STATE FUNDING INITIATIVES REPORT State Funding Initiatives MARCH 2019 1 ABOUT THE TRANSPORTATION INVESTMENT ADVOCACY CENTER (TIAC) The Transportation Investment Advocacy Center ™ (TIAC) is a first-of-its kind, dynamic education program and Inter- net-based information resource designed to help private citizens, legislators, organizations and businesses successfully grow transportation investment at the state and local levels through the legislative and ballot initiative processes. The TIAC website, www.transportationinvestment.org, helps transportation investment advocates to mount successful campaigns. It exists to put in one place—and promote the sharing of—strategies… sample political and communica- tions tools… legislative and ballot initiative language… and information on where to obtain professional campaign advice, research and help. To receive free, regular email updates from the TIAC, subscribe to the TranspoAdvocates Blog (www.transportationinvestment.org/blog). TIAC staff produces regular research reports and analyses, hosts an annual workshop in Washington, D.C., and holds ongoing webinars for transportation investment advocates featuring case studies, best practices, and the latest in politi- cal and media strategies. State and local chamber of commerce executives, state legislators, state and local transporta- tion officials, “Better Roads & Transportation” group members, industry and labor executives, and leaders of state and local chapters of national organizations who have an interest in transportation development programs are welcomed to participate. STATE FUNDING INITIATIVES REPORT The Center’s program of work is also guided by a Transportation Investment Advocates Council, a national network of business professionals and public officials who share a common interest in building support for transportation infrastructure investments in their state or local community— roads, bridges, public transit, pedestrian walkways and cycling paths, airports, waterways, ports and rail facilities. TIAC is a project of the American Road and Transportation Builders Association’s “Transportation Makes America Work!”™ (TMAW) and supported through voluntary contributions and sponsorships. To become a sponsor or to make a contribution, contact TIAC Director Carolyn Kramer ([email protected] , or at 202-289-4434). Also contact Ms. Kramer if you have questions or comments about any reports or case studies pub- lished through the TIAC, or would like more information on the program and the Council. © 2019 by the American Road & Transportation Builders Association (ARTBA). All rights reserved. No part of this document may be 2 reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of ARTBA. EXECUTIVE SUMMARY Table of Contents Executive Summary ................................................................................................................. Pages 3-5 2019 State Transportation Funding Legislation Details (by State)............................................ Pages 6-45 Timeline- Passed State Transportation Funding Legislation (2012 - 2018) .............................. Pages 46-50 March 2019 State Transportation Funding Overview Forty-three states introduced 231 bills related to increasing transportation investment in the first three months of 2019. Four funding bills were signed into law in March, including: • Alabama: 10 cents-per-gallon fuel tax increase, indexed to the National Highway Construction Cost, and new annual registration fees of $200 for electric motor vehicles and $100 for hybrid motor vehicles. • Arkansas: 3 cents-per-gallon gas tax increase and 6 cents-per-gallon diesel tax increase, and add an ad- ditional levy based on the average wholesale price of fuel. Implement an annual registration fee of $200 for electric motor vehicles and $100 for hybrid motor vehicles, and transfer $35 million annually from STATE FUNDING INITIATIVES REPORT casino revenues to the state’s transportation fund. • Arkansas: Place a half-cent sales tax increase renewal on the 2020 ballot. • Utah: Permit owners of alternative fuel vehicles to enroll in a road usage charge program. An additional bill in Ohio to increase the state gas tax by 10.5 cents-per-gallon and the diesel tax by 19 cents-per-gallon, and implement annual registration fees of $200 for electric motor vehicles and $100 for plug-in hybrid motor vehicles, is pending governor approval. 