THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY PALLONE, CREIGHTON, GODSHALL, HORNAMAN, JOSEPHS, METZGAR, SAINATO AND SEIP, OCTOBER 4, 2010

REFERRED TO COMMITTEE ON TRANSPORTATION, OCTOBER 4, 2010  

AN ACT

Amending Titles 74 (Transportation) and 75 (Vehicles) of the

Pennsylvania Consolidated Statutes, repealing provisions

relating to sustainable mobility options and the Pennsylvania

Turnpike in Title 74 and relating to the Pennsylvania

Turnpike and taxes for highway maintenance and construction

in Title 75.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Chapter 15 heading, sections 1501, 1502, 1503,

1504, 1505, 1506, 1507, 1508, 1509, 1510, 1511, 1512, 1513,

1514, 1515, 1516, 1517, 1518, 1519 and 1520, Chapter 81 heading

and sections 8101, 8102, 8103, 8104, 8105, 8106, 8107, 8108,

8109, 8110, 8111, 8112, 8113, 8114, 8115, 8116, 8117, 8118,

8119, 8120, 8121, 8122 and 8123 of Title 74 of the Pennsylvania

Consolidated Statutes are repealed:

[CHAPTER 15

SUSTAINABLE MOBILITY OPTIONS

§ 1501.  Scope of chapter.

This chapter relates to sustainable mobility options.

§ 1502.  (Reserved).

§ 1503.  Definitions.

The following words and phrases when used in this chapter

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Access to jobs project."  A project relating to the

development and maintenance of transportation services designed

to transport welfare recipients and eligible low-income

individuals to and from jobs and activities related to their

employment as defined under 49 U.S.C. § 5316 (relating to job

access and reverse commute formula grants).

"Americans with Disabilities Act."  The Americans with

Disabilities Act of 1990 (Public Law 101-336, 104 Stat. 327).

"Asset maintenance costs."  All vehicle maintenance expenses,

nonvehicle maintenance and materials expenses and the cost of

supplies used in the operation of local transportation

organizations and transportation companies.

"Award recipient."  A recipient of financial assistance under

this chapter.

"Base operating allocation."  The total amount of State

operating assistance, reimbursement in lieu of fares for senior

passengers and other assistance which was used for operating

assistance as determined by the department in fiscal year

2005-2006.

"Capital expenditures."  All costs of capital projects,

including, but not limited to, the costs of acquisition,

construction, installation, start-up of operations, improvements

and all work and materials incident thereto.

"Capital project."  A system or component of a system for the

provision of public passenger transportation. The term includes

vehicles; infrastructure power; passenger amenities; storage and

maintenance buildings; parking facilities; the land on which any

capital project is situated and the land needed to support it,

whether owned in whole or in part; overhaul of vehicles; debt

service; and the cost of issuance of bonds, notes and other

evidences of indebtedness which a local transportation

organization or transportation company is permitted to issue

under any law of this Commonwealth.

"Commonwealth capital bonds."  Evidence of debt incurred by

the Commonwealth under the act of February 9, 1999 (P.L.1,

No.1), known as the Capital Facilities Debt Enabling Act.

"Community transportation service" or "shared ride service."

Door-to-door demand transportation that is available to the

general public on a nonexclusive basis, operates on a nonfixed

route basis and charges a fare to all riders. The term does not

include exclusive ride taxi service, charter and sightseeing

service, nonpublic transportation, school bus and limousine

service.

"Community transportation system."  A person that provides

community transportation service and contracts with the

Department of Transportation to receive revenue replacement

funds.

"Department."  The Department of Transportation of the

Commonwealth.

"Financial assistance."  Grants or other types of financial

support provided by the Department of Transportation under this

chapter.

"Fixed guideway system."  A fixed-route public transportation

service that uses and occupies a separate right-of-way or rail

line for the exclusive use of public transportation and other

high-occupancy vehicles or uses a fixed catenary system and a

right-of-way usable by other forms of transportation. The term

includes light rail, commuter rail, automated guideway transit,

people movers, ferry boat service and fixed guideway facilities

for buses such as bus rapid transit and high-occupancy vehicles.

"Fixed-route public transportation service."  Regularly

scheduled general public transportation that is provided

according to published schedules along designated routes, with

specified stopping points for the taking on and discharging of

passengers, including public bus and commuter rail systems and

other department-approved service. The term does not include

exclusive ride taxi service, charter or sightseeing service,

nonpublic transportation, school bus and limousine service.

"Fund."  The Public Transportation Trust Fund established

under section 1506 (relating to fund).

"Intercity bus service."  Passenger bus service of 35 miles

or more in length that is provided with an over-the-road bus and

operated between two noncontiguous urbanized areas, between an

urbanized area located in one county and rural communities

located in another county, or between rural communities located

in different counties and contains all of the following

elements:

(1)  Service that is operated for a fare on a regularly

scheduled fixed-route basis.

(2)  Service that is offered to and utilized by the

general public without preconditions of advance reservation

or membership in a particular organization.

"Intercity passenger rail service."  Passenger railroad

service that connects two or more urbanized areas and is

determined by the Department of Transportation to qualify as

intercity service rather than commuter rail service.

"Job access and reverse commute project."  A project funded

by the Federal Transit Administration under Federal law.

"Local transportation organization."  Any of the following:

(1)  A political subdivision or a public transportation

authority, port authority or redevelopment authority,

organized under the laws of this Commonwealth or pursuant to

an interstate compact or otherwise empowered to render,

contract for the rendering or assist in the rendering of

transportation service in a limited area in this

Commonwealth, even though it may also render or assist in

rendering transportation service in adjacent states.

(2)  A nonprofit association that directly or indirectly

provides public transportation service.

(3)  A nonprofit association of public transportation

providers operating within this Commonwealth.

"Materials and supplies."  Those categories of expenses as

specified in Uniform System of Accounts expense object class

504, National Transit Database operating expenses form F 30,

National Transit Database, Final Rule, Federal Transit

Administration, dated January 15, 1993, or any successor.

