BILL NUMBER: SB 916	AMENDED
BILL TEXT

AMENDED IN ASSEMBLY SEPTEMBER 4, 2003
AMENDED IN ASSEMBLY AUGUST 18, 2003
AMENDED IN ASSEMBLY JUNE 30, 2003
AMENDED IN SENATE JUNE 3, 2003
AMENDED IN SENATE MAY 7, 2003
AMENDED IN SENATE APRIL 21, 2003

INTRODUCED BY Senator Perata
(Principal coauthor: Senator Torlakson)
(Coauthor: Senator Burton)
(Coauthors: Assembly Members Chan, Hancock, Leno,
Mullin, and Wiggins)

FEBRUARY 21, 2003

An act to amend Section 14531 of the Government Code, to amend
Sections 182.5, 188.3, 188.4, 188.10, 30101, 30101.8,
30113, 30600, 30601, 30604, 30606, 30750, 30751, 30760, 30761, 30791,
30884, 30885, 30887, 30889.3, 30891, 30894, 30910, 30912, 30913,
30915, 30916, 30918, 30919, 30920, 30950, 30950.1, 30950.2, 30950.3,
30950.4, 30953, 30958, 30960, 30961, 31000, and 31010
31010, and 31071 of, to amend and renumber
Section 188.10 of, to add Sections 188.53, 30881, 30910.5,
30914.5, and 30922 to, and to repeal Sections 30603, 30605, 30608.2,
30752, 30753, 30754, 30755, 30756, 30757, 30762, 30762.5, 30763,
30764, 30764.5, 30765, 30766, 30767, 30791.7, 30792, 30792.2, 30793,
30794, 30795, 30886, 30888, 30889, 30896, and 30956 of, to repeal
Article 5 (commencing with Section 30200) and Article 7 (commencing
with Section 30350) of Chapter 1 of Division 17 of, to repeal and add
Sections 30102.5, 30890, 30911, 30914, 30917, 30921, and 30951 of,
the Streets and Highways Code, and to amend Section 5205.5 of the
Vehicle Code, and to amend Section 5 of Chapter 898 of the
Statutes of 1997
relating to transportation, and making an
appropriation therefor.



LEGISLATIVE COUNSEL'S DIGEST


SB 916, as amended, Perata. Toll bridge revenues : Treasure
Island Development Authority
.
Existing law generally makes the California Transportation
Commission responsible for establishing the rates charged vehicles
for crossing the state-owned toll bridges. Under existing law, the
Metropolitan Transportation Commission (MTC) is authorized to adopt a
toll schedule in lieu of the one adopted by the California
Transportation Commission for the state-owned toll bridges in the San
Francisco Bay area Area . Existing
law makes the MTC and the Bay Area Toll Authority (BATA), which is
defined as the same body as the MTC, responsible for the programming,
administration, and allocation of the revenue from the base toll
charge collected from these bridges. Under existing law, a portion
of this revenue is continuously appropriated to the Controller who is
required to disburse these funds to the MTC to expend for purposes
that reduce vehicular congestion on the bridges.
This bill would define the BATA as a separate entity governed by
the same governing board as the MTC. The bill would make the BATA
responsible for the programming, administration, and allocation of
toll revenues from the state-owned toll bridges in the San Francisco
Bay area Area and would authorize it to
perform these functions with respect to the seismic retrofit
surcharge once those projects are completed and provision is made for
payment of the bonds issued for those purposes.
The bill would require the City and County of San Francisco and
specified counties in the San Francisco Bay area
Area to conduct a special election on a proposed increase
of $1 in the amount of the base toll rate charged on the state-owned
toll bridges in that area, and would identify the purposes for which
revenues from the toll increase would be used. The bill would
specify that, except to meet its bond obligations, the toll schedule
adopted pursuant to the results of this election may not be changed
without the statutory authorization of the Legislature. The bill
would require the BATA to reimburse from toll revenues, as specified,
the counties and the City and County of San Francisco for the cost
of submitting the measure to the voters. By requiring this election,
the bill would impose a state-mandated local program. Because the
bill would specify that the revenue resulting from the increased toll
charge would be continuously appropriated to the MTC for expenditure
on specified projects, it would make an appropriation.
The bill would require the allocation of toll revenues for the
operation and maintenance of the transbay transit terminal under
specified conditions.
The bill additionally would make related changes and would repeal
obsolete provisions relating to the operation of toll facilities.

The Treasure Island Conversion Act of 1997 authorizes the City and
County of San Francisco to designate the Treasure Island Development
Authority as a redevelopment agency under state law for purposes
related to the Naval Station Treasure Island. Under these
provisions, the employees of this authority are subject to the same
civil service provisions as employees of the City and County of San
Francisco.
This bill would provide that the director and deputy of this
authority are not subject to these civil service provisions.

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. Section 14531 of the Government Code is amended to
read:
14531. (a) The commission may amend the state transportation
improvement program if the amendment meets both of the following
conditions:
(1) The request for the amendment is made by the entity that
submitted the project or projects that are in the program and are to
be changed by the amendment.
(2) The total amount programmed in each county for regional
improvements does not exceed the county's share prior to the
amendment, or the total amount programmed in each county is treated
as an adjustment to the share pursuant to Section 188.11 of the
Streets and Highways Code.
(b) Public notice of the proposed amendments to the program or the
plan shall be made at least 30 days before the commission takes
formal action on the proposed amendments. The notice shall include
the text and complete description of the proposed amendments.
SEC. 2. Section 182.5 of the Streets and Highways Code is amended
to read:
182.5. (a) It is the intent of the Legislature that the
transition to the new programs and procedures established in the bill
enacting this section shall be fair and equitable and minimize
disruptions in the delivery of projects. With specific reference to
the transition from county minimums to county shares for regional
improvement, no project should be counted twice, no project that
would be counted under either the old or new procedures should escape
being counted in the transition, shares should be sufficient to fund
projects programmed in the 1996 State Transportation Improvement
Program for the same period, no incentive or reward should be
provided for delaying a project, and no incentive or reward should be
provided for allocating funds to a project earlier than the year in
which the funds are needed for the project.
(b) At the end of the fiscal year ending June 30, 1998, the county
minimums and county minimum deficits shall be recalculated under the
law as it existed prior to the enactment of the bill adding this
section.
(c) Notwithstanding Section 164, there shall be set aside
sufficient funding for every project that is included in the 1996
State Transportation Improvement Program. This funding shall be set
aside in the fund estimate prior to and in addition to the
distribution of funding between programs pursuant to Section 164.
(d) The amount of the cumulative county minimum deficit calculated
for any county pursuant to subdivision (b) shall be carried forward
as a county share for the 1998 State Transportation Improvement
Program, prior to and in addition to the computation of county shares
pursuant to subdivision (a) of Section 188.8.
(e) The commission shall not allocate funds for any project unless
the commission has programmed the state transportation improvement
program in a manner that complies with the requirements of Sections
188, 188.8, and 188.11.
(f) Notwithstanding subdivision (a), for a county within the
region defined by Section 66502 of the Government Code where funds
were traded in the 1996 State Transportation Improvement Program to
another county in that region, the county share for that county for
the 1998 State Transportation Improvement Program shall be increased
by the amount of the trade in the 1996 State Transportation
Improvement Program, as if the share were a county minimum deficit
under subdivision (d).
(g) In adopting the 1998 State Transportation Improvement Program,
the commission shall, at a minimum, fund all intercity rail projects
that are included in the adopted 1996 State Transportation
Improvement Program. The amount of funds programmed for each project
shall not be less than the amount in the 1996 State Transportation
Improvement Program.
(h) The commission, after consulting with the department and the
regional planning agencies, shall adopt interim guidelines and
procedures relative to fund estimates and project selection in a
manner that the first state transportation improvement program,
pursuant to the provisions of the act adding this section, is adopted
not later than June 1, 1998.
SEC. 3. Section 188.3 of the Streets and Highways Code is amended
to read:
188.3. The cost of maintenance of all toll bridges under the
jurisdiction of the commission shall be paid out of money in the
State Highway Account.
SEC. 4. Section 188.4 of the Streets and Highways Code is amended
to read:
188.4. (a) Maintenance expenditures on all toll facilities owned
by the state shall, for accounting purposes, be classified as
Category A or Category B expenditures. Notwithstanding any other
provision of law, the cost of maintenance of toll facilities in the
geographic jurisdiction of the Metropolitan Transportation Commission
shall be paid in accordance with the following:
(1) Category A maintenance shall be paid from the State Highway
Account and shall include all normal highway maintenance which would
be performed by the state according to state procedures as if the
facility was a toll-free state facility.
(2) Category B maintenance shall be paid from toll revenues and
shall include all maintenance and reconstruction work of those
facilities such as toll facility administration buildings and toll
booths which are constructed primarily for the purpose of collecting
tolls.
(b) In no event shall the Category A maintenance expenditures for
the toll bridges in the geographic jurisdiction of the Metropolitan
Transportation Commission be funded at a lower percentage than was
established in accordance with procedures for funding Category A
maintenance of the toll bridges during the 1986-87 fiscal year.

SEC. 4.1. Section 188.10 of the Streets and Highways Code is
amended to read:

188.10. (a) The Toll Bridge Seismic Retrofit Account is hereby
created in the State Transportation Fund. The money in the account
is hereby appropriated, without regard to fiscal years, to the
department for the purpose of funding seismic retrofit or replacement
of the bridges listed in Section 188.5. Notwithstanding Section
11012 of the Government Code, the department, in consultation with
the Department of Finance and the Office of the State Treasurer, may
authorize the investment of bond proceeds or commercial paper
proceeds deposited into the account in obligations permitted by the
Treasurer. Those invested amounts may be held by a trustee who is
either the Treasurer or who is selected by the Treasurer. Authorized
investments made pursuant to this section shall be included as cash
balance for purposes of reporting the condition of the account in the
Governor's proposed budget or pursuant to the reporting requirement
contained in subdivision (b) of Section 14556.9 of the Government
Code.
(b) The Department of Finance shall provide notification to the
Joint Legislative Budget Committee and to the transportation policy
committee in each house in the form of a financing plan or pro forma
at least 60 days prior to the initial issuance of any commercial
paper or the issuance of any bonds for purposes of the toll bridge
seismic retrofit program. The financing plan or pro forma shall
include all of the following components:
(1) The amount and form of the debt issuance or issuances, the
term of the issuance or issuances, repayment and security provisions,
the amount and structure of any reserve funds, and all other details
of the proposed financing.
(2) All necessary information with respect to the sources and uses
of funds to construct the projects identified in the toll bridge
seismic retrofit program and the timing of expenditures by each fund
source by fiscal year.
(3) An assessment of funding available for the Bay Area Toll
Authority for authorized projects as a result of the financing.
(c) The Department of Finance is not required to provide
additional notification to the Legislature after meeting the
requirements of subdivision (b) unless additional bonds are issued or
changes are made to existing bonds that alter the content of the
financing plan it submitted under subdivision (b). The Department of
Finance shall notify the Legislature within 60 days of the closing
of a refunding or an advance refunding of an existing bond but is not
required to include this information in its report under subdivision
(b).

