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SB-1050 Metropolitan Transportation Commission: State Route 37 Toll Bridge Act.(2021-2022)

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Date Published: 06/30/2022 04:00 AM
SB1050:v96#DOCUMENT

Amended  IN  Assembly  June 29, 2022
Amended  IN  Senate  May 23, 2022
Amended  IN  Senate  March 14, 2022

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill
No. 1050


Introduced by Senator Dodd

February 15, 2022


An act to add Section 30970 to, and to add Chapter 4.1 (commencing with Section 30925) to Division 17 of of, the Streets and Highways Code, relating to state highways.


LEGISLATIVE COUNSEL'S DIGEST


SB 1050, as amended, Dodd. Metropolitan Transportation Commission: State Route 37 Toll Bridge Act.
Existing law creates the Metropolitan Transportation Commission (MTC) as a local area planning agency to provide comprehensive regional transportation planning for the region comprising the City and County of San Francisco and the Counties of Alameda, Contra Costa, Marin, Napa, San Mateo, Santa Clara, Solano, and Sonoma.
The California Toll Bridge Authority Act makes the California Transportation Commission, Commission (CTC), together with the Department of Transportation, responsible for building and acquiring toll facilities and related transportation facilities. Existing law authorizes regional transportation agencies, including MTC, and the department to apply to CTC to develop and operate high-occupancy toll lanes or other toll facilities, as specified.
This bill would authorize MTC to apply to CTC for high-occupancy toll lanes or other toll facilities to be developed and operated on State Route 37, as provided. If CTC approves the application submitted by MTC, the bill would create the SR-37 Toll Authority as a public instrumentality governed by the same board as that governing the Bay Area Infrastructure Financing Authority. The bill would require the authority to operate and maintain tolling infrastructure, including by installing toll facilities, and to collect tolls for the use of the Sonoma Creek Bridge, and would authorize the authority to design and construct improvements on the bridge and a specified corridor of State Route 37 in accordance with programming and scheduling requirements adopted by the authority. The bill would authorize the authority to issue bonds payable from the revenues derived from those tolls. The bill would authorize revenues from the toll bridge to be used for specified purposes, including capital improvements to repair or rehabilitate the toll bridge, to expand toll bridge capacity, to improve toll bridge or corridor operations, to reduce the demand for travel in the corridor, and to increase public transit, carpool, vanpool, and nonmotorized options on the toll bridge or in the corridor, as specified. The bill would require the authority to develop and approve an expenditure plan for the revenues of the toll bridge, and any related toll bridge revenue bonds, and to update that plan at least every 3 years. The bill would require that the authority’s toll schedule provide a 50% discount to qualifying high-occupancy vehicles and between a 25% and 50%, inclusive, discount to low-income drivers, as defined, who subscribe to the electronic toll collection system administered by the Bay Area Toll Authority.

The

If CTC approves the application submitted by MTC, the bill would create the SR-37 Toll Account and provide for the deposit of toll revenues and all other income derived from the toll bridge into the account. The bill would authorize the moneys in the account to be used by the authority, upon appropriation by the Legislature, for the purposes described above.

The

If CTC approves the application submitted by MTC, the bill would require that any action or proceeding to contest, question, or deny the validity of the tolls, the issuance of the toll bridge revenue bonds, or the incurrence of any other related obligations be commenced within 60 days from the effective date of the bill.

To the extent this bill would mandate that a local government provide a new program or higher level of service, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YESNO  

The people of the State of California do enact as follows:


SECTION 1.

