BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2730


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          GOVERNOR'S VETO


          AB  
          2730 (Alejo)


          As Enrolled  September 2, 2016


          2/3 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           |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
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                                                                    AB 2730


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          |ASSEMBLY:  |55-23 |(June 2, 2016) |SENATE: |38-0  |(August 18,      |
          |           |      |               |        |      |2016)            |
          |           |      |               |        |      |                 |
          |           |      |               |        |      |                 |
          |           |      |               |        |      |                 |
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          SUMMARY:  Directs proceeds from the sale of surplus property  
          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  








                                                                    AB 2730


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            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  
            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.  









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          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.


          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. 


          GOVERNOR'S VETO MESSAGE:








                                                                    AB 2730


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               This bill directs the Department of Transportation to  
               use the revenues from surplus property sold in  
               Monterey County towards local highway projects in the  
               county, rather than transfer the proceeds to the  
               General Fund.


               These revenues are used to pay existing debt service  
               on transportation construction projects statewide,  
               which is an important purpose.  Maintaining this  
               funding stream to the General Fund is even more  
               necessary when the state's budget remains precariously  
               balanced.


          Analysis Prepared by:                                             
                          Janet Dawson / TRANS. / (916) 319-2093  FN:   
          0005063