(d)
No interest income earned as a result of investments
made pursuant to subdivision (a), or from reserve funds created to
support the financing, shall be used to pay project costs that are in
excess of four billion six hundred thirty-seven million dollars
($4,637,000,000). No reserve funds, other than a required debt
service reserve fund, shall be in place subsequent to the completion
of the seismic retrofit projects.
(d)

(e)
Notwithstanding any other provision of law, the
Department of Finance may establish the accounting and reporting
system used to determine the expenditures, cash needs, and balance of
the account.
SEC. 5. Section 188.10 of the Streets and Highways Code, as
amended by Chapter 596 of the Statutes of 1998, is amended and
renumbered to read:
188.11. (a) The commission, with assistance from the department
and regional agencies, shall maintain a long-term balance of shares,
shortfalls, and surpluses for regional improvement programs.
(b) The balance shall include all of the following:
(1) Shares from the fund estimate for each state transportation
improvement program pursuant to Section 14525 of the Government Code.

(2) Amounts programmed in each state transportation improvement
program pursuant to Section 14529 of the Government Code.
(3) Surpluses or shortfalls due to reservations or advancements
pursuant to subdivision (j) of Section 188.8.
(4) Amounts deducted or added because of changes in project
development costs or a cost increase or savings in the final
engineering estimate or the final right-of-way certification estimate
at the time of allocation for construction, pursuant to subdivisions
(d) and (e) of Section 188.8.
(5) Any supplemental project allocations during or following
construction.
(6) Amounts deducted or added because of amendments to the state
transportation improvement program that add, delete, or change the
scope and cost of regional improvement projects, pursuant to Section
14531 of the Government Code.
(c) The balance through the preceding fiscal year shall be made
available for review by all regional agencies at the time of each
fund estimate, and by not later than August 15 of each year.
(d) The commission, through the fund estimate, shall restore for
the next state transportation improvement program the interregional
improvement program level specified in subdivision (a) of Section
164.
SEC. 5.1. Section 188.53 is added to the Streets and Highways
Code, to read:
188.53. Notwithstanding any other provision of law, it is the
intent of the Legislature that the programming authorization
described in subparagraph (B) of paragraph (8) of subdivision (b) of
Section 188.5 is available for any and all state-owned toll bridge
retrofit projects identified in paragraph (4) of subdivision (a) of
Section 188.5.

SEC. 6. Section 30101 of the Streets and Highways Code is amended
to read:
30101. Except as otherwise provided by statute for the commission
and the Bay Area Toll Authority, the commission shall fix the rates
of toll and other charges for all toll bridges, tubes, or other toll
highway crossings acquired or built pursuant to this chapter.
Notwithstanding this section or any other provision of law, neither
the commission nor the Bay Area Toll Authority may change the seismic
retrofit surcharge described in Section 31010.

SEC. 7. Section 30101.8 of the Streets and Highways Code is
amended to read:
30101.8. (a) The commission may grant toll-free and reduced-rate
passage on all toll bridges under its jurisdiction to class I
vehicles occupied by three or more persons, including the driver, and
to buses. For bridges within the area under the jurisdiction of the
Metropolitan Transportation Commission, the Bay Area Toll Authority
may grant toll-free and reduced-rate passage.
(b) Notwithstanding subdivision (a), tolls on the bridges shall be
maintained at rates sufficient to meet any obligation to the holders
of bonds secured by a pledge of bridge toll revenues, as set forth
in any bond resolution, indenture, or covenants, and the commission
shall revise or eliminate any toll-free or reduced-rate toll schedule
adopted pursuant to subdivision (a) as necessary to ensure
compliance with those obligations.
(c) If the commission grants toll-free and reduced-rate passage
pursuant to subdivision (a), the commission shall also grant the same
toll-free and reduced-rate passage to class I vehicles designed by
the manufacturer to be occupied by no more than two persons,
including the driver, if these vehicles are occupied by two persons,
including the driver.
SEC. 8. Section 30102.5 of the Streets and Highways Code is
repealed.
SEC. 9. Section 30102.5 is added to the Streets and Highways Code,
to read:
30102.5. Consistent with Section 30918, the Bay Area Toll
Authority shall fix the rates of the toll charge, except as provided
in Section 30921, and may grant reduced-rate and toll-free passage on
the state-owned toll bridges within the jurisdiction of the
Metropolitan Transportation Commission.
SEC. 10. Section 30113 of the Streets and Highways Code is amended
to read:
30113. (a) The commission may utilize net revenues from toll
bridges in order to finance research on high technology motion
control devices to be used on the bridges.
(b) If the Metropolitan Transportation Commission allocates toll
bridge net revenues as defined in Section 30884, it may utilize net
revenues from the bridges under its jurisdiction to finance the
research referred to in subdivision (a).
SEC. 11. Article 5 (commencing with Section 30200) of Chapter 1 of
Division 17 of the Streets and Highways Code is repealed.
SEC. 12. Article 7 (commencing with Section 30350) of Chapter 1 of
Division 17 of the Streets and Highways Code is repealed.
SEC. 13. Section 30600 of the Streets and Highways Code is amended
to read:
30600. As used in this article, the following definitions apply:

(a) "Authority" means the Bay Area Toll Authority created pursuant
to Chapter 4.3 (commencing with Section 30950).
(b) "Toll bridge" means that certain bridge across San Francisco
Bay known as the San Francisco-Oakland Bay Bridge and the approaches
thereto.
SEC. 14. Section 30601 of the Streets and Highways Code is amended
to read:
30601. The toll bridge and the approaches to it are a primary
state highway. No law providing that state highways shall be free
highways affects the power or duty of the authority to fix the rates
of toll for the toll bridge or the power and duty of the department
to collect the tolls so fixed by the authority for the use of the
toll bridge.
SEC. 15. Section 30603 of the Streets and Highways Code is
repealed.
SEC. 16. Section 30604 of the Streets and Highways Code is amended
to read:
30604. The department shall at all times cause the toll bridge to
comply with all lawful orders of the United States Secretary of
Defense, the Chief of Engineers of the United States Army, and of any
other governmental agency or authority having jurisdiction thereof.

SEC. 17. Section 30605 of the Streets and Highways Code is
repealed.
SEC. 18. Section 30606 of the Streets and Highways Code is amended
to read:
30606. The cost of operating and maintaining the architectural
lights on the toll bridge shall be paid by the department from toll
bridge revenue funds available for the operation of the toll bridge.

