BILL ANALYSIS Ó
AB 2222
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Date of Hearing: April 11, 2016
ASSEMBLY COMMITTEE ON TRANSPORTATION
Jim Frazier, Chair
AB 2222
(Holden) - As Amended April 6, 2016
SUBJECT: Transit passes
SUMMARY: Continuously appropriates $50 million per year from
the Greenhouse Gas Reduction Fund (GGRF) for a Transit Pass
Program to be administered by the California Department of
Transportation (Caltrans) to provide free or reduced cost
transit passes to students. Specifically, this bill:
1)Makes finding and declarations that increasing the use of
public transportation is a vital component to reducing
greenhouse gas emissions in California, and student transit
pass programs have been shown to increase transit ridership.
2)Continuously appropriates $50 million annually, beginning in
2016-17, from the GGRF to be allocated to eligible transit
providers for the Transit Pass Program.
3)Creates the Transit Pass Program to be administered by
Caltrans to support local transit pass programs that provide
free or reduced fare transit passes to students from K-12
public schools, community colleges, the California State
University (CSU) and the University of California (UC).
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4)Defines eligible participants as a public agency, (including a
transit operator), school districts, community college
districts, the CSU, and the UC.
5)Defines eligible transit provider as a transportation agency,
transportation planning agency, or a county transportation
commission that receives funds from State Transit Assistance
(STA).
6)Requires Caltrans, in coordination with the Air Resources
Board (ARB), to develop guidelines and reporting requirements
for the program, including ensuring that existing transit pass
programs expend funds to expand eligibility or further reduce
the cost of the transit passes, and developing performance
measures to evaluate the effectiveness of the program.
7)Requires transit agencies and eligible participants to enter
into agreements to ensure transit passes are distributed to
students.
8)Allows funds to be expended to support new or existing transit
pass programs.
9)Allows transit agencies to give priority to applicants with an
existing transit pass program provided they can demonstrate
that the funds will further reduce the cost of the transit
pass or expand eligibility.
10)Authorizes transit pass programs can be funded from other
sources, including the Affordable Housing and Sustainable
Communities, the Low Carbon Transportation, and the Low Carbon
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Transit Operations programs (LCTOP).
11)Requires that free or reduced fare transit passes offered
under the program are counted at full retail value for the
purposes of the transit operator's eligibility for STA
funding.
12)Requires that each eligible transit agency receive a minimum
allocation of $20,000 and the remainder of the funds be
distributed based on existing STA formulas.
13)Requires that any funds that are not utilized by a transit
agency in a fiscal year be added to the allocation for the
program for the next fiscal year.
14)Requires at least 33% of the funds allocated benefit
disadvantaged communities.
EXISTING LAW:
1)Requires ARB, pursuant to AB 32 (Núñez), Chapter 488, Statutes
of 2006, to develop a plan of how to reduce statewide
greenhouse gas emissions to 1990 levels by 2020. Under AB 32,
ARB is authorized to include the use of market-based
mechanisms to comply with these regulations (cap and trade).
2)Establishes the GGRF in the State Treasury and requires all
money collected pursuant to cap and trade, with limited
exceptions, be deposited into the fund and makes the GGRF
funds available for appropriation by the Legislature.
3)Established the Affordable Housing and Sustainable
Communities, the Low Carbon Transportation, and the LCTOP
programs and continuously appropriates 60% of GGRF fund
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proceeds, beginning in the 2015-16 fiscal year, for transit,
affordable housing and sustainable communities programs, and
high-speed rail.
4)Requires, pursuant to SB 535 (de León), Chapter 830, Statutes
of 2012, that a minimum of 25% of the moneys available in GGRF
be used to benefit disadvantaged communities.
5)Provides funding for public transportation through the
Transportation Development Act (TDA), including STA which is
derived from the statewide sales tax on diesel fuel. STA
funds are appropriated by the Legislature and are allocated by
formula with 50% of being allocated according to population
and 50% being allocated according to transit operator revenues
from the prior fiscal year.
6)Requires transit operators to maintain a specified ratio of
fare revenues to operating costs in order to be eligible to
receive TDA funds.
FISCAL EFFECT: Unknown
COMMENTS: This bill would establish a transit pass program to
provide free or reduced cost transit passes to K-12, community
college and university students throughout California. The
program would be funded at $50 million per year to be
continuously appropriated from the GGRF. The program would be
administered by Caltrans and the funds would be distributed by
the Controller according to existing transit formulas. The
program structure mirrors the existing LCTOP which provides
funds from the GGRF for the expansion of transit services.
Transit agencies and schools, community colleges and CSU and UC
would be eligible for the funding. The intent of the program is
to encourage the creation of transit pass programs and to expand
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current transit pass programs, including further reducing fares
for students.
Currently, many transit agencies in California provide free or
reduced fare transit passes to students for use on their
systems. For example, the San Francisco (SF) Muni offers the
Free Muni for Youth program that gives free access to Muni to
low and moderate income youth, from five to 18 years old.
Sacramento Regional Transit also offers students from age five
to 18 a 50% discounted fare for monthly passes. The Los Angeles
County Metropolitan Transportation Authority (Metro) has been
offering reduced fares for both K-12 and college students since
the early 1990s. Specifically, Metro has programs for both
college students, with a 54% discount on a monthly pass, and a
76% discount for the K-12 program. Most of the programs require
proof of the students being registered in school; however the SF
Muni program is based upon family income level. Additionally,
transit agencies have developed agreements directly with schools
in their jurisdictions to partner and provide free or reduced
passes to all students. The University of California Los
Angeles (UCLA) and the University of Southern California (USC)
provide free passes for their students in partnership with
Metro. In the Sacramento area, the University of California at
Davis offers a variety of travel options at reduced rates for
students and faculty through their goClub.
