Existing law declares that the fostering, continuance, and development of public transportation systems are a matter of statewide concern. Existing law authorizes the Department of Transportation to administer various programs and allocates moneys for various public transportation purposes.

This bill would, upon an appropriation of moneys from the Public Transportation Account by the Legislature, create the Transit Pass Pilot Program to be administered by the department to provide free or reduced-fare transit passes, directly or through a 3rd party, including a transit agency, to specified pupils and students by supporting new, or expanding existing, transit pass programs. The bill would require the department to develop guidelines that describe the application process and selection criteria for awarding the moneys made available for the program, and would exempt the development of those guidelines from the Administrative Procedure Act. The bill would require the department to develop performance measures and reporting requirements to evaluate the effectiveness of the program, and would require the department to submit a report to specified committees of the Legislature on or before January 1, 2020, on the outcomes of the program and the status of transit pass programs statewide. The bill would provide that its requirements become effective only upon an appropriation that would trigger the creation of the program. The pilot program would be repealed on January 1, 2022.

Existing law declares that the fostering, continuance, and development of public transportation systems are a matter of statewide concern. Existing law authorizes the Department of Transportation to administer various programs and allocates moneys for various public transportation purposes.

This bill would would, upon the appropriation of moneys from the Public Transportation Account by the Legislature, create the Transit Pass Pilot Program to be administered by the department to provide free or reduced-fare transit passes passes, directly or through a 3rd party, including a transit agency, to specified pupils and students by supporting new, or expanding existing, transit pass programs. The bill would require the department to develop guidelines that describe the application process and selection criteria for awarding the moneys made available for the program, and would exempt the development of those guidelines from the Administrative Procedure Act. The bill wouldrequire would require the department to develop performance measures and reporting requirements to evaluate the effectiveness of the program, and would require the department to submit a report to specified committees of the Legislature on or before January 1, 2020, on the outcomes of the program and the status of transit pass programs statewide. The bill would provide that its requirements become effective only upon an appropriation that would trigger the creation of the program. The pilot program would be repealed on January 1, 2022.

Existing law declares that the fostering, continuance, and development of public transportation systems are a matter of statewide concern. Existing law authorizes the Department of Transportation to administer various programs and allocates moneys for various public transportation purposes.

This bill would create the Transit Pass Pilot Program to be administered by the department. The bill would require the Controller of the State of California to allocate moneys made available for the program, upon appropriation by the Legislature, to support transit pass programs that department to provide free or reduced-fare transit passes to specified pupils and students. students by supporting new, or expanding existing, transit pass programs. The bill would require the department to develop guidelines that describe the criteria that eligible transit providers, as defined, are required to use to make available free or reduced-fare transit passes to eligible participants, as defined, and to ensure that moneys from the program are used to expand eligibility or further reduce the cost of a transit pass under existing programs. The bill application process and selection criteria for awarding the moneys made available for the program, and would exempt the development of those guidelines from the Administrative Procedure Act. The bill would require eligible transit providers and eligible participants to enter into agreements for the distribution of free or reduced-fare transit passes to students.

This bill would require require the department to develop performance measures and reporting requirements to evaluate the effectiveness of the program, including an annual update of the number of free or reduced-fare transit passes distributed to pupils and students and whether the program is increasing transit ridership among pupils and students. The bill would set a minimum allocation of $20,000 for each eligible transit provider and would provide for the distribution and allocation of remaining moneys by formula to eligible transit providers. and would require the department to submit a report to specified committees of the Legislature on or before January 1, 2020, on the outcomes of the program and the status of transit pass programs statewide. The pilot program would be repealed on January 1, 2022.

Existing law declares that the fostering, continuance, and development of public transportation systems are a matter of statewide concern. Existing law authorizes the Department of Transportation to administer various programs and allocates moneys for various public transportation purposes.

This bill would create the Transit Pass Program to be administered by the department. The bill would require the Controller of the State of California to allocate moneys made available for the program, upon appropriation by the Legislature, to support transit pass programs that provide free or reduced-fare transit passes to specified pupils and students. The bill would require the department to develop guidelines that describe the criteria that eligible transit providers, as defined, are required to use to make available free or reduced-fare transit passes to eligible participants, as defined, and to ensure that moneys from the program are used to expand eligibility or further reduce the cost of a transit pass under existing programs. The bill would exempt the development of those guidelines from the Administrative Procedure Act. The bill would require eligible transit providers and eligible participants to enter into agreements for the distribution of free or reduced-fare transit passes to students.

GOVERNOR'S VETO

GV Bill Id:AB 17

Author:(Holden)

As Enrolled Ver:September 13, 2017

2/3 vote

Original Committee Reference: TRANS.

SUMMARY: Authorizes a Transit Pilot Pass Program funded at $20 million to be administered by the Department of Transportation (Caltrans) to provide free or reduced fare transit passes to low income students.

The Senate amendments:

1. Delete the $20 million appropriation from the Public Transit Account (PTA) to Caltrans for the transit pass pilot program, and instead declares the pilot program only become operative upon appropriation by the Legislature of moneys from the PTA account.
2. Authorize Caltrans to administer the transit pass pilot directly or through a third party, including a transit agency.

AS PASSED BY THE ASSEMBLY, this bill:

1. Made finding and declarations that student transit pass programs have been shown to increase transit ridership.
2. Created the Transit Pass Pilot Program to be administered by Caltrans to fund pilot testing of transit pass programs that provide free or reduced fare transit passes to low income students from K-12 public schools, community colleges, the California State University (CSU) and the University of California (UC).
3. Appropriated $20 million from the PTA to Caltrans for the program.
4. Defined eligible students as pupils attending middle or high-schools that are eligible for funding under Title I of the Elementary and Secondary Education Act; students attending community college who qualify for a waiver of student fees; and students attending a CSU or UC who receive an award under the Cal Grant Program or the federal Pell Grant Program.
5. Defined eligible participants as a public agency, including a transit operator, school district, community college district, the CSU, and the UC.
6. Required Caltrans to develop guidelines for the application process and selection criteria for awarding the funds, including ensuring the funds are expended to create new transit pass programs, or expand eligibility or further reduce the cost of a transit pass under existing programs.
7. Required Caltrans to develop performance measures and reporting requirements to evaluate the effectiveness of the pilot program.
8. Required the award to an eligible participant be between a minimum of $20,000 and a maximum of $5 million, and that funds awarded are available for expenditure for two years.
9. Required Caltrans to submit a report to the Legislature on the outcomes of the pilot program by January 1, 2020. The report must include the number of free or reduced fare transit passes provided to students; whether the program has increased transit ridership among students; an assessment of how many transit operators and schools have a transit pass program, and recommendations on how to expand transit pass programs to ensure that all eligible students have access.
10. Included a sunset date of January 1, 2022.