SEC. 19. Section 30608.2 of the Streets and Highways Code is
repealed.
SEC. 20. Section 30750 of the Streets and Highways Code is amended
to read:
30750. As used in this article:
(a) "Carquinez Bridge" means those certain bridge spans on
Interstate Route 80 across the Carquinez Straits near Crockett,
together with any existing or new and additional approaches thereto,
necessary or desirable to connect with the present spans or any
additional spans and the toll collection facilities to serve both the
existing bridge span and any additional spans.
(b) "Benicia-Martinez Bridge" means the toll bridge across the
Carquinez Straits on Interstate Route 680 connecting the Cities of
Benicia and Martinez, together with any existing or new and
additional approaches thereto, necessary or desirable with respect to
the present span or any spans and toll collection facilities for the
bridge and any additional spans.
SEC. 21. Section 30751 of the Streets and Highways Code is amended
to read:
30751. The department is authorized to lay out, acquire, and
construct the Carquinez Bridge and the Benicia-Martinez Bridge and to
make any modification, improvement, and reconstruction of the
bridges as is necessary to adequately handle anticipated traffic and
permit the collection of tolls.
SEC. 22. Section 30752 of the Streets and Highways Code is
repealed.
SEC. 23. Section 30753 of the Streets and Highways Code is
repealed.
SEC. 24. Section 30754 of the Streets and Highways Code is
repealed.
SEC. 25. Section 30755 of the Streets and Highways Code is
repealed.
SEC. 26. Section 30756 of the Streets and Highways Code is
repealed.
SEC. 27. Section 30757 of the Streets and Highways Code is
repealed.
SEC. 28. Section 30760 of the Streets and Highways Code is amended
to read:
30760. As used in this article, "Antioch Bridge" means the
high-level fixed-span bridge across the San Joaquin River near
Antioch together with the approaches thereto and the toll collection
facilities for the bridge.
SEC. 29. Section 30761 of the Streets and Highways Code is amended
to read:
30761. The department is authorized to modify, improve,
reconstruct, and remodel the Antioch Bridge as is necessary to
adequately handle anticipated traffic and permit the collection of
tolls.
SEC. 30. Section 30762 of the Streets and Highways Code is
repealed.
SEC. 31. Section 30762.5 of the Streets and Highways Code is
repealed.
SEC. 32. Section 30763 of the Streets and Highways Code is
repealed.
SEC. 33. Section 30764 of the Streets and Highways Code is
repealed.
SEC. 34. Section 30764.5 of the Streets and Highways Code is
repealed.
SEC. 35. Section 30765 of the Streets and Highways Code is
repealed.
SEC. 36. Section 30766 of the Streets and Highways Code is
repealed.
SEC. 37. Section 30767 of the Streets and Highways Code is
repealed.
SEC. 38. Section 30791 of the Streets and Highways Code is amended
to read:
30791. The department is authorized to modify, improve,
reconstruct, and remodel the San Mateo-Hayward Bridge and the
Dumbarton Bridge as is necessary to adequately handle anticipated
traffic and permit the collection of tolls.
SEC. 39. Section 30791.7 of the Streets and Highways Code is
repealed.
SEC. 40. Section 30792 of the Streets and Highways Code is
repealed.
SEC. 41. Section 30792.2 of the Streets and Highways Code is
repealed.
SEC. 42. Section 30793 of the Streets and Highways Code is
repealed.
SEC. 43. Section 30794 of the Streets and Highways Code is
repealed.
SEC. 44. Section 30795 of the Streets and Highways Code is
repealed.
SEC. 45. Section 30881 is added to the Streets and Highways Code,
to read:
30881. "Authority" means the Bay Area Toll Authority.
SEC. 46. Section 30884 of the Streets and Highways Code is amended
to read:
30884. (a) "Net transit revenues" means those revenues of the San
Francisco-Oakland Bay Bridge, the San Mateo-Hayward Bridge, and the
Dumbarton Bridge determined by the authority as derived from the toll
increase instituted by the commission in 1977. The calculation of
the amount of the net transit revenues is equal to 16 percent of the
revenue generated each year from the collection of the base toll at
its level in existence for the 2001-02 fiscal year on the San
Francisco-Oakland Bay Bridge, the San Mateo-Hayward Bridge, and the
Dumbarton Bridge.
(b) The net transit revenues are subordinate to all of the
following:
(1) The obligation to pay necessary costs of toll collection
operation.
(2) The obligations of the authority under any bond resolution or
indenture applicable to the toll bridges issued by the authority.
(3) The obligation to repay any advances made to the department
from any other source for studies and work preliminary to the
financing of any toll bridge project.
SEC. 47. Section 30885 of the Streets and Highways Code is amended
to read:
30885. "Toll bridge" means any state-owned bridge, including the
approaches to the toll bridge from the nearest highway that is not
for the exclusive use of toll bridge traffic, located within the
region under the jurisdiction of the commission.
SEC. 48. Section 30886 of the Streets and Highways Code is
repealed.
SEC. 49. Section 30887 of the Streets and Highways Code is amended
to read:
30887. The authority may increase the toll rates specified in the
adopted toll schedule only if this is necessary in order to enable
the authority to meet its obligations under any bond resolution or
indenture.
SEC. 50. Section 30888 of the Streets and Highways Code is
repealed.
SEC. 51. Section 30889 of the Streets and Highways Code is
repealed.
SEC. 52. Section 30889.3 of the Streets and Highways Code is
amended to read:
30889.3. (a) The authority may grant toll-free passage or may
adopt a reduced-rate schedule of tolls for vehicles occupied by three
or more persons, including the driver, and for buses crossing the
bridges. The reduced-rate toll for those vehicles shall be
determined by the authority in consultation with the department, and
may consist of reduced daily tolls or payment in lieu of daily tolls.
If the authority grants toll-free passage or adopts a reduced-rate
toll schedule under this subdivision, it shall grant toll-free
passage or adopt the same schedule for class I vehicles designed by
the manufacturer to be occupied by not more than two persons,
including the driver, if these vehicles are occupied by two persons,
including the driver.
(b) Tolls on the bridges shall be maintained at rates sufficient
to meet any covenants or obligations to the
holders of bonds secured by the bridge toll revenues, as set forth in
any bond resolution or indenture or obligation contained in bonds
issued pursuant to the bond resolution or indenture, and the
authority shall revise or eliminate the reduced-rate toll schedule
adopted pursuant to subdivision (a) as necessary to ensure compliance
with those covenants and obligations.
(c) The authority may also vary, as it deems advisable, the toll
rates applicable to a vehicle operated on the bridges for the
carriage of passengers by any municipal or public corporation,
transit district, public utility district, political subdivision, or
by a transportation company operating under a certificate of public
convenience and necessity. The authority shall consult with the
affected operators prior to adopting any toll rate pursuant to this
subdivision.
SEC. 53. Section 30890 of the Streets and Highways Code is
repealed.
SEC. 54. Section 30890 is added to the Streets and Highways Code,
to read:
30890. The authority shall transfer the net transit revenues, as
defined in Section 30884, to the commission on a regularly scheduled
basis as set forth in the authority's annual budget resolution.
SEC. 55. Section 30891 of the Streets and Highways Code is amended
to read:
30891. The commission may retain, for its cost in administering
this article, an amount not to exceed one-quarter of 1 percent of the
revenues allocated by it pursuant to Section 30892 and of the
revenues allocated by it pursuant to Sections 30913 and 30914.
SEC. 56. Section 30894 of the Streets and Highways Code is amended
to read:
30894. The commission shall adopt and distribute procedures for
the submission of applications for funding and allocation of funds.
Only those applications for projects that will implement the
commission's transit transportation
planning objectives in the vicinity of toll bridges as set forth in
its adopted regional transportation plan or the commission's
objectives with respect to ferry systems shall be approved.
SEC. 57. Section 30896 of the Streets and Highways Code is
repealed.
SEC. 58. Section 30910 of the Streets and Highways Code is amended
to read:
30910. (a) The state-owned toll bridges within the geographic
jurisdiction of the Metropolitan Transportation Commission are the
following bridges:
(1) Antioch Bridge.
(2) Benicia-Martinez Bridge.
(3) Carquinez Bridges.
(4) Dumbarton Bridge.
(5) Richmond-San Rafael Bridge.
(6) San Mateo-Hayward Bridge.
(7) San Francisco-Oakland Bay Bridge.
(b) The Antioch Bridge, the Benicia-Martinez Bridge, the Carquinez
Bridges, and the Richmond-San Rafael Bridge are at times classified
as the northern bridge unit, and the Dumbarton Bridge, the San
Mateo-Hayward Bridge, and the San Francisco-Oakland Bay Bridge are at
times classified as the southern bridge unit. For purposes of
operation, rehabilitation, maintenance, and financing, all of the
bridges are classified as a single enterprise.
SEC. 58.5. Section 30910.5 is added to the Streets and Highways
Code, to read:
30910.5. "Authority" means the Bay Area Toll Authority.
SEC. 59. Section 30911 of the Streets and Highways Code is
repealed.
SEC. 60. Section 30911 is added to the Streets and Highways Code,
to read:
30911. (a) The authority shall control and maintain the Bay Area
Toll Account and other subaccounts it deems necessary and appropriate
to document toll revenue and operating expenditures in accordance
with generally accepted accounting principles.
(b) (1) After the requirements of any bond resolution or indenture
of the authority for any outstanding revenue bonds have been met,
the authority shall transfer on a regularly scheduled basis as set
forth in the authority's annual budget resolution, the revenues
defined in subdivision (b) of Section 30913 and Section 30914 to the
commission. The funds transferred
are continuously appropriated to the commission
to expend for the purposes specified in subdivision (b) of Section
30913 and Section 30914.
(2) For the purposes of paragraph (1), the revenues defined in
subdivision (b) of Section 30913 and subdivision (a) of Section 30914
include all revenues accruing since January 1, 1989.
SEC. 61. Section 30912 of the Streets and Highways Code is amended
to read:
30912. (a) Revenue derived from tolls on all bridges may be
expended, subject to the adopted annual budget of the authority, for
any of the following purposes:
(1) Safety and operational costs, including toll collection.
(2) Costs of bridge construction and improvement projects,
including debt service and sinking fund payments on bonds issued by
the authority for those projects. The repayment of any advances from
other state funds may be made from the toll revenue or bond
proceeds.
(b) The revenue determined by the authority as derived from the
toll increase approved in 1988, and authorized by Section 30917 for
class I vehicles on the San Francisco-Oakland Bay Bridge shall be
used, to the extent specified in paragraph (4) of subdivision (a) of
Section 30914, for the construction of rail extensions specified in
Section 30914 or for payment of the principal of, and interest on,
bonds issued for those projects, including payments into a sinking
fund maintained for that purpose.
(c) Maintenance of the bridges specified in Section 30910 shall be
funded in accordance with procedures for funding maintenance of the
southern bridge unit during the 1986-87 fiscal year.
SEC. 62. 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.
(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:


Bridge 1988 Increase
(Two-axle vehicles)
Antioch Bridge $0.50
Benicia-Martinez Bridge .60
Carquinez Bridge .60
Dumbarton Bridge .25
Richmond-San Rafael Bridge .00
San Francisco-Oakland Bay Bridge .25
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.
(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.
SEC. 63. Section 30914 of the Streets and Highways Code is
repealed.
SEC. 64. Section 30914 is added to the Streets and Highways Code,
to read:
30914. (a) In addition to any other authorized expenditures of
toll bridge revenues, the following major projects may be funded from
toll revenues of all bridges:
(1) Dumbarton Bridge: Improvement of the western approaches from
Route 101 if affected local governments are involved in the planning.

