Transportation

1. New Governor’s Directive to TXDOT. It is less than an excutive order, more than cocktail conversation, but will:
   1. Require the identification of the state’s most congested chokepoints
   2. Address the chokepoints by working with transportation planners and local communities
   3. Goals: reduce congestion & get new roads built as soon as possible.
2. Building roads is economic development & creates jobs
3. Congestion has an economic impact of over $1,000 for the average “rush hour” commuter 
4. Texas has dedicated more than $4 billion a year to build more roads without raising taxes, fees, tolls or debt
5. Road construction needs trained workers too. Texas is making 4-year degrees more affordable & accessible. 

Governor Abbott: Governor Abbott Addresses Transportation & Infrastructure Summit, Issues Directive To Transportation Commission To Reduce Congestion

The hot legal question for ride share drivers is– Are they employees or independent contractors? A regulatory authority in California has rule don individual cases saying drivers are employees, but court consensus is coming.

U.S. Court of Appeals for the Ninth Circuit will hear an appeal from Uber against certifying a class action lawsuit by drivers. The issue before the appellate court is supported by the argument that whether drivers are employees or independent contractors is :

• a case raises “urgent [legal] questions” 
• the ride share business is a “burgeoning on-demand economy”
• because of this it is too important to leave to a single jury

The Recorder

Wind energy is providing added revenue to the Port of Corpus Christi. But there is a cost- the Port is running out of space to take in wind propelers and turbines.

The loading and unloading areas for turbines, blades and other wind-energy equipment take massive amounts of space.

The American Wind Energy Association says Texas ranks #1 in the country for both installed and under-construction wind capacity.

• 18,000 wind-related jobs
• Wind energy industry last year invested $3 billion in Texas
• Texas is home to at least 46 wind energy manufacturing facilities

Corpus Christi Caller Times: Wind energy is making storage space scarce

Ellis County Commissioners are considering a county child safty fee of $1.50. 

The Question posed to the Attorney General: What can a county do with this local county safety registration fee?

What’s the beef? This is all about revenue sharing. Do the counties need to share with municipalities?

What’s happening with this revenue now? 2 approaches after deducting the county administrtive costs:

(1)  the county may use revenue generated from the fee for purposes permitted by Article 102.014(g), Code of Criminal Procedure, without sending any portion of the fee revenue to the municipalities. 

(2) the county also gets to deduct fee revenue proportional to the percentage of county residents living in the unincorporated areas, the remainder of the fee revenue must be se t to the municipalities according to their population 

Opinion Request RQ-000520KP

This year Georgia tinkered with its gas tax to address a transportation funding deficit.

Georgia’s Gas Tax Reform looks like this: “Drivers pay 26 cents for every gallon of unleaded gasoline and 29 cents per gallon for diesel fuel. The new single fuel tax replaced a system of excise and prepaid local and state taxes.”

Georgia threw in some other tax reforms too:

• A new $5 nightly fee on hotel and motel overnight stays generated $14.9 million in revenues last month. 
• A new highway impact fee generated $844,000 last month

Revenues Went up in year to year comparison: 13.6% increase

Gwinette Daily Post: Deal: State revenues up 13.6 percent in August

What’s this about? The Alamo Area Metropolitan Planning Organization is working on plans to grow 281. Part of their plan was to add new toll lanes to 281.

Tolls are very controversial. Tolls don’t have favored nation status in Texas. Grass roots groups like Texas TURF were strongly opposed. 

Mr. Speaker commented:  “Today the Alamo Area MPO took a very positive step toward improving mobility in San Antonio. This vote shows that local and state officials are working together to address our transportation needs and relieve congestion in a responsible way. I want to thank the members of the MPO for taking this meaningful vote, and I look forward to working with them further to begin the expansion of Highway 281.”

Speaker Straus Press Release

Tennessee is primed to be the next state to support gas tax reform. Here’s what’s happening in the home of the Volunteers:

• Republican Governor supports gas tax reform
• State Comptroller report says the gas tax isn’t meeting transportation needs  
• Transportation Coalition of Tennessee formed 
  • its a bunch of organizations representing construction, local governmental entities, engineers, American Heart Association, AARP and more

To meet the 20 cent level of 1989, the new gas tax will need to be 38 cents.

Nashville Business Journal: Call for changes to state’s fuel tax gaining momentum

Texas Central Rail CEO Tim Kieth says the remaining steps to move forward on high speed rail are:

•  the environmental impact statement approval focus of the next next 90 to 180 days
• need to conclude work with the Federal Railroad Administration “as it relates to our rules for operating the high-speed rail system,” 

Two potential snags:

• farmers and ranchers who are unwilling to sell land
• Texans Againt High Speed Rail say the problems are 3 fold: Budget viability, eminent domain and the inevitable taxpayer subsidy
   

KTRH

Background: For the first time in more than 100 years, we have a new border bridge for trains. Safety first.

3 Points of the Trasnportation Agreement with Mexico:

• Goal: promote and increase bilateral collaboration on future border infrastructure projects
• This is tied to energy. Hello, Mexico energy deregulation, how you doin’?
• This is about 3 other things
  • ​encourage economic development
  • facilitate bilateral trade
  • cooperative border security.

Governor Abbott: Governor Abbott Signs Transportation Agreement With Mexico; Announces Energy Task Force

• The TTI study is going to factor into 2017- big time. See their recommendations from a few weeks ago below.
• The Committee focused on the value of transportation funding- especially, in 1991 20cents to transportation now = 6.8 cents for transportation today
  • Chair Simmons pointed out that the state has added funding
• 7 states recvently indexed gas tax- its trending- big time- even in Republican states
• 40% of transportation funding should be local government funding
  • Collin County Judge who testified after TTI noted 40% seemed high
  • The Collin County Judge supports transportation reinvestment zones for transportation funding. 

Information Intelligence on August 27, 2015:

Better economy breeds worse traffic. Rest assured, the Texas A&M Traffic Institute is tracking what states are doing about gridlock. See their list. More importantly, here are the strategies they suggest to counter congestion:

• greater transportaiton investment
• Fix existing roads & bridges
• Increase public trnsportation accessibility
• Fixing congestion is a LOCAL decision that needs LOCAL solutions
• Add capacity to critical corridors
• Give travelers options of multiple routes
• Support denser development for land use

WallStreet Journal

Texas A&M Transportation Institute 2015 Mobility Study

Taxis have sued Florida’s Department of Agriculture and Consumer Services claiming that ride share apps should be regulated (read: inspected) just like cab meters.

