BILL NUMBER: AB 1386	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 23, 2009
	AMENDED IN ASSEMBLY  APRIL 22, 2009
	AMENDED IN ASSEMBLY  APRIL 13, 2009

INTRODUCED BY   Assembly Member Hayashi

                        FEBRUARY 27, 2009

   An act to amend Sections 14528.5 and 14528.55 of the Government
Code, and to amend Sections 392, 485, and 538 of the Streets and
Highways Code, relating to transportation, and making an
appropriation therefor.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1386, as amended, Hayashi. State highways.
   Existing law authorizes a city or county in which a planned
transportation facility was to be located on State Highway Route 238
in Alameda County to develop and file with the California
Transportation Commission a local alternative transportation 
improvement  program that addresses transportation problems and
opportunities, and provides for the use of revenues from the sales of
excess properties acquired for the planned state facility in order
to fund the local alternative  transportation improvement 
program, but limits the use of revenues from excess property sales to
state highway purposes. Existing law provides that the commission
may not approve a local alternative  transportation improvement
 program under these provisions after July 1, 2010. Similar
provisions apply to State Highway Route 84 in the Cities of Fremont
and Union City, except that the use of revenues from excess property
sales in that corridor are limited to state highway purposes or
projects in the local voter-approved transportation sales tax
measure.
   This bill would modify the restriction limiting use of revenues
from excess property sales to state highway purposes applicable to
State Highway Route 238 by authorizing those revenues to be used for
any highway purpose. This bill would require revenues from excess
property sales for State Highway Route 238 and State Highway Route 84
to be deposited into separate accounts in the Special Deposit Fund,
a continuously appropriated fund, to be available for expenditure by
local agencies for purposes of an approved local alternative
transportation  improvement  program for the applicable
corridor route. The bill would thereby make an appropriation. 
   This bill would also authorize local agencies to advance projects
in the local alternative transportation improvement program with
local funds, to be repaid when revenues from excess property sales
become available, as specified. This bill would require the
California Transportation Commission to adopt guidelines in that
regard. 
   Existing law provides for state highways to be constructed, as
determined by the California Transportation Commission, on routes
authorized by law. Existing law provides for relinquishment by the
commission of state highways to local agencies under certain
conditions.
   This bill would authorize the commission to relinquish portions of
State Highway Routes 92, 185, and 238 in the City of Hayward to that
city subject to various conditions.
   Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 14528.5 of the Government Code is amended to
read:
   14528.5.  (a) To resolve local transportation problems resulting
from the infeasibility of planned state transportation facilities on
State Highway Route 238 in the City of Hayward and Alameda County,
the city or county in which the planned facilities were to be
located, acting jointly with the transportation planning agency
having jurisdiction over the city or county, may develop and file
with the commission a local alternative transportation improvement
program that addresses transportation problems and opportunities in
the county which were to be served by the planned facilities.
Priorities for funding in the local alternative program shall go to
projects in the local voter-approved transportation sales tax
measure.
   (b) The commission shall have the final authority regarding the
content and approval of the local alternative transportation
improvement program. The commission shall not approve any local
alternative transportation improvement program submitted under this
section after July 1, 2010.
   (c) All proceeds from the sale of the excess properties, less any
reimbursements due to the federal government and all costs incurred
in the sale of those excess properties, shall be allocated by the
commission to fund the approved local alternative transportation
improvement program and shall not be subject to Sections 188 and
188.8 of the Streets and Highways Code. The proceeds shall be used
only for highway purposes.
   (d) (1) The department shall maintain a separate account in the
state's Special Deposit Fund for the deposit of funds derived from
the sale of excess properties pursuant to subdivision (c). All
proceeds received by the department from the sale of those excess
properties that are available pursuant to subdivision (c) for the
local alternative transportation improvement program, less
reimbursement for costs incurred by the department for fund
administration, shall be deposited in the account, along with all
interest earnings generated by funds in the account.
