HLS 21RS-858 ORIGINAL 2021 Regular Session HOUSE BILL NO. 511 BY REPRESENTATIVE MCFARLAND Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. BUDGETARY CONTROLS: Provides relative to budgetary operations and funding for the Department of Transportation and Development 1 AN ACT 2To amend and reenact R.S. 48:77 and to enact R.S. 48:71, 72, and 229.2, relative to 3 budgetary operations and funding for the Department of Transportation and 4 Development; to create a commission to assess the operations and expenditures of 5 the department; to provide for the membership, powers, functions, and duties of the 6 commission; to provide for audits; to provide funding requirements for the 7 department; to repeal the dedication of certain revenues to the Transportation Trust 8 Fund; to require an online platform for Highway Priority Program information; and 9 to provide for related matters. 10Be it enacted by the Legislature of Louisiana: 11 Section 1. R.S. 48:77 is hereby amended and reenacted and R.S. 48:71, 72, and 12229.2 are hereby enacted to read as follows: 13 §71. Commission on Government Reform in Transportation 14 A. There is hereby established the Commission on Government Reform in 15 Transportation for the purpose of assessing the operations, employee salaries and 16 related benefits, and capital project expenditures of the Department of Transportation 17 and Development. 18 B. Members of the commission shall be as follows: 19 (1) The president of the Senate or his designee. Page 1 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 21RS-858 ORIGINAL HB NO. 511 1 (2) The speaker of the House of Representatives or his designee. 2 (3) The chairman of the House Committee on Transportation, Highways and 3 Public Works or his designee. 4 (4) The chairman of the Senate Committee on Transportation, Highways and 5 Public Works or his designee. 6 (5) The commissioner of administration or his designee. 7 (6) The secretary of the Department of Transportation and Development or 8 his designee. 9 (7) Two former unclassified employees of the Department of Transportation 10 and Development appointed by the governor. 11 (8) Two at-large members appointed by the president of the Senate. 12 (9) Two at-large members appointed by the speaker of the House of 13 Representatives. 14 (10) A representative of the Public Affairs Research Council of Louisiana. 15 C. The commission shall elect a chairman and vice chairman from within its 16 membership. No current state employee or official serving within the executive 17 branch of state government shall be eligible to serve as chairman or vice chairman. 18 D. The commission shall study and otherwise concern itself with the 19 following: 20 (1) The impacts of legislation enacted as a result of the 2021 Regular Session 21 of the Legislature and any legislative session thereafter relating to the department's 22 operations, employee salaries and related benefits, and capital project expenditures. 23 (2) Any audit published by the legislative auditor relating to the department. 24 (3) Reports provided by the department concerning self-generated revenues. 25 (4) The organizational structure of the department as it relates to the efficient 26 and effective delivery of services to the public. 27 (5) The operational needs and costs of the department and related means of 28 financing. 29 (6) Privatization of any departmental service or function. Page 2 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 21RS-858 ORIGINAL HB NO. 511 1 (7) The department's operational and strategic planning. 2 (8) Any matter related to operational or capital budgeting for the department. 3 (9) Best practices from other states. 4 (10) Any priority program of the department. 5 (11) Any other matter as agreed upon by majority vote of the commission. 6 E. In addition to the matters provided for in Subsection D of this Section, the 7 commission shall study the forthcoming effects of conversion to electric and hybrid 8 vehicles on highway funding and develop a detailed recommendation for fully 9 funding the state's transportation needs through a new fee or tax collection structure. 10 This recommendation shall be submitted in writing to the House Committee on Ways 11 and Means and the Senate Committee on Revenue and Fiscal Affairs no later than 12 December 31, 2024. 13 F.(1) The department shall provide staff support for the commission. If 14 deemed necessary by the commission, the department shall also finance and procure 15 any third-party services sought by the commission in carrying out its purpose. 16 (2) In procuring any third-party service sought by the commission, the 17 department shall follow all applicable public bid laws. The selection committee for 18 any services procured pursuant to this Subsection shall be comprised of five 19 members of the commission appointed by the chairman but shall not consist of any 20 current department employees. The department shall provide the selection 21 committee with proper legal counsel and support. 22 G. The commission shall meet as frequently as deemed necessary by the 23 chairman but shall meet no less than quarterly beginning on July 1, 2021, through 24 July 1, 2023, and shall meet at least once annually thereafter. 25 H. The commission shall submit a report to the legislature by December 26 thirty-first of each year summarizing its work, findings, and recommendations for 27 legislative action, which may include termination of the commission. Page 3 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 21RS-858 ORIGINAL HB NO. 511 1 §72. Audit requirements 2 A. No later than July 1, 2022, the legislative auditor shall commence a 3 comprehensive audit of the Department of Transportation and Development. The 4 audit shall include, but not be limited to the following: 5 (1) Review of the department's operations and organizational efficiency. 6 (2) Review of the department's use of the avails of the taxes deposited into 7 the Construction Subfund of the Transportation Trust Fund pursuant to the 8 provisions of Article VII, Section 27 of the Constitution of Louisiana. 9 B. The legislative auditor shall present his findings and recommendations to 10 the speaker of the House of Representatives and the president of the Senate no later 11 than September 30, 2023. 