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LEGISLATIVE COMMITTEE MEMORANDUM 3.1
TO: Mayor and Town Council March 26, 2024
SUBJECT: March Legislative Report
BACKGROUND
During the month of March, the Legislature continued to move through the legislative
process with first round policy committee hearings. These hearings serve as an important
benchmark for determining which proposed bills will move forward through the
legislative process and which will be amended or fail to progress. The Legislature
adjourned for Spring recess on March 21, and will return April 1. Upon return, bills will
continue to be heard in their respective houses until June 1, the last day for each house to
pass bills to the second house.
DISCUSSION
The Town’s Legislative Committee follows legislation that is identified as a priority
through the Tri-Valley Cities Coalition and by the Danville Town Council based upon
the Town’s legislative framework.
The Tri-Valley Cities Legislative Framework identifies six focus areas for the 2022 State
Legislative session including: Transportation and Infrastructure, Climate, Environment,
Health and Safety, Economic Development, Affordable Housing and Homelessness,
Mental Health, and Fiscal Sustainability. The bills and positions that are a priority for the
Tri-Valley coalition are discussed in the second half of this report.
The following bills have been identified as having an impact on Danville.
AB 2626 (Dixon) Advanced Clean Fleets regulations: local governments.
The California Global Warming Solutions Act of 2006 establishes the state board as the
state agency responsible for monitoring and regulating sources emitting greenhouse
gases and requires the state board to adopt rules and regulations to achieve the maximum
technologically feasible and cost-effective greenhouse gas emission reductions from those
sources. Pursuant to its authority, the state board has adopted the Advanced Clean Fleets
Regulation, which imposes various requirements for transitioning local, state, and federal
government fleets of medium and heavy-duty trucks, other high-priority fleets of
March Legislative Update 2 March 26, 2024
medium and heavy-duty trucks, and drayage trucks to zero-emission vehicles. This bill
would extend the compliance dates for local government set forth in the Advanced Clean
Fleets Regulation by 10 years and would prohibit the state board from taking
enforcement action against a local government for violating the Advanced Clean Fleets
Regulation if the alleged violation occurs before January 1, 2025.
Recommended Position: Support
Tri-Valley Cities Coalition
AB 1820 (Schiavo) Housing development projects: applications: fees and exactions.
This bill would authorize a development proponent that submits a preliminary
application for a housing development project to request a preliminary fee and exaction
estimate, as defined, and would require the local agency to provide the estimate within
10 business days of the submission of the preliminary application.
TVC Position: Seek Amendments
AB 2021 (Bauer-Kahan) Crimes: selling or furnishing tobacco or related products and
paraphernalia to underage persons.
Existing law prohibits the sale or furnishing of tobacco or tobacco products or
paraphernalia, as specified, to a person who is under 21 years of age. This bill would
increase existing fines from $200 to $1,000 for the first offense, $500 to $5,000 for the 2nd
offense, and $1,000 to $10,000 for the 3rd offense.
TVC Position: Support
SB 37 (Caballero) Older Adults and Adults with Disabilities Housing Stability Act.
This bill would, upon an appropriation by the Legislature for this express purpose,
require the Department of Housing and Community Development, commencing January
1, 2025, to begin developing the Older Adults and Adults with Disabilities Housing
Stability Pilot Program. The bill would require the department, in administering the
program, to offer competitive grants to nonprofit community-based organizations,
continuums of care, public housing authorities, and area agencies on aging, as specified,
to administer a housing subsidy program for older adults and adults with disabilities
who are experiencing homelessness or at risk of homelessness, as defined, in up to 5
geographic regions or counties in rural areas.
Amended bill language does not directly impact Danville or the Tir-Valley Cities, and will no
longer take a position on this bill.
TVC Position: None
SB 402 (Wahab) Involuntary commitment.
Existing law, the Lanterman-Petris-Short Act, authorizes the involuntary commitment
and treatment of persons with specified mental disorders. Under the act, when a person,
as a result of a mental health disorder, is a danger to self or others, or gravely disabled,
the person may, upon probable cause, be taken into custody by specified individuals,
March Legislative Update 3 March 26, 2024
including, among others, by peace officers and designated members of a mobile crisis
team, and placed in a facility designated by the county and approved by the State
Department of Health Care Services for up to 72 hours for evaluation and treatment. This
bill would additionally authorize a person to be taken into custody, pursuant to those
provisions, by a licensed mental health professional, as defined.
TVC Position: Support
SB 905 (Wiener) Unlawful entry of a vehicle.
This bill would make forcibly entering a vehicle, as defined, with the intent to commit a
theft therein a crime punishable by imprisonment in a county jail for a period not to
exceed one year or imprisonment in a county jail for 16 months, or 2 or 3 years. By creating
a new crime, this bill would impose a state-mandated local program.
TVC Position: Support
SB 925 (Wiener) San Francisco Bay Area: local revenue measure: transportation
improvements.
This bill would state the intent of the Legislature to enact subsequent legislation to
authorize the Metropolitan Transportation Commission to propose a revenue measure to
the voters in its jurisdiction to fund the operation, expansion, and transformation of the
San Francisco Bay area’s public transportation system, as well as other transportation
improvements. This bill was gut and amended. Amended bill language does not directly impact
Danville or the Tir-Valley Cities and will no longer take a position on this bill. TVC Position: None
SB 926 (Wahab) San Francisco Bay area: public transportation.
This bill would require the Transportation Agency to develop a plan to consolidate all
transit agencies that are located within the geographic jurisdiction of the Metropolitan
Transportation Commission. This bill was gut and amended. Amended bill language does not
directly impact Danville or the Tir-Valley Cities and will no longer take a position on this bill.
TVC Position: None
SB 1011 (Jones) Encampments: penalties.
This bill would prohibit a person from sitting, lying, sleeping, or storing, using,
maintaining, or placing personal property upon a street or sidewalk if a homeless shelter
is available to the person. The bill would also prohibit sitting, lying, sleeping, or storing,
using, maintaining, or placing personal property within 500 feet of a public or private
school, open space, or major transit stop, as specified. The bill would specify that a
violation of this prohibition is a public nuisance that can be abated and prevented, as
specified. The bill would also provide that a violation of the prohibition may be charged
as a misdemeanor or an infraction, at the discretion of the prosecutor. The bill would
prohibit a person from being found in violation of the bill’s provisions unless provided
notice, at least 72 hours before commencement of any enforcement action, as specified.
Recommended TVC Position: Watch
March Legislative Update 4 March 26, 2024
SB 1031 (Wiener, Wahab) San Francisco Bay Area: local revenue measures:
transportation improvements.
Existing law creates the Metropolitan Transportation Commission as a local area
planning agency for the 9-county San Francisco Bay area with comprehensive regional
transportation planning and other related responsibilities. This bill would authorize the
commission to raise and allocate new revenue and incur and issue bonds and other
indebtedness, as specified. In this regard, the bill would authorize the commission to
impose a retail transactions and use tax, a regional payroll tax, a parcel tax, and a regional
vehicle registration surcharge in all or a subset of the 9 counties of the San Francisco Bay
area, in accordance with applicable constitutional requirements. The bill would require
the revenue generated pursuant to these provisions to be used for transportation
improvements in the San Francisco Bay area, including for various transit purposes, and
would require the commission to distribute those revenues in accordance with specified
requirements and expressions of legislative intent.
Recommended TVC Position: Support with Amendments
Additional Advocacy Efforts
The Tri-Valley Cities Council met on February 28. Agenda items included a legislative
update from Townsend Public Affairs and the League of California Cities, along with a
presentation from the Dublin Police Department on mental health.
Conclusion
It is recommended that the Town Council Legislative Sub-Committee accept this report
and direct any questions and/or direction to Town legislative staff.
Prepared by:
Cat Bravo
Management Analyst
Reviewed by:
Joseph Calabrigo
Town Manager
Attachment A – Bill Summaries/Analysis
Attachment B – TVC Letter of Support AB 2021 (Bauer-Kahan)
california legislature—2023–24 regular session
ASSEMBLY BILL No. 2626
Introduced by Assembly Member Dixon
February 14, 2024
An act to add Section 43109 to the Health and Safety Code, relating
to air pollution.
legislative counsel’s digest
AB 2626, as introduced, Dixon. Advanced Clean Fleets regulations:
local governments.
Existing law requires the State Air Resources Board to adopt and
implement motor vehicle emission standards, in-use performance
standards, and motor vehicle fuel specifications for the control of air
contaminants and sources of air pollution that the state board has found
necessary, cost effective, and technologically feasible. The California
Global Warming Solutions Act of 2006 establishes the state board as
the state agency responsible for monitoring and regulating sources
emitting greenhouse gases and requires the state board to adopt rules
and regulations to achieve the maximum technologically feasible and
cost-effective greenhouse gas emission reductions from those sources.
Pursuant to its authority, the state board has adopted the Advanced
Clean Fleets Regulation, which imposes various requirements for
transitioning local, state, and federal government fleets of medium- and
heavy-duty trucks, other high-priority fleets of medium- and heavy-duty
trucks, and drayage trucks to zero-emission vehicles. The Advanced
Clean Fleets Regulation authorizes entities subject to the regulation to
apply for exemptions from its requirements under certain circumstances.
This bill would extend the compliance dates for local government set
forth in the Advanced Clean Fleets Regulation by 10 years. The bill
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ATTACHMENT A
would prohibit the state board from taking enforcement action against
a local government for violating the Advanced Clean Fleets Regulation
if the alleged violation occurs before January 1, 2025.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
line 1 SECTION 1. Section 43109 is added to the Health and Safety
line 2 Code, to read:
line 3 43109. (a) Notwithstanding Article 3.2 (commencing with
line 4 Section 2013) of Chapter 1 of Division 3 of Title 13 of the
line 5 California Code of Regulations, for the purchase by a local
line 6 government of vehicles with a gross vehicle weight rating greater
line 7 than 8,500 pounds, the compliance dates set forth in that article
line 8 shall be extended by 10 years.
line 9 (b) The state board shall not take any enforcement action against
line 10 a local government for violating the requirements of Article 3.2
line 11 (commencing with Section 2013) of Chapter 1 of Division 3 of
line 12 Title 3 of the California Code of Regulations if the alleged violation
line 13 occurs before January 1, 2025.
O
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— 2 — AB 2626
AMENDED IN ASSEMBLY FEBRUARY 20, 2024
california legislature—2023–24 regular session
ASSEMBLY BILL No. 1820
Introduced by Assembly Member Schiavo
(Coauthor: Assembly Member Grayson)
January 11, 2024
An act to amend Section Sections 65940.1 and 65941.1 of, and to
add Section 65943.1 to, the Government Code, relating to housing.
legislative counsel’s digest
AB 1820, as amended, Schiavo. Housing development projects:
applications: fees and exactions.
(1) Existing law requires a city or county to deem an applicant for a
housing development project to have submitted a preliminary application
upon providing specified information about the proposed project to the
city or county from which approval for the project is being sought.
Existing law requires a housing development project be subject only to
the ordinances, policies, and standards adopted and in effect when the
preliminary application was submitted.
This bill would authorize a development proponent that submits a
preliminary application for a housing development project to request a
preliminary fee and exaction estimate, as defined. The bill defined, and
would require a the local agency to comply with the request provide
the estimate within 10 business days of the submission of the preliminary
application, except as specified. application.
(2) Existing law requires a public agency that receives an application
for a development project to, within 30 calendar days, determine in
writing whether the application is complete and immediately transmit
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its determination to the applicant for the development project, as
specified.
This bill would require a public agency that determines an application
for a housing development project is complete to provide the
development proponent with an itemized list and total sum amount of
all fees and exactions that will apply to the project with within 10 days
of the above-described determination of completeness transmitted to
the applicant.
(3) Existing law requires a city, county, or special district that has
an internet website to make specified information available on its
internet website, as applicable, including a current schedule of fees,
exactions, affordability requirements it has imposed that are applicable
to a proposed housing development project, and an archive of impact
fee nexus studies, cost of service studies, or equivalent, conducted by
that city, county, or special district on or after January 1, 2018. Existing
law requires a city or county to request from a development proponent,
upon issuance of a certificate of occupancy or the final inspection,
whichever occurs last, the total amount of fees and exactions associated
with the project for which the certificate was issued.
This bill would clarify that these provisions may not be construed to
impose any obligation on any entity, including a development proponent,
other than a city, county, or special district, as specified. The bill would
also require the request from the city or county for the total amount of
fees and exactions associated with the project to clearly state that the
request does not create any obligation to respond and that the
development proponent will not be subjected to any consequences for
not responding or for the content of a response.
(3)
(4) The bill would include findings that changes proposed by this
bill address a matter of statewide concern rather than a municipal affair
and, therefore, apply to all cities, including charter cities.
(4)
(5) By imposing new duties on local governments when receiving
and reviewing certain development project applications, the bill would
impose a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the state.
Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act
for a specified reason.
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— 2 — AB 1820
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
The people of the State of California do enact as follows:
line 1 SECTION 1. Section 65940.1 of the Government Code is
line 2 amended to read:
line 3 65940.1. (a) (1) A city, county, or special district that has an
line 4 internet website shall make all of the following available on its
line 5 internet website, as applicable:
line 6 (A) (i) A current schedule of fees, exactions, and affordability
line 7 requirements imposed by that city, county, or special district,
line 8 including any dependent special districts, as defined in Section
line 9 56032.5, of the city or county applicable to a proposed housing
line 10 development project.
line 11 (ii) The city, county, or special district shall present the
line 12 information described in clause (i) in a manner that clearly
line 13 identifies the fees, exactions, and affordability requirements that
line 14 apply to each parcel and the fees that apply to each new water and
line 15 sewer utility connection.
line 16 (iii) The city, county, or special district shall post a written fee
line 17 schedule or a link directly to the written fee schedule on its internet
line 18 website.
line 19 (B) All zoning ordinances and development standards adopted
line 20 by the city or county presenting the information, which shall
line 21 specify the zoning, design, and development standards that apply
line 22 to each parcel.
line 23 (C) The list required to be compiled pursuant to Section 65940
line 24 by the city or county presenting the information.
line 25 (D) The current and five previous annual fee reports or the
line 26 current and five previous annual financial reports, that were
line 27 required pursuant to subdivision (b) of Section 66006 and
line 28 subdivision (d) of Section 66013.
line 29 (E) An archive of impact fee nexus studies, cost of service
line 30 studies, or equivalent, conducted by that city, county, or special
line 31 district on or after January 1, 2018. For purposes of this
line 32 subparagraph, “cost of service study” means the data provided to
line 33 the public pursuant to subdivision (a) of Section 66016.
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AB 1820 — 3 —
line 1 (2) A city, county, or special district shall update the information
line 2 made available under this subdivision within 30 days of any
line 3 changes.
line 4 (3) (A) A city or county shall request from a development
line 5 proponent, upon issuance of a certificate of occupancy or the final
line 6 inspection, whichever occurs last, the total amount of fees and
line 7 exactions associated with the project for which the certificate was
line 8 issued. The request shall clearly state that the development
line 9 proponent is under no obligation to respond to the request for
line 10 information and that the development proponent will not be
line 11 subjected to any consequences for not responding or for the content
line 12 of a response. The city or county shall post this information on its
line 13 internet website, and update it at least twice per year.
line 14 (B) A city or county shall not be responsible for the accuracy
line 15 for the information received and posted pursuant to subparagraph
line 16 (A). A city or county may include a disclaimer regarding the
line 17 accuracy of the information posted on its internet website under
line 18 this paragraph.
line 19 (b) For purposes of this section:
line 20 (1) “Affordability requirement” means a requirement imposed
line 21 as a condition of a development of residential units, that the
line 22 development include a certain percentage of the units affordable
line 23 for rent or sale to households with incomes that do not exceed the
line 24 limits for moderate-income, lower income, very low income, or
line 25 extremely low income households specified in Sections 50079.5,
line 26 50093, 50105, and 50106 of the Health and Safety Code, or an
line 27 alternative means of compliance with that requirement including,
line 28 but not limited to, in-lieu fees, land dedication, off-site
line 29 construction, or acquisition and rehabilitation of existing units.
line 30 (2) (A) “Exaction” means any of the following:
line 31 (i) A construction excise tax.
line 32 (ii) A requirement that the housing development project provide
line 33 public art or an in-lieu payment.
line 34 (iii) Dedications of parkland or in-lieu fees imposed pursuant
line 35 to Section 66477.
line 36 (iv) A special tax levied on new housing units pursuant to the
line 37 Mello-Roos Community Facilities Act of 1982 (Chapter 2.5
line 38 (commencing with Section 53311) of Part 1 of Division 2 of Title
line 39 5).
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— 4 — AB 1820
line 1 (B) “Exaction” does not include fees or charges pursuant to
line 2 Section 66013 that are not imposed (i) in connection with issuing
line 3 or approving a permit for development or (ii) as a condition of
line 4 approval of a proposed development, as held in Capistrano Beach
line 5 Water Dist. v. Taj Development Corp. (1999) 72 Cal.App.4th 524.
line 6 (3) “Fee” means a fee or charge described in the Mitigation Fee
line 7 Act (Chapter 5 (commencing with Section 66000), Chapter 6
line 8 (commencing with Section 66010), Chapter 7 (commencing with
line 9 Section 66012), Chapter 8 (commencing with Section 66016), and
line 10 Chapter 9 (commencing with Section 66020)).
line 11 (4) “Housing development project” means a use consisting of
line 12 any of the following:
line 13 (A) Residential units only.
line 14 (B) Mixed-use developments consisting of residential and
line 15 nonresidential uses with at least two-thirds of the square footage
line 16 designated for residential use.
line 17 (C) Transitional housing or supportive housing.
line 18 (c) This section shall not be construed to alter the existing
line 19 authority of a city, county, or special district to adopt or impose
line 20 an exaction or fee.
line 21 (d) This section shall not be construed to impose any obligation
line 22 on any entity, including a development proponent, other than a
line 23 city, county, or special district. This subdivision does not constitute
line 24 a change in, but is declaratory of, existing law.
line 25 SECTION 1.
line 26 SEC. 2. Section 65941.1 of the Government Code, as amended
line 27 by Section 27 of Chapter 258 of the Statutes of 2022, is amended
line 28 to read:
line 29 65941.1. (a) An applicant for a housing development project,
line 30 as defined in paragraph (3) of subdivision (b) of Section 65905.5,
line 31 shall be deemed to have submitted a preliminary application upon
line 32 providing all of the following information about the proposed
line 33 project to the city, county, or city and county from which approval
line 34 for the project is being sought and upon payment of the permit
line 35 processing fee:
line 36 (1) The specific location, including parcel numbers, a legal
line 37 description, and site address, if applicable.
line 38 (2) The existing uses on the project site and identification of
line 39 major physical alterations to the property on which the project is
line 40 to be located.