"New fixed guideway system."  A newly constructed fixed

guideway system in a corridor or alignment where no such system

previously existed.

"New Freedom Program."  A public transportation program

designed to provide funds to recipients for new public

transportation services and public transportation alternatives

beyond those required by the Americans with Disabilities Act of

1990 (Public Law 101-336, 104 Stat. 327) that assist individuals

with disabilities with transportation, including transportation

to and from jobs and employment support services administered

under the provisions of 49 U.S.C. § 5317 (relating to New

Freedom Program).

"New start."  The term shall have the same meaning given it

in 49 CFR § 611.5 (relating to definitions).

"Nonurbanized area."  An area within this Commonwealth that

does not fall within an area classified as "urbanized" by the

United States Bureau of the Census of the United States

Department of Commerce in the most recent Census of Population.

"Nonvehicle maintenance expenses."  The categories of costs

associated with the inspection, maintenance and repair of

assets, other than vehicles, as specified in Uniform System of

Accounts, expense function 042, National Transit Database

operating expenses form F 30, National Transit Database, Final

Rule, Federal Transit Administration, dated January 15, 1993, or

any successor.

"Operating expenses."  Total expenses required to continue

service to the public and to permit needed improvements in

service which are not self-supporting and otherwise for any

purpose in furtherance of public passenger transportation,

including all State asset maintenance costs. The term does not

include expenditures for capital projects unless specific

approval is provided by the Department of Transportation.

"Operating revenue."  The total revenue earned by a local

transportation organization or a transportation company through

its transit operations. The term includes all of the following:

(1)  Passenger fares.

(2)  Reimbursements provided in lieu of fares for senior

passengers.

(3)  Charter, school bus and advertising revenue.

(4)  Other miscellaneous revenue such as public and

private route guarantee funds.

"Paratransit service."  Transit service operating on a

nonfixed-route basis in order to provide complementary

transportation service to persons who are functionally unable to

use fixed-route public transportation service as required by the

Americans with Disabilities Act of 1990 (Public Law 101-336, 104

Stat. 327).

"Passengers."  The total of all originating passengers plus

transfer passengers carried on fixed-route public transportation

service and paratransit service with respect to the most recent

fiscal year as reported in the most recent Public Passenger

Transportation Performance Report.

"Public passenger transportation."  Transportation within an

area that includes a municipality or other built-up place that

is appropriate in the judgment of the Department of

Transportation to serve commuters or others in the locality,

taking into consideration the local patterns and trends of

growth by bus or rail or other conveyance, either publicly or

privately owned, serving the general public. The term does not

include school buses or charter or sightseeing services.

"Public Passenger Transportation Performance Report."  An

annual report completed by the Department of Transportation

which shall include all of the following:

(1)  Each local transportation organization's passengers,

revenue vehicle miles, revenue vehicle hours and senior

passengers statistics for the most recently available fiscal

year.

(2)  Any other statistical information that the

Department of Transportation deems necessary.

"Revenue replacement funds."  Payments made to local

transportation organizations and transportation companies to

offset or partially offset fares.

"Revenue vehicle hours."  The total amount of time calculated

in hours during which vehicles are in service and available for

public use in fixed-route public transportation service or

paratransit service with respect to the most recent fiscal year

as reported in the most recent Public Passenger Transportation

Performance Report. The term does not include deadhead hours.

"Revenue vehicle miles."  The total amount of distance

calculated in miles during which vehicles are in service and

available for public use in fixed-route public transportation

service or paratransit service with respect to the most recent

fiscal year as reported in the most recent Public Passenger

Transportation Performance Report. The term does not include

deadhead miles.

"Reverse commute project."  A public transportation project

designed to transport residents of urbanized and nonurbanized

areas to suburban employment opportunities as defined under 49

U.S.C. § 5316 (relating to job access and reverse commute

formula grants).

"Secretary."  The Secretary of Transportation of the

Commonwealth.

"Senior citizen."  A person who is at least 65 years of age.

"Senior passenger."  A senior citizen who rides on fixed-

route service.

"Senior passengers."  The number of senior passengers

transported by a local transportation organization with respect

to the most recent fiscal year as reported in the most recent

Public Passenger Transportation Performance Report.

"Tax Reform Code."  The act of March 4, 1971 (P.L.6, No.2),

known as the Tax Reform Code of 1971.

"Transportation company."  A person that renders public

passenger transportation service.

"Urbanized area."  A portion of this Commonwealth classified

as urbanized by the United States Bureau of the Census of the

United States Department of Commerce in the most recent Census

of Population.

"Vehicle maintenance expenses."  The categories of costs

associated with the inspection, maintenance and repair of

vehicles as specified in Uniform System of Accounts, Expense

Function 041, National Transit Database operating expenses form

F 30, National Transit Database, Final Rule, Federal Transit

Administration, dated January 15, 1993, or any successor.

"Welfare-to-work."  Any Federal or State program designed to

move individuals from dependency on public welfare programs to

self-sufficiency through paid work.

§ 1504.  Department authorization.

(a)  General.--The department may, within the limitations

provided in this chapter, incur costs directly and provide

financial assistance for the purposes and activities enumerated

in this chapter.

(b)  Supplementation of Federal and local funds.--The

authority conferred on the department by this chapter includes

providing financial assistance for public passenger

transportation purposes and supplementing Federal funding or

local funding or both.

§ 1505.  Regulations.

(a)  General rule.--To effectuate and enforce the provisions

of this chapter, the department shall promulgate necessary rules

and regulations and prescribe conditions and procedures in order

to assure compliance in carrying out the purposes for which

financial assistance may be provided under this chapter.

