Amended in Assembly August 22, 2013

Amended in Assembly June 6, 2013

Amended in Senate April 1, 2013

Senate Bill No. 31

Introduced by Senator Padilla

(Principal coauthor: Senator Steinberg)

(Coauthors: Senators Correa, Gaines, Huff, Lara, Price, Walters, and Wyland)

(Coauthors: Assembly Members Bocanegra, Bradford, Ian Calderon, Garcia, Gomez, Hall, Holden, Jones-Sawyer, begin insert Levine, end insert Rendon, Wagner, and Wilk)

December 3, 2012

An act to amend Section 5272 of the Business and Professions Code, relating to outdoor advertising.

LEGISLATIVE COUNSEL’S DIGEST

SB 31, as amended, Padilla. Outdoor advertising displays: arenas.

The Outdoor Advertising Act provides for the regulation by the Department of Transportation of advertising displays, as defined, within view of public highways. The act exempts from its provisions certain advertising displays that advertise the business conducted, services rendered, or goods produced or sold on the property upon which the display is placed, as specified. The act also exempts from its provisions specified advertising displays at an arena located on public land with a capacity of 5,000 seats or more that provides a permanent venue for professional sports, and that advertises products, goods, or services that are or will be sold on the premises of the arena on a regular basis pursuant to a specified agreement.

This bill would recast the arena advertising exception to exempt from the act specified advertising displays authorized by local begin delete ordinance, end delete begin insert ordinance end insert at begin insert the premises of an arena, defined as end insert a venue with a capacity of 15,000 seats or more that is capable of providing a permanent venue for professional sports, or begin delete on end delete a contiguous development project or district encompassing or adjacent to the venue that extends not more than 1,000 feet from a structure connected to the venue, as specified. These advertising displays would be authorized to advertise any products, goods, or services sold within that area on a regular basis, or marketed or promoted in that area pursuant to a sponsorship marketing plan, as defined, except begin delete distilled spirits, end delete tobacco, firearms, or sexually explicit material, if specified conditions are met. The bill would additionally authorize, under similar conditions, up to 2 advertising displays that are not required to comply with the act, which the bill would require to be visible when approaching offramps from the interstate, primary, or state begin delete highway nearest to end delete begin insert highways used to access end insert the begin delete venue, or nearest to a development project or district encompassing the arena within 1,000 feet of the venue or a structure connected to the venue end delete begin insert premises of an arena end insert . The bill would require that certain conditions apply if the advertising display authorized by the bill is a message center display. The bill would require that if an advertising display is subject to a notice from the United States begin delete Secretary end delete begin insert Department end insert of Transportation begin insert , Federal Highway Administration, or other applicable federal agency to the state end insert that the operation of that display will result in the reduction of federal funds, as provided, authorization of the display would cease 60 days after begin delete the owner of the display receives end delete begin insert the state notifies the display owner of the receipt of end insert the begin insert federal end insert notice begin insert , and would require the display owner to remove all advertising copy within that time end insert . begin insert The bill would provide for the imposition of a civil fine of $10,000 per day by the department on the owner for failure to remove advertising copy. The bill would require the local agency to have primary responsibility for enforcing its ordinance and these provisions, and to indemnify the state Department of Transportation for all costs incurred for failing to ensure that compliance, as specified. end insert The bill would prohibit, among other things, the begin insert state end insert Department of Transportation from assuming any liability in connection with cessation of operation or removal of an advertising display. In addition, the bill would require an advertising display lawfully erected on or before December 31, 2013, in conformity with the law relating to the exemption for advertising displays on arenas, as it existed on that date, to remain authorized, subject to the terms of that law.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 5272 of the Business and Professions
Code is amended to read:

5272.  

(a) With the exception of Article 4 (commencing with
Section 5300) and Sections 5400 to 5404, inclusive, this chapter
does not apply to any advertising display used exclusively for any
of the following purposes:

(1) To advertise the sale, lease, or exchange of real property
upon which the advertising display is placed.

(2) To advertise directions to, and the sale, lease, or exchange
of, real property for which the advertising display is placed;
provided, that the exemption of this paragraph does not apply to
advertising displays visible from a highway and subject to the
Highway Beautification Act of 1965 (23 U.S.C. Sec. 131).

(3) To designate the name of the owner or occupant of the
premises or to identify the premises.

(4) To advertise begin insert the end insert business conducted, services rendered, or
goods produced or sold upon the property on which the advertising
display is placed if the display is on the same side of the highway
and within 1,000 feet of the point on the property or within 1,000
feet of the entrance to the site at which begin insert the end insert business is conducted,
services are rendered, or goods are produced or sold.

(b) With the exception of Article 4 (commencing with Section
5300) and Sections 5400 to 5404, inclusive, this chapter does not
apply to any advertising display used exclusively begin insert either end insert to begin delete either end delete
advertise products, goods, or services sold by persons on the
premises of an arena on a regular basis, or to advertise any
products, goods, or services marketed or promoted on the premises
of an arena pursuant to a sponsorship marketing plan, if all of the
following conditions are met:

(1) The arena is capable of providing a venue for professional
sports on a permanent basis.

(2) The arena has a capacity of 15,000 or more seats.

(3) The advertising display is either of the following:

(A) Located on the premises of the arena.

(B) Has been authorized as of January 1, 2019, by, or in
accordance with, a local ordinance, including, but not limited to,
a specific plan or sign district adopted in connection with the
approval of the arena by the city begin delete or end delete begin insert , end insert county, begin insert or city and county, end insert
bears the name or logo of the arena, and is visible when
approaching offramps from the interstate, primary, or state begin delete highway
nearest to end delete begin insert highways used to access end insert the premises of the arena. No
arena shall be permitted more than two advertising displays allowed
under this subparagraph.

