Amended in Senate August 31, 2015

Amended in Senate July 2, 2015

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

(Coauthor: Senator Beall)

January 28, 2015


An act to amend Section 149.7 of, and to add Sectionbegin delete 149.2end deletebegin insert 149.12end insert to, the Streets and Highways Code, relating tobegin delete transportation.end deletebegin insert transportation, and making an appropriation end insertbegin inserttherefor.end insert

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 wouldbegin delete alsoend delete authorize a regional transportationbegin delete agency, in cooperation withend deletebegin insert agency orend insert thebegin delete department,end deletebegin insert departmentend insert to apply to the commission to developbegin insert HOT lanes andend insert other toll facilities, asbegin delete specified.end deletebegin insert specified, and would delete the January 1, 2012, deadline for HOT lane applications and remove the existing limitation on the number of facilities that may be approvedend insertbegin insert. The bill would include the Santa Clara Valley Transportation Authority within the definition of regional transportation authority for these purposes.end insert 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 begin inserteligibility criteria set forth in end insertguidelines for the development and operation of the facilities approved by the commission on or after January 1, 2016, subject to specified minimum requirements.begin delete 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.end deletebegin insert The bill would provide for the review and approval by the commission of each proposed toll facility pursuant to those eligibility criteria.end insert The bill would authorize a regional transportation agencybegin insert or the state, as applicable,end insert to issue bonds, refunding bonds, or bond anticipation notes backed by revenues generated from the facilities.begin delete 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.end delete The bill would delete the requirement that the commission conduct at least one public hearing inbegin delete northenend deletebegin insert northernend insert California and one in southern California for each eligible application and would instead require the commission to conduct at least one public hearing at or near the proposedbegin insert tollend insert facility.begin delete The bill would provide that each application is subject to the review and approval of the commission pursuant to eligibility criteria developed by the commission subject to certain minimum requirements.end delete The bill would require a regional transportation agency that applies to the commission to reimburse the commission for all of the commission’s costs and expenses incurred in processing thebegin delete application.end deletebegin insert application and to enter into specified agreements with the departmentend insertbegin insert.end insert Before submitting an application to the commission, the bill would require a regional transportation agency to consult with every local transportation authority,begin delete orend deletebegin insert andend insert every congestion management agency, 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 authority or congestion management agency, 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 or congestion management agency to be the lead agency for those construction projects or segments.begin insert 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 HOT lane pursuant to its provisions.end insert

This bill wouldbegin delete 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.end deletebegin insert create the Highway Toll Account in the State Transportation Fund for the management of funds received by the Department of Transportation for toll facilities operated by the department under the bill. The bill would continuously appropriate to the department the portion of revenues designated and necessary for the payment of debt service for those facilitiesend insertbegin insert.end insert

Vote: majority. Appropriation: begin deleteno end deletebegin insertyesend insert. Fiscal committee: yes. State-mandated local program: no.

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

P3    1

SECTION 1.  

The Legislature finds and declares all of the
2following:

3(a) The development, improvement, expansion, and maintenance
4of an efficient, safe, and well-maintained system of roads,
5highways, and other transportation facilities is essential to the
P4    1economic well-being and high quality of life of the people of this
2state.

3(b) High-occupancy toll lanes, express lanes, and toll roads
4provide an opportunity to more effectively manage state highways
5in order to increase passenger throughput and to reduce delays for
6freight shipments and travelers, especially those traveling by
7carpool, vanpool, or bus.

8(c) Highway tolling should be employed for the purpose of
9optimizing the performance of the transportation system on a
10transportation corridor and should not be employed strictly as a
11revenue generating facility.

begin delete
12

SEC. 2.  

Section 149.2 is added to the Streets and Highways
13Code
, to read:

14

149.2.  

(a) The department, in cooperation with a regional
15transportation agency, as applicable, may apply to the commission
16to develop and operate high-occupancy toll lanes or other toll
17facilities, including the administration and operation of a value
18pricing program and exclusive or preferential lane facilities for
19public transit or freight.

20(b) Each application for the development and operation of the
21facilities described in subdivision (a) shall be subject to review
22and approval by the commission pursuant to eligibility criteria
23established by the commission. For each eligible application, the
24commission shall conduct at least one public hearing at or near
25the proposed facility for the purpose of receiving public comment.