FISCAL EFFECT: According to the Senate Appropriations Committee:

1. Significant cost pressures, in the millions annually until 2022, to fund the Transit Pass Pilot Program. (PTA)
2. Caltrans estimates administrative costs of approximately $500,000 annually and four Personnel Year of staff for four years. Initial costs would be incurred to develop and adopt guidelines, performance measures, and reporting requirements related to establishing the program, and ongoing costs would be related to administering the program, including any necessary monitoring, evaluations, and audits of grant recipients, as well as the report. Staff notes that these costs would only be incurred to the extent funding is appropriated for the program, and actual costs would depend on the level of funding provided. (State Highway Account)
3. Significant future cost pressures, in the millions annually beginning in 2022, based on the report recommendations for expanding transit pass programs to ensure all eligible pupils and students statewide have access to a transit pass program. (General Fund and PTA)

COMMENTS: This bill would establish a transit pass pilot program, upon appropriation of funding by the Legislature, to provide free or reduced cost transit passes to low income K-12, community college and university students throughout California. The program would be administered by Caltrans, who will develop guidelines for the grants. Transit operators, schools, community colleges, and CSU and UC would be eligible for the pilot program. The intent of the pilot program is to encourage the creation of new transit pass programs and to expand current transit pass programs, including further reducing fares for students.

Currently, many transit agencies in California provide free or reduced fare transit passes to students for use on their systems. For example, the San Francisco (SF) Muni offers the Free Muni for Youth program that gives free access to Muni to low and moderate income youth, from five to 18 years old. Sacramento Regional Transit also offers students from age five to 18 a 50% discounted fare for monthly passes. The Los Angeles County Metropolitan Transportation Authority (Metro) has been offering reduced fares for both K-12 and college students since the early 1990s. Specifically, Metro has programs for both college students, with a 54% discount on a monthly pass, and a 76% discount for the K-12 program. Most of the existing programs require proof of the students being registered in school; however the SF Muni program is based upon family income level. Additionally, transit agencies have developed agreements directly with schools in their jurisdictions to partner and provide free or reduced passes to all students. The University of California Los Angeles (UCLA) and the University of Southern California (USC) provide free passes for their students in partnership with Metro. Most transit agencies subsidize the free or reduced fare programs as part of their existing operating budget, including funding from the State Transit Assistance Program (STA), or utilize funding from other local or private sources. Additionally, the current Low Carbon Transit Operations Program (LCTOP), funded by the state’s cap and trade program revenues, allows transit agencies to use funds for transit passes.

According to the author, this bill would provide hard-working, budget conscious students with low-cost transit passes that will enable them to commute to and from their destination, while providing local transportation agencies with statistically proven source of new riders. A study conducted by UCLA found that providing free or low-cost access to public transit significantly reduced the demand for student parking at college campuses and that over half of college students polled favored increasing student fees to help fund low-cost transit programs.

Committee concerns: There is a concern that the pilot program created by this bill is duplicative of existing programs. As noted above, many of California transit agencies and colleges and universities are already operating successful reduced fare transit pass programs. These programs are eligible for funding from a variety of state and local sources. Further, this bill only allows for specific students to participate in the pilot program, and therefore may be difficult to implement by creating bifurcated programs with different eligibilities within both transit agencies and schools.

The recent passage of SB 1 (Beall), Chapter 5, Statues of 2017, will provide a roughly 130% increase in STA funding for transit operators. Additionally, stabilizing the state’s cap and trade program will likely provide more funding for LCTOP. There may be opportunities within these existing programs to encourage and incentivize creating or expanding transit pass programs.

GOVERNOR'S VETO MESSAGE:

This bill requires the Department of Transportation to create a competitive grant program for local transit agencies to provide free and reduced-fare transit passes for low-income students.

Many transit agencies, including the Los Angeles County Metropolitan Transportation Authority, already have a variety of reduced-fare transit programs for students. Before we create this new statewide program, I think we should have a fuller discussion on how local transit discount programs work and how any new ones should be paid for.

Analysis Prepared by: Melissa White / TRANS. / (916) 319-2093 FN: 0002458

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 17

Author:(Holden)

As Amended Ver:September 1, 2017

Majority vote

Original Committee Reference: TRANS.

SUMMARY: Authorizes a Transit Pilot Pass Program funded at $20 million to be administered by the Department of Transportation (Caltrans) to provide free or reduced fare transit passes to low income students.

The Senate amendments:

1. Deletes the $20 million appropriation from the Public Transit Account (PTA) to Caltrans for the transit pass pilot program, and instead declares the pilot program only become operative upon appropriation by the Legislature of moneys from the PTA account.
2. Authorizes Caltrans to administer the transit pass pilot directly or through a third party, including a transit agency.

AS PASSED BY THE ASSEMBLY, this bill:

1. Made finding and declarations that student transit pass programs have been shown to increase transit ridership.
2. Created the Transit Pass Pilot Program to be administered by Caltrans to fund pilot testing of transit pass programs that provide free or reduced fare transit passes to low income students from K-12 public schools, community colleges, the California State University (CSU) and the University of California (UC).
3. Appropriated $20 million from the PTA to Caltrans for the program.
4. Defined eligible students as pupils attending middle or high-schools that are eligible for funding under Title I of the Elementary and Secondary Education Act; students attending community college who qualify for a waiver of student fees; and students attending a CSU or UC who receive an award under the Cal Grant Program or the federal Pell Grant Program.
5. Defined eligible participants as a public agency, including a transit operator, school district, community college district, the CSU, and the UC.
6. Required Caltrans to develop guidelines for the application process and selection criteria for awarding the funds, including ensuring the funds are expended to create new transit pass programs, or expand eligibility or further reduce the cost of a transit pass under existing programs.
7. Required Caltrans to develop performance measures and reporting requirements to evaluate the effectiveness of the pilot program.
8. Required the award to an eligible participant be between a minimum of $20,000 and a maximum of $5 million, and that funds awarded are available for expenditure for two years.
9. Required Caltrans to submit a report to the Legislature on the outcomes of the pilot program by January 1, 2020. The report must include the number of free or reduced fare transit passes provided to students; whether the program has increased transit ridership among students; an assessment of how many transit operators and schools have a transit pass program, and recommendations on how to expand transit pass programs to ensure that all eligible students have access.
10. Included a sunset date of January 1, 2022.

FISCAL EFFECT: According to the Senate Appropriations Committee:

1. Significant cost pressures, in the millions annually until 2022, to fund the Transit Pass Pilot Program. (PTA)
2. Caltrans estimates administrative costs of approximately $500,000 annually and four Personnel Year of staff for four years. Initial costs would be incurred to develop and adopt guidelines, performance measures, and reporting requirements related to establishing the program, and ongoing costs would be related to administering the program, including any necessary monitoring, evaluations, and audits of grant recipients, as well as the report.  Staff notes that these costs would only be incurred to the extent funding is appropriated for the program, and actual costs would depend on the level of funding provided. (State Highway Account)
3. Significant future cost pressures, in the millions annually beginning in 2022, based on the report recommendations for expanding transit pass programs to ensure all eligible pupils and students statewide have access to a transit pass program. (General Fund and PTA)

COMMENTS: This bill would establish a transit pass pilot program, upon appropriation of funding by the Legislature, to provide free or reduced cost transit passes to low income K-12, community college and university students throughout California. The program would be administered by Caltrans, who will develop guidelines for the grants. Transit operators, schools, community colleges, and CSU and UC would be eligible for the pilot program. The intent of the pilot program is to encourage the creation of new transit pass programs and to expand current transit pass programs, including further reducing fares for students.

