BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 223


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          Date of Hearing:  April 6, 2015


                        ASSEMBLY COMMITTEE ON TRANSPORTATION


                                 Jim Frazier, Chair


          AB 223  
          (Dahle) - As Introduced February 3, 2015


          SUBJECT:  Highways:  exit information signs


          SUMMARY:  Authorizes, until January 1, 2021, the placement of  
          Business Logo Signing Program signs along Interstate 80 within,  
          or at the exits leading to, the City of Truckee.





          EXISTING LAW:  

          1)Directs the California Department of Transportation (Caltrans)  
            to adopt rules and regulations for its Business Logo Signing  
            Program - i.e., a program to allow the placement of signs near  
            freeways identifying the presence of specific roadside  
            businesses offering fuel, food, lodging, or camping services,  
            approved 24-hour pharmacy services, or specific approved  
            attractions, under the following conditions:

             a)   All business applicants must have equal access to the  
               program; and,

             b)   Caltrans is prohibited from placing business logo signs  
               within urban areas designated by the United State Bureau of  








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               Census as having a population of 5,000 or more (except for  
               the City of Lincoln, as described below). 

          2)Prohibits the removal of business logo signs placed before  
            January 1, 2003, due solely to population growth in an urban  
            area that results in a population of 5,000 or more but less  
            than 10,000.

          3)Authorizes a limited exception to the Business Logo Signing  
            Program for signs along State Route 65 within the City of  
            Lincoln, until January 1, 2021.

          4)Requires Caltrans, on or before January 1, 2020, to report to  
            the transportation committees of the Senate and Assembly on  
            the implementation of the exception for the City of Lincoln.   
            The report is to include recommendations as to whether or not  
            the period of this exception should be extended and whether or  
            not the authorization for the Business Logo Signing Program  
            should be expanded to urban areas having a population of 5,000  
            or more.

          FISCAL EFFECT:  According to the Assembly Appropriation  
          Committee's analysis of a similar bill last session, AB 178  
          (Gaines), Chapter 131, Statutes of 2013, the bill will likely  
          have minor costs to Caltrans, which would be offset by fees.


          COMMENTS:  The Business Logo Signing Program was originally  
          created to provide motorists with information regarding specific  
          roadside businesses offering fuel, food, lodging, or camping  
          services alongside along Interstate 5.  The program was later  
          expanded to rural areas generally. 















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          Implementing regulations promulgated by Caltrans set forth  
          criteria for businesses to be included in the program.  For  
          example, gas stations must meet the following criteria:  


          1)The business must be generally neat, clean, and have a  
            comfortable appearance and an adequate scope of services.  


          2)For gas stations, a business must be located within one mile  
            of the freeway interchange and it must provide vehicle  
            services, including fuel, oil, tire repair, battery, and  
            radiator water.  It must also provide public restrooms, water  
            fountains, and telephones and it must be open for a specified  
            number of hours per day.


          Business logo signs only accommodate six logos per type of  
          service (i.e., food, gas, lodging or camping), and Caltrans does  
          not install more than one sign per type of service.  To address  
          situations in which there are more qualified applicants than  
          available logo spaces, Caltrans has developed a priority system.  
           For lodging and camping signs, Caltrans prioritizes businesses  
          that are closest to the highway.  For food and fuel signs,  
          priority is based on a point system that values proximity to the  
          highway and longer hours of operation.


          Last session, the Legislature passed AB 178 to help the City of  
          Lincoln.  The city's business community had been negatively  
          impacted by the opening of the Lincoln Bypass the year before  
          that diverted traffic from the historic downtown and its fuel  
          and food service providers.  Lincoln is not otherwise eligible  
          to participate in the business logo program because its  
          population exceeds the definition of rural.  

          This bill was introduced to provide a similar, limited-time  
          exception to the Business Logo Signing Program for the City of  








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          Truckee.  Truckee has a population of over 16,000 and is, like  
          the City of Lincoln, ineligible for participation in the  
          Business Logo Signing Program. 

          Truckee's population has exceeded the rural threshold since  
          inception of the Business Logo Signing Program so it is not  
          clear why business logo signs were even authorized to begin  
          with.  Caltrans was unable to determine why the signs were  
          originally placed but it did confirm that, in 2008, at least 11  
          business logo sign accounts in the Truckee area were closed when  
          the department realized the signs did not comply with the  
          Business Logo Sign Program guidelines related to population.   
          Following removal of the business logo signs, Caltrans installed  
          general service signs directing traffic to exits where food,  
          fuel, and lodging are available but that do not display specific  
          business logos.

          According to the author, businesses in Truckee were negatively  
          impacted following removal of logo signs.  The author also  
          suggests the bill is necessary because construction of the  
          Truckee Bypass in 2002 has resulted in a downturn in Truckee  
          businesses.

          Committee concern:  The exception provided for the City of  
          Lincoln was intended to ease the transition for the city's  
          businesses following construction of the just-opened bypass.   
          The exception is for a limited duration (7 years).  The Truckee  
          Bypass, on the other hand, was opened over 12 years ago, well  
          beyond what could arguably be considered a reasonable transition  
          period.

          Previous legislation:  AB 178 (Gaines), Chapter 131, Statutes of  
          2013, authorized a limited exception to the Business Logo  
          Signing Program for signs along State Route 65 within the City  
          of Lincoln, until January 1, 2021.


          AB 1923 (Dickerson), Chapter 576, Statutes of 2002, was  
          originally introduced to expand the Business Logo Signing  








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          Program to areas up to 15,000.  AB 1923 was subsequently  
          amended, and eventually signed to prohibit Caltrans from taking  
          down business logo signs in areas with populations that exceeded  
          5,000 but did not exceed 10,000.  


          SB 599 (Knight), of 1997, would have required Caltrans to allow  
          business logo signs in areas with populations larger than 5,000  
          if the city submits a written request to the department for such  
          placement.  SB 599 failed passage in the Senate Transportation  
          Committee.  

          AB 1257 (Chandler), Chapter 560, Statutes of 1992, expanded the  
          business logo program beyond rural areas alongside of Interstate  
          5 to other rural areas of California.  


          REGISTERED SUPPORT / OPPOSITION:




          Support


          Truckee Donner Chamber of Commerce


          Truckee Town Council


          2 private citizens




          Opposition










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          None on file




          Analysis Prepared by:Janet Dawson / TRANS. / (916) 319-2093