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CaliforniaSB 632025-2026 Regular SessionSenateWALLET

San Francisco Bay area: local revenue measure: transportation funding.

Sponsored By: Jesse Arreguín (Democratic), Scott Wiener (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 2 benefits, 2 costs, 3 mixed.

Money for lower fares and access

The law funds fare help, like free or reduced-cost transfers and an expanded Clipper START program. Shares are 2.78% in Alameda, Contra Costa, San Mateo, and Santa Clara, and 1.40% in San Francisco. It also funds accessibility projects: 1.11% of Alameda and Contra Costa revenues, and 0.56% of San Francisco revenues. These allocations lower rider costs and improve access.

Most tax revenue funds transit service

After admin costs, fixed shares of each county’s tax money go to transit service. Examples: BART gets 64.70% of Alameda’s revenue and 58.59% of Contra Costa’s; Muni gets 62.87% of San Francisco’s. Caltrain, AC Transit, small bus operators in Alameda and Contra Costa, the Bay Ferry, and Golden Gate Transit also receive set county percentages. This money supports day-to-day buses, trains, and ferries in the Bay Area.

Bay Area transit sales tax vote

The law lets a new regional district ask voters to add a retail sales tax for 14 years. The rate is 0.5% in Alameda, Contra Costa, San Mateo, and Santa Clara, and 1.0% in San Francisco. The tax can only be on the November 3, 2026 ballot, and the vote covers the whole district. If voters approve, the district may ask a court within 30 days to validate the ordinance. The tax may apply even if local rates exceed normal state caps.

Admin costs paid before services

Tax money first pays collection and administration costs. That includes state collection, election reimbursements, legal defense, and the financial efficiency review. The commission then keeps a small share for ongoing administration: 0.25% in four counties and 0.13% in San Francisco. Only the remaining funds go to transit programs.

Keep baseline transit operating funding

To get Chapter 3 funds, each operator must keep its own operating money at an expected level. That level equals the average of its discretionary operating spending over the past three fiscal years, two years in arrears, as reported to the Controller. Operators may reduce that contribution when outside factors lower costs or revenues, after written notice, or for allowed exceptions. Examples include shifting money to state-of-good-repair, paying to follow a law, or funding capital work that does not cut service hours.

Local oversight can withhold transit funds

If voters approve the tax, the district sets up an independent revenue oversight committee within six months of the tax’s start. Two years after approval, a county agency or its board can file one petition per year about service standards. An ad hoc committee with county commissioners can order fixes and withhold up to 3.5% of an operator’s funds, and later up to 7% total. Operators get at least 90 days to comply. Withheld money is held up to 180 days and then reallocated if compliance is not met before final allocations. In court, the only remedy is releasing or withholding the disputed funds, and no legal fees are awarded.

Two-phase transit efficiency review

The commission runs a two-phase efficiency review for AC Transit, BART, Caltrain, and Muni. Phase one lists cost savings since January 1, 2020, early actions to improve service, and a full property inventory and map. Phase two sets cost-saving options with metrics and a regional plan to better use transit land. A third-party consultant leads the work with an oversight group of agency leaders and independent experts. Key deadlines: phase one is due April 1, 2026, operator commitments by July 1, 2026; if the tax is approved, phase two is due within 480 days after results are certified, with draft plans due in 120 days and final plans in 60 days. Operators get at least 90 days to fix issues before the commission may withhold funds.

Sponsors & Cosponsors

Sponsors

  • Jesse Arreguín

    Democratic • Senate

  • Scott Wiener

    Democratic • Senate

Cosponsors

  • Mia Bonta

    Democratic • House

  • Matt Haney

    Democratic • House

  • Laura Richardson

    Democratic • Senate

  • Catherine Stefani

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 166 • No: 58

Senate vote • 9/13/2025

Item 154 — Senate SFLOOR

Yes: 29 • No: 8

House vote • 9/12/2025

Item 77 — Assembly AFLOOR

Yes: 46 • No: 20

legislature vote • 9/8/2025

Vote in CX22

Yes: 11 • No: 5

legislature vote • 8/29/2025

Vote in CX25

Yes: 11 • No: 4

legislature vote • 7/14/2025

Vote in CX19

Yes: 4 • No: 2

legislature vote • 7/7/2025

Vote in CX22

Yes: 11 • No: 4

Senate vote • 6/2/2025

Item 155 — Senate SFLOOR

Yes: 28 • No: 10

legislature vote • 5/23/2025

Vote in CS61

Yes: 4 • No: 1

legislature vote • 5/12/2025

Vote in CS61

Yes: 7 • No: 0

legislature vote • 4/23/2025

Vote in CS83

Yes: 4 • No: 1

legislature vote • 4/22/2025

Vote in CS59

Yes: 11 • No: 3

Actions Timeline

  1. Chaptered by Secretary of State. Chapter 740, Statutes of 2025.

    10/13/2025Senate

  2. Approved by the Governor.

    10/13/2025legislature

  3. Enrolled and presented to the Governor at 2 p.m.

    9/23/2025legislature

  4. Assembly amendments concurred in. (Ayes 29. Noes 8. Page 3039.) Ordered to engrossing and enrolling.

    9/13/2025Senate

  5. In Senate. Concurrence in Assembly amendments pending.

    9/13/2025Senate

  6. Read third time. Passed. (Ayes 46. Noes 20. Page 3429.) Ordered to the Senate.

    9/12/2025House

  7. Read second time. Ordered to third reading.

    9/10/2025House

  8. Read second time and amended. Ordered to second reading.

    9/9/2025House

  9. From committee: Do pass as amended. (Ayes 11. Noes 5.) (September 8).

    9/8/2025House

  10. Re-referred to Com. on TRANS. pursuant to Assembly Rule 77.2.

    9/4/2025House

  11. Ordered to third reading.

    9/4/2025House

  12. Read third time and amended.

    9/4/2025House

  13. Read second time. Ordered to third reading.

    9/4/2025House

  14. Read second time and amended. Ordered to second reading.

    9/3/2025House

  15. From committee: Do pass as amended. (Ayes 11. Noes 4.) (August 29).

    9/2/2025House

  16. August 20 set for first hearing. Placed on APPR. suspense file.

    8/20/2025House

  17. From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 2.) (July 14). Re-referred to Com. on APPR.

    7/15/2025House

  18. Read second time and amended. Re-referred to Com. on REV. & TAX.

    7/9/2025House

  19. From committee: Do pass as amended and re-refer to Com. on REV. & TAX. (Ayes 11. Noes 4.) (July 7).

    7/8/2025House

  20. Referred to Coms. on TRANS. and REV. & TAX.

    6/9/2025House

  21. In Assembly. Read first time. Held at Desk.

    6/3/2025House

  22. Read third time. Passed. (Ayes 28. Noes 10. Page 1398.) Ordered to the Assembly.

    6/2/2025Senate

  23. Read second time. Ordered to third reading.

    5/27/2025Senate

  24. Read second time and amended. Ordered to second reading.

    5/23/2025Senate

  25. From committee: Do pass as amended. (Ayes 4. Noes 1. Page 1190.) (May 23).

    5/23/2025Senate

Bill Text

  • Chaptered

    10/13/2025

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  • Enrolled

    9/17/2025

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  • Amended Assembly

    9/9/2025

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  • Amended Assembly

    9/4/2025

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  • Amended Assembly

    9/3/2025

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  • Amended Assembly

    7/9/2025

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  • Amended Senate

    5/23/2025

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  • Amended Senate

    4/29/2025

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  • Amended Senate

    3/25/2025

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  • Introduced

    1/9/2025

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