Tolling authority for I-80.

WORKING DRAFT
2010
STATE OF
WYOMING
10LSO-0138.E1

SENATE FILE

NO.
SF0035

Tolling authority for I-80.

Sponsored by:
Joint Transportation, Highways and Military Affairs Interim Committee

A BILL

for

AN ACT relating to highways; granting powers to the transportation commission; defining duties of the transportation commission and the department of transportation; granting tolling authority for interstate 80; creating a program for the planning and implementation of tolling on interstate 80; providing for the review of tolling plans; creating accounts; specifying the allowable deposits and withdrawals from the accounts; granting bonding authority; requiring accounting and reporting; authorizing loans from the state highway fund; providing rulemaking authority; authorizing alternative design and construction methods; allowing assistance between state agencies; and providing for an effective date.

Be It Enacted by the Legislature of the State of
Wyoming
:

Section 1
. W.S. 24
‑
16
‑
101 through 24
‑
16
‑
117 are created to read:

CHAPTER 16
INTERSTATE 80 TOLLING

24
‑
16
‑
101.

Purpose
.

In order to finance, construct, operate and maintain interstate 80 and accommodate the needs of the traveling public through safe, efficient, convenient and modern vehicular traffic, it is necessary and in the public interest to provide for the financing, construction, operation, regulation and maintenance of interstate 80 under a tolled configuration. The tolled configuration will allow interstate 80 to be maintained and to be operated in a way that will reduce increasing traffic congestion, delays, hazards, injuries and fatalities. For this purpose, it is necessary to authorize the
Wyoming
transportation commission, with legislative approval, to create and supervise a tolling program within the department of transportation to impose tolls and exercise other powers regarding interstate 80 that are necessary, equitable and appropriate to carry out these purposes.

24
‑
16
‑
102
.

Definitions
.

(a)

As used in this act:

(i)

"
Alternative design and construction delivery methods
"
means design and construction services as defined in W.S. 16
‑
6
‑
701;

(ii)

"
Bond
"
means notes, warrants, bonds and temporary bonds issued under this act;

(iii)

"
Chief engineer
"
means the person appointed by the director of the department of transportation in accordance with W.S. 24
‑
2
‑
106;

(iv)

"
Commission
"
means the
Wyoming
transportation commission;

(v)

"
Construct
"
or
"
construction
"
means the planning, designing, engineering, right
-
of
-
way acquisition, installation, construction or reconstruction of interstate 80;

(vi)

"
Department
"
means the department of transportation;

(vii)

"
Director
"
means the director of the department of transportation;

(viii)

"
Interstate 80
"
and
"
interstate 80 corridor
"
means the entire length of interstate 80 in Wyoming,
or as
specifically designated in the project master plan;

(ix)

"
Local government
"
means a municipal or county government;

(x)

"
Project
"
means an existing highway or additional lane capacity that is part of interstate 80 and related highway improvements, maintenance and services and all matters related to the imposition and collection of tolls on interstate 80. As outlined by the commission and the project master plan, this may include the planning, financing, construction, operation and maintenance of a comprehensive interstate 80 toll facility;

(xi)

"
Project master plan
"
means a comprehensive plan for the project as required by this act and which must be presented to the legislature for approval;

(xii)

"
Project phase
"
means a discrete portion of the project that may be constructed, operated, maintained or financed independently of other portions of the project;

(xiii)

"
Special toll revenue account
"
and
"
STRA
"
mean the account created for the deposit of funds from tolling operations of the project and from which debt issued for the project shall be repaid;

(xiv)

"
Toll
"
means compensation paid for the use of interstate 80, or any part thereof, by vehicular or other traffic;

(xv)

"
Tolling program chief
"
means the administrator of the tolling program housed within the department;

(xvi)

"
Toll revenues
"
means all revenues generated by the project;

(xvii)

"
This act
"
means W.S. 24
‑
16
‑
101 through 24
‑
16
‑
117.

24
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16
‑
103.

Authority to toll.

