California Legislature Passes SB 762 Authorizing County Transit Infrastructure Sales Tax Measures

SACRAMENTO, CA — The California State Assembly and Senate voted to approve Senate Bill 762, granting county transportation authorities the statutory power to place dedicated local transactions and use tax measures on county ballots for regional rail and zero-emission transit infrastructure.

Enabling Local Capital Financing for Transit Expansion

The legislation authorizes regional transit agencies across Contra Costa, Fresno, and Orange counties to propose fractional sales tax levies (up to 0.5%) strictly earmarked for grade-separated rail improvements, zero-emission bus fleet electrification, and highway interchange safety retrofits. SB 762 mandates independent citizen oversight committees and annual performance audits for all voter-approved capital expenditure programs.

Bill author Senator Dave Cortese stated that local control and dedicated regional financing empower communities to modernize transit connectivity without relying entirely on volatile federal grant allocations.

Regional Transit Coalition and Taxpayer Input

Regional transit associations and environmental advocates commended the bill for accelerating zero-emission bus fleet conversions.

Taxpayer advocacy federations highlighted that all measures still require statutory two-thirds voter approval thresholds to take effect.

Executive Signature Timeline

Senate Bill 762 has been transmitted to Governor Gavin Newsom for signature, taking effect on January 1, 2027.