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AB 1820 — 5 —
line 1 (3) A site plan showing the location on the property, elevations
line 2 showing design, color, and material, and the massing, height, and
line 3 approximate square footage, of each building that is to be occupied.
line 4 (4) The proposed land uses by number of units and square feet
line 5 of residential and nonresidential development using the categories
line 6 in the applicable zoning ordinance.
line 7 (5) The proposed number of parking spaces.
line 8 (6) Any proposed point sources of air or water pollutants.
line 9 (7) Any species of special concern known to occur on the
line 10 property.
line 11 (8) Whether a portion of the property is located within any of
line 12 the following:
line 13 (A) A very high fire hazard severity zone, as determined by the
line 14 Department of Forestry and Fire Protection pursuant to Section
line 15 51178.
line 16 (B) Wetlands, as defined in the United States Fish and Wildlife
line 17 Service Manual, Part 660 FW 2 (June 21, 1993).
line 18 (C) A hazardous waste site that is listed pursuant to Section
line 19 65962.5 or a hazardous waste site designated by the Department
line 20 of Toxic Substances Control pursuant to Article 5 (commencing
line 21 with Section 78760) of Chapter 4 of Part 2 of Division 45 of the
line 22 Health and Safety Code.
line 23 (D) A special flood hazard area subject to inundation by the 1
line 24 percent annual chance flood (100-year flood) as determined by
line 25 the Federal Emergency Management Agency in any official maps
line 26 published by the Federal Emergency Management Agency.
line 27 (E) A delineated earthquake fault zone as determined by the
line 28 State Geologist in any official maps published by the State
line 29 Geologist, unless the development complies with applicable seismic
line 30 protection building code standards adopted by the California
line 31 Building Standards Commission under the California Building
line 32 Standards Law (Part 2.5 (commencing with Section 18901) of
line 33 Division 13 of the Health and Safety Code), and by any local
line 34 building department under Chapter 12.2 (commencing with Section
line 35 8875) of Division 1 of Title 2.
line 36 (F) A stream or other resource that may be subject to a
line 37 streambed alteration agreement pursuant to Chapter 6 (commencing
line 38 with Section 1600) of Division 2 of the Fish and Game Code.
line 39 (9) Any historic or cultural resources known to exist on the
line 40 property.
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line 1 (10) The number of proposed below market rate units and their
line 2 affordability levels.
line 3 (11) The number of bonus units and any incentives, concessions,
line 4 waivers, or parking reductions requested pursuant to Section 65915.
line 5 (12) Whether any approvals under the Subdivision Map Act,
line 6 including, but not limited to, a parcel map, a tentative map, or a
line 7 condominium map, are being requested.
line 8 (13) The applicant’s contact information and, if the applicant
line 9 does not own the property, consent from the property owner to
line 10 submit the application.
line 11 (14) For a housing development project proposed to be located
line 12 within the coastal zone, whether any portion of the property
line 13 contains any of the following:
line 14 (A) Wetlands, as defined in subdivision (b) of Section 13577
line 15 of Title 14 of the California Code of Regulations.
line 16 (B) Environmentally sensitive habitat areas, as defined in
line 17 Section 30240 of the Public Resources Code.
line 18 (C) A tsunami run-up zone.
line 19 (D) Use of the site for public access to or along the coast.
line 20 (15) The number of existing residential units on the project site
line 21 that will be demolished and whether each existing unit is occupied
line 22 or unoccupied.
line 23 (16) A site map showing a stream or other resource that may
line 24 be subject to a streambed alteration agreement pursuant to Chapter
line 25 6 (commencing with Section 1600) of Division 2 of the Fish and
line 26 Game Code and an aerial site photograph showing existing site
line 27 conditions of environmental site features that would be subject to
line 28 regulations by a public agency, including creeks and wetlands.
line 29 (17) The location of any recorded public easement, such as
line 30 easements for storm drains, water lines, and other public rights of
line 31 way.
line 32 (b) (1) A development proponent that submits a preliminary
line 33 application pursuant to this section providing the information
line 34 required by subdivision (a) may include in its preliminary
line 35 application a request for a preliminary fee and exaction estimate.
line 36 A estimate, which the local agency shall comply with the request
line 37 of the development proponent provide within 10 business days of
line 38 the submission of the preliminary application unless the local
line 39 government otherwise determines that the preliminary application
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line 1 does not include all of the information required by subdivision (a).
line 2 application.
line 3 (2) For purposes of this subdivision:
line 4 (A) “Fee” and “exaction” mean the same as those terms are
line 5 defined in Section 65940.1.
line 6 (B) “Fee and exaction estimate” means a good faith estimate of
line 7 the total amount of fees and exactions expected to be imposed in
line 8 connection with the project.
line 9 (3) Except for the provision of the fee and exaction estimate by
line 10 the local agency, nothing in this subdivision shall create or affect
line 11 any rights or obligations with respect to fees or exactions.
line 12 (c) (1) Each local agency shall compile a checklist and
line 13 application form that applicants for housing development projects
line 14 may use for the purpose of satisfying the requirements for submittal
line 15 of a preliminary application.
line 16 (2) The Department of Housing and Community Development
line 17 shall adopt a standardized form that applicants for housing
line 18 development projects may use for the purpose of satisfying the
line 19 requirements for submittal of a preliminary application if a local
line 20 agency has not developed its own application form pursuant to
line 21 paragraph (1). Adoption of the standardized form shall not be
line 22 subject to Chapter 3.5 (commencing with Section 11340) of Part
line 23 1 of Division 3 of Title 2 of the Government Code.
line 24 (3) A checklist or form shall not require or request any
line 25 information beyond that expressly identified in subdivision (a).
line 26 (d) After submittal of all of the information required by
line 27 subdivision (a), if the development proponent revises the project
line 28 such that the number of residential units or square footage of
line 29 construction changes by 20 percent or more, exclusive of any
line 30 increase resulting from the receipt of a density bonus, incentive,
line 31 concession, waiver, or similar provision, the housing development
line 32 project shall not be deemed to have submitted a preliminary
line 33 application that satisfies this section until the development
line 34 proponent resubmits the information required by subdivision (a)
line 35 so that it reflects the revisions. For purposes of this subdivision,
line 36 “square footage of construction” means the building area, as
line 37 defined by the California Building Standards Code (Title 24 of the
line 38 California Code of Regulations).
line 39 (e) (1) Within 180 calendar days after submitting a preliminary
line 40 application with all of the information required by subdivision (a)
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line 1 to a city, county, or city and county, the development proponent
line 2 shall submit an application for a development project that includes
line 3 all of the information required to process the development
line 4 application consistent with Sections 65940, 65941, and 65941.5.
line 5 (2) If the public agency determines that the application for the
line 6 development project is not complete pursuant to Section 65943,
line 7 the development proponent shall submit the specific information
line 8 needed to complete the application within 90 days of receiving the
line 9 agency’s written identification of the necessary information. If the
line 10 development proponent does not submit this information within
line 11 the 90-day period, then the preliminary application shall expire
line 12 and have no further force or effect.
line 13 (3) This section shall not require an affirmative determination
line 14 by a city, county, or city and county regarding the completeness
line 15 of a preliminary application or a development application for
line 16 purposes of compliance with this section.
line 17 (f) Notwithstanding any other law, submission of a preliminary
line 18 application in accordance with this section shall not preclude the
line 19 listing of a tribal cultural resource on a national, state, tribal, or
line 20 local historic register list on or after the date that the preliminary
line 21 application is submitted. For purposes of Section 65589.5 or any
line 22 other law, the listing of a tribal cultural site on a national, state,
line 23 tribal, or local historic register on or after the date the preliminary
line 24 application was submitted shall not be deemed to be a change to
line 25 the ordinances, policies, and standards adopted and in effect at the
line 26 time that the preliminary application was submitted.
line 27 (g) This section shall remain in effect only until January 1, 2030,
line 28 and as of that date is repealed.
line 29 SEC. 2.
line 30 SEC. 3. Section 65943.1 is added to the Government Code, to
line 31 read:
line 32 65943.1. (a) A public agency that determines an application
line 33 for a housing development project is complete pursuant to Section
line 34 65943 shall provide the development proponent with an itemized
line 35 list and total sum amount of all fees and exactions that will apply
line 36 to the project with within 10 days of its formal determination of
line 37 completeness transmitted to the applicant.
line 38 (b) For purposes of complying with subdivision (a), a public
line 39 agency that calculates fees using a cost recovery method to cover
line 40 administrative cost shall provide fee estimates for those cost
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AB 1820 — 9 —
line 1 recovery fees based on the average amount of the fees imposed
line 2 on similar projects.
line 3 (c) For purposes of this section:
line 4 (1) (A) “Exaction” means any of the following:
line 5 (i) A construction excise tax.
line 6 (ii) A requirement that the housing development project provide
line 7 public art or an in-lieu payment.
line 8 (iii) Dedications of parkland or in-lieu fees imposed pursuant
line 9 to Section 66477.
line 10 (iv) A special tax levied on new housing units pursuant to the
line 11 Mello-Roos Community Facilities Act of 1982 (Chapter 2.5
line 12 (commencing with Section 53311) of Part 1 of Division 2 of Title
line 13 5).
line 14 (B) “Exaction” does not include fees or charges pursuant to
line 15 Section 66013 that are not imposed (i) in connection with issuing
line 16 or approving a permit for development or (ii) as a condition of
line 17 approval of a proposed development, as held in Capistrano Beach
line 18 Water Dist. v. Taj Development Corp. (1999) 72 Cal.App.4th 524.
line 19 (2) “Fee” means a fee or charge described in the Mitigation Fee
line 20 Act (Chapter 5 (commencing with Section 66000), Chapter 6
line 21 (commencing with Section 66010), Chapter 7 (commencing with
line 22 Section 66012), Chapter 8 (commencing with Section 66016), and
line 23 Chapter 9 (commencing with Section 66020)).
line 24 (3) “Housing development project” means a use consisting of
line 25 any of the following:
line 26 (A) Residential units only.
line 27 (B) Mixed-use developments consisting of residential and
line 28 nonresidential uses with at least two-thirds of the square footage
line 29 designated for residential use.
line 30 (C) Transitional housing or supportive housing.
line 31 (4) “Public agency” means a city, including a charter city, a
line 32 county, including a charter county, or special district.
line 33 SEC. 3.
line 34 SEC. 4. The Legislature finds and declares all of the following:
line 35 (a) A recent study conducted by the Terner Center for Housing
line 36 Innovation at the University of California, Berkeley, found that
line 37 fees and exactions can amount to up to 18 percent of the median
line 38 home price, that these fees and exactions are extremely difficult
line 39 to estimate, and that fees and exactions continue to rise in
line 40 California while decreasing nationally. Further, escalating fee and
98
— 10 — AB 1820
line 1 exaction costs make it more difficult for builders to deliver new
line 2 housing for sale or rent at affordable prices.
line 3 (b) Ensuring access to affordable housing is a matter of statewide
line 4 concern rather than a municipal affair as that term is used in Section
line 5 5 of Article XI of the California Constitution. Therefore, Section
line 6 1 2 of this act amending Section 65941.1 of the Government Code,
line 7 and Section 2 3 of this act adding Section 65943.1 to the
line 8 Government Code apply to all cities, including charter cities.
line 9 SEC. 4.
line 10 SEC. 5. No reimbursement is required by this act pursuant to
line 11 Section 6 of Article XIIIB of the California Constitution because
line 12 a local agency or school district has the authority to levy service
line 13 charges, fees, or assessments sufficient to pay for the program or
line 14 level of service mandated by this act, within the meaning of Section
line 15 17556 of the Government Code.
O
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AB 1820 — 11 —
AB 2021
Page 1
Date of Hearing: March 12, 2024
Counsel: Kimberly Horiuchi
ASSEMBLY COMMITTEE ON PUBLIC SAFETY
Kevin McCarty, Chair
AB 2021 (Bauer-Kahan) – As Introduced January 31, 2024
As Proposed to be Amended in Committee
SUMMARY: Increases the fines for selling tobacco to a person under the age of 21.
Specifically, this bill:
1) States that any business, firm, corporation, retailer, or wholesaler who sells, furnishes, or
gives tobacco or tobacco products or paraphernalia, cigarettes, or cigarette papers, blunt
wraps, or any other preparation of tobacco, or any other instrument or paraphernalia that is
designed for the smoking or ingestion of tobacco, tobacco products, or any controlled
substance to any person under the age of 21, the firm, corporation, retailer, or wholesaler will
be subject to either a criminal action for a misdemeanor or a civil action brought by a city
attorney, a county counsel, or a district attorney, punishable by a fine of one thousand dollars
$1,000 for the first offense, $5,000 for the second offense, and $10,000 for the third offense.
2) Makes a conforming changes to existing law related to a business, firm, corporation, retailer,
or wholesaler who sells tobacco to a person under the age of 21.
EXISTING LAW:
1) States every person, firm, or corporation that knowingly or under circumstances in which it
has knowledge, or should otherwise have grounds for knowledge, sells, gives, or in any way
furnishes to another person who is under 21 years of age any tobacco, cigarette, or cigarette
papers, or blunt wraps, or any other preparation of tobacco, or any other instrument or
paraphernalia that is designed for the smoking or ingestion of tobacco, tobacco products, or
any controlled substance, is subject to either a criminal action for a misdemeanor or a civil
action brought by a city attorney, a county counsel, or a district attorney, punishable by a fine
of $200 for the first offense, $500 for the second offense, and $1,000 for the third offense.
(Pen. Code, § 308, subd. (a)(a)(A)(i).)
2) Specifies any criminal fine for sales of tobacco to a person under the age of 21 does not apply
to sales to any person on active military duty that is 18 years of age or older. (Pen. Code, §
308, subd. (a)(1)(A)(ii).)
3) Provides that 25 percent of each civil and criminal penalty collected pursuant to this
subdivision shall be paid to the office of the city attorney, county counsel, or district attorney,
whoever is responsible for bringing the successful action. (Pen. Code, § 308, subd.
(a)(1)(B).)
4) States that for purposes of determining the liability of persons, firms, or corporations
controlling franchises or business operations in multiple locations for the second and
AB 2021
Page 2
subsequent violations of this section, each individual franchise or business location shall be
deemed a separate entity. (Pen. Code, § 308, subd. (c).)
5) Provides that all moneys collected as civil penalties by the Department of Public Health and
other state agencies that enforce the Stop Tobacco Access to Kids Enforcement (“STAKE”)
Act shall be deposited in the State Treasury to the credit of the Sale of Tobacco to Minors
Control Account that is hereby established. (Bus. & Prof. Code, 22953.)
6) Requires any person engaging in the retail sale of tobacco products check the identification
of tobacco purchasers, to establish the age of the purchaser, if the purchaser reasonably
appears to be under 21 years of age. (Bus. & Prof. Code, § 22956.)
7) Establishes that states must maintain specific restrictions with respect to the legal age to
purchase or possess tobacco products, but makes clear that the STAKE Act does not preempt
or otherwise prohibit the adoption of a local standard that imposes a more restrictive legal
age to purchase or possess tobacco products. A local standard that imposes a more restrictive
legal age to purchase or possess tobacco products shall control in the event of an
inconsistency between state law and a local standard. (Bus. & Prof. Code, § 22964.)
FISCAL EFFECT: Unknown
COMMENTS:
1) Author’s Statement: According to the author: “Availability of tobacco based products is
continuing to grow and our California youth are becoming its victims. We have a duty as a
legislature to create a healthy tobacco free environment for our children. AB 2021 will
safeguard our children by increasing penalties for sellers found responsible of selling tobacco
products to people under the age of 21. Even with age and flavor constraints, 24,600 high
school students in California reported consuming tobacco products. Sellers of tobacco
products need to take seriously their mandate to verify buyers are of legal age of purchase
and raising penalties will help ensure that happens. It is paramount that we take this next step
in continuing the fight for a tobacco free generation.”
2) Need for the Bill: According to information submitted by the author’s office, “The selling of
nicotine based products to our youth is a rapidly growing problem with no end in sight. The
seller’s financial profit is continuing to grow at the expense of our youth. While efforts have
been made to ensure that sellers do not sell tobacco products to children and those under 21
years of age, the penalties for violating the law are preposterously low. For instance, a first
violation results in the maximum of a $200 fine. When you factor in the sales enjoyed by
tobacco vendors, these fines hardly act as meaningful deterrents.”
Existing law includes a wide range of fines on business owners that are caught selling
tobacco products to people under the age of 21. The STAKE Act mandates that anyone
selling tobacco products check the purchaser’s identification if the person reasonably looks
like they are under 21. (Bus. & Prof. Code, § 22956.) The California Department of Public
Health (“CDPH”) is responsible for enforcement of the STAKE Act. (Bus. & Prof. Code, §
22957.)
