Date Requested:February 15, 2011
Time Requested:04:15 PM
Agency: Highways, Division of
CBD Number: Version: Bill Number: Resolution Number:
2011R2650 Introduced HB3141
CBD Subject: BONDING AUTHORITY
FUND(S)
STATE ROAD FUND
Sources of Revenue
Special Fund
Legislation creates:
Neither Program nor Fund

Fiscal Note Summary

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.

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2011
Increase/Decrease
(use"-")
2012
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
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.


Memorandum
Person submitting Fiscal Note:
Kathy.J.Holtsclaw
Email Address:
Kathy.J.Holtsclaw@wv.gov
    
    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.