House Bill 4476
Public-Private Transportation Act

Part of what makes West Virginia suc wonderful place to live is its unique and rugged terrain. Unfortunately, that uniqueness makes an important element of economic development, road building, a very expensive prospect.

And the state is getting bogged down with that expense. We get some help from the federal government – it provides 44 percent of the State Road Fund – but we cannot spend federal money on three-quarters of our roads.

That’s why House Bill 4476, the Public-Private Transportation Act, is so important. As noted in the legislation, the state Division of Highways does not have sufficient funding to build the highways, but private entities may be willing to assist in the development and construction of  roads using innovative financing mechanisms, including designing, building, contracting and financing.

Then everyone benefits from the resulting economic development.

Specifically, the bill permits the state to enter into comprehensive agreements with private entities to construct or improve transportation facilities. In each instance, the Division of Highways will solicit conceptual proposals as to specific transportation facilities to be constructed or improved, review and approve such proposals, then enter into comprehensive agreements with private entities to cover the construction/improvement and operation of the transportation facilities.

The Legislature must approve all comprehensive agreements by adoption of a concurrent resolution, and the Governor must also approve any such agreements already approved by the Legislature. Developers will be permitted to realize a "reasonable maximum rate of return on investment" in the qualified transportation facility, including agreed-upon "user fees" that do not "unreasonably discourage use" of the transportation facility.

Any public entity can dedicate any property interest for use as a qualified transportation facility. The state can also take action to obtain federal, state, or local assistance, including available funding from grants/loans. However, the full faith and credit of the state or its political subdivision may not be pledged to secure any financing of the developer.

Condemnation could be used to secure necessary property rights, but not if the subject project involves the extraction of mineable minerals outside the defined 1,000-foot corridor of the subject project.

At the termination of a comprehensive agreement, the subject transportation facility would be dedicated to DOH for public use.  All qualified transportation facilities are deemed public improvements, and as such are subject to prevailing wage, competitive bidding, and local labor force requirements.  Developers would not be required to pay taxes or assessments on qualified transportation facilities, other than consumer sales/service taxes collected from users.

I believe this new law will go a long way toward helping West Virginia maintain a highway system that can support continued growth and bring prosperity to communities throughout the state.

I welcome and appreciate your input on these or any other legislative issues. Write to House Majority Leader Joe DeLong, Building 1, Room 228-M, 1900 Kanawha Blvd. E., Charleston, 25305, or joe@joedelong.com, or call 304-340-3220.