(2) San Mateo-Hayward Bridge and approaches: Widening of the
bridge to six lanes, construction of rail transit capital
improvements on the bridge structure, and improvements to the Route
92/Route 880 interchange.
(3) Construction of West Grand connector or an alternate project
designed to provide comparable benefit by reducing vehicular traffic
congestion on the eastern approaches to the San Francisco-Oakland Bay
Bridge. Affected local governments shall be involved in the
planning.
(4) Not less than 90 percent of the revenues determined by the
authority as derived from the toll increase approved in 1988 for
class I vehicles on the San Francisco-Oakland Bay Bridge authorized
by Section 30917 shall be used exclusively for rail transit capital
improvements designed to reduce vehicular traffic congestion on that
bridge. This amount shall be calculated as 21 percent of the revenue
generated each year by the collection of the base toll at the level
established by the 1988 increase on the San Francisco-Oakland Bay
Bridge.
(b) Notwithstanding any funding request for the transbay bus
terminal pursuant to Section 31015, the Metropolitan Transportation
Commission shall allocate toll bridge revenues in an annual amount
not to exceed three million dollars ($3,000,000), plus a 3.5-percent
annual increase, to the department or to the Transbay Joint Powers
Authority after the department transfers the title of the Transbay
Terminal Building to that entity, for operation and maintenance
expenditures. This allocation shall be payable from funds
transferred by the Bay Area Toll Authority. This transfer of funds
is subordinate to any obligations of the authority, now or hereafter
existing, having a statutory or first priority lien against the toll
bridge revenues. The first annual 3.5 percent increase shall be made
on July 1, 2004. The transfer is further subject to annual
certification by the department or the Transbay Joint Powers
Authority that the total Transbay Terminal Building operating revenue
is insufficient to pay the cost of operation and maintenance without
the requested funding.
(c) If the voters approve a toll increase in 2004 pursuant to
Section 30921, the authority shall, consistent with the provisions of
subdivisions (d) and (f), fund the projects described in this
subdivision and in subdivision (d) that shall collectively be known
as the Regional Traffic Relief Plan by bonding or transfers to the
Metropolitan Transportation Commission. These projects have been
determined to reduce congestion or to make improvements to travel in
the toll bridge corridors, from toll revenues of all bridges:
(1) BART/MUNI Connection at Embarcadero and Civic Center Stations.
Provide direct access from the BART platform to the MUNI platform
at the above stations and equip new fare gates that are TransLink
ready. Three million dollars ($3,000,000). The project sponsor is
BART.
(2) MUNI Metro Third Street Light Rail Line. Provide funding for
the surface and light rail transit and maintenance facility to
support MUNI Metro Third Street Light Rail service connecting to
Caltrain stations and the E-Line waterfront line. Thirty million
dollars ($30,000,000). The project sponsor is MUNI.
(3) MUNI Waterfront Historic Streetcar Expansion. Provide funding
to rehabilitate historic street cars and construct trackage and
terminal facilities to support service from the Caltrain Terminal,
the Transbay Terminal, and the Ferry Building, and connecting the
Fisherman's Wharf and northern waterfront. Ten million dollars
($10,000,000). The project sponsor is MUNI.
(4) East to West Bay Commuter Rail Service over the Dumbarton Rail
Bridge. Provide funding for the necessary track and station
improvements and rolling stock to interconnect the BART and Capitol
Corridor at Union City with Caltrain service over the Dumbarton Rail
Bridge, and interconnect and provide track improvements for the ACE
line with the same Caltrain service at Centerville. Provide a new
station at Sun Microsystems in Menlo Park. One hundred thirty-five
million dollars ($135,000,000). The project is jointly sponsored by
the San Mateo County Transportation Authority, Capitol Corridor, the
Alameda County Congestion Management Agency, and the Alameda County
Transportation Improvement Authority.
(5) Vallejo Station. Construct intermodal transportation hub for
bus and ferry service, including parking structure, at site of
Vallejo's current ferry terminal. Twenty-eight million dollars
($28,000,000). The project sponsor is the City of Vallejo.
(6) Solano County Express Bus Intermodal Facilities. Provide
competitive grant fund source, to be administered by BATA. Eligible
projects are Curtola Park and Ride, Benicia Intermodal Facility,
Fairfield Transportation Center and Vacaville Intermodal Station.
Priority to be given to projects that are fully funded, ready for
construction, and serving transit service that operates primarily on
existing or fully funded high-occupancy vehicle lanes. Twenty
million dollars ($20,000,000). The project sponsor is Solano
Transportation Authority.
(7) Solano County Corridor Improvements near Interstate
80/Interstate 680 Interchange. Provide funding for improved mobility
in corridor based on recommendations of joint study conducted by the
Department of Transportation and the Solano Transportation
Authority. Cost-effective transit infrastructure investment or
service identified in the study shall be considered a high priority.
One hundred million dollars ($100,000,000). The project sponsor is
Solano Transportation Authority.
(8) Interstate 80: Eastbound High-Occupancy Vehicle (HOV) Lane
Extension from Route 4 to Carquinez Bridge. Construct HOV-lane
extension. Fifty million dollars ($50,000,000). The project sponsor
is the Department of Transportation.
(9) Richmond Parkway Transit Center. Construct parking structure
and associated improvements to expand bus capacity. Sixteen million
dollars ($16,000,000). The project sponsor is Alameda-Contra Costa
Transit District, in coordination with West Contra Costa
Transportation Advisory Committee, Western Contra Costa Transit
Authority, City of Richmond, and the Department of Transportation.
(10) Sonoma-Marin Area Rail Transit District (SMART) Extension to
Larkspur or San Quentin. Extend rail line from San Rafael to a ferry
terminal at Larkspur or San Quentin. Thirty-five million dollars
($35,000,000). Up to five million dollars ($5,000,000) may be
used to study, in collaboration with the Water Transit Authority, the
potential use of San Quentin property as an intermodal water transit
terminal.
The project sponsor is SMART.
(11) Greenbrae Interchange/Larkspur Ferry Access Improvements.
Provide enhanced regional and local access around the Greenbrae
Interchange to reduce traffic congestion and provide multimodal
access to the Richmond-San Rafael Bridge and Larkspur Ferry Terminal
by constructing a new full service diamond interchange at Wornum
Drive south of the Greenbrae Interchange, extending a multiuse
pathway from the new interchange at Wornum Drive to East Sir Francis
Drake Boulevard and the Cal Park Hill rail right-of-way, adding a new
lane to East Sir Francis Drake Boulevard and rehabilitating the Cal
Park Hill Rail Tunnel and right-of-way approaches for bicycle and
pedestrian access to connect the San Rafael Transit Center with the
Larkspur Ferry Terminal. Thirty-five
Sixty-five
million dollars ($35,000,000)
($65,000,000) . The project sponsor is Marin County
Congestion Management Agency.
(12) Direct High-Occupancy Vehicle (HOV) lane connector from
Interstate 680 to the Pleasant Hill or Walnut Creek BART stations or
in close proximity to either station or as an extension of the
southbound Interstate 680 High-Occupancy Vehicle Lane through the
Interstate 680/State Highway Route 4 interchange from North Main in
WalnutCreek to Livorna Road. The County Connection shall utilize up
to one million dollars ($1,000,000) of the funds described in this
paragraph to develop options and recommendations for providing
express bus service on the Interstate 680 High-Occupancy Vehicle Lane
south of the Benicia Bridge in order to connect to BART. Upon
completion of the plan, the Contra Costa Transportation Authority
shall adopt a preferred alternative provided by the County Connection
plan for future funding. Following adoption of the preferred
alternative, the remaining funds may be expended either to fund the
preferred alternative or to extend the high-occupancy vehicle lane as
described in this paragraph. Fifteen million dollars ($15,000,000).
The project is sponsored by the Contra Costa Transportation
Authority.
(13) Rail Extension to East Contra Costa/E-BART. Extend BART from
Pittsburg/Bay Point Station to Byron in East Contra Costa County.
Ninety-six million dollars ($96,000,000). Project funds may only be
used if the project is in compliance with adopted BART policies with
respect to appropriate land use zoning in vicinity of proposed
stations. The project is jointly sponsored by BART and Contra Costa
Transportation Authority.
(14) Capital Corridor Improvements in Interstate 80/Interstate 680
Corridor. Fund track and station improvements, including the Suisun
Third Main Track and new Fairfield Station. Twenty-five million
dollars ($25,000,000). The project sponsor is Capital Corridor Joint
Powers Authority and the Solano Transportation Authority.
(15) Central Contra Costa Bay Area Rapid Transit (BART) Crossover.
Add new track before Pleasant Hill BART Station to permit BART
trains to cross to return track towards San Francisco. Twenty-five
million dollars ($25,000,000). The project sponsor is BART.
(16) Benicia-Martinez Bridge: New Span. Provide partial funding
for completion of new five-lane span between Benicia and Martinez to
significantly increase capacity in the I-680 corridor. Fifty million
dollars ($50,000,000). The project sponsor is the Bay Area Toll
Authority.
(17) Regional Express Bus North. Competitive grant program for
bus service in Richmond-San Rafael Bridge, Carquinez,
Benicia-Martinez and Antioch Bridge corridors. Provide funding for
park and ride lots, infrastructure improvements, and rolling stock.
Eligible recipients include Golden Gate Bridge Highway and
Transportation District, Vallejo Transit, Napa VINE, Fairfield-Suisun
Transit, Western Contra Costa Transit Authority, Eastern Contra
Costa Transit Authority, and Central Contra Costa Transit Authority.
The Golden Gate Bridge Highway and Transportation District shall
receive a minimum of one million six hundred thousand dollars
($1,600,000). Napa VINE shall receive a minimum of two million four
hundred thousand dollars ($2,400,000). Twenty million dollars
($20,000,000). The project sponsor is the Metropolitan
Transportation Commission.
(18) TransLink. Integrate the bay area's regional smart card
technology, TransLink, with operator fare collection equipment and
expand system to new transit services. Twenty-two million dollars
($22,000,000). The project sponsor is the Metropolitan Transportation
Commission.
(19) Real-Time Transit Information. Provide a competitive grant
program for transit operators for assistance with implementation of
high-technology systems to provide real-time transit information to
riders at transit stops or via telephone, wireless, or Internet
communication. Priority shall be given to projects identified in the
commission's connectivity plan adopted pursuant to subdivision (d)
of Section 30914.5. Twenty million dollars ($20,000,000). The funds
shall be administered by the Metropolitan Transportation Commission.

(20) Safe Routes to Transit: Plan and construct bicycle and
pedestrian access improvements in close proximity to transit
facilities. Priority shall be given to those projects that best
provide access to regional transit services. Twenty million
dollars ($20,000,000).
Twenty-two million five
hundred thousand dollars ($22,500,000). City Car Share shall receive
two million five hundred thousand dollars ($2,500,000) to expand its
program within approximately one-quarter mile of transbay regional
transit terminals or stations.
The project is jointly sponsored
by the East Bay Bicycle Coalition and the Transportation and Land
Use Coalition. These sponsors must identify a public agency
cosponsor for purposes of specific project fund allocations.
(21) BART Tube Seismic Strengthening. Add seismic capacity to
existing BART tube connecting the east bay with San Francisco. One
hundred forty-three million dollars ($143,000,000). The project
sponsor is BART.
(22) Transbay Terminal/Downtown Caltrain Extension. A new
Transbay Terminal at First and Mission Streets in San Francisco
providing added capacity for transbay, regional, local, and intercity
bus services, the extension of Caltrain rail services into the
terminal, and accommodation of a future high speed passenger rail
line to the terminal and eventual rail connection to the east bay.
Eligible expenses include project planning, design and engineering,
construction of a new terminal and its associated ramps and tunnels,
demolition of existing structures, design and development of a
temporary terminal, property and right-of-way acquisitions required
for the project, and associated project-related administrative
expenses. A bus- and train-ready terminal facility, including
purchase and acquisition of necessary right
rights
of way for the terminal, ramps, and rail extension, is
the first priority for toll funds for the Transbay Terminal/Downtown
Caltrain Extension Project. The temporary terminal operation shall
not exceed five years. One hundred fifty million dollars
($150,000,000). The project sponsor is the Transbay Joint Powers
Authority.
(23) Oakland Airport Connector. New transit connection to link
BART, Capitol Corridor and AC Transit with Oakland Airport. The Port
of Oakland shall provide a full funding plan for the connector.
Thirty million dollars ($30,000,000). The project sponsors are the
Port of Oakland and BART.
(24) AC Transit Enhanced Bus-Phase 1 on Telegraph Avenue,
International Boulevard, and East 14th Street (Berkeley-Oakland-San
Leandro). Develop enhanced bus service on these corridors, including
bus bulbs, signal prioritization, new buses, and other improvements.
Priority of investment shall improve the AC connection to BART on
these corridors. Sixty-five million dollars ($65,000,000). The
project sponsor is AC Transit.
(25) Commute Ferry Service for Alameda/Oakland/Harbor Bay.
Purchase two vessels for ferry services between Alameda and Oakland
areas and San Francisco. Second vessel funds to be released upon
demonstration of appropriate terminal locations, new transit oriented
development, adequate parking, and sufficient landside feeder
connections to support ridership projections. Twelve million dollars
($12,000,000). The project sponsor is Water Transit Authority. If
the Water Transit Authority demonstrates to the Metropolitan
Transportation Commission that it has secured alternative funding for
the two vessel purchases described in this paragraph, the funds may
be used for terminal improvements.
(26) Commute Ferry Service for Berkeley/Albany. Purchase two
vessels for ferry services between the Berkeley/Albany Terminal and
San Francisco. Parking access and landside feeder connections must
be sufficient to support ridership projections. Twelve million
dollars ($12,000,000). The project sponsor is Water Transit
Authority. If the Water Transit Authority demonstrates to the
Metropolitan Transportation Commission that it has secured
alternative funding for the two vessel purchases described in this
paragraph, the funds may be used for terminal improvements. If the
Water Transit Authority does not have an entitled terminal site
within the Berkeley/Albany catchment area by 2010 that meets its
requirements, the funds described in this paragraph and the operating
funds described in paragraph (7) of subdivision (d) shall be
transferred to another site in the east bay. The City of Richmond
shall be given first priority to receive this transfer of funds if it
has met the planning milestones identified in its special study
developed pursuant to paragraph (28).
(27) Commute Ferry Service for South San Francisco. Purchase two
vessels for ferry services to the peninsula. Parking access and
landside feeder connections must be sufficient to support ridership
projections. Twelve million dollars ($12,000,000). The project
sponsor is Water Transit Authority. If the Water Transit Authority
demonstrates to the Metropolitan Transportation Commission that it
has secured alternative funding for the two vessel purchases
described in this paragraph, the funds may be used for terminal
improvements.
(28) Water Transit Facility Improvements, Spare Vessels, and
Environmental Review Costs. Provide two backup vessels for Water
Transit Authority services, expand berthing capacity at the Port of
San Francisco, and expand environmental studies and design for
eligible locations. Forty-four million dollars
($44,000,000)
Forty-eight million dollars
($48,000,000)
. The project sponsor is Water Transit
Authority. Up to one million dollars ($1,000,000) of the funds
described in this paragraph shall be made available for the Water
Transit Authority to study accelerating development and other
milestones that would potentially increase ridership at the City of
Richmond ferry terminal.
(29) Regional Express Bus Service for San Mateo, Dumbarton, and
Bay Bridge Corridors. Expand park and ride lots, improve HOV access,
construct ramp improvements, and purchase rolling stock. Twenty-two
million dollars ($22,000,000). The project sponsors are AC Transit
and Alameda County Congestion Management Agency.
(30) I-880 North Safety Improvements. Reconfigure various ramps
on I-880 and provide appropriate mitigations between 29th Avenue and
16th Avenue. Ten million dollars ($10,000,000). The project sponsors
are Alameda County Congestion Management Agency, City of Oakland,
and Department of Transportation.
(31) BART Warm Springs Extension as the first phase of
the extension of BART to the Silicon Valley. Extension of the
existing
. Extension of the existing BART
system from Fremont to Warm Springs in southern Alameda
County. Forty-five million dollars ($45,000,000). The

