BILL ANALYSIS                                                                                                                                                                                                    Ó



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

          SB 1472 (Mendoza) - Los Angeles County Metropolitan  
          Transportation Authority
          
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          |Version: April 11, 2016         |Policy Vote: T. & H. 6 - 3      |
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          |Urgency: No                     |Mandate: Yes                    |
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          |Hearing Date: May 23, 2016      |Consultant: Mark McKenzie       |
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          This bill does not meet the criteria for referral to the  
          Suspense File.



          Bill  
          Summary:  AB 1472 would add two appointed members to the Los  
          Angeles Metropolitan Transportation Authority (MTA) governing  
          board, as specified.


          Fiscal  
          Impact:  Unknown local costs, some of which may be reimbursable  
          by the state General Fund.  Potentially reimbursable costs are  
          not likely to exceed $50,000 in a given year.  If MTA were to  
          submit a reimbursement claim, actual costs would depend upon a  
          determination by the Commission on State Mandates (Commission)  
          regarding what expenses incurred by MTA are deemed to be subject  
          to state reimbursement.  See staff comments.


          Background:  Existing law provides for the creation of county  







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          transportation commissions in the Counties of Los Angeles,  
          Orange, Riverside, San Bernardino, and Ventura, and vests the  
          commissions with various powers and duties relative to  
          transportation planning and funding.  The MTA was established in  
          1992 as the successor agency to the Southern California Rapid  
          Transit District and the Los Angeles County Transportation  
          Commission to consolidate transportation services and functions  
          in the county, including transportation planning, bus and rail  
          transit services, capital construction, and administering local  
          transportation sales tax measures.
          The MTA governing board consists of the following 14 members,  
          each of whom serves four-year terms, except as specified:


           Five members of the Los Angeles County Board of Supervisors.
           The Mayor of the City of Los Angeles.
           Two public members appointed by the Mayor of Los Angeles.
           One Los Angeles City Council member appointed by the Mayor.
           Four members selected by the Los Angeles County City Selection  
            Committee, as specified.
           One non-voting member appointed by the Governor.


          The four City Selection Committee members are mayors or city  
          council members selected from each of the following four regions  
          of the county, excluding the City of Los Angeles: (1) North  
          County/San Fernando Valley; (2) Southwest Corridor; (3) San  
          Gabriel Valley; and (4) Southeast Long Beach.  Every city in  
          each of the four regions is entitled to vote to nominate one or  
          more candidates from that region for consideration by the City  
          Selection Committee.  A city's vote is weighted in proportion to  
          its population relative to the populations of all cities in the  
          region.


          The membership of county transportation agencies' governing  
          boards in the state varies: Los Angeles County (14 members),  
          Orange County (18 members), Riverside County (36 members), San  
          Bernardino County (31 members), San Diego (23 members), and  
          Ventura County (18 members).  The composition of those boards  
          varies as well; all have some representation by the board of  
          supervisors and non-voting Governor appointees, while city  
          representation varies, with some having representation by each  
          city in the county.








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          Proposed Law:  
            SB 1472 would expand the MTA governing board from 14 to 16  
          members, and require the two new members to reside in Los  
          Angeles County, but not in the same city as another member at  
          the time of the appointment.  The new board members would be  
          appointed by the Speaker of the Assembly and the Senate Rules  
          Committee, respectively.


          Staff  
          Comments:  This bill would expand the size of the MTA board in  
          an attempt to diversify representation by ensuring the new board  
          members are not from cities that are currently represented on  
          the board.  Specifically, SB 1472 would expand the size of MTA's  
          board of directors from 14 to 16 members, and require the two  
          new board members to be appointed by the Speaker of the Assembly  
          and Senate Rules Committee, respectively.  The MTA indicates  
          that it expects to incur annual expenses related to each new  
          board member for per diem compensation, reimbursements for  
          actual and necessary expenses incurred by each board member,  
          partial funding for staff of the new board members, as well as  
          additional administrative costs for enforcing ethics provisions  
          and potential one-time costs to reconfigure board room space to  
          accommodate the new members.
          Under the mandate determination process, local governments may  
          file test claims with the Commission on State Mandates alleging  
          that statutes, regulations, and executive orders impose new  
          programs or increased levels of service upon local entities.   
          The Commission primarily relies on Article XIII of the  
          California Constitution and related case law to make  
          determinations.  Reimbursement is required under Article XIII B,  
          section 6 only when the local agency is subject to  
          constitutional tax and spend limitations.  An eligible local  
          agency may file a test claim if mandated costs exceed $1,000.  


          To the extent the MTA files a test claim alleging that SB 1472  
          imposes a higher level of service, and the Commission on State  
          Mandates finds that MTA is an eligible claimant and determines  
          that certain costs are subject to state reimbursement, this bill  








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          could result in state General Fund costs.  Staff notes that some  
          of the costs cited by MTA above are not likely to be found  
          reimbursable since they are not mandated in statute.  The  
          imposition of additional costs alone is not grounds for  
          reimbursement. The California Supreme Court has opined that  
          "simply because a state law or order may increase the costs  
          borne by local government in providing services, this does not  
          necessarily establish that the law or order constitutes an  
          increased or higher level of the resulting service to the public  
          under article XIII B, section 6, and Government Code section  
          17514."  (San Diego Unified School Dist. v. Commission on State  
          Mandates (2004) 33 Cal.4th 859, 877).  Staff estimates any  
          reimbursable costs would be minor.  Actual costs would be  
          dependent upon what the Commission determines are eligible  
          mandated costs subject to reimbursement, if MTA files a  
          successful claim.




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