SB 0616 - Fiscal Note

Fiscal Note - SB 0616 - Authorizes City Regulation of Billboards

L.R. NO.  2451-01
BILL NO.  SB 616
SUBJECT:  Outdoor Advertising
TYPE:     Original
DATE:     January 29, 1996



                              FISCAL SUMMARY


                    ESTIMATED NET EFFECT ON STATE FUNDS

FUND AFFECTED                 FY 1997         FY 1998        FY 1999

None                               $0              $0             $0


Total Estimated
Net Effect on All
State Funds                        $0              $0             $0


                   ESTIMATED NET EFFECT ON FEDERAL FUNDS

FUND AFFECTED                 FY 1997         FY 1998        FY 1999

None                               $0              $0             $0


Total Estimated
Net Effect on All
Federal Funds                      $0              $0             $0


                    ESTIMATED NET EFFECT ON LOCAL FUNDS

FUND AFFECTED                 FY 1997         FY 1998        FY 1999

St. Louis Regional
Convention and
Visitors
Commission               ($1,500,000)    ($1,500,000)   ($1,500,000)



                              FISCAL ANALYSIS

ASSUMPTION

Officials of the Department of Highways & Transportation (DHT) assume that
the provision allowing municipalities to more strictly regulate outdoor
advertising than does current state law would have no fiscal impact on their
department.  DHT officials indicate they are unable to determine the fiscal
impact resulting from the provision which would prohibit outdoor advertising
from being displayed from any publicly-owned or operated building or other
structure.

Oversight assumes that the only fiscal impact to DHT would be in the form of
lost potential permit and inspection fees from outdoor advertising that would
have otherwise been placed on publicly-owned or operated buildings or other
structures.  These one- time permit fees and biennial inspection fees are set
by statute at $28.50 each.  Oversight assumes that such lost revenues would
likely be minimal, and has shown no fiscal impact to DHT as a result of this
proposal.

Officials of the St. Louis Regional Convention and Visitors Commission
indicate that prohibiting outdoor advertising on publicly-owned or operated
buildings would result in a loss of approximately $1.5 million in advertising
revenues annually, an amount that will increase annually as the Consumer
Price Index increases.  Total advertising revenues are expected to
approximate $6 million annually, with the Commission receiving 25% of
revenues.  Officials indicate that the loss of revenue would be incurred
beginning in FY 1997, since advertisers do not pay up front for substantial
time periods.  Officials state that the Commission has been responsible for
the operating deficit of the St. Louis Convention Center and Stadium (the
"Trans World Dome") since it opened in 1995.  Until that time, City of St.
Louis taxpayers had been responsible for the Convention Center's deficit,
which had been one to two million dollars per year.  The addition of
advertising revenues was considered part of the plan to increase facility
revenues so that this burden could be removed from the City of St. Louis.
The plan also anticipated these revenues for a period of thirty years, the
length of the Rams' lease at the Stadium.

City of St. Louis officials concur with the information provided by the St.
Louis Regional Convention and Visitors Commission, and indicate that it would
be feasible that due to the lost advertising revenues by the Commission, at
some time in the future the Commission may be required to request operating
subsidies from the City of St. Louis.


FISCAL IMPACT - State Government      FY 1997       FY 1998       FY 1999
                                     (10 Mo.)

                                            0             0             0


FISCAL IMPACT - Local Government      FY 1997       FY 1998       FY 1999
                                     (10 Mo.)
ST. LOUIS REGIONAL CONVENTION
AND VISITORS COMMISSION

Loss-advertising revenues from Convention
  Center and Stadium             ($1,500,000)   $1,500,000)  ($1,500,000)


DESCRIPTION

This legislation would allow municipalities under their zoning control to
enact controls over outdoor advertising which are more restrictive than
current state law.  It would also prohibit the display of outdoor advertising
from any publicly-owned or operated buildings or other structures.

This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.


SOURCES OF INFORMATION

Department of Highways & Transportation
St. Louis Regional Convention & Visitors Commission
City of St. Louis