BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 694|
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UNFINISHED BUSINESS
Bill No: SB 694
Author: Correa (D)
Amended: 9/3/13
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
SENATE FLOOR : 34-3, 05/28/13
AYES: Beall, Berryhill, Block, Calderon, Cannella, Corbett,
Correa, De León, DeSaulnier, Emmerson, Evans, Fuller, Gaines,
Galgiani, Hancock, Hernandez, Hill, Hueso, Huff, Knight, Lara,
Leno, Lieu, Nielsen, Padilla, Price, Roth, Steinberg, Torres,
Walters, Wolk, Wright, Wyland, Yee
NOES: Anderson, Jackson, Liu
NO VOTE RECORDED: Monning, Pavley, Vacancy
ASSEMBLY FLOOR : Not available
SUBJECT : Outdoor advertising: transit stations
SOURCE : City of Anaheim
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
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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.
Assembly Amendments (1) provide if an advertising display
authorized by this bill is subject to a notice from any
applicable federal agency that the operation of that display
will result in the reduction of federal aid highway funds, 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, (2) provide failure to remove the
advertising copy will result in a civil fine, imposed by the
California Department of Transportation (Caltrans), of $10,000
per day until the advertising copy is removed, (3) provide the
local agency adopting the ordinance authorizing the displays
have the primary responsibility for ensuring that the displays
remain in conformance with all provisions of the ordinance and
of this bill, as specified, and (4) remove the prohibition on
the advertising of distilled spirits on the displays.
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.
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
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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.
D. Is a current or future high-speed rail station along the
first phase of the system between San Francisco and
Anaheim.
1. 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, 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.
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D. Cannot cause a reduction in federal aid highway funds.
1. 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.
2. Specifies that the failure to remove the advertising copy,
as specified, shall result in a civil fine, imposed by
Caltrans, of $10,000 per day until the advertising copy is
removed.
3. Specifies that Caltrans shall not assume any liability in
connection with cessation of operation or removal of
advertising display or advertising copy.
4. 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.
5. 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, the city,
county, or city and county shall hold Caltrans harmless and
indemnify Caltrans for all costs incurred by Caltrans to
ensure compliance with the ordinance and this measure or to
defend actions challenging the adoption of the ordinance
allowing displays.
6. Specifies that any advertising display shall be lawful only
if 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.
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C. Minimum sign separation.
D. Illumination restrictions and regulations, including
signage refresh rate, scrolling, and brightness.
E. Illuminated sign hours of operation.
1. Specifies that authorization of an advertising display shall
be subject to the owner of the display submitting, to HSRA, a
copy of the ordinance authorizing the display that has been
adopted by the applicable city or county.
2. 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.
3. 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.
Comments
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
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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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (per Assembly Governmental Organization Committee
analysis of 6/26/13 - unable to reverify at time of writing)
City of Anaheim (source)
Orange County Business Council
ARGUMENTS IN SUPPORT : According to the author's office, this
bill provides an opportunity to utilize a public-private
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
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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 9/6/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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