BILL NUMBER: AB 194 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 31, 2015
AMENDED IN SENATE JULY 2, 2015
AMENDED IN ASSEMBLY JUNE 1, 2015
AMENDED IN ASSEMBLY APRIL 7, 2015
INTRODUCED BY Assembly Member Frazier
(Coauthor: Senator Beall)
JANUARY 28, 2015
An act to amend Section 149.7 of, and to add Section
149.2 149.12 to, the Streets and Highways Code,
relating to transportation. transportation,
and making an appropriation therefor.
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
agency or the department, department
to apply to the commission to develop HOT lanes and
other toll facilities, as specified.
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 approved . The bill would include
the Santa Clara Valley Transportation Authority within the definition
of regional transportation authority for these purposes. 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 eligibility criteria set
forth in 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 provide for the review and approval by
the commission of each proposed toll facility pursuant to those
eligibility criteria. The bill would authorize a regional
transportation agency or the state, as applicable, 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 northern
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 proposed toll
facility. 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. 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 the application. application
and to enter into specified agreements with the department
. Before submitting an application to the commission, the bill
would require a regional transportation agency to consult with every
local transportation authority, or and
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. 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.
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. 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 facilities .
Vote: majority. Appropriation: no yes
. Fiscal committee: yes. State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) The development, improvement, expansion, and maintenance of an
efficient, safe, and well-maintained system of roads, highways, and
other transportation facilities is essential to the economic
well-being and high quality of life of the people of this state.
(b) High-occupancy toll lanes, express lanes, and toll roads
provide an opportunity to more effectively manage state highways in
order to increase passenger throughput and to reduce delays for
freight shipments and travelers, especially those traveling by
carpool, vanpool, or bus.
(c) Highway tolling should be employed for the purpose of
optimizing the performance of the transportation system on a
transportation corridor and should not be employed strictly as a
revenue generating facility.
SEC. 2. Section 149.2 is added to the Streets
and Highways Code, to read:
149.2. (a) The department, in cooperation with a regional
transportation agency, as applicable, may apply to the commission to
develop and operate high-occupancy toll lanes or other toll
facilities, including the administration and operation of a value
pricing program and exclusive or preferential lane facilities for
public transit or freight.
(b) Each application for the development and operation of the
facilities described in subdivision (a) shall be subject to review
and approval by the commission pursuant to eligibility criteria
established by the commission. For each eligible application, the
commission shall conduct at least one public hearing at or near the
proposed facility for the purpose of receiving public comment.
(c) The eligibility criteria established by the commission
pursuant to subdivision (b) shall include, at a minimum, all of the
following:
(1) A demonstration that the proposed facility will improve the
corridor's performance by, for example, increasing passenger
throughput or reducing delays for freight shipments and travelers,
especially those traveling by carpool, vanpool, and transit.
(2) A requirement that the proposed facility is contained in the
constrained portion of a conforming regional transportation plan
prepared pursuant to Section 65080 of the Government Code.
(3) Evidence of cooperation between the department and the
regional transportation agency whose jurisdiction includes the
corridor within which the facility is proposed.
(4) A discussion of how the proposed facility meets the
requirements of this section.
(5) A requirement that the proposed facility has received
environmental clearance.
(d) The commission shall establish guidelines for the development
and operation of facilities described in subdivision (a) and approved
by the commission pursuant to this section, subject to the following
minimum requirements:
(1) The department shall develop and operate the facilities in
cooperation with regional transportation agencies, as applicable, and
with the active participation of the Department of the California
Highway Patrol.
(2) The department shall be responsible for establishing,
collecting, and administering tolls.
(3) The department shall be responsible for paying for the
maintenance of the facilities.
(4) The revenue generated from the operation of the facilities
shall be available to the department for the direct expenses related
to the maintenance, administration, and operation of the facilities,
including toll collection and enforcement. The department's
administrative expenses related to the operation of the facilities
shall not exceed 3 percent of the revenues.