26(c) The eligibility criteria established by the commission
27pursuant to subdivision (b) shall include, at a minimum, all of the
28following:

29(1) A demonstration that the proposed facility will improve the
30corridor’s performance by, for example, increasing passenger
31throughput or reducing delays for freight shipments and travelers,
32especially those traveling by carpool, vanpool, and transit.

33(2) A requirement that the proposed facility is contained in the
34constrained portion of a conforming regional transportation plan
35prepared pursuant to Section 65080 of the Government Code.

36(3) Evidence of cooperation between the department and the
37regional transportation agency whose jurisdiction includes the
38corridor within which the facility is proposed.

39(4) A discussion of how the proposed facility meets the
40requirements of this section.

P5    1(5) A requirement that the proposed facility has received
2environmental clearance.

3(d) The commission shall establish guidelines for the
4development and operation of facilities described in subdivision
5(a) and approved by the commission pursuant to this section,
6subject to the following minimum requirements:

7(1) The department shall develop and operate the facilities in
8cooperation with regional transportation agencies, as applicable,
9and with the active participation of the Department of the California
10Highway Patrol.

11(2) The department shall be responsible for establishing,
12collecting, and administering tolls.

13(3) The department shall be responsible for paying for the
14maintenance of the facilities.

15(4) The revenue generated from the operation of the facilities
16shall be available to the department for the direct expenses related
17to the maintenance, administration, and operation of the facilities,
18including toll collection and enforcement. The department’s
19administrative expenses related to the operation of the facilities
20shall not exceed 3 percent of the revenues.

21(5) All remaining revenue generated by the facilities shall be
22used in the corridor from which the revenue was generated pursuant
23to an expenditure plan developed by the department and approved
24by the commission.

25(6) This section shall not prevent any regional transportation
26agency or local agency from constructing facilities that compete
27with the facilities approved by the commission and the department
28shall not be entitled to compensation for the adverse effects on toll
29revenue due to those competing facilities.

30(e) For any project under this section involving the conversion
31of an existing high-occupancy vehicle lane to a high-occupancy
32toll lane, the department shall demonstrate that the project will, at
33a minimum, result in expanded efficiency of the corridor in terms
34of travel time reliability, passenger throughput, or other efficiency
35benefit.

36(f) The department shall provide any information or data
37requested by the commission or the Legislative Analyst relating
38to a facility that the department develops or operates pursuant to
39this section. The commission, in cooperation with the Legislative
40 Analyst, shall annually prepare a report on the progress of the
P6    1development and operation of a facility authorized under this
2section. The commission may submit this report as a section in its
3annual report to the Legislature required pursuant to Section 14535
4of the Government Code.

5(g) The department may require any vehicle accessing a toll
6facility authorized under this section to have an electronic toll
7collection transponder or other electronic device for enforcement
8or tolling purposes.

9(h) For purposes of this section, “regional transportation agency”
10has the same meaning as defined in Section 149.7.

11(i) Nothing in this section shall authorize or prohibit the
12conversion of any existing nontoll or nonuser-fee lanes into tolled
13or user-fee lanes, except that a high-occupancy vehicle lane may
14be converted into a high-occupancy toll lane.

end delete
15

begin deleteSEC. 3.end delete
16begin insertSEC. 2.end insert  

Section 149.7 of the Streets and Highways Code is
17amended to read:

18

149.7.  

(a) begin deleteA end deletebegin insertNotwithstanding Sections 149 and 30800, aend insert
19 regional transportation agency, as defined in subdivisionbegin delete (j), in
20cooperation withend delete
begin insert (k), orend insert the department, may apply to the
21commission to develop and operate high-occupancy toll lanes or
22other toll facilities, including the administration and operation of
23a value pricing program and exclusive or preferential lane facilities
24for public transit or freight.