CDPH may assess fines for any violation of the STAKE Act, as follows: (1) a civil penalty of
$400 to $600 for the first violation, (2) a civil penalty of $900 to $1,000 for the second
AB 2021
Page 3
violation within a five-year period, (3) a civil penalty of $1,200 to $1,800 for a third violation
within a five-year period, (4) a civil penalty of $3,000 to $4,000 for a fourth violation within
a five-year period, or (5) a civil penalty of $5,000 to $6,000 for a fifth violation within a five-
year period. (Bus. & Prof. Code, 22958, subd. (a).)
In addition to escalating fines, CDPH may also suspend the vendor’s ability to sell cigarettes
if they have suffered a third, fourth, or fifth violation. Business and Professions Code section
22958 states that if a violation is uncontested (meaning there is no defense to the underlying
charge), the State Board of Equalization (BOE) must issue a civil penalty of $250 and
suspend the vendor’s right to sell tobacco. BOE may assess suspensions as follows: (a) A 45-
day suspension of the license for a third violation at the same location within a five-year
period; (b) A 90-day suspension of the license for a fourth violation at the same location
within a five-year period; and (c) revocation of the license for a fifth violation at the same
location within a five-year period. (Bus. & Prof. Code, § 22958, subd. (b)(1).)
Additionally, federal law also applies to the sale of tobacco on the state level. The 2009
Tobacco Control Act imposes fines as follows for the illegal sale of tobacco to a person
under legal age: (a) a warning for the first violation; (b) up to $279 for a second violation in
one year; (c) fines may increase for subsequent violations up to $11,182 and may include a
no-tobacco-sale order which prohibits a vendor from selling tobacco possibly forever. (21
U.S.C., § 388.) Additional fines and fees may also levied against vendors that do not post the
required signage. (Pen. Code, § 308.)
Finally, according to the CDPH and other anti-tobacco organizations such as Tobacco
Control, the rates of smoking has actually declined in the last several years for numerous
target groups. One study conducted by the Herbert Wertheim School of Public Health at the
University of California at San Diego found that between 1997 and 2020, cigarette smoking
prevalence among those aged 18–24 years decreased from 29.1% to 5.4%.
From 2017 to 2019, both ever-vaping and past 30-day
nicotine vaping (11.0% to 25.5%) surged among those 17–
18 years, however there was no increase among those aged
18–24 years. Regression models demonstrated that the surge
in vaping was independent of the decline in cigarette
smoking. In the 24 most populous US states, exclusive
vaping did increase among those aged 18–24 years, from
1.7% to 4.0% to equivalent to 40% of the decline in cigarette
smoking between 2014–15 and 2018–19. Across these US
states, the correlation between the changes in vaping and
smoking prevalence was low (r=0.11). In the two US states
with >US$1/fluid mL tax on e-cigarettes in 2017, cigarette
smoking declined faster than the US average.1 Since 1997, a
large decline in cigarette smoking occurred in the US
population under age 24 years, that was independent of the
1 Pierce JP, Luo M, McMenamin, et al (November 2023), Declines in cigarette smoking among US adolescents and
young adults: indications of independence from e-cigarette vaping surge, Tobacco Control Published Online First:
08 November 2023. doi: 10.1136/tc-2022-057907; https://tobaccocontrol.bmj.com/content/early/2023/11/08/tc-
2022-057907.info, last visited March 5, 2024.
AB 2021
Page 4
2017–19 adolescent surge in past 30-day e-cigarette vaping.
Further research is needed to assess whether the 2014–15 to
2018–19 increase in exclusive vaping in those aged 18–
24 years is a cohort effect from earlier dependence on e-
cigarette vaping as adolescents.2
While California still struggles to control adolescent vaping,3 tobacco use and the rates of
tobacco use have generally declined over the past 20 years. Assessing fines on business
owners may make sense to discourage them from selling tobacco to people under the age of
21.
3) Current Revenues Generated by Cigarette and Tobacco Taxes: California’s tax on
tobacco raises considerable revenue for a variety of child-focused polices pertaining to
education and health. According to the California Department of Tax and Fee Administration
(CDTFA), cigarette and tobacco revenue breaks down accordingly: (a) fiscal year (FY) 2019-
20: $1.7 billion; FY 2020-21: $1.7 billion; FY 2021-22: $1.5 billion; and (c) FY 2022-23:
$1.3 billion.4
Revenue generated by the cigarette and tobacco tax has declined over the past five years
consistent with the decline in smoking in California. Starting with fiscal year 2021-22, the
tobacco products tax rate calculation is based on cigarette sales as reported to CDTFA by
cigarette manufacturers and importers for the preceding November through January. Prior to
fiscal year 2021-22, the rate calculation was based on the wholesale premium brand cigarette
price as of March 1, as published by the Tobacco Merchants Association.
4) Penalty Assessments: When a person or business is assessed a criminal fine, the amount
owed is not just what the amount specified in the statute. While this bill may propose
scheduled increases up to $10,000 for a third offense – the penalty assessments will make
that fine much higher. Fines are assessed as follows:
For a base fine of $1,000:
Penal Code § 1464 state penalty on fines $1,000 ($10 for every $10).
Penal Code § 1465.7 state surcharge $200 (20%)
Penal Code §1465.8 court operations assessment $40 ($40 per criminal
offense)
Government Code §70372 court construction penalty $500 ($5 for every $10).
Government Code §70373 assessment $30 ($30 for any felony or
misdemeanor
Government Code §76000 penalty $700 ($7 for every $10)
Government Code §76000.5 EMS penalty $200 ($2 for every $10)
Government Code §76104.6 DNA fund penalty $100 ($1 for every $10
Government Code §76104.9 additional DNA fund penalty $400 ($4 for every $10)
Total Fine with Assessments: $4,170.
2 Id.
3 California only stated regulating vape products in the past ten years. Progress may be more evident as time goes
on.
4 CDTFA Cigarette and Tobacco Revenue (Table 30A located at
https://www.cdtfa.ca.gov/DataPortal/dataset.htm?url=CigTaxSurTaxRev, last visited March 5, 2024.
AB 2021
Page 5
The total amount would obviously increase depending on the amount of the base fine.
Penalty assessments more than triples the total fine. Fines stated in the Penal Code are often
misleading given the rates of penalty assessments in this state. The existing fines in Penal
Code section 308 would also likely be in addition to the fines and penalties listed in Business
and Professions Code section 22958 which levies fines up to $6000 before the penalty
assessments. Therefore, this bill, combined with other sections of law would likely impose a
large fine, possibly in the tens of thousands of dollars on a business that sells tobacco to a
person under the age of 21.
5) Local Ordinances: Numerous cities around California have local ordinances that also punish
the unlawful sale of cigarettes and tobacco products to minors. While Penal Code section
308, subdivision (d) specifies that local agencies may not sell tobacco to anyone under the
age of 21 (unless they are in the military), it also allows locals to have their own consistent
restrictions. (Cohen v. Board of Supervisors (1985) 40 Cal. 3d 277; Bravo Vending v. City of
Rancho Mirage (1993) 16 Cal. App. 4th 383.)
For example, the City of Concord recently adopted a local ordinance that tobacco retailers
may no longer accept coupons or provide free or discounted tobacco products, and they may
no longer sell cigarettes in packages less than 20 or cigars in packages of less than 10 (unless
cigars cost more than $5 each). The City of Lancaster requires any tobacco retailer to submit
a licensing request to the City Manager’s Office in the name of each proprietor proposing to
conduct retail tobacco sales and shall be signed by each proprietor or an authorized agent
thereof under penalty of perjury. (City of Lancaster Municipal Code, §5.42.050, subd. (a).)
Failure to obtain a license from the City may result in a misdemeanor sentence, additional
fines, and the suspension or revocation of their license to operate. (City of Lancaster
Municipal Code, § 5.42.140).) Therefore, a business that sell cigarettes to people under the
age of 21 will likely face significant local, state, and possibly federal fines as well as license
suspension.
6) Arguments in Support: According to CleanEarth4Kids.Org: “Tobacco is the leading cause
of preventable death and disease in the US with especially high rates in the African American
community. Over 45,000 African Americans die prematurely every year from tobacco-
caused diseases with an estimated 85% smoking menthol-flavored cigarettes. Less than 10%
of Black smokers used menthol cigarettes in the 1950s. The Black community has been the
focus of the tobacco industry's predatory marketing, especially in low-income areas.
Stopping menthol is not just a health issue, it is racial justice. Tobacco use during childhood
and adolescence causes significant health problems such as respiratory diseases and cancer,
memory and cognitive issues, and various heart diseases. Smoking also harms brain
development. Vaping, a common medium of flavored tobacco, harms hippocampus-
dependent memory. After four weeks of use, there are varying degrees of impairment on both
short-term and long-term memory. CleanEarth4Kids.org asks you to protect our youth, water
and environment by supporting AB 2021.”
7) Arguments in Opposition: According to the California Attorneys for Criminal Justice, “The
fine increase proposed by this bill ranges from five-fold to ten-fold for certain violations.
While the State has a compelling interest in restricting tobacco use to adults who have
reached 21 years of age, the considerable fine increase has great potential to harm small
business owners who may not have had knowledge of the violation when it occurred.
AB 2021
Page 6
Under the theory of respondeat superior, a small business owner would face possible
punishment and fine for the actions of a reckless employee working a register. A minimum
fine of $1,000.00 represents the profit margin for weeks of sales for some corner stores. The
maximum fine of $10,000.00 has the potential to bring financial strain to small business
owners, many of whom operate in marginalized communities with underserved populations.
Moreover, the potential for uneven enforcement in communities of color is high given the
history of saturation patrols and disparate policing.
“The fines imposed in Penal Code Section 308 have remained unchanged for a number of
decades and an increase commensurate with inflation may be warranted. However, the ten-
fold increase for the maximum fine and other increases under AB 2021 are excessive. In
comparison, a $10,000.00 fine eclipses the maximum fines allowable fines for many felony
offenses. The increase proposed by AB 2021 has the potential to catastrophically impact
small business owners, including those found in underserved and economically challenged
communities. While AB 2021 is well intentioned to bolster prevention of sales of tobacco
and tobacco-related products to those under the age of 21, the proposed fine increase is
jarring and excessive in the context of the conduct covered by the statute.”
8) Prior Legislation:
a) AB 1742 (Rivas) Chapter 454, Statutes of 2022 revises the Cigarette and Tobacco
Products Tax Law to provide the Attorney General (AG) and the Department of Justice
enhanced ability to enforce the Tobacco Master Settlement Agreement. The bill also
provides that the California Cigarette Fire Safety and Firefighter Protection Act is to be
administered by the AG instead of the State Fire Marshal, and that proposed markings of
cigarette manufacturers are deemed approved if the AG fails to act within 30 days instead
of the existing requirement of 10 days.
b) SB 395 (Caballero), Chapter 489, Statutes of 2021 enacts the Healthy Outcomes and
Prevention Education Act, which imposes the California Electronic Cigarette Excise Tax
on the sale of electronic cigarettes, and directs proceeds of the tax to various purposes.
REGISTERED SUPPORT / OPPOSITION:
Support
California District Attorneys Association
Cleanearth4kids.org
County Health Executives Association of California (CHEAC)
Oppose
California Attorneys for Criminal Justice
Analysis Prepared by: Kimberly Horiuchi / PUB. S. / (916) 319-3744
SENATE RULES COMMITTEE
Office of Senate Floor Analyses
(916) 651-1520 Fax: (916) 327-4478
SB 402
THIRD READING
Bill No: SB 402
Author: Wahab (D)
Amended: 1/12/24
Vote: 21
SENATE HEALTH COMMITTEE: 9-1, 1/10/24
AYES: Eggman, Glazer, Gonzalez, Hurtado, Limón, Menjivar, Rubio, Wahab,
Wiener
NOES: Nguyen
NO VOTE RECORDED: Grove, Roth
SENATE JUDICIARY COMMITTEE: 10-0, 1/11/24
AYES: Umberg, Wilk, Allen, Ashby, Caballero, Gonzalez, Laird, Min, Niello,
Wiener
NO VOTE RECORDED: Stern
SUBJECT: Involuntary commitment
SOURCE: Author
DIGEST: This bill clarifies that licensed mental health professionals are
authorized to initiate involuntary detentions for individuals who are found to be a
danger to self or others, or gravely disabled, when designated by a county
behavioral health director.
ANALYSIS:
Existing law:
1) Establishes the Lanterman-Petris-Short (LPS) Act to end the inappropriate,
indefinite, and involuntary commitment of persons with mental health
disorders, developmental disabilities, and chronic alcoholism, as well as to
safeguard a person’s rights, provide prompt evaluation and treatment, and
provide services in the least restrictive setting appropriate to the needs of each
person. Permits the involuntary detention (a “5150 hold”) of a person who is
SB 402
Page 2
found to be a danger to self or others, or gravely disabled, for various periods of
time for evaluation and treatment by a peace officer; professional person in
charge of a facility designated by the county for evaluation and treatment;
member of the attending staff of a facility designated by the county for
evaluation and treatment; designated members of a mobile crisis team; or,
professional person designated by the county. (WIC §5000, et seq.)
2) Defines “gravely disabled” as a condition in which a person, as a result of a
mental health disorder, a severe substance use disorder, or a co-occurring
mental health disorder and a severe substance use disorder, or impairment by
chronic alcoholism is unable to provide for their basic personal needs for food,
clothing, shelter, personal safety, or necessary medical care, or a condition in
which a person has been found mentally incompetent, as specified, for purposes
of detaining the person for assessment, evaluation, and treatment; providing a
court-ordered evaluation, as specified; certifying the person for intensive
treatment; or, placing the person under conservatorship. (WIC §5008)
3) Permits a county behavioral health director to develop procedures for the
county’s designation and training of professionals who will be designated to
perform functions for 5150 holds, as specified. (WIC §5121)
This bill:
1) Clarifies “licensed mental health professionals (LMHP),” as defined, are
authorized to initiate involuntary detentions for those who are found to be a
danger to self or others, or gravely disabled, when designated by a county
behavioral health director.
2) Specifies that an LMHP does not need to be employed by, or contracted with, a
county to be eligible for designation.
3) Defines LMHP as a psychiatrist, psychologist, licensed clinical social worker,
licensed marriage and family therapist, or a licensed professional clinical
counselor who has completed all required supervised clinical experience.
Comments
1) Author’s statement. According to the author, this bill is vital legislation that
will allow for appropriately trained and licensed LMHPs to initiate the
placement of an individual experiencing a mental health crisis on a 5150 hold.
Currently, LMHPs are significantly limited in providing support to vulnerable
SB 402
Page 3
populations. The current framework reveals limitations that hinder our ability to
respond adeptly to mental health crises by first responders and health care
professionals. This bill seeks to rectify this by authorizing a broader spectrum
of LMHPs to intervene promptly in mental health emergencies, all of whom
work one-on-one with those struggling with mental health. This strategic
expansion aligns with contemporary best practices, ensures more inclusive
crisis response, reduces the burden on law enforcement, and ultimately
enhances public safety. This bill can save lives.
2) LPS Act and involuntary detentions. The LPS Act provides for involuntary
detentions for varying lengths of time for the purpose of evaluation and
treatment, provided certain requirements are met, such as that an individual is
taken to a county-designated facility by county-designated individuals.
Typically, one first interacts with the LPS Act through a 5150 hold initiated by
a peace officer or other person authorized by a county, including designated
members of a mobile crisis team or professional person designated by the
county, who must determine and document that the individual meets this
standard. A county-designated facility is authorized to then involuntarily detain
an individual for up to 72 hours for evaluation and treatment if they are
determined to be, as a result of a mental health or substance use disorder, a
threat to self or others, or gravely disabled. The professional person in charge of
the county-designated facility is required to assess an individual in person to
determine the appropriateness of the involuntary detention prior to admitting
the individual. Outside of the LPS Act process, a non-designated facility (NDF)
is authorized to involuntarily detain an individual for up to eight hours but less
than 24 hours after examination, assessment, or evaluation by specified persons.
Some NDFs use county-designated persons to make the examinations,
assessments, or evaluations prior to either involuntarily detaining an individual
or releasing an individual from involuntary detention.
3) County designation. The LPS Act permits a county behavioral health director
to develop procedures for designating and training people to initiate involuntary
holds—outside of peace officers—to include, but not be limited to, the
following:
a) The license types, practice disciplines, and clinical experience of
professionals eligible to be designated by the county;
b) The initial and ongoing training and testing requirements for professionals
eligible to be designated by the county;
SB 402
Page 4
c) The application and approval processes for professionals seeking to be
designated by the county, including the timeframe for initial designation and
procedures for renewal of the designation; and,
d) The county’s process for monitoring and reviewing professionals designated
by the county to ensure appropriate compliance with state law, regulations,
and county procedures.
4) Instances of peace officer-initiated involuntary detentions. According to the
California Hospital Association (CHA), every day California’s hospitals care
for a significant and growing number of people in a behavioral health crisis. In
2021, patients with behavioral health diagnoses accounted for one in every
three patients hospitalized and one-fifth of all emergency department (ED)
visits. The crisis is particularly acute for young people, with adolescents’ visits
to EDs due to a behavioral health crisis climbing by nearly one-third during the
pandemic. In one example provided by CHA, a large hospital ED in Fresno
County received over 6,100 individuals last year who were on psychiatric holds
that were primarily placed by law enforcement. Of these, only 16% were
admitted to inpatient psychiatric care and deemed to have met the criteria for
involuntary detention. That hospital’s current ED boarding time (the time
admitted patients are held in the ED, often in hallways, while awaiting an
inpatient bed) for individuals on a psychiatric hold, due to lack of available
inpatient psychiatric bed placements, is 48 hours. CHA notes that not only are
hospitals seeing more Californians in crisis, but people with behavioral health
needs spend disproportionately more time waiting in the ED than other patients.
While the national quality standard for emergency hospital care is four hours or
less, it is common for people in a behavioral health crisis to languish in an ED
for days or even weeks while waiting for an inpatient mental health treatment
bed to become available.
FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No
SUPPORT: (Verified 1/11/24)
Treatment Advocacy Center
OPPOSITION: (Verified 1/11/24)
Cal Voices
County Behavioral Health Directors Association of California
Disability Rights California
Mental Health America of California
SB 402
Page 5
ARGUMENTS IN SUPPORT: Treatment Advocacy Center (TAC) states that
California is one of a minority of states whose statutes are constructed to require
law enforcement involvement in order to access emergency evaluation for people
in the community. As a practical matter, this means that unless someone is able to
arrive on their own in an emergency department and seek admission, the only way
to be admitted for care during a psychiatric crisis is following a law enforcement
encounter. This contributes to a lack of meaningful access, and the existence of
evaluation and treatment bottlenecks throughout California’s system. TAC further
states that police encounters are incredibly dangerous for individuals in psychiatric
crisis and improperly places the role of initially interpreting whether someone
meets criteria onto the shoulders of individuals not trained in conducting a clinical
analysis. This bill allows this analysis to be done by treatment professionals with
an actual and pre-existing relationship with the individual, ensuring better accuracy
and decisions based on a more complete picture of a person’s needs and status.
There is no benefit to a requirement that law enforcement be the sole access point
to emergency evaluation.
ARGUMENTS IN OPPOSITION: On a previous version of this bill, Disability
Rights California (DRC) states that if a LMHP not otherwise authorized to initiate
a 5150 is providing therapy to a person in the community, this bill would authorize
that provider to initiate a 5150. Once the provider does that, the mechanics of
enforcement will require police to be called because that would seem to be the only
way to get a person to the hospital if the person does not want to go. Conversely, if
the person is willing to go to the ED, that should be encouraged without the need to
take away the person’s voluntary status. Voluntary treatment that recognizes a
person’s autonomy and right of self-determination is far more likely to succeed.
DRC asks if a peace officer is called to the office on an LMHP, what would
happen if that peace officer disagrees with the provider’s assessment for
involuntary detention? If law enforcement does not want to detain the person, will
the provider/police disagreement play out in real time? DRC states this could be
very traumatizing to the person having a mental health crisis and would be a
setback in future efforts to gain the person’s trust and cooperation. DRC believes
the approach in this bill to make it easier to detain people involuntarily will neither
improve outcomes nor reduce law enforcement’s role. Also on a previous version
of this bill, Mental Health America of California (MHAC) states that this bill may
deter people from seeking voluntary mental health services. Due to stigma, many
individuals refuse to seek help or fully utilize services because of the fear of being
placed on a 5150 hold. Trust with a provider is built over time and requires a safe
place where people aren’t threatened with or have the potential to be forcibly
detained while seeking recovery. Expanding 5150 hold authority to mental health
professionals won’t decrease peace officer involvement as law enforcement is
SB 402
Page 6
currently the authority that enforces 5150 holds. Addressing California’s mental
health crisis means supporting the individual and their right to dignity and
autonomy during their recovery process and investing in the interventions that
work.
Cal Voices states that massively expanding the number of persons permitted to
initiate 5150 holds will result in a higher number of psychiatric holds, which will
be initiated in the community in the offices of therapists and psychiatrists.
Psychiatric holds are unavoidably involuntary, against the client’s will, and clients
often react to being placed on a hold with a fight or flight response. If a client is
not resisting the placement or a hold or inpatient hospitalization, no hold was
necessary or should ever have been placed. Psychiatric, inpatient hospitalization is
not an evidence-based practice for the treatment of mental illness. It is unproven to
have a net positive effect on the course of a person’s illness, including subsequent
self-adherence to voluntary care on either a near-term or long-term basis. Clients
who have experienced involuntary hospitalization commonly describe
experiencing it as carceral and violent. Cal Voices opposed a previous version of
this bill unless it is amended to (1) remove the authority of peace officers to initiate
5150 psychiatric holds, and (2) strike the expansion of hold-writing authority to
practitioners in private practice.
While this bill has been amended to more in a direction more towards what the
opposition would like to see, no formal removal of opposition has been expressed.
Prepared by: Reyes Diaz / HEALTH / (916) 651-4111
1/12/24 11:57:27
**** END ****
AMENDED IN SENATE MARCH 18, 2024
SENATE BILL No. 905
Introduced by Senator Wiener
(Principal coauthor: Senator Jones)
(Principal coauthors: Assembly Members Cervantes, Friedman, and
Villapudua)
(Coauthors: Senators Allen, Atkins, Blakespear, Dodd, Glazer,
Grove, Newman, Niello, Ochoa Bogh, Roth, Rubio, Seyarto, and
Umberg)
(Coauthors: Assembly Members Addis, Alanis, Arambula, Berman,
Grayson, Lackey, Papan, Pellerin, Petrie-Norris, Blanca Rubio,
Ting, Wallis, and Wilson)
January 4, 2024
An act to add Section 465 Sections 465 and 496.5 to the Penal Code,
relating to crime. crimes.
legislative counsel’s digest
SB 905, as amended, Wiener. Unlawful entry of a vehicle. Crimes:
theft from a vehicle.
Existing law defines the crime of burglary to include entering a vehicle
when the doors are locked with the intent to commit grand or petit
larceny or a felony. Existing law makes the burglary of a vehicle
punishable as a misdemeanor or a felony.
This bill would make forcibly entering a vehicle, as defined, with the
intent to commit a theft therein a crime punishable by imprisonment in
a county jail for a period not to exceed one year or imprisonment in a
county jail for 16 months, or 2 or 3 years. By creating a new crime, this
bill would impose a state-mandated local program.
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Existing law prohibits the taking of the personal property of another,
as specified, prohibits removing any part of a vehicle without the consent
of the owner, and prohibits the possession or receipt of stolen property,
as specified. A violation of these prohibitions is punishable as either a
misdemeanor or a felony.
This bill would make it a crime for a person to unlawfully possess
property that was acquired through one or more acts of theft from a
vehicle, unlawful entry of a vehicle, burglary of a locked vehicle, or
vehicle tampering, if the property is not possessed for personal use and
the person has the intent to sell or exchange the property, or the intent
to act with another person to sell or exchange the property, and the
value of the possessed property exceeds $950. The bill would, for the
purpose of determining the value, allow the aggregation of the value
of other illegally obtained property possessed by the person within the
past ____ years. The bill would make this crime punishable as a
misdemeanor or a felony. By creating a new crime, this bill would
impose a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the state.
Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act
for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
The people of the State of California do enact as follows:
line 1 SECTION 1. Section 465 is added to the Penal Code, to read:
line 2 465. (a) A person who forcibly enters a vehicle, as defined in
line 3 Section 670 of the Vehicle Code, with the intent to commit a theft
line 4 therein is guilty of unlawful entry of a vehicle.
line 5 (b) Unlawful entry of a vehicle is punishable by imprisonment
line 6 in a county jail for a period not to exceed one year or imprisonment
line 7 pursuant to subdivision (h) of Section 1170.
line 8 (c) As used in this section, forcible entry of a vehicle means the
line 9 entry of a vehicle accomplished through either of the following
line 10 means:
line 11 (1) Force that damages the exterior of the vehicle, including,
line 12 but not limited to, breaking a window, cutting a convertible top,
line 13 punching a lock, or prying open a door.
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line 1 (2) Use of a tool or device that manipulates the locking
line 2 mechanism, including, without limitation, a slim jim or other
line 3 lockout tool, a shaved key, jiggler key, or lock pick, or an electronic
line 4 device such as a signal extender.
line 5 (d) No A person may not be convicted both pursuant to this
line 6 section and pursuant to Section 459.
line 7 SEC. 2. Section 496.5 is added to the Penal Code, to read:
line 8 496.5. (a) A person who unlawfully possesses property that
line 9 was acquired through one or more acts of theft from a vehicle,
line 10 unlawful entry of a vehicle, burglary of a locked vehicle, or vehicle
line 11 tampering as defined in Section 10852 of the Vehicle Code, whether
line 12 or not the person committed the act of theft, burglary, or vehicle
line 13 tampering, is guilty of automotive property theft for resale when
line 14 all of the following apply:
line 15 (1) The property is not possessed for personal use and the
line 16 person has the intent to sell or exchange the property for value,
line 17 or the intent to act in concert with one or more persons to sell or
line 18 exchange the property for value.
line 19 (2) The value of the possessed property exceeds nine hundred
line 20 fifty dollars ($950). For purposes of determining the value of the
line 21 property, the property described in paragraph (1) can be
line 22 considered in the aggregate with any of the following:
line 23 (A) Any other such property possessed by the person with such
line 24 intent within the last ____ years.
line 25 (B) Any property possessed by another person acting in concert
line 26 with the first person to sell or exchange the property for value,
line 27 when that property was acquired through one or more acts of theft
line 28 from a vehicle, unlawful entry of a vehicle, burglary of a locked
line 29 vehicle, or vehicle tampering as defined in Section 10852 of the
line 30 Vehicle Code, regardless of the identity of the person committing
line 31 the acts of theft, burglary, or vehicle tampering.
line 32 (b) For the purpose of determining, in any proceeding, whether
line 33 the defendant had the intent to sell or exchange the property for
line 34 value, the trier of fact may consider any competent evidence,
line 35 including, but not limited to, the following:
line 36 (1) Whether the defendant has in the past ____ years sold or
line 37 exchanged for value any property acquired through theft from a
line 38 vehicle, burglary of a locked vehicle, or vehicle tampering as
line 39 defined in Section 10852 of the Vehicle Code, or through any
line 40 related offenses, including any conduct that occurred in other
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SB 905 — 3 —
line 1 jurisdictions, if relevant to demonstrate a fact other than the
line 2 defendant’s disposition to commit the act, as provided by
line 3 subdivision (b) of Section 1101 of the Evidence Code.
line 4 (2) Whether the property involved in the offense is of a type or
line 5 quantity that would not normally be purchased for personal use
line 6 or consumption, including use or consumption by one’s immediate
line 7 family.
line 8 (c) A violation of subdivision (a) is punishable by imprisonment
line 9 in the county jail for up to one year or pursuant to subdivision (h)
line 10 of Section 1170.
line 11 SEC. 2.
line 12 SEC. 3. No reimbursement is required by this act pursuant to
line 13 Section 6 of Article XIIIB of the California Constitution because
line 14 the only costs that may be incurred by a local agency or school
line 15 district will be incurred because this act creates a new crime or
line 16 infraction, eliminates a crime or infraction, or changes the penalty
line 17 for a crime or infraction, within the meaning of Section 17556 of
line 18 the Government Code, or changes the definition of a crime within
line 19 the meaning of Section 6 of Article XIII B of the California
line 20 Constitution.
O
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SENATE BILL No. 1011
Introduced by Senator Jones
(Principal coauthor: Senator Blakespear)
(Coauthors: Senators Alvarado-Gil, Dahle, Dodd, Grove, Nguyen,
Niello, Ochoa Bogh, Seyarto, and Wilk)
(Coauthors: Assembly Members Alanis, Megan Dahle, Davies, Essayli,
Flora, Gallagher, Joe Patterson, and Sanchez)
February 5, 2024
An act to add Section 647.10 to the Penal Code, relating to public
safety.
legislative counsel’s digest
SB 1011, as introduced, Jones. Encampments: penalties.
Under existing law, a person who lodges in a public or private place
without permission is guilty of disorderly conduct, a misdemeanor.
Existing law also provides that a person who willfully and maliciously
obstructs the free movement of any person on any street, sidewalk, or
other public place is guilty of a misdemeanor.
Under existing law, a nuisance is anything that is injurious to health
or indecent or offensive to the senses, or an obstruction to the free use
of property, so as to interfere with the comfortable enjoyment of life or
property. Existing law also provides that a nuisance is anything that
obstructs the free passage or use of any public park, square, street, or
highway, among other things. Under existing law, a public nuisance is
a nuisance that affects the entire community, neighborhood, or a
considerable number of persons. Existing law provides various remedies
against a public nuisance, including abatement by any public body or
officer authorized by law.
This bill would prohibit a person from sitting, lying, sleeping, or
storing, using, maintaining, or placing personal property upon a street
99
or sidewalk if a homeless shelter, as defined, is available to the person.
The bill would also prohibit sitting, lying, sleeping, or storing, using,
maintaining, or placing personal property within 500 feet of a public
or private school, open space, or major transit stop, as specified. The
bill would specify that a violation of this prohibition is a public nuisance
that can be abated and prevented, as specified. The bill would also
provide that a violation of the prohibition may be charged as a
misdemeanor or an infraction, at the discretion of the prosecutor. The
bill would prohibit a person from being found in violation of the bill’s
provisions unless provided notice, at least 72 hours before
commencement of any enforcement action, as specified. By imposing
criminal penalties for a violation of these provisions, this bill would
impose a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the state.
Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act
for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
The people of the State of California do enact as follows:
line 1 SECTION 1. Section 647.10 is added to the Penal Code, to
line 2 read:
line 3 647.10. (a) For the purposes of this section, the following
line 4 definitions apply:
line 5 (1) “Homeless shelter” means any of the following:
line 6 (A) An emergency shelter, as defined in Section 576.2 of Title
line 7 24 of the Code of Federal Regulations.
line 8 (B) An emergency shelter, as defined in subdivision (e) of
line 9 Section 50801 of the Health and Safety Code.
line 10 (C) A navigation center, as defined in Section 50216 of the
line 11 Health and Safety Code.
line 12 (2) “Major transit stop” has the same meaning as defined in
line 13 Section 21064.3 of the Public Resources Code.
line 14 (3) “Open space” means a parcel or area of land or water that
line 15 is substantially unimproved and devoted to an open-space use, as
line 16 defined in Section 65560 of the Government Code.
line 17 (4) “Peace officer” means a person described in Section 830.
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— 2 — SB 1011
line 1 (b) A person shall not sit, lie, sleep, or store, use, maintain, or
line 2 place personal property upon a street or sidewalk if a homeless
line 3 shelter is available to the person.
line 4 (c) A person shall not sit, lie, sleep, or store, use, maintain, or
line 5 place personal property upon a street, sidewalk, or other public
line 6 property within the following locations:
line 7 (1) Five hundred feet of a public or private school providing
line 8 instruction in kindergarten or grades 1 to 12, inclusive.
line 9 (2) An open space.
line 10 (3) A major transit stop.
line 11 (d) Subject to subdivision (e), this section may be enforced as
line 12 follows:
line 13 (1) A violation of this section is a public nuisance that may be
line 14 enjoined, abated, and prevented. The district attorney, county
line 15 counsel of the county, or the city attorney of any incorporated city
line 16 or of any city and county, in the name of the people, may maintain
line 17 an action to abate and prevent the nuisance. Before pursuing
line 18 abatement authorized by this paragraph, the district attorney, county
line 19 counsel, or city attorney, as applicable, shall ensure that the person
line 20 found to be in violation of this section has received verbal or
line 21 written information regarding alternative locations to sleep,
line 22 homeless and mental health services, or homeless shelters in the
line 23 area.
line 24 (2) A violation of this section may be charged as a misdemeanor
line 25 or an infraction, at the discretion of the prosecutor.
line 26 (e) A person shall not be found to be in violation of this section
line 27 unless a peace officer employed by the county or city, as applicable,
line 28 with jurisdiction over the location has provided that person written
line 29 notice, at least 72 hours before commencement of any enforcement
line 30 action described in subdivision (d), that the person is prohibited
line 31 from sitting, lying, sleeping, or storing, using, maintaining, or
line 32 placing personal property upon a street, sidewalk, or other public
line 33 property pursuant to this section. A written notice shall only be
line 34 deemed to have been provided for the purposes of this subdivision
line 35 if the notice is given in a language understood by the person
line 36 receiving the notice.
line 37 SEC. 2. No reimbursement is required by this act pursuant to
line 38 Section 6 of Article XIIIB of the California Constitution because
line 39 the only costs that may be incurred by a local agency or school
line 40 district will be incurred because this act creates a new crime or
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SB 1011 — 3 —
line 1 infraction, eliminates a crime or infraction, or changes the penalty
line 2 for a crime or infraction, within the meaning of Section 17556 of
line 3 the Government Code, or changes the definition of a crime within
line 4 the meaning of Section 6 of Article XIII B of the California
line 5 Constitution.
O
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AMENDED IN SENATE MARCH 18, 2024
SENATE BILL No. 1031
Introduced by Senator Senators Wiener and Wahab
(Principal coauthor: Assembly Member Ting)
February 6, 2024
An act to amend Section 9146 of the Government Code, relating to
the Legislature. Sections 65081 and 66516 of, to add Section 13978.9
to, to add the heading of Division 1 (commencing with Section 66500)
to Title 7.1 of, and to add Division 2 (commencing with Section 66538)
to Title 7.1 of, the Government Code, to amend Section 99270.5 of the
Public Utilities Code, to add Section 976.9 to the Unemployment
Insurance Code, and to add Section 9250.3 to the Vehicle Code, relating
to transportation.
legislative counsel’s digest
SB 1031, as amended, Wiener. Legislative review of state agency
action. San Francisco Bay area: local revenue measure: transportation
improvements.
(1) Existing law creates the Metropolitan Transportation Commission
as a local area planning agency for the 9-county San Francisco Bay
area with comprehensive regional transportation planning and other
related responsibilities. Existing law creates various transit districts
located in the San Francisco Bay area, with specified powers and duties
relating to providing public transit services.
This bill would authorize the commission to raise and allocate new
revenue and incur and issue bonds and other indebtedness, as specified.
In this regard, the bill would authorize the commission to impose a
retail transactions and use tax, a regional payroll tax, a parcel tax, and
a regional vehicle registration surcharge in all or a subset of the 9
98
counties of the San Francisco Bay area, in accordance with applicable
constitutional requirements. The bill would require the parcel tax to
be collected by counties and the other 3 taxes to be collected by specified
state agencies, and would require the net revenues from those taxes to
be remitted to the commission, as prescribed. The bill would require
the revenue generated pursuant to these provisions to be used for
transportation improvements in the San Francisco Bay area, including
for various transit purposes, and would require the commission to
distribute those revenues in accordance with specified requirements
and expressions of legislative intent.
