Local Transportation Authority and Improvement Act: Sacramento Transportation Authority.

Assembly Members Nguyen and Krell's transportation funding measure expands the Sacramento Transportation Authority's ability to finance and implement infrastructure projects through targeted local tax measures and bond financing. The legislation permits STA to impose voter-approved transactions and use taxes in designated portions of Sacramento County, rather than requiring countywide measures, while authorizing bond issuance for high-occupancy toll lanes and related facilities.

The bill establishes parameters for implementing partial-county tax measures, requiring inclusion of at least two cities or one city plus unincorporated areas. Tax revenues must primarily benefit the areas where collected and can fund construction and modernization of infrastructure supporting infill and transit-oriented development in locally nominated areas that align with regional greenhouse gas reduction plans. The measure caps certain utility infrastructure spending at 5% of tax proceeds unless combined with transportation projects.

For toll facility financing, STA can issue bonds backed by toll revenues, sales taxes, development fees, or government grants, subject to California Transportation Commission approval. When using toll revenues from facilities operated by the Capital Area Regional Tolling Authority, STA must secure CARTA's agreement on revenue application and expenditure plans. The bonds require two-thirds governing board approval and must explicitly state they are not backed by state credit or taxing authority.