,)1 Report No:

Meeting Date

17-173

June 28, 2017

Alameda-Contra Costa Transit District

STAFF RE PO RTTO:

FROM:

SUBJECT:

AC Transit Board of Directors

Michael A. Hursh, General Manager

Monthly Legislative Report

ACTION ITEM

RECOMMENDED ACTION(S)

Consider receiving the Monthly Legislative Report and approval of legislative positions

BACKG ROUND/RATIONALE

Federal Legislation Update

On May 23rd, the Trump Administration sent the Fiscal Year (FY) 2018 budget proposal toCongress. The President's $4.1 trillion budget would eliminate the federal deficit in 10 yearsthrough spending cuts. It also proposes a$54 billion increase in discretionary defense spendingoffset by an equalcut to non-defense discretionary spending.

The President's budget includes $76 billion for the Department of Transportation (DOT). Asexpected from the President's "skinny budget" that was release in March, the budgetrecommends eliminating the Transportation Investment Generating Economic Recovery(TIGER)grant program and phases out the Capital Investment Grant (CIG) program. The budget alsoeliminates funding for transit research programs and general funds for the Federal TransitAdministration's (FTA) technical assistance and training account. However, the budgetrecommends the full$9.733 billion for the FTA's programs funded by the Mass Transit Accountof the Highway Trust Fund, honoring the Fixing America's Surface Transportation(FAST) Act.

Please note that the budget proposal includes $200 billion to support the President'sinfrastructure proposal, however, the funding was not included in the DOT request.Additionally, the Trump Administration released a six-page document with key infrastructureprincipals.

Simultaneously, Congress is drafting and approving the twelve federal agency appropriationsbills before October 1, 2017 when the next fiscalyear begins.

State Legislation Update

The Legislature sprinted toward a June 2nd deadline where legislators were required to movelegislation to the second house or wait until 2018. Additionally, each house adopted their finalbudget plans and announced conference committee members. They are:

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Report No. 117-.L73

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Senator Holly Mitchell(D -- Los Angeles), ChairSenator Ricardo Lara(D - BelIGardens)Senator Richard Roth(D - Riverside)Senator Jim Nielsen(R -- TehamalSenator John Moorlach(R -- Costa Mesa)Assemblymember PhiITing(D-San Francisco), Co-ChairAssemblymember Phillip Chen(R-Diamond Bar)Assemblymember Kevin Mccarty(D-Sacramento)Assemblymember Jay Obernolte(R-Hesperia)Assemblymember Shirley Weber(D-San Diego)Assemblymember Joaquin Arambula(D-Fresno), Democratic Alternate

Lastly, now that SB chas been signed into law, the California Transportation Commission(CTC)held a two-day seminar on June 8th and June 9th to focus on implementation.

Staff recommendation

1) AB 448 (Daly) Local governments: parcel taxes: notice

Staff recommends an oppose position. This bill builds upon legislation enacted last year thatrequires local governments to provide non-resident property owners notice that a new parceltax was approved. AB 448 takes this notification process a step further by requiring that thesenotices be made within 30 days of the certification approving the new parceltax.

In addition, for parcel taxes imposed by a school or specialdistrict, the notice shallbe preparedand sent by the city or county where the school district or special district is located. The billalso clarifies that the specialdistrict or school district shallreimburse the city or county for costof providing the notices. The bill does not limit the notices to be sent where the property taxbill is sent, but to allregistered owners of a parcel.

2) SB 584 and SB 100(De Le6n) California Renewables Portfolio Standard Program

Staff recommends a support position. The Board's current position is "Support in Concept." SB584 has been gutted and amended to be used to implement the budget. The Board adopted asupport in concept position on the prior version of the bill, which included intent language totransition to 100% renewable energy.

As amended, SB].00 solely focuses on the requirement for California to generate 100 percent ofits electricity from clean renewable sources by 2045. Prior versions of this bill includedlanguage promoting the use of renewable natural gas and provisions on the use of biomethanethat would have disadvantaged the production of hydrogen.

Given that the current version of the bill is consistent with the intended language in SB 584, theBoard may want to consider a support position on SB 100.

3) SB 448 (Wieckowski) Local government: organization: districts

Staff recommends a watch position. This bill would require the State Controller to publish onits website a list of allspecialdistricts in the state, and annually update that list.

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Report No. 17-173

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Further, the bill would require all special districts to additionally submit a copy of the specialdistrict's annual audit to the Local Agency Formation Commission(LAFCO). The billdefines an"inactive district" to include a district that had no financial transactions the prior year, has noassets, debts, contracts, or judgements. SB 448 then directs the LAFCO to hold one publichearing on the dissolution of the inactive district.

B!!QGETARY/FISCAL IMPACT

There is no budgetary or fiscal impact associated with this report

ADVANTAGES/DISADVANTAGES

This report is provided to inform the Board of monthly legislative activities and to seek itsapproval to support or oppose legislation affecting AC Transit. This provides clear direction tolegislators and other bodies of AC Transit's positions.

ALTERNATIVES ANALYSIS

This report provides an update of monthly legislative activities. AC Transit could opt to deferfrom legislative positions and operate without making its positions known, leaving the Districtvulnerable to unfavorable legislation.

