BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 739
                                                                  Page  1

          SENATE THIRD READING
          SB 739 (Chesbro)
          As Amended June 28, 2001
          2/3 vote.  Urgency 

           SENATE VOTE  :Vote not relevant 
           
           BUDGET                                                          
                    (vote not relevant)
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           SUMMARY  :  Establishes a new Rural Transit System Grant (RTSG)  
          Program to be administered by the State Department of  
          Transportation (Caltrans) under guidelines adopted by the  
          California Transportation Commission (Commission).   
          Specifically,  this bill  :

          1)Requires Caltrans to prepare program guidelines by August 31,  
            2001, and requires the Commission to review and adopt  
            guidelines by October 15, 2001.

          1)Requires the guidelines to provide grants to recipients on a  
            competitive basis for projects serving primarily rural areas.

          1)Limits the use of the grants to purchase, construct and  
            refurbish transit facilities, vehicles and equipment and  
            purchase transit system rights-of-way.

          1)Establishes grant criteria.

          1)Limits eligible claimants to Transportation Development Act  
            (TDA) claimants (i.e., operators, cities, counties and  
            consolidated transportation service agencies).

          1)Imposes a local grant matching requirement, equal to the  
            percentage of TDA funds not used for transit, bike and  
            pedestrian purposes (essentially, the streets and roads  
            expenditure percentage), but at least 10% and not more than a  
            50% match.  However, no grant may be awarded to an applicant  
            in a city, county or city and county, in which funds that may  
            be claimed by the applicant under the Mills-Alquist-Deddeh Act  
            are expended for street and road purposes in the same year as  
            the year in which the application for a grant is made.









                                                                  SB 739
                                                                  Page  2

          1)Requires a local funding maintenance of effort and  
            demonstration of financial ability to sustain participation.

          1)Requires Caltrans to prepare a report describing the types of  
            projects funded under the RTSG Program and submit the report  
            to the Legislature by June 30, 2002.

          1)Sunsets the provisions of this bill on January 1, 2003.

           FISCAL EFFECT  :  As passed by the Budget Conference Committee,  
          the budget provides $18 million for the Rural Transportation  
          Grant Program.


           Analysis Prepared by  :  Chris Woods / Budget / (916) 319-2099FN:  
          0001775