California 2023 2023-2024 Regular Session

California Assembly Bill AB761 Amended / Bill

Filed 09/13/2023

                    Amended IN  Senate  September 13, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 761Introduced by Assembly Member Friedman(Principal coauthor: Senator Gonzalez)February 13, 2023An act to add and repeal Section 13979.3 of the Government Code, relating to transportation. An act to amend Section 53398.63 of the Government Code, relating to local finance.LEGISLATIVE COUNSEL'S DIGESTAB 761, as amended, Friedman. Transit Transformation Task Force. Local finance: enhanced infrastructure financing districts.Existing law establishes enhanced infrastructure financing districts to finance public capital facilities or other specified projects of communitywide significance. Existing law provides for the membership of the governing body of the district, referred to as the public financing authority. Existing law authorizes the legislative body of a city or a county to designate a proposed enhanced infrastructure financing district by adopting a resolution of intention to establish the proposed district which, among other things, is required to state that an enhanced infrastructure financing district is proposed and describe the boundaries of the proposed district. Existing law requires the public financing authority to direct the preparation of and adopt an infrastructure financing plan consistent with the general plan and any relevant specific plan, and consisting of, among other things, a financing section. Existing law requires that the financing section include a plan for financing the public facilities, a limit on the total number of dollars of taxes that may be allocated to the district pursuant to the plan, and a date, either not more than 45 years from the date on which the issuance of the bonds is approved for the plan on which the district will cease to exist, by which time all tax allocation to the district will end, or, where the district is divided into project areas, a date on which the infrastructure financing plan will cease to be in effect and all tax allocations to the district will end and a date on which the districts authority to repay indebtedness with incremental tax revenues will end, as specified.This bill, for plans proposed on or after January 1, 2024, would specify that for the purpose of development and construction of passenger rail projects in the County of Los Angeles where at least 75% of the revenue from the district is used for debt service on a federal Transportation Infrastructure Finance and Innovation Act loan, the date on which the district will cease to exist shall not be more than 75 years from the date of the issuance of bonds or approval of a loan, as specified.This bill would make legislative findings and declarations as to the necessity of a special statute for specified districts enacted primarily for the purpose of development and construction of zero-emission mass transit projects.Existing law establishes the Transportation Agency, which consists of various departments and state entities, including the California Transportation Commission and the Department of Transportation. Under existing law, the agency is under the supervision of an executive officer known as the Secretary of Transportation, who is required to develop and report to the Governor on legislative, budgetary, and administrative programs to accomplish comprehensive, long-range, and coordinated planning and policy formulation in the matters of public interest related to the agency.Existing law provides for the funding of public transit, including under the Transportation Development Act. This bill would require the secretary, on or before July 1, 2024, to establish and convene the Transit Transformation Task Force to include representatives from the department, the Controllers office, various local agencies, academic institutions, nongovernmental organizations, and other stakeholders. The bill would require the task force to develop a structured, coordinated process for early engagement of all parties to develop policies to grow transit ridership and improve the transit experience for all users of those services. The bill would require the secretary, in consultation with the task force, to prepare and submit a report of findings based on the task forces efforts to the appropriate policy and fiscal committees of the Legislature on or before January 1, 2025. The bill would require the report to include a detailed analysis of specified issues and recommendations on specified topics. The provisions of the bill would be repealed on January 1, 2028. 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 53398.63 of the Government Code is amended to read:53398.63. After receipt of a copy of the resolution of intention to establish a district, the official designated pursuant to Section 53398.62 shall prepare a proposed infrastructure financing plan. A plan shall be proposed for the district which that shall include any project areas, if proposed, within the district. The infrastructure financing plan shall be consistent with the general plan, and specific plan, if applicable, of the city or county within which the district is located and shall include all of the following:(a) A map and legal description of the proposed district, which may include all or a portion of the district designated by the legislative body in its resolution of intention.(b) A description of the public facilities and other forms of development or financial assistance that is proposed in the area of the district, including those to be provided by the private sector, those to be provided by governmental entities without assistance under this chapter, those public improvements and facilities to be financed with assistance from the proposed district, and those to be provided jointly. The description shall include the proposed location, timing, and costs of the development and financial assistance.(c) If funding from affected taxing entities is incorporated into the financing plan, a finding that the development and financial assistance are of communitywide significance and provide significant benefits to an area larger than the area of the district.(d) A financing section, which shall contain all of the following information:(1) A specification of the maximum portion of the incremental tax revenue of the city or county and of each affected taxing entity proposed to be committed to the district for each year during which the district will receive incremental tax revenue. The portion need not be the same for all affected taxing entities. The portion may change over time.(2) A projection of the amount of tax revenues expected to be received by the district in each year during which the district will receive tax revenues, including an estimate of the amount of tax revenues attributable to each affected taxing entity for each year.(3) A plan for financing the public facilities to be assisted by the district, including a detailed description of any intention to incur debt.(4) A limit on the total number of dollars of taxes that may be allocated to the district pursuant to the plan.(5) Either of the following:(A) A date on which the district will cease to exist, by which time all tax allocation to the district will end. The(i) For plans proposed on or after January 1, 2024, for districts enacted primarily for the purpose of development and construction of passenger rail projects in the County of Los Angeles, where at least 75 percent of the revenue from the district is used for debt service on a federal Transportation Infrastructure Finance and Innovation Act (TIFIA) loan, the date shall not be more than 75 years from the date on which the issuance of bonds is approved pursuant to Section 53398.77, or the issuance of a loan is approved by the governing board of a local agency pursuant to Section 53398.87. Starting 45 years after the issuance of the TIFIA loan, incremental tax revenue received shall only be used for the purposes of the TIFIA loan repayment, including debt service.(ii) For all other districts, the date shall not be more than 45 years from the date on which the issuance of bonds is approved pursuant to Section 53398.77, or the issuance of a loan is approved by the governing board of a local agency pursuant to Section 53398.87.(B) If the district is divided into project areas, a date on which the infrastructure financing plan will cease to be in effect and all tax allocations to the district will end and a date on which the districts authority to repay indebtedness with incremental tax revenues received under this chapter will end, not to exceed 45 years from the date the district or the applicable project area has actually received one hundred thousand dollars ($100,000) in annual incremental tax revenues under this chapter. After the time limits established under this subparagraph, a district or project area shall not receive incremental tax revenues under this chapter. If the district is divided into project areas, a separate and unique time limit shall be applicable to each project area that does not exceed 45 years from the date the district has actually received one hundred thousand dollars ($100,000) in incremental tax revenues under this chapter from that project area.(6) An analysis of the costs to the city or county of providing facilities and services to the area of the district while the area is being developed and after the area is developed. The plan shall also include an analysis of the tax, fee, charge, and other revenues expected to be received by the city or county as a result of expected development in the area of the district.(7) An analysis of the projected fiscal impact of the district and the associated development upon each affected taxing entity.(8) A plan for financing any potential costs that may be incurred by reimbursing a developer of a project that is both located entirely within the boundaries of that district and qualifies for the Transit Priority Project Program, pursuant to Section 65470, including any permit and affordable housing expenses related to the project.(e) If any dwelling units within the territory of the district are proposed to be removed or destroyed in the course of public works construction within the area of the district or private development within the area of the district that is subject to a written agreement with the district or that is financed in whole or in part by the district, a plan providing for replacement of those units and relocation of those persons or families consistent with the requirements of Section 53398.56.(f) The goals the district proposes to achieve for each project financed pursuant to Section 53398.52.SEC. 2. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique timelines of districts enacted primarily for the purpose of development and construction of zero-emission mass transit projects.SECTION 1.The Legislature finds and declares all of the following:(a)Nearly 50 percent of the states greenhouse gas emissions come from the transportation sector.(b)According to the State Air Resources Boards 2022 scoping plan adopted pursuant to Section 38561 of the Health and Safety Code, the transition to zero-emission vehicles is not enough to meet the states climate goals, with the state needing to also reduce vehicle miles traveled. Increasing the use of public transportation is critical to success.(c)Transit use has been on the decline in California, both prior to, and concurrent with, the COVID-19 pandemic due to various factors.(d)The Legislature temporarily suspended performance metrics under the Transportation Development Act (Chapter 4 (commencing with Section 99200) of Part 11 of Division 10 of the Public Utilities Code) and Congress provided short-term emergency funding relief to transit agencies to address the COVID-19 pandemics impact on fare revenue and local funding support. However, the state has not developed new metrics to monitor the performance of public transit or new strategies to help transit agencies stabilize and ultimately grow public transit ridership.(e)California transit agencies need additional funding to maintain a state of good repair, expand service, and grow transit ridership. State oversight is needed to ensure transit operators are providing a high-quality, reliable service.SEC. 2.Section 13979.3 is added to the Government Code, to read:13979.3.(a)On or before July 1, 2024, the secretary shall establish and convene the Transit Transformation Task Force.(b)The task force shall include, but is not limited to, representatives from transit operators, both urban and rural, the Department of Transportation, the Controllers office, local governments, metropolitan planning organizations, regional transportation planning organizations, transportation advocacy organizations with expertise in public transit, labor organizations, academic institutions, and other stakeholders, as appropriate, at the discretion of the secretary.(c)The task force shall develop a structured, coordinated process for early engagement of all parties to develop policies to grow transit ridership and improve the transit experience for all users of those services.(d)The secretary shall, in consultation with the task force, prepare and submit a report of findings based on the task forces efforts to the appropriate policy and fiscal committees of the Legislature on or before January 1, 2025.(e)The report shall include, but is not limited to, a detailed analysis of the following issues:(1)The services provided by transit agencies and the demographics of transit ridership, with detail on services provided, including persons with disabilities, or specific populations like low-income individuals and students.(2)Existing funding sources for transit with a breakdown of funding available for capital and operations, including any constitutional and statutory limitations on these existing funding sources.(3)The use of state transit funding for other modes, such as streets and roads.(4)The cost to operate, maintain, and provide for the necessary future growth of transit systems for the next 10 years.(5)The costs and operational impacts associated with federal, state, and local mandates including, but not limited to, the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132) and the State Air Resources Boards Innovative Clean Transit regulations (Article 4.3 (commencing with Section 2023) of Chapter 1 of Division 3 of Title 13 of the California Code of Regulations).(6)Workforce recruitment, retention, and development challenges, impacting transit service.(7)Existing policies on state and local metrics to measure transit performance.(8)State and local policies that impact service efficiency and transit ridership including, but not limited to, transit prioritization on roads, land use, housing, and pricing policies.(9)State departments and agencies that have responsibility for transit system oversight, grant administration, and reporting.(f)The report shall also include, but is not limited to, recommendations on the following:(1)How to improve mobility and increase ridership on transit, including, but not limited to:(A)Service and fare coordination or integration between transit agencies.(B)Coordinated scheduling, mapping, and wayfinding between transit agencies.(C)Ensuring a safe and clean ride for passengers and operators.(D)Increasing the frequency and reliability, through strategies that include, but are not limited to, the sharing of real-time transit information such as arrival and departure times and predictions, service alert data, and transit prioritization on roads.(2)Changes to land use, housing, and pricing policies that could improve public transit use.(3)Strategies to address workforce recruitment, retention, and development challenges.(4)Replacing fare box recovery ratios and efficiency criteria required under the Transportation Development Act (Chapter 4 (commencing with Section 99200) of Part 11 of Division 10 of the Public Utilities Code) with performance metrics that better measure transit operations, including usage, cost efficiency of operations, and service quality.(5)The appropriate state department or agency to be responsible for transit system oversight and reporting.(6)New options for state revenue sources to fund transit operations and capital projects to meet necessary future growth of transit systems for the next 10 years and to address mandates.(7)The potential of transit-oriented development and value capture of property around transit stations as a source of sustainable revenue for transit operations.(g)The task force may consult with the California Transportation Commission to use its work on the needs assessment prepared pursuant to Section 14518 of the Government Code regarding the identification of future transit capital and operational needs.(h)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.

