BILL ANALYSIS Ó
SB 684
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Date of Hearing: August 7, 2013
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Isadore Hall, Chair
SB 684 (Hill) - As Amended: May 15, 2013
SENATE VOTE : 34-0
SUBJECT : Advertising displays: redevelopment agency project
areas.
SUMMARY : Recasts the redevelopment agency exemption to the
Outdoor Advertising Act (OAA) to reflect the elimination of
redevelopment agencies. Specifically, this bill :
1)Allows an existing advertising display to be considered
on-premise if the display:
a) Advertises those businesses and activities developed
within the former redevelopment agency project area
boundaries, as those boundaries existed on December 29,
2011;
b) Is located within the boundary limits of the project;
c) Was constructed, was under construction, or had been
approved for construction by the designated agency of the
project on or before January 1, 2012;
d) Does not cause the reduction in federal aid highway
funds.
2)Authorizes, on and after January 1, 2022, the designated
agency to request from the California Department of
Transportation (Caltrans) an extension beyond January 1, 2023,
not to exceed the expiration of the redevelopment project
area.
3)Specifies that the designated successor agency shall be
responsible for ensuring these advertising displays are
advertising qualifying businesses, are otherwise being
operated lawfully, and remain in the public's best interest
EXISTING LAW
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1)The OAA regulates the size, illumination, orientation, and
location of advertising displays adjacent to and within
specified distances of interstate or primary highways, and,
with some exceptions, specifically prohibits any advertising
display from being placed or maintained on property adjacent
to a section of landscaped highway.
2)The OAA 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.
3)Provides, through the OAA, for the regulation by Caltrans of
advertising displays, as defined, within view of public
highways.
4)Specifies, under the OAA, that displays advertising those
businesses and activities within the boundaries of an
individual redevelopment agency project area are considered
on-premise displays for an initial period of 10 years or until
the project area expires, whichever occur first. Caltrans may
for good cause, extend the permits for these signs beyond the
initial 10 years, but not beyond the life of the redevelopment
project.
FISCAL EFFECT : Unknown
COMMENTS :
Purpose of the bill : According to the author, this bill would
authorize the extension, preservation and retention of existing
redevelopment signs with approval of the local city or county.
Current law allows special signs identifying businesses and
activities developed within the boundaries of redevelopment
agency projects, for a period up to ten years.
The bill does not authorize any new signage, but instead seeks
to retain the investment-backed expectations of public and
private entities which either own or operate existing signs in
former redevelopment areas. The author further argues that the
signs involved are not billboards and the bill does not
authorize new billboards.
Due to the elimination of redevelopment agencies, one of the
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unintended consequences is that the sign agreements, formerly
authorized by redevelopment agencies, can no longer be extended
because there is no redevelopment agency to authorize the
extension. Currently, there are approximately 95 such signs in
California which have Caltrans permits. Some of these will be
expiring in the near future, including several this year.
History : Historically, the Community Redevelopment Law allowed
a local government to establish a redevelopment area and capture
all of the increase in property taxes generated within the area
over a period of decades. These tax revenues were intended to
address the blighted nature of a project area, and if used
effectively, therefore, should have eventually ended the blight
and become unnecessary. Because of this, over time these
projects areas were given expiration dates, generally up to 40
years following their inception, until which they were able to
collect tax revenues and pay off debt.
In 2011, the Legislature enacted AB 26X (Blumenfield). AB 26X
eliminated redevelopment agencies and established procedures for
winding down agencies, paying off enforceable obligations, and
disposing of agency assets. In addition, AB 26X established
successor agencies, typically the city that established the
agency, to take control of all redevelopment agency assets,
properties, and other items of value. Successor agencies are to
dispose of an agency's assets as directed by an oversight board,
made up of representatives of local taxing entities, with the
proceeds transferred to the country auditor-controller for
distribution to taxing agencies within each county.
Permits after the Elimination of Redevelopment Agencies : As
mentioned earlier, Caltrans enforces the OAA, which includes
activities such as maintaining a list of landscaped freeways,
issuing permits for signs allowed by statute to exist, and
fining owners of non-compliant signs. Caltrans has issued 95
permits for advertising displaying along landscaped freeways in
redevelopment project areas throughout the state. Many of these
signs are currently or will soon be in existence longer than 10
years and therefore have permits which need to be extended.
