BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1078
                                                                  Page  1

          Date of Hearing:  August 26, 2010

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                               Bonnie Lowenthal, Chair
                    AB 1078 (Feuer) - As Amended:  August 5, 2010
           
          SUBJECT  :  Los Angles County Metropolitan Transportation  
          Authority:  Measure R reporting requirements

           SUMMARY  :  Modifies reporting requirements related to Los Angeles  
          County's Measure R expenditure plan.  Specifically,  this bill:
           
          1)Requires the Los Angeles County Metropolitan Transportation  
            Authority (Metro) to notify Los Angeles County members of the  
            Legislature one year in advance of any delay in the  
            availability of Measure R funds or project schedules (rather  
            than require one-year notice for any change.)  

          2)Requires Metro also to notify Los Angeles County legislative  
            representatives, in writing, of proposed amendments to the  
            expenditure plan that would accelerate funding for any capital  
            project but does not require the one-year advance notice.  

          3)Provides that these provisions should take effect immediately  
            as an urgency statute.  

           EXISTING LAW  :  

          1)Authorizes Metro to impose, upon approval of voters, a  
            half-cent transactions and use tax for up to 30 years to fund  
            specific transportation projects and programs pursuant to an  
            adopted expenditure plan.  

          2)Requires Metro to notify members of the Legislature  
            representing the County of Los Angeles when certain amendments  
            are proposed to an adopted expenditure plan, including  
            amendments that affect the availability of Measure R funds or  
            project schedules.  

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  AB 2321 (Feuer, Chapter 302, Statutes of 2008)  
          provided Metro the authority to place Measure R on the ballot in  
          Los Angeles County.  AB 2321 set forth provisions to govern  
          Measure R, including requirements for an expenditure plan,  








                                                                  AB 1078
                                                                  Page  2

          allocation of certain minimum dollar amounts to specific  
          projects, and notification requirements upon specific changes to  
          the expenditure plan and/or project schedules.  

          Metro is sponsoring this bill to facilitate implementation of  
          its "30/10 Initiative," an effort to accelerate completion of  
          Measure R projects.  The 30/10 Initiative will use long-term  
          revenue from the Measure R sales tax as collateral for long-term  
          bonds and a federal loan.  This will allow Metro to build 12 key  
          mass transit projects in 10 years, rather than in 30 years.  
          According to Metro, accelerating construction of these key Metro  
          projects will result in substantial cost savings.  Furthermore,  
          successful implementation of the 30/10 Initiative is expected to  
          deliver immediate benefits like hundreds of thousands of jobs to  
          improve the local economy, reduce greenhouse emissions, and ease  
          traffic congestion. 

          AB 1078 will streamline implementation of the 30/10 Initiative  
          by modifying the legislative notice requirement.  Metro will  
          continue to have to notify the Legislature one year in advance  
          if it proposes to delay the funding allocated to any of the  
          projects or if project schedules will be delayed.
          
           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Los Angeles County Metropolitan Transportation Authority (Metro)

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Janet Dawson / TRANS. / (916) 319-2093