PRINTER'S NO. 1833
No. 1552 Session of 1987
INTRODUCED BY LINTON, PIEVSKY, NAHILL, HAYDEN, CARN, HAGARTY,
BATTISTO, GAMBLE, FATTAH AND HUGHES, JUNE 10, 1987
REFERRED TO COMMITTEE ON APPROPRIATIONS, JUNE 10, 1987
AN ACT
1 Amending the act of January 22, 1968 (P.L.42, No.8), entitled,
2 as amended, "An act empowering and authorizing the Department
3 of Transportation to establish and administer certain grant
4 programs for the betterment of mass transportation systems
5 and facilities throughout the Commonwealth; providing for
6 State grants to transportation companies, municipalities,
7 counties, or their instrumentalities and to agencies and
8 instrumentalities of the Commonwealth for studies, research,
9 demonstration programs, promotion programs, purchase of
10 service projects, and capital improvement projects under
11 certain conditions; authorizing grants by counties or
12 municipalities in metropolitan areas to local transportation
13 organizations, authorizing the creation of a transportation
14 authority to function in each metropolitan area consisting of
15 any county of the first class and all nearby counties within
16 a radius of twenty miles of any such first class county, as a
17 body corporate and politic for the purpose of establishing an
18 integrated mass transportation system with all pertinent
19 powers including, but not limited to, leasing, acquiring,
20 owning, operating and maintaining a system for, or otherwise
21 providing for, the transportation of persons, authorizing the
22 borrowing of money and issuance of bonds therefor, conferring
23 the right of eminent domain on the authority; altering the
24 jurisdiction of the Public Utility Commission, authorizing
25 the acceptance of grants from Federal, State and local
26 governments, limiting actions against the authority and
27 exempting it from taxation, authorizing counties and
28 municipalities to enter into compacts for the financing of
29 each authority and to make appropriations in accordance with
30 such compacts, creating a citizen advisory committee,
31 conferring exclusive jurisdiction upon certain courts with
32 respect to matters relating to such authority, empowering
33 each authority to function outside of the metropolitan area
1 under certain terms and conditions," further defining certain
2 transit entities; requiring one-third local or private
3 funding matches for State grants, with certain exceptions;
4 removing certain limitations in State grants; further
5 providing for annual appropriations and new formulas for
6 distribution of the appropriations to transportation
7 organizations and companies; and requiring certain transit
8 entities to appoint controllers.
9 The General Assembly of the Commonwealth of Pennsylvania
10 hereby enacts as follows:
11 Section 1. Section 202 of the act of January 22, 1968
12 (P.L.42, No.8), known as the Pennsylvania Urban Mass
13 Transportation Law, is amended by adding definitions to read:
14 Section 202. Definitions.--The following terms, whenever
15 used or referred to in this article, shall have the following
16 meanings, except in those instances where the context clearly
17 indicates a different meaning:
18 * * *
19 "Class 1 transit entity" shall mean and include a local
20 transportation organization or transportation company operating
21 one thousand or more transit vehicles in the peak period.
22 "Class 2 transit entity" shall mean and include a local
23 transportation organization or transportation company operating
24 more than three hundred but less than one thousand transit
25 vehicles in the peak period.
26 "Class 3 transit entity" shall mean and include a local
27 transportation organization or transportation company operating
28 three hundred or less fixed route transit vehicles in the peak
29 period.
30 "Class 3A transit entity" shall mean and include a local
31 transportation organization or transportation company operating
32 more than twenty but not more than three hundred fixed route
33 transit vehicles in the peak period.
19870H1552B1833 - 2 -
1 "Class 3B transit entity" shall mean and include a local
2 transportation organization or transportation company operating
3 twenty or less fixed route transit vehicles in the peak period.
