BILL ANALYSIS                                                                                                                                                                                                    






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: AB 1203
          SENATOR ALAN LOWENTHAL, CHAIRMAN               AUTHOR:  ma
                                                         VERSION: 2/27/09
          Analysis by: Art Bauer                         FISCAL:  yes
          Hearing date: July 7, 2009








          SUBJECT:

          Transit system safety 

          DESCRIPTION:

          This bill requires the California Emergency Management Agency  
          (Cal EMA), by February 1 of each fiscal year, to select eligible  
          applicants for transit system safety projects from the Transit  
          System Safety, Security, and Disaster Response Account  
          established by the Highway Safety, Traffic Reduction, Air  
          Quality, and Port Security Bond Act of 2006, Proposition 1B, and  
          provide the Controller with a list of the projects and  
          sponsoring agencies eligible to receive an allocation.

          ANALYSIS:

          Proposition 1B authorized $19.925 billion in bonds for various  
          transportation programs, including $1 billion for the Transit  
          System Safety, Security, and Disaster Response Account for  
          capital projects that provide increased protection against a  
          security and safety threat and for capital expenditures to  
          increase the capacity of transit operators to develop disaster  
          response transportation systems that can move people, goods, and  
          emergency personnel and equipment in the aftermath of a  
          disaster. 

          Existing law:

                 Requires the allocation of 25 percent of the funds in  
               the account for capital expenditures to regional public  
               waterborne transit agencies authorized to operate a  
               regional public water transit system. 




          AB 1203 (MA)                                             Page 2

                                                                       



                 Requires the Cal EMA to administer a grant application  
               and award program for transit agencies eligible to receive  
               the funds. 

                 Existing law authorizes the Controller to make payments  
               of funds from the account to a regional public waterborne  
               transit agency on a reimbursable basis only.

                 Authorizes Cal EMA to select eligible projects to  
               receive those grants by February 1 of each fiscal year in  
               which funds are appropriated for that purpose.

           This bill  requires the Controller, upon receiving a list of  
          eligible projects from Cal EMA, to allocate funds to the  
          regional water borne public transit agency directly and not on a  
          reimbursement basis.

          COMMENTS:

           Purpose  . Typically, the state makes bond funds made available to  
          recipient agencies on a reimbursable basis. The San Francisco  
          Bay Area Water Transit Authority (WETA), the bill's sponsor, is  
          a new agency without a sufficient cashflow to "front end" the  
          cost of projects and then wait for reimbursement from  
          Proposition 1B funds. The bill provides clarifying language that  
          allows WETA to proceed with its bond funded projects and receive  
          funding directly, rather than on a reimbursement basis.
          
          Assembly Votes:
               Floor:    80-0
               Appr: 16-0
               G.O.: 16-0

          POSITIONS:  (Communicated to the Committee before noon on  
          Wednesday,  
                     July 1, 2009)

               SUPPORT:  San Francisco Bay Area Water Transit Authority  
          (sponsor)
                         California Conference Board of the Amalgamated  
          Transit Union
                              California Conference of Machinists
                              International Longshore and Warehouse Union
                         California Labor Federation
                         California Teamsters Public Affairs Council




          AB 1203 (MA)                                             Page 3

                                                                       


                              San Francisco Chamber of Commerce
                         San Mateo County Transportation Authority

               OPPOSED:  None received.