BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
                              Senator Jim Beall, Chair
                                2015 - 2016  Regular 

          Bill No:          AB 223            Hearing Date:    6/23/2015 
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          |Author:   |Dahle                                                 |
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          |Version:  |6/15/2015                                             |
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          |Urgency:  |No                     |Fiscal:      |Yes             |
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          |Consultant|Alison Dinmore                                        |
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          SUBJECT:  Business Logo Signing Program:  Town of Truckee  
          exception


            DIGEST:  This bill requires Caltrans to permit the placement of  
          Business Logo Signing Program signs on Interstate 80 (I-80)  
          within, or at exits leading to, the City of Truckee, until  
          January 1, 2021. 

          ANALYSIS:
          
          Existing law: 

          1)Requires Caltrans to adopt rules and regulations for its  
            Business Logo Signing Program, which allows signs near freeway  
            exits in rural areas to contain information about roadside  
            businesses offering fuel, food, lodging, camping services,  
            approved 24-hour pharmacy services, or approved attractions.   
            These signs display up to six business logos for applicable  
            businesses.  Caltrans must provide equal access to all  
            business applicants and may not approve signs in urban areas  
            designated by the United States Bureau of the Census as having  
            a population of 5,000 or more.  Caltrans may not remove an  
            information sign that was placed before January 1, 2003, if  
            the population in an urban area grew to more than 5,000 but  
            not less than 10,000 people.   

          2)Creates a limited exception to the Business Logo Signing  
            Program and states that Caltrans shall, through January 1,  
            2021, allow the placement of information signs along State  







          AB 223 (Dahle)                                      Page 2 of ?
          
          
            Highway Route 65 within, or at exits leading up to, the City  
            of Lincoln.  Caltrans must also report to the Senate and  
            Assembly Transportation Committees before January 1, 2020, on  
            the implementation of the exception, and offer any  
            recommendations for extending the exception period and whether  
            or not the authorization for the Business Logo Signing Program  
            should be expanded to urban areas with populations of 5,000 or  
            more.

          This bill creates another exemption by requiring Caltrans to  
          permit information signs to be placed on I-80 within, or at  
          exits leading to, the City of Truckee.  The authorization in  
          this bill shall apply only to incorporated areas with a  
          population density of less than one person per acre surrounded  
          entirely by land of the Tahoe National Forest. 

          COMMENTS:

          1)Purpose of the bill.  Around 2008, Caltrans removed at least  
            eight business logo signs in the Truckee area following  
            construction of the Highway 267 bypass and, according to the  
            town, businesses have seen a decrease in business.  AB 223  
            seeks to replace those logo signs to inform travelers of  
            businesses that are available.

          2)City of Lincoln exception.  Last session, the Legislature  
            passed and the Governor signed AB 178 (Gaines, Chapter 131,  
            Statutes of 2013) 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, because it 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.  

            AB 178 established a limited exception to the Business Logo  
            Signing Program by allowing business logo signs along State  
            Route 65 until January 1, 2021 and required Caltrans to  
            provide a report on or before January 1, 2020.  That report  
            shall include recommendations as to whether or not the  
            business logo program should be expanded, and if so, in what  
            ways.   

          3)  Why Truckee?  According to the sponsor, the Town of Truckee,  
            Truckee is a town deep in the Sierra Nevada Mountains,  








          AB 223 (Dahle)                                      Page 3 of ?
          
          
            surrounded by dense forest and national park land.  This  
            national forest land precludes private business signage for  
            miles leading into the town.  Truckee is a large incorporated  
            area with fewer than .69 people per acre (spread over 33  
            square miles) and the last full-service opportunity before  
            leaving the state (25 miles from the next town in Nevada).   
            The sponsor believes that informing drivers will assist public  
            safety at night or during winter driving conditions with chain  
            requirements and snow removal equipment.  

            Truckee had logo signs on I-80 until 2008 when Caltrans  
            removed the signs and  replaced them with generic fuel,  
            lodging, and food signs, because the population did not meet  
            the definition of rural.  In fact, Truckee's population never  
            met the rural threshold, and it is not clear why the business  
            logo signs were authorized to begin with.  Since then, the  
            sponsor states that businesses in Truckee, particularly those  
            not located in historic downtown, saw a significant drop in  
            business.  Some hotels saw a 20% drop-off in bed nights, which  
            greatly impacts the business and town revenues.  

            The Lincoln exception was intended to ease the transition for  
            the city's businesses following the construction of the newly  
            opened bypass for a limited time period.  The signs near  
            Truckee were taken down in 2008, during the great recession,  
            more than seven years ago.  Caltrans did not merely take down  
            existing signs; Caltrans replaced those signs with generic  
            blue signs with fuel, lodging, and food symbols that provide  
            travelers with information about the location of services.   
            Additionally, the sponsor states that Truckee lost two major  
            businesses, as those businesses moved to Nevada.  As a result,  
            this bill seems less designed to assist travelers than to help  
            businesses in an economically struggling town advertise in the  
            public right-of-way.  
            
          4)Precedent and proliferation of signs.  The Business Logo  
            Signing Program is intended to help travelers find services in  
            rural areas, where not all exits provide services.  In larger  
            towns and cities, it is assumed that travelers know that  
            almost all exits have services.  This bill is likely to set a  
            precedent for other cities to seek similar treatment, because  
            their businesses would equally benefit from highway  
            advertising.  Ultimately, expanding the Business Logo Signing  
            Program will result in more highway signage.  The  
            proliferation of signs has often been of concern to this  








          AB 223 (Dahle)                                      Page 4 of ?
          
          
            committee because it adds to driver distraction and dilutes  
            attention to highway safety signs.  

          Assembly Votes:

            Floor:    77-0
            Appr:     17-0
            Trans:    15-0
          
          Related Legislation:
          
          AB 179 (Gaines, Chapter 131, Statutes of 2013) - authorized a  
          limited exception to the Business Logo Signing Program for signs  
          along the State Route 65 within the City of Lincoln until  
          January 1, 2021.

          FISCAL EFFECT:  Appropriation:  No    Fiscal Com.:  Yes     
          Local:  No


            POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,
                          June 17, 2015.)
          
            
          SUPPORT:  

          Town of Truckee (sponsor)
          Truckee Donner Chamber of Commerce
          2 Truckee business owners

          OPPOSITION:

          None received


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