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                                 SENATE AMENDED
        PRIOR PRINTER'S NOS. 1971, 2088, 2170,        PRINTER'S NO. 2342
        2179

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1590 Session of 2007


        INTRODUCED BY MARKOSEK, D. EVANS, McCALL AND DeWEESE,
           JUNE 18, 2007

        SENATOR ARMSTRONG, APPROPRIATIONS, IN SENATE, RE-REPORTED AS
           AMENDED, JULY 14, 2007

                                     AN ACT

     1  Amending Titles 53 (Municipalities Generally), 74
     2     (Transportation) and 75 (Vehicles) of the Pennsylvania
     3     Consolidated Statutes, providing for minority and women-owned  <--
     4     business participation, for public transportation assistance
     5     and taxation and for income based on use of Commonwealth
     6     highways; PROVIDING FOR MINORITY AND WOMEN-OWNED BUSINESS      <--
     7     PARTICIPATION; authorizing local taxation for public
     8     transportation assistance; repealing provisions relating to
     9     public transportation assistance; providing for
    10     transportation issues and for sustainable mobility options;
    11     further providing, in metropolitan transportation              <--
    12     authorities, for board members and for operation;
    13     consolidating the Turnpike Organization, Extension and Toll
    14     Road Conversion Act and further providing for the              <--
    15     Pennsylvania Turnpike Commission; PROVIDING FOR TURNPIKE       <--
    16     COMMISSION STANDARDS OF CONDUCT; in provisions on the
    17     Pennsylvania Turnpike, further providing for definitions, for
    18     authorizations and for conversion to toll roads and providing
    19     for conversion of Interstate 80, for application and, for      <--
    20     lease of Interstate 80, FOR PAYMENTS, FOR OTHER INTERSTATE     <--
    21     HIGHWAYS, FOR FUND DISTRIBUTION, FOR IMPACT, FOR FINANCIAL
    22     PLAN AND FOR NONPERFORMANCE; in taxes for highway maintenance
    23     and construction, providing for definitions; further
    24     providing for imposition and for allocation of proceeds;
    25     providing for special revenue bonds, for expenses, for
    26     application of proceeds of obligations, for trust indenture,
    27     for exemption, for pledged revenues, for special revenue
    28     refunding bonds, for remedies, for Motor License Fund
    29     proceeds, for construction and for funding; and making
    30     related repeals.


     1     The General Assembly of the Commonwealth of Pennsylvania
     2  hereby enacts as follows:
     3     Section 1.  Chapter 86 of Title 53 of the Pennsylvania         <--
     4  Consolidated Statutes is amended to read:
     5                             CHAPTER 86
     6                            [(RESERVED)]
     7                 TAXATION FOR PUBLIC TRANSPORTATION
     8  Sec.
     9  8601.  Declaration of policy.
    10  8602.  Local financial support.
    11  § 8601. Declaration of policy.
    12     The General Assembly finds and declares as follows:
    13         (1)  Programs under 74 Pa.C.S. Ch. 13A (relating to
    14     sustainable mobility options) will require local funding.
    15         (2)  Local funding under paragraph (1) will require new
    16     or additional taxes by political subdivisions.
    17  § 8602.  Local financial support.
    18     (a)  Imposition.--Notwithstanding any other provision of law,
    19  a municipality may obtain financial support for transit systems
    20  by imposing one or more of the taxes or surcharges under
    21  subsection (b). Money obtained from the imposition shall be
    22  deposited into a restricted account of the municipality. The
    23  following apply:
    24         (1)  Money in the restricted account shall be used to
    25     meet the requirements of 74 Pa.C.S. §§ 1513(d)(1) (relating
    26     to operating program), 1514(c) (relating to asset improvement
    27     program) and 1515(d) (relating to new initiatives program).
    28         (2)  Money in the restricted account beyond that
    29     necessary under paragraph (1) shall be used for public
    30     passenger transportation, as defined in 74 Pa.C.S. § 1503
    20070H1590B2342                  - 2 -     

     1     (relating to definitions) or for costs related to the
     2     maintenance, repair, restoration or replacement of local
     3     roads and bridges.
     4     (b)  Taxes.--
     5         (1)  A county may, by ordinance, impose all of the
     6     following taxes:
     7             (i)  A sales tax on each separate sale at retail of
     8         tangible personal property or services within the county
     9         of either 0.25% or 0.5% of the purchase price. The
    10         Department of Revenue shall administer and collect the
    11         tax under this subparagraph in accordance with Article II
    12         of the act of March 4, 1971 (P.L.6, No.2), known as the
    13         Tax Reform Code of 1971, and shall distribute the money
    14         to the county. As used in this subparagraph, the terms
    15         "purchase price," "sale at retail" and "tangible personal
    16         property" shall have the meanings given to them under
    17         section 201 of the Tax Reform Code of 1971.
    18             (ii)  A use tax on each use within the county of
    19         tangible personal property purchased at retail and on
    20         those services purchased at retail of either 0.25% or
    21         0.5% of the purchase price. The ordinance shall provide
    22         that the tax shall not be paid if the person has paid the
    23         tax imposed under subparagraph (i) or has paid the tax
    24         imposed under this subparagraph to the vendor with
    25         respect to the use. The Department of Revenue shall
    26         administer and collect the tax under this subparagraph in
    27         accordance with Article II of the Tax Reform Code of 1971
    28         and shall distribute the money to the county. As used in
    29         this subparagraph, the terms "purchase price," "tangible
    30         personal property" and "vendor" shall have the meanings
    20070H1590B2342                  - 3 -     

     1         given to them under section 201 of the Tax Reform Code of
     2         1971.
     3             (iii)  An excise tax of either 0.25% or 0.5% of the
     4         rent upon the occupancy of each hotel room in the county.
     5         As used in this subparagraph, the terms "hotel,"
     6         "occupancy" and "rent" shall have the meanings given to
     7         them under section 209(a) of the Tax Reform Code of 1971.
     8         (2)  A municipality other than a county may, by
     9     ordinance, impose a tax on earned income, as defined under
    10     section 13 of the act of December 31, 1965 (P.L.1257,
    11     No.511), known as The Local Tax Enabling Act, of either 0.25%
    12     or 0.5%. The tax under this paragraph shall be in addition to
    13     the tax imposed under The Local Tax Enabling Act.
    14         (3)  A municipality may, by ordinance, impose a tax of up
    15     to $2 per day on each rental vehicle. As used in this
    16     paragraph, the term "rental vehicle" shall have the meaning
    17     given it in section 1601-A of the Tax Reform Code of 1971.
    18         (4)  A county may impose, under the statutory authority
    19     of the county to levy an excise tax on the price of a hotel
    20     room rental, an additional excise tax of up to 1% on the
    21     price of a hotel room rental.
    22     Section 1.1.  Title 74 is amended by adding a section to
    23  read:
    24  § 303.  Minority and women-owned business participation.
    25     (a)  General rule.--In administering the provisions of this
    26  title, the department and any local transportation organization
    27  shall:
    28         (1)  Be responsible for ensuring that all competitive
    29     contract opportunities issued by the department or local
    30     transportation organization seek to maximize participation by
    20070H1590B2342                  - 4 -     

     1     minority and women-owned businesses and other disadvantaged
     2     businesses.
     3         (2)  Give consideration, when possible and cost
     4     effective, to contractors offering to utilize minority and
     5     women-owned businesses and disadvantaged businesses in the
     6     selection and award of contracts.
     7         (3)  Ensure that the department's and local
     8     transportation organizations's commitment to the minority and
     9     women-owned business program is clearly understood and
    10     appropriately implemented and enforced by all department and
    11     local transportation organization employees.
    12         (4)  Designate a responsible official to supervise the
    13     department and local transportation organization minority and
    14     women-owned business program and ensure compliance within the
    15     department or local transportation organization.
    16         (5)  Furnish the Department of General Services, upon
    17     request, all requested information or assistance.
    18         (6)  Recommend sanctions to the Secretary of General
    19     Services, as may be appropriate, against businesses that fail
    20     to comply with the policies of the Commonwealth minority and
    21     women-owned business program.
    22     (b)  Definitions.--As used in this section, the following
    23  words and phrases shall have the meanings given to them in this
    24  subsection:
    25     "Disadvantaged business."  A business that is owned or
    26  controlled by a majority of persons, not limited to members of
    27  minority groups, who are subject to racial or ethnic prejudice
    28  or cultural bias.
    29     "Local transportation organization."  Any of the following:
    30         (1)  A political subdivision or a public transportation
    20070H1590B2342                  - 5 -     

     1     port or redevelopment authority organized under the laws of
     2     this Commonwealth or pursuant to an interstate compact or
     3     otherwise empowered to render, contract for the rendering or
     4     assist in the rendering of transportation service in a
     5     limited area in this Commonwealth, even though it may also
     6     render or assist in rendering transportation service in
     7     adjacent states.
     8         (2)  A nonprofit association that directly or indirectly
     9     provides public transportation service.
    10         (3)  A nonprofit association of public transportation
    11     providers operating within this Commonwealth.
    12     "Minority-owned business."  A business owned and controlled
    13  by a majority of persons who are African Americans, Hispanic
    14  Americans, Native Americans, Asian Americans, Alaskans and
    15  Pacific Islanders.
    16     "Women-owned business."  A business owned and controlled by a
    17  majority of persons who are women.
    18     Section 1.2.  Chapter 13 of Title 74 is repealed:
    19     SECTION 1.  TITLE 53 OF THE PENNSYLVANIA CONSOLIDATED          <--
    20  STATUTES IS AMENDED BY ADDING A CHAPTER TO READ:
    21     SECTION 1.  TITLE 53 OF THE PENNSYLVANIA CONSOLIDATED          <--
    22  STATUTES IS AMENDED BY ADDING A SECTION TO READ:
    23  § 303.  MINORITY AND WOMEN-OWNED BUSINESS PARTICIPATION.
    24     (A)  GENERAL RULE.--IN ADMINISTERING THE PROVISIONS OF THIS
    25  TITLE, THE DEPARTMENT AND ANY LOCAL TRANSPORTATION ORGANIZATION
    26  SHALL:
    27         (1)  BE RESPONSIBLE FOR ENSURING THAT ALL COMPETITIVE
    28     CONTRACT OPPORTUNITIES ISSUED BY THE DEPARTMENT OR LOCAL
    29     TRANSPORTATION ORGANIZATION SEEK TO MAXIMIZE PARTICIPATION BY
    30     MINORITY-OWNED AND WOMEN-OWNED BUSINESSES AND OTHER
    20070H1590B2342                  - 6 -     

     1     DISADVANTAGED BUSINESSES.
     2         (2)  GIVE CONSIDERATION, WHEN POSSIBLE AND COST
     3     EFFECTIVE, TO CONTRACTORS OFFERING TO UTILIZE MINORITY-OWNED
     4     AND WOMEN-OWNED BUSINESSES AND DISADVANTAGED BUSINESSES IN
     5     THE SELECTION AND AWARD OF CONTRACTS.
     6         (3)  ENSURE THAT THE DEPARTMENT'S AND LOCAL
     7     TRANSPORTATION ORGANIZATIONS'S COMMITMENT TO THE MINORITY-
     8     OWNED AND WOMEN-OWNED BUSINESS PROGRAM IS CLEARLY UNDERSTOOD
     9     AND APPROPRIATELY IMPLEMENTED AND ENFORCED BY ALL DEPARTMENT
    10     AND LOCAL TRANSPORTATION ORGANIZATION EMPLOYEES.
    11         (4)  DESIGNATE A RESPONSIBLE OFFICIAL TO SUPERVISE THE
    12     DEPARTMENT AND LOCAL TRANSPORTATION ORGANIZATION MINORITY-
    13     OWNED AND WOMEN-OWNED BUSINESS PROGRAM AND ENSURE COMPLIANCE
    14     WITHIN THE DEPARTMENT OR LOCAL TRANSPORTATION ORGANIZATION.
    15         (5)  FURNISH THE DEPARTMENT OF GENERAL SERVICES, UPON
    16     REQUEST, ALL REQUESTED INFORMATION OR ASSISTANCE.
    17         (6)  RECOMMEND SANCTIONS TO THE SECRETARY OF GENERAL
    18     SERVICES, AS MAY BE APPROPRIATE, AGAINST BUSINESSES THAT FAIL
    19     TO COMPLY WITH THE POLICIES OF THE COMMONWEALTH MINORITY-
    20     OWNED AND WOMEN-OWNED BUSINESS PROGRAM.
    21     (B)  DEFINITIONS.--AS USED IN THIS SECTION, THE FOLLOWING
    22  WORDS AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS
    23  SUBSECTION:
    24     "DISADVANTAGED BUSINESS."  A BUSINESS THAT IS OWNED OR
    25  CONTROLLED BY A MAJORITY OF PERSONS, NOT LIMITED TO MEMBERS OF
    26  MINORITY GROUPS, WHO ARE SUBJECT TO RACIAL OR ETHNIC PREJUDICE
    27  OR CULTURAL BIAS.
    28     "LOCAL TRANSPORTATION ORGANIZATION."  ANY OF THE FOLLOWING:
    29         (1)  A POLITICAL SUBDIVISION OR A PUBLIC TRANSPORTATION
    30     PORT OR REDEVELOPMENT AUTHORITY ORGANIZED UNDER THE LAWS OF
    20070H1590B2342                  - 7 -     

     1     THIS COMMONWEALTH OR PURSUANT TO AN INTERSTATE COMPACT OR
     2     OTHERWISE EMPOWERED TO RENDER, CONTRACT FOR THE RENDERING OF
     3     OR ASSIST IN THE RENDERING OF TRANSPORTATION SERVICE IN A
     4     LIMITED AREA IN THIS COMMONWEALTH, EVEN THOUGH IT MAY ALSO
     5     RENDER OR ASSIST IN RENDERING TRANSPORTATION SERVICE IN
     6     ADJACENT STATES.
     7         (2)  A NONPROFIT ASSOCIATION THAT DIRECTLY OR INDIRECTLY
     8     PROVIDES PUBLIC TRANSPORTATION SERVICE.
     9         (3)  A NONPROFIT ASSOCIATION OF PUBLIC TRANSPORTATION
    10     PROVIDERS OPERATING WITHIN THIS COMMONWEALTH.
    11     "MINORITY-OWNED BUSINESS."  A BUSINESS OWNED AND CONTROLLED
    12  BY A MAJORITY OF INDIVIDUALS WHO ARE AFRICAN AMERICANS, HISPANIC
    13  AMERICANS, NATIVE AMERICANS, ASIAN AMERICANS, ALASKANS OR
    14  PACIFIC ISLANDERS.
    15     "WOMEN-OWNED BUSINESS."  A BUSINESS OWNED AND CONTROLLED BY A
    16  MAJORITY OF INDIVIDUALS WHO ARE WOMEN.
    17     SECTION 1.1.  TITLE 53 IS AMENDED BY ADDING A CHAPTER TO
    18  READ:
    19     SECTION 1. TITLE 53 OF THE PENNSYLVANIA CONSOLIDATED STATUTES  <--
    20  IS AMENDED BY ADDING A CHAPTER TO READ:
    21                             CHAPTER 86
    22                 TAXATION FOR PUBLIC TRANSPORTATION
    23  SEC.
    24  8601.  SCOPE.
    25  8602.  LOCAL FINANCIAL SUPPORT.
    26  § 8601.  SCOPE.
    27     THIS CHAPTER RELATES TO LOCAL FUNDING FOR SUSTAINABLE
    28  MOBILITY OPTIONS.
    29  § 8602.  LOCAL FINANCIAL SUPPORT.
    30     (A)  IMPOSITION.--NOTWITHSTANDING ANY OTHER PROVISION OF LAW,
    20070H1590B2342                  - 8 -     

     1  A COUNTY OF THE SECOND CLASS MAY OBTAIN FINANCIAL SUPPORT FOR
     2  TRANSIT SYSTEMS BY IMPOSING ONE OR MORE OF THE TAXES UNDER
     3  SUBSECTION (B). MONEY OBTAINED FROM THE IMPOSITION SHALL BE
     4  DEPOSITED INTO A RESTRICTED ACCOUNT OF THE MUNICIPALITY COUNTY.   <--
     5     (B)  TAXES.--
     6         (1)  A COUNTY OF THE SECOND CLASS MAY, BY ORDINANCE,
     7     IMPOSE ALL ANY OF THE FOLLOWING TAXES:                         <--
     8             (I)  A TAX ON THE SALE AT RETAIL OF LIQUOR AND MALT
     9         AND BREWED BEVERAGES WITHIN THE COUNTY. THE ORDINANCE
    10         SHALL BE MODELED ON THE ACT OF JUNE 10, 1971 (P.L.153,
    11         NO.7), KNOWN AS THE FIRST CLASS SCHOOL DISTRICT LIQUOR
    12         SALES TAX ACT OF 1971; AND THE RATE OF TAX AUTHORIZED
    13         UNDER THIS SUBPARAGRAPH MAY NOT EXCEED THE RATE
    14         ESTABLISHED UNDER THAT ACT.
    15             (II)  AN EXCISE TAX ON EACH RENTING OF A RENTAL
    16         VEHICLE IN THE COUNTY. THE RATE OF TAX AUTHORIZED UNDER
    17         THIS SUBPARAGRAPH MAY NOT EXCEED THE RATE ESTABLISHED
    18         UNDER SECTION 2301(E) OF THE ACT OF MARCH 4, 1971 (P.L.6,
    19         NO.2), KNOWN AS THE TAX REFORM CODE OF 1971. AS USED IN
    20         THIS SUBPARAGRAPH, THE TERM "RENTAL VEHICLE" HAS THE
    21         MEANING GIVEN TO IT IN SECTION 1601-A OF THE TAX REFORM
    22         CODE OF 1971.
    23         (2)  (RESERVED).
    24     (C)  DEFINITION.--FOR PURPOSES OF THIS SECTION, THE TERM       <--
    25  "COUNTY OF THE SECOND CLASS" SHALL NOT INCLUDE A COUNTY OF THE
    26  SECOND CLASS A.
    27     SECTION 1.1.  TITLE 74 IS AMENDED BY ADDING A SECTION TO       <--
    28  READ:
    29  § 303.  MINORITY AND WOMEN-OWNED BUSINESS PARTICIPATION.
    30     (A)  GENERAL RULE.--IN ADMINISTERING THE PROVISIONS OF THIS
    20070H1590B2342                  - 9 -     

     1  TITLE, THE DEPARTMENT AND ANY LOCAL TRANSPORTATION ORGANIZATION
     2  SHALL:
     3         (1)  BE RESPONSIBLE FOR ENSURING THAT ALL COMPETITIVE
     4     CONTRACT OPPORTUNITIES ISSUED BY THE DEPARTMENT OR LOCAL
     5     TRANSPORTATION ORGANIZATION SEEK TO MAXIMIZE PARTICIPATION BY
     6     MINORITY-OWNED AND WOMEN-OWNED BUSINESSES AND OTHER
     7     DISADVANTAGED BUSINESSES.
     8         (2)  GIVE CONSIDERATION, WHEN POSSIBLE AND COST
     9     EFFECTIVE, TO CONTRACTORS OFFERING TO UTILIZE MINORITY-OWNED
    10     AND WOMEN-OWNED BUSINESSES AND DISADVANTAGED BUSINESSES IN
    11     THE SELECTION AND AWARD OF CONTRACTS.
    12         (3)  ENSURE THAT THE DEPARTMENT'S AND LOCAL
    13     TRANSPORTATION ORGANIZATIONS'S COMMITMENT TO THE MINORITY-
    14     OWNED AND WOMEN-OWNED BUSINESS PROGRAM IS CLEARLY UNDERSTOOD
    15     AND APPROPRIATELY IMPLEMENTED AND ENFORCED BY ALL DEPARTMENT
    16     AND LOCAL TRANSPORTATION ORGANIZATION EMPLOYEES.
    17         (4)  DESIGNATE A RESPONSIBLE OFFICIAL TO SUPERVISE THE
    18     DEPARTMENT AND LOCAL TRANSPORTATION ORGANIZATION MINORITY-
    19     OWNED AND WOMEN-OWNED BUSINESS PROGRAM AND ENSURE COMPLIANCE
    20     WITHIN THE DEPARTMENT OR LOCAL TRANSPORTATION ORGANIZATION.
    21         (5)  FURNISH THE DEPARTMENT OF GENERAL SERVICES, UPON
    22     REQUEST, ALL REQUESTED INFORMATION OR ASSISTANCE.
    23         (6)  RECOMMEND SANCTIONS TO THE SECRETARY OF GENERAL
    24     SERVICES, AS MAY BE APPROPRIATE, AGAINST BUSINESSES THAT FAIL
    25     TO COMPLY WITH THE POLICIES OF THE COMMONWEALTH MINORITY-
    26     OWNED AND WOMEN-OWNED BUSINESS PROGRAM. THIS PARAGRAPH SHALL
    27     NOT APPLY TO A LOCAL TRANSPORTATION ORGANIZATION.
    28     (B)  DEFINITIONS.--AS USED IN THIS SECTION, THE FOLLOWING
    29  WORDS AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS
    30  SUBSECTION:
    20070H1590B2342                 - 10 -     

     1     "DISADVANTAGED BUSINESS."  A BUSINESS THAT IS OWNED OR
     2  CONTROLLED BY A MAJORITY OF PERSONS, NOT LIMITED TO MEMBERS OF
     3  MINORITY GROUPS, WHO ARE SUBJECT TO RACIAL OR ETHNIC PREJUDICE
     4  OR CULTURAL BIAS.
     5     "LOCAL TRANSPORTATION ORGANIZATION."  ANY OF THE FOLLOWING:
     6         (1)  A POLITICAL SUBDIVISION OR A PUBLIC TRANSPORTATION
     7     AUTHORITY, PORT AUTHORITY OR REDEVELOPMENT AUTHORITY
     8     ORGANIZED UNDER THE LAWS OF THIS COMMONWEALTH OR PURSUANT TO
     9     AN INTERSTATE COMPACT OR OTHERWISE EMPOWERED TO RENDER,
    10     CONTRACT FOR THE RENDERING OF OR ASSIST IN THE RENDERING OF
    11     TRANSPORTATION SERVICE IN A LIMITED AREA IN THIS
    12     COMMONWEALTH, EVEN THOUGH IT MAY ALSO RENDER OR ASSIST IN
    13     RENDERING TRANSPORTATION SERVICE IN ADJACENT STATES.
    14         (2)  A NONPROFIT ASSOCIATION THAT DIRECTLY OR INDIRECTLY
    15     PROVIDES PUBLIC TRANSPORTATION SERVICE.
    16         (3)  A NONPROFIT ASSOCIATION OF PUBLIC TRANSPORTATION
    17     PROVIDERS OPERATING WITHIN THIS COMMONWEALTH.
    18     "MINORITY-OWNED BUSINESS."  A BUSINESS OWNED AND CONTROLLED
    19  BY A MAJORITY OF INDIVIDUALS WHO ARE AFRICAN AMERICANS, HISPANIC
    20  AMERICANS, NATIVE AMERICANS, ASIAN AMERICANS, ALASKANS OR
    21  PACIFIC ISLANDERS.
    22     "WOMEN-OWNED BUSINESS."  A BUSINESS OWNED AND CONTROLLED BY A
    23  MAJORITY OF INDIVIDUALS WHO ARE WOMEN.
    24     SECTION 2.  SUBJECT TO SECTION 13.1 9 OF THIS ACT, CHAPTER 13  <--
    25  OF TITLE 74 IS REPEALED:
    26                            [CHAPTER 13
    27                  PUBLIC TRANSPORTATION ASSISTANCE
    28 
    29  § 1301.  Definitions.
    30     The following words and phrases when used in this chapter
    20070H1590B2342                 - 11 -     

     1  shall have the meanings given to them in this section unless the
     2  context clearly indicates otherwise:
     3     "Asset maintenance costs."  All vehicle maintenance expenses,
     4  nonvehicle maintenance expenses and materials and supplies used
     5  in the operation of local transportation organizations and
     6  transportation companies.
     7     "Average fare."  Total passenger revenue divided by the total
     8  number of fare-paying passengers. With regard to the calculation
     9  of average fare or base fare for the reimbursement of losses
    10  resulting from free service to senior citizens authorized by
    11  this part, the Department of Transportation shall not
    12  differentiate between bus services provided within an operating
    13  unit or division of any transit agency for any reason. Services
    14  funded under either the State urban or rural operating
    15  assistance programs will be considered separate operating units.
    16     "Bus."  A motor vehicle designed for carrying 15 or more
    17  passengers, exclusive of the driver, and used for the
    18  transportation of persons, and a motor vehicle, other than a
    19  taxicab, designed and used for the transportation of persons for
    20  compensation.
    21     "Capital project."  Any system of public passenger or public
    22  passenger and rail transportation, including, but not limited
    23  to, any railway, street railway, subway, elevated and monorail
    24  passenger or passenger and rail rolling stock, including self-
    25  propelled and gallery cars, locomotives, passenger buses and
    26  wires, poles and equipment for the electrification of any of the
    27  foregoing, rails, tracks, roadbeds, guideways, elevated
    28  structures, buildings, stations, terminals, docks, shelters,
    29  airports and parking areas for use in connection with public
    30  passenger or public passenger and rail transportation systems,
    20070H1590B2342                 - 12 -     

     1  interconnecting lines and tunnels to provide passenger or
     2  passenger and rail service connections between transportation
     3  systems, transportation routes, corridors, and rights-of-way for
     4  any thereof (but not for public highways), signal and
     5  communication systems necessary or desirable for the
     6  construction, operation or improvement of the public passenger
     7  or passenger and rail transportation system involved, or any
     8  improvement of or overhaul of any vehicle, equipment or
     9  furnishings for any of the foregoing or any part, or fractional
    10  and undivided co-ownership or leasehold interest in any one or
    11  combination of any of the foregoing, that may be designated as a
    12  capital project by the secretary.
    13     "Class 1 transit entity."  A local transportation
    14  organization or transportation company operating 1,000 or more
    15  transit vehicles in the peak period.
    16     "Class 2 transit entity."  A local transportation
    17  organization or transportation company operating more than 300
    18  but less than 1,000 transit vehicles in the peak period.
    19     "Class 3 transit entity."  A local transportation
    20  organization or transportation company operating 300 or less
    21  fixed-route transit vehicles in the peak period serving an
    22  urbanized area.
    23     "Class 4 transit entity."  Any local transportation
    24  organization or transportation company which serves a
    25  nonurbanized area and, during the 1990-1991 fiscal year,
    26  received or was approved to receive funding under the act of
    27  February 11, 1976 (P.L.14, No.10), known as the Pennsylvania
    28  Rural and Intercity Common Carrier Surface Transportation
    29  Assistance Act.
    30     "Class 4 transit entity adjusted base grant."  The State
    20070H1590B2342                 - 13 -     

     1  subsidy for operating expenses a Class 4 transit entity received
     2  during the 1990-1991 fiscal year, including any funds
     3  appropriated under the act of February 11, 1976 (P.L.14, No.10),
     4  known as the Pennsylvania Rural and Intercity Common Carrier
     5  Surface Transportation Assistance Act; adjusted for factors
     6  which, in the judgment of the department, caused significant
     7  increases or decreases in the amount of State subsidy to a Class
     8  4 transit entity during the 1990-1991 fiscal year; and further
     9  adjusted, with respect to any Class 4 transit entity which
    10  received a State subsidy for less than the entire 1990-1991
    11  fiscal year, to reflect the annual subsidy that Class 4 transit
    12  entity would have received during that fiscal year if it had
    13  received a State subsidy for that entire fiscal year.
    14     "Community transportation programs."  Programs eligible to be
    15  funded pursuant to section 1312 (relating to community
    16  transportation programs).
    17     "Construction."  The term includes acquisition as well as
    18  construction.
    19     "Counties."  The term includes any county.
    20     "County transportation system."  Buses, vans or other transit
    21  vehicles purchased, maintained and operated by any county and
    22  used to provide free or reduced rate transportation within the
    23  county to persons 65 years of age or older.
    24     "Department."  The Department of Transportation of the
    25  Commonwealth.
    26     "Equipment" and "furnishings."  Any equipment and furnishings
    27  whatsoever as may be deemed desirable and required for a capital
    28  project and approved by the Department of Transportation for the
    29  use and occupancy of that capital project. The terms include the
    30  installation of such equipment and furnishings.
    20070H1590B2342                 - 14 -     

     1     "Federal agency."  The United States of America, the
     2  President of the United States of America and any department of,
     3  or corporation, agency or instrumentality heretofore or
     4  hereafter created, designated or established by, the United
     5  States of America.
     6     "Fixed-route public transportation services."  Regularly
     7  scheduled transportation that is available to the general public
     8  and is provided according to published schedules along
     9  designated published routes with specified stopping points for
    10  the taking on and discharging of passengers, including public
    11  bus and commuter rail systems. The term does not include
    12  exclusive ride taxi service, charter or sightseeing services,
    13  nonpublic transportation or school bus or limousine services.
    14     "Fund."  The Public Transportation Assistance Fund.
    15     "Improvement."  Any extension, enlargement, equipping,
    16  furnishing, as well as any improvement.
    17     "Local transportation organization."  Any political
    18  subdivision or any mass transportation, port, redevelopment or
    19  airport authority now or hereafter organized under the Laws of
    20  Pennsylvania or pursuant to an interstate compact or otherwise
    21  empowered to render, contract for the rendering or assist in the
    22  rendering of transportation service in a limited area in the
    23  Commonwealth of Pennsylvania, even though it may also render or
    24  assist in rendering transportation service in adjacent states,
    25  or any nonprofit association of public transportation providers
    26  within this Commonwealth.
    27     "Materials and supplies."  Those categories of expenses
    28  contained in object class code 504 as specified in the National
    29  Urban Mass Transportation Statistics, 1989 Section 15 Annual
    30  Report, Report No. UMTA-IT-06-0352-90-1.
    20070H1590B2342                 - 15 -     

     1     "Municipality."  Includes any city, borough, incorporated
     2  town or township.
     3     "Nonurbanized area."  Any area in this Commonwealth which
     4  does not fall within an area classified as "urbanized" by the
     5  United States Bureau of the Census of the United States
     6  Department of Commerce in the 1990 Census of Population or any
     7  area in this Commonwealth not classified as "urbanized" in any
     8  future decennial census of the United States.
     9     "Nonvehicle maintenance expenses."  The categories of costs
    10  associated with the inspection, maintenance and repair of assets
    11  other than vehicles, as specified in the National Urban Mass
    12  Transportation Statistics, 1989 Section 15 Annual Report, Report
    13  No. UMTA-IT-06-0352-90-1.
    14     "Pennsylvania Mass Transit Statistical Report."  The summary
    15  of selected financial and operating data concerning local
    16  transportation organizations and transportation companies for
    17  services in urbanized areas published annually by the Department
    18  of Transportation since the 1973-1974 fiscal year. The
    19  department shall publish the Pennsylvania Mass Transit
    20  Statistical Report on an annual basis, which report shall
    21  contain statistics with respect to the prior fiscal year,
    22  including those statistics needed for the department to make the
    23  calculations required pursuant to sections 1303 (relating to
    24  annual appropriation and computation of subsidy) and 1310
    25  (relating to distribution of funding), and such other material
    26  as the department shall determine.
    27     "Pennsylvania Rural and Small Urban Public Transportation
    28  Program Statistical Report."  The summary of selected financial
    29  and operating data concerning rural and small urban local
    30  transportation organizations and transportation companies for
    20070H1590B2342                 - 16 -     

     1  services in nonurbanized areas published by the Department of
     2  Transportation. The department shall publish the Pennsylvania
     3  Rural and Small Urban Public Transportation Program Statistical
     4  Report on an annual basis, which report shall contain statistics
     5  with respect to the prior fiscal year, including those
     6  statistics needed for the department to make the calculations
     7  required pursuant to sections 1303 (relating to annual
     8  appropriation and computation of subsidy) and 1310 (relating to
     9  distribution of funding), and such other material as the
    10  department shall determine.
    11     "Person."  The term includes natural persons, firms,
    12  associations, corporations, business trusts, partnerships and
    13  public bodies, including local transportation organizations.
    14     "Planning, development, research, rural expansion and
    15  department-initiated programs."  Any program eligible to be
    16  funded pursuant to section 1313 (relating to additional
    17  programs).
    18     "Project grant."  The Commonwealth's share of the cost of
    19  carrying out the particular project, which cost may include
    20  costs incurred prior to the effective date of this part and
    21  which cost shall include an appropriate allowance for the
    22  administrative expenses involved in carrying out the project.
    23     "Property."  All property, real, personal or mixed, tangible
    24  or intangible, or any interest therein, including fractional and
    25  undivided co-ownership interests.
    26     "Public highway."  Every way or place, of whatever nature,
    27  open to the use of the public as a matter of right for purposes
    28  of vehicular travel. Solely for the purpose of administering
    29  this part, the term shall not be deemed to include a bridge
    30  located wholly within this Commonwealth which is open to the use
    20070H1590B2342                 - 17 -     

     1  of the public for the purpose of vehicular traffic but which on
     2  March 15, 1964, was owned and maintained by a mass
     3  transportation or port authority and which comprises a part of
     4  the transportation system of the mass transportation or port
     5  authority.
     6     "Revenue hours."  The total amount of time, calculated in
     7  hours, during which vehicles of a Class 4 transit entity are in
     8  service and available for public use as reported with respect to
     9  the most recent fiscal year in the most recently issued
    10  Pennsylvania Rural and Small Urban Public Transportation
    11  Statistical Report.
    12     "Revenue miles."  The total number of in-service miles
    13  traveled by vehicles of a Class 4 transit entity as reported
    14  with respect to the most recent fiscal year in the most recently
    15  issued Pennsylvania Rural and Small Urban Public Transportation
    16  Statistical Report.
    17     "Secretary."  The Secretary of Transportation of the
    18  Commonwealth.
    19     "Shared-ride public transportation services."  Demand-
    20  responsive transportation that is available to the general
    21  public, operates on a nonfixed route basis and charges a fare to
    22  all riders. For transportation to be included in this definition
    23  the first fare-paying passengers to enter the public
    24  transportation vehicle must not refuse to share the vehicle with
    25  other passengers during a given trip. Services excluded under
    26  this definition are: exclusive ride taxi service; charter and
    27  sightseeing services; nonpublic transportation; school bus or
    28  limousine services.
    29     "Transit vehicle."  A self-propelled or electrically
    30  propelled vehicle designed for carrying 15 or more passengers,
    20070H1590B2342                 - 18 -     

     1  exclusive of the driver, other than a taxicab, designed and used
     2  for the transportation of persons for compensation, including,
     3  but not limited to, subway cars, trolleys, trackless trolleys
     4  and railroad passenger cars.
     5     "Transportation company."  Any person, firm or corporation
     6  rendering public passenger or public passenger and rail
     7  transportation service, with or without the rendering of other
     8  service, in this Commonwealth pursuant to common carrier
     9  authorization from the Pennsylvania Public Utility Commission or
    10  the Interstate Commerce Commission.
    11     "Urban common carrier mass transportation."  Transportation
    12  within an area that includes a municipality or other built-up
    13  place which is appropriate, in the judgment of the Department of
    14  Transportation, for a common carrier transportation system to
    15  serve commuters or others in the locality, taking into
    16  consideration the local patterns and trends of urban growth, by
    17  bus or rail or other conveyance, either publicly or privately
    18  owned, serving the general public. The term does not include
    19  school buses or charter or sightseeing service.
    20     "Urban Mass Transportation Act of 1964."  Public Law 88-365,
    21  49 U.S.C. § 1601 et seq.
    22     "Urbanized area."  A portion of this Commonwealth classified
    23  as "urbanized" by the United States Bureau of the Census of the
    24  United States Department of Commerce in the 1990 Census of
    25  Population or any area in this Commonwealth classified as
    26  "urbanized" in any future decennial census of the United States.
    27     "Vehicle hours."  The total amount of time, calculated in
    28  hours, during which vehicles of a local transportation
    29  organization or transportation company are in service and
    30  available for public use, listed with respect to the most recent
    20070H1590B2342                 - 19 -     

     1  fiscal year reported in the most recently issued Pennsylvania
     2  Mass Transit Statistical Report.
     3     "Vehicle maintenance expenses."  The categories of costs
     4  associated with the inspection, maintenance and repair of
     5  vehicles as specified in the National Urban Mass Transportation
     6  Statistics, 1989 Section 15 Annual Report, Report No. UMTA-IT-
     7  06-0352-90-1.
     8     "Vehicle miles."  The total distance, calculated in miles,
     9  which is funded in whole or in part by this part, traveled by
    10  vehicles of a local transportation organization or
    11  transportation company listed with respect to the most recent
    12  fiscal year reported in the most recently issued Pennsylvania
    13  Mass Transit Statistical Report.
    14  § 1302.  Program authorizations.
    15     The department is hereby authorized, within the limitations
    16  hereinafter provided, and is required where the provisions of
    17  section 1303 (relating to annual appropriation and computation
    18  of subsidy) apply:
    19         (1)  To undertake and to provide financial support for
    20     research, by contract or otherwise, concerning urban common
    21     carrier mass transportation.
    22         (2)  To make grants to municipalities, counties, or their
    23     instrumentalities, and to agencies and instrumentalities of
    24     the Commonwealth to supplement Federal or local or Federal
    25     and local funds for use:
    26             (i)  For the purpose of studies, analysis, planning
    27         and development of programs for urban common carrier mass
    28         transportation service and facilities, and for the
    29         purpose of activities related to the planning,
    30         engineering and designing of specific projects which are
    20070H1590B2342                 - 20 -     

     1         a part of a comprehensive program, including, but not
     2         limited to, activities such as studies related to
     3         management, operations, capital requirements and economic
     4         feasibility, to the preparation of engineering and
     5         architectural surveys, plans and specifications and to
     6         other similar or related activities preliminary to and in
     7         preparation for the construction, acquisition or improved
     8         operation of urban common carrier mass transportation
     9         systems, facilities and equipment. State funding under
    10         this subparagraph shall not exceed five-sixths of the
    11         non-Federal share of the project costs.
    12             (ii)  To provide for research, development and
    13         demonstration projects in all phases of urban common
    14         carrier mass transportation, including the development,
    15         testing and demonstration of new facilities, equipment,
    16         techniques and methods, to assist in the solution of
    17         urban transportation problems, in the improvement of mass
    18         transportation service and the contribution of such
    19         service toward meeting total urban transportation needs
    20         at minimum cost. State funding under this subparagraph
    21         shall not exceed five-sixths of the non-Federal share of
    22         the project costs.
    23             (iii)  To assist in providing grants to continue
    24         necessary service to the public, to permit needed
    25         improvements in service which are not self-supporting, to
    26         permit service which may be socially desirable but
    27         economically unjustified, and otherwise for any purpose
    28         in furtherance of urban common carrier mass
    29         transportation. The methodology for calculating the
    30         amount of the grant under this subparagraph shall be
    20070H1590B2342                 - 21 -     

     1         determined in accordance with section 1303. Each grant to
     2         a Class 1 transit entity, to a Class 2 transit entity or
     3         to a Class 3 transit entity made pursuant to this
     4         paragraph shall be matched by local or private funding in
     5         an amount not less than one-third of the total State
     6         grant made pursuant to section 1303(b). Any grants to
     7         Class 3 transit entities may, however, be matched by an
     8         amount not less than the amount of local or private
     9         funding which is specified in the State contract for the
    10         1990-1991 fiscal year if the department shall have
    11         received a certification from such Class 3 transit entity
    12         that such lower level of local or private funding is
    13         adequate to prevent significant service reductions or
    14         passenger fare increases.
    15         (3)  To make grants to any transportation company or
    16     companies for use in providing necessary service to the
    17     public, to permit needed improvements in services which are
    18     not self-supporting, to permit services which may be socially
    19     desirable but economically unjustified, and otherwise for any
    20     purpose in furtherance of urban common carrier mass
    21     transportation. In view of the particular sensitivity of
    22     special instrumentalities and agencies of the Commonwealth
    23     created to serve or coordinate the local transportation needs
    24     of substantial metropolitan areas, no grant moneys may be
    25     used exclusively or principally in the local service area of
    26     any such agency or instrumentality in which a city or county
    27     of the first or second class has membership, except in
    28     accordance with a system of priorities agreed upon by the
    29     department and such agency or instrumentality. In the case of
    30     a grant where the moneys granted will be used for an activity
    20070H1590B2342                 - 22 -     

     1     to be conducted exclusively or principally within the local
     2     service areas of such agency or instrumentality, no grant
     3     moneys may be used except in accordance with agreements by
     4     the department and such agency or instrumentality with
     5     respect to such use. In the case of a grant not falling
     6     within the scope of the preceding sentence but where moneys
     7     granted will be used both within and without the local
     8     service area of such agency or instrumentality, the grant
     9     shall require that the routes, schedules and fares applicable
    10     only within such service areas shall be those mutually agreed
    11     upon by the department and such agency or instrumentality. No
    12     agreement referred to in this paragraph shall impair,
    13     suspend, reduce, enlarge or extend or affect in any manner
    14     the powers of the Pennsylvania Public Utility Commission or
    15     the Interstate Commerce Commission otherwise applicable by
    16     law. Each grant to a Class 1 transit entity, to a Class 2
    17     transit entity or to a Class 3 transit entity made pursuant
    18     to this paragraph shall be matched by local or private
    19     funding in an amount not less than one-third of the total
    20     State grant made pursuant to section 1303(b). Any grants to
    21     Class 3 transit entities may, however, be matched by an
    22     amount not less than the amount of local or private funding
    23     which is specified in the State contract for the 1990-1991
    24     fiscal year if the department shall have received a
    25     certification from such Class 3 transit entity that such
    26     lower level of local or private funding is adequate to
    27     prevent significant service reductions and/or passenger fare
    28     increases.
    29         (4)  In connection with privately or locally assisted
    30     capital projects or capital projects financed with private or
    20070H1590B2342                 - 23 -     

     1     local and Federal funds, to make grants for approved capital
     2     projects to a local transportation organization or a
     3     transportation company, including the acquisition,
     4     construction, reconstruction and improvement of facilities
     5     and equipment, buses and other rolling stock, and other real
     6     or personal property, including land (but not public
     7     highways), needed for an efficient and coordinated mass
     8     transportation system for use, by operation, lease or
     9     otherwise, in urban common carrier mass transportation
    10     service and in coordinating such service with highway and
    11     other transportation. No capital project grant shall be made
    12     for the purpose of financing, directly or indirectly, the
    13     acquisition of any interest in, or the purchase of any
    14     facilities or other property of, a private urban common
    15     carrier mass transportation company. Each capital project
    16     shall be based on a program or plan approved by the
    17     department. No capital project grant shall exceed five-sixths
    18     of the non-Federal share, subject, however, to the following
    19     specific exceptions:
    20             (i)  If two or more capital projects are combined for
    21         financing purposes, the amount of department funds used
    22         for any one of such projects may exceed five-sixths of
    23         the non-Federal share, provided that the total amount of
    24         department funds provided for all the projects so
    25         combined does not exceed five-sixths of the total non-
    26         Federal share of all of the projects so combined.
    27             (ii)  If a capital project is eligible to receive
    28         Federal financial assistance under the Urban Mass
    29         Transportation Act of 1964 and if the project application
    30         for such Federal financial assistance has been rejected
    20070H1590B2342                 - 24 -     