The department has authority to impose tolls on interstate 80 and take all other actions necessary for the project pursuant to a project master plan which has been approved by the legislature.

24
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16
‑
104.

Statewide tolling program creation.

Upon approval of the project master plan by the legislature, the director with the approval of the commission may operate a statewide tolling program which shall be limited to the project. The tolling program shall operate as a division of the department and the director shall, with the consent of the commission, appoint a tolling program chief who shall possess qualifications as may be established by the commission. The tolling program chief shall oversee all aspects of the tolling program.

24
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16
‑
105.

Special toll revenue account (STRA).

(a)

There is created an account to be known as the STRA. All toll revenues received from the project shall be deposited into the STRA. All monies received pursuant to the authority of the commission to issue bonds also shall be deposited into the STRA. The STRA may contain separate accounts for each project phase which shall consist of all toll revenue collected from each respective phase of the project and any monies from bonds issued for that phase. The department may deposit or permit others to deposit other monies into the STRA but in no event may revenues from any tax otherwise available for general purposes be deposited into the STRA. The entire STRA shall be pledged only for the repayment of debt for the project or as authorized under this act.

(b)

All funds within the STRA shall be held in trust by the state treasurer to be invested and reinvested pursuant to W.S. 9
‑
4
‑
715(a), (d) and (e) in a manner to obtain the highest return possible. Any interest or revenues earned on the investment or deposit of monies in the account shall remain in the account and shall not be credited to the general fund. The state treasurer shall invest funds, or withhold funds from investment, and comply with all requirements of the internal revenue service and the bond indenture, so as not to interfere with the bonding provisions and bonding capacity granted in this act and to insure that all bonds will remain tax free investments.

(c)

The department shall prepare an annual accounting of all funds deposited into the STRA and all other STRA activity.

(d)

The department may expend monies in the STRA to pay for principal on bonds, as the bonds mature or are redeemed prior to maturity, for the purchase of such bonds, the payment of interest on such bonds or the payment of any redemption premium required to be paid when the bonds are redeemed prior to maturity. Unless the expenditure of such monies would reduce the STRA to an amount less than the amount which is pledged in the proceedings authorizing the issuance of bonds secured by the STRA, monies in the STRA may also be used to fund the administration, planning, financing, construction, operation, maintenance or repair of the project and for the acquisition of land within the interstate 80 corridor required for the project. The commission shall have exclusive authority to approve budgets and the expenditure of monies from the STRA for the project.

(e)

Once the department has paid the costs of constructing the project, including reasonable and prudent contingencies, paid all debt service on all bonds issued to finance the project and reimbursed the state highway fund for any state highway fund monies transferred to the STRA or tolling operating account under this act, plus interest, the commission shall
recommend to the legislature to
adjust toll rates on the project so that toll revenues are as close as reasonably possible to the amount required for the ongoing operation, maintenance and necessary replacement of the project. If required under an approved project master plan, the rate may be set
by the legislature
to generate revenues necessary to fund any impact assistance program available to local governments.

24
‑
16
‑
106.

Tolling operating account.

(a)

There is created an account to be known as the tolling operating account. The commission may transfer nonrestricted monies from the state highway fund to the tolling operating account for use by the department in defraying expenses incurred for the project prior to the receipt of bond proceeds or toll revenues.

(b)

When the department receives sufficient bond proceeds or toll revenues in the STR
A
to implement, operate and maintain the project on an annual basis, the department may use excess revenue to reimburse the state highway fund for monies deposited into the tolling operating account together with interest.

24
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16
‑
107.

Toll highway project master plan; review.