 Amended IN  Senate  September 13, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 761Introduced by Assembly Member Friedman(Principal coauthor: Senator Gonzalez)February 13, 2023An act to add and repeal Section 13979.3 of the Government Code, relating to transportation. An act to amend Section 53398.63 of the Government Code, relating to local finance.LEGISLATIVE COUNSEL'S DIGESTAB 761, as amended, Friedman. Transit Transformation Task Force. Local finance: enhanced infrastructure financing districts.Existing law establishes enhanced infrastructure financing districts to finance public capital facilities or other specified projects of communitywide significance. Existing law provides for the membership of the governing body of the district, referred to as the public financing authority. Existing law authorizes the legislative body of a city or a county to designate a proposed enhanced infrastructure financing district by adopting a resolution of intention to establish the proposed district which, among other things, is required to state that an enhanced infrastructure financing district is proposed and describe the boundaries of the proposed district. Existing law requires the public financing authority to direct the preparation of and adopt an infrastructure financing plan consistent with the general plan and any relevant specific plan, and consisting of, among other things, a financing section. Existing law requires that the financing section include a plan for financing the public facilities, a limit on the total number of dollars of taxes that may be allocated to the district pursuant to the plan, and a date, either not more than 45 years from the date on which the issuance of the bonds is approved for the plan on which the district will cease to exist, by which time all tax allocation to the district will end, or, where the district is divided into project areas, a date on which the infrastructure financing plan will cease to be in effect and all tax allocations to the district will end and a date on which the districts authority to repay indebtedness with incremental tax revenues will end, as specified.This bill, for plans proposed on or after January 1, 2024, would specify that for the purpose of development and construction of passenger rail projects in the County of Los Angeles where at least 75% of the revenue from the district is used for debt service on a federal Transportation Infrastructure Finance and Innovation Act loan, the date on which the district will cease to exist shall not be more than 75 years from the date of the issuance of bonds or approval of a loan, as specified.This bill would make legislative findings and declarations as to the necessity of a special statute for specified districts enacted primarily for the purpose of development and construction of zero-emission mass transit projects.Existing law establishes the Transportation Agency, which consists of various departments and state entities, including the California Transportation Commission and the Department of Transportation. Under existing law, the agency is under the supervision of an executive officer known as the Secretary of Transportation, who is required to develop and report to the Governor on legislative, budgetary, and administrative programs to accomplish comprehensive, long-range, and coordinated planning and policy formulation in the matters of public interest related to the agency.Existing law provides for the funding of public transit, including under the Transportation Development Act. This bill would require the secretary, on or before July 1, 2024, to establish and convene the Transit Transformation Task Force to include representatives from the department, the Controllers office, various local agencies, academic institutions, nongovernmental organizations, and other stakeholders. The bill would require the task force to develop a structured, coordinated process for early engagement of all parties to develop policies to grow transit ridership and improve the transit experience for all users of those services. The bill would require the secretary, in consultation with the task force, to prepare and submit a report of findings based on the task forces efforts to the appropriate policy and fiscal committees of the Legislature on or before January 1, 2025. The bill would require the report to include a detailed analysis of specified issues and recommendations on specified topics. The provisions of the bill would be repealed on January 1, 2028. Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YESNO  Local Program: NO 

