BILL ANALYSIS                                                                                                                                                                                                    



                                                                AB 1386
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        ASSEMBLY THIRD READING
        AB 1386 (Hayashi)
        As Amended  April 22, 2009
        Majority vote 

         TRANSPORTATION      11-3        APPROPRIATIONS      12-4         
         
         ------------------------------------------------------------------ 
        |Ayes:|Eng, Blumenfield,         |Ayes:|De Leon, Ammiano, Charles  |
        |     |Hayashi, Conway,          |     |Calderon, Davis, Fuentes,  |
        |     |Furutani, Galgiani,       |     |Hall, John A. Perez,       |
        |     |Bonnie Lowenthal, Miller, |     |Price, Skinner, Solorio,   |
        |     |John A. Perez, Solorio,   |     |Torlakson, Krekorian       |
        |     |Torlakson                 |     |                           |
        |     |                          |     |                           |
        |-----+--------------------------+-----+---------------------------|
        |Nays:|Jeffries, Garrick, Niello |Nays:|Nielsen, Duvall, Harkey,   |
        |     |                          |     |Audra Strickland           |
        |     |                          |     |                           |
         ------------------------------------------------------------------ 
         
        SUMMARY  :  Modifies provisions of existing law governing development  
        of a local alternative transportation improvement program (LATIP) in  
        the State Route 84 and SR 238 corridors.  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 accounting of revenue from the sale  
          of surplus property in the SR 84 and SR 238 corridors.  

        3)Provides for the relinquishment of segments of SR 92, SR 185, and  
          SR 238 to the City of Hayward, only if the California Department  
          of Transportation (Caltrans) and the city enter into agreements  
          providing for the relinquishments.  

         EXISTING LAW  :  

        1)Grants local authorities, acting jointly with transportation  
          planning agencies, authority to develop and file with the  
          California Transportation Commission (CTC), LATIPs to address  
          transportation problems county that were to be served by  
          construction of freeways on SR 84 and SR 238.  








                                                                AB 1386
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        2)Dictates that priority for funding in the LATIPs is to go to  
          projects in the local voter-approved transportation tax measure.  

        3)Grants CTC final authority over the content and approval of LATIPs  
          for SR 84 and SR 238 and prohibits it from approving any such  
          program submitted after January 1, 2010.  

        1)Directs the proceeds from the sale of excess properties, less  
          specified costs, to be allocated by CTC to fund the approved  
          LATIP.  These proceeds are exempt from formulae, such as the  
          north/south split and county shares, that generally govern the  
          distribution of capital improvement dollars for transportation.   
          These proceeds are restricted, however, for state highway  
          purposes.  

        2)Statutorily identifies state highway system routes; defines "state  
          highway" as any roadway that is acquired, laid out, constructed,  
          improved, or maintained as a state highway pursuant to  
          constitutional or legislative authorization.  

        3)Provides for the expansion or deletion of the state highway system  
          through a process whereby CTC makes a finding that it is in the  
          best interest of the state to include or delete a specified  
          portion of roadway to the system.  

        4)Provides for the relinquishment of a portion of state highway to a  
          city or county under an agreement between the local jurisdiction  
          and the Caltrans when an act of the Legislature has deleted the  
          portion of highway from the state highway system.  

         FISCAL EFFECT  :  According to the Assembly Appropriations Committee  
        analysis:

        5)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.  These costs will be the result of negotiations  
          between Caltrans and the respective cities following legislative  
          authorization for the relinquishments.  

        6)Long-term maintenance and repair savings to Caltrans if the CTC  
          exercises its authority to relinquish the highway segments.  

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







                                                                AB 1386
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         COMMENTS  :  In the late 1960s, Caltrans initiated a project to build  
        a freeway in the SR 238 corridor.  Caltrans purchased hundreds of  
        parcels for right-of-way for the freeway.  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.  SB 1711 (Holmdahl) Chapter 799,  
        Statutes of 1982, allowed local transportation authorities to  
        develop an alternative plan to the SR 238 project and required them  
        to submit that plan to CTC by January 1, 1986, after which the  
        commission was barred from approving any alternative plan.  SB 296  
        (Lockyer) Chapter 494, Statutes of 1985, extended the deadline to  
        January 1, 1988.  Both these deadlines went unmet.  

        SB 509 (Figueroa) Chapter 611, Statutes 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's SB 791  
        (Corbett) Chapter 705, Statutes of 2008 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, 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  :   Janet Dawson / TRANS. / (916) 319-2093 


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