BILL ANALYSIS                                                                                                                                                                                                    Ó




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                                   THIRD READING 


          Bill No:  SB 254
          Author:   Allen (D)
          Amended:  6/2/15  
          Vote:     21  

           SENATE TRANS. & HOUSING COMMITTEE:  11-0, 4/28/15
           AYES:  Beall, Cannella, Allen, Bates, Gaines, Galgiani, Leyva,  
            McGuire, Mendoza, Roth, Wieckowski

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 5/28/15
           AYES:  Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen

           SUBJECT:   Streamlining highway relinquishments State highways:  
                     relinquishment.


          SOURCE:    Author


          DIGEST:  This bill authorizes the California Transportation  
          Commission (CTC) to relinquish portions of the state highway  
          system to a county or city without legislative action.


          ANALYSIS:

          Existing law: 

          1)Identifies the California state highway system (SHS) through a  
            description of segments of the state's regional and  
            interregional roads that are owned and operated by the  
            Department of Transportation (Caltrans).  Technically, a state  
            highway is any roadway that Caltrans is legislatively  
            authorized to acquire, lay out, construct, improve, or  
            maintain.  








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          2)Specifies that it is the intent of the Legislature for the  
            routes of the SHS to connect the communities and regions of  
            the state and that they serve the state's economy by  
            connecting centers of commerce, industry, agriculture, mineral  
            wealth, and recreation.  

          3)Provides a two-step process for the state to expand or delete  
            a section of the state highway system that begins with the  
            Legislature amending existing law and then the CTC making  
            findings that it is in the best interest of the state to  
            include or delete a specified portion of roadway from the  
            system.  This is known as the state highway relinquishment  
            process.

          This bill:

          1)Authorizes CTC, absent legislative action, to relinquish to a  
            county or city a portion of the SHS within that county or  
            city, as long as it is not part of the interregional road  
            system as defined in existing law.  

          2)Restricts CTC from relinquishing any portion of the SHS until  
            Caltrans has placed the highway in a state of good repair.

          3)Requires Caltrans, by April 1, 2016, and every two years  
            thereafter, to report to CTC on which highway segments  
            primarily serve regional travel versus facilitating  
            interregional movement of people and goods.  From this report  
            Caltrans must identify which routes and segments are the best  
            candidates for future relinquishment.  CTC must develop  
            guidelines for this report in consultation with Caltrans.

          4)Requires CTC to compile a list of relinquished highway routes  
            and segments in the previous 12 months and include this  
            information in its annual report to the Legislature.

          Comments

          Purpose.  According to the author, there appear to be a number  
          of state highways defined in existing law that no longer serve  
          the purpose of a typical highway.  They may be urban routes  








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          through heavily populated areas, or main streets for burgeoning  
          suburbs.  It doesn't make sense for the state to bear the cost  
          of maintaining these roads, nor is it practicable for local  
          governments to have to work through the state bureaucracy to  
          make important changes like adding parking or turning a  
          thoroughfare into a "complete street."  This bill makes it  
          easier for relinquishments to take place, but only when both the  
          state and the local government agree that it is in everyone's  
          best interest.  

          Why streamline relinquishments?  Each session, the Legislature  
          passes and the governor signs numerous bills authorizing CTC to  
          relinquish segments of the state highway system to local  
          jurisdictions.  Relinquishment transactions are generally  
          preceded by a negotiation of terms and conditions between the  
          local jurisdiction and Caltrans.  Once an agreement has been  
          established, CTC typically approves the relinquishment and  
          verifies its approval via a resolution.    
            
          In January of this year, the administration proposed budget  
          trailer bill language intending to streamline the state's  
          relinquishment process.  According to the governor's budget  
          summary, a number of routes are still part of the SHS that serve  
          primarily regional or local purposes.  The proposed trailer bill  
          language broadens and streamlines the state process for  
          relinquishing these portions of the statewide system that  
          primarily serve regional or local purposes.  This could be a  
          win-win proposal, with both locals and the state benefiting.  On  
          one hand, shifting ownership of these segments, many of which  
          run through a downtown area, will increase local flexibility to  
          add stoplights and make better use of valuable real estate to  
          support transit-oriented development.  Meanwhile, additional  
          relinquishments reduce the state's long-term costs for ongoing  
          maintenance and repair of the state system.  There is merit in a  
          proposal streamlining the relinquishment process; however, it  
          seems that such a proposal should be considered through the  
          policy bill process and not as an add-on to the state's annual  
          budget.  This bill essentially mirrors the administration's  
          proposal in a policy bill for just this purpose.

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No








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          According to the Senate Appropriations Committee, this bill has  
          the following costs:  

          1)Unknown costs to Caltrans, from minor to low millions for each  
            relinquishment, depending on the terms of agreements with  
            local agencies.  Any one-time costs for each relinquishment  
            would be offset in future years due to avoided maintenance  
            costs on the relinquished segment. (State Highway Account)  

          2)Caltrans staffing costs:  approximately $90,000 in ongoing  
            staff time to develop additional cost-benefit analyses, and an  
            additional $96,000 in 2016-17 and 2017-18 to conduct a  
            thorough assessment of relinquishment candidates and estimate  
            future maintenance costs.  These limited-term costs may be  
            extended depending on requirements specified in guidelines.  
            (State Highway Account)

          3)CTC costs of approximately $120,000 annually to adopt  
            guidelines, review and evaluate more relinquishment proposals,  
            and adopt those proposals in a public hearing.  (State Highway  
            Account)


          SUPPORT:   (Verified5/29/15)


          City of Lomita
          League of California Cities
          Rural County Representatives of California


          OPPOSITION:   (Verified5/29/15)


          None received



          Prepared by:Eric Thronson / T. & H. / (916) 651-4121








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          6/2/15 21:28:32


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