BILL NUMBER: AB 744	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 23, 2009
	AMENDED IN ASSEMBLY  JUNE 1, 2009
	AMENDED IN ASSEMBLY  APRIL 21, 2009

INTRODUCED BY   Assembly Member Torrico

                        FEBRUARY 26, 2009

   An act to amend Section 30913 of, and to add Sections 30914.6 and
30914.7 to, the Streets and Highways Code, relating to
transportation, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 744, as amended, Torrico. Transportation: toll lanes: Express
Lane Network.
   Existing law specifies the respective powers and duties of the Bay
Area Toll Authority and the Department of Transportation relative to
the operation of the state-owned Bay Area toll bridges and the
allocation of toll bridge revenues. Existing law provides for the
department to designate certain lanes for the exclusive use of buses
and high-occupancy vehicles (HOVs). Existing law provides for various
agencies, including the Sunol Smart Carpool Lane Joint Powers
Authority, the Alameda County Congestion Management Agency, and the
Santa Clara Valley Transportation Authority, to implement
high-occupancy toll (HOT) lanes on state highways, which are
high-occupancy vehicle lanes that may also be used by vehicles
without the requisite number of occupants upon payment of a toll.
   This bill would authorize the Bay Area Toll Authority to acquire,
administer, and operate a Bay Area Express Lane Network on state
highways within the 9 Bay Area counties pursuant to a development
plan recommended by the Bay Area Express Lane Network Project
Oversight Committee, which the authority would be required to
establish. The bill would authorize the authority to establish the
fee structure for use of the express lanes and would require a public
hearing in that regard. The bill would authorize the authority to
determine the types of vehicles that may use the lanes. The bill
would provide for agreements between the authority and the Department
of Transportation and the Department of the California Highway
Patrol. The bill would require revenues from the express lanes to be
deposited in the Bay Area Express Lane Network Account, which the
authority would be required to create. The bill would authorize the
authority to issue revenue bonds for the express lane program. The
bill would specify the use of revenues in the account, including the
net revenues remaining after expenses and obligations, including
revenue bond obligations, for the express lane program are satisfied.
The bill would provide for certain payments by the authority to the
Department of Transportation and the Department of the California
Highway Patrol relative to their responsibilities with regard to the
express lane program, and would continuously appropriate the amount
of those payments to those agencies for those purposes. The bill
would require the Sunol Smart Carpool Lane Joint Powers Authority,
the Alameda County Congestion Management Agency, and the Santa Clara
Valley Transportation Authority to enter into agreements with the Bay
Area Toll Authority by January 1, 2011, to provide for the transfer
of their rights and obligations relative to HOT lane projects to the
Bay Area Toll Authority. The bill would enact other related
provisions.
   Existing law specifies certain major projects that may be
undertaken with toll revenues from the Bay Area state-owned toll
bridges.
   This bill would provide that the Bay Area Express Lane Network is
eligible for funding from bridge toll revenues under certain
conditions.
   Because this bill would mandate various actions to be undertaken
by the Bay Area Toll Authority, it would thereby impose a
state-mandated local program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) It is the intent of the Legislature to authorize the Bay Area
Toll Authority to acquire, administer, and operate a Bay Area Express
Lane Network (network) with the following objectives:
   (1) More effectively manage the region's freeways in order to
provide higher passenger throughput and to reduce delays for all
travelers in the corridor, especially those traveling by carpool,
vanpool, or bus within each travel corridor.
   (2) Provide an efficient, effective, consistent, and seamless
system for network customers.
   (3) Provide benefits to travelers within each corridor
commensurate with the revenues collected in that corridor, including
expanded travel options and funding to support nonhighway options
that enhance effectiveness and throughput.
   (4) Expedite the implementation of the network using a rapid
delivery approach that, to the greatest extent possible, recognizing
safety, operational, and environmental constraints, relies upon the
existing highway right-of-way and minimizes the environmental impact.

   (5) Use network revenue to finance project development and
construction of the network and other corridor improvements, operate
and maintain the network, and use net corridor revenue to provide
transit capital and operations funding to improve transit service in
the corridor and provide other mobility improvements to the network
corridors.
