BILL NUMBER: AB 2137 CHAPTERED 09/14/06 CHAPTER 272 FILED WITH SECRETARY OF STATE SEPTEMBER 14, 2006 APPROVED BY GOVERNOR SEPTEMBER 14, 2006 PASSED THE ASSEMBLY AUGUST 21, 2006 PASSED THE SENATE AUGUST 16, 2006 AMENDED IN SENATE JUNE 22, 2006 AMENDED IN SENATE JUNE 8, 2006 AMENDED IN ASSEMBLY APRIL 26, 2006 AMENDED IN ASSEMBLY APRIL 17, 2006 AMENDED IN ASSEMBLY MARCH 27, 2006 INTRODUCED BY Assembly Members Niello and Jones (Coauthor: Senator Cox) FEBRUARY 21, 2006 An act to amend Sections 102022, 102023, 102055, 102100.1, 102100.3, 102100.7, 102100.8, 102100.9, 102105, 102106, 102122, 102141, 102205, 102206, 102265, 102311, 102351, 102501, 102509, and 102510 of, to add Sections 102100.10 and 102105.1 to, to repeal Section 102024 of, and to repeal and add Sections 102025, 102026, 102027, 102028, 102100.4, 102100.5, and 102100.6 of, the Public Utilities Code, relating to transportation. LEGISLATIVE COUNSEL'S DIGEST AB 2137, Niello Sacramento Regional Transit District. (1) Existing law creates the Sacramento Regional Transit District, with specified powers and duties relative to providing transit services in the Sacramento region. The district is governed by a board of directors, appointed by cities and counties within the boundaries of the district, with provision made for jurisdictions that are not annexed to the district to appoint a director under certain conditions. This bill would revise the membership of the board of directors to provide for member entities and participating entities, and would establish a weighted voting system based on financial contributions to the district by those entities, thereby imposing a state-mandated local program. The bill would establish standards to determine the amount of financial contributions made from various funding sources. The bill would increase the compensation of directors from $50 to $100 per meeting, for up to 4 noticed meetings per month. The bill would make other related changes. (2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 102022 of the Public Utilities Code is amended to read: 102022. "Sacramento Area Council of Governments" means that agency or any successor thereto. SEC. 2. Section 102023 of the Public Utilities Code is amended to read: 102023. "Tax or financial support" includes funds made available pursuant to the "Mills-Alquist-Deddeh Act" (Chapter 4 (commencing with Section 99200) of Part 11 of Division 10), which is also known as the Transportation Development Act, or any successor to that act. SEC. 3. Section 102024 of the Public Utilities Code is repealed. SEC. 4. Section 102025 of the Public Utilities Code is repealed. SEC. 5. Section 102025 is added to the Public Utilities Code, to read: 102025. "Member entity" means a city or county that is annexed to the district pursuant to Section 102051, 102052, or 102055. "Member entities" means all those cities and counties. SEC. 6. Section 102026 of the Public Utilities Code is repealed. SEC. 7. Section 102026 is added to the Public Utilities Code, to read: 102026. "Participating entity" means a city or county that has entered into an agreement with the district pursuant to subdivision (b) of Section 102100.3, but only during the period in which the agreement is in effect. "Participating entities" means all those cities and counties. SEC. 8. Section 102027 of the Public Utilities Code is repealed. SEC. 9. Section 102027 is added to the Public Utilities Code, to read: 102027. "Voting entity" means a member entity or a participating entity. "Voting entities" means all member entities and participating entities. SEC. 10. Section 102028 of the Public Utilities Code is repealed. SEC. 11. Section 102028 is added to the Public Utilities Code, to read: 102028. "Transportation planning agency" shall have the meaning provided in Section 99214. SEC. 12. Section 102055 of the Public Utilities Code is amended to read: 102055. Any city or county may annex to and become a part of the district upon approval by the board of directors following (1) written request by that city or county to the district for that annexation, and (2) approval of that annexation by the Sacramento Area Council of Governments. Approval of annexation by the board shall be made by adoption of a resolution to that effect. SEC. 13. Section 102100.1 of the Public Utilities Code is amended to read: 102100.1. (a) Except as otherwise provided, the government of the district shall be vested in a board of directors. The number of members on the board shall be not less than the number of voting entities. (b) Each appointee to the board shall serve a four-year term, unless earlier removed. SEC. 14. Section 102100.3 of the Public Utilities Code is amended to read: 102100.3. The number of members of the board of directors shall be increased as follows: (a) Each member entity shall be entitled to make one appointment to the board. (b) A city or county that is not annexed to the district may become a participating entity that is entitled to make at least one appointment to the board if the participating entity enters into an agreement with the district that provides for all of the following: (1) The participating entity agrees to pay its proportionate share of the district's cost to provide