Amended in Assembly April 7, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 194


Introduced by Assembly Member Frazier

January 28, 2015


An act to amend Section 149.7 of, and to add Section 149.2 to, the Streets and Highways Code, relating to transportation.

LEGISLATIVE COUNSEL’S DIGEST

AB 194, as amended, Frazier. High-occupancy toll lanes.

Existing law provides that the Department of Transportation has full possession and control of the state highway system. Existing law authorizes the department to construct exclusive or preferential lanes for buses only or for buses and other high-occupancy vehicles.

Existing law authorizes a regional transportation agency, as defined, in cooperation with the department to apply to the California Transportation Commission to develop and operate high-occupancy toll (HOT) lanes, including administration and operation of a value-pricing program and exclusive or preferential lane facilities for public transit, consistent with established standards, requirements, and limitations that apply to specified facilities.begin insert Existing law requires the commission to conduct at least one public hearing in northern California and one in southern California for each eligible application submitted by the regional transportation agency.end insert Existing law limits the number of approved facilities to not more than 4, 2 in northern California and 2 in southern California, and provides that no applications may be approved on or after January 1, 2012.

Thisbegin insert bill would also authorize a regional transportation agency, in cooperation with the department, to apply to the commission to develop other toll facilities, as specified. Theend insert bill would delete the requirement that thebegin delete above-describedend delete facilities be consistent with the established standards, requirements, and limitations that apply to specified facilities and would instead require the commission to establish guidelines for the development and operation of the facilities approved by the commission on or after January 1, 2016, subject to specified minimum requirements. The bill would provide that these provisions do not authorizebegin insert or prohibitend insert the conversion of any existing nontoll or nonuser-fee lanes into tolled or user-fee lanes, except that a high-occupancy vehicle lane may be converted into a high-occupancy toll lane pursuant to its provisions. The bill would authorize a regional transportation agency to issue bonds, refunding bonds, or bond anticipation notes backed by revenues generated from the facilities. The bill would additionally authorize the Santa Clara Valley Transportation Authority to apply to the commission for purposes of the above-described provisions. The bill would remove the limitations on the number of approved facilities and would delete the January 1, 2012, deadline for HOT lane applications.begin insert The bill would delete the requirement that the commission conduct at least one public hearing in northen California and one in southern California for each eligible application and would instead require the commission to conduct at least one public hearing.end insert The bill would provide that each application is subject to the review and approval of the commission and would require a regional transportation agency that applies to the commission to reimburse the commission for all of the commission’s cost and expense incurred in processing the application. Before submitting an application to the commission, the bill would require a regional transportation agency to consult with a local transportation authority whose jurisdiction includes the facility that the regional transportation agency proposes to develop and operate pursuant to the above-described provisions.begin insert The bill would require the regional transportation agency to give a local transportation authority, as specified, the option of entering into agreements, as needed, for project development, engineering, financial studies, and environmental documentation for each construction project or segment, and would authorize the local transportation authority to be the lead agency for those construction projects or segments.end insert

This bill would additionally authorize thebegin delete departmentend deletebegin insert department, in cooperation with a regional transportation agency, as applicable,end insert to apply to the commission to develop and operate HOT lanesbegin insert or other toll facilitiesend insert and associated facilities pursuant to similar provisions.

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

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

P3    1

SECTION 1.  

Section 149.2 is added to the Streets and
2Highways Code
, to read:

3

149.2.  

(a) Thebegin delete departmentend deletebegin insert department, in cooperation with a
4regional transportation agency, as applicable,end insert
may apply to the
5commission to develop and operate high-occupancy tollbegin delete lanes,end delete
6begin insert lanes or other toll facilities,end insert including the administration and
7operation of a value pricing program and exclusive or preferential
8lane facilities for publicbegin delete transit.end deletebegin insert transit or freight.end insert

9(b) Each application for the development and operation of the
10facilities described in subdivision (a) shall be subject to review
11and approval by the commission pursuant to eligibility criteria
12established by the commission. For each eligible application, the
13commission shall conduct at least one publicbegin delete hearing in northern
14California and one in southern California.end delete
begin insert hearing.end insert

15(c) The commission shall establish guidelines for the
16development and operation of facilities described in subdivision
17(a) and approved by the commission pursuant to this section,
18subject to the following minimum requirements:

19(1) The department shall develop and operate the facilities in
20cooperation with regional transportation agencies, as applicable,
21and with the active participation of the Department of the California
22Highway Patrol.

23(2) The department shall be responsible for establishing,
24collecting, and administering tolls.

25(3) The department shall be responsible for paying for the
26maintenance of thebegin delete facilities from net toll revenue.end deletebegin insert facilities.end insert

27(4) The revenue generated from the operation of the facilities
28shall be available to the department for the direct expenses related
29to the maintenance, administration, and operation of the facilities,
30including toll collection and enforcement.

31(5) All remaining revenue generated by the facilities shall be
32used in the corridor from which the revenue was generated pursuant
P4    1to an expenditure plan developed by the department and approved
2by the commission.

3(6) This section shall not prevent any regional transportation
4agency or local agency from constructing facilities that compete
5with the facilities approved by the commission and the department
6shall not be entitled to compensation for the adverse effects on toll
7revenue due to those competing facilities.

8(d) The department shall provide any information or data
9requested by the commission or the Legislative Analyst relating
10to a facility that the department develops or operates pursuant to
11this section. The commission, in cooperation with the Legislative
12 Analyst, shall annually prepare a report on the progress of the
13development and operation of a facility authorized under this
14section. The commission may submit this report as a section in its
15annual report to the Legislature required pursuant to Section 14535
16of the Government Code.

