Amended in Assembly June 1, 2015

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. 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. 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.

This 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. The bill would delete the requirement that the 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 authorize or prohibit 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. 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. 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’sbegin delete costend deletebegin insert costsend insert andbegin delete expenseend deletebegin insert expensesend insert incurred in processing the application. Before submitting an application to the commission, the bill would require a regional transportation agency to consult withbegin delete aend deletebegin insert everyend insert local transportationbegin delete authorityend deletebegin insert authority, or every congestion management agency,end insert whose jurisdiction includes the facility that the regional transportation agency proposes to develop and operate pursuant to the above-described provisions. The bill would require the regional transportation agency to give a local transportation authoritybegin insert or congestion management agencyend insert, 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 authoritybegin insert or congestion management agencyend insert to be the lead agency for those construction projects or segments.

This bill would additionally authorize the department, in cooperation with a regional transportation agency, as applicable, to apply to the commission to develop and operate HOT lanes or other toll facilities 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    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertThe Legislature finds and declares that
2high-occupancy toll lanes, express lanes, and toll roads provide
3an opportunity to more effectively manage state highways in order
4to increase passenger throughput and to reduce delays for freight
5shipments and travelers, especially those traveling by carpool,
6vanpool, or bus.end insert

7

begin deleteSECTION 1.end delete
8begin insertSEC. 2.end insert  

Section 149.2 is added to the Streets and Highways
9Code
, to read:

10

149.2.  

(a) The department, in cooperation with a regional
11transportation agency, as applicable, may apply to the commission
12to develop and operate high-occupancy toll lanes or other toll
13facilities, including the administration and operation of a value
14pricing program and exclusive or preferential lane facilities for
15public transit or freight.

16(b) Each application for the development and operation of the
17facilities described in subdivision (a) shall be subject to review
18and approval by the commission pursuant to eligibility criteria
19established by the commission. For each eligible application, the
20commission shall conduct at least one public hearing.

21(c) The commission shall establish guidelines for the
22development and operation of facilities described in subdivision
23(a) and approved by the commission pursuant to this section,
24subject to the following minimum requirements:

25(1) The department shall develop and operate the facilities in
26cooperation with regional transportation agencies, as applicable,
27and with the active participation of the Department of the California
28Highway Patrol.

29(2) The department shall be responsible for establishing,
30collecting, and administering tolls.

P4    1(3) The department shall be responsible for paying for the
2maintenance of the facilities.

3(4) The revenue generated from the operation of the facilities
4shall be available to the department for the direct expenses related
5to the maintenance, administration, and operation of the facilities,
6including toll collection and enforcement.

7(5) All remaining revenue generated by the facilities shall be
8used in the corridor from which the revenue was generated pursuant
9to an expenditure plan developed by the department and approved
10by the commission.

11(6) This section shall not prevent any regional transportation
12agency or local agency from constructing facilities that compete
13with the facilities approved by the commission and the department
14shall not be entitled to compensation for the adverse effects on toll
15revenue due to those competing facilities.

16(d) The department shall provide any information or data
17requested by the commission or the Legislative Analyst relating
18to a facility that the department develops or operates pursuant to
19this section. The commission, in cooperation with the Legislative
20 Analyst, shall annually prepare a report on the progress of the
21development and operation of a facility authorized under this
22section. The commission may submit this report as a section in its
23annual report to the Legislature required pursuant to Section 14535
24of the Government Code.

25(e) Nothing in this section shall authorize or prohibit the
26conversion of any existing nontoll or nonuser-fee lanes into tolled
27or user-fee lanes, except that a high-occupancy vehicle lane may
28be converted into a high-occupancy toll lane.

29

begin deleteSEC. 2.end delete
30begin insertSEC. 3.end insert  

Section 149.7 of the Streets and Highways Code is
31amended to read:

32

149.7.  

(a) A regional transportation agency, as defined in
33subdivision (h), in cooperation with the department, may apply to
34the commission to develop and operate high-occupancy toll lanes
35or other toll facilities, including the administration and operation
36of a value pricing program and exclusive or preferential lane
37facilities for public transit or freight.

38(b)  Each application for the development and operation of the
39facilities described in subdivision (a) shall be subject to review
40and approval by the commission pursuant to eligibility criteria
P5    1established by the commission. For each eligible application, the
2commission shall conduct at least one public hearing.