   (2) Funds in the account shall be available for expenditure by
local agencies for projects designated in the local alternative
transportation improvement program approved by the commission
pursuant to this section.
   (e) This section does not apply to those highways that are in the
National System of Interstate and Defense Highways.
   (f) This section applies only to State Highway Route 238.
   (g) Section 14528.8 does not apply to projects undertaken pursuant
to this section. 
   (h) A local jurisdiction may, with the concurrence of the
appropriate transportation planning agency, the commission, and the
department, advance a project included in the local alternative
transportation improvement program prior to the availability of
sufficient funds from the sale of excess properties through the use
of its own funds. A project advanced in this manner shall be
deliverable by the state, or by the local jurisdiction pursuant to
agreement, when proposed by the local jurisdiction. Advancement of a
project or projects shall not change the priority for funding and
delivery of all projects within the approved local alternative
transportation improvement program.  
   (i) A local agency may enter into an agreement with the
appropriate transportation planning agency, the department, and the
commission to use its own funds to develop, purchase right-of-way
for, and construct a transportation project within its jurisdiction
if the project is one that is included in the adopted local
alternative transportation improvement program and is funded by the
account established in the Special Deposit Fund pursuant to
subdivision (d), and meets all of the following requirements: 

   (1) Pursuant to the agreement, and from funds allocated by the
commission for the project when scheduled in the local alternative
transportation improvement program, the department shall reimburse
the local agency for the actual cost of constructing the project,
including the acquisition of right-of-way. Interest or other debt
service costs incurred by local agencies to finance right-of-way
acquisition or construction for the project are not reimbursable.
Reimbursement made to a local agency pursuant to this subdivision
shall be made from the account established in the Special Deposit
Fund.  
   (2) The amount actually reimbursed to the local agency under
paragraph (1) shall be the amount expended by the local agency for
right-of-way and construction, escalated by the actual construction
cost index between the time of construction award and the time of
commission allocation of reimbursement funding, but not to exceed the
escalated amount programmed for expenditure for the project in the
local alternative transportation improvement program in the
originally scheduled year. If the expenditure of local funds does not
result in the completion of an operable segment of a transportation
project, reimbursement shall be limited to the actual amount expended
by the local agency for right-of-way or partial construction, with
no escalation factor.  
   (3) Pursuant to the agreement, and from funds allocated by the
commission for the project when it was scheduled in the local
alternative transportation improvement program, the department shall
reimburse the local agency for the actual cost of developing the
project with local funds pursuant to this subdivision. Reimbursement
of project development costs shall not exceed 20 percent of estimated
construction costs. In no case shall this reimbursement exceed any
lesser amount mutually agreed to by the department, commission, and
local agency.  
   (4) Reimbursements made to local agencies pursuant to this
subdivision for expenditures of local voter approved sales and use
tax revenues shall be used for the same purposes for which the
imposition of the sales and use tax is authorized.  
   (5) The commission, in consultation with the department and local
transportation officials, shall develop and adopt guidelines to
implement this subdivision.  
   (j) At the same time of its approval of the local alterative
transportation improvement program, the commission, in consultation
with the department and representatives from regional agencies and
local agencies, shall also adopt guidelines to allocate local
alterative transportation improvement program funds for expenditure.
The guidelines shall include, but not be limited to, criteria for
project applications, estimation of costs, assessment of capability
to complete the project, allocation of funds to project phases,
timely expenditure of funds, management of changes to cost, scope,
and schedules, assessment of progress in implementing projects, and
audit requirements. 
  SEC. 2.  Section 14528.55 of the Government Code is amended to
read:
   14528.55.  (a) To resolve local transportation problems resulting
from the infeasibility of planned state transportation facilities on
State Highway Route 84 in the Cities of Fremont and Union City, the
cities or the county in which the planned facilities were to be
located, acting jointly with the transportation planning agency
having jurisdiction over the cities or county, may develop and file
with the commission a local alternative transportation improvement
program that addresses transportation problems and opportunities in
the county that were to be served by the planned facilities.