PRIOR RELEVANT BOAKD ACTION/POLICIES

Staff Report 17-002: 20].7 Federal and State Legislative Advocacy Programs

A'nACHMENTS

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federalUpdate from Van Scoyoc AssociatesState Legislative Report and Budget Update from Platinum AdvisorsState Legislative Bill MatrixFY 2017 Federal Advocacy ProgramFY 20].7 State Advocacy Program

Approved by:

Reviewed by:

Prepared by:

Beverly Greene, Director of Legislative Affairs & Community Relations

Beverly Greene, Director of Legislative Affairs & Community Relations

Estee Sepulveda, External Affairs Representative

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SR 17-173 Attachment I

VAN : '.S (; O 'Y O (]A S;lS FO C I A 'p E B

j!:ransportation UpdateJune 5, 2017

Steven O. Palmer. Vice PresidetttChaKnon Hanna. DirectorI)avid Haittes, Director

This Week

House

//earl/zg: .li14.4 Recur/torfzaffo/z. On Thursday, June 8, the Transportation and Infrastructure Committeewill hold a hearing on FAA Reauthorization. Transportation Secretary Elaine Chao will be the solewitness

Senate

//earl/zg: D.17S Fy 2a/8 Bzldge£. On Tuesday, June 6, the Homeland Security and Governmental AffairsCommittee will hold a hearing to examine the Trump Administration's FY 20 1 8 budget request 6or theDepartment of Homeland Security. Witnesses have not yet been announced.

I/Caring: /ilA.4 Reauf/lorfzar/o/z. On Wednesday, June 7, the Commerce, Science, and TransportationCommittee will hold a hearing on key aviation issues before the Department and the Federal AviationAdministration (FAA), including air traffic control modernization and reform, protecting airlinepassengers, and the overa]] state of the airline industry. The witness will be DOT Secretary Elaine Chao

//earl/zg: I)07'7W7SB .Nb/?zf/zaHo/zs. On Thursday, June 8, the Commerce, Science and TransportationCommittee will hold a hearing to consider Derek Kan, to be Under Secretary for Policy at DOT; andRobert Sumwalt, to be Vice Chairman of the National Transportation Safety Board.

Last Week

Congress

Last week, the House of Representatives and Senate were not in legislative session

Department of Transportation

Z)07'; PTC Grant.4tvards. On May 31, DOT announced $197 million in grants to 17 projects in 13 statesfor positive train control (PTC).

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1)0T: ,'l/P Gra/zf .4tvards. On May 31, DOT announced $527.8 million in airport improvement program(A]P) entitlement grants to 584 airports across the country. In addition, 38 airports received AJPdiscretionary grants based on high-priority project needs.

Other

I'RB: Webiitar on Value Capture Fittancittg and P3s .for Small and Medium Traltsportatiolt AgenciesReports. On Wednesday, June 7, the Transportation Research Board will conduct a webinar from 2:00pmto 3:30pm ET that features TCRP reports Glf fde lo Va/zze Cap/zzre F'f/za/zcf/zgjor Pzzh/£c 7'rcznspo//a/to/zProjects and Public TI'ansportatiotl Guidebook for Sntatl- altd Mediuttt-sized Public-Private Partnership(P3) 1ttitiatives.

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STAN :S (] 0Y0 CA S:lS FO C 'l A 'r E S

Memorandum

From:

Subject:Date:

Steve Palmer, Channon Hanna, and David HainesDepartment of Transportation (DOT) FY 2018 Budget SummaryMay 23, 2017

This memo is intended to provide summary information on the President's FY 201 8 budgetproposal, which was sent to the Congress today. The President's $4. I trillion budget for thefederal government proposes to eliminate the federal deficit in 10 years through spending cutsand new revenue generated by economic growth. The budget also proposes a $54 billionincrease in base discretionary defense spending in FY 2018, offset by an equal cut to nondefensediscretionary spending

I'he President's budget includes $76 billion for the Department of Transportation (DOT). Intotal, this is roughly the same funding level as FY 2016. The FY 2018 budget request alsoincludes $200 billion to support President Trump's infrastructure proposal. This funding was notincluded in the DOT request, but was included in the overall budget request.

TransitThe President has requested $11.2 billion for the Federal Transit Administration (FTA), thisincludes the full $9.733 billion in spending from the mass transit account (MTA) of the HTF, butdrastically reduces spending from general fund transit programs.

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e$9.7 billion for transit formula grants, this is equal to the FAST Act funding level$1.2 billion for Capital Investment Grants, which includes New Starts, Small Starts, andCore Capacity projects. This is a decrease from the FY 2017 level of $2.4 billion.

The budget request only funds projects that currently have a full funding grantagreement (FFGA) and proposes to phase out the program stating that "futureinvestments in new transit projects would be funded by the localities that use andbenefit from these localized projects"

The budget eliminates funding for transit research programs.The budget proposal eliminates general funds for the FTA's technical assistance andtraining account.

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Inf'rastructure ProposalThe President's budget request does include a blueprint for a $ I trillion infrastructure investmentfunded through a combination of $200 billion of new federal funding, incentivized non-federalfunding, and newly prioritized and expedited projects.

