BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  SB 1470|
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                                 THIRD READING


          Bill No:  SB 1470
          Author:   Leno (D)
          Amended:  5/11/10
          Vote:     21

           
           SENATE TRANSPORTATION & HOUSING COMMITTEE  :  5-3, 4/15/10
          AYES:  Lowenthal, DeSaulnier, Kehoe, Pavley, Simitian
          NOES:  Huff, Ashburn, Harman
          NO VOTE RECORDED:  Oropeza

           SENATE JUDICIARY COMMITTEE  :  3-1, 4/20/10
          AYES:  Corbett, Hancock, Leno
          NOES:  Harman
          NO VOTE RECORDED:  Walters

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    Outdoor advertising

           SOURCE  :     Los Angeles City Attorneys Office


           DIGEST  :    This bill makes more precise the definition of  
          lawfully erected signs and provides that a civil action may  
          be taken against the owner of an unlawfully erected sign  
          for the disgorgement of revenues and for civil penalties  
          not to exceed $2,500 for each day a sign is not lawfully  
          erected or that is in violation of any state law, local  
          ordinance, or local building permit requirement.

           ANALYSIS  :    The Outdoor Advertising Act (OAA) regulates  
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          the placement of advertising displays adjacent to and  
          within 660 feet of interstate or primary highways.  The OAA  
          regulates the size, illumination, orientation, and location  
          of advertising displays 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.

          The OAA defines lawfully erected signs as advertising  
          displays that were erected in compliance with state laws  
          and local ordinances in effect at the time of their  
          erection or that were not erected in compliance but have  
          subsequently been modified to become so.  Signs that are  
          not lawfully erected include those erected in a way that  
          did not meet the laws, ordinances, or regulations governing  
          advertising displays at the time the display was erected or  
          signs whose "use" was subsequently altered in a way that  
          causes the display not to meet those laws currently.

          Advertising displays that were not lawfully erected are  
          deemed to be lawful if a government entity did not provide  
          written notice to the sign owner that the display was  
          unlawful within five years of the display being erected.   
          This provision of law is known as a "rebuttable  
          presumption."  Under existing law, an entity ordering the  
          removal of a sign that was, at one time, unlawfully erected  
          but under the rebuttable presumption is considered lawful,  
          is required to pay the sign owner just compensation for the  
          removal of the display.   

          As a general principle, entities that require the removal  
          of any advertising display anywhere in the state (not just  
          within 660 feet of the highway) that was lawfully erected,  
          including those deemed lawful under the rebuttable  
          presumption, are required to pay the sign owner just  
          compensation to do so.  This is true even if a display is  
          nonconforming.  Nonconforming signs, as opposed to unlawful  
          signs, are those that were erected in conformance with the  
          laws or regulations in effect at the time the display was  
          erected but that do not meet the laws or regulations  
          currently in place because of a change in law, ordinance,  
          or regulation.  

          Upon the erection or alteration of a sign, an owner must  







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          obtain a building permit.  If a display does not have a  
          valid, unrevoked, or unexpired permit, the following  
          penalties shall be assessed:

          1.$100 for an advertising display that is placed in a  
            location permitted by law.

          2.$10,000 for an advertising display that is placed in a  
            location not permitted by law or local ordinances and is  
            not removed within 30 days of written notice from the  
            entity with jurisdiction over the property upon which the  
            display is located, plus $100 for each day the  
            advertising display remains in place after the 30 days  
            lapse.

          Existing law also provides for the disgorgement of gross  
          revenues that are received by or owed to a sign owner for  
          an unauthorized advertising display. 

          This bill:

          1.Adds precision to the definition of "lawfully erected" in  
            the following ways: 

             A.   Specifying that changes to a sign's "height,"  
               "orientation," "size," and "technology" may cause a  
               sign to become unlawful.

             B.   Specifying that a sign that is brought into  
               compliance with existing laws must be "maintained  
               in" compliance in order to be deemed lawfully  
               erected.