(b)  Temporary regulations.--

(1)  Unless otherwise provided in this chapter, in order

to facilitate the prompt implementation of this chapter,

during the two-year period following the effective date of

this section, the department shall promulgate temporary

regulations which shall expire four years from the effective

date of this section. The temporary regulations shall be

exempt from the following:

(i)  Sections 201, 202, 203 and 204 of the act of

July 31, 1968 (P.L.769, No.240), referred to as the

Commonwealth Documents Law.

(ii)  The act of June 25, 1982 (P.L.633, No.181),

known as the Regulatory Review Act.

(2)  The authority of the department to promulgate

temporary regulations under this subsection shall expire two

years from the effective date of this section. Regulations

adopted after the two-year period shall be promulgated as

provided by statute.

§ 1506.  Fund.

(a)  Establishment.--A special fund is established within the

State Treasury to be known as the Public Transportation Trust

Fund. Money in the fund is hereby appropriated, upon approval of

the Governor, to the department for the purposes set forth under

this chapter.

(b)  Deposits to fund by department.--

(1)  The following apply:

(i)  Except as provided under subparagraph (ii), upon

receipt, the department shall deposit into the fund the

revenues received by the department under 75 Pa.C.S. Ch.

89 (relating to Pennsylvania Turnpike) and the lease

agreement executed between the department and the

Pennsylvania Turnpike Commission under 75 Pa.C.S. §

8915.3 (relating to lease of Interstate 80; related

agreements) as follows:

(A)  For fiscal year 2007-2008, $250,000,000.

(B)  For fiscal year 2008-2009, $250,000,000.

(C)  For fiscal year 2009-2010, $250,000,000.

(D)  For fiscal year 2010-2011 and each fiscal

year thereafter, the amount calculated for the

previous fiscal year, increased by 2.5%.

(ii)  The deposits made to the fund under this

subsection shall equal $250,000,000 annually for each

fiscal year commencing after the expiration of the

conversion period if the conversion notice is not

received by the secretary prior to expiration of the

conversion period as set forth under 75 Pa.C.S. §

8915.3(3).

(2)  Upon receipt, the department shall deposit the

amount made available to the department as an executive

authorization and any appropriation for the 2007-2008 fiscal

year and each fiscal year thereafter from the State Lottery

Fund for fixed route transit and for the Free Transit Program

for Senior Citizens established under the act of August 26,

1971 (P.L.351, No.91), known as the State Lottery Law. The

funds deposited under this paragraph shall only be used as

permitted by the State Lottery Law, except that:

(i)  funds may be used to pay estimated transit

losses resulting from providing free service for senior

passengers during the provider's regular hours of

service; and

(ii)  fares for senior citizens on commuter rail

service shall be limited to $1 per trip and shall be

extended to all hours of commuter rail service.

(c)  Other deposits.--The following shall be deposited into

the fund annually:

(1)  4.4% of the amount collected under Article II of the

Tax Reform Code. Revenues under this paragraph shall be

deposited into the fund by the 20th day of each month for the

preceding month. The amount deposited under this paragraph is

estimated to be equivalent to the money available to the

department from the following sources:

(i)  The Supplemental Public Transportation Account

established under former section 1310.1 (relating to

supplemental public transportation assistance funding).

(ii)  The amount appropriated annually by the

Commonwealth from the General Fund for mass transit

programs pursuant to a General Appropriations Act.

(2)  An amount of proceeds of Commonwealth capital bonds

as determined annually by the Secretary of the Budget.

(3)  Revenue in the Public Transportation Assistance Fund

established under Article XXIII of the Tax Reform Code not

otherwise dedicated pursuant to law.

(4)  Other appropriations, deposits or transfers to the

fund.

(d)  Use of revenues.--Money in the fund shall be used by the

department as follows:

(1)  to provide financial assistance through the programs

established under this chapter;

(2)  for costs incurred directly by the department in the

administration of public passenger transportation programs,

including under this chapter; and

(3)  for all other purposes enumerated under this

chapter.

(e)  Program funding amounts.--Subject to available funds,

the programs established under this chapter shall be funded

annually as follows:

(1)  For the program established under section 1513

(relating to operating program), the following amounts shall

be allocated from the fund:

(i)  All revenues deposited in the fund under

subsection (b)(1).

(ii)  All revenues deposited in the fund under

subsection (b)(2).

(iii)  69.99% of the revenues deposited in the fund

under subsection (c)(1).

(iv)  All revenues deposited into the fund under

subsection (c)(3).

(2)  (i)  Except as provided under subparagraph (ii), for

the program established under section 1514 (relating to

asset improvement program):

(A)  By the proceeds of Commonwealth capital

bonds deposited into the fund under subsection

(c)(2).

(A.1)  For fiscal year 2007-2008, $50,000,000

from the revenues received by the department under 75

Pa.C.S. Ch. 89 and the lease agreement executed

between the department and the Pennsylvania Turnpike

Commission under 75 Pa.C.S. § 8915.3. The amount

received by the department under this section shall

be deposited into the fund prior to distribution and

shall be in addition to the amounts received under

subsection (b)(1).

(B)  For fiscal year 2008-2009, $100,000,000 from

the revenues received by the department under 75

Pa.C.S. Ch. 89 and the lease agreement executed

between the department and the Pennsylvania Turnpike

Commission under 75 Pa.C.S. § 8915.3. The amount

received by the department under this section shall

be deposited into the fund prior to distribution and

shall be in addition to the amounts received under

subsection (b)(1).

(C)  For fiscal year 2009-2010, $150,000,000 from

the revenues received by the department under 75

Pa.C.S. Ch. 89 and the lease agreement executed

between the department and the Pennsylvania Turnpike

Commission under 75 Pa.C.S. § 8915.3. The amount

received by the department under this section shall

be deposited into the fund prior to distribution and

shall be in addition to the amounts received under

subsection (b)(1).