4 * * *
5 Section 2. The introductory paragraph and subparagraph (iii)
6 of paragraph (2) and paragraph (3) of section 203 of the act,
7 added July 10, 1980 (P.L.427, No.101), are amended to read:
8 Section 203. Program Authorizations.--The department is
9 hereby authorized, within the limitations hereinafter provided
10 and is required where the provisions of section 204 apply:
11 * * *
12 (2) To make [project] grants to municipalities, counties, or
13 their instrumentalities, and to agencies and instrumentalities
14 of the Commonwealth to supplement Federal or local or Federal
15 and local funds for use:
16 * * *
17 [(iii) To assist in financing purchase of service projects
18 designed to continue necessary service to the public, to permit
19 needed improvements in service which are not self-supporting,
20 and to permit service which may be socially desirable but
21 economically unjustified. Each project and project grant shall
22 be subject to an annual review and renewal. State funding under
23 this subparagraph shall not exceed three-fourths of the non-
24 Federal share of project costs as defined by the department
25 which cannot, as determined by the department, reasonably be
26 financed from revenues. Local or private funding shall equal at
27 least one-fourth of the non-Federal share of the project
28 deficit, as defined by the department. The methodology for
29 calculating the eligible deficit of applicants under this
30 subparagraph shall be determined in accordance with section 204.
19870H1552B1833 - 3 -
1 Each purchase of service project grant shall be based on a
2 program or plan approved by the department and determined by the
3 department to be in the public interest and to be in furtherance
4 of a coordinated mass transportation plan for the area. No State
5 grant shall be made for a particular purchase of service project
6 that the department determines will involve unnecessary and
7 unfair competition and no State grant shall be made for a
8 particular purchase of service project unless the department
9 determines and finds for said project that:
10 (A) the purchase of the service project is necessary;
11 (B) the mass transportation carrier is taking or will take
12 continuing action to improve the service and hold losses to a
13 minimum.]
14 (iii) To assist in providing grants to continue necessary
15 service to the public, to permit needed improvements in service
16 which are not self-supporting, to permit service which may be
17 socially desirable but economically unjustified, and otherwise
18 for any purpose in furtherance of urban common carrier mass
19 transportation. The methodology for calculating the amount of
20 the grant under this subparagraph shall be determined in
21 accordance with section 204. Each grant to a class 1 transit
22 entity, to a class 2 transit entity or to a class 3 transit
23 entity made pursuant to this paragraph shall be matched by local
24 or private funding in an amount not less than one-third of the
25 total State grant made pursuant to section 204(b): Provided,
26 however, That any grants to class 3 transit entities may be
27 matched by an amount not less than the amount of local or
28 private funding furnished in the 1985-1986 fiscal year if the
29 department shall have received a certification from such class 3
30 transit entity that such lower level of local or private funding
19870H1552B1833 - 4 -
1 is adequate to prevent significant service reductions or
2 passenger fare increases.
3 (3) [To make project grants to any transportation company or
4 companies to supplement Federal, private or local or Federal and
5 private or local funds for use in financing purchase of service
6 projects designed to continue necessary service to the public,
7 to permit needed improvements in services which are not self-
8 supporting, and to permit services which may be socially
9 desirable but economically unjustified.] To make grants to any
10 transportation company or companies for use in providing
11 necessary service to the public, to permit needed improvements
12 in services which are not self-supporting, to permit services
13 which may be socially desirable but economically unjustified,
14 and otherwise for any purpose in furtherance of urban common
15 carrier mass transportation. In view of the particular
16 sensitivity of special instrumentalities and agencies of the
17 Commonwealth created to serve or coordinate the local
18 transportation needs of substantial metropolitan areas, no
19 [project for use] grant moneys may be used exclusively or
20 principally in the local service area of any such agency or
21 instrumentality in which a city or county of the first or second
22 class has membership, [shall receive a project grant] except in
23 accordance with a system of priorities agreed upon by the
24 department and such agency or instrumentality. In the case of [a
25 project grant for a project to be operated] a grant where the
26 moneys granted will be used for an activity to be conducted
27 exclusively or principally within the local service areas of
28 such agency or instrumentality no [project grant shall be made]
29 grant moneys may be used except in accordance with agreements by
30 the department and such agency or instrumentality with respect
19870H1552B1833 - 5 -
1 to such use. In the case of a [project] grant not falling within
2 the scope of the preceding sentence but [covering use] where
3 moneys granted will be used both within and without the local