3(c) A regional transportation agency that applies to the
4commission to develop and operate facilities described in
5subdivision (a) shall reimburse the commission for all of the
6commission’s costs and expenses incurred in processing the
7application.

8(d) The commission shall establish guidelines for the
9development and operation of facilities described in subdivision
10(a) and approved by the commission on or after January 1, 2016,
11pursuant to this section, subject to the following minimum
12requirements:

13(1) The regional transportation agency shall develop and operate
14the facilities in cooperation with the department, and the active
15participation of the Department of the California Highway Patrol,
16pursuant to an agreement that addresses all matters related to
17design, construction, maintenance, and operation of state highway
18system facilities in connection with the facilities.

19(2) The regional transportation agency shall be responsible for
20establishing, collecting, and administering tolls.

21(3) The regional transportation agency shall be responsible for
22paying for the maintenance of the facilities, pursuant to an
23agreement between the department and the regional transportation
24agency.

25(4) The revenue generated from the operation of the facilities
26shall be available to the regional transportation agency for the
27direct expenses related to the maintenance, administration, and
28operation of the facilities, including toll collection and enforcement.

29(5) All remaining revenue generated by the facilities shall be
30used in the corridor from which the revenue was generated pursuant
31to an expenditure plan adopted by the regional transportation
32agency.

33(6) This section shall not prevent the department or any local
34agency from constructing facilities that compete with the facilities
35approved by the commission and the regional transportation agency
36shall not be entitled to compensation for the adverse effects on toll
37revenue due to those competing facilities.

38(e) A regional transportation agency that develops or operates
39a facility, or facilities, described in subdivision (a) shall provide
40any information or data requested by the commission or the
P6    1Legislative Analyst. The commission, in cooperation with the
2Legislative Analyst, shall annually prepare a report on the progress
3of the development and operation of a facility authorized under
4this section. The commission may submit this report as a section
5in its annual report to the Legislature required pursuant to Section
614535 of the Government Code.

7(f) (1) A regional transportation agency may issue bonds,
8refunding bonds, or bond anticipation notes, at any time, to finance
9construction of, and construction-related expenditures for, facilities
10approved pursuant to this section, and construction and
11construction-related expenditures that are included in the
12expenditure plan adopted pursuant to paragraph (5) of subdivision
13(d), payablebegin delete solelyend delete from the revenues generated from the respective
14facilities.

15(2) begin deleteAny bond end deletebegin insertA bond, refunding bond, or bond anticipation
16note end insert
issued pursuant to this subdivision shall contain on its face a
17statement to the following effect:


19“Neither the full faith and credit nor the taxing power of the
20State of California is pledged to the payment of principal of, or
21the interest on, thisbegin delete bond.”end deletebegin insert instrument.end insertbegin insertend insert


23(g) (1) Before submitting an application pursuant to subdivision
24(a), a regional transportation agency shall consult withbegin delete anyend deletebegin insert everyend insert
25 local transportation authority designated pursuant to Division 12.5
26(commencing with Section 131000) or Division 19 (commencing
27with Section 180000) of the Public Utilitiesbegin delete Codeend deletebegin insert Code, or every
28congestion management agency,end insert
whose jurisdiction includes the
29facility that the regional transportation agency proposes to develop
30and operate.

31(2) A regional transportation agency shall give a local
32transportation authoritybegin insert or congestion management agencyend insert
33 described in paragraph (1) the option to enter into agreements, as
34needed, for project development, engineering, financial studies,
35and environmental documentation for each construction project
36or segment that is part of the facility. The local transportation
37authoritybegin insert or congestion management agencyend insert may be the lead
38agency for these construction projects or segments.

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

P7    1(1) A transportation planning agency described in Section 29532
2or 29532.1 of the Government Code.

3(2) A county transportation commission established under
4Section 130050, 130050.1, or 130050.2 of the Public Utilities
5Code.

6(3) Any other local or regional transportation entity that is
7designated by statute as a regional transportation agency.

8(4) A joint exercise of powers authority established pursuant to
9Chapter 5 (commencing with Section 6500) of Division 7 of Title
101 of the Government Code, with the consent of a transportation
11planning agency or a county transportation commission for the
12jurisdiction in which the transportation project will be developed.

13(5) The Santa Clara Valley Transportation Authority established
14pursuant to Part 12 (commencing with Section 100000) of Division
1510 of the Public Utilities Code.

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



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