Currently, many transit agencies in California provide free or reduced fare transit passes to students for use on their systems. For example, the San Francisco (SF) Muni offers the Free Muni for Youth program that gives free access to Muni to low and moderate income youth, from five to 18 years old. Sacramento Regional Transit also offers students from age five to 18 a 50% discounted fare for monthly passes. The Los Angeles County Metropolitan Transportation Authority (Metro) has been offering reduced fares for both K-12 and college students since the early 1990s. Specifically, Metro has programs for both college students, with a 54% discount on a monthly pass, and a 76% discount for the K-12 program. Most of the existing programs require proof of the students being registered in school; however the SF Muni program is based upon family income level. Additionally, transit agencies have developed agreements directly with schools in their jurisdictions to partner and provide free or reduced passes to all students. The University of California Los Angeles (UCLA) and the University of Southern California (USC) provide free passes for their students in partnership with Metro. Most transit agencies subsidize the free or reduced fare programs as part of their existing operating budget, including funding from the State Transit Assistance Program (STA), or utilize funding from other local or private sources. Additionally, the current Low Carbon Transit Operations Program (LCTOP), funded by the state’s cap and trade program revenues, allows transit agencies to use funds for transit passes.

According to the author, this bill would provide hard-working, budget conscious students with low-cost transit passes that will enable them to commute to and from their destination, while providing local transportation agencies with statistically proven source of new riders. A study conducted by UCLA found that providing free or low-cost access to public transit significantly reduced the demand for student parking at college campuses and that over half of college students polled favored increasing student fees to help fund low-cost transit programs.

Committee concerns: There is a concern that the pilot program created by this bill is duplicative of existing programs. As noted above, many of California transit agencies and colleges and universities are already operating successful reduced fare transit pass programs. These programs are eligible for funding from a variety of state and local sources. Further, this bill only allows for specific students to participate in the pilot program, and therefore may be difficult to implement by creating bifurcated programs with different eligibilities within both transit agencies and schools.

The recent passage of SB 1 (Beall), Chapter 5, Statues of 2017, will provide a roughly 130% increase in STA funding for transit operators. Additionally, stabilizing the state’s cap and trade program will likely provide more funding for LCTOP. There may be opportunities within these existing programs to encourage and incentivize creating or expanding transit pass programs.

Please see the policy committee analysis for full discussion of this bill.

Analysis Prepared by: Melissa White / TRANS. / (916) 319-2093 FN: 0002087

SENATE COMMITTEE ON

Senator Ricardo Lara, Chair

2017 - 2018 Regular Session

AB 17 (Holden) - Transit Pass Pilot Program: free or reduced-fare transit passes

*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********

The following information is revised to reflect amendments

adopted by the committee on September 1, 2017

Bill Summary:

AB 17 would establish the Transit Pass Pilot Program, administered by the Department of Transportation (Caltrans), to provide funding to eligible participants for free or reduced-fare transit passes for specified pupils and students. The bill would appropriate $20 million from the Public Transportation Account (PTA) to Caltrans to implement the program, require a specified report to the Legislature by January 1, 2020, and sunset the program on January 1, 2022.

Fiscal Impact:

• Significant cost pressures, in the millions annually until 2022, to fund the Transit Pass Pilot Program. (PTA)
  
• Caltrans estimates administrative costs of approximately $500,000 annually and 4 PY of staff for four years. Initial costs would be incurred to develop and adopt guidelines, performance measures, and reporting requirements related to establishing the program, and ongoing costs would be related to administering the program, including any necessary monitoring, evaluations, and audits of grant recipients, as well as the report. Staff notes that these costs would only be incurred to the extent funding is appropriated for the program, and actual costs would depend on the level of funding provided. (State Highway Account)
  
• Significant future cost pressures, in the millions annually beginning in 2022, based on the report recommendations for expanding transit pass programs to ensure all eligible pupils and students statewide have access to a transit pass program. (General Fund and PTA)

Author Amendments:

Add co-authors and clarify that Caltrans may administer the program by providing transit passes directly or through a third party, including a transit agency.

Committee Amendments:

Delete section 2 of the bill and the appropriation of $20 million from the PTA to fund the program, and instead make implementation contingent upon an appropriation by the Legislature from the PTA.

-- END --

 THIRD READING  

Bill No: AB 17

Author:

: 9/1/17

Vote:

SENATE TRANS. & HOUSING COMMITTEE: 12-1, 7/11/17

AYES: Beall, Cannella, Allen, Atkins, Gaines, McGuire, Mendoza, Roth, Skinner, Vidak, Wieckowski, Wiener

NOES: Morrell

SENATE APPROPRIATIONS COMMITTEE: 7-0, 9/1/17

AYES: Lara, Bates, Beall, Bradford, Hill, Nielsen, Wiener

ASSEMBLY FLOOR: 71-4, 5/31/17 - See last page for vote

SUBJECT:

SOURCE: Move LA

Student Senate for California Community Colleges

Transform

DIGEST:

This bill creates a transit pass pilot program administered by the State Department of Transportation (Caltrans), as specified.

ANALYSIS:

Existing law:

1. Creates the Public Transportation Account (PTA) within the State Transportation Fund.
2. Provides that PTA funds are to be used only for transportation planning and mass transportation purposes, as specified.
3. Provides funding for public transportation through the Transportation Development Act, including State Transit Assistance (STA) which is derived from the statewide sales tax on diesel fuel. STA funds are appropriated by the Legislature and are allocated by formula with 50% being allocated to transit agencies according to population and 50% being allocated according to transit operator revenues from the prior fiscal year.
4. Authorizes Caltrans to administer various programs and allocates moneys for various public transportation purposes.

This bill:

1. Makes finding and declarations that student transit pass programs have been shown to increase transit ridership.
2. Creates the Transit Pass Pilot Program to be administered by Caltrans to support local transit pass programs that provide free or reduced fare transit passes to low income students from K-12 public schools, community colleges, the California State University (CSU) and the University of California (UC).
3. Defines low income students as:
   1. Pupils attending middle or high-schools that are eligible for funding under Title I of the Elementary and Secondary Education Act of 1965;
   2. Students attending community college who qualify for a waiver of student fees; and,
   3. Students attending a CSU or UC who receive an award under the Cal Grant Program or the federal Pell Grant Program.
4. Defines eligible participants as a public agency, including a transit operator, school district, community college district, the CSU, and the UC.
5. Requires Caltrans to develop guidelines that describe the application process and selection criteria for awarding program funds.
6. Requires Caltrans to develop performance measures and reporting requirements to evaluate program effectiveness.
7. Provides that dollars awarded to an eligible participant are to be available for expenditure for two years from the date upon receiving the funds.
8. Requires the award to an eligible participant be between a minimum of $20,000 and a maximum of $5 million, and that funds awarded are available for expenditure for two years.
9. Requires Caltrans to submit a report to the Legislature on the outcomes of the pilot program by January 1, 2020. The report must include the number of free or reduced fare transit passes provided to students; whether the program has increased transit ridership among students; an assessment of how many transit operators and schools have a transit pass program, and recommendations on how to expand transit pass programs to ensure that all eligible students have access.
10. Includes a sunset date of January 1, 2022.
11. Provides that funding for the pilot program is subject to appropriation by the Legislature from the PTA.