rail or other districtwide transit services. (2) The district agrees to maintain a specified level of rail or other districtwide transit services. (3) The district is not obligated to provide transit services to any particular location or along any particular route. (c) A voting entity shall be entitled to make an additional appointment to the board under the circumstances set forth in paragraph (6) of subdivision (d) of Section 102105.1. SEC. 15. Section 102100.4 of the Public Utilities Code is repealed. SEC. 16. Section 102100.4 is added to the Public Utilities Code, to read: 102100.4. The appointing authority of a participating entity under subdivisions (b) and (c) of Section 102100.3, and the term of its appointee to the board, shall terminate upon termination or cancellation of the agreement provided for in subdivision (b) of Section 102100.3, and that agreement shall automatically terminate upon the effective date of the entity's annexation to the district pursuant to Section 102051 or 102055. SEC. 17. Section 102100.5 of the Public Utilities Code is repealed. SEC. 18. Section 102100.5 is added to the Public Utilities Code, to read: 102100.5. After initial formation of the district, each voting entity shall have the right to appoint fewer members than it is entitled to appoint under Sections 102100.2 and 102100.3, provided that each voting entity shall appoint at least one member. Each voting entity shall determine, effective July 1 of each year, how many members it will appoint for the upcoming fiscal year. The legislative body of each voting entity shall provide written notification to the secretary of the board not more than 60 days and not less than 15 days prior to July 1 of the number of appointments it will make for the upcoming fiscal year beginning July 1. Unless and until that notification is provided, the number of appointments made during the prior year shall govern. SEC. 19. Section 102100.6 of the Public Utilities Code is repealed. SEC. 20. Section 102100.6 is added to the Public Utilities Code, to read: 102100.6. An action by the board shall not be void or voidable under either of the following circumstances: (a) If it is determined, subsequent to an action in which a member representing a participating entity casts a vote, that the agreement for that participating entity did not comply with subdivision (b) of Section 102100.3. (b) Because of any mathematical or clerical error in the information used to calculate, or because of the calculation of, the apportionment referred to in paragraph (5), (8), or (9) of subdivision (d) of Section 102105.1. SEC. 21. Section 102100.7 of the Public Utilities Code is amended to read: 102100.7. The appointments to the board may be changed in the following manner: Not more often than every two years, the voting entities may, by agreement, apportion the appointments to the board among them in the approximate ratio that the district provides transit service, as determined by the gross cost of the service without regard to income or revenues of the district, within their respective boundaries. SEC. 22. Section 102100.8 of the Public Utilities Code is amended to read: 102100.8. Execution of the agreement provided in subdivision (b) of Section 102100.3 by the district and the City of Elk Grove shall be a complete defense in any action or proceeding of any kind to enforce or compel compliance with Resolution Number 99-1044 adopted by the Sacramento County Board of Supervisors or Resolution Numbers LAFC 1205, LAFC 1206, LAFC 1207, or LAFC 1208, adopted by the Sacramento Local Agency Formation Commission, to the extent the enforcement action is related to the enforcement of the Mitigation Monitoring Reporting Program Mitigation Measure Number 2 pertaining to the district. SEC. 23. Section 102100.9 of the Public Utilities Code is amended to read: 102100.9. For purposes of paragraph (1) of subdivision (b) of Section 102100.3, the City of Elk Grove's proportionate share shall be determined in the manner provided in Section 4B(2) of the First Amendment to Interim Agreement for Elk Grove Bus Service, dated March 17, 2004, between the district and the City of Elk Grove. SEC. 24. Section 102100.10 is added to the Public Utilities Code, to read: 102100.10. Each voting entity appointing members to the board in accordance with Section 102100.2 or 102100.3 may also select, in the same manner as the primary member or members, one or more alternates, as the case may be, to serve on the board when the primary member or members are not available. Each alternate shall be appointed to serve for a specific member. The alternate shall be subject to the same restrictions and shall have the same powers, when serving on the board, as the primary member, including assumption of the seniority of the primary member for purposes of paragraph (7) of subdivision (d) of Section 102105.1. The legislative body of any voting entity appointing an alternate shall provide written notification to the secretary of the board of each appointment of an alternate in order for the appointment to be effective. SEC. 25. Section 102105 of the Public Utilities Code is amended to read: 102105. The board shall establish rules for its proceedings. The acts