25(b)  Each application for the development and operation of the
26begin insert tollend insert facilities described in subdivision (a) shall be subject to review
27and approval by the commission pursuant to eligibility criteriabegin insert set
28forth in guidelinesend insert
established by the commission.begin delete For each eligibleend delete
29begin insert Prior to approving anend insert application, the commission shall conduct
30at least one public hearing at or near the proposedbegin insert tollend insert facility for
31the purpose of receiving public comment.begin insert Upon approval of an
32application, the regional transportation agency or the department
33may develop and operate the toll facility proposed in the
34application.end insert

35(c) The eligibility criteriabegin insert set forth in the guidelinesend insert established
36by the commission pursuant to subdivision (b) shall include, at a
37minimum, all of the following:

38(1) A demonstration that the proposed begin inserttoll end insertfacility will improve
39the corridor’s performance by, for example, increasing passenger
P7    1throughput or reducing delays for freight shipments and travelers,
2especially those traveling by carpool, vanpool, and transit.

3(2) A requirement that the proposed begin inserttoll end insertfacility is contained in
4the begin deletemost recent five-yearend deletebegin insert constrained portion of a conformingend insert
5 regional transportationbegin delete improvement program submitted to the
6commission pursuant to Section 65082 of the Government Code
7or the most recent five-year interregional transportation
8improvement program pursuant to Section 14526end delete
begin insert plan prepared
9pursuant to Section 65080 end insert
of the Government Code.

10(3) Evidence of cooperation between thebegin delete applicantend deletebegin insert applicableend insert
11 regional transportation agency and the department.

12(4) A discussion of how the proposed begin inserttoll end insertfacility meets the
13requirements of this section.

14(5) A requirement thatbegin delete the proposed facility has received
15environmental clearance.end delete
begin insert a project initiation document has been
16completed for the proposed tollend insert
begin insert facility.end insert

17(d) A regional transportation agency that applies to the
18commission to develop and operatebegin insert tollend insert facilitiesbegin delete described in
19subdivision (a)end delete
begin insert pursuant to this sectionend insert shall reimburse the
20commission for all of the commission’s costs and expenses incurred
21in processing the application.

22(e) begin deleteThe commission shall establish guidelines for the
23development and operation of end delete
begin insertTollend insert facilitiesbegin delete described in
24subdivision (a) andend delete
approved by the commission on or after January
251, 2016, pursuant to this section,begin insert shall beend insert subject to the following
26minimum requirements:

begin delete

27(1) The regional transportation agency shall develop and operate
28the facilities in cooperation with the department, and the active
29participation of the Department of the California Highway Patrol,
30pursuant to an agreement that addresses all matters related to
31design, construction, maintenance, and operation of state highway
32system facilities in connection with the facilities.

end delete
begin insert

33(1) A regional transportation agency sponsoring a toll facility
34shall enter into an agreement with the department that addresses
35all matters related to design, construction, maintenance, and
36operation of the toll facility, including, but not limited to, liability,
37financing, repair, rehabilitation, and reconstruction.

end insert
begin insert

38(2) A regional transportation agency sponsoring a toll facility
39shall be responsible for reimbursing the department for the
P8    1department’s costs related to the toll facility pursuant to an
2agreement between the agency and the department.

end insert
begin delete

3(2)

end delete

4begin insert(3)end insert Thebegin delete regional transportationend deletebegin insert sponsoringend insert agency shall be
5responsible for establishing, collecting, and administeringbegin delete tolls.end delete
6begin insert tolls, and may include discounts and premiums for the use of the
7tollend insert
begin insert facility.end insert

begin delete

8(3) The regional transportation agency shall be responsible for
9paying for the maintenance of the facilities, pursuant to an
10agreement between the department and the regional transportation
11agency.

end delete

12(4) The revenue generated from the operation of thebegin delete facilitiesend delete
13begin insert toll facilityend insert shall be available to thebegin delete regional transportationend delete
14begin insert sponsoringend insert agency for the direct expenses related to the
15begin delete maintenance,end deletebegin insert following:end insert

16begin insert(A)end insertbegin insertend insertbegin insertDebt issued to construct, repair, rehabilitate, or reconstruct
17any portion of the toll facility, payment of debt service, and
18satisfaction of other covenants and obligations related to
19indebtedness of the toll facility.end insert

20begin insert(B)end insertbegin insertend insertbegin insertThe development, maintenance, repair, rehabilitation,
21improvement, reconstruction,end insert
administration, and operation of the
22begin delete facilities,end deletebegin insert end insertbegin inserttollend insertbegin insert facility,end insert including toll collection and enforcement.
23begin delete The regional transportation agency’s administrative expenses
24related to the operation of the facilities shall not exceed 3 percent
25of the revenues.end delete

begin insert

26(C) Reserves for the purposes specified in subparagraphs (A)
27and (B).