 Amended IN  Senate  September 13, 2023

Amended IN  Senate  September 13, 2023

 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION

 Assembly Bill 

No. 761

Introduced by Assembly Member Friedman(Principal coauthor: Senator Gonzalez)February 13, 2023

Introduced by Assembly Member Friedman(Principal coauthor: Senator Gonzalez)
February 13, 2023

An act to add and repeal Section 13979.3 of the Government Code, relating to transportation. An act to amend Section 53398.63 of the Government Code, relating to local finance.

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 761, as amended, Friedman. Transit Transformation Task Force. Local finance: enhanced infrastructure financing districts.

Existing law establishes enhanced infrastructure financing districts to finance public capital facilities or other specified projects of communitywide significance. Existing law provides for the membership of the governing body of the district, referred to as the public financing authority. Existing law authorizes the legislative body of a city or a county to designate a proposed enhanced infrastructure financing district by adopting a resolution of intention to establish the proposed district which, among other things, is required to state that an enhanced infrastructure financing district is proposed and describe the boundaries of the proposed district. Existing law requires the public financing authority to direct the preparation of and adopt an infrastructure financing plan consistent with the general plan and any relevant specific plan, and consisting of, among other things, a financing section. Existing law requires that the financing section include a plan for financing the public facilities, a limit on the total number of dollars of taxes that may be allocated to the district pursuant to the plan, and a date, either not more than 45 years from the date on which the issuance of the bonds is approved for the plan on which the district will cease to exist, by which time all tax allocation to the district will end, or, where the district is divided into project areas, a date on which the infrastructure financing plan will cease to be in effect and all tax allocations to the district will end and a date on which the districts authority to repay indebtedness with incremental tax revenues will end, as specified.This bill, for plans proposed on or after January 1, 2024, would specify that for the purpose of development and construction of passenger rail projects in the County of Los Angeles where at least 75% of the revenue from the district is used for debt service on a federal Transportation Infrastructure Finance and Innovation Act loan, the date on which the district will cease to exist shall not be more than 75 years from the date of the issuance of bonds or approval of a loan, as specified.This bill would make legislative findings and declarations as to the necessity of a special statute for specified districts enacted primarily for the purpose of development and construction of zero-emission mass transit projects.Existing law establishes the Transportation Agency, which consists of various departments and state entities, including the California Transportation Commission and the Department of Transportation. Under existing law, the agency is under the supervision of an executive officer known as the Secretary of Transportation, who is required to develop and report to the Governor on legislative, budgetary, and administrative programs to accomplish comprehensive, long-range, and coordinated planning and policy formulation in the matters of public interest related to the agency.Existing law provides for the funding of public transit, including under the Transportation Development Act. This bill would require the secretary, on or before July 1, 2024, to establish and convene the Transit Transformation Task Force to include representatives from the department, the Controllers office, various local agencies, academic institutions, nongovernmental organizations, and other stakeholders. The bill would require the task force to develop a structured, coordinated process for early engagement of all parties to develop policies to grow transit ridership and improve the transit experience for all users of those services. The bill would require the secretary, in consultation with the task force, to prepare and submit a report of findings based on the task forces efforts to the appropriate policy and fiscal committees of the Legislature on or before January 1, 2025. The bill would require the report to include a detailed analysis of specified issues and recommendations on specified topics. The provisions of the bill would be repealed on January 1, 2028. 

Existing law establishes enhanced infrastructure financing districts to finance public capital facilities or other specified projects of communitywide significance. Existing law provides for the membership of the governing body of the district, referred to as the public financing authority. Existing law authorizes the legislative body of a city or a county to designate a proposed enhanced infrastructure financing district by adopting a resolution of intention to establish the proposed district which, among other things, is required to state that an enhanced infrastructure financing district is proposed and describe the boundaries of the proposed district. Existing law requires the public financing authority to direct the preparation of and adopt an infrastructure financing plan consistent with the general plan and any relevant specific plan, and consisting of, among other things, a financing section. Existing law requires that the financing section include a plan for financing the public facilities, a limit on the total number of dollars of taxes that may be allocated to the district pursuant to the plan, and a date, either not more than 45 years from the date on which the issuance of the bonds is approved for the plan on which the district will cease to exist, by which time all tax allocation to the district will end, or, where the district is divided into project areas, a date on which the infrastructure financing plan will cease to be in effect and all tax allocations to the district will end and a date on which the districts authority to repay indebtedness with incremental tax revenues will end, as specified.

This bill, for plans proposed on or after January 1, 2024, would specify that for the purpose of development and construction of passenger rail projects in the County of Los Angeles where at least 75% of the revenue from the district is used for debt service on a federal Transportation Infrastructure Finance and Innovation Act loan, the date on which the district will cease to exist shall not be more than 75 years from the date of the issuance of bonds or approval of a loan, as specified.

This bill would make legislative findings and declarations as to the necessity of a special statute for specified districts enacted primarily for the purpose of development and construction of zero-emission mass transit projects.

Existing law establishes the Transportation Agency, which consists of various departments and state entities, including the California Transportation Commission and the Department of Transportation. Under existing law, the agency is under the supervision of an executive officer known as the Secretary of Transportation, who is required to develop and report to the Governor on legislative, budgetary, and administrative programs to accomplish comprehensive, long-range, and coordinated planning and policy formulation in the matters of public interest related to the agency.



Existing law provides for the funding of public transit, including under the Transportation Development Act. 