4 service area of such agency or instrumentality, the [project]
5 grant shall require that the routes, schedules, and fares
6 applicable only within such service areas shall be those
7 mutually agreed upon by the department and such agency or
8 instrumentality. No agreement referred to in this paragraph
9 shall impair, suspend, reduce, enlarge or extend or affect in
10 any manner the powers of the Pennsylvania Public Utility
11 Commission or the Interstate Commerce Commission otherwise
12 applicable by law. [State funding under this paragraph shall not
13 exceed three-fourths of the non-Federal share of project costs
14 as defined by the department which cannot, as determined by the
15 department, reasonably be financed from revenues. Local or
16 private funding shall equal at least one-fourth of the non-
17 Federal share of the project deficit, as defined by the
18 department. The methodology for calculating the eligible deficit
19 of applicants under this paragraph shall be determined in
20 accordance with section 204. Each purchase of service project
21 grant shall be based upon a program or plan approved by the
22 department and determined by the department to be in the public
23 interest, to be in furtherance of a coordinated mass
24 transportation plan for the area, and not to involve unnecessary
25 and unfair competition. No State grant shall be made for a
26 particular purchase of service project unless the department
27 determines and finds for said project that:
28 (i) the purchase of service project is necessary in the
29 public interest; and
30 (ii) the mass transportation carrier is taking or will take
19870H1552B1833 - 6 -
1 continuing action to improve the service and hold losses to a
2 minimum.] Each grant to a class 1 transit entity, to a class 2
3 transit entity or to a class 3 transit entity made pursuant to
4 this paragraph shall be matched by local or private funding in
5 an amount not less than one-third of the total State grant made
6 pursuant to section 204(b): Provided, however, That any grants
7 to class 3 transit entities may be matched by an amount not less
8 than the amount of local or private funding furnished in the
9 1985-1986 fiscal year if the department shall have received a
10 certification from such class 3 transit entity that such lower
11 level of local or private funding is adequate to prevent
12 significant service reductions and/or passenger fare increases.
13 * * *
14 Section 3. Section 204 of the act, amended May 1, 1984
15 (P.L.226, No.49), is amended to read:
16 Section 204. Annual Appropriation, Computation of Subsidy.--
17 (a) The Commonwealth shall annually determine the level of
18 appropriation for urban common carrier mass transportation
19 assistance, using the standards contained in this section, to
20 sufficiently fund and to make fully operative section
21 203(2)(iii) and (3).
22 [(b) The General Assembly shall annually appropriate to the
23 department for distribution an amount based upon the individual
24 projected subsidies of the local transportation organizations or
25 transportation companies participating in the program. Each
26 local transportation organization and transportation company
27 shall be entitled to receive a State subsidy of at least two-
28 thirds but not more than three-quarters of its constrained
29 deficit: Provided, however, That if amount of moneys actually
30 appropriated by the General Assembly is greater or lesser than
19870H1552B1833 - 7 -
1 the lump sum appropriation request, the individual calculated
2 grants shall be prorated among all recipients in accordance with
3 the provisions of this article using a ratio determined by
4 applying the actual lump sum appropriation to the lump sum
5 appropriation request.
6 (c) The constrained deficit shall be an amount equal to
7 eligible operating costs reduced by assumed revenues and Federal
8 operating subsidies. For purposes of this subsection:
9 (1) Eligible operating costs for the budget year shall not
10 exceed the prior year's operating costs for the same level of
11 service increased by a percentage equal to the percentage
12 increase in operating costs for all local transportation
13 organizations and transportation companies for the most recently
14 completed State fiscal year as compared to the fiscal year
15 immediately preceding such year plus fifteen percent of such
16 increase.
17 (2) (i) Assumed revenues shall be a percentage of eligible
18 operating costs as determined by reference to the following
19 table:
20 FISCAL YEAR (A) (B) (C)
21 1980-81 48% 38%
22 1981-82 48% 38%
23 1983-84
24 and thereafter 48% 46% 34%
25 (ii) Column (A) is to be used for local transportation
26 organizations or transportation companies operating more than
27 one thousand transit vehicles in the peak period, column (B) is
28 to be used for transportation organizations and companies
29 operating between twenty-one and nine hundred and ninety-nine
30 vehicles in the peak period and column (C) is to be used for
19870H1552B1833 - 8 -
1 local transportation organizations or transportation companies
2 operating twenty or fewer transit vehicles in the peak period.
3 (iii) In any case where a local transportation organization
4 or transportation company increases or decreases the number of
5 transit vehicles operating during the peak period so as to move
6 to or from column (A), (B) or (C), the department may make
7 appropriate adjustments regarding assumed revenues during a
8 reasonable period following such increase or decrease.