of the board shall be expressed by motion, resolution, or ordinance. All meetings of the board shall be conducted in the manner prescribed by the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code). SEC. 26. Section 102105.1 is added to the Public Utilities Code, to read: 102105.1. In acting on any item, the following weighted voting procedure shall be applied: (a) There shall be a total of 100 votes. (b) The presence of members eligible to cast a majority of the 100 votes shall constitute a quorum for the transaction of business. (c) Except as otherwise provided in this section, and notwithstanding any other provision of law, all official acts of the board shall require the affirmative vote of members casting a majority of the 100 votes. Any statute, including this part, that requires a vote of the board shall be interpreted to require a tally of the votes, rather than a tally of the members of the board. A statute requiring the affirmative vote of the majority or a greater number of members of the board, including, but not limited to, Section 1245.240 of the Code of Civil Procedure, shall be interpreted as requiring a tally of the votes cast by members, rather than a tally of members. (d) Each board member shall have the number of votes determined by the following formula; however, each voting entity represented on the board shall have at least one vote, and providing that there shall be no fractional votes: (1) Each member entity is entitled to five votes as a membership incentive; however, the total number of incentive votes shall not exceed 30. If the number of member entities exceeds six, the 30 incentive votes shall be divided equally among the member entities. (2) The remaining votes shall be divided among all voting entities in proportion to each entity's financial contribution to the district. The calculation of each voting entity's financial contribution shall include all of the following: (A) Funds allocated to the district pursuant to the Mills-Alquist-Deddeh Act, also known as the Transportation Development Act (Chapter 4 (commencing with Section 99200) of Part 11 of Division 10), or any successor thereto, as computed by the applicable transportation planning agency for the voting entity. (B) Funds provided to the district by the voting entity pursuant to an agreement of the type described in subdivision (b) of Section 102100.3. (C) Other local funds made available to the district by the voting entity for the operation of public transit service. (D) The federal formula grant funds attributable to the voting entity shall be determined by multiplying the amount described in paragraph (8) of subdivision (b) of Section 102205 by the voting entity's proportionate share of the total population of all voting entities, which shall be determined by using the population statistics described in paragraph (10) of subdivision (b) of Section 102205. (E) Any adjustment expressly provided for in an agreement entered into between the district and any voting entity whereby the district receives or disburses any of the funds described in subparagraphs (A) to (D), inclusive, including, but not limited to, fund exchange or fund swap agreements. (3) The total number of votes for each voting entity shall be the sum of the votes allocated in paragraphs (1) and (2). (4) If the division set forth in paragraphs (1) to (3), inclusive, results in fractional votes, the number of votes allocated shall be rounded in the following manner: (A) Each fractional vote that is 0.6 or greater shall be rounded up to the nearest whole number, and each fractional vote that is less than 0.6 shall be rounded down to the nearest whole number. (B) If the sum total of the votes so rounded is greater than 100, the excess vote or votes shall be taken one each from the voting entity or entities with the greatest number of total votes, in descending order of the number of votes, until the sum total is 100. If two or more voting entities have the same number of votes, the vote reduction among those entities shall be done by lot. (C) If the sum total of the votes so rounded is less than 100, one vote shall be added to the total of the voting entity or entities with the greatest number of total votes, in descending order of the number of votes, until the sum total is 100. If two or more voting entities have the same number of votes, the extra votes shall be allocated by lot among those entities. (5) The determination of financial contribution and the apportionment of votes shall be approved by the board at the board meeting at which the budget is adopted. The new voting apportionment shall be effective on July 1 of each year or as soon thereafter as the budget is adopted. (6) At the time the apportionment is approved, the following calculation shall be done for each voting entity: the total number of votes allocated to the voting entity shall be divided by the total number of appointments the voting entity is entitled to make under Sections 102100.2 and 102100.3, regardless of whether those appointments have been made. If the result is greater than 15 votes per appointment, the voting entity shall be entitled to appoint an additional member to the board, effective July 1. Notwithstanding