This bill would require the secretary, on or before July 1, 2024, to establish and convene the Transit Transformation Task Force to include representatives from the department, the Controllers office, various local agencies, academic institutions, nongovernmental organizations, and other stakeholders. The bill would require the task force to develop a structured, coordinated process for early engagement of all parties to develop policies to grow transit ridership and improve the transit experience for all users of those services. The bill would require the secretary, in consultation with the task force, to prepare and submit a report of findings based on the task forces efforts to the appropriate policy and fiscal committees of the Legislature on or before January 1, 2025. The bill would require the report to include a detailed analysis of specified issues and recommendations on specified topics. The provisions of the bill would be repealed on January 1, 2028. 



## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. Section 53398.63 of the Government Code is amended to read:53398.63. After receipt of a copy of the resolution of intention to establish a district, the official designated pursuant to Section 53398.62 shall prepare a proposed infrastructure financing plan. A plan shall be proposed for the district which that shall include any project areas, if proposed, within the district. The infrastructure financing plan shall be consistent with the general plan, and specific plan, if applicable, of the city or county within which the district is located and shall include all of the following:(a) A map and legal description of the proposed district, which may include all or a portion of the district designated by the legislative body in its resolution of intention.(b) A description of the public facilities and other forms of development or financial assistance that is proposed in the area of the district, including those to be provided by the private sector, those to be provided by governmental entities without assistance under this chapter, those public improvements and facilities to be financed with assistance from the proposed district, and those to be provided jointly. The description shall include the proposed location, timing, and costs of the development and financial assistance.(c) If funding from affected taxing entities is incorporated into the financing plan, a finding that the development and financial assistance are of communitywide significance and provide significant benefits to an area larger than the area of the district.(d) A financing section, which shall contain all of the following information:(1) A specification of the maximum portion of the incremental tax revenue of the city or county and of each affected taxing entity proposed to be committed to the district for each year during which the district will receive incremental tax revenue. The portion need not be the same for all affected taxing entities. The portion may change over time.(2) A projection of the amount of tax revenues expected to be received by the district in each year during which the district will receive tax revenues, including an estimate of the amount of tax revenues attributable to each affected taxing entity for each year.(3) A plan for financing the public facilities to be assisted by the district, including a detailed description of any intention to incur debt.(4) A limit on the total number of dollars of taxes that may be allocated to the district pursuant to the plan.(5) Either of the following:(A) A date on which the district will cease to exist, by which time all tax allocation to the district will end. The(i) For plans proposed on or after January 1, 2024, for districts enacted primarily for the purpose of development and construction of passenger rail projects in the County of Los Angeles, where at least 75 percent of the revenue from the district is used for debt service on a federal Transportation Infrastructure Finance and Innovation Act (TIFIA) loan, the date shall not be more than 75 years from the date on which the issuance of bonds is approved pursuant to Section 53398.77, or the issuance of a loan is approved by the governing board of a local agency pursuant to Section 53398.87. Starting 45 years after the issuance of the TIFIA loan, incremental tax revenue received shall only be used for the purposes of the TIFIA loan repayment, including debt service.(ii) For all other districts, the date shall not be more than 45 years from the date on which the issuance of bonds is approved pursuant to Section 53398.77, or the issuance of a loan is approved by the governing board of a local agency pursuant to Section 53398.87.(B) If the district is divided into project areas, a date on which the infrastructure financing plan will cease to be in effect and all tax allocations to the district will end and a date on which the districts authority to repay indebtedness with incremental tax revenues received under this chapter will end, not to exceed 45 years from the date the district or the applicable project area has actually received one hundred thousand dollars ($100,000) in annual incremental tax revenues under this chapter. After the time limits established under this subparagraph, a district or project area shall not receive incremental tax revenues under this chapter. If the district is divided into project areas, a separate and unique time limit shall be applicable to each project area that does not exceed 45 years from the date the district has actually received one hundred thousand dollars ($100,000) in incremental tax revenues under this chapter from that project area.(6) An analysis of the costs to the city or county of providing facilities and services to the area of the district while the area is being developed and after the area is developed. The plan shall also include an analysis of the tax, fee, charge, and other revenues expected to be received by the city or county as a result of expected development in the area of the district.(7) An analysis of the projected fiscal impact of the district and the associated development upon each affected taxing entity.(8) A plan for financing any potential costs that may be incurred by reimbursing a developer of a project that is both located entirely within the boundaries of that district and qualifies for the Transit Priority Project Program, pursuant to Section 65470, including any permit and affordable housing expenses related to the project.(e) If any dwelling units within the territory of the district are proposed to be removed or destroyed in the course of public works construction within the area of the district or private development within the area of the district that is subject to a written agreement with the district or that is financed in whole or in part by the district, a plan providing for replacement of those units and relocation of those persons or families consistent with the requirements of Section 53398.56.(f) The goals the district proposes to achieve for each project financed pursuant to Section 53398.52.SEC. 2. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique timelines of districts enacted primarily for the purpose of development and construction of zero-emission mass transit projects.SECTION 1.The Legislature finds and declares all of the following:(a)Nearly 50 percent of the states greenhouse gas emissions come from the transportation sector.(b)According to the State Air Resources Boards 2022 scoping plan adopted pursuant to Section 38561 of the Health and Safety Code, the transition to zero-emission vehicles is not enough to meet the states climate goals, with the state needing to also reduce vehicle miles traveled. Increasing the use of public transportation is critical to success.(c)Transit use has been on the decline in California, both prior to, and concurrent with, the COVID-19 pandemic due to various factors.(d)The Legislature temporarily suspended performance metrics under the Transportation Development Act (Chapter 4 (commencing with Section 99200) of Part 11 of Division 10 of the Public Utilities Code) and Congress provided short-term emergency funding relief to transit agencies to address the COVID-19 pandemics impact on fare revenue and local funding support. However, the state has not developed new metrics to monitor the performance of public transit or new strategies to help transit agencies stabilize and ultimately grow public transit ridership.(e)California transit agencies need additional funding to maintain a state of good repair, expand service, and grow transit ridership. State oversight is needed to ensure transit operators are providing a high-quality, reliable service.SEC. 2.Section 13979.3 is added to the Government Code, to read:13979.3.(a)On or before July 1, 2024, the secretary shall establish and convene the Transit Transformation Task Force.(b)The task force shall include, but is not limited to, representatives from transit operators, both urban and rural, the Department of Transportation, the Controllers office, local governments, metropolitan planning organizations, regional transportation planning organizations, transportation advocacy organizations with expertise in public transit, labor organizations, academic institutions, and other stakeholders, as appropriate, at the discretion of the secretary.(c)The task force shall develop a structured, coordinated process for early engagement of all parties to develop policies to grow transit ridership and improve the transit experience for all users of those services.(d)The secretary shall, in consultation with the task force, prepare and submit a report of findings based on the task forces efforts to the appropriate policy and fiscal committees of the Legislature on or before January 1, 2025.(e)The report shall include, but is not limited to, a detailed analysis of the following issues:(1)The services provided by transit agencies and the demographics of transit ridership, with detail on services provided, including persons with disabilities, or specific populations like low-income individuals and students.(2)Existing funding sources for transit with a breakdown of funding available for capital and operations, including any constitutional and statutory limitations on these existing funding sources.(3)The use of state transit funding for other modes, such as streets and roads.(4)The cost to operate, maintain, and provide for the necessary future growth of transit systems for the next 10 years.(5)The costs and operational impacts associated with federal, state, and local mandates including, but not limited to, the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132) and the State Air Resources Boards Innovative Clean Transit regulations (Article 4.3 (commencing with Section 2023) of Chapter 1 of Division 3 of Title 13 of the California Code of Regulations).(6)Workforce recruitment, retention, and development challenges, impacting transit service.(7)Existing policies on state and local metrics to measure transit performance.(8)State and local policies that impact service efficiency and transit ridership including, but not limited to, transit prioritization on roads, land use, housing, and pricing policies.(9)State departments and agencies that have responsibility for transit system oversight, grant administration, and reporting.(f)The report shall also include, but is not limited to, recommendations on the following:(1)How to improve mobility and increase ridership on transit, including, but not limited to:(A)Service and fare coordination or integration between transit agencies.(B)Coordinated scheduling, mapping, and wayfinding between transit agencies.(C)Ensuring a safe and clean ride for passengers and operators.(D)Increasing the frequency and reliability, through strategies that include, but are not limited to, the sharing of real-time transit information such as arrival and departure times and predictions, service alert data, and transit prioritization on roads.(2)Changes to land use, housing, and pricing policies that could improve public transit use.(3)Strategies to address workforce recruitment, retention, and development challenges.(4)Replacing fare box recovery ratios and efficiency criteria required under the Transportation Development Act (Chapter 4 (commencing with Section 99200) of Part 11 of Division 10 of the Public Utilities Code) with performance metrics that better measure transit operations, including usage, cost efficiency of operations, and service quality.(5)The appropriate state department or agency to be responsible for transit system oversight and reporting.(6)New options for state revenue sources to fund transit operations and capital projects to meet necessary future growth of transit systems for the next 10 years and to address mandates.(7)The potential of transit-oriented development and value capture of property around transit stations as a source of sustainable revenue for transit operations.(g)The task force may consult with the California Transportation Commission to use its work on the needs assessment prepared pursuant to Section 14518 of the Government Code regarding the identification of future transit capital and operational needs.(h)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.

