CONSENT  

Bill No: AB 631

Author: McCarty (D) and Cooley (D)

Introduced: 2/15/19

Vote: 21

SENATE TRANSPORTATION COMMITTEE: 13-0, 6/25/19

AYES: Beall, Bates, Dahle, Dodd, Galgiani, McGuire, Morrell, Roth, Rubio, Skinner, Stone, Umberg, Wieckowski

ASSEMBLY FLOOR: 76-0, 4/22/19 - See last page for vote

SUBJECT: Sacramento Regional Transit District: voting threshold

SOURCE: Sacramento Regional Transit District

DIGEST:

This bill reduces, from 80% to 67%, the nonweighted voting threshold of the Sacramento Regional Transit District (SacRT) board in order to authorize the detachment of territory from SacRT.

ANALYSIS:

Existing law:

1. Establishes the SacRT Act, which governs the powers and functions of SacRT; establishes SacRT's territory, board of directors, and planning duties; and, authorizes SacRT to issue general obligation bonds and revenue bonds, as specified.
2. Specifies that a city or county that is not annexed to SacRT may become a participating entity that is entitled to make at least one appointment to the board, if they enter into an agreement with SacRT to pay their proportional share of costs to provide rail or other district-wide transit services to the entity, and SacRT agrees to maintain a specified level of service and is not obligated to provide transit services along any particular route or location.
3. Specifies that territory within SacRT may be detached from SacRT by a supermajority vote of the board of directors, which shall be at least 80% of the nonweighted vote of the existing SacRT board, and by a majority vote of the governing body of the territory proposed to be detached.
4. Specifies that the detached territory shall not be relieved from liability for taxation for the payment of any bonded indebtedness existing at the time of detachment, and that all other pending legal and financial obligations have been resolved by mutual agreement.

This bill reduces the SacRT’s board supermajority vote requirement from 80% to 67% for purposes of detaching a territory from the district, as specified.

Comments

1. Author’s statement. According to the author, “The Sacramento Regional Transit District (SacRT) is the Capitol region’s largest public transit provider. It provides transit options across the region, including to those who have no other transportation options. AB 631 will allow SacRT to strengthen partnership across the region and create a more robust transit service to all.”
2. SacRT. SacRT commenced transit service in 1973 in Sacramento County. SacRT currently operates over 70 bus routes (fixed-route, microtransit and dial-a-ride), 43 miles of light rail, and ADA paratransit services with 3,100 bus stops and 52 light rail stations all within a 400 square-mile service area throughout Sacramento County. SacRT employs a work force of approximately 941 people, 77 percent of whom are dedicated to operations and maintenance of the bus and light rail systems.
3. Annexation agreements. SacRT is currently in the process of executing annexation agreements with a number of cities including Citrus Heights, Elk Grove, and Folsom to become full participating members of SacRT. Several years ago, the annexation and detachment process for SacRT was overhauled by AB 738 (Gaines, Chapter 335, Statutes of 2015). The current process of a majority vote of the board of the agency seeking detachment and 80% of a nonweighted SacRT board vote was created by that bill. To date, the detachment provisions enacted in AB 738 have not been exercised. However, at the time AB 738 was enacted, the annexation agreements between SacRT and the three cities had minimal traction. With three additional cities now becoming participating members, this bill aims to provide some flexibility to participating members (including the three abovementioned cities) and SacRT in the event that a participating member requests being removed from SacRT’s service area.

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

SUPPORT: (Verified 6/26/19)

Sacramento Regional Transit District (source)

City of Citrus Heights

OPPOSITION: (Verified 6/26/19)

None received

ASSEMBLY FLOOR: 76-0, 4/22/19

AYES: Aguiar-Curry, Bauer-Kahan, Berman, Bigelow, Boerner Horvath, Bonta, Burke, Calderon, Carrillo, Cervantes, Chau, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dahle, Daly, Diep, Eggman, Flora, Fong, Frazier, Friedman, Gabriel, Gallagher, Cristina Garcia, Gipson, Gloria, Gonzalez, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Petrie-Norris, Quirk, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Salas, Santiago, Smith, Mark Stone, Ting, Voepel, Waldron, Weber, Wicks, Wood, Rendon

NO VOTE RECORDED: Arambula, Bloom, Brough, Eduardo Garcia

Prepared by: Manny Leon / TRANS. / (916) 651-4121

6/26/19 15:34:26

**** END ****

SENATE COMMITTEE ON TRANSPORTATION

Senator Jim Beall, Chair

2019 - 2020 Regular

Bill No: AB 631 Hearing Date: 6/25/19

SUBJECT: Sacramento Regional Transit District: voting threshold

DIGEST: This bill reduces, from 80% to 67%, the nonweighted voting threshold of the Sacramento Regional Transit District (SacRT) board in order to authorize the detachment of territory from SacRT.

