FISCAL NOTE
Date Requested: January 17, 2018
Time Requested: 11:33 AM |
| Agency: |
Highways, Division of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1229 |
Introduced |
SB309 |
|
|---|
| CBD Subject: |
|
|---|
|
FUND(S):
State Road
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.
The proposed Senate Bill 309, creates a Temporary Sign Placement License under Outdoor Advertising also requiring the DOH to promulgate rules. Outdoor Advertising rules at both the federal and state level are complex. The DOH (Outdoor Advertising and Legal Division) has performed a very preliminary review of the proposed bill. A representative from the Federal Highway Administration Division office has also been requested to review; however, we have not yet received comments. Pertinent information from FHWA’s review of previous similar proposed legislation is incorporated as appropriate.
Fiscal Note Detail shown below assumes that only rules will be promulgated in calendar year 2018 with an effective date sometime in FY 2019. We have no real basis for an estimate of temporary signing and will assume the maximum allowable fee and that each licensee can place signs only for a specific event that falls under his/her authority for that license.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2018
Increase/Decrease
(use"-") |
2019
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
25,000 |
680,700 |
1,021,020 |
| 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 |
143,000 |
214,500 |
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.
2018 Estimated cost of rule promulgation $25,000
2019 Estimated cost assume 8 hours processing, including administration and site visit (could be significantly more) $680,700\
Estimated cost Upon full implementation assume 50% increase in license requests $1,021,020
2019 Estimated Revenue assume 1 license/per county/per week $143,000
2019 Estimated Revenue Upon full implementation assume 50% increase in license requests $214,500
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.
Similar proposed bills appeared 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
• The proposed legislation begins to address these issues from a regulatory standpoint with the understanding that rules would need to be promulgated to specify size, spacing and lighting (which would likely be impermissible in a temporary setting).
• A subsection should be added to preclude the placement of signs 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
• 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, without a license
• No timeframe in advance of events is indicated. Unclear whether a license covers a single event or all events under the authority of an individual or group
• It should be made clear that no sponsorship can be included on any sign, display or device
• Generally Outdoor Advertising is structured issuing licenses to those wishing to advertise and the permits to licensees for specific locations (sign faces). For temporary placements, would a permit be a better vehicle which would be site and time specific?
• It is unclear whether a license allows unlimited placement of signing for any and all events under that license holder’s authority or if a license is required for each event and all signs for that specific event would be included under that license (see above comment)
• It should be noted that in our quick review, we could find no similar program in another state from which to draw comparisons or feedback
• Special sale is open to significant interpretation and should be further defined
• We do see significant opportunity for confusion if implemented, as most people are unaware where the DOH ROW lines are located, which would seem to indicate that all locations might require review
• At first blush, temporary signing regulation seems to require a significant amount of manpower (not all captured in the fiscal note) and will be exceptionally difficult to manage due to the transient nature
Person submitting Fiscal Note: Lorrie Hodges
Email Address: lorrie.a.hodges@wv.gov