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, services rendered, or goods produced or sold at the location where the display is located. However, the act authorizes 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, to continue to exist and be considered an on-premises display if it meets certain criteria, and authorizes such a display to remain until January 1, 2026.

This bill would extend by 3 years, until January 1, 2029, the authorization to remain for an off-premises advertising display developed as part of and within the boundary limits of a redevelopment agency project, as described above.

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, services rendered, or goods produced or sold at the location where the display is located. However, the act authorizes 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, to continue to exist and be considered an on-premises display if it meets certain criteria, and authorizes such a display to remain until January 1, 2026.

This bill would extend by 4 3 years, until January 1, 2030, 2029, the authorization to remain for an off-premises advertising display developed as part of and within the boundary limits of a redevelopment agency project, as described above.

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, services rendered, or goods produced or sold at the location where the display is located. However, the act authorizes 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, to continue to exist and be considered an on-premises display if it meets certain criteria, and authorizes such a display to remain until January 1, 2026.

This bill would extend by 4 years, until January 1, 2030, the authorization to remain for an off-premises advertising display developed as part of and within the boundary limits of a redevelopment agency project, as described above.

 VETO  

Bill No: SB 783

Author: Rubio (D), et al.

Enrolled: 9/10/25

Vote: 27

SENATE TRANSPORTATION COMMITTEE: 14-0, 4/8/25

AYES: Cortese, Strickland, Archuleta, Arreguín, Blakespear, Cervantes, Dahle, Gonzalez, Grayson, Limón, Menjivar, Richardson, Umberg, Valladares

NO VOTE RECORDED: Seyarto

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

SENATE FLOOR: 39-0, 6/3/25

AYES: Allen, Alvarado-Gil, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Cervantes, Choi, Cortese, Dahle, Durazo, Gonzalez, Grayson, Grove, Hurtado, Jones, Laird, Limón, McGuire, McNerney, Menjivar, Niello, Ochoa Bogh, Padilla, Pérez, Richardson, Rubio, Seyarto, Smallwood-Cuevas, Stern, Strickland, Umberg, Valladares, Wahab, Weber Pierson, Wiener

NO VOTE RECORDED: Reyes

SENATE FLOOR: 38-1, 9/8/25

AYES: Allen, Alvarado-Gil, Archuleta, Arreguín, Ashby, Becker, Cabaldon, Caballero, Cervantes, Choi, Cortese, Dahle, Durazo, Gonzalez, Grayson, Grove, Hurtado, Jones, Laird, Limón, McGuire, McNerney, Menjivar, Niello, Ochoa Bogh, Padilla, Pérez, Reyes, Richardson, Rubio, Seyarto, Smallwood-Cuevas, Strickland, Umberg, Valladares, Wahab, Weber Pierson, Wiener

NOES: Blakespear

NO VOTE RECORDED: Stern

ASSEMBLY FLOOR: 75-0, 9/4/25 - 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, 2029.

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 redevelopment agency (RDA), 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, 2026.
5. Dissolves RDAs and institutes a process for winding down their activities.
6. Requires Caltrans to administer the federal Outdoor Advertising Control program under the Highway Beautification Act of 1965 (HBA), 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 is subject to potentially lose 10% of its federal highway funding.

This bill extends the current sunset which allows advertising displays located in former redevelopment areas to continue by three years to January 1, 2029.

Comments

1. Purpose of this bill. According to the author, “As a former local elected official, I understand the importance of outdoor advertisements when it comes to encouraging customers to support local businesses. This bill will help support local businesses by addressing an issue that was inadvertently created when the Legislature eliminated redevelopment agencies. Existing law allows Caltrans to permit advertising displays as on-premises displays within redevelopment project areas until January 1, 2026. This bill would extend the continued operations of those advertising displays for an additional four years until January 1, 2030. As local governments prepare for an uncertain fiscal outlook over the next few years, this bill is a reasonable policy to support local businesses and allow revenue generated from local business activities to help local governments keep their programs and services in operation.”
2. The response & continued extensions. 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 RDA 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 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.

