FHWA fines New York $14 million for I Love NY signs

In a state versus federal government showdown that goes back to 2011, the Federal Highway Administration has had enough of the New York State Department of Transportation’s refusal to take down tourism signs that violate federal regulations. FHWA has fined the state $14 million, which can be recovered if the state takes down the signs by a certain deadline.

On Thursday, FHWA sent a letter notifying New York state transportation officials of its latest move regarding the I Love NY signs the administration considers illegal. New York will have to pay a $14 million fine. If the state removes the signs by Sept. 30, FHWA will reimburse the $14 million.

In an effort to boost tourism in the state, Gov. Andrew Cuomo launched the I Love NY and Taste NY initiatives. Part of the program involved installing more than 500 I Love NY signs on the highways across the state. This was done despite concerns from FHWA dating back to 2011 and an official ruling in 2013 prohibiting the signs.

FHWA claims the Taste NY welcome centers also violate federal standards along the highways. Federal regulations prohibit governments from competing with private businesses by participating in certain commerce directly off the highways. The new welcome centers feature a variety of local foods and beverages.

Title 23, Section 111 of the United States Code addresses appropriate use of public rest areas. Regarding advertising, the law states media displays are allowed solely within the facility and not legible from the main traveled way. The code also allows items designed to promote tourism in the state limited to books, DVDs and other media.

According to FHWA spokesman Neil Gaffney, the signs do not conform to the Manual on Uniform Traffic Control Devices (MUCTD) federal standards. However, in a letter to FHWA Administrator Gregory Nadeau, NYSDOT Commissioner Matthew Driscoll argued that changes made in the Moving Ahead for Progress in the 21st Century Act “specifically authorize the use of ‘other media’ to ‘promote tourism in the state.’” In his letter, Driscoll claimed the signs follow standards set by MUCTD.

Regarding the Taste NY rest areas, 23 U.S.C. 111 states “the state will not permit automotive service stations or other commercial establishments for serving motor vehicle users” on the rights-of-way of the interstate system. Exceptions to the rule include vending machines. The law prevents the government from competing with private businesses for the business of motorists, thereby driving traffic and commerce away from nearby towns.

Driscoll argued that the Taste NY rest areas do not violate any laws.

“The roadside welcome centers complement and do not compete with full scale service venders or local businesses,” Driscoll said in his letter.