(5) All remaining revenue generated by the facilities shall be
used in the corridor from which the revenue was generated pursuant to
an expenditure plan developed by the department and approved by the
commission.
(6) This section shall not prevent any regional transportation
agency or local agency from constructing facilities that compete with
the facilities approved by the commission and the department shall
not be entitled to compensation for the adverse effects on toll
revenue due to those competing facilities.
(e) For any project under this section involving the conversion of
an existing high-occupancy vehicle lane to a high-occupancy toll
lane, the department shall demonstrate that the project will, at a
minimum, result in expanded efficiency of the corridor in terms of
travel time reliability, passenger throughput, or other efficiency
benefit.
(f) The department shall provide any information or data requested
by the commission or the Legislative Analyst relating to a facility
that the department develops or operates pursuant to this section.
The commission, in cooperation with the Legislative Analyst, shall
annually prepare a report on the progress of the development and
operation of a facility authorized under this section. The commission
may submit this report as a section in its annual report to the
Legislature required pursuant to Section 14535 of the Government
Code.
(g) The department may require any vehicle accessing a toll
facility authorized under this section to have an electronic toll
collection transponder or other electronic device for enforcement or
tolling purposes.
(h) For purposes of this section, "regional transportation agency"
has the same meaning as defined in Section 149.7.
(i) Nothing in this section shall 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.
SEC. 3. SEC. 2. Section 149.7 of the
Streets and Highways Code is amended to read:
149.7. (a) A Notwithstanding Sections 149
and 30800, a regional transportation agency, as defined in
subdivision (j), in cooperation with (k), or
the department, may apply to the commission to develop and
operate high-occupancy toll lanes or other toll facilities, including
the administration and operation of a value pricing program and
exclusive or preferential lane facilities for public transit or
freight.
(b) Each application for the development and operation of the
toll facilities described in subdivision (a) shall be
subject to review and approval by the commission pursuant to
eligibility criteria set forth in guidelines established
by the commission. For each eligible Prior to
approving an application, the commission shall conduct at
least one public hearing at or near the proposed toll
facility for the purpose of receiving public comment. Upon
approval of an application, the regional transportation agency or the
department may develop and operate the toll facility proposed in the
application.
(c) The eligibility criteria set forth in the guidelines
established by the commission pursuant to subdivision (b) shall
include, at a minimum, all of the following:
(1) A demonstration that the proposed toll facility
will improve the corridor's performance by, for example, increasing
passenger throughput or reducing delays for freight shipments and
travelers, especially those traveling by carpool, vanpool, and
transit.
(2) A requirement that the proposed toll facility is
contained in the most recent five-year
constrained portion of a conforming regional transportation
improvement program submitted to the commission pursuant to
Section 65082 of the Government Code or the most recent five-year
interregional transportation improvement program pursuant to Section
14526 plan prepared pursuant to Section 65080 of
the Government Code.
(3) Evidence of cooperation between the applicant
applicable regional transportation agency and
the department.
(4) A discussion of how the proposed toll facility
meets the requirements of this section.
(5) A requirement that the proposed facility has received
environmental clearance. a project initiation
document has been completed for the proposed toll
facility.
(d) A regional transportation agency that applies to the
commission to develop and operate toll facilities
described in subdivision (a) pursuant to this section
shall reimburse the commission for all of the commission's
costs and expenses incurred in processing the application.
(e) The commission shall establish guidelines for the
development and operation of Toll facilities
described in subdivision (a) and approved by the
commission on or after January 1, 2016, pursuant to this section,
shall be subject to the following minimum requirements:
(1) The regional transportation agency shall develop and operate
the facilities in cooperation with the department, and the active
participation of the Department of the California Highway Patrol,
pursuant to an agreement that addresses all matters related to
design, construction, maintenance, and operation of state highway
system facilities in connection with the facilities.
(1) A regional transportation agency sponsoring a toll facility
shall enter into an agreement with the department that addresses all
matters related to design, construction, maintenance, and operation
of the toll facility, including, but not limited to, liability,
financing, repair, rehabilitation, and reconstruction.