(D)  For fiscal year 2010-2011 and each fiscal

year thereafter, the amount calculated for the prior

fiscal year increased by 2.5% from the revenues

received by the department under 75 Pa.C.S. Ch. 89

and the lease agreement executed between the

department and the Pennsylvania Turnpike Commission

under 75 Pa.C.S. § 8915.3. The amount received by the

department under this section shall be deposited into

the fund prior to distribution and shall be in

addition to the amounts received under subsection

(b)(1).

(ii)  If the conversion notice is not received by the

secretary prior to the end of the conversion period as

set forth in 75 Pa.C.S. § 8915.3(3), no additional

allocation shall be made under subparagraph (i).

(3)  For the program established under section 1516

(relating to programs of Statewide significance), 13.24% of

the revenues deposited in the fund under subsection (c)(1)

shall be allocated from the fund.

(4)  For the program established under section 1517

(relating to capital improvements program), 16.77% of the

revenues deposited in the fund under subsection (c)(1).

Additional funds for this program may be provided from the

funds allocated but not distributed based on the limitation

set forth under section 1513(c)(3).

§ 1507.  Application and approval process.

(a)  Application.--An eligible applicant that wishes to

receive financial assistance under this chapter shall submit a

written application to the department on a form developed by the

department, which shall include the following:

(1)  The name and address of the applicant.

(2)  The name and telephone number of a contact person

for the applicant.

(3)  The amount and type of financial assistance

requested and the proposed use of the funds.

(4)  A statement as to the particular need for the

financial assistance.

(5)  A certified copy of a current resolution authorizing

submission of the application if the applicant is a governing

body.

(6)  Evidence satisfactory to the department of the

commitment for matching funds required under this chapter

sufficient to match the projected financial assistance

payments at the same times that the financial assistance

payments are to be provided.

(7)  Any other information the department deems necessary

or desirable.

(b)  Approval and award.--Upon determining that an applicant

has complied with this chapter, applicable rules and regulations

and any other requirement with respect to the financial

assistance requested, the department may award financial

assistance to the applicant. If the department awards financial

assistance to the applicant, the department and the applicant

shall enter into a financial assistance agreement setting forth

the terms and conditions governing the use of the financial

assistance and the timing of payment of the funds. The

department shall develop guidelines for the application for and

awarding of financial assistance under this chapter and shall

forward them to the Legislative Reference Bureau for publication

in the Pennsylvania Bulletin.

(c)  Restriction on use of funds.--Financial assistance under

this chapter shall be used only for activities set forth under

the financial assistance agreement unless the department grants

the award recipient a waiver allowing the funds to be used for a

different purpose. The department's regulations shall describe

circumstances under which it will consider waiver requests and

shall set forth all information to be included in a waiver

request. The maximum duration of a waiver shall be one year, and

a waiver request shall include a plan of corrective action to

demonstrate that the award recipient does not have an ongoing

need to use financial assistance funds for activities other than

those for which funds were originally awarded.

§ 1508.  Federal funding.

(a)  General rule.--The department shall administer the

programs established under this chapter in a manner that permits

full cooperation between Federal, State and local governments,

agencies and instrumentalities, local transportation

organizations and private interests, so as to result in as

effective and economical a program as possible.

(b)  Agreements.--The department may enter into agreements

for mutual cooperation between or among the department and a

Federal agency, local transportation organization or

transportation company concerning a project to be funded with

financial assistance under this chapter, including joint

applications for Federal grants.

(c)  General authority of department.--The department may do

anything necessary or desirable to secure financial aid or

cooperation of a Federal agency for a project funded with

financial assistance under this chapter and to comply with a

Federal statute or lawful requirement of a Federal agency

authorized to administer a program of Federal aid to

transportation. The department may enter into a protective

agreement with organized labor to the extent required under 49

U.S.C. § 5333 (relating to labor standards) in order to obtain

Federal grant money for transportation assistance. Protective

agreements shall be narrowly drawn and strictly construed to

provide no more than the minimum protections required by the

United States Department of Labor for the agreements.

(d)  Direct recipients.--Local transportation organizations

that are direct recipients of Federal funding shall be under no

obligation to enter into contracts with the department for

expenditure of those funds, except that the department may

require a contract for expenditure of the State portion of the

project assisted by those Federal funds.

§ 1509.  Limitation on decisions, findings and regulations of

department.

All decisions, findings and regulations made by the

department pursuant to this chapter shall be for the purposes of

this chapter only and shall not constitute evidence before a

regulatory body of this Commonwealth or any other jurisdiction.

§ 1510.  Program oversight and administration.

(a)  Review and oversight.--The department shall initiate and

maintain a program of financial and performance review and

oversight for all programs receiving financial assistance under

this chapter. The department may perform independent financial

audits of each award recipient to ensure compliance by award

recipients with this chapter, department regulations and

policies and financial assistance agreements. Audits shall be

conducted in accordance with generally accepted auditing

standards.

(b)  State Rail Transit Safety Inspection Program.--The

department may conduct a State Rail Transit Safety Inspection

Program, as may be defined from time to time by the Federal

Transit Administration, to meet oversight requirements of the

Federal Transit Administration. The public transportation modes

covered shall include heavy rail, light rail, trackless trolley

bus and inclined plane services and related facilities.

§ 1511.  Report to Governor and General Assembly.

The following shall apply:

(1)  Except as provided in paragraph (2), the department

shall submit a public passenger transportation performance

report to the Governor and the General Assembly by April 30

of each year, covering the prior fiscal year.

(2)  The report covering the 2005-2006 fiscal year shall

be submitted by July 31, 2007.

§ 1512.  Coordination.

Coordination is required in regions where two or more award

recipients have services or activities for which financial

assistance is being provided under this chapter to assure that

the services or activities are provided efficiently and

effectively.

§ 1513.  Operating program.

(a)  Eligible applicants.--The following may apply for

financial assistance for operating expenses under this section:

(1)  The governing body of a municipality or an

instrumentality of a municipality.

(2)  A Commonwealth agency or instrumentality.

(3)  A local transportation organization.

