Senate BillNo. 1397


Introduced by Senator Huff

February 19, 2016


An act to add Article 4.6 (commencing with Section 172) to Chapter 1 of Division 1 of the Streets and Highways Code, relating to transportation.

LEGISLATIVE COUNSEL’S DIGEST

SB 1397, as introduced, Huff. Highway safety and information program.

Existing law, the Outdoor Advertising Act, provides for the regulation by the Department of Transportation of advertising displays, as defined, within view of public highways.

This bill would enact the Highway Safety and Information Act. The bill would authorize the department, subject to federal approval, to enter into an agreement pursuant to a best value procurement and competitive process for a project with a contractor to construct, upgrade or reconstruct, and operate a network of changeable message signs within the rights-of-way of the state highway system, as specified. The bill would require the person with whom the department has entered into the agreement to contract and receive funds for the placement of advertisements, meeting certain standards established by the department, on the changeable message signs when they are not being used by the department. The bill would require revenues derived from the project to be allocated between the department and the person with whom the department has entered into the agreement and would require those revenues received by the department to be deposited in the State Highway Account, subject to appropriation by the Legislature. The bill would authorize the department to adopt guidelines and procedures relative to advertising on changeable message signs. The bill would require the department to submit a specified report to the fiscal and policy committees of the Legislature having jurisdiction over transportation matters.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Article 4.6 (commencing with Section 172) is
2added to Chapter 1 of Division 1 of the Streets and Highways
3Code
, to read:

4 

5Article 4.6.  Highway Safety and Information Act
6

 

7

172.  

This article shall be known, and may be cited, as the
8Highway Safety and Information Act.

9

172.2.  

The Legislature finds and declares all of the following:

10(a) Pursuant to Chapter 27 of the Statutes of 2014, the
11department has conducted a feasibility study and revenue analysis
12on the use of advertising on changeable message signs on the state
13highway system and determined the feasibility of implementing a
14project and potential revenue benefits.

15(b) The department’s current network of changeable message
16signs has proven to be an effective way to inform road users of
17critical safety and transportation-related conditions and of other
18important information and to protect the safe and efficient
19utilization of the highways.

20(c) Changeable message signs have played a critical role in the
21success of California’s Emergency Alert System, initiated by
22Chapter 517 of the Statutes of 2002. The current network of
23changeable message signs operated by the department, in
24coordination with the Department of the California Highway Patrol
25(CHP) and the Office of Traffic Safety, has helped keep our
26children and families safer by bringing public resources and private
27citizens together to help save lives during emergencies.

28(d) Communicating timely information regarding laws, services,
29and events, public service and public health and safety messages,
30and emergency notifications is an essential public purpose that
31advances the general health, welfare, and safety of the citizens of
32California and persons who visit and travel through the state.

P3    1(e) California makes available on its Internet Web site
2information regarding laws, services, and events, communicates
3public service and public health and safety messages, and transmits
4emergency notifications to users of computers, smartphones, and
5similar online and wireless devices.

6(f) Recent advances in technology have made it possible to
7create a more reliable, effective, and comprehensive network of
8changeable message signs that combine text with graphics in order
9to rapidly and clearly communicate important information to the
10users of California’s highways more safely and effectively than
11the current network of changeable message signs. This advanced
12technology would increase the efficacy and reliability of the
13network of changeable message signs, thereby enhancing the safety
14and travel experience of the people of California and would
15function as an extension and improvement of the existing California
16public information and emergency messaging communication
17efforts.

18(g) Revenues to the state generated by an upgraded changeable
19message sign network would provide additional funding for
20transportation and safety initiatives, such as additional highway
21maintenance and repair, in return for the right to place
22advertisements on the changeable message signs in a manner that
23is consistent with, and supports, the network’s safety and public
24communication functions.

25(h) The network of upgraded changeable message signs shall
26be located and upgraded in accordance with department guidelines
27for orientation toward motorists on the traveled way and shall have
28minimal impact outside of those rights-of-way.

29(i) The authority to use changeable message signs for
30commercial advertising shall require that the advertising and
31department messaging, when displayed in combination, are
32determined to be safe and do not create an unsafe distraction to
33 motorists, and is subject to prior authorization under federal law.

34

172.4.  

For purposes of this article, the following terms mean
35the following:

36(a) “Agreement” means a legally enforceable agreement for the
37project to install and operate changeable message signs or the
38network of changeable message signs, including, but not limited
39to, a license, lease, highway improvement agreement, easement,
40encroachment permit, or operation and maintenance agreement.

