Local Transportation Authority and Improvement Act: Sacramento Transportation Authority.

Assembly Members Nguyen and Krell's transportation funding measure expands the Sacramento Transportation Authority's (STA) ability to finance local infrastructure projects through new bonding and taxation powers. The legislation authorizes STA to issue bonds for high-occupancy toll lanes and other toll facilities, secured by toll revenues, sales tax proceeds, development fees, or government grants. Before issuing bonds for facilities operated by the Capital Area Regional Tolling Authority, STA must establish revenue agreements and obtain expenditure plan approval from CARTA's governing board.

The bill permits STA to impose transactions and use taxes in designated portions of Sacramento County, rather than requiring countywide measures. These targeted taxes require two-thirds approval from STA's governing board and majority support from affected city councils, along with voter consent within the taxed area. Tax revenues must supplement existing transportation funding and directly benefit the contributing jurisdictions. The measure also allows STA to fund infrastructure supporting infill and transit-oriented development in locally nominated areas that align with regional greenhouse gas reduction plans, while capping certain facility expenditures at 5% of total tax proceeds.

For bond issuance, the legislation mandates governing board authorization specifying maximum principal amounts, terms, and interest rates. The bonds do not constitute state obligations and must explicitly state that California's credit is not pledged for repayment. These provisions aim to provide STA with focused funding mechanisms while maintaining fiscal controls and local oversight of transportation investments.