California 2017 2017-2018 Regular Session

California Assembly Bill AB1969 Amended / Bill

Filed 03/19/2018

                    Amended IN  Assembly  March 19, 2018 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1969Introduced by Assembly Member SalasJanuary 31, 2018 An act to amend Section 99268.2 of the Public Utilities Code, relating to transportation. LEGISLATIVE COUNSEL'S DIGESTAB 1969, as amended, Salas. Transportation funds: transit operators: fare revenues.Existing law provides various sources of funding to public transit operators. Under the Mills-Alquist-Deddeh Act, also known as the Transportation Development Act, certain revenues are available, among other things, for allocation by the transportation planning agency to transit operators, subject to certain financial requirements for an operator to meet in order to be eligible to receive the moneys. Existing law sets forth alternative ways an operator may qualify for funding, including a standard under which the allocated moneys do not exceed 50% of the operators total operating costs, as specified, or the maintenance by the operator of a specified ratio of fare revenues to operating costs. Existing law generally establishes the required fare revenues to operating cost ratio as 20% in urbanized areas and 10% in nonurbanized areas.Existing law creates the California Transportation Commission, with various powers and duties relative to the programming of transportation capital projects and the allocation of funds to those projects, among other transportation responsibilities.This bill would provide that it is the intent of the Legislature to enact legislation relating to the ratio of fare revenues to operating costs under the Transportation Development Act. authorize an operator that fails to maintain the generally established ratio described above to request an exemption from the California Transportation Commission, and would require the operator to be granted a temporary exemption while the commission reviews the request. The bill would authorize the commission to grant the operators request and allow the operator to instead maintain a lower ratio, which would be set by the commission. The bill would require the commission to consider specified factors in determining whether to grant the exemption request. The bill would authorize an operator granted a temporary exemption, or an exemption from the commission, to receive the revenues it would have qualified for had it maintained the ratio described above. Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NOYES  Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 99268.2 of the Public Utilities Code is amended to read:99268.2. (a) In the case of an operator required to be in compliance with Section 99268 under Section 99268.1, the operator may be allocated additional funds that could not be allocated to it because of those requirements, if it maintains, for the fiscal year, a ratio of fare revenues to operating cost, as defined by subdivision (a) of Section 99247, at least equal to one-fifth if serving an urbanized area or one-tenth if serving a nonurbanized area. area, except as described in subdivision (b).(b) (1) An operator that fails to maintain the ratio described in subdivision (a) may request an exemption from the California Transportation Commission, and shall be granted a temporary exemption while the California Transportation Commission determines whether to grant the request. An operator operating pursuant to either exemption may be allocated the additional funds described in subdivision (a).(2) The California Transportation Commission may grant the operators exemption request and, upon granting the request, may instead require the operator to maintain a lower ratio, which shall be determined by the commission.(3) In determining whether to grant the operators exemption request, the California Transportation Commission shall consider all of the following:(A) The population served by the operator, including the populations affluence and dependence on public transit.(B) The geographic area served by the operator.(C) The availability of local funds to meet the ratio.(D) The price of the operators fares in comparison to similar operators.SECTION 1.It is the intent of the Legislature to enact legislation relating to the ratio of fare revenues to operating costs under the Transportation Development Act.

