CONTENTS:

To name certain highways, to create certain special license plates, to designate certain days and months as particular days and months, and to give official state status to certain objects and animals

State Fiscal Highlights

STATE FUND	FY 2007	FY 2008	FUTURE YEARS
Bureau of Motor Vehicles Fund (Fund 4W4)
Revenues	Gain dependent on sales	Gain dependent on sales	Gain dependent on sales
Expenditures	Increase dependent on sales	Increase dependent on sales	Increase dependent on sales
License Plate Contribution Fund (Fund 5V1)
Revenues	Gain dependent on sales	Gain dependent on sales	Gain dependent on sales
Expenditures	Increase dependent on sales	Increase dependent on sales	Increase dependent on sales
Ohio Agriculture License Plate Contribution Fund (New Fund)
Revenues	Gain dependent on sales	Gain dependent on sales	Gain dependent on sales
Expenditures	Increase dependent on sales	Increase dependent on sales	Increase dependent on sales
Children with Medical Handicaps License Plate Fund (New Fund)
Revenues	Gain dependent on sales	Gain dependent on sales	Gain dependent on sales
Expenditures	Increase dependent on sales	Increase dependent on sales	Increase dependent on sales
Ohio Community Service Council Gifts and Donations Fund (New Fund)
Revenues	Gain dependent on sales	Gain dependent on sales	Gain dependent on sales
Expenditures	Increase dependent on sales	Increase dependent on sales	Increase dependent on sales
Highway Operating Fund (Fund 002)
Revenues	- 0 -	- 0 -	- 0 -
Expenditures	Potential $5,000 - $10,000 increase to install suitable markers	Minimal increase to maintain suitable markers	Minimal increase to maintain suitable markers

Note: The state fiscal year is July 1 through June 30. For example, FY 2007 is July 1, 2006FY 2007 is July 1, 2006 – June 30, 2007.June 30, 2007.

· Bureau of Motor Vehicles. The bill requires the Bureau of Motor Vehicles (BMV) to charge a fee not to exceed $10 for the purpose of compensating the Bureau for additional services required in the issuing of a special license plate. As of this writing, LSC fiscal staff is unable to estimate the demand and production costs for these license plates. Thus, the potential magnitude of the annual gain in BMV's license plate revenues and related increase in annual operating expenses is uncertain. This would mean that, as of this writing, whether the demand for these license plates will offset BMV's production costs is uncertain as well.

· Department of Transportation. The Ohio Department of Transportation may experience costs between $5,000 to $10,000 to install suitable markers along interstates, state routes, and bridges listed in the bill. The Department may incur future maintenance costs if the markers are damaged. Due to the length of some of these interstates and state routes designated in the bill it is unknown how many markers may actually be installed.

Local Fiscal Highlights

LOCAL GOVERNMENT		FY 2006	FY 2007	FUTURE YEARS
Municipalities – Highway/Bridge Naming
Revenues	- 0 -		- 0 -	- 0 -
Expenditures	$500 to install a single plaque or set of signs		Minimal increase to maintain plaques or signs	Minimal increase to maintain plaques or signs
Counties, Municipalities, and Townships – Redistributed Public Safety Revenues
Revenues	Potential minimal effect		Potential minimal effect	Potential minimal effect
Expenditures	Potential minimal effect		Potential minimal effect	Potential minimal effect

Note: For most local governments, the fiscal year is the calendar year. The school district fiscal year is July 1 through June 30.

· Road and bridge signage. Municipalities may experience permissive costs of $500 to install a single plaque or set of signs with portions of the interstates, state routes, and bridges listed in the bill running through its boundaries. Also, future costs may result to maintain them.

· Redistributed Public Safety revenues. Whenever the state BMV's Fund 4W4 cash flow changes, local governments may also be affected in some manner. As BMV's expenses or revenue sources increase or decrease, moneys available for redistribution to local governments may increase or decrease. As of this writing, how the bill may affect that cash flow dynamic is uncertain. That said, LSC fiscal staff has not gathered any information suggesting that the potential magnitude of the annual fiscal effect on any local government would be more than minimal, if that.

Detailed Fiscal Analysis

Overview

For the purposes of this fiscal analysis, the bill most notably:

· Creates a number of new official state designations (e.g., official amphibian, state fruit, etc.);

· Recognizes a number of days, weeks, and months to honor certain individuals and to increase awareness of certain issues;

· Provides official designations, support, and recognition of trails, roads, and bikeways;

· Creates a number of new special license plates; and

· Names a number of highways, bridges, and other public roads.

Official state designations

The following is a list of official state designations, as proposed by the bill:

· The official amphibian is the bullfrog.

