BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                 UNFINISHED BUSINESS


          Bill No:  SB 1298
          Author:   Hernandez (D)
          Amended:  8/19/14
          Vote:     21


           SENATE TRANSPORTATION & HOUSING COMMITTEE  :  11-0, 4/29/14
          AYES:  DeSaulnier, Gaines, Beall, Cannella, Galgiani, Hueso,  
            Lara, Liu, Pavley, Roth, Wyland

           SENATE APPROPRIATIONS COMMITTEE  :  7-0, 5/23/14
          AYES:  De León, Walters, Gaines, Hill, Lara, Padilla, Steinberg

           SENATE FLOOR  :  31-0, 5/27/14
          AYES:  Anderson, Beall, Block, Corbett, Correa, De León,  
            DeSaulnier, Evans, Fuller, Gaines, Galgiani, Hancock,  
            Hernandez, Hill, Hueso, Huff, Knight, Lara, Leno, Lieu,  
            Monning, Morrell, Nielsen, Padilla, Pavley, Roth, Steinberg,  
            Vidak, Walters, Wolk, Wyland
          NO VOTE RECORDED:  Berryhill, Calderon, Cannella, Jackson, Liu,  
            Mitchell, Torres, Wright, Yee

           ASSEMBLY FLOOR  :  70-7, 8/21/14 - See last page for vote


           SUBJECT  :    High-occupancy toll lanes

           SOURCE  :     Los Angeles County Metropolitan Transportation  
          Authority


           DIGEST  :    This bill deletes the January 15, 2015 sunset on the  
          authority for the Los Angeles County Metropolitan Transportation  
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          Authority (LACMTA) to operate high-occupancy toll (HOT) lanes on  
          State Highway Routes (SRs) 10 and 110 in Los Angeles County, and  
          revise and recast those provisions.

           Assembly Amendments  delete the section of the bill which  
          authorized any regional transportation agency to apply to the  
          California Transportation Commission (CTC) to develop and  
          operate HOT lanes; revise and recast, with similar intent as it  
          left the Senate, the portion of the bill related to LACMTA  
          authority to operate HOT lanes on SRs 10 and 110; and explicitly  
          authorize LACMTA to issue bonds related to the program.

           ANALYSIS  :    Until 2012, existing law authorized regional  
          transportation agencies, in cooperation with the Department of  
          Transportation (Caltrans), to apply to the CTC to develop and  
          operate HOT lanes.  An agency operating a HOT lane essentially  
          sells excess capacity in under-subscribed high-occupancy vehicle  
          lanes to single-occupant vehicle drivers by charging a toll.   
          This authority limited CTC to deeming up to four HOT lane  
          projects eligible for construction, two in Northern California  
          and two in Southern California.  The CTC was also required to  
          hold public hearings on any eligible project.  The original  
          legislation required the Legislature to ultimately approve any  
          HOT lane projects deemed eligible by the CTC; subsequent  
          legislation eliminated the legislative approval requirement, but  
          failed to identify the replacement entity ultimately responsible  
          for approving the project.

          HOT lanes typically employ a pricing method known as value  
          pricing or congestion pricing.  Under this scheme, the amount of  
          the toll varies in accordance with the level of congestion in  
          that particular lane, such that as congestion increases, so too  
          will the toll amount.  As the price to use the lane goes up,  
          fewer people presumably will choose to use it, thereby reducing  
          demand for the facility and maintaining free-flow travel  
          conditions.  With this mechanism, an agency can ensure that  
          operation of the toll facility does not undermine the intended  
          benefits of promoting carpooling with access to the faster  
          high-occupancy vehicle lane.

          In 2008, following an eligibility review by the CTC, the  
          Legislature passed and the Governor signed SB 1422  
          (Ridley-Thomas, Chapter 547), which allowed LACMTA, in  
          cooperation with Caltrans, to operate a value-pricing and  

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          transit development demonstration program.  Under this program,  
          which LACMTA refers to as "ExpressLanes," LACMTA converted the  
          high-occupancy vehicle lanes on portions of SR-10 and SR-110 in  
          Los Angeles County to HOT lanes.

          SB 1422 established the conditions under which LACMTA could  
          implement the program, including the following:

          1.LACMTA could implement the program with Caltrans, and needed  
            Caltrans' consent to establish appropriate performance  
            measures for ensuring optimal use of the HOT lanes.

          2.LACMTA could not change the minimum vehicle occupancy standard  
            for free access to the HOT lane during the demonstration  
            period.

          3.Each proposed HOT lane must have non-tolled alternatives  
            available for public use in the same corridor.

          4.LACMTA could use toll revenues generated from the program for  
            the direct expenses related to the maintenance,  
            administration, and operation, including collection and  
            enforcement, of the demonstration program.  It could spend no  
            more than 3% of toll revenues on administration expenses.

