Amended IN Senate March 15, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 1169Introduced by Senator HuesoFebruary 17, 2022 An act relating to transportation. to add Section 143.2 to, and to repeal Section 143.1 of, the Streets and Highways Code, relating to transportation, and making an appropriation therefor.LEGISLATIVE COUNSEL'S DIGESTSB 1169, as amended, Hueso. State Highway Route 125. Route 125 toll road project.Existing law authorizes the Department of Transportation, until January 1, 2017, to enter into comprehensive development lease agreements with public and private entities, or consortia of those entities, for certain transportation projects that may charge certain users of those projects tolls and user fees, subject to various terms and requirements. Under prior statutory authority, the department entered into an agreement with the San Diego Association of Governments (SANDAG) for a toll road project on State Highway Route 125 in San Diego County that includes a lease of the State Route 125 facility.This bill, with respect to the agreement entered into by the department and SANDAG, would authorize SANDAG to terminate the agreement for the project and its lease of the State Route 125 facility on January 1, 2027, or upon the repayment of all of the bond debt incurred for the toll road project, whichever is later. Upon the termination of the agreement and lease, the bill would provide that State Route 125 shall no longer be subject to tolls and would require the department to be responsible for the maintenance and improvement of State Route 125.The bill would appropriate $35,000,000 from the General Fund without regard to fiscal years to SANDAG to repay the outstanding bond debt incurred for the State Route 125 toll road project, as specified.The bill would also repeal a provision that authorizes the agreement to be amended, subject to specified terms and conditions, to extend the length of period that a toll may be imposed from 35 to 45 years. The bill would also repeal a provision that authorizes SANDAG to continue the collection of tolls under certain circumstances.Existing law grants the Department of Transportation full possession and control of all state highways and rights in property acquired for state highway purposes. Existing law designates State Highway Route 125 as part of the California Freeway and Expressway System.This bill would state the intent of the Legislature to enact subsequent legislation to convert State Highway Route 125, the South Bay Expressway, from a toll road to a toll-free road.Digest Key Vote: MAJORITY2/3 Appropriation: NOYES Fiscal Committee: NOYES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) State Route 125, also known as the South Bay Expressway, is the only operating toll road in the County of San Diego.(b) The toll on the South Bay Expressway places an undue burden on South Bay users.(c) The toll on the South Bay Expressway hinders the regions economic development activity by reducing business attraction and retention due to the daily cost of use borne by employees of businesses that may seek to locate in the South Bay area in the County of San Diego.(d) The toll on the South Bay Expressway deters northbound and southbound travelers from fully using an existing, undercapacity road segment and instead encourages them to use existing, already congested State Routes 5 and 805 freeways, thereby increasing vehicle miles traveled and greenhouse gas emissions.(e) The toll on the South Bay Expressway could hamper efficient vehicle and goods movement when the new border crossing between the United States and Mexico in Otay Mesa connecting to State Route 125 opens in 2024.SEC. 2. Section 143.1 of the Streets and Highways Code is repealed.143.1.(a)Notwithstanding any other provision of law, the demonstration toll road project known as State Highway Route 125 (SR 125) in the County of San Diego, authorized pursuant to authority granted to the department by Chapter 107 of the Statutes of 1989, as subsequently amended by Chapter 1115 of the Statutes of 1990 and Chapter 688 of the Statutes of 2002, shall be subject to tolls for a period of up to 45 years under the following additional terms and conditions:(1)If agreed to by the private entity and the department, and subject to concurrence by the San Diego Association of Governments (SANDAG), the County of San Diego, the City of San Diego, and the City of Chula Vista, by January 2010, all of whom shall exercise their good faith efforts to reach that agreement and concurrence, the SR 125 franchise agreement shall be amended to provide for a lease period of up to 45 years, which shall be reflected in the SR 125 Development Franchise Agreement, dated January 30, 1991, as amended. If an amendment to extend the lease period is agreed to by the parties, the tolls collected during any extension period shall be used for one or more of the following purposes, as specified in the amendment to the agreement:(A)By the private entity to reimburse it for project costs incurred on behalf of the department or SANDAG.(B)By the private entity to compensate or reimburse it for project costs or other impacts for which it is entitled to compensation pursuant to the development franchise agreement or other agreements in effect as of June 30, 2006, with or between the private entity and SANDAG concerning SR 125.(C)By the private entity to reimburse the department or SANDAG for project costs permitted under the development franchise agreement in effect as of June 30, 2006.(D)By the private entity for one or more of the following purposes: the private entitys capital outlay costs for the project; the costs associated with operations, toll collection, and administration of the facility; reimbursement of the state for the costs of maintenance and police services; or a reasonable return on investment to the private entity.(E)The development franchise agreement or any amendment thereto shall require that any excess toll revenue either be applied to repayment of the indebtedness incurred by the private entity with respect to the project, or payment into the State Highway Account for the benefit of the San Diego region, or both.(2)If an amendment to the SR 125 Development Franchise Agreement is not executed by January 31, 2010, or if an amendment to the agreement is executed by January 31, 2010, that extends the lease period for less than 10 additional years, the department and SANDAG may agree, subject to concurrence by the County of San Diego, the City of San Diego, and the City of Chula Vista, to operate and maintain the toll road for any remaining period of time up to a maximum of 10 years following expiration of the agreement. Tolls collected by the department or SANDAG shall be used to reimburse the department or SANDAG, as applicable, for the SR 125 project costs permitted under the development franchise agreement in effect as of June 30, 2006.