Transportation Legislation Review Committee (07/20/2012)

Final
STAFF SUMMARY OF MEETING

TRANSPORTATION LEGISLATION REVIEW COMMITTEE

Date:	07/20/2012	ATTENDANCE

Time:	09:38 AM to 03:16 PM	Barker	X
		Brown	X
Place:	HCR 0112	Fischer	X
		Hamner	X
This Meeting was called to order by		Jones	X
	Senator Hudak	King S.	X
		Looper	A
This Report was prepared by		Newell	X
	Erin Vanderberg	Priola	X
		Ramirez	*
		Renfroe	X
		Schwartz	X
		Scott	A
		Spence	A
		Tyler	X
		Williams A.	A
		Williams S.	A
		Young	*
		Vaad	X
		Hudak	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
Call to Order Colorado Department of Transportation (CDOT) Report Colorado Motor Carriers Association (CMCA) Presentation Public Comment Department of Revenue (DOR) Report House Bill 10-1113 Report on the Ports of Entry Adjournment		Committee Discussion Only Committee Discussion Only Committee Discussion Only Committee Discussion Only Committee Discussion Only Committee Discussion Only Committee Discussion Only

09:38 AM -- Call to Order

Senator Hudak, chair, called the meeting of the Transportation Legislation Review Committee (TLRC) to order. A quorum was present. Committee members made opening comments. Committee members received a memorandum providing information on the TLRC's Statutory Authority and History (Attachment A).

09:45 AM -- Colorado Department of Transportation (CDOT) Report

Mr. Ben Stein, Chief Financial Officer for CDOT, and Mr. Tim Harris, Chief Engineer for CDOT, introduced themselves to the committee and circulated a handout of their PowerPoint presentation (Attachment B). Mr. Harris began the presentation by discussing the Five-Plus-One plan -- five external initiatives and one internal initiative; bridge enterprise; and the partially-covered lowered alternative on I-70 East. Presenters responded to committee questions related to the I-70 East project about routing, expense, location, concept, design, assessment, priority of the project, and projected costs.

09:58 AM

Mr. Tony DeVito, Region One Transportation Director for CDOT, addressed the committee on issues related to I-70 West. He discussed the feasibility study which deemed the zipper lane unfeasible, and stated that the focus of the I-70 West project is now on the twin tunnel widening project between Idaho Springs and Floyd Hill. He explained that CDOT's ultimate goal is to break ground in April 2013 and be open to traffic by October 2013. Mr. DeVito responded to questions from the committee concerning the concept, the managed lane and corresponding toll, effect on traffic, detours, communication efforts with the public, and construction signage.

10:09 AM

The committee discussed ensued concernign the I-70 West twin tunnel projects' managed lane and funding sources. Mr. Stein stated that the federal TIGER grant funded $15 million of the $44 million project, while the Denver Regional Council of Governments (DRCOG) and local governments have contributed the rest. Mr. Stein stated that projections indicate that revenues generated from the hot lane tolls will finance operations and maintenance of the hot lanes. Committee questions ensued concerning hot lane revenues on I-25 and U.S. 36.

10:16 AM

Mr. DeVito continued his presentation on the I-70 West initiatives, including a mobile application that will launch in August 2012.

10:19 AM

Mr. Harris introduced other corridor projects including North I-25, U.S. 36., Colorado Springs' North I-25, and the SH 82 Grand Avenue Bridge in Glenwood Springs. Mr. Harris responded to questions from the committee about projects on I-225 and on the timing and scope of the Glenwood Springs project.

10:24 AM

Mr. Stein discussed CDOT's definition of indirect costs.

10:34 AM

Mr. Stein continued to answer questions from the committee on indirect costs and project prioritization, particularly for rural parts of the state.

10:36 AM

Mr. Stein discussed the contract improvement initiative, which aims to improve efficiency of contract approval through technology and communication efforts. Mr. Stein discussed the implementation of House Bill 11-1002, which required CDOT to create a searchable on-line database for revenue and expenditures. Mr. Stein responded to questions from the committee on CDOT's process behind the contract improvement initiative.

10:42 AM

Mr. Mark Imhoff, Director of CDOT's Division of Transit and Rail, discussed the division's recent accomplishments with the committee. Specifically, Mr. Imhoff discussed grant process improvement efforts and the completion of the Colorado Passenger & Freight Rail Plan. Mr. Imhoff responded to questions from the committee related to the Regional Transportation District's (RTD) FasTracks program. Mr. Imhoff discussed the Interregional Connectivity Study and the I-70 Mountain Corridor Advanced Guideway System (AGS) Feasibility Study. Mr. Imhoff concluded his presentation by addressing the division's 2013 goals to develop new transit grant module, respond to new federal MAP-21 changes, and to initiate a State Transit Plan.

