BILL NUMBER: AB 744	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 15, 2009
	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   27566, 30914.6,  and 30914.7 to, the
Streets and Highways Code,   and to amend Section 21655.6 of the
Vehicle 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   develop  , administer,  and
 operate  , and maintain  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 prohibit the authority from converting existing nontolled
general purpose lanes to express 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. 
   Existing law provides for the Department of Transportation, in
cooperation with various agencies, to develop and adopt functional
specifications and standards for an automatic vehicle identification
system for toll collection purposes on toll facilities.  
   This bill would require the Bay Area Toll Authority, in its role
as the administrator of the automatic vehicle identification system,
among other things, to provide a cash-based opportunity for customers
to obtain an account for paying tolls that does not require the
customer to provide a name or address.  
   Existing law authorizes the Department of Transportation and local
authorities, with respect to highways under their respective
jurisdictions, to authorize the exclusive or preferential use if
highway lanes for high-occupancy vehicles. Existing law requires the
department to obtain the approval of the applicable transportation
planning agency or county transportation commission prior to
implementing this provision.  
   This bill would authorize the Metropolitan Transportation
Commission, in cooperation with the department, to increase the
vehicle occupancy qualification requirements for any vehicle using an
express lane located within the geographic jurisdiction of the
commission by one additional passenger above the occupancy level
required on January 1, 2010. 
   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   prioritize
the use of  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.
   (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 27566 is added to the  
Streets and Highways Code   , to read:  
   27566.  (a) In its role as administrator of the automatic vehicle
identification system described in Section 27565, the Bay Area Toll
Authority shall provide vehicle owners who seek to obtain an account
the option of opening and maintaining an account with United States
currency or check. That option shall also allow a customer to obtain
an account without providing his or her name or address.
   (b) The Bay Area Toll Authority shall inform the public about the
option to obtain a cash-based account for the automatic vehicle
identification system on its Internet Web site and in promotional
materials.
   (c) The Bay Area Toll Authority may provide a person the option of
making a payment with United States currency to replenish his or her
vehicle identification system account at the toll plaza
administration building associated with each of the state-owned toll
bridges located within the geographic jurisdiction of the
Metropolitan Transportation Commission.
   (d) The Bay Area Toll Authority shall make a good faith effort to
encourage commercial retailers that sell transponders for the
automatic vehicle identification system to enable a person to
replenish his or her account at the retail location with a variety of
payment methods, including, but not limited to, United States
currency. 
   SEC. 2.   SEC. 3.   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   at
interest rates and on other financing  terms and conditions
acceptable to the authority, and provided that the authority
projects   adopts a finding that its current financial
projections indicate  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  and provided further that funds so
advanced shall be treated as loans to be repaid pursuant to paragraph
(3) o   f subdivision (a) of Section 30914.7  .
   (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 
 at interest rates and on other financing  terms acceptable
to the authority without such a pledge, and provided that the
authority  projects   adopts a finding that its
current financial projections indicate  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.   SEC. 4.   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  
commissioner  , 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 choose to
participate.  For the purposes of this chapter, all references to
congestion management agencies shall include countywide
transportation planning agencies that operate within the jurisdiction
of the commission, as defined in Section 66502 of the Government
Code. 
   (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, 
maintenance,  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. 
   (L) Performance standards, consistent with paragraph (1) of
subdivision (e) of Section 30914.7. 
   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  (1) 
can be converted to express lanes  that have sufficient capacity
 from existing high-occupancy vehicle lanes or  that
  (2)  demonstrate the ability to generate
sufficient fee revenue to cover their financing, operating, and
maintenance costs. Elements of the plan  and any subsequent
revisions or updates to 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   commissioner  ,
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   In coordination with the
department, each  group shall be responsible for the preparation
of a project study report or equivalent project initiation document
and a corridor investment plan.  The project study report shall
assess the feasibility and desirability of express lanes in the
corridor.  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) A proposal for improving public transit services in the
corridor, including an identification of potential fund sources for
those improvements.  
   (G) The corridor investment plan shall also contain an 
    (H)     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   giving highest priority  to projects and
programs that will  reduce vehicular emissions and 
provide cost-effective public transit options in the corridor. 
Eligible projects shall provide benefits in the corridor, such as
improving safety, reducing traffic congestion, reducing vehicular
  emissions, improving p   ublic transit options,
or making carpooling and vanpooling more convenient.  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 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.   SEC. 5.   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   develop, administer, operate,
and maintain  an express lane network on state highways within
the geographic jurisdiction of the commission.  The goal of the
express lane network shall be to provide higher person throughput and
to reduce delays for all travelers in the corridor, especially those
traveling by carpool, vanpool, or bus within each travel corridor.
 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)  (1)    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 
 Subject to Section 5205.5 of the Vehicle Code, as that section
read on   January 1, 2010, 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 

