BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair SB 443 (Strickland) Hearing Date: 05/16/2011 Amended: 04/26/2011 Consultant: Mark McKenzie Policy Vote: VA 8-0; T&H 8-1 _________________________________________________________________ ____ BILL SUMMARY: SB 443 would require the Department of Transportation (Caltrans) to erect a veterans' memorial in a specified state park and ride lot in the town of Orcutt, if nonstate funds are available for this purpose. Caltrans would be authorized to enter into agreements with the Old Town Orcutt Revitalization Association for the planning, construction, and maintenance of the memorial. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2011-12 2012-13 2013-14 Fund Caltrans agreements $15 Special* & oversight Veterans' memorial unknown, but likely minor planning,Nonstate construction, and maintenance costs Future litigation unknown litigation costs related to denied Special* requests for installation of monuments in state right-of-way (see staff comments) ____________ * State Highway Account _________________________________________________________________ ____ STAFF COMMENTS: This bill meets the criteria for referral to the Suspense File. The Old Town Orcutt Revitalization Association (ORA) submitted an application for an encroachment permit to locate a veterans' memorial in the park and ride lot in Caltrans right-of-way at the Clark Avenue West exit from State Highway 135 in the Town of Orcutt. Caltrans denied issuing the permit in March of 2011, SB 443 (Strickland) Page 1 stating that "We believe that our decision is in compliance with the case Brown v. California Department of Transportation that all requests for encroachment on State right of way be treated equally." Caltrans instead offered other programs available to commemorate military personnel, including memorial plaques and Blue Star memorial markers. SB 443 would bypass Caltrans' encroachment permit process by requiring the department to construct the veterans' memorial in consultation with ORA, if nonstate funds are available for this purpose, including for repair and ongoing maintenance. Caltrans costs related to the planning, construction, and maintenance of the memorial would be covered by nonstate funds, but Caltrans would also incur staff costs of approximately $15,000 related to administrative functions such as executing construction and maintenance agreements with ORA, project oversight, and ensuring compliance with the Americans with Disabilities Act and environmental laws. Staff notes that this bill would require Caltrans to deviate from its current policies and procedures against allowing forms of expression in Caltrans right-of-way. Installation of a veterans' memorial in a park and ride lot would effectively open the right-of-way as a public forum for expression. If Caltrans were to deny a future request to place a monument or memorial in the right-of-way, which is consistent with current practice in order to comply with the federal court injunction issued in the Brown case (see below), the department would be subject to future legal action for denial of First Amendment rights of expression. Future litigation costs are unknown, but based on previous court decisions, staff estimates these costs would likely be in the range of $200,000 to $300,000 for each case. In Brown v. California Department of Transportation (260 F.Supp.2d 959) the U.S. District Court ruled that Caltrans violated First Amendment rights of expression by prohibiting unpermitted anti-war displays of expression on highway overpasses, while allowing the display of United States flags. The decision requires Caltrans to enforce its permitting and maintenance rules and regulations on a content neutral and viewpoint neutral basis. Rather than allow all forms of expressive activity on highway overpasses, Caltrans policy is to allow no displays of expression in Caltrans right-of-way. SB 443 (Strickland) Page 2 Caltrans was also sued after revoking the San Diego Minutemen Adopt-A Highway Program permit, with the plaintiffs alleging that Caltrans' revocation of the permit violated their constitutional rights to free speech, free expression, equal protection, and due process. The court ruled against Caltrans in San Diego Minutemen v. California Business, Transportation and Housing Agency's Department of Transportation (2009 WL 3630842 (S.D.Cal.), and the subsequent settlement required Caltrans to pay the San Diego Minutemen $157,500 and reinstate the Adopt-A-Highway Program permit. Caltrans also incurred legal fees and staff costs of over $100,000 related to this case. Staff notes that Caltrans district office staff have offered to initiate and expedite a process to declare a portion of the park and ride lot as surplus property so that it may be transferred to Santa Barbara County control for placement of the memorial, pursuant to administrative procedures provided in current law. This proposed solution would not require legislation and would remove any potential for Caltrans liability related to the erection of a veterans' memorial on state property.