Comments

1. Purpose. According to the author, “Assembly Bill 17 will increase public transportation ridership, ensure that students arrive at school safely, and will help hard working students and their families lessen the heavy burden of transportation costs. By implementing the state’s first statewide program designed to provide no or low cost transit passes to California students—California is transforming the way we approach our student’s public transportation needs.”
2. Discounted passes. Currently, many transit agencies throughout the state provide free or reduced-priced transit passes to youth, students, seniors, and military veterans contingent on the transit agency’s financial resources. For example, the Riverside Transit Agency provides discounted fares for youth, senior, disabled, and veteran transit users. Similarly, the San Mateo County Transit District provides discounted fares and passes for youth, seniors, and disabled riders. Moreover, while transit agencies will use a portion of their State Transit Assistance revenues to provide discounted passes and fares, other programs such as the Cap and Trade’s Low Carbon Transit Operations Program provide additional funding that may be used to fund a greater number of discounted/free transit passes.
3. Pilot Program. The author and supporters of this bill assert that the existing amount of free/discounted passes and fares provided by transit agencies does not meet the existing demand by low income students. Furthermore, supporters note that the lack of available affordable transportation (including transit) is a significant barrier to low-income students’ school attendance and classroom success. This bill creates a pilot program — that will be funded through an appropriation by the Legislature from the PTA — that will assess that level of demand. Specifically, contingent on program funding, the pilot program will allow school districts and colleges to apply for a transit pass grant (administered by Caltrans) and work with local transit agencies to offer additional discounted/free passes to low-income students. Completely voluntary, school districts and colleges that have identified transportation as a significant barrier will have the opportunity to apply for grant funds and be able to track the actual usage. Guidelines and reporting requirements by grantees and Caltrans will ultimately identify the necessary data to determine whether the existing discounted programs administered by transit agencies are sufficient to meet the demand.

FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No

According to the Senate Appropriations Committee:

• Significant cost pressures, in the millions annually until 2022, to fund the Transit Pass Pilot Program.  (PTA)
• Caltrans estimates administrative costs of approximately $500,000 annually and 4 PY of staff for four years.  Initial costs would be incurred to develop and adopt guidelines, performance measures, and reporting requirements related to establishing the program, and ongoing costs would be related to administering the program, including any necessary monitoring, evaluations, and audits of grant recipients, as well as the report.  Staff notes that these costs would only be incurred to the extent funding is appropriated for the program, and actual costs would depend on the level of funding provided.  (State Highway Account)
• Significant future cost pressures, in the millions annually beginning in 2022, based on the report recommendations for expanding transit pass programs to ensure all eligible pupils and students statewide have access to a transit pass program.  (General Fund and PTA)

SUPPORT: (Verified 9/1/17)

Move LA (co-source)

Student Senate for California Community Colleges (co-source)

Transform (co-source)

350 Bay Area

Alliance for Community Transit

Amalgamated Transit Union

American Lung Association in California

Amigos de los Rios

Asian Pacific Environmental Network

Association for Commuter Transportation, Southern CA Chapter

Bike San Gabriel Valley

Breathe California

California Bicycle Coalition

California Environmental Justice Alliance

California Faculty Association

California Housing Partnership Corporation

California Pan-Ethnic Health Network

Cal Poly Pomona College of Environmental Design

California Releaf

California State University

California Teamsters Public Affairs Council

California Walks

Center for Community Action and Environmental Justice

ChangeLab Solutions

Children’s Defense Fund - California

City of South Pasadena

City of Thousand Oaks

Circulate San Diego

Climate Action Campaign

Climate Resolve

Coalition for Clean Air

Community Health Councils

Compton Unified School District

Courage Campaign

East LA Community Corporation

Faculty Assn. of CA Community Colleges

Fixing Angelenos Stuck in Traffic

Foothill Transit

Housing California

Investing in Place

Kings Canyon Unified School District

Leadership Counsel for Justice and Accountability

Long Beach City College

Los Angeles Alliance for a New Economy

Los Angeles Business Council

Los Angeles Community College District

Los Angeles County Bicycle Coalition

Los Angeles County Metro

LA Mas

Los Angeles Neighborhood Initiative

Los Angeles Unified School District

Los Angeles Walks

Mark Ridley-Thomas, LA County Supervisor

MetroLink

MidCity-CAN

Multicultural Communities for Mobility

National Association of Social Workers, CA Chapter

The Nature Conservancy-California Chapter

NRDC Urban Solutions

Oakland Unified School District

Pacoima Beautiful

Pasadena City College

Physicians for Social Responsibility - LA

PolicyLink

Prevention Institute

Public Advocates

Safe Routes to Schools

San Diego Bicycle Coalition

San Francisco Bay Area Rapid Transit District

San Jose – Evergreen Community College District

Santa Monica College

Southeast Asian Community Alliance

Sunflower Alliance

Teamsters Public Affairs Council

Trust for Public Land

University of Southern California Program for

Environmental & Regional Equity

Ventura County Transportation Commission

Voice for Progress Education Fund

278 Individuals

OPPOSITION: (Verified 9/1/17)

None received

ASSEMBLY FLOOR: 71-4, 5/31/17

AYES: Acosta, Aguiar-Curry, Arambula, Baker, Berman, Bigelow, Bloom, Bocanegra, Bonta, Burke, Caballero, Calderon, Cervantes, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Cunningham, Dababneh, Dahle, Daly, Flora, Fong, Frazier, Friedman, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gomez, Gonzalez Fletcher, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Mullin, Muratsuchi, Nazarian, O'Donnell, Quirk, Quirk-Silva, Reyes, Ridley-Thomas, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon

NOES: Travis Allen, Brough, Harper, Obernolte

NO VOTE RECORDED: Chen, Choi, Eggman, Melendez, Patterson

Prepared by:

9/2/17 16:40:25

**** END ****

SENATE COMMITTEE ON

Senator Ricardo Lara, Chair

2017 - 2018 Regular Session

AB 17 (Holden) - Transit Pass Pilot Program: free or reduced-fare transit passes

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

AB 17 would establish the Transit Pass Pilot Program, administered by the Department of Transportation (Caltrans), to provide funding to eligible participants for free or reduced-fare transit passes for specified pupils and students. The bill would appropriate $20 million from the Public Transportation Account (PTA) to Caltrans to implement the program, require a specified report to the Legislature by January 1, 2020, and sunset the program on January 1, 2022.

Fiscal Impact:

• One-time $20 million appropriation to Caltrans in 2017-18 to implement the Transit Pass Pilot Program. (PTA)
  
• Caltrans estimates administrative costs of approximately $500,000 annually and 4 PY of staff for four years. Initial costs would be incurred to develop and adopt guidelines, performance measures, and reporting requirements related to establishing the program, and ongoing costs would be related to administering the program, including any necessary monitoring, evaluations, and audits of grant recipients, as well as the report. (State Highway Account)
  
• Significant future cost pressures, in the millions annually beginning in 2022, based on the report recommendations for expanding transit pass programs to ensure all eligible pupils and students statewide have access to a transit pass program. (General Fund and PTA)

Background:

Existing law provides funding for public transportation through the Transportation Development Act, including the State Transit Assistance (STA) Program. STA funds, which are derived from the state sales tax on diesel fuel, are annually appropriated by the Legislature and allocated by the State Controller’s Office to transportation planning agencies; 50% of the fund allocations are based on population, and 50% are based on transit operator revenues from the prior fiscal year. STA funds are distributed to transit operators and can be used for transit operations or capital purposes.

