Highway finance
Lawmakers may consider proposals to secure revenue for state roads and bridges. The Texas Department of Transportation (TxDOT) has estimated that projected levels of funding would leave no funds to authorize new highway construction after fiscal 2012 because available funds would be needed for already committed projects and ongoing highway maintenance. One proposal could be to authorize the Texas Transportation Commission to issue up to $3 billion in remaining general obligation bonds approved by voters in 2007 for highway improvements. A proposal also may emerge to reduce diversions of motor fuels tax revenue (Fund 6) for purposes other than building and maintaining highways. This could include providing alternative funding for the Department of Public Safety, which received about $1.1 billion in Fund 6 revenue in fiscal 2010-11.
Lawmakers could consider ways to increase revenue to Fund 6. They may consider a constitutional amendment authorizing a vote to approve an increase in the 20-cent tax on gas and diesel fuel to pay off debt service for previously issued highway bonds. Another proposal could be to allow local-option elections on local increases in the motor fuels tax, with the revenue going to fund local highway improvements. Lawmakers also may consider authorizing an additional sales tax for transit or expanding the number of counties that may impose vehicle-related fees, such as registration fees, within their jurisdictions.
Proposals to fund highway projects by alternative means may be considered. This could include enabling local entities to establish transportation finance zones by means beyond tolling agreements between a local entity and TxDOT, to which they currently are limited. Lawmakers also may consider adjusting certain transportation-related fees, such as registration fees for special vehicles.
Increases in Vehicle Registration Fees
Sen. Tommy Williams, R-The Woodlands, chairman of the Senate Transportation and Homeland Security Committee, has spoken on the possibility of legislation requiring higher vehicle registration fees, or some other fee, passing this session to help raise funds for transportation. He specifically, has been touting a plan that would raise motor vehicle fees as much as $50 a year.
That increase, he said, would support $18 billion or so in new construction. That would fund, he said, the most important congestion-relief projects in all of Texas’ largest cities and leave enough left over for a statewide series of safety measures.
Private participation in road projects
Lawmakers may examine the roles of public and private entities in building new toll roads and the conditions under which a tolled road could be incorporated into an existing toll-free highway. The general authority of the state to enter into comprehensive development agreements (CDA) with private entities to build toll projects expired in 2009.
Proposals that the 82nd Legislature may consider include extending the state’s authority to enter into CDAs, modifying the duration of these agreements, allowing potential projects to be solicited only after an environmental clearance, or further strengthening restrictions on the so-called non-compete clauses sometimes found in these contracts.
The Legislature also could re-examine the right of first refusal granted to local public tolling entities to negotiate for rights to develop and operate toll projects within their jurisdictions. Proposals could emerge to modify or remove the primacy of local public tolling entities or to modify or remove the market evaluation process that precedes an agreement that local tolling entities reach with TxDOT on a toll project.
One proposal could include establishing a multi-step process by which local public entities and private tolling authorities have varying windows of opportunity to opt to develop a toll project.
TxDOT Sunset review
TxDOT is undergoing a limited Sunset review to be presented to the 82nd Legislature. In 2009, HB 300 by Carl Isett included Sunset review recommendations but was not enacted. The 81st Legislature, in its first called session in 2009, continued TxDOT until 2011. The newest Sunset staff review evaluates recommendations from the full review of the agency in 2008. TxDOT says it already has implemented some of those recommendations, such as establishing a separate rail division, revising aspects of project planning and development, adopting a public involvement policy, implementing a system for tracking complaints, and making changes to contract management. Lawmakers may consider proposals for further revisions in these areas. Lawmakers may consider proposals to restructure the Texas Transportation Commission, including replacing the commission with a single commissioner or electing commission members but have indicated they are waiting for the report from the TxDOT Restructure council. They also may revisit previous proposals regarding legislative oversight and agency structure.
Distracted driving
Lawmakers may consider legislation aimed at curbing behaviors thought to contribute to distracted driving, such as text messaging and using cell phones while driving. Proposals may create a criminal offense or a civil penalty for texting while driving, or for texting or using a cell phone without a hands-free device for young drivers or for the population at large.
Red light cameras
Lawmakers may seek to restrict or prohibit municipal use of red light cameras for traffic offenses. Red light cameras have been shown to increase safety at intersections.
Rail
The 81st Legislature adopted a rider in the General Appropriations Act for fiscal 2010-11 to provide up to $182 million to the Texas Rail Relocation and Improvement Fund, which has not received funding since its creation in 2005. The comptroller did not authorize the appropriation, which was contingent upon a certain finding of fact about available revenues. Lawmakers may consider allocating money for the fund through a direct appropriation or by dedicating a funding stream, such as the business and sales taxes the railroad industry now pays.