BILL ANALYSIS SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: ab 1550 SENATOR ALAN LOWENTHAL, CHAIRMAN AUTHOR: arambula VERSION: 6/7/06 Analysis by: Mark Stivers FISCAL: no Hearing date: June 13, 2006 SUBJECT: California Transportation Commission (CTC) membership DESCRIPTION: This bill adds the Central Valley as one of the areas to be considered for geographical balance for CTC appointees and requires the governor to appoint persons to the CTC with a demonstrated background related to transportation. ANALYSIS: The CTC is responsible for programming and allocating funds used in the construction of highway, intercity passenger rail, and transit improvements throughout California. If voters approve the transportation bond pending on the November ballot, the CTC will program funds related to goods movement and play an even larger role in selecting highway congestion relief projects. The CTC also advises the Secretary of Business, Transportation and Housing Agency and the Legislature in formulating and evaluating state policies and plans for California's transportation programs. Since its establishment in 1978, the CTC has been composed of nine voting members appointed by the governor and two ex-officio, non-voting members of the Legislature appointed one each by the Senate Rules Committee and the Assembly Speaker. Traditionally, the two ex-officio seats have been filled by the chairs of the Senate and Assembly Transportation Committees. The terms of the voting members are four years in length and are staggered. While members of the CTC represent the entire state, current law requires the governor to "make every effort to assure that there is a geographic balance of representation on the commission as a AB 1550 (ARAMBULA) Page 2 whole, with members from the northern and southern areas and from the urban and rural areas of the state." This bill adds to the language requiring the governor to make every effort to assure a geographic balance of representation on the CTC a reference to the Central Valley in addition to northern, southern, urban, and rural areas. The bill further requires that the governor make every effort to consider that members of the CTC have a demonstrated background related to meeting the state's transportation needs, including road construction, mass transportation, transportation planning and project design, public policy decision-making, and budgetary oversight. COMMENTS: 1.Purpose of the bill . According to the author, current law regarding CTC membership, which requires representation from the northern, southern, urban, and rural areas of the state, "ignores the significant and unique transportation needs of the Central Valley, through which two major highway arteries run." Additionally, with the CTC having ongoing responsibility for the allocation of billions of dollars in transportation expenditures, the author believes the governor should be encouraged to appoint individuals with an appropriate level of relevant experience. 2.Current representation . At the present time, one of the eight members of the CTC hails from Riverbank (Stanislaus County), a relatively rural area in the Central Valley. The others are from urban or suburban areas in both Northern and Southern California, including Newport Beach, Pleasanton, San Diego, Oakland, San Francisco, Riverside, West Covina, and Glendale. Given that one of the nine members of the commission is already from the Central Valley, it is not clear that there is a problem with current law. Moreover, while it is hard to argue with the notion of promoting representation for a region as large as the Central Valley, by naming a specific region, this bill sets a precedent for citing specific geographic areas which could lead other regions to seek an explicit reference in statute as well. The committee may wish to consider whether or not this bill is necessary and whether or not it is appropriate to reference specific regions of the AB 1550 (ARAMBULA) Page 3 state with respect to geographic distribution. In regard to their relevant expertise, one current member is from the construction industry, one is in real estate development, two are former legislators, one is from labor, one is from a trucking company, one is in insurance, one is in finance, and one is an attorney. Many of these members, however, have served on a variety of local transportation boards and commissions. In February, 2007, three CTC seats will become vacant. 3.More guidance than requirement . While the author's intent may be to ensure greater representation on the CTC for the Central Valley and greater experience in transportation for appointees, the language of the bill falls more along the lines of guidance than a real requirement. First, the governor must "make every effort" but is not absolutely required to achieve a geographic balance or any particular level of appointee expertise. Second, the operative language in both provisions is loose. The language refers to assuring a geographic balance generally, not necessarily to providing guaranteed seats to any particular region. Similarly, the language relating to experience is undefined, granting the governor a lot of discretion over what type of experience would meet the requirements. Third, it is not clear what remedies are available for failure to meet the modest requirement of the bill. An interested party could surely file a lawsuit, but given the loose language of the statute, most courts would probably defer to the governor's judgment instead of unseating an appointee. PREVIOUS VOTES Assembly Floor: 75-0 Assembly Transportation: 13-0 RELATED LEGISLATION SB 1703 (Lowenthal) replaces two voting members CTC appointed by the governor with one member appointed by Senate Rules Committee and one member appointed by the Speaker of the Assembly. POSITIONS: (Communicated to the Committee before noon on Wednesday, June 7, 2006) AB 1550 (ARAMBULA) Page 4 SUPPORT: County of Fresno OPPOSED: None received.