BILL ANALYSIS Ó
AB 1814
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Date of Hearing: April 18, 2016
ASSEMBLY COMMITTEE ON TRANSPORTATION
Jim Frazier, Chair
AB 1814
(Travis Allen) - As Amended April 11, 2016
SUBJECT: State highways: roadside rests
SUMMARY: Authorizes the California Department of Transportation
(Caltrans) to enter into agreements for the operation of
roadside rest areas by private entities, as prescribed.
Specifically, this bill:
1)Authorizes Caltrans to enter into agreements for the operation
of safety roadside rest areas by private entities in
conjunction with the development of a retail establishment,
under the following terms:
a) The state shall continue to own the affected property
but may lease the property to the private entity;
b) The private entity must be responsible for maintaining
the affected rest area; and,
c) The private entity must ensure a daily minimum of 18
hours of public access and must provide restrooms,
security, and limited vehicle parking.
2)Authorizes agreements to provide for payment to the state of a
fixed percentage of all gross sales generated either through
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direct or online sales, with payments to be deposited into the
State Highway Account and used to maintain or create new
roadside rest areas.
3)Requires the retail establishment to be consistent with the
state-defined footprint and height standards and to comply
with all American with Disabilities Act standards and meet or
exceed California's green building standards.
4)Provides that an authorized retail establishment may sell a
range of products for and to the traveling public, per the
agreement.
5)Requires Caltrans to seek any federal waivers that might be
necessary to implement these provisions.
EXISTING LAW:
1)Directs Caltrans and the California Transportation Commission
to plan, design, and construct a system of rest areas on the
state highway system; directs Caltrans to maintain the rest
areas.
2)Directs Caltrans to design only those rest areas that are
reasonably economical and that will provide the motorist a
place where he or she may stop for a short time during daytime
and nighttime hours.
3)Directs Caltrans to allow the placement of vending facilities
in rest areas, unless prohibited by federal law; requires
Caltrans to give priority for vending facilities to blind
vendors operating within the Business Enterprises Program.
4)Grants Caltrans authority to contract with public and private
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non-profit organizations for the operation of traveler service
information facilities and rest area maintenance, so long as
doing so does not cause displacement of civil service
employees.
5)Prohibits any person from displaying, selling, or otherwise
vending merchandise, foodstuff, or services within a rest
area.
6)Authorizes Caltrans to develop up to six new rest areas as
joint economic development demonstration projects. Contracts
for construction, operation, and maintenance of the
demonstration projects are required to be awarded based on
competitive bidding. Under this authority, the department is
authorized to permit commercial operations if the operations
are traveler-related.
FISCAL EFFECT: Unknown
COMMENTS: Rest areas provide opportunities for travelers to
safely stop, stretch, take a nap, use the restroom, get water,
check maps, place telephone calls, switch drivers, check
vehicles and loads, and exercise pets. Rest areas reduce drowsy
and distracted driving and provide a safe and convenient
alternative to unsafe parking along the roadside. A typical
rest area includes parking places for vehicles, picnic tables,
sanitary facilities, telephones, water, landscaping, tourist
information panels, traveler service information facilities, and
facilities for the distribution of current news. The state's
87-unit rest area system was constructed between 1958 and 1984
and includes and serves more than 100 million visitors annually.
Commercialization of rest areas on the Interstate has been
prohibited since 1956 when the federal legislation that
authorized the Interstate was enacted. Limited exceptions to
this prohibition are granted to Interstates built prior to 1960
and to vending activities, priority for which is granted by
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federal and state law to blind vendors.
Perhaps the closest Congress has come to actually allowing
commercial activity along the Interstate is the federal
"Interstate Oasis" program, enacted in 2005. That program
authorizes states to designate and provide signing to facilities
near, but not within, the Interstate right of way. To be
included in the program, the facilities have to offer products
and services to the public, 24-hours access to restrooms, and
parking for automobiles and heavy trucks. States are empowered
to designate an "Interstate Oasis" if the facility meets all the
following criteria:
1)Is located within 3 miles of an interchange;
2)Is safely and conveniently accessible, as determined by an
engineering study;
3)Can physically accommodate all vehicles safely, including
heavy trucks;
4)Provides a public telephone, food and fuel, oil, and water for
vehicles; and,
5)Provides restrooms available to the public at all times (24
hours per day, 365 days per year) and drinking water at no
charge or obligation.
