BILL NUMBER: AB 1386 CHAPTERED
BILL TEXT
CHAPTER 291
FILED WITH SECRETARY OF STATE OCTOBER 11, 2009
APPROVED BY GOVERNOR OCTOBER 11, 2009
PASSED THE SENATE SEPTEMBER 8, 2009
PASSED THE ASSEMBLY SEPTEMBER 10, 2009
AMENDED IN SENATE SEPTEMBER 2, 2009
AMENDED IN SENATE JUNE 23, 2009
AMENDED IN ASSEMBLY APRIL 22, 2009
AMENDED IN ASSEMBLY APRIL 13, 2009
INTRODUCED BY Assembly Member Hayashi
(Principal coauthor: Senator Corbett)
FEBRUARY 27, 2009
An act to amend Sections 14528.5 and 14528.55 of, to amend,
repeal, and add Section 14528.6 of, and to add Sections 14528.56 and
14528.65 to, 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, 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 requires a local alternative transportation
improvement program for State Highway Route 238 to provide, among
other things, relocation assistance and replacement housing units for
persons displaced as a result of the sale of excess properties to
fund the local alternative transportation improvement program.
This bill would make these provisions inoperative, and would enact
new provisions to become operative, on the date on which the
superior court issues the final approval order for the settlement
agreement related to the disposition of excess properties acquired
for the State Route 238 Hayward Bypass Project signed by the
department, the City of Hayward, and representatives for members of
the class of residents, or on January 1, 2010, whichever comes later.
The new provisions would, among other things, require monetary
assistance to eligible tenant households and provision of 237
additional new low-income housing units. The new provisions would
also require the department to offer the direct sale of eligible
excess single-family residences on an as-is, fair market value basis,
to current tenants meeting specified requirements and would enact
other related provisions in that regard. The bill would authorize
proceeds from the sale of excess properties to be used for the cost
of selling the properties and various administrative, commercial, or
legal costs, including program administration costs to develop and
administer the home purchase program and an administrative hearing
process for tenants.
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.
Appropriation: yes.
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. Except as provided in Section
14528.6, the proceeds shall be used only for highway purposes.
(d) "Excess properties" means those properties acquired to
construct a new alignment for a freeway or expressway bypass to State
Highway Route 238 in the City of Hayward and in the County of
Alameda, which project is no longer planned to be constructed.
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) "Excess properties" means those properties acquired to
construct a new alignment for State Highway Route 84 in the Cities of
Fremont and Union City, a portion of which project is no longer
planned to be constructed.
SEC. 3. Section 14528.56 is added to the Government Code, to read:
14528.56. The following shall pertain to local alternative
transportation improvement programs developed and approved pursuant
to Sections 14528.5 and 14528.55:
(a) The department shall maintain a separate account in the state'
s Special Deposit Fund for each approved local alternative
transportation improvement program into which it will deposit the
funds derived from the sale of the respective excess properties
pursuant to subdivision (c) of Section 14528.5 and subdivision (c) of
Section 14528.55. All proceeds received by the department from the
sale of those excess properties that are available pursuant to those
subdivisions for the respective local alternative transportation
improvement programs, less reimbursement for costs incurred by the
department for administration of each account, shall be deposited in
each respective account, along with all interest earnings generated
by the funds in the respective account.
(b) Funds in each account shall be available for expenditure by
the local agencies for projects designated in the respective local
alternative transportation improvement program approved by the
commission pursuant to Section 14528.5 or 14528.55.
(c) This section applies only to State Highway Routes 84 and 238,
and to the local alternative transportation programs approved
pursuant to Section 14528.5 or 14528.55.
(d) Section 14528.8 does not apply to projects undertaken pursuant
to Section 14528.5 or 14528.55.
(e) 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 programs prior to the availability of
sufficient funds from the sale of respective 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 each respective
approved local alternative transportation improvement program.
(f) 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 respective local
alternative transportation improvement program and is funded by the
individual account established in the Special Deposit Fund pursuant
to subdivision (a), 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 respective 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. 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
respective 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 section
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.
(g) At the time of its approval of the respective local
alternative transportation improvement program, the commission, in
consultation with the department and representatives from regional
and local agencies, shall also incorporate, into the state
transportation improvement program guidelines, additional guidelines
specific to the local alterative transportation improvement program.
The additional guidelines shall include, but need 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. 4. Section 14528.6 of the Government Code is amended to read:
14528.6. A local alternative transportation improvement program,
approved pursuant to Section 14528.5, shall include all of the
following:
(a) A program to provide relocation assistance for residents
eligible for relocation assistance pursuant to Chapter 16 (commencing
with Section 7260) of Division 7 of Title 1 of this code and
guidelines adopted pursuant to Section 50460 of the Health and Safety
Code.
