BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2375
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          Date of Hearing:   April 23, 2012

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                               Bonnie Lowenthal, Chair
                 AB 2375 (Knight) - As Introduced:  February 24, 2012
           
          SUBJECT  :  Illuminated signs on public transit buses

           SUMMARY  :  Establishes, until January 1, 2018, a pilot program 
          for the Antelope Valley Transit Authority (Antelope) allowing 
          their transit buses to advertise on their side-mounted 
          illuminated signs.  Specifically,  this bill  :  

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









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          3)Limits the number of buses with illuminated signs to 25 for 
            two years, after which Antelope may increase the total number 
            to 30.  

          4)Sunsets the provisions of the bill on January 1, 2018.  
            
           EXISTING LAW:  

          1)Establishes a pilot program until January 1, 2017, for the 
            City of Santa Monica (Santa Monica) to implement a pilot 
            program 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, light weight, light emitting 
          diode screens that can easily be mounted on the sides of buses.  
          Digital advertising allows for customize advertising, including 








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          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.  

          According to the author, "This bill creates a 5-year pilot 
          program to allow Antelope buses to display illuminated signs for 
          advertising purposes.  These signs would have the ability to 
          change and scroll, based on specified conditions.  Digital signs 
          reduce labor costs and eliminate wasteful paper signs.  The 
          adoption of these provisions would allow Antelope to have an 
          innovative way to generate revenue beyond the fare box and tax 
          subsidies."  

          Legislation was enacted last year that allowed the City of Santa 
          Monica to use illuminated advertising on the sides of their 
          public transit buses.  This bill is modeled after that 
          legislation.  

          Although all options for raising additional revenues for 
          Antelope should be explored, one may question if adding a new 
          pilot program at this time is premature as the assessment of the 
          current pilot program for the City of Santa Monica is ongoing.  

           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 1984 (Wagner) of 2012, a similar bill that would allow the 
          University of California, at Irvine, to advertise on their 
          public shuttle buses.  That bill passed out of this committee on 
          April 16, 2012.  

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

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Antelope Valley Transit Authority 
          City of Lancaster 








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          City of Palmdale

           Opposition 
           
          None on file
           

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