   (b) It is the intent of the Legislature that network policies be
developed by the Bay Area Toll Authority in a collaborative manner
that includes the Department of Transportation, the Department of the
California Highway Patrol, and bay area congestion management
agencies.
   (c) It is the intent of the Legislature that the authority utilize
a corridor-based structure that recognizes commute sheds and
geographic communities of interest as the most effective and
user-responsive models for the network facilities implementation.
   (d) It is the intent of the Legislature that the authority
reinvest net corridor revenues generated in the corridor to provide
benefits to all travelers in the corridor  , including, but
not limited to, additional capital improvements on the freeway and
parallel arterials, transit capital and operations to improve public
transit service in the corridor, and enhanced operations and
management of the corridor.   . 
   (e) It is the intent of the Legislature that corridor investment
plans guide the use of net corridor revenues from the express lane
network to capital and operating programs serving the corridor
commensurate with the net corridor revenue generated by each
corridor.
   (f) It is the intent of the Legislature that the network provide
customers a consistent and efficient system that is easy to use, that
is safe and simple, and includes the following elements, but with
variances and exceptions as may be necessary to commence network
operations in a timely and cost-effective manner:
   (1) Consistent geometric design.
   (2) Consistent signage.
   (3) Common technology.
   (4) Common marketing, logo, and terminology.
  SEC. 2.  Section 30913 of the Streets and Highways Code is amended
to read:
   30913.  (a) In addition to any other authorized expenditure of
toll bridge revenues, the following major projects may be funded from
toll revenues:
   (1) Benicia-Martinez Bridge: Widening of the existing bridge.
   (2) Benicia-Martinez Bridge: Construction of an additional span
parallel to the existing bridge.
   (3) Carquinez Bridge: Replacement of the existing western span.
   (4) Richmond-San Rafael Bridge: Major rehabilitation of the
bridge, and development of a new easterly approach between the toll
plaza and Route 80, near Pinole, known as the Richmond Parkway.
   (5) The authority's Bay Area Express Lane Network authorized by
Section 30914.7, if and to the extent that funding for the network is
not available from other sources listed in subdivision (a) of
Section 30914.7 on terms and conditions acceptable to the authority,
and provided that the authority projects that its funding of the
network will not necessitate an increase in the bridge toll rates by
the authority or preclude the authority from timely performance of
its contractual and statutory obligations.
   (b) The toll increase approved in 1988, which authorized a uniform
toll of one dollar ($1) for two-axle vehicles on the bridges and
corresponding increases for multi-axle vehicles, resulted in the
following toll increases for two-axle vehicles on the bridges:
                                  1988
                                Increase
                               (Two-axle
Bridge                        vehicles)
Antioch Bridge                      $0.50
Benicia-Martinez Bridge               .60
Carquinez Bridge                      .60
Dumbarton Bridge                      .25
Richmond-San Rafael                   .00
Bridge
San Francisco-Oakland                 .25
Bay Bridge
San Mateo-Hayward Bridge              .25


Portions of the 1988 toll increase were dedicated to transit
purposes, and these amounts shall be calculated as up to 2 percent of
the revenue generated each year by the collection on all bridges of
the base toll at the level established by the 1988 toll increase. The
Metropolitan Transportation Commission shall allocate two-thirds of
these amounts for transportation projects, other than those specified
in Sections 30912 and 30913 and in subdivision (a) of Section 30914,
which are designed to reduce vehicular traffic congestion and
improve bridge operations on any bridge, including, but not limited
to, bicycle facilities and for the planning, construction, operation,
and acquisition of rapid water transit systems. The commission shall
allocate the remaining one-third solely for the planning,
construction, operation, and acquisition of rapid water transit
systems. The plans for the projects may also be funded by these
moneys. Funds made available for rapid water transit systems pursuant
to this subdivision shall be allocated to the San Francisco Bay Area
Water Emergency Transportation Authority beginning on the date
specified in the adopted transition plan developed by the authority
pursuant to subdivision (b) of Section 66540.32 of the Government
Code.