(b) A program to provide relocation assistance for all lower
income households, regardless of their eligibility for assistance
pursuant to subdivision (a), who will be displaced from their
residences because of actions taken to finance or implement the local
alternative improvement transportation program, including sale or
removal of their residences. To be eligible for assistance, lower
income households shall have occupied their residence on the date
that the local alternative transportation improvement program was
approved by the commission. The program shall comply with the
requirements, except eligibility requirements, of Chapter 16
(commencing with Section 7260) of Division 7 of Title 1 of this code
and with guidelines adopted pursuant to Section 50460 of the Health
and Safety Code.
(c) A program to provide all persons or families who are not
otherwise eligible for assistance pursuant to subdivisions (a) and
(b), with relocation advice and moving expenses, as defined in
Section 7261 and subdivisions (a) and (b) of Section 7262.
(d) A program to provide replacement housing units for persons and
families of low or moderate income at an affordable housing cost. At
a minimum, the program shall provide that the total number of new
units for persons or families of low or moderate income to be
provided shall be equal to or greater than the number of units
occupied by persons or families of low or moderate income displaced
by the local alternative transportation improvement program, and that
the total number of new housing units to be provided for lower
income households shall be equal to or greater than the number of
units occupied by lower income households displaced by the local
alternative transportation improvement program. The number of units
so provided shall be determined at least one year prior to the date
the commission approves the local alternative transportation
improvement program. If it is not feasible to replace the total
number of units required on surplus public property, other types of
property shall be used in order to provide the replacement units.
Replacement of the units shall be completed utilizing funds other
than those derived from the sale of excess properties and shall be
completed within four years of the date the persons or families are
displaced or, if unoccupied, from the date of demolition or removal.
Unoccupied units shall be replaced in the same ratio as units
occupied by persons and families of low and moderate income in the
right-of-way. It shall be an objective of the program that, where
financially feasible, the number of new housing units of persons and
families of low or moderate income shall be not less than 20 percent
of all new housing units developed on the aggregate surplus public
property.
(e) For purposes of this section, the terms "affordable housing
cost," "lower income households," and "persons and families of low or
moderate income" shall be defined as provided in Division 31
(commencing with Section 50000) of the Health and Safety Code.
(f) Unless specifically stated, this section shall in no way
reduce or limit any requirements for the provision of housing for
persons or families of low or moderate income as contained in any
other provision of law.
(g) No state highway account funds shall be expended for planning
or implementing the housing provisions of the local alternative
transportation improvement program which are required to be carried
out pursuant to subdivisions (b) to (d), inclusive.
(h) Neither the excess property nor the proceeds from the sale of
the excess property shall be used for housing purposes. The excess
property may be used for housing purposes after sale by the
department.
(i) This section shall become inoperative on the date on which the
superior court issues the final approval order for the settlement
agreement related to the disposition of excess properties acquired
for the State Route 238 Hayward Bypass Project signed by the
department, the City of Hayward, and representatives for members of
the class of residents, or on January 1, 2010, whichever comes later.
This section shall be repealed on January 1 of the year following
the year in which it becomes inoperative.
SEC. 5. Section 14528.6 is added to the Government Code, to read:
14528.6. (a) A local alternative transportation improvement
program, approved pursuant to Section 14528.5, and pursuant to the
terms and conditions of the applicable court-approved settlement
agreement related to the disposition of excess properties acquired
for the State Route 238 Hayward Bypass Project signed by the
department, the City of Hayward, and representatives for members of
the class of residents, shall include all of the following:
(1) A program to provide monetary assistance for eligible tenant
households occupying a corridor property on or before December 31,
2009.
(2) A program to provide 237 additional new low-income housing
units in the corridor.
(3) A program to provide home purchase assistance to eligible
tenant households in single-family residences.
(b) For the purpose of funding a local alternative transportation
improvement program, approved pursuant to Section 14528.5, neither
the excess property nor the proceeds from the sale of the excess
property shall be used for housing or housing-related programs,
including, but not limited to, any direct monetary assistance to
tenants, development of any new low-income housing units, or
providing any direct home purchase assistance to occupants of the
excess properties. The excess property may be used for housing
purposes after sale by the department.
(c) Notwithstanding subdivision (b), proceeds from the sale of the
excess properties may be used for the cost of selling the
properties, including all of the following:
(1) All necessary surveys of tenants occupying excess properties.
(2) Appraisal costs, including review appraisals.
(3) Program administration costs to develop and administer the
home purchase program.
(4) Program administration costs to develop and provide an
administrative hearing process for excess property tenants related to
any housing programs or program assistance offered to those excess
property tenants.
(5) Other administrative, commercial, or legal costs necessary for
selling the excess properties.