By not regulating the ride share apps, the taxi companies argue that Florida has created a competitive disadvantage.

A similar lawsuit has had success in California.

Governing: Cab Companies Sue Florida Over Uber, Lyft

• Its how Texas utilizes its funding that matters, “The Legislature provided significant new resources for transportation this year,” said House Speaker Joe Straus, San Antonio. “But it’s just as important to make sure that those resources are used in an appropriate and efficient way that will relieve congestion in the state. That’s why House Bill 20 was important.”
• Texas is increasing transportation funding. “Over the last two sessions, the Legislature has acted to increase transportation funding by more than $4 billion per year without higher taxes or fees.”
• Priorities matter.  Its funding + prioritization of projects= good transportation system. 

HB 20 Report

Speaker Straus Press Release

Google will be testing its driverless cars in Austin soon. And, Google wants your feedback, because we all love answering surveys.   Austin Business Journal

This week, the New York Times, shared that the problems that driverless cars face is cars with drivers, because ““The real problem is that the car is too safe.”

Laura Ryan

• Vice President of Market Representation and Dealer Development for Gulf States Toyota
• Volunteers for the National Charity League, Northwest Assisted Ministries, Operation Interdependence, Boys and Girls Country of Houston Inc., and Habitat for Humanity of Cypress.
• Attended Penn State University

Guillermo “Memo” Trevino

• President of Southern Distributing, a multi brand beer and soft drink distributor.
• Serves on the Board of Directors of BBVA Compass USA, the Board of Trustees of Rice University, and is current President of the Boy’s and Girl’s Clubs of Laredo, Texas.
• He previously served as a Director of the San Antonio Branch of the Dallas Federal Reserve, a member of the Board of International Bank of Commerce & former president of the Laredo Chamber of Commerce, the Laredo Development Foundation, the Washington’s Birthday Celebration Association, and as Jefe de los Caballeros de la Republica del Rio Grande.

Gary M. Swindle

• 33 year veteran of the Tyler Police Department and has served as the Chief of Police since 2000, and is a graduate of the Federal Bureau of Investigations (FBI) National Academy and the Bill Blackwood Law Enforcement Management Institute Command College.
• Member of the International Association of Chiefs of Police (IACP), FBI National Academy Associates of Texas, Texas Police Chiefs Association, Texas Police Association, Smith County Peace Officers Association, East Texas Peace Officers Association and East Texas Violent Crimes Task Force.
• President of the Tyler Sister Cities, president of Tyler Police Foundation, board member of the Children’s Advocacy Center of Smith County, board member of East Texas Crisis Center, member of the Tyler Junior College Criminal Justice Advisory Board and ex-officio board member of the Tyler Chamber of Commerce.

Governor Abbott Appointment

According to updated data from the Census Bureau, states and local governmental entities, which collectively spent an estimated $252 billion last year, are also investing more in public infrastructure this year.

• Road and transportation construction claim $30 billion of state and local spending.
• Stadiums and sports areas claim under $2 billion. 

Governing

• Schwertner says the trains can’t provide an economic development benefit to affected landowners in 11 counties, of which five are in his district.
• Schwertner says if TCR gets it built and they run out of money, there are 40 House members from Houston and 40 more from the Dallas-Fort Worth area that will vote to keep the trains running.

WTAW summarizing Senator Schwertner’s comments to a local Chamber of Commerce

“The Regional Transportation Council earlier this month agreed to pay $4.5 million through 2018 to keep up planning efforts on the portion of the proposed bullet train system that would connect Fort Worth, Arlington and Dallas.”

What’s the source of the funds? “The council decided to use $4.5 million in surplus revenue collected from the region’s toll roads.”

FW Star Telegram: North Texas puts up more high-speed rail money  Science Blog

The first train bridge in 100 years is now open between Mexico and the US. 

Statesman

 May 7, 2015, Information Intelligence:

Cameron County Judge Suplevada announced that the new US-Mexico bridge will open in July. Background:

• The new US- Mexico bridge is the first in 100 years
• It’s original opening date was April 2015
• What’s holding up the bridge: an x-ray unit that was relocated on the Mexican side
• Union Pacific will operate rail movements on the US Side
•  Kansas City Southern Mexico will run rail movement on the Mexico Side

Rio Grande Guardian 

55% of Phoenix voters approved a $31.7 billion transportation bond package that will add:

•  Triple Valley Metro’s light rail system
• Add more buses
• More city street upgrades
• 1,150 Miles of Bike Lanes
• 170 Miles of Sidewalks

The bond package will be backed by:

• The city’s transportation sales tax will go to 0.7% from the current 0.4%
  • Except for​transactions over $10,000, which are exempted
• $5.1 billion of ​​Transit fares 

The financials are:

• $2.9 billion for debt service and a reserve fund. 
• Bus and bus rapid transit will get $17.5 billion
• $11.9 billion dedicated to maintaining the current level of service
• $1.9 billion allocated to new and extended bus routes.
• $8.9 billion for rail projects includes:
  • $6.7 billion for 42 miles of new line and
  • $2.2 billion for upkeep of the current 20-mile.
• Phoenix will devote $2.4 billion from the 35-year program to city streets.
• Major street and bridge projects are funded at $280 million.

​BondBuyer

The Houston Chronicle reports this week that Central Texas Rail is moving to identify landowners to negotiate with after last week’s FRA report affirming a preferred straight route for the high speed rail.

Houston Chronicle  See Also: Houston Press  Dallas Morning News  Dallas Business Journal  

August 18, 2015, Information Intelligence:

The Federal Railroad Administration issued a report on the proposed path of the Texas Central Rail. Nothing salcious. But, here’s the next steps:

• FRA will conduct a 2nd screening analysis
  • to identify & evaluate potential location alignments
  • and whether the corridor alternatives analysis is feasible & reasonable

FRA Report

Los Angeles voted this week to approve ride share permits for airports. The measure passed 9-6.