(c) (1) Any advertising display erected pursuant to subdivision
(b) and located on the premises of the arena shall be lawful only
if authorized by, or in accordance with, an ordinance, including,
but not limited to, a specific plan or sign district, adopted by the
city begin delete or end delete begin insert , end insert county, begin insert or city and county, end insert that regulates advertising
displays on the premises of the arena by identifying the specific
displays or establishing regulations that include, at a minimum,
all of the following:

(A) Number of signs and total signage area allowed.

(B) Maximum individual signage area.

(C) Minimum sign separation.

(D) Illumination restrictions and regulations, including signage
refresh rate, scrolling, and brightness.

(E) Illuminated sign hours of operation.

(2) Authorization of advertising displays under subdivision (b)
is subject to the owner of the advertising display submitting to the
department a copy of the ordinance adopted by the city begin delete or end delete begin insert , end insert county begin insert ,
or city and county end insert in which the arena is located authorizing the
advertising display and, for signs located on the premises of the
arena, identification of the provisions of the ordinance required
under paragraph (1). The department shall certify that the proposed
ordinance meets the minimum requirements contained in paragraph
(1).

(3) An advertising display authorized pursuant to subdivision
(b) shall not advertise products, goods, or services related to
begin delete distilled spirits, end delete tobacco, firearms, or sexually explicit material.

(4) This chapter does not limit a local government from adopting
ordinances prohibiting or further restricting the size, number, or
type of advertising displays permitted by this section.

(d) As used in this section, “the premises of an arena” means
either of the following:

(1) A venue for indoor or outdoor sports, concerts, or other
events.

(2) Any development project or district encompassing the venue,
adjacent to it, or separated from it only by public or private
rights-of-way, the boundaries of which have been set by the city
begin delete or end delete begin insert , end insert county begin insert , or city and county end insert in which the arena is located. The
development project or district must be contiguous and may not
extend more than 1,000 feet beyond the arena structure or any
structure physically connected to the arena structure.

(e) As used in this section, “sponsorship marketing plan” means
an agreement between the property owner, facility owner, facility
operator, or occupant of the premises of an arena and a sponsor
pursuant to which the sponsor is allowed to include its logo, slogan,
or advertising on advertising displays and that meets both of the
following conditions:

(1) The sponsorship marketing plan is for a period of not less
than one year.

(2) The sponsorship marketing plan grants the sponsor the
opportunity to display its logo, slogan, or advertising in the interior
of structures on the premises of an arena, or conduct promotions,
public relations, or marketing activities on the premises of an arena.

(f) Authorization of an advertising display under subdivision
(b) that is a message center display is subject to the owner of the
display complying with one of the following conditions:

(1) Making a message center display within the premises of the
arena available on a space-available basis for use by the department
or the Department of the California Highway Patrol for public
service messages, including Emergency Alert System (Amber
Alert) messages disseminated pursuant to Section 8594 of the
Government Code, and messages containing, among other things,
reports of commute times, drunk driving awareness messages,
reports of accidents of a serious nature, and emergency disaster
communications.

(2) Making a message center display not subject to this section
that is under the control of the owner of the advertising display
available on a space-available basis for public service messages
in a location acceptable to the department and the Department of
the California Highway Patrol.

(3) Providing funding to the department for the installation of
a message center display to accommodate those public service
messages, which may include funding as part of mitigation in
connection with the approval of the arena by the city begin delete or end delete begin insert , end insert county begin insert ,
or city and county end insert .

(g) If an advertising display authorized under subdivision (b)
is subject to a notice from the United States begin delete Secretary end delete begin insert Department end insert
of Transportation begin insert , the Federal Highway Administration, or any
other applicable federal agency to the state end insert that the operation of
that display will result in the reduction of federal aid highway
funds provided in Section 131 of Title 23 of the United States
Code, authorization of the display under subdivision (b) shall cease
begin insert and the display owner shall remove all advertising copy from the
display within end insert 60 days begin delete after the owner of the display receives
notice. end delete begin insert after the state notifies the display owner of the receipt of
the federal notic end insert begin insert e. Failure to remove the advertising copy pursuant
to this subdivision shall result in a civil fine, imposed by the
California Department of Transportation, of ten thousand dollars
($10,000) per day until the advertising copy is removed. end insert The
begin delete California Department of Transportation end delete begin insert department end insert shall not
assume any liability in connection with cessation of operation or
removal of an advertising display begin insert or advertising copy end insert pursuant to
this begin delete subdivision and shall be held harmless and indemnified from
all legal actions involving the displays by the city, county, or city
and county that adopted the ordinance allowing those displays. end delete
begin insert subdivision. end insert

begin delete

(h) Except as provided in this section, the department shall not
otherwise be responsible for any regulation of the displays allowed
under this section.

end delete

begin insert (h) end insert begin insert   end insert begin insert The city, county, or city and county adopting the ordinance
authorizing the displays erected pursuant to this section shall have
primary responsibility for ensuring that the displays remain in
conformance with all provisions of the ordinance and of this
section. If the city, county, or city and county fails to ensure that
the displays remain in conformance with all provisions of the
ordinance and of this section after 30 days of receipt of a written
notice from the department, the city, county, or city and county
shall hold the department harmless and indemnify the department
for all costs incurred by the department to ensure compliance with
the ordinance and this section or to defend actions challenging
the adoption of the ordinance allowing the displays. end insert

(i) An advertising display lawfully erected on or before
December 31, 2013, in conformity with subdivision (e) of this
section as it read on that date, shall remain authorized, subject to
the terms of that subdivision.