Bill Summary – FastDemocracy

SB 131
                       Department of Legislative Services
                               Maryland General Assembly
                                     2020 Session
                             FISCAL AND POLICY NOTE
                                   Third Reader
Senate Bill 131                   (Senator Simonaire, et al.)
Finance                                                    Environment and Transportation
           State Highways - Commercial Signs in Rights-of-Way - Penalties
This bill increases the maximum civil penalty (from $25 per sign to $100 per sign) for
affixing a commercial sign to a State highway sign, signal, or marker within a State
highway right-of-way without State Highway Administration (SHA) authorization.
                                      Fiscal Summary
State Effect: Transportation Trust Fund (TTF) revenues may increase minimally
beginning in FY 2021. Expenditures are not materially affected. The bill is not anticipated
to materially affect District Court caseloads.
Local Effect: Local government revenues may increase minimally beginning in FY 2021.
Expenditures are not materially affected.
Small Business Effect: None.
                                           Analysis
Current Law/Background: SHA is responsible for more than 5,200 miles or
approximately 16,800 lane miles of road, 2,500 bridges, 3,500 small stream crossing
structures, and 80 miles of sound barriers in the State. It also has responsibility for planning,
designing, constructing, and maintaining these roads and bridges to safety and performance
standards while considering sociological, ecological, and economic concerns.
A person may not place or maintain signs on State highway rights-of-way without SHA
authorization. SHA, a law enforcement officer, or the government of the county or
municipal corporation in which the sign is located is expressly authorized to remove and
destroy such a sign without resorting to legal proceedings. Specific to commercial signs,
the entity who removed/destroyed the sign may then collect a civil penalty of up to $25 for
each commercial sign from the person who placed or maintained the sign and seek an
injunction against the person in a civil action in the District Court.
SHA, a county, or a municipal corporation may only enforce the prohibition by issuing a
warning for the first three months after removing an illegal sign and must enforce the
prohibition on a viewpoint and content neutral basis. The presence of a sign within a State
highway right-of-way is evidence that the sign was placed or maintained at the direction
of, or with the consent and approval of, the person whose name, business, location, or
product representation is displayed on the sign.
SHA advises that each of its seven organizational districts removes at least 1,000 illegal
signs each year, with some districts removing significantly more illegal signs. For example,
SHA District 5 (which includes Anne Arundel, Calvert, Charles, and St. Mary’s counties)
removed 8,400 illegal signs in 2019.
State Fiscal Effect: SHA advises that it generally does not pursue the existing civil penalty
for commercial signs due to the significant administrative burden involved in collecting a
relatively small penalty (a maximum of $25 per commercial sign). Specifically, to enforce
the existing prohibition and collect civil penalties for violations, SHA must take photos of
illegal signs, document their locations, prepare correspondence, and pursue the imposition
of penalties. In addition, when pursuing civil penalties, SHA advises that it keeps any
illegal signs and returns them to the owners after penalties are paid; given the number of
signs SHA removes each year, doing so takes up a significant amount of space. As a result,
SHA reports that it typically just removes and disposes of illegal signs.
Under the bill, however, because the maximum civil penalty is increased to $100 per sign
in cases where a sign is affixed to a State highway sign, SHA may more proactively pursue
these violators to collect civil penalties. Accordingly, the bill may result in a minimal
increase in TTF revenues from civil penalties collected.
It is assumed that any increase in enforcement activities undertaken by SHA in response to
the bill does not materially affect TTF expenditures.
Local Fiscal Effect: A local government is authorized to remove and destroy a sign in its
own jurisdiction that is illegally placed on SHA’s right-of-way and to collect the civil
penalties imposed. Therefore, similar to the bill’s effect on State revenues, local
government revenues may increase minimally to the extent that local governments collect
additional penalties under the bill.
SB 131/ Page 2
It is assumed that any increase in enforcement activities undertaken by local governments
in response to the bill does not materially affect local expenditures.
                               Additional Information
Prior Introductions: None.
Designated Cross File: None.
Information Source(s):         Maryland Department of Transportation; Judiciary
(Administrative Office of the Courts); Baltimore City; Harford and Montgomery counties;
Department of Legislative Services
Fiscal Note History:     First Reader - January 23, 2020
rh/lgc                   Third Reader - March 10, 2020
Analysis by: Richard L. Duncan                       Direct Inquiries to:
                                                     (410) 946-5510
                                                     (301) 970-5510
SB 131/ Page 3
Statutes affected: 
Text - First - State Highways - Commercial Signs in Rights-of-Way - Penalties: 8-605 Transportation
Text - Third - State Highways - Commercial Signs in Rights-of-Way - Penalties: 8-605 Transportation