Priorities for funding in the local alternative program shall go to
projects in the local voter-approved transportation sales tax
measure.
   (b) The commission shall have the final authority regarding the
content and approval of the local alternative transportation
improvement program. The commission shall not approve any local
alternative transportation improvement program submitted under this
section after July 1, 2010.
   (c) All proceeds from the sale of the excess properties, less any
reimbursements due to the federal government and all costs incurred
in the sale of those excess properties, shall be allocated by the
commission to fund the approved local alternative transportation
improvement program and shall not be subject to Sections 188 and
188.8 of the Streets and Highways Code. The proceeds shall be used
only for state highway purposes or for projects in the local
alternative transportation improvement program that are also in the
local voter-approved transportation sales tax measure, subject to
approval by the department.
   (d) (1) The department shall maintain a separate account in the
state's Special Deposit Fund for the deposit of funds derived from
the sale of excess properties pursuant to subdivision (c). All
proceeds received by the department from the sale of those excess
properties that are available pursuant to subdivision (c) for the
local alternative transportation improvement program, less
reimbursement for costs incurred by the department for fund
administration, shall be deposited in the account, along with all
interest earnings generated by funds in the account.
   (2) Funds in the account shall be available for expenditure by
local agencies for projects designated in the local alternative
transportation improvement program approved by the commission
pursuant to this section.
   (e) This section does not apply to those highways that are in the
National System of Interstate and Defense Highways.
   (f) This section only applies to State Highway Route 84.
   (g) Section 14528.8 does not apply to projects undertaken pursuant
to this section. 
   (h) A local jurisdiction may, with the concurrence of the
appropriate transportation planning agency, the commission, and the
department, advance a project included in the local alternative
transportation improvement program prior to the availability of
sufficient funds from the sale of excess properties through the use
of its own funds. A project advanced in this manner shall be
deliverable by the state, or by the local jurisdiction pursuant to
agreement, when proposed by the local jurisdiction. Advancement of a
project or projects shall not change the priority for funding and
delivery of all projects within the approved local alternative
transportation improvement program.
   (i) A local agency may enter into an agreement with the
appropriate transportation planning agency, the department, and the
commission to use its own funds to develop, purchase right-of-way
for, and construct a transportation project within its jurisdiction
if the project is one that is included in the adopted local
alternative transportation improvement program and is funded by the
account established in the Special Deposit Fund pursuant to
subdivision (d), and meets all of the following requirements:
   (1) Pursuant to the agreement, and from funds allocated by the
commission for the project when scheduled in the local alternative
transportation improvement program the department shall reimburse the
local agency for the actual cost of constructing the project,
including the acquisition of right-of-way. Interest or other debt
service costs incurred by local agencies to finance right-of-way
acquisition or construction for the project are not reimbursable.
Reimbursement made to a local agency pursuant to this subdivision
shall be made from the account established in the Special Deposit
Fund.
   (2) The amount actually reimbursed to the local agency under
paragraph (1) shall be the amount expended by the local agency for
right-of-way and construction, escalated by the actual construction
cost index between the time of construction award and the time of
commission allocation of reimbursement funding, but not to exceed the
escalated amount programmed for expenditure for the project in the
local alternative transportation improvement program in the
originally scheduled year. If the expenditure of local funds does not
result in the completion of an operable segment of a transportation
project, reimbursement shall be limited to the actual amount expended
by the local agency for right-of-way or partial construction, with
no escalation factor.
   (3) Pursuant to the agreement, and from funds allocated by the
commission for the project when it was scheduled in the local
alternative transportation improvement program, the department shall
reimburse the local agency for the actual cost of developing the
project with local funds pursuant to this subdivision. Reimbursement
of project development costs shall not exceed 20 percent of estimated
construction costs. In no case shall this reimbursement exceed any
lesser amount mutually agreed to by the department, commission, and
local agency.