To date, the federal Interstate Oasis program has not had much
success--there are no designated facilities in any state.
Caltrans has had an equal lack of success in its efforts to
privatize rest stops: first, in obtaining federal authority to
permit commercial activities in the rest areas; and, second, to
solicit viable joint development proposals even for its
non-Interstate freeways. State law enacted in 1985 [SB 1380
(Ellis), Chapter 1139, Statutes of 1984], authorized a joint
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economic development demonstration program and provided for up
to 6 new road roadside rests. To date, however, no projects
have been built under this authority, due in large part to: 1)
the federal prohibition against commercial activities on the
Interstate; and, 2) the fact that heavily traveled areas outside
of the Interstate tend to already have commercial developments
(e.g., food, gas, and lodging) that cater to motorists. Less
traveled areas that remain undeveloped would probably not
generate enough business to sustain commercial activities within
or outside of the right of way.
Previous legislative attempts to nudge California into the
federal Interstate Oasis program have also been unsuccessful.
For example, AB 2485 (Hueso) of 2012, which was nearly identical
to this bill, attempted to "expand business, create jobs, save
the state money due to lower maintenance costs, and generate
additional revenue to fund other transportation projects" by
authorizing Caltrans to enter into agreements for the operation
of roadside rest areas by private entities. At the time,
supporters estimated that the public-private partnerships
envisioned in AB 2485 had the potential to bring in $3
million annually in lease revenue to the State Highway Account
and $7.5 million annually in new sales tax revenue and save the
state as much as $15 million annually in deferred maintenance
costs. Evidence from other states-which have Interstates that
were built prior to 1960 and are, therefore, authorized to
operate commercialized rest areas-supports these estimates, at
least in concept. For example, rest stops in Delaware, financed
entirely with private funds, reportedly generate $1.6 million
annually for the state.
Opponents to AB 2485 asserted that the long-standing ban on
commercial activities within the Interstate right of way has
been successful in encouraging commercial developments at the
exits along the Interstates. They cited as evidence of this
success statistics indicating that California has 1,378 gas
stations, over 8,000 highway-oriented food services locations,
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90 truck services sites, 260 fuel stops, and 61 truck stops
located within a quarter-mile of the Interstate. The opponents
argued that allowing rest areas commercialization will not
create new demand for food and fuel but simply siphon business
away from these exit-businesses. AB 2485 failed passage in this
committee.
AB 1814 attempts to reinvigorate the discussion regarding
public-private partnerships for rest areas. Specifically, AB
1814 authorizes Caltrans to enter into any number of privatized
roadside rest areas in conjunction with retail operations,
despite the federal prohibition against commercialization of
rest areas that remains in place.
Committee concerns:
1)California's most heavily traveled highways are its Interstate
highways, upon which federal law prohibits commercial
activities. It is highly unlikely that the federal government
will waive its long-standing ban on commercial activities
within Interstate rights of way, making it doubtful that this
bill could be implemented.
2)State Route 99, which runs north to south through the Central
Valley, would be a prime location for public-private
partnership developments within the rights of way were it not
for the commercial businesses that have already been developed
near the freeway exists. These businesses would likely be
harmed by joint development within the State Route 99 rights
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of way.
3)Any developments that may be authorized within the rights of
way should be required to provide a minimum level of services,
including:
a) Access to rest rooms and to drinking water 24 hours per
day, 365 days per year at no charge or obligation to
motorists; and,
b) Parking facilities for large trucks.
Previous legislation: AB 2485 (Hueso) of 2012 was nearly
identical to this bill. AB 2485 failed passage in this
committee.
AB 1566 (Niello) of 2007 would have required Caltrans and the
California Transportation Commission to identify and prioritize
one or more candidate projects for a joint economic development
rest area. AB 1566 was returned to the Chief Clerk pursuant to
Joint Rule 56.
SB 468 (Campbell) of 2005 would have expanded from 6 to 15 the
number of roadside rest areas that Caltrans would have been
allowed to construct, maintain, and operate as joint
public-private economic developments. SB 468 failed passage on
the Senate floor.
REGISTERED SUPPORT / OPPOSITION:
Support
None on file
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Opposition
None on file
Analysis Prepared by:Janet Dawson / TRANS. / (916) 319-2093