     1         or delayed because of a lack of Federal funds or if the
     2         normal amount of Federal grant cannot be provided because
     3         of a lack of Federal funds and if the department has
     4         determined that the capital project is essential and
     5         should proceed without delay, department funds for such
     6         capital project may be increased temporarily to finance
     7         the entire net project cost, with the requirement that,
     8         upon the availability of additional Federal funds and the
     9         making to the capital project of a new or an additional
    10         Federal grant, the amount of department funds in excess
    11         of five-sixths of the non-Federal share be refunded to
    12         the department or be applied as the department may direct
    13         to help meet the department's share of the cost of
    14         another project in which the department is a participant.
    15             (iii)  If a project is ineligible to receive Federal
    16         financial assistance under the Urban Mass Transportation
    17         Act of 1964 and if the department has determined that the
    18         project is essential and should proceed without delay,
    19         the amount of department funds for such project shall be
    20         limited to an amount not to exceed one-half of the net
    21         project cost.
    22         (5)  To make grants from the State Lottery Fund in
    23     accordance with Chapter 7 of the act of August 14, 1991
    24     (P.L.342, No.36), known as the Lottery Fund Preservation Act.
    25         (6)  To participate in a pooled bus acquisition program
    26     with transportation companies or local transportation
    27     organizations and the Federal Government for the purpose of
    28     making buses available to transportation companies or local
    29     transportation organizations for use in urban common carrier
    30     mass transportation service, in accordance with the following
    20070H1590B2342                 - 25 -     

     1     procedures:
     2             (i)  The department may apply to the Urban Mass
     3         Transportation Administration of the United States
     4         Department of Transportation for the Federal share of any
     5         pooled-bus acquisition project.
     6             (ii)  The department may, with the assistance of the
     7         Department of General Services or a special group
     8         comprised of representatives of the transportation
     9         companies or local transportation organizations within
    10         the Commonwealth, write specifications for and order
    11         buses on behalf of any number of transportation companies
    12         or local transportation organizations desiring bus
    13         acquisition under this program.
    14             (iii)  Before any order for buses is placed by the
    15         department with a manufacturer, the department shall
    16         secure written assurance from the Federal Government of
    17         the availability of Federal financial assistance for such
    18         bus acquisitions. The department shall also secure
    19         written obligations by the transportation companies or
    20         local transportation organizations participating in such
    21         bus acquisitions that they will accept delivery of such
    22         buses at the appropriate time and will supply local
    23         funding in accordance with subparagraph (iv).
    24             (iv)  Funding for this program shall be: four-fifths
    25         Federal, one-sixth State and one-thirtieth from local
    26         sources; however, the local share of program costs may be
    27         advanced to the manufacturer by the Commonwealth at the
    28         time of purchase. Repayments to the Commonwealth of such
    29         advancements shall be considered as augmentations to the
    30         fund from which the funds were advanced. No part of the
    20070H1590B2342                 - 26 -     

     1         Federal share shall be advanced by the Commonwealth in
     2         anticipation of reimbursement.
     3             (v)  The Commonwealth may take title to and delivery
     4         of vehicles acquired pursuant to this program for
     5         eventual transfer to transportation companies or local
     6         transportation organizations.
     7             (vi)  All bus acquisitions under this program shall
     8         be made in accordance with a system of competitive
     9         bidding.
    10             (vii)  At its discretion, the department may organize
    11         and fund, with Commonwealth funds, postacquisition
    12         studies reasonably related to any pooled-bus acquisition
    13         made pursuant to this section, including, but not limited
    14         to, a vehicle inspection study at an appropriate interval
    15         or intervals following acquisition in order to monitor
    16         the condition of any vehicle purchased pursuant to this
    17         section.
    18  § 1303.  Annual appropriation and computation of subsidy.
    19     (a)  General rule.--Beginning with the 1991-1992 fiscal year,
    20  the Commonwealth shall annually determine the level of
    21  appropriation for public transportation assistance, using the
    22  standards contained in this section, to sufficiently fund and to
    23  make fully operative section 1302(2)(iii) and (3) (relating to
    24  program authorizations).
    25     (b)  Distribution as grants.--The General Assembly shall
    26  annually make an appropriation to the department for
    27  distribution as grants to local transportation organizations and
    28  transportation companies. The total amount of moneys
    29  appropriated shall be distributed by the department as grants to
    30  local transportation organizations and transportation companies
    20070H1590B2342                 - 27 -     

     1  in accordance with the provisions of this section.
     2     (c)  Distribution formula.--The department shall distribute
     3  the total amount appropriated under subsection (b) in the
     4  following manner:
     5         (1)  The department shall calculate the Class 4 transit
     6     entity share for the fiscal year.
     7         (2)  The department shall then calculate the amount of
     8     grant due to each Class 4 transit entity as follows:
     9             (i)  From the Class 4 transit entity share, each
    10         Class 4 transit entity shall first receive an amount
    11         equal to 100% of its Class 4 transit entity adjusted base
    12         grant.
    13             (ii)  With respect to any portion of the Class 4
    14         transit entity share remaining after each Class 4 transit
    15         entity receives an amount equal to 100% of its Class 4
    16         transit entity adjusted base grant:
    17                 (A)  Fifty percent of such excess shall be
    18             distributed to Class 4 transit entities based upon
    19             the percentage of the total amount of all Class 4
    20             transit entity adjusted base grants given to Class 4
    21             transit entities which a particular Class 4 transit
    22             entity received.
    23                 (B)  Twenty-five percent of such excess shall be
    24             distributed to Class 4 transit entities based upon
    25             each transit entity's Class 4 revenue mile
    26             percentage. The actual amount received by each Class
    27             4 transit entity under this clause shall be
    28             determined by multiplying a particular Class 4
    29             transit entity's Class 4 revenue mile percentage
    30             times 25% of such excess of the Class 4 transit
    20070H1590B2342                 - 28 -     

     1             entity share.
     2                 (C)  Twenty-five percent of such excess shall be
     3             distributed to Class 4 transit entities based upon
     4             each transit entity's Class 4 revenue hour
     5             percentage. The actual amount received by each Class
     6             4 transit entity under this clause shall be
     7             determined by multiplying a particular Class 4
     8             transit entity's Class 4 revenue hour percentage
     9             times 25% of such excess of the Class 4 transit
    10             entity share.
    11         (3)  All Class 4 transit entities may utilize all of the
    12     funds received pursuant to this section for any purpose in
    13     furtherance of public transportation. Each grant made to a
    14     Class 4 transit entity pursuant to this section shall,
    15     however, be matched by local or private funding in an amount
    16     not less than one-third of the total State grant made
    17     pursuant to subsection (c). Additionally, any grants to Class
    18     4 transit entities may be matched by an amount not less than
    19     the amount of local or private funding which is specified in
    20     the State contract for the 1990-1991 fiscal year if the
    21     department shall have received a certification from such
    22     Class 4 transit entity that such lower level of local or
    23     private funding is adequate to prevent significant service
    24     reductions or passenger fare increases.
    25         (4)  The department shall calculate the Class 1 transit
    26     entity share, the Class 2 transit entity share and the Class
    27     3 transit entity share for the fiscal year.
    28         (5)  The department shall then calculate the amount of
    29     grant due to each local transportation organization and
    30     transportation company as follows:
    20070H1590B2342                 - 29 -     

     1             (i)  Each Class 1 transit entity shall receive a
     2         prorata share of the Class 1 transit entity share. If
     3         there is only one Class 1 transit entity, it shall
     4         receive the entire Class 1 transit entity share.
     5             (ii)  Each Class 2 transit entity shall receive a
     6         prorata share of the Class 2 transit entity share. If
     7         there is only one Class 2 transit entity, it shall
     8         receive the entire Class 2 transit entity share.
     9             (iii)  Each Class 3 transit entity shall receive a
    10         portion of the Class 3 transit entity share calculated as
    11         follows:
    12                 (A)  From the Class 3 transit entity share, each
    13             Class 3 transit entity shall first receive an amount
    14             equal to 100% of its Class 3 transit entity adjusted
    15             base grant.
    16                 (B)  With respect to any portion of the Class 3
    17             transit entity share remaining after each Class 3
    18             transit entity receives an amount equal to 100% of
    19             its Class 3 transit entity adjusted base grant:
    20                     (I)  Fifty percent of such excess shall be
    21                 distributed to Class 3 transit entities based
    22                 upon the percentage of all Class 3 transit entity
    23                 adjusted base grants given to Class 3 transit
    24                 entities which a particular Class 3 transit
    25                 entity received.
    26                     (II)  Twenty-five percent of such excess
    27                 shall be distributed to Class 3 transit entities
    28                 based upon each transit entity's Class 3 vehicle
    29                 mile percentage. The actual amount received by
    30                 each Class 3 transit entity under this subclause
    20070H1590B2342                 - 30 -     

     1                 shall be determined by multiplying a particular
     2                 Class 3 transit entity's Class 3 vehicle mile
     3                 percentage times 25% of such excess of the Class
     4                 3 transit entity share.
     5                     (III)  Twenty-five percent of such excess
     6                 shall be distributed to Class 3 transit entities
     7                 based upon each Class 3 transit entity's Class 3
     8                 operating revenue percentage. The actual amount
     9                 received by each Class 3 transit entity under
    10                 this subclause shall be determined by multiplying
    11                 a particular Class 3 transit entity's Class 3
    12                 operating revenue percentage times 25% of such
    13                 excess of the Class 3 transit entity share.
    14         (6)  On or about each July 1, October 1, January 1 and
    15     April 1 of each year commencing July 1, 1987, the department
    16     shall disburse 25% of the total annual amount due to each
    17     local transportation organization or transportation company
    18     calculated in accordance with this section.
    19     (d)  New organizations.--Should a new local transportation
    20  organization or transportation company be established and meet
    21  the criteria of a Class 1 transit entity, Class 2 transit
    22  entity, Class 3 transit entity or Class 4 transit entity as such
    23  criteria are set forth in section 1301 (relating to
    24  definitions), the department shall make an appropriate
    25  determination as to the level of grant to which such local
    26  transportation organization or transportation company shall be
    27  entitled. This determination shall include, but shall not be
    28  limited to, a determination as to an appropriate adjusted base
    29  grant for that local transportation organization or
    30  transportation company and a determination of appropriate
    20070H1590B2342                 - 31 -     

     1  adjustments to class percentages or transit entity shares.
     2     (e)  Change to different entity class.--If, during any fiscal
     3  year, either the number of vehicles operated by a local
     4  transportation organization or transportation company or the
     5  area served by such a local transportation organization or
     6  transportation company changes so that the local transportation
     7  organization or transportation company meets the criteria for a
     8  different transit entity class, as such criteria are set forth
     9  in section 1301, on or before July 15 of the fiscal year which
    10  follows such a change and in each fiscal year thereafter, the
    11  department shall reflect any change in the transit entity class
    12  of such a local transportation organization or transportation
    13  company in its calculation of the transit entity shares for each
    14  transit entity class for that and subsequent fiscal years. In
    15  its calculation of the transit entity shares for each transit
    16  entity class required by this section, for the fiscal year
    17  following the change in a local transportation organization or
    18  transportation company's transit entity class and thereafter,
    19  the department shall include the amount of the transit entity
    20  share allocated to such a local transportation organization or
    21  transportation company for the fiscal year prior to the change
    22  in the transit entity class, in the transit entity share for the
    23  new transit entity class of such a local transportation
    24  organization or transportation company, and shall delete an
    25  equal amount from the transit entity share for the transit
    26  entity class for which such a local transportation organization
    27  or transportation company no longer meets the criteria in the
    28  new fiscal year or thereafter.
    29     (f)  Rates, fares and charges.--
    30         (1)  Each local transportation organization or
    20070H1590B2342                 - 32 -     

     1     transportation company receiving moneys pursuant to this
     2     section shall annually fix such rates, fares and charges in
     3     such manner that they shall be at all times sufficient in the
     4     aggregate, and in conjunction with any moneys received from
     5     Federal or other sources, and any other income available to
     6     such organization or company, to provide funds for the
     7     payment of all operating costs and expenses which shall be
     8     incurred by such organization or company.
     9         (2)  In order to be eligible for the moneys described in
    10     paragraph (1), each local transportation organization or
    11     transportation company shall adopt an annual operating budget
    12     for each fiscal year no later than the last day of the
    13     preceding fiscal year. A copy of this operating budget shall
    14     be submitted to the department within ten days after its
    15     approval, along with a certification by the local
    16     transportation organization or transportation company that
    17     adequate revenues (including subsidies) are provided to
    18     support operating costs and expenses.
    19     (g)  Standards and measures.--
    20         (1)  Within one year after the effective date of this
    21     part and every year thereafter, each local transportation
    22     organization or transportation company receiving moneys
    23     pursuant to this section shall adopt a series of service
    24     standards and performance evaluation measures. Such standards
    25     and measures shall be in addition to the performance audits
    26     required by section 1315 (relating to public transportation
    27     grants management accountability) and shall consist of
    28     objectives and specific numeric performance levels to be
    29     achieved in meeting these standards and objectives. Those
    30     standards and measures adopted shall include the following,
    20070H1590B2342                 - 33 -     

     1     in addition to others deemed appropriate by the local
     2     transportation organization or transportation company:
     3             (i)  An automatic mechanism to review the utilization
     4         of routes.
     5             (ii)  Staffing ratios (ratio of administrative
     6         employees to operating employees; number of vehicles per
     7         mechanic).
     8             (iii)  Productivity measures (vehicle miles per
     9         employee; passenger and employee accidents per 100,000
    10         vehicle miles; on-time performance; miles between road
    11         calls).
    12             (iv)  Fiscal indicators (operating cost per
    13         passenger; subsidy per passenger and operating ratio).
    14             (iv.1)  Reasonable minimum prequalification standards
    15         for prospective transit service subcontractors.
    16             (v)  Any other matter desired by the governing body
    17         of such local transportation organization or
    18         transportation company.
    19         (2)  The service standards and performance evaluation
    20     measures shall be established by formal action of the
    21     governing body of such local transportation organization or
    22     transportation company following an opportunity for comment
    23     by the public and the department. Upon submission, the
    24     department will review and may make recommendations to the
    25     local transportation organization or transportation company
    26     concerning the service standards and performance evaluation
    27     measures.
    28         (3)  In the discretion of such governing body, the
    29     service standards and performance evaluation measures may be
    30     systemwide or based on a sampling.
    20070H1590B2342                 - 34 -     

     1         (4)  The service standards and performance evaluation
     2     measures shall only constitute goals for such local
     3     transportation organization or transportation company in
     4     providing service in the year following their adoption. At
     5     the end of such year, fiscal or calendar, as the case may be,
     6     a report shall be transmitted to the department for its
     7     consideration indicating the projected performance levels and
     8     the performance levels actually achieved. Upon submission,
     9     the department will review the report and may make
    10     recommendations to such local transportation organization or
    11     transportation company concerning the performance levels
    12     actually achieved. Such report shall be released to the
    13     public at the time of issuance.
    14         (5)  The department may suspend the eligibility for
    15     future discretionary transit grant funds of any transit
    16     entity which fails to comply with the provisions of this
    17     section. The department shall restore the discretionary
    18     funding eligibility of a suspended transit entity at such
    19     time as the requirements of this section are met in an
    20     amended application received by the department.
    21     (h)  Reduction of certain grants.--With respect to grants to
    22  Class 1 transit entities and Class 2 transit entities in any
    23  fiscal year, the department shall reduce the grant amount due to
    24  such local transportation organization or transportation company
    25  by an amount equal to 1% of such grant moneys otherwise due to
    26  such local transportation organization or transportation company
    27  for each percentage point such local transportation
    28  organization's or transportation company's operating ratio is
    29  less than 50% in the case of a Class 1 transit entity or less
    30  than 46% in the case of a Class 2 transit entity.
    20070H1590B2342                 - 35 -     

     1     (i)  Audits.--The department is authorized to perform
     2  independent financial audits of the financial statements of each
     3  local transportation organization or transportation company
     4  receiving moneys pursuant to this section. Such audits shall be
     5  conducted in accordance with generally accepted auditing
     6  standards. Any financial statements subject to such audit or
     7  reports resulting from such audit shall be prepared and
     8  presented in accordance with generally accepted accounting
     9  principles, consistently applied with previous statements
    10  rendered for or on behalf of such organization or company. The
    11  department may coordinate such audits in conjunction with audits
    12  undertaken by the Auditor General.
    13     (j)  Definitions.--As used in this section, the following
    14  words and phrases shall have the meanings given to them in this
    15  subsection:
    16     "Class 1 percentage."  Seventy percent.
    17     "Class 2 percentage."  Twenty-five and three-tenths percent.
    18     "Class 3 percentage."  Four and seven-tenths percent.
    19     "Class 1 to 3 allocation."  The total amount appropriated
    20  under subsection (b) less the Class 4 transit entity share.
    21     "Class 1 transit entity share."  The product of the Class 1
    22  percentage times the Class 1 to 3 allocation in a particular
    23  fiscal year.
    24     "Class 2 transit entity share."  The product of the Class 2
    25  percentage times the Class 1 to 3 allocation in a particular
    26  fiscal year.
    27     "Class 3 transit entity adjusted base grant."  The State
    28  subsidy which a Class 3 transit entity received during the 1990-
    29  1991 fiscal year, including Federal funds transferred from other
    30  local transportation organizations and transportation companies
    20070H1590B2342                 - 36 -     

     1  from the Federal fiscal year 1989-1990 pursuant to the
     2  Governor's apportionment allocation contained in the Urban Mass
     3  Transportation Act of 1964.
     4     "Class 3 transit entity share."  The product of the Class 3
     5  percentage times the Class 1 to 3 allocation in a particular
     6  fiscal year.
     7     "Class 3 vehicle mile percentage."  The percentage determined
     8  by dividing the vehicle miles of a Class 3 transit entity with
     9  respect to the most recent fiscal year as reported in the most
    10  recently issued Pennsylvania Mass Transit Statistical Report by
    11  the total number of vehicle miles of all Class 3 transit
    12  entities with respect to the most recent fiscal year as reported
    13  in the most recently issued Pennsylvania Mass Transit
    14  Statistical Report.
    15     "Class 4 revenue hour percentage."  The percentage determined
    16  by dividing the revenue hours of a Class 4 transit entity as
    17  reported with respect to the most recent fiscal year in the most
    18  recently issued Pennsylvania Rural and Small Urban Public
    19  Transportation Statistical Report by the total number of revenue
    20  hours of all Class 4 transit entities as reported with respect
    21  to the most recent fiscal year reported in the most recently
    22  issued Pennsylvania Rural and Small Urban Public Transportation
    23  Statistical Report.
    24     "Class 4 revenue mile percentage."  The percentage determined
    25  by dividing the revenue miles of a Class 4 transit entity as
    26  reported with respect to the most recent fiscal year in the most
    27  recently issued Pennsylvania Rural and Small Urban Public
    28  Transportation Statistical Report by the total revenue miles of
    29  all Class 4 transit entities as reported with respect to the
    30  most recent fiscal year reported in the most recently issued
    20070H1590B2342                 - 37 -     

     1  Pennsylvania Rural and Small Urban Public Transportation
     2  Statistical Report.
     3     "Class 4 transit entity share."  Two million three hundred
     4  thirty-five thousand dollars for the 1991-1992 fiscal year and,
     5  during the 1992-1993 fiscal year and each fiscal year
     6  thereafter, shall mean the Class 4 transit entity share for the
     7  prior fiscal year plus (or minus) the product of the Class 4
     8  transit entity share for the prior fiscal year times the
     9  percentage increase or decrease in the total operating
    10  assistance made available to local transportation organizations
    11  and transportation companies for that fiscal year as compared
    12  with the most recently completed fiscal year.
    13     "Operating ratio."  The proportion of total operating revenue
    14  (which shall include all passenger, charter and advertising
    15  revenue, fare reimbursement received from the State Lottery Fund
    16  and all other receipts associated with the delivery of transit
    17  services, but shall exclude Federal grants provided to cover
    18  operating losses and State grants made pursuant to subsection
    19  (b)) divided by total operating expenses associated with day-to-
    20  day operation of the system (but excluding depreciation of
    21  capital assets).
    22     "Operating revenue."  The total revenue earned by a local
    23  transportation organization or transportation company through
    24  its transit operations, including, but not limited to, passenger
    25  revenue, senior citizen grant, charter revenue, school contract
    26  revenue, advertising and other revenue listed with respect to
    27  the most recent fiscal year reported in the most recently issued
    28  Pennsylvania Mass Transit Statistical Report.
    29     "Operating revenue percentage."  The percentage determined by
    30  dividing the operating revenues of a local transportation
    20070H1590B2342                 - 38 -     

     1  organization or transportation company as reported in the most
     2  recently issued Pennsylvania Mass Transit Statistical Report by
     3  the total operating revenue of all local transportation
     4  organizations or transportation companies as reported in the
     5  most recently issued Pennsylvania Mass Transit Statistical
     6  Report.
     7  § 1304.  Grant proposals.
     8     (a)  General rule.--Grants may be made hereunder with
     9  reference to any appropriate project irrespective of when it was
    10  first commenced or considered and regardless of whether costs
    11  with respect thereto shall have been incurred prior to the time
    12  the grant is applied for or made.
    13     (b)  Applications.--The governing bodies of municipalities,
    14  counties or their instrumentalities, and agencies and
    15  instrumentalities of the Commonwealth may, by formal resolution,
    16  apply and transportation companies by application may apply to
    17  the department for State grant funds provided by this chapter.
    18  If the action is taken by a governing body, a certified copy of
    19  the resolution and, in the case of transportation companies, an
    20  application shall be forwarded to the department with a proposal
    21  of the governing body or company, which shall set forth the use
    22  to be made of State grant funds and the amount of funds required
    23  or, in the case of grants under section 1303 (relating to annual
    24  appropriation and computation of subsidy), which shall set forth
    25  a request that the grant provided for under section 1303 be
    26  made.
    27     (c)  Preference for coordinated systems.--The department
    28  shall give preference to any proposal which will assist in
    29  carrying out a plan, meeting criteria established by the
    30  department, for a unified or officially coordinated urban
    20070H1590B2342                 - 39 -     

     1  transportation system as a part of the comprehensively planned
     2  development of the urban area, which is necessary for the sound,
     3  economic and desirable development of such area and which shall
     4  encourage to the maximum extent feasible the participation of
     5  private enterprise. This subsection shall not apply to grants
     6  made pursuant to section 1303.
     7     (d)  Use of grants.--The use of the State grant funds shall
     8  be for the purposes set forth in section 1302 (relating to
     9  program authorizations) and, without limiting the generality of
    10  the foregoing, may be used for local contributions required by
    11  the Urban Mass Transportation Act of 1964 or other Federal law
    12  concerning common carrier mass transportation.
    13     (e)  Grant agreement.--
    14         (1)  The department shall review the proposal and, if
    15     satisfied that the proposal is in accordance with the
    16     purposes of this chapter, shall enter into a grant agreement
    17     subject to the condition that the grant be used in accordance
    18     with the terms of the proposal. With respect to grants made
    19     pursuant to section 1303, the department shall make such
    20     grants subject to the condition that the grants be used for
    21     the purposes set forth in section 1302 and, where applicable,
    22     only after the certification required in section 1302(2)(iii)
    23     and (3) shall have been made.
    24         (2)  The time of payment of the grant and any conditions
    25     concerning such payment shall be set forth in the grant
    26     agreement.
    27  § 1305.  Rules and regulations.
    28     In order to effectuate and enforce the provisions of this
    29  chapter, the department is authorized to promulgate necessary
    30  rules and regulations and prescribe conditions and procedures in
    20070H1590B2342                 - 40 -     

     1  order to assure compliance in carrying out the purposes for
     2  which grants may be made hereunder.
     3  § 1306.  Cooperation with other governments and private
     4             interests.
     5     (a)  General rule.--The department is directed to administer
     6  this program with such flexibility as to permit full cooperation
     7  between Federal, State and local governments, agencies and
     8  instrumentalities, as well as private interests, so as to result
     9  in as effective and economical a program as possible.
    10     (b)  Agreements.--The department is hereby authorized to
    11  enter into agreements providing for mutual cooperation between
    12  or among it and any Federal agency, local transportation
    13  organization or transportation company concerning any or all
    14  projects, including joint applications for Federal grants.
    15  § 1307.  General authority of department.
    16     It is the purpose and intent of this chapter to authorize the
    17  department to do any and all other things necessary or desirable
    18  to secure the financial aid or cooperation of any Federal agency
    19  in any of the department's projects and to do and perform all
    20  things which may be required by any statute of the United States
    21  of America or by the lawful requirements of any Federal agency
    22  authorized to administer any program of Federal aid to
    23  transportation. The department is expressly permitted to enter
    24  into protective agreements with labor to the extent required
    25  under 49 U.S.C. § 5333 (relating to labor standards) in order to
    26  obtain Federal grant moneys for transportation assistance. Such
    27  protective agreements shall be narrowly drawn and strictly
    28  construed to provide no more than the minimum protections
    29  required by the United States Department of Labor for such
    30  agreements.
    20070H1590B2342                 - 41 -     

     1  § 1308.  Grants by counties or municipalities.
     2     Any county or municipality in any metropolitan area which is
     3  a member of a local transportation organization is authorized to
     4  make annual grants from current revenues to local transportation
     5  organizations to assist in defraying the costs of operations,
     6  maintenance and debt service of local transportation
     7  organization or of a particular mass transportation project of a
     8  local transportation organization and to enter into long-term
     9  agreements providing for the payment of the same. The obligation
    10  of a municipality or county under any such agreement shall not
    11  be considered to be a part of its indebtedness, nor shall such
    12  obligation be deemed to impair the status of any indebtedness of
    13  such municipality or county which would otherwise be considered
    14  as self-sustaining.
    15  § 1309.  Limitation on decisions, findings and regulations of
    16             department.
    17     All decisions, findings and regulations made by the
    18  department pursuant to this chapter shall be for the purposes of
    19  this chapter only and shall not constitute evidence before any
    20  regulatory body of this Commonwealth or any other jurisdiction.
    21  § 1310.  Distribution of funding.
    22     (a)  General rule.--All moneys made available and required to
    23  be used for capital projects, asset maintenance and other
    24  programs specified in this section shall be distributed in
    25  accordance with the formula specified in this section and used
    26  strictly in accordance with section 1311 (relating to use of
    27  funds distributed).
    28     (b)  Distribution procedure.--During each fiscal year,
    29  capital project, asset maintenance and other program funds shall
    30  be distributed as follows:
    20070H1590B2342                 - 42 -     

     1         (1)  On or before the fifth day of each month, the
     2     Treasury Department shall certify to the department the total
     3     amount then available for distribution, and the department
     4     shall make distribution of payments required under this
     5     subsection on or before the 20th day of each month.
     6         (2)  Beginning in the 1991-1992 fiscal year, each month,
     7     the Treasury Department shall pay one-twelfth of the
     8     Department of Transportation project management oversight
     9     share for that fiscal year into the General Fund. The moneys
    10     so transferred are hereby appropriated to the Department of
    11     Transportation for use by that department for expenses
    12     related to project management and oversight of capital and
    13     asset maintenance projects funded pursuant to this section.
    14         (3)  Each month, the Treasury Department shall pay one-
    15     twelfth of the community transportation program section 1310
    16     share for that fiscal year into the General Fund. The funds
    17     so transferred are hereby appropriated to the Department of
    18     Transportation to make grants to counties, pursuant to
    19     section 1312 (relating to community transportation programs),
    20     for the purpose of funding capital projects of community
    21     transportation programs.
    22         (4)  Each month, the Treasury Department shall pay the
    23     planning, development, research, rural expansion and
    24     department-initiated programs section 1310 share for that
    25     month into the General Fund. The funds so transferred are
    26     hereby appropriated to the Department of Transportation to
    27     incur costs directly or to make grants to local
    28     transportation organizations or transportation companies, or
    29     entities which seek to become local transportation
    30     organizations or transportation companies, pursuant to
    20070H1590B2342                 - 43 -     

     1     section 1312, for the purpose of funding planning,
     2     development, research, rural expansion and department-
     3     initiated programs.
     4         (5)  Each month, the department shall distribute one-
     5     twelfth of the Class 4 transit entity section 1310 share to
     6     Class 4 transit entities in the manner provided in this
     7     paragraph. Each Class 4 transit entity shall receive a
     8     portion of each monthly distribution of the Class 4 transit
     9     entity section 1310 share as follows:
    10             (i)  Fifty percent of the monthly distribution of the
    11         Class 4 transit entity section 1310 share shall be
    12         distributed to Class 4 transit entities based upon each
    13         transit entity's Class 4 operating assistance grant
    14         section 1310 percentage. The actual amount received by
    15         each Class 4 transit entity under this subparagraph shall
    16         be determined by multiplying a particular Class 4 transit
    17         entity's Class 4 operating assistance grant section 1310
    18         percentage times the total amount available for
    19         distribution under this subparagraph.
    20             (ii)  Twenty-five percent of the monthly distribution
    21         of the Class 4 transit entity section 1310 share shall be
    22         distributed to Class 4 transit entities based upon each
    23         transit entity's Class 4 revenue mile section 1310
    24         percentage. The actual amount received by each Class 4
    25         transit entity under this subparagraph shall be
    26         determined by multiplying a particular Class 4 transit
    27         entity's Class 4 revenue mile section 1310 percentage
    28         times the total amount available for distribution under
    29         this subparagraph.
    30             (iii)  Twenty-five percent of the monthly
    20070H1590B2342                 - 44 -     

     1         distribution of the Class 4 transit entity section 1310
     2         share shall be distributed to Class 4 transit entities
     3         based upon each transit entity's Class 4 revenue hour
     4         section 1310 percentage. The actual amount received by
     5         each Class 4 transit entity under this subparagraph shall
     6         be determined by multiplying a particular Class 4 transit
     7         entity's Class 4 transit entity revenue hour section 1310
     8         percentage times the total amount available for
     9         distribution under this subparagraph.
    10         (6)  Each month, after providing for payment of the
    11     portion of the Department of Transportation project
    12     management oversight share, the community transportation
    13     program section 1310 share, the planning, development,
    14     research, rural expansion and department-initiated programs
    15     section 1310 shares and the Class 4 transit entity section
    16     1310 share to be distributed that month, the department shall
    17     distribute all remaining capital project, asset maintenance
    18     and other program funds as follows:
    19             (i)  Each Class 1 transit entity shall receive a
    20         prorata share of the Class 1 transit entity section 1310
    21         share. If there is only one Class 1 transit entity, it
    22         shall receive the entire Class 1 transit entity section
    23         1310 share.
    24             (ii)  Each Class 2 transit entity shall receive a
    25         prorata share of the Class 2 transit entity section 1310
    26         share. If there is only one Class 2 transit entity, it
    27         shall receive the entire Class 2 transit entity section
    28         1310 share.
    29             (iii)  Each Class 3 transit entity shall receive a
    30         portion of the Class 3 transit entity section 1310 share
    20070H1590B2342                 - 45 -     

     1         as follows:
     2                 (A)  Sixteen and sixty-seven hundredths percent
     3             of the Class 3 transit entity section 1310 share
     4             shall be distributed to Class 3 transit entities
     5             based upon each transit entity's Class 3 vehicle mile
     6             section 1310 percentage. The actual amount received
     7             by each Class 3 transit entity under this clause
     8             shall be determined by multiplying a particular Class
     9             3 transit entity's Class 3 vehicle mile section 1310
    10             percentage times the total amount available for
    11             distribution under this clause.
    12                 (B)  Sixteen and sixty-seven hundredths percent
    13             of the Class 3 transit entity section 1310 share
    14             shall be distributed to Class 3 transit entities
    15             based upon each transit entity's Class 3 vehicle hour
    16             section 1310 percentage. The actual amount received
    17             by each Class 3 transit entity under this clause
    18             shall be determined by multiplying a particular Class
    19             3 transit entity's Class 3 vehicle hour section 1310
    20             percentage times the total amount available for
    21             distribution under this clause.
    22                 (C)  Sixteen and sixty-six hundredths percent of
    23             the Class 3 transit entity section 1310 share shall
    24             be distributed to Class 3 transit entities based upon
    25             each transit entity's Class 3 total passenger section
    26             1310 percentage. The actual amount received by each
    27             Class 3 transit entity under this clause shall be
    28             determined by multiplying a particular Class 3
    29             transit entity's Class 3 total passenger section 1310
    30             percentage times the total amount available for
    20070H1590B2342                 - 46 -     

     1             distribution under this clause.
     2                 (D)  Twenty-five percent of the Class 3 transit
     3             entity section 1310 share shall be distributed to
     4             Class 3 transit entities based upon each transit
     5             entity's Class 3 Federal operating cap percentage.
     6             The actual amount received by each Class 3 transit
     7             entity under this clause shall be determined by
     8             multiplying a particular Class 3 transit entity's
     9             Class 3 Federal operating cap percentage times the
    10             total amount available for distribution under this
    11             clause.
    12                 (E)  Twenty-five percent of the Class 3 transit
    13             entity section 1310 share shall be distributed to
    14             Class 3 transit entities based upon each transit
    15             entity's Class 3 State operating grant percentage.
    16             The actual amount received by each Class 3 transit
    17             entity under this clause shall be determined by
    18             multiplying a particular Class 3 transit entity's
    19             Class 3 State operating grant percentage times the
    20             total amount available for distribution under this
    21             clause.
    22     (c)  Change of classification.--If, during any fiscal year,
    23  either the number of vehicles operated by a local transportation
    24  organization or transportation company or the area served by
    25  such a local transportation organization or transportation
    26  company changes so that the local transportation organization or
    27  transportation company meets the criteria for a different
    28  transit entity class, as such criteria are set forth in section
    29  1301 (relating to definitions), on or before July 15 of the
    30  fiscal year which follows such a change and in each fiscal year
    20070H1590B2342                 - 47 -     

     1  thereafter, the department shall reflect any change in the
     2  transit entity class of such a local transportation organization
     3  or transportation company in the Department of Transportation
     4  certification for that and subsequent fiscal years. In its
     5  calculation of the transit entity section 1310 shares for each
     6  transit entity class required by subsection (g)(1) and the
     7  transit entity section 1310.1 shares for each transit entity
     8  class required by subsection (g)(1) for the fiscal year
     9  following the change in a local transportation organization or
    10  transportation company's transit entity class and thereafter,
    11  the department shall include the amount of the transit entity
    12  sections 1310 and 1310.1 shares allocated to such a local
    13  transportation organization or transportation company for the
    14  fiscal year prior to the change in the transit entity class, in
    15  the transit entity sections 1310 and 1310.1 shares for the new
    16  transit entity class of such a local transportation organization
    17  or transportation company, and shall delete an equal amount from
    18  the transit entity sections 1310 and 1310.1 shares for the
    19  transit entity class for which such a local transportation
    20  organization or transportation company no longer meets the
    21  criteria in the new fiscal year. No local transportation
    22  organization or transportation company which has changed from
    23  one transit entity class to another due to either an increase in
    24  the number of vehicles operated or the United States Census
    25  Bureau's declaring its service area an urbanized area shall
    26  receive less than the amount transferred on its account by the
    27  department pursuant to this section.
    28     (d)  Oversight.--The department shall initiate and maintain a
    29  program of review and oversight for any projects receiving funds
    30  distributed pursuant to this section and section 1310.1
    20070H1590B2342                 - 48 -     

     1  (relating to supplemental public transportation assistance
     2  funding). The department is authorized to perform independent
     3  financial audits of the financial statements of each local
     4  transportation organization, transportation company or community
     5  transportation program receiving moneys pursuant to this
     6  section. These audits shall be conducted in accordance with
     7  generally accepted auditing standards. Any financial statements
     8  subject to the audit or reports resulting from the audit shall
     9  be prepared and presented in accordance with generally accepted
    10  accounting principles, consistently applied with previous
    11  statements rendered for or on behalf of such organization or
    12  company. The department may coordinate such audits in
    13  conjunction with audits undertaken by the Auditor General.
    14     (e)  Fiscal year and capital budget.--
    15         (1)  The governing body of each local transportation
    16     organization or transportation company shall establish a
    17     fiscal year for capital programs. No later than the last day
    18     of each fiscal year for capital programs, each local
    19     transportation organization or transportation company
    20     receiving moneys pursuant to this section shall adopt a
    21     capital budget and an asset maintenance spending plan for
    22     submission to the department.
    23         (2)  The capital budget shall include the following:
    24             (i)  A description of any such project.
    25             (ii)  The projected cost of any project to be
    26         undertaken, including supporting cash flow.
    27             (iii)  The duration of any such project, including
    28         the projected starting date, completion date and
    29         projected useful life of the project.
    30             (iv)  The proposed funding sources for any project.
    20070H1590B2342                 - 49 -     

     1             (v)  A description of projects completed in the prior
     2         fiscal year and their impact on operations.
     3             (vi)  A description of progress to date on projects
     4         initiated in the prior fiscal year but not yet completed.
     5             (vii)  An explanation of any significant project
     6         delays.
     7             (viii)  The use of funds under this section in the
     8         prior fiscal year, including projects for which they were
     9         used.
    10             (ix)  A multiyear plan for future use of funds
    11         received under this section for a period of not less than
    12         five years.
    13             (x)  Any other matter desired by the governing body
    14         of such local transportation organization or
    15         transportation company.
    16         (3)  The asset maintenance spending plan shall include:
    17             (i)  The amount of moneys expended for asset
    18         maintenance costs.
    19             (ii)  The purposes for which such funds were
    20         expended.
    21             (iii)  Those asset maintenance costs which are
    22         projected to be funded during the subsequent twelve
    23         months by the local transportation organization or
    24         transportation company.
    25             (iv)  A multiyear plan for future use of funds
    26         received under this section for a period of not less than
    27         five years.
    28         (4)  The capital budget and the asset maintenance
    29     spending plan shall be established by formal action of the
    30     governing body of such local transportation organization or
    20070H1590B2342                 - 50 -     

     1     transportation company following an opportunity for comment
     2     by the public and the department. Upon submission, the
     3     department will review and may make recommendations to the
     4     local transportation organization or transportation company
     5     concerning the capital budget and asset maintenance spending
     6     plan.
     7         (5)  The capital budget and the asset maintenance
     8     spending plan may be amended by formal action of the
     9     governing body of such local transportation organization or
    10     transportation company from time to time. Any amendments to
    11     the capital budget and the asset maintenance spending plan
    12     shall be transmitted to the department for its review, and
    13     the department may make recommendations to the local
    14     transportation organization or transportation company
    15     concerning any amendments to the capital budget and the asset
    16     maintenance spending plan.
    17     (f)  Definitions.--As used in this section, the following
    18  words and phrases shall have the meanings given to them in this
    19  subsection:
    20     "Capital project, asset maintenance and other program funds."
    21  Moneys made available to finance capital projects and asset
    22  maintenance costs of local transportation organizations,
    23  transportation companies or community transportation programs or
    24  to fund other programs specified in this section from:
    25         (1)  any fund of the Commonwealth where the legislation
    26     creating such fund references this part and states that some
    27     or all of the moneys in such fund are to be used to finance
    28     capital projects and asset maintenance costs of local
    29     transportation organizations, transportation companies or
    30     community transportation programs and to fund certain other
    20070H1590B2342                 - 51 -     

     1     programs; or
     2         (2)  any other source, where such moneys are made
     3     available specifically to finance capital projects and asset
     4     maintenance costs of local transportation organizations,
     5     transportation companies or community transportation programs
     6     in accordance with this section.
     7     "Class 1 section 1310 percentage."  Seventy and three-tenths
     8  percent.
     9     "Class 2 section 1310 percentage."  Twenty-five and four-
    10  tenths percent.
    11     "Class 3 section 1310 percentage."  Four and three-tenths
    12  percent.
    13     "Class 1 to 3 section 1310 allocation."  The total amount of
    14  capital project, asset maintenance and other program funds
    15  available for distribution by the Treasury Department during a
    16  particular month, less:
    17         (1)  the amount of the Department of Transportation
    18     project management oversight share to be paid each month
    19     under subsection (b)(2);
    20         (2)  the amount of the community transportation program
    21     section 1310 share to be paid each month under subsection
    22     (b)(3);
    23         (3)  the amount of the planning, development, research,
    24     rural expansion and department-initiated programs section
    25     1310 share; and
    26         (4)  the amount of the Class 4 transit entity section
    27     1310 share to be paid each month under subsection (b)(5).
    28     "Class 1 transit entity section 1310 share."  The product of
    29  the Class 1 section 1310 percentage times the Class 1 to 3
    30  section 1310 allocation.
    20070H1590B2342                 - 52 -     

     1     "Class 2 transit entity section 1310 share."  The product of
     2  the Class 2 section 1310 percentage times the monthly Class 1 to
     3  3 allocation.
     4     "Class 3 transit entity section 1310 share."  The product of
     5  the Class 3 section 1310 percentage times the monthly Class 1 to
     6  3 allocation.
     7     "Class 4 transit entity section 1310 share."  Four million
     8  dollars during the 1991-1992 fiscal year and $4,160,000 during
     9  the 1992-1993 fiscal year. During the 1993-1994 through 1996-
    10  1997 fiscal years, the term shall mean the Class 4 transit
    11  entity section 1310 share for the prior fiscal year plus (or
    12  minus) the product of the Class 4 transit entity section 1310
    13  share for the prior fiscal year times the percentage increase or
    14  decrease in the total funds available for distribution pursuant
    15  to this section received by the Treasury Department in the most
    16  recently completed fiscal year as compared with the prior fiscal
    17  year. For the 1997-1998 fiscal year and each fiscal year
    18  thereafter, the term shall mean 2.8% of the total amount of
    19  capital project, asset maintenance and other program funds
    20  projected by the department to be available under this section
    21  for distribution during the subject fiscal year.
    22     "Class 3 Federal operating cap percentage."  The percentage
    23  determined by dividing the Federal operating ceiling for a Class
    24  3 transit entity by the total Federal operating ceilings for all
    25  Class 3 transit entities.
    26     "Class 3 State operating grant percentage."  The percentage
    27  determined by dividing the State subsidy received pursuant to
    28  section 1303 (relating to annual appropriation and computation
    29  of subsidy) during fiscal year 1990-1991 by a Class 3 transit
    30  entity as stated in the latest Department of Transportation
    20070H1590B2342                 - 53 -     

     1  certification by the total State subsidies received pursuant to
     2  section 1303 during fiscal year 1990-1991 by all Class 3 transit
     3  entities as stated in the latest Department of Transportation
     4  certification. For purposes of calculating the amount received
     5  by a Class 3 transit entity pursuant to section 1303, any
     6  Federal funds transferred from other local transportation
     7  organizations and transportation companies from the Federal
     8  fiscal year 1990-1991 Governor's apportionment allocation,
     9  contained in the Urban Mass Transportation Act of 1964, shall be
    10  considered to be amounts received pursuant to section 1303.
    11     "Class 3 total passenger section 1310 percentage."  The
    12  percentage determined by dividing the total passengers
    13  transported by a Class 3 transit entity as stated in the latest
    14  Department of Transportation certification by the total number
    15  of passengers transported by all Class 3 transit entities as
    16  stated in the latest Department of Transportation certification.
    17     "Class 3 vehicle hour section 1310 percentage."  The
    18  percentage determined by dividing the vehicle hours of a Class 3
    19  transit entity as stated in the latest Department of
    20  Transportation certification by the total number of vehicle
    21  hours of all Class 3 transit entities as stated in the latest
    22  Department of Transportation certification.
    23     "Class 3 vehicle mile section 1310 percentage."  The
    24  percentage determined by dividing the vehicle miles of a Class 3
    25  transit entity as stated in the latest Department of
    26  Transportation certification by the total number of vehicle
    27  miles of all Class 3 transit entities as stated in the latest
    28  Department of Transportation certification.
    29     "Class 4 operating assistance grant section 1310 percentage."
    30  The percentage determined by dividing the Class 4 transit entity
    20070H1590B2342                 - 54 -     

