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) ----------------------------------------------------------------- | | | | | ----------------------------------------------------------------- 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