Bad Sign? Or Bad Law?

This seems to imply that it’s OK to run over people if they aren’t in the crosswalk.
Sign saying: Stop for pedestrians within crosswalk.
I feel obliged to point out that in order to take this photo, I had to step out of the crosswalk. And yes, I did notice the oncoming semi. (That street is closed most Sundays for outdoor concerts and the like. The truck was there to pick up the equipment.)