BILL ANALYSIS                                                                                                                                                                                                    






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: AB 277
          SENATOR ALAN LOWENTHAL, CHAIRMAN               AUTHOR:  ammiano
                                                         VERSION: 5/11/09
          Analysis by: Art Bauer                         FISCAL:  no
          Hearing date: June 16, 2009






          SUBJECT:

          Local sales and use transaction tax: Bay Area

          DESCRIPTION:

          This bill specifies how the governing board of transportation  
          agency using the Bay Area County Traffic and Transportation  
          Funding Act will be designated. 

          ANALYSIS:

          The Bay Area County Traffic and Transportation Funding Act  
          establishes procedures for the formation of a county  
          transportation authority when pursuing the imposition of a voter  
          approved transportation sales tax. This procedure applies to the  
          nine counties that comprise the San Francisco Bay Area. 

          Existing law: 

                 Establishes a procedure for counties in the Bay Area to  
               place a transportation sales tax ordinance before the  
               voters. Included in the materials made available to the  
               voters is an expenditure plan describing how the sale tax  
               revenues will be used.
             
                 Specifies that a county in the Bay Area may establish a  
               county transportation authority by stating the members of  
               the authority in the expenditure plan or in the sales tax  
               ordinance that is placed before the voters for approval.  
               The members of the authority are then appointed by each  
               city council and the board of supervisor within 45 days  
               after the authority is created. Each local city in a county  
               and the county board of supervisors shall appoint.  





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           This bill  deletes the option of specifying the members of a  
          transportation authority in the sales tax ordinance and limits  
          the identification of the authority members to the expenditure  
          plan. 

          COMMENTS: 

              1.   Background  . There are three statutory schemes for  
               placing a local transportation sales tax on the ballot. A  
               county may seek specific legislation establishing the sales  
               tax agency and authoring it to place a sales tax ordinance  
               on the ballot. This approach was used at the outset of the  
               sales tax program when Santa Clara County obtained  
               authorization to create a sales agency and seek voter  
               approval for a sales tax. The second scheme is general  
               legislative authorization to organize a local agency to  
               seek a sales tax. This approach is used by most counties.  
               Lastly, there is a general authorization which applies  
               exclusively to the nine county Bay Area, The Bay Area  
               County Traffic and Transportation Funding Act. Only one  
               county, the City and County of San Francisco, has taken  
               advantage of this act. The other counties have had specific  
               legislation enacted or have taken advantage of the general  
               enabling statute. 

               SB 987 (Migden), Chapter 83, Statutes of 2005, made several  
               changes to the County Traffic and Transportation Funding  
               Act. Among the changes was a provision that the governing  
               board of the sales tax authority to be identified either in  
               the expenditure plan or in the sales tax ordinance that is  
               placed before the voters. Prior to SB 987, authority  
               membership was identified only n the expenditure plan.

               In 2008, a slate of proposed changes to city sales tax  
               ordinances was on the November ballot in San Francisco. One  
               of these measures, Proposition P, would have radically  
               changed the composition of the San Francisco County  
               Transportation Authority (SFCTA) governing board by taking  
               advantage of the provision in SB 987 allowing the sales tax  
               ordinance to specify the composition of the governing  
               board.  If approved, Proposition P would have changed the  
               current composition of the Board from, the 11 county  
               supervisors, to just five members:  San Francisco Mayor,  
               President of San Francisco Board of Supervisors, San  
               Francisco Treasurer, one elected official appointed by the  
               San Francisco Mayor, and one elected official appointed by  




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               the President of the San Francisco Board of Supervisors.  
               Additionally, the Proposition would have urged the SFCTA to  
               change its staffing model, which previously relied on a  
               small staff supplemented with contract consultants, to  
               greater reliance on existing city/county agency staff.  
               Accordingly, several board members formed an opposition  
               campaign, and prevailed, defeating Proposition P 67 percent  
               opposed to 32 percent in support.

              2.   Purpose  . This bill restores the requirement that the  
               board members of a local transportation authority  
               established by the County Traffic and Transportation  
               Funding Act be identified only in the expenditure plan. 

          Assembly Votes:
               Floor:                            50-29
               Local Gov:                            5-2

          POSITIONS:  (Communicated to the Committee before noon on  
          Wednesday, 
                     June 10, 2009)

               SUPPORT:  San Francisco County Transportation Authority  
          (Sponsor)
                         Contra Costa Transportation Authority
                         Self-Help Coalition
               
               OPPOSED:  None received.