By adding to the duties of local officials with respect to elections
procedures for revenue measures on behalf of the commission, this bill
would impose a state-mandated local program.
(2) Existing law establishes the Transportation Agency, consisting
of various state agencies under the supervision of an executive officer
known as the Secretary of Transportation, who is required to develop
and report to the Governor on legislative, budgetary, and administrative
programs to accomplish comprehensive, long-range, and coordinated
planning and policy formulation in the matters of public interest related
to the agency.
This bill would require the Transportation Agency to select a
transportation institute, as defined, to conduct an assessment of the
associated advantages and disadvantages of consolidating all of the
transit agencies, as defined, that are located in the 9-county San
Francisco Bay area, as specified. The bill would require that assessment
to be completed on or before January 1, 2026, and would require, as
part of that assessment, the transportation institute to provide
recommendations on how to consolidate those transit agencies and to
include certain information in the assessment. Based on the findings of
the assessment, the bill would require the Transportation Agency, on
or before January 1, 2027, to recommend a comprehensive plan to
consolidate all of the transit agencies located in the San Francisco Bay
area, as provided. The bill would establish the Bay Area Transit
Consolidation Technical Assistance Fund in the State Treasury for the
deposit of moneys that can be used for specified purposes, including
paying for the cost of conducting the assessment and preparing the
comprehensive plan, as specified. The bill would require the assessment
and the comprehensive plan to be submitted to the Legislature upon
completion.
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(3) Existing law requires the Metropolitan Transportation
Commission to adopt rules and regulations to promote the coordination
of fares and schedules for all public transit systems within its
jurisdiction, as specified.
This bill would revise and recast this provision by, among other
things, providing that the commission is responsible for implementing
a seamless transit rider experience across the San Francisco Bay area
and requiring those rules and regulations to also promote the
coordination of mapping and wayfinding, real-time transit information,
and other customer-facing operating policies, as specified. The bill
would also declare that it is intent of the Legislature that the commission
implement and sustain specified outcomes in undertaking these
responsibilities. The bill would require the commission to submit an
annual report to the Legislature on the status of those outcomes and
the status of transit ridership in the San Francisco Bay area. By
imposing additional duties on the commission, the bill would create a
state-mandated local program.
(4) Under existing law, a transit operator within the jurisdiction of
the commission is not eligible to receive funding allocated by the
commission pursuant to the State Transit Assistance Program unless
it has complied with the above-described rules and regulations adopted
by the commission.
This bill would also make a transit operator ineligible to receive an
allocation from the commission of the revenues generated by the new
taxing authority authorized by the bill or to make a claim pursuant to
the Transportation Development Act for an allocation of funds from a
local transportation fund if the operator is not in compliance with those
rules and regulations.
(5) Existing law authorizes the commission and the Bay Area Air
Quality Management District to jointly adopt a commute benefit
ordinance that requires covered employers operating within the common
area of the 2 agencies with a specified number of covered employees
to offer those employees certain commute benefits, as specified.
This bill would also authorize one of those commute benefit options
to include an employer-provided regional transit pass.
This bill would authorize the commission, as part of a measure to
impose a tax described above, to propose a ballot measure that would
require a covered employer that is located in proximity to transit to
purchase a regional transit pass for each of its employees and to require
a covered employer that is not located in proximity to transit to provide
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SB 1031 — 3 —
a subsidy to each of its employees corresponding in financial value to
the regional transit pass, as specified. If the ballot measure is approved
by the voters, the bill would require the commission and the district to
update the ordinance accordingly.
(6) The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the state.
Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to the statutory
provisions noted above.
Existing law requires a state agency, as specified, to notify the Joint
Legislative Budget Committee not less than 60 days prior to the effective
date on which the state agency will establish or change a federal aid
allocation formula to a local agency. If the chairman of the committee
informs committee members of his intention to waive the 60-day
notification period, existing law permits the chairman to grant a waiver
of that notification period after receipt of the notification. Under existing
law, upon the request of the chairman or any member of the committee,
the committee must schedule a hearing on the proposed allocation
formula to be established or changed.
This bill would make technical, nonsubstantive changes to those
provisions to use gender-neutral language.
Vote: majority. Appropriation: no. Fiscal committee: no yes.
State-mandated local program: no yes.
The people of the State of California do enact as follows:
line 1 SECTION 1. The Legislature finds and declares all of the
line 2 following:
line 3 (a) The San Francisco Bay area needs a world-class, reliable,
line 4 affordable, efficient, and connected transportation network that
line 5 meets the needs of bay area residents, businesses, and visitors
line 6 while also helping combat the climate crisis.
line 7 (b) A world-class transportation network will enhance access
line 8 to opportunity, lower greenhouse gas emissions, strengthen the
line 9 region’s economy, and improve quality of life.
line 10 (c) To achieve that vision, the San Francisco Bay area needs
line 11 all of the following:
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line 1 (1) A public transit network that offers safe, clean, frequent,
line 2 accessible, easy-to-navigate, and reliable service that gets transit
line 3 riders where they want and need to go safely, affordably, quickly,
line 4 and seamlessly.
line 5 (2) Local roads that are well maintained.
line 6 (3) Transit, biking, walking, and wheeling options that are safe,
line 7 convenient, and competitive alternatives to driving.
line 8 (d) Regional funding and reforms are necessary to create a
line 9 climate-friendly transportation system that is safe, accessible, and
line 10 convenient for all, including through doing all of the following:
line 11 (1) Protecting and enhancing transit service.
line 12 (2) Making transit faster, safer, and easier to use.
line 13 (3) Enhancing mobility and access for all.
line 14 SEC. 2. This act shall be known, and may be cited as, the ____
line 15 Act of 2024.
line 16 SEC. 3. Section 13978.9 is added to the Government Code, to
line 17 read:
line 18 13978.9. (a) For purposes of this section, the following
line 19 definitions apply:
line 20 (1) “Commission” means the Metropolitan Transportation
line 21 Commission.
line 22 (2) “San Francisco Bay area” means the region comprising
line 23 the commission’s jurisdiction, as prescribed by Section 66502.
line 24 (3) “Transit agency” has the same meaning as “public
line 25 transportation operator” as defined in subdivision (b) of Section
line 26 99312.2 of the Public Utilities Code.
line 27 (4) “Transportation institute” means either the University of
line 28 California Institute of Transportation Studies or the Mineta
line 29 Transportation Institute at San José State University.
line 30 (b) (1) The Transportation Agency shall select a transportation
line 31 institute to conduct an assessment of the associated advantages
line 32 and disadvantages of consolidating all of the transit agencies that
line 33 are located within the San Francisco Bay area, and shall oversee
line 34 the transportation institute in that regard. The transportation
line 35 institute shall complete the assessment on or before January 1,
line 36 2026, and upon completion, shall submit the assessment to the
line 37 Legislature in compliance with Section 9795, and to the
line 38 commission and each of the transit agencies located in the San
line 39 Francisco Bay area.
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SB 1031 — 5 —
line 1 (2) In undertaking the duties set forth in paragraph (1), the
line 2 Transportation Agency shall consult with impacted stakeholders,
line 3 included, but not limited to, impacted transit agencies, transit
line 4 unions, transit riders, and local governments.
line 5 (3) If the Transportation Agency selects the University of
line 6 California Institute of Transportation Studies to complete the
line 7 assessment, the requirement to complete the assessment shall only
line 8 apply to the University of California to the extent that the Regents
line 9 of the University of California, by appropriate resolution, make
line 10 that requirement applicable.
line 11 (4) In conducting the assessment, the transportation institute
line 12 shall also study the impact that regional consolidation would have
line 13 on wages, work conditions, pension, and retirement benefits of
line 14 workers covered by collective bargaining agreements at relevant
line 15 agencies.
line 16 (5) As part of the assessment, the transportation institute shall
line 17 provide recommendations on how to consolidate those transit
line 18 agencies in a manner that does all of the following:
line 19 (A) Prioritizes cost savings to the public, the adoption of
line 20 advanced technology, and other efficiencies.
line 21 (B) Meets and exceeds climate goals.
line 22 (C) Improves the speed of transit and the seamlessness of
line 23 transfers.
line 24 (D) Advances any other improvements to transit operations.
line 25 (6) The transportation institute shall identify, at a minimum, all
line 26 of the following information in the assessment:
line 27 (A) Each transit agency, and each agency that has authority to
line 28 create policy or assess charges with regard to transit, that is
line 29 located in the San Francisco Bay area and whether the governing
line 30 body of those agencies is appointed or elected.
line 31 (B) The size of the membership, terms of service of the members,
line 32 and whether the members are voting members, for each governing
line 33 body of an agency described in subparagraph (A).
line 34 (C) Whether the governing body of an agency described in
line 35 subparagraph (A) was created pursuant to state statute, local
line 36 ordinance, city charter, federal law, or ballot measure or initiative.
line 37 (D) The county where each agency described in subparagraph
line 38 (A) and its governing body is located.
line 39 (E) Any qualifications required to serve as a member of the
line 40 governing board of an agency described in subparagraph (A).
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— 6 — SB 1031
line 1 (F) The funding structures, including any tax assessments, and
line 2 revenue mechanisms, including any temporary or permanent state
line 3 or federal support, or both, established for each agency described
line 4 in subparagraph (A).
line 5 (G) The fares or other fees imposed on riders by each transit
line 6 agency and the available routes provided by each transit agency.
line 7 (H) The fleet type and size of each transit agency.
line 8 (I) The programs and services offered to riders by each transit
line 9 agency, including any subsidies offered to riders.
line 10 (J) The workforce size and type of each agency described in
line 11 subparagraph (A), whether there are any applicable labor
line 12 contracts for that workforce, and the socioeconomic makeup of
line 13 that workforce.
line 14 (K) The socioeconomic makeup of the riders of each transit
line 15 agency.
line 16 (L) The continuity of travel between public transit systems
line 17 operated by different transit agencies and between different
line 18 services or programs operated by the same transit agency.
line 19 (M) Infrastructure gaps between routes of regional travel.
line 20 (N) Service gaps between routes of travel.
line 21 (O) Existing and planned regional network management efforts,
line 22 including efforts to modify and improve the commission’s regional
line 23 network management authority, and how consolidation would
line 24 relate to, or impact, those efforts.
line 25 (c) Based on the findings of the assessment conducted pursuant
line 26 to subdivision (b), the Transportation Agency shall recommend a
line 27 comprehensive plan to consolidate all of the transit agencies that
line 28 are located in the San Francisco Bay area. The Transportation
line 29 Agency shall complete the plan on or before January 1, 2027, and,
line 30 upon completion, shall submit the plan to the Legislature in
line 31 compliance with Section 9795, and to the commission and each
line 32 of the transit agencies located in the San Francisco Bay area. In
line 33 the plan, the Transportation Agency shall do all of the following:
line 34 (1) Design the plan in a manner that provides benefits to riders,
line 35 including paratransit riders, and that does all of the following:
line 36 (A) Improves access to routes and services, including across
line 37 city and county boundaries, and improves connections to regional
line 38 and interregional transit service in a manner that competes with
line 39 private automobile travel.
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SB 1031 — 7 —
line 1 (B) Maintains affordable fares and reliable, safe, and efficient
line 2 service.
line 3 (C) Improves and simplifies the accountability of the
line 4 transportation system to the public and riders.
line 5 (D) Supports greater efficiency and cost-effectiveness, and
line 6 reduces administrative costs.
line 7 (E) Provides more equitable access to quality, connected transit
line 8 services to communities throughout the region.
line 9 (2) (A) Identify opportunities to consolidate agencies and
line 10 provide specific recommendations for the consolidation or
line 11 elimination of transit agencies and their governing bodies without
line 12 resulting in the elimination of programs and transportation
line 13 services.
line 14 (B) For the purposes of this paragraph, “consolidation” may
line 15 include reforms to transit agencies that include one or more of the
line 16 following:
line 17 (i) Combining staffs of transit agencies.
line 18 (ii) Replacing multiple governing boards with a unified
line 19 governing board representing a broader jurisdiction.
line 20 (iii) Creating an umbrella structure under which existing transit
line 21 agencies are brought together but still operate as distinct divisions
line 22 with separate governing boards.
line 23 (3) Recommend a new governing structure and governing board
line 24 member qualifications, as appropriate, for a new consolidated
line 25 agency or agencies based on research of effective international
line 26 models of transit delivery excellence, and consideration of recent
line 27 regional and state studies of effective transit governance. In making
line 28 these recommendations, the Transportation Agency shall do both
line 29 of the following:
line 30 (A) Identify any future legislative steps required to implement
line 31 the recommended governing structure.
line 32 (B) Consider other reforms necessary to ensure that commission
line 33 policy is democratically accountable and serves the regional
line 34 welfare.
line 35 (4) Identify and describe any relationship or impacts of the
line 36 recommendations or elements of the plan on existing and planned
line 37 regional network management efforts or structures.
line 38 (5) Identify necessary local, state, or federal laws that may
line 39 impact efforts to implement the consolidation of the transit
line 40 agencies.
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line 1 (6) Identify steps, in consultation with impacted stakeholders,
line 2 to maintain and transfer labor agreements and bargaining units
line 3 to maintain employee wages, benefits, protections, and working
line 4 conditions secured by those agreements.
line 5 (7) Identify barriers to consolidating or eliminating transit
line 6 agencies and alternative actions, including memorandums of
line 7 understanding between transit agencies, for the consolidation of
line 8 services.
line 9 (8) Describe the steps necessary for, and the feasibility of,
line 10 interoffice and interagency coordination of programs, services,
line 11 and resources for riders if consolidation is not feasible.
line 12 (9) Recommend opportunities for securing federal, state, and
line 13 local moneys that can be used to fund consolidation.
line 14 (10) Recommend a strategy for a public education and outreach
line 15 program on any proposed consolidation efforts and any proposed
line 16 coordination services and programs.
line 17 (d) (1) The Bay Area Transit Consolidation Technical
line 18 Assistance Fund is hereby established in the State Treasury for
line 19 the deposit of moneys that can be used for the following purposes:
line 20 (A) Paying for the cost of conducting the assessment pursuant
line 21 to subdivision (b) and preparing the comprehensive plan pursuant
line 22 to subdivision (c).
line 23 (B) Paying for expenses related to the implementation of the
line 24 consolidation of transit agencies located in the San Francisco Bay
line 25 area, if those consolidations occur.
line 26 (2) Any moneys deposited into the fund, including moneys
line 27 deposited into the fund pursuant to Section 66538.40, shall be
line 28 available to the Transportation Agency, upon appropriation by
line 29 the Legislature, for the purposes described in paragraph (1).
line 30 (3) The Transportation Agency may accept private donations
line 31 to be used for the purposes described in this section. Any donations
line 32 received pursuant to this paragraph shall be deposited into the
line 33 fund established pursuant to paragraph (1).
line 34 SEC. 4. Section 65081 of the Government Code is amended to
line 35 read:
line 36 65081. (a) It is the intent of the Legislature to encourage
line 37 metropolitan planning organizations and local air quality
line 38 management districts or air pollution control districts to work with
line 39 local employers to adopt policies that encourage commuting by
line 40 means other than driving alone. To encourage this, the Legislature
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SB 1031 — 9 —
line 1 hereby establishes a program in that regard in the greater San
line 2 Francisco Bay Area.
line 3 (b) Notwithstanding Section 40717.9 of the Health and Safety
line 4 Code, the Bay Area Air Quality Management District and the
line 5 Metropolitan Transportation Commission with respect to the
line 6 common area within their respective jurisdictions may jointly adopt
line 7 a commute benefit ordinance that requires covered employers
line 8 operating within the common area of the district and commission
line 9 to offer all covered employees one of the following choices:
line 10 (1) A pretax option: a program, consistent with Section 132(f)
line 11 of the Internal Revenue Code, allowing covered employees to elect
line 12 to exclude from taxable wages employee commuting costs incurred
line 13 for transit passes or vanpool charges, up to the maximum amount
line 14 allowed by federal tax law.
line 15 (2) Employer-paid benefit: a program whereby the covered
line 16 employer offers employees a subsidy to offset the monthly cost
line 17 of commuting via public transit or by vanpool, or, in addition, and
line 18 at the employer’s discretion, by bicycle. The subsidy shall be equal
line 19 to either the monthly cost of commuting via public transit or by
line 20 vanpool, or seventy-five dollars ($75), whichever is lower. The
line 21 seventy-five dollar ($75) amount shall be adjusted annually
line 22 consistent with the California Consumer Price Index. If the covered
line 23 employer chooses to offer a subsidy to offset the monthly cost of
line 24 commuting by bicycle, the subsidy shall be either the monthly cost
line 25 of commuting by bicycle or twenty dollars ($20), whichever is
line 26 lower.
line 27 (3) Employer-provided transit: transportation furnished by the
line 28 covered employer at no cost, or low cost as determined by the
line 29 district or commission, to the covered employee in a vanpool or
line 30 bus, or similar multipassenger vehicle operated by or for the
line 31 employer.
line 32 (4) Employer-provided regional transit pass: a program
line 33 whereby the covered employer offers covered employees a subsidy
line 34 in the form of a universal regional transit pass to offset the monthly
line 35 cost of commuting via public transit.
line 36 (c) Nothing in this section shall prevent a covered employer
line 37 from offering a more generous commuter benefit that is otherwise
line 38 consistent with the requirements of the applicable commute benefit
line 39 ordinance. Nothing in this section shall require employees to
line 40 change their behavior.
