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
          
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          |Version: January 27, 2016       |Policy Vote: T. & H. 9 - 1      |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 1, 2016    |Consultant: Mark McKenzie       |
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          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  
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          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  
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          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.


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