TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager/Chief Executive Officer
SUBJECT: Monthly Legislative Report
ACTION ITEM
AGENDA PLANNING REQUEST: ☐
RECOMMENDED ACTION(S):
Title
Consider receiving the Monthly Legislative Report and approving legislative positions, if necessary.
Staff Contact:
Beverly Greene, Executive Director of External Affairs, Marketing & Communications
Body
STRATEGIC IMPORTANCE:
Goal - Strong Public and Policymaker Support
Initiative - Financial Efficiency and Revenue Maximization
The Monthly Legislative Report helps the District track state, regional and federal legislation to ensure alignment with the District’s Strategic Plan and the specific goal of having strong public and policy maker support. Policy decisions at all levels of government can positively or negatively affect District operations and revenues and as such, are important to track and influence as needed.
BUDGETARY/FISCAL IMPACT:
There is no budgetary or fiscal impact associated with this report.
BACKGROUND/RATIONALE:
Federal Update
Congresswoman Barbara Lee’s office confirmed they will submit our $2 million request for community project (i.e., earmark) funding to the Transportation, Housing and Urban Development, and Related Agencies Committee. If approved, this funding will allow the District to upgrade its Central Maintenance Facility with the hydrogen sensing technology and equipment needed to safely perform maintenance on hydrogen fuel cell electric buses.
Staff is also working to secure letters from our federal delegation supporting the District’s application for $25.6 million from the Federal Transit Administration’s (FTA) Low or No Emission Grant Program as well as the Grants for Bus and Bus Facilities Program. If awarded, this funding will modernize AC Transit’s Training & Education Center and support the purchase of 25 new zero-emission buses. Related to this, staff joined The Bus Coalition in calling on federal legislators to increase by $400 million the FY24 Bus and Bus Facility competitive grant program. These funds are aimed at helping transit systems replace buses and repair aging facilities. Staff further urged legislators to provide FTA with the flexibility it needs to address cost escalations resulting from supply chain disruptions. Nationwide, cost escalations are reducing the impact of previous grant awards by forcing transit systems to cut bus purchase orders or require additional non-federal funds from the transit system to fill the gap.
State Update
At the time this report was written, Assembly Bill 364 (Hart), which would ensure transit agencies have uninterrupted access to electricity during power grid disruptions, was tentatively scheduled to be heard in the Assembly Appropriations Committee on April 19. District staff will once again testify in support of the bill and work with our transit partners to demonstrate broad support for it. AB 364 is co-sponsored by the District and the California Transit Association.
Assemblymember Wicks has elected not to advance her bill, AB 540, this year. AB 540 aimed to expand accessible transportation services by increasing the transportation improvement fee by $10 per vehicle. Pursuant to staff’s recommendation, the Board adopted a “watch” position on this bill at its March 22 meeting. The assemblywoman has signaled her interest in working with interested parties in the coming year to discuss issues related to paratransit service and funding. Staff will continue to engage on this issue and keep the Board updated.
Adoption of Legislative Positions
As detailed in Attachment 3, staff recommends the Board adopt the following legislative positions.
SUPPORT: AB 719 (Boerner Horvath) - Medi-Cal benefits. This bill would require Medi-Cal Managed Care Plans to reimburse public transit operators for nonmedical transportation and nonemergency medical transportation services. The reimbursement rate would be based on fee-for-service rates, helping to offset the costs of paratransit service. An estimated 40 percent of East Bay Paratransit applicants are Medi-cal/Medicaid eligible. The Board-adopted 2023 State Advocacy Program identifies the reimbursement of public transit agencies by managed health care plans for the cost of providing non-medical transportation as a District priority. AB 719 is cosponsored by the California Transit Association and San Diego Metropolitan Transit System. Staff recommends the Board SUPPORT AB 719.
SUPPORT: AB 817 (Pacheco) - Open meetings: teleconferencing. This bill would allow a subsidiary body, such as a committee or advisory body, to meet via teleconference indefinitely and without regard to a state of emergency. AB 817 addresses concerns expressed about participation on AC Transit’s advisory bodies, such as the Accessibility Advisory Committee. It does not change the meeting requirements for the Board of Directors. Staff recommends the Board SUPPORT AB 817.