     1  adjusted base grant received by a Class 4 transit entity by the
     2  total Class 4 transit entity adjusted base grants received
     3  pursuant to such act by all Class 4 transit entities during
     4  fiscal year 1990-1991 as stated in the Department of
     5  Transportation certification.
     6     "Class 4 revenue hour section 1310 percentage."  The
     7  percentage determined by dividing the revenue hours of a Class 4
     8  transit entity as stated in the latest Department of
     9  Transportation certification by the total number of revenue
    10  hours of all Class 4 transit entities as stated in the latest
    11  Department of Transportation certification.
    12     "Class 4 revenue mile section 1310 percentage."  The
    13  percentage determined by dividing the revenue miles of a Class 4
    14  transit entity as stated in the latest Department of
    15  Transportation certification by the total number of revenue
    16  miles of all Class 4 transit entities as stated in the latest
    17  Department of Transportation certification.
    18     "Community transportation program section 1310 share."  One
    19  million seven hundred thousand dollars during the 1991-1992
    20  fiscal year, $1,768,000 during the 1992-1993 fiscal year and,
    21  during the 1993-1994 fiscal year and each fiscal year
    22  thereafter, shall mean the community transportation program
    23  section 1310 share for the prior fiscal year plus (or minus) the
    24  product of the community transportation program section 1310
    25  share for the prior fiscal year times the percentage increase or
    26  decrease in the total funds available for distribution pursuant
    27  to this section received by the Treasury Department in the most
    28  recently completed fiscal year as compared with the prior fiscal
    29  year. However, in any fiscal year in which the total funds
    30  authorized to be expended from the State Lottery Fund for
    20070H1590B2342                 - 55 -     

     1  purposes enumerated in section 1312 (relating to community
     2  transportation programs) is less than $600,000, the community
     3  transportation program section 1310 share shall be increased so
     4  that the sum of the community transportation program section
     5  1310 share plus the total amount of such moneys paid from the
     6  State Lottery Fund for purposes enumerated in section 1312 shall
     7  equal $2,300,000. The combined funding to any county for
     8  community transportation under sections 1310 and 1312 shall not
     9  exceed $250,000 in any fiscal year.
    10     "Department of Transportation project management oversight
    11  share."  One million dollars during the 1991-1992 fiscal year
    12  and, during the 1992-1993 fiscal year and each fiscal year
    13  thereafter, shall mean $1,000,000 or 0.25% of the total amount
    14  of capital project, asset maintenance and other program funds
    15  available for distribution pursuant to this section received by
    16  the Treasury Department during the prior fiscal year, whichever
    17  is greater.
    18     "Department of Transportation certification."  The
    19  certification by the Department of Transportation to the
    20  Treasury Department under subsection (g).
    21     "Department-initiated programs."  Mass transportation
    22  programs with a regional or Statewide application, including,
    23  without limitation, capital projects in support of intercity
    24  rail passenger service, capital projects in support of intercity
    25  bus service, transit safety initiatives, public-private
    26  transportation partnerships, ridersharing incentive programs,
    27  transportation management associations and other multimodal
    28  transportation management projects.
    29     "Federal operating ceiling."  The maximum amount of Federal
    30  funds permitted to be used by a Class 3 transit entity to
    20070H1590B2342                 - 56 -     

     1  subsidize transit operations, as published in the November 23,
     2  1990, Federal Register (or, where there is more than one transit
     3  entity in a region, the maximum amount of Federal funds which
     4  such Class 3 transit entity could have utilized to subsidize
     5  transit operations pursuant to the subregional allocation as
     6  specified in the applicable transportation improvement program)
     7  for fiscal year 1990-1991.
     8     "Planning, development, research, rural expansion and
     9  department-initiated programs section 1310 shares."  The sum of
    10  $83,333.33 plus 0.25% of the total capital project, asset
    11  maintenance and other program funds available for distribution
    12  by the Treasury Department during a particular month.
    13     "Total passengers."  The total of all revenue passengers plus
    14  transfer passengers on second and successive rides of a local
    15  transportation organization or transportation company, which are
    16  funded in whole or in part by this part, with respect to the
    17  most recent fiscal year reported in the most recently issued
    18  Pennsylvania Mass Transit Statistical Report.
    19     "Treasury Department."  The State Treasurer and the Treasury
    20  Department of the Commonwealth.
    21     (g)  Certification to Treasury Department.--On or before July
    22  15 of each fiscal year, the Department of Transportation shall
    23  calculate and certify to the Treasury Department the following:
    24         (1)  The Department of Transportation project management
    25     oversight share, the community transportation program
    26     sections 1310 and 1310.1 shares, the Class 1 transit entity
    27     sections 1310 and 1310.1 shares, the Class 2 transit entity
    28     sections 1310 and 1310.1 shares, the Class 3 transit entity
    29     sections 1310 and 1310.1 shares and the Class 4 transit
    30     entity sections 1310 and 1310.1 shares and the planning,
    20070H1590B2342                 - 57 -     

     1     development, research, rural expansion and department-
     2     initiated programs sections 1310 and 1310.1 shares.
     3         (2)  The names and addresses of each Class 1 transit
     4     entity, Class 2 transit entity, Class 3 transit entity and
     5     Class 4 transit entity and whether such program or entity is
     6     a Class 1 transit entity, Class 2 transit entity, Class 3
     7     transit entity or Class 4 transit entity.
     8         (3)  The vehicle miles of each Class 3 transit entity,
     9     the total vehicle miles of all Class 3 transit entities, the
    10     Class 3 vehicle mile sections 1310 and 1310.1 percentages for
    11     each Class 3 transit entity, the vehicle hours of each Class
    12     3 transit entity, total vehicle hours of all Class 3 transit
    13     entities, the Class 3 vehicle hour sections 1310 and 1310.1
    14     percentages for each Class 3 transit entity, total passengers
    15     for each Class 3 transit entity, the total passengers for all
    16     Class 3 transit entities, the Class 3 total passenger
    17     sections 1310 and 1310.1 percentages for each Class 3 transit
    18     entity, the Federal operating ceiling for each Class 3
    19     transit entity, the Federal operating ceiling for all Class 3
    20     transit entities, the Federal operating cap percentage for
    21     each Class 3 transit entity, the State subsidy received
    22     pursuant to section 1303 (relating to annual appropriation
    23     and computation of subsidy) as described in the definition of
    24     "Class 3 State operating grant percentage" for each Class 3
    25     transit entity, the State subsidy received pursuant to
    26     section 1303 as described in the definition of "Class 3 State
    27     operating grant percentage" for all Class 3 transit entities,
    28     and the Class 3 State grant percentage for each Class 3
    29     transit entity.
    30         (4)  The operating assistance grant received by each
    20070H1590B2342                 - 58 -     

     1     Class 4 transit entity during fiscal year 1990-1991 pursuant
     2     to the act of February 11, 1976 (P.L.14, No.10), known as the
     3     Pennsylvania Rural and Intercity Common Carrier Surface
     4     Transportation Assistance Act, the operating assistance grant
     5     received by all Class 4 transit entities during fiscal year
     6     1990-1991 pursuant to that act, the Class 4 operating
     7     assistance grant sections 1310 and 1310.1 percentages for
     8     each Class 4 transit entity, the revenue miles of each Class
     9     4 transit entity, the revenue miles of all Class 4 transit
    10     entities, the Class 4 revenue mile sections 1310 and 1310.1
    11     percentages of each Class 4 transit entity, the revenue hours
    12     for each Class 4 transit entity, the revenue hours for all
    13     Class 4 transit entities and the Class 4 revenue hour
    14     sections 1310 and 1310.1 percentages for each Class 4 transit
    15     entity.
    16  § 1310.1.  Supplemental public transportation assistance
    17             funding.
    18     (a)  General rule.--Beginning July 1, 1997, 1.22% of the
    19  money collected from the tax imposed under Article II of the act
    20  of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
    21  1971, up to a maximum of $75,000,000, shall be deposited in the
    22  Supplemental Public Transportation Account, which is established
    23  in the State Treasury. Within 30 days of the close of a calendar
    24  month, 1.22% of the taxes received in the prior calendar month
    25  shall be transferred to the account. No funds in excess of
    26  $75,000,000 may be transferred to the account in any one fiscal
    27  year. The money in the account shall be used by the department
    28  for supplemental public transportation assistance, to be
    29  distributed under this section. Transit entities may use
    30  supplemental assistance moneys for any of the purposes
    20070H1590B2342                 - 59 -     

     1  enumerated in section 1311 (relating to use of funds
     2  distributed). In addition to those enumerated purposes, Class 1,
     3  2 and 3 transit entities also may use the base supplemental
     4  assistance share for general operations. Class 4 transit
     5  entities may use all supplemental assistance moneys for general
     6  operations.
     7     (b)  Distribution.--During each fiscal year, capital project,
     8  asset maintenance and other program funds designated as
     9  supplemental public transportation assistance funding to be
    10  distributed pursuant to this section shall be distributed as
    11  follows:
    12         (1)  On or before the fifth day of each month, the
    13     Treasury Department shall certify to the department the total
    14     amount of money then available for distribution, and the
    15     department shall disburse the money on or before the 20th day
    16     of each month.
    17         (2)  Each month the department shall distribute to each
    18     local transportation organization or transportation company
    19     1/12 of the base supplemental assistance share of that local
    20     transportation organization or transportation company.
    21         (3)  Each month the Treasury Department shall pay 1/12 of
    22     the community transportation program section 1310.1 share for
    23     that fiscal year to the Department of Transportation to make
    24     grants to counties pursuant to section 1312 (relating to
    25     community transportation programs) for the purpose of funding
    26     capital projects of community transportation programs.
    27         (4)  Each month the department shall distribute 1/12 of
    28     the Class 4 transit entity section 1310.1 share to Class 4
    29     transit entities according to the same formula as provided
    30     for distribution of funds under section 1310(b)(5) (relating
    20070H1590B2342                 - 60 -     

     1     to distribution of funding), using the Class 4 transit entity
     2     section 1310.1 share in place of the Class 4 transit entity
     3     section 1310 share.
     4         (5)  Each month, after providing for payment of the
     5     portion of the base supplemental assistance share, the
     6     community transportation program section 1310.1 share and the
     7     Class 4 transit entity section 1310.1 share to be distributed
     8     that month, the department shall distribute all remaining
     9     capital project, asset maintenance and other program funds
    10     required to be distributed pursuant to this section according
    11     to the same formula as provided for distribution of funds in
    12     section 1310(b)(6), using the transit entity's section 1310.1
    13     share in place of the transit entity's section 1310 share.
    14     (c)  Definitions.--As used in this section, the following
    15  words and phrases shall have the meanings given to them in this
    16  subsection. Any term used in this section but not defined in
    17  this subsection shall have the meaning given in section 1310(f):
    18     "Base supplemental assistance share."  The P.L. 103-122
    19  percentage for each local transportation organization or
    20  transportation company multiplied by $54,616,000.
    21     "Capital project, asset maintenance and other program funds."
    22  Moneys made available under this section to finance capital
    23  projects and asset maintenance costs of local transportation
    24  organizations, transportation companies or community
    25  transportation programs or to fund other programs specified in
    26  this section.
    27     "Class 1 section 1310.1 percentage."  70.3%.
    28     "Class 2 section 1310.1 percentage."  25.4%.
    29     "Class 3 section 1310.1 percentage."  4.3%.
    30     "Class 1 to 3 section 1310.1 allocation."  The total amount
    20070H1590B2342                 - 61 -     

     1  of capital project, asset maintenance and other program funds
     2  available for distribution by the Treasury Department during a
     3  particular month less:
     4         (1)  the amount of the base supplemental assistance share
     5     to be paid each month under subsection (b)(2);
     6         (2)  the amount of the community transportation program
     7     section 1310.1 share to be paid each month under subsection
     8     (b)(3); and
     9         (3)  the amount of the Class 4 transit entity section
    10     1310.1 share to be paid each month under subsection (b)(4).
    11     "Class 1 transit entity section 1310.1 share."  The product
    12  of the Class 1 section 1310.1 percentage times the Class 1 to 3
    13  section 1310.1 allocation.
    14     "Class 2 transit entity section 1310.1 share."  The product
    15  of the Class 2 section 1310.1 percentage times the monthly Class
    16  1 to 3 allocation.
    17     "Class 3 transit entity section 1310.1 share."  The product
    18  of the Class 3 section 1310.1 percentage times the monthly Class
    19  1 to 3 allocation.
    20     "Class 4 transit entity section 1310.1 share."  For each
    21  fiscal year, the total amount projected by the department to be
    22  available for distribution in the fiscal year in accordance with
    23  this section, less $54,616,000, times 2.8%.
    24     "Class 3 Federal operating cap percentage."  The percentage
    25  determined by dividing the Federal operating ceiling for a Class
    26  3 transit entity by the total of all Federal operating ceilings
    27  for Class 3 transit entities.
    28     "Class 3 total passenger section 1310.1 percentage."  The
    29  percentage determined by dividing the total passengers
    30  transported by a Class 3 transit entity, as stated in the latest
    20070H1590B2342                 - 62 -     

     1  Department of Transportation certification, by the total number
     2  of passengers transported by all Class 3 transit entities, as
     3  stated in the latest Department of Transportation certification.
     4     "Class 3 vehicle hour section 1310.1 percentage."  The
     5  percentage determined by dividing the vehicle hours of a Class 3
     6  transit entity, as stated in the latest Department of
     7  Transportation certification, by the total number of vehicle
     8  hours of all Class 3 transit entities, as stated in the latest
     9  Department of Transportation certification.
    10     "Class 3 vehicle mile section 1310.1 percentage."  The
    11  percentage determined by dividing the vehicle miles of a Class 3
    12  transit entity, as stated in the latest Department of
    13  Transportation certification, by the total number of vehicle
    14  miles of all Class 3 transit entities, as stated in the latest
    15  Department of Transportation certification.
    16     "Class 4 operating assistance grant section 1310.1
    17  percentage."  The percentage determined by dividing the Class 4
    18  transit entity adjusted base grant received by a Class 4 transit
    19  entity, as stated in the latest Department of Transportation
    20  certification, by the total Class 4 transit entity adjusted base
    21  grants received by all Class 4 transit entities during fiscal
    22  year 1990-1991, as stated in the latest Department of
    23  Transportation certification.
    24     "Class 4 revenue hour section 1310.1 percentage."  The
    25  percentage determined by dividing the revenue hours of a Class 4
    26  transit entity, as stated in the latest Department of
    27  Transportation certification, by the total number of revenue
    28  hours of all Class 4 transit entities, as stated in the latest
    29  Department of Transportation certification.
    30     "Class 4 revenue mile section 1310.1 percentage."  The
    20070H1590B2342                 - 63 -     

     1  percentage determined by dividing the revenue miles of a Class 4
     2  transit entity, as stated in the latest Department of
     3  Transportation certification, by the total number of revenue
     4  miles of all Class 4 transit entities, as stated in the latest
     5  Department of Transportation certification.
     6     "Community transportation program section 1310.1 share."  The
     7  greater of:
     8         (1)  $1,200,000; or
     9         (2)  the total amount projected by the Department of
    10     Transportation to be available for distribution in the
    11     subject fiscal year in accordance with this section, less
    12     $54,616,000, times 2.5%.
    13     "P.L. 103-122 percentage."  The percentage determined by
    14  dividing the operating assistance grant or operating assistance
    15  limitation, whichever is greater, but not to exceed the total
    16  apportionment of funds made available to a particular local
    17  transportation organization or transportation company in this
    18  Commonwealth for each Class 1 transit entity, Class 2 transit
    19  entity and Class 3 transit entity and the base grants approved
    20  for each Class 4 transit entity pursuant to Public Law 103-122,
    21  107 Stat. 1199, for the Federal fiscal year ending September 30,
    22  1994, by the total of such amounts for all Commonwealth local
    23  transportation organizations and transportation companies
    24  pursuant to Public Law 103-122 for the fiscal year as determined
    25  by the Department of Transportation.
    26  § 1311.  Use of funds distributed.
    27     (a)  Approval of department.--
    28         (1)  No money made available pursuant to section 1310
    29     (relating to distribution of funding) shall be expended on
    30     any capital project by any local transportation organization
    20070H1590B2342                 - 64 -     

     1     or transportation company until after the local
     2     transportation organization or transportation company submits
     3     the project to the department for approval and the department
     4     approves the project. At the option of the local
     5     transportation organization or transportation company,
     6     capital projects may be submitted to the department on an
     7     annual basis at the time the local transportation
     8     organization or transportation company submits its capital
     9     budget to the department or at another time chosen by the
    10     local transportation organization or transportation company.
    11         (2)  The department shall establish criteria for approval
    12     of capital projects pursuant to this subsection, including,
    13     but not limited to, consideration of estimated useful life,
    14     demonstration of need and reasonableness of cost.
    15         (3)  Amendments to capital projects may be submitted at
    16     any time to the department for its review and approval in
    17     accordance with the procedures specified by the department.
    18         (4)  The department shall prescribe, under the authority
    19     of this chapter, reasonable procedures, including deadlines,
    20     for the department to review, comment and approve the capital
    21     project or projects submitted by a local transportation
    22     organization or transportation company.
    23     (b)  Funding purposes enumerated.--Moneys distributed
    24  pursuant to section 1310 shall be used by local transportation
    25  organizations and transportation companies for purposes of
    26  paying:
    27         (1)  all costs of capital projects, including, without
    28     limitation, the costs of acquisition, construction,
    29     installation, start-up costs of operations, improvement and
    30     all work and materials incident thereto, provided that funds
    20070H1590B2342                 - 65 -     

     1     expended for capital projects pursuant to section 1310 shall
     2     be matched by local or private funding in an amount equal to
     3     at least one-thirtieth of the project cost;
     4         (2)  debt service and the cost of issuance of bonds,
     5     notes and other evidences of indebtedness which a local
     6     transportation organization or transportation company is
     7     permitted to issue under any law of this Commonwealth; and
     8         (3)  to the extent permitted by this section, asset
     9     maintenance costs. Community transportation programs shall
    10     use moneys distributed pursuant to this section only for
    11     purposes enumerated in section 1312 (relating to community
    12     transportation programs).
    13     (c)  Certain capital projects.--Notwithstanding any other
    14  provision of law, each local transportation organization or
    15  transportation company receiving moneys pursuant to section 1310
    16  may use such moneys, in the discretion of such local
    17  transportation organization or transportation company, to fund
    18  all or a portion of capital projects listed in the program
    19  prepared pursuant to section 2002(a)(13) of the act of April 9,
    20  1929 (P.L.177, No.175), known as The Administrative Code of
    21  1929.
    22     (d)  Management of funds.--
    23         (1)  Each local transportation organization or
    24     transportation company receiving moneys pursuant to sections
    25     1310 and 1310.1 (relating to supplemental public
    26     transportation assistance funding) shall hold such moneys in
    27     an account separate from other funds of the local
    28     transportation organization or transportation company and
    29     shall invest such moneys until such funds are used in
    30     accordance with this section, with such funds being invested
    20070H1590B2342                 - 66 -     

     1     in accordance with the limits on investment of the local
     2     transportation organization or transportation company.
     3     Notwithstanding any other provisions of this chapter, any
     4     interest earned shall be used for capital projects and asset
     5     maintenance costs during any period as determined by the
     6     local transportation organization or transportation company.
     7         (2)  All moneys distributed pursuant to section 1310 and
     8     utilized for asset maintenance under subsection (e) shall be
     9     matched by local or private funding in an amount equal to at
    10     least 1/30 of the amount expended for such purposes, except
    11     that, in the case of Class 3 and 4 transit entities, no
    12     matching funds shall be required if the department shall have
    13     received from the local governmental funding source which
    14     would otherwise provide the matching funds a certification
    15     that compliance with the matching requirement would create an
    16     undue financial burden upon the local governmental funding
    17     source such that a curtailment of government services
    18     endangering public health and safety would ensue.
    19         (3)  All moneys distributed pursuant to section 1310.1
    20     and utilized under this section shall be matched by local or
    21     private funding in an amount equal to at least 1/30 of the
    22     amount expended for such purposes, except that, in the case
    23     of Class 3 and 4 transit entities, no funds utilized for
    24     asset maintenance under subsection (e) shall require a local
    25     match if the department shall have received from the local
    26     governmental funding source which would otherwise provide the
    27     matching funds a certification that compliance with the
    28     matching requirement would create an undue financial burden
    29     upon the local governmental funding source such that a
    30     curtailment of government services endangering public health
    20070H1590B2342                 - 67 -     

     1     and safety would ensue.
     2     (e)  Asset maintenance.--
     3         (1)  Each local transportation organization or
     4     transportation company may expend moneys distributed pursuant
     5     to sections 1310 and 1310.1 shares to fund asset maintenance
     6     costs as provided in this subsection.
     7         (2)  Moneys distributed pursuant to sections 1310 and
     8     1310.1 may only be used to fund asset maintenance costs
     9     incurred during the fiscal year in which such moneys are
    10     allocated. Thereafter, such funds may only be used to fund
    11     capital projects.
    12         (3)  On or before March 1 of each year, the department
    13     shall certify to each local transportation organization or
    14     transportation company the amount of capital project, asset
    15     maintenance, base supplemental assistance and other program
    16     funds which the department estimates each local
    17     transportation organization or transportation company will be
    18     entitled to receive during the ensuing fiscal year. Each
    19     local transportation organization or transportation company
    20     may expend moneys distributed pursuant to sections 1310 and
    21     1310.1 shares to fund asset maintenance costs up to the
    22     following maximum percentages of the estimate from the
    23     department, including accrued interest, the amount received
    24     during the prior fiscal year or the amount actually received
    25     in the current fiscal year, whichever is greater:
    26             (i)  Class 1 transit entities may utilize for asset
    27         maintenance costs up to a maximum of 30% of the funds
    28         received pursuant to sections 1310 and 1310.1 shares.
    29             (ii)  Class 2 and 3 transit entities may utilize for
    30         asset maintenance costs up to a maximum of 50% of the
    20070H1590B2342                 - 68 -     

     1         funds received pursuant to sections 1310 and 1310.1.
     2             (iii)  (Deleted by amendment).
     3             (iv)  Class 4 transit entities may utilize for asset
     4         maintenance costs up to a maximum of 50% of the funds
     5         received pursuant to sections 1310 and 1310.1.
     6     (f)  Eligible projects.--Notwithstanding any other provision
     7  of this chapter, moneys provided under section 1310 to community
     8  transportation programs may be expended only in accordance with
     9  section 1312 and only to fund all or a portion of eligible
    10  projects of such entities as enumerated in section 1312.
    11     (g)  Matching funds.--The moneys provided to local
    12  transportation organizations, transportation companies or
    13  community transportation programs pursuant to section 1310 may
    14  be used as matching funds to obtain Federal aid for capital
    15  projects.
    16     (h)  Use by department.--Funds appropriated to the department
    17  pursuant to section 1310(b)(2) and (4) may be utilized by the
    18  department for the purposes provided in either of such
    19  paragraphs.
    20     (i)  Accounting.--Within 120 days after the end of each
    21  fiscal year for capital programs established by the local
    22  transportation organization or transportation company pursuant
    23  to section 1310(e), each local transportation organization and
    24  transportation company receiving moneys pursuant to sections
    25  1310 and 1310.1 shares shall transmit to the department an
    26  accounting of all funds received pursuant to sections 1310 and
    27  1310.1 shares in that fiscal year. The accounting shall be in a
    28  form prescribed by the department and shall include a listing of
    29  all expenditures on a project by project basis and the status of
    30  all unspent funds. The local transportation organization or
    20070H1590B2342                 - 69 -     

     1  transportation company shall grant access to the department or
     2  its duly authorized representatives to any and all records
     3  pertaining to funds received pursuant to sections 1310 and
     4  1310.1 shares.
     5     (j)  Limit on certain amounts expended.--Notwithstanding any
     6  law to the contrary and except as provided in subsection (a) for
     7  Class 4 transit entities, local transportation organizations and
     8  transportation companies are authorized to expend moneys
     9  distributed pursuant to sections 1310 and 1310.1 shares for
    10  asset maintenance costs in an amount not to exceed the greater
    11  of:
    12         (1)  the maximum amount of asset maintenance expenditures
    13     which could have been approved by the department for
    14     expenditure by that local transportation organization or
    15     transportation company for the 1991-1992 fiscal year pursuant
    16     to section 17(a) of the act of August 5, 1991 (P.L.238,
    17     No.26), entitled "An act amending Titles 74 (Transportation)
    18     and 75 (Vehicles) of the Pennsylvania Consolidated Statutes,
    19     codifying provisions relating to public transportation;
    20     imposing certain fees and taxes; further providing for
    21     certain Pennsylvania Turnpike projects; defining 'farm
    22     equipment'; further providing for the responsibilities of
    23     vehicle transferees, for exemptions from registration and
    24     certificates of title and for the use of dealer plates,
    25     multipurpose dealer plates and farm equipment plates; further
    26     providing for funeral processions; further providing for a
    27     restricted receipts fund and for registration for snowmobiles
    28     and ATV's; establishing the Snowmobile Trail Advisory
    29     Committee; further providing for the highway maintenance and
    30     construction tax; and making repeals," based upon a
    20070H1590B2342                 - 70 -     

     1     projection of $200,000,000 in total dedicated capital
     2     assistance funds plus estimated amounts of supplemental
     3     public transportation assistance funding available for
     4     distribution pursuant to section 1310.1 in that fiscal year,
     5     which estimate shall not be less than $75,000,000 in any
     6     fiscal year; or
     7         (2)  the amount permitted to be expended for such
     8     purposes under subsection (e).
     9  § 1312.  Community transportation programs.
    10     (a)  Grants from lottery fund.--All counties except counties
    11  of the first and second class shall be entitled to grants from
    12  the State Lottery Fund for the purpose of adding, replacing,
    13  upgrading and overhauling equipment and purchasing, constructing
    14  or renovating facilities to serve as office and maintenance
    15  sites for the provision of reduced fare demand-response service.
    16  Equipment that may be purchased shall include, but shall not be
    17  limited to, vehicles, vehicle rehabilitation, major drivetrain
    18  components, communication equipment, computer equipment and
    19  software and office equipment and furnishings. The amount
    20  entitled to all counties and to be granted by the department
    21  shall not exceed $2,300,000. The department may require the
    22  counties to coordinate the acquisition of equipment through a
    23  Statewide purchase program should the department find such a
    24  program to be cost efficient.
    25     (b)  Procedure.--
    26         (1)  The department is hereby authorized to make grants
    27     to all counties, except those of the first and second class,
    28     or to entities designated by such counties to coordinate
    29     services under this section in such county, for the purpose
    30     of adding, replacing, upgrading and overhauling equipment for
    20070H1590B2342                 - 71 -     

     1     the provision of shared-ride transit services responsive to
     2     and accessible by the general public as well as the elderly
     3     and disabled. If sufficient funds remain after all department
     4     approvals for such equipment projects have been fully funded,
     5     the department is hereby authorized to make grants for the
     6     purchase, construction or renovation of facilities to serve
     7     as office and maintenance sites for the provision of shared-
     8     ride transit services responsive to and accessible by the
     9     general public as well as the elderly and disabled. Equipment
    10     that may be purchased shall include, but shall not be limited
    11     to, vehicles, vehicle rehabilitation, major drivetrain
    12     components, communication equipment, computer equipment and
    13     software and office equipment and furnishings.
    14         (2)  Counties other than counties of the first and second
    15     class may obtain grants pursuant to this subsection by filing
    16     with the department an application in a form prescribed by
    17     it. The department shall require with such application a
    18     transportation plan plus such other information as the
    19     department may require.
    20         (3)  The applicant shall certify that all efforts
    21     possible have been made to coordinate local service for the
    22     elderly and disabled and the services to be offered with
    23     these capital assets do not duplicate existing fixed route
    24     services, as provided under the act of February 11, 1976
    25     (P.L.14, No.10), known as the Pennsylvania Rural and
    26     Intercity Common Carrier Surface Transportation Assistance
    27     Act, and under other provisions of this part. The applicant
    28     shall solicit comments from the local public body fixed route
    29     provider and include any such comments as part of the
    30     application.
    20070H1590B2342                 - 72 -     

     1         (4)  All purchases pursuant to this subsection shall be
     2     made in accordance with bidding procedures established under
     3     the act of May 2, 1945 (P.L.382, No.164), known as the
     4     Municipality Authorities Act of 1945, or the act of August 9,
     5     1955 (P.L.323, No.130), known as The County Code, whichever
     6     is applicable.
     7     (c)  Availability of funds.--Funds not expended under this
     8  section in the fiscal year in which they were made available
     9  shall not lapse and shall be available for use pursuant to this
    10  section in the next succeeding fiscal years.
    11  § 1313.  Additional programs.
    12     (a)  Projects and programs enumerated.--The department is
    13  hereby authorized to incur costs directly or to make grants,
    14  undertake and provide financial support:
    15         (1)  To new rural transportation systems for the purpose
    16     of funding capital, asset maintenance and operating costs of
    17     new rural transportation systems. New rural transportation
    18     systems may obtain grants under this section by filing for
    19     each fiscal year with the department an application in a form
    20     prescribed by it. The department shall require with the
    21     application a transportation plan plus such other information
    22     as the department may require to establish to the
    23     satisfaction of the department that the new rural
    24     transportation system is deserving of a grant under this
    25     section.
    26         (2)  For the purpose of funding studies, analysis,
    27     planning and development of programs for public
    28     transportation assistance, services and facilities.
    29         (3)  To incur costs directly or to make grants for
    30     department-initiated programs.
    20070H1590B2342                 - 73 -     

     1         (4)  To make grants to Class 4 transit entities for the
     2     significant expansion of services by such entities from funds
     3     remaining in the development, planning and rural expansion
     4     share after all grants have been made for the fiscal year
     5     pursuant to paragraphs (1) and (2). Grants from the
     6     development, planning and rural expansion share shall be used
     7     by the Class 4 transit entity for the construction,
     8     acquisition, capital projects, asset maintenance and
     9     operating costs of the expansion of such entity. Class 4
    10     transit entities may obtain grants by filing for each fiscal
    11     year with the department an application in a form prescribed
    12     by it. The department shall require with the application a
    13     transportation plan plus such other information as the
    14     department may require to establish to the satisfaction of
    15     the department that the Class 4 transit entity is deserving
    16     of a grant under this section.
    17     (b)  Availability of funds.--Funds not expended under this
    18  section in the fiscal year in which they were made available
    19  shall not lapse and shall be available for use pursuant to this
    20  section in the next succeeding fiscal years.
    21  § 1315.  Public transportation grants management accountability.
    22     (a)  Performance audits.--All classes of transit entities
    23  shall complete periodic management performance audits which
    24  shall encompass all public transportation programs and services
    25  financed in whole or in part by grants provided by the
    26  department as follows:
    27         (1)  The department shall establish criteria to be
    28     included in a performance audit performed pursuant to this
    29     section. The criteria shall be published in the Pennsylvania
    30     Bulletin. Separate criteria may be established for each class
    20070H1590B2342                 - 74 -     

     1     of transit entity.
     2         (2)  Management performance audits shall be completed
     3     within ten months of their initiation and shall be performed
     4     as follows:
     5             (i)  Class 1 transit entities shall begin the initial
     6         management performance audit required pursuant to this
     7         section no later than July 1, 1999, or, with the written
     8         approval of the department, within five years of the
     9         completion of the most recent performance audit.
    10         Thereafter, Class 1 transit entities shall complete a
    11         management performance audit at least once every five
    12         years.
    13             (ii)  Class 2 transit entities shall begin the
    14         initial management performance audit required by this
    15         section no later than July 1, 2000, or, with the written
    16         approval of the department, within five years of the most
    17         recent performance audit. The department may extend the
    18         initiation date for a period of up to five years.
    19         Thereafter, Class 1 transit entities shall complete a
    20         management performance audit at least once every five
    21         years.
    22             (iii)  Class 3 transit entities in urbanized areas
    23         with a population of 200,000 or greater shall begin the
    24         initial management performance audit required by this
    25         section no later than July 1, 2001. Class 3 transit
    26         entities in urbanized areas with a population of less
    27         than 200,000 shall begin the first management performance
    28         audit required by this section no later than July 1,
    29         2002. Thereafter, Class 3 transit entities shall perform
    30         a management performance audit at least once every seven
    20070H1590B2342                 - 75 -     

     1         years.
     2             (iv)  Class 4 transit entities shall begin the first
     3         initial management performance audit required by this
     4         section no later than July 1, 2002. Thereafter, Class 4
     5         transit entities shall perform a management performance
     6         audit at least once every ten years. The department shall
     7         perform management performance audits for Class 4
     8         entities through qualified independent contractors unless
     9         written notice is provided to the department by the Class
    10         4 transit entity that the transit entity wishes to
    11         perform its own audit. The notice shall be provided no
    12         later than one year prior to the initiation date of the
    13         next scheduled audit.
    14         (3)  Class 1, 2 and 3 transit entities shall bear all
    15     costs of performing management performance audits pursuant to
    16     this section. The cost of such management performance audits
    17     for Class 4 transit entities shall be paid by the department
    18     from funds made available under section 1310(d) (relating to
    19     distribution of funding).
    20         (4)  For Class 1, 2 and 3 transit entities, the
    21     management performance audit shall be conducted by a
    22     qualified independent auditor selected by competitive
    23     procurement. Procurement documents shall specify the scope of
    24     the audit, comply with department criteria and be submitted
    25     to the department for written approval prior to procurement.
    26     (b)  Submission of audit report; transit entity response.--
    27         (1)  Upon receipt of a final audit report from the
    28     auditor or, in the case of Class 4 transit entities, from the
    29     department, each transit entity shall prepare an action plan
    30     addressing the findings and recommendations of the audit
    20070H1590B2342                 - 76 -     

     1     report. The action plan shall be completed and approved by
     2     the transit entity's governing body within two months of
     3     receipt of the final audit report. The transit entity shall
     4     implement its action plan in accordance with the time frames
     5     specified in the plan.
     6         (2)  Upon approval of the action plan by the entity's
     7     governing body, the transit entity shall submit the plan and
     8     the auditor's report to the department. Class 1 and 2 transit
     9     entities shall also submit their action plans to the
    10     Legislative Budget and Finance Committee, the chairman and
    11     minority chairman of the Transportation Committee of the
    12     Senate and the chairman and minority chairman of the
    13     Transportation Committee of the House of Representatives.
    14     (c)  Customer satisfaction surveys.--Customer satisfaction
    15  surveys shall be conducted as follows:
    16         (1)  All Class 1 and 2 entities shall conduct customer
    17     satisfaction surveys at least once every two years. Class 3
    18     and 4 transit entities shall conduct customer satisfaction
    19     surveys at least once every three years. An initial customer
    20     satisfaction survey for each transit entity shall be
    21     completed and submitted to the department no later than
    22     December 31, 1998.
    23         (2)  The department shall provide guidelines regarding
    24     the scope of the surveys and suggested questions which may be
    25     included in the surveys.
    26         (3)  Upon completion of the survey, the transit entity
    27     shall submit a report to the department containing survey
    28     methodology, survey results, relevant trends in the level of
    29     customer satisfaction and actions taken or planned to improve
    30     customer satisfaction.
    20070H1590B2342                 - 77 -     

     1     (d)  Suspension of grant funds.--The department may suspend
     2  eligibility for grants under section 1303 (relating to annual
     3  appropriation and computation of subsidy) for any transit entity
     4  which fails to comply with any of the provisions of this
     5  section.
     6     (e)  Restoration or continuation of funding.--The department
     7  shall continue eligibility of a transit entity for grants under
     8  section 1303 if the entity has initiated its audit or survey in
     9  a timely manner and the delay in completion of the audit or
    10  survey is not the fault of the transit entity. The department
    11  shall restore eligibility of a suspended transit entity at such
    12  time as the audit or survey is completed in accordance with the
    13  requirements of this section.
    14     (f)  Cost reduction and productivity improvement.--As part of
    15  its annual application for funding under section 1303, Class 1,
    16  2, 3 and 4 transit entities shall include a report outlining
    17  initiatives it has undertaken to reduce costs and improve
    18  productivity.]
    19     Section 2.  Title 74 is amended by adding chapters to read:    <--
    20                            CHAPTER 13A
    21                       TRANSPORTATION ISSUES
    22  Sec.
    23  13A01.  Declaration of policy.
    24  § 13A01.  Declaration of policy.
    25     The General Assembly finds and declares as follows:
    26         (1)  This Commonwealth and the nation are facing serious
    27     transportation funding problems related to gasoline and
    28     energy.
    29         (2)  Public transportation is a major component of
    30     solving the problems referred to in paragraph (1).
    20070H1590B2342                 - 78 -     

     1         (3)  It is necessary to reconsider public transportation
     2     options in this Commonwealth.
     3                             CHAPTER 15
     4                    SUSTAINABLE MOBILITY OPTIONS
     5  Sec.
     6  1501.  Scope of chapter.
     7  1502.  (Reserved).
     8  1503.  Definitions.
     9  1504.  Program authorization.
    10  1505.  Regulations.
    11  1506.  Fund.
    12  1507.  Application and approval process.
    13  1508.  Federal funding.
    14  1509.  Limitation on decisions, findings and regulations of
    15         department.
    16  1510.  Program oversight and administration.
    17  1511.  Report to Governor and General Assembly.
    18  1512.  Coordination.
    19  1513.  Operating program.
    20  1514.  Asset improvement program.
    21  1515.  New initiatives program.
    22  1516.  Programs of Statewide significance.
    23  1517.  Program oversight and administration.
    24  1518.  Retroactive authority.
    25  § 1501.  Scope of chapter.
    26     This chapter relates to sustainable mobility options.
    27  § 1502.  (Reserved).
    28  § 1503.  Definitions.
    29     The following words and phrases when used in this chapter
    30  shall have the meanings given to them in this section unless the
    20070H1590B2342                 - 79 -     

     1  context clearly indicates otherwise:
     2     "Access to jobs project."  A project relating to the
     3  development and maintenance of transportation services designed
     4  to transport welfare recipients and eligible low-income
     5  individuals to and from jobs and activities related to their
     6  employment as defined under 49 U.S.C. § 5316 (relating to job
     7  access and reverse commute formula grants).
     8     "Americans with Disabilities Act."  The Americans with
     9  Disabilities Act of 1990 (Public Law 101-336, 104 Stat. 327).
    10     "Asset maintenance costs."  All vehicle maintenance expenses,
    11  nonvehicle maintenance and materials expenses and the cost of
    12  supplies used in the operation of local transportation
    13  organizations and transportation companies.
    14     "Award recipient."  A recipient of financial assistance under
    15  this chapter.
    16     "Capital expenditures."  All costs of capital projects,
    17  including, but not limited to, the costs of acquisition,
    18  construction, installation, start-up of operations, improvements
    19  and all work and materials incident thereto.
    20     "Capital project."
    21         (1)  A system of public passenger transportation,
    22     including rail transportation facilities used for public
    23     passenger transportation, which facilities may include the
    24     following:
    25             (i)  railway, street railway, subway, elevated and
    26         monorail passenger or passenger and rail rolling stock,
    27         including self-propelled and gallery cars, locomotives,
    28         passenger buses and wires, poles and equipment for the
    29         electrification of any of such rails, tracks and
    30         roadbeds, guideways, elevated structures, buildings,
    20070H1590B2342                 - 80 -     

     1         stations, terminals, docks, shelters and parking areas
     2         for use in connection with the rail transportation
     3         systems, interconnecting lines and tunnels to provide
     4         passenger or passenger and rail service connections
     5         between transportation systems, transportation routes,
     6         corridors and rights-of-way therefor, but not for public
     7         highways;
     8             (ii)  signal and communication systems necessary or
     9         desirable for the construction, operation or improvement
    10         of a public passenger system; or
    11             (iii)  any improvement or overhaul of any vehicle
    12         equipment or furnishings of any of the items specified
    13         under subparagraphs (i) and (ii) or any part or
    14         fractional and undivided co-ownership or leasehold
    15         interest in any one or combination of any of the items
    16         specified under subparagraphs (i) and (ii) that may be
    17         designated as a capital project by the Secretary of
    18         Transportation.
    19         (2)  The term shall include the acquisition of land
    20     necessary for the construction of a new project and debt
    21     service and the cost of issuance of bond notes and other
    22     evidences of indebtedness which a local transportation
    23     organization or transportation company is permitted to issue
    24     under any law of this Commonwealth.
    25     "Commonwealth capital bonds."  Evidence of debt incurred by
    26  the Commonwealth under the act of February 9, 1999 (P.L.1,
    27  No.1), known as the Capital Facilities Debt Enabling Act.
    28     "Community transportation service" or "shared ride service."
    29  Door-to-door demand transportation that is available to the
    30  general public on a nonexclusive basis, operates on a nonfixed
    20070H1590B2342                 - 81 -     

     1  route basis and charges a fare to all riders. The term does not
     2  include exclusive ride taxi service, charter and sightseeing
     3  service, nonpublic transportation, school bus and limousine
     4  service.
     5     "Community transportation system."  A person that provides
     6  community transportation service and contracts with the
     7  Department of Transportation to receive revenue replacement
     8  funds.
     9     "Department."  The Department of Transportation of the
    10  Commonwealth.
    11     "Financial assistance."  Grants or other types of financial
    12  support provided by the Department of Transportation under this
    13  chapter.
    14     "Fixed guideway system."  A fixed-route public transportation
    15  service that uses and occupies a separate right-of-way or rail
    16  line for the exclusive use of public transportation and other
    17  high occupancy vehicles or uses a fixed catenary system and a
    18  right-of-way usable by other forms of transportation. The term
    19  includes light rail, commuter rail, automated guideway transit,
    20  people movers, ferry boat service and fixed guideway facilities
    21  for buses such as bus rapid transit and high occupancy vehicles.
    22     "Fixed-route public transportation service."  Regularly
    23  scheduled general public transportation that is provided
    24  according to published schedules along designated routes, but
    25  that allows for route deviation within the published schedule,
    26  with specified stopping points for the taking on and discharging
    27  of passengers, including public bus and commuter rail systems
    28  and other department-approved service. The term does not include
    29  exclusive ride taxi service, charter or sightseeing service,
    30  nonpublic transportation, school bus and limousine service.
    20070H1590B2342                 - 82 -     

     1     "Fund."  The Public Transportation Trust Fund established
     2  under section 1506 (relating to fund).
     3     "Inflation index."  An index established by the Department of
     4  Transportation that is inflation sensitive.
     5     "Intercity bus service."  Passenger bus service of 35 miles
     6  or more in length that is provided with an over the road bus and
     7  operated between two noncontiguous urbanized areas, between an
     8  urbanized area located in one county and rural communities
     9  located in another county or between rural communities located
    10  in different counties and contains all of the following
    11  elements:
    12         (1)  Service that is operated for a fare on a regularly
    13     scheduled fixed-route basis.
    14         (2)  Service that is offered to and utilized by the
    15     general public without preconditions of advance reservation
    16     or membership in a particular organization.
    17     "Intercity passenger rail service."  Passenger railroad
    18  service that connects two or more urbanized areas and is
    19  determined by the Department of Transportation to qualify as
    20  intercity service, including commuter rail service.
    21     "Job access and reverse commute project."  A project funded
    22  by the Federal Transit Administration under Federal law.
    23     "Local transportation organization."  Any of the following:
    24         (1)  A political subdivision or a public transportation
    25     port or redevelopment authority organized under the laws of
    26     this Commonwealth or pursuant to an interstate compact or
    27     otherwise empowered to render, contract for the rendering or
    28     assist in the rendering of transportation service in a
    29     limited area in this Commonwealth, even though it may also
    30     render or assist in rendering transportation service in
    20070H1590B2342                 - 83 -     

     1     adjacent states.
     2         (2)  A nonprofit association that directly or indirectly
     3     provides public transportation service.
     4         (3)  A nonprofit association of public transportation
     5     providers operating within this Commonwealth.
     6     "Materials and supplies."  Those categories of expenses as
     7  specified in Uniform System of Accounts expense object class
     8  504, National Transit Database operating expenses form F 30,
     9  National Transit Database, Final Rule, Federal Transit
    10  Administration, dated January 15, 1993, or any successor.
    11     "Municipality."  A city, borough, incorporated town or
    12  township.
    13     "New fixed guideway system."  A newly-constructed fixed
    14  guideway system in a corridor or alignment where no such system
    15  previously existed.
    16     "New freedom program."  A public transportation program
    17  designed to provide funds to recipients for new public
    18  transportation services and public transportation alternatives
    19  beyond those required by the Americans with Disabilities Act of
    20  1990 (Public Law 101-336, 104 Stat. 327) that assist individuals
    21  with disabilities with transportation, including transportation
    22  to and from jobs and employment support services administered
    23  under the provisions of 49 U.S.C. § 5317 (relating to new
    24  freedom program.)
    25     "New start."  The term shall have the same meaning given it
    26  in 49 CFR § 611.5 (relating to definitions).
    27     "Nonurbanized area."  An area within this Commonwealth that
    28  does not fall within an area classified as "urbanized" by the
    29  United States Bureau of the Census of the United States
    30  Department of Commerce in the most recent Census of Population.
    20070H1590B2342                 - 84 -     

