BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2620
                                                                  Page  1

          Date of Hearing:   April 19, 2010

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                               Bonnie Lowenthal, Chair
                      AB 2620 (Eng) - As Amended:  April 8, 2010
           
          SUBJECT  :  State highways:  toll facilities

           SUMMARY  :  Dedicates an unspecified percentage of net toll  
          revenues from future toll facilities on the state highway system  
          for maintenance, preservation, and rehabilitation of the system.  
           Specifically,  this bill  :  

          1)Make legislative findings and declarations regarding the  
            decreasing level of available funding for maintenance,  
            preservation, and rehabilitation of the state highway system  
            and the increasing needs in these areas.  

          2)Provides that an unspecified percentage of net toll revenues  
            generated by future toll facilities on the state highway  
            system are to be dedicated to maintenance, preservation, and  
            rehabilitation of the system.  

          3)Applies these provisions only to toll facilities developed on  
            and after January 1, 2011, that are subject to a cooperative  
            agreement between the California Department of Transportation  
            (Caltrans) and another public agency entered into on or after  
            that date.  

           EXISTING LAW:   

          4)Authorizes various specific transportation agencies and/or  
            joint powers agencies to conduct value-pricing high-occupancy  
            toll lane programs in specific state highway system corridors.  
             

          5)Authorizes regional transportation agencies or Caltrans to  
            enter into public-private partnership agreements for  
            transportation projects, under specific conditions and until  
            January 2, 2017.  

          6)Authorizes Caltrans and other public agencies to enter into  
            agreements to develop toll facilities in order to increase the  
            construction of new capacity or improvements for the state  
            transportation system consistent with specified goals.  








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          7)Requires Caltrans to prepare a State Highway Operation and  
            Protection Program (SHOPP) identifying major capital  
            improvements that are needed to preserve and protect the state  
            highway system; limits SHOPP projects to, among other things,  
            those projects that do not add capacity to the system.

          FISCAL EFFECT:  Unknown but will result in increased revenues  
            for maintenance and rehabilitation activities on the state  
            highway system, to the extent that new toll facilities are  
            developed.  

           COMMENTS:   Regional transportation agencies are generally  
          responsible for making improvements within the urban areas of  
          the state highway system.  Increasingly, these regional  
          transportation agencies are considering developing toll  
          facilities on the state highway system as a means of funding  
          transportation improvements in the corridor and in the region.   
          Several such toll facilities have already been authorized in  
          statute and others are being considered.  

          Despite the role of the regional transportation agencies in  
          making improvements to the state highway system, Caltrans is the  
          owner-operator of the system.  Any improvements made to the  
          system have to have Caltrans' approval, typically via a  
          cooperative agreement, and have to be constructed consistent  
          with Caltrans' design standards.  Further, Caltrans is  
          responsible for the maintenance and operation of the  
          system-costs for which are soaring as the system ages well  
          beyond its design life.  Caltrans is also legally responsible  
          for the state highway system and assumes related tort  
          liabilities.  

          According to the author, the intent of AB 2620 is to increase  
          the amount of money available for use in SHOPP.   The SHOPP is a  
          four-year program of projects developed to reduce collisions,  
          restore major damage, preserve bridges, preserve the roadway and  
          roadside, enhance mobility, and preserve other transportation  
          facilities related to the state highway system.  

          In February 2010, the California Transportation Commission  
          adopted the $6.75 billion, four-year 2010 SHOPP.  This SHOPP has  
          less funding compared to the 2008 SHOPP.  The capacity to add  
          new projects has been reduced primarily due to the reduction of  
          available funding.  Further, the escalation of construction  








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          costs continues to erode the buying power of the limited funding  
          that is available.  The decline of available funding for the  
          SHOPP together with the following items continues to strain the  
          ability to meet rehabilitation and preservation needs on the  
          state highway system:  

          8)The continuing increase in vehicle travel and goods movement  
            contribute to an increasing rate of pavement and bridge  
            deterioration, new traffic collision concentration locations,  
            and increasing hours of traffic congestion.  

          9)The continued under-funding of preservation and rehabilitation  
            delays needed projects and ultimately increases the cost when  
            projects are undertaken.  

          AB 2620 acknowledges that the backbone of regions' plans for  
          developing and operating toll facilities is the state highway  
          system-a state asset.  As such, it directs some portion of the  
          revenues derived from the toll facilities to Caltrans to  
          preserve and maintain the system.  The author indicates that, at  
          this point, the amount of the percentage is still undecided as  
          talks continue with Caltrans and regional transportation  
          authorities to determine an equitable percentage of the toll  
          proceeds that should be directed to the SHOPP.   
           
           Previous legislation  :  SB 1422 (Ridley-Thomas) Chapter 547,  
          Statutes of 2008 authorized a value-pricing and transit  
          development demonstration program involving high-occupancy toll  
          (HOT) lanes to be conducted, administered, developed, and  
          operated on State Highway Route 110 and Interstate 10 in Los  
          Angeles County by the Los Angeles County Metropolitan  
          Transportation Authority. 

          AB 1954 (Jeffries) Chapter 421, Statutes of 2008 authorized a  
          value-pricing and transit program involving HOT lanes to be  
          developed and operated on State Highway Route 15 in Riverside  
          County by the Riverside County Transportation Commission.  

          AB 2032 (Dutra) Chapter 418, Statutes of 2004 authorized the San  
          Diego Association of Governments, the Sunol Smart Carpool Lane  
          Joint Powers Authority, the Santa Clara Valley Transportation  
          Authority, and the Alameda County Congestion Management Agency  
          to undertake value-pricing programs involving various HOT lanes  
          under the jurisdiction of these agencies.  









                                                                  AB 2620
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           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file

           Opposition 
           
          None on file

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