· The official effigy mound is the Great Serpent Mound.

· The official trail is the Buckeye Trail.

· The state native fruit is the paw paw and the state fruit is the tomato.

· The official children's book is Lentil by Robert McCloskey, who is designated as the official children's book author.

· The official state sandwich is the sandwich known as "Carle's bratwurst."

The state would experience no direct costs as a result of these designations. For example, if a representation of any of these designations or comments about any of these items were added to printed matter, the changes would be made in new materials as existing supplies are replenished. The bill does not require any action by the state or any political subdivisions.

Official state recognitions

The following is a list of the official state recognition of certain days, weeks, and months, as proposed by the bill:

· April 29 is designated as both Dale Earnhardt Day and Heritage and Freedom Flag of the Former Republic of Vietnam Day.

· June 12 is designated as Ronald Reagan Day.

· November 15 is designated as Chronic Obstructive Pulmonary Disease Awareness Day.

· December 21 is designated as Homeless Persons' Memorial Day.

· The 3rd week in May is designated as Co-op Education Week.

· February is designated as both Black History Month and American Heart Month.

· March is designated as 2nd Chance of Life: Saving Babies, Supporting Families Month.

· May is designated as both Motorcycle Safety and Awareness Month and Nurses Month.

· The weeks between June 14 and July 14 are designated as American Flag Month.

· September is designated as Ovarian Cancer Awareness Month.

· October is designated as German Heritage Month.

· November is designated as Epilepsy Awareness Month.

The bill designates several different days, weeks, and months to honor certain individuals or to promote awareness of certain issues, but does not explicitly impose any duties or responsibilities on governmental entities. Thus, there would appear to be no direct fiscal effects for the state or any of its political subdivisions that could be attributable to the bill.

Other Official Designations/Support/Recognition

The following is a list of other official designations/support/recognition of bikeways, roads, parks, and trails, as proposed by the bill:

· Support of the extension of the Lewis and Clark National Historic Trail to include additional sites.

· To designate the year 2006 as the Year of the Historic National Road.

· To recognize the significance of the mining shovel The Silver Spade and to support the efforts of the Harrison Coal and Reclamation Historical Park.

· To designate the portion of the Western Reserve Greenway Bike Path as the Garrett Wonders Memorial Bikeway.

The bill designates, supports, and recognizes two trails, a mining shovel, a bikeway, and the year 2006, but does not impose any duties or responsibilities on governmental entities. Thus, there would appear to be no direct fiscal effects for the state or any of its political subdivisions that could be attributable to the bill.

License plates

State fiscal effects

The bill provides for the issuance of several license plates that have no associated special plate fee, other than the usual required taxes and fees. These required fees include a $10 fee that is deposited to the credit of the Bureau of Motor Vehicles Operating Fund, or Fund 4W4, in the Department of Public Safety. This fee is intended to compensate the Bureau for additional services required in the issuing of the license plates.

In addition to those plates that do not have any associated special plate fee, the bill provides for the issuance of several license plates that have a required contribution ranging from $15 to $40, depending on the plate purchased, as well as the additional $10 fee to Fund 4W4 in the Bureau of Motor Vehicles and the usual required taxes and fees.

The following is a list of special license plates, as well as the required contribution and the fund to which the contribution would be made, as proposed by the bill:

Table 1. License Plates in the Bill
License Plate	Fee	Fund
Battle Stars	None	N/A
Domestic Violence Awareness	$20	License Plate Contribution Fund
Ohio Agriculture	$15	Ohio Agriculture License Plate Contribution Fund
Historically Black Fraternity-Sorority	None	N/A
Fairport Harbor Breakwall Lighthouse	$15	License Plate Contribution Fund
Operation Iraqi Freedom	None	N/A
Ruptured Duck	None	N/A
Gold Star Family	None	N/A
Ohio's Horse	Up to $40	License Plate Contribution Fund
Ohio C.O.P.S.	$15	License Plate Contribution Fund
Children with Medical Handicaps	$20	Children with Medical Handicaps License Plate Fund
Civil Air Patrol	None	N/A
Support Our Troops	$25	License Plate Contribution Fund
Ohio "Volunteer"	$15	Ohio Community Service Council Gifts and Donations Fund

The fiscal effect on the state, in particular the Department of Public Safety's Bureau of Motor Vehicles and its Fund 4W4, will be dependent on the number of special license plates actually issued. As of this writing, LSC fiscal staff is unable to estimate the demand and production costs for any of these license plates. Thus, the potential magnitude of the annual gain in BMV's license plate revenues and related increase in annual operating expenses is uncertain. This would mean that, as of this writing, whether the demand for any of these license plates will offset BMV's production costs is uncertain as well.

