California 2017-2018 Regular Session

California Assembly Bill AB1969 Latest Draft

Bill / Amended Version Filed 04/18/2018

                            Amended IN  Assembly  April 18, 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: transportation planning agencies: transit operators: fare revenues. revenue ratios: exemptions.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 authorize a transportation planning agency to grant an exemption, for up to 5 years, to 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. applicable fare-revenue-to-cost ratio if, based on that agencys determination, an exemption is appropriate, as specified. The bill would require the commission agency to consider specified factors in determining whether to grant the exemption request. exemption. The bill would authorize an operator granted a temporary exemption, or an exemption from the commission, to receive be allocated the revenues it would have qualified for had it maintained the ratio described above. applicable ratio.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YESNO  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, 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, except as described in subdivision (b).(b) (1) An A transportation planning agency may grant an exemption, for up to five years, to 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. if, based on the agencys determination, an exemption is appropriate. An operator operating pursuant to either granted an 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)(2) In determining whether to grant the operators exemption request, the California Transportation Commission operator an exemption, the transportation planning agency 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.(E) The population density of the operators service area.(F) The effect of lost funding on the operators ability to meet the requirements described in subdivision (a) in the future.

 Amended IN  Assembly  April 18, 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: transportation planning agencies: transit operators: fare revenues. revenue ratios: exemptions.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 authorize a transportation planning agency to grant an exemption, for up to 5 years, to 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. applicable fare-revenue-to-cost ratio if, based on that agencys determination, an exemption is appropriate, as specified. The bill would require the commission agency to consider specified factors in determining whether to grant the exemption request. exemption. The bill would authorize an operator granted a temporary exemption, or an exemption from the commission, to receive be allocated the revenues it would have qualified for had it maintained the ratio described above. applicable ratio.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YESNO  Local Program: NO 

 Amended IN  Assembly  April 18, 2018 Amended IN  Assembly  March 19, 2018

Amended IN  Assembly  April 18, 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: transportation planning agencies: transit operators: fare revenues. revenue ratios: exemptions.

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 authorize a transportation planning agency to grant an exemption, for up to 5 years, to 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. applicable fare-revenue-to-cost ratio if, based on that agencys determination, an exemption is appropriate, as specified. The bill would require the commission agency to consider specified factors in determining whether to grant the exemption request. exemption. The bill would authorize an operator granted a temporary exemption, or an exemption from the commission, to receive be allocated the revenues it would have qualified for had it maintained the ratio described above. applicable ratio.

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 authorize a transportation planning agency to grant an exemption, for up to 5 years, to 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. applicable fare-revenue-to-cost ratio if, based on that agencys determination, an exemption is appropriate, as specified. The bill would require the commission agency to consider specified factors in determining whether to grant the exemption request. exemption. The bill would authorize an operator granted a temporary exemption, or an exemption from the commission, to receive be allocated the revenues it would have qualified for had it maintained the ratio described above. applicable ratio.

## 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, 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, except as described in subdivision (b).(b) (1) An A transportation planning agency may grant an exemption, for up to five years, to 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. if, based on the agencys determination, an exemption is appropriate. An operator operating pursuant to either granted an 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)(2) In determining whether to grant the operators exemption request, the California Transportation Commission operator an exemption, the transportation planning agency 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.(E) The population density of the operators service area.(F) The effect of lost funding on the operators ability to meet the requirements described in subdivision (a) in the future.

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, 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, except as described in subdivision (b).(b) (1) An A transportation planning agency may grant an exemption, for up to five years, to 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. if, based on the agencys determination, an exemption is appropriate. An operator operating pursuant to either granted an 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)(2) In determining whether to grant the operators exemption request, the California Transportation Commission operator an exemption, the transportation planning agency 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.(E) The population density of the operators service area.(F) The effect of lost funding on the operators ability to meet the requirements described in subdivision (a) in the future.

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, 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, except as described in subdivision (b).(b) (1) An A transportation planning agency may grant an exemption, for up to five years, to 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. if, based on the agencys determination, an exemption is appropriate. An operator operating pursuant to either granted an 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)(2) In determining whether to grant the operators exemption request, the California Transportation Commission operator an exemption, the transportation planning agency 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.(E) The population density of the operators service area.(F) The effect of lost funding on the operators ability to meet the requirements described in subdivision (a) in the future.

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, 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, except as described in subdivision (b).(b) (1) An A transportation planning agency may grant an exemption, for up to five years, to 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. if, based on the agencys determination, an exemption is appropriate. An operator operating pursuant to either granted an 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)(2) In determining whether to grant the operators exemption request, the California Transportation Commission operator an exemption, the transportation planning agency 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.(E) The population density of the operators service area.(F) The effect of lost funding on the operators ability to meet the requirements described in subdivision (a) in the future.

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, 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, except as described in subdivision (b).(b) (1) An A transportation planning agency may grant an exemption, for up to five years, to 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. if, based on the agencys determination, an exemption is appropriate. An operator operating pursuant to either granted an 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)(2) In determining whether to grant the operators exemption request, the California Transportation Commission operator an exemption, the transportation planning agency 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.(E) The population density of the operators service area.(F) The effect of lost funding on the operators ability to meet the requirements described in subdivision (a) in the future.



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, 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, except as described in subdivision (b).

(b) (1) An A transportation planning agency may grant an exemption, for up to five years, to 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. if, based on the agencys determination, an exemption is appropriate. An operator operating pursuant to either granted an 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)



(2) In determining whether to grant the operators exemption request, the California Transportation Commission operator an exemption, the transportation planning agency 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.

(E) The population density of the operators service area.

(F) The effect of lost funding on the operators ability to meet the requirements described in subdivision (a) in the future.