BILL ANALYSIS Ó SB 613 Page 1 SENATE THIRD READING SB 613 (DeSaulnier) As Amended April 23, 2013 Majority vote SENATE VOTE :35-0 TRANSPORTATION 14-0 ----------------------------------------------------------------- |Ayes:|Lowenthal, Linder, | | | | |Achadjian, Ammiano, | | | | |Bloom, Bonta, Daly, | | | | |Gordon, Gatto, Holden, | | | | |Morrell, Nazarian, | | | | |Patterson, Quirk-Silva | | | |-----+--------------------------+-----+--------------------------| | | | | | ----------------------------------------------------------------- SUMMARY : Places limitations on the use of toll revenues from the seven state-owned toll bridges within the jurisdiction of the Bay Area Toll Authority (BATA). Specifically, this bill : 1)Prohibits BATA from acquiring any office space or facility in addition to the offices it recently acquired in San Francisco. 2)Limits BATA's authority to contribute to the Metropolitan Transportation Commission (MTC) to no more than 1% of the gross annual bridge revenues, as defined. EXISTING LAW : 1)Creates MTC as a local area planning agency to provide comprehensive regional transportation planning for the nine-county Bay Area region comprised of the City and County of San Francisco and the Counties of Alameda, Contra Costa, Marin, Napa, San Mateo, Santa Clara, Solano, and Sonoma. 2)Creates BATA to administer all toll revenues for the state-owned Bay Area toll bridges (except for revenues derived from the $1 seismic toll surcharge). BATA is governed by the same board as MTC. SB 613 Page 2 3)Grants BATA broad authority, including the authority to: a) Acquire, construct, manage, maintain, lease, or operate any public facility or improvements; b) To invest any money not required for its immediate necessities, as determined by BATA; and, c) Make contributions to MTC in furtherance of BATA's powers, including contributions of personnel services, office space, overhead, and other funding necessary to carry out the function of the authority. FISCAL EFFECT : Unknown. This bill is keyed non-fiscal by the Legislative Counsel. COMMENTS : In 2011, MTC and BATA formed a joint powers agency, the Bay Area Headquarters Authority for the purposes of acquiring an office building in San Francisco to create a joint regional government co-location facility. The building is initially to serve as a regional headquarters for MTC, the Bay Area Air Quality Management District and the Bay Conservation and Development Commission and may later house the Association of Bay Area Governments and the San Francisco Bay Area Conservation and Development Commission. MTC's purchase of the building entailed significant controversy. Questions were raised as to why bridge toll revenues from BATA were used to purchase a building that is much larger than the amount of office space the co-locating agencies need, with the intent to rent out extra space. In response to concerns regarding the purchase and planned moved, the Joint Legislative Audit Committee requested the State Auditor to investigate the proposed move and specifically the use of toll revenues to fund the purchase and improvements of the office building. The audit was released in August 2012 and found, in part, that BATA's use of toll bridge revenues to purchase a regional headquarters building in San Francisco is likely legally permissible. However, the audit raised concerns that MTC may not realize anticipated cash flow needs sufficient to repay contributed toll revenues by a range of $1.5 million to $53.7 million over 30 years. SB 613 Page 3 Ultimately, the State Auditor recommended to the Legislature that, if it believes state law provides BATA too much discretion over its use of toll revenues, then the Legislature should consider amending state law to more narrowly define how toll revenues that are not immediately needed for bridge maintenance or debt service may be spent or invested. This bill implements that recommendation by limiting the amount of money BATA can contribute to MTC and by clarifying that the contributions must be necessary to carry out BATA's functions. Analysis Prepared by : Janet Dawson / TRANS. / (916) 319-2093 FN: 0001392