Existing law, the Outdoor Advertising Act, provides for the regulation by the Department of Transportation of an advertising display, as defined, within view of public highways. The act regulates the placement of an off-premises advertising display along highways that generally advertises business conducted or services rendered or goods produced or sold at a location other than the property where the display is located.

The act does not apply to an on-premises advertising display, which generally advertises business conducted or services rendered or goods produced or sold at the location where the display is located. However, until January 1, 2023, the act treats an off-premises advertising display developed as part of and within the boundary limits of a redevelopment agency project, as those boundaries existed on December 29, 2011, as an on-premises advertising display if it meets certain criteria, subject to an extension beyond January 1, 2023, not to exceed the expiration of the redevelopment project area, upon a showing of good cause, as specified, to the department by the applicable city, county, or city and county. Existing law requires the advertising copy of these advertising displays within redevelopment agency boundary limits to advertise only the businesses or activities operating within those boundary limits, imposes other related display requirements, and requires a city, county, or city and county to annually certify to the department that these advertising copy requirements are met. Existing law requires that a redevelopment area advertising display be removed by January 1, 2023, or by the end of any applicable extension, unless it qualifies as a lawful display under the act, without the payment of any compensation to the owner or operator.

This bill would, instead, treat an off-premises advertising display within the boundary limits of a redevelopment agency project, as detailed above, that meets the applicable criteria as an on-premises advertising display until January 1, 2026, would eliminate the authorization for an extension for good cause, would eliminate the requirements regarding advertising copy, and would eliminate the explicit requirement that the display be removed without compensation to the owner or operator.

Existing law, the Outdoor Advertising Act, provides for the regulation by the Department of Transportation of an advertising display, as defined, within view of public highways. The act regulates the placement of an off-premises advertising display along highways that generally advertises business conducted or services rendered or goods produced or sold at a location other than the property where the display is located.

The act does not apply to an on-premises advertising display, which generally advertises business conducted or services rendered or goods produced or sold at the location where the display is located. However, until January 1, 2023, the act treats an off-premises advertising display developed as part of and within the boundary limits of a redevelopment agency project, as those boundaries existed on December 29, 2011, as an on-premises advertising display if it meets certain criteria, subject to an extension beyond January 1, 2023, not to exceed the expiration of the redevelopment project area, upon a showing of good cause, as specified, to the department by the applicable city, county, or city and county. Existing law requires the advertising copy of these advertising displays within redevelopment agency boundary limits to advertise only the businesses or activities operating within those boundary limits, imposes other related display requirements, and requires a city, county, or city and county to annually certify to the department that these advertising copy requirements are met. Existing law requires that a redevelopment area advertising display be removed by January 1, 2023, or by the end of any applicable extension, unless it qualifies as a lawful display under the act, without the payment of any compensation to the owner or operator.

This bill would, instead, treat an off-premises advertising display within the boundary limits of a redevelopment agency project, as detailed above, that meets the applicable criteria as an on-premises advertising display until January 1, 2026, would eliminate the authorization for an extension for good cause, would eliminate the requirements regarding advertising copy, and would eliminate the explicit requirement that the display be removed without compensation to the owner or operator.

Existing law, the Outdoor Advertising Act, provides for the regulation by the Department of Transportation of an advertising display, as defined, within view of public highways. The act regulates the placement of an off-premises advertising display along highways that generally advertises business conducted or services rendered or goods produced or sold at a location other than the property where the display is located.

The act does not apply to an on-premises advertising display, which generally advertises business conducted or services rendered or goods produced or sold at the location where the display is located. Until However, until January 1, 2023, the act treats an off-premises advertising display developed as part of and within the boundary limits of a redevelopment agency project, as those boundaries existed on December 29, 2011, as an on-premises advertising display if it meets certain criteria for good cause, which includes, among others, that there has been no violation of certain provisions by the owner or operator of the advertising display, as specified. criteria, subject to an extension beyond January 1, 2023, not to exceed the expiration of the redevelopment project area, upon a showing of good cause, as specified, to the department by the applicable city, county, or city and county. Existing law requires the advertising copy of these advertising displays within redevelopment agency boundary limits to advertise only the businesses or activities operating within those boundary limits, imposes other related display requirements, and requires a city, county, or city and county to annually certify to the department that these advertising copy requirements are met. Existing law requires that a redevelopment area advertising display be removed by January 1, 2023, or by the end of any applicable extension, unless it qualifies as a lawful display under the act, without the payment of any compensation to the owner or operator.

Existing law, the Outdoor Advertising Act, provides for the regulation by the Department of Transportation of an advertising display, as defined, within view of public highways. The act regulates the placement of an off-premises advertising display along highways that generally advertises business conducted or services rendered or goods produced or sold at a location other than the property where the display is located.

The act does not apply to an on-premises advertising display, which generally advertises business conducted or services rendered or goods produced or sold at the location where the display is located. Until January 1, 2023, the act treats an off-premises advertising display developed as part of and within the boundary limits of a redevelopment agency project, as those boundaries existed on December 29, 2011, as an on-premises advertising display if it meets certain criteria for good cause, which includes, among others, that there has been no violation of certain provisions by the owner or operator of the advertising display, as specified.

This bill would alter that good cause criteria to instead require that the department has not made a final determination of a violation of the same provisions, whether by a final administrative decision or by operation of law, by the owner or operator of the advertising display.

From January 1, 2024, to January 1, 2025, the bill would allow the applicable city, county, or city and county to request from the department a 5-year 2-year extension for treating a display in a redevelopment agency project, as described above, as an on-premises display if the display meets the criteria for a finding of good cause, was in use on December 31, 2022, and complies with specified provisions of the act, including, but not limited to, the acts licensing and zoning requirements. The bill would authorize the department to provide the extension upon a finding of good cause.

Existing law, the Outdoor Advertising Act, provides for the regulation by the Department of Transportation of an advertising display, as defined, within view of public highways. The act regulates the placement of an off-premises advertising display along highways that generally advertises business conducted or services rendered or goods produced or sold at a location other than the property where the display is located.

The act does not apply to an on-premises advertising display, which generally advertises business conducted or services rendered or goods produced or sold at the location where the display is located. Until January 1, 2023, the act treats an off-premises advertising display developed as part of and within the boundary limits of a redevelopment agency project, as those boundaries existed on December 29, 2011, as an on-premises advertising display if it meets certain criteria for good cause, which includes, among others, that there has been no violation of certain provisions by the owner or operator of the advertising display, as specified.

This bill would alter that good cause criteria to instead require that the department has not made a final determination of a violation of the same provisions, whether by a final administrative decision or by operation of law, by the owner or operator of the advertising display.

From January 1, 2024, to January 1, 2025, the bill would allow the applicable city, county, or city and county to request from the department a 5-year extension for treating a display in a redevelopment agency project, as described above, as an on-premises display if the display meets the criteria for a finding of good cause, was in use on December 31, 2022, and complies with specified provisions of the act, including, but not limited to, the acts licensing and zoning requirements. The bill would require authorize the department to provide the extension upon a finding of good cause.

Existing law, the Outdoor Advertising Act, provides for the regulation by the Department of Transportation of an advertising display, as defined, within view of public highways. The act regulates the placement of an off-premises advertising display along highways that generally advertises business conducted or services rendered or goods produced or sold at a location other than the property where the display is located.

The act does not apply to an on-premises advertising display, which generally advertises business conducted or services rendered or goods produced or sold at the location where the display is located. Until January 1, 2023, the act treats an off-premises advertising display developed as part of and within the boundary limits of a redevelopment agency project, as those boundaries existed on December 29, 2011, as an on-premises advertising display if it meets certain criteria for good cause, which includes, among others, that there has been no violation of certain provisions by the owner or operator of the advertising display, as specified.

This bill would alter that good cause criteria to instead require that the department has not made a final determination of a violation of the same provisions, whether by a final administrative decision or by operation of law, by the owner or operator of the advertising display.

From January 1, 2024, to January 1, 2025, the bill would allow the applicable city, county, or city and county to request from the department a 10-year 5-year extension for treating a display in a redevelopment agency project, as described above, as an on-premises display if the display meets the criteria for a finding of good cause, was in use on December 31, 2022, and complies with specified provisions of the act, including, but not limited to, the acts licensing and zoning requirements. The bill would require the department to provide the extension upon a finding of good cause.

Existing law, the Outdoor Advertising Act, provides for the regulation by the Department of Transportation of an advertising display, as defined, within view of public highways. The act regulates the placement of an off-premises advertising display along highways that generally advertises business conducted or services rendered or goods produced or sold at a location other than the property where the display is located.

The act does not apply to an on-premises advertising display, which generally advertises business conducted or services rendered or goods produced or sold at the location where the display is located. Until January 1, 2023, the act treats an off-premises advertising display developed as part of and within the boundary limits of a redevelopment agency project, as those boundaries existed on December 29, 2011, as an on-premises advertising display if it meets specified certain criteria for good cause. cause, which includes, among others, that there has been no violation of certain provisions by the owner or operator of the advertising display, as specified.

