|Date Requested:February 15, 2011
Time Requested:04:15 PM
| FUND(S) |
STATE ROAD FUND
Sources of Revenue
Legislation creates:Neither Program nor Fund
Effect this measure will have on costs and revenues of state government.
The legislation will require bonding on all major construction projects by other industries. The requirement is to protect the State's roads and bridges and offset the costs of possible road damage.
The bill will not impact the agency as the DOH already requires bonds for many activites within the State's right of way, including construction.
|Effect of Proposal||Fiscal Year|
|1. Estmated Total Cost||0||0||0|
|Repairs and Alterations||0||0||0|
|2. Estimated Total Revenues||0||0||0|
3. Explanation of above estimates (including long-range effect):
The impact is unknown as the bonding authority will only provide a mechanism for the DOH to recoup the costs for damages to the State's roads and bridges should the developer refuse to do so.
The DOH already enters agreements requiring bonds. 17-2A-8(23) allows the Highway Commissioner to "Invoke any appropriate legal or equitable remedies...to protect and preserve the state road and highway system..." The DOH does this by agreements/permits with bonding.
State Code 17C-17A-13 on coal roads states that "These agreements shall contain necessary criteria to assure any damages associated with the transport of coal upon the respective public highways are ameliorated." The criteria used by the DOH is a bond.
While the DOH feels that we do have the authority to require bonding, new code specifically addressing the use of bonds is not opposed.