Most transit agencies subsidize the free or reduced fare
programs as part of their existing operating budget or utilize
funding from other local or private sources. The current LCTOP,
funded from the GGRF, allows transit agencies to use funds for
transit passes. For example, in 2014-15, the Mendocino Transit
Authority used LCTOP funds to subsidize bus fares for Mendocino
college students. Additionally, $25 million in funding for
student transit passes was discussed as part of the 2015-16
state budget deliberations, but no final agreement on an overall
package was reached.
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According to the author, this bill would provide hard-working,
budget conscious students with low-cost transit passes that will
enable them to commute to and from their destination, while
providing local transportation agencies with statistically
proven source of new riders. A study conducted by UCLA found
that high-school and college students represent one of the
largest segments of "drive alone" automobile users in
California. The study found that providing free or low-cost
access to public transit significantly reduced the demand for
student parking at college campuses and that over half of
college students polled favored increasing student fees to help
fund low-cost transit programs.
In writing in support of this bill, MoveLA said that universal
"any line, any time" student transit pass programs at colleges
and universities would encourage students to make decisions
about where to live and work based on the proximity of transit,
thereby helping to create a "transit culture" in LA County - and
perhaps encouraging students to become transit riders for life.
The California State Polytechnic University, Pomona added that
many of their students are first generation college students
from families of modest means. Students currently must pay very
high parking fees and the transit pass program proposed by AB
2222 would offer students an affordable transportation
alternative and a reliable means to get to campus. They add
that encouraging student transit use could also reduce the need
for the university to spend precious resources expanding parking
facilities.
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As the state and regions continue to work toward the goal of
reducing greenhouse gas emissions, as well as cutting other
forms of air pollution, as set forth in AB 32, increasing the
mode shift from single occupant car trips to public
transportation is critical for success. Encouraging people to
learn about and feel confident using public transportation at a
young age will support this effort. The state has chosen to
expend cap and trade funds on both transit capital and operating
expenses to expand capacity to attract new riders. The program
created by this bill will allow transit agencies and schools to
build upon existing success or provide new options for travel in
their communities.
Related legislation: AB 1555 (Gomez), would appropriate $800
million from the GGRF to fund a variety of programs including
$10 million for active transportation and transit pass
investments. AB 1555 currently awaiting a hearing in the
Committee on Natural Resources.
SB 951 (McGuire), would create and appropriate $3 million
annually from the GGRF through 2020-21 for the Golden State
Patriot Passes pilot program to provide veterans with free
access to transit. SB 951 is scheduled to be heard in the
Senate Committee on Environmental Quality on April 20, 2016.
Previous Legislation: SB 862 (Committee on Budget and Fiscal
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Review), Chapter 36, Statues of 2014 created and funded the
Affordable Housing and Sustainable Communities, the Low Carbon
Transportation, and the Low Carbon Transit Operations programs.
AB 1002 (Bloom) of 2013, would have increased the tax on vehicle
registrations by $6. 40% of the revenues would have been
appropriated to transportation commissions and transit operators
to support transit operations and maintain and expand reduced
fare programs, including transit passes for students, low-income
youth, seniors, and persons with disabilities. AB 1002 failed
passage in the Committee on Local Government.
SB 535 (de León), Chapter 830, Statutes of 2012, required, among
other things, that a minimum of 25% of the moneys available in
GGRF be used to benefits disadvantaged communities.
AB 32 (Núñez), Chapter 488, Statutes of 2006, developed a plan
of how to reduce statewide greenhouse gas emission to 1990
levels by 2020.
REGISTERED SUPPORT / OPPOSITION:
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Support
TransForm (Sponsor)
American Lunch Association in California
Amigos de los Rios
Bike East Bay
Bike San Gabriel Valley
Bike SLO County
Breathe California
California Bicycle Coalition
California Federation of Teachers
California League of Conservation Voters
California Pan-Ethnic Health Network
California State University
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California Walks
CALPIRG
Catholic Charities, Diocese of Stockton
Center for Climate Change and Health
Cerritos College
Chico Velo
Coalition for Clean Air
Comite Civico del Valle
Community College League of California
Environmental Council of Sacramento
Gamaliel of California
Honorable Mark Ridley-Thomas,
Los Angeles County Board of Supervisors, Second District
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Honorable Mike Eng, Forty-Ninth Assembly District (retired),
Vice-President, Los Angeles Community College District
Inland Empire Biking Alliance
Leadership Counsel for Justice and Accountability
Livable Communities, Inc.
Los Angeles Community College District
Los Angeles County Bicycle Coalition
Los Angeles Job Corps
Los Angeles Trade-Technical College
Los Rios Community College District
Marin County Bicycle Coalition
MoveLA
Mt. San Antonio College
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Napa County Bicycle Coalition
Orthopaedic High School
Pasadena City College District
Peralta Community College District
PolicyLink
Public Advocates
Safe Routes to School National Partnership
San Diego County Bicycle Coalition
Santa Barbara Bicycle Coalition
Silicon Valley Bicycle Coalition
Trust for Public Land
Walk San Francisco
Five private citizens
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Opposition
California Chamber of Commerce
Analysis Prepared by:Melissa White / TRANS. / (916) 319-2093