From January 1, 2024, to January 1, 2025, this the bill would allow the applicable city, county, or city and county to request from the department a 10-year extension for treating a display in a redevelopment agency project, as described above, as an on-premises display if the display meets the criteria for a finding of good cause, was in use on December 31, 2022, and complies with specified provisions of the act, including, but not limited to, the acts licensing and zoning requirements. The bill would require the department to provide the extension upon a finding of good cause.

Existing law, the Outdoor Advertising Act, provides for the regulation by the Department of Transportation of an advertising display, as defined, within view of public highways. The act regulates the placement of an off-premises advertising display along highways that generally advertises business conducted or services rendered or goods produced or sold at a location other than the property where the display is located.

The act does not apply to an on-premises advertising display, which generally advertises business conducted or services rendered or goods produced or sold at the location where the display is located. Until January 1, 2023, the act treats an off-premises advertising display developed as part of and within the boundary limits of a redevelopment agency project, as those boundaries existed on December 29, 2011, as an on-premises advertising display if it meets specified criteria for good cause.

From January 1, 2024, to January 1, 2025, this bill would allow the applicable city, county, or city and county to request from the department a 10-year extension for treating a display in a redevelopment agency project, as described above, as an on-premises display if the display meets the criteria for a finding of good cause, was in use on December 31, 2022, and complies with specified provisions of the act, including, but not limited to, the acts licensing and zoning requirements. The bill would require the department to provide the extension upon a finding of good cause.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 1175

Author:(Quirk-Silva)

As Amended Ver:September 1, 2023

Majority vote

SUMMARY

This bill extends until January 1, 2026, the period of time during which an advertising display that was in operation as of December 31, 2022 and located within the boundaries of a former redevelopment agency (RDA) project may continue to be remain, under provisions that permit such signs to be treated as an on-premises display, as specified. Under current law the advertising display could remain only until January 1, 2023.

Senate Amendments:

1. Authorize a specified advertising display in a former RDA project area that was in use as of December 31, 2022 to remain, and be considered an on-premises display, until January 1, 2026.
2. Delete provisions that authorize a local agency to request an extension from Caltrans upon a finding of good cause, as specified.
3. Delete requirements for a local agency to annually certify to Department of Transportation (Caltrans) that the display is advertising businesses or activities within the former RDA project area, as specified, and require removal of an advertising display that is in violation of these provisions more than three times within a ten-year period.
4. Add coauthor.

COMMENTS

Background.

Since 1933, Caltrans has enforced the State Outdoor Advertising Act (California Business and Professions Code Section 5200 et. Seq.) that contains comprehensive standards and regulations for outdoor advertising displays (aka, "billboards'). The department regulates the placement of outdoor advertising displays visible from California highways. Outdoor advertising displays require a permit from Caltrans if they are within 660 feet from the edge of the right-of-way and viewed primarily by persons traveling on the main-traveled way of the freeway. In order to enforce the requirements for outdoor advertising under the Federal Highway Beautification Act and the State's Outdoor Advertising Act (OAA), Caltrans regularly inspects freeways and highways that are part of the National Highway System.

The OAA regulates the size, illumination, orientation, and location of advertising displays adjacent to and within specified distances of interstate or primary highways, and, with some exceptions, specifically prohibits any advertising display from being placed or maintained on property adjacent to a section of landscaped highway.

The Act generally does not apply to "on premises" advertising displays, which include those
advertising the sale of the property upon which it is placed or that advertise the business
conducted, services rendered, or goods produced or sold on the property. Local governments regulate on-premises displays, except for certain safety requirements. Existing law includes a number of exceptions to the OAA and assigns department the responsibility of reviewing and permitting signs that qualify for these exceptions.

Caltrans Permits after the Elimination of Redevelopment Agencies. As mentioned earlier, Caltrans enforces the OAA, which includes activities such as maintaining a list of landscaped freeways, issuing permits for signs allowed by statute to exist, and informing owners of non-compliant signs. Before the elimination of RDAs (AB 26 X1 (Blumenfield), Chapter 5, Statutes of 2011, and AB 27 X1 (Blumenfield), Chapter 6, Statutes of 2011, the OAA allowed for advertising signs (billboards) that are located within the boundaries of a redevelopment project area to be considered on-premises sign anywhere within the limits of the project if the project area is contiguous or is separated only by a public highway or public facilities developed or relocated for inclusion in the project and for a period not to exceed 10 years or the completion of the project, whichever occurs first. The dissolution of redevelopment agencies raised questions about how existing signs would be treated by Caltrans because there was no longer a redevelopment agency to negotiate an extension with Caltrans. At the time, Caltrans had issued approximately 95 permits for advertising displays along landscaped freeways in redevelopment project areas throughout the state.

On April 11, 2013, Caltrans issued a "Notice of Redevelopment Display Status Change." The notice indicated that successor agency permission will allow continued operation of the previously approved display, but that no new exemptions or extensions will be given absent legislative action. In essence, with the elimination of redevelopment agencies, Caltrans had been unsure how to proceed. Caltrans had not issued any fines to sign owners with expired permits. Instead, Caltrans indicated that it was waiting for further direction from the Legislature regarding the state's position on these specific sign permits.

SB 684 (Hill), Chapter 544, Statutes of 2013, allowed the continuation of this on-premises RDA exemption until January 1, 2023, if the advertising display met specified criteria. The bill authorized, on and after January 1, 2022, the applicable city, county, or city and county to request from Caltrans an extension for good cause, as specified, beyond January 1, 2023, not to exceed the expiration of the redevelopment project area. The measure required a specific certification from a local agency authorizing the advertising displays, as defined. Supporters of SB 684 asserted that the RDA exemption to the OAA allowed businesses in less desirable areas to market their products and services to freeway users who might not have done so otherwise due to the area's reputation for blight. The success of these billboards has helped the struggling businesses in the project area.

It should be noted that 49 advertising displays, as permitted by SB 684 of 2013, still exist along landscaped freeways in former redevelopment project locations across the state. Of those, 10 are in compliance with both state and federal laws.

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. The 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. If the state fails to properly administer the federal program, the state is subject to a sanction that would reduce its federal highway funding allocations by 10%.

FHWA periodically audits Caltrans. The July 16, 2022, audit of Caltrans by the Federal Highway Administration (FHWA) found that displays in arenas and RDA zones may not be in compliance with federal law, which is more restrictive than state law governing advertising displays. FHWA recommended Caltrans pursue compliance with federal law and, in some cases, pursue the removal of signs to not jeopardize losing federal highway funding.

According to the Author

According to the author, "My bill, AB 1175 allows existing and permitted signs that where once located in a redevelopment area to remain in place. Previous legislation I supported on the issue has now expired, local governments such as Cities and Counties rely on these permitted signs to attract people to business and shopping areas to engage in commerce. Now that we are out of the COVID-19 pandemic, revenue generated from local taxes is especially critical for local governments to keep their programs and services in operation."

Arguments in Support

The Gardens Casino writes in support, "The location of an advertising display that advertises our Casino was considered "on premises" and in compliance with the OAA until January 1, 2023, because it was located in an existing redevelopment area. The sign has been permitted to be in this location since 2001. Taxes paid by the Casino generates over 70% of the General Fund revenue for the City of Hawaiian Gardens. A Further extension of the previous deadline will avoid harmful and unnecessary disruption to economic activities within the City of Hawaiian Gardens and many other cities across the state."

Arguments in Opposition

This bill is opposed by Scenic Los Angeles, which argues "This bill will perpetuate hundreds of legally questionable billboards and jeopardize billions of dollars in Federal Highway matching funds."

FISCAL COMMENTS

According to the Senate Appropriations Committee analysis, "Likely minor costs for Caltrans to monitor compliance for two additional years, and respond to federal oversight and enforcement in cases of noncompliance. (State Highway Account)"

VOTES:

ASM GOVERNMENTAL ORGANIZATION: 22-0-0

YES: Santiago, Lackey, Aguiar-Curry, Berman, Bryan, Cervantes, Megan Dahle, Davies, Garcia, Gipson, Jones-Sawyer, Low, Mathis, McCarty, McKinnor, Jim Patterson, Quirk-Silva, Ramos, Robert Rivas, Blanca Rubio, Ta, Villapudua

ASM APPROPRIATIONS: 11-0-5

YES: Holden, Bryan, Calderon, Wendy Carrillo, Mike Fong, Hart, Lowenthal, Papan, Pellerin, Weber, Ortega

ABS, ABST OR NV: Megan Dahle, Dixon, Mathis, Robert Rivas, Sanchez

ASSEMBLY FLOOR: 78-0-2

YES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Rendon

ABS, ABST OR NV: Hart, Muratsuchi

SENATE FLOOR: 39-0-1

YES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk

ABS, ABST OR NV: Caballero

UPDATED

VERSION: September 1, 2023

CONSULTANT: Eric Johnson / G.O. / (916) 319-2531 FN: 0002236

 THIRD READING  

Bill No: AB 1175

Author: Quirk-Silva (D), et al.