ANALYSIS:

Existing law:

1. Establishes the SacRT Act, which governs the powers and functions of SacRT; establishes SacRT's territory, board of directors, and planning duties; and, authorizes SacRT to issue general obligation bonds and revenue bonds, as specified.
2. Specifies that a city or county that is not annexed to SacRT may become a participating entity that is entitled to make at least one appointment to the Board, if they enter into an agreement with SacRT to pay their proportional share of costs to provide rail or other district-wide transit services to the entity, and SacRT agrees to maintain a specified level of service and is not obligated to provide transit services along any particular route or location.
3. Specifies that territory within SacRT may be detached from SacRT by a supermajority vote of the board of directors, which shall be at least 80% of the nonweighted vote of the existing SacRT board, and by a majority vote of the governing body of the territory proposed to be detached.
4. Specifies that the detached territory shall not be relieved from liability for taxation for the payment of any bonded indebtedness existing at the time of detachment, and that all other pending legal and financial obligations have been resolved by mutual agreement.

This bill reduce the SacRT’s board supermajority vote requirement from 80% to 67% for purposes of detaching a territory from the district, as specified.

COMMENTS:

1. Author’s statement. According to the author, “The Sacramento Regional Transit District (SacRT) is the Capitol region’s largest public transit provider. It provides transit options across the region, including to those who have no other transportation options. AB 631 will allow SacRT to strengthen partnership across the region and create a more robust transit service to all.”
2. SacRT. SacRT commenced transit service in 1973 in Sacramento County. SacRT currently operates over 70 bus routes (fixed-route, microtransit and dial-a-ride), 43 miles of light rail, and ADA paratransit services with 3,100 bus stops and 52 light rail stations all within a 400 square-mile service area throughout Sacramento County. SacRT employs a work force of approximately 941 people, 77 percent of whom are dedicated to operations and maintenance of the bus and light rail systems.
3. Annexation Agreements. SacRT is currently in the process of executing annexation agreements with a number of cities including Citrus Heights, Elk Grove, and Folsom to become full participating members of SacRT. Several years ago, the annexation and detachment process for SacRT was overhauled by AB 738 (Gaines), Chapter 335, Statutes of 2015. The current process of a majority vote of the board of the agency seeking detachment and 80% of a nonweighted SacRT board vote was created by that bill. To date, the detachment provisions enacted in AB 738 have not been exercised. However, at the time AB 738 was enacted, the annexation agreements between SacRT and the three cities had minimal traction. With three additional cities now becoming participating members, this bill aims to provide some flexibility to participating members (including the three abovementioned cities) and SacRT in the event that a participating member requests being removed from SacRT’s service area.

RELATED LEGISLATION

AB 738 (Gaines, Chapter 335, Statutes of 2015) — Made changes to SacRT’s boundaries and establishes a new process for the annexation and detachment of territory.

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

Assembly Votes

Floor: 76-0

LGov: 8-0

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

June 19, 2019.)

SUPPORT:

City of Citrus Heights

SacRT (Sponsor)

OPPOSITION:

None received.

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 631

Author:(McCarty and Cooley)

As Introduced Ver:February 15, 2019

Majority vote

SUMMARY:

Changes the voting threshold for the detachment of territory from the Sacramento Regional Transit District (SacRT).

Major Provisions

Reduces, from 80% to 67%, the nonweighted voting threshold of the SacRT board in order to authorize the detachment of territory from SacRT.

COMMENTS:

Sacramento Regional Transit District. SacRT serves citizens in the Cities of Sacramento, Citrus Heights, Elk Grove, Folsom, and Rancho Cordova, by operating 70 bus routes and 43 miles of light rail across a 418 square-mile service area, among other services. SacRT is governed by an 11-member Board of Directors comprised of ten directors that are appointed by the annexed jurisdictions, which are "member entities," including Sacramento County, and the Cities of Sacramento, Citrus Heights, Folsom, and Rancho Cordova. Additionally, one director is appointed by a non-annexed jurisdiction, Elk Grove, which is a "participating entity".

Policy Consideration. The annexation and detachment process for SacRT was overhauled by AB 738 (Beth Gaines), Chapter 335, Statutes of 2015. The current process of a majority vote of the board of the agency seeking detachment and 80% of a nonweighted SacRT board vote was created by that bill. No vote for detachment has taken place with the 80% threshold. The Committee may wish to consider, that without an example showing the 80% threshold is too high, if this bill is premature.

According to the Author:

According to the author, "The Sacramento Regional Transit District (SacRT) is the Capitol region's largest public transit provider. It provides transit options across the region, including to those who have no other transportation options. AB 631 will allow SacRT to strengthen partnership across the region and create a more robust transit service to all."

Arguments in Support:

The sponsors argue that, "SacRT recently completed the annexation of transit service for the cities of Citrus Heights and Folsom. This will allow those cities to become full members of SacRT and transition their existing transit services to be operated by SacRT while offering them a greater voice, with an increased vote share, on the SacRT board. Collaborating together will make the region much more unified and competitive for federal and state grant funding, which could elevate public transportation for Sacramento region to the next level. In support for the regional initiative, SacRT is requesting this small but significant change to its current enabling act. This bill contains modest language seeking to lower the threshold for detachment from SacRT. The passage of AB 631 would help provide improved transit service for our community to meet the region's transportation needs by allowing participating entities of SacRT to become member entities."