Existing law requires that cap-and-trade funds deposited into the Greenhouse Gas Reduction Fund (GGRF) are continuously appropriated as follows: 25% for the high-speed rail project; 20% for affordable housing and sustainable communities grants; 10% for the Transit and Intercity Rail Capital Program (TIRCP); and 5% for the Low-Carbon Transit Operations Program (LCTOP). The remaining 40% is available for annual appropriation by the Legislature.

TIRCP is a competitive grant program that funds capital improvements to reduce GHG emissions and modernize California’s intercity, commuter, and urban rail and bus systems to achieve specific policy objectives, with a goal of providing at least 25% of available funding to projects that provide a direct benefit to disadvantaged communities. LCTOP provides operating and capital assistance for transit agencies to reduce GHG emissions and improve mobility, with a priority on serving disadvantaged communities. For agencies whose service area includes disadvantaged communities, at least 50% of the total monies received must be spent on projects that will benefit those areas. LCTOP funds are allocated to transit agencies pursuant to the State Transit Assistance statutory formula. Free or reduced-fare transit programs are an eligible expenditure under the LCTOP.

Proposed Law:

AB 17 would the Transit Pass Pilot Program and require Caltrans to administer the program to provide free or reduced-fare transit passes to pupils and students. Specifically, this bill would:

• Appropriate $20 million from the PTA to Caltrans to fund pilot testing of transit pass programs.
• Require the funds allocated for the Transit Pass Pilot Program to support new or expand existing transit pass programs that provide free or reduced-fare transit passes to any of the following:
  • Students attending public middle or high schools that are eligible for funding under the federal Elementary and Secondary Education Act of 1965.
  • Students attending a community college who qualify for a student fee waiver.
  • Students attending a California State University (CSU) or University of California (UC) who are Cal Grant or federal Pell Grant recipients.
• Specify that eligible participants are public agencies, including transit operators, school districts, community college districts, the CSU, or the UC.
• Require Caltrans to develop program guidelines that would ensure funds are used to expand eligibility or further reduce the cost of a transit pass, and to develop performance measures and reporting requirements to evaluate the effectiveness of the program. Development of the guidelines would be exempt from the requirements of the Administrative Procedure Act.
• Require Caltrans to award a minimum of $20,000 and a maximum of $5 million to a selected eligible participant, and specify that funds are available for expenditure for two years from the date of receipt.
• Require Caltrans to submit a report to the Legislature by January 1, 2020 on the outcomes of the program and status of transit pass programs statewide.
• Require the report to include the following:
  • The number of transit passes provided to pupils and students.
  • Whether the program increased ridership among pupils and students.
  • An assessment of how many transit operators and schools statewide have and do not have a transit pass program.
  • Recommendations to expand transit pass programs to ensure that all eligible pupils and students statewide have access to a transit pass program.
• Repeal the Transit Pass Pilot Program on January 1, 2022.

Related Legislation:

AB 2222 (Holden), which was held on this Committee’s Suspense File last year, would have established the Transit Pass Program to provide transit providers with funding to support new or existing transit pass programs that provide free or reduced-fare passes to low-income pupils and students, upon appropriation of funds for that purpose.

Staff Comments:

Currently, many transit agencies in California use existing transit funding to provide free or reduced fare transit passes to students for use on their systems. For example, the San Francisco Muni offers the “Free Muni for Youth” program that gives free access to Muni to low and moderate income youth, from five to 18 years old. Sacramento Regional Transit also offers students from age five to 18 a 50% discounted fare for monthly passes. The Los Angeles County Metropolitan Transportation Authority (Metro) has been offering reduced fares for both K-12 and college students since the early 1990s, with programs that provide a 54% discount on monthly passes to college students, and a 76% discount for the K-12 program. Most of the programs require proof of the students being registered in school, but the SF Muni program is based upon family income level. Additionally, some transit agencies have developed agreements directly with schools in their jurisdictions to partner and provide free or reduced passes to all students. For example, The University of California Los Angeles (UCLA) and the University of Southern California (USC) provide free passes for their students in partnership with Metro. In the Sacramento area, the University of California at Davis offers a variety of travel options at reduced rates for students and faculty.

According to SCO reports, the STA Program has received allocations ranging from $269 million to $294 million annually in PTA funds over the past several years. The $20 million appropriation of PTA funds for the Transit Pass Pilot Program in this bill will likely result in a commensurate reduction in available funding for the STA Program.

-- END --

SENATE COMMITTEE ON TRANSPORTATION AND HOUSING

Senator Jim Beall, Chair

2017 - 2018 Regular

Bill No: AB 17 Hearing Date: 7/11/2017

SUBJECT: Transit Pass Pilot Program: free or reduced-fare transit passes

DIGEST: This bill creates a transit pass pilot program administered by the State Department of Transportation (Caltrans), as specified.

ANALYSIS:

Existing law:

1. Creates the Public Transportation Account (PTA) within the State Transportation Fund (STF).
2. Provides that PTA funds are to be used only for transportation planning and mass transportation purposes, as specified.
3. Provides funding for public transportation through the Transportation Development Act (TDA), including State Transit Assistance (STA) which is derived from the statewide sales tax on diesel fuel. STA funds are appropriated by the Legislature and are allocated by formula with 50% being allocated to transit agencies according to population and 50% being allocated according to transit operator revenues from the prior fiscal year.
4. Authorizes Caltrans to administer various programs and allocates moneys for various public transportation purposes.

This bill:

1. Makes finding and declarations that student transit pass programs have been shown to increase transit ridership.
2. Creates the Transit Pass Pilot Program to be administered by Caltrans to support local transit pass programs that provide free or reduced fare transit passes to low income students from K-12 public schools, community colleges, the California State University (CSU) and the University of California (UC).
3. Defines low income students as:
   1. Pupils attending middle or high-schools that are eligible for funding under Title I of the Elementary and Secondary Education Act of 1965;
   2. Students attending community college who qualify for a waiver of student fees; and,
   3. Students attending a CSU or UC who receive an award under the Cal Grant Program or the federal Pell Grant Program.
4. Defines eligible participants as a public agency, including a transit operator, school district, community college district, the CSU, and the UC.
5. Requires Caltrans to develop guidelines that describe the application process and selection criteria for awarding program funds.
6. Requires Caltrans to develop performance measures and reporting requirements to evaluate program effectiveness.
7. Provides that dollars awarded to an eligible participant are to be available for expenditure for two years from the date upon receiving the funds.
8. Requires the award to an eligible participant be between a minimum of $20,000 and a maximum of $5 million, and that funds awarded are available for expenditure for two years.
9. Requires Caltrans to submit a report to the Legislature on the outcomes of the pilot program by January 1, 2020. The report must include the number of free or reduced fare transit passes provided to students; whether the program has increased transit ridership among students; an assessment of how many transit operators and schools have a transit pass program, and recommendations on how to expand transit pass programs to ensure that all eligible students have access.
10. Includes a sunset date of January 1, 2022.
11. Appropriates $20 million from the PTA to Caltrans for the pilot program.

