BILL ANALYSIS
SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: sb 336
SENATOR ALAN LOWENTHAL, CHAIRMAN AUTHOR: correa
VERSION: 2/25/09
Analysis by: Jennifer Gress FISCAL: yes
Hearing date: April 21, 2009
SUBJECT:
Outdoor Advertising Act (OAA): sports arenas
DESCRIPTION:
This bill allows certain types of sports arenas to advertise on
an outdoor sign food or beverages consumed on the premises of
the arena if those products were advertised prior to July 1,
2008.
ANALYSIS:
The OAA regulates the size, illumination, orientation, and
location of advertising displays adjacent to and within
specified distances of interstate or primary highways, and, with
some exceptions, specifically prohibits any advertising display
from being placed or maintained on property adjacent to a
section of highway that has been landscaped.
State law generally does not apply to advertising displays that
are deemed to be "on premise." On-premise displays include
those that "advertise the sale, lease, or exchange of real
property upon which the advertising display is placed" and those
that "advertise the business conducted or services rendered or
the goods produced or sold upon the property upon which the
advertising display is placed." The regulation of on-premise
displays is a local matter, not subject to state law except for
certain safety requirements.
In 2008, the Legislature passed AB 2339 (Solorio), Chapter 493,
which expanded the definition of "on premise" display to include
those advertising products, goods, or services sold by persons
on the premises of an arena that has a capacity of at least
5,000 seats and is located on public land, provided certain
SB 336 (CORREA) Page 2
conditions were met. The bill specifically prohibited the
advertising of products, goods, or services directed at an adult
population, including alcohol, tobacco, gambling, or sexually
explicit material.
This bill states that the prohibition against the advertising of
products, goods, or services directed at an adult population
established by AB 2339 does not apply to food or beverage
products consumed on the premises of an arena, if those products
were advertised prior to July 1, 2008.
COMMENTS:
1.Purpose . The purpose of the bill is to allow MillerCoors to
continue advertising Miller Lite on an advertising display on
the premises of the Honda Center, which it has been doing
pursuant to a marketing agreement with the arena since 2006.
According to the sponsor, the bill is intended to expand the
exception created by AB 2339 to advertise alcoholic beverage
products that (1) are sold and consumed on the premises of the
arena, (2) were advertised on the display as of July 1, 2008,
which was prior to the enactment of AB 2339, and (3) are
subject to an integrated marketing plan.
The sponsor points out that the bill does not increase the
number of signs permitted under
AB 2339 and that the City of Anaheim shares a percentage
of the revenue generated by the advertising on the premises.
2.Advertising to an adult population . The majority of bills
seeking an exemption from the OAA include a prohibition
against advertising to an adult population, with specific
mention of alcohol. This bill goes against the long-standing
practice of this committee to prohibit such advertising.
3.Sunset . The marketing agreement between MillerCoors and the
Honda Center will run through mid-2010. The sponsor notes,
however, that MillerCoors and the Honda Center have
contemplated an extended relationship. The committee may wish
to consider an amendment to establish a sunset of June 30,
2010 to permit the advertising of alcohol to continue as
provided under the current marketing agreement.
SB 336 (CORREA) Page 3
POSITIONS: (Communicated to the Committee before noon on
Wednesday,
April 15, 2009)
SUPPORT: MillerCoors (sponsor)
OPPOSED: None received.