The Senate Transportation and Infrastructure Committee has approved two bills to be reported to the floor with the recommendation that they pass.
SB 15 would eliminate the sunset on Division of Highways (DOH) public-private partnership agreements and, therefore, allow the division to enter into comprehensive agreements with developers after June 30, 2017—the current sunset date.
Mike Clowser, executive director of the Contractors Association of West Virginia, spoke in favor of the bill’s passage, saying that the bill would allow the division to “capitalize” on future infrastructure opportunities.
SB 477 would increase the State Road Fund by increasing Division of Motor Vehicle (DMV) administrative fees and motor fuel excise taxes, including titling, registration, driver licensing, identification card issuance and abstract fees. Every five years, the DMV fees will increase based on the U.S. Department of Labor Consumer Price Index.
This bill increases the flat rate component of the motor fuel excise tax from 20.5 cents to 30.5 cents per invoice gallon of motor fuel and upon each gallon equivalent of alternative fuel. The bill also increases the minimum average wholesale sales price of motor fuel from $2.34 to $3.04. All changes are effective July 1, 2017.
The fiscal note shows the bill would generate $34 million annually for the state.
Senator Robert Beach, D-Monongalia, spoke in support of the bill and said it had been until 2011 since the legislature has brought in as much funding for the DOH as this bill would bring.
Louie Southworth said on behalf of Go Mart gas stations that he was very concerned about raising the price of gas, since all bordering states except for Pennsylvania would have lower gas prices that could draw sales out of the state, particularly in border counties.
Senator Patricia Rucker, R-Jefferson, said she agrees with Southworth, since she lives nearly 2 miles away from Virginia and plans to get gas across the state border to save money for her family.
Clowser voiced his support for the bill and said “we have no choice with no funding coming in” but to raise gas prices in order to raise revenues for the state.
He listed several statistics to show how West Virginia’s funding for infrastructure has been steadily declining and how the state could save money by having citizens drive on roads that don’t damage their cars, as well as providing thousands of jobs to rebuild those roads.
Both bills approved in this committee meeting will be referred to Senate Finance once reported to the floor.
The committee will recess until 4 p.m. today, or after today’s Senate Finance Committee meeting adjourns.
