Local Transportation Authority and Improvement Act: Sacramento Transportation Authority.

The bill text was reformatted from the official chaptered document layout (with page numbers like 'Ch. 724' and centered headers) to a web-based HTML display format that includes website navigation links, a quick search box, version history dropdown, and share/track options. No legal language was added, removed, or altered.

Section 180307 (allowable expenditures) was modified to add introductory language explicitly listing 'the construction, modernization, and improvement of infrastructure that supports infill or transit-oriented development and would reduce vehicle miles traveled' as an allowable expenditure category for STA tax revenues, in addition to the existing lettered categories.

Throughout Section 180308, terminology was shifted from 'portion of the county' to 'area' or 'portion... area to be taxed' when describing the geographic scope where the transactions and use tax may be imposed. This appears to align the language more closely with how the tax area is defined elsewhere in the Transactions and Use Tax Law.

Section 180308(g) was expanded to explicitly reference the term 'district' as defined and used in Sections 7252, 7261, and 7262 of the Revenue and Taxation Code, and to clarify that the authority may impose a tax 'in an area that comprises less than the total geographic jurisdiction of the authority.' This strengthens the anti-preemption provision by addressing a specific statutory term that could be used to argue against partial-area taxation.

The second section of the bill, which stated 'It is the intent of the Legislature to enact subsequent legislation related to public utilities,' was removed entirely. This was a forward-looking statement signaling that more public utilities bills were expected.

Multiple section numbering errors appear in the amended text: Section 180306 is followed by a duplicate '180303' heading, Section 180307 is followed by '180304', and Section 180308 is followed by '180305'. These appear to be drafting errors rather than intentional renumbering.

Minor wording changes include: 'city councilmember' changed to 'city council member,' 'all governing board decisions and actions after those approvals' changed to 'all subsequent governing board decisions and actions after those approvals,' and a finding in Section 180300 was removed or renumbered (subdivision (c) appears blank with the old (c) content relabeled as (b)).

Removed the requirement that funded infrastructure 'would reduce vehicle miles traveled.' Projects now only need to support infill or transit-oriented development, broadening the range of eligible projects.

Narrowed the definition of 'infrastructure' in Section 180304(c). Category (1) was changed from an explicit list (active transportation, streets or highways, public transit, passenger rail) to a reference to Section 180205. Category (2) was narrowed from 'utilities, including energy-related, communication-related, water-related, stormwater-related, and wastewater-related facilities' to just 'water, stormwater, wastewater, or other utility-related facilities,' removing energy and communications infrastructure.

Strengthened Section 180305(d) revenue spending rules. Changed the standard from revenues being 'spent within, or for the benefit of' the taxed area to being 'expended for the primary benefit of' that area. Added a presumption that expenditures made within the taxed area confer primary benefit. Required the authority to adopt objective eligibility guidelines defining primary benefit and make them readily accessible to voters as part of the expenditure plan.

The bill was assigned Chapter 724 and received the standard 'STATE OF CALIFORNIA AUTHENTICATED ELECTRONIC LEGAL MATERIAL' header replacing the legislative passage tracking information (Assembly and Senate passage dates, clerk signatures).

The approval date was filled in as October 13, 2025, with the Governor's initial recorded. Page numbering and internal formatting were adjusted to match the official chaptered law layout.

STA is now authorized to issue bonds to finance costs of high-occupancy toll lanes or other toll facilities approved by the California Transportation Commission. Bonds may be payable from toll revenue, sales tax revenue, development impact fees, or state and federal grant funds. Bond issuance requires a two-thirds vote of the governing board.

Governing board compensation provisions are removed. The old version allowed members to receive up to $150 per meeting and $600 per month, determined by board resolution.

Allowable expenditure categories for tax revenue are narrowed. The old version included environmental mitigation costs, passenger rail, active transportation/bikeways/shared mobility, infill/transit-oriented development infrastructure, and administrative costs. The new version only includes construction, modernization, and improvement of infrastructure supporting infill or transit-oriented development that would reduce vehicle miles traveled.

Before STA issues bonds payable from toll revenue for a facility operated by CARTA (Capital Area Regional Tolling Authority), STA must enter into an agreement with CARTA regarding application of toll revenue to bond payments, and CARTA's governing board must review and approve a toll facility expenditure plan.

