BILL ANALYSIS �
SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: AB 1984
SENATOR MARK DESAULNIER, CHAIRMAN AUTHOR: wagner
VERSION: 6/26/12
Analysis by: Eric Thronson FISCAL: no
Hearing date: July 3, 2012
SUBJECT:
Illuminated signs on public transit buses
DESCRIPTION:
This bill authorizes the University of California at Irvine (UC
Irvine) to equip the sides of its buses with illuminated signs
to display advertising until January 1, 2018.
ANALYSIS:
Existing law authorizes buses, operated by a publicly-owned
transit system on regularly scheduled service, to be equipped
with illuminated signs to inform the public concerning the
buses' operation. These signs may emit any light color, except
that forward-facing signs cannot emit the color red, 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, for example one foot high and five feet long;
Signs must 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; and
Signs must display information directly related to
public transit service, such as route number, destination
description, and run number.
Further, existing law authorizes dynamic messaging on
illuminated signs equipped to public transit buses if the
practice adheres to the following requirements:
"Paging," meaning information presented for a period of
time and then disappearing all at once before new
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information is presented, is permitted if the display time
of each message is between 2.7 and 10 seconds. Blanking
time between each message 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.
In 2011, the Legislature passed AB 607 (Brownley), Chapter 529,
allowing the City of Santa Monica's bus transit system to
establish a pilot program until January 1, 2017, equipping the
sides of its buses with illuminated signs to display
advertising. The following conditions govern Santa Monica's use
of these signs on its buses:
Signs must emit diffused non-glaring light;
Signs must not be greater than 4,464 square inches in
area, which could be roughly three feet high and ten feet
long;
Signs must not be installed in a position that
interferes with the visibility of required lamps,
reflectors, or other devices;
Signs must 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 color formed by the mixing of light from the
diodes in the advertising is not red;
Signs must be static when the buses are operating on
state freeways; and
Existing standards for paging and streaming (described
above) shall apply to the display of advertising signs.
AB 607 requires the City of Santa Monica transit staff and
police department to develop collaboratively a report examining
the incidence of adverse impacts on roadway and pedestrian
safety due to the illuminated signs pilot program and submit the
report to the Legislature and the California Highway Patrol
(CHP) by July 1, 2016.
This bill allows UC Irvine's bus transport system to institute a
pilot program which allows buses to be equipped with illuminated
signs to display advertising identical to the one authorized for
the City of Santa Monica. This pilot program would sunset by
AB 1984 (WAGNER) Page 3
January 1, 2018. Further, this bill requests UC Irvine to
submit a report to the Legislature by July 1, 2017, examining
the viability of advertising sales related to illuminated signs
on public buses.
COMMENTS:
1.Purpose . According to the author, persistent cuts to the
University of California have led to the need for UC Irvine to
find alternative ways to raise revenues in order to maintain
needed student services. With student service budgets
participating in the overall campus budget reductions, units
like the shuttle service that have ways to generate revenue
are trying to mitigate those cuts. This bill provides one way
for the campus shuttle service to raise revenue through a
pilot program similar to the City of Santa Monica's
illuminated advertising pilot program.
2.Second hearing in this committee . The committee heard this
bill on June 12, 2012, and defeated it on 3-4 vote. In the
hearing, the author agreed to a number of amendments if his
bill passed this committee, including:
Restricting the signs to the right side of the buses;
Restricting the use of the signs to campus streets only,
prohibiting the signs from being lit on off-campus streets;
Requiring UC Irvine to do significant research into the
project, including but not limited to how well the signs
attract attention, whether the use of the signs lead to any
adverse safety impacts, and how effective the project is at
raising revenues; and
Adding a provision explicitly requiring the program to
be installed and administered at no cost to the university.
Since the first hearing, the author has amended this bill to
change the reporting requirements from whether the program has
adverse safety impacts to what potential the program has to
generate revenues. This amendment is intended to provide the
Legislature further information to consider when deciding if
illuminated advertising on the side of public buses is
appropriate to authorize statewide. This amendment does not
address the committee's concerns about authorizing a second
pilot before Santa Monica delivers the results on the safety
impacts of the original pilot program. If the committee
decides to approve this second pilot program in order to
AB 1984 (WAGNER) Page 4
assist in the evaluation of the advertising proposal, the
committee may wish to consider amending the bill to include
all the amendments the author agreed to in the first hearing.
1.Advertising on buses . Public transit agencies have long used
static signs placed on the sides of buses to display
advertising, using the revenue from the advertisements to
subsidize transit operations. A federal research project
identified the emerging media of digital bus advertising as a
potential revenue stream for transit agencies. The digital
signs are ultra-thin, lightweight, light emitting diode (LED)
screens that can easily be mounted on the sides of buses.
According to City of Santa Monica staff, if purchased these
signs cost about $50,000 each, though they may also be leased.
Digital advertising allows for customized 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 are operating on freeways.
2.Santa Monica's pilot program . As noted earlier, the
Legislature recently enacted AB 607 authorizing Santa Monica
to conduct a pilot project in order to study the effects of
illuminated signs on buses. Existing law requires Santa
Monica staff to report the results of the project to the
Legislature; specifically, the city is required to examine the
incidence of adverse impacts on roadway and pedestrian safety
due to the use of these illuminated signs. Given the fact
that this report is not due to the Legislature until 2016, it
may be premature to grant additional operators the authority
to place illuminated signs on buses because possible problems
have yet to be identified. Notwithstanding the UC system's
budget challenges, approving this bill will set a precedent
which may lead to many bus operators in the state requesting
authorization to use illuminated signs on buses.