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line 1 (d) An employer offering, or proposing to offer, an alternative
line 2 commuter benefit on the employer’s own initiative, or an employer
line 3 otherwise required to offer an alternative commuter benefit as a
line 4 condition of a lease, original building permit, or other similar
line 5 requirement, if the alternative is not one of the options identified
line 6 in subdivision (b), may seek approval of the alternative from the
line 7 district or commission. The district or commission may approve
line 8 an alternative if it determines that the alternative provides at least
line 9 the same benefit in terms of reducing single-occupant vehicle trips
line 10 as any of the options in subdivision (b). An employer that offers
line 11 an approved alternative to covered employees in a manner
line 12 otherwise consistent with this section is not required to offer one
line 13 of the options in subdivision (b).
line 14 (e) The commute benefit ordinance shall provide covered
line 15 employers with at least six months to comply after the ordinance
line 16 is adopted.
line 17 (f) An employer that participates in or is represented by a
line 18 transportation management association that provides the employer’s
line 19 covered employees with any of the benefits in subdivision (b), or
line 20 an alternative benefit determined by the district or commission
line 21 pursuant to subdivision (d) to provide at least the same benefit in
line 22 terms of reducing single-occupant vehicle trips as any of the
line 23 options in subdivision (b), shall be deemed in compliance with the
line 24 regional ordinance, and the transportation management association
line 25 may act on behalf of those employers in that regard. The district
line 26 or commission shall communicate directly with the transportation
line 27 management association, rather than the participating employers,
line 28 to determine compliance with the ordinance.
line 29 (g) A commute benefit ordinance adopted pursuant to this
line 30 section shall specify all of the following: (1) how
line 31 (1) How the implementing agencies will inform covered
line 32 employers about the ordinance, (2) how ordinance.
line 33 (2) How compliance with the ordinance will be demonstrated,
line 34 (3) the demonstrated.
line 35 (3) The procedures for proposing and the criteria that will be
line 36 used to evaluate an alternative commuter benefit pursuant to
line 37 subdivision (d), and (4) any (d).
line 38 (4) Any consequences for noncompliance.
line 39 (h) Nothing in this section shall limit or restrict the statutory or
line 40 regulatory authority of the commission or district.
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line 1 (i) The commission shall not use federal planning funds in the
line 2 implementation of the commute benefit ordinance.
line 3 (j) (1) Notwithstanding subdivisions (b) and (d), the commission
line 4 may propose a ballot measure as part of a measure proposed
line 5 pursuant to Division 2 (commencing with Section 66538) of Title
line 6 7.1 and subject to the election procedures set forth in that division
line 7 to update the ordinance adopted pursuant to this section to do
line 8 both of the following:
line 9 (A) Require a covered employer that is located in proximity to
line 10 transit to purchase a regional transit pass for each of its employees
line 11 that provides universal and unlimited access to transit services
line 12 provided by transit agencies operating in the common area within
line 13 the jurisdiction of the district and the commission.
line 14 (B) Require a covered employer that is not located in proximity
line 15 to transit to provide a subsidy to each of its employees
line 16 corresponding in financial value to the regional transit pass
line 17 described in subparagraph (A) to encourage commuting to work
line 18 by means other than driving alone.
line 19 (2) Consistent with subdivision (b) of Section 66538.20, if the
line 20 update to the ordinance is proposed in a subset of the counties of
line 21 the San Francisco Bay area, the update to the ordinance authorized
line 22 in paragraph (1) shall apply only in those counties in which the
line 23 measure was submitted to the voters.
line 24 (3) Notwithstanding subdivisions (b) and (d), if a ballot measure
line 25 described in paragraph (1) is approved, the commission and the
line 26 district shall update the ordinance adopted pursuant to this section
line 27 to require covered employers to provide covered employees with
line 28 the applicable commuting benefit set forth in subparagraphs (A)
line 29 and (B) of paragraph (1) instead of requiring covered employers
line 30 to offer the choices described in paragraphs (1) to (4), inclusive,
line 31 of subdivision (b).
line 32 (j)
line 33 (k) As used in this section, the following terms have the
line 34 following meanings: definitions apply:
line 35 (1) “Covered employer” means any employer for which an
line 36 average of 50 or more employees per week perform work for
line 37 compensation within the area where the ordinance adopted pursuant
line 38 to this section operates. In determining the number of employees
line 39 performing work for an employer during a given week, only
line 40 employees performing work on a full-time basis shall be counted.
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line 1 (2) “Covered employee” means an employee who performed
line 2 at least an average of 20 hours of work per week within the
line 3 previous calendar month within the area where the ordinance
line 4 adopted pursuant to this section operates.
line 5 (3) “District” means the Bay Area Air Quality Management
line 6 District.
line 7 (4) “Commission” means the Metropolitan Transportation
line 8 Commission.
line 9 SEC. 5. Section 66516 of the Government Code is amended to
line 10 read:
line 11 66516. (a) (1) The commission, in coordination with the
line 12 regional transit coordinating council established by the commission
line 13 pursuant to Section 29142.4 of the Public Utilities Code,
line 14 commission shall be responsible for implementing a seamless
line 15 transit rider experience across the region. To implement this
line 16 responsibility, the commission shall adopt adopt, and update as
line 17 necessary, rules and regulations to promote the coordination of
line 18 fares and schedules fares, including fare payment methods and
line 19 transit fare integration, schedules, mapping and wayfinding,
line 20 real-time transit information, and other customer-facing operating
line 21 policies that would benefit from a regional approach for all public
line 22 transit systems agencies within its jurisdiction. The
line 23 (2) It is the intent of the Legislature that the commission’s rules
line 24 and regulations adopted pursuant to paragraph (1) be based on
line 25 the central goal of increasing transit ridership by improving the
line 26 customer experience of riding public transit in the San Francisco
line 27 Bay area and creating a seamless experience across all public
line 28 transit agencies providing service in the commission’s jurisdiction.
line 29 (3) The commission shall require every system to enter into a
line 30 joint fare revenue sharing agreement with connecting systems
line 31 consistent with the commission’s rules and regulations.
line 32 (b) Notwithstanding any other law, each public transit agency
line 33 within the region shall comply with the commission’s rules and
line 34 regulations adopted pursuant to subdivision (a) as a condition of
line 35 receiving any of the following funds:
line 36 (1) Any funds allocated pursuant to Sections 99313 and 99314
line 37 of the Public Utilities Code, consistent with Section 99314.7 of
line 38 the Public Utilities Code.
line 39 (2) Any funds allocated from a local transportation fund
line 40 administered pursuant to Article 3 (commencing with Section
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SB 1031 — 13 —
line 1 99230) of Chapter 4 of Part 11 of Division 10 of the Public Utilities
line 2 Code, consistent with subdivision (b) of Section 99270.5 of the
line 3 Public Utilities Code.
line 4 (3) Any funds allocated pursuant to Division 2 (commencing
line 5 with Section 66538).
line 6 (c) In designating the commission with the responsibility set
line 7 forth in subdivision (a), it is the intent of the Legislature that the
line 8 commission implement and sustain the following outcomes:
line 9 (1) A common fare payment system for public transit agencies
line 10 in the region.
line 11 (2) A universal regional transit pass that is valid on all public
line 12 transit agencies in the region.
line 13 (3) An integrated transit fare structure with common definitions
line 14 for adults, youth, seniors, persons with disabilities, and other
line 15 categories of riders.
line 16 (4) A common fare transfer policy that strives to eliminate any
line 17 extra fare for using more than one transit system on a single
line 18 journey.
line 19 (5) Integrated mapping, signage, and real-time schedule
line 20 information that makes transit in the region easy to navigate and
line 21 convenient for both new and existing riders.
line 22 (6) Transit services in the region that are equitably planned
line 23 and integrally managed as a unified, efficient, and reliable network,
line 24 including interagency transfer policies and coordinating schedules
line 25 at stops or station areas serving more than one public transit
line 26 agency.
line 27 (7) Transit services for older adults, people with disabilities,
line 28 and those with lower incomes that are coordinated efficiently
line 29 throughout the region.
line 30 (8) Resources are invested to provide for the comfort and safety
line 31 of transit riders.
line 32 (9) The transit network in the region uses its existing resources
line 33 more efficiently and secures new, dedicated revenue to meet its
line 34 capital and operating needs.
line 35 (d) It is the intent of the Legislature to enact legislation that
line 36 would strengthen regional network management within the region,
line 37 including the possibility of establishing a body within the
line 38 commission to guide regional network management efforts.
line 39 (e) In implementing this section, each public transit agency in
line 40 the region shall fulfill all applicable requirements under Title VI
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line 1 of the federal Civil Rights Act of 1964 (Public Law 88-352)
line 2 regarding service and fare changes.
line 3 (f) (1) The commission shall submit a report to the Legislature
line 4 on or before January 1, 2026, and each year thereafter, on the
line 5 status of the outcomes described in subdivision (c) and the status
line 6 of transit ridership in the region. The commission shall submit the
line 7 annual report to the Legislature in compliance with Section 9795.
line 8 (2) The commission shall also post the annual report described
line 9 in paragraph (1) on its internet website.
line 10 (g) For purposes of this section, “public transit agency” has
line 11 the same meaning as “STA-eligible operator,” as defined in Section
line 12 99312.2 of the Public Utilities Code.
line 13 SEC. 6. The heading of Division 1 (commencing with Section
line 14 66500) is added to Title 7.1 of the Government Code, to read:
line 15
line 16 DIVISION 1. METROPOLITAN TRANSPORTATION
line 17 COMMISSION
line 18
line 19 SEC. 7. Division 2 (commencing with Section 66538) is added
line 20 to Title 7.1 of the Government Code, to read:
line 21
line 22 DIVISION 2. TAXING AUTHORITY AND TRANSPORTATION
line 23 FUNDING
line 24
line 25 Chapter 1. Definitions
line 26
line 27 66538. For purposes of this division, the following definitions
line 28 apply:
line 29 (a) “Commission” means the Metropolitan Transportation
line 30 Commission created pursuant to Section 66502.
line 31 (b) “Public transit agency” has the same meaning as
line 32 “STA-eligible operator,” as defined in Section 99312.2 of the
line 33 Public Utilities Code.
line 34 (c) “San Francisco Bay area” has the same meaning as
line 35 “region,” as defined in Section 66502.
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SB 1031 — 15 —
line 1 Chapter 2. Special Taxes
line 2
line 3 66538.20. (a) The commission, either directly or through a
line 4 qualified voter initiative, may raise and allocate new revenue
line 5 through all of the following funding mechanisms:
line 6 (1) A retail transactions and use tax, as provided in Section
line 7 66538.22.
line 8 (2) A regional payroll tax, as provided in Section 66538.24.
line 9 (3) A parcel tax, as provided in Section 66538.26.
line 10 (4) A regional vehicle registration surcharge, as provided in
line 11 Section 66538.28.
line 12 (b) Any funding mechanism or combination of funding
line 13 mechanisms authorized pursuant to subdivision (a) that requires
line 14 voter approval pursuant to the California Constitution may be
line 15 placed on the ballot in all or a subset of the nine counties in the
line 16 San Francisco Bay area. A measure placed on the ballot in a subset
line 17 of those nine counties shall apply only in those counties in which
line 18 the measure was submitted to the voters.
line 19 (c) In addition to the procedures set forth in Chapter 4
line 20 (commencing with Section 9300) of Division 9 of the Elections
line 21 Code, if an ordinance containing a tax authorized by this chapter
line 22 is proposed by an initiative petition, the initiative shall require the
line 23 proceeds of the tax to be expended consistent with Chapter 4
line 24 (commencing with Section 66538.40).
line 25 66538.22. (a) The commission may impose a retail transactions
line 26 and use tax ordinance applicable in the San Francisco Bay area
line 27 in accordance with this division and Part 1.6 (commencing with
line 28 Section 7251) of Division 2 of the Revenue and Taxation Code.
line 29 (b) The commission, in the ordinance, shall state the nature of
line 30 the tax to be imposed, shall provide the tax rate or the maximum
line 31 tax rate, shall specify the period during which the tax will be
line 32 imposed, and shall specify the purposes for which the revenue
line 33 derived from the tax will be used. The tax rate shall be in 1⁄4 percent
line 34 increments.
line 35 (c) Notwithstanding Section 7251.1 of the Revenue and Taxation
line 36 Code, the tax rate authorized pursuant to this section shall not be
line 37 considered for purposes of the combined rate limit established by
line 38 Section 7251.1 of the Revenue and Taxation Code.
line 39 (d) Any transactions and use tax ordinance adopted pursuant
line 40 to this chapter shall be operative on the first day of the first
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line 1 calendar quarter commencing more than 110 days after adoption
line 2 of the ordinance.
line 3 (e) Before the operative date of the ordinance, the commission
line 4 shall contract with the California Department of Tax and Fee
line 5 Administration to perform all functions incidental to the
line 6 administration and operation of the ordinance.
line 7 66538.24. (a) The commission may, by ordinance, impose a
line 8 tax on every employer in the San Francisco Bay area, except an
line 9 employer defined by Section 676, 684, or 685 of the Unemployment
line 10 Insurance Code, at a percentage, as determined by the commission,
line 11 of wages paid to an individual.
line 12 (b) If the commission acts pursuant to the authorization in
line 13 subdivision (a), the commission shall contract with the Employment
line 14 Development Department to perform all functions incidental to
line 15 the administration and operation of the tax.
line 16 (c) The tax shall be collected in the same manner and at the
line 17 same time as any contributions required under Sections 977 and
line 18 977.5 of the Unemployment Insurance Code, except as provided
line 19 in this section.
line 20 66538.26. (a) Subject to Section 4 of Article XIII A of the
line 21 California Constitution, the commission may impose, by ordinance,
line 22 a parcel tax within the San Francisco Bay area pursuant to the
line 23 procedures established in Article 3.5 (commencing with Section
line 24 50075) of Chapter 1 of Part 1 of Division 1 of Title 5, Chapter 3
line 25 (commencing with Section 66538.30), and any other applicable
line 26 procedures provided by law.
line 27 (b) For purposes of this section, “parcel tax” means a special
line 28 tax imposed upon a parcel of real property at a rate that is
line 29 determined without regard to that property’s value.
line 30 (c) The commission shall provide notice of any parcel tax
line 31 imposed pursuant to this section in the manner specified in Section
line 32 54930.
line 33 (d) The parcel tax shall be collected in the same manner as
line 34 ordinary ad valorem property taxes are collected and shall be
line 35 subject to the same penalties and the same procedure, sale, and
line 36 lien priority in case of delinquency as is provided for ad valorem
line 37 taxes.
line 38 (e) A parcel tax levied pursuant to this section shall be
line 39 administered in the following manner:
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SB 1031 — 17 —
line 1 (1) Taxes collected shall be deposited into a separate fund,
line 2 which shall be established in the treasury of each county and used
line 3 only as prescribed by this division.
line 4 (2) The county shall transfer moneys from the fund to the
line 5 commission periodically as promptly as feasible. The transmittals
line 6 shall be made at least twice in each calendar quarter.
line 7 (3) The county may deduct incremental costs associated with
line 8 administering any taxes approved pursuant to this section from
line 9 the portion transferred to the commission pursuant to paragraph
line 10 (2).
line 11 66538.28. (a) The commission may, by ordinance, impose a
line 12 regional vehicle registration surcharge on each motor vehicle
line 13 registered within the San Francisco Bay area. The commission
line 14 shall not propose a measure to the electors to approve a surcharge
line 15 pursuant to this section before January 1, 2030.
line 16 (b) The commission may determine the rate of the regional
line 17 vehicle registration surcharge subject to all of the following
line 18 requirements:
line 19 (1) The surcharge shall be paid on an annual basis and shall
line 20 be collected by the Department of Motor Vehicles at the same time
line 21 and same manner as the vehicle registration pursuant to Section
line 22 9250.3 of the Vehicle Code.
line 23 (2) The amount of the surcharge shall be based on the market
line 24 value of the vehicle, as determined by the Department of Motor
line 25 Vehicles pursuant to Sections 10753, 10753.2, and 10753.5 of the
line 26 Revenue and Taxation Code, using the same vehicle ranges set
line 27 forth in the schedule established pursuant to Section 11052 of the
line 28 Revenue and Taxation Code.
line 29 (3) The surcharge amount applicable to each vehicle range in
line 30 the schedule described in paragraph (2) shall be set in amounts
line 31 that increase based on the increasing value of each vehicle range.
line 32 (4) Beginning one year after an ordinance imposing a surcharge
line 33 is approved by the voters, the amount of the surcharge in each
line 34 vehicle market range shall be adjusted in an amount equal to the
line 35 increase in the California Consumer Price Index for the prior
line 36 year, as calculated by the Department of Finance, with amounts
line 37 equal to or greater than fifty cents ($0.50) rounded to the highest
line 38 whole dollar. The incremental change shall be added to the
line 39 associated fee rate for that year.