(b)  Applications.--In addition to information required under

section 1507 (relating to application and approval process), an

application for financial assistance under this section shall

include the applicant's reasonable estimates of operating

revenue and government subsidies sufficient to cover all

projected operating expenses.

(c)  Distribution formula.--

(1)  No later than 15 business days after the effective

date of this section, the department shall forward to the

Legislative Reference Bureau for publication in the

Pennsylvania Bulletin the base operating allocation for each

local transportation organization.

(1.1)  For purposes of determining the amount of

assistance available for distribution under this subsection,

in addition to the amounts allocated under section 1506(e)(1)

(relating to fund), an amount equal to the revenue in the

Public Transportation Assistance Fund dedicated pursuant to

law shall be included.

(2)  For fiscal year 2007-2008 and each fiscal year

thereafter, each qualifying local transportation organization

shall receive financial assistance which shall consist of the

following:

(i)  Its base operating allocation multiplied by

1.0506.

(ii)  An additional amount which shall be allocated

based on the following distribution formula:

(A)  Twenty-five percent of the award amount

shall be based on the number of passengers. The

actual amount received by each local transportation

organization under this clause shall be calculated as

follows:

(I)  Multiply the total amount of funding

available for distribution under this paragraph

by 0.25.

(II)  Multiply the product under subclause

(I) by the local transportation organization's

number of passengers.

(III)  Divide the product under subclause

(II) by the total number of passengers for all

local transportation organizations.

(B)  Ten percent of the award amount shall be

based on the number of senior passengers to offset

free fares for senior passengers. The actual amount

received by each local transportation organization

under this clause shall be calculated as follows:

(I)  Multiply the total amount of funding

available for distribution under this paragraph

by 0.10.

(II)  Multiply the product under subclause

(I) by the local transportation organization's

number of senior passengers.

(III)  Divide the product under subclause

(II) by the total number of senior passengers for

all local transportation organizations.

(C)  Thirty-five percent of the award amount

shall be based on the number of revenue vehicle

hours. The actual amount received by each local

transportation organization under this clause shall

be calculated as follows:

(I)  Multiply the total amount of funding

available for distribution under this paragraph

by 0.35.

(II)  Multiply the product under subclause

(I) by the local transportation organization's

number of revenue vehicle hours.

(III)  Divide the product under subclause

(II) by the total of the revenue vehicle hours

for all local transportation organizations.

(D)  Thirty percent of the award amount shall be

based on the number of revenue vehicle miles. The

actual amount received by each local transportation

organization under this clause shall be calculated as

follows:

(I)  Multiply the total amount of funding

available for distribution under this paragraph

by 0.30.

(II)  Multiply the product under subclause

(I) by the local transportation organization's

number of revenue vehicle miles.

(III)  Divide the product under subclause

(II) by the total number of revenue vehicle miles

for all local transportation organizations.

(3)  For the 2007-2008 fiscal year, no local

transportation organization shall receive total financial

assistance under this subsection that would be more than 50%

higher than the amount it receives under paragraph (2)(i).

For each subsequent fiscal year, the increase in the total

financial assistance provided to each local transportation

organization shall not exceed 20% of the prior year

allocation.

(c.1)  Minimum.--No local transportation organization shall

receive financial assistance under this section in an amount

less than the amount received in the previous fiscal year.

(d)  Local match requirements.--

(1)  For fiscal year 2007-2008 and each fiscal year

thereafter, except as provided under paragraph (2), financial

assistance provided under this section shall be matched by

local or private cash funding in an amount not less than the

greater of:

(i)  15% of the amount of the financial assistance

being provided; or

(ii)  the amount required under former section

1311(d) (relating to use of funds distributed) for fiscal

year 2006-2007.

(2)  Beginning in fiscal year 2007-2008 and each fiscal

year thereafter, if the local matching funds provided are

less than 15% of the amount of financial assistance received,

the local transportation organization's required local

matching funds shall increase annually in order to meet the

15% requirement set forth under paragraph (1)(i). The local

matching funds shall be increased annually by a minimum of 5%

above the amount of local matching funds provided in the

previous fiscal year unless a lesser amount is necessary to

meet the 15% requirement set forth under paragraph (1)(i).

(3)  Eligible local matching funds shall consist only of

cash contributions provided by one or more municipalities or

counties. The amount of the match and the time period during

which the match must continue to be available shall be

specified in the financial assistance agreement. Funding

provided by local and private entities, including advertising

or naming rights, may qualify as local matching funds to the

extent they provide for the cost of transit service that is

open to the public. The following shall not be considered

local matching funds:

(i)  Any form of transit operating revenue or other

forms of transit income provided by the local

transportation organization.

(ii)  Funds used to replace fares.

(4)  A municipality in a metropolitan area which is a

member of a local transportation organization is authorized

to provide annual financial assistance from current revenues

to the local transportation organization of which it is a

member or enter into a long-term agreement for payment of

money to assist in defraying the costs of operation,

maintenance and debt service of the local transportation

organization or of a particular public transportation project

of a local transportation organization. The obligation of a

municipality under an agreement pursuant to this paragraph

shall not be considered to be a part of the indebtedness of

the municipality, nor shall the obligation be deemed to

impair the status of any indebtedness of the municipality

which would otherwise be considered self-sustaining.

(e)  Performance reviews.--

(1)  The department may conduct performance reviews of an

award recipient under this section to determine the

effectiveness of the financial assistance. Reviews shall be

conducted at regular intervals as established by the

department in consultation with the management of the award

recipient. After completion of a review, the department shall

issue a report that:

(i)  highlights exceptional performance and

identifies any problems that need to be resolved;

(ii)  assesses performance, efficiency and

effectiveness of the use of the financial assistance;

(iii)  makes recommendations on follow-up actions

required to remedy any problem identified; and

(iv)  provides an action plan documenting who should

perform the recommended actions and a time frame within

which they should be performed.

