AB 657 California Assembly · 2025-2026 Regular Session

Otay Mesa East Toll Facility Act: public-private partnership agreements: toll revenues.

Summary
The Otay Mesa East Toll Facility Act authorizes the San Diego Association of Governments (SANDAG) to carry out a construction project for the State Highway Route 11 corridor, including, among other things, highway improvements and international border crossing facilities, to be operated as a toll facility. Existing law authorizes SANDAG to fix and revise from time to time and charge and collect tolls and other charges only for entrance to or the use of the corridor, as provided. Existing law authorizes SANDAG to use specified alternative project delivery methods under certain conditions. Existing law requires toll revenues to be used for specified costs, as provided. Existing law defines "project" for purposes of the act to include facilities, whether or not now in existence, acquired or constructed to facilitate the movement of goods and people along the corridor or at the Otay Mesa East Port of Entry. This bill would revise and recast the act by, among other things, (1) revising the definition of "project" for purposes of the act to include facilities, whether or not now in existence, acquired or constructed to facilitate the movement of goods and people adjacent to the Otay Mesa East Port of Entry or to facilitate the generation of revenue for, or related to, the Otay Mesa East Port of Entry, (2) authorizing public-private partnerships, as specified, as an alternative project delivery method, (3) authorizing SANDAG to also impose tolls and other charges for the use of a project or property covered by the act, and (4) adding payments to a private partner under a public-private partnership agreement to the categories of costs for which toll revenues are used under the act, as provided. The bill would also make conforming changes.
Bill status failed 1 of 4 stages cleared
Introduction
Feb 2025
Committee Review
Floor Vote
Governor
Introduced Feb 14, 2025 Last action Feb 2, 2026
Maddy AI version diff · 2 comparisons

What changed between versions

02/14/25 - Introduced 09/08/25 - Amended Assembly · 9 edits · Sep 8, 2025
MAJOR
AB 657 was dramatically expanded from a simple nonsubstantive fix to Section 90 of the Streets and Highways Code into a comprehensive revision of the Otay Mesa East Toll Facility Act. The amended bill authorizes public-private partnerships as an alternative project delivery method, expands SANDAG's toll authority beyond just the corridor to include projects and property, adds a new framework for cooperative cross-border tolling with Mexico, and broadens the categories of costs that toll revenues can pay. These changes significantly increase private sector involvement in the Otay Mesa East border crossing project while adding public accountability requirements.
SCOPE

The bill's scope expanded from a single nonsubstantive amendment to Section 90 (Caltrans highway control) to a full revision of seven sections (31462, 31467, 31468, 31474, 31475, 31476, and 31483) of the Otay Mesa East Toll Facility Act governing the State Route 11 corridor and border crossing project.

SANDAG's toll authority was expanded from imposing tolls only for 'entrance to or the use of the corridor' to also include 'a project, or property' covered by the act. This allows tolling on a broader range of facilities and infrastructure associated with the Otay Mesa East Port of Entry.

A new Section 31483 authorizes cooperative cross-border tolling arrangements with the federal government of Mexico or its agencies. SANDAG may jointly exercise tolling powers with Mexican authorities, contract for toll collection and remittance services, share revenues, allocate costs, share traffic information, and establish joint toll rate-setting policies.

REQUIREMENT

Public-private partnerships (P3s) are now explicitly authorized as an alternative project delivery method alongside design-build, design sequencing, and CMGC. SANDAG must compare the traditional design-bid-build process with the proposed alternative in a public meeting and make written findings that the alternative will reduce costs, improve cost predictability, expedite completion, or provide features not achievable through traditional methods.

SANDAG must review the adequacy of toll rates within two years of the initial project opening and at least biennially thereafter. Toll structures may include discounts for high-occupancy vehicles, electronic toll collection, and off-peak travel, as well as premiums for on-peak travel, but must be revised to ensure compliance with financial obligations.

FISCAL

Toll revenues may now be used for payments to a private partner under a P3 agreement, including for the private partner's collection and use of tolls generated by a project. This is a new category of permissible expenditure that did not exist in the prior law.

The fiscal committee designation changed from 'no' to 'yes,' indicating the amended bill now has fiscal implications requiring fiscal committee review, consistent with the new P3 and cross-border tolling provisions that create ongoing revenue and expenditure obligations.

DEFINITION

The definition of 'project' was expanded to include facilities adjacent to the Otay Mesa East Port of Entry (not just along the corridor or at the port) and facilities constructed to facilitate revenue generation for or related to the port. This broadens what infrastructure can be built and tolled under the act.

ENFORCEMENT

New public accountability requirements were added: SANDAG must provide a 30-day public comment period before setting initial toll rates, approve an annual expenditure plan at a public meeting, cease toll collection after bonds are repaid and P3 agreements conclude (unless extended by two-thirds board vote), and arrange for an annual postaudit of toll revenues by a certified public accountant.

Floor votes

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Full legislative history

Actions timeline

Total actions
7
Key actions
2
Committee
4
Amendments
1
Feb 2, 2026
Lower · Passed
From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
lower
Sep 9, 2025
Committee
Re-referred to Com. on TRANS.
lower
Sep 8, 2025
Introduced
From committee chair, with author's amendments: Amend, and re-refer to Com. on TRANS. Read second time and amended.
lower
Sep 8, 2025
Committee
Referred to Com. on TRANS.
lower
Feb 15, 2025
Lower · Passed
From printer. May be heard in committee March 17.
lower
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of David Alvarez
David Alvarez
DDemocratic
CA
80