(3)Except as specifically amended consistent with this section, the SR 125 Development Franchise Agreement shall remain in full force and effect as set forth therein, and this section shall not be deemed to modify any rights or obligations of the parties thereto.(b)SANDAG may operate the SR 125 facility and continue the collection of tolls upon the expiration of the SR 125 Development Franchise Agreement or the up to 10-year period specified in paragraph (2) of subdivision (a), as applicable, subject to a 23 vote of the SANDAG board, pursuant to a plan that specifies the expenditure of toll revenues for projects within the SR 125 corridor. The operation and toll collection may be done in cooperation with the department or solely by SANDAG, with toll revenues to be available for the costs associated with operations, toll collection, and administration of the facility, and reimbursement of the state for the costs of maintenance and police services. Projects eligible for funding from excess toll revenues shall be limited to projects that improve the operation of SR 125, including highway and street projects, truck-only lanes, and transit services and facilities. Any changes to the plan shall require a 23 vote of the SANDAG board.SEC. 3. Section 143.2 is added to the Streets and Highways Code, to read:143.2. (a) For purposes of this section, the following definitions apply:(1) Development franchise agreement means the amended development franchise agreement between SANDAG and the department for the State Highway 125 toll road project, dated December 21, 2011.(2) SANDAG means the San Diego Association of Governments.(3) State Highway 125 toll road project means the State Route 125 demonstration toll road project in the County of San Diego authorized pursuant to authority granted to the department by Chapter 107 of the Statutes of 1989, as subsequently amended by Chapter 1115 of the Statutes of 1990 and Chapter 688 of the Statutes of 2002.(b) Notwithstanding any other law or any condition in the development franchise agreement, SANDAG may terminate the development franchise agreement for the State Route 125 toll road project and the lease of the State Route 125 facility on January 1, 2027, or upon the repayment of all of the bond debt incurred for the State Highway 125 toll road project, whichever is later.(c) Upon the termination of the development franchise agreement and the lease pursuant to subdivision (b), both of the following shall apply:(1) State Route 125 shall no longer be subject to tolls imposed pursuant to Section 143.(2) The department shall be responsible for the maintenance and improvement of State Route 125.SEC. 4. (a) (1) The sum of thirty-five million dollars ($35,000,000) is hereby appropriated from the General Fund, without regard to fiscal years, to the San Diego Association of Governments (SANDAG) to repay the outstanding bond debt incurred for the State Route 125 toll road project, as defined in Section 143.2 of the Streets and Highways Code. (2) SANDAG may only use the moneys appropriated pursuant to paragraph (1) to repay the bond debt if the funds are used in whole or in part to repay the entire outstanding bond debt.(b) Any amount appropriated pursuant to subdivision (a) that exceeds the amount necessary to repay the bond debt in full shall be returned to the Controller for deposit in the General Fund.SECTION 1.It is the intent of the Legislature to enact subsequent legislation to convert State Route 125, the South Bay Expressway, from a toll road to a toll-free road.
Amended IN Senate March 15, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 1169Introduced by Senator HuesoFebruary 17, 2022 An act relating to transportation. to add Section 143.2 to, and to repeal Section 143.1 of, the Streets and Highways Code, relating to transportation, and making an appropriation therefor.LEGISLATIVE COUNSEL'S DIGESTSB 1169, as amended, Hueso. State Highway Route 125. Route 125 toll road project.Existing law authorizes the Department of Transportation, until January 1, 2017, to enter into comprehensive development lease agreements with public and private entities, or consortia of those entities, for certain transportation projects that may charge certain users of those projects tolls and user fees, subject to various terms and requirements. Under prior statutory authority, the department entered into an agreement with the San Diego Association of Governments (SANDAG) for a toll road project on State Highway Route 125 in San Diego County that includes a lease of the State Route 125 facility.This bill, with respect to the agreement entered into by the department and SANDAG, would authorize SANDAG to terminate the agreement for the project and its lease of the State Route 125 facility on January 1, 2027, or upon the repayment of all of the bond debt incurred for the toll road project, whichever is later. Upon the termination of the agreement and lease, the bill would provide that State Route 125 shall no longer be subject to tolls and would require the department to be responsible for the maintenance and improvement of State Route 125.The bill would appropriate $35,000,000 from the General Fund without regard to fiscal years to SANDAG to repay the outstanding bond debt incurred for the State Route 125 toll road project, as specified.The bill would also repeal a provision that authorizes the agreement to be amended, subject to specified terms and conditions, to extend the length of period that a toll may be imposed from 35 to 45 years. The bill would also repeal a provision that authorizes SANDAG to continue the collection of tolls under certain circumstances.Existing law grants the Department of Transportation full possession and control of all state highways and rights in property acquired for state highway purposes. Existing law designates State Highway Route 125 as part of the California Freeway and Expressway System.This bill would state the intent of the Legislature to enact subsequent legislation to convert State Highway Route 125, the South Bay Expressway, from a toll road to a toll-free road.Digest Key Vote: MAJORITY2/3 Appropriation: NOYES Fiscal Committee: NOYES Local Program: NO
Amended IN Senate March 15, 2022
Amended IN Senate March 15, 2022
CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION
Senate Bill
No. 1169
Introduced by Senator HuesoFebruary 17, 2022
Introduced by Senator Hueso
February 17, 2022
An act relating to transportation. to add Section 143.2 to, and to repeal Section 143.1 of, the Streets and Highways Code, relating to transportation, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 1169, as amended, Hueso. State Highway Route 125. Route 125 toll road project.
