Local Transportation Authority and Improvement Act: Sacramento Transportation Authority.

Assembly Members Nguyen and Krell's transportation funding measure would authorize the Sacramento Transportation Authority (STA) to impose targeted sales taxes and develop toll facilities within specific areas of Sacramento County. The legislation allows STA to collect tax revenue from designated geographic zones rather than requiring countywide taxation, provided voters within the affected areas approve the measures.

The bill expands STA's allowable expenditure categories to include infrastructure supporting infill and transit-oriented development aimed at reducing vehicle miles traveled. These infrastructure investments can fund transportation facilities for public use, including active transportation networks, streets, public transit, and passenger rail, as well as related utility systems for energy, water, stormwater and wastewater. The authority can also establish and operate toll facilities, including high-occupancy toll lanes, after consulting with other regional transportation agencies about existing or planned toll projects.

For targeted tax measures, the bill requires that cities be either fully included or excluded from the taxed area, which must encompass at least two cities or one city plus unincorporated county territory. Tax revenues must benefit the geographic area where they are collected and supplement, not replace, existing transportation funding. Implementation requires approval from both the county board of supervisors and city councils representing a majority of included cities and their populations. The STA governing board, composed of county supervisors and city council members, must adopt expenditure plans and tax ordinances by a two-thirds vote.