BILL ANALYSIS Ó
AB 2620
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Date of Hearing: April 18, 2016
ASSEMBLY COMMITTEE ON TRANSPORTATION
Jim Frazier, Chair
AB 2620
(Dababneh) - As Amended April 11, 2016
SUBJECT: Passenger rail projects: funding
SUMMARY: Authorizes the California Transportation Commission
(CTC) to reallocate funds from the Proposition 116 (1990)
program, if they are not encumbered or expended by 2020, for
other existing passenger rail projects with existing rail
service.
EXISTING LAW:
1)Enacts Proposition 116, the Clean Air and Transportation
Improvement Act (CATIA), which authorized $1.99 billion in
general obligation bonds for specific projects, purposes, and
geographic jurisdictions, primarily for passenger rail capital
projects.
2)Allows the Legislature to reallocate funds not expended or
encumbered by July 1, 2010, to any passenger rail project in
the state by a two-thirds vote in each house.
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3)Creates the CTC with specified powers and duties relative to
the programming of transportation capital improvement projects
and the allocations of transportation revenues.
FISCAL EFFECT: Unknown
COMMENTS: Proposition 116, which was approved by voters in
1990, authorized $1.99 billion in general obligation bonds for a
variety of intercity passenger rail, commuter rail, transit and
other projects. Specifically, $1.852 billion was authorized for
the preservation, acquisition, construction, or improvement of
rail rights-of-way, rail terminals and stations, rolling stock
acquisition, grade separations, rail maintenance facilities, and
other capital expenditures for rail purposes. Additionally, $73
million was authorized for 28 non-urban counties for various
rail projects, the purchase of paratransit vehicles, and other
capital facilities for public transportation. Finally, for
non-rail projects, $20 million was available for a competitive
bicycle program for capital outlay for bicycle improvement
projects and $30 million for a water-borne ferry program.
Proposition 116 is administered by the California Department of
Transportation (Caltrans) and the CTC and is programmed and
allocated in two-step process similar to the process used for
the State Transportation Improvement Program (STIP). First, the
CTC programs the funds for projects eligible under the original
authorization, which it does by approving project applications
that define a project's scope, schedule, and funding. Then the
CTC allocates the funds when the project is ready for funding.
As part of its 2015 Annual Report to the California Legislature,
the CTC urged the Legislature to enact legislation to sunset the
Proposition 116 program and reallocate any funds remaining at
that time to other passenger rail projects. The CTC reports the
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most recent action for allocating funds from the program
occurred in 2014-15, and as of June 30, 2015, of the amounts
programmed only $12.7 million remains unallocated.
According to the author, during a time when many are looking for
a funding source and solution to maintain and repair
California's transportation infrastructure, California should
better utilize existing funding sources. Further he states
that, in the case of Prop 116, money has been allocated, yet
some of these funds have not been utilized and if they remain
unused for an extended period of time, the state should
reallocate the funds to projects which will move forward. The
author continues that, while there has been little activity
related to these funds, the additional administrative cost to
the state can be avoided if the program sunset and the funds
were redirected to existing projects.
The CTC has recommended the Proposition 116 program be sunsetted
and the funds be reallocated for many years now. The CTC is
working with the remaining local agencies on their programmed
projects to try to finalize any allocations. AB 2620 would
allow the CTC to continue this process until 2020 before any
reallocation would occur. The CTC would then be able to
reallocate any unallocated funds to other passenger rail
projects in the state as outlined in the proposition. As the
state continues to grapple with funding shortfalls in all modes
of transportation, utilizing existing, unused Proposition 116
revenues for other rail projects seems appropriate.
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Related legislation: AB 2411 (Frazier), stops the transfer of
miscellaneous transportation revenues, such as the sale of
property, to the general fund to pay the general obligation bond
debt service for Proposition 116 bonds. AB 2411 is awaiting a
hearing in the Assembly Appropriations Committee.
REGISTERED SUPPORT / OPPOSITION:
Support
California Transportation Commission
Opposition
None on file
Analysis Prepared by:Melissa White / TRANS. / (916) 319-2093
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