BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2730


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          Date of Hearing:  May 11, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          2730 (Alejo) - As Amended April 25, 2016


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill directs proceeds from the sale of surplus property  
          originally purchased for the Prunedale Bypass (Monterey County)  
          to the State Highway Account for highway projects in the State  
          Highway 101 corridor within that county, and exempts these  
          proceeds from the north/south split and county share formulas.


          FISCAL EFFECT:








                                                                    AB 2730


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          One-time revenue from the property sales, earmarked for projects  
          on the State Highway 101. Caltrans indicates that there 112  
          parcels, totaling 304 acres, that would be disposed. The  
          estimated value of these properties is between $5 million and  
          $12 million. Absent this bill, these revenues would be deposited  
          into the State Highway Account and allocated as per current law.


          COMMENTS:


          1)Purpose. The Prunedale Bypass, a project to re-route State  
            Highway 101 around the community of Prunedale, has been on the  
            books since the 1950s.  In an effort to preserve right-of-way  
            related to the planned project, Caltrans bought over 140  
            parcels totaling 353 acres.  The Prunedale Bypass has since  
            been abandoned and is no longer in the area's long-range  
            plans.  


            In the meantime, the area has moved forward with incremental  
            improvements to address growing congestion and safety  
            concerns.  The Prunedale Improvement Project is intended to  
            improve safety along State Highway 101 and intersecting local  
            roadways, improve traffic flow along the corridor, and improve  
            accessibility to area homes, businesses, and services.


          2)Prior Legislation. Like this bypass project, other projects in  
            the state have similarly languished and left property unused  
            for decades. In two recent cases, legislation similar to AB  
            2730 was enacted to facilitate the sale of the property and  
            the return of the proceeds to the corridor for which the  
            properties were originally purchased.  SB 791 (Corbett),  
            Chapter 705, Statutes of 2008, authorized the use of revenues  
            from sales of excess properties for projects in a local  
            alternative transportation improvement program that replaced  








                                                                    AB 2730


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            the long-planned Hayward Bypass on State Route (SR) 238 and  
            improvements to SR 84 in Alameda County.  SB 416 (Liu),  
            Chapter 468, Statutes of 2013, directed the revenue from the  
            sale of surplus properties in the SR 710 corridor in Los  
          Angeles County to local transportation improvements. 


          Analysis Prepared by:Chuck Nicol / APPR. / (916)  
          319-2081