BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1381
                                                                  Page  1

          Date of Hearing:   April 13, 2009

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                                   Mike Eng, Chair
                  AB 1381 (John Perez) - As Amended:  April 15, 2009
           
          SUBJECT  :   High-occupancy toll lanes:  Los Angeles County  
          Metropolitan Transportation Authority

           SUMMARY  :  Makes technical corrections to provisions granting  
          authority to the Los Angeles County Metropolitan Transportation  
          Authority (Metro) to operate a congestion-pricing demonstration  
          project (demonstration project). Specifically,  this bill  :  

          1)Authorizes the congestion-pricing demonstration program on  
            State Route (SR) 10, in addition to SR 110.  

          2)Directs, rather than allows, Metro to work with the Department  
            of the California Highway Patrol (CHP) to implement the  
            demonstration project.  

          3)Requires, rather than allows, development of performance  
            measures for operation of the high-occupancy toll (HOT) lanes  
            without adverse impacts on other traffic on the state highway  
            system.  

          4)Explicitly provides that provisions granting the authority for  
            the demonstration project do not prevent the California  
            Department of Transportation (Caltrans) or any local agency  
            from constructing other facilities in the SR 10 or SR 110  
            corridors that compete with the demonstration program.  

          5)Declares that Metro is not entitled to compensation for  
            adverse impacts on toll revenue in the advent a competing  
            facility is built.  

          EXISTING LAW:  Authorizes Metro, until January 15, 2013, to  
            operate a value-pricing and transit development demonstration  
            program involving HOT lanes.  Specifically, existing law:  

          1)Makes legislative findings and declarations regarding traffic  
            congestion and air pollution in the Los Angeles region; states  
            the Legislature's intent that Caltrans consider taking  
            measures to increase capacity on SR 10, such as re-striping  
            the existing highway to add an additional lane in each  








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            direction.  

          2)Also states legislative intent that Metro use a portion of  
            toll revenue collected on SR 10 to fund a bus maintenance  
            facility in El Monte.  

          3)Stipulates that these provisions are not to be construed to  
            require Caltrans to take any action contrary to federal law.  

          4)Provides, pursuant to existing authority and to a memorandum  
            of understanding (MOU) between Metro, the United States  
            Department of Transportation, and Caltrans, that Metro may  
            operate a value-pricing and transit development demonstration  
            program involving HOT lanes on SR 10 and SR 110 in Los Angeles  
            County, under the following conditions:  

             a)   Metro and Caltrans must enter into a cooperative  
               agreement to address all matters related to design,  
               construction, maintenance, and operation of state highway  
               facilities in connection with the demonstration program;  

             b)   Vehicles not meeting high-occupancy vehicles (HOV)  
               occupancy requirements may be authorized to use the HOT  
               lane facility under conditions set forth by Metro.  

             c)   Metro is prohibited from changing the vehicle occupancy  
               requirement for access to HOV lanes in these two corridors  
               for the duration of the demonstration program.  

             d)   Each proposed HOT lane shall have non-tolled alternative  
               lanes available for public use in the same corridor;  

             e)   Metro must initiate a public outreach program to solicit  
               public input regarding the demonstration program;  

             f)   Metro must work with impact communities to develop  
               mitigation measures;  

             g)   Metro will set and/or adjust the toll rate but only  
               after a 30-day public review period;  

             h)   Metro must provide some form of mitigation, such as  
               reduced tolls, to low-income commuters; and,  

             i)   Toll paying commuters must have the option to purchase  








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               any necessary toll paying equipment and the ability to  
               prepay tolls and renew toll payments by cash or by using a  
               credit card.  

          5)Requires Metro and Caltrans to submit a report to the  
            Legislature by December 31, 2012, summarizing the  
            demonstration program and addressing specific elements of the  
            program.  

          6)Authorizes operation of the demonstration program until  
            January 15, 2013, and prohibits Metro from issuing bonds for  
            the demonstration program during this time.  

          7)Provides that revenue generated from the demonstration program  
            may be available to Metro for direct expenses related to  
            maintenance, administration, and operation of the lanes,  
            including toll collection, enforcement, and administration.  

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  The demonstration project, referred to as FastLanes,  
          is being made possible through a $210 million United States  
          Department of Transportation (USDOT) grant.  The project is  
          intended to test innovated strategies to alleviate congestion,  
          maximize freeway capacity usage, and fund additional transit  
          alternatives on HOV lanes on SR 10 and SR 110.  The project  
          involves the conversion of HOV lanes on these corridors to HOT  
          lanes.  Additionally, the federal grant will provide for  
          expanded and upgraded transit improvements along these same two  
          corridors.  

          In a statement issued last year upon signing the a memorandum of  
          understanding approving the project, USDOT Secretary, Mary  
          Peters, issued a statement citing, "I am announcing that Los  
          Angeles has been selected to receive $210.6 million in federal  
          Congestion Reduction funds.  This money will make commuting  
          faster, air cleaner, and transit better.  These funds will  
          provide the financial leverage this region needs to begin  
          converting up to eighty-five miles of local HOV lanes into new,  
          more reliable high occupancy toll - or HOT - lanes."  According  
          to Secretary Peters, the Los Angeles region had until October  
          15, 2008, to obtain the legislative authority needed to  
          participate in the program.  

          According to the author, this need for quick legislative  








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          sanctioning precluded the ability to make technical changes or  
          incorporate recommended amendments to enabling legislation.  AB  
          1381 provides those changes.  

           REGISTERED SUPPORT / OPPOSITION  :  

           Support 
           
          Caltrans (sponsor)
          Los Angeles County Metropolitan Transportation Authority (Metro)  
          (sponsor)
          Professional Engineers in California Government (PECG)

           Opposition 
           
          None on file
           

          Analysis Prepared by  :   Janet Dawson / TRANS. / (916) 319-2093