BILL ANALYSIS Ó
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
AB 2679 (Committee on Transportation) - Transportation omnibus
bill.
Amended: August 6, 2012 Policy Vote: T&H 8-0
Urgency: No Mandate: No
Hearing Date: August 16, 2012
Consultant: Mark McKenzie
SUSPENSE FILE. AS PROPOSED TO BE AMENDED.
Bill Summary: AB 2679 would authorize the California
Transportation Commission (CTC) to relinquish a portion of State
Highway Route (SR) 152 to the City of Watsonville. The bill
would also enact a number of non-controversial changes related
to transportation.
Fiscal Impact:
Unknown one-time costs --minor to millions of dollars-- to
the Department of Transportation (Caltrans) prior to the
relinquishment of SR 152 to Watsonville (State Highway
Account). These costs would be offset in future years due
to avoided maintenance costs on the relinquished segment.
Unknown likely savings to Caltrans (State Highway Account)
related to avoided legal staff costs by authorizing more
minor damage claims to be settled through an administrative
process rather than through referral to the California
Victims Compensation and Government Claims Board (CVCGCB).
Likely minor administrative savings to the Board of
Equalization (BOE) related to provisions that align
rate-setting dates for fuel excise taxes with the adjustment
dates for the sales tax prepayment rate and the interstate
user rate, as specified.
Minor and absorbable costs to the California Highway Patrol
(CHP) to approve bus stop locations for private schools.
Background: The Assembly Transportation Committee has introduced
this bill as a vehicle to combine various statutory
modifications that are technical or non-controversial items into
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a single measure, so that the Legislature can enact numerous
changes in a cost-effective manner.
Proposed Law: AB 2679 would authorize the CTC to relinquish a
portion of SR 152 to the City of Watsonville, and make a number
of other non-controversial changes related to transportation
statutes, including the following:
Authorize Caltrans to deny or adjust and pay a claim
administratively and without approval of the CVCGCB if the
claim amount is less than the threshold for filing a claim in
small claims court.
Align the rate adjustment dates of the gas and diesel fuel
sales tax prepayment rates with the excise tax rate
adjustments for both gas and diesel fuel as required by the
gas-tax swap.
Authorize private schools to designate school bus stops.
Require CHP to approve bus stops on highways with speed limits
exceeding 25 miles per hour if the stop is not visible for 500
feet in either direction.
Authorize a person to ride a bicycle on State Capital walkways
that the CHP has designated as access routes to bicycle
parking, as specified.
Delete obsolete provisions, and make other minor, technical,
and clarifying changes.
Staff Comments: The following provisions would have some measure
of state fiscal impacts. For a comprehensive description of all
of the items in the bill, refer to the Senate Transportation and
Housing Committee analysis of the bill. Apart from the items
noted below, the provisions of this bill would have no
significant state fiscal impact.
SR 152 Relinquishment
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
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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 2679 would authorize CTC, upon a determination that the terms
and conditions are in the state's best interest, to relinquish
to the City of Watsonville the portion of SR 152 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. Relinquishment of this
segment would provide Watsonville to pursue roadway improvements
and enhancements to its downtown on Main Street, East Lake
Avenue, and portions of East Beach Street 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
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 152
specified in the bill is approximately 4.6 miles long, so
initial costs could be minimal but may be as high as $4.6
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 Watsonville. However, Caltrans does not
typically enter into negotiations until legislative authority
for relinquishment has been provided.
Caltrans claims
Current law authorizes Caltrans to deny or adjust and pay claims
or damages up to a maximum of $5,000 without approval of the
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California Victim Compensation and Government Claims Board. The
bill raises this limit to the small claims court limit
(currently $10,000), to allow Caltrans to adjudicate minor
matters administratively, rather than referring cases to the
CVCGCB, which often leads to lawsuits. This provision would
allow Caltrans to minimize legal staffing costs.
Gas-tax swap cleanup
The BOE is seeking to align the adjustment dates of the gasoline
and diesel fuel sales tax prepayment rates with the excise tax
rate adjustments for both gasoline and diesel fuel as required
by the fuel tax swap. The dates would be changed so that, if
and when there are adjustments to the gasoline and diesel fuel
excise tax rates, they would also be accounted for in the sales
tax prepayment rate thereby reducing the time and costs
associated with adjusting the rates at two different times, for
both the BOE and the affected industry. The bill also allows
the BOE to notify fuel vendors of a new prepayment rate by means
other than mail.
Schoolbus stops
Current law requires schoolbus drivers to load or unload pupils
only at stops designated by a school district superintendent.
This bill additionally authorizes private school officials to
designate schoolbus stops. The bill also requires the
California Highway Patrol to approve any stops on highways with
speed limits greater than 25 miles per hour if the stop is not
visible for 500 feet in either direction.
Proposed amendments would delete all provisions related to
authorizing private school officials to designate school bus
stops.