3.Funding potential . The Chicago Transit Authority (CTA) began
digital advertising on buses in 2008 and it expected a 400
percent increase in revenues compared to its static poster
display advertising. For the entire Chicago bus system, CTA
equipped roughly 40 buses with these digital billboards. CTA
has since discontinued the program, however, because it could
not sell enough advertising to pay for the program. According
to CTA staff, the Metropolitan Transit Authority in New York
City has also discontinued their program offering illuminated
advertising on buses. The biggest problem was that, because
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its buses run through a variety of neighborhoods, it was
difficult to sell targeted advertising. Advertisers did not
want to pay the increased costs associated with the
illuminated ads if the buses spent much of their time in areas
where viewers may be uninterested in what was being
advertised.
City of Santa Monica transit staff also expected the
illuminated billboards to raise additional revenue for
operating its transit system. Last year, Santa Monica staff
reported that its static advertising generates about $4.1
million annually, but expect the digital signs to increase its
advertising revenue to about $8 million. In light of
Chicago's and New York's challenges with selling digital
advertising, however, Santa Monica is readjusting expectations
and moving slowly into this new business venture. Staff there
report intent to hire a consultant to help them determine how
many signs to begin with and what they might charge to
optimize revenues. Although existing law enables them to
equip up to 25 buses with illuminated signs, because of the
high capital start-up cost, Santa Monica may begin the program
with only five signs to test its viability. They hope to
start the program by the end of 2012.
4.Distracted driving . There have been many distracted driving
studies conducted by a variety of constituencies and focused
on a number of potential distractions. There are studies that
use data to prove illuminated billboards do not lead to
negative outcomes, and other studies that refute these
conclusions. Nearly all studies admit that, in most
instances, it is very difficult to identify one single factor
that led to an adverse incident such as an automobile
accident. Research tends to show that accidents arise from an
accumulation of factors, including distractions in the vehicle
and outside, weather conditions, and even within the driver's
mind.
It is clear, however, that billboards by their very nature
capture a driver's attention. Advertising is intended to
communicate a message to the recipient, which requires some
attention. One recent study of driver behavior conducted by
the Accident Research Center at Monash University concluded
that, "the presence of billboards changed drivers' pattern of
visual attention, increased the amount of time needed for
drivers to respond to road signs, and increased the number of
errors in the driving task." Other studies using naturalistic
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driving data have found that of all the various distractions
contributing to poor driving outcomes, "visual distraction is
the primary concern in driver distraction." Illuminated
billboards are particularly effective at drawing one's visual
attention.
As mentioned previously, the Santa Monica pilot program was
authorized in order to study and identify any adverse impacts
on pedestrians and drivers resulting from the use of
illuminated signs on the exterior of moving buses. In 2016,
when the report is due to the Legislature, some data should be
available to inform the decision of whether or not to expand
this authority to other transit operators in the state. While
illuminated billboards, either on the side of the road or
sides of buses, may not by themselves lead to adverse impacts,
it is clear that they contribute to the multiple distractions
drivers and pedestrians navigate each day. Adding
distractions, especially ones that are particularly effective
at drawing one's attention, can only increase the risk of
negative outcomes. The question is not whether these
advertisements cause accidents and other negative
consequences, but how many distractions are enough to create
an environment potentially too risky and dangerous for people
traveling from one place to another.
5.The future of travel ? Technology has increased the safety of
automobile travel. Further technological advances may
eliminate or significantly reduce the threat of distracted
driving. For example, earlier this year, this committee heard
a bill relating to autonomous vehicles or cars which
essentially drive themselves. If this type of technology were
to become ubiquitous, distractions would become less important
because passengers of the vehicles would not be required to
pay attention to the operation of the vehicle. At this time,
however, as drivers are bombarded increasingly with potential
distractions, it may not be appropriate to add to those
distractions.
6.Amending the report deadline . The report on Santa Monica's
pilot program is due to the Legislature by July 1, 2016. The
Legislature will likely use the information in that report
when considering whether or not to expand the authority to use
illuminated buses to all transit systems in the state. The
report on the pilot proposed in this bill is due July 1, 2017,
which could be after the Legislature decides to move forward
on expansion of the program. For this reason, it seems
AB 1984 (WAGNER) Page 7
reasonable to move the reporting deadline in this bill to
align with the report due from Santa Monica, so that the
Legislature has all the information possible available at the
same time from which to make future safety decisions.
Therefore, the author or committee may wish to amend the bill
to move the reporting deadline to
July 1, 2016, to align with the report due from Santa Monica
on its pilot program.
7.Technical amendment .
Page 3, line 18, strike "city" and add "school"
RELATED LEGISLATION:
AB 2375 (Knight) grants similar authority to use illuminated
signs on buses to Antelope Valley Transit Authority. Pending in
the Senate Transportation and Housing Committee.
Assembly Votes:
Floor: 71 - 0
Trans: 14 - 0
POSITIONS: (Communicated to the committee before noon on
Wednesday,
June 27, 2012)
SUPPORT: None received.
OPPOSED: None received.