BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1175
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 1175 (Torlakson)
          As Amended  August 19, 2009
          Majority vote
           
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          |ASSEMBLY:  |49-29|(June 3, 2009)  |SENATE: |30-5 |(September 3,  |
          |           |     |                |        |     |2009)          |
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           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.  








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          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.  









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          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:








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          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.  









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          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 


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