TO: AC Transit Board of Directors
FROM: Salvador Llamas, General Manager/Chief Executive Officer
SUBJECT: Monthly Legislative Report
BRIEFING ITEM
AGENDA PLANNING REQUEST: ☐
RECOMMENDED ACTION(S):
Title
Consider receiving the monthly legislative report.
Staff Contact:
Claudia Burgos, Executive Director of External Affairs and 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
At the time of this report, the federal government was in its 31st day of the shutdown, with little progress toward resolution. Impacts continue to grow as federal employees miss paychecks and the broader economy feels the strain. Unemployment filings among federal workers have surpassed levels from the last shutdown. While the shutdown’s duration is unclear, early November has been mentioned as a possible point for negotiations, coinciding with the release of 2026 healthcare premium notices.
Congressional staffers remain on the job, but without pay. Director Young and the District’s Executive Director of External Affairs & Customer Experience attended the American Public Transportation Association’s 2025 Legislative Advocacy Fly-In on October 22 in Washington, DC. There they met with the offices of Senators Padilla and Schiff, Representatives Garamendi, Simon, Swalwell, DeSaulnier, and Pelosi to discuss AC Transit’s policy priorities and the need for continued investment in transit.
State Update
The final status of bills AC Transit engaged on this year, and which the Governor acted upon, is as follows:
• Assembly Bill (AB) 339 was signed into law, requiring local government agencies give unions at least 45 days’ written notice before issuing, renewing, or extending contracts for work that can be done by represented employees.
• AB 394 is now law. It makes assaulting public transit workers, contractors, or passengers punishable by up to a $10,000 fine or jail time. Transit agencies can also seek restraining orders against violent offenders.
• AB 1250, which simplifies the process for renewing paratransit eligibility, is now law.
• Senate Bill (SB) 63, the “Connect Bay Area Act”, gives the green light for the Metropolitan Transportation Commission (MTC) to place a regional transportation measure on the November 2026 ballot. MTC is polling likely voters and will report their results in November.
With its enactment, efforts to fund transit operations now likely move to the local level, where signatures must be gathered to place the sales tax measure on the ballot. The Howard Jarvis Taxpayers Association’s “Save Prop 13 Initiative” would require any local taxes for a special purpose to win approval from two-thirds of voters, rather than a simple majority as courts have allowed for citizen initiatives. Passage of this measure could significantly threaten SB 63.
• SB 71 is now law and exempts, until 2040, certain transit and transportation projects from the California Environmental Quality Act (CEQA), making it easier and more affordable to deliver projects.
• The Governor also signed SB 79 into law, making it easier and faster to build transit-oriented housing development near transit stops.
• SB 419, which would have exempted the purchase or use of hydrogen fuel from state sales taxes, was vetoed.
• SB 707 is now law and adds new rules for how local agencies hold and promote public meetings. The District will face some implementation costs, though the amount is still unclear.
• SB 827, which ads any department head or similar administrative office to the list of local officials that must complete ethics training, is now law.
ADVANTAGES/DISADVANTAGES:
Monthly updates keep the Board informed of pending legislation and its potential impact 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. 24-534a: Adopted 2025 Federal and State Advocacy Programs.
ATTACHMENTS:
1. Federal Update
2. State Update
3. Matrix of State Legislation
4. 2025 Federal Advocacy Program
5. 2025 State Advocacy Program
Prepared by:
Steven C. Jones, External Affairs Representative
Approved/Reviewed by:
Claudia Burgos, Executive Director of External Affairs and Customer Experience