BILL ANALYSIS �
AB 730
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CONCURRENCE IN SENATE AMENDMENTS
AB 730 (Alejo)
As Amended September 3, 2013
Majority vote
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|ASSEMBLY: |49-23|(May 16, 2013) |SENATE: |27-11|(September 9, |
| | | | | |2013) |
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Original Committee Reference: TRANS .
SUMMARY : Expands the Monterey-Salinas Transit District's (MST)
authority to issue revenue bonds.
The Senate amendments clarify that any bonds issued to acquire
equipment must be for a duration that does not exceed the useful
life of the equipment.
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
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 : None. This bill is keyed non-fiscal by the
Legislative Counsel.
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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 this bill 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
2011, allowed the Sacramento Regional Transit District to issue
revenue bonds with a two-thirds vote of its board.
AB 644 (Caballero), Chapter 460, Statutes of 2009; created the
MST.
Analysis Prepared by : Janet Dawson / TRANS. / (916) 319-2093
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