BILL ANALYSIS Ó
SB 694
Page 1
Date of Hearing: June 26, 2013
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Isadore Hall, Chair
SB 694 (Correa) - As Amended: May 2, 213
SENATE VOTE : 34-3
SUBJECT : Outdoor advertising: transit stations
SUMMARY : Exempts from the Outdoor Advertising Act (OAA)
advertising displays at current or future high-speed rail
stations. Specifically, this bill :
1)Exempts from the OAA advertising displays at current or
future high-speed rail stations only if the following
requirements are met:
a) It is publicly owned and operated and is located on
public land.
b) It is identified as a critical component in the region's
sustainable communities strategy, as described.
c) One of the modes of transportation served at the
multimodal transit facility is a passenger rail.
2)Specifies that in order to advertise any products, goods, or
services, all of the following shall apply:
a) The advertising display shall be on the same side of the
highway and within 1,000 feet of an entrance to a
multimodal transit facility.
b) The advertising display shall not advertise products,
goods, or services related to distilled spirits, tobacco,
firearms, or sexually explicit material.
c) Beyond the cost of erection, revenues from the
advertising display shall be used to support the
construction, operations, and maintenance of the multimodal
transit facility.
d) The advertising display shall not cause a reduction in
federal aid highway funds.
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3)Specifies that any advertising display shall be authorized by
a local ordinance, adopted by the city or county that
regulates advertising displays by either identifying the
specific displays or by establishing regulations that include,
at a minimum, all of the following:
a) The number of signs and total signage area allowed.
b) The maximum individual signage area.
c) Minimum sign separation.
d) Illumination restrictions and regulations, including
signage refresh rate, scrolling, and brightness.
e) Illuminated sign hours of operation.
4)Specifies that authorization of an advertising display shall
be subject to the owner of the display submitting, to the High
Speed Rail Authority (HSRA), a copy of the ordinance
authorizing the display that has been adopted by the
applicable city or county.
5)Requires the HSRA to review and certify that the proposed
display and the ordinance meet the minimum requirements,
including that the multimodal transit facility is or will be a
current or future station for the high-speed train system.
6)Specifies that nothing in this bill limits a city or county
from adopting an ordinance that further restricts the size,
number, or types of advertising displays authorized by this
bill.
EXISTING LAW
1)The Outdoor Advertising Act (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)Provides, through the OAA, for regulation by the Department of
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Transportation of advertising displays, as defined, within
view of public highways.
3)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.
4)The OAA exempts from its provisions specified advertising
displays at an arena located on public land with a capacity of
5,000 seats or more that provides a permanent venue for
professional sports, and that advertise products, goods, or
services that are or will be sold on the premises of the arena
on a regular basis pursuant to a specified agreement.
FISCAL EFFECT : Unknown
COMMENTS :
Purpose of the bill : According to the author, SB 694 provides
an exemption to the OAA for high-speed rail stations when
certain requirements are met.
The author further states that significant economic development
and job creation result from the building and operation of large
transit stations that can accommodate the high speed rail train.
However, the ongoing costs to operate the facilities can be
considerably high. Estimates contained in High Speed Rail
Authority's (HSRA's) most recent business plan, indicated that
the project will cost at least $68 billion. This estimate does
not include the build-out and ongoing operational and
maintenance costs associated with high speed rail stations,
which the HSRA assumes will be funded by local agencies.
By authorizing on-site advertising, SB 694 promotes the creation
of public private partnerships, which help local agencies defray
operational and maintenance costs of high speed rail transit
stations.
The Anaheim Regional Transportation Intermodal Center (ARTIC):
Set to open in in late 2014, ARTIC is a planned 67,000 square
feet terminal that will combine a transportation gateway and
mixed-use activity center on a 16-acre site owned by the City of
Anaheim. Upon opening, ARTIC will serve as a major
transportation hub for Orange County and the region where
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freeways, major arterials, bus routes and Orange County's rail
system will converge. ARTIC will increase mobility options for
residents, business, commuters and local and international
visitors to Anaheim, Orange County and the entire Southern
California region. ARTIC will also accommodate planned
high-speed rail, linking the state's major population centers,
including Sacramento, the San Francisco Bay Area, the Central
Valley, Los Angeles, Inland Empire, Orange County, and San
Diego.
According to their website, the vision of ARTIC is to be a
transportation facility where people will seamlessly move
between transit services to reach Southern California activity
centers and business districts. Transit oriented development in
the immediate area will integrate with ARTIC to form a vibrant
Southern California community. Together, it will represent
Orange County's continuing transformation from rural farmland
and suburban community to a thriving metropolis.
The project is estimated to cost approximately $188 million and
is estimated to create about 5,000 jobs.
ARTIC funding sources : According to the City of Anaheim, the
city is seeking to implement an on-site sponsorship program to
support operation and maintenance of the ARTIC facility. While
the bulk of the capital funding come from local Measure M1 and
M2 funds, the project also uses some state and federal sources
for the capital investment. Funding for operation and
maintenance is expected to be funded through a sponsored
advertising program.
The primary purpose of the proposed sponsorship program is to
generate revenues for day-to-day operations and long term
maintenance of capital assets at ARTIC, including facilities
management. According to the City of Anaheim, sponsorship
revenues are projected to generate approximately $6,070,000 over
the first three years. This revenue source will be used to pay
92% of operation and maintenance expenses during that time
period.
Outdoor Advertising Act : The Outdoor Advertising Act (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
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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 : The City of Anaheim writes in support of
the bill stating that SB 694 is an important measure that
authorizes local agencies which will build and operate future
high speed rail stations to establish an advertising display
program. The bill provides significant local control so the
jurisdiction in which the displays will be located can determine
the number, spacing, illumination, and hours of operation.
Supporters further argue that significant economic development
and job creation results from the building and operating of
large transit stations that can accommodate the high speed rail
train. However, the ongoing costs to operate the facilities can
be considerable. On-site advertising, as authorized by this
bill, will help local communities to defray the operational and
maintenance costs of these transit stations and reduce the need
for taxpayer offsets.
Related Legislation : SB 31 (Padilla). Recasts the arena
advertising exception to exempt from the OAA specified
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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 in Assembly Appropriations Committee)
SB 694 (Hill). Recasts the redevelopment agency exemption to
the Outdoor Advertising Act (OAA) to reflect the elimination of
redevelopment agencies. (Pending in Assembly Governmental
Organization Committee)
Previous Legislation : AB 2339 (Solorio), Chapter 493, Statutes
of 2008. Expanded the definition of an "on premise" display to
include those displays advertising products, goods, or services
sold on the premises of an arena of at least 5,000 seats and is
located on public land, provided certain conditions were met.
REGISTERED SUPPORT / OPPOSITION :
Support
City of Anaheim (Sponsor)
Orange County Business Council
Opposition
None on file
Analysis Prepared by : Felipe Lopez / G. O. / (916) 319-2531