Bill Text: CA SB1408 | 2025-2026 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Contra Costa Transportation Authority: transactions and use tax.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Passed) 2026-09-20 - Chaptered by Secretary of State. Chapter 401, Statutes of 2026. [SB1408 Detail]

Download: California-2025-SB1408-Amended.html

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Amended  IN  Senate  March 23, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Senate Bill

No. 1408

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Introduced by Senator Arreguín

February 20, 2026

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An act to add Chapter 8 (commencing with Section 180350) to Division 19 of the Public Utilities Code, and to add and repeal Chapter 3.66 (commencing with Section 7290.7) of Part 1.7 of Division 2 of the Revenue and Taxation Code, relating to transportation.

LEGISLATIVE COUNSEL'S DIGEST

SB 1408, as amended, Arreguín. Local Transportation Authority and Improvement Act: Contra Costa Transportation Authority. Authority: transactions and use tax.

The Local Transportation Authority and Improvement Act authorizes a county board of supervisors to create or otherwise designate a local transportation authority in the county that may impose a transactions and use tax subject to voter approval and other specified requirements. The act authorizes revenues from the transactions and use tax to be allocated for, among other things, the construction, improvement, and operation of public transit systems.

This bill would expressly state that the Contra Costa Transportation Authority (CCTA) has all powers granted by the act to a local transportation authority, thereby authorizing the CCTA to impose a transactions and use tax pursuant to the act. The bill would authorize the CCTA to use revenues from a transactions and use tax imposed pursuant to the act to be allocated for the acquisition, construction, maintenance, and operation of vehicles and facilities related to public transportation systems and for the development, construction, and installation of components of public transportation systems, as specified. The bill would authorize the CCTA to acquire, develop, own, and operate facilities, systems, and devices, as specified. The bill would require the CCTA to be responsible for the coordination of public transit systems within the County of Contra Costa, and would require, upon request by the CCTA, transit operators within the County of Contra Costa to work with the CCTA to promote the purposes of this paragraph. The bill would require the CCTA to serve as a clearinghouse to facilitate the exchange of information related to signal coordination and signal prioritization within the County of Contra Costa, as specified. The bill would authorize the CCTA to acquire and dispose of real and personal property by certain means, including, but not limited to, acquisition by eminent domain, as specified. By creating new duties for the CCTA and other public transit operators within the County of Contra Costa, the bill would impose a state-mandated local program.

Existing law authorizes various local governmental entities, subject to certain limitations and approval requirements, to levy a transactions and use tax for general purposes, in accordance with the procedures and requirements set forth in the Transactions and Use Tax Law, including a requirement that the combined rate of all taxes that may be imposed in accordance with that law in the county not exceed 2%.

This bill would authorize, until January 1, 2045, the Contra Costa Transportation Authority to impose a transactions and use tax for the support of countywide transportation programs at a rate of no more than 1% that would, in combination with other transactions and use taxes, exceed the above-described combined rate limit of 2%, if the ordinance proposing the tax is approved by the voters, subject to applicable voter approval requirements, as specified. The bill would provide that a transactions and use tax rate imposed pursuant to the bill will not be considered for purposes of that combined rate limit described above.

This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Contra Costa.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YESNO   Local Program: YESNO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.Chapter 8 (commencing with Section 180350) is added to Division 19 of the Public Utilities Code, to read:

8.Contra Costa Transportation Authority

180350.

The Legislature finds and declares both of the following:

(a)The Contra Costa Transportation Authority has been designated as the agency responsible for developing, adopting, and updating the County of Contra Costa’s congestion management program pursuant to Section 65089 of the Government Code.

(b)The Contra Costa Transportation Authority has been designated as the agency responsible for developing and updating the County of Contra Costa’s transportation plan for the county and the cities within the County of Contra Costa, pursuant to Section 66531 of the Government Code.

180351.

For purposes of this division, the Contra Costa Transportation Authority is an “authority,” as that term is defined in Section 180002, with all powers granted to an authority by this division.

180352.

For purposes of Section 180205, as it applies to the Contra Costa Transportation Authority, “public transit systems” includes, but is not limited to, both of the following:

(a)The acquisition, construction, maintenance, and operation, of vehicles and facilities related to public transportation systems, as defined in Section 99211.

(b)The development, construction, and installation of components of public transit systems, including, but not limited to, facilities and devices related to bike share facilities, bus stops, innovative mobility systems, ferries, mobility hubs, and similar systems.

180353.

The Contra Costa Transportation Authority may acquire, develop, own, and operate facilities, systems, and devices on a standalone basis, or through a collaborative basis with one or more regional or local transit systems, as determined by the Contra Costa Transportation Authority in its discretion.

180354.

The Contra Costa Transportation Authority shall be considered a transit district for purposes of Chapter 3 (commencing with Section 99150) of Part 11 of Division 10, when exercising powers described in Sections 180352 or 180353.

180355.

(a)The Contra Costa Transportation Authority shall be responsible for the coordination of public transit systems within the County of Contra Costa.

(b)Upon request by the Contra Costa Transportation Authority, transit operators within the County of Contra Costa shall work with the Contra Costa Transportation Authority to promote the purposes of this chapter.

180356.

The Contra Costa Transportation Authority shall serve as a clearinghouse to facilitate the exchange of information related to signal coordination and signal prioritization for signals operated by the County of Contra Costa, a city in the County of Contra Costa, and the Department of Transportation, whenever the Contra Costa Transportation Authority, the County of Contra Costa, a city in the County of Contra Costa, or the Department of Transportation determines that an exchange of information on those topics is appropriate or necessary.

180357.

(a)The Contra Costa Transportation Authority may take by grant, purchase, gift, devise, or lease, or condemn in proceedings under eminent domain, or otherwise acquire, and hold and enjoy, real and personal property of every kind within or without the jurisdictional boundaries of the Contra Costa Transportation Authority necessary to the full or convenient exercise of its powers.

(b)The governing board of the Contra Costa Transportation Authority may lease, mortgage, sell, or otherwise dispose of any real or personal property within or without the jurisdictional boundaries of the Contra Costa Transportation Authority when, in its judgment, it is for the best interests of the Contra Costa Transportation Authority.

SEC. 2.SECTION 1.

 Chapter 3.66 (commencing with Section 7290.7) is added to Part 1.7 of Division 2 of the Revenue and Taxation Code, to read:

CHAPTER  3.66. Local Government Finance in the County of Contra Costa

7290.7.

 (a) Notwithstanding any other law, the Contra Costa Transportation Authority may impose or extend a transactions and use tax for the support of countywide transportation programs at a rate of no more than 1 percent that would, in combination with all taxes imposed pursuant to Part 1.6 (commencing with Section 7251), exceed the limit established in Section 7251.1, if all of the following requirements are met:

(1) The Contra Costa Transportation Authority adopts an ordinance proposing the transactions and use tax by any applicable voting approval requirement.

(2) The ordinance proposing the transactions and use tax is submitted to the electorate and is approved by the voters voting on the ordinance in accordance with the California Constitution.

(3) The transactions and use tax conforms to the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), other than Section 7251.1.

(b) Notwithstanding Section 7251.1, a transactions and use tax rate imposed pursuant to subdivision (a) shall not be considered for purposes of the combined rate limit established by Section 7251.1.

7290.8.

 If an ordinance proposing the transactions and use tax authorized by this chapter is not approved pursuant to Section 7290.7 on or before January 1, 2045, this chapter shall be repealed on January 1, 2045.

SEC. 3.SEC. 2.

 The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances in the County of Contra Costa.

SEC. 4.

If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.