Article
4.6. Transportation Revenue Partnership Act
172.
This article shall be known and may be cited as the Transportation Revenue Partnership Act.172.1.
The Legislature finds and declares all of the following:(a) A network of changeable message signs may provide one source of additional transportation funding. The department’s current network of changeable message signs has proven to be an effective way to inform road users of critical safety and transportation-related conditions and of other important information and to protect the safe and efficient utilization of the highways.
(b) Changeable message signs have played a critical role in the success of California’s Emergency Alert System, initiated by Assembly Bill 415 in 2002 (Chapter 517, Statutes of 2002). The current network of changeable message signs operated by the department, in coordination with the Department of the California Highway Patrol (CHP) and the Office of Traffic Safety, has helped keep
our children and families safer by bringing public resources and private citizens together to help save lives during emergencies.
(c) Recent advances in technology have made it possible to create a more reliable network of changeable message signs that combine text with graphics in order to rapidly and clearly communicate important information to the users of California’s highways more safely and effectively than the current network of changeable message signs. This advanced technology could improve the effectiveness and reliability of the network of changeable message signs, thereby enhancing the health, safety, and welfare of the people of California.
(d) Private sponsors and advertisers could provide additional transportation funding in return for the right to place advertisements on the changeable message signs in a manner that does not detract from their system management function.
(e) All changeable message signs on
state highway rights-of-way shall be placed or upgraded in accordance with department guidelines for orientation toward motorists on the traveled way and minimal impact outside of those rights-of-way, and the department shall retain the right to determine whether a location will negatively impact a residential area or community.
(f) The authority to use changeable message signs for commercial advertising shall require that the advertising and department messaging, when displayed in combination, is safe and does not create an unsafe distraction to motorists, and will require either a waiver from the Federal Highway Administration or a change in federal law.
172.2.
For purposes of this article, the following definitions shall apply:(a) “Agreement” means a legally enforceable agreement regarding changeable message signs or the network of changeable message signs, including, but not limited to, a lease, highway improvement agreement, easement, encroachment permit, or operation and maintenance agreement.
(b) “Best value” means a value determined by objective criteria that may include, but is not limited to, features, experience, functions, life cycle costs, price, and other criteria deemed appropriate by the department.
(c) “Changeable message sign” means a department-owned sign that is designed to display various messages that benefit the public, such as traffic information or advertising, by mechanical or electronic means, including, but not
limited to, light emitting diode (LED) and liquid crystal display (LCD) technology.
(d) “Department” means the Department of Transportation.
(e) “Existing camera” means a camera located on a changeable message sign on January 1, 2010.
(f) “Experimental project” means an agreement with a person to study, plan, design, construct, reconstruct, develop, finance, maintain, rebuild, improve, repair, lease, or operate a state-of-the art, full-color network of changeable message signs within the rights-of-way of the state highway system.
(g) “Network” means the integrated network of enhanced changeable message signs. The network shall include upgraded changeable message signs at existing sign locations, and new changeable message signs at any additional locations as determined by the department.
(h) “Person” means an individual, partnership, limited partnership, trust, estate,
association, corporation, limited liability company, or other public or private entity.
172.3.
(a) Notwithstanding any provision of law, and upon approval of the Federal Highway Administration by the grant of a waiver or a change in federal law authorizing the department to do so, the department may enter into an agreement to conduct an experimental project to utilize changeable message signs within the state highway right-of-way in a manner to best effectuate the purposes of this article. The department may issue requests for proposals and develop tentative agreements before federal approval is obtained. The department may provide services for which it is reimbursed with respect to preliminary design, inspection, and oversight of the experimental project.(b) The agreement described in subdivision (a) shall do all of the following:
(1) Provide for construction or reconstruction,
operation, and maintenance of the network of changeable message signs for an initial period that shall not exceed 20 years.
(2) Provide for complete reversion of the privately constructed, improved, operated, and maintained changeable message signs to the department at the expiration of the agreement at no charge to the department and free and clear of any encumbrances.
(3) Specify that the department shall retain ownership of the changeable message signs, notwithstanding any improvement or enhancement to the changeable message signs.
(4) Provide that emergency notifications and traveler information shall have priority over advertising.
(5) Provide that the department, in consultation with the Department of the California Highway Patrol, shall retain the ability to make a determination on the safety of the changeable message signs, and may take those actions deemed necessary to protect public
safety.
(6) Require the person to identify, defend, and hold harmless, the department for any injury or damage in connection with the advertising on changeable message signs.
