BILL ANALYSIS Ó
SB 1037
Page 1
SENATE THIRD READING
SB 1037 (Ed Hernandez)
As Amended June 9, 2014
Majority vote
SENATE VOTE :31-2
LOCAL GOVERNMENT 9-0 TRANSPORTATION 14-0
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|Ayes:|Achadjian, Levine, Alejo, |Ayes:|Lowenthal, Linder, |
| |Bradford, Gordon, | |Achadjian, Bloom, Bonta, |
| |Melendez, Mullin, Rendon, | |Buchanan, Daly, Frazier, |
| |Waldron | |Gatto, Holden, Nazarian, |
| | | |Patterson, Quirk-Silva, |
| | | |Waldron |
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SUMMARY : Requires the Los Angeles County Metropolitan
Transportation Authority (MTA) to update its expenditure plan
and Long-Range Transportation Plan (LRTP) before placing another
transactions and use tax measure before the voters.
Specifically, this bill :
1)Requires MTA, before placing a transactions and use tax on the
ballot, to update and amend the expenditure plan with the
following information:
a) Most recent cost estimates for each project and program
identified in the amended expenditure plan;
b) Identification of the accelerated cost, if applicable,
for each project and program in the amended expenditure
plan;
c) Schedule that MTA anticipates funds will be available
for each project and program; and,
d) Expected completion dates for each project and program.
2)Requires MTA to develop a transparent process to determine the
most recent cost estimates for each project and program
identified in the amended expenditure plan.
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3)Requires the amended expenditure plan to be included in the
revised and updated LRTP before placing a transactions and use
tax on the ballot.
4)Requires the updated LRTP to include capital projects and
capital programs adopted by each subregion that are submitted
to MTA for inclusion in the updated LRTP.
5)Provides that inclusion of a capital project or program in the
LRTP is not a commitment or guarantee that the project or
program shall receive any future funding.
6)Requires MTA, at least 30 days before submitting the ordinance
to the voters, to post the amended expenditure plan and LRTP
on their Web site in a prominent manner.
EXISTING LAW :
1)Authorizes MTA to impose a transactions and use tax at a rate
of 0.5% that is applicable in the incorporated and
unincorporated areas of the county.
2)Provides, for purposes of the imposition of the transactions
and use tax, the following requirements:
a) The tax shall be proposed in a transactions and use tax
ordinance that conforms with specified laws and that is
approved by a majority of the entire membership of the MTA;
and,
b) The tax may be imposed only if the proposing ordinance
is approved by two-thirds of the voters in a specified
manner.
3)Requires MTA, prior to submitting the ordinance to the voters,
to adopt and amend the expenditure plan with updates of the
estimated total cost for each project or program, the schedule
during which MTA anticipates funds will be available for each
project or program, and the expected completion dates for each
project or program.
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4)Allows MTA to incur bonded indebtedness payable from the
proceeds of the tax extension pursuant to MTA's bond issuance
provisions in existing law, and any successor act, and
specifies that proceeds from the bonds must be used to
accelerate the completion of the capital projects and capital
programs listed in existing law for MTA, and for operations as
specified.
5)Requires, upon completion of the projects that any funds
remaining from the bonds and any funds remaining from the
proceeds of the tax, after payment of the bonded indebtedness,
must be deposited in MTA's sales tax revenue fund to be used
for the purposes of projects and programs contained in the
expenditure plan, LRTP, or its successor plans, and for
operation costs as specified.
FISCAL EFFECT : None
COMMENTS :
1)Background. SB 314 (Murray), Chapter 785, Statutes of 2003,
originally enacted provisions that authorized MTA to impose a
0.5% transactions and use tax, not subject to the 2% cap for
no more than six and one-half years, for specific
transportation projects and programs. The authority to put a
tax measure before the voters was never used. AB 2321
(Feuer), Chapter 302, Statutes of 2008, modified those
provisions to allow MTA to impose a transactions and use tax
for 30 years. AB 2321 additionally required MTA to adopt an
expenditure plan prior to submitting a transactions and use
tax to the voters and to include specified projects and
programs in its LRTP. In November of 2008, more than 67% of
Los Angeles County voters approved this tax in a ballot
measure known as Measure R.
Most recently, AB 1446 (Feuer), Chapter 806, Statutes of 2012,
authorized MTA, subject to voter approval, to extend the
existing transactions and use tax for an unlimited amount of
time, allowing MTA to determine if a sunset date is necessary.
AB 1446 also required MTA to update its expenditure plan
prior to submitting the tax measure to the voters.
2)Purpose of this bill. This bill builds on existing
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requirements that MTA must comply with before going to the
voters with an additional transactions and use tax measure.
This bill requires MTA, before placing a transactions and use
tax on the ballot, to update and amend the expenditure plan
with the following: (a) cost estimates for each project and
program, using a transparent process; (b) accelerated costs of
each of the plan's projects and programs, if applicable; (c) a
schedule for when MTA anticipates funds will be available for
each project and program; and, (d) expected completion dates
for each project and program. Additionally, this bill
requires the revised and updated LRTP to include the
expenditure plan before placing the measure on the ballot.
The LRTP also must list capital projects and programs adopted
by each subregion that are submitted to MTA for inclusion.
The bill notes that including cost estimates does not mean the
project is guaranteed funding. Under this bill, MTA would
have to post the amended expenditure plan and LRTP on its Web
site at least 30 days prior to submitting the tax measure.
This bill is author-sponsored.
3)Author's statement. According to the author, "Los Angeles
County voters are subjected to some of the worst traffic in
the nation, and they are willing to pass taxes upon themselves
to help address the problem. [This bill] will give voters
comprehensive information on where their money will go; how
much and to what project; any outstanding funding needs; and
most importantly, will solicit current figures on exact
project outlays. This information will be required to go to
the voters before any vote to increase or extend another
transportation tax.
"[MTA's] current internal system of coming up with project
costs has at times been criticized, and [this bill] attempts
to address the situation, while precluding balkanization of
transportation projects, by requiring regional collaboration.
"Independent of [this bill], [MTA] has already begun the
process of reaching out to the various COGs [council of
governments] to get their updated transportation priority
list, granting each COG $500,000 to assist in their updating
and planning effort. Due in large part to this effort, the
author feels it is the right time to update the expenditure
plan in a comprehensive and thoughtful manner, ahead of the
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likely vote by the [MTA] Board to put a new Measure R vote on
the 2016 ballot. If [this bill] is signed into law, it will
provide voters with a clear picture of how much projects cost
in current year costs, where exactly their funds will be
going, and how much is needed (if any) to complete a project.
"Additionally, [MTA] would be required to include the updated
numbers in its expenditure plan prior to placing any new
Measure R update on the ballot. [MTA] would also need to
break down its numbers more thoroughly than in the past, by
specifying the source of any non-Measure R funds; the cost of
accelerating a project; and, the schedule which [MTA] expects
funds to be available for each project and program. [This
bill] also requires [MTA] to update its LRTP with the revised
expenditure plan."
4)Arguments in support. None on file.
5)Arguments in opposition. None on file.
Analysis Prepared by : Misa Yokoi Shelton / L. GOV. / (916)
319-3958 FN:
0004082