Alameda County. Ninety-five million dollars ($95,000,000). Up to
ten million dollars ($10,000,000) shall be used for grade separation
work in the City of Fremont necessary to extend BART. The project
would facilitate a future rail service extension to the Silicon
Valley. The
project sponsor is BART.
(32) I-580 (Tri Valley) Rapid Transit Corridor Improvements.
Provide rail or High-Occupancy Vehicle lane direct connector to
Dublin BART and other improvements on I-580 in Alameda County for use
by express buses. Sixty-five million dollars ($65,000,000). The
project sponsor is Alameda County Congestion Management Agency.
(33) Regional Rail Master Plan. Provide planning funds for
integrated regional rail study pursuant to subdivision (f) of Section
30914.5. Three Six million five
hundred thousand dollars ($3,500,000)
($6,500,000)
. The project sponsors are Caltrain and BART.
(34) Integrated Fare Structure Program. Provide planning funds
for the development of zonal monthly transit passes pursuant to
subdivision (e) of Section 30914.5. One million five hundred
thousand dollars ($1,500,000). The project sponsor is the Translink
Consortium.
(35) Transit Commuter Benefits Promotion. Marketing program to
promote tax-saving opportunities for employers and employees as
specified in Section 132(f)(3) of the Internal Revenue Code. Goal is
to increase the participation rate of employers offering employees a
tax-free benefit to commute to work by transit. The project sponsor
is the Metropolitan Transportation Commission. Five million dollars
($5,000,000).
(36) Caldecott Tunnel Improvements. Provide funds to plan and
construct a fourth bore at the Caldecott Tunnel between Contra Costa
and Alameda counties. The fourth bore will be a two-lane bore with a
shoulder or shoulders north of the current three bores. The County
Connection shall study all feasible alternatives to increase transit
capacity in the westbound corridor of State Highway Route 24 between
State Highway Route 680 and the Caldecott Tunnel, including the study
of the use of an express lane, high occupancy vehicle lane, and an
auxiliary lane. The cost of the study shall not exceed five hundred
thousand dollars ($500,000) and shall be completed not later than
January 15, 2006. Fifty million five hundred thousand dollars
($50,500,000). The project sponsor is the Contra Costa
Transportation Authority.

(d) Not more than 38 percent of the revenues generated from the
toll increase shall be made available annually for the purpose of
providing operating assistance for transit services as set forth in
the authority's annual budget resolution. The funds shall be made
available to the provider of
the transit services subject to the performance measures described in
Section 30914.5. If the funds cannot be obligated for operating
assistance consistent with the performance measures, these funds
shall be obligated for other operations consistent with this chapter.

Except for operating programs that do not have planned funding
increases and subject to the 38-percent limit on total operating cost
funding in any single year, following the first year of scheduled
operations, an escalation factor, not to exceed 1.5 percent per year,
shall be added to the operating cost funding through fiscal year
2015-16, to partially offset increased operating costs. The
escalation factors shall be contained in the operating agreements
described in Section 30914.5. Subject to the limitations of this
paragraph, the Metropolitan Transportation Commission may annually
fund the following operating programs as another component of the
Regional Traffic Relief Plan:
(1) Golden Gate Express Bus Service over the Richmond Bridge
(Route 40). Two million one hundred thousand dollars ($2,100,000).
(2) Napa Vine Service terminating at the Vallejo Intermodal
Terminal. Three hundred ninety thousand dollars ($390,000).
(3) Regional Express Bus North Pool serving the Carquinez and
Benicia Bridge Corridors. Three million four hundred thousand
dollars ($3,400,000).
(4) Regional Express Bus South Pool serving the Bay Bridge, San
Mateo Bridge, and Dumbarton Bridge Corridors. Six million five
hundred thousand dollars ($6,500,000).
(5) Dumbarton Rail. Five million five hundred thousand
($5,500,000).
(6) Water Transit Authority, Alameda/Oakland/Harbor Bay. A
portion of the operating funds may be dedicated to landside transit
operations. Six million four hundred thousand dollars ($6,400,000).

(7) Water Transit Authority, Berkeley/Albany. A portion of the
operating funds may be dedicated to landside transit operations.
Three million two hundred thousand dollars ($3,200,000).
(8) Water Transit Authority, South San Francisco. A portion of
the operating funds may be dedicated to landside operations. Three
million dollars ($3,000,000).
(9) Vallejo Ferry. Two million seven hundred thousand dollars
($2,700,000).
(10) Owl Bus Service on BART Corridor. One million eight hundred
thousand dollars ($1,800,000).
(11) MUNI Metro Third Street Light Rail Line. Two million five
hundred thousand dollars ($2,500,000) without escalation.
(12) AC Transit Enhanced Bus Service on Telegraph Avenue,
International Boulevard, and East 14th Street in Berkeley-Oakland-San
Leandro. Three million dollars ($3,000,000) without escalation.
(13) TransLink, three-year operating program. Twenty million
dollars ($20,000,000) without escalation.
(14) Water Transit Authority, regional planning and operations.
Three million dollars ($3,000,000) without escalation.
(e) For all projects authorized under subdivision (c), the
project sponsor shall submit an initial project report to the
Metropolitan Transportation Commission before July 1, 2004. This
report shall include all information required to describe the project
in detail, including the status of any environmental documents
relevant to the project, additional funds required to fully fund the
project, the amount, if any, of funds expended to date, and a summary
of any impediments to the completion of the project. This report,
or an updated report, shall include a detailed financial plan and
shall notify the commission if the project sponsor will request toll
revenue within the subsequent 12 months. The project sponsor shall
update this report as needed or requested by the commission. No
funds shall be allocated by the commission for any project authorized
by subdivision (c) until the project sponsor submits the initial
project report, and the report is reviewed and approved by the
commission.
If multiple project sponsors are listed for projects listed in
subdivision (c), the commission shall identify a lead sponsor in
coordination with all identified sponsors, for purposes of allocating
funds. For any projects authorized under subdivision (c), the
commission shall have the option of requiring a memorandum of
understanding between itself and the project sponsor or sponsors that
shall include any specific requirements that must be met prior to
the allocation of funds provided under subdivision (c).
(f) The Metropolitan Transportation Commission shall annually
assess the status of programs and projects and shall allocate a
portion of funding made available under Section 30921 or 30958 for
public information and advertising to support the services and
projects identified in subdivisions (c) and (d). If an operating
program or project cannot achieve its performance objectives
described in subdivision (a) of Section 30914.5 or if a program or
project cannot be completed or cannot continue due to delivery or
financing obstacles making the completion or continuation of the
program or project unrealistic, the commission shall consult with the
program or the project sponsor. After consulting with the sponsor,
the commission shall hold a public hearing concerning the project.
After the hearing, the commission may vote to modify the program or
the project's scope, decrease its level of funding, or to reassign
all of the funds to another or an additional regional transit
program or project within the same corridor. If a program or
project does not meet the required performance measures, the
commission shall give the sponsor a time certain to achieve the
performance measures or have its funding reassigned.
(g) If the voters approve a toll increase pursuant to Section
30921, the authority shall within 24 months of the election date,
include the projects in a long-range plan that are consistent with
the commission's findings required by this section and Section
30914.5. The authority shall update its long-range plan as required
to maintain its viability as a strategic plan for funding projects
authorized by this section. The authority shall by January 1, 2007,
submit its updated long-range plan to the transportation policy
committee of each house of the Legislature for review.
(h) If the voters approve a toll increase pursuant to Section
30921, and if additional funds from this toll increase are available
following the funding obligations of subdivisions (c) and (d), the
authority may set aside a reserve to fund future rolling stock
replacement to enhance the sustainability of the services enumerated
in subdivision (d). The authority shall, by January 1, 2020, submit
a 20-year toll bridge expenditure plan to the Legislature for
adoption. This expenditure plan shall have, as its highest priority,
replacement of transit vehicles purchased pursuant to subdivision
(c).
SEC. 65. Section 30914.5 is added to the Streets and Highways
Code, to read:
30914.5. (a) Prior to the allocation of revenue for transit
operating assistance under subdivision (d) of Section 30914, the
Metropolitan Transportation Commission shall adopt performance
measures related to fare-box recovery, ridership, and other
performance measures as needed. The performance measures shall be
developed in consultation with the affected transit operators and the
commission's advisory council.
(b) The Metropolitan Transportation Commission shall execute an
operating agreement with the sponsors of the projects described in
subdivision (d) of Section 30914. This agreement shall include, at a
minimum, a fully funded operating plan that conforms to and is
consistent with the adopted performance measures. The agreement
shall also include a schedule of projected fare revenues or other
operating revenues to indicate that the service is viable in the
near-term and is expected to meet the adopted performance measures in
future years. For any individual project sponsor, this operating
agreement may include additional requirements, as determined by the
commission, to be met prior to the allocation of transit assistance
under subdivision (d) of Section 30914.
(c) Prior to the annual allocation of transit operating assistance
funds by the Metropolitan Transportation Commission pursuant to
subdivision (d) of Section 30914, project sponsors shall present an
audited annual report to the commission that contains audited
financial information, including an opinion of the independent
auditors on the status and cost of the project and its compliance
with the approved performance measures.
(d) The Metropolitan Transportation Commission shall adopt a
regional transit connectivity plan by December 1, 2005. The
connectivity plan shall be incorporated into the commission's Transit
Coordination Implementation Plan pursuant to Section 66516.5 of the
Government Code. The connectivity plan shall require operators to
comply with the plan utilizing commission authority pursuant to
Section 66516.5 of the Government Code. The commission shall consult
with the Partnership Transit Coordination Council in developing a
plan that identifies and evaluates opportunities for improving
transit connectivity and shall include, but not be limited to, the
following components:
(1) A network of key transit hubs connecting regional rapid
transit services to one another, and to feeder transit services.
"Regional rapid transit" means long-haul transit service that crosses
county lines, and operates mostly in dedicated rights-of-way,
including freeway high-occupancy vehicle lanes, crossing a bridge, or
on the bay. The identified transit hubs shall operate either as a
timed transfer network or as pulsed hub connections, providing
regularly scheduled connections between two or more transit lines.
(2) Physical infrastructure and right-of-way improvements
necessary to improve system reliability and connections at transit
hubs. Physical infrastructure improvements may include, but are not
limited to, improved rail-to-rail transfer facilities, including
cross-platform transfers, and intermodal transit improvements that
facilitate rail-to-bus, rail-to-ferry, ferry-to-ferry, ferry-to bus,
and bus-to-bus transfers. Capital improvements identified in the
plan shall be eligible for funding in the commission's regional
transportation plan.
(3) Regional standards and procedures to ensure maximum
coordination of schedule connections to minimize transfer times
between transit lines at key transit hubs, including, but not limited
to, the following:
(A) Policies and procedures for improved fare collection.
(B) Enhanced trip-planning services, including Internet-based
programs, telephone information systems, and printed schedules.
(C) Enhanced schedule coordination through the implementation of
real-time transit-vehicle location systems that facilitate
communication between systems and result in improved timed transfers
between routes.
(D) Performance measures and data collection to monitor the
performance of the connectivity plan.
The connectivity plan shall focus on, but not be limited to,
feeder transit lines connecting to regional rapid transit services,
and the connection of regional rapid transit services to one another.
The connectivity plan shall be adopted following a Metropolitan
Transportation Commission public hearing at least 60 days prior to
adoption. The commission shall adopt performance measures and
collect appropriate data to monitor the performance of the
connectivity plan. The plan shall be evaluated every three years by
the commission as part of the update to its regional transportation
plan. No agency shall be eligible to receive funds under this
section unless the agency is a participant operator in the commission'
s regional transit connectivity plan.
The provisions of this subdivision shall only be effective if the
voters approve the toll increase as set forth in Section 30921, and
the expenditures incurred by the Metropolitan Transportation
Commission up to five hundred thousand dollars ($500,000) that are
related to the requirements of this subdivision, including any study
and , shall be reimbursed from toll revenues
identified in paragraph (33) of subdivision (c) of Section 30914.
(e) The TransLink Consortium, per the TransLink Interagency
Participation Agreement, shall by July 1, 2007, develop a plan for an
integrated fare program covering all regional rapid transit trips
funded in full or in part by this section. "Regional rapid transit"
means long-haul transit services that cross county lines, and operate
mostly in dedicated rights-of-way, including freeway high-occupancy
vehicle lanes, crossing a bridge, or on the bay. Interregional rail
services, originating or terminating from outside the bay area, shall
not be considered regional rapid transit. The purpose of the
integrated fare program is to encourage greater use of the region's
transit network by making it easier and less costly for transit
riders whose regular commute involves multizonal travel and may
involve the transfer between two or more transit agencies, including
regional-to-regional and regional-to-local transfers. The integrated
fare program shall include a zonal fare system for the sole purpose
of creating a monthly zonal pass (monthly pass), allowing for
unlimited or discounted fares for transit riders making a minimum
number of monthly transit trips between two or more zones. The
number of minimum trips shall be established by the plan. The
integrated fare program shall not apply to fare structures that are
not purchased on a monthly basis. For the purposes of these zonal
fares, geographic zones shall be created in the bay area. To the
extent practical, zone boundaries for overlapping systems shall be in
the same places and shall correspond to the boundaries of the local
transit service areas. A regional rapid transit zone may cover more
than one local service area, or may subdivide an existing local
service area. The monthly pass shall be created in at least the
following two forms:
(1) For the use of interzonal regional rapid transit trips without
local transit discounts.
(2) For the use of interzonal regional rapid transit trips with
local transit discounts. The plan may recommend the elimination of
existing transit pass arrangements to simplify the marketing of the
monthly pass. The integrated fare program shall establish a
monitoring program to evaluate the impact of the integrated fare
program on the operating finances of the participating agencies. The
integrated fare program shall be adjusted as necessary to ensure
that the program does not jeopardize the viability of local or
regional rapid transit routes impacted by the program, and to the
extent feasible, provide an equitable revenue sharing arrangement
among the participating agencies. This subdivision shall only be
effective if the voters approve the toll increase as set forth in
Section 30921, and any expenditures related to the implementation of
this subdivision incurred by the TransLink Consortium shall be
reimbursed by toll revenues designated in paragraph (35) of
subdivision (c) of Section 30914.
(f) The Metropolitan Transportation Commission (MTC) shall, by
July 1, 2006, adopt a Bay Area Regional Rail Plan (plan) for the
development of passenger rail services in the San Francisco Bay area
over the short, medium, and long term. The plan shall formulate
strategies to integrate passenger rail systems, improve interfaces
with connecting services, expand the regional rapid transit network,
and coordinate investments with transit-supportive land use. The
plan shall be governed by a steering committee consisting of
appointees from the Department of Transportation (Caltrans), the San
Francisco Bay Area Rapid Transit District (BART), Caltrain, the
National Railroad Passenger Corporation (Amtrak), the Capitol
Corridor Joint Powers Authority, the Altamont Commuter Express, the
California High-Speed Rail Authority, the Metropolitan Transportation
Commission (MTC), the Sonoma-Marin Area Rail Transit District
(SMART), the Santa Clara Valley Transportation Authority, the Solano
Transportation Authority, and the owners of standard gauge rail.
Congestion management agencies and other agencies as determined by
the steering committee shall be invited as nonvoting members. Under
policy guidance from the steering committee and with input from bay
area transit agencies, Caltrain and BART shall provide day-to-day
management and technical support for the development of this plan.
The plan proposals shall be evaluated using performance criteria,
including, but not limited to, transit-supportive land use and
access, ridership, cost-effectiveness, regional network connectivity,
and capital and operating financial stability. Additional
performance criteria shall be developed as necessary. The plan shall
include, but not be limited to, all of the following:
(1) Identification of issues in connectivity, access, capacity,
operations and cost-effectiveness.
(2) Identification of opportunities to enhance rail connectivity
and to maximize passenger convenience when transferring between
systems. Up to five hundred thousand dollars ($500,000) of the
funds described in paragraph (33) of subdivision (c) of Section 30914
may be expended by BART or Caltrain, or by both, to study the
feasibility and construction of, an intermodal transfer hub at the
Niles (Shinn Street) Junction.

