BILL ANALYSIS                                                                                                                                                                                                    



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 194 (Frazier) - High-occupancy toll lanes
          
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          |Version: August 31, 2015        |Policy Vote: T. & H. 10 - 0     |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 27, 2015   |Consultant: Mark McKenzie       |
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          *********** ANALYSIS ADDENDUM - SUSPENSE FILE ***********
             The following information is revised to reflect amendments 
                     adopted by the committee on August 27, 2015


          Bill  
          Summary:  AB 194 would authorize the Department of  
          Transportation (Caltrans) and regional transportation agencies  
          to apply to the California Transportation Commission (CTC) to  
          develop and operate high-occupancy toll (HOT) lanes or other  
          toll facilities, as specified.


          Fiscal  
          Impact:  
           CTC costs of approximately $200,000 per application for due  
            diligence reviews and approvals of project proposals.  Costs  
            to review proposals submitted by regional transportation  
            agencies will be reimbursed by the applicant, but CTC would  
            need additional resources for each proposal submitted by  
            Caltrans. (State Highway Account)

           Unknown costs to Caltrans and regional transportation agencies  







          AB 194 (Frazier)                                       Page 1 of  
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            to develop and operate HOT lanes.  The bill authorizes  
            Caltrans and regional transportation agencies to retain up to  
            three percent of toll revenues for administrative expenses  
            related to the operation of the facilities.

           Unknown toll revenue gains for Caltrans and regional  
            transportation agencies related to the operation of HOT lanes  
            and other toll facilities.  For illustrative purposes, HOT  
            lanes administered by MTA generate approximately $17 million  
            annually.  Excess revenues must be used within the corridor  
            from which it was generated.


          Author  
          Amendments:  
           Consolidate the separate statutory provisions that apply to  
            Caltrans and regional transportation agencies into a single  
            general statutory authorization to develop and operate toll  
            facilities.
           Delete a requirement that a proposed facility has received  
            environmental clearance and instead require that a project  
            initiation document has been completed for the proposed toll  
            facility.
           Delete an explicit requirement that the CTC establish  
            guidelines for the development and operation of toll  
            facilities.
           Require a regional transportation agency sponsoring a toll  
            facility to enter into an agreement with Caltrans that  
            addresses all matters related to design, construction, and  
            maintenance, and operation of the toll facility, as specified,  
            rather than developing and operating the facilities in  
            cooperation with Caltrans and participation of the California  
            Highway Patrol.
           Make a regional transportation agency sponsoring a toll  
            facility responsible for reimbursing Caltrans for its costs  
            related to the toll facility, as specified.
           Authorize a sponsoring agency to provide discounts and  
            premiums for the use of the toll facility.
           Specify that toll revenues are available for debt service  
            related to the toll facility, development, repair,  
            rehabilitation, improvement, reconstruction, and reserves, in  
            addition to other specified uses in the current bill.
           Require an expenditure plan for a facility sponsored by a  
            regional transportation agency to be reviewed and approved by  








          AB 194 (Frazier)                                       Page 2 of  
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            the agency's governing board.  If Caltrans is the sponsoring  
            agency, the expenditure plan must be reviewed and approved by  
            the CTC.
           Add clarifying language to the provisions related to bonds  
            issued for purposes of funding toll facilities.
           Establish the Highway Toll Account in the State Transportation  
            Fund for the management of funds received by Caltrans for toll  
            facilities operated by the department, and specify that funds  
            in the account that are necessary for payment of debt service  
            on toll facilities are continuously appropriated for that  
            purpose.  
           Make other clarifying and conforming changes. 




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