             C.   Specifying that a sign must meet its building  
               permit requirements in order to be considered  
               lawfully erected.

          2.Permits the Attorney General, any district attorney,  
            county counsel, city attorney, or city prosecutor to  
            bring a civil action against an owner whose sign is  
            unlawfully erected or in violation of any state law,  
            local ordinance or local building permit requirement for  
            the disgorgement of revenues the sign owner collected  
            while the sign was either not lawfully erected or in  







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            violation of any state law, local ordinance or local  
            building permit requirement, even if the sign was  
            subsequently brought into compliance, and makes the sign  
            owner liable for civil penalties not to exceed $2,500 for  
            each violation of any state law, local ordinance, or  
            building permit requirement for each day the sign is in  
            violation. 

          3.Identifies how the monies collected through successful  
            enforcement actions shall be distributed.

          4.Specifies that the penalties established by the bill  
            shall be in addition to any criminal, civil, or other  
            legal remedy established by law and provides that an  
            agency bringing an enforcement action against a sign  
            owner may request the court to award the agency its  
            enforcement costs.
           
          FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  5/24/10)

          Los Angeles City Attorney's Office (source)
          American Planning Association, California Chapter
          City and County of San Francisco
          Coalition to Ban Billboard Blight
          Consumer Federation of California
          League of California Cities
          San Francisco Beautiful
          Scenic America

           OPPOSITION  :    (Verified  5/24/10)

          CBS Outdoor
          Regency Outdoor Advertising

           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          the proliferation of illegal outdoor advertising where sign  
          owners have erected new signs or modified existing signs  
          without the proper permit and in violation of laws in  
          effect at the time has gone unchecked for too long.   
          California cities have limited compliance and inspection  
          resources and many, including the City of Los Angeles and  







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          the City of San Francisco, utilize the citizen complaint  
          process for code enforcement.  The City of San Francisco  
          has only three inspectors searching the city for sign  
          compliance and the City of Los Angeles has six sign  
          inspectors for a city that contains 468 square miles and  
          10,000 outdoor advertising displays.  

          The Los Angeles City Attorney's Office, the sponsor of this  
          bill, asserts that current law, by requiring payment of  
          just compensation if a government entity requires removal  
          of a sign, protects sign owners who did not erect their  
          signs in accordance with state and local laws in effect at  
          the time of their erection or who subsequently modified  
          their signs in violation of their building permit.  

          Furthermore, because existing law allows signs that are out  
          of compliance with permit requirements to be brought back  
          into compliance, existing law encourages sign companies to  
          ignore existing codes to maximize profit knowing that the  
          best a governmental entity can do is force them to bring  
          the sign into compliance with the code.  

          The author's office argues that there is a need to ensure  
          that laws protecting the visual landscape can be enforced  
          in a manner that will dissuade sign companies from failing  
          to comply with permitting requirements that exist to  
          protect the public from unsafe and unfair construction.  

          By narrowing the definition of "lawfully erected" and  
          establishing civil remedies, this bill provides a stronger  
          disincentive from erecting or altering a sign in a manner  
          that causes it be illegal.  In doing so, this bill will  
          help to protect the visual integrity of communities.

           ARGUMENTS IN OPPOSITION  :    CBS Outdoor raises concerns  
          about the bill's revision to the definition of lawfully  
          erected stating, "Most of the current display owners  
          obtained ownership of their displays through acquisition.   
          It is typical for a display to have transferred ownership  
          several times since its erection and historic documentation  
          of the display is sometimes incomplete due to multiple  
          acquisitions and/or transfers.  Also, many displays were  
          erected several decades ago, during a time when local  
          municipalities did not maintain accurate and complete  







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          permit records.  It is difficult to see what interest could  
          possible justify the stripping of (the right to just  
          compensation) simply because a decades old building permit  
          has been inadvertently lost, damaged, and/or destroyed, in  
          most cases, by someone other than the current display  
          owner.."  
           

          JJA:do  5/24/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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