BILL ANALYSIS Ó
SB 684
Page 1
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
FN: 0002520