BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1984
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          Date of Hearing:   April 16, 2012

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                               Bonnie Lowenthal, Chair
                 AB 1984 (Wagner) - As Introduced:  February 23, 2012
           
          SUBJECT  :  Illuminated signs on public transit buses

           SUMMARY  :  Establishes a pilot program for the University of 
          California at Irvine (Irvine), allowing their transit buses to 
          advertise on their side-mounted illuminated signs until January 
          1, 2018.  Specifically,  this bill  :  

          1)Authorizes, until January 1, 2018, Irvine to establish a pilot 
            program allowing their publicly-owned transit buses to be 
            equipped with illuminated signs that display advertisements.  

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

             a)   Signs shall emit diffused non-glaring light.  

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

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

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

             e)   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. 

          1)Prohibits buses from using the streaming or paging mode for 
            the illuminated signs when the vehicles are operated on state 
            freeways.  

          2)Requires Irvine to submit a specified report to the 
            Legislature by July 1, 2017, on the incidence of adverse 
            impacts due to the use of the illuminated signs, if any.  

          3)Limits the number of buses with illuminated signs to 25 for 








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            two years, after which Irvine may increase the total number to 
            30.  

          4)Sunsets the provisions of this bill on January 1, 2018.  

           EXISTING LAW:   

          1)Establishes, until January 1, 2017, a pilot program for the 
            City of Santa Monica (Santa Monica) allowing their transit 
            buses to advertise on their side-mounted illuminated signs.  
            Establishes the specifications and prohibitions of the 
            illuminated signs.  Prohibits the buses from using the 
            streaming or paging mode for the illuminated signs when the 
            vehicles are operated on state freeways.  Requires Santa 
            Monica to submit a report to the Legislature by July 1, 2016, 
            on the incidence of adverse impacts, if any.  

          2)Authorizes buses, operated by a publicly-owned transit system 
            on regularly scheduled service to be equipped with illuminated 
            destination signs.  

          3)Authorizes dynamic messaging on all illuminated signs if the 
            practice adheres to prescribed requirements.  

          4)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.  

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  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 digital signs are ultra-thin, lightweight, light emitting 
          diode 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, 








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          therefore, possible to render the advertising static when the 
          buses are operating on freeways.  

          According to the author, due to the budget cuts of the 
          University of California system over the years, there is a need 
          for Irvine to raise revenues in order to maintain needed student 
          services for their campus.  Their intention is to raise funds by 
          selling advertisements on their school shuttle buses that would 
          be displayed on the side-mounted illuminated signs.  The author 
          contends that "this is a unique way to approach the financial 
          deficit in funding for student services.  With student service 
          budgets participating in the overall campus reduction, units 
          that have a way to raise revenue to augment are doing so like 
          the shuttle service."   

          Legislation was enacted last year (see following "Related bills" 
          section) that allows the City of Santa Monica (Santa Monica) to 
          use illuminated advertising on the sides of their public transit 
          buses for a limited, five-year period.  This bill is modeled 
          after that legislation and provides Irvine with the 
          authorization to implement a digital advertising pilot program 
          for their campus and surrounding areas.  Further, it is believed 
          that since the two locations are sufficiently apart and the 
          localized transit routes do not overlap, the selling of ads for 
          the digital displays will not be affected.  

           Related bills  :  AB 607 (Brownley), Chapter , Statutes of 2011, 
          establishes a pilot program for the City of Santa Monica 
          allowing their transit buses to use illuminated signs for 
          purposes of advertising.  

          AB 2375 (Knight), of 2012, a similar bill, would authorize, 
          until January 1, 2018, a pilot program for Antelope Valley 
          Transit Authority to use illuminated signs for advertising on 
          their public transit buses.  That bill will heard in this 
          committee next week.  

          SB 1295 (Huff), of 2012, would allow local school districts to 
          advertise on the exterior of the yellow school buses.  That bill 
          passed the Senate Transportation and Housing Committee and is to 
          be heard in the Senate Education Committee.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 








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          California Communities United Institute

           Opposition 
           
          None on file
           

          Analysis Prepared by  :   Ed Imai / TRANS. / (916) 319-2093