COMMENTS:

1. Purpose. According to the author, “Assembly Bill 17 will increase public transportation ridership, ensure that students arrive at school safely, and will help hard working students and their families lessen the heavy burden of transportation costs. By implementing the state’s first statewide program designed to provide no or low cost transit passes to California students—California is transforming the way we approach our student’s public transportation needs.”
2. Discounted passes. Currently, many transit agencies throughout the state provide free or reduced-priced transit passes to youth, students, seniors, and military veterans contingent on the transit agency’s financial resources. For example, the Riverside Transit Agency provides discounted fares for youth, senior, disabled, and veteran transit users. Similarly, the San Mateo County Transit District provides discounted fares and passes for youth, seniors, and disabled riders. Moreover, while transit agencies will use a portion of their State Transit Assistance revenues to provide discounted passes and fares, other programs such as the Cap and Trade’s Low Carbon Transit Operations Program (LCTOP) provide additional funding that may be used to fund a greater number of discounted/free transit passes.
3. Pilot Program. The author and supporters of this bill assert that the existing amount of free/discounted passes and fares provided by transit agencies does not meet the existing demand by low income students. Furthermore, supporters note that the lack of available affordable transportation (including transit) is a significant barrier to low-income students’ school attendance and classroom success. This bill creates a pilot program — using $20 million provided from a balance in the PTA — that will assess that level of demand. Specifically, the pilot program will allow school districts and colleges to apply for a transit pass grant (administered by Caltrans) and work with local transit agencies to offer additional discounted/free passes to low-income students. Completely voluntary, school districts and colleges that have identified transportation as a significant barrier will have the opportunity to apply for grant funds and be able to track the actual usage. Guidelines and reporting requirements by grantees and Caltrans will ultimately identify the necessary data to determine whether the existing discounted programs administered by transit agencies are sufficient to meet the demand.

Assembly votes:

Floor: 71-4

Approps: 12-5

Trans: 11-3

Related Legislation:

AB 2222 (Holden, 2016) — similar to this bill, established a transit pass pilot program administered by Caltrans. This bill was held on suspense in the Senate Appropriations Committee.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

POSITIONS: (Communicated to the committee before noon on Wednesday,

July 5, 2017.)

SUPPORT:

Move LA (Sponsor)

Student Senate for California Community Colleges (Sponsor)

Transform (Sponsor)

350 Bay Area

Alliance for Community Transit

Amalgamated Transit Union

American Lung Association in California

Amigos de los Rios

Asian Pacific Environmental Network

Association for Commuter Transportation, Southern CA Chapter

Bike San Gabriel Valley

Breathe California

California Bicycle Coalition

California Environmental Justice Alliance

California Faculty Association

California Housing Partnership Corporation

California Pan-Ethnic Health Network

Cal Poly Pomona College of Environmental Design

California Releaf

California State University

California Teamsters Public Affairs Council

California Walks

Center for Community Action and Environmental Justice

ChangeLab Solutions

Children’s Defense Fund - California

City of South Pasadena

City of Thousand Oaks

Circulate San Diego

Climate Action Campaign

Climate Resolve

Coalition for Clean Air

Community Health Councils

Compton Unified School District

Courage Campaign

East LA Community Corporation

Faculty Assn. of CA Community Colleges

Fixing Angelenos Stuck in Traffic (FAST)

Foothill Transit

Housing California

Investing in Place

Kings Canyon Unified School District

Leadership Counsel for Justice and Accountability

Long Beach City College

Los Angeles Alliance for a New Economy (LAANE)

Los Angeles Business Council

Los Angeles Community College District

Los Angeles County Bicycle Coalition

Los Angeles County Metro

LA Mas

Los Angeles Neighborhood Initiative

Los Angeles Unified School District

Los Angeles Walks

Mark Ridley-Thomas, LA County Supervisor

MetroLink

MidCity-CAN

Multicultural Communities for Mobility

National Association of Social Workers, CA Chapter

The Nature Conservancy-California Chapter

NRDC Urban Solutions

Oakland Unified School District

Pacoima Beautiful

Pasadena City College

Physicians for Social Responsibility - LA

PolicyLink

Prevention Institute

Public Advocates

Safe Routes to Schools

San Diego Bicycle Coalition

San Francisco Bay Area Rapid Transit District

San Jose – Evergreen Community College District

Santa Monica College

Southeast Asian Community Alliance

Sunflower Alliance

Teamsters Public Affairs Council

Trust for Public Land

University of Southern California Program for

Environmental & Regional Equity

Ventura County Transportation Commission

Voice for Progress Education Fund

278 Individuals

OPPOSITION:

None received.

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 17

Author:(Holden)

As Amended Ver:May 30, 2017

Majority vote

SUMMARY: Authorizes a Transit Pilot Pass Program funded at $20 million to be administered by the Department of Transportation (Caltrans) to provide free or reduced fare transit passes to low income students. Specifically, this bill:

1. Makes finding and declarations that student transit pass programs have been shown to increase transit ridership.
2. Creates the Transit Pass Pilot Program to be administered by Caltrans to fund pilot testing of transit pass programs that provide free or reduced fare transit passes to low income students from K-12 public schools, community colleges, the California State University (CSU) and the University of California (UC).
3. Appropriates $20 million from the Public Transit Account (PTA) to Caltrans for the program.
4. Defines eligible students as pupils attending middle or high-schools that are eligible for funding under Title I of the Elementary and Secondary Education Act; students attending community college who qualify for a waiver of student fees; and students attending a CSU or UC who receive an award under the Cal Grant Program or the federal Pell Grant Program.
5. Defines eligible participants as a public agency, including a transit operator, school district, community college district, the CSU, and the UC.
6. Requires Caltrans to develop guidelines for the application process and selection criteria for awarding the funds, including ensuring the funds are expended to create new transit pass programs, or expand eligibility or further reduce the cost of a transit pass under existing programs.
7. Requires Caltrans to develop performance measures and reporting requirements to evaluate the effectiveness of the pilot program.
8. Requires the award to an eligible participant be between a minimum of $20,000 and a maximum of $5 million, and that funds awarded are available for expenditure for two years.
9. Requires Caltrans to submit a report to the Legislature on the outcomes of the pilot program by January 1, 2020. The report must include the number of free or reduced fare transit passes provided to students; whether the program has increased transit ridership among students; an assessment of how many transit operators and schools have a transit pass program, and recommendations on how to expand transit pass programs to ensure that all eligible students have access.
10. Includes a sunset date of January 1, 2022.

FISCAL EFFECT: According to the Assembly Appropriations Committee:

1. $20 million appropriation from the PTA to fund the pilot program.
2. One-time administrative costs in the hundreds of thousands of dollars for Caltrans to develop guidelines, prepare a report, and administer the program.

COMMENTS: This bill would establish a transit pass pilot program, funded at $20 million, to provide free or reduced cost transit passes to low income K-12, community college and university students throughout California. The program would be administered by Caltrans, who will develop guidelines for the grants. Transit operators, schools, community colleges, and CSU and UC would be eligible for the pilot program. The intent of the pilot program is to encourage the creation of new transit pass programs and to expand current transit pass programs, including further reducing fares for students.