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line 1 (c) If an ordinance imposing a regional vehicle registration
line 2 surcharge is approved by the voters pursuant to Chapter 3
line 3 (commencing with Section 66538.30), the surcharge shall apply
line 4 to the original vehicle registration occurring on or after six months
line 5 following the adoption of the ordinance by the voters and to a
line 6 renewal of registration with an expiration date on or after that
line 7 six-month period.
line 8
line 9 Chapter 3. Election Procedures
line 10
line 11 66538.30. (a) If the commission, either directly or through
line 12 qualified voter initiative, proposes a measure pursuant to Chapter
line 13 2 (commencing with Section 66538.20) that requires voter approval
line 14 pursuant to the California Constitution, the board of supervisors
line 15 of the county or counties in which the commission has determined
line 16 to place the measure on the ballot shall call a special election on
line 17 the measure. The special election shall be held no sooner than
line 18 November 2026 and shall be consolidated with the next regularly
line 19 scheduled statewide election. The measure shall be submitted to
line 20 the voters in the appropriate counties, consistent with the
line 21 requirements of Articles XIII A, XIII C, and XIII, or Article XVI,
line 22 of the California Constitution, as applicable.
line 23 (b) For the purpose of placement of a measure on the ballot,
line 24 the commission is a district, as defined in Section 317 of the
line 25 Elections Code. Except as otherwise provided in this section, a
line 26 measure proposed by the commission that requires voter approval
line 27 shall be submitted to the voters of the counties, as determined by
line 28 the commission, in accordance with the provisions of the Elections
line 29 Code applicable to districts, including Chapter 4 (commencing
line 30 with Section 9300) of Division 9 of the Elections Code.
line 31 (c) Notwithstanding any provision of the Elections Code, the
line 32 legal counsel for the commission shall prepare an impartial
line 33 analysis of the measure. Each county included in the measure shall
line 34 use the election materials provided by the commission, including
line 35 the exact ballot question, impartial analysis, and full text of the
line 36 ballot measure for inclusion in the county voter information guide.
line 37 (d) If two or more counties included in the measure are required
line 38 to prepare a translation of ballot materials into the same language
line 39 other than English, the county that contains the largest population,
line 40 as determined by the most recent federal decennial census, among
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SB 1031 — 19 —
line 1 those counties that are required to prepare a translation of ballot
line 2 materials into the same language other than English shall prepare
line 3 the translation, or authorize the commission to prepare the
line 4 translation, and that translation shall be used by the other county
line 5 or counties, as applicable.
line 6 (e) Notwithstanding Section 13116 of the Elections Code, the
line 7 elections officials of the counties where the measure will appear
line 8 on the ballot shall mutually agree to use the same letter designation
line 9 for the measure.
line 10 (f) The county clerk of each county shall report the results of
line 11 the special election to the commission. If the approval threshold
line 12 required by the California Constitution at the time the election is
line 13 achieved, the measure shall take effect in the counties in which
line 14 the measure appeared on the ballot within the timeframe specified
line 15 in the measure.
line 16 (g) (1) Notwithstanding Section 10520 of the Elections Code,
line 17 for any election at which the commission, either directly or through
line 18 qualified voter initiative, proposes a measure pursuant to
line 19 subdivision (a) of Section 66538.20 that would generate revenues,
line 20 the commission shall reimburse each county in which that measure
line 21 appears on the ballot only for the incremental costs incurred by
line 22 the county elections official related to submitting the measure to
line 23 the voters with proceeds from the measure, or if the measure fails,
line 24 with any eligible funds provided by the commission or other public
line 25 or private entity.
line 26 (2) For purposes of this subdivision, “incremental costs”
line 27 includes both of the following:
line 28 (A) The cost to prepare a translation of ballot materials into a
line 29 language other than English by any county, as described in
line 30 subdivision (d).
line 31 (B) The additional costs that exceed the costs incurred for other
line 32 election races or ballot measures, if any, appearing on the same
line 33 ballot in each county in which the measure appears on the ballot,
line 34 including both of the following:
line 35 (i) The printing and mailing of ballot materials.
line 36 (ii) The canvass of the vote regarding the measure pursuant to
line 37 Division 15 (commencing with Section 15000) of the Elections
line 38 Code.
line 39 (h) If the voters approve new revenues pursuant to this section,
line 40 the commission shall establish an independent oversight committee
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— 20 — SB 1031
line 1 within six months of the effective date of the tax increase to ensure
line 2 that any revenues generated pursuant to this section are expended
line 3 consistent with the applicable requirements set forth in Chapter
line 4 4 (commencing with Section 66538.40). The committee may be
line 5 consolidated with the oversight committee established pursuant
line 6 to subdivision (h) of section 30923 of the Streets and Highways
line 7 Code. Each representative shall be appointed by the applicable
line 8 county board of supervisors. The oversight committee may request
line 9 any documents from the commission to assist the committee in
line 10 performing its functions.
line 11
line 12 Chapter 4. Expenditures
line 13
line 14 66538.40. (a) Except as provided in subdivision (c), revenues
line 15 generated pursuant to Chapter 2 (commencing with Section
line 16 66538.20) shall only be used to fund any of the following
line 17 transportation improvements in the San Francisco Bay area:
line 18 (1) Investments that support transit transformation, including
line 19 all of the following:
line 20 (A) Sustaining, expanding, and improving transit service for
line 21 current and future transit riders.
line 22 (B) Accelerating customer-focused initiatives outlined in the
line 23 2020 Bay Area Transit Transformation Action Plan or successor
line 24 plan adopted by the commission.
line 25 (C) Transit service improvements that San Francisco Bay area
line 26 transit riders or residents identify as high-priority, including safety,
line 27 cleanliness, and first-mile and last-mile connectivity.
line 28 (D) Zero-emission transit vehicles and infrastructure.
line 29 (2) Investments that support safe streets, including investments
line 30 to transform local roads to support safety, equity, and climate
line 31 goals, including through bicycle and pedestrian infrastructure
line 32 investments, safe routes to transit, other safety enhancements, and
line 33 pothole repair.
line 34 (3) Investments that support connectivity, including mobility
line 35 improvements that close gaps and relieve bottlenecks in the
line 36 transportation network in a climate-neutral manner.
line 37 (4) Investments that support climate resilience, including
line 38 planning, design, and construction activities that protect
line 39 transportation infrastructure and nearby communities from rising
line 40 sea levels, flooding, wildfires, and extreme heat.
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SB 1031 — 21 —
line 1 (b) (1) The commission shall annually allocate a minimum of
line 2 seven hundred fifty million dollars ($750,000,000) of the revenues
line 3 generated pursuant to Chapter 2 (commencing with Section
line 4 66538.20) to fund investments consistent with the purposes set
line 5 forth in subparagraphs (A) to (C), inclusive, of paragraph (1) of
line 6 subdivision (a), including, without limitation, for payment of all
line 7 indebtedness incurred and bonds issued pursuant to Chapter 5
line 8 (commencing with Section 66538.50), and the related costs set
line 9 forth in that chapter.
line 10 (2) Notwithstanding any other law, the allocation made pursuant
line 11 to paragraph (1) shall not impair, limit, or otherwise affect
line 12 payment of any indebtedness incurred or bonds issued pursuant
line 13 to Chapter 5 (commencing with Section 66538.50), and the related
line 14 costs set forth in that chapter.
line 15 (c) Notwithstanding subdivision (a), the commission may
line 16 allocate revenues generated pursuant to Chapter 2 (commencing
line 17 with Section 66538.20) to the Transportation Agency for deposit
line 18 into the Bay Area Transit Consolidation Technical Assistance
line 19 Fund. The revenues allocated pursuant to this subdivision shall
line 20 be used for the purposes specified in subdivision (d) of Section
line 21 13978.9.
line 22 (d) It is the intent of the Legislature to enact legislation that
line 23 would clarify roadway eligibility criteria for revenues generated
line 24 pursuant to Chapter 2 (commencing with Section 66538.20),
line 25 including potential criteria around roadway capacity increases.
line 26 (e) It is the intent of the Legislature that the commission
line 27 prioritize the following focus areas when distributing revenues
line 28 generated pursuant to Chapter 2 (commencing with Section
line 29 66538.20):
line 30 (1) Fund the operations of public transit agencies, including
line 31 through providing resources to address operating shortfalls and
line 32 ensuring existing resources are maintained and used effectively.
line 33 In implementing this paragraph, the commission should prioritize
line 34 the following:
line 35 (A) Maintaining transit service for riders who rely on transit
line 36 as their primary mode of transportation.
line 37 (B) Prioritizing sustaining services used by the greatest number
line 38 of transit riders.
line 39 (2) Enhance frequency of transit service and areas served where
line 40 needed and financially sustainable.
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— 22 — SB 1031
line 1 (3) Create a seamless and convenient San Francisco Bay area
line 2 transit system that attracts far more riders than the number of
line 3 riders that used that system before January 1, 2025, by improving
line 4 public safety on transit and implementing the 2020 Bay Area
line 5 Transit Transformation Action Plan.
line 6 (4) Make it safer and easier for people of all ages and abilities
line 7 to get to where they need to go by preserving and enhancing access
line 8 for all transportation system road users, including people walking,
line 9 biking, and wheeling.
line 10 (f) (1) A public transit agency shall maintain its existing
line 11 commitment of local funds to transit operations in order to be
line 12 eligible for an allocation of funds approved by the voters pursuant
line 13 to Chapter 3 (commencing with Section 66538.30). In order to be
line 14 eligible for funding pursuant to this section, a public transit agency
line 15 shall verify to the commission that it shall not supplant any sources
line 16 of its operating revenue used for transit operations as reported to
line 17 the Controller in the most recent fiscal year pursuant to Section
line 18 99243 of the Public Utilities Code before the election approving
line 19 the revenues imposed pursuant to Chapter 2 (commencing with
line 20 Section 66538.20).
line 21 (2) Notwithstanding paragraph (1), a transit agency may reduce
line 22 the amount of funding contributed towards their operating budget
line 23 in proportion to any reduction in operating costs.
line 24 (g) In addition to the requirement set forth in subdivision (f),
line 25 in order to be eligible for an allocation of funds approved by the
line 26 voters pursuant to Chapter 3 (commencing with Section 66538.30),
line 27 a public transit agency shall be in compliance with the
line 28 commission’s rules and regulations adopted pursuant to Section
line 29 66516.
line 30 (h) The commission may retain, for its cost in administering
line 31 this chapter, an amount not to exceed 1 percent of the revenues
line 32 allocated by the commission.
line 33 (i) It is the intent of the Legislature to enact legislation that
line 34 would require the commission to consider need and geographic
line 35 balance in distributing regional transportation revenues.
line 36
line 37 Chapter 5. Bonds
line 38
line 39 66538.50. The commission may incur indebtedness and issue
line 40 bonds and other securities as follows:
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SB 1031 — 23 —
line 1 (a) The commission may incur indebtedness and issue securities
line 2 of any kind or class, and may renew the same, if that indebtedness,
line 3 howsoever evidenced, is payable solely from revenues of the
line 4 commission as specified in the indenture, trust agreement, note,
line 5 bond, lease, loan agreement, or other agreement or evidence of
line 6 indebtedness relating to those securities.
line 7 (b) (1) The commission may from time to time issue its
line 8 negotiable bonds, notes, warrants, debentures, or other securities,
line 9 hereinafter collectively called “bonds” for purposes of this section,
line 10 for any purpose specified in this division.
line 11 (2) In anticipation of the sale of the bonds as authorized by this
line 12 chapter, the commission may issue negotiable bond anticipation
line 13 notes and may renew the same from time to time. These bond
line 14 anticipation notes may be paid from the proceeds of sale of the
line 15 bonds of the commission in anticipation of which they were issued.
line 16 Bonds, notes, and other agreements relating to those bonds or
line 17 notes, hereinafter collectively called “bond anticipation notes”
line 18 for purposes of this section, and the resolution or resolutions
line 19 authorizing the same may contain any provisions, conditions, or
line 20 limitations that a bond, agreement relating to that bond, or bond
line 21 resolution of the commission may contain, except that the bond
line 22 anticipation note shall mature at a time not exceeding three years
line 23 from the date of issue or any renewal.
line 24 (c) At any time that the commission desires to issue bonds or
line 25 bond anticipation notes, it shall adopt a resolution by two-thirds
line 26 vote of all members of the commission specifying all of the
line 27 following:
line 28 (1) The purposes for which the bonds or bond anticipation notes
line 29 are to be issued, which may include all costs and estimated costs
line 30 incidental to, or connected with, the accomplishment of those
line 31 purposes, including, without limitation, engineering, inspection,
line 32 legal, fiscal agents, financial consultant and other fees, bond and
line 33 other reserve funds, credit or liquidity enhancement costs, working
line 34 capital, bond interest estimated to accrue during any construction
line 35 period and for a period not to exceed the lesser of 10 years
line 36 thereafter or the maturity date of the bonds or bond anticipation
line 37 notes, and expenses of all proceedings for the authorization,
line 38 issuance, and sale of the bonds or bond anticipation notes.
line 39 (2) The maximum principal amount of the bonds or bond
line 40 anticipation notes.
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line 1 (3) The maximum term for the bonds or bond anticipation notes.
line 2 (4) The maximum rate of interest to be payable upon the bonds
line 3 or bond anticipation notes. That interest rate shall not exceed the
line 4 maximum rate specified in Section 53531. The rate may be either
line 5 fixed or variable and shall be payable at the times and in the
line 6 manner specified in the resolution.
line 7 (d) The pledge of any taxes authorized under this division to
line 8 the bonds or bond anticipation notes authorized under this chapter
line 9 shall have priority over the use of any of those taxes for all other
line 10 purposes, except to the extent that priority is expressly restricted
line 11 in the resolution authorizing the issuance of the bonds or bond
line 12 anticipation notes.
line 13 (e) The bonds or bond anticipation notes may be sold as the
line 14 commission determines by resolution, and the bonds or bond
line 15 anticipation notes may be sold at a price above or below par,
line 16 whether by negotiated or public sale.
line 17 (f) (1) Refunding bonds or bond anticipation notes may be
line 18 issued in a principal amount sufficient to pay all, or any part, of
line 19 any of the following:
line 20 (A) The principal of the outstanding bonds or bond anticipation
line 21 notes.
line 22 (B) The premiums, if any, due upon call and redemption of those
line 23 bonds or bond anticipation notes before maturity.
line 24 (C) All expenses of the refunding, including any costs related
line 25 to credit or liquidity support, reserves, swaps, or similar
line 26 agreements.
line 27 (D) Interest on the refunding bonds or bond anticipation notes
line 28 from the date of sale of the refunding bonds or bond anticipation
line 29 notes to the date of payment of the bonds or bond anticipation
line 30 notes to be refunded out of the proceeds of the sale of the refunding
line 31 bonds or bond anticipation notes or to the date upon which the
line 32 bonds or bond anticipation notes to be refunded will be paid
line 33 pursuant to call or agreement with the holders of the bonds or
line 34 bond anticipation notes.
line 35 (E) The interest upon the bonds or bond anticipation notes to
line 36 be refunded from the date of sale of the refunding bonds or bond
line 37 anticipation notes to the date of payment of the bonds or bond
line 38 anticipation notes to be refunded or to the date upon which the
line 39 bonds or bond anticipation notes to be refunded will be paid
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SB 1031 — 25 —
line 1 pursuant to call or agreement with the holder of the bonds or bond
line 2 anticipation notes, and all other costs incident to that refunding.
line 3 (2) The provisions of this chapter for the issuance and sale of
line 4 bonds or bond anticipation notes apply to the issuance and sale
line 5 of refunding bonds or refunding bond anticipation notes.
line 6 (g) (1) Any bonds or bond anticipation notes issued pursuant
line 7 to this chapter are a legal investment for all of the following:
line 8 (A) All trust funds.
line 9 (B) The funds of insurance companies, commercial and savings
line 10 banks, and trust companies.
line 11 (C) State school funds.
line 12 (2) Whenever any money or funds may, by any law in existence
line 13 as of January 1, 2025, or later enacted, be invested in bonds of
line 14 cities, counties, school districts, or other districts within the state,
line 15 those funds may be invested in the bonds issued pursuant to this
line 16 chapter, and whenever bonds of cities, counties, school districts,
line 17 or other districts within this state may, by any law in existence as
line 18 of January 1, 2025, or later enacted, be used as security for the
line 19 performance of any act or the deposit of any public money, the
line 20 bonds issued pursuant to this chapter may be so used.
line 21 (3) The provisions of this division are in addition to all other
line 22 laws relating to legal investments and shall be controlling as the
line 23 latest expression of the Legislature with respect to laws relating
line 24 to legal investments.
line 25
line 26 Chapter 6. Miscellaneous
line 27
line 28 66538.60. Any action or proceeding to contest, question, or
line 29 deny the validity of a tax provided for in this division, the financing
line 30 of the programs and projects contemplated by this division, the
line 31 issuance of any bonds secured by those taxes, or any of the related
line 32 proceedings, shall be commenced within 60 days from the date of
line 33 the election at which the tax is approved. After that date, the
line 34 financing of the program, the issuance of the bonds, and all related
line 35 proceedings, including the collection of the taxes, shall be held
line 36 valid and incontestable in every respect.
line 37 66538.62. The commission may in its own name to do all acts
line 38 necessary or convenient for the exercise of its powers under this
line 39 division and the financing of the programs, projects and purposes
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— 26 — SB 1031
line 1 identified in this division, including, but not limited to, all of the
line 2 following:
line 3 (a) To make and enter into contracts.
line 4 (b) To employ agents or employees.
line 5 (c) To acquire, construct, manage, maintain, lease, or operate
line 6 any public facility or improvements.
line 7 (d) To sue and be sued in its own name.
line 8 (e) To apply for, accept, receive, and disburse grants, loans,
line 9 and other assistance from any agency of the United States of
line 10 America or of the State of California.
line 11 (f) To invest any money not required for the immediate
line 12 necessities of the commission, as the commission determines is
line 13 advisable.
line 14 (g) To prepare and include any necessary or helpful bond
line 15 authorizations in connection with a ballot measure or other
line 16 proceeding authorized under this division.
line 17 (h) To apply for letters of credit or other forms of financial
line 18 guarantees in order to secure the repayment of bonds and to enter
line 19 into agreements in connection with those letters of credit or
line 20 financial guarantees.
line 21 SEC. 8. Section 99270.5 of the Public Utilities Code is amended
line 22 to read:
line 23 99270.5. (a) In determining whether there is compliance with
line 24 Section 99268.1, 99268.2, 99268.3, 99268.4, 99268.5, or 99268.9,
line 25 as the case may be, by operators serving the area of the San
line 26 Francisco Bay Area Rapid Transit District, excluding the City and
line 27 County of San Francisco, the Metropolitan Transportation
line 28 Commission may make that determination for all or some of the
line 29 operators as a group, if the Metropolitan Transportation
line 30 Commission finds that the public transportation services of the
line 31 operators grouped are coordinated.
line 32 (b) Commencing with claims for the 2025–26 fiscal year, an
line 33 operator providing service within the area under the jurisdiction
line 34 of the Metropolitan Transportation Commission shall not be
line 35 eligible to make a claim pursuant Section 99260 unless the
line 36 operator is in compliance with the commission’s rules and
line 37 regulations adopted pursuant to Section 66516 of the Government
line 38 Code.
line 39 SEC. 9. Section 976.9 is added to the Unemployment Insurance
line 40 Code, to read:
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SB 1031 — 27 —
line 1 976.9. (a) (1) The department, if contracted with the
line 2 commission, shall administer and collect the tax imposed pursuant
line 3 to Section 66538.24 of the Government Code.
line 4 (2) The department shall administer and collect the tax in the
line 5 manner set forth in Section 66538.24 of the Government Code.
line 6 (b) The department may use proceeds from the tax collected
line 7 pursuant to Section 66538.24 of the Government Code to offset
line 8 the costs of all functions incidental to the administration and
line 9 operation of the contributions.
line 10 (c) After deducting all costs described in subdivision (b), the
line 11 department shall distribute the net revenues to the commission for
line 12 expenditure pursuant to Chapter 4 (commencing with Section
line 13 66538.40) of Division 2 of Title 7.1 of the Government Code.
line 14 (d) For purposes of this section, “commission” means the
line 15 Metropolitan Transportation Commission created pursuant to
line 16 Section 66502 of the Government Code.
line 17 SEC. 10. Section 9250.3 is added to the Vehicle Code, to read:
line 18 9250.3. (a) The department, if contracted with the commission,
line 19 shall collect the regional vehicle registration surcharge imposed
line 20 pursuant to Section 66538.28 of the Government Code upon the
line 21 registration or renewal of registration of a motor vehicle registered
line 22 in the county, except those vehicles that are expressly exempted
line 23 under this code from the payment of registration fees.
line 24 (b) After deducting all costs incurred pursuant to this section,
line 25 the department shall distribute the net revenues to the commission
line 26 for expenditure pursuant to Chapter 4 (commencing with Section
line 27 66538.40) of Division 2 of Title 7.1 of the Government Code.
line 28 (c) The department shall collaborate with the commission to
line 29 ensure the administration of the surcharge described in subdivision
line 30 (a) can be facilitated after the modernization of the department’s
line 31 technology systems.
line 32 (d) For purposes of this section, “commission” means the
line 33 Metropolitan Transportation Commission created pursuant to
line 34 Section 66502 of the Government Code.
line 35 SEC. 11. If the Commission on State Mandates determines that
line 36 this act contains costs mandated by the state, reimbursement to
line 37 local agencies and school districts for those costs shall be made
line 38 pursuant to Part 7 (commencing with Section 17500) of Division
line 39 4 of Title 2 of the Government Code.