(2)  The department shall deliver the report to the

Governor, to the chairman and minority chairman of the

Transportation Committee of the Senate and to the chairman

and minority chairman of the Transportation Committee of the

House of Representatives. The department's regulations shall

contain a description of the impact on both the amount of,

and future eligibility for, financial assistance under this

chapter based upon the degree to which the local

transportation organization complies with the recommendations

in the report. The department shall develop a list of best

practices revealed by the reports issued under this

subsection and shall post them on the department's Internet

website.

(f)  Performance criteria.--Criteria used for the reviews

conducted under subsection (e) shall consist of passengers per

revenue vehicle hour, operating costs per revenue vehicle hour,

operating revenue per revenue vehicle hour, operating costs per

passenger and other items as the department may establish. The

department's regulations shall set forth the minimum system

performance criteria based upon comparison of the award

recipient to its past performance and to its peers that an award

recipient must satisfy.

(g)  Failure to satisfy minimum performance criteria.--

(1)  If a performance review conducted under subsection

(e) reveals that the performance of an award recipient's

transportation system has decreased compared to performance

determined through a prior review, the department may, upon

the written request of an award recipient, waive any

requirement for a reduction in the amount of financial

assistance to be awarded under this section for a reasonable

time period to allow the award recipient to bring the system

back to the required performance level. The award recipient

shall provide written justification for providing a time

period longer than two years. In order to obtain the waiver

for the period requested, the award recipient must do all of

the following:

(i)  Develop an action plan to improve system

performance that contains key measurable milestones. The

action plan must be acceptable to the department and must

be approved by the department in writing.

(ii)  Submit quarterly progress reports on the action

plan to the department.

(2)  The department shall review and evaluate the award

recipient's progress to determine if the system has improved.

If the system has improved, the award recipient will remain

eligible for full formula funding as determined under

subsection (c). If the system has not improved by the end of

the waiver period, the waiver will be withdrawn. Expenses

incurred by the award recipient as a result of the failure of

the award recipient's system to meet the minimum performance

criteria shall be borne by the award recipient.

(h)  Adjustments to minimum performance criteria.--Upon

written request of an award recipient, the department may adjust

the minimum performance criteria described in subsection (g) in

a given year if the performance of the award recipient's system

is adversely affected by circumstances which are beyond the

award recipient's control. Examples are labor strikes,

infrastructure failures and natural disasters. The request must

include the award recipient's reasons for seeking the

adjustment.

§ 1514.  Asset improvement program.

(a)  Eligible applicants.--

(1)  The following may apply for financial assistance for

improvement, replacement or expansion of capital projects

under this section:

(i)  A local transportation organization.

(ii)  An agency or instrumentality of the

Commonwealth.

(iii)  A person responsible for coordinating

community transportation program services.

(iv)  Any other person the department deems to be

eligible.

(2)  The department shall develop and maintain four-year

and 12-year plans that summarize the capital projects and

financial assistance commitments for each applicant. The

department may enter into multiyear agreements to provide

financial assistance for capital projects based upon cash

flow and revenue projections for the fund. Each capital

project shall be based on the plan developed by the

department.

(b)  Applications.--In addition to information required under

section 1507 (relating to application and approval process), an

application for financial assistance under this section shall

include the following:

(1)  Evidence satisfactory to the department that the

proposed capital project is included in the first year of the

applicant's four-year capital plan and its federally approved

transportation improvement program.

(2)  If an applicant is requesting financial assistance

for replacement of a capital project, evidence satisfactory

to the department that the capital project to be replaced has

exceeded the useful life criteria as defined by the

department. At its discretion, the department may approve

funding to replace a capital project that does not exceed the

useful life criteria if the applicant provides documentation

acceptable to the department to justify the early replacement

of the capital project.

(3)  If the applicant is requesting financial assistance

for expansion of a capital project, evidence satisfactory to

the department that the applicant will have sufficient future

annual operating funds to support the proposed expansion.

(4)  Any other information required by the department,

including a return on investment analysis or a life cycle

cost analysis, or both.

(c)  Local match requirements.--Financial assistance under

this section shall be matched by local or private cash funding

in an amount not less than 3.33% of the amount of the financial

assistance being provided. The source of funds for the local

match shall be subject to the requirements of section 1513(d)(3)

(relating to operating program).

(d)  Conditions for receipt of bond funding.--Financial

assistance that is funded by proceeds of Commonwealth capital

bonds may be provided to an applicant if all of the following

conditions are met:

(1)  The applicant's capital project has been authorized

by a capital budget project itemization act.

(2)  The applicant's capital project was included in the

department's approved annual release request approving the

use of the funds for the proposed capital project in the

fiscal year in which the funds are expected to be expended.

(3)  The department has approved the underlying

application for the capital project.

(e)  Priorities.--The award of financial assistance under

this section shall be subject to the following set of priorities

in descending order of significance unless a compelling return

on investment analysis for a project in a lower category is

provided to and approved by the department:

(1)  Requests for funds required to support existing

local bond issues currently supported with State revenue

sources, such as debt service and asset leases. The

Commonwealth pledges to and agrees with any person, firm or

corporation holding any bonds previously issued by, or any

other debt incurred by, a local transportation organization

and secured in whole or part by a pledge of the funds

provided to the local transportation organization from the

fund that the Commonwealth will not limit or alter rights

vested in a local transportation organization in any manner

inconsistent with obligations of the local transportation

organization to the obligees of the local transportation

organization until all bonds previously issued or other debt

incurred, together with the interest thereon, is fully paid

or provided for.

(2)  Requests for funds required to match federally

approved capital projects funded under 49 U.S.C. §§ 5307

(relating to urbanized area formula grants) and 5309

(relating to capital investment grants and loans) and other

federally approved capital projects.

(3)  Other non-Federal capital projects as determined by

the department, which shall be further subject to the

following set of priorities in descending order of

significance:

(i)  Essential emergency asset improvement projects.

(ii)  Standard replacement of existing assets that

have exceeded their useful life.