9 (3) Federal operating subsidies shall mean the total
10 operating assistance funds in the budget year which the eligible
11 grantee actually receives under the Federal Urban Mass
12 Transportation Act of 1964, Public Law 88-365 (49 U.S.C. § 1601,
13 et seq.) or any other Federal law.
14 (d) The basic subsidy for which each local transportation
15 organization or transportation company shall be entitled shall
16 be equal to sixty-six and two-thirds percent of its constrained
17 deficit.
18 (e) Each local transportation organization or transportation
19 company shall receive, in addition to the basic subsidy, an
20 incentive grant subsidy of up to eight and one-third percent of
21 its constrained deficit based upon a finding that the local
22 transportation organization or transportation company for the
23 most recently completed State fiscal year as compared to the
24 fiscal year immediately preceding such year has met or exceeded
25 the following performance factors. Each factor which a local
26 transportation organization or transportation company meets
27 shall result in an additional increase in State funding of its
28 constrained deficit. The factors to be considered by the
29 department in awarding incentive grant subsidies are as follows:
30 (1) No decrease in the system's revenue/cost ratio from the
19870H1552B1833 - 9 -
1 previous fiscal year.
2 (2) Higher ridership per vehicle hour in the system than in
3 the previous fiscal year.
4 (3) Higher operating revenue per vehicle hour in the system
5 than in previous fiscal year.
6 (4) Lower operating costs per vehicle hour in the system
7 (adjusted for inflation) than in the previous fiscal year.
8 (f) Notwithstanding any other provision of this section, no
9 local transportation organization or transportation company
10 shall be entitled to receive an amount with respect to any
11 fiscal year greater than seventy-five percent of its actual
12 operating costs less actual revenues, excluding excess revenues
13 determined in accordance with subsection (g), and Federal
14 subsidies for that fiscal year.
15 (g) A local transportation organization or transportation
16 company may utilize revenues which the department determines to
17 be in excess of assumed revenues for any purpose in furtherance
18 of urban common carrier mass transportation in its service areas
19 except that such excess revenues may not be used to reduce local
20 matching funds for any State operating grant. All excess
21 revenues exceeding twelve percent of actual revenues shall be
22 used to reduce operating deficits for grant determinations by
23 the department. Expenses which are ineligible for reimbursement
24 by the department under sections 203(2)(iii) and 204, including
25 debt service, renewal and replacement and vehicle overhaul, may
26 be funded by transportation companies or local transportation
27 organizations through excess revenues.
28 (h) A local transportation organization or transportation
29 company may at its option submit an application for project
30 grants covering modes or operating subsidiaries on an individual
19870H1552B1833 - 10 -
1 basis or on a collective basis.
2 (i) Each recipient of funds under this section shall submit
3 to the department between August 15 and September 15 of each
4 calendar year a proposed budget for the budget year beginning
5 July 1 together with budget projections for four succeeding
6 budget years. Budget proposals, based upon information submitted
7 by individual recipients, shall appear as line items in the
8 department's budget request, subject to the provisions of
9 subsection (b): Provided, however, That the department budget
10 request for funds under this section shall be made as a lump sum
11 appropriation request which shall be the total of such line
12 items.
13 (j) Local transportation organizations and transportation
14 companies shall be prepared to appear individually before the
15 appropriation committees of the Senate and the House of
16 Representatives to justify budget requests.]
17 (b) The General Assembly shall annually make an
18 appropriation to the department for distribution as grants to
19 local transportation organizations and transportation companies.
20 The total amount of moneys appropriated shall be distributed by
21 the department as grants to local transportation organizations
22 and transportation companies in accordance with the provisions
23 of this section.
24 (c) The department shall distribute the total amount
25 appropriated under subsection (b) in the following manner:
26 (1) The department shall calculate the class 1 transit
27 entity share, the class 2 transit entity share and the class 3
28 transit entity share for the fiscal year. From the class 3
29 transit entity share, the department shall calculate the class
30 3A transit entity share and the class 3B transit entity share.
19870H1552B1833 - 11 -
1 (2) The department shall then calculate the amount of grant
2 due to each local transportation organization and transportation
3 company as follows:
4 (i) Each class 1 transit entity shall receive a prorata
5 share of the class 1 transit entity share. If there is only one
6 class 1 transit entity, it shall receive the entire class 1
7 transit entity share.
8 (ii) Each class 2 transit entity shall receive a prorata
9 share of the class 2 transit entity share. If there is only one
10 class 2 transit entity, it shall receive the entire class 2
11 transit entity share.
