HB 0924 Provides new funding for transportation and revises highway bidding and building procedures
Current Bill Summary
- Prepared by Senate Research -

SS/SCS/HS/HCS/HB 924 - This act increases the sales tax and directs certain revenues to fund transportation projects and enacts other related transportation measures.

ACCOUNTABILITY MEASURES/PERFORMANCE AUDIT - This act requires the Department of Transportation to submit its accountability report prior to January 1st of each year rather than November 10th. MoDOT must submit this report to the Lt. Governor and the State Auditor in addition to the Governor and members of the General Assembly.

This act requires the commission to submit a statewide transportation improvement plan to the governor and the General Assembly. The plan must contain a list of highway construction projects MoDOT will complete within 5 years. After submitting the plan with the projects, the Commission must report to the General Assembly the status of the completion of the projects.

This act requires the department of transportation to have a performance audit conducted. Requires review of the fiscal management of the Commission. The performance audit requires a review of the general financial operation and management of the Department of Transportation and will also explore expenditures, waste and overall spending habits of the Transportation Department. The performance audit must be conducted every 3 years.

Under this act, the commission shall create criteria and a structure, through use of the state accounting system, to identify expenditures as administrative or non-administrative for both the highway and non-highway sections of the department. The initial audit shall review these criteria and structure and recommend any changes necessary for distinguishing between administrative and non-administrative costs. The initial audit shall also include recommendations regarding the appropriate level of administrative expenditures for the department of transportation considering the experience of other states, the size of the state's program, and the constitutional and statutory structure and laws under which the department must complete its mission. The initial performance audit shall be based on fiscal year 2003 expenditures and shall include specific recommendations on how the commission can reduce administrative expenditures.

CREATION OF HIGHWAY PATROL FUND - This act creates the Highway Patrol Fund to deposit moneys to enforce motor vehicle laws and traffic regulations (Section 43.275).

GAS TAX - This act eliminates the 2008 sunset on the 1992 six cent motor fuel tax increase.

HALF-CENT SALES TAX INCREASE - This act increases the state sales and use tax on tangible personal property, including the purchase and lease of motor vehicles, trailers, boats, and outboard motors, from 4% to 4.5% (Section 144.022, 144.440).

DISTRIBUTION OF SALES TAX - The act distributes $9,600,000 monthly to Highway Patrol Fund from the sales tax. The sales tax on motor vehicles is distributed according to section 226.1000 (public transit, multimodal and road fund purposes) (section 144.700).

AVIATION TRUST FUND - This act repeals the sunset on this section and removes the $5,000,000 cap on the Aviation Trust Fund (Section 144.805).

COMMISSION MEMBERSHIP - This act creates 2 additional commissioners and limits one commission member per U.S. Congressional district following voter approval of this act (section 226.030).

HIGHWAY BONDS - This act authorizes the Commission to issue bonds until fiscal year 2008 (up from 2006). The amount of the bonds issued after FY 2002 shall be for a minimum of $150 million but shall not exceed $350 million per fiscal year (down from $500 million per year) (Sections 226.133 and 226.134).

ELIMINATION OF HIGHWAY REVENUE FUNDS FOR STATE AGENCIES/TRANSFER OF GENERAL REVENUE TO TRANSPORTATION DEPARTMENT FUND - Under this act, appropriations from the transportation fund to non-highway agencies will be eliminated for the first full fiscal year following voter approval (Section 226.200). This act requires the transferral fo $5 million from the general revenue fund to the transportation department fund following voter approval. An additional $10 million per fiscal year shall be transferred to the fund until the total transfer reaches $35 million per fiscal year. The fund shall not be charged, cost-allocated or have funds diverted from it, except for the fund's fair share of the cost of state projects which must specifically approved by the General Assembly through appropriations provided to the Department of Transportation. The net proceeds from 6 cents of the gas tax shall be used to fund projects contained in the 1992 plan.