 Chapter 4.1 (commencing with Section 30925) is added to Division 17 of the Streets and Highways Code, to read:
CHAPTER  4.1. State Route 37 Toll Bridge Act
Article  1. General Provisions

30925.
 (a) The Legislature finds and declares all of the following:
(1) State Route 37 serves as a vital connection between the Counties of Marin, Napa, Sonoma, and Solano, providing an indispensable link between the North Bay and the rest of the state. State Route 37 is the northernmost nonmountainous east-west link between United States Highway 101 and Interstate 80 in the state, and serves as a recovery route for the Richmond-San Rafael Bridge in the event of an emergency closure.
(2) Traffic congestion on State Route 37 is degrading the quality of life for those living and commuting along the corridor, and shows no signs of abating. Average annual daily trips are projected to increase from 45,000 in 2013 to 58,000 by 2040.
(3) State Route 37 is protected by a complex system of interconnected levees, which makes the corridor vulnerable to sea level rise inundation and flooding now and in the future. Flooding in 2017 forced full or partial closures of a westbound segment of State Route 37 in the County of Marin for a total of 27 days, and recurring inundation in 2019 resulted in closures for another 8 days.
(4) Adaptive action is needed to ensure State Route 37 remains a viable transportation artery. According to the 2018 SR 37 Transportation and Sea Level Rise Corridor Improvement Plan, without action, all segments of State Route 37 could be exposed to storm surge flooding from a 5- to 10-year coastal storm event by 2050, and by 2100 sea level rise is likely to render State Route 37 completely impassable.
(5) State Route 37 runs through an ecologically rich area that provides habitat for nine special status species, is a principal stop for migratory birds on the Pacific Flyway, and includes many acres of wetlands and baylands. There are numerous environmental benefits conjunctive to addressing the segment of State Route 37 between State Route 121 and Mare Island.
(6) The Bay Area Toll Authority, District 4 of the Department of Transportation, the Sonoma County Transportation Authority, the Solano Transportation Authority, the Transportation Authority of Marin, and the Napa Valley Transportation Authority entered into a memorandum of understanding in February 2019 to cooperatively determine mutual responsibilities in delivering the State Route 37 Resilient Corridor Program.
(7) This act will improve the resiliency of transportation infrastructure from sea level rise, flooding, and traffic congestion, and increase opportunities for ecological enhancements, transit, multimodal use, and public access along the State Route 37 corridor.
(8) Tolling a portion of the State Route 37 corridor is necessary to provide the resources, including leveraging state and federal funding, required to help realize the above-mentioned improvements and enable work to begin in a timely manner.
(9) According to American Community Survey data from the United States Census, a higher share of lower-income households commute along the State Route 37 corridor than on existing state-owned toll bridges, underscoring the importance of taking social equity into account when instituting tolls in this corridor.
(b) It is the intent of the Legislature that this chapter authorize the imposition of tolls only for so long as is necessary to achieve the chapter’s goals.

30925.1.
 This chapter shall be known, and may be cited, as the State Route 37 Toll Bridge Act.

30925.2.
 (a) The SR-37 Toll Authority is hereby created.
(b) The authority is a public instrumentality governed by the same board as that governing the Bay Area Infrastructure Financing Authority.
(c) The authority is, however, a separate entity from the Bay Area Infrastructure Financing Authority.

30925.4.
 (a) The SR-37 Toll Account is hereby created. Moneys in the account shall be available to the authority, upon appropriation by the Legislature, for the purposes described in this chapter.
(b) The authority shall control and maintain the SR-37 Toll Account and may establish subaccounts within the account, as it deems necessary and appropriate, to document tolls and other revenue and operating expenditures in accordance with generally accepted accounting principles.
(c) Notwithstanding any other law, toll revenues and all other income derived from the toll bridge pursuant to this chapter shall be deposited into the SR-37 Toll Account. All tolls collected pursuant to this chapter shall be paid to the authority directly, be deposited into the SR-37 Toll Account, and constitute revenues of the tolls imposed on the toll bridge for the purposes set forth in this chapter. The authority shall be responsible for the administration of all revenues from the toll bridge.
(d) Following the commencement of collection of tolls on the toll bridge, 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 pursuant to this subdivision.

