BILL NUMBER: AB 2847 INTRODUCED BILL TEXT INTRODUCED BY Assembly Member Patterson FEBRUARY 19, 2016 An act to add Section 155.7 to the Streets and Highways Code, relating to state highways. LEGISLATIVE COUNSEL'S DIGEST AB 2847, as introduced, Patterson. State highways: transfer to local agencies: pilot program. Existing law provides that the Department of Transportation has full possession and control of all state highways and associated property, and sets forth the powers and duties with respect to operation, maintenance, and improvement of state highways. Existing law authorizes the California Transportation Commission to exercise various powers and duties on transportation matters, including the allocation of certain transportation capital improvement funds available to the state. This bill would require the department to participate in a pilot program over a 5-year period under which 3 counties, one in northern California, one in southern California, and one in the central valley, are selected to operate, maintain, and make improvements to all state highways, including freeways, in the affected county. The bill would require the department, with respect to those counties, for the duration of the pilot program, to convey all of its authority and responsibility over state highways in the county to the county or a regional transportation agency that has jurisdiction in the county. The bill would require the commission to administer and oversee the pilot program, and to select the counties that will participate in the program. The bill would require certain moneys to be appropriated for these purposes as a block grant in the annual Budget Act to a participating county, as specified. The bill would authorize any cost savings realized by a participating county to be used by the county for other transportation priorities. The bill would require the participating counties to report to the Legislature upon the conclusion of the pilot program. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 155.7 is added to the Streets and Highways Code, to read: 155.7. (a) The department shall participate in a pilot program over a five-year period under which three counties, one in northern California, one in southern California, and one in the central valley, shall be selected to operate, maintain, and make improvements to all state highways, including freeways, in the affected county. The department, with respect to those counties, shall, for the duration of the pilot program, convey all of its authority and responsibility over state highways in the county to the county or a regional transportation agency that has jurisdiction in the county. The pilot program shall commence no later than January 1, 2018. (b) The commission shall administer and oversee the pilot program and shall, from applications received, select the counties that will participate in the program. The commission shall exercise the same level of oversight over expenditure of state highway resources in a participating county as it exercises over the department with respect to state highways in nonparticipating counties. (c) For the duration of the pilot program, moneys shall be appropriated as a block grant in the annual Budget Act to a participating county in an amount equivalent to federal and state funds otherwise to be expended by the department on the state highways in the county, including, among other things, funding for operations, maintenance, capital outlay support, the State Highway Operation and Protection Program, and the State Transportation Improvement Program. The commission, in consultation with the department, shall determine the applicable grant amounts for each participating county and shall submit its recommendations to the Governor and the Legislature. (d) Any cost savings realized by a participating county, compared to comparable expenditures that otherwise would have been undertaken by the department on state highways in the county in the absence of the pilot program, may be used by the county for other transportation priorities consistent with eligible expenditures for the funding source involved, subject to approval by the commission. (e) The participating counties shall report to the Legislature upon the conclusion of the pilot program, in the manner provided in Section 9795 of the Government Code.