BILL ANALYSIS                                                                                                                                                                                                    Ó

          |SENATE RULES COMMITTEE            |                       AB 1373|
          |Office of Senate Floor Analyses   |                              |
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                                   THIRD READING 

          Bill No:  AB 1373
          Author:   Santiago (D), et al.
          Amended:  8/19/16 in Senate
          Vote:     21 

           SENATE TRANS. & HOUSING COMMITTEE:  10-0, 6/28/16
           AYES:  Beall, Cannella, Bates, Gaines, Galgiani, Leyva,  
            McGuire, Mendoza, Roth, Wieckowski
           NO VOTE RECORDED:  Allen


           ASSEMBLY FLOOR:  71-6, 5/28/15 - See last page for vote

           SUBJECT:   Outdoor advertising:  City of Los Angeles

          SOURCE:    Author

          DIGEST:  This bill provides an exemption from regulations of the  
          Outdoor Advertising Act (OAA or Act) for signs allowed by a City  
          of Los Angeles ordinance in relation to the number and location  
          of billboards in an area bounded by West 8th Street on the  
          northeast, South Figueroa Street on the southeast, Interstate 10  
          on the southwest, and State Route 110 on the northwest, and a  
          small, adjacent parcel if certain conditions are satisfied.  

          Senate Floor Amendments of 8/19/16 add a triangular parcel,  
          which is approximately 120 feet on each side and adjacent to the  
          area identified in the bill, that houses an apprenticeship  
          facility; codify sign spacing restrictions that are  
          substantially similar to the restrictions contained in the  
          existing contractual agreement between the Department of  
          Transportation (Caltrans) and the Federal Highway Administration  


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                                                                     Page 2

          (FHA) to administer the federal Outdoor Advertising Control  
          (OAC); and delete the urgency.



          Existing law:
          1)Establishes the OAA, which regulates the placement of  
            advertising displays adjacent to and within specified  
            distances of highways that are part of the national system of  
            interstates, defense highways, and federal-aid highways.  

          2)Prohibits any advertising display from being placed or  
            maintained on property adjacent to a section of a freeway that  
            has been landscaped if the advertising display is designed to  
            be viewed primarily by persons traveling on the main-traveled  
            way of the landscaped freeway.  

          3)Provides for limited exemptions to the prohibition on  
            advertising along system and landscaped freeways, including  
            exemptions for signs advertising the property's sale or lease,  
            signs designating the premises or its owner, and signs  
            advertising goods or services manufactured or produced on the  
            property itself. 

          4)Provides that the OAA generally does not apply to on-premise  
            advertising displays, which include those advertising the sale  
            of the property upon which it is placed or that advertise the  
            business conducted, services rendered, or goods produced or  
            sold on the property.  Local government regulates on-premise  
            displays, except for certain safety requirements.

          5)Allows a single advertising structure exemption for each of  
            several cities, including an exemption for advertising  
            on-street furniture in San Francisco, several billboards  
            situated on the grounds of the Oakland-Alameda County Coliseum  
            complex, and structures within the Mid-City Recovery  
            Redevelopment Project Area within Los Angeles.

          6)Requires Caltrans to assess penalties for a violation of the  


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                                                                     Page 3

            OAA, as specified.  If an advertising display is placed or  
            maintained in a location that does not conform to the relevant  
            statutes or local ordinances, and is not removed within 30  
            days of written notice from the department, the city, or the  
            county with land-use jurisdiction over the property upon which  
            the advertising display is located, a penalty of $10,000 plus  
            $100 for each day the advertising display is placed or  
            maintained after the department sends written notice shall be  
            assessed, and the gross revenues received by the violator  
            shall be disgorged.  Caltrans may also request recovery of its  
            legal costs.
          7)Provides, by contractual agreement, for Caltrans to administer  
            the OAC program, which has restrictions similar to  
            California's OAA program, including maximum sign size, sign  
            spacing, location, illumination, and content.  If the state  
            fails to properly administer the federal program, the state  
            shall lose 10% of its federal highway funding.

          This bill:

          1)Provides an exemption from regulations of the OAA for signs  
            allowed by a City of Los Angeles ordinance in relation to the  
            number and location of billboards in an area bounded by West  
            8th Street on the northeast, South Figueroa Street on the  
            southeast, Interstate 10 on the southwest, and State Route 110  
            on the northwest, and for an adjacent triangular parcel in the  
            City of Los Angeles Bounded by West 8th Place, James M. Wood  
            Boulevard, and Golden Avenue.

          2)Requires the City of Los Angeles ordinance to provide for all  
            of the following:

             a)   Maximum number of signs and total signage allowed
             b)   Maximum individual signage area
             c)   Minimum sign separation
             d)   Illumination restrictions
             e)   Illuminated sign hours of operation

          1)Requires that for the areas described in the bill, the  
            advertising displays shall be at least 500 feet apart, unless  
            separated by buildings or other obstructions, under specified  


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                                                                     Page 4


          2)Prohibits the advertising display from advertising products,  
            goods, or services related to tobacco, firearms, or sexually  
            explicit material.

