BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1386
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 1386 (Hayashi)
          As Amended  September 2, 2009
          Majority vote
           
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          |ASSEMBLY:  |55-21|(June 1, 2009)  |SENATE: |25-14|(September 8,  |
          |           |     |                |        |     |2009)          |
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           Original Committee Reference:    TRANS  .

           SUMMARY  :  Modifies provisions of existing law governing  
          development of a local alternative transportation improvement  
          program (LATIP) in the State Route (SR) 84 and SR 238 corridors.  
           

           The Senate amendments  :  

           1)Define "excess properties" for purposes of this bill to mean  
            properties acquired, but no longer needed, to construct a new  
            SR 84 in the Cities of Fremont and Union City.  

          2)Provide for the use of proceeds from the sale excess  
            properties for relocation assistance.  

          3)Reconstruct provisions governing the accounting of revenue  
            from the sale of surplus property in the SR 84 and SR 238  
            corridors.  

          4)Allow a local jurisdiction to advance a project included in  
            either the SR 84 or SR 238 LATIP prior to sufficient funds  
            being available from the sale of excess properties.  

          5)Allow a local agency to enter into an agreement with a  
            transportation planning agency, the California Department of  
            Transportation (Caltrans), and the California Transportation  
            Commission (CTC), to use its own funds to develop, purchase  
            right of way for, and construct a transportation project if  
            the project is in the LATIP, is to be funded by the proceeds  
            of excess properties and meets other, specified conditions.  

          6)Provide that existing provisions related to providing  
            relocation assistance and replacement housing units for  
            persons displaced as a result of the sale of excess properties  








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            in the SR 238 corridor will remain operative until the  
            superior court issues a final settlement agreement related to  
            the disposition of the excess properties, or until January 1,  
            2010, whichever comes later.  

          7)Provide that, upon issuance of that final settlement  
            agreement, the LATIP for the SR 238 corridor must provide:  

             a)   A program to provide monetary assistance for tenants in  
               the corridor;  

             b)   A program to provide 237 additional new low-income  
               housing units in the corridor; and

             c)   A program to provide home purchase assistance.  

          8)Prohibit excess property, or the proceeds from the sale of  
            excess property, in the SR 238 corridor to be used for housing  
            or housing-related programs except that excess property may be  
            used for housing purposes after Caltrans sells the property.  
          9)Provide that proceeds from the sale of excess properties may  
            be used to cover the cost of selling the properties.  

          10)Set forth provisions governing the sale of excess properties,  
            including:

             a)   Directs the sale of residential property on an "as is"  
               basis at fair market value, except that properties needed  
               for the LATIP may not be sold;

             b)   Exempts the sale of excess properties from general  
               statutes governing the disposition of excess property owned  
               by the state;

             c)   Exempts the disposition of excess properties from the  
               California Environmental Quality Act; and,

             d)   Requires Caltrans to offer the direct sale of excess  
               properties, at fair market value, to residential tenants  
               that have occupied excess property in the SR 238 corridor  
               for two or more years.  

           EXISTING LAW  :  

          1)Grants local authorities, acting jointly with transportation  








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            planning agencies, authority to develop and file with CTC,  
            LATIPs to address transportation problems county that were to  
            be served by construction of freeways on SR 84 and SR 238.  

          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.  

          4)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.  

          5)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.  

          6)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.  

          7)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.  

           AS PASSED BY THE ASSEMBLY  , this bill:
          1)Expanded 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)Added provisions governing the accounting of revenue from the  
            sale of surplus property in the SR 84 and SR 238 corridors.  

          3)Provided for the relinquishment of segments of SR 92, SR 185,  








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            and SR 238 to the City of Hayward, only if Caltrans and the  
            City enter into agreements providing for the relinquishments.   


           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee:  

          1)Unknown costs to Caltrans to relinquish highway segments,  
            depending on the final agreement between Caltrans and the  
            cities.  

          2)Unknown long-term annual savings to Caltrans due to relief  
            from any future maintenance and repair costs of the  
            relinquished highway segments.  

          3)One-time CTC costs of $50,000 to $100,000 related to  
            promulgating regulations.  

           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 CTC 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  








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          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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