(3) Recommendation of improvements to the interface with shuttles,
buses, other rail systems, and other feeder modes.
(4) Identification of potential impacts on capacity constraints
and operations on existing passenger and freight carriers.
(5) Identification of bottlenecks where added capacity could
cost-effectively increase performance.
(6) Recommendation of potential efficiency improvements through
economies of scale, such as through joint vehicle procurement and
maintenance facilities.
(7) Recommendation of strategies to acquire right-of-way and
station property to preserve future service options.
(8) Identification of potential capital and operating funding
sources for proposed actions.
(9) Identification of locations where the presence of passenger
rail could stimulate redevelopment and thereby direct growth to the
urban core.
(10) Recommendation of technology-appropriate service expansion in
specific corridors. Technologies to be considered include
conventional rail transit modes, bus rapid transit, and emerging rail
technologies. Identify phasing strategies for the implementation of
rail services where appropriate.
(11) Examination of how recommendations would integrate with
proposed high-speed rail to the Central Valley and southern
California. Up to two million five hundred thousand dollars
($2,500,000) of the funds described in paragraph (33) of subdivision
(c) of Section 30914 may be expended by BART or Caltrain, or by both,
to study Bay Area access to the high speed rail system. The High
Speed Rail Authority, or its successor, shall collaborate with the
steering committee established in this subdivision in conducting this
study, if funds are expended for the study pursuant to this
paragraph.

(12) Recommendation of a governance strategy to implement and
operate future regional rapid transit services.
This subdivision shall only be effective if the voters approve the
toll increase as set forth in Section 30921. Any expenditures
incurred by the Metropolitan Transportation Commission or the project
sponsors identified in paragraph (33) of subdivision (c) of Section
30914 related to the requirements of this subdivision, including any
study and administration, shall be appropriate charges against toll
revenue to be reimbursed from toll revenues.
SEC. 66. Section 30915 of the Streets and Highways Code is amended
to read:
30915. With respect to all construction and improvement projects
specified in Sections 30913 and 30914, project sponsors and the
department shall seek funding from all other potential sources,
including, but not limited to, the State Highway Account and federal
matching funds. The project sponsors and department shall report to
the authority concerning the funds obtained under this section.
SEC. 67. Section 30916 of the Streets and Highways Code is amended
to read:
30916. (a) The base toll rate for vehicles crossing the
state-owned toll bridges within the geographic jurisdiction of the
commission as of January 1, 2003, is as follows:


Number of Axles Toll

Two axles $ 1.00
Three axles 3.00
Four axles 5.25
Five axles 8.25
Six axles 9.00
Seven axles & more 10.50

(b) If the voters approve a toll increase, pursuant to Section
30921, commencing July 1, 2004, the base toll rate for vehicles
crossing the bridges described in subdivision (a) is as follows:


Number of axles Toll
Two axles $ 2.00
Three axles 4.00
Four axles 6.25
Five axles 9.25
Six Axles 10.00
Seven axles & more 11.50

(c) The authority shall increase the amount of the toll only if
required to meet its obligations on any bonds or to satisfy its
covenants under any bond resolution or indenture. The authority
shall hold a public hearing before adopting a toll schedule
reflecting the increased toll charge.
(d) Nothing in this section shall be construed to prohibit the
adoption of either a discounted commute rate for two-axle vehicles or
of special provisions for high-occupancy vehicles under terms and
conditions prescribed by the authority in consultation with the
department.
SEC. 68. Section 30917 of the Streets and Highways Code is
repealed.
SEC. 69. Section 30917 is added to the Streets and Highways Code,
to read:
30917. Pursuant to a special election in 1988 held in the City
and County of San Francisco and the Counties of Alameda, Contra
Costa, Marin, San Mateo, Santa Clara, and Solano, the voters approved
a uniform toll charge of one dollar ($1) for class I vehicles
crossing the state-owned toll bridges within the geographic
jurisdiction of the Metropolitan Transportation Commission. Except
as provided in Section 30914, the revenue derived from that toll
increase shall be used to finance capital outlay for bridge
construction and major bridge improvements as is fiscally
practicable.
SEC. 70. Section 30918 of the Streets and Highways Code is amended
to read:
30918. It is the intention of the Legislature to maintain tolls
on all of the bridges specified in Section 30910 at rates sufficient
to meet any obligation to the holders of bonds secured by the
bridge toll revenues. The authority, therefore, may
increase the toll rates above those specified in an adopted toll
schedule only if required for the authority to meet its obligations
under any bond resolution or indenture
bridge toll
revenues. The authority shall retain authority to set the toll
schedule as may be necessary to meet those bond obligations
.
The authority shall provide at least 30 days' notice to the
transportation policy committee of each house of the Legislature and
shall hold a public hearing before adopting a toll schedule
reflecting the increased toll rate.
SEC. 71. Section 30919 of the Streets and Highways Code is amended
to read:
30919. (a) Consistent with its adopted regional transportation
plan, after the requirements for debt service on the outstanding toll
bridge revenue bonds have been met, the Metropolitan Transportation
Commission shall allocate the revenues identified in subdivision (b)
of Section 30913 to eligible public entities and to the department.
(b) The revenues expended pursuant to paragraph (4) of subdivision
(a) of Section 30914 shall be expended on rail extension and
improvement projects designed to reduce vehicular traffic congestion
on the San Francisco-Oakland Bay Bridge. Seventy percent of the
revenues shall be expended on rail extensions and improvement
projects in the Counties of Alameda and Contra Costa, including, but
not limited to, extending the regional rail system in the
Concord-Antioch, Fremont-San Jose, and the Bayfair-Livermore rail
transit corridors. The remaining 30 percent shall be expended on
rail extensions and improvement projects in the City and County of
San Francisco and the Counties of San Mateo and Santa Clara.
(c) The Metropolitan Transportation Commission may commit to
multiyear allocations and expenditures for projects over extended
time periods to maximize funding opportunities and project progress.

