BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 402
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          SENATE THIRD READING
          SB 402 (Vargas)
          As Amended  September 2, 2011
          Majority vote 

           SENATE VOTE  :Vote not relevant

           EDUCATION                       APPROPRIATIONS   12-0           
                    (vote not relevant)
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          |     |                          |     |Fuentes, Blumenfield,     |
          |     |                          |     |Bradford, Charles         |
          |     |                          |     |Calderon, Campos, Davis,  |
          |     |                          |     |Gatto, Hall, Hill, Lara,  |
          |     |                          |     |Mitchell, Solorio         |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
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           GOVERNMENTAL ORGANIZATION 12-0                                  
           
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          |Ayes:|Hall, Block, Blumenfield, |     |                          |
          |     |Cook, Galgiani, Gatto,    |     |                          |
          |     |Hill, Jeffries, Perea, V. |     |                          |
          |     |Manuel P�rez, Silva,      |     |                          |
          |     |Torres                    |     |                          |
          |     |                          |     |                          |
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           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 








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               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;

             d)   The display does not advertise products or services that 
               are directed at an adult population, including but not 
               limited to, alcohol, tobacco, gambling, or 
               sexually-explicit material.

             e)   The display would not cause a reduction in federal-aid 
               highway funds, as provided; and,

             f)   If the display causes a reduction in federal aid highway 
               funds, Caltrans shall revoke the permit granted under this 
               bill.
           
          EXISTING LAW  :

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








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            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, there are no significant costs associated with this 
          legislation.

           COMMENTS  :  

           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 
          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.

          Existing law provides for general exemptions and specified 








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          exceptions to the prohibition on advertising along 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.  In addition, since 1995, a 
          number of bills have created exemptions for specific cities, 
          including an exemption for advertising on "street furniture" in 
          San Francisco, five signs situated on the property of the 
          Oakland-Alameda County Coliseum complex, one sign each in the 
          cities of Costa Mesa and Richmond, and four signs within the 
          Mid-City Recovery Redevelopment Project Area within Los Angeles.

          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.

           Policy issues :  This bill would authorize the placement of an 
          advertising sign that is nonconforming to both the specifics and 
          intent of the OAA.  It might 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.

           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, 








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          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 would have deleted 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 
          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 








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          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.  

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

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