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Minutes for SB192 - Committee on Transportation
Short Title
Authorizing the secretary of transportation to designate toll projects on new and existing highways and changing the requirement to fully fund toll projects solely through toll revenue.
Minutes Content for Thu, Mar 7, 2019
The Chairperson called the meeting to order at 8:31 a.m. and opened the hearing on SB192. He requested a briefing from Assistant Revisor Chris Waggoner. Mr. Waggoner commented that, when funds for construction of a free expressway are not available, the bill allows construction of a toll expressway to be financed partly, rather than entirely, through tolls and other income from operation of the project. He noted that current law permits the Secretary of Transportation to conduct a feasibility study and make recommendations regarding a proposed toll project, but the Secretary is not allowed to implement the project. This bill will remove that restriction.
The Chairperson welcomed the first conferee, Julie Lorenz, Acting Secretary of Transportation. Secretary Lorenz testified in support of the bill; she stated that the bill modernizes the use of tolls in Kansas and is a response to the Kansas Legislative Transportation Vision Task Force recommendations to offer local governments an additional funding option for transportation projects. She noted that the bill provides tolling as a tool where it is feasible and locally accepted.
Secretary Lorenz explained that the bill makes two changes to current law to provide more flexibility:
- It would allow tolling to cover a portion of project costs where funding is inadequate; and
- It would allow KDOT not only to determine feasibility for a local toll project, but implement tolling as a part of the funding package.
Such changes, Secretary Lorenz commented, would allow a proposed project for which tolls would not pay all costs to go forward, thus improving traffic flow. She also suggested an amendment to the bill requiring the State Finance Council approve any tolled project (Attachment 1).
Michael White, Executive Director, Kansas Contractors Association, spoke in support of the bill (Attachment 2). He said that the bill will provide another tool to assist in providing quality roads for Kansas.
Jason Watkins, Wichita Regional Chamber of Commerce, testified in favor of the bill; he commented that the bill adds another tool to assist local entities to improve highway safety (Attachment 3). He cited two areas in Wichita where traffic flow creates dangerous congestion and needs to be addressed, and he commented on a proposed bypass that is awaiting funding--specific situations that the bill could mitigate.
Scott Heidner, Executive Director, American Council of Engineering Companies, testified as a proponent (Attachment 4). He stated the bill is a good economic development tool that offers new opportunities for job creation. He noted that the bill is drawn narrowly enough so that it does not promote open-ended funding. He also offered support for the proposed amendment.
Adam Stodola, Kansas Society of Professional Engineers, provided additional support for the bill (Attachment 5). He said that the bill would be an additional tool for increasing traffic capacity; it also would add flexibility for going forward with highway projects.
Conferees responded to members' questions:
- Fees should not be under the sole authority of the Secretary; however, the Secretary should be involved in discussions about fees. (Secretary Lorenz)
- Tolls should not be the exclusive funding for any project, but should be included as one consideration in judging the feasibility of a project. (Secretary Lorenz)
- This bill will give local communities an additional option for building a more efficient system. (Secretary Lorenz)
- The bill requires that the Secretary include all stakeholders in a feasibility study and in selecting options for going forward with a project. The Secretary would be authorized to go forward with a project if the preponderance of support comes from the local community. (Secretary Lorenz)
- KDOT develops a framework for projects, after which the Legislature provides funding. A detailed project list is then created. (Lindsey Douglas, Deputy Secretary of Transportation)
A member expressed concern about who will make final decisions regarding proposed projects and, if there are toll roads, who will manage them. Another member expressed concern that the bill is too broad and authorizes wide authority for the Secretary; priority should be given to the Legislature for signing off on specific projects.
The Chair referenced the following proponents who provided written-only testimony:
- Curtis Sneden, Senior Vice-President, Greater Topeka Chamber of Commerce (Attachment 6);
- Whitney Damron, Kansas Good Roads (Attachment 7);
- Kevin Walker, Overland Park Chamber of Commerce (Attachment 8).
- Jacqueline Clark, Ash Grove Cement Company (Attachment 9)
Tom Whitaker, Executive Director, Kansas Motor Carriers Association, presented testimony as an opponent to the bill (Attachment 10). He outlined his concerns and recommendations regarding the bill. Among them:
- Add language to prohibit tolls on existing highways;
- Require all vehicles to pay tolls, not selected vehicles;
- Allow tolls to be allocated only for a specific project, not general use;
- Restrict Kansas Turnpike toll revenue to be used only on the Kansas Turnpike; and
- Direct final approval for future toll projects to the Legislature, not the Kansas Turnpike Authority (KTA).
Mark Augustine, President, Triplett 24-7 Travel Stores in Kansas, also spoke against the bill (Attachment 11). He noted that, when toll roads are created, commercial revenue is eliminated. He cited the turnpike through Lawrence showing the negative effect the toll road has on commerce and the positive effect of new stores being built along U.S. 54.
Neutral testimony was provided by Steve Hewitt, CEO, (KTA) (Attachment 12). The Chairperson invited Mr. Hewitt to offer further comments. Mr. Hewitt noted that the trend in highway construction is moving toward new roads being funded by multiple sources, including toll fees. Responding to a question, Mr. Hewitt said that the KTA is currently prohibited by statute from being involved in highway projects outside the KTA scope of authority.
The meeting was adjourned at 9:25 a.m. The next meeting is scheduled for Tuesday, March 12, 2019.