Section 102100.5, the legislative body of the voting entity making its appointment under this provision shall give written notification to the secretary of the board within 30 days of approval of the allocation. A member so appointed shall be subject to the same restrictions and shall have the same powers, when serving on the board, as any other member. (7) For any voting entity that has appointed more than one member to the board, the total votes allocated to that voting entity shall be divided equally among the board members or alternates representing that entity who are present and voting. Where an equal division would result in fractional votes, the votes shall be divided to the nearest whole number among all members representing the voting entity who are present and voting, with the remaining votes being allocated, one vote each, to the members representing the voting entity in order of seniority, as measured by years of consecutive service on the board. If two or more members have served for the same length of time, the extra vote or votes shall be allocated between those members by lot. (8) If a city or county becomes a voting entity or ceases to be a voting entity after the annual allocation called for in this subdivision has taken place, the board shall approve a new allocation, applying the financial contribution data used for the most recent allocation and considering what the new voting entity would have contributed, had it been part of the district when the preceding allocation took place. If necessary, the financial contribution of a newly incorporated entity may be estimated using population figures from the applicable local agency formation commission. (9) If, during the course of the fiscal year, the financial data used to calculate the financial contribution of any voting entity differs by more than 10 percent from the amount that will actually be provided during the fiscal year by that entity, the board may call for a new allocation to be conducted and any allocation so called for shall be approved by the board. The allocation shall proceed in the manner described in paragraphs (1) to (4), inclusive, but the calculation in paragraph (2) shall be done with reference to the financial contribution actually provided to the district during the fiscal year (except as otherwise provided in paragraph (8)), to the extent that contribution is known. SEC. 27. Section 102106 of the Public Utilities Code is amended to read: 102106. Each member of the board shall receive the sum of one hundred dollars ($100) for each attendance at up to four noticed meetings of the board per month, and shall be allowed actual necessary traveling expenses incurred in the discharge of the member' s duties. SEC. 28. Section 102122 of the Public Utilities Code is amended to read: 102122. (a) The board of directors may adopt ordinances that do any of the following: (1) Prohibit persons from knowingly giving false identification to a district employee engaged in the enforcement of district ordinances or state laws, or otherwise obstructing the issuance of a citation for violation of district ordinances or state law. (2) Prohibit unauthorized operation of, interference with, entry into, climbing upon, attaching to, or loitering on or in transit facilities or other transit property. (3) Prohibit the removal, displacement, injury, destruction, or obstruction of any part of any track, switch, turnout, bridge, culvert, or any other district structure or fixture. (4) Specify conditions under which a passenger may board a district vehicle with a bicycle and where the bicycle may be stowed. (b) The board may provide that a violation of any ordinance adopted pursuant to subdivision (a) is an infraction punishable by a fine not exceeding seventy-five dollars ($75), and that a violation by a person after the second conviction is punishable by a fine not to exceed two hundred fifty dollars ($250) and by community service for a total time not to exceed 48 hours over a period not to exceed 30 days which do not conflict with the violator's hours of school attendance or employment. (c) The board may designate persons regularly employed by the district as inspectors or supervisors whose duties shall include enforcement of district ordinances adopted under subdivision (a), Sections 640 and 640.5 of the Penal Code, and Section 22656 of the Vehicle Code. The designated persons shall have the authority set forth in Section 836.5 of the Penal Code. (d) This section does not prohibit any person from engaging in activities that are protected under the laws of the United States or of California, including, but not limited to, picketing, demonstrating, or distributing handbills. SEC. 29. Section 102141 of the Public Utilities Code is amended to read: 102141. The commission shall be composed of three persons appointed by the legislative body of each voting entity. At least one of the three persons appointed by each voting entity shall be a sitting member of the voting entity's legislative body. Persons appointed to the commission shall serve at the pleasure of their appointing body. SEC. 30. Section 102205 of the Public Utilities Code is amended to read: 102205. (a) The district shall annually