What new regulations will apply to ride share and/or taxis/Limos?

• LA City Council is formally asking the state PUC, which has rule making authority over ride share, to “add fingerprinting as a part of the required background check process for all for-hire drivers, including those operating limousines, shuttles and ride-hail cars.”
• As a back-up, the city is researching its authority “to require fingerprint background checks for ride-hailing services if state regulators fail”

What was the airport’s position? Ride share is more like limos than taxis and limos do not have background checks required.

Los Angeles Times

Rep. Joe Pickett, Chair

Members include:

• Reps. Larry Phillips of Sherman
• Armando “Mando” Martinez of Weslaco
• Ron Simmons of Carrolton
• Lyle Larson of San Antonio
• Paul Workman of Austin
•  Debbie Riddle of Houston
• Armando Walle of Houston
• James White of Hillister.

The select committee is the result of 2015’s HB 20 by Simmons. The Selecgt Committee will:

• review and evaluate transportation revenue projections
• funding categories and project selection criteria
• rules for project prioritization
• methods of financing
•  performance evaluation metrics and measurement tools.

Rep. Simmons Press Release   Rep. Workman Press Release

California is limiting the rebate it gives for hybrids. If you earn more than $500,000 per year, no rebate for you! Tax groups label the rebate, “welfare for the rich.”

How does California fund the electric car subsidies? A surcharge on vehicle registration fees and a portion of the smog fee 

California’s Policy Goal: Rapidly increase the percentage of zero-emission vehicles in the state

What’s the program cost so far? $242 million in rebates awarded to 114,702 Californians, mostly in the L.A. area

What percentage of Teslas are in the mix? 15% of rebates go to Tesla owners

Los Angeles Times

Better economy breeds worse traffic. Rest assured, the Texas A&M Traffic Institute is tracking what states are doing about gridlock. See their list. More importantly, here are the strategies they suggest to counter congestion:

• greater transportaiton investment
• Fix existing roads & bridges
• Increase public trnsportation accessibility
• Fixing congestion is a LOCAL decision that needs LOCAL solutions
• Add capacity to critical corridors
• Give travelers options of multiple routes
• Support denser development for land use

WallStreet Journal

Texas A&M Transportation Institute 2015 Mobility Study

3 states in recent months have strengthened regulations for tranporting oil via train. The states:

• Pennsylvania
• Oregon
• Washington

What do the new regulations do?

• greater policing of oil shipments through inspection, regulation and even lawsuits
• Washington added a 4-cent-per-barrel tax on oil moved by trains to help pay for clean up from any accidents or derailments.
• require freight rail companies to notify local emergency personnel when oil trains would pass through their communities.

Governing

Tennessee Governor Bill Haslam (R) is proposing the state increase the state’s 21.4 cents-per-gallon gas tax. The current combined, federal and state, gas tax is  39.8 cents per gallon.

Tennessee Senate Speaker Ron Ramsey (R-Blountville) says “If there’s a basic function of government, it is to build infrastructure.”

The Hill

Utah lawmakers reformatted transportation funding in 2 significant ways:

• Utah raised the state gas tax to 12 percent
• Utah also bolstered the gas tax with an inflation-tied trigger for automatic increases
• The revised gas tax has  a floor of 29.4 cents per gallon
• It has a ceiling of 40 cents per gallon.
• Local voters are limited to adding a 0.25 cent sales tax split between city and county transportation and transit needs.

An Arizona Senator said of Utah,

“In 22 states, and mostly red states, the legislatures raised gas taxes,” said Farley. “We need to do a whole lot for Arizona (transportation). The federal government is not going to get its act together.”

Phoenix Business Journal

Missouri Petroleum Marketers and Convenience Store Association is promoting an initiative to significantly raise tobacco taxes. The details:

• A proposed 135% tax increase
• The funding will allow for top priority safety projects to be done like unsafe bridges and roads
• The funding would be effective 1/1/17

WGEM.COM: Proposed tobacco tax hike in Missouri could help area roads

St.Louis Post- Dispatch

“There has been some discussion about a portion of that tax being diverted away from highway construction. We were able to stop that in the current budget. That is approximately $650 million per year that will be spent on highway maintenance and construction,” Wray said. “That was an item and topic that I heard a lot about on the campaign trail. I am happy to report to you that we were able to end that diversion.”

Waxahachie Daily Light

Missouri Supreme Court struck down red light cameras this week. The rational:

• One of the city ordinances stated no points would be applied against the person fora  red light camera violation, but that conflicts with state law requiring points for moving violations.
• Another city ordinance unbconstitutionally shifted the burden of proof of that the moving vioaltion occurred onto the defendant.

Courts have also halted red light camera use in Florida. Illinois & California have upheld the use of red light cameras while Ohio is facing an ongoing legal challenge.

Wall Street Journal  Kansas City Star  St. Louis Post-Dispatch 

The Federal Railroad Administration issued a report on the proposed path of the Texas Central Rail. Nothing salcious. But, here’s the next steps:

• FRA will conduct a 2nd screening analysis
  • to identify & evaluate potential location alignments
  • and whether the corridor alternatives analysis is feasible & reasonable

FRA Report

A group of former CEOs and executives formed a group that thought it would support high speed rail for the economic devleopment opportunities for Ellis County.

Once it was determined that Ellis County wouldn’t see economic development as the train speeds through, the group shifted course to killing high speed rail.

The group wants to keep high speed rail out of Ellis County because:

• agriculture contributes $160 million to the Ellis County economy
• land will have to be aquired in Ellis County from its farmers
• farms will be split in 2
• rail will be will be “a literal and figurative barrier to future growth, relegating Ellis County to a semi-rural purgatory”

Local communities,  Palmer, Ferris & Ennis , banded together to create the Community Development Sub-Regional Planning Commission in hopes of stopping high speed rail. The group believes the same tactic was used by sub regional planning commissions to stop TransTexas Corridor. 

Dallas Observer

The Dallas Observer points out that the funding message for the team bringing high speed rail to Texas has shifted from all private fudning to exploring certain public funding options.