(2) A regional transportation agency sponsoring a toll facility
shall be responsible for reimbursing the department for the
department's costs related to the toll facility pursuant to an
agreement between the agency and the department.
(2)
(3) The regional transportation
sponsoring agency shall be responsible for establishing,
collecting, and administering tolls. tolls,
and may include discounts and premiums for the use of the toll
facility.
(3) The regional transportation agency shall be responsible for
paying for the maintenance of the facilities, pursuant to an
agreement between the department and the regional transportation
agency.
(4) The revenue generated from the operation of the
facilities toll facility shall be available to
the regional transportation spo
nsoring agency for the direct expenses related to the
maintenance, following:
(A) Debt issued to construct, repair,
rehabilitate, or reconstruct any portion of the toll facility,
payment of debt service, and satisfaction of other covenants and
obligations related to indebtedness of the toll facility.
(B) The development, maintenance,
repair, rehabilitation, improvement, reconstruction,
administration, and operation of the facilities,
toll facility, including toll
collection and enforcement. The regional transportation
agency's administrative expenses related to the operation of the
facilities shall not exceed 3 percent of the revenues.
(C) Reserves for the purposes specified in subparagraphs (A) and
(B).
(5) All remaining revenue generated by the facilities
toll facility shall be used in the corridor from
which the revenue was generated pursuant to an expenditure plan
adopted developed by the
regional transportation agency. sponsoring agency, as
follows:
(6) This section shall not prevent the department or any local
agency from constructing facilities that compete with the facilities
approved by the commission and the regional transportation agency
shall not be entitled to compensation for the adverse effects on toll
revenue due to those competing facilities.
(A) For a toll facility sponsored by a
regional transportation agency, the governing board of the regional
transportation agency shall review and approve the
expenditure plan and any updates.
(B) For a toll facility sponsored by the department, the
commission shall review and approve the expenditure plan and any
updates.
(6) The sponsoring agency's
administrative expenses related to operation of a toll facility shall
not exceed 3 percent of the toll revenues.
(f) For any project under this section involving the conversion of
an existing high-occupancy vehicle lane to a high-occupancy toll
lane, the regional transportation sponsoring
agency shall demonstrate that the project will, at a minimum,
result in expanded efficiency of the corridor in terms of travel time
reliability, passenger throughput, or other efficiency benefit.
(g) This section shall not prevent the construction of facilities
that compete with a toll facility approved by the commission pursuant
to this section, and the sponsoring agency shall not be entitled to
compensation for the adverse effects on toll revenue due to those
competing facilities.
(g)
(h) A regional transportation
sponsoring agency that develops or operates a
facility, or facilities, described in subdivision (a)
toll facility pursuant to this section shall provide any
information or data requested by the commission or the Legislative
Analyst. The commission, in cooperation with the Legislative Analyst,
shall annually prepare a summary report on the progress of the
development and operation of any toll facilities
authorized under pursuant to this
section. The commission may submit this report as a section in its
annual report to the Legislature required pursuant to Section 14535
of the Government Code.
(h)
(i) (1) A regional transportation agency may issue
bonds, refunding bonds, or bond anticipation notes, at any time, to
finance construction of, and construction-related expenditures for,
facilities a toll facility approved
pursuant to this section, and construction and construction-related
expenditures that are included in the expenditure plan adopted
pursuant to paragraph (5) of subdivision (e), payable from the
revenues generated from the respective facilities.
toll facility. The bonds, refunding bonds, and bond
anticipation notes shall bear such interest rates and other features
and terms as the regional transportation agency shall approve and may
be sold by the regional transportation agency at public or private
sale.
(2) A bond, refunding bond, or bond anticipation note issued
pursuant to this subdivision shall contain on its face a statement to
the following effect:
"Neither the full faith and credit nor the taxing power of the
State of California is pledged to the payment of principal of, or the
interest on, this instrument."
