BILL ANALYSIS �
AB 730
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Date of Hearing: April 8, 2013
ASSEMBLY COMMITTEE ON TRANSPORTATION
Bonnie Lowenthal, Chair
AB 730 (Alejo) - As Amended: April 1, 2013
SUBJECT : Monterey-Salinas Transit District: bonds.
SUMMARY : Expands the Monterey-Salinas Transit District's (MST)
authority to issue revenue bonds. Specifically, this bill :
1)Allows MST to consider revenues or other income, including
sales tax revenue, as revenues of the enterprise for purposes
of paying revenue bonds issued by MST. Limits the amount of
the revenue bonds to $50,000.
2)Exempts MST from certain provisions of the Revenue Bond Law of
1941, but requires the MST board to approve bonds issued under
that act by a two-thirds MST board vote.
3)Authorizes the use of bond proceeds for transit equipment.
4)Limits the use of revenue bonds to a project or projects not
located on or adjacent to the former Fort Ord with the
exception of a project located entirely within the
right-of-way of Highway 1 owned by the California Department
of Transportation (Caltrans) or within the rail right-of-way
owned by the Transportation Agency of Monterey County.
EXISTING LAW :
1)Creates MST with specified powers and duties relative to
providing transit services in the Monterey region.
2)Authorizes MST to issues revenue bonds under the Revenue Bond
Law of 1941, payable from revenue of any facility or
enterprise of MST.
3)Authorizes MST to temporarily borrow money in accordance with
various provisions of the Government Code applicable to local
agencies.
4)Establishes Caltrans to, among other responsibilities, manage
the state highway system (which includes the California
freeway and expressway system) and provide funding and
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coordination of intercity rail passenger services within the
state.
5)Designates the Transportation Agency of Monterey County as the
state designated regional transportation planning agency to
perform transportation planning activities for the County and
Cities of Monterey County.
FISCAL EFFECT : Unknown
COMMENTS : This bill expands the ability of MST to issue revenue
bonds directly by bypassing certain provisions of the Revenue
Bond Law of 1941, especially the requirement to secure voter
approval for the issuance of revenue bonds. Instead, the bill
authorizes MST to issue revenue bonds subject to a two-thirds
vote of the MST board. Many other metropolitan transit
districts, such as Orange County Transit District, San Diego
County Regional Transportation Commission, and San Francisco Bay
Area Rapid Transit District, already possess similar means of
issuing bonds directly without approval by the local voters.
This bill is patterned after legislation enacted last year that
provided similar authority to the Sacramento Regional Transit
District.
Additionally, this bill updates MST's array of temporary
borrowing tools allowing it to pledge revenues or other moneys
available to it from any source, including a transactions and
use tax, as payment of the revenue bonds.
The author claims that "Monterey County does not have a local
sales tax dedicated to public transit purposes and, as a result,
MST receives far less local tax support and is more dependent
upon state and federal sources than its peers." Further, he
indicates that one-third of their bus fleet is operating beyond
their federally-designated "useful life," and that their
maintenance facilities are similarly operating beyond the
original design capacities and are in need of upgrade or
replacement in order to meet growing demands for transit within
the community. He believes that AB 730 will provide MST similar
authority granted to other transit districts and provide MST
with greater flexibility in utilizing bond debt to raise
required capital funds for infrastructure and transit equipment,
such as buses.
Related bills : AB 1143 (Dickinson), Chapter 537, Statutes of
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2011, allowed the Sacramento Regional Transit District to issue
revenue bonds with two-thirds vote of its board.
AB 644 (Caballero) Chapter 460, Statutes of 2009; created the
MST.
Double referral : This bill is double-referred to the Assembly
Local Government Committee.
REGISTERED SUPPORT / OPPOSITION :
Support
Monterey-Salinas Transit District (sponsor)
City of Salinas
Fort Ord Reuse Authority
Monterey County Board of Supervisors
Opposition
None on file
Analysis Prepared by : Ed Imai / TRANS. / (916) 319-2093