BILL ANALYSIS                                                                                                                                                                                                    Ó






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: ab 541
          SENATOR MARK DESAULNIER, CHAIRMAN              AUTHOR:  daly
                                                         VERSION: 4/22/13
          Analysis by:  Eric Thronson                    FISCAL:  no
          Hearing date:  June 11, 2013



          SUBJECT:

          Illuminated signs on public transit buses

          DESCRIPTION:

          This bill authorizes the University of California at Irvine (UC  
          Irvine) to equip the sides of its buses with illuminated signs  
          to display advertising until January 1, 2019.

          ANALYSIS:

          Existing law authorizes a publicly-owned transit system to equip  
          buses with illuminated signs informing the public of the buses'  
          operations, consistent with the following conditions: 

                 Signs must emit diffused non-glaring light;  
                 Signs may emit any light color, except forward-facing  
               signs cannot emit the color red;
                 The area of the signs may be no greater than 720 square  
               inches, for example one foot high and five feet long;
                 Signs must 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; and 
                 Signs must display information directly related to  
               public transit service, such as route number, destination  
               description, and run number.  

          Further, existing law authorizes dynamic messaging on  
          illuminated signs equipped to public transit buses 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 must be between 0.5 and 25  
               seconds. 




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                 "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.  

          In 2011, the Legislature passed and the governor signed into law  
          AB 607 (Brownley), Chapter 529, which allows the City of Santa  
          Monica's bus transit system to establish a pilot program  
          equipping the sides of its buses with illuminated signs to  
          display advertising.  The pilot permits Santa Monica to equip a  
          maximum of 25 buses initially, and sunsets on January 1, 2017.   
          The following conditions govern Santa Monica's use of these  
          signs on its buses:
                 Signs must emit diffused non-glaring light;
                 Signs must not be greater than 4,464 square inches in  
               area, which could be roughly three feet high and ten feet  
               long;
                 Signs must not be installed in a position that  
               interferes with the visibility of required lamps,  
               reflectors, or other devices;
                 Signs must 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 color formed by the mixing of light from the  
               diodes in the advertising is not red;
                 Signs must be static when the buses are operating on  
               state freeways; and
                 Existing standards for paging and streaming (described  
               above) shall apply to the display of advertising signs.

          AB 607 requires the City of Santa Monica transit staff and  
          police department to develop collaboratively a report examining  
          the incidence of adverse impacts on roadway and pedestrian  
          safety due to the illuminated signs pilot program and submit the  
          report to the Legislature and the California Highway Patrol by  
          July 1, 2016.
               
           This bill  allows UC Irvine's bus transport system to institute a  
          pilot program which allows buses to be equipped with illuminated  
          signs to display advertising identical to the one authorized for  
          the City of Santa Monica.  This pilot program would sunset by  
          January 1, 2019.  Further, this bill requests that UC Irvine law  
          enforcement officials and transit staff, along with other law  
          enforcement officials, collaboratively submit a report to the  




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          Legislature by July 1, 2018, examining the incidence of adverse  
          impacts on roadway and pedestrian safety due to the illuminated  
          signs.
          
          COMMENTS:

           1.Purpose  .  According to the author, this bill is necessary to  
            help backfill budgetary cuts with the student government  
            department of UC Irvine.  The author contends that this bill  
            will fund much-needed student services and highlight the  
            school's entrepreneurial spirit.  Further, the author suggests  
            this pilot represents a sound public-private partnership.   
            Finally, the safety report from the pilot may assist local  
            municipalities considering similar programs in the future.

           2.Background  .  Public transit agencies have long subsidized  
            transit operations with revenues from static advertising  
            displays placed on the sides of buses.  A recent federal  
            research project suggests a potential additional revenue  
            stream for transit agencies could come from the emerging media  
            of digital bus advertising.  These digital signs are  
            ultra-thin, lightweight, light emitting diode (LED) screens  
            that can easily be mounted on the sides of buses and cost  
            about $50,000 each.  Digital advertising allows for customized  
            advertising, including a variable rate structure and easily  
            changeable messaging.  Because the advertising being displayed  
            can be managed remotely, it is possible to render the  
            advertising static when the buses are operating on freeways. 

            Responding to this new potential revenue source, the  
            Legislature recently enacted AB 607 authorizing Santa Monica  
            to conduct a pilot project and study the safety impacts of  
            illuminated signs on buses.  Before widely authorizing the use  
            of these signs across the state, the Legislature wanted to  
            study the safety of the signs and the potential for  
            distraction of pedestrians and other drivers.
           3.Funding boom or bust  ?  The Chicago Transit Authority (CTA)  
            began digital advertising on buses in 2008 and it expected a  
            400 percent increase in revenues compared to its static poster  
            display advertising.  For the entire Chicago bus system, CTA  
            equipped roughly 40 buses with these digital billboards.  CTA  
            has since discontinued the program, however, because it could  
            not sell enough advertising to pay for the capital costs of  
            the maintenance and repair of the signs.  CTA staff suggest  
            the biggest problem was that it was difficult to sell targeted  
            advertising because its buses run through a variety of  




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            neighborhoods.  Advertisers did not want to pay the increased  
            costs associated with the illuminated ads if the buses spent  
            much of their time in areas where viewers may be uninterested  
            in what was being advertised.  