          5.LACMTA must adopt an expenditure plan in which all revenues in  
            excess of those necessary for the implementation of the  
            program are spent in the corridor from which the revenue was  
            generated exclusively for preconstruction, construction, and  
            related costs of HOT facilities and the improvement of transit  
            service in the corridor.

          In addition, SB 1422 required LACMTA to conduct a public  
          outreach plan to solicit input in the development of the  
          demonstration program, and to identify the affected communities  
          and work with those communities to identify impacts and develop  
          measures to mitigate those impacts.

          Under existing law, LACMTA and Caltrans shall, by December 31,  
          2014, provide a report to the Legislature on, among other  
          things, the impact of the program on carpoolers and affected  
          communities, as well as how the program impacted transit service  
          or alternative modes of transportation.  The authority for  
          LACMTA to operate this HOT lane demonstration program expires  

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          January 15, 2015.

          This bill:

          1.Repeals LACMTA's authority to operate a value-pricing and  
            transit development demonstration program on SR 10 and SR 110  
            involving HOT lanes; instead, recasts authority for LACMTA to  
            conduct, administer, and operate the program indefinitely and  
            generally under the same terms and conditions that governed  
            the demonstration program.

          2.Requires agreements between LACMTA, Caltrans, and the  
            California Highway Patrol to provide for reimbursement to the  
            state agencies from toll revenues, or other funding sources  
            that are not otherwise available to state agencies for  
            transportation-related projects, for costs incurred in  
            connection with implementation or operation of the HOT lanes  
            and for maintenance of state highway facilities related to the  
            HOT lanes.

          3.Explicitly authorizes, pursuant to an expenditure plan adopted  
            by LACMTA, all remaining revenue to be used in the corridor in  
            which it was generated for preconstruction, construction, and  
            other related costs of High Occupancy Vehicles facilities,  
            transportation corridor improvements, and improved transit  
            service in the corridor.

          4.Directs LACMTA to continue to work with affected communities  
            to provide mitigation measures for commuters of low income,  
            including reduced toll charges and toll credits for transit  
            users.

          5.Grants LACMTA authority to issue revenue bonds related to the  
            program.

           FISCAL EFFECT :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          According to the Assembly Appropriations Committee, Caltrans  
          indicates that the two HOT lanes have generated nearly $17  
          million in toll revenue in the first 10 months of operation.   
          Under its agreement with LACMTA, Caltrans is reimbursed for its  
          associated operational and maintenance expenditures.


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           SUPPORT  :   (Verified  8/21/14)

          Los Angeles County Metropolitan Transportation Authority  
          (source)
          Avalon Church of Christ
          Bethany Baptist Church of West Los Angeles
          Bible Enrichment Fellowship International Church
          Bryant Temple
          Christ the Good Shepherd Episcopal Church
          Christian's Community Center
          City on the Hill
          Congregational Church of Christian Fellowship
          Divine Deliverance Ministries
          Foothill Transit
          Grace Temple Baptist Church
          Greater True Light M.B.C., Inc.
          Greater Zion Church Family
          HNTB Corporation
          LAX Coastal Chamber of Commerce
          Los Angeles Area Chamber of Commerce
          Los Angeles County Business Federation
          Los Angeles World Airports
          Macedonia Baptist Church
          Mount Moriah Baptist Church of Los Angeles, Inc.
          Mount Zion Missionary Baptist Church
          Music Center
          New Shady Grove Missionary Baptist Church
          Paradise Baptist Church
          Saint Paul Baptist Church
          San Bernardino Associated Governments
          Southern California Association of Governments
          St. Andrews Missionary Baptist Church
          True Friendship Missionary Baptist Church
          True Vine Baptist Church
          Weller Street Missionary Baptist Church


           ASSEMBLY FLOOR  :  70-7, 8/21/14
          AYES:  Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,  
            Dababneh, Dahle, Daly, Dickinson, Donnelly, Fong, Fox,  
            Frazier, Beth Gaines, Garcia, Gomez, Gordon, Gorell, Gray,  
            Grove, Hagman, Hall, Harkey, Holden, Jones, Jones-Sawyer,  

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            Linder, Logue, Lowenthal, Maienschein, Medina, Melendez,  
            Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson,  
            Perea, John A. Pérez, Quirk, Quirk-Silva, Rendon,  
            Ridley-Thomas, Rodriguez, Salas, Stone, Ting, Wagner, Waldron,  
            Wieckowski, Wilk, Williams, Yamada, Atkins
          NOES:  Gatto, Gonzalez, Roger Hernández, Levine, Mansoor,  
            Skinner, Weber
          NO VOTE RECORDED:  Eggman, V. Manuel Pérez, Vacancy


          JA:e  8/21/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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