At the time, 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 RDAs, one of the unintended consequences is that the sign agreements, formerly authorized by RDAs, can no longer be extended because there is no RDA to authorize the extension.

In 2023, AB 1175 (Quirk-Silva, Chapter 361, Statutes of 2023), extended the original SB 684 allowance of existing advertising signs (billboards) in RDAs to January 1, 2026.

1. HBA. Approximately every four years the Federal Highway Administration (FHWA) 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 as out of compliance. Ultimately, under HBA, a portion of federal highway funds (up to 10%) could be jeopardized through non-compliance of HBA with FHWA potentially “clawing back” a portion of the state’s federal highway funds.

Presently, according to Caltrans, approximately 47 signs (billboards) remain in operation under the existing extension and has no data on the revenue generated by these signs. In an era where the existing federal administration is actively seeking areas to reduce expenditures / funding, it may be prudent for stakeholders to engage amongst each other and with the Legislature to identify a remedy that will ultimately bring the state into full compliance with federal requirements.

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

According to the Assembly Appropriations Committee:

Minor and absorbable costs to Caltrans to monitor a display’s compliance with existing OAA exemption rules and respond to federal oversight and enforcement inquiries in cases of noncompliance.

However, Caltrans notes that this bill may put federal funding at risk. Previous reviews by FHWA have expressed concerns with outdoor advertising displays utilizing this RDA project exemption. If this bill is determined to be contrary to federal law, the state may be subject to a sanction that would reduce federal highway funding allocations by 10%, or approximately $580 million, and Caltrans may incur significant legal costs to respond to federal notices, coordinate with local jurisdictions and display operators, and enforce applicable penalties (State Highway Account).

SUPPORT: (Verified 10/16/25)

California Cities for Self-reliance Joint Powers Authority
City of Hawaiian Gardens

City of Inglewood

Hawaiian Gardens Casino
In-n-out Burgers

OPPOSITION: (Verified 10/16/25)

California State Outdoor Advertising Association
Scenic Los Angeles, a Chapter of Scenic America
Stop Casino Billboards

GOVERNOR'S VETO MESSAGE:

This bill would re-extend the sunset for the redevelopment agency project area exemption to the Outdoor Advertising Act until January 1, 2029.

As a former mayor, I have seen firsthand how outdoor advertising displays generate revenue and visibility for local economies and businesses. Yet extending the redevelopment agency exemption under the Outdoor Advertising Act simply continues a pattern of short-term fixes that avoid addressing the underlying issue. For more than a decade, this area of law has been managed through temporary extensions rather than a comprehensive solution.

There are over 40 former redevelopment agency legacy displays throughout California. A lasting resolution should address them directly - whether through targeted statutory changes to the Act, administrative adjustments, or simply bringing the displays into compliance with existing law. That approach is far more durable and legally sound than repeated exemptions, which only create uncertainty, increase risk, and jeopardize critical funding that supports thousands of jobs at the state and local level.

I encourage the Legislature and stakeholders to work with my Administration on a durable solution that provides stability while balancing economic benefits with the state's fiscal and regulatory responsibilities.

For this reason, I cannot sign this bill.

ASSEMBLY FLOOR: 75-0, 9/4/25

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Chen, Connolly, Davies, Dixon, Elhawary, Ellis, Flora, Fong, Gabriel, Gallagher, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hoover, Jackson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Sanchez, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas

NO VOTE RECORDED: Ahrens, DeMaio, Hart, Irwin

Prepared by: Manny Leon / TRANS. / (916) 651-4121

10/17/25 9:52:50

**** END ****

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

 UNFINISHED BUSINESS  

Bill No: SB 783

Author: Rubio (D), et al.

Amended: 7/15/25

Vote: 21

SENATE TRANSPORTATION COMMITTEE: 14-0, 4/8/25

AYES: Cortese, Strickland, Archuleta, Arreguín, Blakespear, Cervantes, Dahle, Gonzalez, Grayson, Limón, Menjivar, Richardson, Umberg, Valladares

NO VOTE RECORDED: Seyarto

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

SENATE FLOOR: 39-0, 6/3/25

AYES: Allen, Alvarado-Gil, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Cervantes, Choi, Cortese, Dahle, Durazo, Gonzalez, Grayson, Grove, Hurtado, Jones, Laird, Limón, McGuire, McNerney, Menjivar, Niello, Ochoa Bogh, Padilla, Pérez, Richardson, Rubio, Seyarto, Smallwood-Cuevas, Stern, Strickland, Umberg, Valladares, Wahab, Weber Pierson, Wiener

NO VOTE RECORDED: Reyes

ASSEMBLY FLOOR: 75-0, 9/4/25 - 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, 2029.

Assembly Amendments

reduce the sunset date by one year and adds a co-author.

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 redevelopment agency (RDA), 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, 2026.
5. Dissolves RDAs and institutes a process for winding down their activities.
6. Requires Caltrans to administer the federal Outdoor Advertising Control program under the Highway Beautification Act of 1965 (HBA), 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 is subject to potentially lose 10% of its federal highway funding.

This bill extends the current sunset which allows advertising displays located in former redevelopment areas to continue by three years to January 1, 2029.

Comments

1. Purpose of the bill. According to the author, “As a former local elected official, I understand the importance of outdoor advertisements when it comes to encouraging customers to support local businesses. This bill will help support local businesses by addressing an issue that was inadvertently created when the Legislature eliminated redevelopment agencies. Existing law allows Caltrans to permit advertising displays as on-premises displays within redevelopment project areas until January 1, 2026. This bill would extend the continued operations of those advertising displays for an additional four years until January 1, 2030. As local governments prepare for an uncertain fiscal outlook over the next few years, this bill is a reasonable policy to support local businesses and allow revenue generated from local business activities to help local governments keep their programs and services in operation.”
2. The response & continued extensions. 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 RDA 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 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.

At the time, 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 RDAs, one of the unintended consequences is that the sign agreements, formerly authorized by RDAs, can no longer be extended because there is no RDA to authorize the extension.

In 2023, AB 1175 (Quirk-Silva, Chapter 361, Statutes of 2023), extended the original SB 684 allowance of existing advertising signs (billboards) in RDAs to January 1, 2026.

1. HBA. Approximately every four years the Federal Highway Administration (FHWA) 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 as out of compliance. Ultimately, under HBA, a portion of federal highway funds (up to 10%) could be jeopardized through non-compliance of HBA with FHWA potentially “clawing back” a portion of the state’s federal highway funds.

Presently, according to Caltrans, approximately 47 signs (billboards) remain in operation under the existing extension and has no data on the revenue generated by these signs. In an era where the existing federal administration is actively seeking areas to reduce expenditures / funding, it may be prudent for stakeholders to engage amongst each other and with the Legislature to identify a remedy that will ultimately bring the state into full compliance with federal requirements.

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

According to the Assembly Appropriations Committee:

Minor and absorbable costs to Caltrans to monitor a display’s compliance with existing OAA exemption rules and respond to federal oversight and enforcement inquiries in cases of noncompliance.

However, Caltrans notes that this bill may put federal funding at risk. Previous reviews by FHWA have expressed concerns with outdoor advertising displays utilizing this RDA project exemption. If this bill is determined to be contrary to federal law, the state may be subject to a sanction that would reduce federal highway funding allocations by 10%, or approximately $580 million, and Caltrans may incur significant legal costs to respond to federal notices, coordinate with local jurisdictions and display operators, and enforce applicable penalties (State Highway Account).

SUPPORT: (Verified 9/2/25)

California Cities for Self-reliance Joint Powers Authority
City of Hawaiian Gardens

City of Inglewood

Hawaiian Gardens Casino
In-n-out Burgers

OPPOSITION: (Verified 9/2/25)

California State Outdoor Advertising Association
Scenic Los Angeles, a Chapter of Scenic America
Stop Casino Billboards

ASSEMBLY FLOOR: 75-0, 9/4/25

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Chen, Connolly, Davies, Dixon, Elhawary, Ellis, Flora, Fong, Gabriel, Gallagher, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hoover, Jackson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Sanchez, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas

NO VOTE RECORDED: Ahrens, DeMaio, Hart, Irwin

Prepared by: Manny Leon / TRANS. / (916) 651-4121

9/6/25 10:40:15

**** END ****

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

SENATE THIRD READING

STR Bill Id:SB 783

Author:(Rubio)

As Amended Ver:July 15, 2025

Majority vote

SUMMARY

This bill allows certain off-premises advertising displays within a redevelopment agency (RDA) project to continue to be considered an on-premises display for an additional three years, until January 1, 2029.

