BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 203
                                                                  Page  1

          Date of Hearing:   July 1, 2013

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                               Bonnie Lowenthal, Chair
                     SB 203 (Pavley) - As Amended:  July 3, 2013

           SENATE VOTE  :  36-0
           
          SUBJECT  :  Ventura County:  local transportation funds

           SUMMARY  :  Modifies provisions governing Ventura County's use of  
          local transportation fund (LTF) funds.  Specifically,  this bill  :  
           

          1)Repeals provisions that uniquely govern Ventura County's local  
            transportation funds.  

          2)Imposes reporting requirements, until September 1, 2018, on  
            Ventura County Transportation Commission (VCTC) on specific  
            issues related to transit operations in the county.  

           EXISTING LAW  :  

          1)Earmarks -cent of the state sales tax for transit and directs  
            the revenue to the LTF in each county.  

          2)Vests regional transportation planning agencies (RTPAs) with  
            the responsibility to allocate LTF funds, generally to cities,  
            counties, and transit districts by population.  

          3)Requires urban counties (those with populations over 500,000)  
            to use their LTF funds for public transportation and community  
            transit purposes.  

          4)Authorizes rural counties (those with a population under  
            500,000) to use their LTF funds for purposes other than public  
            transportation and community transit services, such as local  
            streets and roads, but only after the RTPA for county holds  
            public hearings and makes a finding that all reasonable  
            transit needs in the county have been met.  

          5)Provides that, for counties that were rural at the time LTF  
            funds were first established (in the 1970's) but have since  
            grown and are now considered urban, these counties will be  
            required, as of July 1, 2014, to use LTF funds for public  








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            transportation and community transit services in urbanized  
            areas of a county (i.e., cities with populations over  
            100,000).  LTF funds can be used in non-urbanized areas in  
            these counties for local streets and roads, provided that  
            there are no unmet transit needs in the area.  These  
            provisions do not apply to Ventura County.  

          6)Provides that the VCTC may submit to the legislative policy  
            committees a report analyzing options for organizing public  
            mass transportation services in Ventura County and expending  
            LTF revenues.  VCTC may also submit a legislative proposal to  
            implement a plan based on recommendations of the report.  

          7)Provides that, because VCTC did not secure legislation to  
            implement its proposed plan by the end of the 2011-12 Regular  
            Session, its LTF revenues are available solely for public  
            transportation or community transit services, even in the  
            county's rural areas, beginning July 1, 2014.  

           FISCAL EFFECT  :  Unknown, this bill passed out of Senate  
          Appropriations Committee pursuant to Senate Rule 28.8.  

           COMMENTS  :  In 2009, SB 716 (Wolk), Chapter 609, Statutes of  
          2009, updated counties' designation as either rural or urban for  
          purposes of using LTF funds, based on the 2000 (and subsequent)  
          census rather than the 1970 census.  For those counties whose  
          designation changed, SB 716 provided a sort of hybrid use of the  
          LTF funds-urban cities within the county would be required to  
          use LTF funds for public transportation or community transit  
          services and rural areas of the county could continue to use LTF  
          funds for other purposes, assuming certain conditions were met.   
          The operative date of these changes was postponed until July 1,  
          2014, to give the counties an opportunity to adjust to the new  
          LTF requirements.  

          SB 716, however, set forth unique provisions for Ventura County,  
          one of the counties whose designation changed from rural to  
          urban.  For Ventura County, SB 716 provided an opportunity for  
          VCTC to submit a plan to the Legislature (and to secure  
          subsequent legislation) that would set forth an alternative  
          means of distributing LTF funds throughout the county.  VCTC had  
          until December 31, 2011, to submit the plan and until the end of  
          the 2011-12 Regular Session to secure subsequent legislation to  
          implement the plan, otherwise all of the county's LTF funds  
          would be directed to public transportation or community transit  








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          service as of July 1, 2014.  Neither of these two conditions was  
          met.  

          There are 10 cities within Ventura County, 4 of which exceed a  
          population of 100,000, according to 2010 data.  The other 6  
          cities have populations well below 100,000.  All of Ventura's  
          cities, large or small, however, will be required to use their  
          LTF funds for public transportation and community transit  
          services as of July 1, 2014.  This is in stark contrast to the  
          other counties whose population grew over 500,000 after 1970 and  
          who will have the option to use LTF funds for purposes other  
          than public transportation and community transit services in  
          rural areas of the county (assuming there are no unmet transit  
          needs).  

          According to the author, Ventura County's difficulties in  
          developing an integrated transit system are due, in part, to  
          differences between the east and the west cities of the county,  
          including size, ridership demographics, and commuter trends.   
          Furthermore, the author asserts that the county's expansive  
          farmlands, mountains, and large open space demands make it  
          difficult for transit operators in the county to maintain fare  
          box return ratios that are required to be eligible to receive  
          state transit assistance funding.  

          The author has introduced SB 203 to grant Ventura County the  
          same flexibility to meet its transit and local roads needs that  
          other counties enjoy that also grew from rural to urban since  
          1970.  
          SB 203 is intended to complement efforts already undertaken by  
          VCTC to improve the quality and quantity of transit in Ventura  
          County, specifically including a comprehensive review and  
          re-evaluation of its unmet transit needs process.  

          By striking provisions that restrict the use of LTF funds in  
          Ventura County's smaller cities, SB 203 generally treats Ventura  
          County the same as other counties that grew to urban size since  
          1970 with regard to the use of LTF funds.  However, the bill  
          continues to single out Ventura County in that it imposes  
          detailed reporting requirements on Ventura County alone.  For  
          example, VCTC is required to post on its internet site a report  
          on transit route changes, changes to service levels on transit  
          routes, and ridership numbers for transit routes.  Presumably,  
          this information will allow interested stakeholders to assess  
          the county's progress toward developing more fully its transit  








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          services.  However, no other transit district is required to  
          provide anything like this detailed information.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Ventura County Transportation Commission (sponsor)
          City of Camarillo
          City of Moorpark
          City of Thousand Oaks
          Ventura Council of Governments
           
            Opposition 
           
          None on file

           
          Analysis Prepared by  :   Janet Dawson / TRANS. / (916) 319-2093