Currently, many transit agencies in California provide free or reduced fare transit passes to students for use on their systems. For example, the San Francisco (SF) Muni offers the Free Muni for Youth program that gives free access to Muni to low and moderate income youth, from 5 to 18 years old. Sacramento Regional Transit also offers students from age 5 to 18 a 50% discounted fare for monthly passes. The Los Angeles County Metropolitan Transportation Authority (Metro) has been offering reduced fares for both K-12 and college students since the early 1990s. Specifically, Metro has programs for both college students, with a 54% discount on a monthly pass, and a 76% discount for the K-12 program. Most of the existing programs require proof of the students being registered in school; however the SF Muni program is based upon family income level. Additionally, transit agencies have developed agreements directly with schools in their jurisdictions to partner and provide free or reduced passes to all students. The University of California Los Angeles (UCLA) and the University of Southern California (USC) provide free passes for their students in partnership with Metro. Most transit agencies subsidize the free or reduced fare programs as part of their existing operating budget, including funding from the State Transit Assistance Program (STA), or utilize funding from other local or private sources. Additionally, the current Low Carbon Transit Operations Program (LCTOP), funded by the state’s cap and trade program revenues, allows transit agencies to use funds for transit passes.

According to the author, this bill would provide hard-working, budget conscious students with low-cost transit passes that will enable them to commute to and from their destination, while providing local transportation agencies with statistically proven source of new riders. A study conducted by UCLA found that providing free or low-cost access to public transit significantly reduced the demand for student parking at college campuses and that over half of college students polled favored increasing student fees to help fund low-cost transit programs.

Committee concerns: There is a concern that the pilot program created by this bill is duplicative of existing programs. As noted above, many of California transit agencies and colleges and universities are already operating successful reduced fare transit pass programs. These programs are eligible for funding from a variety of state and local sources. Further, this bill only allows for specific students to participate in the pilot program, and therefore may be difficult to implement by creating bifurcated programs with different eligibilities within both transit agencies and schools.

The recent passage of SB 1 (Beall), Chapter 5, Statues of 2017, will provide a roughly 130% increase in STA funding for transit operators. Additionally, stabilizing the state’s cap and trade program may help provide more funding for LCTOP. There may be opportunities within these existing programs to encourage and incentivize creating or expanding transit pass programs.

Please see the policy committee analysis for full discussion of this bill.

Analysis Prepared by: Melissa White / TRANS. / (916) 319-2093 FN: 0000868

Date of Hearing: May 3, 2017

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 17

Author:(Holden) – As Introduced Ver:December 5, 2016

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill creates a transit pass program administered by the Department of Transportation (Caltrans), upon appropriation, to provide free or reduced cost transit passes to specified low income students at public K-12 schools, community colleges, the California State University and the University of California.

FISCAL EFFECT:

1. Cost pressure, likely from GF funds, in the millions of dollars to provide funding for the program created by this bill. For example, providing a $50 monthly transit pass to 10,000 students would cost $6 million annually. Funding for the program would likely need to come from the GF because all existing transportation funds are allocated to other existing programs.
2. One-time administrative costs in the hundreds of thousands of dollars for Caltrans to develop guidelines for the program.
3. Ongoing administrative costs likely in the hundreds of thousands of dollars to Caltrans and the State Controller’s Office (SCO) to receive and review applications and reports, and to distribute funding.

COMMENTS:

1. Background. Under existing law, the state has several programs that provide funding to support the operations of transit agencies. First, the State Transit Assistance (STA) program provides funding from the state sales tax on diesel fuel that can be used for various transit purposes, as determined by the recipient of the funds. Second, the Low Carbon Transit Operations Program (LCTOP) receives five percent of cap-and-trade auction revenues in the Greenhouse Gas Reduction Fund (GGRF) and requires that those funds be distributed to transit operators for transit activities that reduce greenhouse gas emissions.
2. Purpose. According to the author, “AB 17 will increase public transportation ridership, ensure that students arrive at school safely, and will help hard working students and their families lessen the heavy burden of transportation costs. Using new state revenues to create the Transit Pass Program—California’s first statewide program designed to provide no or low cost transit passes to California students—California is transforming the way we approach our student’s public transportation needs.”
3. Location of Unmet Needs is Unclear. While some transit agencies in California already provide free or reduced fare transit passes to students for use on their systems, there are some, or possibly many, areas of the state where such programs do not exist. The author may wish to consider ways to ensure that the Legislature has the information necessary to craft a comprehensive and effective program. In addition, more information on the need for free or reduced fare transit passes for students would help ensure that a sufficient level of funding is provided to meet the goals of the bill.

Analysis Prepared by: Jessica Peters / APPR. / (916) 319-2081

Date of Hearing: April 24, 2017

ASSEMBLY COMMITTEE ON TRANSPORTATION

Jim Frazier, Chair

ABPCA Bill Id:AB 17 (

Author:Holden) – As Introduced Ver:December 5, 2016

SUBJECT: Transit Pass Program: free or reduced-fare transit passes

SUMMARY: Authorizes a Transit Pass Program, funding upon appropriation by the Legislature, to be administered by the Department of Transportation (Caltrans) to provide free or reduced cost transit passes to students. Specifically, this bill:

1. Makes finding and declarations that increasing the use of public transportation is a vital component to reducing greenhouse gas emissions in California, and student transit pass programs have been shown to increase transit ridership.
2. Creates the Transit Pass Program to be administered by Caltrans to support local transit pass programs that provide free or reduced fare transit passes to low income students from K-12 public schools, community colleges, the California State University (CSU) and the University of California (UC).
3. Requires moneys available for the program, upon appropriation by the Legislature, to be allocated by the State Controller (SCO) to support the program.
4. Defines low income students as:
   1. Pupils attending middle or high-schools that are eligible for funding under Title I of the No Child Left Behind Act;
   2. Students attending community college who qualify for a waiver of student fees; and,
   3. Students attending a CSU or UC who receive an award under the Cal Grant Program or the federal Pell Grant Program.
5. Defines eligible participants as a public agency, including a transit operator, school district, community college district, the CSU, and the UC.
6. Defines eligible transit provider as a transportation agency, transportation planning agency, or a county transportation commission that receives funds from State Transit Assistance (STA).
7. Requires Caltrans to develop guidelines and reporting requirements for the program, including ensuring that existing transit pass programs expend funds to expand eligibility or further reduce the cost of the transit passes, and developing performance measures and reporting requirements to evaluate the effectiveness of the program.
8. Requires transit agencies and eligible participants to enter into agreements to ensure transit passes are distributed to pupils and students.
9. Allows funds to be expended to support new or existing transit pass programs.
10. Allows transit agencies to give priority to applicants with an existing transit pass program provided they can demonstrate that the funds will further reduce the cost of the transit pass or expand eligibility.
11. Requires that free or reduced fare transit passes offered under the program are counted at full retail value for the purposes of the transit operator’s eligibility for STA funding.
12. Requires that each eligible transit agency receive a minimum allocation of $20,000 and the remainder of the funds be distributed based on existing STA formulas.
13. Requires that any funds that are not utilized by a transit agency in a fiscal year be added to the allocation for the program for the next fiscal year.

