BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 830
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          Date of Hearing:   May 9, 2007

                   ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
                              Alberto Torrico, Chairman
                        AB 830 (Ma) - As Amended:  May 3, 2007
           
          SUBJECT  :   Outdoor advertising

           SUMMARY  :   Allows a sign (billboard) along landscaped highways  
          to be converted to a digital advertising display, subject to  
          specified conditions.  Specifically,  this bill  :  

          1)Provides that existing law shall not prohibit the conversion  
            of advertising displays for use as a message center, as  
            defined, if a) the size height, location, and configuration of  
            the display remain unchanged; b) the conversion complies with  
            existing law; c) maintenance of the display does not impact  
            existing trees, as specified; d) the display does not cause a  
            reduction in federal aid highway funds; and e) the message  
            center does not impair the vision of motorist on adjacent  
            highways, as specified.

          2)Defines "message center" as a digital advertising display  
            where the message is changed not more than once every six  
            seconds.

          3)Provides that the display shall have the capacity to  
            communicate emergency messaging and be part of an agreement  
            providing a system for communicating public emergency  
            messages, including Amber Alert and other emergencies as  
            defined by the Governor's Office of Emergency Services.

          4)Provides that Department of Transportation acquisition of a  
            converted display requires compensation pursuant to Eminent  
            Domain Law, provided that compensation shall be determined  
            without regard to the display's use as a message center.

           EXISTING LAW  :

          1)Establishes the state Outdoor Advertising Act (the Act), which  
            regulates the placement of advertising displays adjacent to  
            and within specified distances of highways that are part of  
            the national system of interstate and defense highways and  
            federal-aid highways.  The Act prohibits any advertising  
            display from being placed or maintained on property adjacent  








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            to a section of a freeway that has been landscaped if the  
            advertising display is designed to be viewed primarily by  
            persons traveling on the main-traveled way of the landscaped  
            freeway, as specified.

          2)Provides for limited exemptions and specified exceptions to  
            the prohibition on advertising along system and landscaped  
            freeways, including exemptions for signs advertising the  
            property's sale or lease, signs designating the premises or  
            its owner, and signs advertising goods or services  
            manufactured or produced on the property itself.

          3)Provides that signs that pre-existed the Act are allowed to  
            remain for legal, non-conforming uses.

          4)Provides an exception for a message center display that  
            complies with all requirements as specified.  

          5)Provides that no message center display may include any  
            illumination or message change that is in motion or appears to  
            be in motion or which changes in intensity or exposes its  
            message for less than four seconds, as specified.

          6)Provides (with exception) no advertising display shall be  
            placed or maintained within 660 feet from the edge of the  
            right-of-way of, and the copy of which is visible from, any  
            interstate or primary highway, as described.

          7)Provides that no message center display may be placed within  
            1,000 feet of another message center display on the same side  
            of the freeway, as specified.

           FISCAL EFFECT  :   Unknown

           COMMENTS  : 

           Purpose of the bill  .  According to the author, the intent of  
          this bill to recognize the legitimacy of changing technology  
          performed incident to customary maintenance and changing  
          advertising on outdoor advertising displays and to enhance the  
          business climate and emergency messaging within the jurisdiction  
          of cities and counties.  This bill will remove an obstacle in  
          current law, which prohibits the upgrading of existing outdoor  
          advertising (billboards) to changeable message signs along  
          landscaped highways.  AB 830 will not allow new signs to be  








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          erected but allow existing signs to be converted to a newer  
          technology (changeable message sign), with the approval of the  
          local government.  This bill would not prevent cities and  
          counties from having their own regulations relating to the  
          conversion of these billboards.

          Proponents note technology improvements, led by California's  
          technology companies are now bringing outdoor advertising into  
          the digital age.  Advertisers are offered the ability to change  
          their message remotely, which provides up to the minute  
          information on their products and services.  This type of  
          innovative technology is already being utilized along  
          non-landscaped segments of the California freeway system.  

          The author states in 1996, the Federal Highway Administration  
          (FHWA) updated the federal policy to allow changeable message  
          signs along federally funded highways.  A changeable message  
          sign, is a sign that allows for multiple advertising messages  
          within a single sign facing.  
          In addition to the federal rules regarding size and spacing of a  
          sign, the state Act does not allow new signs along freeway  
          segments designed as "landscaped."  Signs that pre-existed the  
          state Act are allowed to exist as legal, "non-conforming signs".

          Proponents further note that a statewide network of changeable  
          message signs could be used to display and communicate emergency  
          messaging and be part of an agreement providing a system for  
          communicating public emergency messages, including Amber Alert  
          and other emergencies as defined by the Governor's Office of  
          Emergency Services.

           Background  .  The state Outdoor Advertising Act (Act) regulates  
          the placement of advertising displays (billboards) and signs  
          along interstate or primary highways, landscaped freeways and  
          similar specified highways.  The Act, along with related federal  
          provisions, is intended, among other things, to promote highway  
          beautification and provide a consistent framework for the  
          regulation of advertising displays along freeways and highways.   
          The Act sets standards for the advertising structures, including  
          their size, identification and location, and requires compliance  
          with permit application procedures and conditions administered  
          by the State Department of Transportation.  

