Amended  IN  Assembly  March 19, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Assembly Bill
No. 2717

Introduced by Assembly Member Caloza

February 20, 2026

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


LEGISLATIVE COUNSEL'S DIGEST


AB 2717, as amended, Caloza. Outdoor advertising displays: arenas: 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 most of its provisions certain advertising displays, including, among others, any advertising display used exclusively 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 specified conditions are met, including, among others, that the advertising display has been authorized as of January 1, 2021, by, or in accordance with, a local ordinance, as specified.

This bill would state the intent of the Legislature to enact future legislation exempting certain advertising displays that have been authorized by, or in accordance with, a local ordinance on or after January 1, 2021, from the Outdoor Advertising Act.

The act exempts from most of its provisions an advertising display used exclusively to advertise products, goods, or services that are either sold on the premises of an arena or marketed or promoted on the premises of an arena if, among other conditions, the arena has been authorized, as of January 1, 2021, by, or in accordance with, a local ordinance, including, but not limited to, a specific plan or sign district adopted in connection with the approval of the arena, as provided. The act requires an advertising display that is located on the premises of an arena and that was erected pursuant to the exemption also to be authorized by, or in accordance with, an ordinance, including, but not limited to, a specific plan or sign district, as provided.
This bill would instead require, for purposes of the exemption, the arena to have been authorized, as of January 1, 2032, by, or in accordance with a local ordinance or other discretionary approval, including, but not limited to, a specific plan or sign district that benefits the arena, as specified. The bill would also limit the exemption to an arena that is fully constructed or under construction on or before January 1, 2027. The bill would instead require an advertising display that is located on the premises of an arena and that was erected pursuant to the exemption to be authorized by an ordinance or other discretionary approval, including, but not limited to, a specific plan, sign district, or conditional use permit, as specified. The bill would require, for an advertising display on which construction commences on or after January 1, 2027, the department to issue a written notice, within 60 days of receipt of an ordinance or other discretionary approval, justifying the department’s determination that the proposed advertising display is inconsistent with applicable federal law, as specified. If the department does not issue the notice within the 60 days, the bill would deem the proposed advertising display to be consistent with applicable federal law, as specified.
Except for advertising displays located in the City of Inglewood, this bill would require certain advertising displays placed pursuant to the exemption for one arena to be located at least 5,000 feet from an advertising display authorized pursuant to the exemption for another arena.
This bill would also require, for an advertising display authorized pursuant to the exemption and on which construction commences on or after January 1, 2027, except as specified, the payment of at least the general prevailing rate of per diem wages to all construction workers employed in the execution of the project and the use of a skilled and trained workforce to complete the project, as provided.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   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 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) On or before January 1, 2027, the arena is fully constructed or under construction.

(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, 2032, 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 An arena shall not 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 or approved 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 or approved 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) For an advertising display on which construction commences on or after January 1, 2027, the department shall have 60 days after its receipt of a copy of the ordinance or other discretionary approval pursuant to subparagraph (A) to issue to the owner of the proposed advertising display written notice with justification of any determination by the department that the proposed advertising display is inconsistent with the Highway Beautification Act of 1965 (23 U.S.C. Sec. 131) or the department’s obligations under that act. If the department issues a written notice within the 60-day period, the proposed advertising display shall not be erected. If the department does not issue a written notice within the 60-day period, the proposed advertising display shall be deemed to be consistent with the Highway Beautification Act of 1965 (23 U.S.C. Sec. 131) and the department’s obligations under that act for purposes of this section, and may 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, 2027, 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 an 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)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 shall be contiguous and shall not extend more than 1,000 feet beyond the arena structure or any structure physically connected to the arena structure.

(e)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 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.

(d) (1) Except as provided in paragraph (2), for an advertising display on which construction commences on or after January 1, 2027, and that is authorized pursuant to subdivision (b), all of the following shall 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, and 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, and 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, 2027, an advertising display on which construction commences on or after January 1, 2027, pursuant to the ordinance or other discretionary approval, as may be amended from time to time, shall not be subject to paragraph (1), provided the ordinance or other discretionary approval continues to meet the minimum requirements described in paragraph (1) of subdivision (c).

(f)

(e) 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)

(f) 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 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)

(g) 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)

(h) 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.
(i) For purposes of this section, the following definitions apply:
(1) “Premises of an arena” means either of the following:
(A) A venue for indoor or outdoor sports, concerts, or other events.
(B) 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 shall be contiguous and shall not extend more than 1,000 feet beyond the arena structure or any structure physically connected to the arena structure.
(2) “Project labor agreement” has the same meaning as defined in Section 2500 of the Public Contract Code.
(3) “Skilled and trained workforce” has the same meaning as defined in 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.
(4) “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:
(A) The sponsorship marketing plan is for a period of not less than 120 days.
(B) 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.

SECTION 1.

It is the intent of the Legislature to enact future legislation exempting certain advertising displays that have been authorized by, or in accordance with, a local ordinance on or after than January 1, 2021, from the Outdoor Advertising Act.