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Kev Principles for infrastructure proposal

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/Wake /azge!€d.&da'alj/ives//zze/}/s focusing federal dollars on the most transformativeprojects and stresses the use and benefit of taxpayer fundsfilCe!!Z.flgC.:£e4/1:4e@ support more communities moving toward a model of independenceAlight infrastriLcture investntent with etttities best suited to provide sustained and efficieltt

f/zve.sf/zze/zf -- Administration will look for opportunities to appropriately divest from certainfunctions, which will provide better services for citizens, and potentially generate budgetsavingsZ,epe/'circ f/ze private sector - P3s will not be solution to all infrastructure projects, they canhelp advance the most important, regionally significant projects

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In addition to the $200 billion in federal funding, these proposals are also included in the FY2018 budget to support the infrastructure initiative:

. air traffic control (ATC) corporatizatione increase infrastructure flexibility at the Department of Veterans Affairs (VA)e divestiture of the Power Marketing Administration's (PMA) transmission assetse reform laws governing the inland waterways trust fund

Finally, the infrastructure proposal includes the following policy proposals:e Expai'Ld the Trclttsportatiolt I)thastructure Fittaltce attd Int'location Act {TIFIA) \Release

TIFIA subsidies by $1 billion annually for 10 years, leveraging $140 billion in creditassistance and expand TIFIA eligibility!::!ft f$ppn prEDate CLctiviU bonds(PABs) atta expalld eligibility to other ttolt federalitt frastrttctltre

/nce/zf v£ze f/z/zovzzffve a/2proac/zes !Qco/zgesffo/z mfrfgarfo/z this includes congestionpricing, enhanced transit services, increased telecommuting and flex scheduling, anddeployment of advanced technologies!::&Qlgllx€ tolling Doltc'9 curd callow private iltvestment in rest areasFu)td the Water lltfrastructtLre Finaltce mtd Itlttovation Act (WIFIA) ProgramE!!w!!! Rgdte Else ofArmy CorDS of Eng1lteers cattributedladvanced bolding cuLtholities

Esrab/fs/z a Hedera/ capita/ repo/vi/zp /zd this mandatory revolving fund would helpfinance federally-owned civilian capital assetsPar//zershfp gran/.$ Hor Hedera/ a.s.9el-s -- a private partner may wish to build or improve afederal facility and donate it to the government in exchange for the right to retain revenuefrom the associated activities. The Administration is developing a proposal to oder thosepartners grants in lieu of loans to buy down the cost of a federal asset improvementEnvironmelttat review atta permittiltg Process elthancetnents

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SR 17-173 Attachment 2

June 6, 2017

TO Director Elsa Ortiz, President, and

Members of the Board

Michael Hursh, GeneraIManager

Beverly Greene, Director of Legislative Affairs & Community Relations

Steve WallauchPlatinum Advisors

FR

RE: Legislative Update

Legislative and budget deadlines have made the Capitola very busy place. May 26 was thedeadline for fiscalcommittees to hear and report bills in their first house to the floor. Both theAssembly and Senate Appropriations Committees determined which fiscal bills to move forwardin 2017 and which remained on suspense. June 2 was the house of origin deadline requiringlegislators to move legislation to the second house or leave legislation to be picked up again in2018. SB 562(Lara), the Healthy California Act, is stillin play after being tagged at$400 billionannualcost. The measure would provide comprehensive universalsingle-payer health carecoverage system for all California residents. AB 378 (Garcia, C), however, failed passage on theAssembly Floor. AB 378 would have extended the Air Resources Board's(ARB) cap-and-tradeauthority to 2030 and required ARB to adopt air pollutant emissions standards that industrialfacilities must meet to receive free allowances after 2020.

SB ]/mp/ementat/on; While the finalcontent of the SB limplementation bills wilmot beknown until the Budget Conference Committee completes its work, the CaliforniaTransportation Commission (CTC) has scheduled a kick-off seminar on June 8th & 9th focused ondeve[opingthe guide[ines on severa]SB]. programs. This two-day meeting wi]]be he]d at the

Sacramento City HallChambers. The meeting on June 8th willprovide an overview of theprograms the CTC is responsible for, and perspectives from numerous interest groups. The

June 9th meeting willinitiate the development of guidelines for various programs. The agendafor both days has been posted on the CTC's website, and these meetings will be webcast.

Cap & Trade; While negotiations to extend the cap & trade program will continue, resolutionof this effort willlikely not be attempted untilthe end of session. Given the divisiveness of thisissue the advancement of legislation in the Senate and Assembly is on hold.

As you willrecall, the Governor's proposed budget included a$2 billion expenditure plan forauction revenue that is contingent on the legislature reauthorizing the cap & trade program

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with a 2/3 vote. There are two measures pending in the legislature, which remain in theirhouse of origin. SB 775(Wieckowski), which would create a significantly revamped auctionprocess remains in the Senate EnvironmentaIQuality Committee. In the Assembly, AB 378(Cristina Garcia) failed passage on the Assembly Floor where it mustered 35 Aye votes. AB 378would essentially extend the existing auction program with a majority vote, and tie eligibility toparticipate in the auction to meeting other air pollution requirements.

In addition, last week the New Democrats, aka the moderate Democrats, released an outline ofprovisions any new cap & trade program must include. Support from the New Democrats willbe essential to pass any extension with a 2/3 vote. The following principles from the NewDemocrats are not too far out of line of the existing proposals, other than the proposaltosunset the new program in 2025.

Cap-and-Trade must be the primary greenhouse gas reduction method for California tomeet its 2030 goals.Cap-and-Trade needs to be a cost-effective mechanism to fight climate change and,therefore, must include cost containment tools like carbon offsets and free allowancesthat reduce the direct burden on consumers and limit emissions leakage to other statesAny Cap-and-Trade extension should sunset in 2025 to ensure continued legislativeoversight. Furthermore, an analysis by the Legislative Analyst's Office is crucial toevaluating the performance of the program in its entirety.Workforce development and job training for the green economy are fundamentaltoachieving our climate goals and transitioning California's workforceProgram revenues should prioritize addressing localized air pollution, particularly in nonattain ment zones.

RuralCalifornia and impacted industries - like agriculture and goods movement - shouldbenefit from equipment upgrade incentive programs to allow them to be morecompetitive in the marketplace, while reducing their emissions.

