BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1778
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          Date of Hearing:   April 9, 2012

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                               Bonnie Lowenthal, Chair
                   AB 1778 (Williams) - As Amended:  March 28, 2012
           
          SUBJECT  :  Local Transportation Funds:  Ventura County

           SUMMARY :  Moves up the date, from July 1, 2014, to July 1, 2013, 
          after which Local Transportation Fund (LTF) funds in Ventura 
          County will be available only for public transportation and 
          community transit services, and not for other purposes such as 
          for local streets and roads.  

           EXISTING LAW:  

           1)Earmarks 0.25% of the state sales tax for transit and directs 
            the revenue to the LTF in each county.  

          2)Vests regional transportation planning agencies (RTPAs) with 
            the responsibility to allocate LTF funds, generally to cities, 
            counties, and transit districts by population.  

          3)Authorizes the use of LTF funds for a wide variety of 
            transportation programs, including planning and program 
            activities, pedestrian and bicycle facilities, community 
            transit services, public transportation, bus and rail 
            projects, and farm worker vanpools program.  

          4)Authorizes rural counties (those with a population under 
            500,000) to use their LTF funds for purposes other than public 
            transportation and community transit services, such as local 
            streets and roads, under certain conditions.  

          5)Provides that, before funds can be used for local streets and 
            roads, the RTPA in a rural county must hold public hearings 
            and make a finding that all reasonable transit needs have been 
            met.  

          6)Generally requires each county with a population of less than 
            500,000 as of the 1970 federal census but more than 500,000 as 
            of the 2000 (or subsequent) federal census to use its LTF 
            funds for transit.  

          7)Provides that, for counties that would be impacted by this 








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            change from rural to urban due to population growth since 
            1970, the requirement to use LTF funds for public 
            transportation and community transit services will not become 
            operative until July 1, 2014.  

          8)Also provides for these counties, except Ventura County, that 
            the requirement to use LTF funds for public transportation and 
            community transit services applies to urbanized areas of a 
            county, not the necessarily the entire county.  LTF funds can 
            be used in non-urbanized areas in these counties for local 
            streets and roads, provided that there are no unmet transit 
            needs in the area.  



          9)Provides that the Ventura County Transportation Commission 
            (VCTC) may submit to the legislative policy committees a 
            report analyzing options for organizing public mass 
            transportation services in Ventura County and expending LTF 
            revenues.  VCTC may also submit a legislative proposal to 
            implement a plan based on recommendations of the report.  

          10)Provides that, if VCTC does not secure legislation to 
            implement its proposed plan by the end of the 2011-12 
            legislative session, its LTF revenues would be available 
            solely for public transportation or community transit 
            services, even in the county's rural areas, beginning July 1, 
            2014.  

           FISCAL EFFECT  :  Unknown

           COMMENTS:   In 2009, SB 716 (Wolk), Chapter 609, Statutes of 
          2009, updated counties' designation as either rural or urban for 
          purposes of using LTF funds, based on the 2000 census rather 
          than the 1970 census.  For those counties whose designation 
          changed, SB 716 provided a sort of hybrid use of the LTF 
          funds-urban cities within the county would be required to use 
          LTF funds for public transportation or community transit 
          services and rural areas of the county could continue to use LTF 
          funds for other purposes, assuming certain conditions were met.  
          The operative date of these changes was postponed until July 1, 
          2014, to give the counties an opportunity to adjust to the new 
          LTF requirements.  

          SB 716, however, set forth unique provisions for Ventura County, 








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          one of the counties whose designation changed from rural to 
          urban.  For Ventura County, SB 716 provided an opportunity for 
          Ventura County Transportation Commission (VCTC) to submit a plan 
          to the Legislature (and to secure subsequent legislation) that 
          would set forth an alternative means of distributing LTF funds 
          throughout the county.  VCTC had until December 31, 2011, to 
          submit the plan and until the end of the 2011-12 Regular Session 
          to secure subsequent legislation otherwise all of the county's 
          LTF would be directed to public transportation or community 
          transit service as of July 1, 2014.  

          According to the author, VCTC had two years to submit the plan 
          and failed to do so.  Consequently, the author has introduced 
          this bill to move up the date by one year after which all of the 
          county's LTF will have to be used for public transportation and 
          community transit services.  The author asserts that Ventura 
          County is an urban county (its population is over 800,000) and 
          that many transit-dependent people are not being served because 
          of the current diversion of these funds.  

          There are 10 cities within Ventura County, 4 of which exceed a 
          population of 100,000, according to 2010 data.  The other 6 
          cities have populations well below 100,000.  Under SB 716, all 
          Ventura's cities, large or small, will be required to use their 
          LTF funds for public transportation and community transit 
          services as of July 1, 2014 (unlike the other counties whose 
          population grew over 500,000 after 1970 who will have the option 
          to use LTF funds for purposes other than public transportation 
          and community transit services in rural areas of the county).  

          At least three of Ventura's smaller cities (Moorpark, Port 
          Hueneme, and Santa Paula) are reportedly planning on using their 
          LTF funds (totaling approximately $1.2 million cumulatively) for 
          local street and roads projects in Fiscal Year 2013-2014.  
          Additionally, Simi Valley, which uses its local General Funds to 
          fund its transit activities, typically uses it's approximately 
          $3 million annually in LTF funds for streets and roads projects. 
           Under this bill, these LTF funds will no longer be available 
          for these other purposes.  

          Writing in opposition to this bill, VCTC notes that it has been 
          working since September 2010 on a comprehensive Regional Transit 
          Study to review various options to potentially reorganize public 
          transportation services in Ventura County.  The commission is 
          expected to adopt a final report at its April 13, 2012, meeting. 








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            Consequently, VCTC believes AB 1778 is premature at this time. 
           The City of Simi Valley, also in opposition to this bill, 
          further argues that the bill "seeks to create an artificial 
          urgency that is not needed since transit providers in Ventura 
          County, who are the most knowledgeable about meeting riders' 
          needs, are well underway in crafting a transit plan that 
          addresses countywide needs."  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Ormond Beach Observers

           Opposition 
           
          City of Simi Valley
          Ventura County Transportation Commission
           

          Analysis Prepared by  :  Janet Dawson / TRANS. / (916) 319-2093