30925.5.
 For purposes of this chapter, the following definitions apply:
(a) “Act” means the State Route 37 Toll Bridge Act.
(b) “Authority” means the SR-37 Toll Authority created pursuant to Section 30925.2.
(c) “Bay Area Infrastructure Financing Authority” means the Bay Area Infrastructure Financing Authority established pursuant to the Joint Exercise of Powers Agreement between the Metropolitan Transportation Commission and Bay Area Toll Authority, dated as of August 1, 2006, as amended, or another joint powers authority formed by the Metropolitan Transportation Commission and the Bay Area Toll Authority and designated as the SR-37 managing board in a resolution of the board of the Bay Area Infrastructure Financing Authority.
(d) “Bonds” means any bonds, notes, commercial paper, fixed or variable interest rate obligations or variable maturity securities, and any other evidence of indebtedness issued pursuant to this chapter.
(e) “Corridor” means the State Route 37 roadway, which begins at the intersection with United States Highway 101 in the City of Novato in the County of Marin and extends to the intersection with Interstate 80 in the City of Vallejo in the County of Solano.
(f) “Department” means the Department of Transportation.
(g) “Interim Project” or “State Route 37 Sears Point to Mare Island Improvement Project” means the near-term improvements described in paragraph (1) of subdivision (b) of Section 30926.1.
(h) “Low income” means a gross household income at or below 200 percent of the federal poverty level.
(i) “SR-37 Toll Account” means the account established pursuant to Section 30925.4.
(j) “State Route 37” has the same meaning as defined in Section 337.
(k) “State Route 37 Policy Committee” means the multicounty committee of policy makers participating from the Counties of Marin, Napa, Sonoma, and Solano that was formed in 2015 as part of a memorandum of understanding to discuss joint county efforts to improve the corridor and to address issues such as sea level rise, traffic congestion, transit options, and recreational activities.
(l) “Toll bridge revenue bonds” means bonds issued pursuant to Article 3 (commencing with Section 30927).
(m) “Toll bridge” means the Sonoma Creek Bridge, together with necessary approaches. The approaches to the bridge shall include from immediately east of the State Route 37 intersection with State Route 121 in the County of Sonoma to immediately west of the State Route 37 intersection with Walnut Avenue in the County of Solano.
(n) “Ultimate Project” or “State Route 37 Ultimate Sea Level Rise Adaptation Project” means the long-term improvements described in paragraph (2) of subdivision (b) of Section 30926.1.

Article  2. Powers and Duties

30926.
 The authority shall operate and maintain tolling infrastructure, including by installing toll facilities, and shall collect tolls for the use of the toll bridge and administer such toll revenues, and may design and construct improvements on the toll bridge and corridor in accordance with programming and scheduling requirements adopted by the authority. This chapter does not limit the authority or responsibility of the state, including the department, to maintain State Route 37.

