BILL NUMBER: SB 486	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JULY 1, 2014
	AMENDED IN ASSEMBLY  JUNE 9, 2014
	AMENDED IN ASSEMBLY  MAY 23, 2014
	AMENDED IN ASSEMBLY  SEPTEMBER 3, 2013
	AMENDED IN ASSEMBLY  JULY 3, 2013
	AMENDED IN SENATE  APRIL 15, 2013

INTRODUCED BY   Senator DeSaulnier
   (  Coauthor:   Senator  
Liu   Coauthors:   Senators 
Cannella,   Gaines,   and Liu  )
    (   Coauthor:   Assembly Member  
Lowenthal   ) 

                        FEBRUARY 21, 2013

   An act to amend Sections 14526, 14526.5, and 14536 of, to add
Sections 14523.5, 14524.3,  14525.7,   14524.4,
 and 14526.4 to, and to repeal Section 14009 of, the Government
Code, relating to transportation.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 486, as amended, DeSaulnier. Department of Transportation:
goals and performance measures.
   Existing law provides that the Department of Transportation shall
have full possession and control of the state highway system and
specifies the duties and responsibilities of the department on
various other transportation matters. Existing law requires the
department to prepare the interregional transportation improvement
program which, along with the regional transportation improvement
programs adopted by regional transportation agencies, becomes part of
the state transportation improvement program and identifies most
transportation capital improvements to be undertaken over a multiyear
period with state and federal funds. Existing law also requires the
department to separately prepare the state highway operation and
protection program, which identifies capital projects limited to
maintenance, safety, and rehabilitation work necessary to preserve
and protect the state highway system. Existing law requires the
California Transportation Commission to, among other things, adopt
the state transportation improvement program and approve the state
highway operation and protection program, and further provides for
the commission to allocate transportation capital funds to specific
projects contained in the state transportation improvement program,
but not the state highway operation and protection program, which is
managed by the department.
   This bill would  require   authorize 
the commission,  on or before January 31, 2015, and every 4
years thereafter, and  in consultation with the department,
to develop and adopt specific goals for the  department to
achieve specified priorities relative to the operation of effective
transportation systems, the maintenance of the state highway system,
and the reduction of greenhouse gas emissions in the department's
activities.   department.  The bill would require
the commission, in consultation with the department, to identify
performance measures  in that   with 
regard  to the goals that the commission elects to adopt 
and to include an evaluation of the department's progress in meeting
the goals in the commission's annual report to the Legislature.
   This bill would  also require the commission to establish
guidelines, including specified standards, for the department to
follow in the development and selection of projects for the
interregional transportation improvement program, and would require
the commission to adopt the program.   authorize the
commission to prescribe study areas for analysis and evaluation by
the department and to establish guidelines for updates to the
California Transportation Plan, commencing with the plan required to
be updated by December 31, 2020.  The bill would require the
department, on or before December 15, 2015, and  every 5
years thereafter,   on or before December 15, 20 
 20,  to  adopt and  submit to the
commission  for approval  an interregional transportation
strategic plan directed at achieving a high-functioning and balanced
interregional transportation  system, reflecting specified
legislative priorities. The   system. 
    The  bill would  revise the procedures for the
development of the interregional transportation improvement program
by requiring the department to submit a draft 5-year interregional
transportation improvement program to the commission by October 15 of
each odd-numbered year. The bill would  require projects
included in the  draft  interregional transportation
improvement program to be consistent with the interregional
transportation strategic  plan, and would  
plan. The bill would  require the commission to hold public
hearings  on the   by November 15 of each
odd-numbered year regarding the draft  program  to
  and to  attempt to reconcile any objections. 
The department would be required to consider the input received at
the hearings and develop and submit a final interregional
transportation improvement program to the commission for approval not
later than December 15 of each odd-numbered year. 
   The bill would also require the commission  , in cooperation
with the department,  to establish guidelines, including
specified standards, for the department to follow in the development
and selection of projects for the state highway operation and
protection program. The bill would require preparation of a project
study report or major investment study prior to inclusion by the
department of a project in the state highway operation and protection
program. The bill would specifically authorize the commission to
decline to adopt the program if it determines that the program is not
sufficiently consistent with the guidelines.
   Existing law requires the commission to submit an annual report to
the Legislature including, among other things, a discussion of major
transportation policy issues.
   This bill would require the annual report to contain a discussion
of the department's project  support  costs for
capital projects.
   Existing law requires the department, by June 30, 1994, to apply
for federal funding to be used for conversion of data pertaining to
the state highway system from paper storage to intelligent computer
information, and to commence implementation of the conversion process
within 6 months of receiving federal funding approval.
   This bill would repeal these provisions.
   The bill would also make legislative findings and declarations.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) The state recently contracted with the State Smart
Transportation Initiative (SSTI) to conduct an external assessment of
the Department of Transportation and provide recommendations for
improving the department's performance.
   (b) The SSTI assessment found that the department has not kept
pace with changes in transportation policy and called for reforms to
modernize the department's mission, strengthen its performance, and
help align the department with the state's policy goals.
   (c) The regional transportation planning process is an inclusive,
exhaustive process that moves from a longer-term vision, represented
by the regional transportation plan, to a short-term list of specific
projects in the regional transportation improvement program, which
implements the long-term vision. 
   (d) The department, which is responsible for the maintenance and
operation of the state highway system and for the state's
interregional transportation system, does not currently have in place
a similarly inclusive planning process that moves from vision to
implementation.  
   (d) The regional transportation planning process begins with the
California Transportation Commission offering guidance and
prescribing study areas for analysis and evaluation by the regional
agencies, as well as providing guidelines for the preparation of the
regional transportation plans.  
   (e) At the state level, the California Transportation Plan (state
plan) is intended to guide long-term, inclusive planning for state
transportation systems. The commission should provide guidance for
the development of the state plan just as it does for regional
transportation plans.  
   (f) An intensive effort is currently underway by the department to
develop the next state plan by December 2015. Asking the commission
to provide guidance now would be disruptive to that effort. However,
the commission's guidance on the interregional transportation
strategic plan (interregional plan), which is one of the elements of
the state plan, would be helpful in the interim until development of
the next state plan, when the commission's guidance should directly
inform the development of the state plan.  
   (g) The interregional plan, updated based on the commission's
guidance to reflect current state policies, goals, and objectives,
can appropriately provide information regarding the department's
investments in the interregional transportation improvement program
so that this program is more closely aligned with state goals and
policies.  
   (e) 
    (h)  Developing a process for the department to follow
in development of the state's interregional and highway maintenance
and operations programs similar to the regional transportation
planning process can create a framework for the department to begin
to address the flaws identified in the SSTI assessment and allow the
state to catch up with the changes in transportation policy such that
the department can once again be aligned with the state's policy
goals.
  SEC. 2.  Section 14009 of the Government Code is repealed.
  SEC. 3.  Section 14523.5 is added to the Government Code, to read:
   14523.5.  (a)  No later than January 31, 2015, and every
four years thereafter, the   The  commission, in
consultation with the department,  shall   may
 develop and adopt specific goals for the  department to
achieve each of the following priorities:   department.
 