Local fiscal effects

Whenever BMV's Fund 4W4 cash flow changes, local governments may also be affected in some manner. Most collected local and state motor vehicle license taxes are deposited into a holding account within the Department of Public Safety. Monthly, an assessment of Fund 4W4 occurs and cash is transferred from the holding account to Fund 4W4 in order to cover BMV's monthly operating expenses. Any remaining funds in the holding account are then forwarded to local governments (counties, municipalities, and townships) to use for transportation-related needs such as roads and bridges. As BMV's expenses or revenue sources increase or decrease, moneys available for redistribution to local governments may increase or decrease. As of this writing, how the bill may affect that cash flow dynamic is uncertain. That said, LSC fiscal staff has not gathered any information suggesting that the potential magnitude of the annual fiscal effect on any given local government would be more than minimal, if that. In this context, "minimal" means an estimated annual revenue gain or loss of: (1) no more than $5,000 for any affected county, city, or township with a population of 5,000 or more, and (2) no more than $1,000 for any affected village or township with a population of less than 5,000.

Road and Bridge naming

The Ohio Department of Transportation (ODOT) may experience costs between $5,000 to $10,000 to install memorial plaques or signs along the designated interstates, state routes, and bridges listed in the bill. These costs would result in an expenditure increase to the state Highway Operating Fund (Fund 002). It is likely such costs will be absorbed within the Department's current budget.

Currently, it costs approximately $500 to manufacture, install, and maintain a single set of memorial plaques or signs at one location. Due to the various lengths of the highways and bridges in the bill, it is unknown how many plaques or signs the Department may choose to install.

When a bridge or highway is designated as a memorial, the Department's policy is to first install a memorial plaque in a rest area, scenic overlook, recreational area, or other appropriate location.1 If installation of a plaque is not practical, a sign is installed along the highway instead. At one location two plaques or two signs are usually installed, one in each direction. ODOT installs plaques and signs in areas outside municipal boundaries, but within township boundaries.

Various municipalities with portions of interstates, state routes, and bridges running through their boundaries may experience similar costs for installing and maintaining plaques or signs. Any costs incurred by municipalities are considered permissive. The following table displays the highway and bridge names and their locations found in the bill:

Table 2. Names of Highways/Bridges/Bikeways in the Bill
Name of Highway/Bridge Sign	Location (Portion of)
Purple Heart Trail	Interstate Route 70
Military Order of the Purple Heart Memorial Highway	Interstate Route 76
Hobart Institute of Welding Technology Exit 74	Interstate Route 75
Andy Nowacki Memorial Highway	State Route 44
Major James W. Reed Memorial Highway	State Route 660
Henry County Veterans Bridge	Spanning Maumee River
Glenn Presnell Memorial Highway	State Route 93
Lance Cpl. Kevin S. Smith Memorial Highway	State Route 334
Lieutenant Harry L. Martin Memorial Highway	State Route 30
Brian Montgomery Memorial Highway	State Route 2
Corporal Brad D. Squires Memorial Highway	Interstate Route 71
K.I.A. Memorial Bridge	Spanning South Fork Licking River
Marine Private Henry Kalinowski Memorial Highway	State Route 11
Sam Bateman Memorial Highway	State Route 131
LCPL Nicholas B. Erdy Memorial Highway	State Route 50
SSGT O.T. Hawkins II Memorial Highway	State Route 136
Deputy Ethan Collins Memorial Road	State Route 188
President Ronald Wilson Reagan Outerbelt	State Routes 5 & 82
Staff Sergeant Kendell H. Ivy II Memorial Highway	U.S. Route 30
Bridge of Honor	Spanning Ohio River
Garrett Wonders Memorial Bikeway	Trumbull County

Changes to Bridge Naming Procedures

Under the bill, the governing bodies of the county and each township and municipal corporation within the county through which a bridge on a state highway extends may submit a request to the Director of Transportation for approval of the bridge name. If the Director approves the request, the requesting authority may, at its own expense, erect an appropriate marker indicating the name of the bridge within the county. Local governments may incur costs similar to the state for bridge erection and maintenance. These costs are typically $500 for a single set of signs. Any costs incurred by local governments would be considered permissive.

LSC fiscal staff: Jonathan Lee, Senior Budget Analyst

Sara D. Anderson, Senior Budget Analyst

SB0114HR.doc/rh

BILL:	Sub. S.B. 114	DATE:	December 14, 2006
STATUS:	As Reported by House Transportation, Public Safety & Homeland Security	SPONSOR:	Sen. Goodman
LOCAL IMPACT STATEMENT:		Permissive