BILL ANALYSIS Ó AB 223 Page 1 Date of Hearing: April 22, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 223 (Dahle) - As Introduced February 3, 2015 ----------------------------------------------------------------- |Policy |Transportation |Vote:|15 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill requires Caltrans, until January 1, 2021, to allow the placement of business logo signage along Interstate 80 at the exits leading to the City of Truckee (Placer County). AB 223 Page 2 FISCAL EFFECT: Minor up-front costs to Caltrans to install the signs, fully offset over time by permit fees paid by businesses benefitting from the logo signage. COMMENTS: 1)Background. The business logo program provides motorists with information signs, along freeways in rural areas with less than 5,000 population, regarding specific roadside businesses offering gas, food, lodging, camping, 24-hour pharmacy services, or approved recreational attractions. Caltrans charges each business benefitting from the program a fee of at least 25% more than Caltrans' cost for placing and maintaining signs. Last session, the Legislature passed AB 178, a similar bill to assist the City of Lincoln. That city's business community had been negatively impacted by the opening of the Lincoln Bypass the year before, which diverted traffic from the historic downtown and its fuel and food service providers. Lincoln was not otherwise eligible to participate in the business logo program because its population exceeds the definition of rural. 2)Purpose. This bill intends to provide a similar, limited-time exception to the Business Logo Signing Program for participation by the City of Truckee. Truckee has a population of over 16,000 and, like Lincoln, has always been ineligible for participation in the Business Logo Signing Program. Caltrans was unable to determine why business logo signs were originally placed near Truckee. In 2008, at least 11 business logo sign accounts in the Truckee area were closed. Following AB 223 Page 3 removal of these signs, Caltrans installed general service signs directing traffic to exits where food, fuel, and lodging are available without displaying 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. Analysis Prepared by:Chuck Nicol / APPR. / (916) 319-2081