     1     "Nonvehicle maintenance expenses."  The categories of costs
     2  associated with the inspection, maintenance and repair of
     3  assets, other than vehicles, as specified in Uniform System of
     4  Accounts, expense function 042, National Transit Database
     5  operating expenses form, F 30, National Transit Database, Final
     6  Rule, Federal Transit Administration, dated January 15, 1993, or
     7  any successor.
     8     "Operating expenses."  Total expenses required to continue
     9  service to the public and to permit needed improvements in
    10  service which are not self-supporting and otherwise for any
    11  purpose in furtherance of public passenger transportation,
    12  including all State asset maintenance costs. The term does not
    13  include expenditures for capital projects unless specific
    14  approval is provided by the Department of Transportation.
    15     "Operating revenue."  The total revenue earned by a local
    16  transportation organization or a transportation company through
    17  its transit operations. The term includes all of the following:
    18         (1)  Passenger fares.
    19         (2)  Reimbursements provided in lieu of fares for senior
    20     passengers.
    21         (3)  Charter, school bus and advertising revenue.
    22         (4)  Other miscellaneous revenue such as public and
    23     private route guarantee funds.
    24     "Paratransit service."  Transit service operating on a
    25  nonfixed-route basis in order to provide complementary
    26  transportation service to persons who are functionally unable to
    27  use fixed-route transportation, as required by the Americans
    28  with Disabilities Act of 1990 (Public Law 101-336, 104 Stat.
    29  327).
    30     "Passengers."  The total of all originating passengers plus
    20070H1590B2342                 - 85 -     

     1  transfer passengers carried on fixed-route service and
     2  paratransit service.
     3     "Public passenger transportation."  Transportation within an
     4  area that includes a municipality or other built-up place that
     5  is appropriate in the judgment of the Department of
     6  Transportation to serve commuters or others in the locality,
     7  taking into consideration the local patterns and trends of
     8  growth by bus or rail or other conveyance, either publicly or
     9  privately owned, serving the general public. The term does not
    10  include school buses, charter or sightseeing services.
    11     "Revenue replacement funds."  Payments made to local
    12  transportation organizations and transportation companies to
    13  offset or partially offset fares.
    14     "Revenue vehicle hours."  The total amount of time calculated
    15  in hours during which vehicles are in service and available for
    16  public use in fixed-route service or paratransit service. The
    17  term does not include deadhead hours.
    18     "Revenue vehicle miles."  The total amount of distance
    19  calculated in miles during which vehicles are in service and
    20  available for public use in fixed-route service or paratransit
    21  service. The term does not include deadhead miles.
    22     "Reverse commute project."  A public transportation project
    23  designed to transport residents of urbanized and nonurbanized
    24  areas to suburban employment opportunities as defined under 49
    25  U.S.C. § 5316 (relating to job access and reverse commute
    26  formula grants).
    27     "Secretary."  The Secretary of Transportation of the
    28  Commonwealth.
    29     "Senior citizen."  A person who is at least 65 years of age.
    30     "Senior passenger."  A senior citizen who rides on fixed
    20070H1590B2342                 - 86 -     

     1  route service.
     2     "Tax Reform Code."  The act of March 4, 1971 (P.L.6, No.2),
     3  known as the Tax Reform Code of 1971.
     4     "Transportation company."  A person that renders public
     5  passenger transportation service.
     6     "Urbanized area."  A portion of this Commonwealth classified
     7  as urbanized by the United States Bureau of the Census of the
     8  United States Department of Commerce in the most recent Census
     9  of Population.
    10     "Vehicle maintenance expenses."  The categories of costs
    11  associated with the inspection, maintenance and repair of
    12  vehicles as specified in Uniform System of Accounts, expense
    13  function 041, National Transit Database operating expenses form
    14  F 30, National Transit Database, Final Rule, Federal Transit
    15  Administration, dated January 15, 1993, or any successor.
    16     "Welfare-to-work."  Any Federal or State program designed to
    17  move individuals from dependency on public welfare programs to
    18  self-sufficiency through paid work.
    19  § 1504.  Program authorization.
    20     (a)  General.--The department may, within the limitations
    21  provided in this chapter, incur costs directly or otherwise
    22  provide financial assistance for the purposes and activities
    23  enumerated in this chapter.
    24     (b)  Supplementation of Federal and local funds.--The
    25  authority conferred on the department by this section includes,
    26  but is not limited to, providing financial assistance for public
    27  passenger transportation purposes and to supplement Federal
    28  funding, local funding, or both.
    29  § 1505.  Regulations.
    30     (a)  General rule.--To effectuate and enforce the provisions
    20070H1590B2342                 - 87 -     

     1  of this chapter, the department shall promulgate necessary rules
     2  and regulations and prescribe conditions and procedures in order
     3  to assure compliance in carrying out the purposes for which
     4  financial assistance may be made under this chapter.
     5     (b)  Temporary regulations.--During the two-year period
     6  following the effective date of this section, the department
     7  shall promulgate temporary regulations, which regulations shall
     8  be exempt from the following:
     9         (1)  The act of October 15, 1980 (P.L.950, No.164), known
    10     as the Commonwealth Attorneys Act.
    11         (2)  Section 205 of the act of July 31, 1968 (P.L.769,
    12     No.240), referred to as the Commonwealth Documents Law.
    13         (3)  The act of June 25, 1982 (P.L.633, No.181), known as
    14     the Regulatory Review Act.
    15  Temporary regulations promulgated by the department under this
    16  subsection shall expire four years following the effective date
    17  of this section.
    18  § 1506.  Fund.
    19     (a)  Establishment and deposits.--A special fund is
    20  established within the State Treasury to be known as the Public
    21  Transportation Trust Fund. The following shall be deposited into
    22  the fund annually:
    23         (1)  Funds under 75 Pa.C.S. § 8915.3(8) (relating to
    24     lease of Interstate 80).
    25         (2)  The amounts made available to the department as an
    26     executive authorization and an appropriation for the 2007-
    27     2008 fiscal year and each fiscal year thereafter from the
    28     State Lottery Fund for the Free Transit Program for Senior
    29     Citizens established under the act of August 26, 1971
    30     (P.L.351, No.91), known as the State Lottery Law. These
    20070H1590B2342                 - 88 -     

     1     revenues shall be used to provide free public transportation
     2     service to senior citizens when passage is on fixed-route
     3     public transportation services, as authorized by Chapter 9 of
     4     the State Lottery Law and the free service shall be available
     5     to senior citizens at any time during the service provider's
     6     regular hours of service. With regard to passage on commuter
     7     rail service provided to senior citizens, the fare shall
     8     continue to be limited to $1 per trip as provided under
     9     Chapter 9 of the State Lottery Law, but the limitation shall
    10     be extended to all hours of commuter rail service.
    11         (3)  Commencing July 1, 2007, 1.22% of the money
    12     collected from the tax imposed under Article II of the Tax
    13     Reform Code, up to a maximum of $75,000,000.
    14         (4)  Commencing July 1, 2007, revenues deposited into the
    15     Public Transportation Assistance Fund established under
    16     Article XXIII of the Tax Reform Code to be used in accordance
    17     with subsection (b).
    18         (5)  Commencing July 1, 2007, 3.03% of the money
    19     collected from the tax imposed under Article III of the Tax
    20     Reform Code. Within 30 days of the close of a calendar month,
    21     3.03% of the taxes received under Article III of the Tax
    22     Reform Code in the prior calendar month shall be transferred
    23     to the fund.
    24         (6)  Any other appropriations to the fund.
    25     (b)  Use of revenues.--
    26         (1)  Money in the fund shall be used by the department to
    27     provide financial assistance to local transportation
    28     organizations, transportation companies and agencies and
    29     instrumentalities of the Commonwealth under this chapter, for
    30     costs incurred directly by the department in the
    20070H1590B2342                 - 89 -     

     1     administration of public passenger transportation programs,
     2     including under this chapter, and for all other purposes
     3     enumerated in this chapter.
     4         (2)  Money in the fund is appropriated on a continuing
     5     basis, upon approval of the Governor, to the department to be
     6     used as provided in this chapter. Money in the fund shall not
     7     lapse.
     8     (c)  Programs.--The fund is authorized to provide the
     9  following:
    10         (1)  Financial assistance related to operating expenses
    11     to be known as the "operating program." To the extent funds
    12     are available, an amount not less than $810,000,000 of the
    13     fund shall be allocated to this program in the first fiscal
    14     year following the effective date of this section. Money in
    15     the fund allocated to the operating program shall not be
    16     increased by more than the inflation index in any year.
    17         (2)  Financial assistance for improvements to capital
    18     assets, replacement of capital assets and expansion of
    19     capital assets to be known as the "asset improvement
    20     program." An amount equal to the remaining money in the fund,
    21     less the allocations under paragraphs (1), (3) and (4) shall
    22     be allocated to this program in the first fiscal year
    23     following the effective date of this section. Money in the
    24     fund for this program may include proceeds of Commonwealth
    25     capital bonds.
    26         (3)  Financial assistance to fund new or expansions of
    27     fixed guideway systems, to be known as the "new initiatives
    28     program." An amount not greater than $50,000,000 of the fund
    29     shall be allocated to this program in the first fiscal year
    30     following the effective date of this section.
    20070H1590B2342                 - 90 -     

     1         (4)  Financial assistance related to programs of
     2     Statewide significance as described in section 1516 (relating
     3     to programs of Statewide significance) to be known as the
     4     "programs of Statewide significance program." To the extent
     5     funds are available, an amount not less than $52,000,000 of
     6     the fund shall be allocated to this program in the first
     7     fiscal year following the effective date of this section.
     8  § 1507.  Application and approval process.
     9     (a)  Application.--An eligible applicant that wishes to
    10  receive financial assistance under this chapter shall submit a
    11  written application to the department, on a form developed by
    12  the department, which shall include the following:
    13         (1)  The name and address of the applicant.
    14         (2)  The name and telephone number of a contact person
    15     for the applicant.
    16         (3)  The amount and type of financial assistance
    17     requested and the proposed use of the funds.
    18         (4)  A statement as to the particular need for the
    19     financial assistance.
    20         (5)  A certified copy of a current resolution authorizing
    21     submission of the application if the applicant is a governing
    22     body.
    23         (6)  Evidence satisfactory to the department of the
    24     commitment for matching funds required under this chapter
    25     sufficient to match the projected financial assistance
    26     payments at the same times that the financial assistance
    27     payments are to be provided.
    28         (7)  Any other information the department deems necessary
    29     or desirable.
    30     (b)  Approval and award.--Upon determining that an applicant
    20070H1590B2342                 - 91 -     

     1  has complied with this chapter, applicable rules and regulations
     2  and any other requirement with respect to the financial
     3  assistance requested, the department may award financial
     4  assistance to the applicant, in which case the department and
     5  the applicant shall enter into a financial assistance agreement
     6  setting forth the terms and conditions upon which the financial
     7  assistance shall be used and the timing of payment of the funds.
     8     (c)  Restriction on use of funds.--Financial assistance under
     9  this chapter shall be used only for activities authorized
    10  originally unless the department grants a waiver to the award
    11  recipient for a different use of the funds. The department's
    12  regulations shall describe circumstances under which it will
    13  consider the waivers and information to be included in a request
    14  for a waiver. The maximum duration of a waiver shall be one
    15  year, and a request for a waiver shall include a plan of
    16  corrective action to demonstrate that the award recipient does
    17  not have an ongoing need to use financial assistance funds for
    18  activities other than those for which funds were originally
    19  awarded.
    20  § 1508.  Federal funding.
    21     (a)  General rule.--The department shall administer the
    22  program in this chapter with such flexibility as to permit full
    23  cooperation between Federal, State and local governments,
    24  agencies and instrumentalities, local transportation
    25  organizations and private interests, so as to result in as
    26  effective and economical a program as possible.
    27     (b)  Agreements.--The department may enter into agreements
    28  for mutual cooperation between or among the department and a
    29  Federal agency, local transportation organization or
    30  transportation company concerning a project to be funded with
    20070H1590B2342                 - 92 -     

     1  financial assistance under this chapter, including joint
     2  applications for Federal grants.
     3     (c)  General authority of department.--The department may do
     4  anything necessary or desirable to secure financial aid or
     5  cooperation of a Federal agency in a project funded with
     6  financial assistance under this chapter and to comply with a
     7  Federal statute or lawful requirement of a Federal agency
     8  authorized to administer a program of Federal aid to
     9  transportation. The department may enter into a protective
    10  agreement with organized labor to the extent required under 49
    11  U.S.C. § 5333 (relating to labor standards) in order to obtain
    12  Federal grant money for transportation assistance. Protective
    13  agreements shall be narrowly drawn and strictly construed to
    14  provide no more than the minimum protections required by the
    15  United States Department of Labor for the agreements.
    16     (d)  Direct recipients.--Local transportation organizations
    17  that are direct recipients of Federal funding shall be under no
    18  obligation to enter into contracts with the department for
    19  expenditure of those funds, except that the department may
    20  require a contract for expenditure of the State portion of the
    21  project assisted by those Federal funds.
    22  § 1509.  Limitation on decisions, findings and regulations of
    23             department.
    24     All decisions, findings and regulations made by the
    25  department pursuant to this chapter shall be for the purposes of
    26  this chapter only and shall not constitute evidence before a
    27  regulatory body of this Commonwealth or any other jurisdiction.
    28  § 1510.  Program oversight and administration.
    29     (a)  Review and oversight.--The department shall initiate and
    30  maintain a program of financial and performance review and
    20070H1590B2342                 - 93 -     

     1  oversight for all public transportation programs receiving
     2  financial assistance under this chapter. The department may
     3  perform independent financial audits of each award recipient.
     4  Audits shall be conducted in accordance with generally accepted
     5  auditing standards and shall ensure compliance by award
     6  recipients with this chapter, department regulations and
     7  policies and financial assistance agreements.
     8     (b)  State Rail Transit Safety Inspection Program.--The
     9  department may conduct a State Rail Transit Safety Inspection
    10  Program, as may be defined from time to time by the Federal
    11  Transit Administration, to meet oversight requirements of the
    12  Federal Transit Administration. The public transportation modes
    13  covered shall include heavy rail, light rail, trackless trolley
    14  bus and inclined plane services and related facilities.
    15  § 1511.  Report to Governor and General Assembly.
    16     The department shall file a public passenger transportation
    17  performance report with the Governor and the General Assembly by
    18  April 30 of each year, covering the prior fiscal year.
    19  § 1512.  Coordination.
    20     Coordination is required in regions where two or more award
    21  recipients have services or activities for which financial
    22  assistance is being provided under this chapter to assure that
    23  the services or activities are provided efficiently and
    24  effectively.
    25  § 1513.  Operating program.
    26     (a)  Eligible applicants.--The governing body of a
    27  municipality, county or instrumentality of either, a
    28  Commonwealth agency or instrumentality or a local transportation
    29  organization may apply for financial assistance under the
    30  operating program.
    20070H1590B2342                 - 94 -     

     1     (b)  Applications.--In addition to information required under
     2  section 1507 (relating to application and approval process), an
     3  application for financial assistance under this section shall
     4  include the applicant's reasonable estimates of operating
     5  revenue and government subsidies sufficient to cover all
     6  projected operating expenses.
     7     (c)  Distribution formula.--The following distribution
     8  formula shall be applied by the department with respect to the
     9  award of an operating grant:
    10         (1)  Twenty-five percent of the award amount shall be
    11     based on passengers;
    12         (2)  Ten percent of the award amount shall be based on
    13     senior passengers to offset free fares for senior passengers;
    14         (3)  Thirty-five percent of the award amount shall be
    15     based on revenue vehicle hours;
    16         (4)  Thirty percent of the award amount shall be based on
    17     revenue vehicle miles.
    18     (d)  Local match requirements.--
    19         (1)  Local or private cash funding shall be provided as a
    20     match in the amount of 20% of the financial assistance being
    21     provided. The following apply:
    22             (i)  For the Fiscal Year 2007-2008, the minimum of
    23         local or private cash funding required under this
    24         paragraph shall be:
    25                 (A)  the match required for Fiscal Year 2006-
    26             2007; and
    27                 (B)  5% of the amount under clause (A).
    28             (ii)  For each fiscal year after Fiscal Year 2007-
    29         2008 until the match required under this paragraph is
    30         reached, the minimum of local or private cash funding
    20070H1590B2342                 - 95 -     

     1         required under this paragraph shall be:
     2                 (A)  the match required for the immediately
     3             preceding fiscal year; and
     4                 (B)  5% of the amount under clause (A).
     5             (iii)  There is no maximum on the local or private
     6         cash funding required under this paragraph.
     7         (2)  For financial assistance to a local transportation
     8     organization, eligible local matching funds shall consist
     9     only of cash contributions provided by one or more
    10     municipalities or counties that are members of the local
    11     transportation organization. The amount of the match and the
    12     time period during which the match must continue to be
    13     available shall be specified in the financial assistance
    14     agreement. Funding provided by local and private entities,
    15     including advertising or naming rights, may be eligible for
    16     the match to the extent they provide for the cost of transit
    17     service that is open to the public. The following shall not
    18     be eligible for a local match:
    19             (i)  Any form of transit operating revenue or other
    20         forms of transit income provided by the local
    21         transportation organization.
    22             (ii)  Funds used to replace fares.
    23         (3)  A county or municipality in a metropolitan area
    24     which is a member of a local transportation organization is
    25     authorized to provide annual financial assistance from
    26     current revenues to the local transportation organization of
    27     which it is a member or enter into a long-term agreement for
    28     payment of money to assist in defraying the costs of
    29     operation, maintenance and debt service of the local
    30     transportation organization or of a particular public
    20070H1590B2342                 - 96 -     

     1     transportation project of a local transportation
     2     organization. The obligation of a municipality or county
     3     under an agreement pursuant to this paragraph shall not be
     4     considered to be a part of the indebtedness of the county or
     5     municipality, nor shall the obligation be deemed to impair
     6     the status of any indebtedness of the county or municipality
     7     which would otherwise be considered self-sustaining.
     8         (4)  The following shall apply to the Southeastern
     9     Pennsylvania Transportation Authority:
    10             (i)  The local match provided by each jurisdiction
    11         shall be calculated by multiplying the total match
    12         required for State funding by the total of route miles
    13         provided in that jurisdiction as a percentage of the
    14         total route miles operated in all jurisdictions. Where
    15         appropriate, a transportation system may calculate the
    16         local match by mode or division, or both.
    17             (ii)  The department shall suspend funding of any
    18         capital project within any county that fails to meet its
    19         required matching funds requirement under this
    20         subsection, and a transportation system shall not expand
    21         service into any county that fails to meet its required
    22         matching funds under this subsection. During any time in
    23         which a county fails to meet its required matching funds
    24         under this subsection the county's representative on the
    25         governing body of the transporting organization shall
    26         become a nonvoting member of the governing body until
    27         such time that the county meets its local matching
    28         requirements.
    29     (e)  Performance reviews.--
    30         (1)  The department may conduct performance reviews of an
    20070H1590B2342                 - 97 -     

     1     award recipient that receives financial assistance under this
     2     section to determine the efficiency and effectiveness of the
     3     financial assistance. Reviews shall be conducted at regular
     4     intervals as established by the department in consultation
     5     with the management of the award recipient. After completion
     6     of a review, the department shall issue a report that:
     7             (i)  highlights exceptional performance and
     8         identifies any problems that need to be resolved;
     9             (ii)  assesses performance, efficiency and
    10         effectiveness of the use of the funds;
    11             (iii)  makes recommendations on what follow-up
    12         actions are required to remedy each problem; and
    13             (iv)  provides an action plan documenting who should
    14         perform the recommended actions and a time frame within
    15         which they should be performed.
    16         (2)  The department shall deliver the report to the
    17     Governor, to the Transportation Committee of the Senate and
    18     to the Transportation Committee of the House of
    19     Representatives. The department's regulations shall contain a
    20     description of the impact on both the amount of, and future
    21     eligibility for, receipt of financial assistance under this
    22     chapter based upon the degree to which the local
    23     transportation organization complies with the recommendations
    24     in the report. The department shall develop a list of best
    25     practices revealed by the reports issued under this
    26     subsection and shall post them on the department's Internet
    27     website.
    28     (f)  Performance criteria.--Criteria used for the reviews
    29  conducted under subsection (e) shall consist of passengers per
    30  revenue vehicle hour, operating costs per revenue vehicle hour,
    20070H1590B2342                 - 98 -     

     1  operating revenue per revenue vehicle hour, operating costs per
     2  passenger and other items as the department may establish. The
     3  department's regulations shall set forth the minimum system
     4  performance criteria that an award recipient must satisfy.
     5     (g)  Failure to satisfy minimum performance criteria.--If a
     6  performance review conducted under subsection (e) reveals:
     7         (1)  that the performance of an award recipient's
     8     transportation system has decreased compared to performance
     9     determined through a prior review, the department may, upon
    10     the written request of an award recipient, waive any
    11     requirement for a reduction in the amount of financial
    12     assistance to be awarded under this section for a reasonable
    13     time period to allow the award recipient to bring the system
    14     back to the required performance level. The award recipient
    15     shall provide written justification for providing a time
    16     period longer than two years. In order to obtain the waiver
    17     for the period requested, the award recipient must do all of
    18     the following:
    19             (i)  Develop an action plan to improve system
    20         performance that contains key measurable milestones. The
    21         action plan must be acceptable to the department and must
    22         be approved by the department in writing.
    23             (ii)  Submit quarterly progress reports on the action
    24         plan to the department.
    25         (2)  The department shall review and evaluate the award
    26     recipient's progress to determine if the system has improved.
    27     If the system has improved, funding will be determined by the
    28     formula under subsection (c), and the award recipient will be
    29     eligible for full formula funding. If the system has not
    30     improved at the end of the time period established for
    20070H1590B2342                 - 99 -     

     1     improvement, the waiver will be withdrawn. Expenses incurred
     2     by the award recipient as a result of the failure of the
     3     award recipient's system to meet the minimum performance
     4     criteria shall be borne by the award recipient.
     5     (h)  Adjustments to minimum performance criteria.--Upon
     6  written request of a recipient of financial assistance under
     7  this section, the department may approve adjustments to the
     8  minimum performance criteria described in subsection (g) in a
     9  given year if situations arise that affect performance of the
    10  award recipient's system and are out of the award recipient's
    11  control. Examples are labor strikes, infrastructure failures and
    12  natural disasters. The request must include the award
    13  recipient's justification for the adjustment.
    14     (i)  Periodic review of formula.--The department, in
    15  consultation with all award recipients, shall review the
    16  distribution formula established under subsection (c) at least
    17  once every three years and, prior to the start of the next
    18  succeeding fiscal year, shall recommend adjustments it deems
    19  appropriate. If an adjustment results in a change of five
    20  percentage points or less in any category, the department shall
    21  forward a notice of the change to the Legislative Reference
    22  Bureau for publication in the Pennsylvania Bulletin, and the
    23  change shall take effect at the commencement of the next fiscal
    24  year. If an adjustment results in a change in excess of five
    25  percentage points in any category, the change shall be
    26  incorporated into the department's regulations by amendment and
    27  shall take effect at the commencement of the next fiscal year
    28  following promulgation of the amendment.
    29     (j)  Needs-based adjustment.--In order to allow an award
    30  recipient that was receiving financial assistance under former
    20070H1590B2342                 - 100 -    

     1  Chapter 13 (relating to public transportation assistance) prior
     2  to the effective date of this section to transition into the
     3  funding formula established under subsection (c), the department
     4  shall provide the award recipient, as part of the award under
     5  this section, with a needs-based adjustment. The needs-based
     6  adjustment shall be calculated by increasing the amount that the
     7  award recipient received under Chapter 13 for operating expenses
     8  and asset maintenance costs in the 2005-2006 fiscal year and
     9  increasing the resulting amount by an adjustment factor to
    10  assure a funding level consistent with the operating funding
    11  needs as identified by the department. Funds remaining after the
    12  needs-based adjustment is applied shall be set aside in an
    13  operating reserve account to be used at the department's
    14  discretion for short-term public passenger transportation needs.
    15  The department's regulations shall establish the manner in which
    16  the funds in the reserve account may be used.
    17     (k)  Growth caps.--Each fiscal year after the fiscal year in
    18  which the department provides a needs-based adjustment under
    19  subsection (i), the department shall determine the maximum
    20  percentage increase that an award recipient shall be eligible to
    21  receive for operating expenses in addition to an increase tied
    22  to the inflation index amount. The maximum percentage increase
    23  shall be capped at the inflation index rate of the award
    24  recipient's transportation system's passengers per revenue hour,
    25  or revenue per revenue vehicle hour performance, falls below
    26  peer system average or if the operating cost per revenue hour or
    27  operating cost per passenger exceeds the peer system average.
    28  Notwithstanding the provisions of this subsection, money
    29  available for financial assistance under this section shall at
    30  all times be capped by the amount of money in the fund allocated
    20070H1590B2342                 - 101 -    

     1  for the operating program.
     2     (l)  Operating reserve.--The department may establish a
     3  limitation on the amount of financial assistance awarded under
     4  this section that may be carried over for use in subsequent
     5  fiscal years.
     6     (m)  Certification.--The Commonwealth shall not provide
     7  financial assistance to a municipality under this section unless
     8  the municipality certifies the amount of its local match under
     9  subsection (d).
    10  § 1514.  Asset improvement program.
    11     (a)  Eligible applicants.--A local transportation
    12  organization, an agency or instrumentality of the Commonwealth,
    13  an entity responsible for coordinating community transportation
    14  program services, or any other person the department deems to be
    15  eligible may apply to the department for financial assistance
    16  under the asset improvement program. The department shall
    17  develop and maintain four-year and twelve-year plans that
    18  summarize the capital projects and financial assistance for
    19  capital projects based upon cash flow and revenue projections
    20  for the fund.
    21     (b)  Applications.--In addition to information required under
    22  section 1507 (relating to application and approval process), an
    23  application for financial assistance under this section shall
    24  include the following:
    25         (1)  Evidence satisfactory to the department that the
    26     proposed capital project is included in the first year of the
    27     applicant's four-year capital program and its federally
    28     approved Transportation Improvement Program.
    29         (2)  If an applicant is requesting financial assistance
    30     for replacement of capital assets, evidence satisfactory to
    20070H1590B2342                 - 102 -    

     1     the department that the capital assets to be replaced have
     2     exceeded the useful life criteria as defined by the
     3     department. At its discretion, the department may approve
     4     funding to replace capital assets that do not exceed the
     5     useful life criteria if the applicant provides documentation
     6     acceptable to the department to justify the early replacement
     7     of the capital assets.
     8         (3)  If the applicant is requesting financial assistance
     9     for expansion of capital assets, evidence satisfactory to the
    10     department that the applicant will have sufficient future
    11     annual operating funds to support the proposed expansion of
    12     the assets.
    13         (4)  Any other information required by the department,
    14     including a return on investment analysis or a life cycle
    15     cost analysis, or both.
    16     (c)  Local match requirements.--Financial assistance under
    17  this section shall be matched by local or private cash funding
    18  in an amount not less than 20% of the amount of the financial
    19  assistance. The source of funds for the local match shall be
    20  subject to the requirements of section 1513(d) (relating to
    21  operating program). Each capital project shall be based on the
    22  plan approved by the department.
    23     (d)  Conditions for receipt of bond funding.--An applicant
    24  may receive proceeds of Commonwealth capital bonds from the fund
    25  for financial assistance under this section if all of the
    26  following conditions are met:
    27         (1)  The applicant's project has been authorized by a
    28     capital budget project itemization act.
    29         (2)  The applicant's project shall have been included in
    30     the department's approved annual release request approving
    20070H1590B2342                 - 103 -    

     1     the use of the funds for the proposed capital project in the
     2     fiscal year in which the funds are expected to be expended.
     3         (3)  The department shall have approved the underlying
     4     application for the capital project.
     5         (4)  The project has a 20-year or longer useful life.
     6     (e)  Priorities.--The award of financial assistance under
     7  this section shall be subject to the following set of priorities
     8  in descending order of significance unless a compelling return
     9  on investment analysis for a project in a lower significant
    10  category is provided to and approved by the department:
    11         (1)  Funds required to support existing local bond issues
    12     currently supported with State revenue sources, such as debt
    13     service and asset leases. The Commonwealth pledges to and
    14     agrees with any person, firm or corporation holding any bonds
    15     previously issued by, or any other debt incurred by, a local
    16     transportation organization, and secured in whole or part by
    17     a pledge of the funds provided to the local transportation
    18     organization from the Public Transportation Assistance Fund
    19     established under Article XXIII of the Tax Reform Code, that
    20     the Commonwealth will not limit or alter rights vested in a
    21     local transportation organization in any manner inconsistent
    22     with obligations of the local transportation organization to
    23     the obligees of the local transportation organization until
    24     all bonds previously issued or other debt incurred, together
    25     with the interest thereon, is fully paid or provided for.
    26         (2)  Funds required to match federally approved capital
    27     projects funded under 49 U.S.C. §§ 5307 (relating to
    28     urbanized area formula grants) and 5309 (relating to capital
    29     investment grants and loans) and other federally approved
    30     capital projects.
    20070H1590B2342                 - 104 -    

     1         (3)  Other non-Federal capital projects as determined by
     2     the department, which shall be further subject to the
     3     following set of priorities in descending order of
     4     significance:
     5             (i)  Essential emergency asset improvement projects.
     6             (ii)  Standard replacement of existing assets that
     7         have exceeded their useful life.
     8             (iii)  Asset improvement projects to extend the
     9         useful life of the affected assets.
    10             (iv)  Acquisition of new assets and other acceptable
    11         purposes, other than projects to be funded under the new
    12         initiatives program, as determined by the department.
    13     (f)  Bonding by award recipients.--With the approval of the
    14  department, an award recipient that is allowed by its enabling
    15  statute to issue bonds may do so for the purpose of financing a
    16  multiyear capital project. The bonds shall be issued in
    17  accordance with the provisions of the award recipient's enabling
    18  statute. The department shall enter into an agreement with the
    19  award recipient providing that payments of the capital funds
    20  sufficient to satisfy requirements of the bonds issued be made
    21  directly to the trustee and bond holders until such time as the
    22  bonds are retired.
    23     (g)  Certification.--The Commonwealth shall not provide
    24  financial assistance to a municipality under this section unless
    25  the municipality certifies the amount of its local match under
    26  subsection (c).
    27  § 1515.  New initiatives program.
    28     (a)  Eligible applicants.--Persons eligible to apply for
    29  financial assistance under the asset improvement program shall
    30  also be eligible to apply for financial assistance under the new
    20070H1590B2342                 - 105 -    

     1  initiatives program.
     2     (b)  Applications.--In addition to the information required
     3  under section 1507 (relating to application and approval
     4  process), an application for financial assistance under this
     5  section shall include all of the information required in an
     6  application for financial assistance under section 1514
     7  (relating to asset improvement program). If the application is
     8  for a proposed expansion of a capital asset, the application
     9  shall also contain evidence satisfactory to the department that
    10  the applicant will have sufficient future annual operating funds
    11  to support the proposed expansion.
    12     (c)  Limitation.--In making awards of financial assistance
    13  under this section, the department shall give priority to
    14  applicants that intend to use the funds in satisfaction of the
    15  local matching portion of federally approved projects funded
    16  pursuant to 49 U.S.C. § 5309 (relating to capital investment
    17  grants and loans). The department may fund projects that do not
    18  receive funding from the Federal New Starts Program if the
    19  applicant can provide sufficient justification that the project
    20  can meet all of the following requirements:
    21         (1)  Investments in existing service areas have been
    22     optimized.
    23         (2)  An analysis reveals a reasonable return on
    24     investment.
    25         (3)  Identification of the public benefit of the project.
    26         (4)  Required local funds are available to pay any
    27     required local match for the project and ongoing operating
    28     costs.
    29         (5)  There exists local technical ability and capacity to
    30     manage, construct and operate the project.
    20070H1590B2342                 - 106 -    

     1         (6)  The project is supported by the adoption of an
     2     integrated land use plan by local municipalities.
     3     (d)  Local match requirements.--Financial assistance under
     4  this section shall be matched by local or private cash funding
     5  in an amount not less than 100% of the amount of the grant. The
     6  source of funds for the local match shall be subject to the
     7  requirements of section 1513(d) (relating to operating program).
     8     (e)  Certification.--The Commonwealth shall not provide
     9  financial assistance to a municipality under this section unless
    10  the municipality certifies the amount of its local match under
    11  subsection (d).
    12  § 1516.  Programs of Statewide significance.
    13     (a)  General rule.--Money in the fund allocated for programs
    14  of Statewide significance shall be used by the department to
    15  support public transportation programs, activities and services
    16  not otherwise fully funded through the operating program,
    17  capital program or asset improvement program. These include the
    18  following:
    19         (1)  The Persons with Disabilities Program.
    20         (2)  Intercity and commuter rail and bus services.
    21         (3)  Community transportation capital and service
    22     stabilization.
    23         (4)  The Welfare to Work Program and matching funds for
    24     Federal programs with similar intent.
    25         (5)  Demonstration and research projects.
    26         (6)  Technical assistance.
    27         (7)  (Reserved).
    28         (8)  (Reserved).
    29         (9)  (Reserved).
    30         (10)  (Reserved).
    20070H1590B2342                 - 107 -    

     1         (11)  Other public passenger transportation programs
     2     initiated by the department.
     3     (b)  Persons with disabilities.--The department shall
     4  establish and administer a program providing reduced fares to
     5  persons with disabilities on community transportation services
     6  and to provide financial assistance for start-up, administrative
     7  and capital expenses related to reduced fares for persons with
     8  disabilities. All of the following shall apply:
     9         (1)  A community transportation system operating in the
    10     Commonwealth other than in counties of the first and second
    11     class may apply for financial assistance under this
    12     subsection.
    13         (2)  The department may award financial assistance under
    14     this subsection for program start-up and for continuing
    15     capital expenses to offset administrative and capital
    16     expenses. For community transportation trips made by eligible
    17     persons with disabilities, financial assistance may be
    18     awarded to an eligible community transportation system to
    19     reimburse the system for up to 85% of the fare established
    20     for the general public for each trip which is outside of a
    21     fixed-route and paratransit service areas and not eligible
    22     for funding from any other program or funding source. The
    23     person making the trip or an approved third-party sponsor
    24     shall contribute the greater of 15% of the fare established
    25     for the general public or the Americans with Disabilities Act
    26     complementary paratransit fare.
    27     (c)  Intercity transportation.--The department is authorized
    28  to provide financial support for an efficient and coordinated
    29  intercity common carrier surface transportation program,
    30  consisting of both intercity rail and intercity bus
    20070H1590B2342                 - 108 -    

     1  transportation, with the intent of sustaining strong intercity
     2  connections. All of the following shall apply:
     3         (1)  An intercity passenger rail service provider, a
     4     local transportation organization, an agency or
     5     instrumentality of the Commonwealth and a transportation
     6     company that provides intercity public transportation service
     7     may apply for financial assistance under this subsection. The
     8     department is authorized to enter into joint service
     9     agreements with a railroad company, any other agency or
    10     instrumentality of the Commonwealth, a Federal agency or an
    11     agency or instrumentality of any other jurisdiction relating
    12     to property, buildings, structures, facilities, services,
    13     rates, fares, classifications, dividends, allowances or
    14     charges, including charges between intercity rail passenger
    15     service facilities, or rules or regulations pertaining
    16     thereto, for or in connection with or incidental to
    17     transportation in whole or in part upon intercity rail
    18     passenger service facilities.
    19         (2)  Operating assistance and capital assistance may be
    20     provided for intercity bus and rail services as determined by
    21     the department.
    22         (3)  For financial assistance to a transportation
    23     company, eligible matching funds shall consist only of cash
    24     income generated by the transportation company from its
    25     activities, other than the provision of public passenger
    26     transportation service, and contributed by the transportation
    27     company in the amount and for the time period specified in
    28     the financial assistance agreement.
    29         (4)  Local match requirements are as follows:
    30             (i)  For intercity bus operating and capital
    20070H1590B2342                 - 109 -    

     1         assistance, the department shall require a local match by
     2         local or private cash funding in an amount equal to 100%
     3         of the amount of the financial assistance being provided.
     4             (ii)  For intercity rail operating and capital
     5         assistance, the department shall require a local match on
     6         a case-by-case basis, taking into account the best
     7         interests of the Commonwealth.
     8         (5)  For purposes of this subsection, "local match" is
     9     defined as local revenue obtained from other nonsubsidized
    10     services, such as charter, school bus or profits realized
    11     from other intercity bus services. Local match shall not
    12     include any funds received from Federal or State sources.
    13     (d)  Community transportation.--
    14         (1)  The department is authorized to provide financial
    15     assistance under this section for all of the following:
    16             (i)  Capital expenditures for the provision of
    17         community transportation service.
    18             (ii)  To stabilize current service and fares.
    19             (iii)  To provide advice or technical assistance to
    20         analyze and enhance community transportation system
    21         resources and services.
    22             (iv)  To maximize available funding including Federal
    23         dollars.
    24             (v)  To ensure equitable cost sharing.
    25         (2)  The governing body of a county, other than a county
    26     of the first or second class, or a transportation company
    27     designated by the governing body of the county as the
    28     coordinator of community transportation service, and an
    29     agency or instrumentality of the Commonwealth may apply for
    30     financial assistance under this subsection subject to all of
    20070H1590B2342                 - 110 -    

     1     the following:
     2             (i)  An applicant for financial assistance for
     3         capital expenditures for the provision of public
     4         community transportation service shall certify to the
     5         department that it has taken all reasonable steps to
     6         coordinate local service for the elderly and persons with
     7         disabilities and that the services to be offered with the
     8         capital assets do not duplicate existing fixed-route
     9         services.
    10             (ii)  The governing body of a county or the
    11         coordinator described under this paragraph shall not be
    12         eligible for financial assistance for service
    13         stabilization if any of the following apply:
    14                 (A)  The coordinator receives financial
    15             assistance under the operating program established
    16             under this chapter.
    17                 (B)  The coordinator is a private for-profit
    18             provider.
    19         (3)  Financial assistance for service stabilization may
    20     only be provided for the following purposes:
    21             (i)  Short-term, long-term and strategic planning.
    22             (ii)  Technology investment.
    23             (iii)  Training programs designed to enhance
    24         transportation management and staff expertise.
    25             (iv)  Offsetting operating expenses that cannot be
    26         covered by fare revenue due to emergencies.
    27             (v)  Marketing activities.
    28             (vi)  Other stabilization purposes approved by the
    29         department.
    30         (4)  The department shall give high priority to providing
    20070H1590B2342                 - 111 -    

     1     financial assistance under this subsection as match for
     2     Federal funding to support capital projects for community
     3     transportation systems.
     4         (5)  The department shall conduct a study to evaluate the
     5     effectiveness and efficiency of community transportation
     6     service delivery as it relates to human service programs. The
     7     Department of Public Welfare, the Office of the Budget and
     8     the Department of Aging and other appropriate Commonwealth
     9     agencies identified by the department shall participate and
    10     fully support the study to achieve the intended purposes.
    11     Within two years following the effective date of this
    12     section, these agencies shall make recommendations to the
    13     Governor and the Majority and Minority chairpersons of the
    14     Transportation Committee of the Senate and the Majority and
    15     Minority chairpersons of the Transportation Committee of the
    16     House of Representatives for improving coordination and
    17     efficiency of human services and community transportation.
    18     (e)  Welfare-to-work and Federal programs match.--The
    19  department is authorized to provide financial assistance under
    20  this section to design and implement projects and services and
    21  to reimburse award recipients for the expenses associated with
    22  the projects and services that identify and address public
    23  passenger transportation and related barriers preventing
    24  individuals eligible for participation in the Federal welfare-
    25  to-work program from securing and maintaining employment and
    26  from accessing community services and facilities. All of the
    27  following shall apply:
    28         (1)  A local transportation organization, a
    29     transportation company designated by a county as the
    30     coordinator of community transportation services and any
    20070H1590B2342                 - 112 -    

     1     other person approved by the department may apply to the
     2     department for financial assistance under this subsection.
     3         (2)  Financial assistance awarded under this subsection
     4     shall be used for any of the following purposes:
     5             (i)  Fixed-route service subsidy.
     6             (ii)  Contracted transportation services.
     7             (iii)  Fixed-route fare discounts.
     8             (iv)  Community transportation fare discounts.
     9             (v)  Taxi fare discounts.
    10             (vi)   Mileage reimbursement.
    11             (vii)  Vehicle purchase, insurance, maintenance and
    12         repair.
    13             (viii)  Driver education classes.
    14             (ix)  Administrative expenses.
    15             (x)  Case management expenses.
    16             (xi)  Any other activities consistent with the
    17         transportation related elements of the welfare-to-work
    18         program.
    19         (3)  The department shall give high priority to providing
    20     financial assistance under this subsection as match for
    21     Federal funding to support projects with similar purposes and
    22     eligible uses, including the Federal Job Access Reverse
    23     Commute and New Freedoms programs.
    24     (f)  Technical assistance and demonstration.--The department
    25  is authorized to provide financial assistance under this section
    26  for technical assistance, research and short-term demonstration
    27  projects. All of the following shall apply:
    28         (1)  A local transportation organization or an agency or
    29     instrumentality of the Commonwealth may apply to the
    30     department for financial assistance under this subsection.
    20070H1590B2342                 - 113 -    

     1         (2)  Financial assistance provided under this subsection
     2     may be used for reimbursement for any approved operating or
     3     capital costs related to technical assistance and
     4     demonstration program projects. Financial assistance for
     5     short-term demonstration projects may be provided at the
     6     department's discretion on an annual basis based on the level
     7     of financial commitment provided by the award recipient to
     8     provide ongoing future funding for the project as soon as the
     9     project meets the criteria established by the department and
    10     the award recipient. Financial assistance for this purpose
    11     shall not be provided for more than three fiscal years.
    12     Financial assistance may be provided to meet any short-term
    13     emergency need that requires immediate attention and cannot
    14     be funded through other sources.
    15         (3)  Financial assistance under this subsection provided
    16     to a local transportation organization shall be matched by
    17     local or private cash funding in an amount not less than 3
    18     1/3% of the amount of the financial assistance being
    19     provided. The sources of funds for the local match shall be
    20     subject to the requirements of section 1513(d) (relating to
    21     operating program).
    22  § 1517.  Program oversight and administration.
    23     The department is authorized to use available money in the
    24  fund to cover the costs incurred by the department in
    25  administering all of its public passenger transportation funding
    26  programs, including those established under this chapter, and
    27  incurred in the carrying out of its responsibilities with
    28  respect to the programs.
    29  § 1518.  Retroactive authority.
    30     (a)  Date of project.--Financial assistance may be awarded
    20070H1590B2342                 - 114 -    

