BILL ANALYSIS                                                                                                                                                                                                    �






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: ab 286
          SENATOR MARK DESAULNIER, CHAIRMAN              AUTHOR:  b. 
          berryhill
                                                         VERSION: 4/27/11
          Analysis by:  Erin Riches                      FISCAL:  yes
          Hearing date:  June 14, 2011



          SUBJECT:

          State highways: Routes 108 and 120

          DESCRIPTION:

          This bill requires the California Transportation Commission to 
          program funds received from the sale of excess properties in the 
          State Route (SR) 120 corridor for improvements to the SR 108 
          corridor.

          ANALYSIS:

          Existing law authorizes the California Department of 
          Transportation (Caltrans) to acquire properties for 
          transportation projects or operational needs such as a 
          maintenance station.  Occasionally a property becomes "excess;" 
          for example, when Caltrans determines that the property is no 
          longer necessary for a project or operational need or when an 
          anticipated funding source fails to materialize.  In such cases, 
          Caltrans sells the excess properties, either at auction or to an 
          adjoining owner or other public agency.

          Existing law requires Caltrans, upon selling excess properties, 
          to deposit the proceeds into the State Highway Account.  
          Customarily, these funds would be available for allocation by 
          the California Transportation Commission (CTC) to highway 
          programs and projects throughout the state.  Budget trailer 
          legislation enacted in March, however, altered this practice.  
          AB 105 (Committee on Budget, Chapter 6, Statutes of 2011) 
          requires the State Controller temporarily to transfer all funds 
          not protected by Article X1X of the State Constitution, from the 
          State Highway Account to the Transportation Debt Service Fund in 
          the State Transportation Fund.  This legislation provides relief 
          to the General Fund, from which the state has historically paid 
          debt service on transportation-related general obligation bonds. 
           Thus, until July 1, 2013, proceeds from all sales of Caltrans 




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          excess properties are now statutorily directed to repayment of 
          bonds rather than being available for allocation to future 
          projects.

          Existing law designates the CTC as the entity responsible for 
          programming and allocating funds for highway, passenger rail, 
          and transit improvement projects throughout the state.  This is 
          done primarily through the State Transportation Improvement 
          Program (STIP) and State Highway Operations and Protection 
          Program (SHOPP).   The CTC also allocates funds from general 
          obligation bonds, such as Proposition 1B, the Safety, Traffic 
          Reduction, Air Quality, and Port Security Bond Act of 2006.  The 
          regional transportation planning agencies program 75 percent of 
          the STIP revenues that fund projects to increase highway 
          capacity within their regions, and Caltrans programs the 
          remaining 25 percent for interregional projects.  Both the 
          regional agencies and Caltrans submit their respective programs 
          to the CTC for inclusion in the STIP; the CTC distributes STIP 
          funds to the counties based on a set of statutory formulas.    

           This bill  :
          
                 Requires Caltrans to deposit proceeds from the sale, on 
               or after July 1, 2013, of excess properties it acquired for 
               improvements to the SR 120 corridor in Stanislaus County 
               into a special account created by the bill.  

                 Requires interest earnings from funds in the special 
               account to accrue to the account.  

                 Requires the CTC to program the funds in the special 
               account to any phase of the North County Corridor of SR 108 
               in Stanislaus County.

                 Allows the CTC to allocate the funds, upon appropriation 
               by the Legislature, to the Stanislaus Council of 
               Governments (Stan COG) or any agency designated by Stan COG 
               to deliver the North County Corridor.

          COMMENTS:

              1.   Purpose  .  According to the author, Caltrans purchased 
               large amounts of property in northern Stanislaus County to 
               construct the SR 120 bypass around the City of Oakdale but 
               never built the facilities.  Caltrans expects to declare 
               this property surplus and is currently working with Stan 




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               COG, Stanislaus County, and the City of Oakdale to plan for 
               the sale of these properties.  An alternative to the 
               defunct Oakdale bypass project, known as North County 
               Corridor, is being pursued by Caltrans and a joint powers 
               authority comprised of the City of Modesto, City of 
               Oakdale, City of Riverbank, County of Stanislaus, Stan COG, 
               and Caltrans.  This bill would ensure that funding is 
               provided for this alternative project by directing the 
               proceeds from the sale of SR 120 lands to the North County 
               Corridor.

              2.   An Exception to the Rule  .  As noted above, proceeds from 
               the sale of Caltrans excess properties are customarily 
               deposited into the State Highway Account, where they are 
               available for programming by the CTC, Caltrans, and the 
               regions.  This bill would remove the flexibility to program 
               these funds through existing formulas.  By doing so, the 
               bill would ensure that the funds are spent in the same 
               county for which they were originally intended. 

              3.   Keeping a Promise  .  The CTC adopted a northern corridor 
               expressway, the SR 120 Oakdale Bypass, in 2002.  As traffic 
               patterns changed over time, Caltrans has worked with local 
               entities to develop a northern corridor alternative.  The 
               CTC redirected the Oakdale Bypass funds in the 2008 STIP 
               with the understanding that these funds would be restored 
               to a viable replacement project in the future.  The current 
               (2010) STIP, however, lacked sufficient capacity to program 
               the project.  In May 2010, the CTC approved the SR 108 
               route and in the STIP continued its commitment to fund the 
               project in the future.  

              4.   Related legislation  .  AB 1386 (Hayashi), Chapter 291, 
               Statutes of 2009, requires Caltrans to deposit proceeds 
               from the sale of excess properties in the SR 238 and SB 84 
               corridors in Alameda County into a special account.  AB 
               1386 requires the CTC to allocate funds from this special 
               account to the SR 238 and SB 84 local alternative 
               transportation improvement programs.
           
          Assembly Votes:
               Floor:    75-0
               Appr: 16-0
               Trans:    14-0

          POSITIONS:  (Communicated to the Committee before noon on 




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          Wednesday,
                     June 8, 2011 )

               SUPPORT:  Stanislaus County (sponsor)
                         City of Riverbank
                         City of Oakdale
                         Tuolumne County Transportation Council
          
               OPPOSED:  None received.