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.
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          ____
                            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
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          ____

          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, 








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          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.









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          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.