Amended: 9/1/23 in Senate

Vote: 21

SENATE TRANSPORTATION COMMITTEE: 16-0, 6/27/23

AYES: Gonzalez, Niello, Allen, Archuleta, Becker, Blakespear, Cortese, Dahle, Dodd, Limón, McGuire, Newman, Nguyen, Seyarto, Umberg, Wahab

SENATE APPROPRIATIONS COMMITTEE: 7-0, 9/1/23

AYES: Portantino, Jones, Ashby, Bradford, Seyarto, Wahab, Wiener

ASSEMBLY FLOOR: 78-0, 5/30/23 - See last page for vote

SUBJECT: Outdoor advertising displays: redevelopment agency project areas

SOURCE: Author

DIGEST:

This bill extends the date at which advertising displays located in former redevelopment areas may continue to operate until January 1, 2026.

ANALYSIS:

Existing law:

1. Provides, under the Outdoor Advertising Act (OAA), for the regulation by the California Department of Transportation (Caltrans) of an advertising display, as defined, within view of public highways. The OAA regulates the placement of an off-premises advertising display along highways that generally advertises business conducted or services rendered or goods produced or sold at a location other than the property where the display is located.
2. Provides that the OAA does not apply to an on-premises advertising display.
3. Provides that “on-premises advertising displays” means any structure, housing, sign, device, figure, statuary, painting, display, message placard, or other contrivance, or any part thereof, that has been designed, constructed, created, intended, or engineered to have a useful life of 15 years or more, and intended or used to advertise, or to provide data or information in the nature of advertising, for any of the following purposes:
   1. To designate, identify, or indicate the name or business of the owner or occupant of the premises upon which the advertising display is located.
   2. To advertise the business conducted, services available or rendered, or the goods produced, sold, or available for sale, upon the property where the advertising display has been lawfully erected.
4. Permits, notwithstanding the dissolution of a state redevelopment agency, an advertising display developed as part of and within the boundary limits of a redevelopment agency project, as those boundaries existed on December 29, 2011, to be considered an on-premises advertising display if it meets certain criteria for good cause, and allows those advertising displays to remain until January 1, 2023. (California Business and Professions Code § 5273)
5. Authorizes, on and after January 1, 2022, the applicable city, county, or city and county to request, for good cause, from Caltrans an extension beyond January 1, 2023, not to exceed the expiration of the redevelopment project area, as specified. (California Business and Professions Code § 5273)
6. Dissolves redevelopment agencies and institutes a process for winding down their activities. (California Health and Safety Code § 34170)
7. Requires Caltrans to administer the federal Outdoor Advertising Control (OAC) program, which has restrictions similar to California’s OAA program, including maximum sign size, sign spacing, location, illumination, and content. If the state fails to properly administer the federal program, the state shall lose 10% of its federal highway funding.

This bill extends the time that an advertising display that was in use on December 31, 2022, and located within the boundary limits of a redevelopment agency project can remain until January 1, 2026. (Under current law the advertising display could remain only until January 1, 2023.)

Comments

1. Author’s Statement. “My bill, AB 1175 allows existing and permitted signs that where once located in a redevelopment area to remain in place. Previous legislation I supported on the issue has now expired, local governments such as Cities and Counties rely on these permitted signs to attract people to business and shopping areas to engage in commerce. Now that we are out of the COVID-19 pandemic, revenue generated from local taxes is especially critical for local governments to keep their programs and services in operation.”
2. Poking the Bear. The Federal Highway Administration (FHWA) periodically audits Caltrans to ensure that it is fulfilling its duties as administrator of the federal laws and regulations regarding billboards. In its latest report^[1] the FHWA was critical of many California advertising displays, specifically calling out displays erected pursuant to the redevelopment agency display exemption. FHWA’s review threatens the reduction of Federal-aid highway funds pursuant to 23 U.S.C. 131 absent action by Caltrans. It also raises safety concerns related to the placement of billboards within the right of way of California public highways in violation of federal requirements and contrary to standards outlined in the California Design Manual that must be addressed. In response Caltrans committed to numerous actions to address the FHWA’s concerns, including not granting any extension for redevelopment agency signs.

The FHWA’s concerns seem to have had an impact on the Newsom Administration. In vetoing another billboard bill last year (SB 1309, Durazo), the Governor said the following:

While I appreciate that revenues generated by these billboards provide certain local economic benefits, this bill disregards recent correspondence from the Federal Highway Administration (FHWA), which indicates that the state's transportation funding is at risk due to federal regulations restricting the use of this kind of advertisement.

Caltrans notes that this bill impacts around 60 signs and that it has no data on the revenue generated by these signs.

There would seem to be no reason to move this bill given the specific FHWA concerns over redevelopment agency billboards and the underlying California law, but Caltrans is in discussions with FHWA over enforcement of these provisions, implying that there may be some hope that these billboards could remain for a bit longer without the state incurring huge revenue losses or otherwise incurring their admonishment. Caltrans is confident that this bill will not impair their ability to comply with any FHWA directives.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

According to the Senate Appropriations Committee, likely minor costs for Caltrans to monitor compliance for two additional years, and respond to federal oversight and enforcement in cases of noncompliance. (State Highway Account)

SUPPORT: (Verified 9/1/23)

City of Buena Park

City of Inglewood City Hall

City of Milpitas

Inglewood; City of

The Gardens Casino

OPPOSITION: (Verified 9/1/23)

California State Outdoor Advertising Association

ASSEMBLY FLOOR: 78-0, 5/30/23

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Rendon

NO VOTE RECORDED: Hart, Muratsuchi

Prepared by: Randy Chinn / TRANS. / (916) 651-4121

9/4/23 9:19:21

**** END ****

1. U.S. Department of Transportation, Federal Highway Administration – Outdoor Advertising Review, Final Report; June 16, 2022. ↑

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2023 - 2024 Regular Session

AB 1175 (Quirk-Silva) - Outdoor advertising displays: redevelopment agency project areas

Bill Summary:

AB 1175 would allow the Department of Transportation (Caltrans), upon request of a city or county from January 1, 2024 to January 1, 2025, to provide a two year extension of the date by which an advertising display must be removed that was placed in a former redevelopment area (RDA) under provisions that allow such signs to be treated as an on-premises display, as specified.

*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********

The following information is revised to reflect amendments

adopted by the committee on September 1, 2023

Fiscal Impact:

• Likely minor costs for Caltrans to monitor compliance for two additional years, and respond to federal oversight and enforcement in cases of noncompliance. (State Highway Account)

Author Amendments:

• Authorize a specified advertising display in a former RDA project area that was in use as of December 31, 2022 to remain, and be considered an on-premises display, until January 1, 2026.
• Delete provisions that authorize a local agency to request an extension from Caltrans upon a finding of good cause, as specified.
• Delete requirements for a local agency to annually certify to Caltrans that the display is advertising businesses or activities within the former RDA project area, as specified, and require removal of an advertising display that is in violation of these provisions more than three times within a ten-year period.

-- END --

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2023 - 2024 Regular Session

AB 1175 (Quirk-Silva) - Outdoor advertising displays: redevelopment agency project areas

Bill Summary:

AB 1175 would allow the Department of Transportation (Caltrans), upon request of a city or county from January 1, 2024 to January 1, 2025, to provide a two year extension of the date by which an advertising display must be removed that was placed in a former redevelopment area (RDA) under provisions that allow such signs to be treated as an on-premises display, as specified.

Fiscal Impact:

• Unknown costs for Caltrans to review local requests in the 2024 calendar year to allow certain advertising displays to remain in place and be considered on-premise displays for good cause, to monitor compliance for two additional years, and respond to federal oversight and enforcement in cases of noncompliance. Caltrans costs for each review would likely be in the low tens of thousands of dollars and overall costs could range from minor to potentially over $150,000, depending on the number of local agency requests for extensions that are proposed, and the frequency of noncompliance resulting from federal oversight and enforcement. (State Highway Account)

Background:

The OAA regulates the size, illumination, orientation, and location of advertising displays adjacent to and within specified distances of interstate or primary highways. The OAA, with some exceptions, specifically prohibits the placement of any advertising display on property adjacent to a section of landscaped highway if the display is designed to be viewed primarily by persons traveling on the highway. State law generally does not apply to “on premise” advertising displays, including those that advertise the sale, lease, or exchange of property upon which it is placed and those that advertise the business conducted, services rendered, or the goods produced or sold on the property. Apart from certain safety requirements in state law, the regulation of “on-premise” displays is a local matter. Caltrans also administers the federal Outdoor Advertising Control (OAC) program, which imposes similar restrictions to the OAA on the size, illumination, orientation, spacing, and location of advertising displays adjacent to and within specified distances of interstate or primary highways. If Caltrans fails to properly administer the federal program, the state is subject to sanction that would reduce federal highway funding allocations by 10%.

Existing law provides for a number of exemptions to the OAA in specified jurisdictions, and for certain advertising displays authorized by a local ordinance that are located on the premises of a sports arena, as specified. Prior to the dissolution of RDAs, the OAA allowed a display located within the boundaries of an RDA project area to be considered an on-premises display for a period of 10 years, or upon completion of the project, whichever occurs first. Existing law, as enacted by SB 684 (Hill), Chap. 544/2013, allows a display advertising businesses and activities developed within the boundaries of a former RDA to remain in place and be considered an on-premises display if the display is located within the boundaries of a project, was constructed on or before January 1, 2012, and does not cause the reduction of federal aid highway funds, as specified. Existing law authorizes such an advertising display to remain until January 1, 2023, after which date the display must be removed, and authorizes a city or county, for good cause, to request an extension from Caltrans beyond that date, not to exceed the expiration of the RDA project area. “Good cause” for these purposes means that the city or county finds that the display has had a positive economic impact on the project area and provides a public benefit, there have been no violations by the owner or operator in the previous 10 years, and there has been compliance with all other standards, as specified.

