BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1381
                                                                  Page  1


           ASSEMBLY THIRD READING
          AB 1381 (John A. Perez)
          As Amended  April 15, 2009
          Majority vote 

           TRANSPORTATION      9-1         APPROPRIATIONS      14-2        
           
           ----------------------------------------------------------------- 
          |Ayes:|Eng, Blumenfield,         |Ayes:|De Leon, Nielsen,         |
          |     |Buchanan, Galgiani,       |     |Ammiano,                  |
          |     |Bonnie Lowenthal, Niello, |     |Charles Calderon,         |
          |     |John A. Perez, Solorio,   |     |Krekorian, Fuentes,       |
          |     |Torlakson                 |     |Monning, Harkey, John A.  |
          |     |                          |     |Perez, Price, Skinner,    |
          |     |                          |     |Solorio,                  |
          |     |                          |     |Audra Strickland,         |
          |     |                          |     |Torlakson                 |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Miller                    |Nays:|Duvall, Miller            |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Makes technical corrections to provisions granting  
          authority to the Los Angeles County Metropolitan Transportation  
          Authority (Metro) to operate a congestion-pricing demonstration  
          program (demonstration program).  Specifically,  this bill  :  

          1)Authorizes the 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 program.  

          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 program 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.  








                                                                  AB 1381
                                                                  Page  2



          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  
            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 (USDOT), 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  








                                                                  AB 1381
                                                                  Page  3


               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  
               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  :  According to the Assembly Appropriations  
          Committee, negligible fiscal impact.

           COMMENTS  :  The demonstration program, referred to as FastLanes,  
          is being made possible through a $210 million USDOT grant.  The  
          demonstration program 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  








                                                                  AB 1381
                                                                  Page  4


          along these same two corridors.  

          In a statement issued last year upon signing a MOU 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 demonstration program.  

          According to the author, this need for quick legislative  
          sanctioning precluded the ability to make technical changes or  
          incorporate recommended amendments to enabling legislation.  AB  
          1381 provides those changes.  

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




                                                                FN: 0000477