30926.1.
 (a) Subject to the prior payment of all costs identified in paragraphs (7) and (9) of subdivision (b), in preparing its annual budget the authority shall prioritize expenditures of revenues from the toll bridge for improvements to the toll bridge, including the cost of any required environmental mitigation.
(b) Revenues from the toll bridge may be used for any of the following purposes:
(1) Near-term improvements to the toll bridge, known as the Interim Project, from the intersection of State Route 37 with State Route 121 at Sears Point to Mare Island. The goal of the Interim Project is to improve travel times in the corridor and increase vehicle passenger occupancy by creating a time-savings incentive for carpools, microtransit, and bus transit. Any new travel lanes for motorized vehicles shall be restricted to high-occupancy vehicles during peak traffic hours in order to encourage mode shift away from single-occupancy vehicles and provide travel time savings for passengers of high-occupancy vehicles.
(2) Long-term improvements as part of the State Route 37 Ultimate Sea Level Rise Adaptation Project, known as the Ultimate Project. The Ultimate Project includes the rebuilding of State Route 37 between United States Highway 101 in the City of Novato in the County of Marin to Interstate 80 in the City of Vallejo in the County of Solano into a multimodal facility to relieve congestion and increase reliability by designing for sea-level sea level rise. The project scope may include multimodal improvements, including a high-occupancy-vehicle lane for express bus services, a separated facility for the exclusive use of bicycles and pedestrians, other public access improvements, and, where feasible, passage of water, sediment, and wildlife. This description of the preliminary scope of the Ultimate Project is not intended to limit or determine the Ultimate Project scope and design, which shall be determined by the lead agency and partner agencies, in consultation with the State Route 37 Policy Committee, key stakeholders, and the general public, as part of the environmental review process.
(3) Costs for capital improvements to repair or rehabilitate the toll bridge, to expand toll bridge capacity, to improve toll bridge or corridor operations, to reduce the demand for travel in the corridor, or to increase public transit, carpool, vanpool, and nonmotorized options on the toll bridge or in the corridor.
(4) Costs to integrate ecological restoration and environmental enhancement in the San Pablo Baylands beyond required mitigation into the Interim and Ultimate Projects. Eligible expenditures may include, but are not limited to, any of the following:
(A) Coordination with natural resource agencies, land managers, nonprofit organizations, flood control districts, and other applicable entities to facilitate the implementation of ecological restoration and environmental enhancement during the planning, design, environmental review, and project delivery phases of the interim and ultimate projects. Interim and Ultimate Projects.
(B) Preparation and implementation of a regional advance mitigation program and regional conservation investment strategy for the Interim and Ultimate Projects consistent with the definition of advance mitigation in subdivision (c) of Section 800.5.
(C) Land acquisition for purposes of ecological restoration and environmental enhancement in the San Pablo Baylands.
(D) Designing, permitting, and constructing ecological restoration and environmental enhancement projects in the San Pablo Baylands.
(5) Public access projects, including water trails, observation areas, and parking lots, and San Francisco Bay Trail gap closures.
(6) Capital and operating costs, to the extent permitted under federal law, associated with fixed-route or on-demand transit or vanpool service in the State Route 37 corridor between the Counties of Solano and Marin, including implementation of incentives to encourage high-occupancy vehicle travel.
(7) Costs incurred by the authority and the Bay Area Infrastructure Financing Authority pursuant to this chapter for operations, toll collection, and administration.
(8) Reimbursement to federal, state, and local agencies for costs incurred by those agencies for services provided for purposes of this chapter that are reimbursable pursuant to a written agreement between the authority and the respective agency.
(9) Payments pursuant to bonds and resolutions, indentures, or related instruments or agreements, including without limitation, any costs of issuance, debt service, or other reserves and the requirements of any other constituent instruments defining the rights of holders of related obligations of the authority entered into pursuant to Section 5922 of the Government Code, and any repayment or reimbursement obligations of the authority to any providers of bond insurance or letters of credit or lines of credit related to bonds.
(10) Other costs incurred pursuant to this chapter.

30926.2.
 The authority and the Bay Area Infrastructure Financing Authority shall be reimbursed for their combined administrative costs in an amount that shall not exceed 3 percent of toll bridge revenues.

30926.3.
 The authority shall have, and may exercise, all rights and powers, expressed or implied, that are necessary to carry out the purposes and intent of this chapter, including the power to do all of the following:
(a) Consult with counties, cities, towns, and other agencies and political subdivisions of this state regarding plans and projects authorized by this chapter, and apply for, accept, receive, and disburse grants, loans, and other assistance from the United States of America, the State of California, and any agencies thereof.
(b) Acquire by dedication, gift, purchase, or eminent domain, and hold and dispose of any interests in property whether real or personal in the exercise of its powers and the performance of its duties under this chapter.
(c) Establish and enforce policies, rules, and regulations for the administration, operation, and maintenance of the toll bridge and corridor.
(d) Make and enter into contracts and sue and be sued in its own name.
(e) Invest any moneys not required for the immediate necessities of the authority, as the authority determines is advisable.
(f) Do all acts necessary and convenient for the full exercise of the powers granted pursuant to this chapter.

30926.4.
 (a) The authority shall develop and approve an expenditure plan for the revenues of the toll bridge, and any related toll bridge revenue bonds, which shall be updated at least every three years. The first expenditure plan shall be completed within 90 days of the effective date of the initial toll schedule.
(b) The authority shall approve each expenditure plan at a public meeting held by the authority following a notice of at least 30 days to the public.
(c) The authority shall arrange for an annual audit of the revenues expended each year pursuant to this chapter by a certified public accountant.

30926.5.
 The authority shall consult with, and consider recommendations of, the State Route 37 Policy Committee and representatives of the department, the Sonoma County Transportation Authority, the Solano Transportation Authority, the Napa Valley Transportation Authority, and the Transportation Authority of Marin regarding plans and projects authorized by this chapter.