12 * * * 13 §77. Transportation Trust Fund; dedication and uses Uses of certain monies for 14 transportation purposes operating expenses 15 A. Beginning Fiscal Year 2017-2018 2021-2022 and each year thereafter, the 16 legislature shall appropriate funding for the Department of Transportation and 17 Development's operating budget from the avails of the taxes imposed by Chapters 18 2, 2-A, and 2-B of Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950 19 from the sale, use, lease or rental, the distribution, the consumption, and the storage 20 for use or consumption of motor vehicles which are taxable pursuant to said Chapters 21 2, 2-A, and 2-B. The department shall utilize all other of means of finance to the 22 extent possible prior to utilizing funding pursuant to this Section. Nothing in this 23 Section shall be construed to promote or authorize use of the Construction Subfund 24 of the Transportation Trust Fund for operational costs of the department., and after 25 satisfying the requirements of Article VII, Section 9(B) of the Constitution of 26 Louisiana relative to the Bond Security and Redemption Fund, the treasurer shall 27 deposit an amount equal to an increase in general fund revenues as certified by the 28 Revenue Estimating Conference as being attributable to the provisions of Acts 2015, Page 4 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 21RS-858 ORIGINAL HB NO. 511 1 No. 257, but not in excess of one hundred million dollars per fiscal year, to the funds 2 to be dedicated for use as provided by Subsection B of this Section. 3 B. The monies dedicated pursuant to Subsection A of this Section shall be 4 deposited to the funds specified for the following purposes: 5 (1) The first seventy million dollars of the total monies shall be deposited 6 into the Transportation Trust Fund to be used exclusively for state highway 7 pavement and bridge sustainability projects in accordance with the Department of 8 Transportation and Development definitions of such projects. 9 (2) After compliance with the provisions of Paragraph (1) of this Subsection, 10 ninety-three percent of the remaining monies shall be deposited into the 11 Transportation Trust Fund to be appropriated and expended as follows: 12 (a) Not less than thirty percent shall be dedicated to highway priority 13 program projects classified as capacity projects in accordance with the Department 14 of Transportation and Development definitions of such projects. 15 (b) Twenty-five percent shall be used exclusively for port construction and 16 development priority program projects as provided in Chapter 47 of Title 34 (R.S. 17 34:3451 through 3463). 18 (c) The remainder of the monies after compliance with Subparagraphs (2)(a) 19 and (b) of this Paragraph shall be used exclusively for highway priority projects. 20 Such projects shall be specifically for state highway pavement and bridge 21 sustainability in accordance with the Department of Transportation and Development 22 definitions of such projects. 23 (3) After compliance with the provisions of Paragraph (1) of this Subsection, 24 seven percent of the remaining monies shall be deposited into the Transportation 25 Trust Fund. The monies deposited in the Transportation Trust Fund pursuant to this 26 Paragraph shall be used exclusively for final design and construction and shall not 27 be used for studies. Page 5 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 21RS-858 ORIGINAL HB NO. 511 1 (4) None of the monies deposited into the Transportation Trust Fund 2 pursuant to this Subsection shall be appropriated to the office of state police. 3 * * * 4 §229.2. Highway Priority Program project information; online public access 5 A. No later than January 1, 2022, the department shall develop an online 6 platform in consultation with the American Association of State Highway and 7 Transportation Officials. The platform shall provide the public access to real-time 8 project information including, but not limited to the project's scope, cost, and 9 timeline for completion as well as all means of financing for the each project in the 10 Highway Priority Program. Each project in the Highway Priority Program shall have 11 a designated total cost which shall include a prorated cost associated with third-party 12 services required by the department to create, implement, and maintain the online 13 platform 14 B. The department shall utilize targeted digital technologies to raise public 15 awareness of the online platform, to provide project updates to the public, and to 16 seek the public's input on projects. 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 511 Original 2021 Regular Session McFarland Abstract: Provides for budgetary controls and oversight for the operating budget and capital project expenditures of the Dept. of Transportation and Development (DOTD). Proposed law establishes the Commission on Government Reform in Transportation for the purpose of assessing DOTD's operations, employee salaries and related benefits, and capital project expenditures. Proposed law requires the legislative auditor to commence a comprehensive audit of DOTD, which shall include a review of DOTD's operations, organizational efficiency, and use of the avails of taxes deposited into the Construction Subfund of the Transportation Trust Fund (TTF). Present law requires the treasurer to deposit the avails of taxes from the sale, use, lease or rental, distribution, consumption, and storage for use or consumption of motor vehicles into the TTF. Proposed law removes this requirement and instead requires the legislature to appropriate the avails of these taxes to DOTD for operational costs. Page 6 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 21RS-858 ORIGINAL HB NO. 511 Proposed law requires DOTD to utilize all other of means of finance to the extent possible prior to utilizing the funding authorized in proposed law. Present law requires the treasurer to deposit an amount equal to an increase in general fund revenues as certified by the Revenue Estimating Conference as being attributable to certain mineral revenues, not in excess of $100 million per fiscal year, to the TTF. Proposed law repeals present law. Proposed law requires DOTD to develop an online platform to provide the public access to Highway Priority Program project information. Proposed law provides that projects in the Highway Priority Program shall have a designated total cost which shall include a prorated cost associated with third-party services required by the department to create, implement, and maintain the online platform. Proposed law requires DOTD to utilize targeted digital technologies to raise public awareness of the online platform, to provide project updates to the public, and to seek the public's input on projects. (Amends R.S. 48:77; Adds R.S. 48:71, 72, and 229.2) Page 7 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions.