FISCAL NOTE
FUND(S):
Sources of Revenue:
Special Fund
Legislation creates:
A New Program
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The potential cost and income from the legislation are unknown but the bill itself is contrary to federal law regarding advertising.
SEE MEMORANDUM
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2013
Increase/Decrease
(use"-") |
2014
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):
The costs and income are unknown as it places the state's highways up for awarding to the highest bidder.
Memorandum
The legislation, while innovative, has flaws:
1. It provides that the Division of Highways (DOH) allow the highest bidder to install signage with the bidder's name, logo and a safety message, if desired. Federal laws are very specific in preventing additional signage with sponsorships, logos, etc. Federal law also prevents the addition of new billboards. The DOH must annually certify to the Federal Government that we are maintaining their requirements or suffer an approximate $17 Million annual loss until brought back into compliance.
2. The DOH can and does already accept donations from private and public entities for highway improvements, maintenance and construction. Natural resource companies, major commercial and retail establishments and developments are already required to reach agreements for improvements and/or maintenance if it is determined that their activities will impact highways. The CETA legislation, WV Code 17-28, allows counties and municipalities also to enter into agreement with the DOH for funding improvements and the Public Private legislation, WV Code 17-27, allows for corporations to do the same.
3. The legislation also would require the DOH Commissioner to reach a goal of 10 sponsors within four years. Sponsorships would vary depending on the item and/or highway funded .
4. The DOH does not feel that this legislation is needed.
Person submitting Fiscal Note: Kathy J Holtsclaw
Email Address: Kathy.J.Holtsclaw@wv.gov