 Amended IN  Assembly  March 19, 2018 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1969Introduced by Assembly Member SalasJanuary 31, 2018 An act to amend Section 99268.2 of the Public Utilities Code, relating to transportation. LEGISLATIVE COUNSEL'S DIGESTAB 1969, as amended, Salas. Transportation funds: transit operators: fare revenues.Existing law provides various sources of funding to public transit operators. Under the Mills-Alquist-Deddeh Act, also known as the Transportation Development Act, certain revenues are available, among other things, for allocation by the transportation planning agency to transit operators, subject to certain financial requirements for an operator to meet in order to be eligible to receive the moneys. Existing law sets forth alternative ways an operator may qualify for funding, including a standard under which the allocated moneys do not exceed 50% of the operators total operating costs, as specified, or the maintenance by the operator of a specified ratio of fare revenues to operating costs. Existing law generally establishes the required fare revenues to operating cost ratio as 20% in urbanized areas and 10% in nonurbanized areas.Existing law creates the California Transportation Commission, with various powers and duties relative to the programming of transportation capital projects and the allocation of funds to those projects, among other transportation responsibilities.This bill would provide that it is the intent of the Legislature to enact legislation relating to the ratio of fare revenues to operating costs under the Transportation Development Act. authorize an operator that fails to maintain the generally established ratio described above to request an exemption from the California Transportation Commission, and would require the operator to be granted a temporary exemption while the commission reviews the request. The bill would authorize the commission to grant the operators request and allow the operator to instead maintain a lower ratio, which would be set by the commission. The bill would require the commission to consider specified factors in determining whether to grant the exemption request. The bill would authorize an operator granted a temporary exemption, or an exemption from the commission, to receive the revenues it would have qualified for had it maintained the ratio described above. Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NOYES  Local Program: NO 

 Amended IN  Assembly  March 19, 2018

Amended IN  Assembly  March 19, 2018

 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION

Assembly Bill No. 1969

Introduced by Assembly Member SalasJanuary 31, 2018

Introduced by Assembly Member Salas
January 31, 2018

 An act to amend Section 99268.2 of the Public Utilities Code, relating to transportation. 

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 1969, as amended, Salas. Transportation funds: transit operators: fare revenues.

Existing law provides various sources of funding to public transit operators. Under the Mills-Alquist-Deddeh Act, also known as the Transportation Development Act, certain revenues are available, among other things, for allocation by the transportation planning agency to transit operators, subject to certain financial requirements for an operator to meet in order to be eligible to receive the moneys. Existing law sets forth alternative ways an operator may qualify for funding, including a standard under which the allocated moneys do not exceed 50% of the operators total operating costs, as specified, or the maintenance by the operator of a specified ratio of fare revenues to operating costs. Existing law generally establishes the required fare revenues to operating cost ratio as 20% in urbanized areas and 10% in nonurbanized areas.Existing law creates the California Transportation Commission, with various powers and duties relative to the programming of transportation capital projects and the allocation of funds to those projects, among other transportation responsibilities.This bill would provide that it is the intent of the Legislature to enact legislation relating to the ratio of fare revenues to operating costs under the Transportation Development Act. authorize an operator that fails to maintain the generally established ratio described above to request an exemption from the California Transportation Commission, and would require the operator to be granted a temporary exemption while the commission reviews the request. The bill would authorize the commission to grant the operators request and allow the operator to instead maintain a lower ratio, which would be set by the commission. The bill would require the commission to consider specified factors in determining whether to grant the exemption request. The bill would authorize an operator granted a temporary exemption, or an exemption from the commission, to receive the revenues it would have qualified for had it maintained the ratio described above. 

Existing law provides various sources of funding to public transit operators. Under the Mills-Alquist-Deddeh Act, also known as the Transportation Development Act, certain revenues are available, among other things, for allocation by the transportation planning agency to transit operators, subject to certain financial requirements for an operator to meet in order to be eligible to receive the moneys. Existing law sets forth alternative ways an operator may qualify for funding, including a standard under which the allocated moneys do not exceed 50% of the operators total operating costs, as specified, or the maintenance by the operator of a specified ratio of fare revenues to operating costs. Existing law generally establishes the required fare revenues to operating cost ratio as 20% in urbanized areas and 10% in nonurbanized areas.

Existing law creates the California Transportation Commission, with various powers and duties relative to the programming of transportation capital projects and the allocation of funds to those projects, among other transportation responsibilities.