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BUDGET

Conference Comm/flee; The finalstep of the budget process is the conference committeewhere the differences between the Senate and Assembly versions of the budget are reconciledSenate Pro Tem Kevin de Leon and Speaker Anthony Rendon announced their appointments tothe Budget Conference Committee. The Senate is leading the discussion this year, with thefollowing members appointed to the committee:

Senator Holly Mitchell(D - Los Angeles), ChairSenator Ricardo Lara(D -- BelIGardens)Senator Richard Roth(D - RiversidelSenator Jim Nielsen(R -- Tehama)Senator John Moorlach(R -- Costa Mesa)

Assemblymember PhiITing(D-San Francisco), Co-Chair

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Assemblymember Phillip Chen(R-Diamond Bar)Assemblymember Kevin Mccarty(D-Sacramento)Assemblymember Jay Obernolte(R-HesperialAssemblymember Shirley Weber(D-San Diego)Assemblymember Joaquin Arambula(D-Fresno), Democratic Alternate

As in prior years, the Senate adopted the Legislative Analyst's GeneraIFund revenue estimates,which is about $900 million more than the Administration's estimates. They also adopted theLAO's property tax revenue estimates which are higher than the Administration by $100 millionin 2016-17. While it has become common forthe legislature to adopt the LAO's usually higherrevenue estimates, the finalbudget agreement willlikely use the Administration's forecast. TheGovernor can always use his line item veto authority to bring spending in balance with hisrevenue outlook.

Budget Conference Committee began meeting on May 30, and has been meeting almost everyday. Given that the budget must be adopted by midnight of June 15th, and the budget billmustbe in print for 72 hours, the Conference Committee is expected to complete its work no laterthan June1.2th. The differences between the Senate and Assembly budgets are not thatsignificant, so this should be plenty of time. Many of the items on the agenda are notnecessarily a difference in priorities, but the need for additionaltime to reach an agreementwith the Administration.

Transportat/on: The Governor's May Revise for transportation funding focused onimplementing SB lprograms. The Senate and Assembly Budget Committee concurred with theMay Revise funding adjustments for the following programs:

State Transit Assistance (STA) - STA a]]ocations are increased by $305 mi]]ion, for a tota120].7-18 STA allocation of$694 million. This amount includes the SB lincrease of$305 million,$294million in base STA formula allocations, $75 million cap & trade auction revenue for the LowCarbon Transit Operations Program(LCTOP), and a lingering$25 million in Prop IB funds thatremains available for transit operators.

Acljve Iren$pQrlqtiQr) PTQgrq :$100 mi]]ion wi]] be avai]ab]e for ATP project in 20].7-18. Thecurrent cycle for ATP includes funds through 2020-21, and the next ATP program is notschedu[ed to be adopted untiIApri120].9. Therefore, the CTC is considering adopting a 2018ATP that willprogram the SB Ifunds available in 2017-18 and 2018-19. CTC staff isrecommending that projects already programed in the current ATP be advanced into theproposed 2018 ATP, and then issue a callfor projects for the remaining funds.

Iransh& Intercity RailCapitalProgram (TIRCP): An additional$330 million is available for thisprogram in 2017-18, which includes $85 million loan repayment funds. This would be inaddition to the anticipated$150 million in cap & trade auction revenue. CalSTA plans to updateit guidelines for the existing program and anticipates awarding funds in the spring of 2018.With this next round of funding, CalSTA expects to adopt a multi-year allocation that would

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program TIRCP funds for up to 5 years, which could result in awarding over $ 1billion in TIRCPfunds .

ntercity & Commuter Rail Program:$25 million willbe allocated by CalSTAto intercity andcommuter rai]operators in 20].7-18.

LocalPartnership Program:$200 million forthe LocalPartnership Program, which would beused to match localtransportation sales tax revenue, and voter approved developer fees. TheCTC is in charge of developingthe guidelines forthis program. CTC staff has suggested that thenew Partnership Program should allocate 75% of these funds through a competitive processand 25% byformula. The State and LocalPartnership Program in Prop IB allocated 95% of thefunds by formula.

Congested Corridors Program:$250 million is appropriated to the Congested CorridorsProgram. The CTC does not shed any light on its plans for this program, other than it plans tobegin the guideline development process in June

Trade Corridor Enhancement Program:$200 million for projects improving major tradecorridors wi]]be avai]ab]e in 2017-].8. CalSTA has proposed budget trailer billlanguage thatprovides greater detailand direction on how this program willbe implemented.

Loca[Streets & Roads Funds: $445 mi]]ion in new SB]. revenue is expected to be a]]ocated tocities and counties for localstreet and road maintenance projects. This revenue is expected tobegin f[owingto cities and counties in January 2018. SB]. does include a new oversight ro]e forthe CTC on the expenditure of these funds. The CTC is expected to develop guidelines in Juneand July governing it role and the responsibilities for cities and counties in order to receive thisfunding. The CTC is expected to adopt the finalguidelines in October.

Budget Tra//er B///s on SB 1; The Administration proposed severalSB limplementation bills aspart of the May Revise. The Senate Budget Committee did not adopt these measures, butinstead adopted "place holder" language while discussions continue. The Assembly BudgetCommittee adopted the proposed language for all of these proposals except for the TradeCorridors Enhancement Program. Reconciling these differences is not listed on the ConferenceCommittee agenda. However, the Senate Budget Committee is expected to hold a hearing andact on these budget trailer bills next week.

