FISCAL NOTE
Date Requested: January 20, 2023 Time Requested: 02:36 PM |
Agency: |
Highways, Division of |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
1915 |
Introduced |
HB2888 |
|
CBD Subject: |
Roads and Transportation |
---|
|
FUND(S):
State Road Fund
Sources of Revenue:
Special Fund
Legislation creates:
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
Proposed House Bill 2888 would make any contract utilizing Federal-Aid to be in non-compliance with Federal contracting requirements. Specifically Interstate Commerce laws. The West Virginia Division of Highways (DOH) currently receives approximately $700M in federal-aid per year. This money funds the vast majority (monetarily) of our engineering, right-of-way and construction contracts.
By limiting DOH from utilizing any vendor, in state or out of state, this will limit competitive bids and may result in higher cost for service.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2023 Increase/Decrease (use"-") |
2024 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
-700,000,000 |
-720,000,000 |
-750,000,000 |
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 |
0 |
0 |
Explanation of above estimates (including long-range effect):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
The DOH utilizes contracts to deliver the vast majority of its improvement projects. This includes all aspects of these improvements. Proposed House Bill 2888 would not allow DOH to use Federal-Aid on any of these contracts.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
House Bill 2888 uses language "statewide contracts" that has a specific meaning. However, it then uses language that seems to include all contracting. DOH is unclear of the scope of the proposed contracting prohibition. Also, the bill uses language such as "in-state vendor" versus "out of state vendors", DOH is unclear how to determine which companies fall in these categories. For instance, many of our aggregate vendors have quarriers in West Virginia but are owned by out of state entities.
Person submitting Fiscal Note: Lorrie Hodges
Email Address: lorrie.a.hodges@wv.gov