BILL NUMBER: AB 194 AMENDED
BILL TEXT
AMENDED IN SENATE SEPTEMBER 4, 2015
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 149.12 to,
the Streets and Highways Code, relating to 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 authorize a regional transportation agency or the
department to apply to the commission to develop HOT lanes and other
toll facilities, as 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 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 delete the requirement
that the commission conduct at least one public hearing in 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 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 and to
enter into specified agreements with the department.
department and the Department of the California
Highway Patrol. Before submitting an application to the
commission, the bill would require a regional transportation agency
to consult with every local transportation authority,
authority and every congestion management
agency, 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 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.
This bill would become operative only if AB 914 is enacted and
takes effect on or before January 1, 2016.
Vote: majority. Appropriation: 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 149.7 of the Streets and Highways Code is amended
to read:
149.7. (a) Notwithstanding Sections 149 and 30800, a regional
transportation agency, as defined in subdivision (k), or the
department, 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. 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 constrained portion of a conforming regional transportation plan
prepared pursuant to Section 65080 of the Government Code.
(3) Evidence of cooperation between the 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 a project initiation document has been
completed for the proposed toll facility.
(6) A demonstration that a complete funding plan has been
prepared.
(d) A regional transportation agency that applies to the
commission to develop and operate toll facilities pursuant to this
section shall reimburse the commission for all of the commission's
costs and expenses incurred in processing the application.
(e) Toll facilities approved by the commission on or after January
1, 2016, pursuant to this section, shall be subject to the following
minimum requirements:
(1) A regional transportation agency sponsoring a toll facility
shall enter into an agreement with the Department of the
California Highway Patrol that addresses all law enforcement matters
related to the toll facility and 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 and the Department of the California
Highway Patr ol for their costs related to the toll
facility pursuant to an agreement between the agency and the
department. department and an agreement between the
agency and the Department of the California Highway Patrol.
(3) The sponsoring agency shall be responsible for establishing,
collecting, and administering tolls, and may include discounts and
premiums for the use of the toll facility.
(4) The revenue generated from the operation of the toll facility
shall be available to the sponsoring agency for the direct expenses
related to the 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
toll facility, including toll collection and enforcement.
(C) Reserves for the purposes specified in subparagraphs (A) and
(B).
(5) All remaining revenue generated by the toll facility shall be
used in the corridor from which the revenue was generated pursuant to
an expenditure plan developed by the sponsoring agency, as follows:
(A) (i) For a toll facility sponsored by a regional transportation
agency, the regional transportation agency shall develop the
expenditure plan in consultation with the department.
(ii) For a toll facility sponsored by the department, the
department shall develop the expenditure plan in consultation with
the applicable regional transportation agency.
(A)
(B) (i) 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)
(ii) 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 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.
(h) A sponsoring agency that develops or operates 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 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.
(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, 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 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,
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.
(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,
Code and every congestion management agency,
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.
(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.
(l) A regional transportation agency or 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.
(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.
(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, tolls or otherwise
operate any toll facility or modify or expand a toll facility.
SEC. 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
appropriated, without regard to fiscal
year 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.
SEC. 4. This act shall become operative only if
Assembly Bill 914 of the 2015-16 Regular Session is enacted and takes
effect on or before January 1, 2016.