30926.6.
 The toll bridge does not constitute a state-owned toll bridge within the region, as defined in Section 66502 of the Government Code, for purposes of Chapters 4 (commencing with Section 30910), 4.3 (commencing with Section 30950), 4.5 (commencing with Section 31000), and 4.6 (commencing with Section 31070).

Article  3. Toll Bridge Revenue Bonds

30927.
 (a) The authority may issue bonds payable from the revenues derived from the tolls imposed on the toll bridge for any project or purpose authorized in this chapter, including bonds to refund outstanding bonds or other obligations of the authority.
(b) The authority may pledge all or any part of the revenues of the toll bridge and other lawfully available funds of the authority to secure toll bridge revenue bonds or related obligations of the authority entered into pursuant to Section 5922 of the Government Code and any repayment or reimbursement obligations of the authority to any provider of bond insurance, letter of credit, line of credit, reserve fund surety, or other facility providing credit or liquidity support for any toll bridge revenue bonds.
(c) The state hereby pledges to, and agrees with, the holders of the toll bridge revenue bonds that the state will not limit, alter, or restrict the rights hereby vested in the authority to finance the projects and purposes authorized in this chapter or to fulfill each pledge of revenues and any other terms of any agreement made with or for the benefit of the bondholders or in any way impair the terms of any agreements made with, or the rights or remedies of, the bondholders or the providers of bond insurance or letter of credit or line of credit facilities entered into in accordance with this chapter.
(d) Toll bridge revenue bonds issued pursuant to this chapter shall be special obligations of the authority and shall not constitute a debt or liability of the State of California or any political subdivision of the state, other than the authority, or a pledge of the full faith and credit of the state or any political subdivision of the state.
(e) Nothing in this chapter shall be deemed to pledge the full faith and credit of the State of California.
(f) Any toll bridge revenue bond shall contain on its face a statement to the following effect: “Neither the full faith and credit nor the taxing power of the State of California is pledged to the payment of principal of, or the interest of this bond.”
(g) The authority may include the pledges made pursuant to this section in its revenue bonds.

30927.2.
 The toll bridge revenue bonds are legal investments for all trust funds, the funds of all insurance companies, banks, trust companies, executors, administrators, trustees, and other fiduciaries. The toll bridge revenue bonds are securities that may legally be deposited with, and received by, any state or municipal officer or agency or political subdivision of the state for any purpose for which the deposit of bonds or obligation of the state is now, or may hereafter be, authorized by law, including deposits to secure public funds.

30927.4.
 (a) The authority may issue toll bridge revenue bonds pursuant to a resolution it adopts by a majority vote of its governing board.
(b) A resolution to issue toll bridge revenue bonds shall specify all of the following:
(1) The purposes for which the toll bridge revenue bonds are to be issued.
(2) The maximum principal amount of the toll bridge revenue bonds.
(3) The maximum term for the toll bridge revenue bonds.
(4) The maximum rate of interest to be payable on the toll bridge revenue bonds. 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.
(c) The principal of, and interest on, the toll bridge revenue bonds shall be payable in lawful money of the United States.
(d) The toll bridge revenue bonds, or each series of toll bridge revenue bonds, shall be dated and numbered consecutively and shall be signed by an officer of the authority as authorized in a resolution of the authority. If any officer whose signature appears on the toll bridge revenue bonds ceases to be that officer before the delivery of the toll bridge revenue bonds, the officer’s signature is as effective as if the officer had remained in office.
(e) The toll bridge revenue bonds may be sold as the authority determines by resolution, and the toll bridge revenue bonds may be sold at prices above or below par, whether by negotiated or public sale.
(f) Delivery of any toll bridge revenue bonds may be made at any place either inside or outside the state, and the purchase price may be received in cash or bank credits.
(g) The authority may provide for the issuance, sale, or exchange of refunding bonds to redeem or retire any bonds issued by the authority upon the terms, at the times, and in the manner which it determines.

