BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 1134
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          Date of Hearing:   June 9, 2014

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                               Bonnie Lowenthal, Chair
                     SB 1134 (Knight) - As Amended:  May 6, 2014

           SENATE VOTE  :  28-7
           
          SUBJECT  :  Vehicles: public transit buses: illuminated signs

           SUMMARY  :  Authorizes the Antelope Valley Transit Authority  
          (AVTA) to institute a pilot program to equip the sides of its  
          buses with illuminated signs to display advertising if the  
          Authority makes a specified determination on or before March 1,  
          2015.  Specifically,  this bill  :  

          1)Authorizes a bus operated by AVTA on regularly scheduled  
            service to be equipped with illuminated signs that display  
            advertising and that emit any light color, if all of the  
            following conditions are met:

             a)   The signs emit diffused, nonglaring light;

             b)   The signs are no larger than 4,464 square inches in size  
               (for example, roughly three feet high by ten feet long);

             c)   The signs do not resemble and are not installed in a  
               position that interferes with the visibility or  
               effectiveness of a required lamp, reflector, or other  
               device upon the vehicle;

             d)   The signs are placed only on the sides of buses, not on  
               the front or back, with no more than one sign placed on  
               either side of any single vehicle; and,

             a)   Light-emitting diodes for illumination may include red,  
               provided the color formed by the mixing of light from the  
               diodes in the signs is not red.  

          1)Allows an illuminated sign displaying advertising to be  
            operated as a dynamic message sign in a paging or streaming  
            mode, but requires the display to remain static when a bus is  
            operating on a state freeway.  

          2)Allows "paging," meaning character elements or other  








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            information presented for a period of time and then  
            disappearing all at once before the same or new elements are  
            presented, if the display time of each message is between 2.7  
            and 10 second and requires blanking times between each message  
            to be  between 0.5 and 25 seconds.  

          3)Allows "streaming," meaning character elements or other  
            information moving smoothly and continuously across the  
            display, if the character movement time from one end of the  
            display to the other is at least 2.7 seconds and the movement  
            time of the entire message does not exceed 10 seconds.  

          4)Specifies that AVTA may implement the pilot program only if it  
            determines that the University of California, Irvine (UC  
            Irvine) has equipped fewer than 12 transit buses with  
            illuminated signs by March 1, 2015.  

          5)Authorizes AVTA to operate up to 25 buses with illuminated  
            signs displaying advertising for two years, after which time  
            the authority may increase the number of buses with the signs  
            to up to 30.  

          6)Requires AVTA, if it implements the pilot program, to submit  
            to the Legislature by July 1, 2019, a report on the incidence  
            of adverse impacts on roadway and pedestrian safety due to the  
            utilization of illuminated signs displaying advertising on  
            transit buses, and requires that the report be the product of  
            a collaborative effort by Antelope Valley law enforcement,  
            transit officials, and other local law enforcement officials  
            in whose jurisdictions AVTA vehicles operate.  

          7)Sunsets AVTA's authority to operate buses with illuminated  
            signs displaying advertising on January 1, 2020.  

           EXISTING LAW  :

          1)Authorizes the City of Santa Monica's bus transit system to  
            establish a pilot program, until January 1, 2017, equipping  
            the sides of its buses with illuminated signs to display  
            advertising, under the same conditions as described above for  
            AVTA's pilot program, with a report due to the Legislature and  
            the California Highway Patrol by July 1, 2016.  

          1)Authorizes UC Irvine's bus transport system to institute a  
            pilot program identical to the one authorized for the City of  








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            Santa Monica, but only if Santa Monica had not started the  
            pilot by March 1, 2014.  UC Irvine's pilot program sunsets on  
            January 1, 2019.  

