BILL ANALYSIS                                                                                                                                                                                                    


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                                    THIRD READING

          Bill No:  SB 694
          Author:   Correa (D)
          Amended:  5/2/13
          Vote:     21

          AYES:  DeSaulnier, Gaines, Beall, Cannella, Galgiani, Hueso,  
            Lara, Liu, Roth, Wyland
          NOES:  Pavley

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           SUBJECT  :    Outdoor advertising:  transit stations

           SOURCE  :     Author

           DIGEST  :    This bill exempts, from the Outdoor Advertising Act  
          (OAA), advertising displays at a publicly owned multimodel  
          transit facility (MTF) that is to serve as a station for the  
          high-speed train system, as specified, and requires revenues  
          from the advertising display to be used to support the  
          construction, operation, and maintenance of the MTF.

           ANALYSIS  :    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.



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          The OAA generally does not apply to "on premise" advertising  
          displays, which include 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.

          Existing law created the California High-Speed Rail Authority  
          (HSRA) in 1996 to direct development and implementation of  
          inter-city high-speed rail service that is fully coordinated  
          with other public transportation services.  In 2008, voters  
          approved Proposition 1A (Prop 1A) authorizing $9.95 billion in  
          general obligation bonds for the project.  Prop 1A identified  
          the first phase of the project to be a corridor between the  
          Transbay Terminal in San Francisco and Anaheim and include Los  
          Angeles' Union Station.  Prop 1A further identified a number of  
          future potential destinations after the first phase is  
          completed, such as Sacramento, Oakland, and San Diego.

          According to HSRA's most recent business plan, completion of the  
          first phase of the high-speed rail project will cost at least  
          $68 billion.  This estimate does not include the build-out of  
          stations, with the expectation that local governments will plan  
          for and fund stations based on local preferences.  To date, HSRA  
          has secured roughly $13.6 billion to develop and construct the  
          project, leaving a roughly $55 billion deficit HSRA still needs  
          to address from sources yet to be identified.

          This bill:

             1.   Exempts, from the OAA, advertising displays at current  
               or future high-speed rail stations.  In order to qualify  
               for the exemption, this bill requires the MTF meet the  
               following requirements:

                  A.        Be located on public property and be publicly  
                    owned and operated.

                  B.        Be identified as a critical component in the  
                    region's sustainable communities strategy.

                  C.        One of the modes of transportation served at  
                    the facility is passenger rail.



                                                                     SB 694

                  D.        Is a current or future high-speed rail station  
                    along the first phase of the system between San  
                    Francisco and Anaheim.

             2.   Requires the advertising display meet all of the  
               following requirements:

                  A.        The displays must be on the same side of the  
                    highway and within 1000 feet of an entrance to a MTF. 

                  B.        The displays cannot advertise distilled  
                    spirits, tobacco, firearms, or sexually explicit  

                  C.        Revenues from the display, minus cost of  
                    erection, are used to support the construction,  
                    operations, and maintenance of the MTF.

                  D.        Cannot cause a reduction in federal aid  
                    highway funds.

             3.   Requires the local government adopt an ordinance  
               regulating the displays including, but not limited to, the  
               number of signs and total signage area, minimum separation  
               between signs, illumination restrictions, and hours of  

             4.   Requires the owner of the advertising display submit a  
               copy of the locally adopted ordinance authorizing the  
               display to the HSRA.  

             5.   Requires the HSRA certify that the display meets the  
               requirement of the bill, including that the MTF is or will  
               be a station for the high-speed train system.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  5/17/13)

          City of Anaheim

           ARGUMENTS IN SUPPORT  :    According to the author's office, this  
          bill provides an opportunity to utilize a public-private  



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          partnership to partially fund the construction, operation, and  
          maintenance of high-speed rail station areas.  The author's  
          office contends that construction and operation of large transit  
          stations, particularly once the stations begin servicing  
          high-speed trains, will result in significant economic  
          development and job creation.  The ongoing costs to operate such  
          facilities, however, can be considerable.  Advertising revenue,  
          as authorized by this bill, will help local communities defray  
          these costs and reduce the need for taxpayer offsets.  In this  
          way, the author's office contends, this bill promotes the  
          development of high-speed rail and creates another tool to fund  
          and deliver this important state priority.

           (JA:nl):ej  5/17/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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