Proposed Law:

AB 1175 would allow a city or county to request, from January 1, 2024 until January 1, 2025, that an advertising display in a former RDA project area that was in use as of December 31, 2022 be allowed to remain for a two-year extension that would treat the display as an on-premises display, as specified, and authorize Caltrans to provide the extension upon a finding of good cause.

Related Legislation:

AB 1415 (Santiago), which is currently pending in this Committee, would expand the geographic areas in the City of Los Angeles that are subject to an exemption from the OAA for advertising displays that meet specified conditions.

AB 1673 (Pacheco/Santiago), which is currently pending on the Senate Floor, would clarify the circumstances in which an advertising display may be relocated and/or converted to an electronic billboard, pursuant to a relocation agreement between a sign owner and a local entity

Staff Comments:

The FHWA periodically audits Caltrans to ensure that it is fulfilling its duties as administrator of the federal laws and regulations regarding billboards. Its audit report from July of 2022 was critical of many California advertising displays, specifically calling out displays erected pursuant to the redevelopment agency display exemption. FHWA’s review threatens the reduction of federal aid highway funds, absent action by Caltrans. It also raises safety concerns related to the placement of billboards within the right of way of California public highways in violation of federal requirements and contrary to standards outlined in the California Design Manual that must be addressed. In response, Caltrans committed to numerous actions to address the FHWA’s concerns, including not granting any extension for redevelopment agency signs, which seems contrary to the intent of this bill. Caltrans indicates that it is in continued discussions with the FHWA over enforcement of approximately 60 advertising displays authorized in RDA project areas, implying that there may be some flexibility afforded to allow these billboards to remain in place for a limited period of time without jeopardizing federal funding. Staff notes that the bill provides flexibility for Caltrans to deny a good-cause request to allow a display to remain in place for two additional years.

The fiscal impact of this bill would depend upon the number of local agency requests for extensions are proposed in the 2024 calendar year, and the frequency of noncompliance resulting from federal oversight and enforcement over the two-year extended period, including inspection of those sites and a determination of consistency with federal laws, regulations, and agreements. As noted above, these impacts could be minor, but may require additional staff resources.

-- END --

SENATE COMMITTEE ON TRANSPORTATION

Senator Lena Gonzalez, Chair

2023 - 2024 Regular

Bill No: Hearing Date: 6/27/2023

SUBJECT:

DIGEST: This bill authorizes Caltrans to extend the date that an advertising display in areas that were formerly redevelopment areas must be removed by up to five years.

ANALYSIS:

Existing law:

1. Provides, under the Outdoor Advertising Act (OAA), for the regulation by Caltrans of an advertising display, as defined, within view of public highways. The OAA regulates the placement of an off-premises advertising display along highways that generally advertises business conducted or services rendered or goods produced or sold at a location other than the property where the display is located.
2. Provides that the OAA does not apply to an on-premises advertising display.
3. Provides that “on-premises advertising displays” means any structure, housing, sign, device, figure, statuary, painting, display, message placard, or other contrivance, or any part thereof, that has been designed, constructed, created, intended, or engineered to have a useful life of 15 years or more, and intended or used to advertise, or to provide data or information in the nature of advertising, for any of the following purposes:
   1. To designate, identify, or indicate the name or business of the owner or occupant of the premises upon which the advertising display is located.
   2. To advertise the business conducted, services available or rendered, or the goods produced, sold, or available for sale, upon the property where the advertising display has been lawfully erected.
4. States that until January 1, 2023, the OAA shall consider an advertising display developed as part of and within the boundary limits of a redevelopment agency project, as those boundaries existed on December 29, 2011, as an on-premises advertising display if it meets certain criteria for good cause, which includes, among others:
   1. Advertises those businesses and activities developed within the former redevelopment agency project area boundaries, as those boundaries existed on December 29, 2011;
   2. Is located within the boundary limits of the project;
   3. Was constructed, was under construction, or had been approved for construction by the designated agency of the project on or before January 1, 2012;
   4. Does not cause the reduction in federal aid highway funds.

1. Provides that the applicable city, county, or city and county shall be responsible for ensuring that an advertising display is consistent with this section and provides a public benefit. This provision shall not be construed to preclude any enforcement authority of the department under the OAA. (California Business and Professions Code § 5273)
2. Authorizes, on and after January 1, 2022, the applicable city, county, or city and county to request, for good cause, from Caltrans an extension beyond January 1, 2023, not to exceed the expiration of the redevelopment project area, as specified. (California Business and Professions Code § 5273)
3. Dissolves redevelopment agencies and institutes a process for winding down their activities. (California Health and Safety Code § 34170)
4. Requires Caltrans to administer the federal Outdoor Advertising Control (OAC) program, which has restrictions similar to California’s OAA program, including maximum sign size, sign spacing, location, illumination, and content. If the state fails to properly administer the federal program, the state shall lose 10% of its federal highway funding.

This bill:

1. Extends the date by which an extension for the continued use of the advertising display may be requested until January 1, 2025.
2. Authorizes Caltrans to grant an extension for up to five years upon a finding of good cause, as specified.

COMMENTS:

1. Author’s Statement. “My bill, AB 1175 allows existing and permitted signs that where once located in a redevelopment area to remain in place. Previous legislation I supported on the issue has now expired, local governments such as Cities and Counties rely on these permitted signs to attract people to business and shopping areas to engage in commerce. Now that we are out of the COVID-19 pandemic, revenue generated from local taxes is especially critical for local governments to keep their programs and services in operation.”
2. An Authorization. The bill authorizes Caltrans to grant an extension for good cause, meaning that the owner and operator of the sign have complied with all standards adopted by the city, county and Caltrans.
3. Poking the Bear. The Federal Highway Administration (FHWA) periodically audits Caltrans to ensure that it is fulfilling its duties as administrator of the federal laws and regulations regarding billboards. In its latest report^[1] the FHWA was critical of many California advertising displays, specifically calling out displays erected pursuant to the redevelopment agency display exemption. FHWA’s review threatens the reduction of Federal-aid highway funds pursuant to 23 U.S.C. 131 absent action by Caltrans. It also raises safety concerns related to the placement of billboards within the right of way of California public highways in violation of federal requirements and contrary to standards outlined in the California Design Manual that must be addressed. In response Caltrans committed to numerous actions to address the FHWA’s concerns, including not granting any extension for redevelopment agency signs.

The FHWA’s concerns seem to have had an impact on the Newsom Administration. In vetoing another billboard bill last year (SB 1309, Durazo), the Governor said the following:

While I appreciate that revenues generated by these billboards provide certain local economic benefits, this bill disregards recent correspondence from the Federal Highway Administration (FHWA), which indicates that the state's transportation funding is at risk due to federal regulations restricting the use of this kind of advertisement.

Caltrans notes that this bill impacts around 60 signs and that it has no data on the revenue generated by these signs.

There would seem to be no reason to move this bill given the specific FHWA concerns over redevelopment agency billboards and the underlying California law, but Caltrans is in discussions with FHWA over enforcement of these provisions, implying that there may be some hope that these billboards could remain for a bit longer without the state incurring huge revenue losses or otherwise incurring their admonishment. As Caltrans has the relationship with the FHWA and surely knows the cost of non-compliance with FHWA’s requirements, it may be sensible to move the bill and provide some short period of time to conclude those discussions. The author and committee may wish to consider reducing the extension to two years, which should be sufficient.

1. Conflicting Interests. At a time when the opportunities for driver distraction have never been greater, concerns about digital billboards may seem to be focusing on only one piece of a many part problem. But these billboards earn millions of dollars a year because they are effective attention-getters. The FHWA audit reveals a fundamental tension between the strong private interest to earn money from digital advertising displays and the broader public interest in reducing highway distractions and thereby improve safety. This broader public interest, combined with California’s financial interest, makes complying with our FHWA obligations a higher priority.

Related Legislation:

AB 476 (Villapudua) of 2023. The OAA authorizes displays on property zoned commercial or industrial, as specified. This bill would authorize displays on public property for noncommercial public messages and announcements, as specified. This bill is pending in the Senate.

AB 1673 (Pacheco) of 2023. The bill would explicitly state, among other things, that the removal or relocation of advertising displays by specific types of local governmental action constitutes "development in a planned manner without expenditure of public funds." Would exempt a relocated advertising display or an existing display that is changed to a message center in accordance with a relocation agreement between the display owner, the permit owner, or a local entity, provided that this does not lead to a net increase in advertising displays on landscaped freeway segments. This bill is pending in the Senate.

