BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 607| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 607 Author: Brownley (D) Amended: 6/20/11 in Senate Vote: 21 SENATE TRANSPORTATION & HOUSING COMMITTEE : 6-1, 6/7/11 AYES: DeSaulnier, Gaines, Harman, Huff, Kehoe, Rubio NOES: Simitian NO VOTE RECORDED: Lowenthal, Pavley ASSEMBLY FLOOR : 72-1, 5/5/11 - See last page for vote SUBJECT : Illuminated signs on public transit buses SOURCE : City of Santa Monica DIGEST : This bill authorizes the City of Santa Monicas bus transit system to establish a demonstration program to equip the sides of its buses with electronic signs displaying advertising. ANALYSIS : Existing law : 1. Authorizes buses, operated by a publicly-owned transit system on regularly scheduled service, to be equipped with illuminated head signs that include destination, route-number, run-number, or a combination. These signs may emit any light color, other than the color red, from CONTINUED AB 607 Page 2 forward-facing signs consistent with the following conditions: Signs must emit diffused non-glaring light. The area of the signs may be no greater than 720 square inches. Signs shall be installed in a position that does not interfere with the visibility or effectiveness of a required lamp, reflector, or other device on the bus. Signs shall display information directly related to public transit service, including, but not limited to, route number, destination description, and run number. 2. Authorizes dynamic messaging on all illuminated signs if the practice adheres to the following requirements: "Paging," meaning information presented for a period of time and then disappearing all at once before new information is presented, is permitted if the display time of each message is between 2.7 and 10 seconds. Blanking time between each message is must be between 0.5 and 25 seconds. "Streaming," meaning information moving continuously and smoothly across the display, is permitted if the character movement time, from one end of the display to the other, is at least 2.7 seconds, and the movement time of the entire message is not more than 10 seconds. This bill: 1. Authorizes the City of Santa Monica's bus transit system to establish a pilot program allowing the city's transit buses to be equipped with illuminated signs for display advertising on the sides of the buses. Limits the number of buses with illuminated signs to 25 for two years, after which the city may increase the total number to 30. CONTINUED AB 607 Page 3 2. Establishes conditions governing the use of illuminated display advertising signs including: Signs shall emit diffused non-glaring light. Signs shall not be greater than 4,464 square inches in area. Signs shall not be installed in a position that interferes with the visibility of required lamps, reflectors, or other devices. Signs shall not be forward or backward facing (i.e., not on the front or rear of the bus). Light emitting diodes for illumination may include red provided the colored formed by the mixing of light from the diodes in the advertising is not red. Signs shall be static when the buses are operating on state freeways. Existing standards for paging and streaming (described above) shall apply to the display of advertising signs. 3. Requires the City of Santa Monica transit staff and the city's police department to develop collaboratively a report examining the safety of the display advertising signs to the Legislature and the California Highway Patrol by July 1, 2016. 4. Sunsets on January 1, 2017. Background Public transit agencies have long used static signs placed on the sides of buses to display advertising. Transit agencies receive revenue from firms that use the signs for advertising. A project sponsored by the Transit Cooperative Research Program, a joint venture of the Federal Transit Administration and the Transportation Research Board, identified the emerging media of digital CONTINUED AB 607 Page 4 bus advertising as a revenue stream for transit agencies. The Chicago Transit Authority began a digital advertising on buses in 2008 and reported a 400 percent increase in revenues from static poster display advertising. City of Santa Monica staff reports that the current static advertising generates about $4.1 million annually, but expects digital signs to generate about $8 million annually, a 100 percent increase in revenue. This added revenue can be used to assist with the operating cost of the transit service. The digital signs are ultra-thin, light weight, light emitting diode screens that can easily be mounted on the sides of buses. Digital advertising allows for customize advertising, including a rate structure that varies by the time of day, because the advertising being displayed can be managed remotely. It is, therefore, possible to render the advertising static when the buses are operating on freeways. FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local: No SUPPORT : (Verified 6/20/11) City of Santa Monica (source) ARGUMENTS IN SUPPORT : According to the author's office, this bill allows for a pilot project that will examine the impacts of digital display advertising on the sides of public transit buses in Santa Monica and assist in determining whether it is appropriate to extend the use of illuminated advertising signs to other transit system across the state. ASSEMBLY FLOOR : AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, Brownley, Buchanan, Butler, Charles Calderon, Campos, Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, Donnelly, Eng, Fletcher, Fong, Fuentes, Galgiani, Gatto, Gordon, Grove, Hagman, Halderman, Hall, Harkey, Hayashi, Roger Hernández, Hill, Huber, Hueso, Huffman, Jeffries, CONTINUED AB 607 Page 5 Knight, Lara, Logue, Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell, Morrell, Nestande, Norby, Olsen, Pan, Perea, V. Manuel Pérez, Portantino, Silva, Skinner, Smyth, Solorio, Swanson, Torres, Valadao, Wagner, Wieckowski, Williams, Yamada, John A. Pérez NOES: Feuer NO VOTE RECORDED: Furutani, Garrick, Gorell, Jones, Monning, Nielsen, Vacancy JJA:do 6/20/11 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED