CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill
No. 1488

Introduced by Senator Durazo

February 16, 2024

An act to amend Section 5272 of the Business and Professions Code, relating to outdoor advertising.


LEGISLATIVE COUNSEL'S DIGEST


SB 1488, as introduced, Durazo. Outdoor advertising displays: exemptions.
The Outdoor Advertising Act provides for the regulation by the Department of Transportation of advertising displays, as defined, within view of public highways. The act exempts from its provisions certain advertising displays, including, among others, any advertising display used exclusively either to advertise products, goods, or services sold by persons on the premises of an arena on a regular basis, or to advertise any products, goods, or services marketed or promoted on the premises of an arena pursuant to a sponsorship marketing plan with a duration of at least one year, if specified conditions are met. One of those conditions for exemption requires the advertising display to be located on the premises of the arena or to have been authorized as of January 1, 2021, by, or in accordance with, a local ordinance, as specified.
This bill would change this condition for the exemption from the act to require that an advertising display, as described above, be authorized as of January 1, 2030, would limit the exemption to arenas constructed or under construction on or before January 1, 2025, and would authorize the display be by, or in accordance, with a discretionary approval other than a local ordinance. The bill would require, for the exemption, an advertising display on which construction commences on or after January 1, 2025, and that is located more than one mile from the premises of an arena, to be located at least 5,000 feet from any advertising display for a different arena authorized pursuant to these provisions, except in the City of Inglewood. The bill would require the department, for an advertising display on which construction commences on or after January 1, 2025, to determine whether the proposed ordinance or other discretionary approval results in advertising displays that are consistent with federal law and the state’s Federal Highway Administration obligations, as specified. If the department raises an objection based on those criteria, the bill would prohibit the advertising display from being erected. The bill would reduce the minimum duration of a sponsorship marketing plan to qualify for the exemption from 1 year to 120 days. The bill would require an owner of an advertising display exempted pursuant to this bill, on which construction commences on or after January 1, 2025, to follow specified labor standards during construction of the advertising display, including securing the use of a skilled and trained workforce, as defined, to complete the advertising display, except as specified.
This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Inglewood.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 5272 of the Business and Professions Code is amended to read:

5272.
 (a) With the exception of Article 4 (commencing with Section 5300) and Sections 5400 to 5404, inclusive, this chapter does not apply to any advertising display used exclusively for any of the following purposes:
(1) To advertise the sale, lease, or exchange of real property on which the advertising display is placed.
(2) To advertise directions to, and the sale, lease, or exchange of, real property for which the advertising display is placed, provided except that this exemption does not apply to advertising displays visible from a highway and subject to the Highway Beautification Act of 1965 (23 U.S.C. Sec. 131).
(3) To designate the name of the owner or occupant of the premises or to identify the premises.
(4) To advertise the business conducted, services rendered, or goods produced or sold on the property on which the advertising display is placed if the display is on the same side of the highway and within 1,000 feet of the point on the property or within 1,000 feet of the entrance to the site at which the business is conducted, services are rendered, or goods are produced or sold.
(5) To display only noncommercial public health, emergency, and safety messages from the County of San Joaquin, on public property and equipment owned and operated by the County of San Joaquin in conformance with state law, federal law, regulations, and agreements.
(b) With the exception of Article 4 (commencing with Section 5300) and Sections 5400 to 5404, inclusive, this chapter does not apply to any advertising display used exclusively either to advertise products, goods, or services sold by persons on the premises of an arena on a regular basis, or to advertise products, goods, or services marketed or promoted on the premises of an arena pursuant to a sponsorship marketing plan, if all of the following conditions are met:
(1) The arena is capable of providing a venue for professional sports on a permanent basis.
(2) The arena has a capacity of 15,000 or more seats.
(3) The arena is constructed or under construction before January 1, 2025.

(3)

(4) The advertising display is either of the following:
(A) Located on the premises of the arena.
(B) Has been authorized as of January 1, 2021, 2030, by, or in accordance with, a local ordinance, ordinance or other discretionary approval, including, but not limited to, a specific plan or sign district adopted in connection with the approval of the arena that benefits the arena and that is adopted by the city, county, or city and county, bears the name or logo of the arena, and is visible when approaching offramps from the interstate, primary, or state highways used to access the premises of the arena. No arena shall be permitted more than two advertising displays allowed under this subparagraph.
(c) (1) Any advertising display erected pursuant to subdivision (b) and located on the premises of the arena shall be lawful only if authorized by, or in accordance with, an ordinance, ordinance or other discretionary approval, including, but not limited to, a specific plan or plan, sign district, or conditional use permit adopted by the city, county, or city and county, that regulates advertising displays on the premises of the arena by identifying the specific displays or establishing regulations that include, at a minimum, all of the following:
(A) Number of signs and total signage area allowed.
(B) Maximum individual signage area.
(C) Minimum sign separation.
(D) Illumination restrictions and regulations, including signage refresh rate, scrolling, and brightness.
(E) Illuminated sign hours of operation.
(2) (A) Authorization of advertising displays under subdivision (b) is subject to the owner of the advertising display submitting to the department a copy of the ordinance or other discretionary approval adopted by the city, county, or city and county in which the arena is located authorizing the advertising display and, for signs located on the premises of the arena, identification of the provisions of the ordinance or other discretionary approval required under paragraph (1). The department shall certify that the proposed ordinance or other discretionary approval meets the minimum requirements contained in paragraph (1).
(B) (i) For an advertising display on which construction commences on or after January 1, 2025, authorized pursuant to subdivision (b), the department shall, within 60 days of receiving the copy of the proposed ordinance or other discretionary approval pursuant to subparagraph (A), determine whether the proposed ordinance or other discretionary approval results in signs that are consistent with federal law and the state’s Federal Highway Administration obligations.
(ii) If the department does not raise an objection with a written justification within the timeline prescribed in clause (i), the advertising display shall be deemed in compliance and may be erected. If the department raises an objection with a written justification pursuant to clause (i), the advertising display shall not be erected.
(3) An advertising display authorized pursuant to subdivision (b) shall not advertise products, goods, or services related to tobacco, firearms, or sexually explicit material.
(4) An advertising display on which construction commences on or after January 1, 2025, that is authorized pursuant to subdivision (b) and that is located more than one mile from the premises of an arena shall be located at least 5,000 feet from any advertising display for a different arena authorized pursuant to this section. This paragraph shall not apply to an advertising display authorized pursuant to subdivision (b) that is located within the City of Inglewood.

(4)

(5) This chapter does not limit a local government from adopting ordinances prohibiting or further restricting the size, number, or type of advertising displays permitted by this section.
(d) (1) Except as provided in paragraph (2), for an advertising display on which construction commenced on or after January 1, 2025, authorized pursuant to subdivision (b), all of the following apply:
(A) All construction workers employed in the execution of the project shall be paid at least the general prevailing rate of per diem wages for the type of work and geographic area, as determined by the Director of Industrial Relations under Sections 1773 and 1773.9 of the Labor Code, except that apprentices registered in programs approved by the Chief of the Division of Apprenticeship Standards may be paid at least the applicable apprentice prevailing rate. All of the following shall apply:
(i) The owner of the display shall ensure that the prevailing wage requirement is included in all contracts for the performance of the work.
(ii) All contractors and subcontractors at every tier shall pay to all construction workers employed in the execution of the project at least the general prevailing rate of per diem wages, except that apprentices registered in programs approved by the Chief of the Division of Apprenticeship Standards may be paid at least the applicable apprentice prevailing rate.
(iii) Except as provided in clause (v), all contractors and subcontractors at every tier shall maintain and verify payroll records pursuant to Section 1776 of the Labor Code and make those records available for inspection and copying as provided by that section.
(iv) Except as provided in clause (v), the obligation of all contractors and subcontractors at every tier to pay prevailing wages may be enforced by the Labor Commissioner through the issuance of a civil wage and penalty assessment under Section 1741 of the Labor Code, which may be reviewed under Section 1742 of the Labor Code, within 18 months after the completion of the project, by an underpaid worker through an administrative complaint or civil action, or by a joint labor-management committee through a civil action under Section 1771.2 of the Labor Code. If a civil wage and penalty assessment is issued, the contractor, subcontractor, and surety on a bond or bonds issued to secure the payment of wages covered by the assessment shall be liable for liquidated damages under Section 1742.1 of the Labor Code.
(v) Clauses (iii) and (iv) do not apply if all contractors and subcontractors at every tier performing work on the project are subject to a project labor agreement that requires the payment of prevailing wages to all construction workers employed in the execution of the project and provides for enforcement of that obligation through an arbitration procedure.
(vi) Notwithstanding subdivision (c) of Section 1773.1 of the Labor Code, the requirement that employer payments not reduce the obligation to pay the hourly straight time or overtime wages found to be prevailing shall not apply if otherwise provided in a bona fide collective bargaining agreement covering the worker. The requirement to pay at least the general prevailing rate of per diem wages does not preclude use of an alternative workweek schedule adopted under Section 511 or 514 of the Labor Code.
(B) The owner of the display shall require in all contracts for the performance of work that every contractor and subcontractor at every tier will individually use a skilled and trained workforce to complete the project. All of the following shall apply:
(i) Every contractor and subcontractor at every tier shall use a skilled and trained workforce to complete the project.
(ii) Except as provided in clause (iii), the owner shall provide to the department, on a monthly basis while the project or contract is being performed, a report demonstrating compliance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code. A monthly report provided to the department under this clause shall be a public record under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code) and shall be open to public inspection. An owner that fails to provide a monthly report demonstrating compliance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code shall be subject to a civil penalty of ten thousand dollars ($10,000) per month for each month for which the report has not been provided. Any contractor or subcontractor that fails to use a skilled and trained workforce shall be subject to a civil penalty of two hundred dollars ($200) per day for each worker employed in contravention of the skilled and trained workforce requirement. Penalties may be assessed by the Labor Commissioner within 18 months of completion of the project using the same procedures for issuance of civil wage and penalty assessments under Section 1741 of the Labor Code, and may be reviewed under the same procedures in Section 1742 of the Labor Code. Penalties shall be paid to the State Public Works Enforcement Fund.
(iii) Clause (ii) does not apply if all contractors and subcontractors at every tier performing work on the project are subject to a project labor agreement that requires compliance with the skilled and trained workforce requirement and provides for enforcement of that obligation through an arbitration procedure.
(2) Notwithstanding paragraph (1), if the department has certified an ordinance or other discretionary approval pursuant to subparagraph (A) of paragraph (2) of subdivision (c) before January 1, 2025, an advertising display on which construction commenced on or after January 1, 2025, pursuant to the ordinance or other discretionary approval, as may be amended from time to time, shall not be subject to this subdivision, provided the ordinance or other discretionary approval continues to meet the minimum requirements contained in paragraph (1) of subdivision (c).

(d)

(e) As used in this section, “the premises of an arena” means either of the following:
(1) A venue for indoor or outdoor sports, concerts, or other events.
(2) Any development project or district encompassing the venue, adjacent to it, or separated from it only by public or private rights-of-way, the boundaries of which have been set by the city, county, or city and county in which the arena is located. The development project or district must be contiguous and may not extend more than 1,000 feet beyond the arena structure or any structure physically connected to the arena structure.
(f) (1) As used in this section, “project labor agreement” has the same meaning as defined in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code.
(2) As used in this section, “skilled and trained workforce” has the same meaning as defined in subdivision (d) of Section 2601 of the Public Contract Code and as described in Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code.

(e)

(g) As used in this section, “sponsorship marketing plan” means an agreement between the property owner, facility owner, facility operator, or occupant of the premises of an arena and a sponsor pursuant to which the sponsor is allowed to include its logo, slogan, or advertising on advertising displays and that meets both of the following conditions:
(1) The sponsorship marketing plan is for a period of not less than one year. 120 days.
(2) The sponsorship marketing plan grants the sponsor the opportunity to display its logo, slogan, or advertising in the interior of structures on the premises of an arena, or conduct promotions, public relations, or marketing activities on the premises of an arena.

(f)

(h) Authorization of an advertising display under subdivision (b) that is a message center display is subject to the owner of the display complying with one of the following conditions:
(1) Making a message center display within the premises of the arena available on a space-available basis for use by the department or the Department of the California Highway Patrol for public service messages, including Emergency Alert System (Amber Alert) messages disseminated pursuant to Section 8594 of the Government Code, and messages containing, among other things, reports of commute times, drunk driving awareness messages, reports of accidents of a serious nature, and emergency disaster communications.
(2) Making a message center display not subject to this section that is under the control of the owner of the advertising display available on a space-available basis for public service messages in a location acceptable to the department and the Department of the California Highway Patrol.
(3) Providing funding to the department for the installation of a message center display to accommodate those public service messages, which may include funding as part of mitigation in connection with the approval of the arena by the city, county, or city and county.

(g)

(i) If an advertising display authorized under subdivision (b) is subject to a notice from the United States Department of Transportation, the Federal Highway Administration, or any other applicable federal agency to the state that the operation of that display will result in the reduction of federal aid highway funds provided in Section 131 of Title 23 of the United States Code, authorization of the display under subdivision (b) 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. Failure to remove the advertising copy pursuant to this subdivision shall result in a civil fine, imposed by the California Department of Transportation, department, of ten thousand dollars ($10,000) per day until the advertising copy is removed. The department shall not assume any liability in connection with cessation of operation or removal of an advertising display or advertising copy pursuant to this subdivision.

(h)

(j) The city, county, or city and county adopting the ordinance authorizing the displays erected pursuant to this section shall have primary responsibility for ensuring that the displays remain in conformance with all provisions of the ordinance and of this section. If the city, county, or city and county fails to ensure that the displays remain in conformance with all provisions of the ordinance and of this section after 30 days of receipt of a written notice from the department, the city, county, or city and county shall hold the department harmless and indemnify the department for all costs incurred by the department to ensure compliance with the ordinance and this section or to defend actions challenging the adoption of the ordinance allowing the displays.

(i)

(k) An advertising display lawfully erected on or before December 31, 2013, in conformity with subdivision (e) of this section as it read on that date, shall remain authorized, subject to the terms of that subdivision.

SEC. 2.

 The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the of the unique need to build certain advertising displays within the City of Inglewood.