BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  AB 541
          Author:   Daly (D), et al.
          Amended:  6/18/13 in Senate
          Vote:     21

           
           SENATE TRANSPORTATION & HOUSING COMMITTEE  :  10-1, 6/11/13
          AYES:  DeSaulnier, Gaines, Beall, Cannella, Galgiani, Hueso,  
            Lara, Liu, Roth, Wyland
          NOES:  Pavley

           ASSEMBLY FLOOR  :  77-0, 4/29/13 - See last page for vote


           SUBJECT  :    Illuminated signs on public transit buses

           SOURCE  :     Author


           DIGEST  :    This bill authorizes, if certain conditions are met,  
          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: 

          1.Signs must emit diffused non-glaring light.

          2.Signs may emit any light color, except forward-facing signs  
            cannot emit the color red.
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          3.The area of the signs may be no greater than 720 square  
            inches, for example one foot high and five feet long.

          4.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.

          5.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:  

          1."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. 

          2."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.  

          The Legislature passed and the Governor signed into law AB 607  
          (Brownley, Chapter 529, Statutes of 2011) 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:

          1.Signs must emit diffused non-glaring light.

          2.Signs must not be greater than 4,464 square inches in area,  
            which could be roughly three feet high and ten feet long.

          3.Signs must not be installed in a position that interferes with  
            the visibility of required lamps, reflectors, or other  

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            devices.

          4.Signs must not be forward or backward facing (i.e., not on the  
            front or rear of the bus).

          5.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.

          6.Signs must be static when the buses are operating on state  
            freeways. 

          7.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  
          (CHP) by July 1, 2016.

          This bill:

          1. 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.

          2. Provides that UC Irvine may only proceed with the pilot  
             program if it determines, on or before March 1, 2014, that  
             the City of Santa Monica has fewer than 12 operational buses  
             with illuminated signs displaying advertising.

          3. Requires, if UC Irvine implements the pilot program, UC  
             Irvine law enforcement officials and transit staff, along  
             with other law enforcement officials, collaboratively submit  
             a report to the Legislature and the CHP by July 1, 2018,  
             examining the incidence of adverse impacts on roadway and  
             pedestrian safety due to the illuminated signs displaying  
             advertising.

          4. Sunsets the bill on January 1, 2019.


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           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, LED (light emitting  
          diode) 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.

           Funding boom or bust  ?  The Chicago Transit Authority (CTA) began  
          digital advertising on buses in 2008 and it expected a 400%  
          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 suggests the  
          biggest problem was that it was difficult to sell targeted  
          advertising because its buses run through a variety of  
          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.  

           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  

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          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.  

           Previous legislation
           
          In 2012, Senate Transportation and Housing Committee (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 the 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.  

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   Local:  
           No

           SUPPORT  :   (Verified  6/19/13)

          Associated Students of the University of California at Irvine
          Irvine Chamber of Commerce
          Orange County Business Council
          Orange County Taxpayers Association

           ARGUMENTS IN SUPPORT  :    According to the author's office, this  
          bill is necessary to help backfill budgetary cuts with the  
          student government department of UC Irvine.  The author's office  

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          contends that this bill will fund much-needed student services  
          and highlight the school's entrepreneurial spirit.  Further, the  
          author's office 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.

           ASSEMBLY FLOOR  :  77-0, 4/29/13
          AYES:  Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,  
            Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown,  
            Buchanan, Ian Calderon, Campos, Chau, Chávez, Chesbro, Conway,  
            Cooley, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,  
            Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gordon, Gorell,  
            Gray, Grove, Hagman, Hall, Harkey, Roger Hernández, Holden,  
            Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal,  
            Maienschein, Mansoor, Medina, Melendez, Mitchell, Morrell,  
            Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson,  
            Perea, V. Manuel Pérez, Quirk, Quirk-Silva, 
          Rendon, Salas, Skinner, Ting, Torres, Wagner, Waldron, Weber,  
            Wieckowski, Wilk, Williams, Yamada, John A. Pérez
          NO VOTE RECORDED:  Atkins, Stone, Vacancy

          JJA:d  6/19/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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