12 (iii) Each class 3A transit entity shall receive a portion
13 of the class 3A transit entity share calculated as follows:
14 (A) From the class 3A transit entity share, each class 3A
15 transit entity shall first receive an amount equal to one
16 hundred percent of its adjusted base grant.
17 (B) With respect to any portion of the class 3A transit
18 entity share remaining after each class 3A transit entity
19 receives an amount equal to one hundred percent of its adjusted
20 base grant:
21 (I) Fifty percent of such excess shall be distributed to
22 class 3A transit entities based upon the percentage of all
23 adjusted base grants given to class 3A transit entities which a
24 particular class 3A transit entity received.
25 (II) Twenty-five percent of such excess shall be distributed
26 to class 3A transit entities based upon each transit entity's
27 class 3A vehicle mile percentage. The actual amount received by
28 each class 3A transit entity under this subclause shall be
29 determined by multiplying a particular class 3A transit entity's
30 class 3A vehicle mile percentage times twenty-five percent of
19870H1552B1833 - 12 -
1 such excess of the class 3A transit entity share.
2 (III) Twenty-five percent of such excess shall be
3 distributed to class 3A transit entities based upon each class
4 3A transit entity's class 3A operating revenue percentage. The
5 actual amount received by each class 3A transit entity under
6 this subclause shall be determined by multiplying a particular
7 class 3A transit entity's class 3A operating revenue percentage
8 times twenty-five percent of such excess of the class 3A transit
9 entity share.
10 (iv) Each class 3B transit entity shall receive a portion of
11 the class 3B transit entity share calculated as follows:
12 (A) From the class 3B transit entity share, each class 3B
13 transit entity shall first receive an amount equal to one
14 hundred percent of its adjusted base grant.
15 (B) With respect to any portion of the class 3B transit
16 entity share remaining after each class 3B transit entity
17 receives an amount equal to one hundred percent of its adjusted
18 base grant:
19 (I) Fifty percent of such excess shall be distributed to
20 class 3B transit entities based upon the percentage of all
21 adjusted base grants given to class 3B transit entities which a
22 particular class 3B transit entity received.
23 (II) Twenty-five percent of such excess shall be distributed
24 to class 3B transit entities based upon each transit entity's
25 class 3B vehicle mile percentage. The actual amount received by
26 each class 3B transit entity under this subclause shall be
27 determined by multiplying a particular class 3B transit entity's
28 class 3B vehicle mile percentage times twenty-five percent of
29 such excess of the class 3B transit entity share.
30 (III) Twenty-five percent of such excess shall be
19870H1552B1833 - 13 -
1 distributed to class 3B transit entities based upon each class
2 3B transit entity's class 3B operating revenue percentage. The
3 actual amount received by each class 3B transit entity under
4 this subclause shall be determined by multiplying a particular
5 class 3B transit entity's class 3B operating revenue percentage
6 times twenty-five percent of such excess of the class 3B transit
7 entity share.
8 (3) On or about each July 1, October 1, January 1 and April
9 1 of each year commencing July 1, 1987, the department shall
10 disburse one-quarter of the total annual amount due to each
11 local transportation organization or transportation company
12 calculated in accordance with the provisions of this section.
13 (d) Should a new local transportation organization or
14 transportation company be established, the department shall make
15 an appropriate determination as to the level of grant to which
16 such local transportation organization or transportation company
17 shall be entitled. Such determination shall include, but shall
18 not be limited to, a determination as to an appropriate adjusted
19 base grant for that local transportation organization or
20 transportation company.
21 (e) Each local transportation organization or transportation
22 company receiving moneys pursuant to this section shall annually
23 fix such rates, fares and charges in such manner that they shall
24 be at all times sufficient in the aggregate, and in conjunction
25 with any moneys received from Federal or other sources, and any
26 other income available to such organization or company, to
27 provide funds for the payment of all operating costs and
28 expenses which shall be incurred by such organization or
29 company.
30 (f) (1) Within one year after the effective date of this
19870H1552B1833 - 14 -
1 act and every year thereafter, each local transportation
2 organization or transportation company receiving moneys pursuant
3 to this section, shall adopt a series of service standards and
4 performance evaluation measures. Such standards and measures
5 shall consist of objectives and specific numeric performance
6 levels to be achieved in meeting these standards and objectives.
