Maryland SB 431: Transportation - State Highway Administration - Sale or Lease of Highway Naming Rights

Bill Text

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0431*

SENATE BILL 431
R1 7lr1083

By: Senators Klausmeier, Eckardt, Edwards, Ready, and Salling
Introduced and read first time: January 27, 2017
Assigned to: Budget and Taxation

A BILL ENTITLED

AN ACT concerning 1

Transportation – State Highway Administration – Sale or Lease of Highway 2
Naming Rights 3

FOR the purpose of authorizing the State Highway Administration to sell or lease to a 4
private entity the naming rights for a State highway or any part of a State highway; 5
requiring the term of a contract for the sale or lease of naming rights for a State 6
highway to be at least a certain period; prohibiting the Administration from selling 7
or leasing highway naming rights under this Act unless the Administration makes a 8
certain determination regarding compliance of the proposed use of the naming rights 9
with federal regulations and the distribution of certain federal funds; providing that 10
a sale or lease of naming rights for a State highway may not be construed to require 11
that any highway sign or mailing address be altered; authorizing a private entity 12
that purchases or leases the naming rights for a State highway to erect certain 13
outdoor signs along the highway; requiring a private entity that erects outdoor signs 14
along a State highway under this Act to pay all costs associated with the signs; 15
requiring outdoor signs erected by a private entity along a State highway to comply 16
with certain requirements; requiring proceeds from the sale or lease of naming rights 17
for a State highway to be credited to the Transportation Trust Fund; requiring the 18
Administration to adopt certain regulations; defining certain terms; and generally 19
relating to the sale or lease of naming rights for State highways. 20

BY repealing and reenacting, without amendments, 21
Article – Transportation 22
Section 8–604 23
Annotated Code of Maryland 24
(2015 Replacement Volume and 2016 Supplement) 25

BY adding to 26
Article – Transportation 27
Section 8–604.1 28
Annotated Code of Maryland 29

2 SENATE BILL 431

(2015 Replacement Volume and 2016 Supplement) 1

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 2
That the Laws of Maryland read as follows: 3

Article – Transportation 4

8–604. 5

The Administration may name or rename any State highway. 6

8–604.1. 7

(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 8
INDICATED. 9

(2) “ERECT” HAS THE MEANING STATED IN § 8–701 OF THIS TITLE. 10

(3) “OUTDOOR SIGN” HAS THE MEANING STATED IN § 8–701 OF THIS 11
TITLE. 12

(4) “PRIVATE ENTITY” INCLUDES AN INDIVIDUAL, A CORPORATION, A 13
GENERAL OR LIMITED PARTNERSHIP, A LIMITED LIABILITY COMPANY, A JOINT 14
VENTURE, A BUSINESS TRUST, A PUBLIC BENEFIT CORPORATION, A NONPROFIT 15
ENTITY, OR ANY OTHER BUSINESS ENTITY. 16

(B) (1) (I) SUBJECT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH, THE 17
ADMINISTRATION MAY SELL OR LEASE TO A PRIVATE ENTITY THE NAMING RIGHTS 18
FOR A STATE HIGHWAY OR ANY PART OF A STATE HIGHWAY. 19

(II) THE ADMINISTRATION MAY NOT SELL OR LEASE TO A 20
PRIVATE ENTITY THE NAMING RIGHTS FOR A STATE HIGHWAY UNLESS THE 21
ADMINISTRATION DETERMINES THAT THE PROPOSED USE OF THE NAMING RIGHTS 22
AND SIGNAGE ASSOCIATED WITH THE PROPOSED USE OF THE NAMING RIGHTS ARE 23
IN COMPLIANCE WITH FEDERAL REGULATIONS GOVERNING THE DISTRIBUTION OF 24
FEDERAL HIGHWAY FUNDS TO THE STATE. 25

(2) THE TERM OF A CONTRACT THAT THE ADMINISTRATION ENTERS 26
INTO UNDER THIS SUBSECTION SHALL BE AT LEAST 1 YEAR. 27

(C) A SALE OR LEASE OF NAMING RIGHTS UNDER THIS SECTION IS SOLELY 28
FOR PUBLIC RELATIONS OR ADVERTISING PURPOSES AND MAY NOT BE CONSTRUED 29
TO REQUIRE THAT ANY OFFICIAL STATE HIGHWAY SIGN OR MAILING ADDRESS BE 30
ALTERED. 31

SENATE BILL 431 3

(D) (1) A PRIVATE ENTITY THAT PURCHASES OR LEASES NAMING RIGHTS 1
FOR A STATE HIGHWAY OR ANY PART OF A STATE HIGHWAY UNDER THIS SECTION 2
MAY ERECT OUTDOOR SIGNS ALONG THE HIGHWAY FOR THE PURPOSE OF 3
ADVERTISING THE DESIGNATION AND THE PRIVATE ENTITY. 4

(2) ALL COSTS ASSOCIATED WITH OUTDOOR SIGNS ERECTED UNDER 5
THIS SUBSECTION SHALL BE PAID BY THE PRIVATE ENTITY THAT PURCHASES OR 6
LEASES THE NAMING RIGHTS FOR A STATE HIGHWAY, INCLUDING THE COSTS OF 7
CONSTRUCTION, INSTALLATION, OPERATION, MAINTENANCE, AND REMOVAL OF THE 8
SIGNS. 9

(3) OUTDOOR SIGNS UNDER THIS SUBSECTION: 10

(I) MAY NOT BE ERECTED WITHOUT PRIOR APPROVAL BY THE 11
ADMINISTRATION; 12

(II) MAY NOT DETRACT FROM THE SAFETY OF THE TRAVELING 13
PUBLIC, AS DETERMINED BY THE ADMINISTRATION; 14

(III) SHALL BE AESTHETICALLY APPROPRIATE, AS DETERMINED 15
BY THE ADMINISTRATION; 16

(IV) MAY NOT INCLUDE A NAME THAT, IN THE JUDGMENT OF THE 17
ADMINISTRATION: 18

1. IS PROFANE, OBSCENE, OR VULGAR; 19

2. IS SEXUALLY EXPLICIT OR GRAPHIC; 20

3. RELATES TO EXCRETORY FUNCTIONS; 21

4. IS DESCRIPTIVE OF THE GENITALS OR OTHER 22
INTIMATE PARTS OF A BODY; 23

5. RELATES TO OR DE