end insert

28(5) All remaining revenue generated by thebegin delete facilitiesend deletebegin insert toll facilityend insert
29 shall be used in the corridor from which the revenue was generated
30pursuant to an expenditure planbegin delete adoptedend deletebegin insert developedend insert by thebegin delete regional
31transportation agency.end delete
begin insert sponsoring agency, as follows:end insert

begin delete

32(6) This section shall not prevent the department or any local
33agency from constructing facilities that compete with the facilities
34approved by the commission and the regional transportation agency
35shall not be entitled to compensation for the adverse effects on toll
36revenue due to those competing facilities.

end delete

37begin insert(A)end insertbegin insertend insertbegin insertFor a toll facility sponsored by a regional transportation
38agency, the governing board of the regional transportation agency
39 shall review and approve the expenditure plan and any updates.end insert

begin insert

P9    1(B) For a toll facility sponsored by the department, the
2commission shall review and approve the expenditure plan and
3any updates.

end insert

4begin insert(6)end insertbegin insertend insertbegin insertThe sponsoring agency’s administrative expenses related
5to operation of a toll facility shall not exceed 3 percent of the toll
6revenues.end insert

7(f) For any project under this section involving the conversion
8of an existing high-occupancy vehicle lane to a high-occupancy
9toll lane, thebegin delete regional transportationend deletebegin insert sponsoringend insert agency shall
10demonstrate that the project will, at a minimum, result in expanded
11efficiency of the corridor in terms of travel time reliability,
12passenger throughput, or other efficiency benefit.

begin insert

13(g) This section shall not prevent the construction of facilities
14that compete with a toll facility approved by the commission
15pursuant to this section, and the sponsoring agency shall not be
16entitled to compensation for the adverse effects on toll revenue
17due to those competing facilities.

end insert
begin delete

18(g)

end delete

19begin insert(h)end insert Abegin delete regional transportationend deletebegin insert sponsoringend insert agency that develops
20or operates a begin delete facility, or facilities, described in subdivision (a)end delete begin insert toll
21facility pursuant to this sectionend insert
shall provide any information or
22data requested by the commission or the Legislative Analyst. The
23commission, in cooperation with the Legislative Analyst, shall
24annually prepare a summary report on the progress of the
25development and operation of anybegin insert tollend insert facilities authorizedbegin delete underend delete
26begin insert pursuant toend insert this section. The commission may submit this report
27as a section in its annual report to the Legislature required pursuant
28to Section 14535 of the Government Code.

begin delete

29(h)

end delete

30begin insert(i)end insert (1) A regional transportation agency may issue bonds,
31refunding bonds, or bond anticipation notes, at any time, to finance
32construction of, and construction-related expenditures for,begin delete facilitiesend delete
33begin insert a toll facilityend insert approved pursuant to this section, and construction
34and construction-related expenditures that are included in the
35expenditure plan adopted pursuant to paragraph (5) of subdivision
36(e), payable from the revenues generated from thebegin delete respective
37facilities.end delete
begin insert toll facility. The bonds, refunding bonds, and bond
38anticipation notes shall bear such interest rates and other features
39and terms as the regional transportation agency shall approve
P10   1and may be sold by the regional transportation agency at public
2or private sale.end insert

3(2) A bond, refunding bond, or bond anticipation note issued
4pursuant to this subdivision shall contain on its face a statement
5to the following effect:


7“Neither the full faith and credit nor the taxing power of the
8State of California is pledged to the payment of principal of, or
9the interest on, this instrument.”


begin insert

11(3) Bonds, refunding bonds, and bond anticipation notes issued
12pursuant to this subdivision are legal investments for all trust
13funds, the funds of all insurance companies, banks, trust
14companies, executors, administrators, trustees, and other
15fiduciaries.

end insert
begin insert

16(4) Interest earned on any bonds, refunding bonds, and bond
17anticipation notes issued pursuant to this subdivision shall at all
18times be free from state personal income tax and corporate income
19tax.

