BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 620 (Roger Hernández) - High-occupancy toll lanes: exemptions from tolls ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: January 27, 2016 |Policy Vote: T. & H. 9 - 1 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 1, 2016 |Consultant: Mark McKenzie | | | | ----------------------------------------------------------------- This bill does not meet the criteria for referral to the Suspense File. Bill Summary: AB 620 would require the Los Angeles County Metropolitan Transportation Authority (MTA) to take additional actions to increase participation in the low-income assistance program associated with high-occupancy toll (HOT) lanes on I-10 and I-110. The bill would also require MTA and the Department of Transportation (Caltrans) to submit a specified report to the Legislature on the low-income assistance program and HOT lane performance by the end of 2018. Fiscal Impact: One-time Caltrans costs of up to $100,000 over two years for administrative duties related to the study. These costs are likely recoverable from toll revenues, subject to a supplementary agreement with MTA. AB 620 (Roger Hernández) Page 1 of ? Background: Existing law authorizes MTA to operate a value-pricing and transit development program involving HOT lanes on I-10 and I-110 in Los Angeles County. HOT lanes allow vehicles that do not meet occupancy requirements for accessing a high-occupancy vehicle (HOV) lane to access those lanes for a fee. Existing law requires MTA to work with affected communities in the respective corridors and provide mitigation measures for low-income commuters, including reduced toll charges and toll credits for transit users. The HOT lane demonstration program, known locally as the ExpressLanes program, was primarily funded by a $210 million federal grant, and the toll lanes were opened in both corridors by February of 2013. MTA indicates that 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. MTA also established a low-income assistance program, which provides qualifying residents with a one-time $25 credit to either offset the transponder deposit or serve as a pre-paid toll deposit when they set up an account. MTA also waives the $1 monthly account maintenance fee for low-income participants. As of May 2016, 10,344 households are enrolled in the low-income assistance program out of over 488,802 Express Lane accounts. Proposed Law: AB 620 would require MTA to take additional steps to increase enrollment and participation in the low-income assistance program, including improving awareness of the program through advertising and working with local community groups and social service agencies to distribute information about the program. MTA would also be required to consider offering greater incentives to encourage participation. The bill would also require MTA and Caltrans to submit a report to the Legislature by December 31, 2018 on the efforts to improve the ExpressLanes program. The report must address MTA's efforts to increase participation in the low-income assistance program, any additional incentives developed to encourage participation in that program, and the overall performance of the HOT lanes in improving congestion in the affected corridors and offsetting the impact to low-income commuters. AB 620 (Roger Hernández) Page 2 of ? Staff Comments: Caltrans estimates costs of up to $100,000 related to the study requirement, depending on the division of responsibilities with MTA. These costs include analysis of the ExpressLanes themselves and associated transportation facilities in those corridors that serve the highways, as well as the impacts of the program on low-income commuters. These costs would likely be recoverable from ExpressLanes toll revenues, which would require a supplemental agreement with MTA. -- END --