   (c) The department shall not include, in the plans for the new
Benicia-Martinez Bridge, toll plazas, highways, or other facilities
leading to or from the Benicia-Martinez Bridge, any construction that
would result in the net loss of any wetland acreage.
   (d) With respect to the Benicia-Martinez and Carquinez Bridges,
the department shall consider the potential for rail transit as part
of the plans for the new structures specified in paragraphs (2) and
(3) of subdivision (a).
   (e) At the time the first of the new bridges specified in
paragraphs (2) and (3) of subdivision (a) is opened to the public,
there shall be a lane for the exclusive use of pedestrians and
bicycles available on at least, but not limited to, the original span
at Benicia or Carquinez, or the additional or replacement spans
planned for those bridges. The design of these bridges shall not
preclude the subsequent addition of a lane for the exclusive use of
pedestrians and bicycles.
   (f) Subject to the rights of the holders of any outstanding toll
bridge revenue bonds issued by the authority and the requirements of
any constituent instruments defining the rights of holders of related
obligations of the authority entered into pursuant to Section 5922
of the Government Code, the authority may pledge toll revenues and
other income derived from bridges referred to in Section 30953 to
secure bonds issued by it pursuant to Section 30914.7 if and to the
extent the authority determines that funding for the network
authorized by Section 30914.7 is not available on terms acceptable to
the authority without such a pledge, and provided that the authority
projects that those obligations will not necessitate an increase in
the bridge toll rates by the authority or preclude the authority from
timely performance of its contractual and statutory obligations. The
authority may increase the amount of the tolls collected on the toll
bridges described in Section 30910 pursuant to Section 30918
thereafter if that action is necessary to meet those obligations.
  SEC. 3.  Section 30914.6 is added to the Streets and Highways Code,
to read:
   30914.6.  (a) The authority shall establish a Bay Area Express
Lane Network Project Oversight Committee (committee), which shall
consist of a staff representative of the authority (who shall serve
as chair of the committee), a representative of the department named
by its director, a representative of the Department of the California
Highway Patrol named by its director, and a staff representative of
each of the congestion management agencies  or countywide
transportation planning agencies  within the geographic
jurisdiction of the commission as defined in Section 66502 of the
Government Code that  meets at least one of the following
conditions: (1) has committed substantial funding associated with its
county or city and county to the development, final design, or
construction of an express lane corridor, (2) whose governing board
has adopted a policy in support of developing an express lane project
along a travel corridor within its jurisdiction that is consistent
with the network provided for in Section 30914.7, (3) whose county or
city and county is located in an express lane corridor, or (4) whose
county or city and county includes residents who comprise a
significant share of the potential travelers in the network.
  choose to participate. 
   (b) The committee shall recommend to the authority an express lane
development plan for the network authorized in Section 30914.7 and
policies for the network. The plan shall be updated at least every
four years and shall be initiated with the authority providing an
estimate of funds available for the development, construction, and
operation of the network. The first development plan shall consist of
the following two elements:
   (1) A phasing plan for development of the network, including a
definition of the geographic boundaries of each of the express lane
corridors.
   (2) An operational plan that shall recommend consistent standards
for the network, including, but not limited to  ,  the
following:
   (A) Geometric design.
   (B) Signage.
   (C) Safe and simple operations.
   (D) Technology.
   (E) Shared marketing, logo, and terminology.
   (F) Pricing policies and goals.
   (G) Carpool occupancy requirements.
   (H) Hours of operation.
   (I) Maintenance.
   (J) Enforcement.
   (K) Tort liability.
   Subsequent development plans shall include updates on the phasing
plan and operational plan as needed.