Existing law authorizes the Department of Transportation, until January 1, 2017, to enter into comprehensive development lease agreements with public and private entities, or consortia of those entities, for certain transportation projects that may charge certain users of those projects tolls and user fees, subject to various terms and requirements. Under prior statutory authority, the department entered into an agreement with the San Diego Association of Governments (SANDAG) for a toll road project on State Highway Route 125 in San Diego County that includes a lease of the State Route 125 facility.This bill, with respect to the agreement entered into by the department and SANDAG, would authorize SANDAG to terminate the agreement for the project and its lease of the State Route 125 facility on January 1, 2027, or upon the repayment of all of the bond debt incurred for the toll road project, whichever is later. Upon the termination of the agreement and lease, the bill would provide that State Route 125 shall no longer be subject to tolls and would require the department to be responsible for the maintenance and improvement of State Route 125.The bill would appropriate $35,000,000 from the General Fund without regard to fiscal years to SANDAG to repay the outstanding bond debt incurred for the State Route 125 toll road project, as specified.The bill would also repeal a provision that authorizes the agreement to be amended, subject to specified terms and conditions, to extend the length of period that a toll may be imposed from 35 to 45 years. The bill would also repeal a provision that authorizes SANDAG to continue the collection of tolls under certain circumstances.Existing law grants the Department of Transportation full possession and control of all state highways and rights in property acquired for state highway purposes. Existing law designates State Highway Route 125 as part of the California Freeway and Expressway System.This bill would state the intent of the Legislature to enact subsequent legislation to convert State Highway Route 125, the South Bay Expressway, from a toll road to a toll-free road.
Existing law authorizes the Department of Transportation, until January 1, 2017, to enter into comprehensive development lease agreements with public and private entities, or consortia of those entities, for certain transportation projects that may charge certain users of those projects tolls and user fees, subject to various terms and requirements. Under prior statutory authority, the department entered into an agreement with the San Diego Association of Governments (SANDAG) for a toll road project on State Highway Route 125 in San Diego County that includes a lease of the State Route 125 facility.
This bill, with respect to the agreement entered into by the department and SANDAG, would authorize SANDAG to terminate the agreement for the project and its lease of the State Route 125 facility on January 1, 2027, or upon the repayment of all of the bond debt incurred for the toll road project, whichever is later. Upon the termination of the agreement and lease, the bill would provide that State Route 125 shall no longer be subject to tolls and would require the department to be responsible for the maintenance and improvement of State Route 125.
The bill would appropriate $35,000,000 from the General Fund without regard to fiscal years to SANDAG to repay the outstanding bond debt incurred for the State Route 125 toll road project, as specified.
The bill would also repeal a provision that authorizes the agreement to be amended, subject to specified terms and conditions, to extend the length of period that a toll may be imposed from 35 to 45 years. The bill would also repeal a provision that authorizes SANDAG to continue the collection of tolls under certain circumstances.
Existing law grants the Department of Transportation full possession and control of all state highways and rights in property acquired for state highway purposes. Existing law designates State Highway Route 125 as part of the California Freeway and Expressway System.
