RECEIVE state legislative update and RATIFY or ADOPT positions on bills of interest to the Agency.

On April 6, the Senate and Assembly approved SB 1 (Beall) as the vehicle for a transportation funding deal that will raise $5.2 billion per year for transportation infrastructure, with a focus on "fix it first" road and highway repairs and maintenance work.  Attachment 1 shows the anticipated funding that will come to the State Transportation Improvement Program (STIP), County and Cities by formula for road repairs, and Monterey Salinas Transit (MST), and outlines the other statewide allocations.

This agreement goes a long way towards filling the widening gap between needs and resources due to the diminished buying power of the gas tax. Each year, California is short almost $6 billion of the funds needed just to maintain state highways: the annual need is $8 billion, but the gas tax was only bringing in $2.2 billion per year. Local streets and roads are even worse, with an annual shortfall of $7.8 billion. This bill sets aside $3 billion per year for highway, street and road maintenance.  SB 1 also provides $40 million for intercity (50%) and commuter (50%) rail capital and operating funds. The $20 million for intercity rail is split among the three existing rail corridors (San Joaquin, Capitol Corridor and Surfliner) and emerging corridors (including two projects in Monterey County).

To pay for these projects, SB 1 raises the gas tax (the first time since 1994) and indexes it to inflation for the first time ever. Senator Beall estimates the cost to the average driver will be $10/month. The timeline for phasing in the revenues is as follows:

November 2017:

• New gasoline fuel excise tax of 12 cents/gallon
• New diesel fuel excise tax of 20 cents/gallon
• Diesel sales tax increase of 4%

Spring 2018 - Transportation Improvement Fee: $25-175 per vehicle:

• $25/year for cars valued less than $5,000 (46% of all cars)

• $50/year for cars valued between $5,000 and $25,000 (41% of all cars)

• $100/year for cars valued between $25,000 and $35,000 (7% of all cars)

• $150/year for cars valued between $35,000 and $60,000 (5% of all cars)

• $175/year for cars valued over $60,000 (1% of all cars)

January 2020 - Zero emission vehicle (i.e electric cars) fee of $100/year

There are also several reforms as part of SB 1, including giving more powers to the CTC and creating the Office of Inspector General to oversee the expenditure of state transportation funds. The bill included advance mitigation for environmental impacts, which is something TAMC has supported. In addition, ACA 5 (Frazier), known as the "lockbox", will put before the voters in November 2017 a constitutional amendment ensuring this transportation funding cannot be borrowed by the state for other purposes.  SB 1 passed with a 2/3 vote in both houses, supported by a broad spectrum of stakeholders, including labor and business officials who cited the importance of transportation to California's economy, as they estimate that $1 billion in highway and transit investment supports 13,000 jobs. The entire Monterey Bay delegation supported SB 1.

Attachment 2 is the updated bill list as of April 11, 2017. Changes since the March 22 TAMC bill list are indicated with underline and cross-out. Several bills were added to the list with "watch" positions. Bills that no longer relate to TAMC priorities were deleted.

Recommended changes in Board positions:   

• AB 694 (Ting): Bicycles: clarifies that bicyclists may take a lane under certain circumstances. Staff recommends support.
• AB 1103 (Obernolte): Bicycles: yielding: authorizes bicyclists to treat a stop sign as a yield sign. This is known as the "Idaho Stop", as it has been law in Idaho since 1982, and there is evidence from that state that it decreases accidents and decreases the severity of accidents. See Web Attachment 1. The Executive Committee recommends support.
• AB 1421 (Dababneh): Railroads: noise and vibration levels - this bill was changed to a study on noise and vibration. The Executive Committee recommends changing Agency position from "oppose" to "watch".
• AB 1523 (Obernolte): Local agencies: contracts: design-build projects: enables local entities to use the design-build procurement process for local streets and roads projects. The Executive Committee recommends support.
• SB 150 (Allen): Regional transportation plans: this bill would increase the requirements for RTPs, including an appendix outlining activities prioritized based on air quality and vehicle miles traveled for maximization of co-benefits in public health, social equity and conservation. The Central Coast Coalition recommends oppose.
• SB 423 and 496 (Cannella): Indemnity: design professionals: both bills shift the burden of litigation from design professionals to local agencies. Staff recommends expressing concern to the author.
• SB 768 (Allen): Transportation projects: comprehensive development lease agreements: this is the extension of public-private partnership authority that expired on January 1, 2017. Staff recommends support.

The Board is asked to ratify the following support positions the Executive Committee took on behalf of the Board due to time pressures:

• SB 477 (Cannella): Intercity rail corridors: extensions: this is the same as the bill Cannella authored last year that was deferred until agreement could be reached with our partner rail agencies. This bill enables rail agencies to extend beyond their designated boundaries following adoption of the extension in the agency's business plan.
• ACA 5 (Frazier): Motor vehicle fees and taxes: restriction on expenditures: appropriations limit: constitutional protection of transportation revenues.
• SCA 2 (Newman): Motor vehicle fees and taxes: restriction on expenditures: constitutional protection of transportation revenues.

The TAMC adopted legislative program for 2017 is Web Attachment 2.

1. March 30, 2017 article in the Salinas Californian, "Bi-partisan bicycle advocacy for ‘Idaho stop’ law"
2. TAMC 2017 Adopted Legislative Program