SB 1309 (Durazo) of 2022. This bill would have extended the special provisions authorizing outdoor advertising for sports arenas to January 1, 2028, as specified, and requires the Caltrans prescreening for new advertising signs to determine compliance with federal law and California’s obligations to the Federal Highway Administration. (Vetoed by the Governor)

AB 3168 (Rubio), Chapter 926 of 2018. Revised the OAA to facilitate the relocation and conversion of advertising displays adjacent to freeways. Specifically, the bill narrowed the definition of landscaped freeway and allowed displays to be relocated, increased in height, or converted to a message center, if there is not a net increase in the number of displays statewide or a reduction of federal highway funds.

AB 700 (Jones-Sawyer), Chapter 337 of 2017. Extended the deadline by an additional two years (January 1, 2019 to January 1, 2021) for a sports arena advertising display to be authorized by local ordinance in order to qualify for an OAA exemption.

SB 1199 (Hall), Chapter 869 of 2016. Authorized two existing advertising displays along Interstate 405 in the City of Inglewood to be considered on premise displays, until January 1, 2023, and therefore exempt from the OAA. This authorization is valid as long as it does not cause a reduction of federal transportation funds.

AB 1373 (Santiago), Chapter 853 of 2016. Provided an exemption from regulations of the OAA for signs allowed by a City of Los Angeles ordinance in relation to the number and location of billboards in an area bounded by West 8th Street on the northeast, South Figueroa Street on the southeast, Interstate 10 on the southwest, and State Route 110 on the northwest, and a small, adjacent parcel if certain conditions are satisfied.

SB 684 (Hill), Chapter 544, Statutes of 2013. Amended the redevelopment agency exemption to OAA to reflect the elimination of redevelopment agencies.

SB 694 (Correa), Chapter 545, Statutes of 2013. Exempted, from the OAA, advertising displays at a publicly owned multi-modal transit facility (MTF) that is to serve as a station for the high-speed train system, as specified, and requires revenues from the advertising display to be used to support the construction, operation, and maintenance of the MTF.

SB 31 (Padilla), Chapter 542 of 2013. Established the current authorization that allows arenas to display advertising for products, goods, or services sold on premises as well as part of a sponsorship marketing plan if the arena is on public land and has a capacity of 15,000 or more seats. The bill established the 2019 deadline for these arenas to qualify for the OAA exemption by obtaining local authorization.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

From the Assembly Appropriations Committee:

1. Costs of an unknown, but potentially significant amount, in excess of $150,000, to Caltrans to approve requested OAA exemption extensions, depending on the number of local jurisdictions that submit such requests (State Highway Account).
2. To the extent Caltrans is required to provide an on-premises extension to a display that is potentially in violation of the OAA, this bill could jeopardize a significant amount of federal highway funding.

POSITIONS: (Communicated to the committee before noon on Wednesday,

June 21, 2023.)

SUPPORT:

OPPOSITION:

California State Outdoor Advertising Association

-- END --

1. U.S. Department of Transportation, Federal Highway Administration – Outdoor Advertising Review, Final Report; June 16, 2022. ↑

ASSEMBLY THIRD READING

ATR Bill Id:AB 1175

Author:(Quirk-Silva)

As Amended Ver:May 18, 2023

Majority vote

SUMMARY

This bill would recast a former redevelopment agency exemption to the Outdoor Advertising Act (OAA) to reflect the elimination of redevelopment agencies by allowing an applicable city, county, or city and county to make a good cause request to the Department of Transportation (Caltrans or department) between January 1, 2024, to January 1, 2025, a five-year extension for treating a display in a redevelopment agency project (as those boundaries existed), as an on-premises display if the display meets the criteria for a finding of good cause, and was in use on December 31, 2022, and complies with specified provisions of the OAA.

Major Provisions

1. Provides that notwithstanding the dissolution of a state redevelopment agency, an advertising display advertising the businesses and activities developed within the boundary limits of, and as a part of, an individual redevelopment agency project, as those boundaries existed on December 29, 2011, and which was in use as of December 31, 2022, may continue to exist and be considered an on-premises display, if the advertising display meets all of the following conditions:
   1. The advertising display is located within the boundary limits of the former project.
   2. The advertising display was constructed on or before January 1, 2012.
2. States that an advertising display may remain until January 1, 2023, after which date the display shall be removed, unless it otherwise qualifies as a lawful advertising display pursuant to this chapter, without the payment of any compensation to the owner or operator. From January 1, 2024, to January 1, 2025, the applicable city, county, or city and county may for good cause request from Caltrans a five-year extension that would treat the display as an on-premises display pursuant to subdivision a). The department may provide the extension upon a finding of good cause.
3. States "Good cause" for the purpose of this bill shall mean all of the following are satisfied:
   1. There has been a finding by the applicable city, county, or city and county that the advertising display has had a positive economic impact on the redevelopment project area and provides a public benefit.
   2. There has been no final determination, either by a final administrative decision or by operation of law, of any violation by the display owner or operator of this section or of any applicable illumination standards in the previous 10 years that has not been corrected within 30 days of the date of mailing of a violation notice to the owner or operator by the department.
   3. There has been compliance by the owner and operator with all other standards adopted by the applicable city, county, or city and county, or by the Caltrans.
4. Clarifies that if the United States Department of Transportation, the Federal Highway Administration, or any other applicable federal agency to the state provide notice that the operation of that display will result in the reduction of federal aid highway funds, then the authorization of that display shall cease and the display owner shall remove all advertising copy from the display within 60 days after the state notifies the display owner of the receipt of the federal notice.
5. Specifies that failure to remove the advertising copy, as specified, shall result in a civil fine of $10,000 per day until the advertising copy is removed. Caltrans shall not assume any liability in connection with the cessation of operation or removal of an advertising display.
6. Provides the applicable city, county, or city and county shall be responsible for ensuring that an advertising display is consistent with this exemption and provides a public benefit. This bill shall not be construed to preclude any enforcement authority of Caltrans under the OAA.
7. Makes technical and clarifying changes.

COMMENTS

Background.

Since 1933, Caltrans has enforced the State Outdoor Advertising Act (California Bus & Prof Code Section 5200 et. Seq.) that contains comprehensive standards and regulations for outdoor advertising displays (aka, "billboards'). The department regulates the placement of outdoor advertising displays visible from California highways. Outdoor advertising displays require a permit from Caltrans if they are within 660 feet from the edge of the right-of-way and viewed primarily by persons traveling on the main-traveled way of the freeway. In order to enforce the requirements for outdoor advertising under the Federal Highway Beautification Act and the State's OAA, Caltrans regularly inspects freeways and highways that are part of the National Highway System.

The OAA regulates the size, illumination, orientation, and location of advertising displays adjacent to and within specified distances of interstate or primary highways, and, with some exceptions, specifically prohibits any advertising display from being placed or maintained on property adjacent to a section of landscaped highway.

The Act generally does not apply to "on premises" advertising displays, which include those
advertising the sale of the property upon which it is placed or that advertise the business
conducted, services rendered, or goods produced or sold on the property. Local governments regulate on-premises displays, except for certain safety requirements. Existing law includes a number of exceptions to the OAA and assigns department the responsibility of reviewing and permitting signs that qualify for these exceptions.

Caltrans Permits after the Elimination of Redevelopment Agencies. As mentioned earlier, Caltrans enforces the OAA, which includes activities such as maintaining a list of landscaped freeways, issuing permits for signs allowed by statute to exist, and informing owners of non-compliant signs. Before the elimination of RDAs (ABX1 26 (Blumenfield) Chapter 5, Statutes of 2011 and ABX1 27 (Blumenfield), Chapter 6, Statutes of 2011 the OAA allowed for advertising signs (billboards) that are located within the boundaries of a redevelopment project area to be considered on-premises sign anywhere within the limits of the project if the project area is contiguous or is separated only by a public highway or public facilities developed or relocated for inclusion in the project and for a period not to exceed 10 years or the completion of the project, whichever occurs first. The dissolution of redevelopment agencies raised questions about how existing signs would be treated by Caltrans because there was no longer a redevelopment agency to negotiate an extension with Caltrans. At the time, Caltrans had issued approximately 95 permits for advertising displays along landscaped freeways in redevelopment project areas throughout the state.

On April 11, 2013, Caltrans issued a "Notice of Redevelopment Display Status Change." The notice indicated that successor agency permission will allow continued operation of the previously approved display, but that no new exemptions or extensions will be given absent legislative action. In essence, with the elimination of redevelopment agencies, Caltrans had been unsure how to proceed. Caltrans had not issued any fines to sign owners with expired permits. Instead, Caltrans indicated that it was waiting for further direction from the Legislature regarding the state's position on these specific sign permits.

SB 684 (Hill), Chapter 544, Statutes of 2013, allowed the continuation of this on-premises

RDA exemption until January 1, 2023, if the advertising display met specified criteria. The bill authorized, on and after January 1, 2022, the applicable city, county, or city and county to request from Caltrans an extension for good cause, as specified, beyond January 1, 2023, not to exceed the expiration of the redevelopment project area. The measure required a specific certification from a local agency authorizing the advertising displays, as defined. Supporters of SB 684 asserted that the RDA exemption to the OAA allowed businesses in less desirable areas to market their products and services to freeway users who might not have done so otherwise due to the area's reputation for blight. The success of these billboards has helped the struggling businesses in the project area.

