BILL ANALYSIS Ó
AB 620
Page 1
ASSEMBLY THIRD READING
AB
620 (Roger Hernández)
As Amended January 5, 2016
Majority vote
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|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Transportation |9-3 |Frazier, Campos, Chu, |Baker, Kim, |
| | |Daly, Dodd, Eduardo |Melendez |
| | |Garcia, Linder, | |
| | |Medina, O'Donnell | |
| | | | |
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SUMMARY: Expands the low-income assistance program associated
with the Los Angeles County Metropolitan Transportation
Authority's (Metro's) value-pricing and transit development
program (ExpressLanes Program). Specifically, this bill:
1)Expands the requirement that Metro work with low-income
commuters in communities affected by the ExpressLanes Program
in the Interstate 10 (I-10) and Interstate 110 (I-110)
corridors to require that mitigation measures (such as reduced
toll charges and toll credits for transit users) be extended
also to low-income transit users.
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2)Provides that these mitigation measures apply to low-income
commuters and transit users that do not otherwise meet the
criteria for a hardship exemption, as described below.
3)Requires Metro, until January 1, 2022, to exempt commuters
from ExpressLanes toll charges if they meet the eligibility
requirements for any one of the following public assistance
programs:
a) California Work Opportunity and Responsibility to Kids
Act (CalWORKS Program);
b) State Supplementary Program for Aged, Blind and
Disabled;
c) County Aid Relief to Indigents;
d) CalFresh (a.k.a. Food Stamp Program);
e) Food Assistance Program for Legal Immigrants; or
f) Cash Assistance Program for Aged, Blind, and Disabled
Legal Immigrants.
4)Authorizes Metro to discontinue issuing hardship exemptions if
it determines at a public hearing that issuing additional
exemptions will "significantly jeopardize" the amount of toll
revenues necessary to operate and maintain the ExpressLanes
Program.
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5)Requires Metro to report to the Legislature by January 31,
2019, the number of hardship exemptions that were provided
during the period between January 1, 2017, and December 31,
2018, and specifically how many were provided to commuters
residing in the San Gabriel Valley.
FISCAL EFFECT: Unknown. This bill is keyed non-fiscal by the
Legislative Counsel.
COMMENTS: SB 1422 (Ridley-Thomas), Chapter 547, Statutes of
2008, authorized Metro, until January 15, 2013, to develop and
operate a value-pricing and transit development demonstration
program involving high-occupancy toll lanes, referred to as
ExpressLanes. The program was primarily funded with a $210
million congestion reduction demonstration grant from the United
States Department of Transportation. Tolling began in November
2012 on the I-110 and in February 2013 on the I-10. AB 1224
(Eng), Chapter 441, Statutes of 2010, extended the sunset and
reporting dates for the ExpressLanes Program from January 2013
to January 2015, and SB 1298 (Hernandez), Chapter 531, Statutes
of 2013, recast the program and extended it indefinitely.
The author introduced this bill because he is concerned about
the impact that the ExpressLanes program is having on
constituents in his district, particularly low-income
constituents. He has voiced concerns that the ExpressLanes
Program was supposed to improve commutes for all users in the
corridor, not just the toll-paying ones. He asserts that these
improvements have not, however, materialized and that lanes
adjacent to the tolled lanes experience longer periods of
congestion now than they did prior to the start of the
ExpressLanes Program. Consequently, commuters that can afford
to pay the tolls enjoy shorter commutes at the expense of
non-paying commuters (including his low-income constituents) for
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whom travel times have worsened.
The author also believes Metro's low-income assistance program
is underperforming, as demonstrated by low enrollment rates in
the program and the fact that there are only two facilities in
all of Los Angeles County where applicants can take proof of
eligibility to participate in the low-income assistance program
(in addition to being able to mail the information in).