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line 1 SECTION 1. Section 9146 of the Government Code is amended
line 2 to read:
line 3 9146. Any state agency which is required or permitted by
line 4 federal law or regulation to establish or alter a federal aid allocation
line 5 formula to a local agency shall notify the Joint Legislative Budget
line 6 Committee not less than 60 days prior to the effective date of the
line 7 establishment or change in the federal aid allocation formula. The
line 8 chairperson of the Joint Legislative Budget Committee may grant
line 9 a waiver of the 60-day notification period after receipt of the
line 10 notification.
line 11 The chairperson shall inform members of the Joint Legislative
line 12 Budget Committee of the chairperson’s intention to waive the
line 13 60-day notification period after such notification. If no objection
line 14 is received within 10 days, the chairperson shall proceed to grant
line 15 the waiver of the 60-day notification period.
line 16 The notification shall contain the federal law or regulation
line 17 necessitating or authorizing the establishment or change, a
line 18 description of the proposed allocation formula to be established
line 19 or changed, as the case may be, and an estimate of the resulting
line 20 increase or decrease in federal aid allocated to the affected local
line 21 agency.
line 22 When requested by the chairperson or by any member of the
line 23 committee, or when the Legislature is in session, when requested
line 24 by the chairperson of the committee, the Joint Legislative Budget
line 25 Committee shall schedule a hearing on the proposed allocation
line 26 formula to be established or changed, as the case may be.
line 27 “Local agency” as used in this section, means any city, county,
line 28 city and county, special district, school district, community college
line 29 district, and county office of education.
line 30 The establishment or changes in federal aid allocation formulas
line 31 affecting less than one hundred thousand dollars ($100,000) in
line 32 federal aid in any fiscal year shall be exempt from the provisions
line 33 of this section.
line 34 The provisions of this section shall not apply to any reallocation
line 35 of funds by a state agency from or to a local agency if the state
line 36 agency finds that either of the following conditions, or both, exist:
line 37 (a) The local agency cannot spend its entire allocation within
line 38 the period established by the federal government.
98
SB 1031 — 29 —
line 1 (b) The failure to spend the funds could lead to their recapture
line 2 by the federal government or to a reduced allocation of federal
line 3 funds in subsequent years.
O
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— 30 — SB 1031
SB 1031 Fact Sheet – Updated 03.14.24
SUMMARY
SB 1031, the Connect Bay Area Act, authorizes Bay
Area voters to consider a measure to fund climate-
friendly transportation investments in the San
Francisco Bay Area as early as 2026. The measure
would be placed upon the ballot by the
Metropolitan Transportation Commission or voter
initiative, which would choose to raise revenue
through a sales tax, a payroll tax, a parcel tax, or a
vehicle registration charge. As of October 2023,
almost two-thirds of Bay Area voters agree that
there is a need for more funding to address
transportation in the Bay Area and 78% believe that
public transit is very important for the Bay Area.
SB 1031 requires a minimum of $750 million in
revenues from a future Bay Area transportation
measure to be annually allocated to public
transportation operations and regional transit
coordination initiatives directly related to
operations spending, helping protect existing transit
service while also allowing funds to be used to
improve the customer experience across all Bay
Area transit systems. The bill also authorizes
expenditures from a ballot measure to be used to
fund:
● Zero emission transit vehicles and related
infrastructure
● Safe streets, including pothole repairs,
bicycle and pedestrian access
improvements, and safe routes to transit.
● Capital improvements to support
connectivity, including roadway and transit
capital improvement projects that support
connectivity and mobility in a climate
neutral manner.
● Climate resiliency projects to protect
transportation infrastructure.
1 BART FY 2018-19 Budget
To meet Bay Area residents’ desire for improved
and convenient public transportation, SB 1031 also
promotes efforts to improve the seamless
integration of Bay Area transit systems, by:
1. strengthening regional network
management efforts and transportation
demand management policies
2. directing the California State Transportation
Agency of Transportation (CalSTA) to select
a transportation institute to conduct an
assessment on the benefits of consolidation
for the twenty-seven public transit agencies
spanning the nine Bay Area counties
BACKGROUND/EXISTING LAW
Protecting Recovering Public Transit and Building a
World Class Bay Area Transportation System
A safe, reliable and connected Bay Area
transportation network is vital to achieving
California’s climate, social equity, economic and
workforce goals. But existing resources alone are not
enough to keep the Bay Area moving. New funds are
needed to prevent major transit service cuts and job
losses and to modernize and improve connectivity
for Bay Area residents.
Shifting travel patterns due to and after the
Coronavirus pandemic have led to significantly
reduced ridership, resulting in significant operating
deficits. These deficits also existed before the
pandemic for fare-reliant operators - as an example,
BART had predicted a $285 million operating
shortfall over 10 years due to small ridership declines
in its FY 2018-19 budget - but became existential in
nature with ridership losses stemming from the
pandemic.1 One-time federal, state and regional
funds have averted the transit fiscal cliff, but without
a major infusion of new funding several of the
Senator Scott Wiener & Senator Aisha Wahab
11th Senate District 10th Senate District
Senate Bill 1031 – Bay Area Transportation Measure Authorization
SB 1031 Fact Sheet – Updated 03.14.24
region’s largest transit systems will face major
service cuts beginning in FY 2026-27. SB 1031 aims to
prevent such cuts and provide additional funding to
enhance the transit rider experience across the Bay
Area, improving service throughout the system.
Transit agencies are working hard to regain ridership
while maintaining existing service with federal
pandemic relief. While ridership continues to
gradually recover to pre-pandemic levels across the
Bay Area, it has not fully recovered across the region.
It is uncertain when or to what extent ridership will
further recover.
Given the importance of maintaining and improving
public transit in the Bay Area to meet crucial housing,
climate, and mobility goals, legislation is needed to
help avert these structural shortfalls, support
reliable service, and fund ridership regrowth
strategies that will support long-term financial
sustainability.
FY 2023-24 State Budget Provided Temporary Relief
Anticipating the exhaustion of federal pandemic
emergency aid for transit in the coming years, last
year’s budget deal prevented proposed cuts to
public transportation capital spending and provided
$1.1 billion more in flexible public transportation
investments than anticipated over the next four
fiscal years to help support transit operations.
For the Bay Area, the state budget deal secured the
previously committed $800 million in Transit and
Intercity Rail Capital Program (TIRCP), as well as an
additional $400 million in funding for Bay Area
transit operations. This funding, combined with
emergency regional aid, successfully postponed the
fiscal cliff until mid-2026.
Starting in the fiscal year 2026-27, though, Bay Area
transit agencies collectively anticipate on the order
of $600 million in operating shortfalls. According to
polls conducted by MTC, Bay Area voters strongly
value transit, but want to see it improved, providing
a safer, cleaner and more reliable experience, with
greater schedule coordination, fare integration and
2 MTC Pavement Conditions Index Webpage
real time transit information. The $750 million floor
is the minimum needed to sustain existing service
while also providing some funding for
improvements.
Other Transportation Priorities
Bay Area voters also want to see other aspects of the
transportation system improved, particularly
repairing potholes, repaving roads, and improving
sidewalks and bike lanes to make it easier and safer
to get around. Additional needs include transit
capital projects to expand the public transportation
system, and other roadway capital projects. The
region’s pavement condition index, or PCI, is 67.2
This score is close to the threshold at which
pavement rapidly deteriorates, indicating a
significant need for roadway state of good repair.
Delivering a More Coordinated Transit System With
Stronger Oversight & Accountability
MTC has initiated many efforts at strengthening
regional transit coordination across the Bay Area’s
27 transit agencies, the most well-known being the
Clipper® universal transit fare payment system.
Efforts to improve the transit rider experience at the
regional scale were accelerated by the Bay Area’s
Blue Ribbon Transit Recovery Taskforce - comprised
of a wide array of stakeholders including transit
agency leaders, MTC commissioners, the business
community, labor and advocates. The Taskforce
produced a Transit Transformation Action Plan (TAP)
that identified over two dozen initiatives to help
improve the Bay Area’s transit system; the top three
priorities were fare integration, regional mapping
and wayfinding, and transit priority.
MTC and the operators are making progress on the
TAP, with a new universal access transit pass
program - Clipper BayPass - now in its second pilot
phase and a free and reduced transfer policy coming
on line later this year with the launch of Next
Generation Clipper. To ensure progress is made as
quickly as possible, SB 1031 provides that MTC may
condition existing and future transit funding from
the measure on operators adhering to policies set by
MTC to advance the TAP and attract more riders.
Additionally, the fragmentation of public
transportation in the Bay Area has long been a
SB 1031 Fact Sheet – Updated 03.14.24
challenge for riders and regional integration. The Bay
Area is served by 27 mass transit operators, and
transitioning between them is not always
straightforward for riders. MTC has identified a
number of potential benefits to consolidating policy
making power among the agencies, including more
effective investment and service decisions.
Engaging Employers in Solutions: Transportation
Demand Management and BayPass Program
Under current law MTC and the Bay Area Air Quality
Management District (BAAQMD) administer the Bay
Area Commuter Benefit Program which requires
Bay Area employers with 50 or more employees to
offer one of five options:
● Pre-tax benefit that allows employees to
exclude their transit or vanpool cost from
taxable income
● Employer-provided transit subsidy
● Employer-provided shuttle or van pool
● Alternative commuter benefit that is as
effective in reducing single occupancy
vehicle trips
● Telework policy that allows telework one or
more days per week for all employees
whose assignments can be performed
remotely
Additionally, the region’s BayPass program is
designed for employers and non-profit institutions
to encourage their respective employees, members,
and/or those they serve to travel via public transit.
Revenue Measure Authorizing Legislation
Placement on the Ballot and Citizens’ Initiative
In order to prevent major transit service cuts,
expand transit service, and meet other
transportation needs, SB 1031 authorizes MTC to
place a regional transportation revenue measure on
the ballot in all nine Bay Area counties or a subset
thereof. The bill allows such a measure to be placed
on the ballot either directly by MTC or by a qualified
voter initiative. Should the voters pass the measure,
SB 1031 requires MTC to establish an independent
expenditure oversight committee.
Revenue Mechanisms
SB 1031 proposes authorizing the following revenue
mechanisms for the ballot:
● Sales tax
● Regional payroll tax
● Square footage-based parcel tax
● Regional vehicle registration charge –
authorized only after 2030 when the
California Department of Motor Vehicles
(DMV) is anticipated to have fully
completed a technology modernization
upgrade to its registration system.
SB 1031 does not impose a rate cap on the revenue
mechanisms, enabling MTC to determine this
subject to polling closer to when it may place a
measure on the ballot. SB 1031 authorizes MTC to
bond against any revenue generated pursuant to
the bill.
SB 1031 includes a maintenance of effort provision
to ensure that regional transportation funds are
additive to, and not in replacement of, local transit
contributions. SB 1031 includes placeholder
language indicating the intent of the legislature to
clarify eligibility for various types of roadway
capacity expansion projects for funds from the
regional revenue measure. SB 1031 also includes
placeholder language noting the intent of the
legislature to require revenues be distributed
conscious of need and geographic balance
throughout the taxed region.
Consolidation Assessment
SB 1031 requires CalSTA to select a transportation
institute to assess consolidation of the twenty-
seven agencies across the nine Bay Area counties,
and center the needs of riders that prioritizes:
● Service to Customers (equitable service to
vulnerable populations)
● Reduced Costs (to riders and operating
costs and reducing liability)
● Increased Speed (must be faster than
utilizing a car)
● Improved Technology (21st Century
technology for riders)
● Support for California’s climate goals
● Integration Across the Bay
● Transparency and accountability of
decisions & finances
SB 1031 Fact Sheet – Updated 03.14.24
Regional Network Management
SB 1031 designates MTC with the responsibility to
adopt policies that result in the implementation of a
seamless transit rider experience across the nine-
county Bay Area region with the goal of increasing
transit ridership. This includes the following areas:
● Fares – fare payment and integration
● Schedules
● Mapping and wayfinding
● Real-time transit information
● Other customer-facing policies
SB 1031 expands on current law’s statutory
precedent which allows MTC to condition the
receipt of State Transit Assistance Funds (STA) on
transit coordination policies, expanding its authority
to condition Local Transportation Funds (LTF) and
future regional transportation revenue measure
funds.
SB 1031 also includes placeholder language stating
the intent of the legislature to strengthen regional
network management within the region, including
the possibility of establishing a body within the
commission to guide regional network management
efforts.
Transportation Demand Management
In order to strengthen the region’s BayPass program
and offer additional transportation demand
management tools for Bay Area employers, SB 1031
adds the purchase of a universal, unlimited transit
pass for an employer’s employees as a method of
compliance with the Bay Area Commuter Benefits
Program.
Subject to voter approval, SB 1031 would expand
transportation benefits for Bay Area employees by
authorizing MTC and the Bay Area Air Quality
Management District (BAAQMD) to require
employers with 50 or more employees to provide a
subsidy to incentivize non-solo driving. For
employers that are located in proximity to transit,
the employer would be required to purchase a
universal, unlimited transit pass for each of their
employees.
SUPPORT
Metropolitan Transportation Commission (Sponsor)
FOR MORE INFORMATION
Raayan Mohtashemi, Legislative Aide
Email: raayan.mohtashemi@Sen.ca.gov
Phone: (916) 651-4011
MTC Regional Revenue Measure Landing Page
Tri-Valley Cities
DANVILLE • DUBLIN • LIVERMORE • PLEASANTON • SAN RAMON
March 21, 2024
The Honorable Rebecca Bauer-Kahan
California State Assembly
1021 O Street, Suite 5210
Sacramento, CA 95814
RE: AB 2021 (Bauer-Kahan): Crimes Selling or Furnishing Tobacco or Related
Products and Paraphernalia to Underage Persons.
Tri-Valley Cities Coalition – Letter of Support
Dear Assembly Member Bauer-Kahan,
On behalf of the Tri-Valley Cities Coalition which includes the cities of Dublin, Livermore,
Pleasanton, San Ramon, and the Town of Danville, we to express our support for AB 2021, your
bill that increases the current punishment for violation of the prohibition of the sale or furnishing
of tobacco or tobacco products or paraphernalia to a person who is under 21 years of age. This
measure increases fines to $1,000 for the first offense, $5,000 for the 2nd offense, and $10,000
for the 3rd offense for a firm, corporation, business, retailer, or wholesaler.
According to a report by the California Department of Public Health, sales of other tobacco and
nicotine products have risen dramatically over the last decade in California, from $77.1 million in
2001 to $210.9 million in 2011. Additionally, three out of four teenage smokers end up smoking
into adulthood. Prevention of underage tobacco exposure can help drastically reduce the rate of
adult tobacco use, leading to a healthier future.
This bill would enact more serious financial penalties that we feel would actually mitigate the sale
of these products to underaged youth, because as of now, the penalties are only a slap on the
wrist for those who take the risk to engage in this illegal activity.
For these reasons, the Tri-Valley Cities Coalition is proud to support AB 2021 and we thank your
for your leadership on this issue.
Sincerely,
______________________ ____________________
City of Pleasanton City of San Ramon
Mayor Karla Brown Mayor David E. Hudson
CC: Senator Steven Glazer
__________________ ____________________ ____________________
Town of Danville City of Dublin City of Livermore
Mayor Karen Stepper Mayor Melissa Hernandez Mayor John Marchand
ATTACHMENT B