It should be noted that 49 advertising displays, as permitted by SB 684 of 2013, still exist along landscaped freeways in former redevelopment project locations across the state. Of those, 10 are in compliance with both state and federal laws.

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. The 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. If the state fails to properly administer the federal program, the state is subject to a sanction that would reduce its federal highway funding allocations by 10%.

FHWA periodically audits Caltrans. The July 16, 2022, audit of Caltrans by the Federal Highway Administration (FHWA) found that displays in arenas and RDA zones may not be in compliance with federal law, which is more restrictive than state law governing advertising displays. FHWA recommended Caltrans pursue compliance with federal law and, in some cases, pursue the removal of signs to not jeopardize losing federal highway funding.

According to the Author

According to the author, this bill "allows existing and permitted signs that were once located in a redevelopment area to remain in place. Legislation on this issue that I previously supported has now expired, and local governments such as cities and counties rely on these permitted signs (billboards) to attract people to business and shopping areas to engage in commerce. Now that we are out of the COVID-19 pandemic, revenue generated from local taxes is especially critical for local governments to keep their programs and services in operation."

It should be noted that this bill does not authorize any new signage, but instead seeks to retain the investment-backed expectations of public and private entities that either own or operate existing signs in former redevelopment areas.

Arguments in Support

The Gardens Casino writes in support, "The location of an advertising display that advertises our Casino was considered "on premises" and in compliance with the OAA until

January 1, 2023, because it was located in an existing redevelopment area. The sign has been permitted to be in this location since 2001. Taxes paid by the Casino generates over 70% of the General Fund revenue for the City of Hawaiian Gardens. A Further extension of the previous deadline (January 1, 2023) will avoid harmful and unnecessary disruption to economic activities within the City of Hawaiian Gardens and many other cities across the state."

Arguments in Opposition

This bill is opposed by Scenic Los Angeles, which argues "This bill will perpetuate hundreds of legally questionable billboards and jeopardize billions of dollars in Federal Highway matching funds."

FISCAL COMMENTS

According to the Assembly Appropriations Committee, 1) Costs of an unknown, but potentially significant amount, in excess of $150,000, to Caltrans to approve requested OAA exemption extensions, depending on the number of local jurisdictions that submit such requests (State Highway Account). 2) To the extent Caltrans provides an on-premises extension to a display that is potentially in violation of the OAA, this bill could jeopardize a significant amount of federal highway funding.

VOTES

ASM GOVERNMENTAL ORGANIZATION: 22-0-0

YES: Santiago, Lackey, Aguiar-Curry, Berman, Bryan, Cervantes, Megan Dahle, Davies, Garcia, Gipson, Jones-Sawyer, Low, Mathis, McCarty, McKinnor, Jim Patterson, Quirk-Silva, Ramos, Robert Rivas, Blanca Rubio, Ta, Villapudua

ASM APPROPRIATIONS: 11-0-5

YES: Holden, Bryan, Calderon, Wendy Carrillo, Mike Fong, Hart, Lowenthal, Papan, Pellerin, Weber, Ortega

ABS, ABST OR NV: Megan Dahle, Dixon, Mathis, Robert Rivas, Sanchez

UPDATED

VERSION: May 18, 2023

CONSULTANT: Eric Johnson / G.O. / (916) 319-2531 FN: 0000922

Date of Hearing: May 17, 2023

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Chris Holden, Chair

ABPCA Bill Id:AB 1175

Author:(Quirk-Silva) – As Amended Ver:May 1, 2023

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill allows a local jurisdiction to request a five-year extension from the Department of Transportation (Caltrans) to treat specified advertising displays as an on-premises display.

Specifically, this bill:

1. Allows, from January 1, 2024, to January 1, 2025, a local jurisdiction to request Caltrans continue to treat a display in a redevelopment agency (RDA) project as an on-premises display if the display meets the criteria for a finding of good cause, was in use on December 31, 2022, and complies with certain provisions of the Outdoor Advertising Act (OAA).
2. Requires Caltrans to provide the requested extension upon a finding of good cause.
3. Alters existing good cause criteria to mean instances when Caltrans has not made a final determination of whether an OAA violation has occurred, instead of instances when no violation has occurred.

FISCAL EFFECT:

1. Costs of an unknown, but potentially significant amount, in excess of $150,000, to Caltrans to approve requested OAA exemption extensions, depending on the number of local jurisdictions that submit such requests (State Highway Account).
2. To the extent Caltrans is required to provide an on-premises extension to a display that is potentially in violation of the OAA, this bill could jeopardize a significant amount of federal highway funding.

COMMENTS:

1. Purpose. According to the author, this bill “allows existing and permitted signs that were once located in [an RDA] to remain in place.” The author notes “cities and counties rely on these permitted signs (billboards) to attract people to business and shopping areas to engage in commerce” as “revenue generated from local taxes is especially critical for local governments to keep their programs and services in operation.”
2. Support and Opposition. This bill is supported by The Gardens Casino, which notes over 100 outdoor billboards statewide were deemed out of compliance with the OAA by Caltrans and issued notices of violation. The Gardens Casino argues their “citation was triggered because the sign is in [an RDA] and on January 1, 2023, the [RDA] expires” so “further extension of this deadline will avoid harmful and unnecessary disruption of economic activities within the City of Hawaiian Gardens and many other cities across the state.”

This bill is opposed by Scenic Los Angeles, which argues “This bill will perpetuate hundreds of legally questionable billboards and jeopardize billions of dollars in Federal Highway matching funds.”

1. Background.

OAA. An existing combination of federal and state law govern the placement and operation of all outdoor advertising in California. Caltrans is the administrator of the federal Outdoor Advertising Control program, which imposes similar restrictions as the state OAA on the size, illumination, orientation, and location of advertising displays adjacent to and within specified distances of interstate or primary highways. If the state fails to properly administer the federal program, the state is subject to a sanction reducing federal highway funding allocations by 10%.

On-premises Display. The OAA generally does not apply to an “on-premises” advertising display, which includes displays advertising the sale of the property upon which the display is placed or the business conducted, services rendered, or goods sold on the property. Instead, local governments generally regulate on-premises displays. Prior to the elimination of RDAs, the OAA allowed a display located within the boundaries of an RDA project to be considered an on-premises sign for a period of 10 years or the completion of the project, whichever occurred first.

SB 684 (Hill), Chapter 544, Statutes of 2013, allowed the continuation of this on-premises RDA exemption until January 1, 2023, if the advertising display met specified criteria. SB 684 also allowed, beginning January 1, 2022, an applicable local jurisdiction with “good cause” to request an exemption extension from Caltrans beyond January 1, 2023. This bill revises this prior allowance to instead allow, from January 1, 2024, to January 1, 2025, an applicable local jurisdiction to request a five-year extension for Caltrans to treat the display as an on-premises display. This bill requires Caltrans to provide the extension upon a finding of good cause, which this bill revises to mean, regarding a violation of the OAA, that no final determination of an OAA violation has been made.

Federal Audit. The July 16, 2022, audit of Caltrans by the Federal Highway Administration (FHWA) found that displays in arenas and RDA zones may not be in compliance with federal law, which is more restrictive than state law governing advertising displays. FHWA recommended Caltrans pursue compliance with federal law and, in some cases, pursue the removal of signs to not jeopardize losing federal highway funding.

1. Related Legislation. AB 1415 (Santiago) expands an existing OAA exemption in specified geographic areas in the City of Los Angeles for certain advertising displays. AB 1415 is pending hearing in this committee.

AB 1673 (Pacheco) defines “relocation,” “relocated display,” and related terms under the OAA. AB 1673 is pending hearing in this committee.

1. Prior Legislation. SB 1309 (Durazo) would have reauthorized and revised exceptions to the OAA for specified advertising displays associated with a professional sports arena. SB 1309 was vetoed by Governor Newsom, who stated:

While I appreciate that revenues generated by these billboards provide certain local economic benefits, this bill disregards recent correspondence from the [FHWA], which indicates that the state’s transportation funding is at risk due to federal regulations restricting the use of this kind of advertisement.

Caltrans has been officially notified that the existing arena billboards do not comply with federal law and exemptions in state law do not provide Caltrans with the ability to maintain effective control of outdoor advertising. The potential impact to California of falling out of FHWA compliance could be a reduction of over $400 million of federal transportation funding annually.

Analysis Prepared by: Irene Ho / APPR. / (916) 319-2081

Date of Hearing: April 26, 2023

ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION

Miguel Santiago, Chair

ABPCA Bill Id:AB 1175 (

Author:Quirk-Silva) – As Amended Ver:March 14, 2023

SUBJECT: Outdoor advertising displays: redevelopment agency project areas

SUMMARY: This bill would further recast a former redevelopment agency exemption to the Outdoor Advertising Act (OAA) to reflect the elimination of redevelopment agencies by allowing an applicable city, county, or city and county to make a good cause request to the Department of Transportation (Caltrans or department) between January 1, 2024, to January 1, 2025, a 10-year extension for treating a display in a redevelopment agency project (as those boundaries existed), as an on-premises display if the display meets the criteria for a finding of good cause, and was in use on December 31, 2022, and complies with specified provisions of the OAA. Specifically, this bill:

1) Provides that notwithstanding the dissolution of a state redevelopment agency, an advertising display advertising the businesses and activities developed within the boundary limits of, and as a part of, an individual redevelopment agency project, as those boundaries existed on December 29, 2011, and which was in use as of December 31, 2022, may continue to exist and be considered an on-premises display, if the advertising display meets all of the following conditions:

a) The advertising display is located within the boundary limits of the former project.

b) The advertising display was constructed on or before January 1, 2012.