     1  under this chapter by the department with reference to an
     2  appropriate project irrespective of when it was first commenced
     3  or considered and regardless of whether costs with respect to
     4  the project were incurred prior to the time the financial
     5  assistance is applied for or provided.
     6     (b)  Capital projects.--
     7         (1)  For capital projects, the applicant must obtain
     8     approval in writing from the department prior to incurring
     9     any expenses for which the applicant may later seek
    10     reimbursement.
    11         (2)  Notwithstanding paragraph (1), approval by the
    12     department shall not constitute an approval of the
    13     applicant's underlying request for financial assistance.
    14         (3)  By providing preapproval under this subsection, the
    15     department may recognize any local funds already expended as
    16     satisfying the local match requirement if and when the
    17     applicant's application is approved.
    18     Section 2.1.  Sections 1713(a) and 1715(a) of Title 74 are
    19  amended to read:
    20  § 1713.  Appointment of board members.
    21     (a)  Appointment.--Except as provided in subsection (d) with
    22  respect to the continuation in office of members of the board of
    23  any authority established under the former provisions of Article
    24  III of the act of January 22, 1968 (P.L.42, No.8), known as the
    25  Pennsylvania Urban Mass Transportation Law, or the former
    26  provisions of Chapter 15 (relating to metropolitan
    27  transportation authorities), at any time after the effective
    28  date of this chapter:
    29         (1)  The Governor may appoint as a member of the board
    30     one person who may be an ex officio appointee from among the
    20070H1590B2342                 - 115 -    

     1     various officials in this Commonwealth and whose term as a
     2     board member shall run concurrently with that of his
     3     Commonwealth position, if any, or the term of the appointing
     4     Governor, whichever is shorter.
     5         (2)  The Majority Leader and the Minority Leader of the
     6     Senate and the Majority Leader and the Minority Leader of the
     7     House of Representatives may each appoint one person to serve
     8     as a board member, whose term shall be concurrent with the
     9     term and who shall serve at the pleasure of the appointing
    10     legislative leader.
    11         (3)  The county commissioners or the county council in
    12     each county and, in any county of the first class containing
    13     a city of the first class, the mayor, with the approval of
    14     the city council, may appoint [two] persons from each county
    15     to serve as board members[.] as follows:
    16             (i)  Two members for counties which contribute less
    17         than 7.5% of total local match required for State
    18         operating financial assistance.
    19             (ii)  Three members for counties which contribute at
    20         least 7.5% but less than 25% of total local match
    21         required for State operating financial assistance.
    22             (iii)  Four members for counties which contribute at
    23         least 25% of total local match required for State
    24         operating financial assistance.
    25         (4)  On the effective date of this paragraph, any county
    26     which has a member of the board in excess of the number
    27     allotted under paragraph (3) will lose an appointment to the
    28     board upon the expiration of the term of the member whose
    29     term expires next, or if there is a vacancy, may not appoint
    30     a person to fill the vacancy.
    20070H1590B2342                 - 116 -    

     1         (5)  The Secretary of Budget shall be a nonvoting member.
     2         (6)  The Secretary of Transportation or his deputy
     3     secretary shall be a nonvoting member.
     4         (7)  Each member appointed by a county shall have a
     5     professional background  expertise or substantial experience
     6     in one or more of the following areas:
     7             (i)  Transportation.
     8             (ii)  Finance.
     9             (iii)  Law.
    10             (iv)  Tourism.
    11             (v)  Ridership community groups.
    12             (vi)  Land use and urban planning.
    13     * * *
    14  § 1715.  Meetings, quorum, officers and records.
    15     (a)  Meetings.--Regular meetings of the board shall be held
    16  in the metropolitan area at least once in each calendar month
    17  except July or August, the time and place of the meetings to be
    18  fixed by the board. A majority of the board shall constitute a
    19  quorum for the transaction of business. All action of the board
    20  shall be by resolution, and the affirmative vote of a majority
    21  of all the members shall be necessary for the adoption of any
    22  resolution. No action by the board to which an express objection
    23  has been made, under this section, by a board member or members
    24  representing a county or counties having one-third or more of
    25  the population of the metropolitan area, as determined by the
    26  most recent decennial census, shall be carried unless supported
    27  at a subsequent regular meeting of the board by the votes of at
    28  least [three-quarters] 70% of the voting membership of the
    29  board. In case of disagreement between members representing the
    30  same county, each member shall be deemed to represent [one-half]
    20070H1590B2342                 - 117 -    

     1  an equal proportion of the population of that county.
     2     * * *
     3     Section 2.2.  Title 74 is amended by adding a chapter to
     4  read:
     5                             CHAPTER 81
     6                              TURNPIKE
     7  Sec.
     8  8101.  Scope of chapter.
     9  8102.  Definitions.
    10  8103.  (Reserved).
    11  8104.  Status of turnpike revenue bonds, notes or other
    12         obligations.
    13  8105.  Commission.
    14  8106.  Exercise of commission powers.
    15  8107.  Commission powers and duties.
    16  8108.  Expenses and bonding of commission members.
    17  8109.  Acquisition of property rights by commission.
    18  8110.  Procedural requirements of acquisition.
    19  8111.  Entry and possession of property condemned.
    20  8112.  Issuance of turnpike revenue bonds or other
    21         obligations.
    22  8113.  Obligation proceeds restricted and lien created.
    23  8114.  Trust indenture authorized.
    24  8115.  Commission and obligations tax exempt.
    25  8116.  Collection and disposition of tolls and other revenue.
    26  8116.1.  Electronic toll collection.
    27  8117.  Refunding bonds.
    28  8118.  Rights of obligation holders and trustees.
    29  8119.  Authority granted to secretary.
    30  8120.  Construction of chapter.
    20070H1590B2342                 - 118 -    

     1  § 8101.  Scope of chapter.
     2     This chapter relates to turnpike organization, extension and
     3  toll road conversion.
     4  § 8102.  Definitions.
     5     The following words and phrases when used in this chapter
     6  shall have the meanings given to them in this section unless the
     7  context clearly indicates otherwise:
     8     "Commission."  The Pennsylvania Turnpike Commission.
     9     "Cost of the turnpikes."  The term includes the cost of:
    10         (1)  Constructing turnpikes, connecting roads, storm
    11     water management systems, tunnels and bridges.
    12         (2)  Lands, property rights, rights-of-way, easements and
    13     franchises acquired by purchase or other means deemed
    14     necessary or convenient for construction.
    15         (3)  Machinery and equipment, financing charges and
    16     interest prior to construction, during construction and for
    17     one year after completion of construction.
    18         (4)  Traffic estimates, engineering and legal expenses,
    19     plans, specifications, surveys, cost and revenue estimates,
    20     other expenses necessary or incident to determining the
    21     feasibility or practicability of the enterprise,
    22     administrative and legal expense and other expenses as may be
    23     necessary or incident to financing authorized in this
    24     chapter.
    25         (5)  Condemnation or other means of acquisition of
    26     property necessary for the construction and operation.
    27         (6)  An obligation or expense contracted for by the
    28     commission with the department or with the United States or a
    29     Federal agency for any of the following:
    30             (i)  Traffic surveys, preparation of plans and
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     1         specifications, supervision of construction and other
     2         engineering and administrative and legal services and
     3         expenses in connection with the construction of the
     4         turnpike or any of the connecting roads, storm water
     5         management systems, tunnels and bridges.
     6             (ii)  Costs of reimbursing the Federal Government
     7         pursuant to the mandates of the Federal law for Federal
     8         funds expended for interstate or other highways which are
     9         to be made part of the turnpike system pursuant to this
    10         chapter.
    11     "Department."  The Department of Transportation of the
    12  Commonwealth.
    13     "Electronic toll collection."  A system of collecting tolls
    14  or charges that is capable of charging an account holder for the
    15  prescribed toll by electronic transmission of information
    16  between a device on a vehicle and a device in a toll lane at a
    17  toll collection facility.
    18     "Lessee."  A person, corporation, firm, partnership, agency,
    19  association or organization that rents, leases or contracts for
    20  the use of a vehicle and has exclusive use of the vehicle for
    21  any period of time.
    22     "Lessor."  A person, corporation, firm, partnership, agency,
    23  association or organization engaged in the business of renting
    24  or leasing vehicles to any lessee under a rental agreement,
    25  lease or other agreement under which the lessee has the
    26  exclusive use of the vehicle for any period of time.
    27     "Operator."  An individual that uses or operates a vehicle
    28  with or without permission of the owner.
    29     "Owner."  Except as provided under section 8116.1(e)
    30  (relating to electronic toll collection), an individual,
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     1  copartnership, association or corporation having title or
     2  interest in a property right, easement or franchise authorized
     3  to be acquired under this chapter.
     4     "Secretary."  The Secretary of Transportation of the
     5  Commonwealth.
     6     "Toll road conversion."  The inclusion within the turnpike
     7  system and the imposition of tolls on the system of a highway
     8  that is presently toll free.
     9     "Turnpikes."  Any of the following:
    10         (1)  The turnpike, turnpike extensions and turnpike
    11     improvements.
    12         (2)  Toll-free roads to be converted to toll roads under
    13     this chapter.
    14         (3)  Related storm water management systems, tunnels and
    15     bridges, property rights, easements and franchises deemed
    16     necessary or convenient for the construction or the operation
    17     of the turnpike, turnpike extension, turnpike improvement and
    18     toll-free roads.
    19     "Vehicle."  The term as it is defined under 75 Pa.C.S. § 102
    20  (relating to definitions).
    21     "Violation enforcement system."  A vehicle sensor, placed in
    22  a location to work in conjunction with a toll collection
    23  facility, which automatically produces a videotape or
    24  photograph, microphotograph or other recorded image of the rear
    25  portion of each vehicle at the time the vehicle is used or
    26  operated in violation of the toll collection regulations. The
    27  term includes any other technology which identifies a vehicle by
    28  photographic, electronic or other method.
    29  § 8103.  (Reserved).
    30  § 8104.  Status of turnpike revenue bonds, notes or other
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     1             obligations.
     2     (a)  General rule.--The turnpike revenue bonds, notes or
     3  other obligations issued under the provisions of this chapter
     4  shall not be deemed to be a debt of the Commonwealth or a pledge
     5  of the faith and credit of the Commonwealth, but bonds, notes or
     6  other obligations shall be payable solely from the revenues of
     7  the commission, including tolls, or from funds as may be
     8  available to the commission for that purpose.
     9     (b)  Statement required.--All bonds, notes or other
    10  obligations shall contain a statement on their face that the
    11  Commonwealth is not obligated to pay the same or the interest
    12  thereon except from revenues of the commission, including tolls,
    13  or from funds as may be available to the commission for that
    14  purpose and that the faith and credit of the Commonwealth is not
    15  pledged to the payment of the principal or interest of the
    16  bonds, notes or other obligations.
    17     (c)  Pledge of Commonwealth prohibited.--The issuance of
    18  turnpike revenue bonds, notes or other obligations under the
    19  provisions of this chapter shall not directly or indirectly or
    20  contingently obligate the Commonwealth to levy or to pledge any
    21  form of taxation or to make any appropriation for their payment.
    22  § 8105.  Commission.
    23     (a)  Members.--
    24         (1)  Notwithstanding any other law to the contrary,
    25     vacancies in the membership of the commission on or after the
    26     effective date of this subsection shall be filled as follows:
    27             (i)  The first vacancy shall be filled by a member to
    28         be appointed by the Majority Leader of the Senate.
    29             (ii)  The second vacancy shall be filled by a member
    30         to be appointed by the Minority Leader of the Senate.
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     1             (iii)  The succeeding two vacancies shall be filled
     2         by members to be appointed by the Governor.
     3         (2)  Paragraph (1) shall apply to a vacancy on the
     4     commission which has occurred for any reason, but only as to
     5     a member serving on the effective date of this subsection.
     6         (3)  Notwithstanding any other law to the contrary, the
     7     Majority Leader of the House of Representatives and the
     8     Minority Leader of the House of Representatives shall each
     9     appoint one additional member to serve on the commission.
    10         (4)  A vacancy occurring during the term of a member
    11     appointed in accordance with this subsection shall be filled
    12     in a like manner only for the unexpired appointive term of
    13     the member whose office has become vacant.
    14         (5)  Members appointed under the provisions of this
    15     subsection shall serve for a term of four years. Upon the
    16     expiration of this term, an appointed member may continue to
    17     hold office for 90 days or until a successor shall be duly
    18     appointed and qualified, whichever period is shorter, but
    19     shall not continue to hold office thereafter unless
    20     reappointed in accordance with law.
    21         (6)  Vacancies filled under paragraph (1) and subsequent
    22     appointments made to the commission shall be without the
    23     advice and consent of the Senate.
    24     (a.1)  Advisory committee.--
    25         (1)  There is hereby established a Pennsylvania Turnpike
    26     Advisory Committee, which shall be composed of the following
    27     members:
    28             (i)  The Secretary of Community and Economic
    29         Development.
    30             (ii)  The Secretary of Revenue.
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     1             (iii)  The State Treasurer.
     2             (iv)  The chairman and minority chairman of the
     3         Transportation Committee of the Senate.
     4             (v)  The chairman and minority chairman of the
     5         Transportation Committee of the House of Representatives.
     6             (vi)  Eight members of the public representing the
     7         area of concern specified who shall have extensive
     8         experience and knowledge of transportation activities
     9         throughout this Commonwealth to be appointed by the
    10         Governor as follows:
    11                 (A)  Two representatives of the engineering
    12             community who are licensed and registered pursuant to
    13             the act of May 23, 1945 (P.L.913, No.367), known as
    14             the Engineer, Land Surveyor and Geologist
    15             Registration Law.
    16                 (B)  Two representatives from the highway
    17             construction industry who have at least five years of
    18             highway construction and planning experience.
    19                 (C)  Two representatives from organized labor
    20             unions.
    21                 (D)  One member who shall be a certified public
    22             accountant.
    23                 (E)  One member from the general public with at
    24             least five years of experience in transportation
    25             finance and infrastructure.
    26         (2)  Each of the members of the committee may designate a
    27     representative to serve in his stead. A member who designates
    28     a representative shall notify the chairman in writing of the
    29     designation.
    30         (3)  The term of all members of the committee appointed
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     1     by the Governor shall be for three years. Any member of the
     2     committee may be reappointed for no more than two full
     3     successive terms. Any person appointed to fill a vacancy
     4     occurring prior to the expiration of the term to which his
     5     predecessor was appointed shall serve only for the unexpired
     6     term. Each member shall serve until the appointment of a
     7     successor.
     8         (4)  (i)  The committee shall meet at least four times
     9         every 12 months, but may hold such additional meetings as
    10         are called by the chairman. The chairman shall provide
    11         notice at least 14 days in advance for regular meetings
    12         and provide a minimum of three days' notice for special
    13         meetings. A majority of the appointed members shall
    14         constitute a quorum for the conduct of business.
    15             (ii)  Minutes of meetings shall be prepared by the
    16         secretary and filed with the committee and distributed to
    17         all members. All records shall be a matter of public
    18         record.
    19             (iii)  The public members of the committee shall be
    20         allowed reasonable per diem expenses as established and
    21         paid for by the commission. The commission shall provide
    22         appropriate staff support to enable the committee to
    23         properly carry out its functions.
    24         (5)  The committee shall have the power and duty to
    25     consult and advise the Pennsylvania Turnpike Commission in
    26     assisting in developing, operating and financing tolled
    27     interstate systems within this Commonwealth in a timely,
    28     efficient and cost-effective manner. Specifically, the
    29     committee shall have the authority to conduct a study on the
    30     feasibility of instituting toll collections on major
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     1     interstates that pass through the State.
     2         (6)  The committee shall submit an annual report of its
     3     deliberations and conclusions to the Governor and members of
     4     the General Assembly by November 30 of each year.
     5         (7)  The Governor shall appoint one member of the
     6     committee as chairperson. The members of the committee shall
     7     annually elect a vice chairperson, a secretary and a
     8     treasurer from among the members appointed to the committee.
     9     (b)  Secretary of Transportation.--The provisions of
    10  subsection (a.1) shall not apply to the appointment of the
    11  secretary who shall continue to be appointed and to serve as a
    12  member of the commission ex officio in accordance with law.
    13     (c)  Chairman.--A majority of the members of the commission
    14  shall elect a member of the commission to serve as chairman.
    15  Upon the appointment and qualification of any new member to
    16  serve on the commission, the office of chairman, and the
    17  positions of all other officers created by law, shall be deemed
    18  vacant and a new chairman and other officers shall be elected by
    19  a majority of the members of the commission.
    20     (d)  Actions by the commission.--Notwithstanding any other
    21  law, court decision, precedent or practice to the contrary, any
    22  and all actions by or on behalf of the commission shall be taken
    23  solely upon the approval of a majority of the members to the
    24  commission. A majority of the members of the commission shall
    25  mean five members of the commission. The term "actions by or on
    26  behalf of the commission" means any action whatsoever of the
    27  commission, including, but not limited to, the hiring,
    28  appointment, removal, transfer, promotion or demotion of any
    29  officers and employees; the retention, use or remuneration of
    30  any advisors, counsel, auditors, architects, engineers or
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     1  consultants; the initiation of any legal action; the making of
     2  any contracts, leases, agreements, bonds, notes or covenants;
     3  the approval of requisitions, purchase orders, investments and
     4  reinvestments; and the adoption, amendment, revision or
     5  rescission of any rules and regulations, orders or other
     6  directives. The chairman, vice chairman or any other officer or
     7  employee of the commission may take no action by or on behalf of
     8  the commission except as expressly authorized by a majority of
     9  the members of the commission.
    10     (e)  Compensation.--The annual salary of the Chairman of the
    11  Pennsylvania Turnpike Commission shall be $28,500, and the
    12  annual salary of the remaining members of the Pennsylvania
    13  Turnpike Commission shall be $26,000. These salaries shall be
    14  paid in equal installments every other week.
    15  § 8106.  Exercise of commission powers.
    16     The exercise by the commission of the powers conferred by
    17  this chapter in the construction, operation and maintenance of
    18  the turnpikes and in effecting toll road conversions shall be
    19  deemed and held to be an essential governmental function of the
    20  Commonwealth.
    21  § 8107.  Commission powers and duties.
    22     (a)  Powers and duties of commission.--The commission may:
    23         (1)  Maintain a principal office at a place designated by
    24     the commission.
    25         (2)  Contract and be contracted within its own name.
    26         (3)  Sue and be sued in its own name, plead and be
    27     impleaded. Any civil action against the commission shall be
    28     brought only in the courts in which actions may be brought
    29     against the Commonwealth.
    30         (4)  Have an official seal.
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     1         (5)  Make necessary rules and regulations for its own
     2     government and in control of traffic.
     3         (6)  Acquire, hold, accept, own, use, hire, lease,
     4     exchange, operate and dispose of personal property, real
     5     property and interests in real property and make and enter
     6     into all contracts and agreements necessary or incidental to
     7     the performance of its duties and the execution of its powers
     8     under this chapter and employ engineering, traffic,
     9     architectural and construction experts and inspectors,
    10     attorneys and other employees as may in its judgment be
    11     necessary and fix their compensation.
    12         (7)  (i)  Provide grade separations at its own expense
    13         with respect to all public roads, State highways and
    14         interstate highways intersected by the turnpikes and to
    15         change and adjust the lines and grades thereof so as to
    16         accommodate the same to the design for grade separation.
    17             (ii)  The damages incurred in changing and adjusting
    18         the lines and grades of public roads, State highways and
    19         interstate highways shall be ascertained and paid by the
    20         commission in accordance with 26 Pa.C.S. (relating to
    21         eminent domain).
    22             (iii)  If the commission shall find it necessary to
    23         provide a grade separation or change the site of any
    24         portion of any interstate highway, State highway or
    25         public road, or vacate the same, the commission shall
    26         cause it to be reconstructed and restored at the
    27         commission's expense on the most favorable location and
    28         in as satisfactory a manner as the original road or
    29         vacate it as the case may be.
    30             (iv)  The method of acquiring the right-of-way and
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     1         determining damages incurred in changing the location of
     2         or vacating the road, State highway or interstate highway
     3         shall be ascertained and paid for in accordance with 26
     4         Pa.C.S.
     5         (8)  Petition the court of common pleas of the county in
     6     which any public road or part thereof is located and affected
     7     by the location of the turnpikes, for the vacation,
     8     relocation or supply of the same or any part thereof with the
     9     same force and effect as is now given by existing laws to the
    10     inhabitants of any township or the county, and the
    11     proceedings upon petition, whether for the appointment of
    12     viewers or otherwise, shall be the same as provided by
    13     existing law for similar proceedings upon the petitions.
    14         (9)  Have all of the powers and perform all the duties
    15     prescribed by the act of May 21, 1937 (P.L.774, No.211),
    16     referred to as the Pennsylvania Turnpike Commission Act.
    17     (b)  Maintenance to be paid out of tolls.--
    18         (1)  The turnpike extensions and improvements and the
    19     conversion of toll-free roads to toll roads when completed
    20     and open to traffic shall be maintained and repaired by and
    21     under the control of the commission.
    22         (2)  All charges and costs for the maintenance and
    23     repairs actually expended by the commission shall be paid out
    24     of tolls.
    25         (3)  The turnpike, the turnpike extensions and
    26     improvements and the toll-free roads converted to toll roads
    27     shall also be policed and operated by a force of police, toll
    28     takers and other operating employees as the commission may in
    29     its discretion employ.
    30  § 8108.  Expenses and bonding of commission members.
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     1     (a)  Payment of expenses.--All compensation and salaries and
     2  all expenses incurred in carrying out the provisions of this
     3  chapter shall be paid solely from funds provided under the
     4  authority of this chapter, and no liability or obligation shall
     5  be incurred under this chapter beyond the extent to which money
     6  shall have been provided under the authority of this chapter.
     7     (b)  No additional bond required.--The issuance of any
     8  turnpike revenue bonds, notes or other obligations under the
     9  provisions of this chapter shall not cause any member of the
    10  commission to be required to execute a bond that a member of the
    11  commission is not otherwise required to execute.
    12  § 8109.  Acquisition of property rights by commission.
    13     (a)  Condemnation.--The commission may condemn, pursuant to
    14  26 Pa.C.S. (relating to eminent domain), any lands, interests in
    15  lands, property rights, rights-of-way, franchises, easements and
    16  other property deemed necessary or convenient for the
    17  construction and efficient operation of the turnpikes and the
    18  toll road conversions or necessary in the restoration or
    19  relocation of public or private property damaged or destroyed.
    20     (b)  Purchase.--
    21         (1) The commission may acquire by purchase, whenever it
    22     shall deem the purchase expedient, or otherwise accept if
    23     dedicated to it, any lands, interests in lands, property
    24     rights, rights-of-way, franchises, easements and other
    25     property deemed necessary or convenient for the construction
    26     and efficient operation of the turnpikes and toll road
    27     conversions or necessary in the restoration of public or
    28     private property damaged or destroyed, whether the property
    29     has been previously condemned or otherwise, upon terms and at
    30     a price as may be considered by the commission to be
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     1     reasonable and can be agreed upon between the commission and
     2     the owner thereof and to take title thereto in the name of
     3     the commission.
     4         (2)  The net proceeds of the purchase price payable to a
     5     municipality or the department for any real property or
     6     interest therein obtained by the commission pursuant to this
     7     chapter, less the cost of retiring any bonded indebtedness on
     8     the property or interest, shall be used exclusively, in the
     9     case of a municipality, for road-related and bridge-related
    10     expenses and, in the case of the department, for highway and
    11     bridge construction, reconstruction and maintenance in the
    12     same engineering and maintenance district in which the
    13     property is located.
    14  § 8110.  Procedural requirements of acquisition.
    15     (a)  Title.--Title to any property condemned by the
    16  commission shall be taken in the name of the commission.
    17     (b)  Entry.--
    18         (1)  In addition to any others powers set forth in this
    19     chapter, the commission and its authorized agents and
    20     employees may enter upon any lands, waters and premises in
    21     this Commonwealth for the purpose of making surveys,
    22     soundings, drillings and examinations, as it may deem
    23     necessary or convenient for the purpose of this chapter.
    24         (2)  The entry shall not be deemed a trespass, nor shall
    25     an entry for the purposes be deemed an entry under any
    26     condemnation proceedings which may be then pending.
    27         (3)  The commission shall make reimbursement for any
    28     actual damages resulting to the lands, waters and premises as
    29     a result of the activities.
    30     (c)  Restoration of property.--Any public or private property
    20070H1590B2342                 - 131 -    

     1  damaged or destroyed in carrying out the powers granted by this
     2  chapter shall be restored or repaired and placed in its original
     3  condition as nearly as practicable or adequate compensation made
     4  for the property out of funds provided under the authority of
     5  this chapter.
     6     (d)  Powers of public bodies.--Notwithstanding any other
     7  provision of law to the contrary, a political subdivision and a
     8  public agency and commission of the Commonwealth may lease,
     9  lend, dedicate, grant, convey or otherwise transfer to the
    10  commission, upon its request, upon terms and conditions as the
    11  proper authorities of the political subdivisions or public
    12  agencies and commissions of the Commonwealth may deem reasonable
    13  and fair and without the necessity for any advertisement, order
    14  of court or other action or formality, other than the regular
    15  and formal action of the authorities concerned, any real
    16  property which may be necessary or convenient to the
    17  effectuation of the authorized purposes of the commission,
    18  including public roads and other real property already devoted
    19  to public use.
    20  § 8111.  Entry and possession of property condemned.
    21     Whenever the commission has condemned any lands, rights,
    22  rights-of-way, easements and franchises, or interests therein,
    23  as provided in this chapter, the commission may proceed to
    24  obtain possession in the manner provided by 26 Pa.C.S. (relating
    25  to the eminent domain).
    26  § 8112.  Issuance of turnpike revenue bonds or other
    27             obligations.
    28     (a)  Authorization.--
    29         (1)  A bond must be authorized by resolution of the
    30     commission. The resolution may specify all of the following:
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     1             (i)  Series.
     2             (ii)  Date of maturity not exceeding 40 years from
     3         date of issue.
     4             (iii)  Interest.
     5             (iv)  Denomination.
     6             (v)  Form, either coupon or fully registered without
     7         coupons.
     8             (vi)  Registration, exchangeability and
     9         interchangeability privileges.
    10             (vii)  Medium of payment and place of payment.
    11             (viii)  Terms of redemption not exceeding 105% of the
    12         principal amount of the bond.
    13             (ix)  Priorities in the revenues or receipts of the
    14         commission.
    15         (2)  A bond must be signed by or shall bear the facsimile
    16     signature of such officers as the commission determines.
    17     Coupon bonds must have attached interest coupons bearing the
    18     facsimile signature of the treasurer of the commission as
    19     prescribed in the authorizing resolution. A bond may be
    20     issued and delivered notwithstanding that one or more of the
    21     signing officers or the treasurer has ceased to be an officer
    22     when the bond is actually delivered. A bond must be
    23     authenticated by an authenticating agent, a fiscal agent or a
    24     trustee, if required by the authorizing resolution.
    25         (3)  A bond may be sold at public or private sale for a
    26     price determined by the commission.
    27         (4)  Pending the preparation of a definitive bond,
    28     interim receipts or temporary bonds with or without coupons
    29     may be issued to the purchaser and may contain terms and
    30     conditions as the commission determines.
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     1     (b)  Provisions.--A resolution authorizing a bond may contain
     2  provisions which shall be part of the contract with the
     3  bondholder as to the following:
     4         (1)  Pledging the full faith and credit of the commission
     5     but not of the Commonwealth or any political subdivision for
     6     the bond or restricting the obligation of the commission to
     7     all or any of the revenue of the commission from all or any
     8     projects or properties.
     9         (2)  The construction, financing, improvement, operation,
    10     extension, enlargement, maintenance and repair for the
    11     payment of the costs of the turnpikes and the toll road
    12     conversions, including the reconstruction of the converted
    13     roads as provided for in this chapter and the repayment to
    14     the Federal Treasury of any funds so required to be repaid
    15     pursuant to any special legislation passed by the Congress of
    16     the United States authorizing the conversion of toll-free
    17     roads to toll roads, the financing for insurance reserves and
    18     the duties of the commission with reference to these matters.
    19         (3)  Terms and provisions of the bond.
    20         (4)  Limitations on the purposes to which the proceeds of
    21     the bond or other financing may be applied.
    22         (5)  Rate of tolls and other charges for use of the
    23     facilities of or for the services rendered by the commission.
    24         (6)  The setting aside, regulation and disposition of
    25     reserves and sinking funds.
    26         (7)  Limitations on the issuance of additional bonds.
    27         (8)  Terms and provisions of any deed of trust or
    28     indenture securing the bond or under which any deed of trust
    29     or indenture may be issued.
    30         (9)  Other additional agreements with the holder of the
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     1     bond.
     2     (c)  Deeds of trust.--The commission may enter into any deed
     3  of trust, indenture or other agreement with any bank or trust
     4  company or other person in the United States having power to
     5  enter into such an arrangement, including any Federal agency, as
     6  security for a bond and may assign and pledge all or any of the
     7  revenues or receipts of the commission under such deed,
     8  indenture or agreement. The deed of trust, indenture or other
     9  agreement may contain provisions as may be customary in such
    10  instruments or as the commission may authorize, including
    11  provisions as to the following:
    12         (1)  Construction, financing, improvement, operation,
    13     maintenance and repair for the payment of the costs of the
    14     turnpikes and the toll road conversions, including the
    15     reconstruction of the converted roads as provided for in this
    16     chapter and the repayment to the Federal Treasury of any
    17     funds so required to be repaid pursuant to any special
    18     legislation passed by the Congress of the United States
    19     authorizing the conversion of toll-free roads to toll roads,
    20     financing for insurance reserves and the duties of the
    21     commission with reference to these matters.
    22         (2)  Application of funds and the safeguarding of funds
    23     on hand or on deposit.
    24         (3)  Rights and remedies of trustees and bondholders,
    25     including restrictions upon the individual right of action of
    26     a bondholder.
    27         (4)  Terms and provisions of the bond or the resolution
    28     authorizing the issuance of the bond.
    29     (d)  Negotiability.--A bond shall have all the qualities of
    30  negotiable instruments under 13 Pa.C.S. Div. 3 (relating to
    20070H1590B2342                 - 135 -    

     1  negotiable instruments).
     2  § 8113.  Obligation proceeds restricted and lien created.
     3     All money received from any bonds, notes or other obligations
     4  issued under this chapter shall be applied solely to the payment
     5  of the cost of the turnpike, the turnpike extensions and
     6  improvements and the toll road conversions, including the
     7  reconstruction of the converted roads as provided for in this
     8  chapter and the repayment to the Federal Treasury of any funds
     9  so required to be repaid pursuant to any special legislation
    10  passed by the Congress of the United States authorizing the
    11  conversion of toll-free roads to toll roads or to the
    12  appurtenant fund. There is created and granted a lien upon the
    13  money, until so applied, in favor of holders of the bonds, notes
    14  or other obligations or the trustee provided for in this chapter
    15  in respect of the bonds, notes or other obligations.
    16  § 8114.  Trust indenture authorized.
    17     (a)  Security for bonds.--In the discretion of the
    18  commission, the bonds, notes or other obligations may be secured
    19  by a trust indenture by and between the commission and a
    20  corporate trustee, which may be any trust company or bank having
    21  the powers of a trust company, within this Commonwealth. The
    22  trust indenture may pledge or assign tolls and revenue to be
    23  received but shall not convey or mortgage the Pennsylvania
    24  Turnpike System, including the turnpikes and toll road
    25  conversions provided for by this chapter.
    26     (b)  Rights of bondholders.--Either the resolution providing
    27  for the issuance of the bonds, notes or other obligations or the
    28  trust indenture may contain provisions for protecting and
    29  enforcing the rights and remedies of the bondholders or holders
    30  of notes or other obligations as may be reasonable and proper
    20070H1590B2342                 - 136 -    

     1  and not in violation of law, including covenants setting forth
     2  the duties of the commission in relation to the acquisition of
     3  properties and the construction, maintenance, operation and
     4  repair and insurance of the turnpikes, and the custody,
     5  safeguarding and application of all money. It shall be lawful
     6  for any bank or trust company incorporated under the laws of
     7  this Commonwealth to act as a depository of the proceeds of
     8  bonds, notes or other obligations or revenues and to furnish the
     9  indemnity bonds or to pledge the securities as may be required
    10  by the commission. The trust indenture may set forth the rights
    11  and remedies of the bondholders or holders of notes or other
    12  obligations and of the trustee and may restrict the individual
    13  right of action of bondholders or holders of notes or other
    14  obligations as is customary in trust indentures securing bonds,
    15  debentures of corporations, notes or other obligations. In
    16  addition to the foregoing, the trust indenture may contain other
    17  provisions as the commission may deem reasonable and proper for
    18  the security of bondholders or holders of notes or other
    19  obligations. All expenses incurred in carrying out the trust
    20  indenture may be treated as part of the cost of maintenance,
    21  operation and repair of the turnpikes and toll road conversions
    22  provided for by this chapter.
    23  § 8115.  Commission and obligations tax exempt.
    24     The accomplishment by the commission of the authorized
    25  purposes stated in this chapter being for the benefit of the
    26  people of this Commonwealth and for the improvement of their
    27  commerce and prosperity, in which accomplishment the commission
    28  will be performing essential governmental functions, the
    29  commission shall not be required to pay any taxes or assessments
    30  on any property acquired or used by it for the purposes provided
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     1  in this chapter, and the bonds, notes or other obligations
     2  issued by the commission, their transfer and the income
     3  therefrom, including any profits made on the sale thereof, shall
     4  at all times be free from taxation within this Commonwealth.
     5  § 8116.  Collection and disposition of tolls and other revenue.
     6     (a)  Establishment and changes in toll amounts.--Subject to
     7  the terms of any trust indenture entered into by the commission,
     8  any resolution authorizing the issuance of any bonds, notes or
     9  other obligations of the commission, the commission is
    10  authorized: to fix and to revise tolls for the use of the
    11  Pennsylvania Turnpike System and the different parts or sections
    12  of the system, including the turnpike, the turnpike extensions
    13  and improvements and the toll road conversions authorized by
    14  this chapter: to charge and collect the tolls; to contract with
    15  any person, partnership, association or corporation desiring the
    16  use of any part thereof, including the right-of-way adjoining
    17  the paved portion, for placing thereon telephone, telegraph,
    18  electric light or power lines, gas stations, garages, stores,
    19  hotels, restaurants and advertising signs, or for any other
    20  purpose, except for tracks for railroad or railway use; and to
    21  fix the terms, conditions, rents and rates of charges for use.
    22  Tolls shall be fixed and adjusted as to provide funds at least
    23  sufficient with other revenues of the Pennsylvania Turnpike
    24  System, if any, to pay:
    25         (1)  the cost of constructing, maintaining, repairing and
    26     operating the Pennsylvania Turnpike System and the different
    27     parts and sections of the system; and
    28         (2)  any bonds, notes or other obligations and the
    29     interest thereon of the commission, and all sinking fund
    30     requirements of the commission, and other requirements
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     1     provided for by any resolution authorizing the issuance of
     2     the bonds, notes or other obligations by the commission, or
     3     by any trust indenture to which the commission is a party, as
     4     the same shall become due.
     5     (b)  Restrictions on toll revenue.--Tolls shall not be
     6  subject to supervision or regulation by any other State
     7  commission, board, bureau or agency. Subject to the terms of any
     8  presently existing trust indenture entered into by the
     9  commission and any presently existing resolution authorizing the
    10  issuance of any bonds, notes or other obligations of the
    11  commission, the tolls and all other revenue derived from the
    12  Pennsylvania Turnpike System shall be set aside and pledged as
    13  may be provided in any resolutions, trust indentures or any
    14  other agreements that the commission may hereafter adopt or
    15  hereafter enter into with respect to the issuance of bonds,
    16  notes or other obligations of the commission.
    17  § 8116.1.  Electronic toll collection.
    18     (a)  Liability of owner.--
    19         (1)  If an operator of a vehicle fails to pay the
    20     prescribed toll at any location where tolls are collected by
    21     means of electronic toll collection, the owner of the vehicle
    22     shall be liable to the commission for failure of the operator
    23     of the vehicle to comply with this section if the violation
    24     is evidenced by information obtained from a violation
    25     enforcement system.
    26         (2)  If a violation of this section is committed, the
    27     registration plate number of the vehicle as recorded by a
    28     violation enforcement system shall establish an inference
    29     that the owner of the vehicle was then operating the vehicle.
    30     The inference shall be overcome if the owner does all of the
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     1     following:
     2             (i)  Testifies that the owner was not operating the
     3         vehicle at the time of the violation.
     4             (ii)  Submits to an examination as to who at the time
     5         was operating the vehicle.
     6             (iii)  Reveals the name and residence address, if
     7         known, of the operator of the vehicle.
     8         (3)  If an action or proceeding is commenced in a county
     9     other than that of the residence of the owner, a verified
    10     written statement setting forth the facts prescribed under
    11     paragraph (2)(i), (ii) and (iii) shall suffice to overcome
    12     the inference.
    13         (4)  If the inference is overcome, the operator of the
    14     vehicle may be held liable under this section for failure to
    15     pay the prescribed toll in the same manner as if the operator
    16     were the owner of the vehicle.
    17     (b)  Imposition of liability.--Liability under this section
    18  shall be imposed upon an owner for a violation of this section
    19  or the regulations of the commission occurring within the
    20  territorial limits of this Commonwealth. If a violation is
    21  committed as evidenced by a violation enforcement system, the
    22  following shall apply:
    23         (1)  The commission or an authorized agent or employee
    24     must prepare and mail a notice of violation as follows:
    25             (i)  The notice of violation must be sent by first
    26         class mail to each person alleged to be liable as an
    27         owner for a violation of this section.
    28             (ii)  The notice must be mailed at the address shown
    29         on the vehicle registration or at the address of the
    30         operator, as applicable. Notice must be mailed no later
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     1         than 60 days after:
     2                 (A)  the alleged conduct; or
     3                 (B)  the date the inference is overcome under
     4             subsection (a)(2).
     5             (iii)  Personal service is not required.
     6             (iv)  The notice must contain all of the following:
     7                 (A)  Information advising the person charged of
     8             the manner and time in which the liability alleged in
     9             the notice may be contested.
    10                 (B)  A warning advising the person charged that
    11             failure to contest in the manner and time provided
    12             shall be deemed an admission of liability and that a
    13             default judgment may be entered on the notice.
    14         (1.1)  A manual or automatic record of mailing prepared
    15     in the ordinary course of business shall be prima facie
    16     evidence of the mailing of notice.
    17         (2)  If an owner of a vehicle or an owner that is a
    18     lessor of a vehicle receives a notice of violation under this
    19     section for any time period during which the vehicle was
    20     reported to a police department as having been stolen, it
    21     shall be a defense to the allegation of liability that the
    22     vehicle had been reported to the police as having been stolen
    23     prior to the time the violation occurred and that the vehicle
    24     had not been recovered by the time of the violation. For
    25     purposes of asserting the defense under this paragraph, it
    26     shall be sufficient that a certified copy of the police
    27     report on the stolen vehicle be sent by first class mail to
    28     the commission within 30 days after receiving the original
    29     notice of violation. Failure to send the information within
    30     the time limit under this paragraph shall render the owner or
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     1     lessor liable for the penalty prescribed by this section.
     2         (3)  An owner that is a lessor of a vehicle as to which a
     3     notice of violation was issued under paragraph (1) shall not
     4     be liable for a violation if the owner sends to the
     5     commission a copy of the rental, lease or other contract
     6     document covering the vehicle on the date of the violation,
     7     with the name and address of the lessee clearly legible to
     8     the commission, within 30 days after receiving the original
     9     notice of violation. Failure to send the information within
    10     the time limit under this paragraph shall render the lessor
    11     liable for the penalty prescribed by this section. If the
    12     lessor complies with the provisions of this section, the
    13     lessee of the vehicle on the date of the violation shall be
    14     deemed to be the owner of the vehicle for purposes of this
    15     section and shall be subject to liability for the penalty
    16     under this section.
    17         (4)  A certified report or a facsimile report of an
    18     authorized agent or employee of the commission reporting a
    19     violation of this section or regulations of the commission
    20     based upon the recorded information obtained from a violation
    21     enforcement system shall be prima facie evidence of the facts
    22     contained in the report and shall be admissible as an
    23     official record kept in the ordinary course of business in
    24     any proceeding charging a violation of this section or the
    25     toll collection regulations of the commission.
    26         (5)  Notwithstanding any other provision of law,
    27     videotapes, photographs, microphotographs, other recorded
    28     images, written records, reports or facsimiles prepared
    29     pursuant to this section shall be for the exclusive use of
    30     the commission, its authorized agents, its employees and law
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     1     enforcement officials for the purpose of discharging duties
     2     under this section and the regulations of the commission. The
     3     information shall not be deemed a public record under the act
     4     of June 21, 1957 (P.L.390, No.212), referred to as the Right-
     5     to-Know Law. The information shall not be discoverable by
     6     court order or otherwise; nor shall it be offered in evidence
     7     in any action or proceeding which is not directly related to
     8     a violation of this section, the regulations of the
     9     commission or indemnification for liability imposed pursuant
    10     to this section. The restrictions set forth in this
    11     paragraph:
    12             (i)  shall not be deemed to preclude a court of
    13         competent jurisdiction from issuing an order directing
    14         that the information be provided to law enforcement
    15         officials if the information is reasonably described and
    16         is requested solely in connection with a criminal law
    17         enforcement action;
    18             (ii)  shall not be deemed to preclude the exchange of
    19         the information between any entities with jurisdiction
    20         over or which operate an electronic toll collection
    21         system in this Commonwealth or any other jurisdiction;
    22         and
    23             (iii)  shall not be deemed to prohibit the use of
    24         information exclusively for the purpose of billing
    25         electronic toll collection account holders, deducting
    26         toll charges from the account of an account holder,
    27         enforcing toll collection laws and related regulations or
    28         enforcing the provisions of an account holder agreement.
    29         (6)  An imposition of liability under this section must
    30     be based upon a preponderance of evidence.
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     1         (7)  An imposition of liability pursuant to this section
     2     shall not be deemed a conviction of an owner and shall not be
     3     made part of the motor vehicle operating record of the person
     4     upon whom the liability is imposed, nor shall it be
     5     considered in the provision of motor vehicle insurance
     6     coverage.
     7         (8)  An owner that admits, is found liable or fails to
     8     respond to the notice of violation for a violation of this
     9     section shall be civilly liable to the commission for all of
    10     the following:
    11             (i)  Either:
    12                 (A)  the amount of the toll evaded or attempted
    13             to be evaded if the amount can be determined; or
    14                 (B)  the maximum toll from the farthest point of
    15             entry on the Pennsylvania Turnpike to the actual
    16             point of exit if the amount of the toll evaded or
    17             attempted to be evaded cannot be determined.
    18             (ii)  A reasonable administrative fee not to exceed
    19         $35 per notification.
    20         (9)  Nothing in this section shall be construed to limit
    21     the liability of the operator of a vehicle for a violation of
    22     this section or of the regulations of the commission.
    23     (c)  Placement of electronic toll collection device.--An
    24  electronic toll collection device which is affixed to the front
    25  windshield of a vehicle in accordance with the regulations of
    26  the commission shall not be deemed to constitute a violation of
    27  75 Pa.C.S. § 4524 (relating to windshield obstructions and
    28  wipers).
    29     (d)  Privacy of electronic toll collection account holder
    30  information.--
    20070H1590B2342                 - 144 -    

