BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   AB 607|
          |Office of Senate Floor Analyses   |                         |
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                                 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 
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             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.

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          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 

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          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, 

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            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

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