Louisiana 2017 2017 Regular Session

Louisiana House Bill HB598 Comm Sub / Analysis

                    DIGEST
The digest printed below was prepared by House Legislative Services.  It constitutes no part of the
legislative instrument.  The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent.  [R.S. 1:13(B) and 24:177(E)]
HB 598 Engrossed	2017 Regular Session	Abramson
Abstract:  Provides for changes to the Highway Priority Program and requires the reporting and
auditing of certain information regarding the program and the use of the avails of the taxes
levied on certain motor fuels.
Present law establishes a prioritization process for construction of highway and bridge projects
utilized to develop a Highway Priority Program that accomplishes many goals including bringing
the state highway system into a good state of repair and optimizes the usage and efficiency of
existing transportation facilities.
Proposed law retains present law but adds to the goals of the prioritization process the development
of a program to ensure that the taxes levied on motor fuels on or after August 1, 2017 are used by
the Department of Transportation and Development (DOTD) in the most cost-effective manner and
that the state is maximizing state and federal funding on costs related to the actual construction and
maintenance of highway and bridge projects and minimizing the use of these funds on administrative
costs for DOTD.
Proposed law specifies that in cases where Priority A and B mega-projects would be prioritized
equally in accordance with proposed law and present law, consideration must be given to mega-
projects that have match monies from non-federal or non-state sources.
Present law requires, beginning in FY 2017-2018, DOTD to provide the legislature and public with
a program that lists projects to be constructed in the ensuing fiscal year in an order of priority that
is determined after projects are analyzed utilizing a process based on an objective analysis that
considers the following factors relative to the cost of the project and anticipated revenues to be
appropriated by the legislature:
(1)The condition of the roads, streets, and structures making up the state highway system and
the urgency of the improvements considering their order of needs.
(2)The type and volume of traffic on a roadway, highway, or bridge.
(3)The crash records for a roadway, highway, or bridge.
(4)The technical difficulties in the preparation of plans and the procurement of rights-of-way
for a roadway, highway, or bridge. (5)Whether an unforeseeable emergency has created an immediate need for improvement or
reconstruction.
(6)Whether capacity improvements are warranted due to population or traffic volume increases
in a geographic area.
(7)Whether the highway or bridge is or will be on an evacuation route utilized to evacuate large
populations due to catastrophic events.
(8)Whether the improvement to or addition of a highway or bridge will benefit the economic
development potential of the state.
Proposed law retains present law but changes the FY from 2017-2018 to FY 2018-2019 and adds
a factor for whether the highway or bridge project will meet the needs of the local and regional
planning organizations to ensure that there is an equitable distribution among and between the
different regions of the state.
Proposed law requires, in addition to the requirements of present law, for DOTD to establish a multi-
year time line on the projects to be funded through the program each year including an indication of
the source of monies from which construction costs will be funded.
Present law requires the following factors be considered when selecting projects to be included in
the Highway Priority Program:
(1)The condition of the roads, streets, and structures making up the state highway system and
the relative urgency of the improvements considering their order of general needs.
(2)The type and volume of traffic on a particular segment of roadway, highway, or bridge.
(3)The crash records for a particular segment of roadway, highway, or bridge.
(4)The technical difficulties in the preparation of plans and the procurement of rights-of-way
for a particular segment of roadway, highway, or bridge.
(5)Whether unforeseeable emergencies such as floods have created an immediate need for
improvement or reconstruction.
(6)Whether capacity improvements are warranted due to population or traffic volume increases
in specific geographic areas.
(7)Whether or not the highway or bridge is or will be on an evacuation route utilized to evacuate
large populations due to catastrophic events such as hurricanes or flooding.
(8)Whether the improvement to or addition of a highway or bridge will benefit the economic
development potential of the state. Proposed law retains present law and adds whether the highway or bridge project will meet the needs
to the local and regional planning organizations to ensure that there is an equitable distribution
among the different regions of the state over a three year period as an additional factor to consider
when selecting Highway Priority Program projects.
Proposed law requires DOTD to submit performance progress reports including the performance
objectives, indicators, and standards used by the department to determine the efficiency and
effectiveness of the priority of projects in the program.  Further requires the report to be submitted
and maintained through the electronic performance database maintained and used by the division of
administration to track state agency performance standards and on DOTD's webpage.
Proposed law requires, beginning with the program for FY 2018-2019 and for each program
thereafter, for DOTD to apply the prioritization factors provided for in present law and begin to
prioritize all projects in the program which are at the stage of construction where sources of funding
are being identified.