(iii)  Asset improvement projects to extend the

useful life of the affected assets.

(iv)  Acquisition of new assets and other acceptable

purposes, other than projects to be funded under the new

initiatives program described in section 1515 (relating

to new initiatives program), as determined by the

department.

(f)  Bonding by award recipients.--With the approval of the

department, an award recipient that is permitted by law to issue

bonds may do so for the purpose of financing a multiyear capital

project. The department shall enter into an agreement with the

award recipient providing that payments of the awarded funds

sufficient to satisfy requirements of the bonds issued be made

directly to the trustee of the bondholders until such time as

the bonds are retired.

§ 1515.  New initiatives program.

(a)  Eligible applicants.--Persons eligible to apply for

financial assistance under section 1514 (relating to asset

improvement program) shall also be eligible to apply for

financial assistance for new or expansions of fixed guideway

systems under this section.

(b)  Applications.--In addition to the information required

under section 1507 (relating to application and approval

process), an application for financial assistance under this

section shall include all of the information required in an

application for financial assistance under section 1514. If the

application is for a proposed expansion of a capital project,

the application shall also include evidence satisfactory to the

department that the applicant will have sufficient future annual

operating funds to support the proposed expansion.

(c)  Source of funds and priorities.--

(1)  Sums allocated for the asset improvement program

under section 1506(e)(2) (relating to fund), up to a maximum

of $50,000,000 annually, may be used by the department to

provide financial assistance under this section.

(2)  In awarding financial assistance under this section,

the department shall give priority to applicants that intend

to use the funds to satisfy the local matching portion of

federally approved New Starts projects funded pursuant to 49

U.S.C. § 5309 (relating to capital investment grants and

loans). The department may fund projects that do not receive

funding from the Federal New Starts Program if the applicant

can provide sufficient evidence that the project can meet all

of the following requirements:

(i)  Investments in existing service areas have been

optimized.

(ii)  An analysis reveals a reasonable return on

investment.

(iii)  The public benefit of the project has been

identified.

(iv)  There exists a local dedicated funding commitment

to pay any required local match for the project and ongoing

operating costs.

(v)  There exists local technical ability and capacity to

manage, construct and operate the project.

(vi)  The project is supported by the adoption of an

integrated land use plan by local municipalities.

(d)  Local match requirement.--Financial assistance under

this section shall be matched by local or private cash funding

in an amount not less than 3.33% of the amount of the financial

assistance being provided. The source of funds for this local

match shall be subject to the requirements of section 1513(d)(3)

(relating to operating program).

§ 1516.  Programs of Statewide significance.

(a)  General rule.--Money in the fund allocated for programs

of Statewide significance shall be used by the department to

support public transportation programs, activities and services

not otherwise fully funded through the operating program,

capital program or asset improvement program. In addition to any

requirements contained in this section, applications must comply

with section 1507 (relating to application and approval

process). Programs of Statewide significance shall include:

(1)  The Persons with Disabilities Program.

(2)  Intercity passenger rail and bus services.

(3)  Community transportation capital and service

stabilization.

(4)  The Welfare-to-Work Program and matching funds for

Federal programs with similar intent.

(5)  Demonstration and research projects.

(6)  Technical assistance.

(7)  Other programs as determined by the department.

(8)  The department's costs under sections 1510(b)

(relating to program oversight and administration) and 1518

(relating to program oversight and administration).

(b)  Persons with disabilities.--The department shall

establish and administer a program providing reduced fares to

persons with disabilities on community transportation services

and to provide financial assistance for start-up, administrative

and capital expenses related to reduced fares for persons with

disabilities. All of the following shall apply:

(1)  A community transportation system operating in the

Commonwealth other than in counties of the first and second

class may apply for financial assistance under this

subsection.

(2)  The department may award financial assistance under

this subsection for program start-up and for continuing

capital expenses to offset administrative and capital

expenses. For community transportation trips made by eligible

persons with disabilities, financial assistance may be

awarded to an eligible community transportation system to

reimburse the system for up to 85% of the fare established

for the general public for each trip which is outside of

fixed-route and paratransit service areas and not eligible

for funding from any other program or funding source. The

person making the trip or an approved third-party sponsor

shall contribute the greater of 15% of the fare established

for the general public or the Americans with Disabilities Act

complementary paratransit fare.

(c)  Intercity transportation.--The department is authorized

to provide financial assistance for an efficient and coordinated

intercity common carrier surface transportation program,

consisting of both intercity passenger rail service and

intercity bus service transportation, with the intent of

sustaining strong intercity connections. All of the following

shall apply:

(1)  An intercity passenger rail service provider, a

local transportation organization, an agency or

instrumentality of the Commonwealth or a transportation

company that provides intercity public transportation service

may apply for financial assistance under this subsection. The

department is authorized to enter into joint service

agreements with a railroad company, any other agency or

instrumentality of the Commonwealth, a Federal agency or an

agency or instrumentality of any other jurisdiction relating

to property, buildings, structures, facilities, services,

rates, fares, classifications, dividends, allowances or

charges, including charges between intercity rail passenger

service facilities, or rules or regulations pertaining

thereto, for or in connection with or incidental to

transportation in whole or in part upon intercity rail

passenger service facilities.

(2)  Operating assistance and capital assistance may be

provided for intercity bus service and intercity passenger

rail service as determined by the department.

(3)  For financial assistance to a transportation

company, eligible matching funds shall consist only of cash

income generated by the transportation company from its

activities, other than the provision of subsidized public

passenger transportation service and contributed by the

transportation company in the amount and for the time period

specified in the financial assistance agreement.

(4)  Local match requirements are as follows:

(i)  For intercity bus service operating and capital

assistance, financial assistance shall require a local

match by local or private cash funding in an amount equal

to at least 100% of the amount of the financial

assistance being provided.