end insert
begin insert

20(5) (A) For a toll facility operated by the department, the
21California Infrastructure and Economic Development Bank or the
22Treasurer may issue bonds, refunding bonds, or bond anticipation
23notes, at any time, to finance development, construction, or
24reconstruction of, and construction-related expenditures for, a toll
25facility approved pursuant to this section, and construction and
26construction-related expenditures that are included in the
27expenditure plan adopted pursuant to paragraph (5) of subdivision
28(e), payable solely from the toll revenue and ancillary revenues
29generated from the toll facility.

end insert
begin insert

30(B) This subdivision shall be deemed to provide all necessary
31state law authority for purposes of Section 63024.5 of the
32Government Code.

end insert
begin delete

33(i)

end delete

34begin insert(j)end insert (1) Before submitting an application pursuant to subdivision
35(a), a regional transportation agency shall consult with every local
36transportation authority designated pursuant to Division 12.5
37(commencing with Section 131000) or Division 19 (commencing
38with Section 180000) of the Public Utilities Code,begin delete orend deletebegin insert andend insert every
39congestion management agency, whose jurisdiction includes the
P11   1begin insert tollend insert facility that the regional transportation agency proposes to
2develop and operate.

3(2) A regional transportation agency shall give a local
4transportation authority or congestion management agency
5 described in paragraph (1) the option to enter into agreements, as
6needed, for project development, engineering, financial studies,
7and environmental documentation for each construction project
8or segment that is part of thebegin insert tollend insert facility. The local transportation
9authority or congestion management agency may be the lead
10agency for these construction projects or segments.

begin delete

11(j)

end delete

12begin insert(k)end insert Notwithstanding Section 143, for purposes of this section,
13“regional transportation agency” means any of the following:

14(1) A transportation planning agency described in Section 29532
15or 29532.1 of the Government Code.

16(2) A county transportation commission established under
17Section 130050, 130050.1, or 130050.2 of the Public Utilities
18Code.

19(3) Any other local or regional transportation entity that is
20designated by statute as a regional transportation agency.

21(4) A joint exercise of powers authority established pursuant to
22Chapter 5 (commencing with Section 6500) of Division 7 of Title
231 of the Government Code, with the consent of a transportation
24planning agency or a county transportation commission for the
25jurisdiction in which the transportation project will be developed.

26(5) The Santa Clara Valley Transportation Authority established
27pursuant to Part 12 (commencing with Section 100000) of Division
2810 of the Public Utilities Code.

begin delete

29(k)

end delete

30begin insert(l)end insert A regional transportation agencybegin insert or the departmentend insert may
31require any vehicle accessing a toll facility authorized under this
32section to have an electronic toll collection transponder or other
33electronic device for enforcement or tolling purposes.

begin delete

34(l)

end delete

35begin insert(m)end insert Nothing in this section shall authorize or prohibit the
36conversion of any existing nontoll or nonuser-fee lanes into tolled
37or user-fee lanes, except that a high-occupancy vehicle lane may
38be converted into a high-occupancy toll lane.

begin delete

39(m)

end delete

P12   1begin insert(n)end insert Nothing in this section shall apply to, modify, limit, or
2otherwise restrict the authority of any joint powers authority
3described in Section 66484.3 of the Government Code to establish
4or collect tolls, or otherwise operate any toll facility or modify or
5expand a toll facility.

6begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 149.12 is added to the end insertbegin insertStreets and Highways
7Code
end insert
begin insert, to read:end insert

begin insert
8

begin insert149.12.end insert  

The Highway Toll Account is hereby created in the
9State Transportation Fund for the management of funds received
10by the department for toll facilities authorized pursuant to Section
11149.7 and operated by the department. Notwithstanding Section
1213340 of the Government Code, moneys in the Highway Toll
13Account designated and necessary for the payment of any debt
14service associated with a toll facility project shall be continuously
15appropriated without regard to fiscal year to the department for
16the purposes described in subparagraph (A) of paragraph (4) of
17subdivision (e) of Section 149.7. All other moneys deposited in the
18Highway Toll Account that are derived from premium and accrued
19interest on bonds sold pursuant to Section 149.7 shall be reserved
20in the account and shall be available for expenditure, upon
21appropriation by the Legislature, as specified in subdivision (e)
22of Section 149.7. Pursuant to Chapter 4 (commencing with Section
2316720) of Part 3 of Division 4 of Title 2 of the Government Code,
24the cost of bond issuance shall be paid out of the bond proceeds,
25including premium, if any.

end insert


O

    95