This bill would provide that it is the intent of the Legislature to enact legislation relating to the ratio of fare revenues to operating costs under the Transportation Development Act. authorize an operator that fails to maintain the generally established ratio described above to request an exemption from the California Transportation Commission, and would require the operator to be granted a temporary exemption while the commission reviews the request. The bill would authorize the commission to grant the operators request and allow the operator to instead maintain a lower ratio, which would be set by the commission. The bill would require the commission to consider specified factors in determining whether to grant the exemption request. The bill would authorize an operator granted a temporary exemption, or an exemption from the commission, to receive the revenues it would have qualified for had it maintained the ratio described above.

## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. Section 99268.2 of the Public Utilities Code is amended to read:99268.2. (a) In the case of an operator required to be in compliance with Section 99268 under Section 99268.1, the operator may be allocated additional funds that could not be allocated to it because of those requirements, if it maintains, for the fiscal year, a ratio of fare revenues to operating cost, as defined by subdivision (a) of Section 99247, at least equal to one-fifth if serving an urbanized area or one-tenth if serving a nonurbanized area. area, except as described in subdivision (b).(b) (1) An operator that fails to maintain the ratio described in subdivision (a) may request an exemption from the California Transportation Commission, and shall be granted a temporary exemption while the California Transportation Commission determines whether to grant the request. An operator operating pursuant to either exemption may be allocated the additional funds described in subdivision (a).(2) The California Transportation Commission may grant the operators exemption request and, upon granting the request, may instead require the operator to maintain a lower ratio, which shall be determined by the commission.(3) In determining whether to grant the operators exemption request, the California Transportation Commission shall consider all of the following:(A) The population served by the operator, including the populations affluence and dependence on public transit.(B) The geographic area served by the operator.(C) The availability of local funds to meet the ratio.(D) The price of the operators fares in comparison to similar operators.SECTION 1.It is the intent of the Legislature to enact legislation relating to the ratio of fare revenues to operating costs under the Transportation Development Act.

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

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

SECTION 1. Section 99268.2 of the Public Utilities Code is amended to read:99268.2. (a) In the case of an operator required to be in compliance with Section 99268 under Section 99268.1, the operator may be allocated additional funds that could not be allocated to it because of those requirements, if it maintains, for the fiscal year, a ratio of fare revenues to operating cost, as defined by subdivision (a) of Section 99247, at least equal to one-fifth if serving an urbanized area or one-tenth if serving a nonurbanized area. area, except as described in subdivision (b).(b) (1) An operator that fails to maintain the ratio described in subdivision (a) may request an exemption from the California Transportation Commission, and shall be granted a temporary exemption while the California Transportation Commission determines whether to grant the request. An operator operating pursuant to either exemption may be allocated the additional funds described in subdivision (a).(2) The California Transportation Commission may grant the operators exemption request and, upon granting the request, may instead require the operator to maintain a lower ratio, which shall be determined by the commission.(3) In determining whether to grant the operators exemption request, the California Transportation Commission shall consider all of the following:(A) The population served by the operator, including the populations affluence and dependence on public transit.(B) The geographic area served by the operator.(C) The availability of local funds to meet the ratio.(D) The price of the operators fares in comparison to similar operators.

SECTION 1. Section 99268.2 of the Public Utilities Code is amended to read:

### SECTION 1.

99268.2. (a) In the case of an operator required to be in compliance with Section 99268 under Section 99268.1, the operator may be allocated additional funds that could not be allocated to it because of those requirements, if it maintains, for the fiscal year, a ratio of fare revenues to operating cost, as defined by subdivision (a) of Section 99247, at least equal to one-fifth if serving an urbanized area or one-tenth if serving a nonurbanized area. area, except as described in subdivision (b).(b) (1) An operator that fails to maintain the ratio described in subdivision (a) may request an exemption from the California Transportation Commission, and shall be granted a temporary exemption while the California Transportation Commission determines whether to grant the request. An operator operating pursuant to either exemption may be allocated the additional funds described in subdivision (a).(2) The California Transportation Commission may grant the operators exemption request and, upon granting the request, may instead require the operator to maintain a lower ratio, which shall be determined by the commission.(3) In determining whether to grant the operators exemption request, the California Transportation Commission shall consider all of the following:(A) The population served by the operator, including the populations affluence and dependence on public transit.(B) The geographic area served by the operator.(C) The availability of local funds to meet the ratio.(D) The price of the operators fares in comparison to similar operators.