     1         (1)  Except as set forth paragraph (2), notwithstanding
     2     any other provision of law, all of the following apply to
     3     information kept by the commission, its authorized agents or
     4     its employees which is related to the account of an
     5     electronic toll collection system account holder:
     6             (i)  The information shall be for the exclusive use
     7         of the commission, its authorized agents, its employees
     8         and law enforcement officials for the purpose of
     9         discharging their duties pursuant to this section and the
    10         regulations of the commission. This subparagraph includes
    11         names, addresses, account numbers, account balances,
    12         personal financial information, vehicle movement records
    13         and other information compiled from transactions with the
    14         account holders.
    15             (ii)  The information shall not be deemed a public
    16         record under the Right-to-Know Law, nor shall it be
    17         discoverable by court order or otherwise or be offered in
    18         evidence in any action or proceeding which is not
    19         directly related to the discharge of duties under this
    20         section, the regulations of the commission or a violation
    21         of an account holder agreement.
    22         (2)  Paragraph (1) shall not be deemed to do any of the
    23     following:
    24             (i)  Preclude a court of competent jurisdiction from
    25         issuing an order directing that the information be
    26         provided to law enforcement officials if the information
    27         is reasonably described and is requested solely in
    28         connection with a criminal law enforcement action.
    29             (ii)  Preclude the exchange of the information
    30         between any entities with jurisdiction over or which
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     1         operate an electronic toll collection system in this
     2         Commonwealth or any other jurisdiction.
     3             (iii)  Prohibit the use of the information
     4         exclusively for the purpose of billing electronic toll
     5         collection account holders, deducting toll charges from
     6         the account of an account holder, enforcing toll
     7         collection laws and related regulations or enforcing the
     8         provisions of an account holder agreement.
     9     (e)  Definition.--As used in this section, the term "owner"
    10  means any person, corporation, firm, partnership, agency,
    11  association, organization or lessor that, at the time a vehicle
    12  is operated in violation of this section or regulations of the
    13  commission:
    14         (1)  is the beneficial or equitable owner of the vehicle;
    15         (2)  has title to the vehicle; or
    16         (3)  is the registrant or coregistrant of the vehicle
    17     registered with the department or a comparable agency of
    18     another jurisdiction or uses the vehicle in its vehicle
    19     renting or leasing business. The term includes a person
    20     entitled to the use and possession of a vehicle subject to a
    21     security interest in another person.
    22  § 8117.  Refunding bonds.
    23     The commission is authorized to provide, by resolution, for
    24  the issuance of turnpike revenue refunding bonds for the purpose
    25  of refunding issued and outstanding turnpike revenue bonds,
    26  notes or other obligations. Applicable provisions of this
    27  chapter govern all of the following:
    28         (1)  Issuance of the turnpike revenue refunding bonds.
    29         (2)  Maturities and other details of the refunding bonds.
    30         (3)  Rights of the holders of the bonds.
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     1         (4)  Duties of the Commonwealth and of the commission in
     2     respect to the bonds.
     3  § 8118.  Rights of obligation holders and trustees.
     4     (a)  Scope.--This section applies to all of the following:
     5         (1)  A holder of:
     6             (i)  a bond, note or other obligation issued under
     7         this chapter; or
     8             (ii)  a coupon attached to the bond, note or other
     9         obligation.
    10         (2)  The trustee under an applicable trust indenture.
    11     (b)  Enforcement.--Subject to subsection (c), a person
    12  referred to in subsection (a) may, by an action at law or in
    13  equity, do all of the following:
    14         (1)  Protect and enforce rights granted under this
    15     chapter or under the resolution or trust indenture.
    16         (2)  Enforce and compel performance of all duties
    17     required by this chapter or by the resolution or trust
    18     indenture to be performed by the commission or an officer of
    19     the commission. This paragraph includes fixing, charging and
    20     collecting of tolls for the use of the turnpikes.
    21     (c)  Restriction.--Rights under this chapter may be
    22  restricted by resolution passed before the issuance of the bond,
    23  note or other obligation or by the trust indenture.
    24  § 8119.  Authority granted to secretary.
    25     (a)  Agreement with Federal Government.--
    26         (1)  The secretary is authorized to enter into an
    27     agreement with the United States Department of
    28     Transportation, the Federal Highway Administration and any
    29     other Federal agency to obtain Federal funds for projects for
    30     resurfacing, restoring and rehabilitating toll roads in this
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     1     Commonwealth. The commission is authorized to use Federal
     2     funds which may be available for toll roads only upon
     3     approval of the secretary and only under the authority
     4     granted under this section.
     5         (2)  (Reserved).
     6     (b)  Approval by department.--Contracts and agreements
     7  relating to the construction of the turnpikes and connecting
     8  tunnels and bridges must be approved by the department.
     9  § 8120.  Construction of chapter.
    10     This chapter shall be regarded as supplemental and additional
    11  to powers conferred by other statutes and shall not be regarded
    12  as in derogation of any powers now existing and shall be
    13  liberally construed to effect its purposes.
    14     Section 2.3.  Section 8901 of Title 75 is amended to read:
    15  § 8901.  Definitions.
    16     The following words and phrases when used in this chapter
    17  shall have the meanings given to them in this section unless the
    18  context clearly indicates otherwise:
    19     "Annual additional rent."  That portion of the rent payable
    20  to the Department of Transportation under section 8915.3(5)
    21  (relating to lease of Interstate 80).
    22     "Annual base rent."  That portion of the rent payable to the
    23  Department of Transportation under section 8915.3(4) (relating
    24  to lease of Interstate 80).
    25     "Annual surplus rent."  That portion of the rent payable to
    26  the Department of Transportation under section 8915.3(6)
    27  (relating to lease of Interstate 80).
    28     "Auditor General's certificate."  The certificate issued by
    29  the Auditor General within 180 days after the end of each fiscal
    30  year of the Pennsylvania Turnpike Commission certifying all of
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     1  the following:
     2         (1)  The amount of the general reserve fund surplus for
     3     the fiscal year.
     4         (2)  Interstate 80 savings for the fiscal year.
     5         (3)  After review of the commission's current ten-year
     6     capital plan, that the transfer of the general reserve fund
     7     surplus under section 8915.3 (relating to lease of Interstate
     8     80) shall not impair the ability of the commission to meet
     9     its obligations under the lease agreement or the commission's
    10     ten-year capital plan.
    11     "Commission."  The Pennsylvania Turnpike Commission.
    12     "Conversion date."  The date the Pennsylvania Turnpike
    13  Commission intends to assume control over Interstate 80 as set
    14  forth in the conversion notice.
    15     "Conversion notice."  Written notice to the Secretary of
    16  Transportation from the Pennsylvania Turnpike Commission
    17  providing notice of its intent to assume control over Interstate
    18  80 under section 8915.3(3) (relating to lease of Interstate 80).
    19     "Conversion period."  A period of three years:
    20         (1)  which begins on the date of execution of the lease
    21     agreement; and
    22         (2)  during which the Pennsylvania Turnpike Commission
    23     may give the Department of Transportation conversion notice
    24     or notice that the commission has exercised its option to
    25     extend the conversion period pursuant to section 8915.3(2)
    26     (relating to lease of Interstate 80).
    27     "Fiscal year."  The fiscal year of the Pennsylvania Turnpike
    28  Commission.
    29     "General reserve fund surplus."  The amount which:
    30         (1)  is certified by the Auditor General in the Auditor
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     1     General's certificate as existing in the Pennsylvania
     2     Turnpike Commission's general reserve fund on the last day of
     3     the fiscal year; and
     4         (2)  is not required to be retained in the general
     5     reserve fund pursuant to any financial documents, financial
     6     covenants, insurance policies, liquidity policies or
     7     agreements, swap agreements or rating agency requirements in
     8     effect at the commission.
     9     "Interstate 80 savings."  An amount equal to the following:
    10         (1)  Prior to the conversion date, the amount shall be
    11     zero.
    12         (2)  After the conversion date, the amount certified in
    13     the Auditor General's certificate equal to $100,000,000,
    14     increased by 4% for each year after the year of execution of
    15     the lease agreement.
    16     "Lease agreement."  A lease agreement between the Department
    17  of Transportation and the Pennsylvania Turnpike Commission which
    18  shall include provisions setting forth the terms of the
    19  conversion of Interstate 80 to a toll road.
    20     "Scheduled annual commission contribution."  The following
    21  amounts:
    22         (1)  $700,000,000 in fiscal year 2007-2008.
    23         (2)  $750,000,000 in fiscal year 2008-2009.
    24         (3)  $800,000,000 in fiscal year 2009-2010.
    25         (4)  $800,000,000 increased by 2.5% for each fiscal year
    26     after fiscal year 2009-2010.
    27     Section 2.4.  Section 8911 introductory paragraph of Title 75
    28  is amended and the section is amended by adding a paragraph to
    29  read:
    30  § 8911.  Improvement and extension authorizations.
    20070H1590B2342                 - 150 -    

     1     In order to facilitate vehicular traffic within and across
     2  this Commonwealth, the commission is hereby authorized and
     3  empowered to construct, reconstruct, widen, expand, extend,
     4  operate and maintain turnpike extensions and turnpike
     5  improvements at such specific locations and according to such
     6  schedule as shall be deemed feasible and approved by the
     7  commission, together with connecting roads, storm water
     8  management systems, interchanges, slip ramps, tunnels and
     9  bridges, subject to the waiver of the Federal toll prohibition
    10  provisions where applicable, as follows:
    11         * * *
    12         (10)  Other slip ramps and interchanges as the commission
    13     may determine.
    14     Section 2.5.  Sections 8912 introductory paragraph, 8913,
    15  8914 introductory paragraph and 8915 introductory paragraph of
    16  Title 75 are amended to read:
    17  § 8912.  Subsequent extension authorizations.
    18     The commission is also hereby authorized and empowered to
    19  construct, reconstruct, widen, expand, extend, operate and
    20  maintain further extensions and improvements of the turnpike at
    21  such specific locations and according to such schedules as shall
    22  be deemed feasible and which shall be approved by the
    23  commission, subject to the waiver of the Federal toll
    24  prohibition provisions where applicable, as follows:
    25         * * *
    26  § 8913.  Additional subsequent extension authorizations.
    27     Upon substantial completion of the turnpike extensions and
    28  improvements set forth in sections 8911 (relating to improvement
    29  and extension authorizations) and 8912 (relating to subsequent
    30  extension authorizations), the commission is hereby authorized
    20070H1590B2342                 - 151 -    

     1  and empowered to construct, reconstruct, widen, expand, extend,
     2  operate and maintain further extensions and improvements of the
     3  turnpike at such specific locations and according to such
     4  schedules as shall be deemed feasible and which shall be
     5  approved by the commission, subject to the waiver of the Federal
     6  toll prohibition provisions where applicable, as follows:
     7  construct from a point at or near Interstate Route 80
     8  Interchange 23 at Milesburg southwesterly generally along U.S.
     9  Route 220 to a connection with the existing U.S. Route 220
    10  Expressway south of Bald Eagle.
    11  § 8914.  Further subsequent authorizations.
    12     Upon completion of the turnpike extensions and improvements
    13  set forth in sections 8911 (relating to improvement and
    14  extension authorizations), 8912 (relating to subsequent
    15  extension authorizations) and 8913 (relating to additional
    16  subsequent extension authorizations), the commission is hereby
    17  authorized and empowered to construct, reconstruct, widen,
    18  expand, extend, operate and maintain further extensions and
    19  improvements of the turnpike at such specific locations and
    20  according to such schedules as shall be deemed feasible and
    21  which shall be approved by the commission, subject to the waiver
    22  of the Federal toll prohibition provisions where applicable, as
    23  follows:
    24         * * *
    25  § 8915.  Conversion to toll roads.
    26     In order to facilitate vehicular traffic within and across
    27  this Commonwealth, and [after] to facilitate the completion of
    28  the turnpike extensions and improvements authorized in section
    29  8911 (relating to improvement and extension authorizations), and
    30  subject to prior legislative approval by the General Assembly
    20070H1590B2342                 - 152 -    

     1  and the United States Congress, the commission is hereby
     2  authorized and empowered to convert to toll roads such portions
     3  of Pennsylvania's interstate highway system as may [be required
     4  in order to] facilitate the completion of the turnpike
     5  extensions and improvements authorized in sections 8912
     6  (relating to subsequent extension authorizations), 8913
     7  (relating to additional subsequent extension authorizations) and
     8  8914 (relating to further subsequent authorizations) and to
     9  operate and maintain such converted interstates as toll roads
    10  upon the approval by the Congress of the United States of
    11  America and the General Assembly of this Commonwealth of
    12  legislation expressly permitting the conversion of such
    13  interstates to toll roads. Such conversions shall take place at
    14  a time and manner set forth in the plan for the conversion
    15  prepared by the commission with the cooperation of the
    16  department. The provisions authorizing the commission to
    17  construct, operate and maintain the turnpike routes in sections
    18  8911, 8912 and 8913 shall be subject to:
    19         * * *
    20     Section 2.6.  Title 75 is amended by adding sections to read:
    21  § 8915.1.  Conversion of Interstate 80.
    22     In order to facilitate vehicular traffic across this
    23  Commonwealth, the commission is authorized and empowered to do
    24  all of the following:
    25         (1)  Construct, reconstruct, widen, expand, extend,
    26     operate, maintain and maintain and operate Interstate 80 from
    27     a point at or near the Ohio border to a point at or near the
    28     New Jersey border, together with connecting roads,
    29     interchanges, slip ramps, tunnels and bridges.
    30         (2)  Issue turnpike revenue bonds, notes or other
    20070H1590B2342                 - 153 -    

     1     obligations, payable solely from revenues of the commission,
     2     including tolls, or from funds as may be available to the
     3     commission for that purpose, to pay the cost of construction,
     4     reconstructing, widening, expanding or extending or any other
     5     costs of the Pennsylvania Turnpike.
     6         (3)  Convert to a toll road Interstate 80 and to operate
     7     and maintain the converted interstate as a toll road.
     8  § 8915.2.  Application to United States Department of
     9             Transportation.
    10     (a)  Application.--The commission, in consultation with the
    11  department and at its own expense, is authorized to prepare and
    12  submit an application to the United States Department of
    13  Transportation in accordance with 23 U.S.C. § 129 (relating to
    14  toll roads, bridges, tunnels, and ferries) for the conversion of
    15  Interstate 80 to a toll road under the Interstate Reconstruction
    16  and Rehabilitation Pilot Program or in accordance with any other
    17  applicable Federal program or provision of law. The secretary
    18  shall ensure that all information required for the application
    19  is made available to the commission as soon as practicable after
    20  the effective date of this section. If the application is
    21  submitted pursuant to the Interstate Reconstruction and
    22  Rehabilitation Pilot Program, it shall contain all of the
    23  following:
    24         (1)  A consulting civil engineer's report assessing the
    25     current physical conditions of the roadbed, pavement, bridges
    26     and interchanges and projecting the costs to upgrade
    27     Interstate 80, the costs for additional improvements and
    28     implementation of the tolling facilities and existing funds
    29     available for Interstate 80, absent tolling and concluding
    30     that the facility would not be maintained or improved to meet
    20070H1590B2342                 - 154 -    

     1     current or future needs from the Commonwealth's
     2     apportionments and allocations and from revenues for highways
     3     from any other source without toll revenues.
     4         (2)  A traffic and revenue report completed by a third-
     5     party consultant forecasting future traffic and revenue over
     6     a minimum of 20 years.
     7         (3)  An environmental scoping analysis assessing the
     8     fiscal impact, any air and water quality issues and the
     9     involvement of local metropolitan planning organizations.
    10         (4)  A construction and operational plan for the
    11     implementation of the Toll Pilot Program for Interstate 80
    12     which:
    13             (i)  assumes completion no later than five years
    14         after financing;
    15             (ii)  includes a plan for implementing the imposition
    16         of tolls on use of Interstate 80, a schedule and finance
    17         plan for the reconstruction and rehabilitation of
    18         Interstate 80 using toll revenues and a description of
    19         the public transportation agency that will be responsible
    20         for implementation and administration of the toll pilot
    21         program.
    22         (5)  A financial analysis demonstrating that tolling
    23     Interstate 80 will produce sufficient revenue to pay debt
    24     service on any bonds and loans incurred with respect to the
    25     Toll Pilot Program.
    26     (b)  Open system.--A toll system shall consist of what is
    27  commonly referred to as an open system.
    28  § 8915.3.  Lease of Interstate 80.
    29     The department and the commission shall enter into a lease
    30  agreement relating to Interstate 80. The lease agreement shall
    20070H1590B2342                 - 155 -    

     1  include provisions setting forth the terms and conditions of the
     2  conversion of Interstate 80 to a toll road. The lease agreement,
     3  at a minimum, shall include the following:
     4         (1)  A provision that the term of the lease agreement
     5     shall be 50 years, unless extended upon mutual agreement of
     6     the parties to the lease agreement.
     7         (2)  A provision establishing a conversion period and
     8     authorizing extension of the conversion period at the sole
     9     option of the commission for three one-year extension periods
    10     after consultation with the secretary. The commission shall
    11     notify the secretary of its intent to extend the conversion
    12     period not less than 90 days before the scheduled expiration
    13     of the conversion period. During the conversion period, all
    14     legal, financial and operational responsibility for
    15     Interstate 80 shall remain with the department. All
    16     operations and programmed rehabilitation shall be maintained
    17     at levels no less favorable than those set forth in the
    18     department's 12-year plan at the time of the execution of the
    19     lease, with modifications as are approved in writing by the
    20     chairman of the commission.
    21         (3)  A provision permitting the commission to exercise
    22     its option to convert Interstate 80 to a toll road prior to
    23     the expiration of the conversion period by providing the
    24     conversion notice to the secretary. Beginning on the
    25     conversion date, all legal, financial and operational
    26     responsibility for Interstate 80, as well as all toll
    27     revenues collected with respect to its use, shall be
    28     transferred from the department to the commission. The
    29     commission shall contract with the department for any portion
    30     of the maintenance of Interstate 80 at cost levels no less
    20070H1590B2342                 - 156 -    

     1     favorable than those of the department on the conversion
     2     date.
     3         (4)  A provision requiring the commission to pay annual
     4     base rent to the department during the term of the lease
     5     agreement in the following manner and equal to the following
     6     amounts:
     7             (i)  Annual debt service on outstanding bonds issued
     8         under section 9511.2 (relating to special revenue bonds
     9         payable solely from pledged revenues of Motor License
    10         Fund) payable as required pursuant to bonds.
    11             (ii)  $200,000,000 payable annually in four equal
    12         installments each due the first business day of each
    13         July, October, January and April.
    14         (5)  A provision requiring the commission to pay annual
    15     additional rent to the department as follows:
    16             (i) During the conversion period and after the
    17         conversion of Interstate 80 to a toll road, the annual
    18         additional rent shall be equal to the scheduled annual
    19         commission contribution, minus any amounts paid under
    20         paragraph (4) less the proceeds of bonds allocable to the
    21         fiscal year in question issued under section 9511.2 and
    22         any Interstate 80 savings for that fiscal year as set
    23         forth in the Auditor General's certificate.
    24             (ii)  If conversion notice is not received by the
    25         secretary prior to the expiration of the conversion
    26         period, the annual additional rent shall be equal to
    27         $250,000,000.
    28     The annual additional rent provided under this paragraph is
    29     deemed to be equal to the fair market value of Interstate 80
    30     and shall be payable in four equal installments due the first
    20070H1590B2342                 - 157 -    

     1     business day of each July, October, January and April of each
     2     year during the term of the lease agreement.
     3         (6)  A provision requiring the commission to pay,
     4     commencing on the conversion date, annual surplus rent to the
     5     department equal to the general reserve fund surplus payable
     6     for each fiscal year from the conversion date until the end
     7     of the term of the lease agreement. The surplus rent shall be
     8     payable by the commission within 30 days of receipt by the
     9     commission of the Auditor General's certificate. If the
    10     conversion period expires before the conversion date, no
    11     annual surplus rent shall be payable.
    12         (7)  A provision stating that the obligation of the
    13     commission to pay the annual base rent, the annual additional
    14     rent and annual surplus rent shall be a subordinate
    15     obligation of the commission payable from amounts in the
    16     general reserve fund of the commission only as permitted by
    17     any financing documents, financial covenants, liquidity
    18     policies or agreements, swap agreements or rating agency
    19     requirements in effect at the commission.
    20         (8)  A provision authorizing the department to receive
    21     the annual base rent, annual additional rent and annual
    22     surplus rent, and to deposit amounts so received as follows,
    23     to the degree permitted by applicable Federal laws and
    24     regulations:
    25             (i)  proceeds of bonds issued under section 9511.2
    26         shall be spent consistent with sections 9511.4(h)
    27         (relating to special revenue bonds and preliminary or
    28         interim financing) and 9511.5 (relating to application of
    29         proceeds of obligations, lien of holders of obligations,
    30         design-build requirement and projects approved by the
    20070H1590B2342                 - 158 -    

     1         General Assembly);
     2             (ii)  be deposited in the Public Transportation Trust
     3         Fund as follows:
     4                 (A)  $250,000,000 for fiscal year 2007-2008;
     5                 (B)  $300,000,000 for fiscal year 2008-2009;
     6                 (C)  $350,000,000 for fiscal year 2009-2010; and
     7                 (D)  $400,000,000 for fiscal year 2010-2011 and
     8             increased by 2.5% for each fiscal year thereafter;
     9             and
    10             (iii)  any balance received from the department shall
    11         be deposited in the Motor License Fund. For any year in
    12         which there are no bond proceeds under this paragraph,
    13         $5,000,000 of the money deposited shall be for county
    14         roads and bridges and $30,000,000 of the money deposited
    15         shall be for municipal roads and bridges to be allocated
    16         under the act of June 1, 1956 (1955 P.L.1944, No.655),
    17         referred to the Liquid Fuels Tax Municipal Allocation
    18         Law.
    19  § 8915.4.  Other interstate highways.
    20     In order to facilitate vehicular traffic across this
    21  Commonwealth and pursuant to the authority granted under this
    22  chapter, the commission is hereby authorized and empowered to:
    23         (1)  at its own expense and in consultation with the
    24     department, prepare a consulting civil engineer report and
    25     financial analysis with respect to the feasibility of
    26     converting Interstate 95 to a toll road and operating and
    27     maintaining the converted interstate as a toll road, upon
    28     approval of the General Assembly and the United States
    29     Department of Transportation; and
    30         (2)  at its own expense, and in consultation with the
    20070H1590B2342                 - 159 -    

     1     department, prepare and submit an application to the United
     2     States Department of Transportation for the conversion of
     3     Interstate 95 to a toll road pursuant to any Federal program
     4     for which it may be eligible.
     5     Section 3.  Section 8916 of Title 75 is amended to read:
     6  § 8916.  Turnpike system.
     7     The turnpikes and the future toll road conversions authorized
     8  by this chapter are hereby or shall be made part of the
     9  Pennsylvania Turnpike System, as provided in the act of August
    10  14, 1951 (P.L.1232, No.282), referred to as the Pennsylvania
    11  Turnpike System Financing Act. A Public-Public Partnership of
    12  the Pennsylvania Turnpike System is integral to solving
    13  transportation problems referred to in 74 Pa.C.S. § 13A01
    14  (relating to declaration of policy).
    15     Section 4.  Title 75 is amended by adding a section to read:
    16  § 9501.  Definitions.
    17     The following words and terms when used in this chapter shall
    18  have the meanings given to them in this section, unless the
    19  context clearly indicates otherwise:
    20     "Bond-related expenses."  The term shall include all of the
    21  following:
    22         (1)  Printing, publication or advertising expenses with
    23     respect to the sale and issuance of bonds.
    24         (2)  Fees, expenses and costs of registrars.
    25         (3)  Fees, expenses and costs of attorneys, accountants,
    26     feasibility consultants, computer programmers or other
    27     experts employed to aid in the sale and issuance of the
    28     bonds.
    29         (4)  Other costs, fees and expenses incurred or
    30     reasonably related to the issuance and sale of the bonds.
    20070H1590B2342                 - 160 -    

     1     "Bond-related obligation."  An agreement or contractual
     2  relationship between the Pennsylvania Turnpike Commission and a
     3  bank, trust company, insurance company, swap counterparty,
     4  surety bonding company, pension fund or other financial
     5  institution providing increased credit on or security for the
     6  bonds or liquidity for secondary market transactions.
     7     "Commission."  The Pennsylvania Turnpike Commission or any
     8  successor organization.
     9     "Cost of the department."
    10         (1)  Any of the following, which shall be reimbursed or
    11     paid out of the proceeds of the special revenue bonds, notes
    12     or other obligations authorized under this chapter:
    13             (i)  The cost of constructing, reconstructing,
    14         widening, expanding or extending the State highway and
    15         rural State highway system and all connecting roads,
    16         tunnels and bridges.
    17             (ii)  The cost of all lands, property rights, rights-
    18         of-way, easements and franchises acquired, which are
    19         deemed necessary or convenient for the construction,
    20         reconstruction, widening, expanding or extending under
    21         subparagraph (i).
    22             (iii)  The cost of all machinery and equipment,
    23         financing charges, interest prior to and during
    24         construction and for one year after completion of
    25         construction.
    26             (iv)  The cost of traffic estimates and of
    27         engineering and legal expenses, plans, specifications,
    28         surveys, estimates of cost and of revenues, other
    29         expenses necessary or incident to determining the
    30         feasibility or practicability of the enterprise,
    20070H1590B2342                 - 161 -    

     1         administrative and legal expenses and other expenses as
     2         may be necessary or incident to the financing authorized
     3         under this chapter, the construction, reconstruction,
     4         widening, expanding or extending of the State highway and
     5         the rural State highway system and connecting roads,
     6         tunnels and bridges, the placing of the same in operation
     7         and the condemnation of property necessary for
     8         construction and operation.
     9             (v)  Any obligation or expense contracted for by the
    10         Department of Transportation or with the United States or
    11         any agency of the United States, for traffic surveys,
    12         preparation of plans and specifications, supervision of
    13         construction, and other engineering, administrative and
    14         legal services and expenses in connection with the
    15         construction, reconstruction, widening, expanding or
    16         extending of the State highway and the rural State
    17         highway system or any of the connecting roads, tunnels
    18         and bridges.
    19         (2)  Payment of any notes or other obligations if the
    20     notes or other obligations were issued for the payment of a
    21     cost.
    22     "Design build arrangement."  A procurement or project
    23  delivery arrangement whereby a single entity, which may be a
    24  single contractor or a consortium comprised of multiple
    25  contractors, engineers and other subconsultants, is responsible
    26  for both the design and construction of a transportation project
    27  with a guaranteed completion date and guaranteed maximum price.
    28     "Owner."  The term shall include all individuals,
    29  copartnerships, associations or corporations having any title or
    30  interest in any property rights, easements or franchises
    20070H1590B2342                 - 162 -    

     1  authorized to be acquired by this chapter.
     2     "Pledged revenues."  Revenues of the Motor License Fund
     3  pledged to the Pennsylvania Turnpike Commission under sections
     4  9010 (relating to disposition and use of tax), 9511(i) (relating
     5  to allocation of proceeds) and 9511.11 (relating to Motor
     6  License Fund proceeds) and amounts payable by the commission
     7  under section 8915.3(4)(i) (relating to lease of Interstate 80).
     8     "Rural State Highway System."  All roads and highways taken
     9  over by the Commonwealth as State highways under the provisions
    10  of the act of June 22, 1931 (P.L.594, No.203), referred to as
    11  the Township State Highway Law and all other roads and highways
    12  specifically designated by the Secretary of Transportation as
    13  Rural State Highways.
    14     "State highway."  All roads and highways taken over by the
    15  Commonwealth as State highways under the provisions of any
    16  statute. Unless clearly intended, the term shall not include any
    17  street in any city, borough or incorporated town, even though
    18  the same may have been taken over as a State highway.
    19     Section 5.  Title 75 is amended by adding sections to read:
    20  § 9511.2.  Special revenue bonds payable solely from pledged
    21             revenues of Motor License Fund.
    22     (a)  Payment source.--A special revenue bond, note or other
    23  obligation issued under this chapter:
    24         (1)  shall not be deemed to be a debt or liability of the
    25     Commonwealth;
    26         (2)  shall not create or constitute any indebtedness,
    27     liability or obligation of the Commonwealth; and
    28         (3)  shall be payable solely from revenues of the Motor
    29     License Fund pledged to the commission for that purpose in
    30     combination with amounts transferred under section
    20070H1590B2342                 - 163 -    

     1     8915.3(4)(i) (relating to lease of Interstate 80).
     2     (b)  Statement.--A special revenue bond, note or other
     3  obligation issued under this chapter must contain a statement on
     4  its face that:
     5         (1)  the Commonwealth is not obligated to pay the bond,
     6     note or obligation or the interest on it except from revenues
     7     of the Motor License Fund pledged for that purpose in
     8     combination with amounts transferred under section
     9     8915.3(4)(i); and
    10         (2)  neither the faith and credit nor the taxing power of
    11     the Commonwealth is pledged to the payment of the principal
    12     or interest of the bond, note or obligation.
    13     (c)  Taxation.--The issuance of a special revenue bond, note
    14  or other obligation under this chapter shall not directly,
    15  indirectly or contingently obligate the Commonwealth to levy a
    16  tax or to make an appropriation for payment.
    17  § 9511.3.  Expenses.
    18     (a)  Reimbursement.--The commission shall be reimbursed for
    19  the necessary expenses incurred in the performance of the duties
    20  performed under the provisions of this chapter.
    21     (b)  Source.--All expenses incurred in carrying out the
    22  provisions of this chapter shall be paid solely from funds
    23  provided under the authority of this chapter, and sufficient
    24  funds shall be provided under the authority of this chapter to
    25  meet any liability or obligation incurred in carrying out the
    26  provisions of this chapter.
    27  § 9511.4.  Special revenue bonds and preliminary or interim
    28             financing.
    29     (a)  Authorization.--The commission is authorized to provide,
    30  by resolution, for the issuance of special revenue bonds of the
    20070H1590B2342                 - 164 -    

     1  commission up to an amount not exceeding $4,000,000,000 for the
     2  purpose of paying the cost of the department and bond-related
     3  expenses. The resolution must recite an estimate of the cost of
     4  the department. No more than $600,000,000 of special revenue
     5  bonds may be issued in any calendar year. No bond may be issued
     6  under this section unless the lease agreement authorized under
     7  section 8915.3 (relating to lease of Interstate 80) is in effect
     8  as of the date of issuance. Special revenue refunding bonds as
     9  set forth in section 9511.9 (relating to special revenue
    10  refunding bonds) shall not be deemed to count against the total
    11  or annual maximum issuance volume. The principal and interest of
    12  the bond shall be payable solely from revenues of the Motor
    13  License Fund pledged for that purpose to the commission in
    14  combination with the amounts transferred under section
    15  8915.3(4)(i).
    16     (b)  Form.--
    17         (1)  A bond may be issued in registered form.
    18         (2)  A bond:
    19             (i)  must be dated;
    20             (ii)  must bear interest at a rate not exceeding the
    21         rate permitted under applicable law;
    22             (iii)  must be payable semiannually;
    23             (iv)  must mature, as determined by the commission,
    24         not exceeding 40 years from the date of the bond; and
    25             (v)  may be made redeemable before maturity, at the
    26         option of the commission, at a price and under terms and
    27         conditions fixed by the commission prior to the issuance
    28         of the bonds.
    29         (3)  The amount of premium on a bond shall not cause the
    30     yield to be more than permitted by applicable law from the
    20070H1590B2342                 - 165 -    

     1     date of the bond to the date of redemption.
     2     (c)  Issuance.--
     3         (1)  The bond may be issued in registered form. The
     4     commission may sell a bond in registered form at public or
     5     private sale and for a price it determines to be in the best
     6     interest of the Commonwealth, but no sale shall be made at a
     7     price so low as to require the payment of interest on the
     8     money received for the bond at more than the rate permitted
     9     by applicable law, computed with relation to the absolute
    10     maturity of the bond in accordance with standard tables of
    11     bond values.
    12         (2)  A bond may be issued at public or private sale in
    13     series with varying provisions as to all of the following:
    14             (i)  Rates of interest, which may be fixed or
    15         variable.
    16             (ii)  Maturity.
    17             (iii)  Other provisions not inconsistent with this
    18         chapter.
    19     (d)  Revenue share.--All bonds, of whatever series, shall
    20  share ratably in the revenues pledged under this chapter as
    21  security for the bonds, although one series of bonds may have a
    22  lien on pledged revenues senior to the lien of another series of
    23  bonds.
    24     (e)  Payment.--
    25         (1)  The principal and interest of the bonds may be made
    26     payable in any lawful medium.
    27         (2)  The commission shall:
    28             (i)  determine the form of bonds; and
    29             (ii)  fix:
    30                 (A)  the denomination of the bond; and
    20070H1590B2342                 - 166 -    

     1                 (B)  the place of payment of principal and
     2             interest of the bond, which may be at any bank or
     3             trust company within or without this Commonwealth.
     4     (f)  Signature.--The bond must bear the facsimile signature
     5  of the Governor and of the chairman of the commission. The
     6  facsimile of the official seal of the commission shall be
     7  affixed to the bond and attested by the secretary and treasurer
     8  of the commission. If an officer whose signature or facsimile of
     9  a signature appears on a bond ceases to be an officer before the
    10  delivery of the bond, the signature or facsimile shall
    11  nevertheless be valid and sufficient for all purposes, as if the
    12  officer remained in office until delivery.
    13     (g)  Negotiability.--A special revenue bond issued under this
    14  chapter shall have all the qualities and incidents of a
    15  negotiable instrument under 13 Pa.C.S. Div. 3 (relating to
    16  negotiable instruments).
    17     (h)  Proceeds.--
    18         (1)  The proceeds of a bond shall be used solely for the
    19     following:
    20             (i)  Payment of the cost of the department.
    21             (ii)  Bond-related expenses.
    22             (iii)  $5,000,000 in the aggregate of the proceeds of
    23         bonds issued in any fiscal year, other than a refunding
    24         issue, shall be used for county roads and bridges and
    25         $30,000,000 of the proceeds in the aggregate of the bonds
    26         issued in any fiscal year, other than a refunding issue,
    27         shall be used for local roads and bridges to be allocated
    28         under the act of June 1, 1956 (1955 P.L.1944, No.655),
    29         referred to as the Liquid Fuels Tax Municipal Allocation
    30         Law.
    20070H1590B2342                 - 167 -    

     1         (2)  The proceeds of a bond shall be disbursed upon
     2     requisition of the secretary under restrictions set forth in
     3     the resolution authorizing the issuance of the bond or the
     4     trust indenture under section 9511.6 (relating to trust
     5     indenture, protection of holders of obligations and
     6     depositories).
     7         (3)  If the proceeds of a bond, by error of calculation
     8     or otherwise, shall be less than the cost of the department,
     9     additional bonds may be issued to provide the amount of the
    10     deficit and, unless otherwise provided in the resolution
    11     authorizing the issuance of the bonds or in the trust
    12     indenture, shall be deemed to be of the same issue and shall
    13     be entitled to payment from the same fund, without preference
    14     or priority of the bonds first issued.
    15     (i)  Temporary bonds.--Prior to the preparation of definitive
    16  bonds, the commission may, under similar restrictions as those
    17  applicable to the definitive bonds, issue temporary bonds,
    18  exchangeable for definitive bonds upon the issuance of
    19  definitive bonds.
    20     (j)  Replacement bonds.--The commission may provide for the
    21  replacement of a bond which becomes mutilated or is destroyed or
    22  lost. A replacement revenue bond may be issued without any other
    23  proceedings or the happening of any other condition than those
    24  proceedings and conditions required by this chapter.
    25     (k)  Status as securities.--
    26         (1)  A bond is made a security in which any of the
    27     following may properly and legally invest funds, including
    28     capital, belonging to them or within their control:
    29             (i)  Commonwealth and municipal officers.
    30             (ii)  Commonwealth agencies.
    20070H1590B2342                 - 168 -    

     1             (iii)  Banks, bankers, savings banks, trust
     2         companies, saving and loan associations, investment
     3         companies and other persons carrying on a banking
     4         business.
     5             (iv)  Insurance companies, insurance associations and
     6         other persons carrying on an insurance business.
     7             (v)  Fiduciaries.
     8             (vi)  Other persons that are authorized to invest in
     9         bonds or other obligations of the Commonwealth.
    10         (2)  A bond is made a security which may properly and
    11     legally be deposited with and received by a Commonwealth or
    12     municipal officer or a Commonwealth agency for any purpose
    13     for which the deposit of bonds or other obligations of the
    14     Commonwealth is authorized by law.
    15     (l)  Borrowing.--The following shall apply:
    16         (1)  The commission is authorized to do all of the
    17     following:
    18             (i)  Borrow money at an interest rate not exceeding
    19         the rate permitted by law.
    20             (ii)  Provide for preliminary or interim financing,
    21         up to but not exceeding the estimated total cost of the
    22         department and bond-related expenses and to evidence the
    23         borrowing by the issuance of special revenue notes and,
    24         in its discretion, to pledge as collateral for the note
    25         or other obligation, a special revenue bond issued under
    26         the provisions of this chapter. The commission may renew
    27         the note or obligation and the payment or retirement of
    28         the note or obligation shall be considered to be payment
    29         of the cost of the project.
    30         (2)  A note or obligation issued under this subsection
    20070H1590B2342                 - 169 -    

     1     must comply with the following:
     2             (i)  Be executed by the same persons in the same
     3         manner and with the same effect as provided in this
     4         section for the execution of a special revenue bond.
     5             (ii)  Contain a statement on its face that:
     6                 (A)  the Commonwealth is not obligated to pay the
     7             note or obligation or interest on it, except from
     8             pledged revenues of the Motor License Fund; and
     9                 (B)  neither the faith and credit nor the taxing
    10             power of the Commonwealth is pledged to the payment
    11             of its principal or interest.
    12         (3)  The issuance of a special revenue note or other
    13     obligation under this chapter shall not directly or
    14     indirectly or contingently obligate the Commonwealth to levy
    15     a tax or make an appropriation for  payment.
    16         (4)  A note or other obligation issued under this
    17     subsection shall have all the qualities and incidents of a
    18     negotiable instrument under 13 Pa.C.S. (relating to
    19     commercial code).
    20  § 9511.5.  Application of proceeds of obligations, lien of
    21             holders of obligations, design-build requirement and
    22             projects approved by General Assembly.
    23     (a)  Application.--The following shall apply:
    24         (1)  All money received from any bonds, notes or other
    25     obligations issued under this chapter shall be applied solely
    26     to the payment of the cost of the department or to the
    27     appurtenant fund.
    28         (2)  Until money received from any bonds, notes or other
    29     obligations issued under this chapter is applied under
    30     paragraph (1), a lien shall exist upon the money in favor of
    20070H1590B2342                 - 170 -    

     1     holders of the bonds, notes or other obligations or a trustee
     2     provided for in respect to the bonds, notes or other
     3     obligations.
     4     (b)  Design-build arrangements.--To facilitate the timely
     5  completion of projects to be financed by the department with
     6  bond proceeds, the department shall be required to utilize
     7  design-build arrangements for each project estimated by the
     8  department to have a value in excess of $100,000,000. The
     9  selection of the party for the design-build arrangement must be
    10  conducted in a manner consistent with the procurement and public
    11  bidding laws applicable to the department.
    12     (c)  Capital plan.--All projects financed by the department
    13  with bond proceeds must be set forth in the department's capital
    14  plan current at the time of the financing and budget which
    15  capital plan and budget shall be submitted to the General
    16  Assembly on or before March 31 of each year commencing March 31,
    17  2008.
    18     (d)  Investment.--Pending the application of proceeds to
    19  costs of the department and bond-related expenses, the
    20  commission may invest the funds in permitted investments as
    21  defined under any trust indenture if the investment is not
    22  inconsistent with existing fiduciary obligations of the
    23  commission.
    24  § 9511.6.  Trust indenture, protection of holders of obligations
    25             and depositories.
    26     (a)  Indenture.--In the discretion of the commission, a bond,
    27  note or other obligation may be secured by a trust indenture by
    28  and between the commission and a corporate trustee, which may be
    29  any trust company or bank having the powers of a trust company,
    30  within or without this Commonwealth.
    20070H1590B2342                 - 171 -    

     1     (b)  Pledge or assignment.--A trust indenture under
     2  subsection (a) may pledge or assign revenue to be received, but
     3  shall not convey or mortgage the turnpike or any part of the
     4  turnpike.
     5     (c)  Rights and remedies.--The resolution providing for the
     6  issuance of the bond, note or other obligation of the trust
     7  indenture may contain provisions for protecting and enforcing
     8  the rights and remedies of the bondholders or holders of notes
     9  or other obligations as may be reasonable and proper and not in
    10  violation of law, including covenants setting forth the duties
    11  of the department in relation to the acquisition of properties,
    12  the construction, maintenance, operation, repair and insurance
    13  of the State highway and rural State highway system and the
    14  custody, safeguarding and application of all money.
    15     (d)  Depository.--It shall be lawful for any bank or trust
    16  company incorporated under the laws of this Commonwealth to act
    17  as depository of the proceeds of the bond, note or other
    18  obligation or revenue, to furnish indemnity bonds or to pledge
    19  securities as may be required by the commission.
    20     (e)  Indenture.--The trust indenture may set forth the rights
    21  and remedies of the bondholders or holders of notes or other
    22  obligations and of the trustee and may restrict the individual
    23  right of action of bondholders or holders of notes or other
    24  obligations as is customary in trust indentures securing bonds,
    25  debentures of corporations, notes or other obligations. The
    26  trust indenture may contain other provisions as the commission
    27  may deem reasonable and proper for the security of bondholders
    28  or holders of notes or other obligations.
    29  § 9511.7.  Exemption from Commonwealth taxation.
    30     The effectuation of the purposes of this chapter is for the
    20070H1590B2342                 - 172 -    

     1  benefit of the citizens of the Commonwealth and for the
     2  improvement of their commerce and prosperity. Since the
     3  commission will be performing essential government functions in
     4  effectuating these purposes, the commission shall not be
     5  required to pay any tax or assessment on any property acquired
     6  or used by it for the purposes provided under this chapter. A
     7  bond, note or other obligation issued by the commission, its
     8  transfer and the income from its issuance and transfer,
     9  including any profits made on the sale of the bond, note or
    10  other obligation, shall be free from taxation within the
    11  Commonwealth.
    12  § 9511.8.  Pledged revenues, contracts for use of turnpike,
    13             sinking fund and purchase or redemption of
    14             obligations.
    15     (a)  Authorization.--The commission is authorized to collect
    16  the pledged revenues. The pledged revenues shall be fixed and
    17  adjusted as to provide funds at least sufficient to pay the
    18  bonds, notes or other obligations and the interest on the bonds,
    19  notes or other obligations. All sinking fund requirements and
    20  other requirements provided by the resolution authorizing the
    21  issuance of the bonds, notes or other obligations, or by the
    22  trust indenture, shall be fixed and adjusted as the bonds, notes
    23  or other obligations become due.
    24     (b)  Supervision.--The pledged revenues shall not be subject
    25  to supervision or regulation by any Commonwealth agency other
    26  than the commission.
    27     (c)  Set aside.--Except for the portion of the pledged
    28  revenues required to provide reserves as set forth in the
    29  resolution authorizing the issuance of the bonds, notes or other
    30  obligations or in the trust indenture, pledged revenues, to the
    20070H1590B2342                 - 173 -    

     1  degree amounts transferred under section 8915.3(4)(i)(relating
     2  to lease of Interstate 80) are not sufficient, shall be set
     3  aside at regular intervals as may be provided in the resolution
     4  or trust indenture, in one or more accounts, which are pledged
     5  to and charged with the payment of all of the following:
     6         (1)  The interest upon a bond, note or other obligation,
     7     as it shall become due and payable.
     8         (2)  The principal of a bond, note or other obligation,
     9     as it  shall become due and payable.
    10         (3)  The necessary fiscal agency charges for paying
    11     principal and interest.
    12         (4)  A premium upon a bond retired by call or purchase.
    13     (d)  Sinking fund.--The use and disposition of the sinking
    14  fund shall be subject to regulations as may be provided in the
    15  resolution authorizing the issuance of bonds, notes or other
    16  obligations or in the trust indenture, but, except as may
    17  otherwise be provided in the resolution or trust indenture, the
    18  sinking fund shall be a fund for the benefit of all bonds, notes
    19  or other obligations issued under this chapter, without
    20  distinction or priority of one over another.
    21     (e)  Application of money.--Subject to the provisions of the
    22  resolutions authorizing the issuance of bonds, notes or other
    23  obligations or of the trust indenture, any money in the sinking
    24  fund in excess of an amount equal to one year's interest on all
    25  bonds, notes or other obligations then outstanding may be
    26  applied to the purchase or redemption of bonds, notes or other
    27  obligations. All bonds, notes or other obligations purchased or
    28  redeemed under this subsection shall be canceled and shall not
    29  again be issued.
    30  § 9511.9.  Special revenue refunding bonds.
    20070H1590B2342                 - 174 -    

