Revision: May 7, 2009, midnight
HB 671-FN – VERSION ADOPTED BY BOTH BODIES
04Mar2009… 0302h
2009 SESSION
08/05
HOUSE BILL 671-FN
AN ACT amending the motorist service signing program to allow the department of transportation to charge a fee for attraction signs.
COMMITTEE: Public Works and Highways
This bill amends the motorist service signing program to allow the department of transportation to charge a fee for attraction signs.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
04Mar2009… 0302h
09-0841
08/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nine
AN ACT amending the motorist service signing program to allow the department of transportation to charge a fee for attraction signs.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Motorist Service Signing Program. Amend RSA 230:49 to read as follows:
230:49 Motorist Service Signing Program Established; Signs.
I. The location of [fuel and other] essential motorist services, including food, fuel, lodging, camping, and attractions, on connecting service roads within 3 miles of the intersection with the limited access highway, within 5 miles for a campground, within 20 miles for an attraction, or within 1 mile of the intersection in urban compact areas, may be indicated to users of the limited access facility by appropriate signs, the specifications of which shall be determined by the commissioner of transportation. The distance specified shall be measured by computing the travel length from the terminal of an exit ramp to the nearest point along the public highway where the nearest existing driveway entrance to the service is reached.
II. Signs permitted under paragraph I may be rented for a fee established by rules adopted by the commissioner of transportation pursuant to RSA 541-A. The amount of the fee charged to any participant shall be reasonable and equitable and not exceed a fair portion [of the cost of implementing and maintaining the motorist service signing program. The sum of fees collected shall be sufficient to ensure the motorist service sign program is self-supporting. The fees collected shall not be used to generate revenue beyond the reasonably related costs, less any federal funds or other revenue reasonably related thereto, of administering and maintaining the motorist service sign program] of the full cost of administering the motorist service signing program, including labor, equipment, maintenance, and material costs for state and contract services. The sum of the fees collected shall be sufficient to ensure the motorist service sign program is self-supporting.
2 Effective Date. This act shall take effect 60 days after its passage.
LBAO
09-0841
Amended 04/09/09
HB 671 FISCAL NOTE
AN ACT amending the motorist service signing program to allow the department of transportation to charge a fee for attraction signs.
FISCAL IMPACT:
The Department of Transportation states this bill, as amended by the House (Amendment #2009-0302h), will increase state restricted revenues by $239,350 in FY 2009, $801,850 in FY 2010, $599,350 in FY 2011, $644,350 in FY 2012, and $689,350 in FY 2013, and will increase state restricted expenditures by $270,000 in FY 2009, $832,500 in FY 2010, $630,000 in FY 2011, $675,000 in FY 2012, and $720,000 in FY 2013. This bill will have no impact on county and local revenues and expenditures.
METHODOLOGY:
The Department of Transportation (DOT) states this bill requires the Department to charge vendors a fee for the motorist service signing program to cover the full cost of administering the program. The Department estimates when the program is fully implemented, there will be 300 sign pairs (one mainline sign and one ramp sign) and 900 logo panels. The Department states there are currently 238 ramp sign installations and 613 logo panels, however, for the purpose of this estimate, it is assumed that all ramp signs and participants will be new. The Department estimates expenditures for installation of 300 new mainline signs of 18 feet by 8 feet and 300 new ramp signs at 8 feet by 6 feet as follows:
300 mainline signs x 18’ x 8’ x $45/sq ft = $1,944,000
300 ramp signs x 8’ x 6’ x $45/sq ft = $ 648,000
Total installation cost = $2,592,000
Rounded By DOT = $2,700,000
To establish a revenue neutral fee structure the Department assumes the initial application fee for each applicant to be $3,000 per direction ($2,700,000/900 applicants). The Department states the annual cost to administer the program will be as follows:
Principal Engineer (LG 33) @ 3% of time |
$2,610 |
ET V (LG 22) @ 30% of time |
$15,941 |
PS 1 (LG 19) @ 30% of time |
$12,325 |
Executive Secretary (LG 11) @ 20% of time |
$6,677 |
Heavy Sign Foreman (LG 17) @ 15% of time |
$5,677 |
HM III (LG 11) @ 15% of time |
$5,008 |
Total Salary |
$48,238 |
Total Benefits |
$24,681 |
Annual Depreciation of Sign Inventory @ 20-year-linear-depreciation |
$129,600 |
Total Annual Costs |
$202,519 |
Rounded By DOT |
$225,000 |
To establish a revenue neutral fee structure the Department assumes the annual renewal fee for each participant to be $250 ($225,000/900 participants), which will begin one year after sign installation. The Department states revenues from the current $50 annual renewal fee are $30,650 per year ($50 x 613 participants), therefore the increase in revenues will be as follows:
Year |
New Signs Per Year |
Applicant Revenues |
New Logos Per Year |
Renewal Fee Revenues |
Total New Revenues |
Current Revenues |
Revenue Increase |
FY 2009 |
30 |
$270,000 |
90 |
|
$270,000 |
$30,650 |
$239,350 |
FY 2010 |
90 |
$810,000 |
270 |
$22,500 |
$832,500 |
$30,650 |
$801,850 |
FY 2011 |
60 |
$540,000 |
180 |
$90,000 |
$630,000 |
$30,650 |
$599,350 |
FY 2012 |
60 |
$540,000 |
180 |
$135,000 |
$675,000 |
$30,650 |
$644,350 |
FY 2013 |
60 |
$540,000 |
180 |
$180,000 |
$720,000 |
$30,650 |
$689,350 |
The Department did not provide information on current program expenditures, therefore, the increase or decrease in program expenditures cannot be determined at this time. The Department estimates program expenditures under the proposed bill as follows:
Year |
New Signs Per Year |
Installation Expenditures |
Additional Maintenance Expenditures |
Total Expenditures |
FY 2009 |
30 |
$270,000 |
|
$270,000 |
FY 2010 |
90 |
$810,000 |
$22,500 |
$832,500 |
FY 2011 |
60 |
$540,000 |
$90,000 |
$630,000 |
FY 2012 |
60 |
$540,000 |
$135,000 |
$675,000 |
FY 2013 |
60 |
$540,000 |
$180,000 |
$720,000 |