BILL ANALYSIS Ó AB 2250 Page 1 Date of Hearing: May 7, 2014 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair AB 2250 (Daly) - As Amended: April 24, 2014 Policy Committee: TransportationVote:15-0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill requires Caltrans, when entering into a cooperative agreement with a local agency for a managed lane on the state highway system-a high-occupancy vehicle lane (HOV), a high-occupancy toll lane (HOT), and/or an express toll lane-to ensure that all resulting toll revenues remain available for expenditure within the corridor where the managed lane is located. FISCAL EFFECT No direct state fiscal impact. The allocation of revenues in any future cooperative agreements will be specified in the agreement, and keeping expenditures within the corridors is consistent with previous authorizations and agreements. COMMENTS 1) Background . Last year, the Governor directed the California State Transportation Agency (CalSTA) to convene a workgroup of state and local transportation stakeholders to refine the transportation infrastructure needs assessment; explore long-term, pay-as-you-go funding options, and evaluate the most appropriate level of government to deliver high-priority investments to meet the state's infrastructure needs. In February, CalSTA released its vision and interim recommendations in a report entitled California Transportation Infrastructure Priorities: Vision and Interim Recommendations. Discussions with stakeholders during development of this AB 2250 Page 2 report raised concerns that regional transportation agencies may be called upon by the Administration to contribute funding for the state's underfunded highway maintenance program using, in part, revenue generated from managed lanes. (The projected funding available for the preservation of state highway infrastructure is estimated at $1.8 billion annually, while the need is estimated at about $7 billion annually.) 2)Purpose . Current law does not provide specific additional authority to develop HOT lanes. However, as the Administration is currently looking to develop a broader managed lane program, the author intends this bill to ensure the state's managed lane policies and practices strike an appropriate balance between the roles of Caltrans and local agencies, including the need to ensure revenue generated by managed lanes stays in the transportation corridor from which it was generated. This policy is consistent with the Legislature's previous specific HOT lane authorizations. Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081