BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1175
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          ASSEMBLY THIRD READING
          AB 1175 (Torlakson)
          As Amended  June 1, 2009
          Majority vote 

           TRANSPORTATION      9-2         APPROPRIATIONS      12-5        
           
           ------------------------------------------------------------------ 
          |Ayes:|Eng, Blumenfield,         |Ayes:|De Leon, Ammiano, Charles  |
          |     |Hayashi, Furutani,        |     |Calderon, Davis, Fuentes,  |
          |     |Galgiani, Bonnie          |     |Hall, John A. Perez,       |
          |     |Lowenthal,                |     |Price, Skinner, Solorio,   |
          |     |John A. Perez, Solorio,   |     |Torlakson, Krekorian       |
          |     |Torlakson                 |     |                           |
          |     |                          |     |                           |
          |-----+--------------------------+-----+---------------------------|
          |Nays:|Miller, Niello            |Nays:|Nielsen, Duvall, Harkey,   |
          |     |                          |     |Miller,                    |
          |     |                          |     |Audra Strickland           |
          |     |                          |     |                           |
           ------------------------------------------------------------------ 
           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; and, 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 BATA and appropriates the savings to  








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             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.  

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

           9) Continuously appropriates to the California Department of  
             Transportation (Caltrans) money paid to Caltrans 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  








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             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  
             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  :  According to the Assembly Appropriations  
          Committee:

          1)Potential unknown loss of state special fund revenue from  
            transferring all cost overrun saving in the TBSRP.

           2) One-time costs of $950 million to retrofit the Antioch and  
             Dumbarton bridges, respectively, to be fully covered by a  
             future bridge toll increase to be imposed by BATA.  

           3) Potentially significant one-time costs for BATA to reimburse  
             county elections officials in the region for the incremental  








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             cost of conducting a regional measure asking voter approval  
             to fund transportation improvements.  These costs would be  
             covered by bridge toll revenues.

           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  
          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  








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          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, would authorize  
          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 passed out of the Assembly Appropriations Committee and  
          will be sent to the Assembly Floor.  

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


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