Major Provisions

1) Extends by three years, until January 1, 2029, the authorization to remain for an off-premises advertising display developed as part of and within the boundary limits of a former RDA project, as specified.

COMMENTS

Background.

Since 1933, Caltrans has enforced the State Outdoor Advertising Act (California Business and Professions Code Section 5200 et seq.), which establishes comprehensive standards and regulations for outdoor advertising displays, commonly known as billboards. The department regulates the placement of such displays that are 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 previously mentioned, Caltrans enforces the OAA, which includes responsibilities such as maintaining a list of landscaped freeways, issuing permits for statutorily authorized signs, and notifying owners of non-compliant signage.

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.

In 2023, AB 1175 (Quirk-Silva, Chapter 361, of 2023) extended the provisions originally established under Senate Bill 684 (2013), allowing existing advertising displays (billboards) within former redevelopment agency (RDA) project areas to remain in place through January 1, 2026. This new measure proposes to further extend the sunset date by four years, until January 1, 2030.

Currently, 47 advertising displays permitted under SB 684 are located along landscaped freeways within these former redevelopment project areas across the state. Of these, 12 are in full compliance with both state and federal regulations.

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. The 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, "As a former local elected official, I understand the importance of outdoor advertisements when it comes to encouraging customers to support local businesses. This bill will help support local businesses by addressing an issue that was inadvertently created when the Legislature eliminated redevelopment agencies. Existing law allows Caltrans to permit advertising displays as on-premises displays within redevelopment project areas until January 1, 2026. This measure would extend the continued operations of those advertising displays for an additional four years until January 1, 2030. As local governments prepare for an uncertain fiscal outlook over the next few years, this bill is a reasonable policy to support local businesses and allow revenue generated from local business activities to help local governments keep their programs and services in operation."

Arguments in Support

This bill is supported by local government entities and businesses with displays within an RDA project, with In-N-Out Burger arguing: This bill does not authorize any new signage, but instead seeks to retain the investment-backed expectations of public entities and private businesses that either own or operate existing signs in former RDAs. When the Glendora Marketplace was originally constructed in 2003, many of the businesses gave up their right to signage within the area on the expectation that the Glendora Marketplace Pylon Sign would remain. Accordingly, an extension of the previous deadline will avoid harmful and unnecessary disruption to these businesses while a permanent solution is negotiated.

Arguments in Opposition

This bill is opposed by the California State Outdoor Advertising Association, which argues: The OAA establishes clear regulations for off-premises advertising displays to ensure safety, aesthetic preservation, and community standards. Extending the lifespan of RDA displays allows them to bypass these regulations, granting them an unfair competitive advantage over compliant operators.

FISCAL COMMENTS

According to the Assembly Committee on Appropriations analysis, "Minor and absorbable costs to Caltrans to monitor a display's compliance with existing OAA exemption rules and respond to federal oversight and enforcement inquiries in cases of noncompliance. However, Caltrans notes that this bill may put federal funding at risk. Previous reviews by the FHWA have expressed concerns with outdoor advertising displays utilizing this RDA project exemption. If this bill is determined to be contrary to federal law, the state may be subject to a sanction that would reduce federal highway funding allocations by 10%, or approximately $580 million, and Caltrans may incur significant legal costs to respond to federal notices, coordinate with local jurisdictions and display operators, and enforce applicable penalties (State Highway Account)."

