BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 1472 (Mendoza) - Los Angeles County Metropolitan Transportation Authority ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: April 11, 2016 |Policy Vote: T. & H. 6 - 3 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 23, 2016 |Consultant: Mark McKenzie | | | | ----------------------------------------------------------------- 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 SB 1472 (Mendoza) Page 1 of ? 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. SB 1472 (Mendoza) Page 2 of ? 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 SB 1472 (Mendoza) Page 3 of ? 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. -- END --