   While development of a consistent regional network shall be the
goal, the development plan may allow for variations in design or
other policies, as needed. In developing the phasing plan, the
committee shall first prioritize those corridors that can be
converted to express lanes from existing high-occupancy vehicle lanes
or that demonstrate the ability to generate sufficient fee revenue
to cover their financing, operating, and maintenance costs. Elements
of the plan that are under the authority of the department or the
Department of the California Highway Patrol shall be approved by the
department or the Department of the California Highway Patrol,
respectively, prior to being recommended to the authority. The
authority shall consider and accept or reject any express lane
development plan or revised plan recommended to it. If the authority
rejects a plan, it shall return the plan to the committee with its
comments, and the committee shall revise the plan and recommend it to
the authority. The process described in this subdivision, including
and through plan acceptance by the authority, shall not be delayed or
halted on account of any failure to receive or accept corridor
investment plans pursuant to subdivision (e) or (f).
   (c) The committee shall establish corridor working groups as
subcommittees of the committee. The number of groups shall correspond
to the number of express lane travel corridors within the geographic
jurisdiction of the commission as specified in the express lane
development plan adopted by the authority and as adjusted, from time
to time, by the authority to reflect travel patterns after
consultation with the affected group or groups and the committee.
   (d) Each group shall consist of a staff representative of the
authority, a representative of the department named by its director,
a representative of the Department of the California Highway Patrol
named by its director, and a staff representative of a congestion
management agency represented on the committee whose jurisdiction
includes a portion or all of the group's express lane corridor or
whose residents comprise a significant share of the potential
travelers in the corridor. Each group shall establish its voting
arrangements to reflect the commute shed patterns served by the
corridor and the level of county or city and county investment in the
infrastructure forming part of the corridor. Each group shall select
its chair from among the staff representatives of congestion
management agencies participating in the group.
   (e) Each group shall be responsible for the preparation of a
project study report or equivalent project initiation document and a
corridor investment plan. The authority shall provide the resources
necessary to prepare the elements of the project study report or
equivalent project initiation document and corridor investment plan
that relate to the network. The group shall submit a complete
corridor investment plan to the committee. The corridor investment
plan shall consist of:
   (1) Proposals and recommendations, including, but not limited to,
the following elements:
   (A) Phased development of the segment of the network within the
corridor of the group.
   (B) Carpool occupancy and network fee policies.
   (C) Local funding for the development of part or all of the
segment of the network within the corridor of the group, which may
include the use of bond or other financing backed by local sources
other than network fees.
   (D) Proposed reimbursement of local agencies for prior
expenditures on elements of the high-occupancy vehicle lane or
express lane network.
   (E) Proposals as to which state, regional, or local agency or
other entity should perform work described in the corridor investment
plan, on a project-by-project basis, including, without limitation,
planning, environmental review, and design and construction.
   (F) An examination and detailed analysis of equity considerations,
including, but not limited to, the impact of the proposed segment of
the network on low-income travelers in the corridor, transit riders,
carpoolers, and the distribution of benefits by geographic area and
a proposal for how to minimize any inequities that are identified.
   (G) The corridor investment plan shall also contain an examination
of safety and operations, including, but not limited to, express
lane ingress and egress.
   (2) Proposals as to projects and programs to be funded with net
corridor revenue as defined in subdivision (h) of Section 30914.7,
 consistent with paragraph (5) of subdivision (a),  giving
priority to projects and programs that will reduce vehicular
emissions and provide cost-effective public transit options in the
corridor. Corridor working groups shall consult with public transit
agencies operating in the corridor in the development of the corridor
investment plan. Corridor working groups may also prepare corridor
system management plans which include, but are not limited to,
express lane operations.
