BILL ANALYSIS Ó
SB 694
Page 1
SENATE THIRD READING
SB 694 (Correa)
As Amended September 3, 2013
Majority vote
SENATE VOTE : 34-3
GOVERNMENTAL ORGANIZATION 10-1 APPROPRIATIONS 16-1
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|Ayes:|Hall, Campos, Chesbro, |Ayes:|Gatto, Harkey, Bigelow, |
| |Cooley, Gray, Hagman, | |Bocanegra, Bradford, Ian |
| |Jones-Sawyer, Levine, V. | |Calderon, Campos, Eggman, |
| |Manuel Pérez, Salas | |Gomez, Hall, Holden, |
| | | |Linder, Pan, Quirk, |
| | | |Wagner, Weber |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Jones |Nays:|Donnelly |
| | | | |
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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.
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b) The advertising display shall not advertise products,
goods, or services related to, 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.
3)Clarifies that if 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.
4)Specifies that the failure to remove the advertising copy, as
specified, shall result in a civil fine, imposed by the
California Department of Transportation (Caltrans), of $10,000
per day until the advertising copy is removed.
5)Specifies that Caltrans shall not assume any liability in
connection with cessation of operation or removal of
advertising display or advertising copy.
6)Specifies that that the city, county, or city and county
adopting the ordinance shall have the primary responsibility
for ensuring that the displays remain in conformance with the
provisions of this measure.
7)Specifies that if 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 Caltrans (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 actions challenging the adoption of
the ordinance allowing displays.
8)Specifies that any advertising display shall be lawful only if
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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.
9)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.
10)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.
11)Specifies that nothing in this bill limits a city, county, or
city and county from adopting an ordinance prohibiting or
further restricting the size, number, or types of advertising
displays authorized by this bill.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, the workload associated with reviewing and certifying
proposed advertising displays should be minor and absorbable
within existing HSRA resources.
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.
SB 694
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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
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
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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.
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.
Analysis Prepared by : Felipe Lopez / G. O. / (916) 319-2531
FN: 0002096