HLS 21RS-858 ENGROSSED
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 repeal the dedication of certain revenues to the
7 Transportation Trust Fund; to dedicate those revenues to the Construction Subfund
8 of the Transportation Trust Fund; to require an online platform for Highway Priority
9 Program information; and 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.
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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.
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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 committee
21 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.
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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 of certain monies for
14 transportation purposes to the Construction Subfund
15 A. Beginning Fiscal Year 2017-2018 and each year thereafter, from the The
16 avails of the taxes imposed by Chapters 2, 2-A, and 2-B of Subtitle II of Title 47 of
17 the Louisiana Revised Statutes of 1950 from the sale, use, lease or rental, the
18 distribution, the consumption, and the storage for use or consumption of motor
19 vehicles which are taxable pursuant to said Chapters 2, 2-A, and 2-B, and after shall
20 be deposited into the Construction Subfund of the Transportation Trust Fund
21 provided for in Article VII, Section 27(B)(2) of the Constitution of Louisiana,
22 referred to in this Paragraph as the "subfund", as follows:
23 (1) For Fiscal Year 2021-2022, ten percent of the avails shall be deposited
24 into the subfund.
25 (2) For Fiscal Year 2022-2023, twenty percent of the avails shall be
26 deposited into the subfund.
27 (3) For Fiscal Year 2023-2024, thirty percent of the avails shall be deposited
28 into the subfund.
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1 (4) For Fiscal Year 2024-2025, forty percent of the avails shall be deposited
2 into the subfund.
3 (5) For Fiscal Year 2025-2026, fifty percent of the avails shall be deposited
4 into the subfund.
5 (6) For Fiscal Year 2026-2027, sixty percent of the avails shall be deposited
6 into the subfund.
7 (7) For Fiscal Year 2027-2028, seventy percent of the avails shall be
8 deposited into the subfund.
9 (8) For Fiscal Year 2028-2029, eighty percent of the avails shall be deposited
10 into the subfund.
11 (9) For Fiscal Year 2029-2030, ninety percent of the avails shall be deposited
12 into the subfund.
13 (10) For Fiscal Year 2030-2031 and each fiscal year thereafter, one hundred
14 percent of the avails shall be deposited into the subfund. satisfying the requirements
15 of Article VII, Section 9(B) of the Constitution of Louisiana relative to the Bond
16 Security and Redemption Fund, the treasurer shall deposit an amount equal to an
17 increase in general fund revenues as certified by the Revenue Estimating Conference
18 as being attributable to the provisions of Acts 2015, No. 257, but not in excess of
19 one hundred million dollars per fiscal year, to the funds to be dedicated for use as
20 provided by Subsection B of this Section.
21 B. The monies dedicated pursuant to Subsection A of this Section shall be
22 deposited to the funds specified for the following purposes:
23 (1) The first seventy million dollars of the total monies shall be deposited
24 into the Transportation Trust Fund to be used exclusively for state highway
25 pavement and bridge sustainability projects in accordance with the Department of
26 Transportation and Development definitions of such projects.
27 (2) After compliance with the provisions of Paragraph (1) of this Subsection,
28 ninety-three percent of the remaining monies shall be deposited into the
29 Transportation Trust Fund to be appropriated and expended as follows:
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1 (a) Not less than thirty percent shall be dedicated to highway priority
2 program projects classified as capacity projects in accordance with the Department
3 of Transportation and Development definitions of such projects.
4 (b) Twenty-five percent shall be used exclusively for port construction and
5 development priority program projects as provided in Chapter 47 of Title 34 (R.S.
6 34:3451 through 3463).
7 (c) The remainder of the monies after compliance with Subparagraphs (2)(a)
8 and (b) of this Paragraph shall be used exclusively for highway priority projects.
9 Such projects shall be specifically for state highway pavement and bridge
10 sustainability in accordance with the Department of Transportation and Development
11 definitions of such projects.
12 (3) After compliance with the provisions of Paragraph (1) of this Subsection,
13 seven percent of the remaining monies shall be deposited into the Transportation
14 Trust Fund. The monies deposited in the Transportation Trust Fund pursuant to this
15 Paragraph shall be used exclusively for final design and construction and shall not
16 be used for studies.
17 (4) None of the monies deposited into the Transportation Trust Fund
18 pursuant to this Subsection shall be appropriated to the office of state police.
19 * * *
20 §229.2. Highway Priority Program project information; online public access
21 A. No later than January 1, 2022, the department shall develop an online
22 platform in consultation with the American Association of State Highway and
23 Transportation Officials. The platform shall provide the public access to real-time
24 project information including, but not limited to the project's scope, cost, and
25 timeline for completion as well as all means of financing for each project in the
26 Highway Priority Program. Each project in the Highway Priority Program shall have
27 a designated total cost which shall include a prorated cost associated with third-party
28 services required by the department to create, implement, and maintain the online
29 platform.
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1 B. The department shall utilize targeted digital technologies to raise public
2 awareness of the online platform, to provide project updates to the public, and to
3 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 Engrossed 2021 Regular Session McFarland
Abstract: Provides for study and review of the operating budget and capital project
expenditures of the Dept. of Transportation and Development (DOTD) and dedicates
the sales and use tax for motor vehicles to the Construction Subfund of the
Transportation Trust Fund (TTF).
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 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
deposit the avails of these taxes into the Construction Subfund of the TTF as follows:
(1)For FY 2021-2022, 10% of the avails shall be deposited into the subfund.
(2)For FY 2022-2023, 20% of the avails shall be deposited into the subfund.
(3)For FY 2023-2024, 30% of the avails shall be deposited into the subfund.
(4)For FY 2024-2025, 40% of the avails shall be deposited into the subfund.
(5)For FY 2025-2026, 50% of the avails shall be deposited into the subfund.
(6)For FY 2026-2027, 60% of the avails shall be deposited into the subfund.
(7)For FY 2027-2028, 70% of the avails shall be deposited into the subfund.
(8)For FY 2028-2029, 80% of the avails shall be deposited into the subfund.
(9)For FY 2029-2030, 90% of the avails shall be deposited into the subfund.
(10)For FY 2030-2031, and each fiscal year thereafter, 100% of the avails shall
be deposited into the subfund.
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.
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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)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Appropriations to the
original bill:
1. Delete the requirement that the legislature appropriate funding for DOTD's
operating budget from the avails of taxes from the sale, use, lease or rental,
distribution, consumption, and storage for use or consumption of motor vehicles.
2. Require the deposit of the avails of taxes from the sale, use, lease or rental,
distribution, consumption, and storage for use or consumption of motor vehicles
into the Construction Subfund of the TTF, beginning with 10% for FY 2021-
2022 and increasing to 100% for FY 2030-2031 and each fiscal year thereafter.
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