           4.Distracted driving concerns  .  A variety of constituencies have  
            conducted distracted driving studies focused on a number of  
            potential distractions.  There are studies that use data to  
            prove illuminated billboards do not lead to negative outcomes,  
            and other studies that refute these conclusions.  Nearly all  
            studies admit that, in most instances, it is very difficult to  
            identify one single factor that led to an adverse incident  
            such as an automobile accident.  Research tends to show that  
            accidents arise from an accumulation of factors, including  
            distractions in the vehicle and outside, weather conditions,  
            and even distracting thoughts within the driver's mind.

            It is clear, however, that billboards by their very nature  
            capture a driver's attention.  Advertising is intended to  
            communicate a message to the recipient, which requires some  
            attention.  One recent study of driver behavior conducted by  
            the Accident Research Center at Monash University concluded  
            that, "the presence of billboards changed drivers' pattern of  
            visual attention, increased the amount of time needed for  
            drivers to respond to road signs, and increased the number of  
            errors in the driving task."  Other studies using naturalistic  
            driving data have found that, of all the various distractions  
            contributing to poor driving outcomes,  visual  distraction is  
            the primary concern in driver distraction.  

            As mentioned previously, the Legislature authorized the Santa  
            Monica pilot program in order to study and identify any  
            adverse impacts on pedestrians and drivers resulting from the  
            use of illuminated signs on the exterior of moving buses.   
            This report should inform the decision of whether or not to  
            expand this authority to other transit operators in the state.  
             While illuminated billboards, either on the side of the road  
            or sides of buses, may not by themselves lead to adverse  
            impacts, it is clear that they contribute to the multiple  
            distractions drivers and pedestrians navigate each day.   
            Adding distractions, especially ones that are particularly  
            effective at drawing one's attention, can only increase the  
            risk of negative outcomes.  The question is not whether these  
            advertisements cause accidents and other negative  
            consequences, but how many distractions are enough to create  
            an environment potentially too risky and dangerous for people  




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            traveling from one place to another.  

           5.Previous legislation  .  In 2012, this committee heard two  
            bills, AB 1984 (Wagner) and        AB 2375 (Knight), which  
            would have allowed UC Irvine and Antelope Valley Transit,  
            respectively, to operate pilot programs similar to Santa  
            Monica's.  This bill is nearly identical to last year's AB  
            1984.  Both bills failed passage in this committee primarily  
            due to the fact that the committee wanted to await the results  
            of Santa Monica's pilot before authorizing illuminated signs  
            on the sides of buses elsewhere.  

           6.Who's pilot is it anyway  ?  As mentioned earlier, AB 607  
            authorized a pilot program in Santa Monica to examine the  
            safety impacts of illuminated signs on buses.  Santa Monica  
            has approached the pilot cautiously and has not yet contracted  
            for signs on their buses.  In September of this year, Santa  
            Monica plans to solicit proposals for marketing companies to  
            provide bus advertising, either with or without illuminated  
            signs.  The city is still not sure it will conduct the pilot  
            because of concerns over costs and less optimistic revenue  
            expectations.

            This has created a Catch-22 for the Legislature.  Without  
            Santa Monica conducting the pilot program, the Legislature has  
            no information from a pilot project concerning the safety of  
            illuminated signs on buses.  While Santa Monica retains the  
            authority to conduct the pilot, however, the Legislature has  
            chosen not to grant additional authority to other transit  
            operators.  Until a transit operator conducts a pilot, the  
            Legislature lacks the information on the safety of the program  
            to consider granting wider authority.  To remedy this  
            situation, the committee may wish to grant UC Irvine the  
            authority to operate a pilot as provided by this bill only if,  
            by March 1, 2014, Santa Monica has not begun its pilot  
            program.

           7.Reporting language  .  AB 607 requires Santa Monica to submit a  
            report to the Legislature on the potential safety impacts of  
            the pilot program.  This bill only requests UC Irvine to  
            submit the safety impact report to the Legislature.  If UC  
            Irvine is going to be the pilot program for illuminated bus  
            signs, the committee may wish to amend the bill to mirror the  
            language in existing law to require UC Irvine to submit the  
            report to the Legislature.
          




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          Assembly Votes:
               Floor:    77-0
               Trans:    16-0

          POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,                                             June 5,  
          2013.)

               SUPPORT:  Associated Students of the University of  
          California at Irvine

               OPPOSED:  None received.