THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY FRANKEL, DECEMBER 20, 2011

REFERRED TO COMMITTEE ON APPROPRIATIONS, DECEMBER 20, 2011  

AN ACT

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

Pennsylvania Consolidated Statutes, further providing for

department authorization, for fund, for application and

approval process, for coordination, for asset improvement

program and for programs of Statewide significance; and

making repeals.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 1504(a) of Title 74 of the Pennsylvania

Consolidated Statutes is amended to read:

§ 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. The operation of such programs, activities and

services by the department shall not be subject to the

jurisdiction of the Pennsylvania Public Utility Commission.

* * *

Section 2.  Section 1506(b)(1), (c)(1) and (e) of Title 74

are amended and the section is amended by adding a subsection to

read:

§ 1506.  Fund.

* * *

(a.1)  Availability of funds.--Funds not expended in the

fiscal year they were made available shall not lapse and shall

be available until expended.

(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 from the turnpike shall equal [$250,000,000]

$450,000,000 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)] with fiscal year 2012-2013.

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

the fund annually:

(1)  [4.4%] 6.4% 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.

* * *

(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).

(E)  95% of all revenues deposited in the fund

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%]

20.63% of the revenues deposited in the fund under subsection

(c)(1) shall be allocated from the fund plus 5% of all

revenue deposited in the fund under subsection (b)(1).

[(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).]

Section 3.  Sections 1507(a) and (c) and 1512 of Title 74 are

amended to read:

§ 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] no later than June 30 of the

applicable fiscal year. If this evidence is not provided,

subsequent funding under section 1513 (relating to operating

program) shall be withheld.

(7)  A statement of policy outlining basic principles for

adjustment in fare revenue growth to meet the rate of

inflation.

(8)  Any other information the department deems necessary

or desirable.

* * *

(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.]

Financial assistance under this chapter shall be used only for

activities set forth under the financial 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 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 and the duration of the waiver cannot

exceed the duration of the plan of corrective action. If the

waiver request and plan are approved, the department shall

monitor the implementation of the plan of corrective action. If

the plan of corrective action is not implemented by the local

transportation organization, the department shall rescind the

waiver approval.

§ 1512.  Coordination.

(a)  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.

(b)  Consolidation.--The department may study consolidation

of local transportation organizations as a means of reducing

annual expenses. Consolidation shall not occur until the

department and the affected transportation organizations have

jointly conducted a study. The study shall examine the creation

of service regions to determine whether consolidation would

reduce annual expenses. If the results of the study estimate

annual savings, the transportation organizations and local

governments shall either implement the recommended actions or

provide increased local matching funds equal to the projected

annual savings.

(c)  Funding for merger and consolidation incentives.--

Capital projects that are needed to support local transportation

organizations that have agreed to merge and consolidate

operations and administration to achieve cost and service

efficiencies shall be eligible for financial assistance under

this chapter. The application for financial assistance shall

identify the efficiencies in a merger and consolidation plan and

shall include the expected dollar savings that will result from

the merger and consolidation.

Section 4.  Sections 1514(c) and (e)(3) and 1516(b)(1) and

(e)(3) of Title 74 are amended to read:

§ 1514.  Asset improvement program.

* * *

(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] 10% of the non-Federal share of the

project cost. The source of funds for the local match shall be

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

operating program).

* * *

(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:

* * *

(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] Replacement of existing

assets that have exceeded their useful life and asset

improvement projects to extend the useful life of the

affected assets.

(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.

* * *

§ 1516.  Programs of Statewide significance.

* * *

(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.

* * *

(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:

* * *

(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] non-Federal share of project costs. The sources of

funds for the local match shall be subject to the

requirements of section 1513(d)(3) (relating to operating

program).

Section 5.  Section 1517 of Title 74 is repealed:

[§ 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

be paid to local transportation organizations at least

quarterly.

(e)  Reduction in financial assistance.--Financial assistance

provided to a local transportation organization under this

section shall be reduced by any financial assistance received

previously under this section which has not been spent or

committed in a contract within three years of its receipt.]

Section 6.  Section 8915.6 of Title 75 is repealed:

[§ 8915.6.  Deposit and distribution of funds.

(a)  Deposits.--Upon receipt by the department, the following

amounts from the scheduled annual commission contribution shall

be deposited in the Motor License Fund:

(1)  For fiscal year 2007-2008, $450,000,000.

(2)  For fiscal year 2008-2009, $500,000,000.

(3)  For fiscal year 2009-2010, $500,000,000.

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

thereafter, the amount calculated for the previous year

increased by 2.5%.

(b)  Distribution.--The following shall apply:

(1)  Annually, 15% of the amount deposited in any fiscal

year under subsection (a) shall be distributed at the

discretion of the secretary.

(2)  Annually, $5,000,000 of the amount deposited in any

fiscal year under subsection (a) shall be distributed to

counties.

(i)  The distribution shall be in the ratio of:

(A)  the square footage of deck area of a

county's county-owned bridges; to

(B)  the total square footage of deck area of

county-owned bridges throughout this Commonwealth.

(ii)  The amount of square footage under subparagraph

(i) shall be that reported as part of the National Bridge

Inspection Standards Program.

(3)  Annually, $30,000,000 of the amount deposited in any

fiscal year under subsection (a) shall be distributed to

municipalities pursuant to the act of June 1, 1956 (1955

P.L.1944, No.655), referred to as the Liquid Fuels Tax

Municipal Allocation Law.

(4)  Any funds deposited under subsection (a) but not

distributed under paragraphs (1), (2) and (3) shall be

distributed in accordance with needs-based formulas that are

developed and subject to periodic revision based on

consultation and collaboration among metropolitan planning

organizations, rural planning organizations and the

department.

(c)  Definitions.--The following words and phrases when used

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

subsection unless the context clearly indicates otherwise:

"Metropolitan planning organization."  The policy board of an

organization created and designated to carry out the

metropolitan transportation planning process.

"Rural planning organization."  The organization of counties

with populations of less than 50,000 created and designated as

local development districts and which carry out the rural

transportation planning process.]

Section 7.  This act shall take effect in 60 days.