Public funding options for high speed rail include:

• federal loans to rail ventures, specifically the Transportation Infrastructure Finance and Innovation Act (TIFIA) and the Railroad Rehabilitation and Improvement Financing (RRIF) program.
• tax-exempt private-activity bonds (requires government approval)

The gas tax is taking center stage for campaign season in South Carolina. “Anti-tax activists are working the phones to secure GOP senators’ opposition in 2016, when every legislator is up for re-election.”

The message: Reform the system. Don’t add more money. No new taxes. Governance reforms include:

• abolishing both the legislatively appointed DOT commission and the State Infrastructure Bank (which funds transportation rojects)

The Chamber of Commerce retorts that reform is needed along with funding. That only a two proing approach will solve the transportation funding crisis.

AP via ABC News 4 South Carolina

Georgia this year overhauled transportation funding by passing HB 107, that will:

• phase out the State’s 4% sales and use tax on motor fuel
• raises the excise tax to $0.26 cents per gallon on gasoline and $0.29 per gallon on diesel, dedicated to transportation funding
• creates an up to $100 fee on heavy trucks
• eliminates the $5,000 state income tax credit for buying an electric vehicle
• total-electric car owners will now pay a $200 annual fee ($300 for commercial vehicles)
• adds an additional $5.00 per night statewide hotel/motel tax dedicated to transportation; and
• sunsets a 1% sales and use tax exemption for aviation fuel.

The impact to cities and counties is as follows:

• cap local sales and use taxes for the price of motor fuel at $3.00 per gallon
  • Above $3, no local sales and use tax will be collected on that amount
• expands the ability of counties and cities to create a transportation special purpose local option sales tax
  •  the tax rate is to be a fractional rate of 0.05%, up to a maximum rate of 1.0%

PFI Blog

Last week we talked about business & labor leaders in California proposing an increase in fees and taxes to generate $6 billion for road funding.  This week the California Economic Summit’s Infrastructure action team suggested transportation governance overhaul including:

• “Creating additional regional financing authorities authorized to build and maintain transportation and goods movement projects—and to enter into public-private partnerships to fund these projects, conduct environmental analysis on a regional scale, and tap new user-generated revenue streams to support the investments.
• Expanding the authority of new Enhanced Infrastructure Financing Districts (EIFDs) to invest in state roads and highways, railroads, and ports. While state law prohibits this type of investment today, lawmakers should reconsider these restrictions—and allow more communities to use EIFDs to support road and goods movement projects by tapping local resources and revenues generated from the increasing value of the land.”

 California Economic Summit

Nevada’s proposed rules for ride share regulations have now been published. The rules include:

• $300,000 application fee + a levy of 1% of annual revenue
• Drivers could face a $50 fee the first year and $10 annual renewals

Procedural hurdles for the rules:

• public hearing
• consideration by state lawmakers on the Legislative Commission.

AutoBlog

Boston Surface Railroad Co. is planning a commuter rail line that would shuttle passengers between Worcester, Massachusetts, and Providence, Rhode Island. It’s about 45 miles.

Significant private investment in passenger rail is rare. The goal is to be up and running by 2017.

Not be outdone, All Aboard Florida is working on a $2.25 billion project to build a passenger rail from Miami to Orlando. It  also wants to being operating a limited route by 2017.

ABC News

Onstar–the savior for people who lock their keys in the car.  Onstar–the way for hackers to take over your car.

Until this week, hackers were able to take control of opening cars, turning on the ignition, and locating the vehicle. The hack took $100 of equipment but was an otherwise easy path to taking over Onstar.

Findlaw

Researchers testing the Tesla system also identified a potential vulnerability and sent out a wireless update to Tesla systems.

TechCrunch

• “I would vote for the free enterprise model”  but, “you are stuck upon arriving at the train station to proceed on foot, bus or by taxi to your final destination.”
• “it will bring new business and new tourists to both cities and to College Station.”
• “high-speed rail is a necessity”
• “This is another example of some folks deciding they want their money-making project at the expense of landowners who are forced off their land with no benefit to themselves or to their communities. The court judgment on eminent domain awarded to Trans-Canada/XL Pipeline has opened up land use to anyone who wants it for any private project like power lines, wind farms, pipe lines, high speed rail or any other private business foreign, domestic or combination. This one is Japanese. Rick Perry’s Trans-Texas corridor was Spain and the XL was Canadian.”
• “I smell a backdoor, government-funding rat, I’m always leery of a private concern using the government’s power of eminent domain.”
• “this state needs to move into this century regarding transportation. All over this state, roads are too crowded, and more efforts should be made to improve our transportation systems.”
• “I don’t see any real benefit here.”
• “Waste of money”
• ” If private companies want to build it, let them. Just don’t tie up our money on something that will never be profitable.”
• “It is the future.”
• “it would be easier to take a position if we had detailed cost estimates including confirmed revenue assumptions and sources.”
• “The anxiety of rural communities fearing loss of revenue and farmers arguing against the rail line because it will divide their property should be taken into account, but should not stop the project.”
• ” Of all the high speed-rail projects proposed in the U.S., this has the best chance of working and the state should support this effort, if only to demonstrate what can be done and again show Texas as a progressive state.”

Dallas Morning News

Proposition 7

“The constitutional amendment dedicating certain sales and use tax revenue and motor vehicle sales, use, and rental tax revenue to the state highway fund to provide funding for nontolled roads and the reduction of certain transportation-related debt.”

Governor Abbott Proclamation

Senator Nichols, “If passed by the voters, the proposition would be the largest single increase in transportation funding in Texas history.”   GoSanAngelo

Proposition 5

“The constitutional amendment to authorize counties with a population of 7,500 or less to perform private road construction and maintenance.”

Governor Abbott Proclamation

Nevada Transportation Authorityproduced 15-pages of draft regulations for ride share. The lengthy regulations include:

• $300,000 application fee for companies
• 1%levy on annual operating revenues
•  Drivers could face a $50 fee the first year and $10 annual renewal.

KOLO 8 NV

Tennessee Governor Haslam says Tennesee has a multi-billion dollar funding backlog in transportation.

To fix the state’s transportation system, he is considering a proposal to raise the gas tax, which hasn’t been raised in 25 years.