Proposed law further requires, beginning with the program for FY 2018-2019, the department to
prioritize all projects included in the program into two separate lists.  The first list shall include a
three-year plan for all projects in the program where funding is programmed based on the anticipated
and projected revenues available for construction in that fiscal year. Requires DOTD to publish the
list with notations regarding whether the project is on-time, ahead of schedule, or delayed.
Proposed law requires that as projects are completed from the first list, they are deleted and replaced
with projects from the second list beginning with the highest level of priority. Further requires
DOTD to devise a detailed schedule of construction for all projects on this list which shall include
at a minimum, the stage of construction, the estimated start date, and estimated end date for each
phase of construction, associated costs, and funding sources for each phase.
Proposed law requires the second list to include a three-year plan for all projects in the program that
can be funded if additional revenues become available.  Each year, as projects move from this list
to the first list, new projects must be added to the second list from prioritized projects in the program
starting with the highest level of priority.
Proposed law requires the district administrator of each of the nine DOTD districts to determine the
prioritization of the pavement preservation projects in their respective district.  Proposed law
requires, after input from local government officials and metropolitan planning organizations, at least
35% of the avails of the new motor fuel tax to be divided among the DOTD districts based on state
road mileage and average daily traffic in each district by a formula established by the department. 
Proposed law specifies that in an action for civil damages, the Highway Priority Program is not
discoverable or admissible as evidence in any civil trial.
Proposed law requires, beginning July 1, 2019, the legislative auditor to annually audit the avails of
the additional tax levied pursuant to the provisions of proposed law on gasoline, motor fuels, and
special fuels, hereinafter "motor fuel taxes", to ensure compliance with the laws and regulations and
adequacy of internal controls to ensure all of the following: (1)That the avails of the motor fuels tax are used in accordance with their restricted purposes
as set forth in the state constitution.
(2)That the avails of the motor fuels tax are spent in appropriate categories as outlined in
proposed law and present law.
(3)That the avails of the motor fuels tax are spent on projects in compliance with the priorities
set forth in the applicable programs for prioritizing capital projects.
(4)That the avails of the motor fuels tax are spent in an efficient and effective manner showing
improvement in program operations through performance measures such as pavement
conditions, bridge conditions, safety improvements, implementation of the La. Statewide
Transportation Plan, and other outcome measures as determined by the auditor.
Proposed law requires DOTD to annually submit a report to the legislature and the legislative auditor
which contains detailed information regarding the expenditure breakdown of the avails of the motor
fuel taxes utilized by the department in accordance with the restricted purposes as set forth in the
state constitution and the methodology and outcomes of DOTD's prioritization of projects, and all
source documentation necessary to review any metrics determined by the legislative auditor. 
Proposed law provides for a detailed breakdown of additional information the report is required to
include.
Proposed law requires the auditor to annually certify that the audit of the avails of the motor fuels
tax are in substantial compliance.  Proposed law clarifies that if the legislative auditor finds a lack
of substantial compliance with any three consecutive audits, then the Legislative Audit Advisory
Council is required to make recommendations of appropriate action to the legislature.
(Amends R.S. 48:229.1(B) and (C); Adds R.S. 48:229.1(A)(9), (10), and (11) and 229.2)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Transportation, Highways and
Public Works to the original bill:
1. Make technical changes
2. Add specification that the taxes referenced in proposed law are new taxes levied on or
after Aug. 1, 2017.
3. Add that in cases where Priority A and B mega-projects would be prioritized equally in
accordance with proposed law and present law, consideration must be given to mega-
projects that have match monies from non-federal or non-state sources.
4. Change the fiscal year references in present law and proposed law from 2017-2018 to
2018-2019. 5. Add as a prioritization factor of the Highway Priority Program whether or not the project
meets the needs of local and planning organizations that ensure equitable distribution
among different regions of the state over a three-year period.
6. Require the district administrator of each of the nine DOTD districts to determine the
prioritization of the pavement preservation projects in their respective district.
7. Require, after input from local government officials and metropolitan planning
organizations, at least 35% of the avails of the new motor fuel tax to be divided among
the DOTD districts based on state road mileage and average daily traffic in each district
by a formula established by the department.
8. Specify that in an action for civil damages, the Highway Priority Program is not
discoverable or admissible as evidence in any civil trial.
9. Require the legislative auditor to ensure new taxes are used in accordance with statutory
provisions in addition to the provisions of the Transportation Trust Fund.
10.Change certain Highway Priority Program references to general language regarding
applicable programs that require prioritization of projects.
11.Clarify that if the legislative auditor finds a lack of substantial compliance with any three
consecutive audits, then the Legislative Audit Advisory Council is required to make
recommendations of appropriate action to the legislature.
12.Delete all provisions relative to public-private partnerships.