SB 63: San Francisco Bay area: local revenue measure: public transit funding.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

(1)Existing law creates the Metropolitan Transportation Commission as a local area planning agency for the 9-county San Francisco Bay area with comprehensive regional transportation planning and other related responsibilities. Existing law creates various transit districts located in the San Francisco Bay area, with specified powers and duties relating to providing public transit services.

This bill would establish the Public Transit Revenue Measure District with jurisdiction extending throughout the boundaries of the Counties of Alameda, Contra Costa, San Mateo, and Santa Clara and the City and County of San Francisco and would require the district to be governed by the same board that governs the commission, thereby imposing a state-mandated local program. The bill would authorize a retail transactions and use tax applicable to the entire district to be imposed by the board of the district or by a qualified voter initiative for a duration of 14 years, and in an amount of 0.5% in each of the above-described counties located within the district and 1% in the City and County of San Francisco, subject to voter approval at the November 3, 2026, statewide general election. After payments are made for various administrative expenses, the bill would require the district to transfer specified portions of the proceeds of the tax to the commission for allocation to certain programs and other purposes and for allocation to the Alameda-Contra Costa Transit District, the Peninsula Corridor Joint Powers Board, commonly known as Caltrain, the San Francisco Bay Area Rapid Transit District, the San Francisco Municipal Transportation Agency, and other specified transit agencies, for transit operations expenses, and would require the district to transfer specified portions of the proceeds of the tax directly to other specified local transportation agencies, including the San Mateo County Transit District and the Santa Clara Valley Transportation Authority, for public transit expenses, as prescribed.

By adding to the duties of local officials with respect to elections procedures for this bill on behalf of the district, the bill would impose a state-mandated local program.

(2)Existing law requires the commission to develop regional transit service objectives, develop performance measures of efficiency and effectiveness, specify uniform data requirements to assess public transit service benefits and costs, and formulate procedures for establishing regional transportation priorities in the allocation of funds for transportation purposes.

This bill would require the commission to contract with, and manage, a third-party consultant to conduct a financial efficiency review of the Alameda-Contra Costa Transit District, Caltrain, the San Francisco Bay Area Rapid Transit District, and the San Francisco Municipal Transportation Agency, as specified. The bill would require the review to be completed in 2 phases, with the analysis for the 2nd phase only required if the tax measure is approved by the voters of the Public Transit Revenue Measure District. The bill would require the consultant to transmit the analysis for each phase to an oversight committee, which the bill would create with a prescribed membership, for review and adoption. The bill would require a transit operator subject to the financial efficiency review to take specified actions in response to the analysis for the first phase and, subject to review of the oversight committee, to adopt an implementation plan that describes the cost-saving measures identified in the analysis for the 2nd phase that the operator plans to implement, as specified. The bill would require a transit operator subject to the financial efficiency review to verify its compliance with the requirements of the review as a condition of receiving funds from the tax measure approved by the voters of the district.

The bill would require each transit operator to which the commission allocates funds to comply with a maintenance of effort requirement as a condition of receiving those funds, as provided.

Sponsors

Sponsors by party (alphabetical): Democratic 6

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. October 13, 2025Chaptered by Secretary of State. Chapter 740, Statutes of 2025.
2. October 13, 2025Approved by the Governor.
3. September 23, 2025Enrolled and presented to the Governor at 2 p.m.
4. September 13, 2025Assembly amendments concurred in. (Ayes 29. Noes 8. Page 3039.) Ordered to engrossing and enrolling.
5. September 13, 2025In Senate. Concurrence in Assembly amendments pending.
6. September 12, 2025Read third time. Passed. (Ayes 46. Noes 20. Page 3429.) Ordered to the Senate.
7. September 10, 2025Read second time. Ordered to third reading.
8. September 9, 2025Read second time and amended. Ordered to second reading.
9. September 8, 2025From committee: Do pass as amended. (Ayes 11. Noes 5.) (September 8).
10. September 4, 2025Re-referred to Com. on TRANS. pursuant to Assembly Rule 77.2.
11. September 4, 2025Ordered to third reading.
12. September 4, 2025Read third time and amended.