Amended IN Senate April 18, 2022 Amended IN Senate March 15, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 1169Introduced by Senator HuesoFebruary 17, 2022 An act 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. transportation.LEGISLATIVE COUNSEL'S DIGESTSB 1169, as amended, Hueso. State 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.Digest Key Vote: TWO_THIRDSMAJORITY Appropriation: YESNO Fiscal Committee: YES 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 Interstate 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.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 Route 125 toll road project, dated December 21, 2011.(2) SANDAG means the San Diego Association of Governments.(3) State Highway Route 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 Route 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. Amended IN Senate April 18, 2022 Amended IN Senate March 15, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 1169Introduced by Senator HuesoFebruary 17, 2022 An act 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. transportation.LEGISLATIVE COUNSEL'S DIGESTSB 1169, as amended, Hueso. State 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.Digest Key Vote: TWO_THIRDSMAJORITY Appropriation: YESNO Fiscal Committee: YES Local Program: NO Amended IN Senate April 18, 2022 Amended IN Senate March 15, 2022 Amended IN Senate April 18, 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 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. transportation. LEGISLATIVE COUNSEL'S DIGEST ## LEGISLATIVE COUNSEL'S DIGEST SB 1169, as amended, Hueso. State 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 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. ## 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 Interstate 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.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 Route 125 toll road project, dated December 21, 2011.(2) SANDAG means the San Diego Association of Governments.(3) State Highway Route 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 Route 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. 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 Interstate 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 Interstate 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 Interstate 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. SEC. 2. Section 143.1 of the Streets and Highways Code is repealed. ### SEC. 2. 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 Route 125 toll road project, dated December 21, 2011.(2) SANDAG means the San Diego Association of Governments.(3) State Highway Route 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 Route 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 Route 125 toll road project, dated December 21, 2011.(2) SANDAG means the San Diego Association of Governments.(3) State Highway Route 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 Route 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 Route 125 toll road project, dated December 21, 2011.(2) SANDAG means the San Diego Association of Governments.(3) State Highway Route 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 Route 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 Route 125 toll road project, dated December 21, 2011.(2) SANDAG means the San Diego Association of Governments.(3) State Highway Route 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 Route 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 Route 125 toll road project, dated December 21, 2011. (2) SANDAG means the San Diego Association of Governments. (3) State Highway Route 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 Route 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. (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.