SUPPORT: AB 819 (Bryan) - Fare evasion. This bill would amend the penal code so that a third or subsequent fare evasion violation would no longer be a misdemeanor with potential jail time. Instead, a third or subsequent violation would be only an infraction punishable by a $400 fine. This change is consistent with and furthers District policy as adopted in Ordinance 17. Staff recommends the Board SUPPORT AB 819.
SUPPORT: AB 1379 (Papan) - Open meetings: teleconferencing. AB 1379 would amend the Brown Act to allow a legislative body to hold meetings in any combination of in person or remote participation. It specifies that the “singular designated physical meeting location” must be open to the public and located within the legislative body’s jurisdiction. AB 1379 provides flexibility for the Board of Directors and the District’s advisory bodies to participate in meetings remotely. Staff recommends the Board SUPPORT AB 1379.
SUPPORT: SB 434 (Min) - Street Harassment Survey. Subject to an appropriation of funds by the legislature, SB 434 requires the state’s ten largest public transit operators, inclusive of AC Transit, to conduct outreach activities and collect survey data regarding rider experiences with harassment on their systems. Operators would be required to publish this data on their websites and promptly notify the Governor and the Legislature. SB 434 furthers the goals of SB 1161 (Min) from last session, which the Board supported. Staff recommends the Board SUPPORT SB 434.
SUPPORT: ACA 1 (Aguiar-Curry) - Local government financing: voter approval. Identical to last session’s proposal, ACA 1 would lower the voter threshold for property tax increases, parcel taxes and sales taxes to 55% if the funds are used for affordable housing and infrastructure projects, inclusive of capital improvements to transit, streets, and highways. Staff recommends the Board SUPPORT ACA 1 as it is consistent with prior Board positions and the District’s 2023 State Advocacy Program.
SUPPORT IN CONCEPT: AB 1525 - Transportation Agency: allocations for projects in priority populations. AB 1525 would require at least 60 percent of all moneys allocated for projects administered by the State Transportation Agency, the Department of Transportation, or the California Transportation Commission fund projects located in disadvantaged communities and benefit priority populations. It further requires audits to ensure the intended benefits accrue to disadvantaged communities. Staff is seeking clarity on several aspects of the bill related to funding, the definition of a “disadvantaged community”, the potential administrative burden to transit districts, and the auditing process. However, because AB 1525 aligns with the “core principles” included in the Board-adopted State Advocacy Program and could position the District to receive funding given the many disadvantaged communities we serve, staff recommends the Board support in concept AB 1525.
WATCH: AB 761 (Friedman) - Transit Transformation Task Force. AB 761 would require the California Transportation Agency (CalSTA) to create a statewide task force broadly charged with making recommendations to the Legislature on ways to improve public transit services, coordination, procurement, and funding. However, it is currently unclear how transit operators will be represented. The California Transit Association is working with the author on amendments; therefore, staff recommends the Board WATCH AB 761.
ADVANTAGES/DISADVANTAGES:
This report is provided to inform the Board of monthly legislative activities. Ensuring favorable legislation is adopted by policymakers helps further the District’s goal of having strong public and policymaker support.
ALTERNATIVES ANALYSIS:
There were no alternatives considered as this report provides an update of monthly legislative activities.
PRIOR RELEVANT BOARD ACTION/POLICIES:
Staff Report No. 22-466a: 2023 Federal and State Advocacy Programs
ATTACHMENTS:
1. Att. 1 - Federal Update
2. Att. 2 - State Update
3. Att. 3 - State Matrix
4. Att. 4 - 2023 Federal Advocacy Program
5. Att. 5 - 2023 State Advocacy Program
Prepared by:
Steven C. Jones, External Affairs Representative
Approved/Reviewed by:
Claudia Burgos, Director of Legislative Affairs & Community Relations
Beverly Greene, Executive Director of External Affairs, Marketing & Communications