6WATE

California license plates have a special coating that help facilitate the reading of license plates by electronic means. All liberty lovers, please note that the regulation at issue is a fee and not whether this coating is good or bad.

With that libertarian disclaimer, this license plate coating peels. In California, a license plate that is peeling, but still legible, generated a $1,000 fine.

Sacramento Bee

In Hillsborough, Florida business organizations are “gearing up to lead the campaign to pass a half-cent sales tax for transportation projects if county commissioners agree to put the tax on the November 2016 ballot.”

Business says lack of adequate roads and transportaiton funding is harming economic development. 

Tampa Tribune

Cape Girardeau, Missouri has a pay as you go transportaiton fund that works like this:

• Funds are held in a restricted account to fund a group of pre-established projects that are completed over a 5 year period.
• Projects are scheduled as the sales taxes were collected
• Always will be on a “pay-as-you-go” system.
• No bonds would be issued;  thus no  interest paid.
• Creates a user’s tax funded by citizens and visitors who use our streets.
• Sunsets every 5 years and requires citizen approval to re-authorize, with projects listed.

Southeast Missourian

Tyler Morning Telegraph brings us the reasons why high speed rail will not work in Texas:

1. “This is Texas.”
2. no population density
3. no job density
4. Texans love independence
5. Texans love trucks (and cars too)
6. There is no infrastructure of rental cars, hotels, meeting venues near hgh speed rail
7. Government bailout will be required (relying on Rep. Will Metcalf statements)

Tyler Morning Telegraph

Houston Press  & Houston Chronicle finally caught up with loyal Information Intelligence subscribers to tell us how local governments are forming commissions specifically designed to block high speed rail. 

Information Intelligence on July 22, 2015:

Montgomery County and the city of Magnolia formed a regional planning commission to monitor the proposed high speed rail project.The current path of the high speed rail proposal does not cross Magnolia or Montgomery County.

Both local governments appear to be opposed to the high speed rail and its taking of private land. As such, the city and county are being vigilent just in case. 

Montgomery County Judge Craig Doyal: ” We are committed to opposing any routing of high speed rail through western Montgomery County, and the regional planning commission is a tool that will help us in that goal”

KBTX Byran College Station

This week ride share company Uber and the CIty of New York reached a deal prior to the mayor pushing a vote on capping ride share. How did it work?

• Economic Message: Uber argued that a cap would mortally wounded it in its most important market, doubling and tripling wait times, degrading service, and driving away consumers.
• PR Push: “airwaves with ads saying Mayor Bill de Blasio wanted to destroy thousands of potential jobs.”
• Out of touch with tech & out of touch with minorities Message: Harm would be specific to NYC minorities, the low-income, the outer boroughs

Washington Post

Previously on Information Intelligence: New York City council members are proposing a new ride share regulation. They want to cap the number of ride share vehicles for roughly a year to study how their rapidly swelling numbers are affecting congestion and the environment.

Business Insider

Tim Kieth is the new CEO at Texas Central Rail. He is:

•  from Dallas
• previously at RREEF/Deutsche Bank Infrastructure Investments, serving as global chief executive officer for 10 years

Texas Central Rail also garnered a $75 Million investment from:

• John Kleinheinez
• Drayton McClain
• Jack Matthews

One notable supporter, Senator Don Huffines, breaking from other conservative Senators Like Kolkhorst, who filed bills this year to limit the rail’s eminent domain authority: 

Christian Science Monitor  WFAA  Houston Press  Dallas Morning News Star Telegram  Dallas Business Journal  Progressive Railroading Texas Central Rail Press Release

Ferris City Council named Carl Sherman the city’s new City Manager. He is also mayor of DeSoto, an uncompensated position.

During the vetting process, Sherman was asked about his stance on high speed rail, something Ellis County Commissioners Court opposes. Sherman said he will be too busy running the city to get into politics like high speed rail.

Waxahachie Daily Light

A partnership between the University of Michigan and motor vehicle companies is funding a 32 acre testing ground tfor self driving cars. 

The Mobility Transformation Center is a public-private research institute that includes the testing area.

WallStreet Journal

• Rail spurs economic and property development
• Rail saves people ime
• Rail “helps poor people get to jobs”
• High Speed Rail in Texas will be privately funded: ” It exemplifies what conservatives like best: private enterprise acting to make money by providing a service people want and need.”
• Rail support retail in downtowns

Star Telegram Op-Ed

Montgomery County and the city of Magnolia formed a regional planning commission to monitor the proposed high speed rail project.The current path of the high speed rail proposal does not cross Magnolia or Montgomery County.

Both local governments appear to be opposed to the high speed rail and its taking of private land. As such, the city and county are being vigilent just in case. 

Montgomery County Judge Craig Doyal: ” We are committed to opposing any routing of high speed rail through western Montgomery County, and the regional planning commission is a tool that will help us in that goal”

KBTX Byran College Station

A reporter for Wired details what parts of a car hackers can control while you’re driving. It’s like a self driving car, driven by criminals with you in it.

Hackers are able to control a vehicle’s:

• A/C system, changing the temperature in the car
• The radio, changing channels and volume control
• Windshield wipers
• Windshield washer fluid blurring the windows
• dashboard functions
• steering
• brakes
• transmission

All of the car functions above can be controlled from a laptop by a nefarious hacker. Wired. 

Congress is trying to stop it with the Spy Car Act.   Sens. Ed Markey & Richard Blumenthal  would require the Federal Trade Commission and the National Highway Traffic Safety Administration to develop standards to protect drivers’ privacy and to guard against a potentially deadly hack of a vehicle. The Hill   Ft Worth Star Telegram 

The case of the missing $20 Million of federal trasnportation dollars for El Paso:

The hub-bub? A claim “that the city lost more than $20 million in federal money for critical transportation projects through the Metropolitan Planning Organization due to errors on funding applications.”

The other side: The funds aren’t lost. We’ll correct our mistakes (deadlines not met, application problems), and get the money a little later. No biggie.

El Paso Times  KVIA

An Austin TX tech company, Codaxus, has a devise that will determine how close a car is to a cyclist. Chattanooga, TN recently hired a former Austinite who served as the police liasion to the bicylce community. Chattanooga is now using the Codaxus to enforce the bucylce safety law it has not enforced in the 8 years since it eas enacted.

