BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2620
                                                                  Page  1

          Date of Hearing:   May 12, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                      AB 2620 (Eng) - As Amended:  May 6, 2010 

          Policy Committee:                               
          TransportationVote:9-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill:

          1)Provides that  an unspecified percentage  of net toll revenues  
            generated by future toll facilities on the state highway  
            system are to be dedicated to highway maintenance,  
            preservation, and rehabilitation, and to be dedicated to  
            projects in the corridor where the revenues are generated.   
            Caltrans is authorized, however, to ask the California  
            Transportation Commission to direct revenues to other projects  
            within the same county as the toll road.

          2)Applies these provisions to toll facilities developed after  
            January 1, 2011, that are subject to a cooperative agreement  
            between Caltrans and another public agency entered into after  
            that date, and exempts previously authorized toll facilities  
            from the above requirement.

           FISCAL EFFECT  

          Requires an allocation of toll revenues from future toll  
          facilities for maintenance of the state highway system.   
          Depending on the amount required to be set aside for this  
          purpose, fulfilling this obligation would have an undetermined  
          impact on the toll charges; particularly as the redirected  
          percentage is unspecified.

           COMMENTS  

           1)Background and Purpose  . Regional transportation agencies are  
            generally responsible for making improvements within the urban  








                                                                  AB 2620
                                                                  Page  2

            areas of the state highway system. Increasingly, these  
            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.

            According to the author, the intent of AB 2620 is to increase  
            the amount of money available for use in the State Highway  
            Operation and Protection Program (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.

            AB 2620 acknowledges that the backbone of regions' plans for  
            developing and operating toll facilities is the state highway  
            system, which is a state asset. As such, it directs some  
            portion of the revenues derived from the toll facilities to  
            Caltrans to preserve and maintain that 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.  

           2)Amendment Needed  .  It is not the practice of this committee to  
            pass bills while they contain blanks, particularly those with  
            fiscal implications.

           3)Opposition  .  The American Council of Engineering Companies of  
            California (ACEC) express concern that a portion of toll  
            revenues could be used to address SHOPP needs anywhere in the  
            state.  The author's most recent amendments appear to address  
            this issue.  The ACEC also is also concerned with the  
            unspecified percentage in the bill, which is discussed above.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081