Digital sign demonstration pilot program.

Existing law, the Outdoor Advertising Act, provides for the regulation by the Department of Transportation of advertising displays, as defined, within view of public highways. This bill would require the department to establish a digital sign demonstration program. As part of the program, the bill would authorize the department, subject to federal approval, to enter into specified comprehensive development lease agreements until January 1, 2024, pursuant to a best value competitive procurement process for pilot projects with public or private entities or a consortia of those entities, to install and operate up to 25 new digital signs within the rights-of-way of the state highway system that would display commercial advertising and public service messages. The bill would authorize the use of the digital signs for emergency messages, as needed, and require dedicated time to be provided to the department to use the digital signs for traveler information and motorist safety and awareness campaigns and any other public messaging desired by the state, without providing additional compensation to the contracting entity. The bill would provide for the contracting entity with which the department has entered into an agreement to contract and receive funds for the placement of commercial advertisements that meet certain standards established by the department. The bill would require revenues derived from a pilot project to be allocated between the department and the contracting entity with which the department has entered into the agreement and would require those revenues received by the department to be deposited in the State Highway Account. The bill would authorize the department to exercise any power possessed by it with respect to transportation projects to facilitate the pilot projects and to adopt guidelines and procedures relative to advertising on the digital signs. The bill would require the Transportation Agency, in coordination with the department and the Department of the California Highway Patrol, to annually submit a specified report beginning July 1, 2019, and until July 1, 2024, to the fiscal and policy committees of the Legislature having jurisdiction over transportation matters.