On April 11, 2013, Caltrans issued a "Notice of Redevelopment
Display Status Change." The notice indicates that successor
agency permission will allow continued operation of the
previously approved display, but that no new exemptions or
extensions will be given absent legislative action.
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Outdoor Advertising Act : The OAA regulates the size,
illumination, orientation, and location of advertising displays
adjacent to and within specified distances of interstate or
primary highways, and, with some exceptions, specifically
prohibits any advertising display from being placed or
maintained on property adjacent to a section of landscaped
highway.
The OAA generally does not apply to "on premise" advertising
displays, which includes those advertising the sale of the
property upon which it is placed or that advertise the business
conducted, services rendered, or goods produced or sold on the
property. Local government regulates on-premise displays,
except for certain safety requirements.
Federal Highway Beautification Act of 1965 : The Highway
Beautification Act (HBA) was created to protect the public
investment, promote the safety and recreational value of public
travel, and to preserve the natural beauty of highways in the
nation.
The HBA specifies that states have the responsibility to enforce
provisions regarding the placement and maintenance of outdoor
advertising signs, displays and devices along the Interstate and
National Highway System. The state of California enforces the
provisions of federal law through a compact that was developed
between the state and the federal government in 1967. Federal
law also includes a penalty for states that violate the HBA by
reducing all federal highway transportation funds to the state
by 10%.
Arguments in Support : Supporters argue that SB 684 seeks to
resolve an unintended problem resulting from the dissolution of
redevelopment agencies. Current law provides that signs
identifying businesses operating within the boundaries of
redevelopment project areas can be placed along the highway to
promote economic growth in those locations, upon approval of the
agency and Caltrans. Such "redevelopment signs" are subject to
a 10-year renewable permit.
Supporters further argue that with the dissolution of
redevelopment agencies, while the agencies may no longer exist,
the project boundaries, businesses in the zones, and the
signage, still exist. There are roughly 95 signs with
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redevelopment sign permits, most of which will be expiring in
the near future. The fate of these signs is unresolved.
Absent, the ability of the local jurisdiction and Caltrans to
allow these signs to continue, the adverse economic effect on
the businesses in these zones, as well as the concomitant loss
of municipal revenues, is incalculable.
This bill authorizes the continuation of these signs (subject to
Caltrans review and approval), respects the investment-backed
expectations of local government, sign operators, property
owners and finance lenders. It provides direction to Caltrans
and removes uncertainty.
Arguments in Opposition : The California Outdoor Advertising
Association writes in opposition to the bill stating that this
measure removes Caltrans from oversight and enforcement
responsibilities, with that job now being shifted to the
"successor agency," most likely the host local government.
This has the effect of creating a two-tiered system for
billboard regulation in California. We think a more productive
way to deal with redevelopment boards is to use the current
regulations in the department's Outdoor Advertising Act that
allow for the conversion of these displays to private companies.
If the displays are electronic, they can be modernized under
the rules. There are also relocation provisions that might
better suit a local government. But the process would be under
scrutiny of Caltrans, as all other billboards are today that
require state permit.
Double-referred : Should SB 684 (Hill) pass this committee, the
bill will move to the Assembly Committee on Housing and
Community Development for further consideration.
Related Legislation : SB 31 (Padilla), 2013-2014 Legislative
Session. Recasts the arena advertising exception to exempt from
the OAA specified advertising displays authorized before January
1, 2019 by local ordinance, at a venue with a capacity of 15,000
seats or more that is capable of providing a permanent venue for
professional sports. (Pending on the Assembly Floor)
SB 694 (Correa), 2013-2014 Legislative Session. Exempts from
the Outdoor Advertising Act (OAA) advertising displays at
current or future high-speed rail stations. (Pending in Assembly
Appropriations Committee)
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Previous Legislation : AB 26X (Blumenfield), Chapter 5, Statutes
of 2011-12 First Extraordinary Session. Among other provisions,
this bill eliminated redevelopment agencies.
REGISTERED SUPPORT / OPPOSITION :
Support
The League of California Cities (Co-Sponsor)
California New Car Dealers Association
California Professional Association of Specialty Contractors
California Sign Association
California State Association of Counties
Circle Automotive Group
City of Huntington Beach
City of Inglewood
City of San Francisco
City of South Gate
County of San Francisco
Opposition
California State Outdoor Advertising Association
Analysis Prepared by : Felipe Lopez / G. O. / (916) 319-2531