           FISCAL EFFECT  :  None

           COMMENTS  :  Public transit agencies have long subsidized transit  
          operations with revenues from paper advertising displays placed  
          on the sides of buses.  A recent federal research project  
          suggests that the emerging media of digital bus advertising  
          could provide a potential additional revenue stream for transit  
          agencies.  These digital signs are ultra-thin, lightweight,  
          light emitting diode (LED) screens that can easily be mounted on  
          the sides of buses and cost about $50,000 each.  Digital  
          advertising allows for customized advertising, including a  
          variable rate structure and easily changeable messaging.   
          Because the advertising being displayed can be managed remotely,  
          it is possible to render the advertising static when the buses  
          are operating on freeways.  

          Responding to this new potential revenue source, the Legislature  
          enacted AB 607 (Brownley, Chapter 529, Statutes of 2011)  
          authorizing Santa Monica to conduct a pilot project to study the  
          safety impacts of illuminated signs on buses.  Before widely  
          authorizing the use of these signs across the state, the  
          Legislature wanted to study the safety of the signs and the  
          potential for distraction of pedestrians and other drivers.  In  
          passing AB 607, this committee voiced serious concerns about the  
          safety issues illuminated advertising signs on buses might  
          raise, but conceded that one pilot program to study the  
          magnitude of these issues seemed reasonable.  

          By the start of 2013, Santa Monica had not started the pilot  
          program and the city was not sure it would because of concerns  
          over costs and less optimistic revenue expectations.  However,  
          transit agencies were continuing to express interest in using  
          illuminated signs for advertising on buses. Still wanting to  
          gather information through a pilot program before considering  
          statewide authority to use such signs, the Legislature passed AB  
          541 (Daly, Chapter 133, Statutes of 2013), granting UC Irvine  
          the authority to operate an illuminated sign pilot program only  
          if, by March 1, 2014, Santa Monica had not begun its own  
          program.  According to Assemblymember Daly's staff, Santa Monica  
          has still not started the program so UC Irvine has begun  
          preparing to do its own pilot.  








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          This bill allows AVTA to conduct an illuminated sign pilot  
          subject to the same requirements established for both Santa  
          Monica and UC Irvine, but only if it determines that UC Irvine  
          has equipped fewer than 12 transit buses with illuminated signs  
          by March 1, 2015. AVTA would be required to report to the  
          Legislature on its program, if implemented, by July 1, 2019, and  
          its pilot would sunset on January 1, 2020.  

          According to the author, currently transportation systems employ  
          standard paper advertising on the sides of buses.  New  
          advertisements incur the expense of frequent wasteful paper  
          replacements as well as labor costs.  With emerging technologies  
          available to the public such as digital music, 3-D films and  
          television, social media, and the Internet, it stands to reason  
          that advertisers would look to technological advancements as  
          advantageous marketing tools.  Through the installation of a  
          digital system, with thin, lightweight LED monitors affixed to  
          buses, advertisers are afforded a new way to reach customers  
          that can be updated quickly and easily.  Advertising would be  
          capable of being transmitted wirelessly, eliminating wasteful  
          paper and labor costs and keeping up with advanced technology.   
          The adoption of these provisions would allow AVTA to have an  
          innovative way to generate revenue beyond the fare box and tax  
          subsidies.  

           Proposed amendments :  Require AVTA to report to the Legislature  
          by January 1, 2020, and sunset the program on July 1, 2020.  

           Previous legislation  :  AB 1984 (Wagner, 2012) and AB 2375  
          (Knight, 2012) would have allowed UC Irvine and AVTA,  
          respectively, to operate illuminated sign pilot programs.  Both  
          bills failed passage in the Senate Transportation and Housing  
          Committee, primarily due to the fact that the committee wanted  
          to await the results of Santa Monica's pilot before authorizing  
          illuminated signs on the sides of buses elsewhere.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Antelope Valley Transit Authority (sponsor)
           
            Opposition 
           








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          None on file

           
          Analysis Prepared by  :   Anya Lawler / TRANS. / (916) 319-2093