Governing

To clear up the national confusion on whether a person is an employee or an independent contractor, the Labor Department’s Wage and Hour Division set out to address the confusion with a 15-page memo of guidance.

15 pages of a guidance…from the government. How can this not go wrong? 

NFIB said, ““The guidance is going to make it harder to classify workers as independent contractors,”

National Home Builders Grand Pubah said, ““I’m appalled by the procedures they’re following,”

The 15 pages of guidance are said to hit these industries hardest:

• technology
• construction

WallStreet Journal  US Dept. of Labor Wage & Hour Division 15 page memo  Law360

 California Public Utilities Commission, which has oversight of ride share and taxis, ordered Uber to “pay a $7.3 million fine and hand over required information about safety and accessibility — or shut down in the ride service’s home state.”

Other ride share companies had provided the California Public Utilities Commission information, including:

• number of customers requesting rides in vehicles  accommodating people with disabilities
• how often they complied with requests from people with disablities
•  the number of rides requested & accepted within each ZIP code
• report the cause of every traffic incident involving one of their drivers.

Next step: Appeal of the fine.

Governing     The Recorder     LA Times

A California regulator ruled certain ride share drivers to be employees for wage claim purposes and it has regulators, policy makers, attorneys and investors in overdrive.

Investors keep investing in the companies. The Recorder    Bloomberg

Regulators & policymakers go both ways.   Hillary Clinton is said to be using the independent contractor stance as a campaign issue. TechCrunch  Jeb Bush is hailing a ride share vehicle to arrive at a speaking engagement with tech cred. SF Weekly Politico

Lawyers. Conservative lawyers lean toward employees to avoid the hefty sanctions. Aggressive Lawyers will say, let’s stick with Independent Contractors until we’re told otherwise, but note hefty sanctions are possible.  The Recorder

Seattle has a transportation funding crisis. The mayor has called for $930 million in additional funding. 

Two City Council members tried to counter the straight $930mllion levy on property taxes with a funding plan that included:

• $600 M levy on property taxes
• with a employee hours tax and a commercial parking tax

The move failed, but the creativity in the funding structure should be appreciated.

KUOW.ORG Seattle

Elon Musk talked regulations concerning self-driving cars at Herb Allen’s Sun Valley thinkfest. An attendee said, ” “What it must be to have a brain that works like that.”

What do Elon Musk, self driving cars, and regulations have to do with Texas?

Elon Musk made his first foray into policy this session with Tesla dealership issues. Now he’s thinking regulations for self-driving cars. Texas has no laws on self-driving cars. All together now, this means OPPORTUNITIES- contracts, picthes, thinking to entice Musk’s brain, oh, my.

Deadline Hollywood

Trying to find a solution for transportation funding, bipartisan U.S. Senators seek to tax foreign assets.

“Sen. Charles Schumer (D., N.Y.) and Rob Portman (R., Ohio), co-chairmen of a Senate Finance Committee working group on overhauling the international tax system, would impose a one-time tax on profits that multinational companies have stashed overseas at a rate lower than the current 35% U.S. corporate tax rate, according to a summary of its major provisions.”

WallStreet Journal

New York City council members are proposing a new ride share regulation. They want to cap the number of ride share vehicles for roughly a year to study how their rapidly swelling numbers are affecting congestion and the environment.

Business Insider

California Legislature is in special session for transportation related issues. In this mix, is a new ride share bill that would exempt drivers for services such as Uber, Lyft and Sidecar from having to register their personal cars as commercial vehicles.

The bill is in repsonse to regulatory action by California DMV that suggested every ride share vehicle (a vehicle transporting paying customers) needs commercial license plates.

California AB828     The Recorder

With federal transportation funding overhauled stalled, many states this year raised taxes for transportation including:

• Georgia (Republican Gov.)
• Idaho (Republican Gov.)
• Iowa (Republican Gov.)
• Kentucky 
•  Nebraska
• North Carolina (Republican Gov.)
• South Dakota (Republican Gov.)
•  Utah (Republican Gov.)

What coalitions supported these tax increases? The peope trying to get to work.

• business community
•  the transportation industry
• ordinary taxpayers
• + a report on unsafe bridges by the American Road & Transportation Builders Association

Governing

After self-driving car regulations failed to pass during the regular legislative session, Google brings self-driving cars to Austin. 

No legislation, means no permission necessary for self-driving cars. Google’s cars will have 2 back up human drivers in them at all times and weill be seen in and around Austin.

Texas Tribune

Houston’s Ellington Field will be converted to the 10th spacecraft launch site in the country.

“The city of Houston has been approved by the FAA to build and operate a licensed, commercial spaceport. So let’s celebrate that,” said Houston Mayor Annise Parker.”

Click2Houston

Washington State is moving toward a permanent gas tax bump of 11.9 cents per gallon.

The Spokesman-Review  Seattle Times

California is facing a special legislative session on transportation. Republians have a plan to fix transportation funding without taxes by touting these principles:

• Reform existing laws to get transportation projects moving quickly and at lower costs
• eliminating redundancies
• cutting through red tape
• making a formal commitment to prioritize transportation
•  without taking any money away from education or the Rainy Day Fund.

And, by using these funding sources for $6 billion in existing state funds for transportation infrastructure:

•  40 percent of funds in California’s Cap & Trade program: $1 Billion+ annually
• Existing funds from Vehicle Weight Fees: $1 Billion annually
•  Invest half of the Governor’s strategic growth fund into shovel-ready roads projects: $200 Million annually
•   Eliminate redundancies at Caltrans: $500 Million annually
•   Eliminate and capture savings from 25 percent of long-term vacant state positions: $685 Million annually
•    Make a formal commitment in the State Budget General Fund to fund transportation: $1 Billion annually

What is California’s transportation funding deficit look like?

• 400,000 miles of roads
• $59 billion in deferred road maintenance

Kristin Olsen  Gateway to California Gold Country  Sacramento Bee

Back in yesteryear, 2014, California Legislature passed AB 2293. It requires minimum liability insurance requirements of $200,000 for ride share. 

AB2293 marks California first legislative attempt at successfully regulating ride-share.