(a)

The department shall develop a project master plan for the project that describes, but is not limited to:

(i)

The goals for the project;

(ii)

The physical project description;

(iii)

The construction phasing and estimated capital costs;

(iv)

The tolling approach and toll rate structure;

(v)

The operations and maintenance plans;

(vi)

The toll revenue projections and financial plans;

(vii)

The recommended civil penalties for failing to pay a toll when required or other violations of tolling requirements, the proceeds of which shall be applied to the operation of the project;

(viii)

Identification of persons or entities exempt from toll fees or toll requirements;

(ix)

The option of establishing a program which would provide impact assistance to local governments negatively impacted by tolling on interstate 80, including a detailed method for determining the assistance available to each local government and the time for delivery of the assistance;

(x)

The extension of criminal and traffic regulation laws to the project;

(xi)

Plans for the provision of law enforcement and courtesy patrols, if any, for the project;

(xii)

An outreach program utilizing the department
'
s public consultative policy for public outreach;

(xiii)

Any other federally required information.

(b)

Upon completion, the project master plan shall be presented to the commission. If the project master plan is approved by the commission it then shall be submitted to the legislature for consideration. If approved by the legislature, the plan shall be implemented.

24
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16
‑
108.

Powers and duties of the commission.

(a)

The commission shall have the following powers and duties regarding the project:

(i)

To advise the department;

(ii)

To develop and present for approval the project master plan as required by this act;

(iii)

To issue bonds as authorized by this act;

(iv)

To make recommendations to the legislature for the establishment, increase or decrease of fees, tolls, rates and charges related to the project;

(v)

To establish, charge and collect fees and charges for the use of other property of the project, subject to an approved project master plan;

(vi)

To acquire, hold title to and dispose of real and personal property as necessary in the exercise of its powers and the performance of its duties;

(vii)

To acquire or cause to be acquired any and all necessary rights-of-way as provided by W.S. 24
‑
2
‑
102 and 24
‑
2
‑
109;

(viii)

To make and to enter into contracts or agreements, including intergovernmental agreements or agreements with private persons, necessary or incidental to the exercise of its powers and the performance of its duties;

(ix)

To employ or contract for the services of consultants for the rendering of professional, financial and technical assistance and advice;

(x)

To prepare or cause to be prepared the project master plan and to make recommendations for amendments to the project master plan;

(xi)

To plan, acquire, construct, operate, regulate and maintain the project;

(xii)

To construct, maintain and operate stations for the collection of tolls from the project as required by an approved project master plan;

(xiii)

To set and adopt, on an annual basis, a budget for the project;

(xiv)

To restrict specified vehicles from driving in designated lanes within the project based on the project master plan;

(xv)

To contract for and accept any gifts or grants or loans of funds or property or financial or other aid in any form from the federal government or any agency or instrumentality thereof, or from any other source;

(xvi)

Upon the issuance of any bond authorized by this act, to report to the state treasurer in such form as the treasurer may require, the terms of all bonds issued, including the maturity of the issuance and revenues pledged for the issuance and prior issuances;

(xvii)

To require that no later than September 1 of each year after the approval of the project master plan by the legislature, the department present a report to the joint transportation, highways and military affairs interim committee and the joint appropriations
interim
committee. The report shall include a summary of the project
'
s activities for the previous year, a statement of current toll rates, a summary of the status of any current construction or other development on the project, a statement of the project
'
s revenues and expenses, a summary of the results of any evaluation of the project conducted by the department and any recommendations for toll rate or other modifications to the project master plan.

24
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16
‑
109.

Rulemaking
authority.

The commission and the department shall have the authority to promulgate rules and regulations necessary for the project and to carry out their obligations and duties under this act.

24
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16
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110.

Bonds.

(a)

Subject to
subsection
(b) of this section, the commission may issue bonds in principal amounts the commission determines necessary to provide sufficient funds for achieving the tasks required by the project master plan and necessary for the project. All bonds issued under this act are negotiable instruments under the laws of the state unless expressly provided to the contrary on the face of the bonds.

(b)

The commission may issue and have outstanding bonds in an aggregate amount not exceeding the amount authorized in a legislatively approved project master plan.

(c)

All proceeds from the sale of bonds shall be deposited into the account created by W.S. 24
‑
16
‑
105.

(d)

All bonds issued by the commission are payable solely out of special funds consisting of all or part of the account created by W.S. 24
‑
16
‑
105. Bond proceeds shall be used only for the project as provided in the project master plan. The bonds shall bear interest at the rates, be executed and delivered at times and in denominations, be of terms and maturities, be in bearer form or in registered form as to principal and interest or principal alone and bear manual or facsimile signatures and seals as determined by the commission.