2019 State Transportation Funding Trends Motor fuel taxes: Twenty-two states have proposed increasing one or more types of motor fuel tax to gener- ate funding for transportation construction. Of those states, eleven included altering or creating a variable- rate tax. Two states have already approved motor fuel tax increases, and an additional state is pending final approval from the governor. Electric vehicle fees: Twenty states filed legislation to implement an electric vehicle registration fee. Fifteen of those states also included an additional registration fee for hybrid vehicles. Three states have implement- ed or increased their electric vehicle fees, and an additional state is pending final approval from the gover- nor. Several states are also considering innovate funding solutions during the 2019 legislative session. Mileage based user fee studies or pilot programs are being considered in ten states. Additionally, five states have introduced legislation to utilize tolling for new revenue. Of the legislation introduced in the first three months of 2019, only 33 measures have advanced beyond their first chamber. One hundred ninety-five bills have been introduced and are awaiting further action. 3 Estimated Funding Approved in 2019 Legislative Session: $409,128,650 EXECUTIVE SUMMARY 2019 Motor Fuel Tax Increase Introduced Flat Variable Passed Alabama 1 1 1 Arkansas 2 1 Arizona 1 1 Arizona Hawaii 2 1 Illinois 1 1 Kansas 3 Kentucky 1 Louisiana 1 Massachusetts 2 Maine 2 Minnesota 2 Missouri 2 Mississippi 1 North Dakota 1 New Hampshire 1 New Mexico 5 Ohio* 1 pending Texas 2 STATE FUNDING INITIATIVES REPORT Virginia 1 1 Vermont 1 Wisconsin 1 Wyoming 1 *OH bill initially included variable-rate formula that was removed in final version. 2019 Toll Legislation Introduced Introduced Passed Connecticut 2 Missouri 1 New York 2 pending Virginia 2 Washington 3 2019 Electric Vehicle Fee Introduced EV Fee Includes Hybrid Passed Alabama 2 1 Arkansas 2 1 Arizona 1 Hawaii 1 Iowa 4 Illinois 2 1 Kansas 2 Kentucky 1 Louisiana 1 Montana 1 North Dakota 1 Nebraska 1 New Mexico 1 Ohio 1 pending Oklahoma 1 Texas 1 Vermont 1 4 Washington 1 Wisconsin 1 Wyoming 1 1 EXECUTIVE SUMMARY 2019 STATE TRANSPORTATION FUNDING LEGISLATION WA NH MT ND ME OR MN VT ID WI SD NY WY MI MA IA PA NE OH CT NV UT IN RI IL CA CO WV KS MO VA KY DE NC NJ TN AZ OK NM AR SC MD DC GA MS AL STATE FUNDING INITIATIVES REPORT TX LA AK FL HI New Recurring Revenue Initiative Pending Approved One-Time Revenue Initiative Failed Approved Ballot Measure Pend- Non-Funding Legisla- Several measures are in varying stages. ing tion Approved * View state breakdown for more info. Report Status Bar Key: Each green check shows how far legislation has progressed. One check: Introduced and on committee calendar Two checks: Passed first committee Three checks: Passed first chamber Four checks: Passed second committee Five checks: Passed second chamber Six checks: Became law 5 2019 State Transportation Funding Legislation Alabama Bill Number: HB 2 Notes : The "Rebuild Alabama" Act: 10 cent-per-gallon fuel tax increase indexed to the National Highway Construction Cost Index and phased in over three years; a new annual registration fee of $200 for electric motor vehicles and $100 for hybrid motor vehicles. Sponsor: Bill Poole Introduced Date: 03/06/2019 Last Action: Third Reading Carried Over to Call of the Chair - (03/12/2019) Status: Bill Number: HB 1 Notes : Create a permanent Joint Transportation Committee. Sponsor: Bill Poole Introduced Date: 03/06/2019 Last Action: Third Reading Carried Over to Call of the Chair - (03/12/2019) Status: Bill Number: HB 81 Notes : The "Rebuild Alabama" Act: 10 cent-per-gallon fuel tax increase indexed to the National Highway Construction Cost Index and phased in over three years; a new annual registration fee of $250 for electric motor vehicles and $125 for hybrid motor vehicles. Sponsor: Bill Poole Introduced Date: 03/05/2019 Last Action: Read for the rst time and referred to the House of Representatives committee on Transportation, Utilities and Infrastructure - (03/05/2019) Status: _ _ _ _ _ _ Arkansas Bill Number: SB 336 Notes : Implement a wholesale sales tax on motor fuel and additional registration fees on electric and hybrid motor vehicles, with the revenue used for maintaining and reparing roads and bridges. Sponsor: Terry Rice Introduced Date: 02/14/2019 Last Action: Notication that SB336 is now Act 416 - (03/12/2019) Status: Bill Number: HJR 1018 Notes : Refer an amendment to the voters to extend the current 1/2-cent sales tax passed in 2012. Sponsor: Wardlaw Introduced Date: 02/13/2019 Last Action: Correctly enrolled and ordered transmitted to the Governor's Oce. - (03/08/2019) Status: _ _ _ Bill Number: HB 1495 Notes : Implement a wholesale sales tax on motor fuel and additional registration fees on electric and hybrid motor vehicles, with the revenue used for maintaining and reparing roads and bridges. Sponsor: Mike Holcomb Introduced Date: 02/18/2019 Last Action: Bill Created - (02/19/2019) Status: _ _