(ii)  For intercity passenger rail service operating

and capital assistance, financial assistance shall

require a local match on a case-by-case basis, taking

into account the best interests of the Commonwealth.

(5)  For purposes of this subsection, "local match" is

defined as local revenue obtained from other nonsubsidized

services such as charter, school bus or profits realized from

other intercity bus services. Local match shall not include

any funds received from Federal or State sources.

(d)  Community transportation.--

(1)  The department is authorized to provide financial

assistance under this section for all of the following:

(i)  Capital expenditures for the provision of

community transportation service; and

(ii)  service stabilization, including:

(A)  Stabilizing current service and fares.

(B)  Providing advice or technical assistance to

analyze and enhance community transportation system

resources and services.

(C)  Maximizing available funding including

Federal dollars.

(D)  Ensuring equitable cost sharing.

(2)  Subject to the limitations of this subsection, the

following may apply for financial assistance under this

subsection:

(i)  The governing body of a county, other than a

county of the first or second class.

(ii)  A transportation company designated by the

governing body of the county as the coordinator of

community transportation service.

(iii)  An agency or instrumentality of the

Commonwealth.

(2.1)  Each eligible applicant shall be subject to all of

the following requirements:

(i)  An applicant for financial assistance for

capital expenditures for the provision of public

community transportation service shall certify to the

department that it has taken all reasonable steps to

coordinate local service for the elderly and persons with

disabilities and that the services to be offered with the

capital assets do not duplicate existing fixed-route

services.

(ii)  The governing body of a county or the

coordinator described under this paragraph shall not be

eligible for financial assistance for service

stabilization if any of the following apply:

(A)  The coordinator receives financial

assistance under the operating program established

under this chapter.

(B)  The coordinator is a private for-profit

provider.

(3)  Financial assistance for service stabilization may

only be provided for the following purposes:

(i)  Short-term, long-term and strategic planning.

(ii)  Technology investment.

(iii)  Training programs designed to enhance

transportation management and staff expertise.

(iv)  Offsetting operating expenses that cannot be

covered by fare revenue due to emergencies.

(v)  Marketing activities.

(vi)  Other stabilization purposes approved by the

department.

(4)  The department shall give high priority to providing

financial assistance under this subsection as match for

Federal funding to support capital projects for community

transportation systems.

(5)  The department shall conduct a study to evaluate the

effectiveness and efficiency of community transportation

service delivery as it relates to human service programs. The

Department of Public Welfare, the Office of the Budget and

the Department of Aging and other appropriate Commonwealth

agencies identified by the department shall participate in

the study. Within two years following the effective date of

this section, these agencies shall make recommendations to

the Governor and the Majority and Minority chairpersons of

the Transportation Committee of the Senate and the Majority

and Minority chairpersons of the Transportation Committee of

the House of Representatives for improving coordination and

efficiency of human services and community transportation.

(d.1)  Welfare-to-work and Federal programs match.--The

department is authorized to provide financial assistance under

this section to design and implement projects and services and

to reimburse award recipients for the expenses associated with

the projects and services that identify and address public

passenger transportation and related barriers preventing

individuals eligible for participation in the Federal welfare-

to-work program from securing and maintaining employment and

from accessing community services and facilities. All of the

following shall apply:

(1)  A local transportation organization, a

transportation company designated by a county as the

coordinator of community transportation services or any other

person approved by the department may apply to the department

for financial assistance under this subsection.

(2)  Financial assistance awarded under this subsection

shall be used for any of the following purposes:

(i)  Fixed-route service subsidy.

(ii)  Contracted transportation services.

(iii)  Fixed-route fare discounts.

(iv)  Community transportation fare discounts.

(v)  Taxi fare discounts.

(vi)  Mileage reimbursement.

(vii)  Vehicle purchase, insurance, maintenance and

repair.

(viii)  Driver education classes.

(ix)  Administrative expenses.

(x)  Case management expenses.

(xi)  Any other activities consistent with the

transportation related elements of the welfare-to-work

program.

(3)  The department shall give high priority to providing

financial assistance under this subsection as match for

Federal funding to support projects with similar purposes and

eligible uses, including the Federal Job Access Reverse

Commute and New Freedoms programs.

(e)  Technical assistance and demonstration.--The department

is authorized to provide financial assistance under this section

for technical assistance, research and short-term demonstration

projects. All of the following shall apply:

(1)  A local transportation organization or an agency or

instrumentality of the Commonwealth may apply to the

department for financial assistance under this subsection.

(2)  Financial assistance provided under this subsection

may be used for reimbursement for any approved operating or

capital costs related to technical assistance and

demonstration program projects. Financial assistance for

short-term demonstration projects may be provided at the

department's discretion on an annual basis based on the level

of financial commitment provided by the award recipient to

provide ongoing future funding for the project as soon as the

project meets the criteria established by the department and

the award recipient. Financial assistance for this purpose

shall not be provided for more than three fiscal years.

Financial assistance may be provided to meet any short-term

emergency need that requires immediate attention and cannot

be funded through other sources.

(3)  Financial assistance under this subsection provided

to a local transportation organization shall be matched by

local or private cash funding in an amount not less than

3.33% of the amount of the financial assistance being

provided. The sources of funds for the local match shall be

subject to the requirements of section 1513(d)(3) (relating

to operating program).

§ 1517.  Capital improvements program.

(a)  Eligibility.--A local transportation organization may

apply for financial assistance under this section.

(b)  Applications.--The department shall establish the

contents of the application for the program established under

this section. The information shall be in addition to

information required under section 1507 (relating to application

and approval process).

(c)  Distribution formula.--The department shall award

financial assistance under this section based on the number of

passengers. The actual amount awarded to a local transportation

organization under this subsection shall be calculated as

follows:

(1)  Multiply the local transportation organization's

passengers by the total amount of funding available under

this section.

(2)  Divide the product under paragraph (1) by the sum of

the passengers for all qualifying local transportation

organizations.

(d)  Payments.--Financial assistance under this section shall