HOUSE BILL NO. 460

INTRODUCED BY S. ANDERSON

A BILL FOR AN ACT ENTITLED: "AN ACT REQUIRING THE DEPARTMENT OF TRANSPORTATION TO ESTABLISH A PILOT PROJECT FOR CONTRACTING WITH THE PRIVATE SECTOR TO PERFORM HIGHWAY MAINTENANCE IN CERTAIN COUNTIES; ESTABLISHING AN ADVISORY PANEL TO DESIGN A PROJECT PLAN; AMENDING SECTIONS 60-2-203 AND 60-3-202, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND A TERMINATION DATE."

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

Section 1. Section 60-2-203, MCA, is amended to read:

"60-2-203. Maintenance responsibility. Except as provided in [sections 3 and 4], the department shall maintain all public highways or portions of public highways that it maintained on July 1, 1976."

Section 2. Section 60-3-202, MCA, is amended to read:

"60-3-202. Funding highway system maintenance. (1) For the purpose of funding the increased cost of maintaining the state highway system as designated in 60-2-128, 1/4 cent for each gallon of the special fuel tax collected under 15-70-321 and 1/4 cent for each gallon of the gasoline license tax collected under 15-70-204 are allocated for highway maintenance.

(2) The department shall use a portion of the funding allocated for highway maintenance provided in subsection (1) for the purposes of the highway maintenance pilot project established in [sections 3 and 4]."

NEW SECTION. Section 3. Highway maintenance pilot project. (1) There is a highway maintenance pilot project. Subject to [section 4] and this section, the department shall establish and administer a pilot project to contract, under the provisions of 60-2-112 and 60-2-113, for highway maintenance with private companies.

(2) The pilot project is limited to maintenance activities in the counties that compose the commission district provided for in 2-15-2502(1)(e).

(3) During the course of the pilot project, the department shall enter into not less than two and not more than five contracts and shall evenly distribute the maintenance projects throughout the geographic region identified in subsection (2).

(4) The advisory panel established in [section 4] shall monitor the progress of the pilot project and report to an appropriate legislative interim committee, as provided in [section 4(4)(b)], and to the 57th and 58th legislatures. A final report must be provided to the 59th legislature. The reports must include but are not limited to a breakdown of the costs associated with having conducted the pilot project and a comparison of the direct and indirect costs of contracting for highway maintenance services versus all direct and indirect costs of maintenance services performed by the department.

NEW SECTION. Section 4. Highway maintenance pilot project advisory panel. (1) For the purposes of this section, "panel" means the highway maintenance pilot project advisory panel established in this section.

(2) (a) There is a panel composed of the following three members:

(i) a representative of the department, appointed by the director;

(ii) a representative of the private contracting industry, appointed by the governor from a list of three nominees provided by the Montana contractors association; and

(iii) a representative of the private engineering industry, appointed by the governor from a list of three nominees provided by the consulting engineers' council of Montana.

(b) Nominees must be submitted to the governor's office no later than July 1, 1999.

(c) Appointments must be made by the governor no later than July 31, 1999.

(d) The panel terminates October 1, 2005. If a member of the panel resigns or is otherwise unable to serve during the panel's existence, another member must be appointed from the same category with the same procedure provided in this subsection (2).

(3) The panel shall submit a pilot project plan to the department no later than September 1, 1999. The plan must contain:

(a) the general design of the pilot project;

(b) the pilot project parameters and requirements;

(c) pilot project quality specifications;

(d) penalties for noncompliance with the quality specifications;

(e) public safety requirements;

(f) bonding and insurance requirements;

(g) reporting requirements and deadlines;

(h) dates by which contracts must be entered into; and

(i) any other aspects of the pilot project not included in [section 3] or this section that the panel determines are necessary for the operation of the pilot project.

(4) The panel shall:

(a) establish the parameters for and select the private firm to conduct an independent comparison of the direct and indirect costs of contracting for highway maintenance services versus all direct and indirect costs of maintenance services performed by the department; and

(b) report to an appropriate legislative interim committee on a quarterly basis.

(5) The department shall:

(a) implement the panel's pilot project plan upon its submission by the panel;

(b) operate the pilot project in accordance with the plan;

(c) report to the panel on a regular basis;

(d) provide administrative support for the panel;

(e) provide to the contractors who participate in the pilot project a list of employees whose positions are eliminated as a result of any department reduction in force. This subsection (5)(e) does not affect a department employee's ability to take advantage of the provisions of Title 2, chapter 18, part 12.

(f) fund the study required under subsection(4)(a) from the highway nonrestricted account in the state special revenue fund.

(6) The legislative interim committee that assumes oversight of the pilot project may:

(a) monitor the progress of the pilot project; and

(b) advise the panel and the department.

(7) Contracts entered into subject to [section 3] and this section may not be assigned.

(8) A participant in the pilot project who has contracted with the department to provide highway maintenance services may purchase or lease equipment, buildings, or land from the department that is not in use if the purchase or lease will reimburse the department for the cost of the land or the cost, less depreciation, of the equipment or buildings.

NEW SECTION. Section 5. Codification instruction. [Sections 3 and 4] are intended to be codified as an integral part of Title 60, chapter 2, part 2, and the provisions of Title 60, chapter 2, part 2, apply to [sections 3 and 4].

NEW SECTION. Section 6. Effective date. [This act] is effective on passage and approval.

NEW SECTION. Section 7. Termination. [This act] terminates January 1, 2005.

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