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 53398.63 of the Government Code is amended to read:53398.63. After receipt of a copy of the resolution of intention to establish a district, the official designated pursuant to Section 53398.62 shall prepare a proposed infrastructure financing plan. A plan shall be proposed for the district which that shall include any project areas, if proposed, within the district. The infrastructure financing plan shall be consistent with the general plan, and specific plan, if applicable, of the city or county within which the district is located and shall include all of the following:(a) A map and legal description of the proposed district, which may include all or a portion of the district designated by the legislative body in its resolution of intention.(b) A description of the public facilities and other forms of development or financial assistance that is proposed in the area of the district, including those to be provided by the private sector, those to be provided by governmental entities without assistance under this chapter, those public improvements and facilities to be financed with assistance from the proposed district, and those to be provided jointly. The description shall include the proposed location, timing, and costs of the development and financial assistance.(c) If funding from affected taxing entities is incorporated into the financing plan, a finding that the development and financial assistance are of communitywide significance and provide significant benefits to an area larger than the area of the district.(d) A financing section, which shall contain all of the following information:(1) A specification of the maximum portion of the incremental tax revenue of the city or county and of each affected taxing entity proposed to be committed to the district for each year during which the district will receive incremental tax revenue. The portion need not be the same for all affected taxing entities. The portion may change over time.(2) A projection of the amount of tax revenues expected to be received by the district in each year during which the district will receive tax revenues, including an estimate of the amount of tax revenues attributable to each affected taxing entity for each year.(3) A plan for financing the public facilities to be assisted by the district, including a detailed description of any intention to incur debt.(4) A limit on the total number of dollars of taxes that may be allocated to the district pursuant to the plan.(5) Either of the following:(A) A date on which the district will cease to exist, by which time all tax allocation to the district will end. The(i) For plans proposed on or after January 1, 2024, for districts enacted primarily for the purpose of development and construction of passenger rail projects in the County of Los Angeles, where at least 75 percent of the revenue from the district is used for debt service on a federal Transportation Infrastructure Finance and Innovation Act (TIFIA) loan, the date shall not be more than 75 years from the date on which the issuance of bonds is approved pursuant to Section 53398.77, or the issuance of a loan is approved by the governing board of a local agency pursuant to Section 53398.87. Starting 45 years after the issuance of the TIFIA loan, incremental tax revenue received shall only be used for the purposes of the TIFIA loan repayment, including debt service.(ii) For all other districts, the date shall not be more than 45 years from the date on which the issuance of bonds is approved pursuant to Section 53398.77, or the issuance of a loan is approved by the governing board of a local agency pursuant to Section 53398.87.(B) If the district is divided into project areas, a date on which the infrastructure financing plan will cease to be in effect and all tax allocations to the district will end and a date on which the districts authority to repay indebtedness with incremental tax revenues received under this chapter will end, not to exceed 45 years from the date the district or the applicable project area has actually received one hundred thousand dollars ($100,000) in annual incremental tax revenues under this chapter. After the time limits established under this subparagraph, a district or project area shall not receive incremental tax revenues under this chapter. If the district is divided into project areas, a separate and unique time limit shall be applicable to each project area that does not exceed 45 years from the date the district has actually received one hundred thousand dollars ($100,000) in incremental tax revenues under this chapter from that project area.(6) An analysis of the costs to the city or county of providing facilities and services to the area of the district while the area is being developed and after the area is developed. The plan shall also include an analysis of the tax, fee, charge, and other revenues expected to be received by the city or county as a result of expected development in the area of the district.(7) An analysis of the projected fiscal impact of the district and the associated development upon each affected taxing entity.(8) A plan for financing any potential costs that may be incurred by reimbursing a developer of a project that is both located entirely within the boundaries of that district and qualifies for the Transit Priority Project Program, pursuant to Section 65470, including any permit and affordable housing expenses related to the project.(e) If any dwelling units within the territory of the district are proposed to be removed or destroyed in the course of public works construction within the area of the district or private development within the area of the district that is subject to a written agreement with the district or that is financed in whole or in part by the district, a plan providing for replacement of those units and relocation of those persons or families consistent with the requirements of Section 53398.56.(f) The goals the district proposes to achieve for each project financed pursuant to Section 53398.52.

