In 1989, the California legislature enacted AB 680, which authorized Caltrans to enter into agreements with private entities for the construction of up to four toll projects around the state under a demonstration program. Prospective investors were invited to identify projects they felt would be of greatest benefit to the state. The legislation authorized Caltrans to grant easements, issue permits, and lease those facilities to the private entities for up to 35 years. Caltrans decided to proceed with the project operated as priced managed lanes as the result of a solicitation for candidate P3 projects in response.