BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 277
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 277 (Ammiano)
          As Amended  May 11, 2009
          Majority vote 

           LOCAL GOVERNMENT    5-2                                         
           
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          |Ayes:|Caballero, Arambula,      |     |                          |
          |     |Davis, Krekorian, Skinner |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Knight, Duvall            |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 

           SUMMARY  :  Provides that the San Francisco County Transportation  
          Authority (SFCTA) shall consist of the members who are elected  
          officials as specified in the county transportation expenditure  
          plan.  Deletes the option of specifying SFCTA membership in the  
          retail transactions and use tax ordinance.

          EXISTING LAW  :
           
           1)Specifies that SFCTA shall consist of the members who are  
            elected officials as specified in the county transportation  
            expenditure plan or in the retail transactions and use tax  
            ordinance, and shall be appointed by each constituent local  
            government within 45 days after the authority is created.

          2)Authorizes, under the Bay Area County Traffic and  
            Transportation Funding Act, each 
          of the nine counties in the San Francisco Bay Area to impose a  
            one-half or one percent sales tax for transportation purposes,  
            subject to voter approval.

          3)Provides for the establishment of a county transportation  
            authority in each Bay Area county imposing a sales tax for  
            transportation purposes.

          4)Requires the development of a county transportation  
            expenditure plan in each Bay Area county imposing a sales tax  
            for transportation purposes.









                                                                  AB 277
                                                                  Page  2


           FISCAL EFFECT  :  Unknown

           COMMENTS  :  The membership of SFCTA is specified in the Public  
          Utilities Code.  Existing law requires that the membership of  
          SFCTA be specified either in the county transportation  
          expenditure plan or in the retail transactions and use tax  
          ordinance.  This bill deletes the option for the membership to  
          be specified in the retail transactions and use tax ordinance.

          SFCTA notes that their governing board "consists of the eleven  
          members of the San Francisco Board of Supervisors, sitting as  
          commissioners of the Authority.  The Authority Board is not a  
          City Commission.  The Authority is a separate legal entity from  
          the City and County of San Francisco, created under state law.   
          The Authority Board has three standing committees and one  
          special-purpose select committee.  The Board members elect a  
          chairperson every January.  The Chairperson appoints the members  
          and chairpersons of the committees and serves as ex-officio  
          member of the committees."

          In 2003, voters in the City and County of San Francisco approved  
          Proposition K, a measure pertaining to the local transportation  
          sales tax.  Proposition K:  1) authorized implementation of a  
          new expenditure plan for allocating transportation sales tax  
          revenues over the next 
          30 years; 2) extended the duration of the existing one-half  
          percent sales tax through that time period; 3) continued the  
          existence of SFCTA as the administering agency of the tax and as  
          the project oversight agency; 4) authorized the issuance of  
          bonds against the projected revenues; 5) prohibited using the  
          sales tax revenues as a substitute for property tax revenues for  
          existing programs; and, 6) made related financial and technical  
          changes.

          Included in Proposition K was authorization to spend the sales  
          tax funds outside the county, provided that there is a  
          quantifiable benefit to San Francisco and that the proposed  
          expense 
          is matched by funding from the other county where the  
          expenditure is proposed to be made.  Current law at that time,  
          however, only authorized San Mateo County to make an  
          out-of-county expenditure.  San Francisco and the other Bay Area  
          counties did not have this authority in statute.









                                                                  AB 277
                                                                  Page  3


          SB 987 (Migden), Chapter 83, Statutes of 2005, supported by  
          SFCTA, made several changes to SFCTA's "enabling statutes" to  
          clarify and align state law with Proposition K.  SB 987 also  
          included an alternative means of designating membership on the  
          SFCTA board, through designation in the retail transactions and  
          use tax ordinance.  

          According to SFCTA, the sponsor of this bill, in 2008 the SFCTA  
          board developed a slate of measures intended for the November  
          ballot.  A separate slate of measures was developed to oppose  
          changes to city ordinances, and one of those measures,  
          Proposition P, would have radically changed the composition of  
          the SFCTA Board by using the alternative approach set forward by  
          SB 987 - through designation of the new board membership in the  
          retail transactions and use tax ordinance.  

          Proposition P would have changed SFCTA's board membership to  
          include the mayor, the President of the Board of Supervisors,  
          the Treasurer, one elected city official selected by 
          the mayor, and one elected city official selected by the  
          President of the Board of Supervisors.  The Mayor of San  
          Francisco was listed in the ballot pamphlet as a proponent of  
          Proposition P, and all 11 supervisors were listed as opponents.   
          The state legislators representing San Francisco were also  
          listed in opposition.

          The author and sponsor note that Proposition P failed 67% to  
          32%, "reaffirming voters' position that the existing Board  
          structure that has been in place since the 1980s is the  
          preferred composition."

           
          Analysis Prepared by  :    Debbie Michel / L. GOV. / (916)  
          319-3958 


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