VOTES

SENATE FLOOR: 39-0-1

YES: Allen, Alvarado-Gil, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Cervantes, Choi, Cortese, Dahle, Durazo, Gonzalez, Grayson, Grove, Hurtado, Jones, Laird, Limón, McGuire, McNerney, Menjivar, Niello, Ochoa Bogh, Padilla, Pérez, Richardson, Rubio, Seyarto, Smallwood-Cuevas, Stern, Strickland, Umberg, Valladares, Wahab, Weber Pierson, Wiener

ABS, ABST OR NV: Reyes

ASM GOVERNMENTAL ORGANIZATION: 22-0-0

YES: Blanca Rubio, Davies, Alvarez, Berman, Bryan, Carrillo, Dixon, Fong, Gabriel, Gipson, Macedo, McKinnor, Nguyen, Pacheco, Ramos, Michelle Rodriguez, Sanchez, Solache, Soria, Ta, Valencia, Wallis

ASM APPROPRIATIONS: 15-0-0

YES: Wicks, Sanchez, Arambula, Calderon, Caloza, Dixon, Elhawary, Fong, Mark González, Ahrens, Pacheco, Pellerin, Solache, Ta, Tangipa

UPDATED

VERSION: July 15, 2025

CONSULTANT: Eric Johnson / G.O. / (916) 319-2531 FN: 0001373

Date of Hearing: August 20, 2025

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

SBPCA Bill Id:SB 783

Author:(Rubio) – As Amended Ver:July 15, 2025

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

SUMMARY:

This bill allows certain off-premises advertising displays within a redevelopment agency (RDA) project to continue to be considered an on-premises display for an additional three years, until January 1, 2029.

FISCAL EFFECT:

Minor and absorbable costs to the Department of Transportation (Caltrans) to monitor a display’s compliance with existing Outdoor Advertising Act (OAA) exemption rules and respond to federal oversight and enforcement inquiries in cases of noncompliance.

However, Caltrans notes that this bill may put federal funding at risk. Previous reviews by the Federal Highway Administration (FHWA) have expressed concerns with outdoor advertising displays utilizing this RDA project exemption. If this bill is determined to be contrary to federal law, the state may be subject to a sanction that would reduce federal highway funding allocations by 10%, or approximately $580 million, and Caltrans may incur significant legal costs to respond to federal notices, coordinate with local jurisdictions and display operators, and enforce applicable penalties (State Highway Account).

COMMENTS:

1. Purpose. According to the author:

As a former local elected official, I understand the importance of outdoor advertisements when it comes to encouraging customers to support local businesses. This bill will help support local businesses by addressing an issue that was inadvertently created when the Legislature eliminated [RDAs]…As local governments prepare for an uncertain fiscal outlook over the next few years, this bill is a reasonable policy to support local businesses and allow revenue generated from local business activities to help local governments keep their programs and services in operation.

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. AB 1175 (Quirk-Silva), Chapter 361, Statutes of 2023, extended the exemption until January 1, 2026. This bill extends the exemption an additional three years.

Federal Audit. The July 16, 2022, audit of Caltrans by the 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. Support and Opposition. This bill is supported by local government entities and businesses with displays within an RDA project, with In-N-Out Burger arguing:

[This bill] does not authorize any new signage, but instead seeks to retain the investment-backed expectations of public entities and private businesses that either own or operate existing signs in former [RDAs]. When the Glendora Marketplace was originally constructed in 2003, many of the businesses gave up their right to signage within the area on the expectation that the Glendora Marketplace Pylon Sign would remain. Accordingly, an extension of the previous deadline will avoid harmful and unnecessary disruption to these businesses while a permanent solution is negotiated.

This bill is opposed by the California State Outdoor Advertising Association, which argues:

The [OAA] establishes clear regulations for off-premises advertising displays to ensure safety, aesthetic preservation, and community standards. Extending the lifespan of [RDA] displays allows them to bypass these regulations, granting them an unfair competitive advantage over compliant operators.

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

Date of Hearing: July 9, 2025

ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION

Blanca Rubio, Chair

SBPCA Bill Id:SB 783

Author:(Rubio) – As Introduced Ver:February 21, 2025

SENATE VOTE: 39-0

SUBJECT: Outdoor advertising displays: redevelopment agency project areas

SUMMARY: This bill extends until January 1, 2030, 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, 2026. Specifically, this bill:

1) Extends by 4 years, until January 1, 2030, the authorization to remain for an off-premises advertising display developed as part of and within the boundary limits of a former RDA project, as specified.