SB IClean-uo: This proposed trailer billmakes numerous mainly clarifying and technicalchanges to provisions within SB 1. The primary change adds language to various sectionsclarifying the amount of revenue that willbe allocated to programs in the 2017-18 fiscalyear.This clarification is needed to address the fact that the fueltax revenue willonly be collectedfor 8 months of the fiscalyear. The changes also allow the Controllerto adjust the amountsallocated in orderto "true-up" the allocations during the final months of the fiscalyear. Theonly change that raises questions relates to the LocalPartnership Program. SB lspecified thatthe funds would be for counties that has received voter approvalfor transportation tax. The

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proposed amendment would replace the word "counties" with "a localor regionaltransportation agency."

Trade Corridors Enhancement Account: Trailer billlanguage is proposed to implement the

Trade Corridors Enhancement Program in SB 1. The draft language generally recasts theexisting Trade Corridors Improvement Fund that was created as part of Prop IB to become theTrade Corridors Enhancement Account. This renamed account is where 10 cents of the diesel

excise tax revenue in SB]. is deposited, and the federaIFAST Act funds are also deposited intothis account. The CTC is directed to develop guidelines and award funding underthis program,which includes the following provisions:

e No funds may be awarded to projects that include the purchase of fully automatedcargo handling equipment, but funds can be used to purchase zero or near-zero humanoperated equ\pment. Since the majority of these funds are from excise tax revenue, it isunclear whether these are eligible expenses pursuant to Article 19.60% of the funds shallbe available for projects nominated by regionaltransportationagencies and other public agencies. These projects must be consistent state freight

The CTC shallprovide reasonable geographic targets for fund allocations.40% of the funds shallbe available for projects nominated by Caltrans.CTC shallgive the highest priority to projects jointly nominated by Caltrans and regionalor other public agencies.The CTC shallconsider economic benefits and projects that improve trade corridormobility and safety while also improving emissions, and in particular reducing negativeimpacts to disadvantaged communities.

plans

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Alternative Proiect Delivery: This draft trailer billexpands the use of constructionmanager/generalcontractor and design-build methods of project delivery. However, theexpansion of this authority primarily focuses on the delivery of the projects in Riverside Countythat were funded in SB 132, which was one of the dealmaker bills. This proposalincludes thefollowing changes:

e The number of projects Caltrans may use the construction manager/generalcontractorICM/GC) for 14 additional projects. Current law limits Caltrans' use of CM/GC to eightprojects. However, two of the projects must for projects in Riverside County that arelisted in SB 132

Existing design-build authority is expanded to include up to 6 transportation projects.This new language would authorize Caltrans to select 6 projects submitted by a city,county, or transit district to use design-build authority. A transportation project wouldalso include rehabilitation projects, including bridge replacement and grade separationprojects. In addition, three of these projects are reserved for projects listed in SB 132and selected by the Riverside County Transportation Commission.The localauthority to use CM/GC method is expanded to include grade separations andbridge rehabilitation projects specified in SB 132 in Riverside County.

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New language is added extending the use of CM/GC or design-build to the constructionof the 91TollConnector to 1-15 north in Riverside County, and this new contractingauthority may be implemented through an amendment to an existing contract for the l-15 Express Lane or the 91Express Lane projects.A new bidding process would also be extended to the Riverside County projects listed inSB 132 known as A+B Bidding, or Cost-Plus-Time Bidding. This is a competitive biddingprocess that uses cost and time to determine a bid value

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LEGISLATION

Spec/a/ D/str/ct feg/s/at/on; There are two measures we have been tracking related to specialdistricts. These bills include SB 448(Wieckowski) and AB 448(Daly).

SB 448 (Wieckowski) - The goalof SB 448 is to dissolve inactive specialdistricts. Thisbillwould require the State Controller to publish on its website a list of allspecialdistricts in the state, and annually update that list. Further, the billwould require allspecialdistricts to additionally submit a copy of the specialdistrict's annualaudit to thelocalagency formation commission(LAFCO). The billalso defines an "inactive district"to include a district that had no financialtransactions the prior year, has no assets,debts, contracts, orjudgements. SB 448 then directs the LAFCO to hold one publichearing on the dissolution of the inactive district.

AB 448(Daly) - This billbuilds upon legislation enacted last year that requires localgovernments to provide non-resident property owners notice that a new parcel tax wasapproved. AB 448 takes this notification process a step further by requiring that thesenotices be made within 30 days of the certification approvingthe new parcel tax. Inaddition, for parceltaxes imposed by a schoolor specialdistrict, the notice shallbeprepared and sent by the city or county where the schooldistrict or specialdistrict islocated. The billalso clarifies that the specialdistrict or schooldistrict shallreimbursethe city orcountyfor cost of providing the notices. The billdoes not limit the notices tobe sent where the property tax billis sent, but to all registered owners of a parcel.

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SR 17-173 Attachment 3

June 6, 2017Table I Board Action Items

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Bills

B 448IDelv D)Local governments:parcel taxes: notice

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Wieckowski D)Local governmento rga nizationdistricts

publish on its website a list of allspecialdistricts inthe state, and annually update that list

IPosition : WATCH

Further, the billwould require allspecialdistricts todditionally submit a copy of the specialdistrict'snnualaudit to the localagency formationommission(LAFCO). The billdefines an "inactivestrict" to include a district that had no financial

transactions the prior year, has no assets, debts,ontracts, orjudgements. SB 448 then directs the

LAFCO to hold one public hearing on the dissolutionof the inactive district

Table 2: Board

Bills

Action Positions

Subject

IAB I is Assemblyman Frazier's renewed effort toaddress the funding shortfallfacing ourtransportation infrastructure. This billwouldgenerate about$6.6 billion in revenue for themaintenance and rehabilitation of state highwaysand localstreets and roads, as wellas providetargeted investments in public transit and goodmovement corridors.

