Amended in Assembly April 6, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 738

Introduced by Assembly Member Beth Gaines

February 25, 2015

An act to amend Sections begin insert 102025, end insert 102053 begin insert , end insert and 102054 of, to add Section 102056 to, and to repeal and add Sections 102052.5 and 102055 of, the Public Utilities Code, relating to public transit.

LEGISLATIVE COUNSEL’S DIGEST

AB 738, as amended, Beth Gaines. Sacramento Regional Transit District.

Existing law provides for the creation of the Sacramento Regional Transit District, with specified powers and duties relative to the provision of public transit services. Existing law describes the authorized boundaries of the district, as specified, and provides that the boundaries of the district, at any point in time, shall consist of the area of any city or county within the authorized boundaries where the governing board of the city or county has declared a need for the district to operate. Existing law authorizes the district to operate in any city or county where the need for the district to operate has been declared, except that the district has no power to levy an ad valorem property tax unless a city or county adopts a specified resolution. Existing law begin delete also end delete provides for a city or county to annex to the district through a written request to the district and approval by the Sacramento Area Council of Governments.

This bill would revise and recast these provisions. The bill would provide that the boundaries of the district, at any point in time, shall consist of specified areas, including a city or county that has acted to annex to the district, and a city incorporated on or after January 1, 2016, if the newly incorporated city consists of territory that was included in the district prior to incorporation. The bill would require an annexation to be subject to an agreement between the annexing city or county and the district board specifying the terms and conditions of annexation, and would delete the requirement for approval of annexation by the Sacramento Area Council of Governments. The bill would begin delete also end delete provide procedures for detachment of territory within the district by a specified supermajority vote of the district board.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 102025 of the end insert begin insert Public Utilities Code end insert begin insert is
amended to read: end insert

102025.  

“Member entity” means a city or county that is
begin delete annexed to the district pursuant to Section 102051, 102052, or
102055. “Member entities” means all those cities and counties. end delete
begin insert within the boundaries of the district as defined in Section 102052.5. end insert

begin delete SECTION 1. end delete
begin insert SEC. 2. end insert   

Section 102052.5 of the Public Utilities Code is
repealed.

begin delete SEC. 2. end delete
begin insert SEC. 3. end insert   

Section 102052.5 is added to the Public Utilities Code,
to read:

102052.5.  

(a) The boundaries of the district shall include (1)
the City of Sacramento and the City of Rancho Cordova; (2) the
unincorporated territory of the County of Sacramento that is within
the urban service area, as determined by the Board of Supervisors;
(3) a city or county listed in Section 102051 that has annexed to
the district pursuant to the process specified in Section 102055;
and (4) a city incorporated on or after January 1, 2016, which city
consists entirely of territory that was included in the district prior
to the city’s incorporation.

(b) (1) The boundaries of the district shall not be affected by
the incorporation of any territory wholly or partly within the
boundaries of the district or by reason of annexation to or
detachment from any city or territory wholly or partly within the
boundaries of the district, except as provided in this section.

(2) Where territory outside the district is annexed to any city
included in the district, that territory shall, upon the completion
of the annexation proceeding, be deemed incorporated into and
annexed to the district.

(3) Where territory is incorporated as a new city, on or after
January 1, 2016, and is partly within and partly outside the district,
the entire territory shall, upon completion of the incorporation
proceeding, be deemed incorporated into and annexed to the
district.

(c) Whenever territory is deemed incorporated into and annexed
to the district pursuant to this section, that territory shall be subject
to taxation, in accordance with the assessable valuation of the
property in that territory for general district purposes and for
payment of any indebtedness previously or thereafter incurred by
the district.

begin delete SEC. 3. end delete
begin insert SEC. 4. end insert   

Section 102053 of the Public Utilities Code is amended
to read:

102053.  

The district may operate and exercise the powers under
this part within any city, provided that the district shall have no
power to levy an ad valorem property tax within the boundaries
of any city that is not within the boundaries of the district as
defined in Section 102052.5.

begin delete SEC. 4. end delete
begin insert SEC. 5. end insert   

Section 102054 of the Public Utilities Code is amended
to read:

102054.  

The district may operate and exercise the powers under
this part within all or a part of the unincorporated area of any
county, provided that the district shall have no power to levy an
ad valorem property tax within the unincorporated area that is not
within the boundaries of the district as defined in Section 102052.5.

begin delete SEC. 5. end delete
begin insert SEC. 6. end insert   

Section 102055 of the Public Utilities Code is repealed.

begin delete SEC. 6. end delete
begin insert SEC. 7. end insert   

Section 102055 is added to the Public Utilities Code,
to read:

102055.  

(a) Any city or county listed in Section 102051 may
be annexed to the district in the manner provided in this begin delete section,
and if the annexation is successful, the city or county, as the case
may be, shall be entitled to one member on the district’s board of
directors. end delete begin insert section. end insert

(b) The legislative body of the city or county proposed to be
annexed shall agree in writing with the board of directors upon
the terms and conditions of annexation, which agreement, among
other things, may provide for the levy and collection of special
taxes within the city or unincorporated area of the county in
addition to the taxes otherwise provided for in this part; the fixing
of rates, rentals, and charges differing from those fixed or existing
elsewhere within the district; the incurring or assumption of
indebtedness; the making of a payment or payments; or the transfer
of property, real and personal, and other assets to the district by
the city or county.

begin delete SEC. 7. end delete
begin insert SEC. 8. end insert   

Section 102056 is added to the Public Utilities Code,
to read:

102056.  

(a) Territory within the district may be detached from
the district by a supermajority vote of the board of directors, which
shall be at least 80 percent of the nonweighted vote of the existing
board, provided that the detached territory shall not be relieved
from liability for taxation for the payment of any bonded
indebtedness existing at the time of detachment, and provided that
all other pending legal and financial obligations have been resolved
by mutual agreement.

(b) The detachment of territory from the district shall become
effective upon giving of the notice required in Section 57204 of
the Government Code.

(c) Notice of the detachment of territory from the district shall
be given to each assessor whose roll is used for a tax levy made
pursuant to this part and to the State Board of Equalization pursuant
to Chapter 8 (commencing with Section 54900) of Part 1 of
Division 2 of Title 5 of the Government Code.