   (1) The operation of effective transportation systems for moving
people and goods between regions and through the state using, for
example, traffic demand strategies and technology that do not require
the addition of capacity.  
   (2) The maintenance of the state's state highway system in a state
of good repair.  
   (3) The reduction of greenhouse gas emissions to the maximum
extent feasible in all of the department's activities. 
   (b) The commission, in consultation with the department, shall
identify performance measures for  each of  the
goals  adopted   that the commission elects to
adopt  pursuant to subdivision (a) and shall include an
evaluation of the department's progress toward meeting these goals in
its annual report to the Legislature pursuant to Section 14535. The
department shall comply with requests from the commission for
information necessary to perform the required evaluation. 
  SEC. 4.    Section 14524.3 is added to the
Government Code, to read:
   14524.3.  (a) On or before December 15, 2015, and every five years
thereafter, the department shall adopt and submit to the commission
an interregional transportation strategic plan directed at achieving
a high-functioning and balanced interregional transportation system.
The plan shall be action oriented and pragmatic, considering both the
short-term and long-term future, and shall present clear, concise
policy guidance to the department for managing the state's
transportation system.
   (b) The plan shall reflect, in order, the following legislative
priorities:
   (1) Maintaining the state's existing transportation system in a
state of good repair.
   (2) Addressing the state's responsibility of efficient goods
movement through and within the state.
   (3) Improving system operations through traffic demand strategies
and technology.
   (4) Improving the livability of the state's transportation system,
and improving access to the system to all users, where appropriate.
   (5) Reducing greenhouse gas emissions consistent with the
California Global Warming Solutions Act of 2006 (Division 25.5
(commencing with Section 38500) of the Health and Safety Code).
   (6) Assisting regions with congestion reduction when appropriate.
   (c) The interregional transportation strategic plan shall be
consistent with the California Transportation Plan required by
Section 65071.  
  SEC. 5.    Section 14525.7 is added to the
Government Code, to read:
   14525.7.  (a) The commission shall adopt guidelines for the
department to follow in the development and the selection of projects
for the state's interregional transportation improvement program
required by Section 14526.
   (b) The guidelines shall include, but not be limited to, all of
the following:
   (1) Standards for project deliverability.
   (2) Standards for identifying projects and project components.
   (3) Standards for cost estimating.
   (4) Programming methods for cost increases and schedule changes.
   (5) Objective criteria for measuring system performance and
cost-effectiveness of candidate projects.
   (c) The guidelines shall, at a minimum, require that, for each
project, the program shall specify the allocation or expenditure
amount and the allocation or expenditure year for each project
component, as necessary.
   (d) The guidelines shall be the complete and full statement of the
policy, standards, and criteria that the commission intends to use
in selecting interregional transportation projects to be included in
the state transportation improvement program.
   (e) The commission may amend the adopted guidelines after
conducting at least one public hearing. The commission shall make a
reasonable effort to adopt the amended guidelines prior to its
adoption of the fund estimate pursuant to Section 14525. In no event
shall the adopted guidelines be amended, or otherwise revised,
modified, or altered during the period commencing 30 days after the
adoption of the fund estimate pursuant to Section 14525 and before
the adoption of the state transportation improvement program pursuant
to Section 14529. 
   SEC. 4.    Section 14524.3 is added to the  
Government Code   , to read:  
   14524.3.  Commencing with the update to the California
Transportation Plan that is required on or before December 31, 2020,
the commission may, in cooperation with the department, prescribe
study areas for analysis and evaluation by the department and may
establish guidelines for the preparation of the updates to the
California Transportation Plan prepared pursuant to Section 65071.