SECTION 1. Section 53398.63 of the Government Code is amended to read:

### SECTION 1.

53398.63. After receipt of a copy of the resolution of intention to establish a district, the official designated pursuant to Section 53398.62 shall prepare a proposed infrastructure financing plan. A plan shall be proposed for the district which that shall include any project areas, if proposed, within the district. The infrastructure financing plan shall be consistent with the general plan, and specific plan, if applicable, of the city or county within which the district is located and shall include all of the following:(a) A map and legal description of the proposed district, which may include all or a portion of the district designated by the legislative body in its resolution of intention.(b) A description of the public facilities and other forms of development or financial assistance that is proposed in the area of the district, including those to be provided by the private sector, those to be provided by governmental entities without assistance under this chapter, those public improvements and facilities to be financed with assistance from the proposed district, and those to be provided jointly. The description shall include the proposed location, timing, and costs of the development and financial assistance.(c) If funding from affected taxing entities is incorporated into the financing plan, a finding that the development and financial assistance are of communitywide significance and provide significant benefits to an area larger than the area of the district.(d) A financing section, which shall contain all of the following information:(1) A specification of the maximum portion of the incremental tax revenue of the city or county and of each affected taxing entity proposed to be committed to the district for each year during which the district will receive incremental tax revenue. The portion need not be the same for all affected taxing entities. The portion may change over time.(2) A projection of the amount of tax revenues expected to be received by the district in each year during which the district will receive tax revenues, including an estimate of the amount of tax revenues attributable to each affected taxing entity for each year.(3) A plan for financing the public facilities to be assisted by the district, including a detailed description of any intention to incur debt.(4) A limit on the total number of dollars of taxes that may be allocated to the district pursuant to the plan.(5) Either of the following:(A) A date on which the district will cease to exist, by which time all tax allocation to the district will end. The(i) For plans proposed on or after January 1, 2024, for districts enacted primarily for the purpose of development and construction of passenger rail projects in the County of Los Angeles, where at least 75 percent of the revenue from the district is used for debt service on a federal Transportation Infrastructure Finance and Innovation Act (TIFIA) loan, the date shall not be more than 75 years from the date on which the issuance of bonds is approved pursuant to Section 53398.77, or the issuance of a loan is approved by the governing board of a local agency pursuant to Section 53398.87. Starting 45 years after the issuance of the TIFIA loan, incremental tax revenue received shall only be used for the purposes of the TIFIA loan repayment, including debt service.(ii) For all other districts, the date shall not be more than 45 years from the date on which the issuance of bonds is approved pursuant to Section 53398.77, or the issuance of a loan is approved by the governing board of a local agency pursuant to Section 53398.87.(B) If the district is divided into project areas, a date on which the infrastructure financing plan will cease to be in effect and all tax allocations to the district will end and a date on which the districts authority to repay indebtedness with incremental tax revenues received under this chapter will end, not to exceed 45 years from the date the district or the applicable project area has actually received one hundred thousand dollars ($100,000) in annual incremental tax revenues under this chapter. After the time limits established under this subparagraph, a district or project area shall not receive incremental tax revenues under this chapter. If the district is divided into project areas, a separate and unique time limit shall be applicable to each project area that does not exceed 45 years from the date the district has actually received one hundred thousand dollars ($100,000) in incremental tax revenues under this chapter from that project area.(6) An analysis of the costs to the city or county of providing facilities and services to the area of the district while the area is being developed and after the area is developed. The plan shall also include an analysis of the tax, fee, charge, and other revenues expected to be received by the city or county as a result of expected development in the area of the district.(7) An analysis of the projected fiscal impact of the district and the associated development upon each affected taxing entity.(8) A plan for financing any potential costs that may be incurred by reimbursing a developer of a project that is both located entirely within the boundaries of that district and qualifies for the Transit Priority Project Program, pursuant to Section 65470, including any permit and affordable housing expenses related to the project.(e) If any dwelling units within the territory of the district are proposed to be removed or destroyed in the course of public works construction within the area of the district or private development within the area of the district that is subject to a written agreement with the district or that is financed in whole or in part by the district, a plan providing for replacement of those units and relocation of those persons or families consistent with the requirements of Section 53398.56.(f) The goals the district proposes to achieve for each project financed pursuant to Section 53398.52.

53398.63. After receipt of a copy of the resolution of intention to establish a district, the official designated pursuant to Section 53398.62 shall prepare a proposed infrastructure financing plan. A plan shall be proposed for the district which that shall include any project areas, if proposed, within the district. The infrastructure financing plan shall be consistent with the general plan, and specific plan, if applicable, of the city or county within which the district is located and shall include all of the following:(a) A map and legal description of the proposed district, which may include all or a portion of the district designated by the legislative body in its resolution of intention.(b) A description of the public facilities and other forms of development or financial assistance that is proposed in the area of the district, including those to be provided by the private sector, those to be provided by governmental entities without assistance under this chapter, those public improvements and facilities to be financed with assistance from the proposed district, and those to be provided jointly. The description shall include the proposed location, timing, and costs of the development and financial assistance.(c) If funding from affected taxing entities is incorporated into the financing plan, a finding that the development and financial assistance are of communitywide significance and provide significant benefits to an area larger than the area of the district.(d) A financing section, which shall contain all of the following information:(1) A specification of the maximum portion of the incremental tax revenue of the city or county and of each affected taxing entity proposed to be committed to the district for each year during which the district will receive incremental tax revenue. The portion need not be the same for all affected taxing entities. The portion may change over time.(2) A projection of the amount of tax revenues expected to be received by the district in each year during which the district will receive tax revenues, including an estimate of the amount of tax revenues attributable to each affected taxing entity for each year.(3) A plan for financing the public facilities to be assisted by the district, including a detailed description of any intention to incur debt.(4) A limit on the total number of dollars of taxes that may be allocated to the district pursuant to the plan.(5) Either of the following:(A) A date on which the district will cease to exist, by which time all tax allocation to the district will end. The(i) For plans proposed on or after January 1, 2024, for districts enacted primarily for the purpose of development and construction of passenger rail projects in the County of Los Angeles, where at least 75 percent of the revenue from the district is used for debt service on a federal Transportation Infrastructure Finance and Innovation Act (TIFIA) loan, the date shall not be more than 75 years from the date on which the issuance of bonds is approved pursuant to Section 53398.77, or the issuance of a loan is approved by the governing board of a local agency pursuant to Section 53398.87. Starting 45 years after the issuance of the TIFIA loan, incremental tax revenue received shall only be used for the purposes of the TIFIA loan repayment, including debt service.(ii) For all other districts, the date shall not be more than 45 years from the date on which the issuance of bonds is approved pursuant to Section 53398.77, or the issuance of a loan is approved by the governing board of a local agency pursuant to Section 53398.87.(B) If the district is divided into project areas, a date on which the infrastructure financing plan will cease to be in effect and all tax allocations to the district will end and a date on which the districts authority to repay indebtedness with incremental tax revenues received under this chapter will end, not to exceed 45 years from the date the district or the applicable project area has actually received one hundred thousand dollars ($100,000) in annual incremental tax revenues under this chapter. After the time limits established under this subparagraph, a district or project area shall not receive incremental tax revenues under this chapter. If the district is divided into project areas, a separate and unique time limit shall be applicable to each project area that does not exceed 45 years from the date the district has actually received one hundred thousand dollars ($100,000) in incremental tax revenues under this chapter from that project area.(6) An analysis of the costs to the city or county of providing facilities and services to the area of the district while the area is being developed and after the area is developed. The plan shall also include an analysis of the tax, fee, charge, and other revenues expected to be received by the city or county as a result of expected development in the area of the district.(7) An analysis of the projected fiscal impact of the district and the associated development upon each affected taxing entity.(8) A plan for financing any potential costs that may be incurred by reimbursing a developer of a project that is both located entirely within the boundaries of that district and qualifies for the Transit Priority Project Program, pursuant to Section 65470, including any permit and affordable housing expenses related to the project.(e) If any dwelling units within the territory of the district are proposed to be removed or destroyed in the course of public works construction within the area of the district or private development within the area of the district that is subject to a written agreement with the district or that is financed in whole or in part by the district, a plan providing for replacement of those units and relocation of those persons or families consistent with the requirements of Section 53398.56.(f) The goals the district proposes to achieve for each project financed pursuant to Section 53398.52.

