Tim Brown have led the House Republican caucus in pressing for solutions, understanding the significance of this issue and advocating for this vote.

In the Senate, Chairman Luke Kenley has worked hard to figure out a financing plan that invests in our highway system while ensuring general fund stability. President Pro Tempore David Long, Chairman Mike Crider and Chairman Brandt Hershman worked with their caucus members to ensure this issue is addressed for the long-term.

BIC would like to thank our broad coalition of partner organizations who have worked closely together for many years to convince legislators of the need for additional investment. These partners include local governments, agriculture, state and local chambers, organized labor and many others.

Also, BIC would like to thank our member associations: ACEC-IN, ACPA-IN, APAI, ICI, IED, IMAA and IRMCA for continued support and perseverance. Our members (all of you, the members of these associations) have been the core of our grassroots network and have responded to our calls to action. Your contacts have made all the difference in this effort.

Finally, we owe great thanks to our professional highway funding experts and lobbying team: Dennis Faulkenberg and Laurie Maudlin of APPIAN Advisors and Bill Livvix of BRL Associates. This achievement is a direct result of their expertise and tenacity and wouldn’t have been possible without them.

Thanks to all.

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

Posted on by admin_ici

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

Posted on by admin_ici

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.