   SEC. 5.    Section 14524.4 is added to the  
Government Code   , to read:  
   14524.4.  (a) On or before December 15, 2015, and on or before
December 15, 2020, the department shall submit to the commission for
approval an interregional transportation strategic plan directed at
achieving a high-functioning and balanced interregional
transportation system. The plan shall be action-oriented and
pragmatic, considering both the short-term and long-term future, and
shall present clear, concise policy guidance to the department for
managing the state's transportation system.
   (b) The interregional transportation strategic plan shall be
consistent with the California Transportation Plan as updated
pursuant to Section 65071. 
  SEC. 6.  Section 14526 of the Government Code is amended to read:
   14526.  (a) Not later than  December 15, 2001, and
December 15 of each odd-numbered year thereafter,  
October 15 of each odd-numbered year,  based on the guidelines
established pursuant to Section  14525.7, 
14530.1,  and after consulting with the transportation planning
agencies, county transportation commissions, and transportation
authorities, the department shall submit to the commission 
for adoption its   the draft  five-year
interregional transportation improvement program consisting of all of
the following:
   (1) Projects to improve state highways, pursuant to subdivision
(b) of Section 164 of the Streets and Highways Code.
   (2) Projects to improve the intercity passenger rail system.
   (3) Projects to improve interregional movement of people,
vehicles, and goods.
   (b) Projects included in the interregional transportation
improvement program shall be consistent with the state interregional
transportation strategic plan prepared pursuant to Section 
14524.2.   14524.4. 
   (c) Projects may not be included in the  draft 
interregional transportation improvement program without a project
study report or major investment study.
   (d) Major projects shall include current costs updated as of
November 1 of the year of submittal and escalated to the appropriate
year, and shall be consistent with, and provide the information
required in, subdivision (b) of Section 14529.
   (e) Projects included in the  draft  interregional
transportation improvement program shall be consistent with the
adopted regional transportation plan.
   (f)  Prior to adopting the department's interregional
transportation improvement plan, the   On or before
November 15 of each odd-numbered year, the  commission shall
hold  not less than   at least  one hearing
in northern California and one hearing in southern California to
attempt to reconcile any objections by any member of the public or
other stakeholder to the  department's plan.  
draft interregional transportation improvement program.  
   (g) The department shall consider the input received at the
hearings conducted pursuant to subdivision (f) and shall develop a
final interregional transportation improvement program. The final
interregional transportation improvement program shall include a
summary of the major comments received at the hearings and responses
to those comments, and shall be submitted to the commission for
approval not later than December 15 of each odd-numbered year. 