IAB 673 was substantially amended on April18th.jl'he language in the billthat required specific safetyIfeatures on allnew buses has been removed. TheBoard may want to consider a support position onIthe amended bill.

Status Client - Position

BI(Frazier D)ra nsportation

;unding.

IASSEMBLY TRANS ISUPPOKT

AB 673

(£bu D)Public transit

operators: busp rocurement:safetyconsiderations

ISENATE T & H ESUPPonT

IAs amended, AB 673 would require a transitoperator, before purchasing new buses, to take intoconsideration recommendations and best practicesdeveloped by bus drivers that address thejfo llowing :

e Reduce the risk of assault on the driver.8 Reduce blind spots created by bus

equipment.Enhance the safety of passengers, driver.pedestrians and other vehicles.

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AB 1113

(Bloom D)State Transit

ssistance

IAB 1113 is sponsored by the California Transit ISENATE APPR

IAssociation(CTA). This billis intended to implementlcorrections to the State Controller newjinterpretation of how State Transit Assistance(STA)

ISUPPORT

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program.

AB 1509

IB k RISan Francisco BayArea Rapid TransitDistrict .

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B 562

(LgB D)he Healthy

California Act

SB 562 would create the Healthy California Act,jwhich would establish a state based universalsinglepayer health care system. SB 562 would create asingle payer system, but the billcurrently does notidentify how this system would be financed.

ASSEMBLY DESK ISUPPOKT

awhile the Affordable Care Act has resulted inincreasing the number ofindividuals having healthinsurance, Senator Lara is pursuing this billbecausehealth care costs remain high and out of reach formany. In addition, there remains uncertaintyregarding the future of the ACA.

A support position on SB 562 is consistent with prioractions by the Board in support of a universalhealthcare system.SB 595 requires the City and County of San Franciscoand the other eight Bay Area counties to conduct aspecialelection to increase the tollrate charged onstate-owned bridges within the region.

B 595

(Bea!! D)Metropolitanf'ransportationCommission: tollbridge revenues.

.SSEM BLY DESK ISUPPOKT

SB 595 currently does not specify the amount of thejtollincrease and it does not list any projects orprograms. The billmerely includes legislative findingon the need, and the generalprovisions for placinghis measure on the ballot. Asthis billmoves

jforward specific projects that would be funded withhe tollrevenuewillbe specified in the bill. In

addition, the amount of the tollincrease, or a rangeof the tollincrease, willbe specified in the bill.SB 614 allows fine revenue collected by imposingadministrative penalties to be deposited with thepublic transit agency that issued the citation.ICurrent law requires these funds to be depositedinto the generalfund of the county where thejcitation was issued.

B 614

(Hertzberg D)Public

jtransportationagencies:administrative

penalties.SCA 2

(IV9wnqn D)Motor vehicle feesand taxes:restriction on

expenditures.

.SSEM BLY TRANS ISUPPORT

lwith the passage of ACA 5, SCA 2 was placed on the ISENATEllnactive File. SCA 2 and ACA 5 are identicalandjwould prospectively prohibit the use of truck weightjfees to pay for transportation bonds approved afterjanuary 1, 2017. The billwould also expand theprotections for Public Transportation Accountrevenues to also include the 1.75% increase to the

dieselfuelsales tax that was enacted as part of the

gg!!gljwap. The ban on borrowing fees and taxes

INACTIVE ISUPPOKT

4

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ould also apply to any vehicle fees or taxesdedicated to transportation accounts

ICA 6 would allow a localgovernment to impose an ';pecialtax with a 55% approvalof the voters if the;pecialtax dedicates 100% of the revenues, not

jincluding collection and administrative expenses, to:ransportation programs and projects

CA 6(Wiener DLoca I

tra nsportation

easures: specialtaxes: voter

pproval

ENATE APPR

Held on Suspense

UPPORT

Table 3: Board Watch Positions

Bills I Subject Status Client - Position

B 17

Hplg n DIransit Pass

Program: free orred uced -fa retransit passes.

IAs approved by the Assembly AppropriationsICommittee, AB 17 would appropriate $20 millionjfrom the Public Transportation Account to createa competitive pilot program to provide free orreduced price student transit passes. Called theH'ransit Pass Pilot Program, the billdirectsCaltrans to create guidelines to award up to $5million to public entities, including universities toimplement a free or reduced price studentransit pass program.

IAB 28 re-enacts provisions that sunset onIDecember 31st 2016 that delegate thejresponsibility to Caltrans for complete NEPAreview of transportation projects.

ASSEMBLY APPR swatch

laB 28(Frazier D)Department ofH'ra nsportation :environmental

review process:federal pilotprogram.

B 378

(Garcia,Cristina D)Greenhousegases, criteria airpollutants, andtoxic aircontaminants

Signed Into Law SWATCH

IAB 378 failed passage on the Assembly Floor.f'his billextends the Air Resources Board's(ARB)jcap-and-trade authority to 2030 and integratesspecified air quality performance requirementsinto the program. Specifically, this bill:

IASSEUBLY FLooRRECONSIDERATION

IWATCH

e

©

Extends ARB's cap-and-trade authority to2030.

Prohibits ARB from permitting a facility toincrease its annualgreenhouse gas(GHG)

emissions compare to the average of

emissions reported from 2014 to 2016.