7 Those standards and measures adopted shall include the
8 following, in addition to others deemed appropriate by the local
9 transportation organization or transportation company:
10 (i) An automatic mechanism to review the utilization of
11 routes.
12 (ii) Staffing ratios (ratio of administrative employes to
13 operating employes; number of vehicles per mechanic).
14 (iii) Productivity measures (vehicle miles per employe;
15 passenger and employe accidents per one hundred thousand vehicle
16 miles; on-time performance; miles between road calls).
17 (iv) Fiscal indicators (operating cost per passenger;
18 subsidy per passenger and operating ratio).
19 (v) Any other matter desired by the governing body of such
20 local transportation organization or transportation company.
21 (2) The service standards and performance evaluation
22 measures shall be established by formal action of the governing
23 body of such local transportation organization or transportation
24 company following an opportunity for comment by the public and
25 the department. Upon submission, the department will review and
26 may make recommendations to the local transportation
27 organization or transportation company concerning the service
28 standards and performance evaluation measures.
29 (3) In the discretion of such governing body, the service
30 standards and performance evaluation measures may be systemwide
19870H1552B1833 - 15 -
1 or based on a sampling.
2 (4) The service standards and performance evaluation
3 measures shall only constitute goals for such local
4 transportation organization or transportation company in
5 providing service in the year following their adoption. At the
6 end of such year (fiscal or calendar, as the case may be), a
7 report shall be transmitted to the department for its
8 consideration indicating the projected performance levels and
9 the performance levels actually achieved. Upon submission, the
10 department will review the report and may make recommendations
11 to such local transportation organization or transportation
12 company concerning the performance levels actually achieved.
13 Such report shall be released to the public at the time of
14 issuance.
15 (g) With respect to grants to class 1 transit entities and
16 class 2 transit entities in any fiscal year, the department
17 shall reduce the grant amount due to such local transportation
18 organization or transportation company by an amount equal to one
19 percent of such grant moneys otherwise due to such local
20 transportation organization or transportation company for each
21 percentage point such local transportation organization's or
22 transportation company's operating ratio is less than fifty
23 percent in the case of a class 1 transit entity, or less than
24 forty-six percent in the case of a class 2 transit entity.
25 (h) The department is authorized to perform independent
26 financial audits of the financial statements of each local
27 transportation organization or transportation company receiving
28 moneys pursuant to this section. Such audits shall be conducted
29 in accordance with generally accepted auditing standards. Any
30 financial statements subject to such audit or reports resulting
19870H1552B1833 - 16 -
1 from such audit shall be prepared and presented in accordance
2 with generally accepted accounting principles, consistently
3 applied with previous statements rendered for or on behalf of
4 such organization or company. The department may coordinate such
5 audits in conjunction with audits undertaken by the Auditor
6 General.
7 (i) As used in this section the following words and phrases
8 shall have the meanings given to them in this subsection:
9 "Adjusted base grant" shall mean the State subsidy a class 3
10 transit entity received during the 1985-1986 fiscal year
11 adjusted to reflect the amount of State subsidy certain class 3
12 transit entities would have received in that fiscal year but for
13 receipt of a one-time Federal grant during the 1985-1986 fiscal
14 year and also adjusted for other factors which, in the judgment
15 of the department, caused significant increases or decreases in
16 the amount of the State subsidy to such class 3 transit entity
17 during the 1985-1986 or 1986-1987 fiscal years.
18 "Class 1 percentage" shall be equal to seventy and three-
19 tenths percent.
20 "Class 2 percentage" shall be equal to twenty-five and four-
21 tenths percent.
22 "Class 3 percentage" shall be equal to four and three-tenths
23 percent.
24 "Class 1 transit entity share" shall be the product of the
25 class 1 percentage times the total amount appropriated under
26 subsection (b) in a particular fiscal year.
27 "Class 2 transit entity share" shall be the product of the
28 class 2 percentage times the total amount appropriated under
29 subsection (b) in a particular fiscal year.
30 "Class 3 transit entity share" shall be the product of the
19870H1552B1833 - 17 -
1 class 3 percentage times the total amount appropriated under
2 subsection (b) in a particular fiscal year.
3 "Class 3A transit entity share" shall be sixty and sixty-nine
4 one-hundredths percent of the total class 3 transit entity
5 share.
