NOTE:  As provided in LFC policy, this report is intended only for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used for other purposes.

 

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F I S C A L   I M P A C T   R E P O R T

 

 

SPONSOR:

Carraro

 

DATE TYPED:

2/18/03

 

HB

 

 

SHORT TITLE:

Highway Rest Area Maintenance Funding

 

SB

 611

 

 

ANALYST:

Reynolds-Forte

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

See Narrative

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Relates to Appropriation in the General Appropriation Act

 

SOURCES OF INFORMATION

 

Responses Received From

State Highway and Transportation Department

 

SUMMARY

 

     Synopsis of Bill

 

SB611 adds new language to the Highway Beautification Act which 1) prohibits the State Highway and Transportation Department from using state or federal dollars to supervise, maintain or operate a safety rest area, and 2) gives the Department the authority to contract with private food providers to supervise, maintain or operate the safety rest areas and/or to operate a private restaurant at the safety rest area.

 

SB611 also changes the name of the state highway commission to the state transportation commission.  This brings the law into compliance with the recently passed constitutional amendment. 

 

The bill has a July 1, 2003 effective date.

 

Significant Issues

 

If state funds cannot be used to clean, operate or maintain these rest areas, and there are not “private food providers” who are willing to operate and maintain the rest areas, the Department will not be able to use their funds or staff to clean or maintain the rest area.

 

FISCAL IMPLICATIONS

 

Approximately $4 million is contained in the State Highway and Transportation Department’s maintenance program budget for FY04 in the General Appropriation Act for maintenance and improvements of rest areas.  If there are not qualified providers to do the work, these funds will need to be redistributed for other purposes within the Department if SB611 is enacted.

 

ADMINISTRATIVE IMPLICATIONS

 

The Department currently has contracts in place with private contractors, which provide labor, equipment and materials required to clean, maintain and make minor repairs to the rest areas.  Any of these contracts which do not meet the “private food provider” requirement in the bill will need to be terminated.  New contracts will need to be established.

 

OTHER SUBSTANTIVE ISSUES

 

Major utility infrastructure is not currently available at the rest areas. 

 

POSSIBLE QUESTION

 

1.  If there is no “”private food provider” interested in operating a particular rest area, will the rest area need to be closed?

 

PRF/prr:sb