This bill would state the intent of the Legislature to enact subsequent legislation to convert State Highway Route 125, the South Bay Expressway, from a toll road to a toll-free road.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) State Route 125, also known as the South Bay Expressway, is the only operating toll road in the County of San Diego.(b) The toll on the South Bay Expressway places an undue burden on South Bay users.(c) The toll on the South Bay Expressway hinders the regions economic development activity by reducing business attraction and retention due to the daily cost of use borne by employees of businesses that may seek to locate in the South Bay area in the County of San Diego.(d) The toll on the South Bay Expressway deters northbound and southbound travelers from fully using an existing, undercapacity road segment and instead encourages them to use existing, already congested State Routes 5 and 805 freeways, thereby increasing vehicle miles traveled and greenhouse gas emissions.(e) The toll on the South Bay Expressway could hamper efficient vehicle and goods movement when the new border crossing between the United States and Mexico in Otay Mesa connecting to State Route 125 opens in 2024.SEC. 2. Section 143.1 of the Streets and Highways Code is repealed.143.1.(a)Notwithstanding any other provision of law, the demonstration toll road project known as State Highway Route 125 (SR 125) in the County of San Diego, authorized pursuant to authority granted to the department by Chapter 107 of the Statutes of 1989, as subsequently amended by Chapter 1115 of the Statutes of 1990 and Chapter 688 of the Statutes of 2002, shall be subject to tolls for a period of up to 45 years under the following additional terms and conditions:(1)If agreed to by the private entity and the department, and subject to concurrence by the San Diego Association of Governments (SANDAG), the County of San Diego, the City of San Diego, and the City of Chula Vista, by January 2010, all of whom shall exercise their good faith efforts to reach that agreement and concurrence, the SR 125 franchise agreement shall be amended to provide for a lease period of up to 45 years, which shall be reflected in the SR 125 Development Franchise Agreement, dated January 30, 1991, as amended. If an amendment to extend the lease period is agreed to by the parties, the tolls collected during any extension period shall be used for one or more of the following purposes, as specified in the amendment to the agreement:(A)By the private entity to reimburse it for project costs incurred on behalf of the department or SANDAG.(B)By the private entity to compensate or reimburse it for project costs or other impacts for which it is entitled to compensation pursuant to the development franchise agreement or other agreements in effect as of June 30, 2006, with or between the private entity and SANDAG concerning SR 125.(C)By the private entity to reimburse the department or SANDAG for project costs permitted under the development franchise agreement in effect as of June 30, 2006.(D)By the private entity for one or more of the following purposes: the private entitys capital outlay costs for the project; the costs associated with operations, toll collection, and administration of the facility; reimbursement of the state for the costs of maintenance and police services; or a reasonable return on investment to the private entity.(E)The development franchise agreement or any amendment thereto shall require that any excess toll revenue either be applied to repayment of the indebtedness incurred by the private entity with respect to the project, or payment into the State Highway Account for the benefit of the San Diego region, or both.(2)If an amendment to the SR 125 Development Franchise Agreement is not executed by January 31, 2010, or if an amendment to the agreement is executed by January 31, 2010, that extends the lease period for less than 10 additional years, the department and SANDAG may agree, subject to concurrence by the County of San Diego, the City of San Diego, and the City of Chula Vista, to operate and maintain the toll road for any remaining period of time up to a maximum of 10 years following expiration of the agreement. Tolls collected by the department or SANDAG shall be used to reimburse the department or SANDAG, as applicable, for the SR 125 project costs permitted under the development franchise agreement in effect as of June 30, 2006.(3)Except as specifically amended consistent with this section, the SR 125 Development Franchise Agreement shall remain in full force and effect as set forth therein, and this section shall not be deemed to modify any rights or obligations of the parties thereto.(b)SANDAG may operate the SR 125 facility and continue the collection of tolls upon the expiration of the SR 125 Development Franchise Agreement or the up to 10-year period specified in paragraph (2) of subdivision (a), as applicable, subject to a 23 vote of the SANDAG board, pursuant to a plan that specifies the expenditure of toll revenues for projects within the SR 125 corridor. The operation and toll collection may be done in cooperation with the department or solely by SANDAG, with toll revenues to be available for the costs associated with operations, toll collection, and administration of the facility, and reimbursement of the state for the costs of maintenance and police services. Projects eligible for funding from excess toll revenues shall be limited to projects that improve the operation of SR 125, including highway and street projects, truck-only lanes, and transit services and facilities. Any changes to the plan shall require a 23 vote of the SANDAG board.SEC. 3. Section 143.2 is added to the Streets and Highways Code, to read:143.2. (a) For purposes of this section, the following definitions apply:(1) Development franchise agreement means the amended development franchise agreement between SANDAG and the department for the State Highway 125 toll road project, dated December 21, 2011.(2) SANDAG means the San Diego Association of Governments.(3) State Highway 125 toll road project means the State Route 125 demonstration toll road project in the County of San Diego authorized pursuant to authority granted to the department by Chapter 107 of the Statutes of 1989, as subsequently amended by Chapter 1115 of the Statutes of 1990 and Chapter 688 of the Statutes of 2002.(b) Notwithstanding any other law or any condition in the development franchise agreement, SANDAG may terminate the development franchise agreement for the State Route 125 toll road project and the lease of the State Route 125 facility on January 1, 2027, or upon the repayment of all of the bond debt incurred for the State Highway 125 toll road project, whichever is later.(c) Upon the termination of the development franchise agreement and the lease pursuant to subdivision (b), both of the following shall apply:(1) State Route 125 shall no longer be subject to tolls imposed pursuant to Section 143.(2) The department shall be responsible for the maintenance and improvement of State Route 125.SEC. 4. (a) (1) The sum of thirty-five million dollars ($35,000,000) is hereby appropriated from the General Fund, without regard to fiscal years, to the San Diego Association of Governments (SANDAG) to repay the outstanding bond debt incurred for the State Route 125 toll road project, as defined in Section 143.2 of the Streets and Highways Code. (2) SANDAG may only use the moneys appropriated pursuant to paragraph (1) to repay the bond debt if the funds are used in whole or in part to repay the entire outstanding bond debt.(b) Any amount appropriated pursuant to subdivision (a) that exceeds the amount necessary to repay the bond debt in full shall be returned to the Controller for deposit in the General Fund.SECTION 1.It is the intent of the Legislature to enact subsequent legislation to convert State Route 125, the South Bay Expressway, from a toll road to a toll-free road.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. The Legislature finds and declares all of the following:(a) State Route 125, also known as the South Bay Expressway, is the only operating toll road in the County of San Diego.(b) The toll on the South Bay Expressway places an undue burden on South Bay users.(c) The toll on the South Bay Expressway hinders the regions economic development activity by reducing business attraction and retention due to the daily cost of use borne by employees of businesses that may seek to locate in the South Bay area in the County of San Diego.(d) The toll on the South Bay Expressway deters northbound and southbound travelers from fully using an existing, undercapacity road segment and instead encourages them to use existing, already congested State Routes 5 and 805 freeways, thereby increasing vehicle miles traveled and greenhouse gas emissions.(e) The toll on the South Bay Expressway could hamper efficient vehicle and goods movement when the new border crossing between the United States and Mexico in Otay Mesa connecting to State Route 125 opens in 2024.