6 "Class 3B transit entity share" shall be thirty-nine and
7 thirty-one one-hundredths percent of the total class 3 transit
8 entity share.
9 "Operating ratio" shall mean the proportion of total
10 operating revenue (which shall include all passenger, charter
11 and advertising revenue, fare reimbursement received from the
12 State Lottery Fund, and all other receipts associated with the
13 delivery of transit services, but shall exclude Federal grants
14 provided to cover operating losses and State grants made
15 pursuant to subsection (b)) divided by total operating expenses
16 associated with day-to-day operation of the system (but
17 excluding depreciation of capital assets).
18 "Operating revenue" shall mean the total revenue earned by a
19 local transportation organization or transportation company
20 through its transit operations during the 1984-1985 fiscal year,
21 including, but not limited to, passenger revenue, senior citizen
22 grant, charter revenue, school contract revenue, advertising and
23 other revenue as reported in the 1984-1985 Pennsylvania Mass
24 Transit Statistical Report. In the event such revenue for a
25 particular local transportation organization or transportation
26 company is not reported in the 1984-1985 Pennsylvania Mass
27 Transit Statistical Report, "operating revenue" shall mean the
28 total revenue during the 1984-1985 fiscal year indicated in the
29 1986-1987 purchase of service application submitted to the
30 department by such local transportation organization or
19870H1552B1833 - 18 -
1 transportation company: Provided, however, That, if the primary
2 source of State operating assistance of a local transportation
3 organization or transportation company has changed, since the
4 1984-1985 fiscal year, from this act to the act of February 11,
5 1976 (P.L.14, No.10), known as the "Pennsylvania Rural and
6 Intercity Common Carrier Surface Transportation Assistance Act,"
7 the term "operating revenue" shall mean the total revenue during
8 the 1986-1987 fiscal year indicated in the 1986-1987 purchase of
9 service application submitted to the department by such local
10 transportation organization or transportation company.
11 "Operating revenue percentage" shall mean the percentage
12 determined by dividing the operating revenues a local
13 transportation organization or transportation company had during
14 the 1984-1985 fiscal year by the total operating revenue of all
15 local transportation organizations or transportation companies
16 during the 1984-1985 fiscal year. "Class 3A operating revenue
17 percentage" shall mean the percentage determined by dividing the
18 operating revenues a class 3A transit entity had during the
19 1984-1985 fiscal year by the total operating revenue of all
20 class 3A transit entities during the 1984-1985 fiscal year.
21 "Class 3B operating revenue percentage" shall mean the
22 percentage determined by dividing the operating revenues a class
23 3B transit entity had during the 1984-1985 fiscal year by the
24 total operating revenue of all class 3B transit entities during
25 the 1984-1985 fiscal year.
26 "Pennsylvania Mass Transit Statistical Report" shall mean the
27 summary of selected financial and operating data concerning
28 local transportation organizations and transportation companies
29 annually published by the department since the 1973-1974 fiscal
30 year.
19870H1552B1833 - 19 -
1 "Vehicle mile percentage" shall mean the percentage
2 determined by dividing the vehicle miles of a local
3 transportation organization or transportation company for the
4 1984-1985 fiscal year by the total number of vehicle miles of
5 all local transportation organizations and transportation
6 companies for the 1984-1985 fiscal year. "Class 3A vehicle mile
7 percentage" shall mean the percentage determined by dividing the
8 vehicle miles of a class 3A local transportation organization or
9 transportation company for the 1984-1985 fiscal year by the
10 total number of vehicle miles of all class 3A local
11 transportation organizations and transportation companies for
12 the 1984-1985 fiscal year. "Class 3B vehicle mile percentage"
13 shall mean the percentage determined by dividing the vehicle
14 miles of a class 3B local transportation organization or
15 transportation company for the 1984-1985 fiscal year by the
16 total number of vehicle miles of all class 3B local
17 transportation organizations and transportation companies for
18 the 1984-1985 fiscal year.
