BILL ANALYSIS Ó
-----------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 694|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
-----------------------------------------------------------------
THIRD READING
Bill No: SB 694
Author: Correa (D)
Amended: 5/2/13
Vote: 21
SENATE TRANSPORTATION & HOUSING COMMITTEE : 10-1, 4/30/13
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.
CONTINUED
SB 694
Page
2
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.
CONTINUED
SB 694
Page
3
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
material.
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
operation.
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
CONTINUED
SB 694
Page
4
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
**** END ****
CONTINUED