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) Authorizes, notwithstanding the dissolution of a state redevelopment agency, 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, to continue to exist and be considered an on-premises display if it meets certain criteria, and authorizes such a display to remain until January 1, 2026. (California Business and Professions Code § 5273)

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

6) 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.

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

COMMENTS:

Purpose of the bill. According to the author, “As a former local elected official, I understand the importance of outdoor advertisements when it comes to encouraging customers to support local businesses. This bill will help support local businesses by addressing an issue that was inadvertently created when the Legislature eliminated redevelopment agencies. Existing law allows Caltrans to permit advertising displays as on-premises displays within redevelopment project areas until January 1, 2026. This measure would extend the continued operations of those advertising displays for an additional four years until January 1, 2030. As local governments prepare for an uncertain fiscal outlook over the next few years, this bill is a reasonable policy to support local businesses and allow revenue generated from local business activities to help local governments keep their programs and services in operation.”

Background.

Since 1933, Caltrans has enforced the State Outdoor Advertising Act (California Business and Professions Code Section 5200 et seq.), which establishes comprehensive standards and regulations for outdoor advertising displays, commonly known as billboards. The department regulates the placement of such displays that are 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 previously mentioned, Caltrans enforces the OAA, which includes responsibilities such as maintaining a list of landscaped freeways, issuing permits for statutorily authorized signs, and notifying owners of non-compliant signage.

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.

In 2023, AB 1175 (Quirk-Silva, Chapter 361, of 2023) extended the provisions originally established under Senate Bill 684 (2013), allowing existing advertising displays (billboards) within former redevelopment agency (RDA) project areas to remain in place through January 1, 2026. This new measure proposes to further extend the sunset date by four years, until January 1, 2030.

Currently, 47 advertising displays permitted under SB 684 are located along landscaped freeways within these former redevelopment project areas across the state. Of these, 12 are in full compliance with both state and federal regulations.

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. The FHWA recommended Caltrans pursue compliance with federal law and, in some cases, pursue the removal of signs to not jeopardize losing federal highway funding.

Policy consideration/amendment. To achieve the objective of the bill—while accounting for the constraints of the annual legislative calendar while supporting a timely resolution to the longstanding RDA billboard issue among stakeholders— it is recommended that the bill’s sunset date be amended from four years (January 1, 2030) to three years (January 1, 2029).

In support. The City of Hawaiian Gardens writes, this bill would authorize a city, county, or city and county to request a four-year extension from Caltrans to continue treating certain signs located in former redevelopment agency project areas as on-premises displays—provided the signs meet established criteria, including the licensing and zoning requirements set by the OAA. This provision allows qualifying outdoor signs to remain in place, as they serve to promote economic development in communities historically designated as redevelopment zones due to economic hardship. Extending the current deadline will help prevent harmful and unnecessary disruptions to economic activity in the City of Hawaiian Gardens and numerous other municipalities across the state.

The California Cities for Self-Reliance Joint Powers Authority writes, “SB 783 will help support local businesses and local governments by allowing existing outdoor advertising displays located in former RDA areas to continue operating under existing requirements until January 1, 2030. By extending the operation of these outdoor advertising displays for four additional years, SB 783 will provide time for impacted communities and stakeholders to discuss a permanent solution for regulating these outdoor advertising displays.”

In opposition. The California State Outdoor Advertising Association writes, “This bill would extend the authorization for off-premises advertising displays located in former redevelopment agency project areas to remain in place until January 1, 2030, an additional four years. These changes would continue California’s noncompliance with federal law, which has already been formally noted by the FHWA. The OAA establishes clear regulations for off-premises advertising displays to ensure safety, aesthetic preservation, and community standards. Extending the lifespan of RDA displays allows them to bypass these regulations, granting them an unfair competitive advantage over compliant operators.”