REDIRECTION OF ONE HALF OF MOTOR VEHICLE SALES TAX - This act redirects the current one-half of the proceeds from the tax on motor vehicles, trailers, boats, and outboard motors from the General Revenue Fund to newly created funds, the Public Transit Fund and the Multimodal Fund. Fifty-one percent of the redirected revenue will go to the Public Transit Fund to be used for planning, locating, relocating, establishing, acquiring, constructing, administering, developing, maintaining, or operating public transit systems in the state. Seven percent will go to the Multimodal Fund to be used for non-highway transportation projects. The remaining 42% will go to the state road fund (Section 226.1000).

ALLOCATION FORMULA - After approving the additional transportation funds under this act, no funds will be allocated until the commission develops a formula for their allocation (Section 226.1005). Under this act, any formula developed shall treat interstate highways as neither urban or rural.

CREATION OF STATE-LOCAL COOPERATION FUND - Creates the State- Local Cooperation Fund to fund local projects between the state and local units of government. The Commissioner of Administration, in consultation with MoDOT, Economic Development and the Agriculture Department may ward grants to local communities. The grants may be used for highway projects, bike and pedestrian trails, alternative fuel research, and other projects. Local communities will have to apply for a grant and will have to make a match with local funds (up to 50%). This fund will receive $10 million for the first fiscal year following voter approval of the act. The fund will receive $15 million the following fiscal year and every fiscal year thereafter.. (Section 226.1010).

ST. LOUIS ROAD SYSTEM - This act requires MoDOT to own, improve and maintain 37.42 center-line miles of principal arterial state highways in the City of St. Louis. This section also requires the Commission to maintain 20.5 miles of highways within St. Louis City (Section 227.025 ).

10-MILE CONSTRUCTION RULE - This act removes the restriction that highway bids can not be for more than 10 miles (Section 227.100).

DESIGN BUILD - This act allows the Commission to enter into one design-build highway project contract. This act also establishes the criteria that must be followed in awarding and completing a design-build project (Section 227.107).

PERMIT PROCESS - This act requires the Department of Natural Resources to certify nationwide permits approved by U.S. Army Corps of Engineers as it applies to impacts on state waters (Section 644.038).

ADA AND TRANSPORTATION - Any funds used for public transportation under this act must comply with the American Disabilities Act.

REFERENDUM CLAUSE - This act must be submitted to the voters. This act states that the additional revenues produced by this act are not subject to Hancock Amendment. In addition, this act requires the matter to resubmitted to the voters in 2008 for their approval or disapproval.
STEPHEN WITTE

SA 1 - REQUIRES THAT THE SALE OF HIGHWAY BONDS TO BE NEGOTIATED AFTER A COMPETITIVE SELECTION PROCESS WITH AN UNDERWRITING GROUP MANAGED BY FIRMS HEADQUARTERED WITH THE STATE OF MISSOURI, AS LONG AS SUCH FIRMS ARE NOT DEEMED TO BE UNQUALIFIED OR PRICE UNCOMPETITIVE. UNDER THE AMENDMENT, THE UNDER-WRITING GROUP MUST HAVE AS ITS FIRST PRIORITY THE SALE OF THE BONDS TO MISSOURI INDIVIDUAL INVESTORS AS LONG AS SUCH SALE IS NOT INCONSISTENT WITH DERIVING THE LOWEST POSSIBLE FINANCING COSTS.

SA 4 - PROHIBITS HIGHWAY COMMISSIONERS FROM ENGAGING IN POLITICAL FUNDRAISERS AND OTHER RELATED ACTIVITIES

SA 5 - REQUIRES ONE DESIGN-BUILD PILOT PROJECT TO BE FOR HIGHWAY 63 BETWEEN MACON AND ADAIR COUNTY

SSA 1 TO SA 6 - AMENDS THE SUBSTITUTE BY REDUCING THE NUMBER OF COMMISSIONERS FROM EIGHT TO SIX

Go to Main Bill Page | Return to Summary List | Return to Senate Home Page