     1     The commission is authorized to provide, by resolution, for
     2  the issuance of special revenue refunding bonds of the
     3  commission for the purpose of refunding any special revenue
     4  bonds, notes or other obligations issued under the provisions of
     5  this chapter and then outstanding. The issuance of the special
     6  revenue refunding bonds, the maturities and other details of the
     7  bonds, the rights of the holders of the bonds and the duties of
     8  the department and of the commission with respect to the bonds
     9  shall be governed by the provisions of this chapter.
    10  § 9511.10.  Remedies of trustees and of holders of obligations.
    11     (a)  Grant of rights.--A holder of a bond, note or other
    12  obligation issued under this chapter and the trustee under the
    13  trust indenture may, either at law or in equity, by suit,
    14  action, mandamus or other proceeding, do all of the following:
    15         (1)  Protect and enforce any right granted under this
    16     chapter or under the resolution or trust indenture.
    17         (2)  Enforce and compel performance of all duties
    18     required under this chapter or by resolution or trust
    19     indenture to be performed by the commission or any officer of
    20     its officers, including the collection of the pledged
    21     reserves or amounts transferred under section 8915.3(4)(i)
    22     (relating to lease of Interstate 80).
    23     (b)  Exception.--Rights given under this chapter may be
    24  restricted by resolution passed before the issuance of the
    25  bonds, notes or other obligations, or by the trust indenture.
    26  § 9511.11.  Motor License Fund proceeds.
    27     The balance of the proceeds deposited in the Motor License
    28  Fund under section 20 of the act of April 17, 1997 (P.L.6,
    29  No.3), entitled, "An act amending Titles 74 (Transportation) and
    30  75 (Vehicles) of the Pennsylvania Consolidated Statutes, further
    20070H1590B2342                 - 175 -    

     1  providing for annual appropriation and computation of subsidy
     2  and for distribution of funding; providing for distribution of
     3  supplemental funding; further providing for use of funds
     4  distributed; providing for public transportation grants
     5  management accountability, for competitive procurement and for
     6  the Public Transportation Assistance Fund; further providing for
     7  period of registration, for duties of agents, for registration
     8  and other fees, for requirements for periodic inspection of
     9  vehicles, for limits on number of towed vehicles, for operation
    10  of certain combinations on interstate and other highways and for
    11  width and length of vehicles; providing for liquid fuels and
    12  fuels permits and bond or deposit of securities, for imposition
    13  of liquid fuels and fuels tax, for taxpayer, for distributor's
    14  report and payment of tax, for determination of tax, penalties
    15  and interest, for examination of records and equipment, for
    16  retention of records by distributors and dealers, for
    17  disposition and use of tax, for discontinuance or transfer of
    18  business, for suspension or revocation of permits, for lien of
    19  taxes, penalties and interest, for collection of unpaid taxes,
    20  for reports from common carriers, for violations and reward for
    21  detection of violations, for refunds, for diesel fuel importers
    22  and transporters, for prohibiting use of dyed diesel fuel, for
    23  disposition of fees, fines and forfeitures, for certified copies
    24  of records and for uncollectible checks; further providing for
    25  distribution of State highway maintenance funds and for
    26  standards and methodology for data collection; providing for
    27  dirt and gravel road maintenance; further providing for
    28  imposition of tax and additional tax; providing for tax on
    29  alternative fuels; further providing for disposition of tax
    30  revenue; making an appropriation; and making repeals," is
    20070H1590B2342                 - 176 -    

     1  pledged to secure bonds issued by the commission. The proceeds
     2  may be pledged to secure bonds to be issued by the commission on
     3  behalf of the department for the construction, reconstruction,
     4  widening, expansion, extension, maintenance and repair of and
     5  safety on bridges and costs and expenses incident to those tasks
     6  and fees and expenses of the commission related to the issuance
     7  of the bonds, including bond-related expenses. Each month, the
     8  State Treasurer shall transfer amounts as are necessary, in
     9  combination with amounts transferred under sections
    10  8915.3(4)(i)(relating to lease of Interstate 80) and 9511
    11  (relating to allocation of proceeds) to satisfy the provisions
    12  of the bond indenture relating to bonds issued under this
    13  section and those amounts are authorized to be appropriated.
    14  § 9511.12.  Supplement to other laws and liberal construction.
    15     This chapter shall be regarded as supplemental and additional
    16  to powers conferred by other statutes and shall not be regarded
    17  as in derogation of any powers existing on the effective date of
    18  this section. The provisions of this chapter, being necessary
    19  for the welfare of the Commonwealth and its citizens shall be
    20  liberally construed to effect the purposes of this chapter.
    21     Section 6.  (a)  Financial assistance made by the Department
    22  of Transportation to an award recipient under 74 Pa.C.S. Ch. 13
    23  prior to the effective date of this section may continue to be
    24  used by award recipients for operating or capital expenses upon
    25  the same terms and conditions as are contained in the notice of
    26  grant award or grant agreement executed in connection with the
    27  award, if the funds are expended within five years following the
    28  effective date of this section.
    29     (b)  The Department of Transportation may continue to use all
    30  funds appropriated or otherwise made available to it for public
    20070H1590B2342                 - 177 -    

     1  transportation purposes prior to the effective date of this
     2  section in accordance with the laws under which the funds were
     3  made available.
     4     Section 7.  The following shall apply:
     5         (1)  The General Assembly declares that the repeal under
     6     paragraph (2) is necessary to effectuate the addition of 74
     7     Pa.C.S. Ch. 81.
     8         (2)  The act of September 30, 1985 (P.L.240, No.61),
     9     known as the Turnpike Organization, Extension and Toll Road
    10     Conversion Act is repealed.
    11         (3)  Section 207.1(c)(2) of the act of April 9, 1929
    12     (P.L.177, No.175), known as The Administrative Code of 1929,
    13     is repealed insofar as it is inconsistent with the addition
    14     of 74 Pa.C.S. § 8105.
    15         (4)  Sections 2301(a) and (b) of the act of March 4, 1971
    16     (P.L.6, No.2), known as the Tax Reform Code of 1971, insofar
    17     as they relate to the establishment and existence of the
    18     Public Transportation Assistance Fund are repealed.
    19         (5)  All other acts and parts of acts are repealed
    20     insofar as they are inconsistent with this act.
    21     Section 8.  The addition of 74 Pa.C.S. Ch. 81 is a
    22  continuation of the act of September 30, 1985 (P.L.240, No.61),
    23  known as the Turnpike Organization, Extension and Toll Road
    24  Conversion Act. The following shall apply:
    25         (1)  Except as otherwise provided under 74 Pa.C.S. Ch.
    26     81, all activities initiated under the Turnpike Organization,
    27     Extension and Toll Road Conversion Act shall continue and
    28     remain in full force and effect and may be completed under 74
    29     Pa.C.S. Ch. 81. Orders, regulations, rules and decisions
    30     which were made under the Turnpike Organization, Extension
    20070H1590B2342                 - 178 -    

     1     and Toll Road Conversion Act and which are in effect on the
     2     effective date of section 7(2) of this act shall remain in
     3     full force and effect until revoked, vacated or modified
     4     under 74 Pa.C.S. Ch. 81. Contracts, obligations and
     5     collective bargaining agreements entered into under the
     6     Turnpike Organization, Extension and Toll Road Conversion Act
     7     are not affected nor impaired by the repeal of the Turnpike
     8     Organization, Extension and Toll Road Conversion Act.
     9         (2)  Except as set forth in paragraph (3), any difference
    10     in language between 74 Pa.C.S. Ch. 81 and the Turnpike
    11     Organization, Extension and Toll Road Conversion Act is
    12     intended only to conform to the style of the Pennsylvania
    13     Consolidated Statutes and is not intended to change or affect
    14     the legislative intent, judicial construction or
    15     administration and implementation of the Turnpike
    16     Organization, Extension and Toll Road Conversion Act.
    17         (3)  Paragraph (2) does not apply to the addition of 74
    18     Pa.C.S. § 8105.
    19     Section 9.  This act shall take effect as follows:
    20         (1)  The following provisions shall take effect
    21     immediately:
    22             (i)  The addition of 74 Pa.C.S. § 8105.
    23             (ii)  Section 7(3) of this act.
    24             (iii)  This section.
    25         (2)  The remainder of this act shall take effect in 60
    26     days.
    27     SECTION 3.  TITLE 74 IS AMENDED BY ADDING A CHAPTER CHAPTERS   <--
    28  TO READ:
    29                             CHAPTER 15
    30                    SUSTAINABLE MOBILITY OPTIONS
    20070H1590B2342                 - 179 -    

     1  SEC.
     2  1501.  SCOPE OF CHAPTER.
     3  1502.  (RESERVED).
     4  1503.  DEFINITIONS.
     5  1504.  DEPARTMENT AUTHORIZATION.
     6  1505.  REGULATIONS.
     7  1506.  FUND.
     8  1507.  APPLICATION AND APPROVAL PROCESS.
     9  1508.  FEDERAL FUNDING.
    10  1509.  LIMITATION ON DECISIONS, FINDINGS AND REGULATIONS OF
    11         DEPARTMENT.
    12  1510.  PROGRAM OVERSIGHT AND ADMINISTRATION.
    13  1511.  REPORT TO GOVERNOR AND GENERAL ASSEMBLY.
    14  1512.  COORDINATION.
    15  1513.  OPERATING PROGRAM.
    16  1514.  ASSET IMPROVEMENT PROGRAM.
    17  1515.  NEW INITIATIVES PROGRAM.
    18  1516.  PROGRAMS OF STATEWIDE SIGNIFICANCE.
    19  1517.  CAPITAL IMPROVEMENTS PROGRAM.
    20  1518.  PROGRAM OVERSIGHT AND ADMINISTRATION.
    21  1519.  RETROACTIVE AUTHORITY.
    22  1520.  EVALUATION OF PRIVATE INVESTMENT OPPORTUNITIES.            <--
    23  § 1501.  SCOPE OF CHAPTER.
    24     THIS CHAPTER RELATES TO SUSTAINABLE MOBILITY OPTIONS.
    25  § 1502.  (RESERVED).
    26  § 1503.  DEFINITIONS.
    27     THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
    28  SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
    29  CONTEXT CLEARLY INDICATES OTHERWISE:
    30     "ACCESS TO JOBS PROJECT."  A PROJECT RELATING TO THE
    20070H1590B2342                 - 180 -    

     1  DEVELOPMENT AND MAINTENANCE OF TRANSPORTATION SERVICES DESIGNED
     2  TO TRANSPORT WELFARE RECIPIENTS AND ELIGIBLE LOW-INCOME
     3  INDIVIDUALS TO AND FROM JOBS AND ACTIVITIES RELATED TO THEIR
     4  EMPLOYMENT AS DEFINED UNDER 49 U.S.C. § 5316 (RELATING TO JOB
     5  ACCESS AND REVERSE COMMUTE FORMULA GRANTS).
     6     "AMERICANS WITH DISABILITIES ACT."  THE AMERICANS WITH
     7  DISABILITIES ACT OF 1990 (PUBLIC LAW 101-336, 104 STAT. 327).
     8     "ASSET MAINTENANCE COSTS."  ALL VEHICLE MAINTENANCE EXPENSES,
     9  NONVEHICLE MAINTENANCE AND MATERIALS EXPENSES AND THE COST OF
    10  SUPPLIES USED IN THE OPERATION OF LOCAL TRANSPORTATION
    11  ORGANIZATIONS AND TRANSPORTATION COMPANIES.
    12     "AWARD RECIPIENT."  A RECIPIENT OF FINANCIAL ASSISTANCE UNDER
    13  THIS CHAPTER.
    14     "BASE OPERATING ALLOCATION."  THE TOTAL AMOUNT OF STATE
    15  OPERATING ASSISTANCE, REIMBURSEMENT IN LIEU OF FARES FOR SENIOR
    16  PASSENGERS AND OTHER ASSISTANCE WHICH WAS USED FOR OPERATING
    17  ASSISTANCE AS DETERMINED BY THE DEPARTMENT IN FISCAL YEAR 2005-
    18  2006.
    19     "CAPITAL EXPENDITURES."  ALL COSTS OF CAPITAL PROJECTS,
    20  INCLUDING, BUT NOT LIMITED TO, THE COSTS OF ACQUISITION,
    21  CONSTRUCTION, INSTALLATION, START-UP OF OPERATIONS, IMPROVEMENTS
    22  AND ALL WORK AND MATERIALS INCIDENT THERETO.
    23     "CAPITAL PROJECT."  A SYSTEM OR COMPONENT OF THE A SYSTEM FOR  <--
    24  THE PROVISION OF PUBLIC PASSENGER TRANSPORTATION. THE TERM
    25  INCLUDES VEHICLES; INFRASTRUCTURE POWER; PASSENGER AMENITIES;
    26  STORAGE AND MAINTENANCE BUILDINGS; PARKING FACILITIES; THE LAND
    27  ON WHICH ANY CAPITAL PROJECT IS SITUATED AND THE LAND NEEDED TO
    28  SUPPORT IT, WHETHER OWNED IN WHOLE OR IN PART; OVERHAUL OF
    29  VEHICLES; DEBT SERVICE AND THE COST OF ISSUANCE OF BONDS, NOTES
    30  AND OTHER EVIDENCES OF INDEBTEDNESS WHICH A LOCAL TRANSPORTATION
    20070H1590B2342                 - 181 -    

     1  ORGANIZATION OR TRANSPORTATION COMPANY IS PERMITTED TO ISSUE
     2  UNDER ANY LAW OF THIS COMMONWEALTH.
     3     "COMMONWEALTH CAPITAL BONDS."  EVIDENCE OF DEBT INCURRED BY
     4  THE COMMONWEALTH UNDER THE ACT OF FEBRUARY 9, 1999 (P.L.1,
     5  NO.1), KNOWN AS THE CAPITAL FACILITIES DEBT ENABLING ACT.
     6     "COMMUNITY TRANSPORTATION SERVICE" OR "SHARED RIDE SERVICE."
     7  DOOR-TO-DOOR DEMAND TRANSPORTATION THAT IS AVAILABLE TO THE
     8  GENERAL PUBLIC ON A NONEXCLUSIVE BASIS, OPERATES ON A NONFIXED
     9  ROUTE BASIS AND CHARGES A FARE TO ALL RIDERS. THE TERM DOES NOT
    10  INCLUDE EXCLUSIVE RIDE TAXI SERVICE, CHARTER AND SIGHTSEEING
    11  SERVICE, NONPUBLIC TRANSPORTATION, SCHOOL BUS AND LIMOUSINE
    12  SERVICE.
    13     "COMMUNITY TRANSPORTATION SYSTEM."  A PERSON THAT PROVIDES
    14  COMMUNITY TRANSPORTATION SERVICE AND CONTRACTS WITH THE
    15  DEPARTMENT OF TRANSPORTATION TO RECEIVE REVENUE REPLACEMENT
    16  FUNDS.
    17     "DEPARTMENT."  THE DEPARTMENT OF TRANSPORTATION OF THE
    18  COMMONWEALTH.
    19     "FINANCIAL ASSISTANCE."  GRANTS OR OTHER TYPES OF FINANCIAL
    20  SUPPORT PROVIDED BY THE DEPARTMENT OF TRANSPORTATION UNDER THIS
    21  CHAPTER.
    22     "FIXED GUIDEWAY SYSTEM."  A FIXED-ROUTE PUBLIC TRANSPORTATION
    23  SERVICE THAT USES AND OCCUPIES A SEPARATE RIGHT-OF-WAY OR RAIL
    24  LINE FOR THE EXCLUSIVE USE OF PUBLIC TRANSPORTATION AND OTHER
    25  HIGH OCCUPANCY VEHICLES OR USES A FIXED CATENARY SYSTEM AND A
    26  RIGHT-OF-WAY USABLE BY OTHER FORMS OF TRANSPORTATION. THE TERM
    27  INCLUDES LIGHT RAIL, COMMUTER RAIL, AUTOMATED GUIDEWAY TRANSIT,
    28  PEOPLE MOVERS, FERRY BOAT SERVICE AND FIXED GUIDEWAY FACILITIES
    29  FOR BUSES SUCH AS BUS RAPID TRANSIT AND HIGH OCCUPANCY VEHICLES.
    30     "FIXED-ROUTE PUBLIC TRANSPORTATION SERVICE."  REGULARLY
    20070H1590B2342                 - 182 -    

     1  SCHEDULED GENERAL PUBLIC TRANSPORTATION THAT IS PROVIDED
     2  ACCORDING TO PUBLISHED SCHEDULES ALONG DESIGNATED ROUTES, WITH
     3  SPECIFIED STOPPING POINTS FOR THE TAKING ON AND DISCHARGING OF
     4  PASSENGERS, INCLUDING PUBLIC BUS AND COMMUTER RAIL SYSTEMS AND
     5  OTHER DEPARTMENT-APPROVED SERVICE. THE TERM DOES NOT INCLUDE
     6  EXCLUSIVE RIDE TAXI SERVICE, CHARTER OR SIGHTSEEING SERVICE,
     7  NONPUBLIC TRANSPORTATION, SCHOOL BUS AND LIMOUSINE SERVICE.
     8     "FUND."  THE PUBLIC TRANSPORTATION TRUST FUND ESTABLISHED
     9  UNDER SECTION 1506 (RELATING TO FUND).
    10     "INTERCITY BUS SERVICE."  PASSENGER BUS SERVICE OF 35 MILES
    11  OR MORE IN LENGTH THAT IS PROVIDED WITH AN OVER-THE-ROAD BUS AND
    12  OPERATED BETWEEN TWO NONCONTIGUOUS URBANIZED AREAS, BETWEEN AN
    13  URBANIZED AREA LOCATED IN ONE COUNTY AND RURAL COMMUNITIES
    14  LOCATED IN ANOTHER COUNTY OR BETWEEN RURAL COMMUNITIES LOCATED
    15  IN DIFFERENT COUNTIES AND CONTAINS ALL OF THE FOLLOWING
    16  ELEMENTS:
    17         (1)  SERVICE THAT IS OPERATED FOR A FARE ON A REGULARLY
    18     SCHEDULED FIXED-ROUTE BASIS.
    19         (2)  SERVICE THAT IS OFFERED TO AND UTILIZED BY THE
    20     GENERAL PUBLIC WITHOUT PRECONDITIONS OF ADVANCE RESERVATION
    21     OR MEMBERSHIP IN A PARTICULAR ORGANIZATION.
    22     "INTERCITY PASSENGER RAIL SERVICE."  PASSENGER RAILROAD
    23  SERVICE THAT CONNECTS TWO OR MORE URBANIZED AREAS AND IS
    24  DETERMINED BY THE DEPARTMENT OF TRANSPORTATION TO QUALIFY AS
    25  INTERCITY SERVICE RATHER THAN COMMUTER RAIL SERVICE.
    26     "JOB ACCESS AND REVERSE COMMUTE PROJECT."  A PROJECT FUNDED
    27  BY THE FEDERAL TRANSIT ADMINISTRATION UNDER FEDERAL LAW.
    28     "LOCAL TRANSPORTATION ORGANIZATION."  ANY OF THE FOLLOWING:
    29         (1)  A POLITICAL SUBDIVISION OR A PUBLIC TRANSPORTATION
    30     PORT AUTHORITY, PORT AUTHORITY OR REDEVELOPMENT AUTHORITY,     <--
    20070H1590B2342                 - 183 -    

     1     ORGANIZED UNDER THE LAWS OF THIS COMMONWEALTH OR PURSUANT TO
     2     AN INTERSTATE COMPACT OR OTHERWISE EMPOWERED TO RENDER,
     3     CONTRACT FOR THE RENDERING OR ASSIST IN THE RENDERING OF
     4     TRANSPORTATION SERVICE IN A LIMITED AREA IN THIS
     5     COMMONWEALTH, EVEN THOUGH IT MAY ALSO RENDER OR ASSIST IN
     6     RENDERING TRANSPORTATION SERVICE IN ADJACENT STATES.
     7         (2)  A NONPROFIT ASSOCIATION THAT DIRECTLY OR INDIRECTLY
     8     PROVIDES PUBLIC TRANSPORTATION SERVICE.
     9         (3)  A NONPROFIT ASSOCIATION OF PUBLIC TRANSPORTATION
    10     PROVIDERS OPERATING WITHIN THIS COMMONWEALTH.
    11     "MATERIALS AND SUPPLIES."  THOSE CATEGORIES OF EXPENSES AS
    12  SPECIFIED IN UNIFORM SYSTEM OF ACCOUNTS EXPENSE OBJECT CLASS
    13  504, NATIONAL TRANSIT DATABASE OPERATING EXPENSES FORM F 30,
    14  NATIONAL TRANSIT DATABASE, FINAL RULE, FEDERAL TRANSIT
    15  ADMINISTRATION, DATED JANUARY 15, 1993, OR ANY SUCCESSOR.
    16     "NEW FIXED GUIDEWAY SYSTEM."  A NEWLY CONSTRUCTED FIXED
    17  GUIDEWAY SYSTEM IN A CORRIDOR OR ALIGNMENT WHERE NO SUCH SYSTEM
    18  PREVIOUSLY EXISTED.
    19     "NEW FREEDOM PROGRAM."  A PUBLIC TRANSPORTATION PROGRAM
    20  DESIGNED TO PROVIDE FUNDS TO RECIPIENTS FOR NEW PUBLIC
    21  TRANSPORTATION SERVICES AND PUBLIC TRANSPORTATION ALTERNATIVES
    22  BEYOND THOSE REQUIRED BY THE AMERICANS WITH DISABILITIES ACT OF
    23  1990 (PUBLIC LAW 101-336, 104 STAT. 327) THAT ASSIST INDIVIDUALS
    24  WITH DISABILITIES WITH TRANSPORTATION, INCLUDING TRANSPORTATION
    25  TO AND FROM JOBS AND EMPLOYMENT SUPPORT SERVICES ADMINISTERED
    26  UNDER THE PROVISIONS OF 49 U.S.C. § 5317 (RELATING TO NEW
    27  FREEDOM PROGRAM).
    28     "NEW START."  THE TERM SHALL HAVE THE SAME MEANING GIVEN IT
    29  IN 49 CFR § 611.5 (RELATING TO DEFINITIONS).
    30     "NONURBANIZED AREA."  AN AREA WITHIN THIS COMMONWEALTH THAT
    20070H1590B2342                 - 184 -    

     1  DOES NOT FALL WITHIN AN AREA CLASSIFIED AS "URBANIZED" BY THE
     2  UNITED STATES BUREAU OF THE CENSUS OF THE UNITED STATES
     3  DEPARTMENT OF COMMERCE IN THE MOST RECENT CENSUS OF POPULATION.
     4     "NONVEHICLE MAINTENANCE EXPENSES."  THE CATEGORIES OF COSTS
     5  ASSOCIATED WITH THE INSPECTION, MAINTENANCE AND REPAIR OF
     6  ASSETS, OTHER THAN VEHICLES, AS SPECIFIED IN UNIFORM SYSTEM OF
     7  ACCOUNTS, EXPENSE FUNCTION 042, NATIONAL TRANSIT DATABASE
     8  OPERATING EXPENSES FORM, F 30, NATIONAL TRANSIT DATABASE, FINAL
     9  RULE, FEDERAL TRANSIT ADMINISTRATION, DATED JANUARY 15, 1993, OR
    10  ANY SUCCESSOR.
    11     "OPERATING EXPENSES."  TOTAL EXPENSES REQUIRED TO CONTINUE
    12  SERVICE TO THE PUBLIC AND TO PERMIT NEEDED IMPROVEMENTS IN
    13  SERVICE WHICH ARE NOT SELF-SUPPORTING AND OTHERWISE FOR ANY
    14  PURPOSE IN FURTHERANCE OF PUBLIC PASSENGER TRANSPORTATION,
    15  INCLUDING ALL STATE ASSET MAINTENANCE COSTS. THE TERM DOES NOT
    16  INCLUDE EXPENDITURES FOR CAPITAL PROJECTS UNLESS SPECIFIC
    17  APPROVAL IS PROVIDED BY THE DEPARTMENT OF TRANSPORTATION.
    18     "OPERATING REVENUE."  THE TOTAL REVENUE EARNED BY A LOCAL
    19  TRANSPORTATION ORGANIZATION OR A TRANSPORTATION COMPANY THROUGH
    20  ITS TRANSIT OPERATIONS. THE TERM INCLUDES ALL OF THE FOLLOWING:
    21         (1)  PASSENGER FARES.
    22         (2)  REIMBURSEMENTS PROVIDED IN LIEU OF FARES FOR SENIOR
    23     PASSENGERS.
    24         (3)  CHARTER, SCHOOL BUS AND ADVERTISING REVENUE.
    25         (4)  OTHER MISCELLANEOUS REVENUE SUCH AS PUBLIC AND
    26     PRIVATE ROUTE GUARANTEE FUNDS.
    27     "PARATRANSIT SERVICE."  TRANSIT SERVICE OPERATING ON A
    28  NONFIXED-ROUTE BASIS IN ORDER TO PROVIDE COMPLEMENTARY
    29  TRANSPORTATION SERVICE TO PERSONS WHO ARE FUNCTIONALLY UNABLE TO
    30  USE FIXED-ROUTE TRANSPORTATION PUBLIC TRANSPORTATION SERVICE, AS  <--
    20070H1590B2342                 - 185 -    

     1  REQUIRED BY THE AMERICANS WITH DISABILITIES ACT OF 1990 (PUBLIC
     2  LAW 101-336, 104 STAT. 327).
     3     "PASSENGERS."  THE TOTAL OF ALL ORIGINATING PASSENGERS PLUS
     4  TRANSFER PASSENGERS CARRIED ON FIXED ROUTE FIXED-ROUTE PUBLIC     <--
     5  TRANSPORTATION SERVICE AND PARATRANSIT SERVICE WITH RESPECT TO
     6  THE MOST RECENT FISCAL YEAR AS REPORTED IN THE MOST RECENTLY      <--
     7  PUBLISHED RECENT PUBLIC PASSENGER TRANSPORTATION PERFORMANCE      <--
     8  REPORT.
     9     "PUBLIC PASSENGER TRANSPORTATION."  TRANSPORTATION WITHIN AN
    10  AREA THAT INCLUDES A MUNICIPALITY OR OTHER BUILT-UP PLACE THAT
    11  IS APPROPRIATE IN THE JUDGMENT OF THE DEPARTMENT OF
    12  TRANSPORTATION TO SERVE COMMUTERS OR OTHERS IN THE LOCALITY,
    13  TAKING INTO CONSIDERATION THE LOCAL PATTERNS AND TRENDS OF
    14  GROWTH BY BUS OR RAIL OR OTHER CONVEYANCE, EITHER PUBLICLY OR
    15  PRIVATELY OWNED, SERVING THE GENERAL PUBLIC. THE TERM DOES NOT
    16  INCLUDE SCHOOL BUSES, CHARTER OR SIGHTSEEING SERVICES.
    17     "PUBLIC PASSENGER TRANSPORTATION PERFORMANCE REPORT."  AN
    18  ANNUAL REPORT COMPLETED BY THE DEPARTMENT OF TRANSPORTATION
    19  WHICH SHALL INCLUDE ALL OF THE FOLLOWING:
    20         (1)  EACH LOCAL TRANSPORTATION ORGANIZATION'S PASSENGERS,
    21     REVENUE VEHICLE MILES, REVENUE VEHICLE HOURS, AND SENIOR
    22     PASSENGERS STATISTICS FOR THE MOST RECENTLY AVAILABLE FISCAL
    23     YEAR.
    24         (2)  ANY OTHER STATISTICAL INFORMATION THAT THE
    25     DEPARTMENT OF TRANSPORTATION DEEMS NECESSARY OR USEFUL.        <--
    26     "REVENUE REPLACEMENT FUNDS."  PAYMENTS MADE TO LOCAL
    27  TRANSPORTATION ORGANIZATIONS AND TRANSPORTATION COMPANIES TO
    28  OFFSET OR PARTIALLY OFFSET FARES.
    29     "REVENUE VEHICLE HOURS."  THE TOTAL AMOUNT OF TIME CALCULATED
    30  IN HOURS DURING WHICH VEHICLES ARE IN SERVICE AND AVAILABLE FOR
    20070H1590B2342                 - 186 -    

     1  PUBLIC USE IN FIXED-ROUTE PUBLIC TRANSPORTATION SERVICE OR        <--
     2  PARATRANSIT SERVICE WITH RESPECT TO THE MOST RECENT FISCAL YEAR
     3  AS REPORTED IN THE MOST RECENT PUBLIC PASSENGER TRANSPORTATION
     4  PERFORMANCE REPORT. THE TERM DOES NOT INCLUDE DEADHEAD HOURS.
     5     "REVENUE VEHICLE MILES."  THE TOTAL AMOUNT OF DISTANCE
     6  CALCULATED IN MILES DURING WHICH VEHICLES ARE IN SERVICE AND
     7  AVAILABLE FOR PUBLIC USE IN FIXED-ROUTE PUBLIC TRANSPORTATION     <--
     8  SERVICE OR PARATRANSIT SERVICE WITH RESPECT TO THE MOST RECENT
     9  FISCAL YEAR AS REPORTED IN THE MOST RECENT PUBLIC PASSENGER
    10  TRANSPORTATION PERFORMANCE REPORT. THE TERM DOES NOT INCLUDE
    11  DEADHEAD MILES.
    12     "REVERSE COMMUTE PROJECT."  A PUBLIC TRANSPORTATION PROJECT
    13  DESIGNED TO TRANSPORT RESIDENTS OF URBANIZED AND NONURBANIZED
    14  AREAS TO SUBURBAN EMPLOYMENT OPPORTUNITIES AS DEFINED UNDER 49
    15  U.S.C. § 5316 (RELATING TO JOB ACCESS AND REVERSE COMMUTE
    16  FORMULA GRANTS).
    17     "SECRETARY."  THE SECRETARY OF TRANSPORTATION OF THE
    18  COMMONWEALTH.
    19     "SENIOR CITIZEN."  A PERSON WHO IS AT LEAST 65 YEARS OF AGE.
    20     "SENIOR PASSENGER."  A SENIOR CITIZEN WHO RIDES ON FIXED-
    21  ROUTE SERVICE.
    22     "SENIOR PASSENGERS."  THE NUMBER OF SENIOR PASSENGERS
    23  TRANSPORTED BY A LOCAL TRANSPORTATION ORGANIZATION WITH RESPECT
    24  TO THE MOST RECENT FISCAL YEAR AS REPORTED IN THE MOST RECENTLY   <--
    25  PUBLISHED RECENT PUBLIC PASSENGER TRANSPORTATION PERFORMANCE      <--
    26  REPORT.
    27     "TAX REFORM CODE."  THE ACT OF MARCH 4, 1971 (P.L.6, NO.2),
    28  KNOWN AS THE TAX REFORM CODE OF 1971.
    29     "TRANSPORTATION COMPANY."  A PERSON THAT RENDERS PUBLIC
    30  PASSENGER TRANSPORTATION SERVICE.
    20070H1590B2342                 - 187 -    

     1     "URBANIZED AREA."  A PORTION OF THIS COMMONWEALTH CLASSIFIED
     2  AS URBANIZED BY THE UNITED STATES BUREAU OF THE CENSUS OF THE
     3  UNITED STATES DEPARTMENT OF COMMERCE IN THE MOST RECENT CENSUS
     4  OF POPULATION.
     5     "VEHICLE MAINTENANCE EXPENSES."  THE CATEGORIES OF COSTS
     6  ASSOCIATED WITH THE INSPECTION, MAINTENANCE AND REPAIR OF
     7  VEHICLES AS SPECIFIED IN UNIFORM SYSTEM OF ACCOUNTS, EXPENSE
     8  FUNCTION 041, NATIONAL TRANSIT DATABASE OPERATING EXPENSES FORM
     9  F 30, NATIONAL TRANSIT DATABASE, FINAL RULE, FEDERAL TRANSIT
    10  ADMINISTRATION, DATED JANUARY 15, 1993, OR ANY SUCCESSOR.
    11     "WELFARE-TO-WORK."  ANY FEDERAL OR STATE PROGRAM DESIGNED TO
    12  MOVE INDIVIDUALS FROM DEPENDENCY ON PUBLIC WELFARE PROGRAMS TO
    13  SELF-SUFFICIENCY THROUGH PAID WORK.
    14  § 1504.  DEPARTMENT AUTHORIZATION.
    15     (A)  GENERAL.--THE DEPARTMENT MAY, WITHIN THE LIMITATIONS
    16  PROVIDED IN THIS CHAPTER, INCUR COSTS DIRECTLY AND PROVIDE
    17  FINANCIAL ASSISTANCE FOR THE PURPOSES AND ACTIVITIES ENUMERATED
    18  IN THIS CHAPTER.
    19     (B)  SUPPLEMENTATION OF FEDERAL AND LOCAL FUNDS.--THE
    20  AUTHORITY CONFERRED ON THE DEPARTMENT BY THIS CHAPTER INCLUDES,   <--
    21  BUT IS NOT LIMITED TO, PROVIDING FINANCIAL ASSISTANCE FOR PUBLIC
    22  PASSENGER TRANSPORTATION PURPOSES AND TO SUPPLEMENT               <--
    23  SUPPLEMENTING FEDERAL FUNDING OR LOCAL FUNDING OR BOTH.           <--
    24  § 1505.  REGULATIONS.
    25     (A)  GENERAL RULE.--TO EFFECTUATE AND ENFORCE THE PROVISIONS
    26  OF THIS CHAPTER, THE DEPARTMENT SHALL PROMULGATE NECESSARY RULES
    27  AND REGULATIONS AND PRESCRIBE CONDITIONS AND PROCEDURES IN ORDER
    28  TO ASSURE COMPLIANCE IN CARRYING OUT THE PURPOSES FOR WHICH
    29  FINANCIAL ASSISTANCE MAY BE PROVIDED UNDER THIS CHAPTER.
    30     (B)  TEMPORARY REGULATIONS.--
    20070H1590B2342                 - 188 -    

     1         (1)  UNLESS OTHERWISE PROVIDED IN THIS CHAPTER, IN ORDER
     2     TO FACILITATE THE PROMPT IMPLEMENTATION OF THIS CHAPTER,
     3     DURING THE TWO-YEAR PERIOD FOLLOWING THE EFFECTIVE DATE OF
     4     THIS SECTION, THE DEPARTMENT SHALL PROMULGATE TEMPORARY
     5     REGULATIONS WHICH SHALL EXPIRE FOUR YEARS FROM THE EFFECTIVE
     6     DATE OF THIS SECTION. THE TEMPORARY REGULATIONS SHALL BE
     7     EXEMPT FROM THE FOLLOWING:
     8             (I)  THE ACT OF OCTOBER 15, 1980 (P.L.950, NO.164),    <--
     9         KNOWN AS THE COMMONWEALTH ATTORNEYS ACT.
    10             (II)  SECTION 205 OF THE ACT OF JULY 31, 1968
    11         (P.L.769, NO.240), REFERRED TO AS THE COMMONWEALTH
    12         DOCUMENTS LAW.
    13             (I)  SECTIONS 201, 202, 203 AND 204 OF THE ACT OF      <--
    14         JULY 31, 1968 (P.L.769, NO.240), REFERRED TO AS THE
    15         COMMONWEALTH DOCUMENTS LAW.
    16             (III) (II)  THE ACT OF JUNE 25, 1982 (P.L.633,         <--
    17         NO.181), KNOWN AS THE REGULATORY REVIEW ACT.
    18         (2)  THE AUTHORITY OF THE DEPARTMENT TO PROMULGATE
    19     TEMPORARY REGULATIONS UNDER THIS SUBSECTION SHALL EXPIRE TWO
    20     YEARS FROM THE EFFECTIVE DATE OF THIS SECTION. REGULATIONS
    21     ADOPTED AFTER THE TWO-YEAR PERIOD SHALL BE PROMULGATED AS
    22     PROVIDED BY STATUTE.
    23  § 1506.  FUND.
    24     (A)  ESTABLISHMENT.--A SPECIAL FUND IS ESTABLISHED WITHIN THE
    25  STATE TREASURY TO BE KNOWN AS THE PUBLIC TRANSPORTATION TRUST
    26  FUND. MONEY IN THE FUND IS HEREBY APPROPRIATED, UPON APPROVAL OF
    27  THE GOVERNOR, TO THE DEPARTMENT FOR THE PURPOSES SET FORTH UNDER
    28  THIS CHAPTER.
    29     (B)  DEPOSITS TO FUND BY DEPARTMENT.--
    30         (1) THE FOLLOWING APPLY:
    20070H1590B2342                 - 189 -    

     1             (I)  EXCEPT AS PROVIDED UNDER SUBPARAGRAPH (II), UPON
     2         RECEIPT, THE DEPARTMENT SHALL DEPOSIT INTO THE FUND THE
     3         REVENUES RECEIVED BY THE DEPARTMENT UNDER 75 PA.C.S. CH.
     4         89 (RELATING TO PENNSYLVANIA TURNPIKE) AND THE LEASE
     5         AGREEMENT EXECUTED BETWEEN THE DEPARTMENT AND THE
     6         PENNSYLVANIA TURNPIKE COMMISSION UNDER 75 PA.C.S. §
     7         8915.3 (RELATING TO LEASE OF INTERSTATE 80) AS FOLLOWS:
     8                 (A)  FOR FISCAL YEAR 2007-2008, $250,000,000.
     9                 (B)  FOR FISCAL YEAR 2008-2009, $250,000,000.
    10                 (C)  FOR FISCAL YEAR 2009-2010, $250,000,000.
    11                 (D)  FOR FISCAL YEAR 2010-2011 AND EACH FISCAL
    12             YEAR THEREAFTER, THE AMOUNT CALCULATED FOR THE
    13             PREVIOUS FISCAL YEAR, INCREASED ANNUALLY BY 2.5%.      <--
    14             (II)  THE DEPOSITS MADE TO THE FUND UNDER THIS
    15         SUBSECTION SHALL EQUAL $250,000,000 ANNUALLY FOR EACH
    16         FISCAL YEAR COMMENCING AFTER THE EXPIRATION OF THE
    17         CONVERSION PERIOD IF THE CONVERSION NOTICE IS NOT
    18         RECEIVED BY THE SECRETARY PRIOR TO EXPIRATION OF THE
    19         CONVERSION PERIOD AS SET FORTH UNDER 75 PA.C.S. §
    20         8915.3(3).
    21         (2)  UPON RECEIPT, THE DEPARTMENT SHALL DEPOSIT THE
    22     AMOUNT MADE AVAILABLE TO THE DEPARTMENT AS AN EXECUTIVE
    23     AUTHORIZATION AND ANY APPROPRIATION FOR THE 2007-2008 FISCAL
    24     YEAR AND EACH FISCAL YEAR THEREAFTER FROM THE STATE LOTTERY
    25     FUND FOR FIXED ROUTE TRANSIT AND FOR THE FREE TRANSIT PROGRAM
    26     FOR SENIOR CITIZENS ESTABLISHED UNDER THE ACT OF AUGUST 26,
    27     1971 (P.L.351, NO.91), KNOWN AS THE STATE LOTTERY LAW. THE
    28     FUNDS DEPOSITED UNDER THIS PARAGRAPH SHALL ONLY BE USED AS
    29     PERMITTED BY THE STATE LOTTERY LAW, EXCEPT THAT:
    30             (I)  FUNDS MAY BE USED TO PAY ESTIMATED TRANSIT
    20070H1590B2342                 - 190 -    

     1         LOSSES RESULTING FROM PROVIDING FREE SERVICE FOR SENIOR
     2         PASSENGERS DURING THE PROVIDER'S REGULAR HOURS OF
     3         SERVICE; AND
     4             (II)  FARES FOR SENIOR CITIZENS ON COMMUTER RAIL
     5         SERVICE SHALL BE LIMITED TO $1 PER TRIP AND SHALL BE
     6         EXTENDED TO ALL HOURS OF COMMUTER RAIL SERVICE.
     7     (C)  OTHER DEPOSITS.--THE FOLLOWING SHALL BE DEPOSITED INTO
     8  THE FUND ANNUALLY:                                                <--
     9         (1)  4.4% OF THE AMOUNT COLLECTED UNDER ARTICLE II OF THE
    10     TAX REFORM CODE INTO THE FUND. REVENUES UNDER THIS PARAGRAPH   <--
    11     SHALL BE DEPOSITED INTO THE FUND BY THE 20TH DAY OF EACH
    12     MONTH FOR THE PRECEDING MONTH. THE AMOUNT DEPOSITED UNDER
    13     THIS PARAGRAPH IS ESTIMATED TO BE EQUIVALENT OF THE MONEY
    14     AVAILABLE TO THE DEPARTMENT FROM THE FOLLOWING SOURCES:        <--
    15             (I)  THE SUPPLEMENTAL PUBLIC TRANSPORTATION ACCOUNT
    16         ESTABLISHED UNDER FORMER SECTION 1310.1 (RELATING TO
    17         SUPPLEMENTAL PUBLIC TRANSPORTATION ASSISTANCE FUNDING).
    18             (II)  THE AMOUNT APPROPRIATED ANNUALLY BY THE
    19         COMMONWEALTH FROM THE GENERAL FUND FOR MASS TRANSIT
    20         PROGRAMS PURSUANT TO A GENERAL APPROPRIATIONS ACT.
    21         (2)  PROCEEDS OF COMMONWEALTH CAPITAL BONDS.               <--
    22         (2)  AN AMOUNT OF PROCEEDS OF COMMONWEALTH CAPITAL BONDS,  <--
    23     AS DETERMINED ANNUALLY BY THE SECRETARY OF THE BUDGET.
    24         (3)  REVENUE IN THE PUBLIC TRANSPORTATION ASSISTANCE FUND
    25     ESTABLISHED UNDER ARTICLE XXIII OF THE TAX REFORM CODE NOT
    26     OTHERWISE DEDUCTED DEDICATED PURSUANT TO LAW.                  <--
    27         (4)  OTHER APPROPRIATIONS, DEPOSITS OR TRANSFERS TO THE    <--
    28     FUND.
    29     (D)  USE OF REVENUES.--MONEY IN THE FUND SHALL BE USED BY THE
    30  DEPARTMENT AS FOLLOWS:
    20070H1590B2342                 - 191 -    

     1         (1)  TO PROVIDE FINANCIAL ASSISTANCE THROUGH THE PROGRAMS
     2     ESTABLISHED UNDER THIS CHAPTER;
     3         (2)  FOR COSTS INCURRED DIRECTLY BY THE DEPARTMENT IN THE
     4     ADMINISTRATION OF PUBLIC PASSENGER TRANSPORTATION PROGRAMS,
     5     INCLUDING UNDER THIS CHAPTER; AND
     6         (3)  FOR ALL OTHER PURPOSES ENUMERATED UNDER THIS
     7     CHAPTER.
     8     (E)  PROGRAM FUNDING AMOUNTS.--SUBJECT TO AVAILABLE FUNDS,
     9  THE PROGRAMS ESTABLISHED UNDER THIS CHAPTER SHALL BE FUNDED
    10  ANNUALLY AS FOLLOWS:                                              <--
    11         (1)  FOR THE PROGRAM ESTABLISHED UNDER SECTION 1513
    12     (RELATING TO OPERATING PROGRAM), THE FOLLOWING AMOUNTS SHALL
    13     BE ALLOCATED FROM THE FUND:
    14             (I)  ALL REVENUES DEPOSITED IN THE FUND UNDER
    15         SUBSECTION (B)(1).
    16             (II)  ALL REVENUES DEPOSITED IN THE FUND UNDER
    17         SUBSECTION (B)(2).
    18             (III)  69.99% OF THE REVENUES DEPOSITED IN THE FUND
    19         UNDER SUBSECTION (C)(1).
    20             (IV)  ALL REVENUES DEPOSITED INTO THE FUND UNDER       <--
    21         SUBSECTION (C)(3).
    22         (2)  (I)  EXCEPT AS PROVIDED UNDER SUBPARAGRAPH (II), FOR
    23     THE PROGRAM ESTABLISHED UNDER SECTION 1514 (RELATING TO ASSET
    24     IMPROVEMENT PROGRAM):
    25                 (A)  BY THE PROCEEDS OF COMMONWEALTH CAPITAL
    26             BONDS DEPOSITED INTO THE FUND UNDER SUBSECTION         <--
    27             (C)(2).
    28                 (A.1)  FOR FISCAL YEAR 2007-2008, $50,000,000      <--
    29             FROM THE REVENUES RECEIVED BY THE DEPARTMENT UNDER 75
    30             PA.C.S. CH. 89 AND THE LEASE AGREEMENT EXECUTED
    20070H1590B2342                 - 192 -    