(e)

Bonds may be payable in installments and may bear maturities not exceeding forty-five (45) years from the date issued as determined by the commission.

(f)

As determined by the commission, bonds and interest may be payable at a time or place whether within or without the state. Bonds may contain other provisions not inconsistent with this act.

(g)

Any bonds issued by the commission may contain an option to redeem all or any part as may be specified. The price of redemption, the terms and conditions and the procedure of notice shall be set forth in the proceedings of the commission and may appear on the face of the bonds.

(h)

Any bonds of the commission may be sold at, above or below par value, at public or private sale, in a manner and from time to time as determined by the commission. The commission may pay legal fees, expenses, premiums and commissions which it finds necessary or advantageous in connection with the issuance and sale.

(j)

Subject to the aggregate limits in subsection (b) of this section, additional bonds for a particular purpose may be issued provided the later issues shall recognize and protect any prior pledge made for any prior issue.

(k)

The commission may provide for the issuance of its bonds to refund any bonds then outstanding, including the payment of any redemption premium and any interest or premium accrued or to accrue to, the earliest or subsequent date of redemption, purchase or maturity of the bonds. Refunding shall be accomplished in the manner prescribed by W.S. 16
‑
5
‑
101 through 16
‑
5
‑
119 to the extent it is not inconsistent with this act.

24
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16
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111.

Bonds; security therefor.

(a)

The principal and interest on any bonds issued by the commission may be secured by a pledge of any revenues authorized under this act for the applicable bonds. The bondholders may not look to any general or other fund for payment of the bonds except the revenues pledged therefor. The bonds shall not constitute an indebtedness or a debt within the meaning of any constitutional or statutory provision or limitation. The bonds shall not be considered or held to be general obligations of the state but shall constitute its special obligations and the commission shall not pledge the state
'
s full faith and credit for payment of the bonds.

(b)

Each pledge, agreement or other instrument made for the benefit or security of any bonds of the commission is valid and binding from the time when made. The revenues and other monies pledged are immediately subject to the lien of the pledge without delivery or further act. The lien is valid and binding against persons having claims of any kind against the commission whether or not the persons have actual notice of the lien. Neither the resolution nor the indenture or other instrument by which a pledge is created need be recorded or filed.

(c)

The commission may provide in the proceedings under which bonds are authorized that any part of the project or project phase may be constructed, reconstructed or improved by the commission or designee of the commission, and may also provide for the time and manner of and requisites for disbursements to be made for the cost of construction and for all the certificates and approvals of construction and disbursements as the commission considers necessary.

(d)

Any resolution or trust indenture under which bonds of the commission are authorized may contain provisions for vesting in a trustee the properties, rights, powers and duties in trust as the commission determines. This may include any or all of the rights, powers and duties of the trustee appointed by the holders of any issue of bonds pursuant to W.S. 24
‑
16
‑
115.

24
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16
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112.

Exemption from taxation.

The exercise of the powers granted by this act constitutes the performance of an essential governmental function. The commission shall not be required to pay any taxes levied by any municipality or political subdivision of the state. The commission shall not be required to pay state taxes of any kind. The commission
'
s projects, property and monies and any bonds issued under this act, and the income therefrom, shall be free from taxation of every kind by the state, municipalities and political subdivisions of the state.

24
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16
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113.

Bonds as legal investments.

The bonds of the commission are legal investments which may be used as collateral for public funds of the state, insurance companies, banks, savings and loan associations, investment companies, trustees and other fiduciaries which may properly and legally invest funds in their control or belonging to them in bonds of the commission.

24
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16
‑
114.

State pledge not to impair bondholder
'
s rights and remedies.

The state pledges to the holders of any bonds issued under this act, that the state will not limit or alter the rights vested in the commission to fulfill the terms of agreements made with the holders, or in any way impair the rights and remedies of the holders until the bonds together with the interest, with interest on any unpaid installments of interest and all costs and expenses in connection with any action or proceeding by or on behalf of the holders are fully met and discharged. The commission is to include this pledge of the state in any agreement with the holders of the bonds.

