CA ABX116

Requires the Department of Transportation to participate in a 5-year pilot program transferring operation, maintenance, and improvement authority over all state highways (including freeways) from the state to 2 counties—one in northern California and one in southern California.

The California Transportation Commission must select participating counties from applications and exercise the same oversight level over county expenditures as it does over the Department of Transportation.

Appropriates block grant funding to participating counties equivalent to federal and state funds the Department would otherwise spend on state highways, including operations, maintenance, capital outlay, and transportation improvement programs.

Allows participating counties to use any cost savings realized compared to Department spending on other eligible transportation priorities, subject to Commission approval.

Requires participating counties to submit a report to the Legislature upon conclusion of the pilot program, with the program commencing no later than January 1, 2017.