California Legislature—2015–16 First Extraordinary Session

Assembly Bill No. 12

Introduced by Assembly Member Nazarian

August 26, 2015

An act to add Section 130243 to the Public Utilities Code, relating to transportation.

LEGISLATIVE COUNSEL’S DIGEST

AB 12, as introduced, Nazarian. Los Angeles County Metropolitan Transportation Authority.

Existing law creates the Los Angeles County Metropolitan Transportation Authority with specified powers and duties relative to transportation planning, programming, and operations in Los Angeles County.

This bill would authorize the Los Angeles County Metropolitan Transportation Authority to enter into agreements with private entities for certain transportation projects in Los Angeles County, including on the state highway system, subject to various terms and requirements. The bill would authorize the authority to impose tolls and user fees for use of those projects. For any project on the state highway system, the bill would require the authority to implement the project in cooperation with the Department of Transportation pursuant to an agreement that addresses specified matters. The bill would provide that a facility constructed by a private entity would at all times be owned by a governmental agency, except as provided. The bill would authorize the authority to issue bonds to finance any costs necessary to implement a project and to finance any expenditures, payable from the revenues generated from the project or other available resources, as specified.

This bill would provide that its provisions are severable.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 130243 is added to the Public Utilities
Code, to read:

130243.  

(a) For purposes of this section, the following terms
have the following meanings:

(1) “Department” means the Department of Transportation.

(2) “LACMTA” means the Los Angeles County Metropolitan
Transportation Authority.

(b) (1) In addition to the other powers it possesses, and
notwithstanding any other law, the LACMTA may do the
following:

(A) Construct, develop, lease, jointly develop, own, operate,
maintain, control, use, jointly use, or dispose of rights-of-way,
high-occupancy toll lanes, rail lines, monorails, buslines, stations,
terminals, tunnels, parking lots, air rights, land rights, development
rights, entrances and exits, and any other facilities together with
any physical structures necessary for, incidental to, or convenient
for, the access of persons and vehicles to those facilities. A facility
constructed pursuant to this section may also include additional
high-occupancy vehicle lanes or the conversion of existing lanes
to high-occupancy vehicle lanes, conversion of existing
high-occupancy vehicle lanes to high-occupancy toll lanes,
additional toll roads, toll lanes, and transit projects.

(B) Acquire, lease, sell, or otherwise contract, with respect to
any interest in, or rights to the use or joint use of, any of the
facilities described in subparagraph (A) for transportation and
transit projects and improvements in the County of Los Angeles,
including on the state highway system in the County of Los
Angeles, subject to compliance with federal law and this section.

(2) The authority granted pursuant to this section is intended to
supplement and be independent of any other authority that the
LACMTA possesses and does not limit, replace, or detract from
that authority.

(c) (1) The LACMTA may solicit proposals for projects, or
projects may be proposed by a private entity to the LACMTA and
selected by the LACMTA, for facilities described in subdivision
(b). The LACMTA may enter into agreements with private entities
for the studying, planning, designing, developing, financing,
construction, maintenance, rebuilding, improvement, repair, or
operation, or any combination thereof, by private entities of
facilities described in subdivision (b). A project may be proposed
and selected individually or as part of a related or larger project.

(2) Except for the criteria described in paragraph (1) and for
applicable provisions related to providing security for construction
and completion of the facility, the LACMTA is not subject to any
other law relating to public contract procurements in the
Government Code, the Public Contract Code, or this code with
respect to facilities described in subdivision (b).

(d) Any construction, alteration, demolition, repairs, or other
works of improvement performed under a contract awarded
pursuant to this section shall be considered a public works project
subject to Chapter 1 (commencing with Section 1720) of Part 7 of
Division 2 of the Labor Code, and shall be enforced by the
Department of Industrial Relations in the same way it carries out
this responsibility under the Labor Code.

(e) For any project pursuant to this section on the state highway
system, the LACMTA shall implement the project in cooperation
with the department pursuant to an agreement that addresses all
matters related to design, construction, maintenance, and operation
of state highway system facilities in connection with the project.
The plans and specifications for a project on the state highway
system developed, maintained, repaired, rehabilitated,
reconstructed, or operated pursuant to this section shall comply
with the department’s standards for state transportation projects.
The LACMTA shall establish appropriate performance measures
for the purpose of ensuring optimal use of the state highway
system. An agreement between the LACMTA and the department
shall identify the respective obligations and liabilities of each party
to the agreement and assign each party responsibilities relating to
the project.

(f) The LACMTA may impose tolls and user fees for use of a
facility constructed pursuant to this section. The toll revenues and
user fees shall be applied to the payment of the capital outlay costs
for the project, the costs associated with operations, toll and user
fee collection, administration of the facility, reimbursement to the
department or other governmental entity for the costs of services
to develop and maintain the project, police services, a reasonable
return on investment and for other purposes allowed under federal
law.

(g) (1) Except as provided in paragraph (2), a facility
constructed by a private entity pursuant to this section shall, at all
times, be owned by a governmental agency.

(2) The LACMTA may elect to provide for ownership of the
facility by a private entity during the term of the agreement with
the private entity for up to 35 years provided that reversion of
ownership of the facility is effective at the end of the term at no
charge to the LACMTA. The LACMTA may continue to charge
fees for use of the facility after the agreement with the private
entity terminates.

(h) The LACMTA may issue bonds, as set forth in Chapter 5
(commencing with Section 130500), at any time to finance any
costs necessary to implement a project established pursuant to this
section and to finance any expenditures, payable from the revenues
generated from the project or other available resources.

(i) A lease to a private entity entered into pursuant to this section
is deemed to be public property for a public purpose and exempt
from leasehold, real property, and ad valorem taxation, except for
the use, if any, of that property for ancillary commercial purposes.

(j) The provisions of this section are severable. If any provision
of this section or its application is held invalid, that invalidity shall
not affect other provisions or applications that can be given effect
without the invalid provision or application.