2) States that an advertising display may remain until January 1, 2023, after which date the display shall be removed, unless it otherwise qualifies as a lawful advertising display pursuant to this chapter, without the payment of any compensation to the owner or operator. From January 1, 2024, to January 1, 2025, the applicable city, county, or city and county may for good cause request from Caltrans a 10-year extension that would treat the display as an on-premises display pursuant to subdivision (a). The department shall provide the extension upon a finding of good cause.

3) States “Good cause” for the purpose of this bill shall mean all of the following are satisfied:

a) There has been a finding by the applicable city, county, or city and county that the advertising display has had a positive economic impact on the redevelopment project area and provides a public benefit.

b) There has been no final determination, either by a final administrative decision or by operation of law, of any violation by the display owner or operator of this section or of any applicable illumination standards in the previous 10 years that has not been corrected within 30 days of the date of mailing of a violation notice to the owner or operator by the department.

c) There has been compliance by the owner and operator with all other standards adopted by the applicable city, county, or city and county, or by the Caltrans.

4) Clarifies that if the United States Department of Transportation, the Federal Highway Administration, or any other applicable federal agency to the state provide notice that the operation of that display will result in the reduction of federal aid highway funds, then the authorization of that display shall cease and the display owner shall remove all advertising copy from the display within 60 days after the state notifies the display owner of the receipt of the federal notice.

5) Specifies that failure to remove the advertising copy, as specified, shall result in a civil fine of $10,000 per day until the advertising copy is removed. Caltrans shall not assume any liability in connection with the cessation of operation or removal of an advertising display.

6) Clarifies that if the owner or operator of the display is not indicted on the display, the state is only required to send the notice to the applicable city, county, or city and county.

7) Provides the applicable city, county, or city and county shall be responsible for ensuring that an advertising display is consistent with this exemption and provides a public benefit. This bill shall not be construed to preclude any enforcement authority of Caltrans under the OAA.

8) Makes technical and clarifying changes.

EXISTING LAW:

1) Provides, under the Outdoor Advertising Act (OAA), for the regulation by Caltrans of an advertising display, as defined, within view of public highways. The OAA regulates the placement of an off-premises advertising display along highways that generally advertises business conducted or services rendered or goods produced or sold at a location other than the property where the display is located.

2) Provides that the OAA does not apply to an on-premises advertising display.

3) Provides, “on-premises advertising displays” means any structure, housing, sign, device, figure, statuary, painting, display, message placard, or other contrivance, or any part thereof, that has been designed, constructed, created, intended, or engineered to have a useful life of 15 years or more, and intended or used to advertise, or to provide data or information in the nature of advertising, for any of the following purposes:

a) To designate, identify, or indicate the name or business of the owner or occupant of the premises upon which the advertising display is located.

b) To advertise the business conducted, services available or rendered, or the goods produced, sold, or available for sale, upon the property where the advertising display has been lawfully erected.

4) States that until January 1, 2023, the OAA shall consider an advertising display developed as part of and within the boundary limits of a redevelopment agency project, as those boundaries existed on December 29, 2011, as an on-premises advertising display if it meets certain criteria for good cause, which includes, among others:

a) Advertises those businesses and activities developed within the former redevelopment agency project area boundaries, as those boundaries existed on December 29, 2011;

b) Is located within the boundary limits of the project;

c) Was constructed, was under construction, or had been approved for construction by the designated agency of the project on or before January 1, 2012;

d) Does not cause the reduction in federal aid highway funds.

5) Provides that the applicable city, county, or city and county shall be responsible for ensuring that an advertising display is consistent with this section and provides a public benefit. This provision shall not be construed to preclude any enforcement authority of the department under the OAA. (California Business and Professions Code § 5273)

6) Authorizes, on and after January 1, 2022, the applicable city, county, or city and county to request, for good cause, from the Caltrans an extension beyond January 1, 2023, not to exceed the expiration of the redevelopment project area, as specified. (California Business and Professions Code § 5273)

7) Defines “Landscaped freeway” to mean a freeway section that is improved by the planting at least on one side or on the median of the freeway right-of-way of lawns, trees, shrubs, flowers, or other ornamental vegetation requiring reasonable maintenance. “Except as otherwise provided in this Act, no advertising display may be 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.” Several sections of Article 8 detail exceptions to allow outdoor advertising signs within a landscaped freeway section. (California Business and Professions Code § 5440)

8) Dissolves redevelopment agencies and institutes a process for winding down their activities. (California Health and Safety Code § 34170)

FISCAL EFFECT: This bill is keyed fiscal by Legislative Counsel.

COMMENTS:

Purpose of the bill. According to the author’s office, “AB 1175 allows existing and permitted signs that were once located in a redevelopment area to remain in place. Legislation on this issue that I previously supported has now expired, and local governments such as cities and counties rely on these permitted signs (billboards) to attract people to business and shopping areas to engage in commerce. Now that we are out of the COVID-19 pandemic, revenue generated from local taxes is especially critical for local governments to keep their programs and services in operation.”

It should be noted that this bill does not authorize any new signage, but instead seeks to retain the investment-backed expectations of public and private entities that either own or operate existing signs in former redevelopment areas.

Background.

Since 1933, Caltrans has enforced the State Outdoor Advertising Act (California Bus & Prof Code § 5200 et. Seq.) that contains comprehensive standards and regulations for outdoor advertising displays (aka, “billboards’). The department regulates the placement of outdoor advertising displays visible from California highways. Outdoor advertising displays require a permit from Caltrans if they are within 660 feet from the edge of the right-of-way and viewed primarily by persons traveling on the main-traveled way of the freeway. In order to enforce the requirements for outdoor advertising under the Federal Highway Beautification Act and the State's OAA, Caltrans regularly inspects freeways and highways that are part of the National Highway System.

The OAA regulates the size, illumination, orientation, and location of advertising displays adjacent to and within specified distances of interstate or primary highways, and, with some exceptions, specifically prohibits any advertising display from being placed or maintained on property adjacent to a section of landscaped highway.

The Act generally does not apply to “on premises” advertising displays, which include those
advertising the sale of the property upon which it is placed or that advertise the business
conducted, services rendered, or goods produced or sold on the property. Local governments regulate on-premises displays, except for certain safety requirements. Existing law includes a number of exceptions to the OAA and assigns department the responsibility of reviewing and permitting signs that qualify for these exceptions.

RDA Background. Historically, the Community Redevelopment Law allowed a local government to establish a redevelopment area and capture all of the increase in property taxes generated within the area over a period of decades. These tax revenues were intended to address the blighted nature of a project area, and if used effectively, therefore, should have eventually ended the blight and become unnecessary. Because of this, over time these projects areas were given expiration dates, generally up to 40 years following their inception, until which they were able to collect tax revenues and pay off debt.

In 2011, facing a severe budget shortfall, the Governor Brown proposed eliminating redevelopment agencies in order to deliver more property taxes to other local agencies.

Ultimately, the Legislature approved and the Governor signed two measures, ABX1 26 (Blumenfield) and ABX1 27 (Blumenfield), which together dissolved redevelopment agencies as they existed at the time and established procedures for winding down agencies, paying off enforceable obligations, and disposing of agency assets. In addition, ABX1 26 established successor agencies, typically the city that established the agency, to take control of all redevelopment agency assets, properties, and other items of value.

Caltrans Permits after the Elimination of Redevelopment Agencies. As mentioned earlier, Caltrans enforces the OAA, which includes activities such as maintaining a list of landscaped freeways, issuing permits for signs allowed by statute to exist, and informing owners of non-compliant signs. Before the elimination of RDAs, the OAA allowed for advertising signs (billboards) that are located within the boundaries of a redevelopment project area to be considered on-premises sign anywhere within the limits of the project if the project area is contiguous or is separated only by a public highway or public facilities developed or relocated for inclusion in the project and for a period not to exceed 10 years or the completion of the project, whichever occurs first. The dissolution of redevelopment agencies raised questions about how existing signs would be treated by Caltrans because there was no longer a redevelopment agency to negotiate an extension with Caltrans. At the time, Caltrans had issued approximately 95 permits for advertising displays along landscaped freeways in redevelopment project areas throughout the state.

On April 11, 2013, Caltrans issued a "Notice of Redevelopment Display Status Change." The notice indicated that successor agency permission will allow continued operation of the previously approved display, but that no new exemptions or extensions will be given absent legislative action. In essence, with the elimination of redevelopment agencies, Caltrans had been unsure how to proceed. Caltrans had not issued any fines to sign owners with expired permits. Instead, Caltrans indicated that it was waiting for further direction from the Legislature regarding the state’s position on these specific sign permits.

