BILL ANALYSIS Ó
SB 31
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Date of Hearing: July 3, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 31 (Padilla) - As Amended: June 6, 2013
Policy Committee: Governmental
Organization Vote: 16 - 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill modifies aspects of the arena exemption to the Outdoor
Advertising Act (OAA). Specifically, this bill:
1)Recasts the arena advertising exception to exempt from the OAA
specified advertising displays at a venue with a capacity of
15,000 seats or more that is capable of providing a permanent
venue for professional sports.
2)Requires the local government to adopt an ordinance
authorizing the advertising displays on the premise of the
arena with specific regulations.
3)Allows the premises of the arena to include a district
encompassing the arena but not extending more than 1,000 feet
beyond the arena.
4)Removes the current prohibition against advertising gambling,
beer and wine sold within that area on a regular basis, or
marketed or promoted in that area pursuant to a sponsorship
marketing plan. Maintains the prohibition against advertising
distilled spirits, tobacco, firearms, or sexually explicitly
material.
5)Requires advertisers to enter into a year-long sports
marketing agreement in order to advertise on the outdoor
signage.
6)Defines a sponsorship marketing plan as an agreement between
the property owner, facility owner, facility operator, or
occupant of the premises of an arena and a sponsor pursuant to
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which the sponsor is allowed to include its logo, slogan, or
advertising displays and that meets both of the following
conditions:
a) The sponsorship marketing plan is for a period of not
less than one year
b) 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.
7)Allows a qualifying arena to place up to two displays at
approaching highway off-ramps and treat them as though they
are arena displays as long as the displays are authorized by a
local ordinance as of January 1, 2019.
8)Requires the California Department of Transportation
(Caltrans) to review and certify that the proposed displays
and sign ordinance meet the minimum statutory requirements.
9)Specifies that if an advertising display is subject to a
notice from the United States Secretary that the operation of
that display will result in the reduction of federal funds,
the owner of that display will remove the signage within 60
days of receipt of the notice.
10) Prohibits, among other things, Caltrans from assuming any
liability in connection with cessation of operation or removal
of an advertising display.
FISCAL EFFECT
1)Initial Department of Transportation (Caltrans) costs of
approximately $75,000 to conduct any up-front coordination
activities, revise existing regulations regarding outdoor
advertising, and inspect newly erected signs (State Highway
Account).
2)Ongoing Caltrans staff costs of approximately $35,000 annually
to consult with the Secretary of Transportation in reviewing
any proposed displays and ordinances, and to annually inspect
existing signs (State Highway Account).
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3)Minor costs to the Secretary of Transportation to review local
ordinances.
COMMENTS
1)Purpose . According to supporters of the bill, AEG Worldwide,
the operator of the Staples Center in Los Angeles, the intent
of this bill is to allow for freeway signage and advertising
on marquees adjacent to sports arenas. In addition, the
intent of the bill is to increase the number of potential
advertisers by allowing beer, wine and gambling advertising
and clarifying that the advertising does not have to be
limited to items that are available for sale within the arena.
The author and supporters argue that public financing for
arenas and sports complexes has dwindled considerably in
recent years. Therefore, it is critical for the success of
these facilities that they be able to find alternative types
of funding. A growing revenue source for funding professional
sports arenas is advertising, both inside and outside the
arena. This bill is intended to present a balanced approach to
allowing arenas to attract advertising dollars while still
protecting the intent of the OAA by requiring that local
cities adopt ordinances for appropriate signage and requiring
Caltrans to review those ordinances.
2)Affected Arenas . The revised arena exemption would currently
apply to 12 sports arena properties statewide. In the near
future, the exemption would also apply to displays located on
the premises of the proposed football stadium at Farmer's
Field in Los Angeles, the new stadium for the San Francisco
49ers in Santa Clara, and any proposed facilities for the
Sacramento Kings.
3)Existing Law . The Outdoor Advertising Act (OAA) governs the
placement of advertising displays adjacent to highways that
are part of the national system of interstate highways. The
act prohibits any advertising display from being placed next
to a section of a freeway if the advertising display is
designed to be viewed primarily by persons traveling on the
freeway. The Legislature has provided specific statutory
exemptions to this prohibition.
4)Related Legislation . AB 2339 (Solorio; Chapter 493, Statutes
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of 2008) exempted publicly owned professional sporting and
entertainment venues from outdoor advertising restrictions
contained in the Outdoor Advertising Act (OAA). That bill also
prohibited the advertising of alcohol, tobacco, gambling, or
sexually explicit material.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081