SECTION 1. The Legislature finds and declares all of the following:(a) State Route 125, also known as the South Bay Expressway, is the only operating toll road in the County of San Diego.(b) The toll on the South Bay Expressway places an undue burden on South Bay users.(c) The toll on the South Bay Expressway hinders the regions economic development activity by reducing business attraction and retention due to the daily cost of use borne by employees of businesses that may seek to locate in the South Bay area in the County of San Diego.(d) The toll on the South Bay Expressway deters northbound and southbound travelers from fully using an existing, undercapacity road segment and instead encourages them to use existing, already congested State Routes 5 and 805 freeways, thereby increasing vehicle miles traveled and greenhouse gas emissions.(e) The toll on the South Bay Expressway could hamper efficient vehicle and goods movement when the new border crossing between the United States and Mexico in Otay Mesa connecting to State Route 125 opens in 2024.
SECTION 1. The Legislature finds and declares all of the following:
### SECTION 1.
(a) State Route 125, also known as the South Bay Expressway, is the only operating toll road in the County of San Diego.
(b) The toll on the South Bay Expressway places an undue burden on South Bay users.
(c) The toll on the South Bay Expressway hinders the regions economic development activity by reducing business attraction and retention due to the daily cost of use borne by employees of businesses that may seek to locate in the South Bay area in the County of San Diego.
(d) The toll on the South Bay Expressway deters northbound and southbound travelers from fully using an existing, undercapacity road segment and instead encourages them to use existing, already congested State Routes 5 and 805 freeways, thereby increasing vehicle miles traveled and greenhouse gas emissions.
(e) The toll on the South Bay Expressway could hamper efficient vehicle and goods movement when the new border crossing between the United States and Mexico in Otay Mesa connecting to State Route 125 opens in 2024.
SEC. 2. Section 143.1 of the Streets and Highways Code is repealed.143.1.(a)Notwithstanding any other provision of law, the demonstration toll road project known as State Highway Route 125 (SR 125) in the County of San Diego, authorized pursuant to authority granted to the department by Chapter 107 of the Statutes of 1989, as subsequently amended by Chapter 1115 of the Statutes of 1990 and Chapter 688 of the Statutes of 2002, shall be subject to tolls for a period of up to 45 years under the following additional terms and conditions:(1)If agreed to by the private entity and the department, and subject to concurrence by the San Diego Association of Governments (SANDAG), the County of San Diego, the City of San Diego, and the City of Chula Vista, by January 2010, all of whom shall exercise their good faith efforts to reach that agreement and concurrence, the SR 125 franchise agreement shall be amended to provide for a lease period of up to 45 years, which shall be reflected in the SR 125 Development Franchise Agreement, dated January 30, 1991, as amended. If an amendment to extend the lease period is agreed to by the parties, the tolls collected during any extension period shall be used for one or more of the following purposes, as specified in the amendment to the agreement:(A)By the private entity to reimburse it for project costs incurred on behalf of the department or SANDAG.(B)By the private entity to compensate or reimburse it for project costs or other impacts for which it is entitled to compensation pursuant to the development franchise agreement or other agreements in effect as of June 30, 2006, with or between the private entity and SANDAG concerning SR 125.(C)By the private entity to reimburse the department or SANDAG for project costs permitted under the development franchise agreement in effect as of June 30, 2006.(D)By the private entity for one or more of the following purposes: the private entitys capital outlay costs for the project; the costs associated with operations, toll collection, and administration of the facility; reimbursement of the state for the costs of maintenance and police services; or a reasonable return on investment to the private entity.(E)The development franchise agreement or any amendment thereto shall require that any excess toll revenue either be applied to repayment of the indebtedness incurred by the private entity with respect to the project, or payment into the State Highway Account for the benefit of the San Diego region, or both.(2)If an amendment to the SR 125 Development Franchise Agreement is not executed by January 31, 2010, or if an amendment to the agreement is executed by January 31, 2010, that extends the lease period for less than 10 additional years, the department and SANDAG may agree, subject to concurrence by the County of San Diego, the City of San Diego, and the City of Chula Vista, to operate and maintain the toll road for any remaining period of time up to a maximum of 10 years following expiration of the agreement. Tolls collected by the department or SANDAG shall be used to reimburse the department or SANDAG, as applicable, for the SR 125 project costs permitted under the development franchise agreement in effect as of June 30, 2006.(3)Except as specifically amended consistent with this section, the SR 125 Development Franchise Agreement shall remain in full force and effect as set forth therein, and this section shall not be deemed to modify any rights or obligations of the parties thereto.(b)SANDAG may operate the SR 125 facility and continue the collection of tolls upon the expiration of the SR 125 Development Franchise Agreement or the up to 10-year period specified in paragraph (2) of subdivision (a), as applicable, subject to a 23 vote of the SANDAG board, pursuant to a plan that specifies the expenditure of toll revenues for projects within the SR 125 corridor. The operation and toll collection may be done in cooperation with the department or solely by SANDAG, with toll revenues to be available for the costs associated with operations, toll collection, and administration of the facility, and reimbursement of the state for the costs of maintenance and police services. Projects eligible for funding from excess toll revenues shall be limited to projects that improve the operation of SR 125, including highway and street projects, truck-only lanes, and transit services and facilities. Any changes to the plan shall require a 23 vote of the SANDAG board.