   (f) The committee shall review each corridor investment plan for
consistency with the express lane development plan and other corridor
investment plans and, after any resulting revisions by the group,
the committee shall submit each corridor investment plan that it has
approved to each of the congestion management agencies represented on
the group whose jurisdiction includes a portion or all of the group'
s corridor for review and approval. Each congestion management agency
shall have 60 days within which to approve a complete corridor
investment plan submitted to it by the committee. If the corridor
investment plan is approved by all of the congestion management
agencies  participating in the group   to which
it has been submitted  , the committee shall recommend the plan
to the authority. If a corridor investment plan is not approved by
one or more congestion management agencies to which it has been
submitted, each congestion management agency that has not adopted the
plan shall advise the group and the committee of its concerns in
writing. The group and the committee shall use their best efforts to
negotiate changes in the plan that will result in approval by each
congestion management agency to which the plan is required to be
submitted, and the revised plan shall be submitted to the congestion
management agencies to which the initial plan was submitted. Each
congestion management agency shall have 60 days within which to
approve the revised plan submitted to it. At the end of the 60-day
period, the revised plan shall be recommended by the committee to the
authority and a representative of each of the congestion management
agencies that rejected the revised plan shall be afforded an
opportunity to advise the authority of the congestion management
agency's reasons for not approving the revised plan. The authority
shall review the plan for consistency with the express lane
development plan, financing covenants, the regional transportation
plan, or any other applicable legal requirements and shall consider
and accept or reject any plan or revised plan recommended to it. If
the authority rejects a plan, it shall return the plan to the
committee with its comments, and the committee and the group that
prepared the plan shall revise the plan and repeat the approval
process, and the committee shall recommend the resulting revised plan
to the authority.
   (g) The committee, and each group, is a local agency as that term
is defined in the Ralph M. Brown Act (Chapter 9 (commencing with
Section 54950) of Part 1 of Division 2 of Title 5 of the Government
Code). Members of the committee and members of each group shall serve
without compensation. The authority shall develop a
conflict-of-interest policy that shall be applicable to each member
of the committee and each member of a group.
  SEC. 4.  Section 30914.7 is added to the Streets and Highways Code,
to read:
   30914.7.  (a) Notwithstanding Sections 149 and 30800, and Section
21655.5 of the Vehicle Code, the authority may acquire, administer,
and operate an express lane network on state highways within the
geographic jurisdiction of the commission. Expenditures for the
network may be funded from the following:
   (1) Network revenues.
   (2) Revenue bonds issued pursuant to this section.
   (3) Contributions and loans from federal, state, or local
agencies, including congestion management agencies and the authority.

   (b) The authority pursuant to subdivision (c), may direct and
authorize the entry and use of the network or segments of the network
for a fee. The fee structure shall be established from time to time
by the authority and may include free or reduced rate passage for
high-occupancy vehicles, public transportation vehicles, low-emission
vehicles or energy-efficient vehicles, or motorcycles in a manner
compliant with applicable federal law, notwithstanding any other law.
The authority shall make available for public review and comment its
proposed fee schedule and any changes to the fee schedule at least
30 days prior to holding a public hearing concerning the proposed fee
schedule or changes to the fee schedule and considering the adoption
of the fee schedule or changes to the fee schedule. The public
hearing may be scheduled during a public meeting of the authority.
   (c)  Notwithstanding any other law, vehicles that are certified or
authorized by the authority for entry into, and use of, the network
or segments of the network shall not be in violation of the Vehicle
Code or any other law because of that entry and use.
   (d) The authority shall implement in a collaborative manner with
the department, the Department of the California Highway Patrol, and
bay area congestion management agencies the express lane development
plan accepted by it pursuant to subdivision (b) of Section 30914.6,
except any elements or features of the plan that the authority
determines are impracticable or infeasible or that will unduly delay
commencement of operation of the network or that may  or will
materially or   materially and  adversely affect
the financial condition of the network or the authority or 
the results of the operation of the network or the authority. In
addition, the authority may change or add elements or features of the
plan that it determines, in its sole discretion, to be necessary or
advisable to protect or improve the financial condition of the
network or its results of operation or to protect the credit rating
of the authority.   its credit rating. 
   (e) (1) The authority shall carry out the network program in
cooperation with the department  and the Department of the
California Highway Patrol  pursuant to a cooperative agreement
that addresses all matters related to design, construction,
maintenance, and operation of state highway system facilities in
connection with the network program, including the conversion of
existing high-occupancy vehicle lanes to express lanes forming part
of the network. With the assistance of the department, the authority
shall establish appropriate traffic flow guidelines for the purpose
of ensuring optimal use of the network without adversely affecting
other traffic on the state highway system. Implementation of the
network program shall ensure that Level of Service C, as measured by
the most recent issue of the Highway Capacity Manual, as adopted by
the Transportation Research Board, is maintained at all times in the
network, except that the cooperative agreement may permit Level of
Service D under terms and conditions specified in the cooperative
agreement.