53398.63. After receipt of a copy of the resolution of intention to establish a district, the official designated pursuant to Section 53398.62 shall prepare a proposed infrastructure financing plan. A plan shall be proposed for the district which that shall include any project areas, if proposed, within the district. The infrastructure financing plan shall be consistent with the general plan, and specific plan, if applicable, of the city or county within which the district is located and shall include all of the following:(a) A map and legal description of the proposed district, which may include all or a portion of the district designated by the legislative body in its resolution of intention.(b) A description of the public facilities and other forms of development or financial assistance that is proposed in the area of the district, including those to be provided by the private sector, those to be provided by governmental entities without assistance under this chapter, those public improvements and facilities to be financed with assistance from the proposed district, and those to be provided jointly. The description shall include the proposed location, timing, and costs of the development and financial assistance.(c) If funding from affected taxing entities is incorporated into the financing plan, a finding that the development and financial assistance are of communitywide significance and provide significant benefits to an area larger than the area of the district.(d) A financing section, which shall contain all of the following information:(1) A specification of the maximum portion of the incremental tax revenue of the city or county and of each affected taxing entity proposed to be committed to the district for each year during which the district will receive incremental tax revenue. The portion need not be the same for all affected taxing entities. The portion may change over time.(2) A projection of the amount of tax revenues expected to be received by the district in each year during which the district will receive tax revenues, including an estimate of the amount of tax revenues attributable to each affected taxing entity for each year.(3) A plan for financing the public facilities to be assisted by the district, including a detailed description of any intention to incur debt.(4) A limit on the total number of dollars of taxes that may be allocated to the district pursuant to the plan.(5) Either of the following:(A) A date on which the district will cease to exist, by which time all tax allocation to the district will end. The(i) For plans proposed on or after January 1, 2024, for districts enacted primarily for the purpose of development and construction of passenger rail projects in the County of Los Angeles, where at least 75 percent of the revenue from the district is used for debt service on a federal Transportation Infrastructure Finance and Innovation Act (TIFIA) loan, the date shall not be more than 75 years from the date on which the issuance of bonds is approved pursuant to Section 53398.77, or the issuance of a loan is approved by the governing board of a local agency pursuant to Section 53398.87. Starting 45 years after the issuance of the TIFIA loan, incremental tax revenue received shall only be used for the purposes of the TIFIA loan repayment, including debt service.(ii) For all other districts, the date shall not be more than 45 years from the date on which the issuance of bonds is approved pursuant to Section 53398.77, or the issuance of a loan is approved by the governing board of a local agency pursuant to Section 53398.87.(B) If the district is divided into project areas, a date on which the infrastructure financing plan will cease to be in effect and all tax allocations to the district will end and a date on which the districts authority to repay indebtedness with incremental tax revenues received under this chapter will end, not to exceed 45 years from the date the district or the applicable project area has actually received one hundred thousand dollars ($100,000) in annual incremental tax revenues under this chapter. After the time limits established under this subparagraph, a district or project area shall not receive incremental tax revenues under this chapter. If the district is divided into project areas, a separate and unique time limit shall be applicable to each project area that does not exceed 45 years from the date the district has actually received one hundred thousand dollars ($100,000) in incremental tax revenues under this chapter from that project area.(6) An analysis of the costs to the city or county of providing facilities and services to the area of the district while the area is being developed and after the area is developed. The plan shall also include an analysis of the tax, fee, charge, and other revenues expected to be received by the city or county as a result of expected development in the area of the district.(7) An analysis of the projected fiscal impact of the district and the associated development upon each affected taxing entity.(8) A plan for financing any potential costs that may be incurred by reimbursing a developer of a project that is both located entirely within the boundaries of that district and qualifies for the Transit Priority Project Program, pursuant to Section 65470, including any permit and affordable housing expenses related to the project.(e) If any dwelling units within the territory of the district are proposed to be removed or destroyed in the course of public works construction within the area of the district or private development within the area of the district that is subject to a written agreement with the district or that is financed in whole or in part by the district, a plan providing for replacement of those units and relocation of those persons or families consistent with the requirements of Section 53398.56.(f) The goals the district proposes to achieve for each project financed pursuant to Section 53398.52.



53398.63. After receipt of a copy of the resolution of intention to establish a district, the official designated pursuant to Section 53398.62 shall prepare a proposed infrastructure financing plan. A plan shall be proposed for the district which that shall include any project areas, if proposed, within the district. The infrastructure financing plan shall be consistent with the general plan, and specific plan, if applicable, of the city or county within which the district is located and shall include all of the following:

(a) A map and legal description of the proposed district, which may include all or a portion of the district designated by the legislative body in its resolution of intention.

(b) A description of the public facilities and other forms of development or financial assistance that is proposed in the area of the district, including those to be provided by the private sector, those to be provided by governmental entities without assistance under this chapter, those public improvements and facilities to be financed with assistance from the proposed district, and those to be provided jointly. The description shall include the proposed location, timing, and costs of the development and financial assistance.

(c) If funding from affected taxing entities is incorporated into the financing plan, a finding that the development and financial assistance are of communitywide significance and provide significant benefits to an area larger than the area of the district.

(d) A financing section, which shall contain all of the following information:

(1) A specification of the maximum portion of the incremental tax revenue of the city or county and of each affected taxing entity proposed to be committed to the district for each year during which the district will receive incremental tax revenue. The portion need not be the same for all affected taxing entities. The portion may change over time.

(2) A projection of the amount of tax revenues expected to be received by the district in each year during which the district will receive tax revenues, including an estimate of the amount of tax revenues attributable to each affected taxing entity for each year.

(3) A plan for financing the public facilities to be assisted by the district, including a detailed description of any intention to incur debt.

(4) A limit on the total number of dollars of taxes that may be allocated to the district pursuant to the plan.

(5) Either of the following:

(A) A date on which the district will cease to exist, by which time all tax allocation to the district will end. The

(i) For plans proposed on or after January 1, 2024, for districts enacted primarily for the purpose of development and construction of passenger rail projects in the County of Los Angeles, where at least 75 percent of the revenue from the district is used for debt service on a federal Transportation Infrastructure Finance and Innovation Act (TIFIA) loan, the date shall not be more than 75 years from the date on which the issuance of bonds is approved pursuant to Section 53398.77, or the issuance of a loan is approved by the governing board of a local agency pursuant to Section 53398.87. Starting 45 years after the issuance of the TIFIA loan, incremental tax revenue received shall only be used for the purposes of the TIFIA loan repayment, including debt service.