Generally, concerns for the economic impact that toll facilities
could have on low-income commuters are well founded, considering
that economic studies show that the biggest burden on family
incomes is the cost of housing and transportation. For example,
a report by Smart Growth America found that transportation is
the second largest expense for American households, costing more
than food, clothing, and health care. Furthermore, it has been
documented that the working poor spend a fraction of what other
workers spend on commuting expenses, but those costs amounted to
a significantly higher proportion of their income.
To participate in Metro's low-income assistance program, an
individual must be a Los Angeles County resident with an annual
household income at or below two times the federal poverty level
(e.g., $40,180 for a three-person household). Applications for
the program can be submitted by mail or at one of two walk-in
centers. Qualifying residents receive a $25 credit when they
set up an account, which can be applied to either the
transponder deposit or pre-paid toll deposit. The monthly
account maintenance fee is waived. To date, 8,877 households
are enrolled in the low-income assistance program out of over
450,000 Express Lane accounts.
This bill requires Metro to modify its low-income assistance
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program by: 1) expanding it to require mitigation measures for
low-income transit users as well as low-income commuters; and 2)
requiring Metro to offer, for five years, toll-free passage to
commuters that are eligible for specific public assistance
programs. This bill tries to mitigate the financial impact that
hardship exemptions could create by granting Metro the authority
to opt-out of the hardship exemption requirement upon a finding
that granting the hardships would jeopardize the ExpressLanes
operation. Hardship exemptions up to that point would still be
valid until 2022.
According to Metro, its low-income assistance program is the
first in the nation to address equity concerns on toll lane
projects and has been, by many accounts generally successful.
Metro claims that it has relied heavily on independent
consultants and extensive outreach with affected communities to
design and improve the program to ensure it reflects community
concerns and meets the needs of low-income commuters. Metro
reports that, to date, the ExpressLanes Program has invested
over $150 million in transit-related improvements along the
I-110 and I-10 corridors, including a new transit center in El
Monte, 59 new buses for transit providers and safety
improvements to the Harbor Transitway.
Metro is opposing AB 620. Metro's chairman of the Board of
Directors, Mr. Mark Ridley-Thomas writes in opposition, "As the
original author [of the legislation authorizing the ExpressLanes
Program], I appreciate and share Assemblymember Hernández'
interest in ensuring that the Program benefits low-income
commuters. At the time that my bill was being developed, I
insisted that Metro address this issue in a comprehensive and
thoughtful manner, requiring an Equity Plan, and that the agency
work directly with affected communities to address their
concerns. In response, Metro implemented a robust outreach
effort that has included over 700 meetings and briefings." Mr.
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Ridley-Thomas also argues that the overwhelming and consistent
priority voiced by low-income commuters in the ExpressLane
corridors has been for toll revenues to be invested in transit
services and that exemptions from the tolls were not a priority
for these commuters.
Assembly Transportation Committee concerns: The committee has
some concerns with the bill:
1)This bill will increase congestion in the tolled lanes.
Consequently, Metro may have to increase toll rates to manage
the increased congestion.
2)This bill does not define "low-income" other than for purposes
of providing hardship exemptions. It is not clear, then, who
would be eligible for the other mitigation measures required
by the bill.
3)Clear statements of desired, measurable performance outcomes
should be included in this bill.
4)Last year, the Legislature passed and the Governor signed AB
194 (Frazier), Chapter 687, Statues of 2015, which grants
broad authority to the California Department of Transportation
(Caltrans) and to regional transportation authorities to
develop and operate toll facilities, upon approval of the
California Transportation Commission. A major tenet of AB 194
is local control for locally-sponsored toll facilities, in
acknowledgement that community-specific needs should influence
how toll facilities are developed and operated and how any
excess revenues are spent. Generally, the emphasis on local
control of locally sponsored facilities should be maintained,
consistent with the spirit of AB 194. [Regarding this bill,
however, the author argues that, because the ExpressLanes
Program (including requirements for the low-income assistance
program) were specifically authorized in statute, it is
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appropriate that the Legislature remain involved in refining
this specific program.]
Analysis Prepared by:
Janet Dawson / TRANS. / (916) 319-2093 FN: 0002548