   (4) Reimbursements made to local agencies pursuant to this
subdivision for expenditures of local voter approved sales and use
tax revenues shall be used for the same purposes for which the
imposition of the sales and use tax is authorized.
   (5) The commission, in consultation with the department and local
transportation officials, shall develop and adopt guidelines to
implement this subdivision.
   (j) At the same time of its approval of the local alterative
transportation improvement program, the commission, in consultation
with the department and representatives from regional agencies and
local agencies, shall also adopt guidelines to allocate local
alterative transportation improvement program funds for expenditure.
The guidelines shall include, but not be limited to, criteria for
project applications, estimation of costs, assessment of capability
to complete the project, allocation of funds to project phases,
timely expenditure of funds, management of changes to cost, scope,
and schedules, assessment of progress in implementing projects, and
audit requirements. 
  SEC. 3.  Section 392 of the Streets and Highways Code is amended to
read:
   392.  (a) Route 92 is from:
   (1) Route 1 near Half Moon Bay to Route 280.
   (2) Route 280 to Route 580 near Castro Valley and Hayward.
   (b) (1) The commission may relinquish to the City of Hayward the
portion of Route 92 located within the city limits of that city, upon
terms and conditions the commission finds to be in the best
interests of the state, if the department and the city enter into an
agreement providing for that relinquishment.
   (2) A relinquishment under this subdivision shall become effective
immediately after the county recorder's recordation of the
relinquishment resolution containing the commission's approval of the
terms and conditions of the relinquishment.
   (3) On and after the effective date of the relinquishment, both of
the following shall occur:
   (A) The portion of Route 92 relinquished shall cease to be a state
highway.
   (B) The portion of Route 92 relinquished shall be ineligible for
future adoption under Section 81.
   (4) For relinquished portions of Route 92, the City of Hayward
shall maintain signs within its jurisdiction directing motorists to
the continuation of Route 92 or to the state highway system, as
applicable.
  SEC. 4.  Section 485 of the Streets and Highways Code is amended to
read:
   485.  (a) Route 185 is from Route 92 in Hayward to Route 77 in
Oakland.
   (b) (1) The commission may relinquish to the City of Hayward the
portion of Route 185 located within the city limits of that city,
upon terms and conditions the commission finds to be in the best
interests of the state, if the department and the city enter into an
agreement providing for that relinquishment.
   (2) A relinquishment under this subdivision shall become effective
immediately after the county recorder's recordation of the
relinquishment resolution containing the commission's approval of the
terms and conditions of the relinquishment.
   (3) On and after the effective date of the relinquishment, both of
the following shall occur:
   (A) The portion of Route 185 relinquished shall cease to be a
state highway.
   (B) The portion of Route 185 relinquished shall be ineligible for
future adoption under Section 81.
   (4) For relinquished portions of Route 185, the City of Hayward
shall maintain signs within its jurisdiction directing motorists to
the continuation of Route 185 or to the state highway system, as
applicable.
  SEC. 5.  Section 538 of the Streets and Highways Code is amended to
read:
   538.  (a) Route 238 is from Route 680 in Fremont to Route 61 near
San Lorenzo via Hayward.
   (b) (1) The commission may relinquish to the City of Hayward the
portion of Route 238 located within the city limits of that city,
upon terms and conditions the commission finds to be in the best
interests of the state, if the department and the city enter into an
agreement providing for that relinquishment.
   (2) A relinquishment under this subdivision shall become effective
immediately after the county recorder's recordation of the
relinquishment resolution containing the commission's approval of the
terms and conditions of the relinquishment.
   (3) On and after the effective date of the relinquishment, both of
the following shall occur:
   (A) The portion of Route 238 relinquished shall cease to be a
state highway.
   (B) The portion of Route 238 relinquished shall be ineligible for
future adoption under Section 81.
   (4) For relinquished portions of Route 238, the City of Hayward
shall maintain signs within its jurisdiction directing motorists to
the continuation of Route 238 or to the state highway system, as
applicable.