BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1386
                                                                  Page  1

          Date of Hearing:   May 6, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                   AB 1386 (Hayashi) - As Amended:  April 22, 2009

          Policy Committee:                               
          TransportationVote:11-3

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill modifies provisions governing development of a local  
          alternative transportation improvement program (LATIP) in the  
          State Route (SR) 84 and SR 238 corridors in the East Bay.  
          Specifically, this bill:

          1.Expands the uses for which proceeds from the sale of surplus  
            property in the SR 238 corridor can be allocated to include  
            improvements on any highways, not just state highways. 

          2.Adds provisions governing the deposit and use of revenue from  
            the sale of surplus property in the SR 84 and SR 238  
            corridors.

          3.Authorizes the California Transportation Commission (CTC) to  
            relinquish to the City of Hayward those segments of SR 92 (8.2  
            miles), SR 185 (.95 miles), and SR 238 (6.2 miles) within the  
            city limits, and subject to agreement between the City and  
            Caltrans.

           FISCAL EFFECT  

          1)Moderate one-time special fund costs, potentially in the  
            hundreds of thousands to millions of dollars, for Caltrans to  
            bring the highway segments up to a "state of good repair"  
            before they are relinquished.  (State Highway Account (SHA))   
            These costs will be the result of negotiations between  
            Caltrans and the respective cities following legislative  
            authorization for the relinquishments.

          2)Long-term maintenance and repair savings to Caltrans, if the  








                                                                  AB 1386
                                                                 Page  2

            CTC exercises its authority to relinquish the highway  
            segments.  (SHA)

          3)Potential redirection of revenues from surplus property sales  
            in the SR 238 corridor to other than state highways.

           COMMENTS  

           Background and Purpose  .  In the late 1960s, Caltrans initiated a  
          project to build a freeway in the SR 238 corridor.  The  
          department purchased hundreds of parcels for freeway  
          right-of-way, but the project stalled in the 1970s, and by the  
          start of the 1980s, the project had encountered enough delays  
          and problems to be considered infeasible by most interested  
          parties.  Legislation in 1982 allowed local transportation  
          authorities to develop an alternative plan to the SR 238 project  
          and required that a plan be submitted to the CTC by January 1,  
          1986, after which the commission was barred from approving any  
          alternative plan. Subsequent legislation extended the deadline  
          to January 1, 1988, but both deadlines went unmet.  SB 509  
          (Figueroa)/Chapter 611 of 2004, revived the LATIP process and  
          established a new deadline of January 1, 2010.  AB 1462  
          (Torrico) Chapter 619/Statutes of 2005, added SR 84 to  
          provisions providing for the LATIP in Alameda County.  Last  
          year, SB 791 (Corbett)/Chapter 705 authorized the use of  
          revenues from sales of excess properties for projects in the  
          local alternative transportation improvement program that are  
          also in the local voter-approved transportation sales tax  
          measure, subject to approval by Caltrans. 

          According to the author, in addition to providing for the  
          relinquishment of state highway segments within the City of  
          Hayward, provisions in the bill establishing an accounting  
          mechanism will ensure the proceeds of the property sales can be  
          tracked. This bill is the next step toward closing out these  
          obsolete state highway projects and moving forward toward  
          meeting local housing and transportation needs. 

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