P4    1(b) “Best value” means a value determined by objective criteria
2that may include, but are not limited to, revenues to the state,
3features, experience, functions, life cycle costs, price, the capability
4to develop and incorporate advanced sign technologies, and other
5criteria deemed appropriate by the department.

6(c) “Changeable message sign” means a department-owned or
7controlled sign or official sign that is designed to display various
8messages that provide information to the public, such as traffic
9information or advertising, by mechanical or electronic means
10centrally controlled through a network, including, but not limited
11to, digital and light emitting diode (LED) technologies.

12(d) “Demonstration phase” means the initial phase of the project
13whereby the safety and operational and fiscal viability of placement
14of advertising on changeable message signs in exchange for
15revenue to the state and an upgraded changeable message sign
16network are demonstrated.

17(e) “Network” means the integrated network of enhanced
18changeable message signs. The network shall include upgraded
19changeable message signs at existing locations and new changeable
20message signs at additional locations as determined by the
21department.

22(f) “Person” means an individual, partnership, limited
23partnership, trust, estate, association, corporation, limited liability
24company, or other entity.

25(g) “Project” means to study, plan, design, construct, reconstruct,
26develop, finance, maintain, rebuild, improve, repair, lease, operate,
27or any combination of these, a state-of-the-art, full-color network
28of changeable message signs within the rights-of-way of the state
29highway system, or within the right-of-way of a major arterial that
30is included within an integrated corridor management system.

31

172.6.  

(a) Notwithstanding any other law, and subject to
32federal approval authorizing the department to do so, the
33department may enter into an agreement with one person to conduct
34a single project, which shall include a demonstration phase, in a
35manner that best effectuates the purposes of this article. The
36department shall conduct a best value procurement and negotiate
37an initial agreement to become effective upon obtaining any
38necessary federal authorization. The department may provide
39services for which it is reimbursed with respect to preliminary
40design, inspection, and oversight of the project.

P5    1(b) The agreement described in subdivision (a) shall do all of
2the following:

3(1) Provide for the construction, upgrade or reconstruction, and
4operation of changeable message signs selected for the project.
5The department shall be responsible for the maintenance of the
6selected changeable message signs.

7(2) Provide for complete reversion of any ownership interest in
8any of the privately constructed, upgraded or reconstructed, and
9operated changeable message signs to the department at the
10expiration of the agreement at no charge to the department and
11free and clear of any liens or encumbrances.

12(3) Provide that all department emergency notifications shall
13have priority over other messaging, including advertising.

14(4) Provide that the department, in consultation with the
15Department of the California Highway Patrol, shall retain the
16ability to make a determination on the safety of the changeable
17message signs, and may take those actions deemed necessary to
18protect public safety.

19(5) Require the person with whom the agreement is made to
20indemnify, defend, and hold harmless the department for any
21damage, injury claim, or incident in connection with the
22construction, upgrade or reconstruction, or operation of changeable
23message signs performed by or under the control and supervision
24of that person, or the advertising on changeable message signs,
25excluding any advertising approved in advance or provided by the
26department, including, but not limited to, personal injury, wrongful
27death, defamation, and property damage.

28(6) Provide that the department shall conduct a demonstration
29phase of the project as a condition precedent to the full
30implementation of the agreement described in this section. The
31demonstration phase shall involve the construction, upgrade or
32 reconstruction, and operation of changeable message signs at
33current and planned locations equal to not less than 15 percent of
34the number of existing and planned changeable message signs at
35initiation of the project and shall be conducted on routes and
36highway corridors at sign locations selected by the department.
37The demonstration phase shall begin immediately following federal
38approval as provided in subdivision (a), and shall last until full
39implementation is authorized, and if full implementation is not
40authorized, then for a period of time sufficient to allow the person
P6    1contracting with the department to recover its capital and related
2costs for the project.

3(7) (A) Provide that the department shall retain an independent
4consultant to perform an evaluation of the results of the
5demonstration phase.

6(B) The department shall review the results of the demonstration
7phase and the evaluation from the independent consultant and
8determine, in its discretion, whether the placement of commercial
9advertising with all department messaging creates an unsafe
10distraction to motorists, and shall consider any other issues of
11concern that are identified in the demonstration phase.

12(C) The department may require changes to the agreement to
13address identified issues of concern and to allow for full
14implementation of the agreement. If, prior to full implementation,
15the agreement is amended or otherwise modified in a way that
16materially impacts a changeable message sign’s ability to generate
17revenues, the person conducting the project shall be entitled to
18recover from the department any unreimbursed capital or operating
19expenses.