24
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16
‑
115.

Appointment of trustee by bondholders; powers and duties thereof.

(a)

If the commission defaults in the payment of principal or interest on any bonds after they become due, whether at maturity or upon call for redemption, and the default continues for a period of thirty (30) days, or if the commission fails or refuses to comply with the provisions of this act, or defaults in any agreement made with the holders of any bonds, the holders of twenty-five percent (25%) in aggregate principal amount of the bonds of the issue then outstanding, by instrument or instruments filed in the office of the secretary of state, may appoint a trustee to represent the holders of the bonds for the purposes herein provided.

(b)

The trustee may, and upon written request of the holders of twenty-five percent (25%) in principal amount of such bonds then outstanding shall, in his or its own name:

(i)

By suit, action or proceeding enforce all rights of the bondholders to require the commission to carry out any other agreements with the holders of the bonds and to perform its duties under this act;

(ii)

Bring suit upon the bonds;

(iii)

By action or suit, require the authority to account as if it were the trustee of an express trust for the holders of the bonds;

(iv)

By action or suit, enjoin any acts or things which may be unlawful or in violation of the rights of the holders of the bonds;

(v)

Declare all the bonds due and payable, and if all defaults are made good, then, with the consent of the holders of twenty-five percent (25%) of the principal amount of the bonds then outstanding, to annul the declaration and its consequences.

(c)

In addition, the trustee has all the powers necessary or appropriate for the exercise of any functions specifically set forth in this act or incident to the general representation of bondholders in the enforcement and protection of their rights.

24
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16
‑
116.

Project delivery.

Due to the potential size and complexity of the project, alternative design and construction delivery methods may be used if the chief engineer of the department determines that using such methods is appropriate.

23
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16
‑
117.

Assistance by state agencies.

Upon request of the commission, any state agency may lend technical assistance, render advice and attend meetings with the directors and employees of the commission or the department as the commission requires in carrying out its functions and duties under this act.

Section 2.
W.S. 24
‑
1
‑
119 and 24
‑
8
‑
101 are amended to read:

24
‑
1
‑
119.

State highway fund created; income and expenditure
.

There is created a fund known as the state highway fund, to the credit of which the state treasurer, who is designated as the state official to receive all amounts paid by the United States under the act of congress approved July 11, 1916, shall place all monies previously received for the fund, all money subsequently received from the United States, under cooperative agreements as authorized, all money derived from taxes levied for such purpose or appropriated for the fund, all monies received from the sale of state bonds for highway construction or improvement, all money received from the counties under cooperative agreements as hereinbefore authorized, and all other monies received from donations or bequests, which may be accepted by the commission on behalf of the state of Wyoming, or from any source designated by law for that purpose. All monies in the fund shall be available for the purpose of this act without further appropriation and no warrant shall be drawn on the fund excepting on a voucher approved by the director of the department of transportation or an assistant authorized by the director and approved by the transportation commission.
Except for bonds issued pursuant to W.S. 24
‑
1
6
‑
110 i
t is provided that seventy-five percent (75%) of the amount of any bond issue subsequently issued by the state of Wyoming for the construction or improvement of state highways, after the payment of overhead expense, shall be apportioned to and spent in each county in the proportion which the assessed valuation of each county by the last general assessment bears to the total assessment of the state.

24
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8
‑
101.

Purpose, issuance and disposal
.

For the purpose of providing funds for the construction and improvement of public roads and highways in Wyoming, the state treasurer, with the approval of the governor is hereby authorized from time to time within the limits of the amount authorized by law to issue and dispose of bonds of the state of Wyoming to be designated as highway bonds.
Bo
nds issued under this section shall not be considered bonds issued under W.S. 24
‑
16
‑
110(b).

Section 3.
This act is effective immediately upon co
m
pletion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constit
u
tion.

(END)

1
SF0035