(c) Advertising revenue derived from the experimental project shall be allocated between the person selected and the department in accordance with the agreement as provided in subdivision (a) of Section 172.4. Advertising revenue derived from the experimental project and received by the department shall be subject to appropriation by the Legislature.
(d) The department shall have full responsibility and liability for the operation and maintenance of all existing cameras.
(e) The changeable message signs on state highway rights-of-way shall meet the design, construction, and operating requirements in the department’s standards and guidelines, including, but not limited to, controls, such as state-of-the-art sensors that control
the brightness of the display based on the surrounding ambient light levels and other technologies muting adjacent glare, that focus the zone of vision toward motorists on the traveled way and to prevent neighborhood impacts in the vicinity of the changeable message signs.
(f) The department, in consultation with the Department of the California Highway Patrol, shall retain the ultimate right to determine whether the location of an existing changeable message sign or proposed location for the placement of a new changeable message sign will negatively impact a residential area or community. If the department determines that the location of a changeable message sign will have a negative impact, the department may, in its discretion, either place additional requirements on its placement or not allow its placement.
172.4.
(a) The department may enter into an agreement, as described in Section 172.3, with any person to place advertisements on changeable message signs, to receive funds for commercial advertising messages on those changeable message signs, except during times and to the extent that they are in use by the department, and to share revenues generated in connection with their use for commercial advertising in furtherance of the public interest.(b) The network of changeable message signs shall, during the term of the experimental project, be deemed to be part of the state highway system for purposes of identification and enforcement of traffic laws, and the purposes of Division 3.6 (commencing with Section 810) of Title 1 of the Government Code.
172.5.
(a) Advertising on changeable message signs shall be in the form and under those conditions as may be determined by the department and as may be set forth in guidelines and procedures to be developed and adopted by the department, and shall not interfere with any traveler-information or emergency notification message function of the network of changeable message signs. All changeable message signs subject to this article shall be exempt from Section 5408 of the Business and Professions Code and from any and all regulations promulgated in connection with Section 5408 of the Business and Professions Code.(b) The experimental nature of the program established by this article may require frequent modifications to the guidelines and procedures. The department shall not be required to adopt regulations to effectuate each
modification to the guidelines and procedures. The department shall post modifications to the guidelines and procedures on the department’s Internet Web site and distribute directly to any person requesting to be notified of those modifications at least 30 days prior to the effective date of the modifications to the guidelines and procedures.
172.6.
The department shall not enter into an agreement with any person that would cause or permit any changeable message sign to display or advertise tobacco, firearms, or sexually explicit material. The department shall adopt policies and guidelines in connection with the content of the advertising.172.7.
The department may use the changeable message signs for emergency notification, traveler information, and motorist safety and awareness campaigns without providing compensation to the person with whom it enters into an agreement pursuant to this article.172.8.
When choosing the person with which to partner pursuant to Section 172.3 to effectuate the purposes of this article, the department shall select, pursuant to a competitive process, the person that the department determines will provide the best value. The competitive process shall require the bidders to provide a technical proposal, which shall identify the proposed improvements to the changeable message sign network with a cost and revenue proposal. The department’s selection criteria shall include the demonstrated competence, experience, and qualifications of the potential person to design, construct, operate, and maintain the changeable message sign network; the potential person’s demonstrated competence and capacity to integrate changeable message signs into an efficient network and to maintain and operate the necessary equipment to manage the network and
related software systems; cost and revenue projections based on advertising revenue; and any other criteria as the department, in its sole discretion, may determine to consider. The department may retain a consultant or advisor to assist in preparing the best value criteria, selection of a person, and oversight of the program, provided that the consultant or advisor may not bid on the experimental project or work as an employee, consultant, or advisor to any person or persons seeking to bid on the experimental project.172.9.
(a) At least 30 days prior to executing an agreement pursuant to Section 172.3, the department shall submit the agreement to the appropriate fiscal and policy committees of the Legislature.(b) No later than one year after execution of an agreement pursuant to Section 172.3, and every two years thereafter until the completion of the experimental project, the department shall submit a report to the fiscal and policy committees of the Legislature with jurisdiction over transportation matters. The report shall include, but not be limited to, all of the following:
(1) The status of implementation of the agreement, including the number of signs placed and the locations of the signs placed.
(2) The amount of revenue received and the costs incurred by the department
from the experimental project, including costs incurred prior to the time the department entered into an agreement.
(3) An assessment of the effect the experimental project has had on public safety, emergency notification, traveler information, and motorist safety and awareness campaigns.
(4) A list of the types of advertising placed on the signs.
172.10.
No agreement shall be entered into pursuant to this article on or after January 1, 2014.