BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2559


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          Date of Hearing:   April 12, 2016


           ASSEMBLY COMMITTEE ON ARTS, ENTERTAINMENT, SPORTS, TOURISM, AND  
                                   INTERNET MEDIA


                                  Kansen Chu, Chair


          AB 2559  
          (Frazier) - As Amended March 18, 2016


          SUBJECT:  Tourist-oriented directional signs:  visitor centers.


          SUMMARY:  This bill would require Department of Transportation  
          (Caltrans) to authorize tourist-oriented directional signs  
          (TODS) for any visitor center that is located within 2 miles  
          from the highway intersection, as specified.


          Specifically, this bill declares that the department shall  
          authorize under this chapter tourist-oriented directional signs  
          for any visitor's center seeking a sign if the visitor center is  
          located within two miles from the highway intersection and that  
          authorization otherwise meets the requirements of this chapter.


          EXISTING LAW:  


          1)Provides that Caltrans is charged with ownership and operation  
            of the state highway system. 



          2)Authorizes Caltrans to post various types of highway signs.








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          3)Establishes a TODS program within Caltrans, as specified, with  
            a principle function of providing local tourist information.


          FISCAL EFFECT:  Unknown


          COMMENTS:  


          1)Author's statement of need for legislation: better visibility  
            for tourist attractions. According to the author's office, "In  
            1994, the Tourist-Oriented Directional Sign (TODS) Program was  
            enacted. TODS authorizes the Department of Transportation to  
            provide signage on freeway intersections that direct motorists  
            to various attractions, including but not limited to,  
            wineries, gift shops, restaurants, service stations, etc. The  
            original intent of TODS was to increase the visibility of  
            rural businesses and tourist attractions. Many motorists and  
            vacationers may not be familiar with attractions and  
            destinations in a given area. 



            "Studies show that 209.8 million leisure trips were taken in  
            California in 2015. Direct travel spending from those trips  
            totaled $120.8 billion, a 2.8% jump from 2014. This travel  
            spending directly supported 1,058,000 jobs with earnings of  
            $40.1 billion. Additionally, travel spending in 2015 generated  
            $4.5 billion in local tax revenue and $5.2 billion in state  
            tax revenue. Forecasts for 2016 travel indicates a total of  
            214.6 million leisure trips, an increase of 2.3% or 4.8  
            million trips. Forecasts also show a 2.7% increase in travel  
            spending, totaling $124.1 billion.










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            AB 2559 modifies the requirements for the location of  
            tourist-based directional signs to visitor's centers within  
            two miles from the highway rather than the current  mile  
            distance.  Expanding the TODS program to include additional  
            visitor centers that do not have current directional signs  
            will increase motorists' awareness and accessibility to more  
            of California's many attractions and destinations and will in  
            turn generate further economic benefits to the state."





          2)Background: 



             a)   Proposal would alter existing regulation on TODS  
               distance from highways. This bill would specify that, "The  
               department shall authorize under this chapter  
               tourist-oriented directional signs for any visitor's center  
               seeking a sign if the visitor center is located within two  
               miles from the highway intersection and that authorization  
               otherwise meets the requirements of this chapter." This new  
               language to the code would alter existing Caltrans practice  
               as contained in the California Manual on Uniform Traffic  
               Control Devices (California MUTCD), which currently  
               declares with regard to Tourist Information signage, that  
               "Facilities should be within 0.5 miles of the highway..."  
               (California MUTCD, Chapter 21, part 2I, p. 566).
             b)   How the California TODS program operates. According to  
               information contained on the Caltrans website, the  
               following describes the TODS program:


               i)     Tourist-Oriented Directional Signs (TODS) Program is  








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                 a California sign program that was authorized by the  
                 California State Legislature through the passage of State  
                 Assembly Bill 2339 in 1994. The purpose of the program is  
                 to guide "out-of-town" travelers to California's tourist  
                 attractions. The Bill requires that Caltrans establish  
                 and charge a fee to place and maintain these generic  
                 TODS. Businesses such as wineries, gift shops,  
                 restaurants, arts and crafts shops, etc. can qualify if  
                 the eligibility requirements are met.



                  (1)       Signs are NOT allowed:
                  (2)       On freeways and expressways


                  (3)       On congested highways


                  (4)       Within any city limits


                  (5)       Within areas of population exceeding 50,000


                  (6)       If the business is adjacent to and visible  
                    from the highway


                  (7)       If business has on-premise or off-premise  
                    signing





               ii)    The cost for one panel, one direction is $400.00 for  
                 the initial permitee and Caltrans Maintenance maintains  
                 the sign panel(s), broken down as follows: 








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                  (1)       $70.00 - Non-refundable  
                    eligibility/application fee
                  (2)       $30.00 - Annual Maintenance fee per panel per  
                    direction


                  (3)       $300.00 - Installation/Processing fee per  
                    panel per direction





          3)Prior related legislation. AB 2339 (O'Connell), Chapter 572,  
            Legislation of 1994, established the California TODS program  
            in order to increase the visibility of rural businesses and  
            tourist attractions, particularly those businesses not  
            immediately visible from a state highway. According to the  
            Assembly Transportation Committee analysis, "The rationale  
            (for the bill) is that many motorists on vacation trips do not  
            necessarily know what attractions and destinations exist in a  
            given area. TODS are characterized by sponsors as being more  
            effective and less expensive than other means of advertising,  
            such as brochures, visitor centers, etc." The same analysis  
            notes that similar TODS programs have been implemented in a  
            number of states and are sanctioned by the federal government.



          4)Double-referral: Should this bill pass out of this committee,  
            it will be re-referred to the Assembly Committee on  
            Transportation.


          REGISTERED SUPPORT / OPPOSITION:












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          Support


          California Travel Association




          Opposition


          There is no opposition on file.




          Analysis Prepared by:Dana Mitchell / A.,E.,S.,T., & I.M. / (916)  
          319-3450