Establishes the local transit act.

Authorizes, under certain circumstances, the governing body of any public transportation agency to impose a vehicle license fee, impose a vehicle excise tax based on fuel efficiency, and fix and impose a motor vehicle excise tax.

Authorizes, under certain circumstances, the legislative authority of any county to fix and impose a tax on the retail sale of motor vehicle fuel and special fuel.

Authorizes public transportation agencies to pledge revenues from the fees and taxes to the payment of general obligation and revenue bonds issued for public transportation purposes.