SEC. 2. Section 143.1 of the Streets and Highways Code is repealed.
### SEC. 2.
143.1.(a)Notwithstanding any other provision of law, the demonstration toll road project known as State Highway Route 125 (SR 125) in the County of San Diego, authorized pursuant to authority granted to the department by Chapter 107 of the Statutes of 1989, as subsequently amended by Chapter 1115 of the Statutes of 1990 and Chapter 688 of the Statutes of 2002, shall be subject to tolls for a period of up to 45 years under the following additional terms and conditions:(1)If agreed to by the private entity and the department, and subject to concurrence by the San Diego Association of Governments (SANDAG), the County of San Diego, the City of San Diego, and the City of Chula Vista, by January 2010, all of whom shall exercise their good faith efforts to reach that agreement and concurrence, the SR 125 franchise agreement shall be amended to provide for a lease period of up to 45 years, which shall be reflected in the SR 125 Development Franchise Agreement, dated January 30, 1991, as amended. If an amendment to extend the lease period is agreed to by the parties, the tolls collected during any extension period shall be used for one or more of the following purposes, as specified in the amendment to the agreement:(A)By the private entity to reimburse it for project costs incurred on behalf of the department or SANDAG.(B)By the private entity to compensate or reimburse it for project costs or other impacts for which it is entitled to compensation pursuant to the development franchise agreement or other agreements in effect as of June 30, 2006, with or between the private entity and SANDAG concerning SR 125.(C)By the private entity to reimburse the department or SANDAG for project costs permitted under the development franchise agreement in effect as of June 30, 2006.(D)By the private entity for one or more of the following purposes: the private entitys capital outlay costs for the project; the costs associated with operations, toll collection, and administration of the facility; reimbursement of the state for the costs of maintenance and police services; or a reasonable return on investment to the private entity.(E)The development franchise agreement or any amendment thereto shall require that any excess toll revenue either be applied to repayment of the indebtedness incurred by the private entity with respect to the project, or payment into the State Highway Account for the benefit of the San Diego region, or both.(2)If an amendment to the SR 125 Development Franchise Agreement is not executed by January 31, 2010, or if an amendment to the agreement is executed by January 31, 2010, that extends the lease period for less than 10 additional years, the department and SANDAG may agree, subject to concurrence by the County of San Diego, the City of San Diego, and the City of Chula Vista, to operate and maintain the toll road for any remaining period of time up to a maximum of 10 years following expiration of the agreement. Tolls collected by the department or SANDAG shall be used to reimburse the department or SANDAG, as applicable, for the SR 125 project costs permitted under the development franchise agreement in effect as of June 30, 2006.(3)Except as specifically amended consistent with this section, the SR 125 Development Franchise Agreement shall remain in full force and effect as set forth therein, and this section shall not be deemed to modify any rights or obligations of the parties thereto.(b)SANDAG may operate the SR 125 facility and continue the collection of tolls upon the expiration of the SR 125 Development Franchise Agreement or the up to 10-year period specified in paragraph (2) of subdivision (a), as applicable, subject to a 23 vote of the SANDAG board, pursuant to a plan that specifies the expenditure of toll revenues for projects within the SR 125 corridor. The operation and toll collection may be done in cooperation with the department or solely by SANDAG, with toll revenues to be available for the costs associated with operations, toll collection, and administration of the facility, and reimbursement of the state for the costs of maintenance and police services. Projects eligible for funding from excess toll revenues shall be limited to projects that improve the operation of SR 125, including highway and street projects, truck-only lanes, and transit services and facilities. Any changes to the plan shall require a 23 vote of the SANDAG board.
(a)Notwithstanding any other provision of law, the demonstration toll road project known as State Highway Route 125 (SR 125) in the County of San Diego, authorized pursuant to authority granted to the department by Chapter 107 of the Statutes of 1989, as subsequently amended by Chapter 1115 of the Statutes of 1990 and Chapter 688 of the Statutes of 2002, shall be subject to tolls for a period of up to 45 years under the following additional terms and conditions:
(1)If agreed to by the private entity and the department, and subject to concurrence by the San Diego Association of Governments (SANDAG), the County of San Diego, the City of San Diego, and the City of Chula Vista, by January 2010, all of whom shall exercise their good faith efforts to reach that agreement and concurrence, the SR 125 franchise agreement shall be amended to provide for a lease period of up to 45 years, which shall be reflected in the SR 125 Development Franchise Agreement, dated January 30, 1991, as amended. If an amendment to extend the lease period is agreed to by the parties, the tolls collected during any extension period shall be used for one or more of the following purposes, as specified in the amendment to the agreement:
(A)By the private entity to reimburse it for project costs incurred on behalf of the department or SANDAG.