   (2) Notwithstanding Section 13340 of the Government Code, there is
hereby continually appropriated to the department for expenditure
pursuant to the cooperative agreement all amounts paid to the
department by the authority for the network program, including,
without limitation, amounts paid as advances or to reimburse the
department for payments to contractors working on the program.
   (f) (1) Agreements between the authority, the department, and the
Department of the California Highway Patrol shall identify the
respective obligations and liabilities of those entities and assign
them responsibilities relating to the network program. The agreements
entered into pursuant to this section shall be consistent with
agreements between the department and the United States Department of
Transportation relating to programs of this nature. The agreements
shall include clear and concise procedures for enforcement by the
Department of the California Highway Patrol of laws prohibiting the
unauthorized use of the network. The agreements shall provide for
reimbursement of state agencies, from revenues generated by the
network program, or other funding sources that are not otherwise
available to state agencies for transportation-related projects, for
costs incurred in connection with the implementation or operation of
the network program.
   (2) Notwithstanding Section 13340 of the Government Code, there is
hereby continually appropriated to the Department of the California
Highway Patrol for expenditure pursuant to agreements authorized by
paragraph (1) all amounts paid to the Department of the California
Highway Patrol for the network program, including, without
limitation, amounts paid as advances.
   (g) All revenue generated from the network shall be deposited in
the authority's Bay Area Express Lane Network Account, which the
authority shall create. Funds in the account shall be available to
the authority for the following purposes:
   (1) To pay or provide for debt service on revenue bonds issued
pursuant to this section, to pay any related obligations of the
authority entered into pursuant to Section 5922 of the Government
Code, and to comply with the covenants and other requirements of the
constituent instruments defining the rights of holders of those
revenue bonds and related obligations.
   (2) To repay loans pursuant to paragraph (3) of subdivision (a),
including financing costs.
   (3) To pay or provide for expenses related to the acquisition,
operation including collection and enforcement, maintenance,
construction, and related project development activities, and
administration of the network.
   (h) Revenue remaining after payment or provision for payment of
the obligations and other expenses referred to in  paragraphs
 (1) to (3), inclusive, of subdivision (g) shall constitute "net
corridor revenue." Up to 5 percent of net corridor revenue may be
retained by the authority as a reserve to pay, and applied to pay,
obligations and other expenses referred to in paragraphs (1) to (3),
inclusive, of subdivision (g). All remaining net corridor revenue
shall be allocated by the authority to those corridors provided for
in subdivision (c) of Section 30914.6 in proportion to the net
corridor revenue generated by each corridor. The net corridor revenue
so allocated to a corridor shall be expended by the authority to
implement the projects and programs to be funded  with net
corridor revenue  in accordance with the corridor investment
plan for that corridor accepted by the authority pursuant to
subdivision (f) of Section 30914.6. The authority may disburse net
corridor revenue to eligible recipients, including congestion
management agencies, on a reasonable and timely basis, including,
without limitation, advances, pay-as-you-go, or reimbursement
methods.
   (i) The authority shall control and maintain the Bay Area Express
Lane Network Account and those subaccounts as it deems necessary and
appropriate to document revenues and expenditures in accordance with
generally accepted accounting principles.
   (j) The authority and the Sunol Smart Carpool Lane Joint Powers
Authority shall enter into an agreement within one year after the
effective date of this act
      providing for the transfer to the authority of all of the
rights and obligations of the Sunol Smart Carpool Lane Joint Powers
Authority under Section 149.5. The authority shall succeed to all of
the rights and obligations of the Sunol Smart Carpool Lane Joint
Powers Authority under Section 149.5 on the earlier of the date
specified in the agreement, or one year after the date when the
project authorized by Section 149.5 commences  commercial
 operation.
