FISCAL NOTE

Date Requested: January 21, 2016
Time Requested: 03:11 PM
Agency: Highways, Division of
CBD Number: Version: Bill Number: Resolution Number:
2264 Introduced HB4188
CBD Subject:


FUND(S):



Sources of Revenue:

Other Fund State Road Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    The proposed legislation allows for monies or maintenance or other services to be received from potential commercial sponsors of Rest Areas and Welcome Centers. It is estimated the annual revenue for commercial sponsorship would be $200,000 per year.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2016
Increase/Decrease
(use"-")
2017
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 200,000 200,000


Explanation of above estimates (including long-range effect):


    See Fiscal Note Summary above for information regarding the fiscal impact of this bill on the State of West Virginia.



Memorandum


    The West Virginia Department of Transportation, Division of Highways (WVDOH) currently is responsible for the maintenance and operations of the Rest Areas and Welcome Centers in the State with an estimated total annual budget of $4.2 million. The potential revenue stream from the implementation of the proposed legislation is not anticipated to become effective by the end of the 2016 State Fiscal Year and the full annual revenues would be first realized in the 2017 State Fiscal Year. The legislation provides for the potential sponsor to provide a monetary amount or provide maintenance or other services at the facility.
    The amount of revenue potential for sponsorship as a standalone asset can only be estimated at this time based on similar revenue streams received by other states. The Virginia DOT has a similar program that includes Interstate Sponsorship Recognition Signage, interior commercial advertising, exclusive vending rights and the annualized revenue was $666,667. Utilizing their model and the fact that West Virginia does not have the same population, traffic volumes, or similar number of facilities and thus, less exposure for the sponsor, it is estimated the revenue would be $200,000. An in-depth market analysis would need to be performed to better quantify the revenue.
    



    Person submitting Fiscal Note: Lorrie Hodges
    Email Address: lorrie.a.hodges@wv.gov