10:53 AM

Mr. Imhoff responded to questions from the committee on the utilization of mountain rail lines, the reconstruction of the 16th Street Mall, and the division's relationship with RTD. Committee discussion ensued on the need for additional conversation on CDOT's Strategic Plan (Attachment C).

11:03 AM

Committee discussion continued on CDOT's strategic plan.

11:12 AM

Mr. Stein continued his presentation on the uses of transportation funding and CDOT's budget. Mr. Stein noted that CDOT has modified the nomenclature of its strategic plan and expanded the categories from safety, system quality, mobility and program delivery, to maintain, maximize, expand, deliver, pass-through funds, contingency and debt service. Mr. Stein responded to questions from the committee.

11:25 AM

CDOT concluded its presentation with a brief explanation of inflation's effect on its funding and the impacts that federal legislation, known as MAP-21 (Moving Ahead for Progress in the 21st Century), will have on state transportation projects. Committee members made closing remarks.

11:29 AM -- Colorado Motor Carriers Association (CMCA) Presentation

Mr. Greg Fulton, Executive Director of the CMCA, and Mr. RJ Hicks, Executive Director of the Western State Transportation Alliance (WSTA), introduced themselves to the committee. A handout was distributed to the committee (Attachment D). Mr. Fulton stated that in 2011, trucks transported more than 7.7 billion tons of freight and that 90 percent of the manufactured freight commodities are transported by truck. He commented that trucking employed almost 90,000 people in 2011 in the 17,330 trucking companies located in Colorado. He discussed trucking jobs in Colorado, including average salaries and tax revenues generated by the trucking industry, and provided examples of vendors and businesses that support trucking in the state. He discussed the impact of state taxes and fees on the trucking industry. Committee discussed ensued concerning state taxes and fees.

11:45 AM

Senator Newell asked for information concerning state taxes. Mr. Fulton commented on the need to restructure the specific ownership tax (SOT), particularly in regard to commercial vehicles. He discussed the status of the trucking industry in Colorado in relation to neighboring states.

11:48 AM -- Mr. Fulton commented on truck safety and said that safety in the trucking industry has consistently improved over the last 20 years. He stated that the trucking industry paid $402 million, or 36 percent, of Colorado's federal and state roadway taxes and fees in 2009. He commented on CMCA's strategies and actions regarding I-70. He further discussed key issues and concerns for Colorado trucking companies, including truck driver shortages. He discussed actions that would improve the business environment for trucking operations, including recruitment and training programs for drivers and modifying the tax and fee structure. He discussed an idea for legislation for consideration by the TLRC to require noncommercial vehicles to have adequate snow tires or traction devices during inclement weather conditions and increase penalties for drivers of noncompliant vehicles in certain circumstances. Senator Newell asked for more information concerning job loss data. Senator Schwartz asked for staff to analyze the SOT in Colorado and neighboring states. Mr. Fulton commented that the CMCA has data concerning the SOT and will coordinate with Legislative Council Staff concerning Senator Schwartz's request. Representative Tyler asked for a proforma income statement for a tractor doing over the road hauling.

12:11 PM -- Mr. Hicks distributed a copy of his presentation to the committee (Attachment E). He discussed the WSTA mission and major transportation issues in the western states, including funding systems and uniformity of laws and regulations. He commented on transportation funding and the need for state flexibility in spending. He stated that a long-term trust fund commitment is needed at the federal level. He discussed the gasoline tax and stated that WSTA strongly supports the federal and state funding of the transportation system. He commented that the transportation industry would support a gas tax increase, according to WSTA. He discussed three WSTA efforts in 2012:

oil field hours of service rulemaking process;
support western-permitted transformational vehicle use by the United States Department of Transportation; and
develop regional model legislation with Independent Contractors in the transportation industry.

12:19 PM

The committee recessed.

01:13 PM -- Public Comment

No persons signed up for public comment.

01:30 PM -- Department of Revenue (DOR) Report

Mr. Mike Dixon and Ms. Maren Rubino, the Department of Revenue (DOR), introduced themselves to the committee. Mr. Dixon presented a departmental update (Attachment F), beginning with changes in the department's organizational chart. He noted that, effective July 1, 2012, the ports of entry moved to the Colorado State Patrol (CSP). Discussion ensued concerning the division's funding and accomplishments for 2011. Representatives Vaad and Ramirez asked for further detail on revenues, including gas taxes. The DOR agreed to follow up with the committee.

Senator Renfroe suggested the committee ask the Colorado Department of Public Health and Environment to come in and make a presentation about air quality from wild fires and compare that with the emissions testing data. Senator Hudak asked staff to contact the department.

