Statutory Authority:   s. 84.30
Statutes Interpreted:   s. 84.30
General Summary of Proposed Rule
1999 Wis. Act 9 directed the Department to assess annual fees to the owners of outdoor advertising signs in order to recoup a portion of the costs of the state's regulatory program governing outdoor advertising structures. The state has regulated outdoor advertising since the 1960's in compliance with the requirements of the Federal Highway Beautification and Bonus Acts, the regulations promulgated by the U.S. Department of Transportation interpreting those acts, and the 1961 and 1972 agreements between the State of Wisconsin and U.S. DOT.
This proposed rule making establishes fees for outdoor advertising structures based upon two criteria: the size of the sign, and the regulatory burden created by the sign. Larger signs tend to generate more income and are less consistent with the stated objective in s. 84.30, Stats., to “preserve the natural beauty" of Wisconsin. Therefore, this rule proposes to create annual fees that increase based upon sign size that range from $10 per year for signs of 9 to 32 square feet in area to a maximum fee of $100 per year for signs 1200 square feet in size and above.
Directional and nonconforming signs are assessed a fee of $100 per sign regardless of size, because regulating those classes of signs requires significantly more resources than regulating other types of permitted signs.
The proposed rule would define some commonly used terms in ch. Trans 201 and this proposed rule making for clarity.
This rule creates s. Trans 201.075 to replace the substantive provisions of current s. Trans 201.02 (3) which is repealed. Current drafting standards call for that provision to be moved from the definition portion of ch. Trans 201.
Finally, this proposed rule spells out what happens if sign permit fees are not timely paid and a process for sign owners to appeal a fee assessment. Nonpayment of a fee for a permitted sign results in the expiration of the permit, subjecting a sign to potential removal. Nonpayment of the fee for a nonconforming sign is considered abandonment subjecting the sign to removal. s. 84.30 (10m), Stats.
Persons wishing to appeal the amount of an assessment need to pay the proposed fee and state particularly the facts regarding the appeal. Because the only issue involved would usually be the size of the sign, the Department believes that any disputes regarding the assessment should be easily resolved by remeasuring the sign. If that does not resolve a dispute, further appeal to the Division of Hearings and Appeals may be sought.
Fiscal Estimate
The proposed rule implements a provision of 1999 Wisconsin Act 9, the biennial budget, which requires the Department to charge annual fees for outdoor advertising sign owners. The Act limits revenue raised from the program to $510,000 during Fiscal Year 2001 and provides appropriation authority for $510,000 to improve the sign inventory information system.
This proposed rule implements the fee provision of the budget and proposes to set annual revenues after FY01 at a rate that covers a larger portion of the program costs through a combination of annual fees, a nonrefundable application fee, and changes to the applicability of the sign company license requirement. The application fee replaces the current one-time fee refundable that has been in effect since 1972.
Under the current program, the following fees are charged generating annual revenue shown:
A one-time $5 to $100 fee based on sign size collected only upon approval of a permit application generates approximately $25,000 of revenue per year.
Annual outdoor advertising license fees of $250 from companies that erect more than two signs per year generates approximately $7,500 per year.
Under the proposed rule, only nonconforming and grandfathered signs will be assessed a fee for fiscal year 2001. This approach to structuring the applicability of the fee is designed to ease implementation of the fee process by only addressing a portion of the total signs in the first year. Collecting a fee only on nonconforming signs will allow the Department to direct their first billing efforts toward a more manageable number of signs, rather than the entire 15,000 to 20,000 signs in the state.
The approach also works well with the limitation on generating fees for the fiscal year 2001, yet allowing for the fees to generate a more substantial portion of the total program costs in subsequent years. Approximately 5,075 nonconforming signs have been identified in Wisconsin. Collecting a flat $100 fee on only nonconforming signs should generate approximately $507,500 in revenue in fiscal year 2001, in accordance with the requirements of s. 9150 (3m) of 1999 Wis. Act 9.
The revenue expected to be generated from annual fees after fiscal year 2001 is $1,015,280, estimated as shown in the following schedule:
Square Footage
Proposed Fee
Est. # of Signs
Est.
