MoDOT ACCOUNTABILITY MEASURES HEARD IN COMMITTEE:  The Senate Transportation Committee heard two legislative proposals Tuesday, Feb. 18 that – according to the bill sponsor – are designed to establish accountability and credibility within the Missouri Department of Transportation. Some lawmakers believe the department’s accountability must be addressed before Missouri voters would support a future tax increase for transportation.

Sen. Jon Dolan, R-St. Charles, stated that his Transportation Accountability Act is in response to the August 2002 defeat of Proposition B, which would have increased the state’s sales tax and gas tax to create more funding for transportation.

Senate Bill 481 would make several changes to the current structure of the Missouri Highways and Transportation Commission (MHTC). Those changes address:

• Commission member participation in political activities. This provision would prohibit commission members from engaging in certain political activities such as campaigning or fundraising. Any commission member engaging in this activity would be subject to removal by the governor.
• Staggering of Commission Terms. This provision would stagger the terms of the commission members so that the terms would begin on Dec. 1 in odd-numbered years provided that no more than two members’ terms would be scheduled to expire in the same year and that the two members are not from the same political party. Members would serve until a successor is appointed and qualified. If a vacancy occurs due to death, resignation, or removal, the successor would be appointed for only the remainder of the unexpired term.

The legislation also would create the Office of Inspector General and establish an independent Office of the Transportation Inspector General. The bill, in its original form, gave the inspector general a number of responsibilities, however, several of those responsibilities were changed before the bill was passed by the committee.

 The inspector general would be responsible for promoting accountability, integrity and efficiency in MoDOT. The inspector general would be appointed by the governor with the advice and consent of the Senate and would be under the general supervision of the governor. The governor’s office would provide funding and administrative support for the inspector general whose term of office would coincide with the term of the appointing governor.

The inspector general would not be subject to supervision of the commission or any other officer of the Department of Transportation. The inspector general would have the power to conduct investigations and audits relating to the operations of the department of transportation and other agencies that receive highway revenues and would file a monthly report with the Joint Committee on Transportation Oversight. The report would include the status of any investigation being conducted by the inspector general, responses to inquiries made by members of the Joint Committee on Transportation Oversight, and any other matters the committee deems appropriate. The inspector general would have the power to investigate and review any contract entered into between the department and other parties

 The inspector general also would investigate citizen complaints or employee complaints regarding the operation of the department. The legislation initially gave the inspector general subpoena power, but that provision was removed in the version of the bill passed by senators.

The act, in its original form, also would have required the inspector general to conduct performance audits and review the fiscal management of the MHTC. The performance audit provision also was removed from the bill.

Testifying for the measure was Estil Fretwell, representing the Farm Bureau, and David Smith, from the Missouri Transportation and Development Council. Both groups agree that some sort of reform must be passed by the legislature before Missouri voters will pass a tax increase for transportation.  However, both associations voiced their concern that an inspector general’s office – located within the Governor’s office – is not a good idea.  They believe this will only bring more politics into the department’s decision-making process.

During the committee hearing and again during the committee’s executive session on Feb. 20, several committee members raised concern that creating an inspector general position to monitor and watch over the operations and respond to complaints about the department is an ill-conceived plan and should not be allowed.

Dolan presented a substitute bill during the executive session that would still create an inspector general position within the Office of Administration, but it eliminated the performance auditing responsibilities and subpoena power. The changes were made to gain support for the legislation from the Senate.

The bill was passed out of committee by an 8 to 0 vote. The bill could go to the Senate for full floor debate as soon as next week. 

Dolan’s second proposal is outlined in Senate Joint Resolution 17, a proposed constitutional amendment to revise the current transportation funding structure in regard to various state agencies, pending voter approval. This resolution would eliminate non- highway agencies from receiving highway revenues beginning the first fiscal year following adoption of this resolution.

The state Highway Patrol would be exempt from the diversion the first fiscal year. Beginning the second fiscal year following adoption of the resolution, the amount of highway revenues appropriated to the state Highway Patrol would be reduced by 20 percent. For every subsequent fiscal year thereafter, the amount of appropriations shall be reduced an additional 20 percent so that by the sixth fiscal year following adoption of this resolution, the state highway patrol would not receive any appropriations from highway revenues. The resolution directs the current one-half of the proceeds from the tax on motor vehicles, trailers, boats, and outboard motors, which currently goes to the state’s General Revenue Fund, to fund the activities of the Highway Patrol. This redirection of funds would be phased in over a five-year period beginning the second fiscal year following the adoption of this resolution. The proposal will be heard in the Senate Transportation Committee next week.