Mr. Dixon continued his presentation, stating that drivers license issuances increased by 15 percent last year. He said he believes the increase is due to renewals since licenses are now renewed every five years rather than every 10 years. Senator King asked about wait times for people that come into an office to obtain a drivers license. Mr. Dixon responded that there was a survey last year which showed that wait times are currently about one hour. The survey was done as part of the "Wait Less" project that is currently in place in the Anthmar and Lakewood offices. The department's intent is to implement the "Wait Less" system in 11 additional offices in the Denver Metro area. Senator King asked why the project is only focused on the Denver Metro area and Mr. Dixon responded that the majority of the volume is in the Denver Metro area, but they will be looking at the rural areas, too. He indicated that "Wait Less" has reduced wait times to 15 minutes for persons who have made an appointment.

Mr. Dixon reviewed the division's strategies to make improvements to its service delivery, including various technology projects. Senator Schwartz asked about the "Offender ID LEAN" project. Mr. Dixon responded that this is a joint Department of Corrections (DOC) and DOR project to get identification to offenders before they leave a correctional facility. There was a fixed site in Canon City, but Mr. Dixon said this location was closed when it proved inefficient. Ms. Laurie Benallo of the DOR came to the table and said that staff of the DOC is now working with offenders when they enter the facility to process on-line renewals, where feasible. She said that if an offender does not have a document or is not otherwise eligible to renew their identification on-line, state law allows them to be obtain a document free of charge upon their release.

02:10 PM

Ms. Maren Rubino provided an overview of Colorado license plates, including new plates created during the 2012 legislative session (Attachment G). She said there were two new military license plates and five new group special license plates added to Colorado's inventory in 2012, and that the department is focused on inventory management and collaborating with the Office of Information Technology, DOC, and county offices to create "print on demand" plates. According to Ms. Rubino, this would create a process for citizens to obtain a temporary permit until the DOC processes the request. Once the programming aspects are resolved, the DOC would send out the plate and registration at the same time.

Representative Priola asked for information about the threshold for removing a license plate from inventory. Ms. Rubino responded that 3,000 license plates must be sold by the time frame included in the plate's enacting legislation. She mentioned that very few license plates have been repealed. Ms. Rubino provided an update on alternative fuel vehicles, including low-speed electric vehicles. The department provided some recommendations for potential legislation around outdated language, which the committee discussed.

02:33 PM

Mr. Greer Bailey of the Petroleum Marketing Association came to the table at Senator Schwartz's request and reviewed fuel and vehicle taxes, including taxes paid on alternative fuel vehicles. According to Mr. Bailey, electric vehicles do not pay fuel taxes currently and there is no statutory authority to allow retailers to collect excise taxes. He continued that compressed natural gas (CNG) vehicles currently do pay taxes. Senator Schwartz asked for clarification about whether CNG vehicles are taxed through the decal program or at the pump. Mr. Bailey said he believes that at times CNG vehicle owners may be double taxed. He said he believes the decal program should go away so retailers can assess the taxes uniformly, minimizing confusion.

02:40 PM -- House Bill 10-1113 Report on the Ports of Entry

Major Mark Savage, Colorado State Patrol (CSP), introduced himself and reviewed the transfer of the ports of entry (POE) from the DOR to the CSP that occurred on July 1, 2012. According to Major Savage, the transition went smoothly, although ongoing efforts will be required to monitor the integration of the POE within CSP. As an example of these efforts, he mentioned that the CSP is conducting a training next week to train POE personnel to consistently enforce and communicate POE rules to motor carriers and other customers at all locations. Major Savage said another focus for the CSP is to ensure that the collection of revenues continues and is consistent with the policies of the Department of Revenue. Regarding facilities, he said the CSP is looking at opportunities to co-locate state offices. Major Savage also discussed several technology enhancements and outreach efforts to get feedback and share information with stakeholders.

Representative Vaad asked for clarification about whether POE officers can serve as peace officers and if there are plans to have these persons obtain Peace Officer Standards Training (P.O.S.T.) certification. Major Savage responded that POE officers may currently act as peace officers in conjunction with their POE duties, but there are no plans to expand statutory powers and duties of POE officers.

Representative Young asked about the stakeholder process for the transition and whether it included owner operators. Major Savage said they are not as active in Colorado, but they have been contacted about the transfer and consolidation at a national level. R.J. Hicks commented on the professionalism of the Colorado State Patrol in carrying out the transfer.

02:58 PM -- Adjournment

Senator Hudak expressed concern about not having enough committee time available to discuss potential legislation and topics of interest to the committee. Senator Hudak asked Kelli Kelty, Legislative Council Staff, to discuss the requirements for legislation. Ms. Kelty reviewed the drafting deadlines and clarified that Legislative Council is meeting on October 15. The committee discussed potential upcoming meeting dates and meeting topics.

03:16 PM

The committee adjourned.