Rest Area Commercialization

Position: OPPOSE
Status: LEGISLATION INTRODUCED

Summary
When Congress created the Interstate Highway System in 1956, community leaders feared local businesses, jobs and tax bases would shrink because travelers would bypass their cities and towns. As a result, Congress passed a law which prohibits interstate rest areas built after Jan. 1, 1960 from offering commercial services such as food and fuel.

As a result of this law, there are now more than 97,000 businesses located less than a quarter of a mile from interstate highways at exit interchanges – directly marketing to highway travelers. For BURGER KING^® alone, there are 1,400 restaurants located half a mile or less from an interstate highway exit. These businesses collectively employ nearly 2.2 million people and contributed more than $22.5 billion in state and local taxes in 2010.

Earlier this year, a number of states asked the federal government to overturn the law as a way to raise revenue. Repealing this law would allow state governments to sell food and fuel from highway rest areas and pull customers away from local businesses.

History
On June 20, 2011, Sen. Mark Kirk (R-IL) introduced the Lincoln Legacy Infrastructure Development Act (Lincoln Legacy Act - S. 1300). In October 2011, its companion (H.R. 2971) was introduced in the House of Representatives by Rep. Randy Hultgren (R-IL-14). The Lincoln Legacy Act allows states to request permission from the Department of Transportation (DOT) to commercialize rest areas, funneling five percent of the revenues from the commercialized rest areas back to DOT to fund activities related to public-private partnerships.

While the incorporation of the Lincoln Legacy Act into larger transportation and appropriations bills has been suggested, attempts have been unsuccessful. Although many members of Congress understand the concerns of businesses along the interstate highway system, they are under increasing pressure from states to change or roll back the law.

Rest area commercialization will transfer the point of sale away from a competitive environment, hurt existing interstate-based businesses and kill jobs. It will also impact businesses in nearby small towns and counties, which pay more than $600 million a year to local governments as a result of this income. This money helps fund schools, police and fire departments and other local services.

Position

The NFA opposes the Lincoln Legacy Infrastructure Development Act as it will destroy jobs while devastating franchisees who have developed their business models, invested and operated as a result of the current law.