          3)Requires that the advertising displays authorized by this bill  
            must be approved by either Caltrans or the FHA prior to  


          1)Purpose.  According to the author, the purpose of this bill is  
            to allow the use of revenue-generating advertising displays  
            within a small area of downtown Los Angeles.  The author  
            believes this bill will spur the construction of needed hotels  
            in support of the Los Angeles Convention Center, the Sports  
            and Entertainment District, and the city's financial district.  
             This bill also empowers the City of Los Angeles to control  
            its urban streetscape and interface with the state highways  
            bisecting its urban core, according to the author.

          2)Where?  The area affected by this bill is described by the  
            author as a small area of downtown Los Angeles known as the  
            Avenue of the Angels.  It encompasses an area approximately  
            eight blocks long adjacent to State Route 110 and Interstate  
            10.  This area is a major entertainment and commercial area  
            encompassing the Los Angeles Convention Center, the Staples  
            Center, the Nokia Theatre, and a Marriott hotel.  The area  
            added by the recent Senate Floor amendments is a relatively  
            small triangular parcel about 120 feet on each side that  
            houses an apprenticeship facility.  That parcel previously  
            hosted an advertising display which has since been removed. 

            The freeways in this area are among the most heavily traveled  
            in the state, carrying about 20,000 cars per hour.

          3)Conflicting goals.  This bill creates a tension between the  
            desire of Los Angeles to raise funds from billboards to  
            support local development, and the responsibility of the state  
            to ensure driver safety through the administration of state  
            law and the federal OAC program.  From the perspective of the  


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                                                                     Page 5

            city, billboard revenue will be maximized with more signs that  
            attract the attention of drivers, whether through the number  
            of signs or their location, brightness, or attractive content.  
             From the perspective of the state, catchier signs distract  
            drivers, which will lead to more accidents and injury,  
            particularly along a heavily traveled freeway with numerous  
            merges, on-ramps, and off-ramps.

          4)Caltrans enforcement.  State law contains numerous billboard  
            restrictions intended to prevent compromising driver safety  
            and cluttering the freeway.  These include restrictions on the  
            sign size, location, and proximity to similar signs, lighting,  
            and content.  Many of these provisions are similar to those  
            contained in federal law, originally established in 1965  
            through the Lady Bird Johnson Highway Beautification Act.  In  
            1968, Caltrans entered into a contractual agreement with the  
            FHA to implement and enforce federal law.  The penalty for  
            failure to enforce federal law is severe:  loss of 10% of  
            federal highway funds, with the potential to apply the penalty  
            retroactively.  In the face of such penalties, it is not  
            surprising that Caltrans is doing a good job upholding its  
            obligations under the contract.  In 2012, the FHA reviewed  
            Caltrans' effectiveness and was quite complimentary,  
            specifically noting significant improvement since the prior  
            FHA review.  However, the review was not without suggestions  
            for improved enforcement.
          5)Green light.  In order to avoid misunderstandings, costly  
            litigation, and any potential for the state to lose federal  
            highway funds, this bill provides that the advertising  
            displays shall be preapproved by either Caltrans or the FHA.   
            This will provide some flexibility for Los Angeles while  
            ensuring that driver safety is not jeopardized by the  
          6)Local control, state responsibility.  This bill allows Los  
            Angeles to develop its own billboard regulations, while the  
            state retains the responsibility for enforcing the specific  
            provisions of the federal OAC program.  This gives Los Angeles  
            some flexibility, though that flexibility is constrained by  
            the federal OAC that restricts billboard spacing, location,  
            size, illumination, and content.  


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          7)Speech.  Some opponents raise concerns that the prohibition  
            against advertising firearms is unconstitutional.  The  
            language in this bill contains the same content restrictions  
            as several prior bills, including SB 31 (Padilla, 2013), which  
            passed both houses of the Legislature without a "no" vote on  
            either floor (see Related/Prior Legislation below).

          Related/Prior Legislation
          SB 31 (Padilla, Chapter 542, Statutes of 2013) authorized  
          advertising displays for products, goods, or services sold at  
          specified arenas.

          SB 694 (Correa, Chapter 545, Statutes of 2013) authorized  
          advertising displays at public transit terminals. 

          AB 2339 (Solorio, Chapter 493, Statutes of 2008) authorized  
          advertising displays at publicly owned sports arenas.

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No

          SUPPORT:   (Verified8/22/16)

          Greenland USA
          Hanjin International Corporation

          OPPOSITION:   (Verified8/22/16)

          California Association of Federal Firearms Licensees
          Coalition to Ban Billboard Blight
          Endangered Habitats League
          Firearms Policy Coalition
          Scenic San Diego

          ASSEMBLY FLOOR:  71-6, 5/28/15
          AYES:  Achadjian, Alejo, Travis Allen, Baker, Bonilla, Bonta,  


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                                                                     Page 7

            Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chiu,  
            Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman,  
            Frazier, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto,  
            Gipson, Gomez, Gonzalez, Gordon, Gray, Hadley, Roger  
            Hernández, Holden, Jones, Jones-Sawyer, Kim, Lackey, Levine,  
            Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty,  
            Medina, Melendez, Mullin, O'Donnell, Olsen, Patterson, Perea,  
            Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago,  
            Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber,  
            Wilk, Williams, Wood, Atkins
          NOES:  Bigelow, Chávez, Beth Gaines, Harper, Irwin, Obernolte
          NO VOTE RECORDED:  Bloom, Grove, Nazarian

          Prepared by:Randy Chinn / T. & H. / (916) 651-4121
          8/22/16 22:40:06

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