FISCAL NOTE
Date Requested: March 11, 2021
Time Requested: 11:30 AM |
| Agency: |
Parkways Authority, WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3211 |
Introduced |
HB3076 |
|
|---|
| CBD Subject: |
Roads and Transportation |
|---|
|
FUND(S):
Toll Road Revenues
Sources of Revenue:
Other Fund Toll Road Revenues
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.
This bill does not affect the general revenue of the State of West Virginia. The West Virginia Turnpike is operated and maintained by the Parkways Authority with Turnpike toll revenues paid by the users of the highway. Thus, no State tax or general revenue dollars are used in the maintenance or operation of the Turnpike or in paying debt service on Turnpike bonds issued by the Authority.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2021
Increase/Decrease
(use"-") |
2022
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 |
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.
See Fiscal Note Summary above for information regarding the fiscal impact of this bill on the State of West Virginia.
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.
The following contains the Authority’s concerns with the amendment contained within this Bill.
• Parkways Authority, effective June 21, 2019, entered into a four (4) year sponsorship contract with Travelers Marketing, LLC on behalf of the sponsor, State Farm Mutual Automobile Insurance Company. Pursuant to this contract, State Farm Mutual Automobile Insurance Company sponsored the Parkways Authority Courtesy Patrol which then became the WV Turnpike State Farm Safety Patrol. The form and substance of the sponsorship agreement as well as the concept of sponsorship has been fully approved and authorized by the Federal Highway Administration and provisions of the US Code and the Code of Federal Regulations. This specific agreement between Parkways and Travelers Marketing was reviewed and approved by the Federal Highway Administration as well as the West Virginia Division of Highways/WVDOT for legal sufficiency prior to approval and execution by the Parkways Authority. Travelers Marketing, the entity that engaged in the contract with the sponsorship from State Farm, and State Farm itself are depending on the provisions of the current sponsorship contract.
• The provisions of House Bill 3076 would prohibit the Parkways Authority from operating a courtesy patrol program providing assistance to motorists on any highway in connection with any of its projects.
• House Bill 3076 violates and materially impairs the Authority’s contractual obligation to operate the sponsored safety patrol to satisfy its obligations to the sponsor and for the benefit and protection of Parkway’s patrons.
• House Bill 3076 also violates the: (i) The United States Constitution, Article I, Sec. 10 prohibiting the impairment of contracts, stating in appropriate part that “no… state shall… pass any bill of attainer, expo facto law or law impairing the obligation of contracts…” and (ii) West Virginia Constitution, Article III, Sec. 4 prohibiting laws that would impair existing contracts, stating in relevant part that “… no bill of attainer, expo facto law, or law impairing the obligations of a contract shall be passed.”
• On August 18, 2018 the West Virginia Parkways Authority (the “Authority”) issued its $166,370,000.00 Senior Lien Turnpike Toll Revenue Bonds, Series 2018 (the “Bonds”), pursuant to the Authority’s enabling statute in connection with the Roads to Prosperity Highway Program.
• In connection with the issuance and sale of the Bonds, the Authority and United Bank, as Trustee, entered into a Master Trust Indenture (the “MTI”) dated August 1, 2018, containing certain contractual obligations to and for the benefit of those utilizing the roadway and the Bond holders who hold the Bonds that were issued as shown above.
• Section 503 of the Master Trust Indenture (MTI) provides that the Parkways Authority shall at times maintain the Turnpike in good repair, working order and condition. This is a legal and fiduciary obligation of the Authority by which the Authority is legally bound with respect to how it operates the West Virginia Turnpike. If the Turnpike were to be operated without the benefit of a Safety Patrol to render assistance to stranded motorists, a significant safety feature, (as HB 3076 would purport to require) the Turnpike would not be operating as required as contemplated by Section 503 of the MTI in good working order and condition. It is unsafe, especially in the rural areas, which constitute about 90% of the Turnpike right-of-way, to fail to render assistance to stranded motorists when vehicles may be disabled. The safety situation is even worse if stranded vehicles, motorists and their passengers are stranded on the roadside during the dark, in frequent periods of bad weather, and/or in or near construction zones (of which there are several at any given time).
• Accordingly, for these and other reasons, the Safety Patrol on the West Virginia Turnpike is deemed an essential safety function for the highway. The MTI also requires that the Authority follow the safety and other recommendations of the Authority’s consulting engineers (the MTI requires the Authority to retain and use such consulting engineers). The consulting engineers have already determined that having the Safety Patrol on the West Virginia Turnpike serves an important safety function and is therefore an appropriate use of Toll Revenue because it represents a safety feature that is required to be deployed on the highway in order for it to be run in a safe and efficient manner.
• The Parkways Authority between 2012 and 2020 provided 76,523 motorist assists. Eliminating that function is not only a great disservice to the traveling public, it also significantly reduces the safety features that would otherwise be available on the West Virginia Turnpike.
• This Bill, if adopted, would put, the Authority in the untenable position of having to choose between violating State Law which, under this Bill, would suddenly prohibit the operation of a courtesy patrol on the Turnpike, or (A) violating its contractual obligations under the MTI (as noted above), and (B) violating its contractual obligations to the sponsor of the State Farm Safety Patrol as discussed above. For all the reasons stated above the Parkways Authority feels it is legally compelled under the circumstances to oppose passage of this bill.
Person submitting Fiscal Note: Robin Shamblin
Email Address: Rshamblin@wvturnpike.com