BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 951 (McGuire) - Transportation: Golden State Patriot Passes Program ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: April 26, 2016 |Policy Vote: T. & H. 10 - 0, | | | E.Q. 7 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 9, 2016 |Consultant: Mark McKenzie | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: SB 951 would establish the Golden State Patriot Passes Program as a pilot program and require the Department of Transportation (Caltrans) to select three transit operators to provide free transit services to veterans until January 1, 2022, as specified. Fiscal Impact: Annual program costs of up to $3 million from 2017-18 through 2020-21. (General Fund or unspecified special funds) Caltrans costs of approximately $100,000 annually for one limited-term PY of staff to develop and administer the pilot program through 2020-21, and prepare the required report. (State Highway Account) SB 951 (McGuire) Page 1 of ? Background: Many transit agencies in California provide free or reduced fare transit passes to certain riders. For example, the San Francisco Muni offers free access to low and moderate income youth, Sacramento Regional Transit offers students a 50% discounted fare for monthly passes, and the Los Angeles County Metropolitan Transportation Authority offers reduced fares for both K-12 and college students, and has a partnership with the University of California Los Angeles (UCLA) and the University of Southern California (USC) to provide free passes for their students. Sonoma County established a pilot program on January 1, 2015 to provide veterans free use of Sonoma County Transit. Under the program, a veteran with a U.S. Department of Veterans Affairs (VA) identification card or a Sonoma County Veterans identification card can ride the bus for free, and the county reimburses Sonoma County Transit for the lost fare revenues. The county board of supervisors recently voted unanimously to make the program permanent as of January 1, 2016. Proposed Law: SB 951 would require Caltrans to administer the Golden State Patriot Passes Program as a pilot project to provide free access to transit services and increase veteran mobility. Caltrans would develop guidelines for the program and select three transit operators by January 1, 2018 from urban, suburban, and rural areas, respectively, to participate in the program. Transit operators that provide free transit service to veterans are not eligible to participate in the pilot. To qualify for free transit service from participating operators, a veteran must show a veterans identification card issued by a veterans service organization, or a driver's license or identification card issued by the Department of Motor Vehicles that identifies the holder as a veteran. The bill specifies maximum state allocations of up to $2 million per fiscal year for an urban transit operator, up to $900,000 per year for a suburban transit operator, and up to $100,000 per year for a rural transit operator. Participating transit operators must provide a 1:1 match of state funds from local moneys available for purposes consistent with the program. SB 951 (McGuire) Page 2 of ? SB 951 requires participating transit operators to submit a report to Caltrans on cost, use of moneys, and ridership by February 1, 2021, and requires Caltrans to submit a report on the pilot program to the Legislature by August 1, 2021. The program would sunset on January 1, 2022. Staff Comments: The current version of the bill does not identify a funding source, but establishes maximum allocations totaling $3 million to the three participating transit operators. State funds for transit purposes from the State Transit Assistance fund are generally allocated to transit operators based on statutory formulas. In addition, the Low Carbon Transit Operations Program provides continuously appropriated moneys from the Greenhouse Gas Reduction Fund to transit operators for capital and operations expenditures that reduce greenhouse gas emissions. SB 951 would essentially provide an operating subsidy (in conjunction with local matching funds) to offset reductions in farebox revenues by providing free transit to veterans under the pilot program. Ultimately, state funding for the program may require a General Fund budget appropriation. -- END --