FISCAL NOTE

Date Requested: January 31, 2020
Time Requested: 09:15 AM
Agency: Highways, Division of
CBD Number: Version: Bill Number: Resolution Number:
2579 Introduced SB587
CBD Subject: Motor Vehicles


FUND(S):

State Road Fund

Sources of Revenue:

Special Fund

Legislation creates:





Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
    
    Senate Bill 587 will have no effect with Division of Highways on revenues since the proposed required escort vehicle cost is borne by the hauler.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2020
Increase/Decrease
(use"-")
2021
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):


    Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
    
    Division of Highways will have no impact in costs or revenues.



Memorandum


    Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
    
    The fiscal impact of SB 587 will be to the trucking industry and ultimately to consumers. Division of Highways have the following concern:
     1. WV would be the only state that required both front and rear escorts for every permitted move that is over width. In recent years, American Association of State Highway and Transportation Organization (AASHTO) Working Group on Freight Operations (formerly the Subcommittee on Highway Transport) took steps to harmonize permit regulations across state lines, one threshold they considered fair and WV is not even in compliance with what was requested for width. Industry had no issue with the regulations we already had because the more stringent escort requirement was only for two lane roads given we permit vehicles on all county routes.
     2. DOH issued 54,809 permits in 2019 that previously did not require escorts which under the proposed bill would require two escorts, that would require almost 110,000 additional escort vehicles statewide. Given that each escort can cost at a minimum a couple hundred dollars that would be a tremendous cost to the hauling industry.
     3. Unfortunately one thing that proves difficult in the permit world is compliance, some haulers feel it is cheaper to risk running without a permit than to actually get the permit and travel legally. With this in mind, this legislation could potentially cause more haulers that are in that mildly over width area to start travelling without permits due to the increased cost from the additional escorts.



    Person submitting Fiscal Note: Lorrie Hodges
    Email Address: lorrie.a.hodges@wv.gov