BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 906


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          906 (Cooper)


          As Amended  July 16, 2015


          Majority vote


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          |ASSEMBLY:  |      | (June 2,      |SENATE: |38-0  | (August 24,     |
          |           |57-17 |2015)          |        |      |2015)            |
          |           |      |               |        |      |                 |
          |           |      |               |        |      |                 |
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          Original Committee Reference:  L. GOV.




          SUMMARY:  Deletes the proportionate share payment in existing  
          law that the City of Elk Grove must fulfill to maintain an  
          appointment of a director to Sacramento Regional Transit  
          District's (RT) Board of Directors.  


          The Senate amendments delete the Assembly version of this bill,  
          and instead, repeal the proportionate share payment in existing  
          law that the City of Elk Grove must fulfill to maintain an  
          appointment of a director to RT's Board of Directors.  


          EXISTING LAW:   


          1)Establishes the Sacramento Regional Transit District Act which  








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            governs the powers and functions of RT, and establishes RT's  
            territory and board of directors (Board).  


          2)Authorizes RT to comprise of the Cities of Citrus Heights, Elk  
            Grove, Davis, Folsom, Rancho Cordova, Roseville, Sacramento,  
            West Sacramento, and Woodland, and specified territory in  
            Sacramento and Yolo Counties to the extent they are not  
            included in the above-mentioned cities.  


          3)Provides any city or county may annex to and become part of  
            RT, upon approval by the Board, following a written request by  
            that city or county and approval of the Sacramento Area  
            Council of Governments.  


          4)Authorizes a city or county that is not annexed to RT to  
            become a participating entity entitled to make at least one  
            appointment to the Board, if the participating entity enters  
            into an agreement with RT that provides for all of the  
            following:


             a)   The participating entity agrees to pay its proportionate  
               share of RT's cost to provide rail or other districtwide  
               transit services;  


             b)   RT agrees to maintain a specified level of rail or other  
               districtwide transit services; and,


             c)   RT is not obligated to provide transit services to any  
               particular location or along any particular route.  


          5)Requires the City of Elk Grove's proportionate share, for the  
            purposes of 4) above, to be determined in the manner provided  
            in First Amendment, Section 4B(2) to Interim Agreement for Elk  
            Grove Bus Service, dated March 17, 2004, between RT and Elk  
            Grove.  








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          6)Provides that a participating entity's seat on the Board shall  
            terminate upon termination or cancellation of the agreement in  
            4) above.  


          7)Establishes a weighted voting procedure for RT's Board.  


          8)Defines a member entity to mean a city or county that is  
            annexed to RT pursuant to 2) and 3), above.  


          9)Defines a participating entity to mean a city or county that  
            is not annexed to RT, but has entered into a specified  
            agreement pursuant to 4) above.  




          AS PASSED BY THE ASSEMBLY, this bill:  


          1)Made changes to the proportionate share payment in existing  
            law that the City of Elk Grove must fulfill to become a  
            participating entity and maintain a seat on RT's governing  
            body.  


          2)Required the proportionate share for the City of Elk Grove to  
            be deemed fully satisfied through RT's receipt from the  
            Sacramento Transportation Authority of transaction and use tax  
            revenues from Measure A, as approved by the voters in November  
            2004, and effective as of April 2009.  


          3)Repealed existing law, which requires the City of Elk Grove's  
            proportionate share to be determined in the manner provided in  
            First Amendment, Section 4B(2) to Interim Agreement for Elk  
            Grove Bus Service, dated March 17, 2004, between RT and Elk  
            Grove.  








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          4)Provided that no further agreement between the City of Elk  
            Grove and RT is required. 


          FISCAL EFFECT:  None


          COMMENTS:   


          1)RT.  The Legislature authorized the creation of the Sacramento  
            Regional Transit District in 1971 to operate a comprehensive  
            public transportation system for the Sacramento region.  RT  
            serves an area encompassing 418 square miles and 1.4 million  
            people; it operates 67 bus routes and 38.6 miles of light rail  
            service.  RT is governed by an 11-member Board of Directors  
            comprised of eight directors that are appointed by the annexed  
            jurisdictions, which are "member entities," including  
            Sacramento County, and the Cities of Sacramento and Rancho  
            Cordova.  Additionally, three directors are appointed by  
            non-annexed jurisdictions, which are "participating entities,"  
            including the Cities of Citrus Heights, Elk Grove, and Folsom.  
             


          2)City of Elk Grove.  The City of Elk Grove incorporated as a  
            city in 2001; prior to that time, RT provided transit services  
            to areas within Sacramento County that were included within  
            Elk Grove's boundaries.  Following incorporation, Elk Grove  
            opted to not activate membership as an annexed part of RT, and  
            instead, entered into a service agreement, from 2001 to 2004,  
            so that RT would continue providing transit services.  Upon  
            further study, Elk Grove decided to operate its own bus  
            service within the city and to contract with RT for regional  
            transit services.  


            RT's enabling act did not allow Elk Grove to have a seat on  
            the Board, therefore, SB 466 (Steinberg), Chapter 620,  
            Statutes of 2004, made several changes to RT's governance  








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            structure.  SB 466 enabled Elk Grove to have a seat on the  
            Board to vote on regional matters and allowed RT to recover  
            operating costs from providing regional transit services to  
            Elk Grove.  SB 466 required that the City of Elk Grove's  
            proportionate share be determined by First Amendment, Section  
            4B (2) to Interim Agreement for Elk Grove Bus Service, dated  
            March 17, 2004, an agreement that RT and Elk Grove entered  
            into.  


            AB 2137 (Niello), Chapter 227, Statutes of 2008, created a  
            weighted voting system for RT based on membership status and  
            each voting entity's financial contribution.  AB 2137 was  
            supported by RT, Elk Grove, and several other cities,  
            including both member and participating entities.  


          3)Bill Summary.  Current law allows a city or county that is not  
            annexed to RT to have a seat on RT's Board, if they enter into  
            a specified agreement with RT to pay their proportional share  
            of RT's costs to provide rail or other districtwide transit  
            services.  Additionally, existing law requires that Elk  
            Grove's proportionate share is determined in the manner  
            provided by an Interim Agreement between the City of Elk Grove  
            and RT.  This bill deletes the reference to the interim  
            agreement, and therefore, subjects the City of Elk Grove to  
            the provisions under existing law that require a city to enter  
            into a specified agreement with RT to pay a proportional  
            share.  


            This bill is sponsored by the City of Elk Grove.  


          4)Arguments in Support.  Elk Grove argues, "Existing law  
            requires the City of Elk Grove to pay twice in order to have  
            one seat on the RT Board by having the City pay a  
            proportionate share payment determined solely by RT."  


          5)Arguments in Opposition.  None on file.  









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          Analysis Prepared by:                                             
                          Misa Lennox / L. GOV. / (916) 319-3958  FN:  
          0001305