BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1175
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          Date of Hearing:   April 20, 2009

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                                   Mike Eng, Chair
                  AB 1175 (Torlakson) - As Amended:  April 14, 2009
           
          SUBJECT  : Metropolitan Transportation Commission:  Bay Area Toll  
          Authority

           SUMMARY  :  Makes the Antioch and Dumbarton Bridges part of the  
          Toll Bridge Seismic Retrofit Program (TBSRP); authorizes the Bay  
          Area Toll Authority (BATA) to submit regional measures to voters  
          for toll increases to fund improvements in toll bridge  
          corridors;  makes other, related changes to existing provisions  
          related to high-occupancy vehicle (HOV) lanes, toll bridge  
          maintenance, and operations.  Specifically,  this bill  :  

          1)Directs the State Controller to collect unpaid bridge tolls,  
            high-occupancy toll (HOT) lane fees, and any relevant  
            interest, penalties, fines, or other charges from money owed a  
            person or entity from state income tax refunds or winnings in  
            the California State Lottery; prescribes procedures to follow  
            for these collections.  
            
          2)States legislative findings and declarations that the Antioch  
            and Dumbarton Bridges are in need of seismic safety retrofit.   


          3)Makes these two bridges part of the TBSRP.  

          4)Transfers any cost overrun savings in the TBSRP to the Bay  
            Area Toll Account, under the Bay Area Toll Authority (BATA)  
            and appropriates the savings to BATA for expenditure on the  
            Antioch and Dumbarton Bridges.  

          5)Prescribes that BATA is responsible for providing all other  
            funds required to complete the seismic safety retrofit  
            projects on these bridges.  

          6)Authorizes BATA to increase the amount of tolls collected on  
            the seven state-owned San Francisco Bay Area toll bridges.  

          7)Applies provisions governing the Toll Bridge Program Oversight  
            Committee (TBPOC) to the seismic retrofit of the Antioch and  
            Dumbarton Bridges.  








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          8)Coordinates bridge maintenance, operation, and bond repayment  
            expenses.  

          9)Continuously appropriates to the California Department of  
            Transportation (Caltrans) money paid to the department by BATA  
            for planning, design, construction, operation, maintenance,  
            repair, replacement, rehabilitation, and seismic retrofit of  
            state-owned toll bridges pursuant to TBSRP.  

          10)Eliminates the three-year time constraint for use of $20  
            million in Regional Measure (RM) 2 funds for TransLink, the  
            Bay Area's smart card for transit.  

          11)Grants BATA the authority to increase toll rates and provides  
            that the toll structures may vary from bridge to bridge and  
            may include discounts for carpools and electronic toll  
            collection (i.e., FastTrak).  

          12)Dictates that Caltrans must follow BATA's lead in the Bay  
            Area with regard to establishing HOV occupancy levels,  
            discounts, and HOV access criteria.  

          13)Authorizes BATA to increase tolls following voter approval of  
            additional regional measures.  

          14)Prescribes the election procedures to be followed relative to  
            additional regional measures.  

          15)Allows BATA to contribute to the Metropolitan Transportation  
            Commission (MTC), without limitations, in the form of  
            personnel services, office space, and funding; allows BATA to  
            contribute on a reimbursement-for-cost basis, under certain  
            conditions.  

           EXISTING LAW  : 

          16)Makes it illegal to evade payment of tolls or other charges  
            on any vehicle crossing or toll road.  

          17)Provides a financing plan to fund the TBSRP (for a total of  
            $8.685 billion); identifies the sources and amounts of  
            funding, including the authority to increase the seismic  
            retrofit surcharge on state-owned toll bridges in the Bay  
            Area, provides for a timeline of contributions, and  








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            establishes numerous other financial and programmatic  
            requirements to complete TBSRP.  

          18)Creates the TBPOC, consisting of the Director of Caltrans,  
            the Executive Director of the California Transportation  
            Commission (CTC), and the Executive Director of MTC; vests  
            TBPOC with project oversight responsibilities for the TBSRP.  