Sacramento Bee on AB 2293 signing in September 2014

Sacramento Bee on Implementation of AB 2293 in July 2015

In 2015, so far 6 states have raised the gas tax:

• Idaho
• Georgia
• Maryland
• Rhode Island
• Nebraska
• Vermont

One state lowered the gas tax:

• California lowered the gas tax by 6 cents.

The Hill  TaxJustice Blog

Delaware Governor signed increased transportation funding that will generate $24M/year by increasing fees that haven’t been raised since 1990. last year, Delaware raised toll fees to generate $10M/year.

Delaware Governor Markell Statement

Interstate Commerce requires transportation. As a logical continuation, the U.S. Chamber of Commerce’s transportation chief, speaking in Dallas said:

• The key is revenue- how to fund transportation.
• Privately, she said that the US Chamber supports raising the federal gas tax.

Dallas Morning News

Kids these days are less interested in owning and driving cars. Why drive when you can be driven? What are auto manufcaturers doing to stay relevant?

• Ford debuted the MoDe:Flex, an electric bike networked to mobile apps
  • its the 3rd e-bike by Ford
• Elsewhere Ford introduced on-demand car service called GoDrive
• Ford has a giant pilot program of peer-to-peer rental, allowing owners to retain the rental, like airBnB for cars.

Forbes

Nationally 2 high speed rail projects have moved beyond “gee, wouldn’t it be nice if we could zip between cities on a train at high speeds” conjecture.

• California has a state funded high speed rail proposal that is in the process of construction
  • Voters approved $10 Billion
  • 520 miles of track
  • has fought landowners and has been using eminent domain
• Texas high speed rail project is considered to be more than just conjecture & is privately funded.
  • Seeks to raise $10-$12 billion
  • 240 miles of track
  • Has encountred troubled landowners
  • May “avoid some of the intense public scrutiny and endless political interventions to which the California plan has been subjected”

A professor at the  Intermodal Transportation Institute says Texas’ public-private model has the highest odds.

San Diego Daily Transcript

A recent Deloitte University Press Report studying what millenials wnat in transportation plans says that a way to save billions & build a trasnportation system for the future is to support alternative approaches.

The answer, folks, to saving billions in transportation: car-, ride- and bike-sharing.

Deloitte University Press   Governing  American Transportation Association Study

Congress and the Federal Rail Administration are requiring that every commuter and freight train in the country install positive train control by 12/31/2015.

Positive Train Control is anticipated increase train safety. It can cost hundreds of millions to install. Congress allocated no funds to help railways, and included a fine for not installing the safety measure of $25,000 per day.

Rail has known since 2008 of the deadline for positive train control requirements.

Governing

Parker County Judge  Mark Riley is the new chair of the Regional Transportation Council. The Council includes the 12 counties around Dallas- Fort Worth.

The RTC is the policy making body and oversees transportation planning for the fourth-largest metropolitan area in the country.

Weatherford Democrat

Virginia Department of Transportation has implemented a new priority system for fudning transportation projects.  VA will score a project on the following criteria:

• accessibility
• congestion management
• economic development
• environmental quality
• safety and
• land use.

Economic Development is a trend we’re seeing in Texas. It was included in the rational for the Tomball Tollway. Tollways have vocal opposition, but economic growth can serve to offset opposition.

AP via Washington’s Top News  Daily Press

This week the State Public Works Board in California adopted condemantion resolutions for 16 more properties. Taking the total pending and potential eminent domain cases to 246 since December 2013. Fresno Bee

California’s experience is teaching us that high speed rail is a process. To move high speed rail along more quickly, the California legislature added a budget rider that will:

• reduce the volume of reports managers of the rail project are required to provide the Legislature
• change the qualifications required for certain members of the project’s peer review group by including people with experience in large infrastructure projects other than high-speed rail.

To those who say transperancy is cut, the California politicians say- it doesn’t harm transperancy, it enhances efficiency.

Sacramento Bee

The US Supreme Court sided with Texas denial of the confederate license plate design. One would naturally think the ruling hinged on free speech, but alas, one would be wrong.

The US Supreme Court decision found that Texas could deny the licnese plate because the license plate itself is the property of Texas and refelct government speech.

Houston Chronicle

Bloomberg

WallStreet Journal

On Wednesday, California Labor Commissioner ruled that ride share drivers are employees. Its a ruling some say upends the business models for ride-share. The Regulatory rational:

• Ride Share companies are involved in every aspect of the operation.

• Ride Share companies dictates such things as how old a driver’s car can be and who is qualified to offer services through the Uber platform.

The Labor Commissioner ruling arose from a wage and reimbursement dispute. It also applies only to the 1 wage dispute. State and federal lawsuits are also pending on this issue.

Bloomberg

The Recorder

Washington Post

Senator Nichols has requested an Attorney General opinion as to METRO’s role in a rapid transit bus project down Post Oak in the Uptown Management District. 

The background:

• 2003 Voters approve light rail down Post Oak Blvd. The language included that the proposition created a binding and enforceable contract between the City of Houston, Uptown, and METRO
• Now the proposal is to use the same land area but utilize rapid bus transit rather than light rail
• METRO will probably not provide funding
• METRO will operate the buses

What inquiring minds want to know: Can the voter approved light rail be converted to buses and there still be an existing, enforceable contract?

RQ-0028-KP

TAB Statement Regarding Protest of 183 Bergstrom Expressway Procurement by Central Texas Regional Mobility Authority (CTRMA)

The statement below, which may be attributed to Bill Hammond, CEO, Texas Association of Business (TAB), is as follows:

“According to some news reports, questions have been raised with regard to the CTRMA procurement of the 183 Bergstrom Expressway project. We need to focus on building roads instead of intrigue. TAB encourages the CTRMA to address these questions in a timely manner so that we can get back to the important job of getting Texans moving and keeping our economic development engine strong.

“Our fast-growing state leads the country on bringing innovative roadway projects to market. Given this growth and the enormous need to relieve traffic congestion in Texas, it is imperative that the industry has confidence in our public procurement processes for roadway infrastructure projects. 

“We need industry confidence and the public trust. We support a transparent and fair process when it comes to addressing the need for improved transportation resources in Texas.”