Detailed contracting power provisions are removed, including authority to contract for planning services, raise additional revenues (grants, managed lane revenue, environmental mitigation funding), select special service providers without low bid, and select tow contractors without low bid for the Sacramento Freeway Service Patrol.

A new definition is added for 'CARTA' meaning the Capital Area Regional Tolling Authority, a joint powers authority formed by SACOG, Yolo Transportation District, and Caltrans to develop and operate toll facilities in the Sacramento region.

The bill no longer includes provisions authorizing STA to condemn or acquire property (eminent domain power), which was previously included with restrictions on condemning publicly owned water/flood district property and requiring local consent for out-of-jurisdiction acquisitions.

Provisions allowing governing board members to serve terms longer than four years if reelected to their underlying office and reappointed are removed.

The fiscal committee designation is changed from 'yes' to 'no,' indicating the bill no longer requires referral to the fiscal committee for review.

Legislative findings are restructured from four subsections to two, removing findings about implied powers and enhanced statutory flexibility, while retaining findings about local transportation needs and constitutional voting threshold challenges.

New requirement that infrastructure supporting infill or transit-oriented development must be in areas nominated by local governments and included in regionally adopted plans that advance state greenhouse gas emissions reduction objectives.

New requirement that the authority may only allocate revenues for utility facilities if that facility is combined with a project that includes a transportation facility.

New cap limiting expenditure plans to no more than 5 percent of total tax revenues for utility-related facilities (water, stormwater, wastewater, or other utilities).

Changed language from 'shall include' to 'shall also include' for infrastructure supporting infill development, clarifying it is an addition to existing allowable expenditure categories rather than a replacement.

New grandfather clause stating that the new infrastructure spending provisions do not apply to a retail transactions and use tax approved by electors before January 1, 2026.

Removed the provision designating the authority as a 'regional transportation agency' for purposes of Section 149.7(k) of the Streets and Highways Code, along with the requirement to include information from other regional transportation agencies in toll facility applications.

Added a legislative findings paragraph explaining that Sacramento County has a large developed unincorporated population and seven cities with older commercial corridors experiencing construction-related disruptions and pavement deterioration, justifying the need for coordinated infrastructure improvements.

The definition of 'active transportation' was expanded to include projects consistent with subdivision (f) of Section 2382 of the Streets and Highways Code.

Fiscal committee designation changed from 'yes' to 'no', indicating the bill no longer requires fiscal committee review.

Entire new Chapter 7 (Sections 180300-180308) added to Division 19 of the Public Utilities Code, replacing the original one-section intent statement with a full regulatory framework for the Sacramento Transportation Authority

STA is authorized to condemn property (eminent domain) with restrictions: cannot condemn publicly owned water or flood district property, and cannot condemn property outside its boundaries without consent from the local governing body where the property is located

STA is designated as a 'regional transportation agency' for purposes of developing and operating high-occupancy toll lanes or other toll facilities under Streets and Highways Code Section 149.7, with a requirement to include information from other regional transportation agencies in its application

STA is now authorized to impose a transactions and use tax in a geographic area comprising less than the total area of Sacramento County, subject to two-thirds governing board vote, voter approval by electors in the affected area, and requirements that city boundaries be wholly included or excluded

Minimum geographic requirements for partial-county taxation: must include at least the incorporated area of two cities, or one city plus the unincorporated area; revenues must be spent within or for the benefit of the taxed portion and must supplement rather than supplant other transportation revenues

Contracting powers expanded to allow STA to contract for planning services and revenue-raising arrangements (grants, managed lanes, environmental mitigation funding) without a low-bid process; tow contractor selection also exempted from low-bid requirements

Governing board members may now serve terms longer than four years if reelected to their local office and reappointed; compensation set at up to $150 per meeting with a monthly cap of $600, determined by board resolution

Allowable expenditure categories expanded to include environmental mitigation costs (including air quality), passenger rail, active transportation and bikeways, shared mobility, infrastructure supporting infill or transit-oriented development that reduces vehicle miles traveled, and administrative costs of the authority

New definitions added for 'active transportation,' 'authority,' 'expenditure plan,' 'governing board,' 'member,' 'ordinance,' and 'shared mobility'