Related legislation. AB 770 (M. González) of 2025. Exempts outdoor advertising displays (billboards) erected on the premises of a convention center within the City of Los Angeles, as specified, from the OAA, as specified. (Senate Committee on Judiciary)

SB 364 (Strickland) of 2025. This bill would make changes to the Caltrans review process when considering a permit application for a new advertising display (billboards) along a freeway or highway, as specified. Additionally, would authorize, as part of "customary maintenance", an activity performed for the purpose of maintaining an advertising display with its existing advertising copy area dimensions, including, but not limited to, replacing structural members and using stronger materials, as specified.

Prior legislation. AB 1175 (Quirk-Silva), Chapter 361, Statutes of 2023. Extended the date at which advertising displays located in former redevelopment areas may continue to operate until January 1, 2026.

AB 1175 (Quirk-Silva), Chapter 361 of 2023. Extended 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 RDA project may continue to be remain, under provisions that permit such signs to be treated as an on-premises display, as specified.

AB 1673 (Pacheco), Chapter 590, Statutes of 2023. Clarified the definition of the terms "relocation," "relocated display," and all related variants of the terms. It also explicitly allows the conversion of an advertising display to a message center (e.g. an advertising display which allows changeable ads rather than a static display).

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.

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 RDA 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.

REGISTERED SUPPORT / OPPOSITION:

Support

California Cities for Self-Reliance Joint Powers Authority

City of Hawaiian Gardens

City of Inglewood

Hawaiian Gardens Casino

In-N-Out Burgers

Opposition

California State Outdoor Advertising Association

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

 THIRD READING  

Bill No: SB 783

Author: Rubio (D)

Introduced: 2/21/25

Vote: 21

SENATE TRANSPORTATION COMMITTEE: 14-0, 4/8/25

AYES: Cortese, Strickland, Archuleta, Arreguín, Blakespear, Cervantes, Dahle, Gonzalez, Grayson, Limón, Menjivar, Richardson, Umberg, Valladares

NO VOTE RECORDED: Seyarto

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

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, 2030.

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 redevelopment agency (RDA), 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, 2026.
5. Dissolves RDAs and institutes a process for winding down their activities.
6. Requires Caltrans to administer the federal Outdoor Advertising Control program under the Highway Beautification Act of 1965 (HBA), 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 is subject to potentially lose 10% of its federal highway funding.

This bill extends the current sunset which allows advertising displays located in former redevelopment areas to continue by four years to January 1, 2030.

Comments

1. Purpose of the bill. According to the author, “As a former local elected official, I understand the importance of outdoor advertisements when it comes to encouraging customers to support local businesses. This bill will help support local businesses by addressing an issue that was inadvertently created when the Legislature eliminated redevelopment agencies. Existing law allows Caltrans to permit advertising displays as on-premises displays within redevelopment project areas until January 1, 2026. This bill would extend the continued operations of those advertising displays for an additional four years until January 1, 2030. As local governments prepare for an uncertain fiscal outlook over the next few years, this bill is a reasonable policy to support local businesses and allow revenue generated from local business activities to help local governments keep their programs and services in operation.”
2. The response & continued extensions. 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 RDA 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 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.

At the time, 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 RDAs, one of the unintended consequences is that the sign agreements, formerly authorized by RDAs, can no longer be extended because there is no RDA to authorize the extension.

In 2023, AB 1175 (Quirk-Silva, Chapter 361, Statutes of 2023), extended the original SB 684 allowance of existing advertising signs (billboards) in RDAs to January 1, 2026.

1. HBA. Approximately every four years the Federal Highway Administration (FHWA) 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 as out of compliance. Ultimately, under HBA, a portion of federal highway funds (up to 10%) could be jeopardized through non-compliance of HBA with FHWA potentially “clawing back” a portion of the state’s federal highway funds.

Presently, according to Caltrans, approximately 47 signs (billboards) remain in operation under the existing extension and has no data on the revenue generated by these signs. In an era where the existing federal administration is actively seeking areas to reduce expenditures / funding, it may be prudent for stakeholders to engage amongst each other and with the Legislature to identify a remedy that will ultimately bring the state into full compliance with federal requirements.

