S.B. 388 & 389: ENROLLED ANALYSIS LOGO SIGNING PILOT PROGRAM
Senate Bill 388 (as enrolled) PUBLIC ACT 92 of 1995
Senate Bill 389 (as enrolled) PUBLIC ACT 93 of 1995
Sponsor: Senator George A. McManus, Jr. Senate Committee: Transportation and Tourism House Committee: Transportation
Date Completed: 4-10-96
Michigan residents who have driven through other states probably have seen at highwayintersections and interchanges signs that bear the logotypes, or trademarks, of gas, food, lodging, and camping services available at highway exits. A logo sign generally measures 10 feet by 15 feet in size and includes up to six panels, which measure three feet by four feet, and display the logo of a restaurant, gas station, hotel or motel, or camping facility located near a highway intersection. The first logo signing program was implemented in the early 1970s along the Virginia interstate highway system. Since then, 42 additional states have established similar logo programs. Some people believe that a logo signing program should be implemented in Michigan on a limited basis to study the benefits of logo signs to the State s motoring public.
The bills require the State Transportation Department to conduct a study for at least three years to evaluate the potential benefit to the traveling public of logo signing within the right-of- way of limited access highways. The study must include a pilot program for logo signing at up to 30 interchanges. At least 30 days before the pilot program s implementation date, any proposed agreement specifying a location for the pilot program must be reported to the Senate and House of Representatives standing committees that consider transportation-related legislation. By October 1, 1998, under Senate Bill 388 and by
December 31, 1998, under Senate Bill 389, the Department will have to issue a written report on the study, which will have to include the economic impact of logo signing on the outdoor advertising industry, the benefits of logo signing to the
motoring public and local businesses, the acceptance of logo signing by the motoring public, and the proposed standards for logo signing recommended by the State Transportation Commission. Any revenue received by the Department must be deposited in the State Trunk Line Fund.
Senate Bill 388 amended the Michigan Vehicle Code and Senate Bill 389 amended Public Act 205 of 1941, which provides for the construction and maintenance of limited access highways and facilities ancillary to them.
MCL 275.676a (S.B. 388) 252.52 (S.B. 389)
(Please note: The arguments contained in this analysis originate from sources outside the Senate Fiscal Agency. The Senate Fiscal Agency neither supports nor opposes legislation.)
The bills require the Transportation Department to undertake a three-year pilot program to evaluate the potential benefit of a logo signing program for Michigan s motorists. Thus, the State may take the initial steps toward implementing such a program along Michigan s limited access highways. According to the Department of Transportation, logo signs will be placed at 30 interchanges along highways such as I-75, I-96,
U.S. 10, U.S. 31, and U.S. 131. Logo signs at highwayinterchanges apparentlyhelp the motoring public locate restaurants, hotels and motels, and gasoline stations.
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Response: Since 43 states allow logo signs to be placed along the rights-of-way of their limited
access highways, it seems that there already are sufficient data on these states experiences that Michigan highway officials could study to determine the effectiveness of a similar program in this State. Thus, there may be no need for Michigan to take part in a pilot program.
Not only will logo signs aid tourists visiting the State locate various travel services, they also will serve as alternatives to large, obtrusive billboards that are a detriment to the State s scenic beauty.
Response: Persons familiar with the operation of logo sign programs in other states note that many of the businesses that advertise on a logo sign also use outdoor advertising to provide travelers with additional information on their businesses.
Legislative Analyst: L. Arasim
Senate Bills 388 and 389 will result in additional revenue to the State Trunkline Fund. The amount will depend on the number of logo signs, the cost of the program, and the amount charged. Forty- three states allow for logo signs. Eighteen of those states have programs that are privatized. If this State privatizes the pilot program, revenue will depend on the terms of the contract.
Fiscal Analyst: B. Bowerman
A9596\S388EA
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.