FISCAL NOTE

Date Requested: January 21, 2020
Time Requested: 12:14 PM
Agency: Highways, Division of
CBD Number: Version: Bill Number: Resolution Number:
1474 Introduced SB497
CBD Subject: Roads and Transportation


FUND(S):

State Road Fund

Sources of Revenue:

Special Fund

Legislation creates:

Decreases Existing Revenue, Increases Existing Expenses



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.
    
    The proposed Senate Bill 487, creates an exception to Outdoor Advertising Code allowing a person to place signs advertising events sponsored by not-for-profit or civic organizations off premise. Outdoor Advertising rules at both the federal and state level are complex. The DOH (Outdoor Advertising Section) has performed a very preliminary review of the proposed bill. The Federal Highway Administration Division office previously provided comments on this bill as introduced in the 2017 session as HB 2365. SB 487 includes some minor revisions to the former HB 2365 removing the restriction on frequency (no more than once per year) and adding civic organizations to the list of sponsors affected. Pertinent information from FHWA’s review of previous similar proposed legislation is incorporated as appropriate.
    
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2020
Increase/Decrease
(use"-")
2021
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 50,000,000 48,000,000
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.
    
    Federal Highway Administration (FHWA)demonstrates the financial impact should it be determined that DOH is not meeting the requirements of maintaining effective control of outdoor advertising. DOH's federal apportionment for Federal Fiscal Year 2020 is roughly $481 million resulting in an estimated penalty of up to $48.1 million (10% of the annual apportionment) if FHWA made the referenced determination. The bonus would be an addition $2 million.



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.
    •This and similar bills appear to violate federal law as well as the DOH’s January 6, 1969 agreement with the FHWA as there were no provisions to regulate temporary outdoor advertising signing with respect to location, sign size, spacing or lighting which is in violation of 23 CFR 750. Information can be found at: https://www.fhwa.dot.gov/legsregs/directives/fapg/cfr0750g.htm
    •Section 2 allows signs to be placed three weeks in advance; however, no specific time period after the “event” is addressed.
    •No provision for penalties are mentioned for those that advertise, in clearly a temporary manner that is not consistent with this bill
    •The bill is silent that sponsorship cannot be included on any sign, display or device
    •It is unclear whether this allows unlimited placement of signing for events
    •It should be noted that in our quick review, we could find no similar program in another state
    •Special sale is open to significant interpretation and should be further defined
    •At first blush, temporary signing seems to require a significant amount of manpower and will exceptionally difficult to manage due to its transient nature
    •A subsection should be added to preclude the placement of sign in a location, manner, size that would constitute an obstruction or in any way affect the safety of the traveling public or efficient flow of traffic
    



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