(3) Bonds, refunding bonds, and bond anticipation notes issued
pursuant to this subdivision are legal investments for all trust
funds, the funds of all insurance companies, banks, trust companies,
executors, administrators, trustees, and other fiduciaries.
(4) Interest earned on any bonds, refunding bonds, and bond
anticipation notes issued pursuant to this subdivision shall at all
times be free from state personal income tax and corporate income
tax.
(5) (A) For a toll facility operated by the department, the
California Infrastructure and Economic Development Bank or the
Treasurer may issue bonds, refunding bonds, or bond anticipation
notes, at any time, to finance development, construction, or
reconstruction of, and construction-related expenditures for, a toll
facility approved pursuant to this section, and construction and
construction-related expenditures that are included in the
expenditure plan adopted pursuant to paragraph (5) of subdivision
(e), payable solely from the toll revenue and ancillary revenues
generated from the toll facility.
(B) This subdivision shall be deemed to provide all necessary
state law authority for purposes of Section 63024.5 of the Government
Code.
(i)
(j) (1) Before submitting an application pursuant to
subdivision (a), a regional transportation agency shall consult with
every local transportation authority designated pursuant to Division
12.5 (commencing with Section 131000) or Division 19 (commencing with
Section 180000) of the Public Utilities Code, or
and every congestion management agency, whose jurisdiction
includes the toll facility that the regional
transportation agency proposes to develop and operate.
(2) A regional transportation agency shall give a local
transportation authority or congestion management agency described in
paragraph (1) the option to enter into agreements, as needed, for
project development, engineering, financial studies, and
environmental documentation for each construction project or segment
that is part of the toll facility. The local
transportation authority or congestion management agency may be the
lead agency for these construction projects or segments.
(j)
(k) Notwithstanding Section 143, for purposes of this
section, "regional transportation agency" means any of the following:
(1) A transportation planning agency described in Section 29532 or
29532.1 of the Government Code.
(2) A county transportation commission established under Section
130050, 130050.1, or 130050.2 of the Public Utilities Code.
(3) Any other local or regional transportation entity that is
designated by statute as a regional transportation agency.
(4) A joint exercise of powers authority established pursuant to
Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of
the Government Code, with the consent of a transportation planning
agency or a county transportation commission for the jurisdiction in
which the transportation project will be developed.
(5) The Santa Clara Valley Transportation Authority established
pursuant to Part 12 (commencing with Section 100000) of Division 10
of the Public Utilities Code.
(k)
(l) A regional transportation agency or the
departm ent may require any vehicle accessing a toll
facility authorized under this section to have an electronic toll
collection transponder or other electronic device for enforcement or
tolling purposes.
(l)
(m) Nothing in this section shall 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.
(m)
(n) Nothing in this section shall apply to, modify,
limit, or otherwise restrict the authority of any joint powers
authority described in Section 66484.3 of the Government Code to
establish or collect tolls, or otherwise operate any toll facility or
modify or expand a toll facility.
SE C. 3. Section 149.12 is added to the
Streets and Highways Code , to read:
149.12. The Highway Toll Account is hereby created in the State
Transportation Fund for the management of funds received by the
department for toll facilities authorized pursuant to Section 149.7
and operated by the department. Notwithstanding Section 13340 of the
Government Code, moneys in the Highway Toll Account designated and
necessary for the payment of any debt service associated with a toll
facility project shall be continuously appropriated without regard to
fiscal year to the department for the purposes described in
subparagraph (A) of paragraph (4) of subdivision (e) of Section
149.7. All other moneys deposited in the Highway Toll Account that
are derived from premium and accrued interest on bonds sold pursuant
to Section 149.7 shall be reserved in the account and shall be
available for expenditure, upon appropriation by the Legislature, as
specified in subdivision (e) of Section 149.7. Pursuant to Chapter 4
(commencing with Section 16720) of Part 3 of Division 4 of Title 2 of
the Government Code, the cost of bond issuance shall be paid out of
the bond proceeds, including premium, if any.