An editorial at the Milwaukee Wisconsin Journal Sentinel recommends 3 ways to increase trasnportation funding:

• cut back on some projects
• raise the gas tax and registration fees in the short-term
• develop a method of charging for vehicle miles traveled or toll roads (which would require federal approval) in the long term.

Milwaukee Wisconsin Journal Sentinel

“Officials at the Texas port are rethinking how they use their land amid a flurry of construction by energy companies and soaring volumes of oil and petroleum products moving through the port, Executive Director John LaRue said in an interview with WSJ Logistics Report. A 40% plunge in the price of crude in the last year hasn’t dented traffic, he said.”   

The details:

• 560,000 barrels of oil leave the port each day (up from 300,000 barrels a year in 2011)
• Ships head mostly for U.S. and Canadian refineries
• $30 billion in construction projects underway 

Texas Oil Boom Fuels Corpus Christi Port Growth | WallStreet Journal

Vic Suhm, the executive director of the Tarrant Regional Transportation Coalition, believes in his heart of hearts that Texas “still needs to figure out a long term funding mechanism that is less dependent on gas tax.” 

“That’s clearly something that I think will not go away,” he says. “That’ll be here next session, too.”

WBAP 820AM

 IH-635 East Legislative Caucus formed to continue development of the highway, running from U.S. 75 to I-30.

The caucus members:

• Sen. Bob Hall, R-Edgewood
• Sen. Don Huffines, R-Dallas
• Sen. Van Taylor, R-Plano
• Rep. Cindy Burkett, R-Sunnyvale
• Rep. Angie Chen Button, R-Garland
• Rep. Linda Koop, R-Dallas
• Rep. Kenneth Sheets, R-Dallas
• Rep. Jason Villalba, R-Dallas

Park Cities People

Alexandria Virginia’s long time mayor was unseated by the only city official, Vice Mayor Allison Silberberg (D), to respond to an outdry after a Halloween hit and run left a 7 year old hospitalized.

The city official worked to get speed bumps installed on the busy street, and checked in with the family of the vicitim.

Speed bumps and the personal touch won her the election to defeat a long standing incumbent, a former mayor, and a third candidate.

Washington Post

““Not only are we dedicating more money to building roads, we’re also ending diversions and as a result, providing greater transparency,” said Governor Abbott. “This legislation will have a tremendous and positive impact on the lives of people across the State of Texas.”

Office of the Governor

Overall pretty good not shabby by the agency that once misplaced $1billion. The State Auditor Office raised these issues with TXDOT construction contracts:

• better document retention
• contracts should have a provision to allow for TXDOT audits and SAO audits

Most of this will be handled by SB 20, which has provisions for docuemnt retention and audits. 

SAO 15-33

Republicans and Democrats joining forces raising questions over whether in the sharing economy that ride share calls home, are drivers indpendent contracts or are they employees who aren’t receiving the benefit of employment?

Liberal Sen. Elizabeth Warren (D-Mass.) to a Republican member of the National Labor Relations Board are leaning toward the latter- that the drivers are employees and that companies are avoiding paying benefits.  

Rest assured, Liberals and Republicans rational is rooted in different places. The liberals are primarily concerned about the worker and the republicans are concerned about how the economy adapts. 

It’s an issue being litigated in court, but some think the NLRB may act first. The FTC is hosting a sharing economy symposium in July. The Hill 

Viriginia is rethinking whether it saves money with public private partnerships. Spefically, when the P3 investments involve infrastructure like transportation. The state is considering design-build and bond financing to save state revenue on future transportation projects.

The change of heart from the state that has been actively using P3s for 20 years, is controversy. The details:

” The most significant controversy involved a proposed 55-mile toll road linking the Norfolk area to Interstate 95, a major commercial corridor along the East Coast.The project started as a P3 but morphed into a more conventional contract, albeit one shrouded in the type of secrecy that had been afforded to those public-private deals.”  

Governing

How the Republican Caucus is talking about transporation funding from the 2015 Legislature:

“SJR 5 is a bipartisan resolution that transfer up to $2.5 billion annually of general sales tax revenue to the State Highway Fund, beginning in 2018. Given conservative estimates, this measure could increase transportation funding by $3 billion annually beginning in 2020.

“SJR 5 would allocate more funding for much-needed transportation projects without raising taxes or fees,” said Simmons. “By capturing existing revenue, we can enhance our state’s transportation infrastructure without placing additional burdens on taxpayers.”

The proposed constitutional amendment also includes measures that allow for flexibility to the transfer should there be a downturn in the economy and collections. If collections for a fiscal year are below $28 billion, then no money will be transferred from the general sales tax collections to the State Highway Fund.”  Rep. Ron Simmons

Arlington elected a new mayor in May. According to Empower Texas, the new mayor succeeded based on opposition to red light cameras.

The Legislature cannot seal the deal on red light camera opposition, but the voting public of Arlington can.

Empower Texas 

Uptown District and Metro have developed a plan to use the center lane of Post Oak Blvd in Houston as a dedicated bus lane. 

It is said the proposal will reduce congestion, as more Houstonians opt for park and ride. Uptown Houston PAC has gathered signatures from 1,000 businesses and property owners in opposition to the proposal. 

Transportation Controversy is nothing new to Houston. Empower Texas points instead to the Uptown TIRZ and argues that:

“We have mentioned a number of times that TIRZ best serve the taxpayers when there is a high level of transparency and a specific goal in mind. When these unelected boards are given access to a pot of taxpayer funds, they will go to great lengths to find ways to spend it. Repeatedly the line between economic development and personal interest projects is crossed with little accountability.”  Empower Texas 

Nevada Assembly Bill 175 passed this week to round out a package of ride share legislation. Nevada will now:

• Allow ride-hailing companies like Uber and Lyft to operate in the state.

• Ride share will be regulated by  the Nevada Transportation Authority rather than the Public Utilities Commission. 

• Legalizes companies that allow people to hail a ride through a smartphone and imposes a 3% fee on taxi and ride share fares.

KOLO News

You can now see TXDMV board meetings live streamed. Welcome to 2005. 

To Watch Meetings: http://www.txdmv.gov/about-us/txdmv-board-meetings