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B Authorizes ARB to adopt "no-trade zones"

or facility-specific declining GHG limitswhere facilities' emissions contribute to a

cumulative pollution burden that creates

a significant health impact.

© Requires ARB, in consultation with eachaffected local air district, to adopt air

pollutant emissions standards for

industrialfacilities subject to cap-and-trade.

Requires ARB to evaluate the air pollutantemissions of each industrialfacility, based

on specified factors.

e Prohibits ARB, after 2020, from allocatingallowances pursuant to cap-and-trade to

an industrialfacility that does not meet

the air pollutant emissions standards.

IAB 468 has been amended to delete any IASSEMBLYTRANS

preference to driver assault. As amended the billjwould add Los Angeles MetropolitanH'ransportation Authority to existing laws thatallow LAMTA to issue prohibition orders to anyperson for committing certain acts.AB 1469 would create the Transportation and IASSEMBLY APPR.Access to Public School Fund, but it does not takejHeld on Suspenseeffect unless funds are appropriated

e

B 468

(Santiago DIH'ra nsit districtsprohibitionorders.

IWatch

B 1469

(Grayson D)School

tra nsportation

IWATCH

l2-Year Bill

AB 1469 would entitle a pupilthat attends aschool that receives federaITitle Ifunding tofree transportation to and from school.

IAB].640(Eduardo Garcia) has become a two-year billand will not move forward this year. AB1640 proposed starting in 2020 to require eachregionaltransportation improvement plan todirect 25% of available funds to projects orprograms that directly benefit low incomejindividuals or transit service that connect lowincome people with criticalservices.SB 775 enacts into law a post-2020 cap and tradejSENATE E.Q.program. A "Watch" position is recommended ajthis time untilwe can determine the potentialimpact to existing funding programs

AB 1640

(gqrSiq;Eduardo D)H'ransportationfunding: low-incomecommunities.

IASSEMBLY 2 YEAR IWATCH

SB 775

(WiQslsQw$1si D)California GlobalWarmingISolutions Act of

IWATCH

6

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2006: market-based compliancemechanisms.

he new auction includes the following changes:.Directs ARB to set declining annualcaps

on emissions from covered sources

that are consistent with achieving the2030 statewide emissions goal.

.Includes a price floor and price ceiling(aprice collar) at quarterly auctions, inorder to reduce market volatility.

.Prohibits the use of carbon offsets,

banked allowances from the pre-2020market, and allowances from externalmarket programs.

.Prohibits banking of allowances for useoutside of the year they are issued.

'Requires that allallowances beauctioned, and none freely allocated, achange made possible by industryprotections in the EconomicCompetitiveness Assurance Programand family/household protections dueto the Climate Dividend.

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SR 17-173 Attachment 4

2017 Federal Advocacy Program

Funding. FY 201 7 Grant Opportunities - Secure federal funds for key capital projects and support

funding for 201 7 Project Priorities for:o Rehabilitation, expansion, and replacement of aging bus, bus facilities, and

equipment and maintain in a state of good repairo Within the Small Starts Program and other programso Bus lifting equipment programo Security cameras and wireless access technologies for buses and facilitieso Zero Emission Bus Programs

e Advocate for supplemental funding through the Federal Transit Administration (FTA) tooffset rising operating costs without jeopardizing total funding available for capitalprojects.

8 Support funding for the Transbay Terminal

e Support/seek additional funding for essential services including, but not limited toservices for access to work, school or medical facilities.

e Support eff ons to rescind the planned across-the-board cuts to all federal programscalled "Sequestration," as enacted under the Budget Control Act of 201 1 .

e Support federal funds to purchase and refurbish zero emission buses and relatedinf rastructu re .

e Support policy initiatives that relieve the undue burden of mandatory regulations byrequiring all mandates be sufficiently funded to protect the fiscal integrity of the Districtincluding Safety Management Systems (SMS) and State of Good Repair andassessment management plans.

Transportation Authorization Principles. Advocate for the inclusion of transit buses by Congress and the incoming

Administration in any initiative to enhance funding or financing opportunities fortransportation inf rastructure.

Ensure that private sector financing proposals do not replace current funding for transitfrom the Highway Trust Fund.

© Preserve continued guaranteed funding for transit from the Highway Trust Fund/MassTransit Account, and oppose any eff ons to break to 80/20 split for highways and transit

Page jl

21 of 26

SJtlbJ}Utllt UllvllO LSJ lllXplUCtOU lllU SJa.a la./\ \ll \JLllUllaVUlllaUO l\J IUblla

term growth of the Highway Trust Fund/Mass Transit Account.

. Support FTA and Congressional eff ons to make State of Good Repair for transit bussystems a strategic priority and include more funding.

Support increased funding for Small Starts programs and broad funding eligibility infederal transit programs.

Seek revisions to the Metropolitan Planning Organization (MPO) grandfather clausethat supports the direct representation of transit properties on MPOs.

Support legislation through the federal highway and transportation authorization forsafety requirements based on agency size and transportation mode.

. Support eff ons to require local labor workf orce minimums for construction projectsfunded by grants from the FTA

Other Advocacy. Support funding and coordination between Health and Human Service (HHS) agencies

and other transportation agencies to provide services to HHS clients.

Preserve modal parity by maintaining the commute tax benefits in legislation to ref ormcorporate tax rates.

Advocate for maintaining the tax exemption on municipal bonds in legislation to ref ormcorporate tax rates.

. Support legislation that encourages Single Payer health insurance.

. Advocate for funding of infrastructure improvements covered by the American withDisabilities Act (ADA).