99268.2. (a) In the case of an operator required to be in compliance with Section 99268 under Section 99268.1, the operator may be allocated additional funds that could not be allocated to it because of those requirements, if it maintains, for the fiscal year, a ratio of fare revenues to operating cost, as defined by subdivision (a) of Section 99247, at least equal to one-fifth if serving an urbanized area or one-tenth if serving a nonurbanized area. area, except as described in subdivision (b).(b) (1) An operator that fails to maintain the ratio described in subdivision (a) may request an exemption from the California Transportation Commission, and shall be granted a temporary exemption while the California Transportation Commission determines whether to grant the request. An operator operating pursuant to either exemption may be allocated the additional funds described in subdivision (a).(2) The California Transportation Commission may grant the operators exemption request and, upon granting the request, may instead require the operator to maintain a lower ratio, which shall be determined by the commission.(3) In determining whether to grant the operators exemption request, the California Transportation Commission shall consider all of the following:(A) The population served by the operator, including the populations affluence and dependence on public transit.(B) The geographic area served by the operator.(C) The availability of local funds to meet the ratio.(D) The price of the operators fares in comparison to similar operators.

99268.2. (a) In the case of an operator required to be in compliance with Section 99268 under Section 99268.1, the operator may be allocated additional funds that could not be allocated to it because of those requirements, if it maintains, for the fiscal year, a ratio of fare revenues to operating cost, as defined by subdivision (a) of Section 99247, at least equal to one-fifth if serving an urbanized area or one-tenth if serving a nonurbanized area. area, except as described in subdivision (b).(b) (1) An operator that fails to maintain the ratio described in subdivision (a) may request an exemption from the California Transportation Commission, and shall be granted a temporary exemption while the California Transportation Commission determines whether to grant the request. An operator operating pursuant to either exemption may be allocated the additional funds described in subdivision (a).(2) The California Transportation Commission may grant the operators exemption request and, upon granting the request, may instead require the operator to maintain a lower ratio, which shall be determined by the commission.(3) In determining whether to grant the operators exemption request, the California Transportation Commission shall consider all of the following:(A) The population served by the operator, including the populations affluence and dependence on public transit.(B) The geographic area served by the operator.(C) The availability of local funds to meet the ratio.(D) The price of the operators fares in comparison to similar operators.



99268.2. (a) In the case of an operator required to be in compliance with Section 99268 under Section 99268.1, the operator may be allocated additional funds that could not be allocated to it because of those requirements, if it maintains, for the fiscal year, a ratio of fare revenues to operating cost, as defined by subdivision (a) of Section 99247, at least equal to one-fifth if serving an urbanized area or one-tenth if serving a nonurbanized area. area, except as described in subdivision (b).

(b) (1) An operator that fails to maintain the ratio described in subdivision (a) may request an exemption from the California Transportation Commission, and shall be granted a temporary exemption while the California Transportation Commission determines whether to grant the request. An operator operating pursuant to either exemption may be allocated the additional funds described in subdivision (a).

(2) The California Transportation Commission may grant the operators exemption request and, upon granting the request, may instead require the operator to maintain a lower ratio, which shall be determined by the commission.

(3) In determining whether to grant the operators exemption request, the California Transportation Commission shall consider all of the following:

(A) The population served by the operator, including the populations affluence and dependence on public transit.

(B) The geographic area served by the operator.

(C) The availability of local funds to meet the ratio.

(D) The price of the operators fares in comparison to similar operators.



It is the intent of the Legislature to enact legislation relating to the ratio of fare revenues to operating costs under the Transportation Development Act.