   (2) In designing and updating its fee structure and access
policies, the authority shall prioritize person throughput and travel
time reliability for buses and multioccupant vehicle users of the
network. The fee structure shall include a maximum toll determined by
the authority. The authority shall also develop methods to
temporarily deny access to the network to toll-paying vehicles, to
meet the performance standards required by paragraph (1) of
subdivision (e) if the authority determines those methods to be
necessary. The authority shall develop a program for monitoring,
evaluating, and reporting on the network that provides for continuous
monitoring of the traffic conditions on the facility. 
    (3)     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 
 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  Section 21655.5 of
 the Vehicle Code  or any other law  because of
that entry and use.
   (d) The authority shall  develop and  implement in a
collaborative manner with the department, the Department of the
California Highway Patrol, and  bay area   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  (1)  are impracticable or infeasible
 or that   , (2) do not provide a significant
net benefit to the travelers residing along a corridor, (3) 
will unduly delay commencement of operation of the network  ,
 or  that   (4)  may materially and
adversely affect the financial condition of the network or the
authority or its credit rating.  If the authority makes any of
  the above determinations, a gap in the network may exist.

   (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   performance
standards consistent with federal requirements related to minimum
speed for those facilities  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 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
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 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 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   Subject to the approval of the
department, 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. 
   (o) On or before October 1 of each year, beginning after the first
of the express lanes authorized by this section is operational and
under the control of the authority, the authority shall submit to the
transportation committee of each house of the Legislature, a report
containing all of the following elements:  
   (1) A description of the network and each corridor.  
   (2) A description of the projects that are planned, under
development, and in operation, including the lead agencies for each
project and the date the facility is or is expected to be placed in
service.  
   (3) The costs of each project and an explanation of the project's
financing plan.  
   (4) The amount of toll revenues collected in each corridor and the
network as a whole.  
   (5) Expenditures made from toll revenues for each corridor and for
the network as a whole.  
   (6) The amount of net revenue distributed to each corridor and a
description of how those funds will be or are used for each corridor.
 
   (p) The authority shall not convert existing nontolled general
purpose lanes to express lanes. 
   SEC. 6.    Section 21655.6 of the   Vehicle
Code   is am   ended to read: 
   21655.6.  (a) Whenever the Department of Transportation authorizes
or permits exclusive or preferential use of highway lanes for
high-occupancy vehicles on any highway located within the territory
of a transportation planning agency, as defined in Section 99214 of
the Public Utilities Code, or a county transportation commission, the
department shall obtain the approval of the transportation planning
agency or county transportation commission prior to establishing the
exclusive or preferential use of the highway lanes.
   (b) If the department authorizes or permits additional exclusive
or preferential use of highway lanes for high-occupancy vehicles on
that portion of State Highway Route 101 located within the boundaries
of the City of Los Angeles, the department shall obtain the approval
of the Los Angeles County Transportation Commission by at least a
two-thirds majority vote of the entire membership eligible to vote
prior to establishing the additional exclusion or preferential use of
the highway lanes.
   (c) If the department restricts or requires the restriction of the
use of any lane on any federal-aid highway in the unincorporated
areas of Alameda County to high-occupancy vehicles, the Metropolitan
Transportation Commission shall review the use patterns of those
lanes and shall determine if congestion relief is being efficiently
achieved by the creation of the high-occupancy vehicle lanes. The
commission shall report its findings and recommendations in its HOV
Master Plan Update for the San Francisco Bay area no later than two
years after those high-occupancy vehicle lanes become operational.

   (d) Notwithstanding any other provision of law, the Metropolitan
Transportation Commission, in cooperation with the department, may
increase the vehicle occupancy qualification requirements for any
vehicles using an express lane within the geographic jurisdiction of
the commission, by an additional one passenger above the occupancy
level required on January 1, 2010. 
   SEC. 5.   SEC. 7.   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.
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