   (k) The authority and the Alameda County Congestion Management
Agency shall enter into an agreement within one year after the
effective date of this act providing for the transfer to the
authority of all of the rights and obligations of the Alameda County
Congestion Management Agency under Section 149.5. The authority shall
succeed to all of the rights and obligations of the Alameda County
Congestion Management Agency under Section 149.5 on the earlier of
the date specified in the agreement, or one year after the date when
the project authorized by Section 149.5 commences  commercial
 operation.
   (l) The authority and the Santa Clara Valley Transportation
Authority shall enter into an agreement within one year after the
effective date of this act providing for the transfer to the
authority of all of the rights and obligations of the Santa Clara
Valley Transportation Authority under Section 149.6. The authority
shall succeed to all of the rights and obligations of the Santa Clara
Valley Transportation Authority under Section 149.6 on the earlier
of the date specified in the agreement, or one year after the Santa
Clara Valley Transportation Authority commences  commercial
 operation of the first of the projects authorized by
Section 149.6.
   (m) (1) The authority may issue bonds and notes (collectively
called bonds) payable from and secured by a pledge of the authority
of all or any part of the revenue of the network to finance capital
expenditures for the network, including project development,
construction, and construction-related expenditures, and sell those
bonds at public or private sale in the form and on the terms and
conditions as the governing board of the authority shall approve. The
authority may pledge all or any part of the revenue of the network
to secure those bonds and any related obligations of the authority
entered into pursuant to Section 5922 of the Government Code. The
authority may issue bonds to refund or purchase or otherwise acquire
any bonds on terms and conditions as the governing board of the
authority shall approve.
   (2) Subject to the rights of the holders of any bonds issued
pursuant to paragraph (1) and the rights of the holders of any
constituent instruments defining the rights of holders of related
obligations of the authority entered into pursuant to Section 5922 of
the Government Code, the authority may pledge revenue of the network
program to secure bonds issued by it pursuant to Section 30961 if
and to the extent it determines that bonds issued by it pursuant to
Section 30961 require such a pledge in order to be sold by the
authority on terms acceptable to the authority. The authority may
increase the amount of the fees provided for in subdivision (b) if
necessary to meet those obligations.
   (3) Any bond issued pursuant to this section shall contain on its
face a statement to the following effect:


   "Neither the full faith and credit nor the taxing power of the
State of California or the Bay Area Toll Authority is pledged to the
payment of principal of, or the interest on, this bond."


   (4) Bonds issued pursuant to this section are legal investments
for all trust funds, the funds of all insurance companies, banks,
trust companies, executors, administrators, trustees, and other
fiduciaries. The bonds are securities that may legally be deposited
with, and received by, any state or municipal officer, agency, or
political subdivision of the state for any purpose for which the
deposit of bonds or obligations of the state is now, or may hereafter
be, authorized by law, including deposits to secure public funds.
   (5) Interest earned on any bonds issued pursuant to this section
shall at all times be free from state personal income tax and
corporate income tax.
   (6) The state hereby pledges to and agrees with the holders of
bonds issued pursuant to this section and the holders of related
obligations of the authority entered into pursuant to Section 5922 of
the Government Code:
   (A) The state will not authorize fee-based publicly or privately
owned express lanes or high occupancy vehicle lanes within the
geographic jurisdiction of the commission as defined in Section 66502
of the Government Code other than the express lanes provided for in
this section.
   (B) The state will not limit, alter, or restrict the rights hereby
vested in the authority to fulfill each pledge of revenues and any
other terms of any agreement made with or for the benefit of those
holders of bonds and related obligations or in any way impair the
rights or remedies of the holders of those bonds and related
obligations.
   (n) The authority is authorized, but not required, to be the lead
agency for the preparation of any required environmental studies or
other documents for the network provided for in this section,
notwithstanding any other provision of law.
  SEC. 5.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district are the result of a program for which legislative authority
was requested by that local agency or school district, within the
meaning of Section 17556 of the Government Code and Section 6 of
Article XIII B of the California Constitution.