BILL ANALYSIS Ó AB 2730 Page 1 ASSEMBLY THIRD READING AB 2730 (Alejo) As Amended May 31, 2016 Majority vote ------------------------------------------------------------------ |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+----------------------+--------------------| |Transportation |9-2 |Frazier, Bloom, |Kim, Melendez | | | |Brown, Chu, Daly, | | | | |Dodd, Gomez, Medina, | | | | |Nazarian | | | | | | | |----------------+-----+----------------------+--------------------| |Appropriations |14-3 |Gonzalez, Bloom, |Bigelow, Chang, | | | |Bonilla, Bonta, |Obernolte | | | |Calderon, Daly, | | | | |Eggman, Eduardo | | | | |Garcia, Roger | | | | |Hernández, Holden, | | | | |Quirk, Santiago, | | | | |Weber, Wood | | | | | | | | | | | | ------------------------------------------------------------------ SUMMARY: Directs proceeds from the sale of surplus property AB 2730 Page 2 originally purchased for the Prunedale Bypass to the State Highway Account for highway projects in the State Highway 101 corridor in Monterey County, and exempts these proceeds from the north/south split and county share formulas. EXISTING LAW: 1)Allows Caltrans to acquire any real property that it considers necessary for state highway purposes. 2)Allows Caltrans, whenever it determines that any real property acquired by the state for highway purposes is no longer necessary for those purposes, to sell or exchange it in the manner and upon terms, standards, and conditions established by the California Transportation Commission (CTC). 3)Requires Caltrans, to the greatest extent possible, to offer to sell or exchange excess real property within one year from the date that it determines the property is excess. 4)Generally requires state and local agencies, prior to disposing of excess lands, first to offer property for sale or lease to local public agencies, housing authorities, or redevelopment agencies within whose jurisdiction the property is located. Requires Caltrans to give priority first to entities agreeing to use the land for low- or moderate-income housing then to entities for open-space purposes, school facilities construction, enterprise zone purposes, and infill opportunities, in that order. 5)Directs the proceeds from the sale of excess property to be deposited first to the State Highway Account and then transferred to the Transportation Debt Service Fund to pay AB 2730 Page 3 debt service on general obligation transportation bonds. FISCAL EFFECT: According to the Assembly Appropriations Committee, 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: The author introduced this bill on behalf of Transportation Agency for Monterey County (TAMC). TAMC is responsible for developing and maintaining a multimodal transportation system in Monterey County. TAMC is hopeful that the proceeds from the sale of properties related to the Prunedale Bypass can be directed to "much-needed and long-deferred highway improvements." 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 the most ambitious of these incremental improvements. The purpose of the project is 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. The Prunedale Improvement Project represents only a portion of the broader improvements envisioned in the Prunedale Bypass project. AB 2730 Page 4 Like the bypass project, other projects elsewhere in the state have similarly languished and similarly left property unused for decades. In two of these cases, legislation 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. Specifically, 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 the long-planned Hayward Bypass on State Route (SR) 238 and improvements to SR 84. More recently, 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. This bill gives Caltrans the opportunity to fully vet the potential use of unused properties and to hold on to properties that it may use in the near future. Furthermore, this bill directs the proceeds from any of the Prunedale Bypass properties it does sell to improvement projects within the State Highway 101 corridor, similar to situation presented in SB 791 and SB 416. This will ensure that this bill does not set precedent beyond closing the books on these decades' old projects. Please see the policy committee analysis for full discussion of this bill. Analysis Prepared by: Toni Zupan / TRANS. / (916) 319-2093 FN: 0003178 AB 2730 Page 5