Arguments in Opposition:

None on file.

FISCAL COMMENTS:

None

VOTES:

ASM LOCAL GOVERNMENT: 8-0-0

YES: Aguiar-Curry, Lackey, Bloom, Boerner Horvath, Ramos, Luz Rivas, Robert Rivas, Voepel

UPDATED:

VERSION: February 15, 2019

CONSULTANT: Jimmy MacDonald / L. GOV. / (916) 319-3958 FN: 0000113

Date of Hearing: April 3, 2019

ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT

Cecilia Aguiar-Curry, Chair

ABPCA Bill Id:AB 631 (

Author:McCarty & Cooley) – As Introduced Ver:February 15, 2019

SUBJECT: Sacramento Regional Transit District: voting threshold.

SUMMARY: Reduces, from 80% to 67%, the nonweighted voting threshold of the Sacramento Regional Transit District (SacRT) board in order to authorize the detachment of territory from SacRT.

EXISTING LAW:

1. Establishes the SacRT Act, which governs the powers and functions of SacRT; establishes SacRT's territory, board of directors, and planning duties; and, authorizes SacRT to issue general obligation bonds and revenue bonds, as specified.
2. Specifies that a city or county that is not annexed to SacRT may become a participating entity that is entitled to make at least one appointment to the Board, if they enter into an agreement with SacRT to pay their proportional share of costs to provide rail or other district-wide transit services to the entity, and SacRT agrees to maintain a specified level of service and is not obligated to provide transit services along any particular route or location.
3. Specifies that territory within SacRT may be detached from SacRT by a supermajority vote of the board of directors, which shall be at least 80% of the nonweighted vote of the existing SacRT board, and by a majority vote of the governing body of the territory proposed to be detached.
4. Specifies that the detached territory shall not be relieved from liability for taxation for the payment of any bonded indebtedness existing at the time of detachment, and that all other pending legal and financial obligations have been resolved by mutual agreement.

FISCAL EFFECT: None

COMMENTS:

1. Sacramento Regional Transit District. SacRT serves citizens in the Cities of Sacramento, Citrus Heights, Elk Grove, Folsom, and Rancho Cordova, by operating 70 bus routes and
   43 miles of light rail across a 418 square-mile service area, among other services. SacRT is governed by an 11-member Board of Directors comprised of ten directors that are appointed by the annexed jurisdictions, which are "member entities," including Sacramento County, and the Cities of Sacramento, Citrus Heights, Folsom, and Rancho Cordova. Additionally, one director is appointed by a non-annexed jurisdiction, Elk Grove, which is a "participating entity”.
2. Bill Summary and Author’s Statement. This measure reduces the nonweighted voting threshold of the SacRT board in order to authorize the detachment of territory from SacRT from 80% to 67%. This bill maintains that the governing board of the area proposed to be detached must first, by majority vote, approve the detachment, and that the agency detaching from SacRT continues to be liable for taxes, for the payment of bonded indebtedness, and all other pending legal and financial obligations at the time of detachment. This bill is sponsored by SacRT.

According to the author, “The Sacramento Regional Transit District (SacRT) is the Capitol region’s largest public transit provider. It provides transit options across the region, including to those who have no other transportation options. AB 631 will allow SacRT to strengthen partnership across the region and create a more robust transit service to all.”

1. Policy Consideration. The annexation and detachment process for SacRT was overhauled by AB 738 (Gaines), Chapter 335, Statutes of 2015. The current process of a majority vote of the board of the agency seeking detachment and 80% of a nonweighted SacRT board vote was created by that bill. No vote for detachment has taken place with the 80% threshold. The Committee may wish to consider, that without an example showing the 80% threshold is too high, if this bill is premature.
2. Arguments in Support. The sponsors argue that, “SacRT recently completed the annexation of transit service for the cities of Citrus Heights and Folsom. This will allow those cities to become full members of SacRT and transition their existing transit services to be operated by SacRT while offering them a greater voice, with an increased vote share, on the SacRT board. Collaborating together will make the region much more unified and competitive for federal and state grant funding, which could elevate public transportation for Sacramento region to the next level. In support for the regional initiative, SacRT is requesting this small but significant change to its current enabling act. This bill contains modest language seeking to lower the threshold for detachment from SacRT. The passage
   of AB 631 would help provide improved transit service for our community to meet the region’s transportation needs by allowing participating entities of SacRT to become member entities.”
3. Arguments in Opposition. None on file.

REGISTERED SUPPORT / OPPOSITION:

Support

SacRT [SPONSOR]

Opposition

None on file

Analysis Prepared by: Jimmy MacDonald / L. GOV. / (916) 319-3958