TO: Board of Supervisors
FROM: Ryan J. Alsop, County Executive Officer
REPORT BY: Andrew M. Mize, Legislative & Policy Analyst
SUBJECT: California Senate Bill 1031 - Request for Support
RECOMMENDATION
title
Approve and authorize the transmission of a position letter expressing support for California Senate Bill 1031, by Senators Scott Wiener and Aisha Wahab. (No Fiscal Impact)
[UNANIMOUS VOTE REQUIRED]
body
BACKGROUND
California Senate Bill 1031 (SB 1031), is a legislative proposal regarding planning for potential consolidation of the Bay Area’s 27 regional transit agencies into the Metropolitan Transportation Commission (MTC) to provide transit riders a more seamless experience, permits MTC and the Bay Area Air Quality Management District (BAAQMD) to propose a ballot measure that would require certain employers to purchase regional transit passes for its employees, and provides statutory authorization for MTC to propose ballot measures to fund infrastructure improvements.
The stated purpose of the bill is to achieve the Legislature’s vision of a world-class, reliable, affordable, efficient, and connected transportation network through a public transit network that offers safe, clean, frequent, accessible, easy-to-navigate, and reliable service, well-maintained local roads, and safe, competitive, and convenient alternatives to driving.
The bill requires MTC to oversee the completion of an assessment by either the University of California, Berkeley Labor Center, or the University of California, Los Angeles Labor Center of the existing state of Bay Area public transit and challenges associated with any form of consolidation. The institute completing the study must report its findings to the Legislature on or before January 1, 2027.
The bill permits MTC and BAAQMD to jointly adopt a commute benefit ordinance, either directly or through a qualified voter initiative applicable to employers for which an average of fifty or more employees per week perform twenty hours or more of work per week for compensation within an area defined by the ordinance. The ordinance would require covered employers to offer such employees one of the following choices: (1) a pretax option allowing employees to elect to exclude from taxable wages the cost of transit passes or vanpool charges; (2) a monthly subsidy to the employee of either the monthly cost of commuting via public transit or by vanpool or seventy-five dollars, whichever is lower; (3) transportation furnished by the employer at no cost or at low cost to the employee; (4) a regional transit pass provided to the employee by the employer.
The bill next sets forth compliance requirements for receipt of public funds and exclusions to the scope of MTC’s authority and the categories of tax that may be put to the voters for approval: sales tax, regional payroll tax, parcel tax, and regional vehicle registration surcharges are all authorized. MTC has the discretion to use one or more of these mechanisms to raise funding to meet the purposes set forth in the bill. The April 16, 2024, amendment to the bill includes a seventy percent return to source provision for any revenues generated by the measures authorized by this bill. The bill also sets forth spending levels for specified purposes for the tax revenues: forty-five percent of revenues for investments that support transit transformation; twenty-five percent for investments that support safe streets; fifteen percent for investments that support closing gaps and relieving bottlenecks in the existing transportation network in a climate-neutral manner; and one percent of revenue available after paying state and local administrative costs for MTC administrative costs.
The Napa Valley Transportation Authority (NVTA) in April authored a letter in support of SB 1031. There are substantial advantages to the County, its residents, and its visitors to aligning with NVTA in taking a support position on this bill. Unlike Sonoma and Marin Counties, NVTA is the sole transportation agency serving Napa County, which makes consolidation simpler than counties where multiple transportation agencies may face challenging questions about the proper method of consolidation. With the addition of the return to source provision, the County will see a substantial influx of funds resulting from any voter-approved tax, funding needed improvements to the County’s public transit infrastructure with local funds. Finally, the consolidation planning language in the April 16, 2024, amendment to SB1031 provides substantially increased latitude to the transportation institute tasked with the study as to the points of focus and scope of inquiry. This adds needed balance and ensures that the transportation institute can reach conclusions that will work best for the Bay Area transportation agencies and the communities they serve.
FISCAL & STRATEGIC PLAN IMPACT
|
Is there a Fiscal Impact? |
No |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California
Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.