BILL ANALYSIS �
AB 607
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 607 (Brownley)
As Amended June 20, 2011
Majority vote
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|ASSEMBLY: |72-1 |(May 5, 2011) |SENATE: |33-3 |(July 14, |
| | | | | |2011) |
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Original Committee Reference: TRANS.
SUMMARY : Establishes a pilot program for the City of Santa
Monica (City) to implement a pilot program allowing their
transit buses to advertise on their side-mounted illuminated
signs.
The Senate amendments :
1)Clarify the definition of highway as codified in the Streets
and Highways Code.
2)Restrict the number of buses to be mounted with illuminated
signs to 25 for the first two years of the pilot program and
30 buses thereafter.
EXISTING LAW :
1)Authorizes buses, operated by a publicly-owned transit system
on regularly scheduled service to be equipped with illuminated
destination signs, that include destination signs,
route-number signs, run-number signs, or a combination, that
emit any light color, other than the color red emitting from
forward-facing signs, pursuant to the following conditions
that all illuminated signs:
a) Must emit diffused non-glaring light;
b) Shall be no greater than 720 square inches;
c) Shall not resemble, or be installed in a position that
interferes with the visibility or effectiveness of a
required lamp, reflector, or other device on the vehicle;
and,
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d) Shall display information directly related to public
transit service, including, but not limited to, route
number, destination description, and run number.
1)Permits dynamic messaging on all illuminated signs if the
practice adheres to the following requirements:
a) "Paging," meaning information presented for a period of
time and then disappearing all at once before the same 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 between 0.5 and 25 seconds;
and,
b) "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.
1)Defines "lighting equipment" as an illuminated sign installed
on a bus that utilizes an electronic display to convey the
route designation, route number, run number, or any
combination thereof.
AS PASSED BY THE ASSEMBLY , this bill:
1)Made legislative findings and declarations concerning the need
for establishing the pilot program.
2)Authorized, until January 1, 2017, the City to establish a
pilot program allowing their publicly-owned transit buses to
be equipped with illuminated signs that display
advertisements.
3)Established the specifications and prohibitions of the
illuminated signs, as specified.
4)Required the City to submit a specified report to the
Legislature by July 1, 2016, on the incidence of adverse
impacts, if any.
5)Prohibited the buses from using the streaming or paging mode
for the illuminated signs when the vehicles are operated on
state freeways.
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6)Sunsets the provisions of this bill on January 1, 2017.
FISCAL EFFECT : Unknown
COMMENTS : According to the author, "Over the past two decades,
investment in transportation infrastructure has fallen woefully
short of meeting basic needs to serve the state's growing
population and dynamic economy. Public transit agencies across
the state are struggling to close transit operating budget
deficits while continuing to provide vital transit service to
their communities. Public transit agencies have long been
allowed to use static signs placed on the sides of buses to
display advertising, which, in turn, has been one innovative way
for transit agencies to generate income above and beyond the
farebox and tax subsidies. A recent Transit Collaboration
Research Project commissioned by the American Public
Transportation Association identified the emerging media of
digital bus advertising as a revenue stream for transportation
agencies. In 2008, the Chicago Transit Authority unveiled its
first digital advertising on buses. Chicago's switch to digital
media has boosted its revenue by up to 400% from what it
collected for static printed poster advertisements on buses. As
digital advertising has become more prevalent in cities
throughout the United States, it has proven to allow for greater
flexibility and increased customization while also attracting
more advertisers."
The City reports that the newest digital advertising displays
consist of ultra-thin light emitting diode (LED) screens which
are mounted to the curbside of a bus and are highly durable.
They have been tested for durability in light contact with other
vehicles, fixed objects, and through multiple bus wash cycles.
They also have advanced sensors that dim or brighten the sign as
outdoor light changes. The signs can be programmed to remain
static or go dark in a defined location (e.g. on freeways). Ads
are transmitted to the boards wirelessly which allows for fast,
paper-free postings-reducing labor and printing costs. The cost
of these units varies depending on a variety of factors such as
warranty, service programs, and sign type, but a general
estimate is $50,000 per sign unit. There are two companies that
currently make this type of sign; one of them is a local
California-based firm. Digital ads allow for greater
flexibility and increased customization. Rates can be broken
down by day parts allowing an advertiser to buy just a morning
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rate or just an evening rate. A restaurant could buy time from
6 a.m. to 10 a.m. to promote their breakfast special and
additional time in the evening to promote a dinner special. In
addition, increased advertising real estate offers greater
public benefit by allowing more space for public service
announcements or city sponsored events. For example, concerts
on the pier could be added to the rotation and could change
weekly to promote just that week's headliner.
Further, the City's estimate of maximum revenue potential from
the transit buses existing static signs is $4.1 million. They
estimate that the maximum revenue potential with a fleet with 25
digital signs could be as high as $16.5 million (with no
discounts). However, based on current sales models, City staff
estimates that 25 digital signs would generate an additional $4
to $6 million (nearly 100% increase from revenues from the
static signs).
This bill would allow for a pilot project that will look at the
impacts of digital advertising and assist in determining whether
it is appropriate to extend the use of illuminated advertising
signs to other transit systems across the state. The time
period for the pilot project seems excessive but is necessary
due to an expected 18 months start up time and subsequent data
collection/evaluation period.
Chicago Transit : In April 2008, the Chicago Transit Authority
(CTA) Board authorized a 10-year contract for Titan Outdoor
(Titan) to sell digital ads on CTA buses and across the rail
system. Under the agreement, Titan will be responsible for the
purchase, installation, maintenance and repair of more than
1,500 digital display boards on 100 buses and at all 144 rail
stations.
The digital displays at rail stations and on buses will be fully
integrated with CTA's Control Center and the Office of Emergency
Management and Communications. In the event of an emergency,
the CTA will have the ability to use the digital display boards
on buses and in rail stations to provide customers with
time-sensitive critical information. As such, during an
emergency, CTA will be able to override ads and post emergency
information or real-time service updates.
According to CTA, they are assessing which bus routes will
feature the digital display boards. They indicated that bus
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routes that travel along expressways, highways or Lake Shore
Drive will not be considered.
Analysis Prepared by : Ed Imai / TRANS. / (916) 319-2093
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