In 2013, the Legislature passed and Governor Brown signed SB 684 (Hill), Chapter 544, Statutes of 2013. The bill provided that an advertising display advertising businesses and activities within the boundary limits of, and as a part of, an individual redevelopment agency project, as the project boundaries existed on December 29, 2011, may remain and be considered an on-premises display, until January 1, 2023, if the advertising display meets specified criteria. The bill authorized, on and after January 1, 2022, the applicable city, county, or city and county to request from Caltrans an extension for good cause, as specified, beyond January 1, 2023, not to exceed the expiration of the redevelopment project area. The measure required a specific certification from a local agency authorizing the advertising displays, as defined.

According to the author of SB 684 (Hill), the bill did not authorize any new signage, but instead sought to retain the investment-backed expectations of public and private entities that either own or operate existing signs in former redevelopment areas. Due to the elimination of redevelopment agencies, one of the unintended consequences is that the sign agreements, formerly authorized by redevelopment agencies, can no longer be extended because there is no redevelopment agency to authorize the extension.

Supporters of SB 684 asserted that the redevelopment exemption to the OAA allowed businesses in less desirable areas to market their products and services to freeway users who might not have done so otherwise due to the area's reputation for blight. The success of these billboards has helped the struggling businesses in the project area.

According to the sponsor of this bill, under the terms of the recently sunsetted legislation (SB 684), Caltrans started to find many outdoor billboards across the state to be in violation of OAA in the fall of 2022 and in some cases issued a Notice of Violation (NOV).

Additionally, it should be noted that 49 advertising displays, as permitted by SB 684 of 2013, still exist along landscaped freeways in former redevelopment project locations across the state. Of those, 10 are in compliance with both state and federal laws.

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. The 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. If the state fails to properly administer the federal program, the state is subject to a sanction that would reduce its federal highway funding allocations by 10%.

FHWA periodically audits Caltrans. Caltrans is periodically audited by the Federal Highway Administration (FHWA) to make sure it is carrying out its responsibilities as the administrator of the federal laws and regulations governing billboards. The FHWA discovered in its most recent report (Outdoor Advertising Review - June 16, 2022) that displays in arenas and redevelopment zones might not be in compliance with federal law. While the signs comply with state law, which was expressly revised to authorize many of these signs, federal law is more restrictive. The FHWA review discovered, specifically, that certain signs exceeded the size limits (1200 square feet), spacing requirements, and showed full motion video. Generally, California state law mirrors the federal-state agreements (FSAs) size and spacing requirements. However, the OAA exempt redevelopment displays from state enforcement. FHWA recommended that Caltrans pursue compliance with federal law and, in some cases, pursue removal of the signs under threat of the loss of 10% of the state’s annual federal-aid funds.

Policy consideration. In order to achieve the goal of this bill while maintaining the intent of the OAA, the author should consider an amendment that extends the previous RDA exemption by 5-years (January 1, 2028) to allow an applicable local agency to request from Caltrans an extension for classifying a former RDA display as an on-premises display, as specified.

In support. The Gardens Casino writes in support, “The location of an advertising display that advertises our Casino was considered “on premises” and in compliance with the OAA until January 1, 2023, because it was located in an existing redevelopment area. The sign has been permitted to be in this location since 2001. Taxes paid by the Casino generates over 70% of the General Fund revenue for the City of Hawaiian Gardens. This bill would allow the applicable city, county, or city and county to request from the Caltrans a ten-year extension for treating a sign in a redevelopment agency project area as an on-premises display if the sign meets the criteria for a finding of good cause, was in use on December 31, 2022, and complies with specified provisions of the OAA, including the Act’s licensing and zoning requirements. Further extension of the previous deadline will avoid harmful and unnecessary disruption to economic activities within the City of Hawaiian Gardens and many other cities across the state.”

In opposition. Scenic Los Angeles writes in opposition, “Under the rules governing RDAs, many off-site billboards were considered to be on-site signs, governed by looser restrictions on size, location, and content. However, the RDAs were abolished more than 10 years ago, yet the signs continue in place. There is no reason for this state of affairs, and furthermore, it has drawn the attention of the FHWA, which regards those signs as non-compliant. AB1175 would extend this non-compliance for another 10 years, putting at risk federal matching funds.”

Related legislation. AB 1415 (Santiago) of 2023. This bill would expand designated geographic areas in the City of Los Angeles as exempt from specified provisions of the OAA. The bill would also exempt an advertising display located within those geographic areas of the city from the specified provisions of the OAA, if the display was in existence and legally permitted as of January 1, 2023, regardless of whether it meets the prescribed conditions and requirements in existing law. (Pending in the Committee on Governmental Organization)

AB 476 (Villapudua) of 2023. The OAA provides for the Caltrans to regulate advertising displays, as defined, within view of public highways. The OAA authorizes displays on property zoned commercial or industrial, as specified. This bill would authorize displays on public property for noncommercial public messages and announcements, as specified. (Assembly Committee on Governmental Organization)

AB 1673 (Pacheco) of 2023. This bill would exempt cities and other local entities that designate where advertising displays may be placed or prohibited as part of a county land use or zoning ordinance, as defined, expand the exemption to explicitly apply to relocations of advertising displays by local entities, and authorize those entities to also use programs and resolutions to facilitate advertising display relocations. The bill would expand this exemption from the prohibition, and another exemption applicable to relocations and height increases for lawfully erected advertising displays, to provide relief from certain other provisions generally applicable to these advertising displays. The bill would explicitly state that removal or relocation of advertising displays by specified types of local governmental action constitutes “development in a planned manner without expenditure of public funds,” consistent with an existing statutory statement of state policy. (Assembly Committee on Governmental Organization)

Prior legislation. SB 1309 (Durazo) of 2022. This bill would have extended the special provisions authorizing outdoor advertising for sports arenas to January 1, 2028, as specified, and requires the Caltrans prescreening for new advertising signs to determine compliance with federal law and California’s obligations to the FHWA. (Vetoed by the Governor)

AB 3168 (Rubio), Chapter 926 of 2018. Revised the OAA to facilitate the relocation and conversion of advertising displays adjacent to freeways. Specifically, the bill narrowed the definition of landscaped freeway and allow displays to be relocated, increased in height, or converted to a message center, if there is not a net increase in the number of displays statewide or a reduction of federal highway funds.

AB 700 (Jones-Sawyer), Chapter 337 of 2017. Extended the deadline by an additional two years (January 1, 2019 to January 1, 2021) for a sports arena advertising display to be authorized by local ordinance in order to qualify for an OAA exemption.

SB 1199 (Hall), Chapter 869 of 2016. Authorized two existing advertising displays along Interstate 405 in the City of Inglewood to be considered on-premise displays, until January 1, 2023, and therefore exempt from the OAA. This authorization is valid as long as it does not cause a reduction of federal transportation funds.

AB 1373 (Santiago), Chapter 853 of 2016. Provided an exemption from regulations of the OAA for signs allowed by a City of Los Angeles ordinance in relation to the number and location of billboards in an area bounded by West 8th Street on the northeast, South Figueroa Street on the southeast, Interstate 10 on the southwest, and State Route 110 on the northwest, and a small, adjacent parcel if certain conditions are satisfied.

SB 684 (Hill), Chapter 544, Statutes of 2013. Provided that an advertising display advertising businesses and activities within the boundary limits of, and as a part of, an individual redevelopment agency project, as the project boundaries existed on December 29, 2011, may remain and be considered an on-premises display, until January 1, 2023, if the advertising display meets specified criteria. This bill would authorize, on and after January 1, 2022, the applicable city, county, or city and county to request from Caltrans an extension for good cause, as specified, beyond January 1, 2023, not to exceed the expiration of the redevelopment project area.

SB 694 (Correa), Chapter 545, Statutes of 2013. Exempted, from the OAA, advertising displays at a publicly owned multimodel transit facility (MTF) that is to serve as a station for the high-speed train system, as specified, and requires revenues from the advertising display to be used to support the construction, operation, and maintenance of the MTF.

SB 31 (Padilla), Chapter 542 of 2013. Established the current authorization that allows arenas to display advertising for products, goods, or services sold on premises as well as part of a sponsorship marketing plan if the arena is on public land and has a capacity of 15,000 or more seats. The bill established the 2019 deadline for these arenas to qualify for the OAA exemption by obtaining local authorization.

AB 2756 (Blumenfield), Chapter 615, Statutes of 2010. Defines "mobile billboard advertising display" and allows a local authority to regulate these displays.

SB 2339 (Solorio), Chapter 493 of 2008. Exempted from the OAA displays advertising any products, goods, or services sold by persons on the premise of a publicly-owned sports arena located on public land if the arena had a capacity of 5,000 seats and had an advertising display in existence before January 1, 2009.

AB 762 (Núñez), Chapter 725, Statutes of 2003. Created an exemption to the OAA 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. Exempted from the OAA the prohibition against placing advertising displays adjacent to landscaped freeways, up to five advertising structures or signs (billboards) used to support the Oakland-Alameda County Coliseum Complex.

REGISTERED SUPPORT / OPPOSITION:

Support

The Gardens Casino

Oppose

Scenic Los Angeles, a Chapter of Scenic America

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