AB 1969: Transportation funds: transportation planning agencies: transit operators: fare revenue ratios: exemptions.

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

This bill would authorize a transportation planning agency to grant an exemption, for up to 5 years, to an operator that fails to maintain the generally established ratio described above to request an exemption from the California Transportation Commission, and would require the operator to be granted a temporary exemption while the commission reviews the request. The bill would authorize the commission to grant the operators request and allow the operator to instead maintain a lower ratio, which would be set by the commission. applicable fare-revenue-to-cost ratio if, based on that agencys determination, an exemption is appropriate, as specified. The bill would require the commission agency to consider specified factors in determining whether to grant the exemption request. exemption. The bill would authorize an operator granted a temporary exemption, or an exemption from the commission, to receive be allocated the revenues it would have qualified for had it maintained the ratio described above. applicable ratio.

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

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

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

This bill would provide that it is the intent of the Legislature to enact legislation relating to the ratio of fare revenues to operating costs under the Transportation Development Act.