20(8) Provide for the person with whom the agreement is made
21to contract and receive funds for the placement of commercial
22advertisements on changeable message signs, except during times
23and to the extent the signs are in use by the department, and to
24share revenues generated in connection with the use of those signs
25for commercial advertising in furtherance of the public interest.

26(c) The network of changeable message signs shall be deemed
27to be part of the state highway system for purposes of identification
28and enforcement of traffic laws or for other official purposes, and
29the purposes of Division 3.6 (commencing with Section 810) of
30Title 1 of the Government Code.

31(d) Revenues from changeable message signs shall be allocated
32between the person with whom the agreement is made and the
33department in accordance with the agreement as provided in
34paragraph (8) of subdivision (b). Revenues derived from the project
35and received by the department, and any other revenue generated
36from advertising on changeable message signs owned by the
37department and received by the department, shall be deposited in
38the State Highway Account in the State Transportation Fund. This
39revenue shall not be subject to the transfer under Section 183.1 or
40any successor to that section. Revenues deposited under this section
P7    1shall be retained in the State Highway Account, subject to
2appropriation by the Legislature, consistent with the provisions of
3any federal authorization.

4(e) The changeable message signs shall meet the design,
5construction, and operating requirements in the department’s
6standards and guidelines, including, but not limited to, controls,
7such as state-of-the-art sensors that control the brightness of the
8display based on the surrounding ambient light levels and other
9technologies muting adjacent glare, that focus the zone of vision
10toward motorists on the traveled way and prevent neighborhood
11impacts in the vicinity of the changeable message signs.

12(f) The department shall retain the ultimate right to determine
13whether the location of an existing changeable message sign or
14proposed location for the placement of a new changeable message
15sign has or will negatively impact a residential area or community.
16If the department determines that the location of a changeable
17message sign has or will have a negative impact on a residential
18area or community, the department may, in its discretion, impose
19additional requirements on its lighting or placement, require a
20different placement, not allow its placement, or require its removal.

21

172.8.  

Advertising on changeable message signs shall be in
22the form and under those conditions as may be determined by the
23department and as may be set forth in standards, guidelines, and
24procedures adopted by the department. The advertising shall not
25compromise safety or the department’s safety communication
26functions. The upgraded network shall enhance public messaging,
27including, but not limited to, safety campaigns, emergency
28notifications, travel times, and traveler information and the function
29of the network of changeable message signs. All changeable
30message signs subject to this article shall be exempt from Section
315408 of the Business and Professions Code and from any and all
32regulations promulgated in connection with Section 5408 of the
33Business and Professions Code.

34

173.  

The department shall not enter into an agreement with
35any person who would cause or permit any changeable message
36sign to display or advertise alcohol, tobacco, firearms, sexually
37explicit material, or any illegal activity. The department shall adopt
38policies and guidelines in connection with the content and
39formatting of the advertising.

P8    1

173.2.  

The department may use the changeable message signs
2for emergency messages, as needed, and shall have dedicated time
3to use the changeable message signs for traveler information and
4motorist safety and awareness campaigns and any other public
5service messaging desired by the state, without providing
6compensation to the person with whom it enters into an agreement
7pursuant to this article.

8

173.4.  

(a) When choosing the person with whom to enter into
9an agreement pursuant to Section 172.6 to effectuate the purposes
10of this article, the department shall select, pursuant to a competitive
11process, the person that the department determines will provide
12the best value.

13(b) The department may retain a consultant or adviser to assist
14in preparing the best value criteria, selection of the person, and
15oversight of the project. The consultant or adviser shall not bid on
16the project or, before one year following award of a contract, work
17as an officer or employee of, or consultant or adviser to, any person
18or persons seeking to bid on the project.

19

173.6.  

No later than two years after the implementation of the
20project, the department shall submit a report to the fiscal and policy
21committees of the Legislature with jurisdiction over transportation
22matters. The report shall include, but not be limited to, all of the
23following:

24(a) The status of implementation of the agreement, including
25the number of signs placed and the locations of the signs placed.

26(b) The amount of revenue received, cost savings to the
27department, and the costs incurred by the department with respect
28to the project, including costs incurred prior to the time the
29department entered into an agreement.

30(c) An assessment of the effect the project has had on public
31safety, emergency notification, traveler information, and motorist
32safety and awareness campaigns.

33(d) A description of the types of advertising content displayed
34on the signs.

35

173.8.  

The provisions of this article are severable. If any
36provision of this article or its application is held invalid, that
37invalidity shall not affect other provisions or applications that can
38be given effect without the invalid provision or application.



O

    99