          The Act sets minimum spacing requirements between billboards on  
          interstate highways or primary highways, which are freeways and  








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          minimum distances from interchanges or an          intersection  
          at grade.  The Act also sets minimum distances between signs on  
          traditional (primary) highways within and without incorporated  
          areas.

          The Act specifies the original and renewal permit fees for  
          billboards, as well penalties for permit violations.  Other  
          provisions provide for substantial monetary penalties for the  
          unlawful trimming, destruction, or removal of trees or shrubs to  
          enhance the visibility of highway-adjacent billboards.

          Federal Highway Beautification Act of 1965  .   The Highway  
          Beautification Act (HBA) was created to protect the public  
          investment, promote the safety and recreational value of public  
          travel, and to preserve the natural beauty of highways in the  
          nation.

          The HBA specifies that states have the responsibility to enforce  
          provisions regarding the placement and maintenance of outdoor  
          advertising signs, displays and devices along the Interstate and  
          National Highway System.  The state of California enforces the  
          provisions of federal law through a compact that was developed  
          between the state and the federal government in 1967.  Federal  
          law also includes a penalty for states that violate the Act by  
          reducing all federal highway transportation funds to the state  
          by 10%.

           Types of Changeable Message Signs  .   Changeable message  
          billboards can be placed into two basic categories: mechanically  
          changed and electronically changed.  The most common form of  
          mechanically changed billboards is known as tri-action displays.  
           Tri-action billboards can show three static advertisements.   
          Messages are printed on vertical slats that rotate mechanically,  
          by a motor.  Typically, a static message is displayed for six  
          seconds, and then the vertical slats are turned to show another  
          advertisement. 

          An electronically changed digital billboard typically displays a  
          static message for six seconds, and then transitions to another  
          advertisement.  These digital billboards display electronic  
          images that resemble billboard ads printed on vinyl or paper.   
          Digital billboards are controlled via electronic communication  
          and are on a secure network.  Advertising "copy" is created on a  
          computer.  Digital billboards do not scroll, flash, feature  
          motion pictures or emit intermittent light.  








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          The Outdoor Advertising Association of America estimates there  
          are 500 digital billboards on U.S. roads, compared to about  
          450,000 traditional billboards.
           
          Related legislation  .  

          AB 1117 (Benoit) of 2007, deems an advertising display erected  
          by a city or county to advertise businesses operating within a  
          redevelopment agency project area, or within a business  
          improvement district whose boundaries partly or wholly overlap  
          those of the redevelopment agency project area, to be on the  
          premises at any location within 1,000 feet of the legal  
          boundaries of the redevelopment agency's project area if the  
          display meets certain conditions.  (Assembly Appropriations  
          Committee)  

          AB 563 (Ridley-Thomas) of 2007, deletes the "rebuttable  
          presumption" in current law that deems those advertising  
          displays that were unlawfully erected as lawful if the sign  
          owner had not received notice that the display was unlawful  
          within five years of the display being erected.  This bill also  
          deletes the requirement that entities requiring the removal of  
          unlawfully erected signs pay sign owners just compensation to do  
          so.  (Senate Rules Committee)

           Prior legislation  .  

          AB 1499 (Benoit) of 2006.  Creates an exemption to the Act, to  
          permit the City of Riverside to erect an outdoor advertising  
          display along Highway 91 to promote economic activity for the  
          Riverside Plaza.  (Vetoed by Governor)

          AB 801 (Jones) of 2006.   Creates an exemption from the Outdoor  
          Advertising Act for one sign in the County of Sacramento.   
          (Vetoed by Governor)

          AB 2441 (Klehs) of 2006.  Authorizes an advertising display in  
          the redevelopment zone of the City of San Leandro subject to  
          specified conditions. (Vetoed by Governor)

          AB 1518 (J. Horton) of 2006.  Exempts, from the prohibition  
          against placing advertising displays adjacent to landscaped  
          freeways, any billboard located on property owned by the Lennox  
          School District, subject to certain conditions. (Died pending  








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          Concurrence in Assembly)

          AB 762 (Nunez), Chapter 725, Statutes of 2003, creates an  
          exemption to the Act by allowing the National Latino Arts  
          Council to place an advertisement on the roof of a  
          not-for-profit educational academy.

          SB 1480 (Speier), Chapter 972, Statutes of 2002, requires the  
          applicant for a state billboard permit to have the written  
          consent of the city or county with land use jurisdiction as well  
          as the owner of the property site for the billboard

          SB 190 (Perata) Chapter 54, Statutes of 2001.  Exempted a  
          certain development of highway advertising in Oakland from  
          existing laws protecting landscaped highways permitted the City  
          of Artesia to erect an advertising display alongside a  
          landscaped highway.  Permitted the City of Artesia to lease one  
          billboard space adjacent to the 91 Freeway on city property.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California State Outdoor Advertising Association
          Hannah Rose Foundation
          Wallrich Landi Integrated Marketing Communications

           Opposition 
           
          None on file
           

          Analysis Prepared by  :    Eric Johnson / G. O. / (916) 319-2531