HOUSE BUDGET COMMITTEE TRIMS MoDOT STAFFING LEVELS:  After spending several weeks listening to MoDOT officials explain the department’s budget, the House Appropriations Transportation and Economic Development Committee voted Wednesday, Feb. 19 to end debate on the subject. However, like so many other state agencies, MoDOT saw lawmakers cut its original budget request for fiscal year 2004 as the government continues to search for ways to weather tough economic times.

The House Budget Committee is recommending to the full House Budget Committee that MoDOT cut10 positions from the administration budget. The cuts, including salaries and fringe benefits, total $568,221.

In addition, the committee cut $42,560 in personal services and expenses and equipment from MoDOT’s multi-modal program.

In addition, the committee reduced Gov. Bob Holden’s budget recommendation for Amtrak by $3,875,000 from General Revenue and $25,000 from the state transportation fund. This would keep Amtrak funding for fiscal year 2004 at $5 million. Legislators have indicated this level of funding would continue to provide two round trip trains between Kansas City and St. Louis per day.

More details will be provided as the budgeting debate unfolds.

BILL COULD AFFECT MoDOT HEALTHCARE SYSTEM: Legislation that would create a new commission to plan and purchase healthcare benefits for all state employees, including MoDOT employees, was heard by the Senate Ways and Means Committee on Wednesday, Feb. 19. Senate Bill 450, sponsored by Sen. Jim Mathewson, D-Sedalia, would establish the commission within the Office of Administration.

Mathewson said he receives many inquiries from state employees asking why MoDOT, the Department of Conservation and the University of Missouri employees “get a better deal” than they do on health insurance. Mathewson testified that this bill would establish a commission to study the potential efficiencies of combining all the healthcare plans. He said if the study reveals that combining all the plans is a bad idea he would put a stop to the bill. Ken Hutchinson, from the University of Missouri, testified in opposition to this bill. Sen. Joan Bray, D-St. Louis, asked if other states have combined all state health plans. Greg Radner, Director of Medical Services, who testified in support of the bill, said that Georgia has combined all state health plans and that West Virginia and Delaware are looking at the possibility.

MoDOT believes this legislation would negatively impact the department as well as the Missouri State Highway Patrol (which is participates in the same health plan), because it would result in higher health insurance costs. The estimated cost increase for fiscal year 2005 would be $16,310,140 for MoDOT and $4,920, 583 for the Highway Patrol. That averages out to about $1,800 annually per employee.

The committee took no action on the bill.

SENATE PASSES TORT REFORM BILL OUT OF COMMITTEE: A tort reform bill that would benefit MoDOT was passed out of the House Judiciary Committee on Wednesday, Feb. 19. House Bill 273, sponsored by Rep. Richard Byrd, R-Kirkwood, addresses many issues including medical malpractice. The bill would benefit MoDOT because it includes a provision that would remove joint and several liability for MoDOT and the MHTC, which ultimately would reduce payments resulting from lawsuits involving the department.

The bill will now go to the House for debate.

LEGISLATION WOULD ALLOW SOME DISPUTES WITH MoDOT TO BE SETTLED THROUGH ARBITRATION: A bill that would allow certain disputes with MoDOT to be settled through arbitration was been referred to the House of Representative’s Small Business Committee. The legislation, House Bill 461, sponsored by Rep. Neal St. Onge, R-Ballwin, would require any dispute or controversy against MoDOT involving more than $25,000 and stemming from a contract award to be settled by arbitration. The negotiations would be administered by the American Arbitration Association in accordance with its Construction Industry Arbitration Rules. In addition, any judgment on the award rendered by the arbitrator may be entered in the Cole County Circuit Court.

