BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 730|
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THIRD READING
Bill No: AB 730
Author: Alejo (D), et al.
Amended: 9/3/13 in Senate
Vote: 21
SENATE TRANSPORTATION & HOUSING COMMITTEE : 8-2, 6/18/13
AYES: DeSaulnier, Beall, Galgiani, Hueso, Lara, Liu, Pavley,
Roth
NOES: Gaines, Wyland
NO VOTE RECORDED: Cannella
SENATE GOVERNANCE & FINANCE COMMITTEE : 5-2, 7/3/13
AYES: Wolk, Beall, DeSaulnier, Hernandez, Liu
NOES: Knight, Emmerson
ASSEMBLY FLOOR : 49-23, 5/16/13 - See last page for vote
SUBJECT : Monterey-Salinas Transit District: revenue bonds
SOURCE : Monterey-Salinas Transit District
DIGEST : This bill authorizes the Monterey-Salinas Transit
District (MST) to approve with a two-thirds vote of its
governing board the issuance of up to $50 million in revenue
bonds.
Senate Floor Amendments of 9/3/13 clarify that the bond
indebtedness from bonds issued for the acquisition of equipment
cannot exceed the useful life of the equipment.
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AB 730
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ANALYSIS : The Revenue Bond Law of 1941 (RBL) establishes
uniform procedures for public agencies in California to use when
issuing revenue bonds. The RBL specifies the various agencies
that may issue revenue bonds, defines the terms of revenue bond
covenants, and enumerates a variety of other conditions related
to revenue bond issuance. In addition, the RBL establishes
procedures for approving the issuance of revenue bonds,
including requiring a majority vote of the governing board to
place a measure on the ballot and a two-thirds vote of the
electorate within a special district's area of jurisdiction.
In 2009, AB 644 (Caballero, Chapter 460) dissolved the
Monterey-Salinas Transit Agency and created the MST. Among the
powers AB 644 granted to MST was the authority to issue revenue
bonds under the RBL.
In 2011, AB 1143 (Dickinson, Chapter 537) authorized Sacramento
Regional Transit to issue revenue bonds without a two-thirds
vote of the electorate and instead to issue revenue bonds with
only a two-thirds vote of its governing board.
This bill:
1. Authorizes MST to issue revenue bonds by a two-thirds vote of
the governing board and deletes provisions requiring a vote
of the majority of the electorate.
2. Changes the definition of "enterprise" to include transit
equipment, including vehicles.
3. Deems as revenue, for the purposes of the RBL, any revenues
or other income, receipt, or amounts made available to MST,
including, but not limited to, the proceeds of a transactions
and use tax imposed under specified provision of existing
law.
4. Limits the bond issuance to $50 million, payable in whole or
in part from revenues of any enterprise acquired,
constructed, or completed, or to be acquired, constructed, or
completed by MST.
5. 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 or projects located entirely within
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the existing right-of-way of State Highway Route 1 owned by
Caltrans or within the existing right-of-way of the Monterey
branch rail line, owned by the Monterey County Transportation
Agency.
6. Clarifies that the bond indebtedness from bonds issued for
the acquisition of equipment cannot exceed the useful life of
the equipment.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local:
No
SUPPORT : (Verified 7/8/13)
Monterey-Salinas Transit District (source)
City of Salinas
Fort Ord Reuse Authority
Monterey County Board of Supervisors
Transportation Agency for Monterey County
ARGUMENTS IN SUPPORT : According to the author's office, this
bill allows MST to more easily and less expensively issue
revenue bonds to fund improvements to its vehicles, equipment,
and facilities. The author's office contends that MST has real
capital needs, as one-third of MST's full-sized bus fleet is
beyond its useful life, and MST's maintenance facilities are 35
years old and operating well beyond their original design
capacities. Unlike other counties in the state, Monterey County
does not have a local sales tax dedicated to transportation and
therefore is more dependent upon state and federal revenue
sources for support. The author's office believes this bill
enables MST to issue bonds to meet their funding needs for safe
and efficient operations and to provide service to their 4.5
million urban customers as well as regional connections between
communities.
ASSEMBLY FLOOR : 49-23, 5/16/13
AYES: Alejo, Ammiano, Atkins, Bloom, Blumenfield, Bocanegra,
Bonilla, Bonta, Bradford, Brown, Buchanan, Ian Calderon,
Campos, Chau, Chesbro, Cooley, Daly, Dickinson, Eggman, Fong,
Frazier, Garcia, Gatto, Gomez, Gordon, Gray, Hall, Roger
Hernández, Jones-Sawyer, Levine, Lowenthal, Medina, Mitchell,
Mullin, Muratsuchi, Nazarian, Pan, Perea, V. Manuel Pérez,
Quirk, Rendon, Skinner, Ting, Torres, Weber, Wieckowski,
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Williams, Yamada, John A. Pérez
NOES: Achadjian, Bigelow, Chávez, Conway, Dahle, Donnelly, Beth
Gaines, Gorell, Hagman, Harkey, Jones, Linder, Logue,
Maienschein, Mansoor, Nestande, Olsen, Patterson, Quirk-Silva,
Salas, Wagner, Waldron, Wilk
NO VOTE RECORDED: Allen, Fox, Grove, Holden, Melendez, Morrell,
Stone, Vacancy
JJA:d 9/4/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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