EXISTING LAW:

1. Requires ARB, pursuant to AB 32 (Núñez), Chapter 488, Statutes of 2006, to develop a plan of how to reduce statewide greenhouse gas emissions to 1990 levels by 2020. Under AB 32, ARB is authorized to include the use of market-based mechanisms to comply with these regulations (cap and trade).
2. Establishes the greenhouse gas reduction fund (GGRF) in the State Treasury and requires all money collected pursuant to cap and trade, with limited exceptions, be deposited into the fund and makes the GGRF funds available for appropriation by the Legislature.
3. Established the Affordable Housing and Sustainable Communities, the Low Carbon Transportation, and the Low Carbon Transit Operations (LCTOP) programs and continuously appropriates 60% of GGRF fund proceeds, beginning in the 2015-16 fiscal year, for transit, affordable housing and sustainable communities programs, and high-speed rail.
4. Requires, pursuant to SB 535 (de León), Chapter 830, Statutes of 2012, that a minimum of 25% of the moneys available in GGRF be used to benefit disadvantaged communities.
5. Provides funding for public transportation through the Transportation Development Act (TDA), including STA which is derived from the statewide sales tax on diesel fuel. STA funds are appropriated by the Legislature and are allocated by formula with 50% being allocated according to population and 50% being allocated according to transit operator revenues from the prior fiscal year.

FISCAL EFFECT: Unknown

COMMENTS: This bill would establish a transit pass program to provide free or reduced cost transit passes to low income K-12, community college and university students throughout California. The program would be administered by Caltrans and any funding appropriated for the program would be distributed by the Controller according to existing transit formulas. The program structure mirrors the existing LCTOP which provides funds from the GGRF for the expansion of transit services. Transit agencies, schools, community colleges, and CSU and UC would be eligible for the funding. The intent of the program is to encourage the creation of transit pass programs and to expand current transit pass programs, including further reducing fares for students.

Currently, many transit agencies in California provide free or reduced fare transit passes to students for use on their systems. For example, the San Francisco (SF) Muni offers the Free Muni for Youth program that gives free access to Muni to low and moderate income youth, from 5 to 18 years old. Sacramento Regional Transit also offers students from age 5 to 18 a 50% discounted fare for monthly passes. The Los Angeles County Metropolitan Transportation Authority (Metro) has been offering reduced fares for both K-12 and college students since the early 1990s. Specifically, Metro has programs for both college students, with a 54% discount on a monthly pass, and a 76% discount for the K-12 program. Most of the existing programs require proof of the students being registered in school; however the SF Muni program is based upon family income level. Additionally, transit agencies have developed agreements directly with schools in their jurisdictions to partner and provide free or reduced passes to all students. The University of California Los Angeles (UCLA) and the University of Southern California (USC) provide free passes for their students in partnership with Metro. In the Sacramento area, the University of California at Davis offers a variety of travel options at reduced rates for students and faculty through their goClub.

Most transit agencies subsidize the free or reduced fare programs as part of their existing operating budget or utilize funding from other local or private sources. The current LCTOP, funded from the GGRF, allows transit agencies to use funds for transit passes. For example, in 2014-15, the Mendocino Transit Authority used LCTOP funds to subsidize bus fares for Mendocino college students.

According to the author, this bill would provide hard-working, budget conscious students with low-cost transit passes that will enable them to commute to and from their destination, while providing local transportation agencies with statistically proven source of new riders. A study conducted by UCLA found that high-school and college students represent one of the largest segments of “drive alone” automobile users in California. The study found that providing free or low-cost access to public transit significantly reduced the demand for student parking at college campuses and that over half of college students polled favored increasing student fees to help fund low-cost transit programs.

In writing in support of this bill, MoveLA said that if riding transit is made easy and affordable for students to take to school and to work they are likely to begin making decisions about where to live and work based on the proximity of transit, which in turn helps promote the land use and development patterns that will support even greater transit use and greenhouse gas reductions.

The City of Thousand Oaks note in support of the bill that 20% of the Thousand Oaks Transit riders are students, and that free or reduced costs transit passes would support many low-income families and working parents who either do not have a car or are restricted by work schedules to deliver or pick up their children to and from school. Further they state that many middle school and high school students would benefit by the ability to commute to the library, parks, or extra-curricular activities outside of school hours.

Committee concerns: As the state and regions continue to work toward the goal of reducing greenhouse gas emissions, as well as cutting other forms of air pollution, as set forth in AB 32, increasing the mode shift from single occupant car trips to public transportation is critical for success. Encouraging people to learn about and feel confident using public transportation at a young age will support this effort.

However, there is a concern that the program created by this bill is duplicative of existing programs. As noted above, many of California transit agencies and colleges and universities are already operating successful reduced fare transit pass programs. These programs are eligible for funding from a variety of state and local sources. Specifically, funding transit operators receive through the STA program for operations and the LCTOP program funded by the GGRF fund can and are being used to fund existing programs. Additionally, the program created by this bill does not have any funding source; therefore, it is unclear how or when the program would be implemented.

Further, this bill only allows for low income students to participate in the program. If funding were appropriated by the Legislature for the program, it may be difficult to implement by creating bifurcated programs with different eligibilities within both transit agencies and schools. Although this may not be an issue for large transit operators like Metro or BART, it could be difficult for some.

The recent passage of SB 1 (Beall), will provide a roughly 130% increase in STA funding for transit operators. Additionally, stabilizing the state’s cap and trade program may help provide more funding for LCTOP. There may be opportunities within these existing programs to encourage and incentivize creating or expanding transit pass programs, without the need to establish an entirely new, redundant program at Caltrans.

Previous Legislation: AB 17 is a reintroduction of AB 2222 (Holden) of 2016, which was held on the Senate Appropriations Committee Suspense File. The final version of AB 2222 was amended from the version that was approved by this committee. Specifically, AB 2222 no longer contained a source of funding, $50 million per year from the GGRF, and new requirements were added for the program to only be available for low-income students.

AB 1555 (Gomez) of 2016 would have appropriated $800 million from the GGRF to fund a variety of programs including $10 million for active transportation and transit pass investments. AB 1555 was held in the Assembly Committee on Budget and Fiscal Review.

SB 951 (McGuire) of 2016 would have created and appropriated $3 million annually from the GGRF through 2020-21 for the Golden State Patriot Passes pilot program to provide veterans with free access to transit. SB 951 was held on Senate Appropriations Committee Suspense File.

SB 862 (Committee on Budget and Fiscal Review), Chapter 36, Statues of 2014 created and funded the Affordable Housing and Sustainable Communities, the Low Carbon Transportation, and the Low Carbon Transit Operations programs.

AB 1002 (Bloom) of 2013 would have increased the tax on vehicle registrations by $6. 40% of the revenues would have been appropriated to transportation commissions and transit operators to support transit operations and maintain and expand reduced fare programs, including transit passes for students, low-income youth, seniors, and persons with disabilities. AB 1002 was referred to the Assembly Local Government Committee but was returned to the Chief Clerk without being heard.

REGISTERED SUPPORT / OPPOSITION:

Support

Move LA (Sponsor)

Student Senate for California Community Colleges (Sponsor)

Transform (Sponsor)

Amalgamated Transit Union

California Bicycle Coalition

California Teamsters Public Affairs Council

City of Thousand Oaks

Faculty Association of California Community Colleges

National Association of Social Workers, California Chapter

San Francisco Bay Area Rapid Transit District

Opposition

None on file

Analysis Prepared by: Melissa White / TRANS. /