Monitor actions regarding any eff ons to eliminate 1 3C requirements, and/or theDepartment of Labor's position with respect to applicability of 1 3C to pension reformlaw (PEPRA).

Advocate for transit-supportive legislation that mitigates climate change and/or calls forenvironmental stewardship and related funding.

e Explore options to expand the FTA's 20% spare ratio requi

8 Monitor actions that decrease funding for sanctuary cities.

nash and sustain long

e

e

e

e

©

©

e

cement

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22 of 26

SR 17-173 Attachment 5

2017 State Advocacy Program

Funding. Support eff ons to implement future transportation authorizations that at least maintain

funding level for mass transit projects and programs for bus operators in the Bay Area

e Support eff ons that increase the formula allocation of cap & trade auction revenue topublic transit operations and capital investments, and the development of anexpenditure plan for cap and trade revenue that provides an equitable investment inmass transit and infill/transit oriented development (TOD).

e Support the development of a regional toll measure expenditure plan and theenactment of legislation that provides for the equitable distribution of toll revenue forpublic transit operations and capital improvements within AC Transit's toll bridgeU\J I I l\J vI D .

Actively participate in the California Air Resources Board's (CARB) Advanced CleanTransit regulatory process.

e Support legislation and programs that would provide funding to offset the costs ofclimate change initiatives, such as pending Advanced Clean Transit regulations andany zero emission vehicles.

8 Support eff ons that create new sources of operating funds with equitable distribution toref lect urban transit needs.

8 Support eff ons for new, sustainable funding for existing transit revenues, including theState Transit Assistance (STA) program to offset the decline in available revenue.

© Support eff ons that would exempt public transit providers from state sales tax

Support local ability to increase fees and gas taxes to be used for local mass transitpurposes.

e Support congestion pricing strategies and legislation that provide an equitable multimodal distribution of generated revenues.

. Support legislative or administrative action to remove State barriers so that Medicaidtransportation funds can be used for public transit services, including ADA paratransitservices

Page jl

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\iubibit/it ltilltitlit4 a.lILa vvsul\lIlIa.ll\illiuvLvvuullllua.lIlIa.llLI llclllla.ll\iulvll/a tilllsija.tJullt/lao

and other transportation agencies to provide services to HHS clients.

e Support/seek additional funding for essential services including, but not limited toservices for access to work, school or medical facilities.

Support policy initiatives that relieve the undue burden of mandatory regulations byrequiring all mandates be sufficiently funded to protect the fiscal integrity of the District

Support eff ons to ensure public transit receives a fair share of any new tax revenue,such as revenue resulting from Proposition 64.

Support eff ons at the California Public Utilities Commissiondiscounted rates of electricity for zero emission vehicles.

. Support funding for continued operation and maintenance of the Transbay TransitCenter.

Equipment and Operations. Support legislation or administrative action that would direct Caltrans to establish and

maintain HOV and HOT lanes on state highway routes and to improve existing lanemanagement to maximize person throughput.

. Support incentives to provide bus only lanes on bridges to/from the Transbay TransitCenter.

Support legislation to exempt public transit and paratransit vehicles from state and localtruck route ordinances.

Support legislation or administrative action that would direct Caltrans to permitpermanent use of freeway shoulders by public transit buses and paratransit vehicles.

Remove or except public transit diesel-powered heavy duty vehicles from the 3000hours limitation required under the Emissions Defects Warranty established by CARB

. Support increased resources for security and safety of bus divisions.

. Support funding for zero emission vehicle workf orce training programs.

Transit Incentives. Support legislation to provide incentives for employees and employers to use public

transportation to commute to work, including tax credits for purchasing transit passes.

Support Clean Air Initiatives that encourage increased public transit use

and state legislature fore

e

e

8

e

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24 of 26

e Support legislation to provide incentives for local governments and developers toincorporate transit passes into the cost of housing.

Environment and Transit Supportive Land Use. Advocate for transit-supportive legislation that addresses climate change, healthy

communities and environments.

e Foster transit supportive land use initiatives that require coordination with transitproviders in the initial stages of local planning or project development that impactstransit, including density level decisionsl and advocate for the required use of:

o Transit streets agreements, ando Complete streets plans in which local transportation plans anticipate use of all

modes

. Support improvement to the California Environmental Protection Agency's (Cal/EPA)screening process to better account for the disadvantaged communities of the EastBay

Policy Interests. Support simple majority vote for local transportation tax initiatives

e Support legislation to allow District to ban persons for specified offenses relating toaggressive, threatening or criminal behavior against district property, assets orpersonnel and from entering District property, including buses.

e Seek revisions to the Metropolitan Transportation Commission's statutes to include thedirect representation of transit properties on its governing board.

e Support legislation for STA formula reform that includes federal operating funding aseligible revenue.

e Support efforts that maintain existing Workers' Compensation regulation

© Consider eff ons to reform tort general damages

e Monitor actions regarding any eff ons to eliminate 1 3C requirements, and/or theDepartment of Labor's position with respect to applicability of 1 3C to pension reformlaw (PEPRA).

8 Monitor administrative and regulatory compliance legislation that potentially impacts theDistrict.

Support legislation that requires jurisdictions to install Transit Signal Priority equipmentin order to receive money for traffic signal upgrades.

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e

e

e

e

Support eff ons to authorize AC Transit to enforce parking and moving violations in busonly lanes and bus stops through the use of forward-facing cameras.

Seek to harmonize treatment of independent public agency retirement systems withlarge systems (e.g. CalPERS, CalSTRS).

Support legislation that reduces liability for common carriers.

Support legislation that allows for the enforcement of priority seating.

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