BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                   AB 286|
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                                 THIRD READING


          Bill No:  AB 286
          Author:   Bill Berryhill (R)
          Amended:  8/30/11 in Assembly
          Vote:     21

           
           SENATE TRANSPORTATION & HOUSING COMM  :  8-0, 06/14/11
          AYES:  DeSaulnier, Gaines, Harman, Huff, Kehoe, Lowenthal, 
            Pavley, Simitian
          NO VOTE RECORDED:  Rubio

           SENATE APPROPRIATIONS COMMITTEE  :  9-0, 08/25/11
          AYES:  Kehoe, Walters, Alquist, Emmerson, Lieu, Pavley, 
            Price, Runner, Steinberg

           ASSEMBLY FLOOR  :  75-0, 05/19/11 - See last page for vote


           SUBJECT  :    State highways:  Routes 108 and 120

           SOURCE  :     Author


           DIGEST  :    This bill requires the California Transportation 
          Commission to program funds received from the sale of 
          excess properties in the State Route (SR) 120, less any 
          reimbursements due to the federal government and all costs 
          incurred in the sale of those excess properties, corridor 
          for improvements to the SR 108 corridor.

           ANALYSIS  :    Existing law authorizes the Department of 
          Transportation (Caltrans) to acquire properties for 
          transportation projects or operational needs such as a 
                                                           CONTINUED





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          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 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.   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. 
             







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           This bill:

          1.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, less any reimbursements 
            due to the federal government and all costs incurred in 
            the sale of those excess properties, corridor in 
            Stanislaus County into a special account created by the 
            bill.  

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

          3.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.

          4.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
           
          According to the author's office, 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 
          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.
           
          Related Legislation  

          AB 1386 (Hayashi), Chapter 291, Statutes of 2009, requires 







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          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.

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

          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)

           Major Provisions               2011-12     2012-13    
           2013-14   Fund
           Redirection of funds     unknown amount (likely several 
          million)            Special*
                              redirected for specified alternative 
          project.  
                              Absent the bill, these funds would be 
          available
                              or general allocation to other highway 
          projects.

          * State Highway Account

           SUPPORT  :   (Verified  8/30/11)

          Stanislaus County 
          City of Riverbank
          City of Oakdale
          Tuolumne County Transportation Council


           ASSEMBLY FLOOR  :  75-0, 05/19/11
          AYES:  Achadjian, Allen, Ammiano, Atkins, Beall, Bill 
            Berryhill, Block, Blumenfield, Bonilla, Bradford, 
            Brownley, Buchanan, Butler, Charles Calderon, Campos, 
            Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, 
            Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, Beth 
            Gaines, Galgiani, Garrick, Gatto, Gordon, Grove, Hagman, 
            Halderman, Hall, Harkey, Hayashi, Roger Hern�ndez, Hill, 
            Huber, Huffman, Jeffries, Jones, Knight, Lara, Logue, 







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            Bonnie Lowenthal, Mansoor, Mendoza, Miller, Mitchell, 
            Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan, 
            Perea, V. Manuel P�rez, Portantino, Silva, Skinner, 
            Smyth, Solorio, Swanson, Torres, Valadao, Wagner, 
            Wieckowski, Williams, Yamada, John A. P�rez
          NO VOTE RECORDED:  Alejo, Donnelly, Gorell, Hueso, Ma


          JJA:nl  8/30/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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