TO: AC Transit Board of Directors
FROM: Salvador Llamas, 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 approval of legislative positions.
Staff Contact:
Claudia Burgos, Executive Director of External Affairs & Customer Experience
Body
STRATEGIC IMPORTANCE:
Goal - Strong Public and Policymaker Support
Initiative - Financial Efficiency and Revenue Maximization
The Monthly Legislative Report tracks state, regional, and federal legislation to ensure alignment with the District’s Strategic Plan and its goal of maintaining strong public and policymaker support. Policy decisions at all levels can impact District operations and revenues, making ongoing monitoring and engagement essential.
BUDGETARY/FISCAL IMPACT:
There is no budgetary or fiscal impact associated with this report.
BACKGROUND/RATIONALE:
Federal Update
The legislative calendar in Washington remains severely constrained by the upcoming November 3rd mid-term elections and pressure on slim majorities to pass the administration's agenda. Only 16 legislative days remain in the House of Representatives before the elections, making passage of long-term transportation funding highly unlikely.
In June, the House Transportation and Infrastructure Committee overwhelmingly approved the BUILD America 250 Act, the $580 billion five-year surface transportation reauthorization bill, and the House Appropriations Committee approved the FY 2027 $92.2 billion Transportation, Housing and Urban Development (THUD) bill. However, neither has been considered by the full House, and the Senate has struggled to agree on the overall spending levels. With the looming September 30 deadline, the end of the fiscal year, Congress will almost certainly pass a short-term budget extension, known as a Continuing Resolution. That Continuing Resolution is likely to keep the federal government funded until Dec. 11th, after the 2026 mid-term elections. It will likely keep funding at the same levels as last year and means no immediate increases and delays for any new long-term federal funding increases. However, it will likely included no extension of the advanced appropriations present in the IIJA, which fund FTA programs including the Low- and No-Emission Bus programs. While that will have little immediate impact, it telegraphs the difficulty Congress will have next session in extending those IIJA discretionary funds.
State Update
Final FY 2026-27 State Budget Agreement: After meeting their June 15th deadline to pass an initial budget bill (AB 109), the Legislature and Governor Newsom finalized a $352 billion spending plan on June 26th. It utilizes revenue adjustments from new corporate and digital taxes to balance budgets through 2027-28. Importantly for local governments, the plan includes measures to soften the impacts of expected federal funding cuts on health and social service programs.
Regional Transit Revenue Measure:
On July 1, 2026, the District Elections Official certified that the Connect Bay Area Transit Initiative gathered enough valid signatures to qualify for the ballot. The Public Transit Revenue Measure District will meet on July 24 to consider additional actions necessary to finalize placement on the November 3, 2026 statewide general election.
Additionally, the Governor signed SB 830 (Arreguín) into law. This bill amends SB 63 (the Connect Bay Area Act) to:
• Mandate the uniform title “Regional Transit Measure” across all affected counties, so it can be understood as a single unified effort.
• Allow targeted support/oppose arguments tailored for each county’s ballot pamphlet.
• Place the measure on the ballot immediately after statewide measures.
Statutory Relief for Transit Operations (SB 169): Under normal Transportation Development Act (TDA) law, transit agencies face financial penalties if they fail to meet specific targets for farebox recovery ratios and operating efficiency. The state temporarily paused these penalties during the pandemic, but that relief was set to expire this year. As part of California’s state transportation budget trailer bill (SB 169) the state extends this relief for one additional year, exempting transit operators from farebox-to-operating cost ratios and efficiency standards through the 2026-27 fiscal year. This exemption provides transit agencies with more time to rebuild ridership without risking the loss of TDA funding.
Governor’s Executive Order on Transit Acceleration: On June 26th Governor Newsom issued a sweeping Executive Order designed to accelerate transit project delivery and enhance multimodal ridership. Key provisions include:
• Caltrans must establish a prioritized list of statewide transit projects within 120 days and create standardized plans allowing transit infrastructure on state highways. This could drastically reduce design timelines for capital projects on Caltrans rights-of-way.
• Caltrans is designated as a statewide "Mobility Manager" to integrate scheduling, trip planning, and payment systems. The California Integrated Travel Project (Cal-ITP) will enforce standardized data guidelines. The District will need to ensure its automated fare collection and Computer-Aided Dispatch and Automatic Vehicle Location (CAD/AVL) real-time data feeds remain aligned with these emerging state standards.
Pending Budget Actions on Cap-and-Invest: While the broader budget is signed, allocations for Cap-and-Invest auction revenues remain on hold until the Legislature returns from Summer Recess on August 3rd. These negotiations are of particular importance due to recent regulatory changes by the California Air Resources Board (CARB) that effectively defund key transit, affordable housing, and clean air programs like the Affordable Housing and Sustainable Communities (AHSC) program, Low Carbon Transit Operations Program (LCTOP), and Transit and Intercity Rail Capital Program (TIRCP). The District has engaged local lawmakers to highlight how vital these investments are to their communities and to urge the legislature to restore critical funding for affordable housing and climate mitigation programs. Additionally, the District has continued to amplify the California Transit Association’s (CTA) efforts to ensure the legislature understands the importance of these funding streams for the state’s transit systems. Staff recommend the Board adopt the following legislative positions.
WATCH AB 1833 (McKinnor): Consumer Driving Data Protection Act of 2026. This bill amends California’s Proposition 103 (1988) to allow drivers to voluntarily use smartphone apps or vehicle telematics to establish a personal driving safety record for auto insurance pricing. Drivers must explicitly opt in, and the telematics data can only be used for insurance rating. Additionally, the bill caps data retention at six months, strictly prohibits audio or video recording of passengers, and grants enforcement authority to the State Insurance Commissioner.
While this legislation may have some marginal impact on the driving behavior of the general public, there is no direct benefit to the District and it is unclear what kind of ancillary benefits this legislation may provide to the District.
This legislation was jointly referred to the Assembly Insurance and the Assembly Privacy and Consumer Protection Committees. The bill passed out of Assembly Insurance Committee and was set for hearing in Privacy and Consumer Protection but was cancelled at the request of the author. Since it has failed to pass out of committee before the hearing deadline, it is technically dead; however, there is a remote chance that it could be resurrected in August if it receives a rule waiver.
ADVANTAGES/DISADVANTAGES:
Providing monthly updates to the Board ensures the Board is aware of pending legislation and the potential impact it may have on the District. The adoption of favorable legislation by policymakers helps further the District’s goal of having strong public and policymaker support.
ALTERNATIVES ANALYSIS:
No alternatives were considered as this report provides an update of monthly legislative activities.
PRIOR RELEVANT BOARD ACTION/POLICIES:
Staff Report No. 25-411a: Adopted 2026 Federal and State Advocacy Programs
ATTACHMENTS:
1. Federal Update
2. State Update
3. Matrix of State Legislation
4. 2026 Federal Advocacy Program
5. 2026 State Advocacy Program
Prepared by:
Ryan Lau, External Affairs Representative
Approved/Reviewed by:
Steven Jones, Director of Legislative Affairs & Community Relations
Claudia Burgos, Executive Director of External Affairs & Customer Experience
Chris Andrichak, Chief Financial Officer
Paul Kincaid, Assistant General Manager/Chief Executive Officer
Aimee L. Steele, General Counsel/Chief Legal Officer
.