Small cities score big win with passage of SB 640

The new legislation evens the playing field for small cities seeking SB 1 transportation funding

Signed into law last Friday by Gov. Gavin Newsom, transportation funding legislation SB 640 (Becker) creates a more equitable, competitive SB 1 application process by allowing two or more eligible cities, or one or more cities and a county, to combine resources on projects that affect multiple jurisdictions. Until recently, smaller cities and counties were effectively shut out of the application process, as they were unable to provide the required matching funds. The bill also consolidates reporting requirements into a single report.

The League of California Cities vigorously advocated for both SB 640 (Becker) and SB 1 (Beall). Also known as the Road Repair and Accountability Act of 2017, SB 1 raises $5.2 billion annually for infrastructure projects throughout California.

Securing funding for critical infrastructure was one of Cal Cities’ top strategic priorities for 2021. These changes will allow cities to negotiate more competitive rates, thus maximizing SB 1 dollars on regional projects, and adds flexibility to the spending of that funding. The changes will also save cities time and money when contractors must treat multiple projects in the same region independently.

The bill goes into effect on January 1, 2022, and has no additional impacts on the current application process.