BILL NUMBER: SB 463	CHAPTERED
	BILL TEXT

	CHAPTER  446
	FILED WITH SECRETARY OF STATE  SEPTEMBER 25, 2006
	APPROVED BY GOVERNOR  SEPTEMBER 25, 2006
	PASSED THE SENATE  AUGUST 31, 2006
	PASSED THE ASSEMBLY  AUGUST 30, 2006
	AMENDED IN ASSEMBLY  AUGUST 22, 2006

INTRODUCED BY   Senator Ducheny

                        FEBRUARY 18, 2005

   An act to add Section 143.1 to the Streets and Highways Code,
relating to transportation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 463, Ducheny  Toll roads: State Highway Route 125.
   Existing law, until January 1, 2003, authorized the Department of
Transportation to solicit proposals and enter into agreements for the
construction and lease of no more than 2 toll road projects, and
specified the terms and requirements applicable to those projects.
Existing law provides that the toll roads constructed under these
provisions shall be owned by the state, but leased to a private
entity for up to 35 years under the agreement.
   This bill, with respect to the agreement entered into by the
department under these provisions for State Highway Route 125 in San
Diego County, would allow tolls to be collected for that project for
a period of up to 45 years, rather than 35 years, under specified
terms and conditions. The bill would also authorize the San Diego
Association of Governments (SANDAG) to continue the collection of
tolls thereafter subject to a 2/3 vote of the SANDAG board, with
excess toll revenues to be used for various projects that improve the
operation of the SR 125 corridor.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 143.1 is added to the Streets and Highways
Code, to read:
   143.1.  (a) Notwithstanding any other provision of law, the
demonstration toll road project known as State Highway Route 125 (SR
125) in the County of San Diego, authorized pursuant to authority
granted to the department by Chapter 107 of the Statutes of 1989, as
subsequently amended by Chapter 1115 of the Statutes of 1990 and
Chapter 688 of the Statutes of 2002, shall be subject to tolls for a
period of up to 45 years under the following additional terms and
conditions:
   (1) If agreed to by the private entity and the department, and
subject to concurrence by the San Diego Association of Governments
(SANDAG), the County of San Diego, the City of San Diego, and the
City of Chula Vista, by January 2010, all of whom shall exercise
their good faith efforts to reach that agreement and concurrence, the
SR 125 franchise agreement shall be amended to provide for a lease
period of up to 45 years, which shall be reflected in the SR 125
Development Franchise Agreement, dated January 30, 1991, as amended.
If an amendment to extend the lease period is agreed to by the
parties, the tolls collected during any extension period shall be
used for one or more of the following purposes, as specified in the
amendment to the agreement:
   (A) By the private entity to reimburse it for project costs
incurred on behalf of the department or SANDAG.
   (B) By the private entity to compensate or reimburse it for
project costs or other impacts for which it is entitled to
compensation pursuant to the development franchise agreement or other
agreements in effect as of June 30, 2006, with or between the
private entity and SANDAG concerning SR 125.
   (C) By the private entity to reimburse the department or SANDAG
for project costs permitted under the development franchise agreement
in effect as of June 30, 2006.
   (D) By the private entity for one or more of the following
purposes: the private entity's capital outlay costs for the project;
the costs associated with operations, toll collection, and
administration of the facility; reimbursement of the state for the
costs of maintenance and police services; or a reasonable return on
investment to the private entity.
   (E) The development franchise agreement or any amendment thereto
shall require that any excess toll revenue either be applied to
repayment of the indebtedness incurred by the private entity with
respect to the project, or payment into the State Highway Account for
the benefit of the San Diego region, or both.
   (2) If an amendment to the SR 125 Development Franchise Agreement
is not executed by January 31, 2010, or if an amendment to the
agreement is executed by January 31, 2010, that extends the lease
period for less than 10 additional years, the department and SANDAG
may agree, subject to concurrence by the County of San Diego, the
City of San Diego, and the City of Chula Vista, to operate and
maintain the toll road for any remaining period of time up to a
maximum of 10 years following expiration of the agreement. Tolls
collected by the department or SANDAG shall be used to reimburse the
department or SANDAG, as applicable, for the SR 125 project costs
permitted under the development franchise agreement in effect as of
June 30, 2006.
   (3) Except as specifically amended consistent with this section,
the SR 125 Development Franchise Agreement shall remain in full force
and effect as set forth therein, and this section shall not be
deemed to modify any rights or obligations of the parties thereto.
   (b) SANDAG may operate the SR 125 facility and continue the
collection of tolls upon the expiration of the SR 125 Development
Franchise Agreement or the up to 10-year period specified in
paragraph (2) of subdivision (a), as applicable, subject to a 2/3
vote of the SANDAG board, pursuant to a plan that specifies the
expenditure of toll revenues for projects within the SR 125 corridor.
The operation and toll collection may be done in cooperation with
the department or solely by SANDAG, with toll revenues to be
available for the costs associated with operations, toll collection,
and administration of the facility, and reimbursement of the state
for the costs of maintenance and police services. Projects eligible
for funding from excess toll revenues shall be limited to projects
that improve the operation of SR 125, including highway and street
projects, truck-only lanes, and transit services and facilities. Any
changes to the plan shall require a 2/3 vote of the SANDAG board.