(ii) For all other districts, the date shall not be more than 45 years from the date on which the issuance of bonds is approved pursuant to Section 53398.77, or the issuance of a loan is approved by the governing board of a local agency pursuant to Section 53398.87.

(B) If the district is divided into project areas, a date on which the infrastructure financing plan will cease to be in effect and all tax allocations to the district will end and a date on which the districts authority to repay indebtedness with incremental tax revenues received under this chapter will end, not to exceed 45 years from the date the district or the applicable project area has actually received one hundred thousand dollars ($100,000) in annual incremental tax revenues under this chapter. After the time limits established under this subparagraph, a district or project area shall not receive incremental tax revenues under this chapter. If the district is divided into project areas, a separate and unique time limit shall be applicable to each project area that does not exceed 45 years from the date the district has actually received one hundred thousand dollars ($100,000) in incremental tax revenues under this chapter from that project area.

(6) An analysis of the costs to the city or county of providing facilities and services to the area of the district while the area is being developed and after the area is developed. The plan shall also include an analysis of the tax, fee, charge, and other revenues expected to be received by the city or county as a result of expected development in the area of the district.

(7) An analysis of the projected fiscal impact of the district and the associated development upon each affected taxing entity.

(8) A plan for financing any potential costs that may be incurred by reimbursing a developer of a project that is both located entirely within the boundaries of that district and qualifies for the Transit Priority Project Program, pursuant to Section 65470, including any permit and affordable housing expenses related to the project.

(e) If any dwelling units within the territory of the district are proposed to be removed or destroyed in the course of public works construction within the area of the district or private development within the area of the district that is subject to a written agreement with the district or that is financed in whole or in part by the district, a plan providing for replacement of those units and relocation of those persons or families consistent with the requirements of Section 53398.56.

(f) The goals the district proposes to achieve for each project financed pursuant to Section 53398.52.

SEC. 2. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique timelines of districts enacted primarily for the purpose of development and construction of zero-emission mass transit projects.

SEC. 2. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique timelines of districts enacted primarily for the purpose of development and construction of zero-emission mass transit projects.

SEC. 2. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique timelines of districts enacted primarily for the purpose of development and construction of zero-emission mass transit projects.

### SEC. 2.



The Legislature finds and declares all of the following:



(a)Nearly 50 percent of the states greenhouse gas emissions come from the transportation sector.



(b)According to the State Air Resources Boards 2022 scoping plan adopted pursuant to Section 38561 of the Health and Safety Code, the transition to zero-emission vehicles is not enough to meet the states climate goals, with the state needing to also reduce vehicle miles traveled. Increasing the use of public transportation is critical to success.



(c)Transit use has been on the decline in California, both prior to, and concurrent with, the COVID-19 pandemic due to various factors.



(d)The Legislature temporarily suspended performance metrics under the Transportation Development Act (Chapter 4 (commencing with Section 99200) of Part 11 of Division 10 of the Public Utilities Code) and Congress provided short-term emergency funding relief to transit agencies to address the COVID-19 pandemics impact on fare revenue and local funding support. However, the state has not developed new metrics to monitor the performance of public transit or new strategies to help transit agencies stabilize and ultimately grow public transit ridership.



(e)California transit agencies need additional funding to maintain a state of good repair, expand service, and grow transit ridership. State oversight is needed to ensure transit operators are providing a high-quality, reliable service.







(a)On or before July 1, 2024, the secretary shall establish and convene the Transit Transformation Task Force.



(b)The task force shall include, but is not limited to, representatives from transit operators, both urban and rural, the Department of Transportation, the Controllers office, local governments, metropolitan planning organizations, regional transportation planning organizations, transportation advocacy organizations with expertise in public transit, labor organizations, academic institutions, and other stakeholders, as appropriate, at the discretion of the secretary.



(c)The task force shall develop a structured, coordinated process for early engagement of all parties to develop policies to grow transit ridership and improve the transit experience for all users of those services.



(d)The secretary shall, in consultation with the task force, prepare and submit a report of findings based on the task forces efforts to the appropriate policy and fiscal committees of the Legislature on or before January 1, 2025.



(e)The report shall include, but is not limited to, a detailed analysis of the following issues:



(1)The services provided by transit agencies and the demographics of transit ridership, with detail on services provided, including persons with disabilities, or specific populations like low-income individuals and students.



(2)Existing funding sources for transit with a breakdown of funding available for capital and operations, including any constitutional and statutory limitations on these existing funding sources.



(3)The use of state transit funding for other modes, such as streets and roads.



(4)The cost to operate, maintain, and provide for the necessary future growth of transit systems for the next 10 years.



(5)The costs and operational impacts associated with federal, state, and local mandates including, but not limited to, the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132) and the State Air Resources Boards Innovative Clean Transit regulations (Article 4.3 (commencing with Section 2023) of Chapter 1 of Division 3 of Title 13 of the California Code of Regulations).



(6)Workforce recruitment, retention, and development challenges, impacting transit service.



(7)Existing policies on state and local metrics to measure transit performance.



(8)State and local policies that impact service efficiency and transit ridership including, but not limited to, transit prioritization on roads, land use, housing, and pricing policies.



(9)State departments and agencies that have responsibility for transit system oversight, grant administration, and reporting.



(f)The report shall also include, but is not limited to, recommendations on the following:



(1)How to improve mobility and increase ridership on transit, including, but not limited to:



(A)Service and fare coordination or integration between transit agencies.



(B)Coordinated scheduling, mapping, and wayfinding between transit agencies.



(C)Ensuring a safe and clean ride for passengers and operators.



(D)Increasing the frequency and reliability, through strategies that include, but are not limited to, the sharing of real-time transit information such as arrival and departure times and predictions, service alert data, and transit prioritization on roads.



(2)Changes to land use, housing, and pricing policies that could improve public transit use.



(3)Strategies to address workforce recruitment, retention, and development challenges.



(4)Replacing fare box recovery ratios and efficiency criteria required under the Transportation Development Act (Chapter 4 (commencing with Section 99200) of Part 11 of Division 10 of the Public Utilities Code) with performance metrics that better measure transit operations, including usage, cost efficiency of operations, and service quality.



(5)The appropriate state department or agency to be responsible for transit system oversight and reporting.



(6)New options for state revenue sources to fund transit operations and capital projects to meet necessary future growth of transit systems for the next 10 years and to address mandates.



(7)The potential of transit-oriented development and value capture of property around transit stations as a source of sustainable revenue for transit operations.



(g)The task force may consult with the California Transportation Commission to use its work on the needs assessment prepared pursuant to Section 14518 of the Government Code regarding the identification of future transit capital and operational needs.



(h)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.