30927.7.
 (a) Refunding toll bridge revenue bonds may be issued in a principal amount sufficient to pay all, or any part of, the principal of the outstanding toll bridge revenue bonds and other obligations of the authority, the premiums, if any, due upon call and redemption thereof prior to maturity, all expenses of the refunding, and any of the following:
(1) The interest upon the refunding toll bridge revenue bonds from the date of sale thereof to the date of payment of the toll bridge revenue bonds to be refunded out of the proceeds of the sale of the refunding toll bridge revenue bonds or to the date upon which the toll bridge revenue bonds to be refunded will be paid pursuant to call or agreement with the holders of the toll bridge revenue bonds.
(2) The interest upon the toll bridge revenue bonds to be refunded from the date of sale of the refunding toll bridge revenue bonds to the date of payment of the toll bridge revenue bonds to be refunded or to the date upon which the toll bridge revenue bonds to be refunded will be paid pursuant to call or agreement with the holders of the toll bridge revenue bonds.
(b) The provisions of this chapter for the issuance and sale of toll bridge revenue bonds apply to the issuance and sale of any toll bridge revenue bonds for refunding purposes.
(c) The authority may also borrow money in anticipation of the sale of toll bridge revenue bonds, which have been authorized pursuant to this chapter, but which have not been sold or delivered, and may issue toll bridge revenue bonds that are negotiable bond anticipation notes therefor and may renew the bond anticipation notes from time to time.
(d) The toll bridge revenue bonds that are bond anticipation notes, and the interest thereon, may be paid from any money of the authority available therefor, including the revenues from the toll bridge. If not previously otherwise paid, the bond anticipation notes, or any portion thereof, or the interest thereon, shall be paid from the proceeds of the next sale of toll bridge revenue bonds in anticipation of which the notes were issued.
(e) The toll bridge revenue bonds that are bond anticipation notes shall not be issued in any amount in excess of the aggregate amount of the toll bridge revenue bonds, which the authority has been authorized to issue, less the amount of any toll bridge revenue bonds of the authorized issue previously sold, and also less the amount of other bond anticipation notes therefor issued and then outstanding.
(f) The provisions of this chapter for the issuance and sale of toll bridge revenue bonds apply to the issuance and sale of any toll bridge revenue bonds that are bond anticipation notes.

30927.8.
 The revenues from the tolls on the toll bridge 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 the provider with respect to those bonds. The lien shall immediately attach to the toll revenues and be effective, binding, and enforceable against the authority, its successors, creditors, and all others asserting the 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. The toll revenues shall remain subject to the lien until all bonds are paid in full or provisions are made therefor. Consistent with Section 30928, the toll bridge shall not become a free public bridge until that time.

Article  4. Toll Rates

30928.
 (a) A toll in an amount not less than one dollar ($1) nor greater than the toll bridge rates imposed by the Bay Area Toll Authority, other than the rates imposed on the San Francisco-Oakland Bay Bridge during peak hours, is hereby imposed on vehicles crossing the toll bridge. The toll imposed in this subdivision shall not become effective until the authority adopts a resolution as provided in subdivision (c). The authority shall maintain a toll schedule specifying the tolls to be charged on vehicles traveling on the toll bridge, the direction, or directions, of traffic for which those tolls will be charged, the times of day during which those tolls shall be charged, all subject to the limitations and requirements set forth in this chapter. The authority may charge tolls in both directions of State Route 37, in which case the toll in either direction shall be set so that the combined sum, not including any discounts or premiums, is consistent with the maximum and minimum amount listed in this subdivision.
(b) It is the intent of the Legislature to maintain tolls on the toll bridge at rates sufficient to meet any obligation to the holders of bonds and other obligations secured by the bridge toll revenues. Notwithstanding any other law, including without limitation the maximum toll amount specified in subdivision (a), the authority shall set the toll schedule in an amount as may be necessary to meet the obligations and covenants under any bonds, resolutions, indentures, evidences of indebtedness, or related instruments or agreements, including without limitation, the requirements of any other constituent instruments defining the rights of holders of related obligations of the authority entered into pursuant to Section 5922 of the Government Code, and any repayment or reimbursement obligations of the authority to any providers of bond insurance or letters of credit or lines of credit related to bonds, and, the authority may increase the toll rates specified in the adopted toll schedule to provide funds for the planning, design, construction, operation, maintenance, repair, replacement, rehabilitation, environmental mitigation, and seismic retrofit of the toll bridge.
(c) The tolls specified in the toll schedule, as provided for in subdivision (a), shall become effective on or after January 1, 2026, pursuant to a resolution by the authority adopting the toll schedule and authorizing other actions as may be necessary or desirable in connection with the authority establishing tolling operations on the toll bridge.
(d) At least 30 days before adopting the initial toll schedule for the toll bridge, and thereafter when a revision to the toll schedule is proposed, other than as provided in subdivision (b), the authority shall do both of the following:
(1) Provide a public comment period regarding the proposed toll rates.
(2) Take public testimony at one or more public meetings.
(e) If the authority has issued toll revenue bonds, collection of tolls shall cease following repayment of all toll bridge revenue bonds and related expenditures pursuant to paragraph (9) of subdivision (b) of Section 30926.1, unless continuation of the tolls is determined by the authority to be necessary to reduce vehicle miles traveled on the facility and support continued incentives for transit use and carpooling and an extension of the time for toll collection is approved by a two-thirds vote of the authority at a public meeting following a notice of at least 30 days to the public.

