BILL ANALYSIS                                                                                                                                                                                                    Ó






           ----------------------------------------------------------------- 
          |SENATE RULES COMMITTEE            |                        AB 218|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |
           ----------------------------------------------------------------- 


                                   THIRD READING 


          Bill No:  AB 218
          Author:   Melendez (R)
          Introduced:2/2/15  
          Vote:     21  

           SENATE TRANS. & HOUSING COMMITTEE:  11-0, 6/23/15
           AYES:  Beall, Cannella, Allen, Bates, Gaines, Galgiani, Leyva,  
            McGuire, Mendoza, Roth, Wieckowski

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 8/27/15
           AYES:  Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen

           ASSEMBLY FLOOR:  80-0, 6/1/15 - See last page for vote

           SUBJECT:   State Highway Route 74


          SOURCE:    Author


          DIGEST:  This bill authorizes the California Transportation  
          Commission (CTC) to relinquish to Riverside County a segment of  
          State Route (SR) 74 between Lake Elsinore and Perris.


          ANALYSIS:

          Existing law: 

          1)Identifies the California state highway system through a  
            description of segments of the state's regional and  
            interregional roads that are owned and operated by the  
            Department of Transportation (Caltrans).  Technically, a state  








                                                                     AB 218  
                                                                    Page  2


            highway is any roadway that Caltrans is legislatively  
            authorized to acquire, lay out, construct, improve, or  
            maintain.  Existing law specifies that it is the intent of the  
            Legislature for the routes of the state highway system to  
            connect the communities and regions of the state and that they  
            serve the state's economy by connecting centers of commerce,  
            industry, agriculture, mineral wealth, and recreation.  

          2)Provides a two-step process for the state to expand or delete  
            a section of the state highway system that begins with the  
            Legislature amending existing law and then CTC making findings  
            that it is in the best interest of the state to include or  
            delete a specified portion of roadway from the system.  This  
            is known as the state highway relinquishment process.

          This bill:

          1)Authorizes CTC to relinquish to Riverside County the portion  
            of SR 74 within the unincorporated area east of the City of  
            Lake Elsinore and west of the City of Perris, upon terms and  
            conditions approved by the CTC.  

          2)Provides that the relinquishment will become effective  
            immediately following the county recordation of the  
            relinquishment resolution.

          3)Specifies that following the effective date of relinquishment,  
            the relinquished segment will no longer be a state highway and  
            may not be considered for future adoption as a state highway.   


          4)Requires Riverside County to maintain signage directing  
            motorists to the continuation of SR 74. 

          Comments

          Purpose.  Writing in support of this bill, the Southwest  
          California Legislative Council notes that relinquishment of the  
          specified portion of SR 74 would allow the County of Riverside  
          to manage and maintain the segment, thereby reducing the state  
          taxpayer burden as well as allowing for much-needed maintenance  
          improvements along the route.

          Relinquishments.  Each session, the Legislature passes and the  







                                                                     AB 218  
                                                                    Page  3


          Governor signs numerous bills authorizing CTC to relinquish  
          segments of the state highway system to local jurisdictions.   
          Relinquishment transactions are generally preceded by a  
          negotiation of terms and conditions between the local  
          jurisdiction and Caltrans.  Once an agreement has been  
          established, the CTC typically approves the relinquishment and  
          verifies its approval via a resolution.  
            
            Of interest, the Administration proposed budget trailer bill  
            language this year intending to streamline the state's  
            relinquishment process.  According to the Governor's budget  
            summary, a number of routes are still part of the state  
            highway system that no longer serve an interregional purpose,  
            and instead serve primarily regional or local purposes.  The  
            proposed trailer bill language broadens and streamlines the  
            state process for relinquishing these portions of the  
            statewide system that primarily serve regional or local  
            purposes.  This could be a win-win proposal, with both locals  
            and the state benefiting.  On one hand, shifting ownership of  
            these segments, many of which run through a downtown area,  
            will increase local flexibility to add stoplights and make  
            better use of valuable real estate to support transit-oriented  
            development.  Meanwhile, additional relinquishments reduce the  
            state's long-term costs for ongoing maintenance and repair of  
            the state system.  There is merit in a proposal streamlining  
            the relinquishment process; however, it seems that such a  
            proposal should be considered through the policy bill process  
            and not as an add-on to the state's annual budget.

            Luckily, Senator Allen has authored SB 254, which proposes a  
            similar streamlining process and is progressing as a regular  
            policy bill.  SB 254 is pending in the Assembly Transportation  
            Committee.

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No


          According to the Senate Appropriations Committee, this bill will  
          likely incur unknown one-time costs ranging from minor up to  
          several million dollars to Caltrans prior to the relinquishment  
          of the designated segment of SR 74 to Riverside County (State  
          Highway Account).  These costs would be offset in future years  
          due to avoided maintenance costs on the relinquished segment.







                                                                     AB 218  
                                                                    Page  4






          SUPPORT:   (Verified8/28/15)


          None received


          OPPOSITION:   (Verified8/28/15)


          None received


          ASSEMBLY FLOOR:  80-0, 6/1/15
          AYES:  Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,  
            Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang,  
            Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle,  
            Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina  
            Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,  
            Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden,  
            Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder,  
            Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina,  
            Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen,  
            Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez,  
            Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting,  
            Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins

          Prepared by:Eric Thronson / T. & H. / (916) 651-4121
          8/31/15 16:31:43


                                   ****  END  ****