Outdoor advertising displays: arenas: exemptions.

The current arena advertising exemption in Section 5272 now has a sunset date of January 1, 2028, after which it is automatically repealed.

A new Section 5272 is added that becomes operative on January 1, 2028, creating a two-phase regulatory framework for arena advertising displays.

The Inglewood exemption from the separation requirement is expanded in the new 2028 section to also cover displays 'authorized by the existing exemption' (i.e., those grandfathered under the pre-2028 rules), not just displays located within the City of Inglewood.

The current (pre-2028) arena exemption is simplified to only two display options: located on the arena premises, or authorized as of January 1, 2021 by local ordinance. The third option (authorization as of January 1, 2032) and the construction deadline requirement are removed from the current version and moved to the new 2028 section.

In the current version, the authorization requirement is narrowed from 'ordinance or other discretionary approval' to just 'ordinance,' removing conditional use permits and other discretionary approvals as valid authorization mechanisms for the pre-2028 period.

The 5,000-foot separation requirement for off-site arena advertising displays is removed from the current version and only applies under the new 2028 section to displays authorized after January 1, 2027 and located more than one mile from an arena.

The federal consistency determination requirement (that Caltrans or FHWA must confirm a display will not reduce federal aid funds) is removed from the current version and only applies to displays authorized after January 1, 2027 under the new 2028 section.

Removed the City of Inglewood exception from the 5,000-foot separation requirement between arena advertising displays. Previously, displays located in Inglewood were exempt from the distance rule; now the separation requirement applies uniformly except for displays authorized under the existing (pre-2028) exemption.

Added Section 2.5, which provides an alternative version of Section 5272 incorporating changes proposed by SB 1228. This section is operative only if both AB 2717 and SB 1228 are enacted and AB 2717 is enacted last, creating a conditional legislative mechanism to harmonize the two bills.

Corrected typographical errors in the bill title ('amend amend' changed to 'amend') and updated page numbering from 94 to 93 throughout the document.

A new category (subparagraph B) is added for arena advertising displays that were authorized as of January 1, 2021 by a local ordinance or discretionary approval adopted in connection with the approval of the arena itself. This creates a third path to exemption alongside displays on the premises and displays authorized by 2032.

The federal-aid determination requirement (that Caltrans or FHWA confirm no reduction in federal highway funds) is narrowed from applying to all displays under the arena exemption to only those under the new category C that are authorized by an ordinance adopted after January 1, 2027.

The 5,000-foot minimum separation between displays for different arenas is narrowed to apply only to displays under category C authorized after January 1, 2027, and an explicit exception is added for displays authorized under the new category B (those approved in connection with the arena).

The entire prevailing wage and skilled workforce construction requirement is deleted. Previously, any arena advertising display on which construction commenced on or after January 1, 2027 had to pay general prevailing wages, use a skilled and trained workforce, submit monthly compliance reports, and face civil penalties of $10,000 per month for reporting failures and $200 per day per worker for non-compliance.

The definitions of 'project labor agreement' and 'skilled and trained workforce' are removed from the section, consistent with the deletion of the prevailing wage provisions.

Removed the 60-day deemed-consistency rule: previously, if Caltrans did not issue a written notice within 60 days that a proposed arena advertising display was inconsistent with the Highway Beautification Act of 1965, the display was automatically deemed consistent and could be erected. This automatic approval-by-silence pathway no longer exists.

The federal compliance determination requirement (that the department or FHWA must determine the display will not reduce federal aid funds or be inconsistent with federal law) is now the sole pre-placement condition under subdivision (c)(2)(B), rather than one of two parallel requirements. The provision was restructured from a two-part (B) clause into a single (B) with sub-clauses (i) and (ii).

The separate legislative intent section (former Section 2) expressing the Legislature's intent to enact future legislation exempting advertising displays authorized on or after January 1, 2021 from the Outdoor Advertising Act was deleted entirely. The bill now consists of a single operative section amending Business and Professions Code Section 5272.

A new federal compliance determination requirement was added at subdivision (c)(2)(B). Before an arena advertising display may be placed, the Department of Transportation must determine that the display will not cause a reduction in federal aid funds or be inconsistent with any federal law, regulation, or state-federal agreement. If the department cannot make this determination, it must request the Federal Highway Administration to do so, and the display may only be placed upon receiving a favorable federal determination.

The fiscal committee designation changed from 'no' to 'yes,' indicating the bill now carries fiscal implications requiring review by the Assembly and Senate fiscal committees, likely due to the new interagency coordination and potential enforcement costs associated with the federal compliance requirement.

The bill now contains full operative text amending Section 5272 of the Business and Professions Code, replacing the prior version which was only a statement of legislative intent with no legal effect.

Defines eligible arenas as professional sports venues with a capacity of 15,000 or more seats that are fully constructed or under construction on or before January 1, 2027.

Requires the arena to have been authorized by a local ordinance or other discretionary approval (including specific plans, sign districts, or conditional use permits) as of January 1, 2032, that benefits the arena. Limits each arena to a maximum of two advertising displays.

Requires local governments to adopt ordinances with minimum standards including number of signs, total signage area, maximum individual sign area, minimum separation, illumination restrictions (refresh rate, scrolling, brightness), and illuminated sign hours of operation.

Requires advertising displays for different arenas (except in the City of Inglewood) to be located at least 5,000 feet from each other if more than one mile from the arena premises.

For construction commencing on or after January 1, 2027, requires payment of general prevailing rate of per diem wages to all construction workers and use of a skilled and trained workforce, with civil penalties of $10,000 per month for failure to file compliance reports and $200 per day per worker for workforce violations.

Prohibits arena advertising displays from advertising products, goods, or services related to tobacco, firearms, or sexually explicit material.

For displays with construction commencing on or after January 1, 2027, the Department of Transportation has 60 days to issue written notice justifying a determination that the display is inconsistent with the Highway Beautification Act. If no notice is issued within 60 days, the display is deemed consistent and may be erected.

If the U.S. Department of Transportation or Federal Highway Administration notifies the state that operation of a display will result in reduction of federal aid highway funds, the display owner must remove all advertising copy within 60 days or face a civil fine of $10,000 per day.

Requires the local government that adopted the authorizing ordinance to hold the state harmless and indemnify the Department of Transportation for all costs if it fails to ensure display compliance within 30 days of written notice.

The authorization date for the local ordinance or discretionary approval was changed from January 1, 2021 (in the introduced version's digest) to January 1, 2032 in the amended text, significantly extending the window for arena authorization.