HB119 (2006) Detail

Relative to commercial advertising on toll booths.


HB 119-FN – AS INTRODUCED

2005 SESSION

05-0246

06/01

HOUSE BILL 119-FN

AN ACT relative to commercial advertising on toll booths.

SPONSORS: Rep. Crane, Hills 21

COMMITTEE: Transportation

ANALYSIS

This bill requires the commissioner of transportation to seek and allow commercial advertising on toll booths at any toll plaza where the E-Z Pass toll system is used. Revenue received from such advertising shall be deposited in the general fund.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

05-0246

06/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Five

AN ACT relative to commercial advertising on toll booths.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Section; Commercial Advertising. Amend RSA 237 by inserting after section 16-g the following new section:

237:16-h Commercial Advertising. The commissioner shall seek and allow commercial advertising on all toll booths at any toll plaza which uses at least one toll booth for the E-Z Pass system. Revenue from the advertising authorized under this section shall be deposited in the general fund.

2 Rulemaking. Amend RSA 237:16-d to read as follows:

237:16-d Rulemaking.

I. The commissioner may adopt such rules as are necessary to enforce the terms of this agreement, which shall be exempt from the provisions of RSA 541-A and shall have the effect of law, and which shall provide for each of the member states or agencies to collect tolls and perform audits on behalf of the other member states or agencies. Nothing in this [section] paragraph shall be construed to authorize the adoption of rules which alter any existing or establish any new tolls, fees, penalties, or interest charges; provided, however, that the rules may include tolls, fees, penalties, or interest charges which are otherwise provided for by the laws of this state.

II. The commissioner shall adopt rules, under RSA 541-A, relative to the location, size, appearance, and number of commercial advertisements permitted on a toll booth under RSA 237:16-h, the charge for advertising, the application process, any forms required, and the length of time the advertising may be displayed before renewal is required.

3 Additional Uses of E-Z Pass System; Rulemaking Distinguished. Amend RSA 237:16-g, I to read as follows:

I. The financial obligation has been incurred for a purpose approved by the department pursuant to RSA 237:16-d, I, or the Interagency Group pursuant to procedures adopted in accordance with RSA 237:16-c.

4 Exceptions from Administrative Procedure Act; Rules for E-Z Pass Interagency Agreement for Operations Distinguished. Amend RSA 541-A:21, I(y) to read as follows:

(y) RSA 237:16-d, I, relative to the E-Z Pass Interagency Agreement for Operations.

5 Evasion of Tolls and Charges; Reference Added. Amend the introductory paragraph of RSA 236:31, IV to read as follows:

IV. Notwithstanding RSA 237:16-d, I, the department shall adopt rules under RSA 541-A for the implementation of a system to detect, record, verify, and administratively enforce violations of this section. The rules shall include:

6 Effective Date. This act shall take effect 60 days after its passage.

LBAO

05-0246

12/14/04

HB 119-FN - FISCAL NOTE

AN ACT relative to commercial advertising on toll booths.

FISCAL IMPACT:

      The Department of Transportation indicates this bill will increase state restricted turnpike fund revenues, expenditures and state general fund expenditures by $50,000 in FY 2006 and $5,000 in FY 2007 and each year thereafter, and increase state unrestricted general fund revenue by $300,000 in FY 2006 and each year thereafter. There will be no fiscal impact on county and local revenue or expenditures.

METHODOLOGY:

    The Department of Transportation (DOT) states that this bill will allow commercial advertising on toll booths at any toll plaza where the E-Z Pass toll system is used. The unrestricted general fund and restricted turnpike fund revenue and expenditure increases that result from this bill are shown below:

    Revenue Increases FY 2006 FY 2007 FY 2008 FY 2009

    Unrestricted:

    General Fund

    Advertising Revenue $300,000 $300,000 $300,000 $300,000

    Restricted:

    Turnpike Fund

    Reimb. from Gen’l Fund $ 50,000 $ 5,000 $ 5,000 $ 5,000

    Expenditure Increases

    General Fund

    To Turnpike Fund $ 50,000 $ 5,000 $ 5,000 $ 5,000

    Turnpike Fund

    Contract Management $ 50,000 $ 5,000 $ 5,000 $ 5,000

    DOT determined these revenue and expenditure fiscal impacts using the following assumptions:

      • The effective date for implementing this bill is July 1, 2005.

      • Every toll plaza (84 toll lanes) on the NH turnpike system will be eligible for advertising, since all will provide E-Z Pass.

      • Advertising will be limited to advertising space on plaza infrastructure and does not extend to user guides, transponders, website, receipts, ground mounted signs, etc.

      • A marketing company will be retained by DOT to solicit firms interested in advertising at toll plazas.

      • The contract term will be four years.

      • The revenue split between the State and the marketing firm is a negotiated item and is anticipated to be 60/40 respectively.

      • Advertising at the toll plazas is expected to generate $500,000 of gross revenue per year. The State’s 60% share would total $300,000 per year.

      • The cost to retain and manage the marketing company in FY 2006 is $50,000.

      • The DOT will incur costs on average of $5,000 per year relative to managing the marketing company contract; i.e. payments, dispute resolution, etc.

      • The DOT assumes all costs incurred by the Department, Bureau of Turnpikes are reimbursed to the Turnpike Fund prior to allocating remaining revenues to the General Fund.

Links

HB119 at GenCourtMobile

Action Dates

Date Body Type

Bill Text Revisions

HB119 Revision: 9470 Date: Jan. 21, 2010, midnight

Docket