BILL ANALYSIS AB 1175 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1175 (Torlakson) As Amended August 19, 2009 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |49-29|(June 3, 2009) |SENATE: |30-5 |(September 3, | | | | | | |2009) | ----------------------------------------------------------------- Original Committee Reference: TRANS . SUMMARY : Makes the Antioch and Dumbarton Bridges part of the Toll Bridge Seismic Retrofit Program (TBSRP); and, makes related changes to existing provisions related to high-occupancy vehicle (HOV) lanes, toll bridge maintenance, and operations. The Senate amendments : 1)Strike provisions that would have allowed Bay Area Toll Authority (BATA) to submit regional measures to voters for toll increase to fund improvements in the toll bridge corridors. 2)Strike provisions that would have allowed BATA to provide discounts for vehicles that use electronic toll collection devices to pay tolls. 3)Require BATA to provide a cash-based opportunity for customers to pay tolls that does not require the customer to provide a name or address. 4)Require BATA to contract with a nationally recognized independent entity to review privacy issues related to the agency's electronic toll collection system and to report back to the Legislature by January 31, 2011. 5)Repeal provisions of existing law that authorize BATA to reduce the seismic toll surcharge to encourage the use of electronic toll payments. EXISTING LAW : 6)Makes it illegal to evade payment of tolls or other charges on any vehicle crossing or toll road. AB 1175 Page 2 7)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. 8)Creates the Toll Bridge Program Oversight Committee (TBPOC), consisting of the Director of the Department of Transportation (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. 9)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. 10)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. AS PASSED BY THE ASSEMBLY , this bill: 11)Directed 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; prescribed procedures to follow for these collections. 12)Stated legislative findings and declarations that the Antioch and Dumbarton Bridges are in need of seismic safety retrofit. 13)Made these two bridges part of the TBSRP. 14)Transferred any cost overrun savings in the TBSRP to the Bay Area Toll Account, under BATA and appropriates the savings to BATA for expenditure on the Antioch and Dumbarton Bridges. AB 1175 Page 3 15)Prescribed that BATA is responsible for providing all other funds required to complete the seismic safety retrofit projects on these bridges. 16)Authorized BATA to increase the amount of tolls collected on the seven state-owned San Francisco Bay Area toll bridges. 17)Applied provisions governing the TBPOC to the seismic retrofit of the Antioch and Dumbarton Bridges. 18)Coordinated bridge maintenance, operation, and bond repayment expenses. 19)Continuously appropriated to 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. 20)Eliminated 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. 21)Granted 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). 22)Dictated that Caltrans must follow BATA's lead in the Bay Area with regard to establishing HOV occupancy levels, discounts, and HOV access criteria. 23)Authorized BATA to increase tolls following voter approval of additional regional measures. 24)Prescribed the election procedures to be followed relative to additional regional measures. 25)Allowed 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. FISCAL EFFECT : According to the Senate Appropriations Committee: AB 1175 Page 4 1)Potential unknown loss of revenue, potentially in the tens of millions, from transferring all savings in the TBSRP in 2013-14. 2)One-time costs of $950 million to retrofit the Antioch and Dumbarton bridges, to be fully covered by a future bridge toll increase to be imposed by BATA. 3)Annual costs of up to $700,000 annually for continue participation in the oversight committee, beginning in 2013-14. 4)Potential minor costs associated with reporting mandate. 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 administratively 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. AB 1175 Page 5 Future Regional Measures: MTC has had two regional measures to date: Regional Measure 1 (RM 1) 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. 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 is being held in Senate Appropriations Committee. Analysis Prepared by : Janet Dawson / TRANS. / (916) 319-2093 FN: 0002630