17(e) Nothing in this section shall authorizebegin insert or prohibitend insert the
18conversion of any existing nontoll or nonuser-fee lanes into tolled
19or user-fee lanes, except that a high-occupancy vehicle lane may
20be converted into a high-occupancy toll lane.

21

SEC. 2.  

Section 149.7 of the Streets and Highways Code is
22amended to read:

23

149.7.  

(a) A regional transportation agency, as defined in
24subdivision (h), in cooperation with the department, may apply to
25the commission to develop and operate high-occupancy tollbegin delete lanes,end delete
26begin insert lanes or other toll facilities,end insert including the administration and
27operation of a value pricing program and exclusive or preferential
28lane facilities for publicbegin delete transit.end deletebegin insert transit or freight.end insert

29(b)  Each application for the development and operation of the
30facilities described in subdivision (a) shall be subject to review
31and approval by the commission pursuant to eligibility criteria
32established by the commission. For each eligible application, the
33commission shall conduct at least one publicbegin delete hearing in northern
34California and one in southern California.end delete
begin insert hearing.end insert

35(c) A regional transportation agency that applies to the
36commission to develop and operate facilities described in
37subdivision (a) shall reimburse the commission for all of the
38commission’s costs and expenses incurred in processing the
39application.

P5    1(d) The commission shall establish guidelines for the
2development and operation of facilities described in subdivision
3(a) and approved by the commission on or after January 1, 2016,
4pursuant to this section, subject to the following minimum
5requirements:

6(1) The regional transportation agency shall develop and operate
7the facilities in cooperation with the department, and the active
8participation of the Department of the California Highway Patrol,
9pursuant to an agreement that addresses all matters related to
10design, construction, maintenance, and operation of state highway
11system facilities in connection with the facilities.

12(2) The regional transportation agency shall be responsible for
13establishing, collecting, and administering tolls.

14(3) The regional transportation agency shall be responsible for
15paying for the maintenance of thebegin delete facilities from net toll revenue,end delete
16begin insert facilities,end insert pursuant to an agreement between the department and
17the regional transportation agency.

18(4) The revenue generated from the operation of the facilities
19shall be available to the regional transportation agency for the
20direct expenses related to the maintenance, administration, and
21operation of the facilities, including toll collection and enforcement.

22(5) All remaining revenue generated by the facilities shall be
23used in the corridor from which the revenue was generated pursuant
24to an expenditure plan adopted by the regional transportation
25agency.

26(6) This section shall not prevent the department or any local
27agency from constructing facilities that compete with the facilities
28approved by the commission and the regional transportation agency
29shall not be entitled to compensation for the adverse effects on toll
30revenue due to those competing facilities.

31(e) A regional transportation agency that develops or operates
32a facility, or facilities, described in subdivision (a) shall provide
33any information or data requested by the commission or the
34Legislative Analyst. The commission, in cooperation with the
35Legislative Analyst, shall annually prepare a report on the progress
36of the development and operation of a facility authorized under
37this section. The commission may submit this report as a section
38in its annual report to the Legislature required pursuant to Section
3914535 of the Government Code.

P6    1(f) (1) A regional transportation agency may issue bonds,
2refunding bonds, or bond anticipation notes, at any time, to finance
3construction of, and construction-related expenditures for, facilities
4approved pursuant to this section, and construction and
5construction-related expenditures that are included in the
6expenditure plan adopted pursuant to paragraph (5) of subdivision
7(d), payable solely from the revenues generated from the respective
8facilities.

9(2) Any bond issued pursuant to this subdivision shall contain
10on its face a statement to the following effect:


12“Neither the full faith and credit nor the taxing power of the
13State of California is pledged to the payment of principal of, or
14the interest on, this bond.”


16(g) begin insert(1)end insertbegin insertend insertBefore submitting an application pursuant to subdivision
17(a), a regional transportation agency shall consult with any local
18transportation authority designated pursuant to Division 12.5
19(commencing with Section 131000) or Division 19 (commencing
20with Section 180000) of the Public Utilities Code whose
21jurisdiction includes the facility that the regional transportation
22agency proposes to develop and operate.

begin insert

23(2) A regional transportation agency shall give a local
24transportation authority described in paragraph (1) the option to
25enter into agreements, as needed, for project development,
26engineering, financial studies, and environmental documentation
27for each construction project or segment that is part of the facility.
28The local transportation authority may be the lead agency for
29these construction projects or segments.

end insert

30(h) Notwithstanding Section 143, for purposes of this section,
31“regional transportation agency” means any of the following:

32(1) A transportation planning agency described in Section 29532
33or 29532.1 of the Government Code.

34(2) A county transportation commission established under
35Section 130050, 130050.1, or 130050.2 of the Public Utilities
36Code.

37(3) Any other local or regional transportation entity that is
38designated by statute as a regional transportation agency.

39(4) A joint exercise of powers authority established pursuant to
40Chapter 5 (commencing with Section 6500) of Division 7 of Title
P7    11 of the Government Code, with the consent of a transportation
2planning agency or a county transportation commission for the
3jurisdiction in which the transportation project will be developed.

4(5) The Santa Clara Valley Transportation Authority established
5pursuant to Part 12 (commencing with Section 100000) of Division
610 of the Public Utilities Code.

7(i) Nothing in this section shall authorizebegin insert or prohibitend insert the
8conversion of any existing nontoll or nonuser-fee lanes into tolled
9or user-fee lanes, except that a high-occupancy vehicle lane may
10be converted into a high-occupancy toll lane.



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