BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 402
                                                                  Page  1

          Date of Hearing: September 1, 2011

                   ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
                                 Isadore Hall, Chair
                    SB 402 (Vargas) - As Amended:  August 31, 2011

          SENATE VOTE  :Vote not relevant
           
          SUMMARY  :  Provides an exemption from the regulations of the 
          Outdoor Advertising Act (OAA or Act) for an advertising display 
          located within 1,800 feet of the intersection of State Highway 
          Routes 8 and 111 in the County of Imperial if certain conditions 
          are satisfied.  Specifically  this bill  :

          1)Exempts an advertising display located within a distance of 
            1,800 feet of the intersection of State Highway Routes 8 and 
            111 in the County of Imperial, if all of the following 
            conditions are met:

             a)   Written evidence is provided to the California 
               Department of Transportation (Caltrans) indicating that 
               both the owner or person in control or possession of the 
               property upon which the advertising display is to be 
               located and the city or county with land use jurisdiction 
               over that property have consented to the placing of the 
               display;

             b)   No more than three displays are placed by the owner or 
               person in control or possession of the property, as 
               defined;

             c)   The placement of the display will not necessitate 
               trimming, pruning, topping, or removal of existing trees in 
               order to make the display visible or to improve visibility 
               unless done as part of the normal landscape maintenance 
               activities that would have been undertaken without regard 
               to the placement of the display; and,

             d)   The display would not cause a reduction in federal-aid 
               highway funds, as provided.
           
          EXISTING LAW  :

          1)  Establishes OAA, which regulates the placement of 
          advertising displays adjacent to and within specified distances 








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          of highways that are part of the national system of interstate 
          and defense highways and federal-aid highways.  The Act 
          prohibits any advertising display from being placed or 
          maintained on property adjacent to a section of a freeway that 
          has been landscaped if the advertising display is designed to be 
          viewed primarily by persons traveling on the main-traveled way 
          of the landscaped freeway.  The Act, however, only applies to 
          signs that are located within 660 feet of the right-of-way of 
          federal-aid interstate and primary highways.

          2)  Provides for limited exemptions and specified exceptions to 
          the prohibition on advertising along system and landscaped 
          freeways, including exemptions for signs advertising the 
          property's sale or lease, signs designating the premises or its 
          owner, and signs advertising goods or services     manufactured 
          or produced on the property itself. 

          3)  Allows a single advertising structure exemption for each of 
          several cities, including an exemption for advertising on 
          "street furniture" in San Francisco, several billboards situated 
          on the grounds of the Oakland-Alameda County Coliseum complex, 
          and structures within the Mid-City Recovery Redevelopment 
          Project Area within Los Angeles.

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee analysis, there are no significant costs associated 
          with this legislation.

           COMMENTS  :  SB 402 was a gut and amend in the Assembly 
          Appropriations Committee. The bills subject matter was never 
          heard in an Assembly policy committee this legislative session.

           Purpose of the bill  :  According to the author, this bill will 
          clean-up an outstanding issue pertaining to unresolved state 
          issues involving four billboards in Imperial Country which were 
          authorized and permitted by the county in 1994.  By granting an 
          exemption to the OAA, these billboards will help generate much 
          needed revenue and commerce for the area.  The intrinsic value 
          of these billboards will translate into economic value to the 
          impacted communities through increased commercial activity by 
          marketing to the interstate traffic.  The author maintains, 
          anything that can be done to promote and help local businesses 
          will ultimately create an economic value in the area.

          A legislative remedy is seen by proponents as the only option 








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          available to secure an exemption from the OAA.

           Background  :  The Act regulates the placement of advertising 
          displays (i.e., billboards) and signs along interstate or 
          primary highways, landscaped freeways and similar specified 
          highways.  It sets standards for the structures, including their 
          size, identification and location, and requires compliance with 
          application procedures and conditions administered by Caltrans.  
          The act prohibits any advertising display from being placed or 
          maintained on property adjacent to a section of a freeway that 
          has been landscaped if the advertising display is designed to be 
          viewed       primarily by persons traveling on the main-traveled 
          way of the landscaped freeway.

          Current exemptions include individual signs that: 1) identify 
          development projects, business centers, or associations located 
          within the jurisdiction of, and sponsored by, the City of        
           Richmond to support economic development activities; 2) 
          identify development projects, business centers, or associations 
          located within the jurisdiction of, or sponsored by, the City of 
          Costa Mesa to support economic development activities; and, 3) 
          is in a city in Los Angeles County whose population is less than 
          17,000, whose annual budget is less than $8 million, and whose 
          area is 1.7 square miles (Artesia).

