BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 486
                                                                  Page  1


          SENATE THIRD READING
          SB 486 (DeSaulnier)
          As Amended  August 4, 2014
          Majority vote 

           SENATE VOTE  :Vote not relevant

           TRANSPORTATION      14-0        APPROPRIATIONS      12-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Lowenthal, Linder,        |Ayes:|Gatto, Bocanegra,         |
          |     |Achadjian, Ammiano,       |     |Bradford,                 |
          |     |Bloom, Bonta, Buchanan,   |     |Ian Calderon, Campos,     |
          |     |Daly, Frazier, Gatto,     |     |Eggman, Gomez, Holden,    |
          |     |Nazarian, Patterson,      |     |Pan, Quirk,               |
          |     |Quirk-Silva, Waldron      |     |Ridley-Thomas, Weber      |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Modifies processes for developing and adopting the  
          California Department of Transportation's (Caltrans') long-range  
          transportation planning and programming documents.   
          Specifically,  this bill  :  

          1)Makes legislative findings and declarations regarding:

             a)   A recent external assessment of Caltrans that called for  
               reforms to update the department's mission, strengthen its  
               performance, and align its work with broad state policy  
               goals; and,

             b)   The need to develop a long-term, inclusive planning  
               process for Caltrans, similar to the already-established  
               regional transportation planning process.  

          2)Authorizes the California Transportation Commission (CTC), in  
            consultation with Caltrans, to develop and adopt specific  
            goals for the department and directs CTC to develop  
            performance measures for each of the adopted goals.  

          3)Authorizes CTC to establish guidelines for Caltrans to follow  
            in developing the California Transportation Plan (CTP),  
            commencing with the 2020 update of the plan.  









                                                                  SB 486
                                                                  Page  2


          4)Directs Caltrans, by October 15, 2015, to submit to CTC an  
            interregional transportation strategic plan (ITSP) directed at  
            achieving a high-functioning and balanced interregional  
            transportation system; requires the ITSP to be consistent with  
            the CTP.  

          5)Requires projects included in the interregional transportation  
            improvement program (ITIP) to be consistent with the ITSP.  

          6)Requires CTC, when approving the final ITIP, to evaluate the  
            extent to which the program is consistent with statutorily  
            established funding priorities.  

          7)Requires CTC to develop guidelines for Caltrans to follow in  
            developing the State Highway Operation and Protection Program  
            (SHOPP) and authorizes CTC to decline to adopt the SHOPP if it  
            determines that the program is not sufficiently consistent  
            with the guidelines developed and adopted by the commission.  

          8)Requires CTC to include in its annual report a discussion and  
            analyses of Caltrans' support costs and expenditures.  

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee: 

          1)The CTC will need two senior staff positions, at an ongoing  
            special fund cost of $400,000 to develop performance measures  
            and goals for Caltrans, establish CTP and SHOPP guidelines,  
            review and approve the ITSP, conduct hearings on the ITIP,  
            increase oversight of SHOPP program review and approval, and  
            track and analyze Caltrans project costs for annual reporting  
            purposes.  Presumably this additional oversight will lead to  
            more efficient use of state transportation resources.  

          2)Caltrans will incur one-time costs of around $100,000 to  
            update guidelines and standards in its Project Development  
            Procedures Manual for project initiation documents and for  
            SHOPP development.  The department may also incur information  
            technology costs to update the database and software used to  
            manage the SHOPP.  

           COMMENTS  :  The genesis of this bill is, at least in part, a  
          recently released report issued by the State Smart  
          Transportation Initiative (SSTI).  SSTI was commissioned  








                                                                  SB 486
                                                                  Page  3


          California State Transportation Agency to assess Caltrans'  
          performance and to make recommendations for improvements.  In  
          short, the SSTI report found that Caltrans is "significantly out  
          of step" with best practices in the transportation field and  
          with many of the state's policy expectations.  SSTI asserts that  
          California would be better served by a stronger state  
          transportation department that is better aligned with  
          California's overarching policy goals, particularly those  
          related to sustainability.  

          This bill intends to do just that - better align state  
          priorities with Caltrans' planning processes and to use this  
          pairing to ensure the department's investments reflect these  
          priorities.  Within this context, this bill seeks to remedy  
          three specific perceived problems:  

          1)Caltrans lacks a strong performance management approach;
              
          2)Caltrans' programming documents, namely the ITIP and the  
            SHOPP, are not sufficiently in line with the state's  
            overarching goals or the department's long-term planning  
            efforts; and,

          3)Caltrans's ITIP and SHOPP are developed in an insular  
            environment and therefore fall short of reflecting broader  
            goals.  

          Please see the policy committee analysis for a full discussion  
          of this bill.  
           
           Related legislation:  SB 151 (DeSaulnier) of the current  
          legislative session, requires SHOPP projects to have capital and  
          support costs allocated by CTC.  SB 151 is in Assembly  
          Appropriations Committee.  

           
          Analysis Prepared by  :   Janet Dawson / TRANS. / (916) 319-2093 


                                                                FN: 0004732












                                                                  SB 486
                                                                  Page  4