Req. No. 6797 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 STATE OF OKLAHOMA 1st Session of the 58th Legislature (2021) HOUSE BILL 1712 By: Hill AS INTRODUCED An Act relating to transportation; declaring legislative intent; creating the Oklahoma Road User Charge Program; creating the Road User Cha rge Task Force; providing for task force representation from certain groups; providing for duties of task force; requiring submission of f indings and recommendations to Legislature by certain date; authorizing the Oklahoma Tax Commission to collect certain fees and charges; requiring fees collected be used for certain purposes; providing for noncodification; providing for codification; and providing an effective date . BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. NEW LAW A new section of law not to be codified in the Oklahoma Statutes reads as follows: The Legislature finds and declares the following: 1. An efficient transportation system is critical for Oklahoma's economy and quality of life ; 2. The revenues currently available for highways are unsustainable and inadequate to preserve and maintain existing infrastructure and provide funds for improvements that would reduce congestion and improve service; Req. No. 6797 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 3. The gas tax is an ineffective mechanism for meeting Oklahoma's long-term revenue needs because it will steadily generate less revenue as vehicles become more fuel efficient and alternative sources of fuel are ut ilized. Currently, alternative -powered vehicles contribute less to road user revenue use d for building and maintaining Oklahoma 's highways, with some contributing none; 4. Many other states have begun to explore the potential for a road usage charge to repla ce traditional motor fuel taxes; 5. Road usage charging is a policy whereby motorist s pay for the use of the roadway network ba sed on the distance they travel; 6. A road user charge program has the potential to distribute the gas tax burden across all vehicles regardless of the fuel source and to minimize the impact of the curre nt regressive gas tax structure; 7. Experience to date in other states across the nation demonstrates that mileage -based charges can be implemented in a way that ensures data security and maximum privacy protection for drivers; 8. According to the Department of T ransportation's Long Range Transportation Plan, by 2045, the amount of fuel tax revenue generated per vehicle miles traveled is expected to decrease by forty-four and seven-tenths (44.7) percent; and Req. No. 6797 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 9. It is therefore vital to begin the exploration of alternative revenue sources that may be implemented in lieu of the antiquated gas tax structure now in place. SECTION 2. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 1930 of Title 69, unless there is created a duplication in numbering, reads as follows: This act shall be known and may be cited as the "Oklahoma Road User Charge Program". SECTION 3. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 1 931 of Title 69, unless there is created a duplication in numbering, reads as follows: A. 1. There is hereby created Road User Charge Task Force. The task force shall be chaired by the Executive Director of the Department of Transportation and shall consist of, but shall not be limited to, representation from the following groups: a. Oklahoma Department of Transportation , b. Metro Planning Organizations (MPOs) , c. Oklahoma Center for the Advancement of Science and Technology, d. Office of Management and Enterprise Services, e. Oklahoma Tax Commission , f. Oklahoma Municipal League , g. Association of County Commissioners of Oklahoma , h. Oklahoma Corporation Commission , Req. No. 6797 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 i. Department of Transportation Tribal Advisory Board , j. Industry representatives, k. Office of the Speaker of the House , and l. Office of the Senate President Pro Tempore ; 2. The Road User Charge Task Force shall: a. consult with highway users and transportation stakeholders, including stakeholders representing vehicle users, vehicle manufa cturers and fuel distributors to ensure fair and equitable distribution of the gas tax burden across all veh icles regardless of fuel source, b. study the availability, adaptability, reliability and security of methods that may be used in recording and reporting public road usage, c. study the ease and cost of administering the collection of taxes and fees as an alternative to the current system of taxing highway use t hrough motor vehicle fuel taxes, d. ensure that processes for collecting, managing, storing, transmitting and destroying data are in place to protect the integrity of the data and safeguard the privacy of drivers, Req. No. 6797 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 e. collaborate with other states to seek potential interoperability opportunities to capture out -of-state drivers traveling through O klahoma, f. develop and implement a voluntary pilot program to assess the potential for mileage -based revenue collection for Oklahoma 's roads and highways as an alternative to the gas tax system, g. through public outreach , secure a sampling of individuals willing to participate in the pilot program for testing purposes in lieu of paying certain vehicle registration fees, and h. seek available federal funds for studies, demonstration projects or pilots associated with the Oklahoma Road User Cha rge Program's implementation. B. A report of findings and recommendations determined by the Task Force on how best to implement the Road User Charge Program shall be submitted to the Legislature by December 31, 2023. SECTION 4. NEW LAW A new se ction of law to be codified in the Oklahoma Statutes as Section 193 2 of Title 69, unless there is created a duplication in numbering, reads as follows: The Oklahoma Tax Commission shall administer the collection of any charges or fees associated with the O klahoma Road User Charge Program. Collections from the road usage charges imp osed under this act shall be specifically designated for the purpose of maintaining Req. No. 6797 Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 and improving the roads, highways and bridges in the State of Oklahoma. SECTION 5. This act shall become effective November 1, 2021. 58-1-6797 JBH 01/06/21