BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 684
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          SENATE THIRD READING
          SB 684 (Hill)
          As Amended  September 6, 2013
          2/3 vote. Urgency

           SENATE VOTE  :   34-0
            
           GOVERNMENTAL ORGANIZATION  15-0 HOUSING                     7-0 
           
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          |Ayes:|Hall, Nestande, Bigelow,  |Ayes:|Chau, Beth Gaines,        |
          |     |Campos, Chesbro, Cooley,  |     |Atkins, Brown,            |
          |     |Gray, Hagman, Roger       |     |Maienschein, Quirk-Silva, |
          |     |Hernández, Jones-Sawyer,  |     |Mullin                    |
          |     |Levine, Medina, V. Manuel |     |                          |
          |     |Pérez, Salas, Waldron     |     |                          |
          |     |                          |     |                          |
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           APPROPRIATIONS      17-0                                        
           
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          |Ayes:|Hall, Nestande, Bigelow,  |     |                          |
          |     |Campos, Chesbro, Cooley,  |     |                          |
          |     |Gray, Hagman, Roger       |     |                          |
          |     |Hernández, Jones-Sawyer,  |     |                          |
          |     |Levine, Medina, V. Manuel |     |                          |
          |     |Pérez, Salas, Waldron     |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
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           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;









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             c)   Was constructed before January 1, 2012;

             d)   Does not cause the reduction in federal aid highway  
               funds.

          2)Authorizes, on and after January 1, 2022, the applicable city,  
            county, or city and county to request, for good cause, from  
            the California Department of Transportation (Caltrans) an  
            extension beyond January 1, 2023, not to exceed the expiration  
            of the redevelopment project area.

          3)Defines "good cause" as satisfying all of the following:

             a)   There has been a finding by the applicable city, county,  
               or city and county that the advertising display has had a  
               positive economic impact on the redevelopment project area  
               and provides a public benefit.

             b)   There have been no violations by the display owner or  
               operator of this section or of any applicable illumination  
               standards in the previous 10 years that have not been  
               corrected within 30 days of the date of mailing of a  
               violation notice to the owner or operator by Caltrans.

             c)   There has been compliance by the owner and operator with  
               all other standards adopted by the applicable city, county,  
               or city and county, or by Caltrans.

          4)Specifies that the applicable city, county, or city and county  
            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,  
            but does specify that nothing in this provision shall be  
            construed to preclude any enforcement authority by Caltrans. 

          5)Clarifies that if the United States Department of  
            Transportation, the Federal Highway Administration, or any  
            other applicable federal agency to the state provide notice  
            that the operation of that display will result in the  
            reduction of federal aid highway funds, then the authorization  
            of that display shall cease and the display owner shall remove  
            all advertising copy from the display within 60 days after the  
            state notifies the display owner of the receipt of the federal  
            notice









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          6)Specifies that failure to remove the advertising copy, as  
            specified, shall result in a civil fine of $10,000 per day  
            until the advertising copy is removed.

          7)Specifies that Caltrans shall not assume any liability in  
            connection with the cessation of operation or removal of an  
            advertising display.

          8)Clarifies that if the owner or operator of the display is not  
            indicted on the display, the state is only required to send  
            the notice to the applicable city, county, or city and county.

          9)Clarifies that an advertising display may remain until January  
            1, 2023, after which date the display shall be removed, unless  
            it otherwise qualifies as a lawful advertising display,  
            without the payment of any compensation to the owner or  
            operator.

          10)Specifies that the applicable city, county, or city and  
            county shall annually, by December 31, certify to Caltrans  
            that the advertising copy of the advertising display is  
            advertising businesses or activities operating within the  
            boundaries of the redevelopment project area and that at least  
            10% of the advertising copy, up to a maximum of 100 square  
            feet, is used to display the address or location of the  
            business or activity, or to identify the route to the business  
            or activity from the nearest freeway off-ramp.

          11)Allow Caltrans to independently review certification  
            compliance.

          12)Specifies that that an advertising display shall be removed  
            if it is in violation more than three times within a 10-year  
            period and the violation has not been corrected within 30 days  
            of the date of mailing of a violation notice to the owner or  
            operator by Caltrans.

          13)Specifies that the city, county, or city and county fails to  
            ensure that the displays remain in conformance with all  
            provisions of the ordinance and this measure after 30 days of  
            receipt of a written notice from the California Department of  
            Transportation (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 measure or to defend  








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            actions challenging the adoption of the ordinance allowing  
            displays.
          
           FISCAL EFFECT  :   According to the Assembly Appropriations  
          Committee, there are no significant costs associated with this  
          legislation.

           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.  

          Due to the elimination of redevelopment agencies, one of the  
          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 26 X1 (Blumenfield), Chapter  
          5, Statutes of 2011-12 First Extraordinary Session.  AB 26 X1  
          eliminated redevelopment agencies and established procedures for  
          winding down agencies, paying off enforceable obligations, and  
          disposing of agency assets.  In addition, AB 26 X1 established  








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          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. 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.
           

          Analysis Prepared by  :    Felipe Lopez / G. O. / (916) 319-2531 


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