          This bill would authorize an advertising billboard or structure 
          that is nonconforming to both the specifics and intent of the 
          Act, which is to limit or prohibit highway-adjacent advertising  
            structures.  

           Federal Highway Beautification Act of 1965  :  The Highway 
          Beautification Act (HBA) was created to protect the public 
          investment, promote the safety and recreational value of public  
               travel, and to preserve the natural beauty of highways in 
          the nation.

          HBA specifies that states have the responsibility to enforce 
          provisions regarding the placement and maintenance of outdoor 
          advertising signs, displays and devices along the Interstate and 
          National Highway System.  The state of California enforces the 
          provisions of federal law through a compact that was developed 
          between the state and the federal government in 1967.  Federal 
          law also includes a penalty for states that violate HBA by 
          reducing all federal highway transportation funds by a 
          designated percentage.








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           Policy issues  :  SB 402 would authorize the placement of an 
          advertising sign that is nonconforming to both the specifics and 
          intent of the OAA.  It would extend further the precedent for 
          legislative approval of exemptions to OAA.  Exemptions for 
          nonconforming and prohibited billboards and lighted signs 
          adjacent to landscaped freeways might undermine and render 
          meaningless the provisions and intent of the OAA and may impact 
          federal funding.

          In addition, prior chaptered legislation included "boilerplate 
          language" which stated that "the advertising display does not 
          advertise products, goods, or services that are directed at an 
          adult population, including, but not limited to, alcohol, 
          tobacco, gambling, or sexually explicit material."

           Prior legislation  :  AB 1117 (Benoit) of 2007, would have deemed 
          an advertising display erected by a city or county to advertise 
          businesses operating within a redevelopment agency project area, 
          or within a business improvement district whose boundaries 
          partly or wholly overlap those of the redevelopment agency 
          project area, to be on the premises at any location within 1,000 
          feet of the legal boundaries of the redevelopment agency's 
          project area if the display meets certain conditions. (Died - 
          Never heard in Senate Local Government Committee)   

          AB 563 (Ridley-Thomas) of 2007, would have deleted the 
          "rebuttable presumption" in current law that deems those 
          advertising displays that were unlawfully erected as lawful if 
          the sign owner had not received notice that the display was 
          unlawful within five years of the display being erected.  This 
          bill also deletes the requirement that entities requiring the 
          removal of unlawfully erected signs pay sign owners just 
          compensation to do so.  (Died in Senate Rules Committee)

          AB 1499 (Benoit) of 2006, would have created an exemption to the 
          Act, to permit the City of Riverside to erect an outdoor 
          advertising display along Highway 91 to promote economic 
          activity for the Riverside Plaza.  (Vetoed by Governor)

          AB 801 (Jones) of 2006, would have created an exemption from the 
          Outdoor Advertising Act for one sign in the County of 
          Sacramento.  (Vetoed by Governor)

          AB 2441 (Klehs) of 2006, would have authorized an advertising 








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          display in the redevelopment zone of the City of San Leandro 
          subject to specified conditions.  (Vetoed by Governor)

          AB 1518 (J. Horton) of 2006, would have exempted, from the 
          prohibition against placing advertising displays adjacent to 
          landscaped freeways, any billboard located on property owned by 
          the Lennox School District, subject to certain conditions. (Died 
          pending concurrence in the Assembly)

          AB 762 (Nu�ez), Chapter 725, Statutes of 2003, creates an 
          exemption to the Act by allowing the National Latino Arts 
          Council to place an advertisement on the roof of a 
          not-for-profit educational academy.

          SB 190 (Perata), Chapter 54, Statutes of 2001, exempts a certain 
          development of highway advertising in Oakland from existing laws 
          protecting landscaped highways permitted the City      of 
          Artesia to erect an advertising display alongside a landscaped 
          highway.  Permitted the City of Artesia to lease one billboard 
          space adjacent to the 91 Freeway on city property.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Imperial Valley Economic Development Corporation
          Jack Terraza, Chairman - District 2, Imperial County Board of 
          Supervisors
           
            Opposition 
           
          None on file

           
          Analysis Prepared by  :    Eric Johnson / G. O. / (916) 319-2531