FEDERAL TRANSPORTATION UPDATE:

FY 2003 TRANSPORTATION APPROPRIATIONS BILL WILL PROVIDE FUNDS FOR A NUMBER OF MISSOURI PROJECTS: Congress passed the FY 2003 transportation appropriations bill last week after an agreement was made to keep highway-funding obligations at $31.8 billion. The bill originally was planned for passage during the 107^th Congress but a disagreement between the House and Senate on the level to be set for highway funding obligations kept the bill stalled until the start of the 108^th Congress. The House Appropriations bill had established highway funding at $27.7 billion for FY 2003 while the Senate aimed to keep the appropriations bill at the FY 2002 level, $31.8 billion.  The bill now goes to President Bush for his signature. The president is expected to the sign the legislation in the very near future.

The following earmarked Missouri projects were included in the final appropriations bill:

Interstate Maintenance Discretionary

• Grandview Triangle, Kansas City:  $1,000,000
• I-44 Fenton Industrial Corridor, Fenton:  $250,000
• I-44 & US 65 Interchange:  $2,000,000

Bus & Bus Facilities

• Bi-State Development Agency Bus Replacement:  $3,000,000
• Ferguson Van Replacement:  $45,000
• Hazelwood Van Expansion:  $80,000
• Houston Buses:  $100,000
• Jefferson City Transit Bus and Van:  $500,000
• Kansas City KCATA Buses: $200,000
• Dunklin County, City of Houston, SE Missouri Transportation Service, Scott County, SEMO State University:  $2,250,000
• MO Statewide Bus and Bus Facility Projects:  $5,500,000
• OATS Bus and Bus Facilities:  $1,500,000
• Southeast MO Trans. Services Bus and Bus Facilities:  $500,000
• Southwest Missouri State University Intermodal Transfer Facility:  $3,000,000
• Springfield Public Utilities Buses:  $1,300,000
• St. Charles Buses and Equipment:  $245,000
• St. Joseph Buses:  $1,000,000
• Stoddard County Van:  $30,000

Transit/Rail

• St. Louis Metrolink, St. Clair Extension:  $3,370,000

Job Access and Reverse Commute Grants:

• Metrolink Corridor Access to Jobs:  $3,000,000
• Metropolitan Kansas City Job Access Partnership:  $1,000,000
• Missouri Statewide:  $1,400,000
• Ways to Work Missouri:  $225,000

Surface Transportation Projects:

• Highway 21:  $340,000
• Highway 19 Bridge Replacement, Hermann:  $2,000,000
• I-44, Phelps County:  $2,250,000
• Ogden Avenue Improvement/Renovation:  $1,000,000
• Springfield Regional ITS:  $1,500,000
• US 63/I-70 Interchange Improvements:  $10,000,000

GENERAL ASSEMBLY HEARINGS SCHEDULED:

House Hearings—

Committee: Appropriations – Transportation and Economic Development

Date: Monday, Feb. 24

Location: Hearing Room 7

Time: 11 a.m.

Bills to be heard:

Markup of the Dept. of Economic Development, Insurance, Labor & Industrial Relations, and Transportation.

Committee: Agriculture

Date: Tuesday, Feb. 25

Location: Hearing Room 1

Time: Noon

Bills to be heard:

HB 317 (Deeken) Establishes the rights of persons who utilize service animals.

Committee: Financial Services

Date: Tuesday, Feb. 25

Location: Hearing Room 6

Time: Noon

Bills to be heard:

HB 437 (Luetkemeyer) Modifies various provisions relating to the health insurance pool.

Committee: Transportation and Motor Vehicles

Date: Wednesday, Feb. 26

Location: Hearing Room 7

Time: Noon

Bills to be heard:

HB 137 (Crawford) Requires operators of motorcycles and motortricyles who are under the age of 21 to wear protective headgear.

HB 140 (Crawford) Reduces the fine for failure to wear protective headgear when operating a motorcycle.

HB 327 (Lipke) Requires the Department of Transportation to consider highway access in determining damages when exercising eminent domain.

HB 371 (Dusenberg) Revises the law on hazardous waste carriers.

HB 389 (Walsh) Requires headlamps on motor vehicles to be lighted during inclement weather.

Senate Hearings—

Committee: Governmental Accountability & Fiscal Oversight

Date: Monday, Feb. 24

Location: SCR 1

Time: 11 a.m.

Bills to be heard:

SB 544 (Gross) Creates the Missouri Sunset Act.

Committee: Ways and Means

Date: Tuesday, Feb. 25

Location: Senate Lounge

Time: 5 p.m.

Bills to be heard:

Executive session on SB 291 and SB 450