Revenue FY 2002
Business Area Signs
8 or less
$ 0
9-32
$ 10
411
$ 4,110
33-200  
$ 20
1,646
$ 32,920
201-600
$ 25
2,880
$ 71,975
601-800
$ 50
823
$ 41,150
801-1200
$ 75
823
$ 61,725
1201 and above
$ 100
1,234
$ 123,400
Other (all sizes)
Directional
$ 100
1,725
$ 172,500
Nonconforming
or Grandfathered
$ 100
5,075
$ 507,500
TOTALS
17,652  
$1,015,280
Fees to be generated by the application fee for new signs is difficult to predict, since fewer applications may be submitted primarily since the fee will be nonrefundable, and to a lesser degree because of the fee increase. For FY01 it is expected that very few new applications would be received subject to the new application fee. The revenue generated by the application fee may approximate or perhaps be slightly less than the fees currently generated from issuance of the one time permits.
Initial Regulatory Flexibility Analysis
The Department expects that the fee schedule established in this rule revision will have a negligible adverse impact on small businesses that use outdoor advertising as a method of advertising. They will now be required to pay between $5 and $100 each year for each sign they erect or maintain. The types of small businesses that erect their own outdoor advertising signs are often resorts, campgrounds, antique stores, automotive shops, etc., the majority of which build smaller signs than the standard industry signs. Small business signs are frequently smaller than 150 square feet, which will have an annual fee of $20. Because the majority of small businesses typically own only two to six outdoor advertising signs, the annual impact is expected to be minimal. For those small businesses that are more reliant on outdoor advertising signs, the costs aspects of choosing this advertising medium will not be significantly impacted by the fees, which are relatively modest in relation to the cost or erecting an maintaining a sign or leasing sign space.
The annual sign fees that would be paid under this proposed rule, both small, independent sign companies that own approximately 20-75 billboards and large, industry sign companies that own hundreds of signs, are expected to be passed on to the advertisers. This new fee should not significantly affect the monthly lease rental rates charged by these companies for outdoor advertising and is not expected to have an effect on sign companies that are considered “small businesses" under s. 227.114, Stats.
Because the Department does not compile or maintain records reflecting the number of employees or annual income of sign companies, establishing less stringent requirements for small businesses, as defined in s. 227.114(1)(a), Stats., is not feasible. Chapter Trans 201 does exempt businesses that erect 2 or fewer signs from the requirements of obtaining a sign company license, and this rule making would not alter that law.
This rule making proposes to exempt official, service club, religious notice signs and signs under 8 square feet in area from an annual fee requirement. Applicants for these types of signs will be required to pay the one-time $50 sign permit application fee. The Department does not anticipate that this one-time fee will adversely affect small businesses.
Because the rule application process and annual fee billing and payment processes are relatively straightforward and simple, and because DOT district sign permit coordinators are available to assist small businesses in completing permit applications and determining whether a proposed sign site is acceptable under s. 84.30, Stats., the Department concluded further simplifying the permit process or creating different deadline dates for small businesses is unwarranted.
Preparation and Copies of Proposed Rule
Preparation of this proposed rule was done by Attorney John Sobotik. Copies of the rule may be obtained upon request, without cost, by writing to Deborah Brucaya, Department of Transportation, Bureau of Highway Operations, Room 501, P. O. Box 7986, Madison, WI 53707-7986, or by calling (608) 266-3813. Alternate formats of the proposed rule will be provided to individuals at their request.
Notice of submission of proposed rules to the presiding officer of each house of the legislature, under s. 227.19, Stats.
Please check the Bulletin of Proceedings for further information on a particular rule.
Athletic Trainers Affiliated Credentialing Board
(CR 00-131)
Chs. AT 1 to 5 - Relating to licensure and regulation of athletic trainers.
Commerce (CR 00-73)
Chs. Comm 20 to 25 - Relating to the uniform (1-2 family) dwelling code.
Health and Family Services (CR 99-157)
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Administrative rules filed with the
revisor of statutes bureau
The following administrative rules have been filed with the Revisor of Statutes Bureau and are in the process of being published. The date assigned to each rule is the projected effective date. It is possible that the publication of these rules could be delayed. Contact the Revisor of Statutes Bureau at (608) 266-7275 for updated information on the effective dates for the listed rules.
Administration (CR 00-42)
An order repealing and recreating ch. Adm 12, relating to electronic records management storage and requirements.
Effective 5-01-01
Health and Family Services (CR 00-84)
An order affecting chs. HFS 101 to 103 and 108, relating to the medicaid purchase plan.
Effective 12-01-00
Health and Family Services (CR 00-95)
An order repealing and recreating ch. HFS 120, relating to the collection, analysis and dissemination of health care information.
Effective 1-01-01
The State of Wisconsin
Department of Administration
Bureau of Document Services
Document Sales and Distribution Section
P.O. Box 7840
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