BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          AB 957 (Lowenthal)
          
          Hearing Date: 08/15/2011        Amended: 07/07/2011
          Consultant: Mark McKenzie       Policy Vote: T&H 9-0
          _________________________________________________________________
          ____
          BILL SUMMARY: AB 957 would authorize the California 
          Transportation Commission (CTC) to relinquish a portion of State 
          Highway Route (SR) 225 to the City of Santa Barbara.  The bill 
          would also enact the following non-controversial changes related 
          to transportation:
           Expand the Sacramento Regional Transit District (Sac RT) to 
            include the cities of Citrus Heights, Elk Grove, Rancho 
            Cordova, and West Sacramento.
           Delete obsolete provisions relating to the transition from the 
            Sacramento Transit Board to Sac RT.
           Clarify that Sac RT is prohibited from imposing a property tax 
            within its service area unless it is approved by 2/3 of the 
            electorate in the affected area.
           Authorize Sac RT to set up trust accounts for its retirement 
            system.
           Delete the requirement for the Department of Transportation 
            (Caltrans) to provide quarterly reports to the Legislature and 
            CTC on the status of specified seismic retrofit projects.
           Require the release of an impounded rental car that was used 
            illegally as a taxicab or vehicle for hire in violation of 
            local licensing requirements.
          _________________________________________________________________
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2011-12      2012-13       2013-14     Fund
           SR 225, improvements   unknown one-time cost (minor to 
          millions)Special*
                                    prior to relinquishment (see staff 
          comments)
          SR 225, maintenance    unknown long-term savings 
          followingSpecial*
                                   relinquishment
          Seismic reports        annual savings of approximately 
          $20Special*
          ____________
          * State Highway Account








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          STAFF COMMENTS: This bill meets the criteria for referral to the 
          Suspense File. 
          The Legislature has provided statutory authorization to CTC to 
          relinquish a number of state highway segments to local 
          jurisdictions under specified conditions.  Relinquishment 
          provides the recipient agency with greater control over local 
          transportation projects and relieves Caltrans of any further 
          responsibility to improve, maintain, or repair infrastructure 
          related to the relinquished segment of state highway.  
          Generally, relinquishments are subject to terms and conditions 
          of agreements between Caltrans and a local jurisdiction seeking 
          control of a local highway segment.  CTC must determine that the 
          agreement for relinquishment, which involves a one-time payment 
          of State Highway Account funds to the local entity, is in the 
          best interests of the state.  Caltrans annually sets aside $12 
          million of State Highway Operations and Protection Plan (SHOPP) 
          funding for rehabilitation necessary for highway 
          relinquishments.

          AB 957 would authorize CTC, upon a determination that the terms 
          and conditions are in the state's best interest, to relinquish 
          to the City of Santa Barbara the portion of SR 225 that is 
          located within the city limits.  The relinquished segment would 
          cease to be a part of the state highway system, and would be 
          ineligible for future adoption as a state highway.  The portion 
          of SR 225 specified in the bill is known locally as Las Positas 
          Road, Cliff Drive, and Castillo Street.  Relinquishment of this 
          segment would provide Santa Barbara with jurisdiction over what 
          are now local roadways entirely within the city without the 
          constraints of Caltrans' state highway design standards, 
          encroachment permit processes, and other state requirements.  

          Caltrans usually provides State Highway Account funding to a 
          local entity that is assuming control over state highway 
          segments in order to bring the roadway up to a "state of good 
          repair."  The actual amounts vary for each relinquished highway 
          segment and are determined by a negotiation of terms and 
          conditions between Caltrans and the local jurisdiction.  
          Caltrans does not currently have a specific cost estimate for 
          the relinquishment of this segment, but based on other 
          relinquishments, one-time costs range from minimal up to $1 








          AB 957 (Lowenthal)
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          million per centerline mile of roadway depending on numerous 
          factors such as roadway condition, projected maintenance costs, 
          and any planned capital projects.  The segment of SR 225 
          specified in the bill is approximately 4.8 miles long, so 
          initial costs could be minimal but may be as high as $4.8 
          million.  The relinquishment of these segments would relieve 
          Caltrans of any future maintenance and repair costs, resulting 
          in unknown long-term annual savings.  Actual costs and savings 
          would be more certain if legislation to authorize relinquishment 
          followed, rather than preceded, an agreement between Caltrans 
          and the City of Santa Barbara.  However, Caltrans does not 
          typically enter into negotiations until legislative authority 
          for relinquishment has been provided.

          AB 957 would also delete Caltrans reporting requirements related 
          to several seismic retrofit programs.  The Seismic Retrofit and 
          Local Bridge Seismic Retrofit programs are effectively complete, 
          and the Toll Bridge Seismic Retrofit program reporting 
          requirement this bill deletes is now obsolete, since that 
          program is subject to an updated reporting requirement pursuant 
          to AB 144 (Hancock), Chapter 71 of 2005.  Caltrans indicates 
          that elimination of the quarterly reports would result in 
          savings of approximately $20,000 per year.

          The remaining provisions of this bill would have no state fiscal 
          impact.