BILL ANALYSIS �
SB 142
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Date of Hearing: July 1, 2013
ASSEMBLY COMMITTEE ON TRANSPORTATION
Bonnie Lowenthal, Chair
SB 142 (DeSaulnier) - As Amended: May 7, 2013
SENATE VOTE : 24-11
SUBJECT : Public transit agencies: Special benefit assessment
districts
SUMMARY : Updates the authority of transit operators to levy
special benefit assessments to finance transit projects.
Specifically, this bill :
1)Repeals and recasts the authority for a transit district,
municipal operator, or other public agency operating or
contracting for the operation of transit, commuter rail, or
intercity rail services to levy a special benefit assessment
on real property to finance the acquisition, construction,
development, joint development, operation, maintenance, or
repair of one or more eligible transit projects. Requires an
operator's governing board, in levying a benefit assessment,
to comply with public notice, protest, and hearing procedures
as specified. Conforms the authority to Proposition 218
(1996), that requires owners of real property to approve
benefit assessments in a weighted ballot election.
2)Defines the following terms: benefit district, board,
eligible transit project, legal representative, operator,
rail, rail facilities, and transit station.
3)Makes findings and declarations relative to the need of
transit entities to establish options of paying for transit
facility improvements.
EXISTING LAW :
1)Allows local officials to levy benefit assessments on real
property to pay for public works and public services.
Provides for creation of one or more special benefit districts
within a transit district or rapid transit district relative
to the issuance of bonds to be repaid through special
assessments levied on property within the special benefit
district, or certain zones within the special benefit
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district, with the proceeds of the bonds to be used for
specified transit improvements.
2)Pursuant to Proposition 218 (1996), requires owners of real
property to approve benefit assessments in a weighted ballot
election. Property owners vote in proportion to their
proposed assessments, which reflect how much their property
benefits from the proposed public works or public services.
3)Authorizes the Santa Clara Valley Transportation Authority to
levy benefit assessments to pay for public rail rapid transit
facilities, pursuant to AB 935 (Diaz) Chapter 727, Statutes of
2003.
4)Authorizes the Southern California Rapid Transit District,
which is the predecessor agency to Los Angeles County
Metropolitan Transportation Authority, to levy special benefit
assessments for public rail rapid transit facilities and
services on property that benefits from that transit service.
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS : Current state laws allow transit officials to levy
benefit assessments on real property to finance transit
improvement. Subsequent to the enactment of these laws,
Proposition 218 (1996) was approved that requires owners of real
property to approve benefit assessments in a weighted ballot
election. The proposition established constitutional
restrictions whereby property owners vote in proportion to their
proposed assessments, which reflect how much their property
benefits from the proposed public works or public services.
Further, state laws were enacted to clarify statutory procedures
as well as impose additional requirements to enhance the
confidentiality and impartiality of benefit assessment ballot
proceedings.
Separately, state law allows the Santa Clara Valley
Transportation Authority (VTA) to levy benefit assessments to
pay for public rail rapid transit facilities. To levy an
assessment, VTA must comply with the notice, hearing, and
protest provisions required by Proposition 218 and its
implementing statutes.
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This bill would repeal existing law that provides general
statutory authority to transit districts for the creation of
special benefit assessment districts around transit stations and
replace it with updated authorization that reflects current
constitutional restrictions as established by Proposition 218
and concomitant state laws subsequently enacted.
This bill is also patterned after provisions that provide VTA
with authorization to establish benefit assessment districts.
The bill allows the governing board of a transit district,
municipal operator, or other public agency operating or
contracting for the operation of transit, commuter rail, or
intercity rail services (an "operator") to levy a special
benefit assessment on real property to finance the acquisition,
construction, development, joint development, operation,
maintenance, or repair of one or more eligible transit projects.
An operator other than a transit district, city, or county may
implement a special benefit district only if the action is
consistent with the general or specific plans of the city or
county within which the special benefit district is to be
created. This bill requires an operator's governing board, in
levying a benefit assessment, to comply with specified notice,
protest, and hearing procedures in the Proposition 218.
Benefit assessment districts are based upon the premise that
property owners residing within close proximity of a particular
public asset-in this case, a rail transit station-derive
benefits from the presence of that asset and, therefore, should
share in the costs of building, maintaining, operating, and/or
upgrading that asset. In other words, the revenues raised
through the assessments are used only for the public asset from
which the property owners realize benefits.
According to the bill's sponsor writing in support of this bill,
the San Francisco Bay Area Rapid Transit District indicates that
the bill "will assist local transit providers in developing and
maintaining critical infrastructure as we seek to reduce
greenhouse gas emissions and implement the sustainable
communities strategies as required under current laws."
Double referral : This bill is also referred to the Assembly
Local Government Committee.
REGISTERED SUPPORT / OPPOSITION :
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Support
San Francisco Bay Area Rapid Transit District (sponsor)
California Transit Association
Los Angeles County Metropolitan Transportation Authority
Metropolitan Transportation Commission
Peninsula Corridor Joint Powers Board (Caltrain)
San Mateo County Transportation Authority
San Mateo County Transit District
Opposition
None on file
Analysis Prepared by : Ed Imai / TRANS. / (916) 319-2093