BILL ANALYSIS Ó
SB 1199
Page 1
Date of Hearing: August 10, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
SB 1199
(Hall) - As Amended April 26, 2016
-----------------------------------------------------------------
|Policy |Governmental Organization |Vote:|19 - 0 |
|Committee: | | | |
| | | | |
| | | | |
|-------------+-------------------------------+-----+-------------|
| |Local Government | |9 - 0 |
| | | | |
| | | | |
-----------------------------------------------------------------
Urgency: No State Mandated Local Program: YesReimbursable:
No
SUMMARY:
This bill authorizes two existing advertising displays along
Interstate 405 in the City of Inglewood to be considered
"on-premise" displays, until January 1, 2023, and therefore
exempt from the state Outdoor Advertising Act (OAA). This
authorization is valid as long as it does not cause a reduction
of federal transportation funds.
SB 1199
Page 2
FISCAL EFFECT:
Possible loss of up to $350 million in federal transportation
funds as a result of a violation of provisions of the federal
Highway Beautification Act (HBA) of 1965 (See Comment #5).
COMMENTS:
1)The OAA. The state OAA regulates the placement of advertising
displays and signs along interstate or primary highways,
landscaped freeways and similar specified highways. The OAA,
along with related federal provisions, is intended, among
other things, to promote highway beautification and provide a
consistent framework for the regulation of advertising
displays along freeways and highways. The OAA sets standards
for the advertising structures, including their size,
identification and location, and requires compliance with
permit application procedures and conditions administered by
Caltrans.
2)Redevelopment Agencies (RDAs) and the OAA. Until RDAs were
dissolved, existing law allowed RDAs to permit advertising
signs for 10 years, after which they were regulated by
Caltrans and the OAA, unless the RDA and Caltrans agreed to an
extension for good cause. Legislation created the RDA
exemption to the OAA to allow businesses in these blighted
areas to advertise as an additional tool to help struggling
businesses in the project area become more successful.
SB 684 (Hill), Chapter 544, Statutes of 2013, sought to
address the question about billboards that advertise
businesses in RDA project areas in the era of successor
agencies. SB 684 permitted existing advertising displays that
advertised businesses and activities within the boundary
SB 1199
Page 3
limits of an RDA project to remain considered "on-premise
displays" (e.g., not subject to the OAA) until January 1,
2023. The city or county could then apply to Caltrans for an
extension, showing "good cause" beginning on January 1, 2022.
3)Federal Highway Beautification Act of 1965: The HBA was
created to protect the public investment, promote the safety
and recreational value of public travel, and to preserve the
natural beauty of highways in the nation. The HBA specifies
that states have the responsibility to enforce provisions
regarding the placement and maintenance of outdoor advertising
signs, displays and devices along the Interstate and National
Highway System. The State of California enforces the
provisions of federal law through a compact that was developed
between the state and the federal government in 1967. Federal
law also includes a penalty for states that violate the HBA by
reducing all federal highway transportation funds to the state
by 10%.
4)Purpose. SB 1199 expands the RDA exemption for two advertising
displays located within the boundary limits of the City of
Inglewood at two locations on Interstate 405. According to the
author, SB 1199 will help ensure that the City of Inglewood is
able to fully utilize their outdoor advertising displays to
promote businesses located within the area.
5)Staff Comments. This bill, in its current form, poses
unnecessary financial risk to the state of California.
Expanding the two specified advertising displays in Inglewood
may violate the HBA because of their size, content, and
location. SB 1199 contains provisions designed to mitigate
this risk, but these provisions may be inadequate. The bill
currently allows this advertising exemption to remain in place
insofar that it does not result in a reduction of federal aid
SB 1199
Page 4
highway funds. However, the federal government may still
withhold funds while the legal process of removing the
advertisement unfolds.
While it is unlikely that the federal government would
withhold $350 million in funding over just two advertising
displays, SB 1199 can be further strengthened to prevent such
a scenario altogether. For instance, the bill could be amended
to make the provisions of this bill contingent upon written
confirmation from the Federal Highway Administration that the
signs in question do not reduce federal funds.
Analysis Prepared by:Luke Reidenbach / APPR. / (916)
319-2081