BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
                              Senator Jim Beall, Chair
                                2015 - 2016  Regular 

          Bill No:          SB 1141           Hearing Date:    4/19/2016
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          |Author:   |Moorlach                                              |
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          |Version:  |4/5/2016                                              |
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          |Urgency:  |No                     |Fiscal:      |Yes             |
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          |Consultant|Manny Leon                                            |
          |:         |                                                      |
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          SUBJECT:  State highways:  transfer to local agencies:  pilot  
          program


            DIGEST:  This bill establishes a pilot program administered by  
          the California Transportation Commission (CTC) to allow two  
          counties to operate, maintain, and make improvements to the  
          state highway system within their jurisdictions. 

          ANALYSIS:
          
          Existing law: 

          1)Provides that the State Department of Transportation  
            (Caltrans) has full possession and control of all state  
            highways and associated property and further sets forth the  
            powers and duties with respect to operation, maintenance, and  
            improvement of state highways.

          2)Authorizes the CTC to exercise various powers and duties on  
            transportation matters, including the allocation of certain  
            transportation capital improvement funds available to the  
            state.

          3)Provides that county boards of supervisors have general  
            supervision, management, and control of county highways within  
            their jurisdictions. 

          This bill:








          SB 1141 (Moorlach)                                 Page 2 of ?
          
          
          1)Establishes a pilot program administered by the CTC to allow  
            two counties, one northern and one southern, to operate,  
            maintain, and make improvements to the state highway system  
            within their jurisdictions, and additionally allows any cost  
            savings generated under the pilot program to be used for other  
            transportation projects, as specified.  

          2)Requires Caltrans to release all of its authority and  
            responsibility over the state highway system within the  
            selected counties' jurisdictions, as specified. 
          3)Specifies that if no counties apply by January 1, 2018, the  
            pilot program shall not go into effect. 

          COMMENTS:

          1)Purpose.  The author notes, "The earliest predecessor of  
            Caltrans was intended to create a state-wide system of roads,  
            a responsibility deemed too daunting for an ad hoc coalition  
            of local agencies. Now that California has a complete highway  
            system, with no new state-wide traditional road projects  
            underway, it is reasonable that some authority could be handed  
            back to local agencies." The author further asserts that  
            "within Caltrans districts, the spread of funding and other  
            resources may be inequitable.  Handing control of and funding  
            back to smaller agencies would ensure that local agencies are  
            able to best serve their respective populations."  

          2)Is there a demand for local control?  This bill allows a local  
            county to participate in a pilot program to take over the  
            state highway system within its jurisdictional boundaries.   
            However, it is unclear whether, in a period of declining  
            transportation revenues for both state and local programs  
            coupled with an ongoing increase in transportation  
            infrastructure and maintenance needs, that a local agency  
            would willingly take on the additional responsibility of  
            managing a portion of the state highway system.  Additionally,  
            county agencies lack the legal, programming, and engineering  
            resources and expertise to effectively manage the state  
            highway system.  If a county was to participate in the pilot  
            program, it is unclear whether the county would have to hire  
            additional employees and/or purchase additional equipment to  
            carry out the abovementioned functions.  At the writing of  
            this analysis, no county had provided the committee with an  
            jexpressed interest in participating in this pilot program. 









          SB 1141 (Moorlach)                                 Page 3 of ?
          
          
          3)Contracting out squared.  This bill, in its current form,  
            specifies that a county is required to apply to the pilot  
            program, then subsequently authorizes a county or regional  
            transportation agency (RTPA) to manage the state highway  
            system over the five-year duration of the program.  Being that  
            RTPAs are responsible for programming a portion of state  
            transportation revenues and many administer local sales tax  
            measures that provide funding for highway improvements, RTPAs  
            may arguably be better equipped to manage the state highway  
            system.  However, it is unclear whether a county entering into  
            the pilot program - then turning around and contracting out  
            responsibilities to an RTPA - is more efficient than the  
            existing process.  Furthermore, it is unclear if an RTPA would  
            have the resources to take on additional responsibilities on  
            top of administering its existing local transportation  
            programs.  
          4)Cost savings?  This bill requires CTC, in consultation with  
            Caltrans, to determine the necessary amount of funds to be  
            allocated to a participating county in the form of an annual  
            block grant.  This bill also specifies that a participating  
            county may use any generated cost savings for other relevant  
            transportation priorities.  However, the resources required to  
            develop and administer this specific block grant, the  
            potential need by a local agency to employ additional staff,  
            and the potential need to purchase additional equipment are  
            all unknown.  Moreover, this bill is unclear on what becomes  
            of state employees if a county elects to participate in the  
            pilot program.  Presumably, at the very minimum, the state  
            would be responsible for the employment and salaries of  
            Caltrans employees for a period of time during the pilot  
            program's implementation.  Furthermore, federal law identifies  
            Caltrans as the designated recipient of federal transportation  
            funds.  Yet, if a county was to participate in the pilot  
            program specified in this bill, it is unclear how federal  
            funds would be allocated to highway projects in that region.   
            Would Caltrans still be responsible for administering funds  
            from federal programs while the county would be managing the  
            state highways?  

          FISCAL EFFECT:  Appropriation:  No    Fiscal Com.:  Yes     
          Local:  No


            POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,








          SB 1141 (Moorlach)                                 Page 4 of ?
          
          
                          April 13, 2016.)
          
            SUPPORT:  

          None received

          OPPOSITION:

          Orange County Employees Association 
          Professional Engineers in California Government 



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