(B)By the private entity to compensate or reimburse it for project costs or other impacts for which it is entitled to compensation pursuant to the development franchise agreement or other agreements in effect as of June 30, 2006, with or between the private entity and SANDAG concerning SR 125.
(C)By the private entity to reimburse the department or SANDAG for project costs permitted under the development franchise agreement in effect as of June 30, 2006.
(D)By the private entity for one or more of the following purposes: the private entitys capital outlay costs for the project; the costs associated with operations, toll collection, and administration of the facility; reimbursement of the state for the costs of maintenance and police services; or a reasonable return on investment to the private entity.
(E)The development franchise agreement or any amendment thereto shall require that any excess toll revenue either be applied to repayment of the indebtedness incurred by the private entity with respect to the project, or payment into the State Highway Account for the benefit of the San Diego region, or both.
(2)If an amendment to the SR 125 Development Franchise Agreement is not executed by January 31, 2010, or if an amendment to the agreement is executed by January 31, 2010, that extends the lease period for less than 10 additional years, the department and SANDAG may agree, subject to concurrence by the County of San Diego, the City of San Diego, and the City of Chula Vista, to operate and maintain the toll road for any remaining period of time up to a maximum of 10 years following expiration of the agreement. Tolls collected by the department or SANDAG shall be used to reimburse the department or SANDAG, as applicable, for the SR 125 project costs permitted under the development franchise agreement in effect as of June 30, 2006.
(3)Except as specifically amended consistent with this section, the SR 125 Development Franchise Agreement shall remain in full force and effect as set forth therein, and this section shall not be deemed to modify any rights or obligations of the parties thereto.
(b)SANDAG may operate the SR 125 facility and continue the collection of tolls upon the expiration of the SR 125 Development Franchise Agreement or the up to 10-year period specified in paragraph (2) of subdivision (a), as applicable, subject to a 23 vote of the SANDAG board, pursuant to a plan that specifies the expenditure of toll revenues for projects within the SR 125 corridor. The operation and toll collection may be done in cooperation with the department or solely by SANDAG, with toll revenues to be available for the costs associated with operations, toll collection, and administration of the facility, and reimbursement of the state for the costs of maintenance and police services. Projects eligible for funding from excess toll revenues shall be limited to projects that improve the operation of SR 125, including highway and street projects, truck-only lanes, and transit services and facilities. Any changes to the plan shall require a 23 vote of the SANDAG board.
SEC. 3. Section 143.2 is added to the Streets and Highways Code, to read:143.2. (a) For purposes of this section, the following definitions apply:(1) Development franchise agreement means the amended development franchise agreement between SANDAG and the department for the State Highway 125 toll road project, dated December 21, 2011.(2) SANDAG means the San Diego Association of Governments.(3) State Highway 125 toll road project means the State Route 125 demonstration toll road project in the County of San Diego authorized pursuant to authority granted to the department by Chapter 107 of the Statutes of 1989, as subsequently amended by Chapter 1115 of the Statutes of 1990 and Chapter 688 of the Statutes of 2002.(b) Notwithstanding any other law or any condition in the development franchise agreement, SANDAG may terminate the development franchise agreement for the State Route 125 toll road project and the lease of the State Route 125 facility on January 1, 2027, or upon the repayment of all of the bond debt incurred for the State Highway 125 toll road project, whichever is later.(c) Upon the termination of the development franchise agreement and the lease pursuant to subdivision (b), both of the following shall apply:(1) State Route 125 shall no longer be subject to tolls imposed pursuant to Section 143.(2) The department shall be responsible for the maintenance and improvement of State Route 125.
SEC. 3. Section 143.2 is added to the Streets and Highways Code, to read:
### SEC. 3.
143.2. (a) For purposes of this section, the following definitions apply:(1) Development franchise agreement means the amended development franchise agreement between SANDAG and the department for the State Highway 125 toll road project, dated December 21, 2011.(2) SANDAG means the San Diego Association of Governments.(3) State Highway 125 toll road project means the State Route 125 demonstration toll road project in the County of San Diego authorized pursuant to authority granted to the department by Chapter 107 of the Statutes of 1989, as subsequently amended by Chapter 1115 of the Statutes of 1990 and Chapter 688 of the Statutes of 2002.(b) Notwithstanding any other law or any condition in the development franchise agreement, SANDAG may terminate the development franchise agreement for the State Route 125 toll road project and the lease of the State Route 125 facility on January 1, 2027, or upon the repayment of all of the bond debt incurred for the State Highway 125 toll road project, whichever is later.(c) Upon the termination of the development franchise agreement and the lease pursuant to subdivision (b), both of the following shall apply:(1) State Route 125 shall no longer be subject to tolls imposed pursuant to Section 143.(2) The department shall be responsible for the maintenance and improvement of State Route 125.
