BILL ANALYSIS                                                                                                                                                                                                    �






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: AB 607
          SENATOR MARK DESAULNIER, CHAIRMAN              AUTHOR:  Brownley
                                                         VERSION: 4/13/11
          Analysis by:  Art Bauer                        FISCAL:  no
          Hearing date:  June 7, 2011



          SUBJECT:

          Illuminated signs on public transit buses

          DESCRIPTION:

          This bill authorizes the City of Santa Monica's bus transit 
          system to establish a demonstration program to equip the sides 
          of its buses with electronic signs displaying advertising. 

          ANALYSIS:

          Existing law:

             1.   Authorizes buses, operated by a publicly-owned transit 
               system on regularly scheduled service, to be equipped with 
               illuminated head signs that include destination, 
               route-number, run-number, or a combination.  These signs 
               may emit any light color, other than the color red, from 
               forward-facing signs consistent with the following 
               conditions: 

                       Signs must emit diffused non-glaring light.  

                       The area of the signs may be no greater than 720 
                  square inches.

                       Signs shall be installed in a position that does 
                  not interfere with the visibility or effectiveness of a 
                  required lamp, reflector, or other device on the bus. 

                       Signs shall display information directly related 
                  to public transit service, including, but not limited 
                  to, route number, destination description, and run 
                  number.  

             1.   Authorizes dynamic messaging on all illuminated signs if 
               the practice adheres to the following requirements:  




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                         "Paging," meaning information presented for a 
                   period of time and then disappearing all at once before 
                   new information is presented, is permitted if the 
                   display time of each message is between 2.7 and 10 
                   seconds.  Blanking time between each message is must be 
                   between 0.5 and 25 seconds. 

                         "Streaming," meaning information moving 
                   continuously and smoothly across the display, is 
                   permitted if the character movement time, from one end 
                   of the display to the other, is at least 2.7 seconds, 
                   and the movement time of the entire message is not more 
                   than 10 seconds.  

           This bill:
           
             1.   Authorizes the City of Santa Monica's bus transit system 
               to establish a pilot program allowing the city's transit 
               buses to be equipped with illuminated signs for display 
               advertising on the sides of the buses.

             2.   Establishes conditions governing the use of illuminated 
               display advertising signs including:

                     Signs shall emit diffused non-glaring light.

                     Signs shall not be greater than 4,464 square inches 
                 in area.

                     Signs shall not be installed in a position that 
                 interferes with the visibility of required lamps, 
                 reflectors, or other devices.

                     Signs shall not be forward or backward facing (i.e., 
                 not on the front or rear of the bus).

                     Light emitting diodes for illumination may include 
                 red provided the colored formed by the mixing of light 
                 from the diodes in the advertising is not red. 

                     Signs shall be static when the buses are operating 
                 on state freeways.

                     Existing standards for paging and streaming 
                 (described above) shall apply to the display of 




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                 advertising signs.

             1.   Requires the City of Santa Monica transit staff and the 
               city's police department to develop collaboratively a 
               report examining the safety of the display advertising 
               signs to the Legislature and the California Highway Patrol 
               by July 1, 2016.

             2.   Sunsets on January 1, 2017.
               
          COMMENTS:

              1.   Purpose  .  According to the author, this bill will allow 
               for a pilot project that will examine the impacts of 
               digital display advertising on the sides of public transit 
               buses in Santa Monica and assist in determining whether it 
               is appropriate to extend the use of illuminated advertising 
               signs to other transit system across the state. 

              2.   Background  .  Public transit agencies have long used 
               static signs placed on the sides of buses to display 
               advertising.  Transit agencies receive revenue from firms 
               that use the signs for advertising.  A project sponsored by 
               the Transit Cooperative Research Program, a joint venture 
               of the Federal Transit Administration and the 
               Transportation Research Board, identified the emerging 
               media of digital bus advertising as a revenue stream for 
               transit agencies.  The Chicago Transit Authority began a 
               digital advertising on buses in 2008 and reported a 400 
               percent increase in revenues from static poster display 
               advertising. 

               City of Santa Monica staff reports that the current static 
               advertising generates about $4.1 million annually, but 
               expects digital signs to generate about $8 million 
               annually, a 100 percent increase in revenue.  This added 
               revenue can be used to assist with the operating cost of 
               the transit service. 

               The digital signs are ultra-thin, light weight, light 
               emitting diode (LED) screens that can easily be mounted on 
               the sides of buses.  Digital advertising allows for 
               customize advertising, including a rate structure that 
               varies by the time of day, because the advertising being 
               displayed can be managed remotely.  It is, therefore, 
               possible to render the advertising static when the buses 




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               are operating on freeways. 

              3.   Potential for driver distraction  .  Although staff is 
               unaware of reports of drivers being distracted by digital 
               display advertising on buses, the study called for in the 
               bill may provide information to the Legislature should 
               distractions be associated with accidents.  The provision 
               in the bill requiring that the digital signs remain static 
               when buses operate on state freeways is recognition that 
               the digital signs may be a potential for distraction. 

              4.   Suggested technical amendment  .  On page 4, line 24, the 
               bill refers to "state" freeways, which existing law does 
               not define.  The committee may wish to consider striking 
               "state" and adding after freeway, "as defined in Section 
               257 of the Streets and Highways Code."
               
          Assembly Votes:
               Floor:    72-1
               Trans:    14-0

          POSITIONS:  (Communicated to the Committee before noon on 
          Wednesday,
                     June 1, 2011)

               SUPPORT:  City of Santa Monica (sponsor)

          
               OPPOSED:  None received.