submit its tentative or proposed budget to the legislative body of each voting entity, within the time and in the manner required in this section. (b) The tentative or proposed budget and the final adopted budget shall, at a minimum, include the following information for the applicable fiscal year: (1) The projected cost of service. (2) The projected revenue from fares. (3) The Transportation Development Act allocation for each member entity that is reserved for the district for operating purposes, as set forth in the finding of apportionment by the applicable transportation planning agency. (4) The projected revenue from any contract of the type described in subdivision (b) of Section 102100.3. (5) The projected revenue from any other local funds made available to the district by a voting entity for the operation of public transit service. (6) The amount of the federal formula grant funds that was available and eligible for use during the prior fiscal year for operating purposes within the Sacramento urbanized area, including funds for cities and counties that are not represented on the board. (7) The amount of the federal formula grant funds described in paragraph (6) that was allocated to entities other than the district. (8) The amount obtained by subtracting the amount described in paragraph (7) from the amount described in paragraph (6), which amount represents the federal formula grant funds that were available and eligible for use by the district for operating purposes during the prior fiscal year. (9) A projection of the revenue from any other source that will be available to the district for operating purposes during the fiscal year. (10) The population of each voting entity, as measured by the population statistics used by the applicable transportation planning agency to allocate Transportation Development Act funds for the same fiscal year for which the budget is adopted. (c) The tentative or proposed budget shall be submitted to the legislative body of each voting entity not less than 60 days prior to its adoption by the board. It shall be submitted for review and comment. The board may adopt the budget after submission to the legislative body of each voting entity, but shall consider any comments made by those legislative bodies on the budget. (d) Concurrent with adoption of the budget, the board shall make an affirmative finding that the proposed level of service, reflected in the statement of proposed operation and level of service, to be rendered in any voting entity, is commensurate with the level of tax or financial support to be derived from each such voting entity. In determining the level of service, the board shall consider user benefits and community benefits, in terms of one or more of the following factors: availability of service, patronage, population, and capital improvements. (e) The board shall adopt its budget at a public hearing held after the submission of the tentative or proposed budget. Notice of the time and place of the hearing shall be published pursuant to Section 6061 of the Government Code and shall be made not later than the 15th day prior to the date of the hearing. SEC. 31. Section 102206 of the Public Utilities Code is amended to read: 102206. The district shall also submit to the legislative body of each voting entity with its tentative or proposed budget a statement of its proposed operations and level of service for the period covered by the budget, calling attention to any substantial or significant changes or proposed changes in operations and level of service within each voting entity and a draft of the vote allocation called for by Section 102105.1. A legislative body may include with its comments to the district on the budget, comments concerning the proposed operations, level of service, and vote allocation, and the board shall consider those comments prior to adopting the budget. SEC. 32. Section 102265 of the Public Utilities Code is amended to read: 102265. The Sacramento Area Council of Governments shall be the long-range planning agency advising the district. SEC. 33. Section 102311 of the Public Utilities Code is amended to read: 102311. The district shall have the power to obtain temporary transfers of funds in accordance with the last paragraph of Section 6 of Article XVI of the California Constitution. SEC. 34. Section 102351 of the Public Utilities Code is amended to read: 102351. Notwithstanding Sections 7261 and 7262 of the Revenue and Taxation Code, the retail transactions and use tax ordinance shall provide for rates of one-quarter or one-half of one percent. The ordinance shall apply only within that portion of the district that consists of the City of Sacramento and the unincorporated territory of the County of Sacramento which is activated as part of the district as of the date of any election relating to the tax authorized by this article. SEC. 35. Section 102501 of the Public Utilities Code is amended to read: 102501. Whenever the board deems it necessary for the district to incur a bonded indebtedness for the acquisition, construction, or repair of any or all improvements, works, property or facilities, authorized by this part or necessary or convenient for the carrying out