SEC. 72. Section 30920 of the Streets and Highways Code is amended
to read:
30920. The authority may issue toll bridge revenue bonds to
finance any or all of the projects, including those specified in
Sections 30913 and 30914, if the issuance of the bonds does not
adversely affect the minimum amount of toll revenue proceeds
designated in Section 30913 and in paragraph (4) of subdivision (a)
of, and subdivision (b) of, Section 30914 for rail extension and
improvement projects and transit projects to reduce vehicular
traffic. A determination of the authority that a specific project or
projects shall have no adverse effect will be binding and conclusive
in all respects.
SEC. 73. Section 30921 of the Streets and Highways Code is
repealed.
SEC. 74. Section 30921 is added to the Streets and Highways Code,
to read:
30921. (a) The toll rate for vehicles crossing the bridges
described in Section 30916 shall not be increased to the rate
described in subdivision (b) of Section 30916 prior to the
availability of the results of a special election to be held in the
City and County of San Francisco and the Counties of Alameda, Contra
Costa, Marin, San Mateo, Santa Clara, and Solano to determine whether
the residents of those counties and of the City and County of San
Francisco approve a toll increase in the amount of one dollar ($1)
per vehicle. The revenue derived from this toll increase shall be
used to finance capital outlay for construction improvements, the
acquisition of transit vehicles, transit operating assistance, and
other improvement projects to reduce congestion and to improve travel
options on the bridge corridors as is fiscally practicable.
(b) Notwithstanding any provision of
the Elections Code, the board of supervisors of the City and County
of San Francisco and of each of the counties described in subdivision
(a) shall call a special election to be conducted in the City and
County of San Francisco and in each of the counties that shall be
consolidated with the March 2, 2004, primary election. The following
question shall be submitted to the voters as Regional Measure 2 and
stated separately in the ballot from state and local measures:
"Shall voters authorize a Regional Traffic Relief Plan that does the
following:
(1) Directs revenues generated through the collection of bridge
tolls to provide the following projects:
(A) Expand and extend BART.
(B) New transbay commuter rail crossing south of the San
Francisco-Oakland Bay Bridge.
(C) Comprehensive Regional Express bus network.
(D) New expanded ferry service.
(E) Better connections between BART, buses, ferries, and rail.
(2) Approves a one dollar ($1) toll increase effective July 1,
2004, on all toll bridges in the bay area, except the Golden Gate
Bridge?"
(c) The ballot pamphlet for the special election described in
subdivision (b) shall include a detailed description of the Regional
Traffic Relief Plan detailing the projects, services, and planning
requirements set forth in subdivisions (c) and (d) of Section 30914
and subdivisions (d), (e), and (f) of Section 30914.5. The
Metropolitan Transportation Commission shall prepare this description
of the Regional Traffic Relief Plan.
(d) The county clerks shall report the results of the special
election to the authority. If a majority of all voters voting on the
question at the special election vote affirmatively, the authority
shall adopt the increased toll schedule to be effective July 1, 2004.

(e) If a majority of all the voters voting on the question at the
special election do not approve the toll increase, the authority may
by resolution resubmit the measure to the voters at a subsequent
general election. If a majority of all of the voters vote
affirmatively on the measure, the authority may adopt the toll
increase and establish its effective date and establish the
completion dates for all reports and studies required by Sections
30914, 30914.5, and 30950.3.
(f) The authority shall reimburse each county and city and county
participating in the election for the incremental cost of submitting
the measure to the voters. These costs shall be reimbursed from
revenues derived from the tolls if the measure is approved by the
voters, or, if the measure is not approved, from any bridge toll
revenues administered by the authority.
(g) Except as provided in Section 30918, the toll rates contained
in a toll schedule adopted by the authority pursuant to this section
shall not be changed without statutory authorization by the
Legislature.
SEC. 75. Section 30922 is added to the Streets and Highways Code,
to read:
30922. Any action or proceeding to contest, question, or deny the
validity of the toll increase provided for in this chapter, the
financing of the transportation program contemplated by this chapter,
the issuance of any bonds secured by those tolls, or any of the
proceedings in relation thereto, shall be commenced within 60 days
from the date of the election at which the toll increase is approved.
After that date, the financing of the program, the issuance of the
bonds, and all proceedings in relation thereto, including the
adoption, approval, and collection of the toll increase, shall be
held valid and incontestable in every respect.
SEC. 76. Section 30950 of the Streets and Highways Code is amended
to read:
30950. For the purposes of this chapter, Chapter 4 (commencing
with Section 30910), and Chapter 4.5 (commencing with Section 31000),
"the authority" is the Bay Area Toll Authority, which is hereby
created. The authority is a public instrumentality governed by the
same board as that governing the Metropolitan Transportation
Commission. The authority is, however, a separate entity from the
Metropolitan Transportation Commission.
SEC. 77. Section 30950.1 of the Streets and Highways Code is
amended to read:
30950.1. The authority shall adopt an annual budget. The members
of the authority shall be compensated as determined by the authority
and shall be reimbursed for necessary and reasonable expenses
incurred in connection with performing authority duties. The
authority shall pay all costs required by this section.
SEC. 78. Section 30950.2 of the Streets and Highways Code is
amended to read:
30950.2. The authority is responsible for the programming,
administration, and allocation of all toll revenues, except revenues
from the seismic retrofit surcharge, from state-owned toll bridges
within the geographic jurisdiction of the Metropolitan Transportation
Commission. After completion of the seismic projects and payment or
provision for the payment of all bonds issued for the seismic
projects, the authority may assume responsibility for the
programming, administration, and allocation of the revenue derived
from the seismic retrofit surcharge, at which time those revenues
shall be deposited in the Bay Area Toll Account.
SEC. 79. Section 30950.3 of the Streets and Highways Code is
amended to read:
30950.3. (a) The authority shall prepare, adopt, and from time to
time revise, a long-range plan for the completion of all projects
within its jurisdiction, including those of the Regional Traffic
Relief Plan.
(b) The authority shall give first priority to projects and
expenditures that are deemed necessary by the department to preserve
and protect the bridge structures.
SEC. 80. Section 30950.4 of the Streets and Highways Code is
amended to read:
30950.4. All authority of the California Transportation
Commission as to the bay area bridges is transferred to the
authority.
SEC. 81. Section 30951 of the Streets and Highways Code is
repealed.
SEC. 82. Section 30951 is added to the Streets and Highways Code,
to read:
30951. The authority is authorized in its own name to do all acts
necessary or convenient for the exercise of its powers under this
division and the financing of projects, including, but not limited
to, the following:
(a) To make and enter into contracts.
(b) To employ agents or employees.
(c) To acquire, construct, manage, maintain, lease, or operate any
public facility or improvements.
(d) To sue and be sued in its own name.
(e) To issue bonds and otherwise to incur debts, liabilities, or
obligations.
(f) To apply for, accept, receive, and disburse grants, loans, and
other assistance from any agency of the United States of America or
of the State of California.
(g) To invest any money not required for the immediate necessities
of the authority, as the authority determines is advisable.
(h) To apply for letters of credit or other forms of financial
guarantees in order to secure the repayment of bonds and to enter
into agreements in connection with those letters of credit or
financial guarantees.
SEC. 83. Section 30953 of the Streets and Highways Code is amended
to read:
30953. Except for the revenues from the seismic retrofit
surcharge, toll revenues and all other income derived from bridges
pursuant to Chapter 4 (commencing with Section 30910) shall be
deposited in the Bay Area Toll Account, which is hereby created.
SEC. 84. Section 30956 of the Streets and Highways Code is
repealed.
SEC. 85. Section 30958 of the Streets and Highways Code is amended
to read:
30958. After payments for debt service on outstanding bonds, and
the costs for the operation and maintenance expenses set forth in
Section 30952 are provided for, and after all direct operating costs
of the authority are provided for, the authority may retain, for its
cost in administering this article, an amount not to exceed 1 percent
of the gross annual bridge revenues.
SEC. 86. Section 30960 of the Streets and Highways Code is amended
to read:
30960. (a) The authority may issue both defeasance and future
capital project bonds payable from the revenues of the tolls imposed
on the bridges described in Section 30910. The bonds or commercial
paper may be issued by the authority at any time, and from time to
time, payable from the revenues from the tolls. The bonds or
commercial paper shall be referred to as "toll bridge revenue bonds."