30928.2.
 Within two years following the imposition of the initial toll rates and at least biennially thereafter, the authority shall review the adequacy of the toll rates to cover costs incurred pursuant to this chapter, including for improvements.

30928.4.
 (a) The authority’s toll schedule shall provide a 50 percent discount to qualifying high-occupancy vehicles to incentivize carpooling and maximize person throughput in the corridor. The authority may also include discounts and premiums to reduce congestion and the emissions of greenhouse gases, including, without limitation, discounts for off-peak travel and premiums for on-peak travel.
(b) The authority may vary the toll rate applicable to a vehicle operated on the bridge for the carriage of passengers by any municipal or public corporation, transit district, public utility district, or transportation company operating under a certificate of public convenience and necessity.

30928.6.
 (a) The authority’s toll schedule shall offer a discount of at least 25 percent and no more than 50 percent that shall be available to low-income drivers who subscribe to the electronic toll collection system administered by the Bay Area Toll Authority. The authority shall develop a privacy policy to protect any personally identifiable information collected as part of the application process, which shall be described in the application materials.
(b) For purposes of verifying a driver’s eligibility for the low-income discount, the authority shall accept all of the following:
(1) Unexpired proof of enrollment or participation in another low-income program with the same or a more exacting low-income requirement, including, but not limited to, the Clipper START discount transit fare program in the San Francisco Bay area, the CalFresh program established pursuant to (Chapter 10 (commencing with Section 18900) of Part 6 of Division 9 of the Welfare and Institutions Code), and Medi-Cal.
(2) A county benefit eligibility letter.
(3) A tax return from the previous year.
(4) Other evidence of the driver’s income, as determined to be sufficient by the authority.

30928.8.
 Notwithstanding any other law, any action or proceeding to contest, question, or deny the validity of the tolls authorized under this chapter or the issuance of any toll bridge revenue bonds or incurrence of any other obligations hereunder, and all proceedings in relation thereto, is contested, questioned, or denied, shall be commenced within 60 days from the effective date of the bill that added this section; otherwise, such tolls and the issuance of any toll bridge revenue bonds or incurrence of any other obligations under this chapter, and all proceedings in relation thereto, shall be held to be valid and in every respect legal and uncontestable.

Article  5. Operation of this Chapter

30930.
 This chapter shall become operative upon the California Transportation Commission approving an application submitted by the Metropolitan Transportation Commission pursuant to subdivision (a) of Section 30970.

SEC. 2.

If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.

SEC. 2.

 Section 30970 is added to the Streets and Highways Code, immediately following Section 30963, to read:

30970.
 The Metropolitan Transportation Commission may apply, pursuant to Section 149.7, to the California Transportation Commission for high-occupancy toll lanes or other toll facilities to be developed and operated on State Route 37 pursuant to Chapter 4.1 (commencing with Section 30925).