          19)Specifically authorizes BATA to increase the toll rates  
            specified in the adopted toll schedule only if this is  
            necessary in order to enable the authority to meet its  
            obligations under any bond resolution or indenture.  

          20)Authorizes Caltrans and local authorities, with respect to  
            highways under the respective jurisdictions, to permit  
            preferential use of highway lanes for HOVs, under specific  
            conditions.  

           FISCAL EFFECT  :  Unknown.  BATA raises approximately $112 million  
          annually from tolls on the Bay Area toll bridges.  

           COMMENTS  :  

           Toll Bridge Seismic Retrofit Program  :  According to MTC, "The  
          Antioch Bridge (built in 1978), and the Dumbarton Bridge (built  
          in 1982) need seismic strengthening.  Because these bridges met  
          seismic standards established after the 1971 Sylmar earthquake  
          in Southern California, and were relatively new when the state  
          Toll Bridge Seismic Retrofit Program originally was established,  
          neither was included in the first round of investigations.   
          However, due to findings from subsequent quakes-including Loma  
          Prieta in 1989, Northridge in 1994 and Kobe (Japan) in  
          1995-seismic standards now are much higher. A two-year  
          evaluation conducted by BATA and Caltrans completed in December  
          2008 shows both bridges need significant strengthening to  
          protect public safety.  

          "The cost of retrofitting both bridges is estimated at $950  
          million.  This includes $637 million for the Dumbarton Bridge  
          and $313 million for the Antioch Bridge.  Over 40% of this total  
          cost estimate is to fund a contingency account so that  
          unexpected construction problems that may arise during the  
          four-year process will not affect the funding plans."  

          This bill will allow BATA to raise tolls on all seven Bay Area  








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          bridges to cover the cost to retrofit these two bridges.  

           Toll Evasion  :  According to MTC, in 2007, toll evasions cost  
          BATA about $7 million.  That amount has been reduced to about  
          $1.5 million, due to a comprehensive collection program but toll  
          evasion still remains a problem.  

           Future Regional Measures  :  MTC has had two regional measures to  
          date:  Regional Measure (RM1) in 1998 raised tolls to a uniform  
          $1 and RM 2 in 2004 raised tolls by an additional $1.  These two  
          measures were approved by voters to fund additional  
          transportation improvements in toll bridge corridors.  

          Current law requires MTC to obtain legislative authority to  
          submit a regional measures to Bay Area voters before it can  
          raise tolls.  This bill provides MTC with streamlined authority  
          to submit regional measures to voters and requires that future  
          regional measures include infrastructure projects, acquisition  
          of transit vehicles, transit operating assistance, and other  
          improvements to reduce congestion and to improve travel on Bay  
          Area bridges and related transportation corridors.  

           HOV Lanes  :  MTC is proposing creation of a region-wide, value  
          pricing HOV network.  Because of this, it needs to ensure that  
          the Bay Area bridges are consistent with Bay Area freeways  
          relative to HOV usage so that, together, the region will be  
          served with a unified network.  

           Continuous Appropriation  :  A continuous appropriation will allow  
          MTC to continue TBSRP work in the event of a budget impasse,  
          which otherwise impedes the use of collected tolls until a  
          budget is resolved.  

           Related Legislation  :  AB 744 (Torrico) of 2009, authorizes BATA  
          to acquire, construct,
          administer, and operate a value pricing HOV network program on  
          state highways within the geographic jurisdiction of MTC, as  
          specified; authorizes capital expenditures for this program to  
          be funded from program revenues, revenue bonds, and revenue  
          derived from tolls on state-owned toll bridges within the  
          geographic jurisdiction of the commission; authorizes the use of  
          the HOV lanes in the program by single-occupant vehicles for a  
          fee, as specified.

          AB 744 is scheduled to be heard in Assembly Transportation  








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          Committee on April 27, 2009.  
           
           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Metropolitan Transportation Commission (MTC)

           Opposition 
           
          None on file
           

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