of the powers of the district, or for any other purpose authorized by this part, it shall, by ordinance, adopted by a two-thirds vote of the board, so declare and call an election to be held in the district for the purpose of submitting to the qualified voters thereof the proposition of incurring indebtedness by the issuance of bonds of the district; provided the total amount of bonds issued and outstanding pursuant to this article shall not exceed 15 percent of the assessed value of the taxable property of the district as shown by the last equalized assessment rolls of the counties of Sacramento, Placer, and Yolo. The ordinance shall state: (a) The purposes for which the proposed debt is to be incurred, which may include all costs and estimated costs incidental to or connected with the accomplishment of those purposes, including, without limitation, engineering, inspection, legal, fiscal agents, financial consultant and other fees, bond and other reserve funds, working capital, bond interest estimated to accrue during the construction period and for a period not to exceed three years thereafter, and expenses of all proceedings for the authorization, issuance, and sale of the bonds. (b) The estimated cost of accomplishing those purposes. (c) The amount of the principal of the indebtedness. (d) The maximum term the bonds proposed to be issued shall run before maturity, which shall not exceed 50 years from the date thereof or the date of each series thereof. (e) The maximum rate of interest to be paid, which shall not exceed 7 percent per annum. (f) The proposition to be submitted to the voters, which may include one or more purposes. (g) The date of the election. (h) The manner of holding the election and the procedure for voting for or against the measure. (i) The ordinance may also contain any other matters authorized by this part or any other law. SEC. 36. Section 102509 of the Public Utilities Code is amended to read: 102509. After the expiration of three years after a bond election, the board may determine, by ordinance adopted by a two-thirds vote of the board, that any or all of the bonds authorized at the election remaining unsold shall not be issued or sold. When the ordinance takes effect, the authorization to issue those bonds shall become void. SEC. 37. Section 102510 of the Public Utilities Code is amended to read: 102510. Whenever the board deems that the expenditure of money for the purposes for which the bonds were authorized by the voters is impractical or unwise, it may, by ordinance adopted by a two-thirds vote of the board, so declare and call an election to be held in the district for the purpose of submitting to the qualified voters thereof the proposition of incurring indebtedness by the issuance of those bonds for some other purposes or, in the case where bonds have been sold, the proposition to use the proceeds for some other purposes. The procedure, so far as applicable, shall be the same as when a bond proposition is originally submitted. SEC. 38. (a) On or before February 1, 2007, the Sacramento Regional Transit District shall, by first-class mail, deliver to the legislative body of each voting entity, as defined in Section 102027 of the Public Utilities Code, the following material: (1) The information described in paragraphs (3) to (10), inclusive, of subdivision (b) of Section 102205 of the Public Utilities Code for the Sacramento Regional Transit District for its 2006-2007 fiscal year. (2) A draft apportionment of votes, conducted in accordance with paragraphs (1) to (4), inclusive, of subdivision (d) of Section 102105.1 Public Utilities Code. (b) The apportionment of votes shall be approved by the Board of Directors of the Sacramento Regional Transit District at a regularly scheduled meeting occurring at least 30 days after delivery of the material described in subdivision (a). Delivery shall be deemed to have occurred at the earlier of the actual receipt of the information by each voting entity or the second business day following deposit in the United States mail, postage prepaid. (c) Weighted voting shall take place under the apportionment of votes approved by the Board of Directors of the Sacramento Regional Transit District and pursuant to the procedure in Section 102105.1 of the Public Utilities Code until a new apportionment is approved as set forth in paragraph (5) of subdivision (d) of Section 102105.1 of the Public Utilities Code. (d) Notwithstanding any other provision of this act, until the Board of Directors of the Sacramento Regional Transit District approves the apportionment of votes in accordance with this section or Section 102105.1 of the Public Utilities Code, all appointments to, and acts by, the Board of Directors of the Sacramento Regional Transit District shall be governed by the provisions of the Sacramento Regional Transit District Enabling Act in effect immediately prior to January 1, 2007. SEC. 39. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district are the result of a program for which legislative authority was requested by that local agency or school district, within the meaning of Section 17556 of the Government Code and Section 6 of Article XIII B of the California Constitution.