   (h) The commission shall, when approving the final interregional
transportation improvement program pursuant to subdivision (g),
evaluate the extent to which the program is consistent with funding
priorities established in Section 167 of the Streets and Highways
Code. 
  SEC. 7.  Section 14526.4 is added to the Government Code, to read:
   14526.4.  (a) The  commission   commission,
in cooperation with the department,  shall establish guidelines
for the department to follow in the development and selection of
projects for the state highway operation and protection program
required by Section 14526.5.
   (b) The guidelines shall include, but not be limited to, all of
the following:
   (1) Standards for project deliverability.
   (2) Standards for identifying projects and project components.
   (3) Standards for cost estimating.
   (4) Programming methods for cost increases and schedule changes.
   (5) Objective criteria for measuring system performance and
cost-effectiveness of candidate projects.
   (c) The guidelines shall, at a minimum, require that, for each
project, the state highway operation and protection program shall
specify the allocation or expenditure amount and the allocation or
expenditure year for each project component, as necessary.
   (d) The guidelines shall be the complete and full statement of the
policy, standards, and criteria that the commission intends to use
in reviewing and adopting the state highway operation and protection
program.
  SEC. 8.  Section 14526.5 of the Government Code is amended to read:

   14526.5.  (a) Based on the guidelines adopted pursuant to Section
14526.4, the department shall prepare a state highway operation and
protection program for the expenditure of transportation funds for
major capital improvements that are necessary to preserve and protect
the state highway system. Projects included in the program shall be
limited to capital improvements relative to maintenance, safety, and
rehabilitation of state highways and bridges that do not add a new
traffic lane to the system.
   (b) The program shall include projects that are expected to be
advertised prior to July 1 of the year following submission of the
program, but which have not yet been funded. The program shall
include those projects for which construction is to begin within four
fiscal years, starting July 1 of the year following the year the
program is submitted.
   (c) Projects may not be included in the state highway operation
and protection program without a project study report or major
investment study.
   (d) The program shall be submitted to the commission not later
than January 31 of each even-numbered year. Prior to submitting the
plan, the department shall make a draft of its proposed program
available to transportation planning agencies for review and comment
and shall include the comments in its submittal to the commission.
   (e) The commission may review the program relative to its overall
adequacy, consistency with the guidelines adopted pursuant to Section
 14526.4,   14526.4 and funding priorities
established in Section 167 of the Streets and Highway Code,  the
level of annual funding needed to implement the program, and the
impact of those expenditures on the state transportation improvement
program. The commission shall adopt the program and submit it to the
Legislature and the Governor not later than April 1 of each
even-numbered year. The commission may decline to adopt the program
if the commission determines that the program is not sufficiently
consistent with the guidelines established in Section 14526.4.
   (f) Expenditures for these projects shall not be subject to
Sections 188 and 188.8 of the Streets and Highways Code.
  SEC. 9.  Section 14536 of the Government Code is amended to read:
   14536.  (a) The annual report shall include an explanation and
summary of major policies and decisions adopted by the commission
during the previously completed state and federal fiscal year, with
an explanation of any changes in policy associated with the
performance of its duties and responsibilities over the past year.
   (b) The annual report may also include a discussion of any
significant upcoming transportation issues anticipated to be of
concern to the public and the Legislature.
   (c) As part of its role described in Section 14520, the commission'
s annual report shall also include a discussion of the department's
project  support  costs, including analyses of the
department's expenditures on project support  based on cost
estimates  at the following points in time:
   (1) Original programming date.
   (2) Upon completion of the environmental review  process.
  process and the approval of the project. 
   (3) Upon completion of final design and when  contract is
let.   the construction contract is awarded. 
   (4) Project closeout date.