(d) Any person or persons commencing initial occupancy of or
entering into a new rental or lease agreement for a property located
on the State Route 238 Hayward Bypass Project on or after January 1,
2010, and before the sale of the properties by the department or its
authorized agent, shall not be eligible for any additional relocation
assistance under any provision of state law, including Section 50460
of the Health and Safety Code, and shall be notified prior to
occupying the property that such occupancy, rental, or lease is
temporary regardless of length of occupancy.
(e) For purposes of this section, "eligible tenant household"
shall mean a household comprised of a tenant or group of tenants in
good standing, pursuant to a valid, written rental agreement with the
department as of the date on which the superior court preliminarily
approves the settlement agreement described in subdivision (a), and
who are members of the class covered by that settlement.
(f) This section shall become operative on the date on which the
superior court issues the final approval order for the settlement
agreement related to the disposition of excess properties acquired
for the State Route 238 Hayward Bypass Project signed by the
department, the City of Hayward, and representatives for members of
the class of residents, or on January 1, 2010, whichever comes later.
SEC. 6. Section 14528.65 is added to the Government Code, to read:
14528.65. (a) All of the following shall apply to the sale or
other disposition of excess property to fund the local alternative
transportation improvement program approved pursuant to Section
14528.5:
(1) At the time the commission rescinds the freeway adoption
previously approved for the State Route 238 Hayward Bypass Project,
and the commission approves the local alternative transportation
improvement program, the commission shall authorize the department to
sell, on an "as is" basis at fair market value, the excess
properties acquired for the State Route 238 Hayward Bypass Project.
However, any properties required for the implementation of the local
alternative transportation improvement program shall not be sold.
(2) Article 8.5 (commencing with Section 54235) of Chapter 5 of
Part 1 of Division 2 of Title 5 does not apply to the sale of excess
property pursuant to this section.
(3) The disposition of excess property pursuant to this section
shall be exempt from Chapter 3 (commencing with Section 21100) to
Chapter 6 (commencing with Section 21165), inclusive, of Division 13
of the Public Resources Code. Upon title to the parcel vesting in the
purchaser or transferee of the property, the purchaser or transferee
shall be subject to any local governmental land use entitlement
approval requirements and to Chapter 3 (commencing with Section
21100) to Chapter 6 (commencing with Section 21165), inclusive, of
Division 13 of the Public Resources Code. "Disposition" means the
sale, exchange, sale combined with exchange, or transfer of a parcel
of excess property.
(4) The department shall offer the direct sale, "as is" at fair
market value, of an eligible excess single-family residence located
on the State Route 238 Hayward Bypass Project properties, to the
residential tenant of that residence if the tenant is in good
standing in the residence and has a tenure of two years or more, with
all rent obligations current and paid in full. For purposes of this
section, "eligible excess single-family residence" means an excess
single-family residence determined to be eligible for sale to
single-family residential tenants pursuant to the settlement
agreement described in subdivision (a) of Section 14528.6. The
commission is hereby authorized and directed to approve any such sale
transaction provided the commission determines the sale to be "as is"
at fair market value.
(5) If a residential tenant in single-family residence qualifies
for the direct sale as provided for in paragraph (4), and the
residential tenant is unable to purchase the single-family residence
occupied by the tenant because that single-family residence is
ineligible for direct sale, the department declines to allow the
direct sale of that single-family residence, the tenant does not
qualify for financing for that single-family residence, the condition
of the subject single-family residence does not allow financing, or
the tenant needs a larger or smaller single-family residence, the
department shall offer to the residential tenant the direct sale, "as
is" at fair market value, of other available eligible excess
single-family residences located on the State Route 238 Hayward
Bypass Project properties. The commission is hereby authorized and
directed to approve any such sale transaction provided the commission
determines the sale to be "as is" at fair market value.
(6) The department may hire, or cause to be hired, an appraiser to
determine the "as is" fair market value of any single-family
residence for which a direct sale to a residential tenant is
contemplated as provided for in paragraph (4) or (5). The appraiser
shall, at a minimum, be in good standing, be designated a Senior
Residential Appraiser by the Appraisal Institute, possess a certified
residential license, and have knowledge of the City of Hayward and
County of Alameda single-family residence residential housing market.
The department, at its sole election, may undertake an appraisal
review. The commission is hereby authorized and directed to approve
an appraisal review as provided in this section. However, the
commission retains the authority to determine that the appraisal or
appraisal review accurately determined the "as is" fair market value
according to the processes and procedures identified or referenced in
this section. For the purposes of this section, "fair market value"
has the meaning set forth in Section 1263.320 of the Code of Civil
Procedure.
(b) This section shall become operative on the date on which the
superior court issues the final approval order for the settlement
agreement related to the disposition of excess properties acquired
for the State Route 238 Hayward Bypass Project signed by the
department, the City of Hayward, and representatives for members of
the class of residents, or on January 1, 2010, whichever comes later.
SEC. 7. 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. 8. 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. 9. 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.