19 "Vehicle miles" shall mean the total distance, calculated in
20 miles, traveled by vehicles of a local transportation
21 organization or transportation company as reported for the 1984-
22 1985 fiscal year in the 1984-1985 Pennsylvania Mass Transit
23 Statistical Report. In the event vehicle miles for a particular
24 local transportation organization or transportation company are
25 not reported in the 1984-1985 Pennsylvania Mass Transit
26 Statistical Report, "vehicle miles" shall mean the total
27 distance, calculated in miles, traveled by vehicles of such
28 local transportation organization or transportation company
29 during the 1984-1985 fiscal year indicated in the 1986-1987
30 purchase of service application submitted to the department by
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1 such local transportation organization or transportation
2 company: Provided, however, That, if the primary source of State
3 operating assistance of a local transportation organization or
4 transportation company has changed, since the 1984-1985 fiscal
5 year, from this act to the act of February 11, 1976 (P.L.14,
6 No.10), known as the "Pennsylvania Rural and Intercity Common
7 Carrier Surface Transportation Assistance Act," the term
8 "vehicle miles" shall mean the total distance, calculated in
9 miles, traveled by vehicles of such local transportation
10 organization or transportation company during the 1986-1987
11 fiscal year indicated in the 1986-1987 purchase of service
12 application submitted to the department by such local
13 transportation organization or transportation company.
14 Section 4. Sections 205 and 321 of the act, added July 10,
15 1980 (P.L.427, No.101), are amended to read:
16 Section 205. Grant Proposals.--(a) Grants may be made
17 hereunder with reference to any appropriate project irrespective
18 of when it was first commenced or considered and regardless of
19 whether costs with respect thereto shall have been incurred
20 prior to the time the grant is applied for or made.
21 (b) The governing bodies of municipalities, counties or
22 their instrumentalities, and agencies and instrumentalities of
23 the Commonwealth may, by formal resolution, apply and
24 transportation companies by application may apply to the
25 department for State grant funds provided by this article. If
26 such action is taken by any such governing body, a certified
27 copy of the resolution and in the case of transportation
28 companies, an application shall be forwarded to the department
29 with a proposal of the governing body or company, which shall
30 set forth the use to be made of State grant funds and the amount
19870H1552B1833 - 21 -
1 of funds required, or, in the case of grants under section 204,
2 which shall set forth a request that the grant provided for
3 under section 204 be made.
4 (c) The department shall give preference to any proposal
5 which will assist in carrying out a plan, meeting criteria
6 established by the department, for a unified or officially
7 coordinated urban transportation system as a part of the
8 comprehensively planned development of the urban area, which is
9 necessary for the sound, economic and desirable development of
10 such area, and which shall encourage to the maximum extent
11 feasible the participation of private enterprise. This
12 subsection shall not apply to grants made pursuant to section
13 204.
14 (d) The use of the State grant funds shall be for the
15 purposes set forth in section 203, and without limiting the
16 generality of the foregoing, may be used for local contributions
17 required by the Federal Urban Mass Transportation Act of 1964,
18 as amended, or other Federal law concerning common carrier mass
19 transportation.
20 (e) The department shall review the proposal and, if
21 satisfied that the proposal is in accordance with the purposes
22 of this article, shall enter into a grant agreement subject to
23 the condition that the grant be used in accordance with the
24 terms of the proposal. With respect to grants made pursuant to
25 section 204, the department shall make such grants subject to
26 the condition that the grants be used for the purposes set forth
27 in section 203 and, where applicable, only after the
28 certification required in section 203(2)(iii) and (3) shall have
29 been made.
30 (f) The time of payment of the grant and any conditions
19870H1552B1833 - 22 -
1 concerning such payment shall be set forth in the grant
2 agreement.
3 Section 321. Controller.--As a condition of eligibility for
4 grants made pursuant to section 204, all class 1 transit
5 entities shall appoint a controller. Any class 1 transit entity
6 which has not done so by January 1, 1988, shall cease to be
7 eligible for grants made pursuant to section 204. The board
8 shall appoint a controller, who shall not be a member of the
9 board, to hold office during the pleasure of the board and shall
10 fix his or her compensation. The controller shall conduct a
11 monthly examination of the books, accounts, documents and papers
12 of the authority and report the results of his or her
13 investigation to the board and the chief operations officer. The
14 controller shall submit an annual report of the authority's
15 financial condition which shall be in addition to any other
16 financial report required by this article to the board and the
17 chief operations officer. The controller shall execute a
18 corporate surety bond and shall take and subscribe the oath of
19 office provided in section 318.
20 Section 5. This act shall apply to fiscal years commencing
21 July 1, 1987, and thereafter.
22 Section 6. This act shall take effect immediately.
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