Report 2011-127 All Recommendation Responses

Report 2011-127: Metropolitan Transportation Commission: The Use of Toll Revenues to Purchase a New Headquarters Building Is Likely Legal, but the Transaction Exposes Toll Payers to Undisclosed Financial Risk (Release Date: August 2012)

Recommendation for Legislative Action

If the Legislature believes state law provides the toll authority with too much discretion over its use of toll revenues, it should consider amending state law to more narrowly define how toll revenues that are not immediately needed for bridge maintenance or debt service may be spent or invested. For example, the Legislature might consider imposing specific limitations or prohibitions on the use of toll revenues to acquire real estate for administrative or investment purposes.

Description of Legislative Action

Senate Bill 613 (Chapter 603, Statues of 2013) prohibits the Bay Area Toll Authority from purchasing or otherwise acquiring office space and office facilities in addition to the office space and office facilities located at 390 Main Street in San Francisco, and restricts the authority's contributions of toll revenues to the Metropolitan Transportation Commission.

California State Auditor's Assessment of Annual Follow-Up Status: Legislation Enacted


Description of Legislative Action

SB 613 (Chapter 603, Stats 2013), signed by the governor on October 5, 2013, prohibits the Bay Area Toll Authority from purchasing or otherwise acquiring office space and office facilities in addition to the office space and office facilities located at 390 Main Street in San Francisco, and restricts the authority's use of toll revenues.

California State Auditor's Assessment of 1-Year Status: Legislation Enacted


Recommendation for Legislative Action

If the Legislature desires greater separation between the transportation commission and the toll authority, it should consider amending state law to require that each entity have its own key executive management staff, such as its own chief executive officer, chief financial officer, and general counsel.

Description of Legislative Action

N/A

California State Auditor's Assessment of Annual Follow-Up Status: Unknown


All Recommendations in 2011-127

Agency responses received after June 2013 are posted verbatim.