143.2. (a) For purposes of this section, the following definitions apply:(1) Development franchise agreement means the amended development franchise agreement between SANDAG and the department for the State Highway 125 toll road project, dated December 21, 2011.(2) SANDAG means the San Diego Association of Governments.(3) State Highway 125 toll road project means the State Route 125 demonstration toll road project in the County of San Diego authorized pursuant to authority granted to the department by Chapter 107 of the Statutes of 1989, as subsequently amended by Chapter 1115 of the Statutes of 1990 and Chapter 688 of the Statutes of 2002.(b) Notwithstanding any other law or any condition in the development franchise agreement, SANDAG may terminate the development franchise agreement for the State Route 125 toll road project and the lease of the State Route 125 facility on January 1, 2027, or upon the repayment of all of the bond debt incurred for the State Highway 125 toll road project, whichever is later.(c) Upon the termination of the development franchise agreement and the lease pursuant to subdivision (b), both of the following shall apply:(1) State Route 125 shall no longer be subject to tolls imposed pursuant to Section 143.(2) The department shall be responsible for the maintenance and improvement of State Route 125.
143.2. (a) For purposes of this section, the following definitions apply:(1) Development franchise agreement means the amended development franchise agreement between SANDAG and the department for the State Highway 125 toll road project, dated December 21, 2011.(2) SANDAG means the San Diego Association of Governments.(3) State Highway 125 toll road project means the State Route 125 demonstration toll road project in the County of San Diego authorized pursuant to authority granted to the department by Chapter 107 of the Statutes of 1989, as subsequently amended by Chapter 1115 of the Statutes of 1990 and Chapter 688 of the Statutes of 2002.(b) Notwithstanding any other law or any condition in the development franchise agreement, SANDAG may terminate the development franchise agreement for the State Route 125 toll road project and the lease of the State Route 125 facility on January 1, 2027, or upon the repayment of all of the bond debt incurred for the State Highway 125 toll road project, whichever is later.(c) Upon the termination of the development franchise agreement and the lease pursuant to subdivision (b), both of the following shall apply:(1) State Route 125 shall no longer be subject to tolls imposed pursuant to Section 143.(2) The department shall be responsible for the maintenance and improvement of State Route 125.
143.2. (a) For purposes of this section, the following definitions apply:
(1) Development franchise agreement means the amended development franchise agreement between SANDAG and the department for the State Highway 125 toll road project, dated December 21, 2011.
(2) SANDAG means the San Diego Association of Governments.
(3) State Highway 125 toll road project means the State Route 125 demonstration toll road project in the County of San Diego authorized pursuant to authority granted to the department by Chapter 107 of the Statutes of 1989, as subsequently amended by Chapter 1115 of the Statutes of 1990 and Chapter 688 of the Statutes of 2002.
(b) Notwithstanding any other law or any condition in the development franchise agreement, SANDAG may terminate the development franchise agreement for the State Route 125 toll road project and the lease of the State Route 125 facility on January 1, 2027, or upon the repayment of all of the bond debt incurred for the State Highway 125 toll road project, whichever is later.
(c) Upon the termination of the development franchise agreement and the lease pursuant to subdivision (b), both of the following shall apply:
(1) State Route 125 shall no longer be subject to tolls imposed pursuant to Section 143.
(2) The department shall be responsible for the maintenance and improvement of State Route 125.
SEC. 4. (a) (1) The sum of thirty-five million dollars ($35,000,000) is hereby appropriated from the General Fund, without regard to fiscal years, to the San Diego Association of Governments (SANDAG) to repay the outstanding bond debt incurred for the State Route 125 toll road project, as defined in Section 143.2 of the Streets and Highways Code. (2) SANDAG may only use the moneys appropriated pursuant to paragraph (1) to repay the bond debt if the funds are used in whole or in part to repay the entire outstanding bond debt.(b) Any amount appropriated pursuant to subdivision (a) that exceeds the amount necessary to repay the bond debt in full shall be returned to the Controller for deposit in the General Fund.
SEC. 4. (a) (1) The sum of thirty-five million dollars ($35,000,000) is hereby appropriated from the General Fund, without regard to fiscal years, to the San Diego Association of Governments (SANDAG) to repay the outstanding bond debt incurred for the State Route 125 toll road project, as defined in Section 143.2 of the Streets and Highways Code. (2) SANDAG may only use the moneys appropriated pursuant to paragraph (1) to repay the bond debt if the funds are used in whole or in part to repay the entire outstanding bond debt.(b) Any amount appropriated pursuant to subdivision (a) that exceeds the amount necessary to repay the bond debt in full shall be returned to the Controller for deposit in the General Fund.
SEC. 4. (a) (1) The sum of thirty-five million dollars ($35,000,000) is hereby appropriated from the General Fund, without regard to fiscal years, to the San Diego Association of Governments (SANDAG) to repay the outstanding bond debt incurred for the State Route 125 toll road project, as defined in Section 143.2 of the Streets and Highways Code.
### SEC. 4.
(2) SANDAG may only use the moneys appropriated pursuant to paragraph (1) to repay the bond debt if the funds are used in whole or in part to repay the entire outstanding bond debt.
(b) Any amount appropriated pursuant to subdivision (a) that exceeds the amount necessary to repay the bond debt in full shall be returned to the Controller for deposit in the General Fund.
It is the intent of the Legislature to enact subsequent legislation to convert State Route 125, the South Bay Expressway, from a toll road to a toll-free road.