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

SUPPORT: (Verified 4/22/25)

City of Hawaiian Gardens

City of Inglewood

Hawaiian Gardens Casino
In-n-out Burgers

OPPOSITION: (Verified 4/22/25)

California State Outdoor Advertising Association

Prepared by: Manny Leon / TRANS. / (916) 651-4121

4/23/25 16:30:28

**** END ****

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

SENATE COMMITTEE ON TRANSPORTATION

Senator Dave Cortese, Chair

2025 - 2026 Regular

Bill No: SB 783 Hearing Date: 4/8/25

SUBJECT: Outdoor advertising displays: redevelopment agency project areas

DIGEST: This bill extends the date at which advertising displays located in former redevelopment areas may continue to operate until January 1, 2030.

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 redevelopment agency (RDA), 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, 2026.
5. Dissolves RDAs and institutes a process for winding down their activities.
6. Requires Caltrans to administer the federal Outdoor Advertising Control (OAC) program under the Highway Beautification Act of 1965 (HBA), 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 is subject to potentially lose 10% of its federal highway funding.

This bill:

1. Extends the current sunset which allows advertising displays located in former redevelopment areas to continue by four years to January 1, 2030.

COMMENTS:

1. Purpose of the bill. According to the author, “As a former local elected official, I understand the importance of outdoor advertisements when it comes to encouraging customers to support local businesses. This bill will help support local businesses by addressing an issue that was inadvertently created when the Legislature eliminated redevelopment agencies. Existing law allows Caltrans to permit advertising displays as on-premises displays within redevelopment project areas until January 1, 2026. This bill would extend the continued operations of those advertising displays for an additional four years until January 1, 2030. As local governments prepare for an uncertain fiscal outlook over the next few years, this bill is a reasonable policy to support local businesses and allow revenue generated from local business activities to help local governments keep their programs and services in operation.”
2. OAA: a history. Since 1933, Caltrans has enforced the OAA which contains comprehensive standards and regulations for outdoor advertising displays (also known as “billboards”). Caltrans 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 HBA 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. Lastly, existing law includes a number of exceptions to the OAA and assigns Caltrans the responsibility of reviewing and permitting signs that qualify for these exceptions.

1. The end of Redevelopment. In 2011, facing a severe budget shortfall, Governor Brown and the Legislature passed and enacted legislation ultimately eliminating RDAs in order to deliver more property taxes to other local agencies. Before the elimination of RDAs, the OAA allowed for advertising signs (billboards) that were 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 was contiguous or was 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 occurred first. The dissolution of RDAs raised questions about how existing signs would be treated by Caltrans because there was no longer an RDA 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.
2. The response & continued extensions. 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 RDA 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 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.

At the time, 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 RDAs, one of the unintended consequences is that the sign agreements, formerly authorized by RDAs, can no longer be extended because there is no RDA to authorize the extension.

In 2023, AB 1175 (Quirk-Silva, Chapter 361, Statutes of 2023), extended the original SB 684 allowance of existing advertising signs (billboards) in RDAs to January 1, 2026.

1. HBA. Approximately every four years the Federal Highway Administration (FHWA) 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 as out of compliance. Ultimately, under HBA, a portion of federal highway funds (up to 10 percent) could be jeopardized through non-compliance of HBA with FHWA potentially “clawing back” a portion of the state’s federal highway funds.

Presently, according to Caltrans, approximately 47 signs (billboards) remain in operation under the existing extension and has no data on the revenue generated by these signs. In an era where the existing federal administration is actively seeking areas to reduce expenditures / funding, it may be prudent for stakeholders to engage amongst each other and with the Legislature to identify a remedy that will ultimately bring the state into full compliance with federal requirements.

Related/Previous Legislation:

AB 840 (Ta, 2025), similar to this bill, extends for two years the date at which advertising displays located in former redevelopment areas may continue to operate until January 1, 2028. This bill is currently in the Assembly Governmental Organization Committee.

AB 1175 (Quirk-Silva, Chapter 361, Statutes of 2023), extended the date at which advertising displays located in former redevelopment areas may continue to operate until January 1, 2026.

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. Made other additional modifications, as specified.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

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

April 2, 2025.)

SUPPORT:

Hawaiian Gardens Casino
In-n-out Burgers
City of Inglewood

OPPOSITION:

California State Outdoor Advertising Association

-- END --

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