(b) The revenues from the tolls on the bridges described in
Section 30910 shall be subject to a statutory lien in favor of the
bondholders to secure all amounts due on the bonds and in favor of
any provider of credit enhancement for the bonds to secure all
amounts due to that provider with respect to those bonds, and the
lien shall immediately attach to those toll revenues and be
effective, binding, and enforceable against the authority, its
successors, creditors, and all others asserting rights therein,
irrespective of whether those parties have notice of the lien and
without the need for any physical delivery, recordation, filing, or
further act, and the toll revenues shall remain subject to that lien
until all bonds are paid in full or provision made therefor, and the
bridges shall not become toll-free prior to that time.
(c) The liens on toll revenues created by this chapter shall be
subject to expenditures for operation and maintenance of the bridges,
including toll collection, unless those expenditures are otherwise
provided for by statute.
(d) Interest on any bonds issued pursuant to this chapter shall at
all times be free from state personal income tax and corporate
income tax.
SEC. 87. Section 30961 of the Streets and Highways Code is amended
to read:
30961. Toll bridge revenue bonds shall be issued pursuant to a
resolution adopted at any time, and from time to time, by the
authority by a majority vote of all members of the authority.
(a) The authority may from time to time issue bonds in accordance
with the Revenue Bond Law of 1941 (Chapter 6 (commencing with Section
54300) of Part 1 of Division 2 of Title 5 of the Government Code),
for the purpose of constructing, improving, or equipping any of the
bridges or for any of the purposes authorized by this chapter,
Chapter 4 (commencing with Section 30910), or Chapter 4.5 (commencing
with Section 31000). Operation of the bridges or any grouping or
units thereof shall constitute an "enterprise" within the meaning of
Section 54309 of the Government Code, and the authority shall
constitute a "local agency" within the meaning of Section 54307 of
the Government Code. Article 3 (commencing with Section 54380) of
Chapter 6 of Part 1 of Division 2 of Title 5 of the Government Code
shall not apply to the issuance and sale of bonds pursuant to this
chapter. Instead, the authority shall authorize the issuance of
bonds by resolution, and that resolution shall specify all of the
following:
(1) The purposes for which the bonds are to be issued.
(2) The maximum principal amount of the bonds.
(3) The maximum term for the bonds or commercial paper.
(4) The maximum rate of interest to be payable upon the bonds or
commercial paper. That interest rate shall not exceed the maximum
rate specified in Section 53531 of the Government Code. The rate may
be either fixed or variable and shall be payable at the times and in
the manner specified in the resolution.
(b) The authority shall keep full and complete accounts for toll
revenues and expenses of the toll bridges and shall annually prepare
balance sheets showing the financial condition of the entire toll
bridge enterprise as well as toll revenues and operating costs for
each toll bridge. The accounts and related reports shall be
maintained and prepared in accordance with generally accepted
accounting practices and shall be subject to an annual audit
conducted by an independent certified public accountancy firm
licensed to practice in the state.
SEC. 88. Section 31000 of the Streets and Highways Code is amended
to read:
31000. The following definitions apply for purposes of this
chapter:
(a) "Account" means the Toll Bridge Seismic Retrofit Account
created pursuant to Section 188.10.
(b) "Amenities" means any of the following:
(1) A cable suspension bridge.
(2) A bicycle facility.
(3) A transbay terminal.
(c) "Authority" means the Bay Area Toll Authority.
(d) "Bay area bridges" means the state-owned toll bridges within
the area of the geographic jurisdiction of the Metropolitan
Transportation Commission.
(e) "Department" means the Department of Transportation.
(f) "Seismic retrofit" means all work completed by the department
on the bay area bridges relating to the planning, design, and
construction of improvements to, or replacement of, those bridges for
the purpose of withstanding seismic forces, including, but not
limited to, any environmental or traffic mitigation necessary for
that work.
(g) "Surcharge" means the seismic retrofit surcharge imposed
pursuant to Section 31010.
SEC. 89. Section 31010 of the Streets and Highways Code is amended
to read:
31010. (a) There is hereby imposed a seismic retrofit surcharge
equal to one dollar ($1) per vehicle for passage on the bay area
bridges, except for vehicles that are authorized toll-free passage on
these bridges.
(b) Funds generated by subdivision (a) may not be used to repay
nontoll revenues committed to fund projects identified in paragraph
(2) of subdivision (a) of Section 188.5. Following the date of the
submission of the final report required in subdivision (d) of Section
188.5, funds generated pursuant to subdivision (a) that are in
excess of those needed to meet the toll commitment as specified by
paragraph (4) of subdivision (b) of Section 188.5, including annual
debt service payments, if any, required to support the commitment,
and other elements required to meet the obligations of the department'
s financing plan, shall be available to the authority for funding,
consistent with Sections 30913 and 30914, the purposes and projects
described in those sections. The department shall transfer to the
authority on an annual basis the funds made available to the
authority under this subdivision.
(c)

(1)
There shall be no increase in the seismic retrofit
surcharge beyond the level identified in subdivision (a) for the
purposes identified in paragraph (4) of subdivision (a) of Section
188.5, except that the department shall have the authority to
increase the seismic retrofit surcharge for debt service purposes
only if the bank finds and the Department of Finance confirms that
both of the following apply:
(1) Extraordinary circumstances

(A) Circumstances
exist that have resulted in a
reduction in the funds generated by subdivision (a) so as to

jeopardize the payment of debt service for which toll revenues are
authorized , and all other financial resources for meeting
toll commitments have been exhausted.
.

(2)

(B)
Bonds issued under Chapter 4.3 (commencing with Section
30950) shall not be impaired solely by action taken under this
section, as evidenced by confirmation of the then existing ratings on
those bonds, by the rating agencies then rating the bonds.
(2) The requirement for the funding described in subparagraph (B)
of paragraph (1) shall not apply if the voters approve an increase in
the toll rate pursuant to subdivision (b) of Section 30921.

(d) The term of the financing plan developed by the department
under Section 31071, for the purposes of funding the projects
described in Sections 30913 and 30914, is extended for a period of 30
years commencing on January 1, 2008.
(e) This section shall remain in effect only until the date that
the California Transportation Commission notifies the Secretary of
State that sufficient funds have been generated to meet the
obligations identified in paragraph (4) of subdivision (b) of Section
188.5, and repayment of any outstanding debt secured by tolls, and
as of that date is repealed. The California Transportation
Commission shall provide the notice described in this subdivision
upon making the determination set forth in this subdivision.
SEC. 90. Section 31071 of the Streets and Highways Code is
amended to read:

31071. (a) The department may enter into financing agreements
with the bank for the purpose of borrowing funds to finance or
refinance the seismic retrofit project costs identified in paragraph
(4) of subdivision (a) of Section 188.5. The bank may issue bonds
for this purpose, pursuant to the authority granted to it under
Chapter 5 (commencing with Section 63070) of Chapter 2 of Division 1
of Title 6.7 of the Government Code, and deposit the proceeds from
the bonds into the account. The amount of borrowing may be increased
to fund necessary reserves, capitalized interest, interim bonds,
including, but not limited to, commercial paper, costs of issuance,
and administrative, financial legal and incidental services related
to the bonds. The department shall pursue the most cost-effective and
efficient financing plan for the bridge work identified in paragraph
(4) of subdivision (a) of Section 188.5.
(b) To the extent provided in the governing documents, each of the
bonds issued under this section shall be payable from, and secured
by, all or a portion of the toll surcharge revenue in the account and
the assets in that account.
(c) Prior to the issuance of bonds payable from the toll
surcharge, the bank shall confirm that bonds issued under Chapter 4.3
(commencing with Section 30950) shall not be impaired solely by
action taken under this section, as evidenced by confirmation of the
then existing ratings on these bonds, by the rating agencies then
rating the bonds.
(d) The department shall transmit the final finance plan to the
fiscal and policy committees of the Legislature that consider
transportation issues.
This requirement shall not
apply if the voters approve an increase in the toll rate pursuant to
subdivision (b) of Section 30921.

SEC. 91.
Section 5205.5 of the Vehicle Code is amended to
read:
5205.5. (a) For the purposes of implementing Section 21655.9,
beginning July 1, 2000, and through December 31, 2003, the
department, in consultation with the Department of the California
Highway Patrol, shall make available for issuance, for a fee
determined by the department to be sufficient to reimburse the
department for actual costs incurred pursuant to this section,
distinctive decals, labels, or other identifiers for vehicles that
meet California's ultra-low emission vehicle (ULEV) standard for
exhaust emissions and the federal ILEV evaporative emission standard,
as defined in Part 88 (commencing with Section 88.101-94) of Title
40 of the Code of Federal Regulations, in a manner that clearly
distinguishes them from other vehicles.
(b) For the purposes of implementing Section 21655.9, beginning
January 1, 2004, and through December 31, 2007, the department shall
make available for issuance, for a fee determined by the department
to be sufficient to reimburse the department for actual costs
incurred pursuant to this section, distinctive decals, labels, and
other identifiers for vehicles that meet California's super ultra-low
emission vehicle (SULEV) standard for exhaust emissions and the
federal inherently low-emission vehicle (ILEV) evaporative emission
standard, as defined in Part 88 (commencing with Section 88.101-94)
of Title 40 of the Code of Federal Regulations, in a manner that
clearly distinguishes them from other vehicles.
(c) The department shall include a summary of the provisions of
this section on each motor vehicle registration renewal notice, or on
a separate insert, if space is available and the summary can be
included without incurring additional printing or postage costs.
(d) The Governor may remove individual high-occupancy vehicle
(HOV) lanes, or portions of those lanes, during periods of peak
congestion from the ILEV access provisions provided in subdivisions
(a) and (b), following a finding by the Department of Transportation
as follows:
(1) The lane, or portion thereof, exceeds a level of service C, as
discussed in subdivision (b) of Section 65089 of the Government
Code.
(2) The operation or projected operation of the vehicles described
in subdivisions (a) and (b) in these lanes, or portions thereof,
will significantly increase congestion.
The finding also shall demonstrate the infeasibility of
alleviating the congestion by other means, including, but not limited
to, reducing the use of the lane by noneligible vehicles, further
increasing vehicle occupancy, or adding additional capacity.
(e) For purposes of subdivisions (a) and (b), the Department of
the California Highway Patrol shall design and specify the placement
of the decal, label, or other identifier on the vehicle. Each decal,
label, or other identifier issued for a vehicle shall display a
unique number, which number shall be printed on, or affixed to, the
vehicle registration.
(f) If the Metropolitan Transportation Commission, serving as the
Bay Area Toll Authority, grants toll-free and reduced-rate passage on
toll bridges under its jurisdiction to any vehicle pursuant to
Section 30102.5 of the Streets and Highways Code, it shall also grant
the same toll-free and reduced-rate passage to vehicles displaying a
valid ULEV or SULEV identifier issued by the department pursuant to
subdivisions (a) and (b).
(g) This section shall remain in effect only until January 1,
2008, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2008, deletes or extends
that date.
SEC. 91.

SEC. 92. Section 5 of Chapter 898 of the Statutes of 1997 is
amended to read:

SEC. 5. (a) Notwithstanding Article 2 (commencing with Section
33110) of Chapter 2 of Part 1 of Division 24 of the Health and Safety
Code, the legislative body of the City and County of San Francisco
may, by resolution, designate the Authority or any successor entity
or agency of the Authority as the redevelopment agency with all of
the rights, powers, privileges, immunities, authorities, and duties
granted to a redevelopment agency pursuant to Part 1 (commencing with
Section 33000) of Division 24 of the Health and Safety Code, for the
purpose of acquiring, using, operating, maintaining, converting, and
redeveloping the property. Upon adoption of that resolution, the
Authority shall be considered a redevelopment agency for all purposes
under state law, including, but not limited to, the purposes of
Section 21090 of the Public Resources Code.
(b) Notwithstanding any state or local law, including, without
limitation, Section 33111 of the Health and Safety Code, the Board of
Directors of the Authority may include individuals who are officers
or employees of the City and County of San Francisco or of the San
Francisco Redevelopment Agency and those individuals are not
precluded, solely by virtue of their status as officers or employees
of the City and County of San Francisco or the San Francisco
Redevelopment Agency, from participating in decisions as members of
the Board of Directors.
(c) Notwithstanding Section 1090 of the Government Code and
Section C8.105 of Appendix C of the San Francisco Charter, officers
and employees of the City and County of San Francisco or the San
Francisco Redevelopment Agency are not precluded, solely by virtue of
their services as members of the Board of Directors, from
participating in any decisions in their capacities as officers or
employees of the City and County of San Francisco or the San
Francisco Redevelopment Agency.
(d) Notwithstanding any other provision of law, the Authority's
employees , except the director and the deputy director,
are subject to the same civil service provisions as the employees of
the City and County of San Francisco.
(e) Notwithstanding any other provision of law, the Authority
shall follow the same competitive bidding procedures applicable to
redevelopment agencies in California.
(f) Prior to the Board of Supervisor's approval of a redevelopment
plan for the property, any contract to which the Authority is a
party worth more than one million dollars ($1,000,000) or with a term
of 10 or more years shall require the approval of the Board of
Supervisors of the City and County of San Francisco.
SEC. 93.
No reimbursement is required by this act pursuant
to Section 6 of Article XIII B of the California Constitution because
this act provides for offsetting savings to local agencies or school
districts that result in no net costs to the local agencies or
school districts, within the meaning of Section 17556 of the
Government Code.