Highway rest area sponsorships raise some questions

ByABC News
June 13, 2012, 10:48 AM

— -- Motorists pulling into Iowa's 40 interstate highway rest areas may soon be greeted by signs welcoming them on behalf of a major corporate advertiser.

Just as baseball and football stadiums are selling naming rights, the Iowa Department of Transportation has decided to seek competitive bids on sponsorship rights for its rest areas, which host 16 million visitors annually.

"This will help defray some of our expenses. Every little bit helps," said Iowa DOT Director Paul Trombino III. He noted the state transportation agency now spends about $3.7 million annually to operate Iowa's interstate rest areas.

The Iowa Transportation Commission, the DOT's policy-making arm, approved regulations Tuesday to permit the corporate sponsorships. This follows the issuance of guidelines in March by the Federal Highway Administration regarding the use of signs to identify sponsors in exchange for financial contributions or highway-related services.

Trombino said he doesn't yet know how much money the sponsorships will attract, although the idea fits into Gov. Terry Branstad's challenge to have the agency operate in a more creative and cost-efficient manner.

Ohio transportation officials have said they hope a similar program announced last month will generate millions of dollars in new revenue.

Trombino said he anticipates seeking bids from prospective sponsors later this summer or early fall. He indicated some have already expressed interest as he traveled around the state speaking to groups about transportation issues.

Potential sponsors could include tourist attractions, truck stops, casinos, convenience stores, auto insurance firms, and other businesses that would benefit, he said.

Iowa DOT officials also acknowledge there is a potential for problems if controversial sponsors win the bidding.

In Virginia, People for the Ethical Treatment of Animals last year offered to sponsor a state highway rest area at Troutville, suggesting the facility's name be changed to the "Fishing Hurts" Rest Area.

Virginia DOT spokeswoman Tamara Rollison said Tuesday that agency hasn't awarded any advertising rights yet and it is seeking "reputable companies in good standing" that can help provide additional funding to ease a budget crunch on the state's road system.

In Georgia, a Ku Klux Klan group applied last month to join the state's Adopt-a-Highway program, which would allow its name to be posted along the road where it picks up litter. A federal appeals court in the past turned down Missouri's request to reject a similar effort, ruling the state couldn't stop the KKK from participating, and the U.S. Supreme Court let the decision stand.

John Adam, director of the Iowa DOT's highway division, said state officials do have concerns that some prospective Iowa sponsors could also prove controversial.

"We haven't specifically decided how we will deal with that. But the way the rules are written we do have some latitude to decline a sponsorship that we think would be detrimental to the public good. It is not tightly defined, but there is some room to evaluate the organization," Adam said.

The Iowa rules specifically prohibit partisan endorsements, so the presidential campaigns of Mitt Romney or Barack Obama, for example, couldn't sponsor a highway rest area.