BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 951 (McGuire) - Transportation:  Golden State Patriot Passes  
          Program
          
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          |Version: April 26, 2016         |Policy Vote: T. & H. 10 - 0,    |
          |                                |          E.Q. 7 - 0            |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: May 9, 2016       |Consultant: Mark McKenzie       |
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          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  
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          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  
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          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.


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