BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 223


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          Date of Hearing:  April 22, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


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


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          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


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          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  








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            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