     1             BETWEEN THE DEPARTMENT AND THE PENNSYLVANIA TURNPIKE
     2             COMMISSION UNDER 75 PA.C.S. § 8915.3. THE AMOUNT
     3             RECEIVED BY THE DEPARTMENT UNDER THIS SECTION SHALL
     4             BE DEPOSITED INTO THE FUND PRIOR TO DISTRIBUTION AND
     5             SHALL BE IN ADDITION TO THE AMOUNTS RECEIVED UNDER
     6             SUBSECTION (B)(1).
     7                 (B)  FOR FISCAL YEAR 2008-2009, $100,000,000 FROM
     8             THE REVENUES RECEIVED BY THE DEPARTMENT UNDER 75
     9             PA.C.S. CH. 89 AND THE LEASE AGREEMENT EXECUTED
    10             BETWEEN THE DEPARTMENT AND THE PENNSYLVANIA TURNPIKE
    11             COMMISSION UNDER 75 PA.C.S. § 8915.3. THE AMOUNT
    12             RECEIVED BY THE DEPARTMENT UNDER THIS SECTION SHALL
    13             BE DEPOSITED INTO THE FUND PRIOR TO DISTRIBUTION AND
    14             SHALL BE IN ADDITION TO THE AMOUNTS RECEIVED UNDER
    15             SUBSECTION (B)(1).
    16                 (C)  FOR FISCAL YEAR 2009-2010, $150,000,000 FROM
    17             THE REVENUES RECEIVED BY THE DEPARTMENT UNDER 75
    18             PA.C.S. CH. 89 AND THE LEASE AGREEMENT EXECUTED
    19             BETWEEN THE DEPARTMENT AND THE PENNSYLVANIA TURNPIKE
    20             COMMISSION UNDER 75 PA.C.S. § 8915.3. THE AMOUNT
    21             RECEIVED BY THE DEPARTMENT UNDER THIS SECTION SHALL
    22             BE DEPOSITED INTO THE FUND PRIOR TO DISTRIBUTION AND
    23             SHALL BE IN ADDITION TO THE AMOUNTS RECEIVED UNDER
    24             SUBSECTION (B)(1).
    25                 (D)  FOR FISCAL YEAR 2010-2011 AND EACH FISCAL
    26             YEAR THEREAFTER, $150,000,000, INCREASED ANNUALLY THE  <--
    27             AMOUNT CALCULATED FOR THE PRIOR FISCAL YEAR,
    28             INCREASED BY 2.5% FROM THE REVENUES RECEIVED BY THE
    29             DEPARTMENT UNDER 75 PA.C.S. CH. 89 AND THE LEASE
    30             AGREEMENT EXECUTED BETWEEN THE DEPARTMENT AND THE
    20070H1590B2342                 - 193 -    

     1             PENNSYLVANIA TURNPIKE COMMISSION UNDER 75 PA.C.S. §
     2             8915.3. THE AMOUNT RECEIVED BY THE DEPARTMENT UNDER
     3             THIS SECTION SHALL BE DEPOSITED INTO THE FUND PRIOR
     4             TO DISTRIBUTION AND SHALL BE IN ADDITION TO THE
     5             AMOUNTS RECEIVED UNDER SUBSECTION (B)(1).
     6             (II)  IF THE CONVERSION NOTICE IS NOT RECEIVED BY THE
     7         SECRETARY PRIOR TO THE END OF THE CONVERSION PERIOD AS
     8         SET FORTH IN 75 PA.C.S. § 8915.3(3), NO PAYMENT            <--
     9         ADDITIONAL ALLOCATION SHALL BE REQUIRED UNDER THIS         <--
    10         SUBPARAGRAPH MADE UNDER SUBPARAGRAPH (I).                  <--
    11         (3)  FOR THE PROGRAM ESTABLISHED UNDER SECTION 1516
    12     (RELATING TO PROGRAMS OF STATEWIDE SIGNIFICANCE), 5.5% 13.24%  <--
    13     OF THE REVENUES DEPOSITED IN THE FUND UNDER SUBSECTION (C)(1)
    14     SHALL BE ALLOCATED FROM THE FUND.
    15         (4)  FOR THE PROGRAM ESTABLISHED UNDER SECTION 1517
    16     (RELATING TO CAPITAL IMPROVEMENTS PROGRAM), 16.77% OF THE
    17     REVENUES DEPOSITED IN THE FUND UNDER SUBSECTION (C)(1).
    18     ADDITIONAL FUNDS FOR THIS PROGRAM MAY BE PROVIDED FROM THE
    19     FUNDS ALLOCATED BUT NOT DISTRIBUTED BASED ON THE LIMITATION
    20     SET FORTH UNDER SECTION 1513(C) 1513(C)(3).                    <--
    21  § 1507.  APPLICATION AND APPROVAL PROCESS.
    22     (A)  APPLICATION.--AN ELIGIBLE APPLICANT THAT WISHES TO
    23  RECEIVE FINANCIAL ASSISTANCE UNDER THIS CHAPTER SHALL SUBMIT A
    24  WRITTEN APPLICATION TO THE DEPARTMENT, ON A FORM DEVELOPED BY
    25  THE DEPARTMENT, WHICH SHALL INCLUDE THE FOLLOWING:
    26         (1)  THE NAME AND ADDRESS OF THE APPLICANT.
    27         (2)  THE NAME AND TELEPHONE NUMBER OF A CONTACT PERSON
    28     FOR THE APPLICANT.
    29         (3)  THE AMOUNT AND TYPE OF FINANCIAL ASSISTANCE
    30     REQUESTED AND THE PROPOSED USE OF THE FUNDS.
    20070H1590B2342                 - 194 -    

     1         (4)  A STATEMENT AS TO THE PARTICULAR NEED FOR THE
     2     FINANCIAL ASSISTANCE.
     3         (5)  A CERTIFIED COPY OF A CURRENT RESOLUTION AUTHORIZING
     4     SUBMISSION OF THE APPLICATION IF THE APPLICANT IS A GOVERNING
     5     BODY.
     6         (6)  EVIDENCE SATISFACTORY TO THE DEPARTMENT OF THE
     7     COMMITMENT FOR MATCHING FUNDS REQUIRED UNDER THIS CHAPTER
     8     SUFFICIENT TO MATCH THE PROJECTED FINANCIAL ASSISTANCE
     9     PAYMENTS AT THE SAME TIMES THAT THE FINANCIAL ASSISTANCE
    10     PAYMENTS ARE TO BE PROVIDED.
    11         (7)  ANY OTHER INFORMATION THE DEPARTMENT DEEMS NECESSARY
    12     OR DESIRABLE.
    13     (B)  APPROVAL AND AWARD.--UPON DETERMINING THAT AN APPLICANT
    14  HAS COMPLIED WITH THIS CHAPTER, APPLICABLE RULES AND REGULATIONS
    15  AND ANY OTHER REQUIREMENT WITH RESPECT TO THE FINANCIAL
    16  ASSISTANCE REQUESTED, THE DEPARTMENT MAY AWARD FINANCIAL
    17  ASSISTANCE TO THE APPLICANT. IF THE DEPARTMENT AWARDS FINANCIAL
    18  ASSISTANCE TO THE APPLICANT, THE DEPARTMENT AND THE APPLICANT
    19  SHALL ENTER INTO A FINANCIAL ASSISTANCE AGREEMENT SETTING FORTH
    20  THE TERMS AND CONDITIONS GOVERNING THE USE OF THE FINANCIAL
    21  ASSISTANCE AND THE TIMING OF PAYMENT OF THE FUNDS. THE
    22  DEPARTMENT SHALL DEVELOP GUIDELINES FOR THE APPLICATION FOR AND
    23  AWARDING OF FINANCIAL ASSISTANCE UNDER THIS CHAPTER AND SHALL
    24  FORWARD THEM TO THE LEGISLATIVE REFERENCE BUREAU FOR PUBLICATION
    25  IN THE PENNSYLVANIA BULLETIN.
    26     (C)  RESTRICTION ON USE OF FUNDS.--FINANCIAL ASSISTANCE UNDER
    27  THIS CHAPTER SHALL BE USED ONLY FOR ACTIVITIES SET FORTH UNDER
    28  THE FINANCIAL ASSISTANCE AGREEMENT UNLESS THE DEPARTMENT GRANTS   <--
    29  THE AWARD RECIPIENT A WAIVER ALLOWING THE FUNDS TO BE USED FOR A
    30  DIFFERENT PURPOSE. THE DEPARTMENT'S REGULATIONS SHALL DESCRIBE
    20070H1590B2342                 - 195 -    

     1  CIRCUMSTANCES UNDER WHICH IT WILL CONSIDER WAIVER REQUESTS AND
     2  SHALL SET FORTH ALL INFORMATION TO BE INCLUDED IN A WAIVER
     3  REQUEST. THE MAXIMUM DURATION OF A WAIVER SHALL BE ONE YEAR, AND
     4  A WAIVER REQUEST SHALL INCLUDE A PLAN OF CORRECTIVE ACTION TO
     5  DEMONSTRATE THAT THE AWARD RECIPIENT DOES NOT HAVE AN ONGOING
     6  NEED TO USE FINANCIAL ASSISTANCE FUNDS FOR ACTIVITIES OTHER THAN
     7  THOSE FOR WHICH FUNDS WERE ORIGINALLY AWARDED.
     8  § 1508.  FEDERAL FUNDING.
     9     (A)  GENERAL RULE.--THE DEPARTMENT SHALL ADMINISTER THE
    10  PROGRAM PROGRAMS ESTABLISHED UNDER THIS CHAPTER IN A MANNER THAT  <--
    11  PERMITS FULL COOPERATION BETWEEN FEDERAL, STATE AND LOCAL
    12  GOVERNMENTS, AGENCIES AND INSTRUMENTALITIES, LOCAL
    13  TRANSPORTATION ORGANIZATIONS AND PRIVATE INTERESTS, SO AS TO
    14  RESULT IN AS EFFECTIVE AND ECONOMICAL A PROGRAM AS POSSIBLE.
    15     (B)  AGREEMENTS.--THE DEPARTMENT MAY ENTER INTO AGREEMENTS
    16  FOR MUTUAL COOPERATION BETWEEN OR AMONG THE DEPARTMENT AND A
    17  FEDERAL AGENCY, LOCAL TRANSPORTATION ORGANIZATION OR
    18  TRANSPORTATION COMPANY CONCERNING A PROJECT TO BE FUNDED WITH
    19  FINANCIAL ASSISTANCE UNDER THIS CHAPTER, INCLUDING JOINT
    20  APPLICATIONS FOR FEDERAL GRANTS.
    21     (C)  GENERAL AUTHORITY OF DEPARTMENT.--THE DEPARTMENT MAY DO
    22  ANYTHING NECESSARY OR DESIRABLE TO SECURE FINANCIAL AID OR
    23  COOPERATION OF A FEDERAL AGENCY FOR A PROJECT FUNDED WITH
    24  FINANCIAL ASSISTANCE UNDER THIS CHAPTER AND TO COMPLY WITH A
    25  FEDERAL STATUTE OR LAWFUL REQUIREMENT OF A FEDERAL AGENCY
    26  AUTHORIZED TO ADMINISTER A PROGRAM OF FEDERAL AID TO
    27  TRANSPORTATION. THE DEPARTMENT MAY ENTER INTO A PROTECTIVE
    28  AGREEMENT WITH ORGANIZED LABOR TO THE EXTENT REQUIRED UNDER 49
    29  U.S.C. § 5333 (RELATING TO LABOR STANDARDS) IN ORDER TO OBTAIN
    30  FEDERAL GRANT MONEY FOR TRANSPORTATION ASSISTANCE. PROTECTIVE
    20070H1590B2342                 - 196 -    

     1  AGREEMENTS SHALL BE NARROWLY DRAWN AND STRICTLY CONSTRUED TO
     2  PROVIDE NO MORE THAN THE MINIMUM PROTECTIONS REQUIRED BY THE
     3  UNITED STATES DEPARTMENT OF LABOR FOR THE AGREEMENTS.
     4     (D)  DIRECT RECIPIENTS.--LOCAL TRANSPORTATION ORGANIZATIONS
     5  THAT ARE DIRECT RECIPIENTS OF FEDERAL FUNDING SHALL BE UNDER NO
     6  OBLIGATION TO ENTER INTO CONTRACTS WITH THE DEPARTMENT FOR
     7  EXPENDITURE OF THOSE FUNDS, EXCEPT THAT THE DEPARTMENT MAY
     8  REQUIRE A CONTRACT FOR EXPENDITURE OF THE STATE PORTION OF THE
     9  PROJECT ASSISTED BY THOSE FEDERAL FUNDS.
    10  § 1509.  LIMITATION ON DECISIONS, FINDINGS AND REGULATIONS OF
    11             DEPARTMENT.
    12     ALL DECISIONS, FINDINGS AND REGULATIONS MADE BY THE
    13  DEPARTMENT PURSUANT TO THIS CHAPTER SHALL BE FOR THE PURPOSES OF
    14  THIS CHAPTER ONLY AND SHALL NOT CONSTITUTE EVIDENCE BEFORE A
    15  REGULATORY BODY OF THIS COMMONWEALTH OR ANY OTHER JURISDICTION.
    16  § 1510.  PROGRAM OVERSIGHT AND ADMINISTRATION.
    17     (A)  REVIEW AND OVERSIGHT.--THE DEPARTMENT SHALL INITIATE AND
    18  MAINTAIN A PROGRAM OF FINANCIAL AND PERFORMANCE REVIEW AND
    19  OVERSIGHT FOR ALL PROGRAMS RECEIVING FINANCIAL ASSISTANCE UNDER
    20  THIS CHAPTER. THE DEPARTMENT MAY PERFORM INDEPENDENT FINANCIAL
    21  AUDITS OF EACH AWARD RECIPIENT TO ENSURE COMPLIANCE BY AWARD
    22  RECIPIENTS WITH THIS CHAPTER, DEPARTMENT REGULATIONS AND
    23  POLICIES AND FINANCIAL ASSISTANCE AGREEMENTS. AUDITS SHALL BE
    24  CONDUCTED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING
    25  STANDARDS.
    26     (B)  STATE RAIL TRANSIT SAFETY INSPECTION PROGRAM.--THE
    27  DEPARTMENT MAY CONDUCT A STATE RAIL TRANSIT SAFETY INSPECTION
    28  PROGRAM, AS MAY BE DEFINED FROM TIME TO TIME BY THE FEDERAL
    29  TRANSIT ADMINISTRATION, TO MEET OVERSIGHT REQUIREMENTS OF THE
    30  FEDERAL TRANSIT ADMINISTRATION. THE PUBLIC TRANSPORTATION MODES
    20070H1590B2342                 - 197 -    

     1  COVERED SHALL INCLUDE HEAVY RAIL, LIGHT RAIL, TRACKLESS TROLLEY
     2  BUS AND INCLINED PLANE SERVICES AND RELATED FACILITIES.
     3  § 1511.  REPORT TO GOVERNOR AND GENERAL ASSEMBLY.
     4     THE FOLLOWING SHALL APPLY:
     5         (1)  EXCEPT AS PROVIDED IN PARAGRAPH (2), THE DEPARTMENT
     6     SHALL FILE SUBMIT A PUBLIC PASSENGER TRANSPORTATION            <--
     7     PERFORMANCE REPORT WITH TO THE GOVERNOR AND THE GENERAL        <--
     8     ASSEMBLY BY APRIL 30 OF EACH YEAR, COVERING THE PRIOR FISCAL
     9     YEAR.
    10         (2)  THE REPORT COVERING THE 2005-2006 FISCAL YEAR SHALL
    11     BE PUBLISHED SUBMITTED BY JULY 31, 2007.                       <--
    12  § 1512.  COORDINATION.
    13     COORDINATION IS REQUIRED IN REGIONS WHERE TWO OR MORE AWARD
    14  RECIPIENTS HAVE SERVICES OR ACTIVITIES FOR WHICH FINANCIAL
    15  ASSISTANCE IS BEING PROVIDED UNDER THIS CHAPTER TO ASSURE THAT
    16  THE SERVICES OR ACTIVITIES ARE PROVIDED EFFICIENTLY AND
    17  EFFECTIVELY.
    18  § 1513.  OPERATING PROGRAM.
    19     (A)  ELIGIBLE APPLICANTS.--THE FOLLOWING MAY APPLY FOR
    20  FINANCIAL ASSISTANCE FOR OPERATING EXPENSES UNDER THIS SECTION:
    21         (1)  THE GOVERNING BODY OF A MUNICIPALITY OR AN
    22     INSTRUMENTALITY OF A MUNICIPALITY.
    23         (2)  A COMMONWEALTH AGENCY OR INSTRUMENTALITY.
    24         (3)  A LOCAL TRANSPORTATION ORGANIZATION.
    25     (B)  APPLICATIONS.--IN ADDITION TO INFORMATION REQUIRED UNDER
    26  SECTION 1507 (RELATING TO APPLICATION AND APPROVAL PROCESS), AN
    27  APPLICATION FOR FINANCIAL ASSISTANCE UNDER THIS SECTION SHALL
    28  INCLUDE THE APPLICANT'S REASONABLE ESTIMATES OF OPERATING
    29  REVENUE AND GOVERNMENT SUBSIDIES SUFFICIENT TO COVER ALL
    30  PROJECTED OPERATING EXPENSES.
    20070H1590B2342                 - 198 -    

     1     (C)  DISTRIBUTION FORMULA.--
     2         (1)  NO LATER THAN 15 BUSINESS DAYS AFTER THE EFFECTIVE
     3     DATE OF THIS SECTION THE DEPARTMENT SHALL FORWARD TO THE
     4     LEGISLATIVE REFERENCE BUREAU FOR PUBLICATION IN THE
     5     PENNSYLVANIA BULLETIN THE BASE OPERATING ALLOCATION FOR EACH
     6     LOCAL TRANSPORTATION ORGANIZATION.
     7         (1.1)  FOR PURPOSES OF DETERMINING THE AMOUNT OF           <--
     8     ASSISTANCE AVAILABLE FOR DISTRIBUTION UNDER THIS SUBSECTION,
     9     IN ADDITION TO THE AMOUNTS ALLOCATED UNDER SECTION
    10     1506(E)(1)(RELATING TO FUND), AN AMOUNT EQUAL TO THE REVENUE
    11     IN THE PUBLIC TRANSPORTATION ASSISTANCE FUND DEDICATED
    12     PURSUANT TO LAW SHALL BE INCLUDED.
    13         (2)  FOR FISCAL YEAR 2007-2008 AND EVERY EACH FISCAL YEAR  <--
    14     THEREAFTER EACH QUALIFYING LOCAL TRANSPORTATION ORGANIZATION   <--
    15     SHALL RECEIVE FINANCIAL ASSISTANCE WHICH SHALL CONSIST OF THE
    16     FOLLOWING:
    17             (I)  ITS BASE OPERATING ALLOCATION MULTIPLIED BY
    18         1.0506.
    19             (II)  AN ADDITIONAL AMOUNT WHICH SHALL BE ALLOCATED
    20         BASED ON THE FOLLOWING DISTRIBUTION FORMULA:
    21                 (A)  TWENTY-FIVE PERCENT OF THE AWARD AMOUNT
    22             SHALL BE BASED ON THE NUMBER OF PASSENGERS. THE
    23             ACTUAL AMOUNT RECEIVED BY EACH LOCAL TRANSPORTATION
    24             ORGANIZATION UNDER THIS CLAUSE SHALL BE CALCULATED AS
    25             FOLLOWS:
    26                     (I)  MULTIPLY THE TOTAL AMOUNT OF FUNDING
    27                 AVAILABLE FOR DISTRIBUTION UNDER THIS PARAGRAPH
    28                 BY 0.25.
    29                     (II)  MULTIPLY THE PRODUCT UNDER SUBCLAUSE
    30                 (I) BY THE LOCAL TRANSPORTATION ORGANIZATION'S
    20070H1590B2342                 - 199 -    

     1                 NUMBER OF PASSENGERS.
     2                     (III)  DIVIDE THE PRODUCT UNDER SUBCLAUSE
     3                 (II) BY THE TOTAL NUMBER OF PASSENGERS FOR ALL
     4                 QUALIFYING LOCAL TRANSPORTATION ORGANIZATIONS.     <--
     5                 (B)  TEN PERCENT OF THE AWARD AMOUNT SHALL BE
     6             BASED ON THE NUMBER OF SENIOR PASSENGERS TO OFFSET
     7             FREE FARES FOR SENIOR PASSENGERS. THE ACTUAL AMOUNT
     8             RECEIVED BY EACH LOCAL TRANSPORTATION ORGANIZATION
     9             UNDER THIS CLAUSE SHALL BE CALCULATED AS FOLLOWS:
    10                     (I)  MULTIPLY THE TOTAL AMOUNT OF FUNDING
    11                 AVAILABLE FOR DISTRIBUTION UNDER THIS PARAGRAPH
    12                 BY 0.10.
    13                     (II)  MULTIPLY THE PRODUCT UNDER SUBCLAUSE
    14                 (I) BY THE LOCAL TRANSPORTATION ORGANIZATION'S
    15                 NUMBER OF SENIOR PASSENGERS.
    16                     (III)  DIVIDE THE PRODUCT UNDER SUBCLAUSE
    17                 (II) BY THE TOTAL NUMBER OF SENIOR PASSENGERS FOR
    18                 ALL QUALIFYING LOCAL TRANSPORTATION                <--
    19                 ORGANIZATIONS.
    20                 (C)  THIRTY-FIVE PERCENT OF THE AWARD AMOUNT
    21             SHALL BE BASED ON THE NUMBER OF REVENUE VEHICLE
    22             HOURS. THE ACTUAL AMOUNT RECEIVED BY EACH LOCAL
    23             TRANSPORTATION ORGANIZATION UNDER THIS CLAUSE SHALL
    24             BE CALCULATED AS FOLLOWS:
    25                     (I)  MULTIPLY THE TOTAL AMOUNT OF FUNDING
    26                 AVAILABLE FOR DISTRIBUTION UNDER THIS PARAGRAPH
    27                 BY 0.35.
    28                     (II)  MULTIPLY THE PRODUCT UNDER SUBCLAUSE
    29                 (I) BY THE LOCAL TRANSPORTATION ORGANIZATION'S
    30                 NUMBER OF REVENUE VEHICLE HOURS.
    20070H1590B2342                 - 200 -    

     1                     (III)  DIVIDE THE PRODUCT UNDER SUBCLAUSE
     2                 (II) BY THE TOTAL OF THE REVENUE VEHICLE HOURS
     3                 FOR ALL QUALIFYING LOCAL TRANSPORTATION            <--
     4                 ORGANIZATIONS.
     5                 (D)  THIRTY PERCENT OF THE AWARD AMOUNT SHALL BE
     6             BASED ON THE NUMBER OF REVENUE VEHICLE MILES. THE
     7             ACTUAL AMOUNT RECEIVED BY EACH LOCAL TRANSPORTATION
     8             ORGANIZATION UNDER THIS CLAUSE SHALL BE CALCULATED AS
     9             FOLLOWS:
    10                     (I)  MULTIPLY THE TOTAL AMOUNT OF FUNDING
    11                 AVAILABLE FOR DISTRIBUTION UNDER THIS PARAGRAPH
    12                 BY 0.30.
    13                     (II)  MULTIPLY THE PRODUCT UNDER SUBCLAUSE
    14                 (I) BY THE LOCAL TRANSPORTATION ORGANIZATION'S
    15                 NUMBER OF REVENUE VEHICLE MILES.
    16                     (III)  DIVIDE THE PRODUCT UNDER SUBCLAUSE
    17                 (II) BY THE TOTAL NUMBER OF REVENUE VEHICLE MILES
    18                 FOR ALL QUALIFYING LOCAL TRANSPORTATION            <--
    19                 ORGANIZATIONS.
    20         (3)  FOR THE 2007-2008 FISCAL YEAR, NO LOCAL
    21     TRANSPORTATION ORGANIZATION SHALL RECEIVE TOTAL FINANCIAL
    22     ASSISTANCE UNDER THIS SUBSECTION THAT WOULD BE MORE THAN 50%
    23     HIGHER THAN THE AMOUNT IT RECEIVES UNDER PARAGRAPH (2)(I).     <--
    24     FOR EACH SUBSEQUENT FISCAL YEAR, THE INCREASE IN THE TOTAL
    25     FINANCIAL ASSISTANCE PROVIDED TO EACH APPLICANT LOCAL          <--
    26     TRANSPORTATION ORGANIZATION SHALL NOT EXCEED 20% OF THE PRIOR
    27     YEAR ALLOCATION.
    28     (C.1)  MINIMUM.--NO LOCAL TRANSPORTATION ORGANIZATION SHALL    <--
    29  RECEIVE FINANCIAL ASSISTANCE UNDER THIS SECTION IN AN AMOUNT
    30  LESS THAN THE AMOUNT RECEIVED IN THE PREVIOUS FISCAL YEAR.
    20070H1590B2342                 - 201 -    

     1     (D)  LOCAL MATCH REQUIREMENTS.--
     2         (1)  FOR FISCAL YEAR 2007-2008 AND EACH FISCAL YEAR
     3     THEREAFTER, EXCEPT AS PROVIDED UNDER PARAGRAPH (2), FINANCIAL  <--
     4     ASSISTANCE PROVIDED UNDER THIS SECTION SHALL BE MATCHED BY
     5     LOCAL OR PRIVATE CASH FUNDING IN AN AMOUNT NOT LESS THAN THE
     6     GREATER OF:
     7             (I)  15% OF THE AMOUNT OF THE FINANCIAL ASSISTANCE
     8         BEING PROVIDED; OR
     9             (II)  THE AMOUNT REQUIRED UNDER FORMER SECTION
    10         1311(D) (RELATING TO USE OF FUNDS DISTRIBUTED) FOR FISCAL
    11         YEAR 2006-2007.
    12         (2)  IN FISCAL YEAR 2007-2008 AND EACH FISCAL YEAR         <--
    13     THEREAFTER, IF THE LOCAL MATCH REQUIRED UNDER THIS SUBSECTION
    14     DOES NOT EQUAL 15%, THE LOCAL MATCH SHALL BE INCREASED
    15     ANNUALLY IN AN AMOUNT NOT TO EXCEED 5% UNTIL THE LOCAL MATCH
    16     EQUALS 15%.
    17         (2)  BEGINNING IN FISCAL YEAR 2007-2008 AND EACH FISCAL    <--
    18     YEAR THEREAFTER, IF THE LOCAL MATCHING FUNDS PROVIDED ARE
    19     LESS THAN 15% OF THE AMOUNT OF FINANCIAL ASSISTANCE RECEIVED,
    20     THE LOCAL TRANSPORTATION ORGANIZATION'S REQUIRED LOCAL
    21     MATCHING FUNDS SHALL INCREASE ANNUALLY IN ORDER TO MEET THE
    22     15% REQUIREMENT SET FORTH UNDER PARAGRAPH (1)(I). THE LOCAL
    23     MATCHING FUNDS SHALL BE INCREASED ANNUALLY BY A MINIMUM OF 5%
    24     ABOVE THE AMOUNT OF LOCAL MATCHING FUNDS PROVIDED IN THE
    25     PREVIOUS FISCAL YEAR UNLESS A LESSER AMOUNT IS NECESSARY TO
    26     MEET THE 15% REQUIREMENT SET FORTH UNDER PARAGRAPH (1)(I).
    27         (3)  FOR FINANCIAL ASSISTANCE TO A LOCAL TRANSPORTATION    <--
    28     ORGANIZATION, ELIGIBLE ELIGIBLE LOCAL MATCHING FUNDS SHALL     <--
    29     CONSIST ONLY OF CASH CONTRIBUTIONS PROVIDED BY ONE OR MORE
    30     MUNICIPALITIES OR COUNTIES THAT ARE MEMBERS OF THE LOCAL       <--
    20070H1590B2342                 - 202 -    

     1     TRANSPORTATION ORGANIZATION. THE AMOUNT OF THE MATCH AND THE
     2     TIME PERIOD DURING WHICH THE MATCH MUST CONTINUE TO BE
     3     AVAILABLE SHALL BE SPECIFIED IN THE FINANCIAL ASSISTANCE
     4     AGREEMENT. FUNDING PROVIDED BY LOCAL AND PRIVATE ENTITIES,
     5     INCLUDING ADVERTISING OR NAMING RIGHTS, MAY BE ELIGIBLE FOR    <--
     6     THE MATCH QUALIFY AS LOCAL MATCHING FUNDS TO THE EXTENT THEY   <--
     7     PROVIDE FOR THE COST OF TRANSIT SERVICE THAT IS OPEN TO THE
     8     PUBLIC. THE FOLLOWING SHALL NOT BE ELIGIBLE FOR A LOCAL MATCH  <--
     9     CONSIDERED LOCAL MATCHING FUNDS:                               <--
    10             (I)  ANY FORM OF TRANSIT OPERATING REVENUE OR OTHER
    11         FORMS OF TRANSIT INCOME PROVIDED BY THE LOCAL
    12         TRANSPORTATION ORGANIZATION.
    13             (II)  FUNDS USED TO REPLACE FARES.
    14         (4)  A MUNICIPALITY IN A METROPOLITAN AREA WHICH IS A
    15     MEMBER OF A LOCAL TRANSPORTATION ORGANIZATION IS AUTHORIZED
    16     TO PROVIDE ANNUAL FINANCIAL ASSISTANCE FROM CURRENT REVENUES
    17     TO THE LOCAL TRANSPORTATION ORGANIZATION OF WHICH IT IS A
    18     MEMBER OR ENTER INTO A LONG-TERM AGREEMENT FOR PAYMENT OF
    19     MONEY TO ASSIST IN DEFRAYING THE COSTS OF OPERATION,
    20     MAINTENANCE AND DEBT SERVICE OF THE LOCAL TRANSPORTATION
    21     ORGANIZATION OR OF A PARTICULAR PUBLIC TRANSPORTATION PROJECT
    22     OF A LOCAL TRANSPORTATION ORGANIZATION. THE OBLIGATION OF A
    23     MUNICIPALITY UNDER AN AGREEMENT PURSUANT TO THIS PARAGRAPH
    24     SHALL NOT BE CONSIDERED TO BE A PART OF THE INDEBTEDNESS OF
    25     THE MUNICIPALITY, NOR SHALL THE OBLIGATION BE DEEMED TO
    26     IMPAIR THE STATUS OF ANY INDEBTEDNESS OF THE MUNICIPALITY
    27     WHICH WOULD OTHERWISE BE CONSIDERED SELF-SUSTAINING.
    28     (E)  PERFORMANCE REVIEWS.--
    29         (1)  THE DEPARTMENT MAY CONDUCT PERFORMANCE REVIEWS OF AN
    30     AWARD RECIPIENT UNDER THIS SECTION TO DETERMINE THE
    20070H1590B2342                 - 203 -    

     1     EFFICIENCY AND EFFECTIVENESS OF THE FINANCIAL ASSISTANCE.      <--
     2     REVIEWS SHALL BE CONDUCTED AT REGULAR INTERVALS AS
     3     ESTABLISHED BY THE DEPARTMENT IN CONSULTATION WITH THE
     4     MANAGEMENT OF THE AWARD RECIPIENT. AFTER COMPLETION OF A
     5     REVIEW, THE DEPARTMENT SHALL ISSUE A REPORT THAT:
     6             (I)  HIGHLIGHTS EXCEPTIONAL PERFORMANCE AND
     7         IDENTIFIES ANY PROBLEMS THAT NEED TO BE RESOLVED;
     8             (II)  ASSESSES PERFORMANCE, EFFICIENCY AND
     9         EFFECTIVENESS OF THE USE OF THE FINANCIAL ASSISTANCE;
    10             (III)  MAKES RECOMMENDATIONS ON FOLLOW-UP ACTIONS
    11         REQUIRED TO REMEDY ANY PROBLEM IDENTIFIED; AND
    12             (IV)  PROVIDES AN ACTION PLAN DOCUMENTING WHO SHOULD
    13         PERFORM THE RECOMMENDED ACTIONS AND A TIME FRAME WITHIN
    14         WHICH THEY SHOULD BE PERFORMED.
    15         (2)  THE DEPARTMENT SHALL DELIVER THE REPORT TO THE
    16     GOVERNOR, TO THE CHAIRMAN AND MINORITY CHAIRMAN OF THE
    17     TRANSPORTATION COMMITTEE OF THE SENATE AND TO THE CHAIRMAN
    18     AND MINORITY CHAIRMAN OF THE TRANSPORTATION COMMITTEE OF THE
    19     HOUSE OF REPRESENTATIVES. THE DEPARTMENT'S REGULATIONS SHALL
    20     CONTAIN A DESCRIPTION OF THE IMPACT ON BOTH THE AMOUNT OF,
    21     AND FUTURE ELIGIBILITY FOR, FINANCIAL ASSISTANCE UNDER THIS
    22     CHAPTER BASED UPON THE DEGREE TO WHICH THE LOCAL
    23     TRANSPORTATION ORGANIZATION COMPLIES WITH THE RECOMMENDATIONS
    24     IN THE REPORT. THE DEPARTMENT SHALL DEVELOP A LIST OF BEST
    25     PRACTICES REVEALED BY THE REPORTS ISSUED UNDER THIS
    26     SUBSECTION AND SHALL POST THEM ON THE DEPARTMENT'S INTERNET
    27     WEBSITE.
    28     (F)  PERFORMANCE CRITERIA.--CRITERIA USED FOR THE REVIEWS
    29  CONDUCTED UNDER SUBSECTION (E) SHALL CONSIST OF PASSENGERS PER
    30  REVENUE VEHICLE HOUR, OPERATING COSTS PER REVENUE VEHICLE HOUR,
    20070H1590B2342                 - 204 -    

     1  OPERATING REVENUE PER REVENUE VEHICLE HOUR, OPERATING COSTS PER
     2  PASSENGER AND OTHER ITEMS AS THE DEPARTMENT MAY ESTABLISH. THE
     3  DEPARTMENT'S REGULATIONS SHALL SET FORTH THE MINIMUM SYSTEM
     4  PERFORMANCE CRITERIA, BASED UPON COMPARISON OF THE AWARD
     5  RECIPIENT TO ITS PAST PERFORMANCE AND TO ITS PEERS, THAT AN
     6  AWARD RECIPIENT MUST SATISFY.
     7     (G)  FAILURE TO SATISFY MINIMUM PERFORMANCE CRITERIA.--
     8         (1)  IF A PERFORMANCE REVIEW CONDUCTED UNDER SUBSECTION
     9     (E) REVEALS THAT THE PERFORMANCE OF AN AWARD RECIPIENT'S
    10     TRANSPORTATION SYSTEM HAS DECREASED COMPARED TO PERFORMANCE
    11     DETERMINED THROUGH A PRIOR REVIEW, THE DEPARTMENT MAY, UPON
    12     THE WRITTEN REQUEST OF AN AWARD RECIPIENT, WAIVE ANY
    13     REQUIREMENT FOR A REDUCTION IN THE AMOUNT OF FINANCIAL
    14     ASSISTANCE TO BE AWARDED UNDER THIS SECTION FOR A REASONABLE
    15     TIME PERIOD TO ALLOW THE AWARD RECIPIENT TO BRING THE SYSTEM
    16     BACK TO THE REQUIRED PERFORMANCE LEVEL. THE AWARD RECIPIENT
    17     SHALL PROVIDE WRITTEN JUSTIFICATION FOR PROVIDING A TIME
    18     PERIOD LONGER THAN TWO YEARS. IN ORDER TO OBTAIN THE WAIVER
    19     FOR THE PERIOD REQUESTED, THE AWARD RECIPIENT MUST DO ALL OF
    20     THE FOLLOWING:
    21             (I)  DEVELOP AN ACTION PLAN TO IMPROVE SYSTEM
    22         PERFORMANCE THAT CONTAINS KEY MEASURABLE MILESTONES. THE
    23         ACTION PLAN MUST BE ACCEPTABLE TO THE DEPARTMENT AND MUST
    24         BE APPROVED BY THE DEPARTMENT IN WRITING.
    25             (II)  SUBMIT QUARTERLY PROGRESS REPORTS ON THE ACTION
    26         PLAN TO THE DEPARTMENT.
    27         (2)  THE DEPARTMENT SHALL REVIEW AND EVALUATE THE AWARD
    28     RECIPIENT'S PROGRESS TO DETERMINE IF THE SYSTEM HAS IMPROVED.
    29     IF THE SYSTEM HAS IMPROVED, THE AWARD RECIPIENT WILL REMAIN
    30     ELIGIBLE FOR FULL FORMULA FUNDING AS DETERMINED UNDER
    20070H1590B2342                 - 205 -    

     1     SUBSECTION (C). IF THE SYSTEM HAS NOT IMPROVED BY THE END OF
     2     THE WAIVER PERIOD, THE WAIVER WILL BE WITHDRAWN. EXPENSES
     3     INCURRED BY THE AWARD RECIPIENT AS A RESULT OF THE FAILURE OF
     4     THE AWARD RECIPIENT'S SYSTEM TO MEET THE MINIMUM PERFORMANCE
     5     CRITERIA SHALL BE BORNE BY THE AWARD RECIPIENT.
     6     (H)  ADJUSTMENTS TO MINIMUM PERFORMANCE CRITERIA.--UPON
     7  WRITTEN REQUEST OF AN AWARD RECIPIENT, THE DEPARTMENT MAY ADJUST
     8  THE MINIMUM PERFORMANCE CRITERIA DESCRIBED IN SUBSECTION (G) IN
     9  A GIVEN YEAR IF THE PERFORMANCE OF THE AWARD RECIPIENT'S SYSTEM
    10  IS ADVERSELY AFFECTED BY CIRCUMSTANCES WHICH ARE BEYOND THE
    11  AWARD RECIPIENT'S CONTROL. EXAMPLES ARE LABOR STRIKES,
    12  INFRASTRUCTURE FAILURES AND NATURAL DISASTERS. THE REQUEST MUST
    13  INCLUDE THE AWARD RECIPIENT'S REASONS FOR SEEKING THE
    14  ADJUSTMENT.
    15  § 1514.  ASSET IMPROVEMENT PROGRAM.
    16     (A)  ELIGIBLE APPLICANTS.--
    17         (1)  THE FOLLOWING MAY APPLY FOR FINANCIAL ASSISTANCE FOR
    18     IMPROVEMENT, REPLACEMENT OR EXPANSION OF CAPITAL PROJECTS
    19     UNDER THIS SECTION:
    20             (I)  A LOCAL TRANSPORTATION ORGANIZATION.
    21             (II)  AN AGENCY OR INSTRUMENTALITY OF THE
    22         COMMONWEALTH.
    23             (III)  A PERSON RESPONSIBLE FOR COORDINATING
    24         COMMUNITY TRANSPORTATION PROGRAM SERVICES.
    25             (IV)  ANY OTHER PERSON THE DEPARTMENT DEEMS TO BE
    26         ELIGIBLE.
    27         (2)  THE DEPARTMENT SHALL DEVELOP AND MAINTAIN FOUR-YEAR
    28     AND 12-YEAR PLANS THAT SUMMARIZE THE CAPITAL PROJECTS AND
    29     FINANCIAL ASSISTANCE COMMITMENTS FOR EACH APPLICANT. THE
    30     DEPARTMENT MAY ENTER INTO MULTIYEAR AGREEMENTS TO PROVIDE
    20070H1590B2342                 - 206 -    

     1     FINANCIAL ASSISTANCE FOR CAPITAL PROJECTS BASED UPON CASH
     2     FLOW AND REVENUE PROJECTIONS FOR THE FUND. EACH CAPITAL
     3     PROJECT SHALL BE BASED ON THE PLAN DEVELOPED BY THE
     4     DEPARTMENT.
     5     (B)  APPLICATIONS.--IN ADDITION TO INFORMATION REQUIRED UNDER
     6  SECTION 1507 (RELATING TO APPLICATION AND APPROVAL PROCESS), AN
     7  APPLICATION FOR FINANCIAL ASSISTANCE UNDER THIS SECTION SHALL
     8  INCLUDE THE FOLLOWING:
     9         (1)  EVIDENCE SATISFACTORY TO THE DEPARTMENT THAT THE
    10     PROPOSED CAPITAL PROJECT IS INCLUDED IN THE FIRST YEAR OF THE
    11     APPLICANT'S FOUR-YEAR CAPITAL PLAN AND ITS FEDERALLY APPROVED
    12     TRANSPORTATION IMPROVEMENT PROGRAM.
    13         (2)  IF AN APPLICANT IS REQUESTING FINANCIAL ASSISTANCE
    14     FOR REPLACEMENT OF A CAPITAL PROJECT, EVIDENCE SATISFACTORY
    15     TO THE DEPARTMENT THAT THE CAPITAL PROJECT TO BE REPLACED HAS
    16     EXCEEDED THE USEFUL LIFE CRITERIA AS DEFINED BY THE
    17     DEPARTMENT. AT ITS DISCRETION, THE DEPARTMENT MAY APPROVE
    18     FUNDING TO REPLACE A CAPITAL PROJECT THAT DOES NOT EXCEED THE
    19     USEFUL LIFE CRITERIA IF THE APPLICANT PROVIDES DOCUMENTATION
    20     ACCEPTABLE TO THE DEPARTMENT TO JUSTIFY THE EARLY REPLACEMENT
    21     OF THE CAPITAL PROJECT.
    22         (3)  IF THE APPLICANT IS REQUESTING FINANCIAL ASSISTANCE
    23     FOR EXPANSION OF A CAPITAL PROJECT, EVIDENCE SATISFACTORY TO
    24     THE DEPARTMENT THAT THE APPLICANT WILL HAVE SUFFICIENT FUTURE
    25     ANNUAL OPERATING FUNDS TO SUPPORT THE PROPOSED EXPANSION.
    26         (4)  ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT,
    27     INCLUDING A RETURN ON INVESTMENT ANALYSIS OR A LIFE CYCLE
    28     COST ANALYSIS, OR BOTH.
    29     (C)  LOCAL MATCH REQUIREMENTS.--FINANCIAL ASSISTANCE UNDER
    30  THIS SECTION SHALL BE MATCHED BY LOCAL OR PRIVATE CASH FUNDING
    20070H1590B2342                 - 207 -    

     1  IN AN AMOUNT NOT LESS THAN 3.33% OF THE AMOUNT OF THE FINANCIAL
     2  ASSISTANCE BEING PROVIDED. THE SOURCE OF FUNDS FOR THE LOCAL
     3  MATCH SHALL BE SUBJECT TO THE REQUIREMENTS OF SECTION 1513(D)     <--
     4  1513(D)(3) (RELATING TO OPERATING PROGRAM).                       <--
     5     (D)  CONDITIONS FOR RECEIPT OF BOND FUNDING.--FINANCIAL
     6  ASSISTANCE THAT IS FUNDED BY PROCEEDS OF COMMONWEALTH CAPITAL
     7  BONDS MAY BE PROVIDED TO AN APPLICANT IF ALL OF THE FOLLOWING
     8  CONDITIONS ARE MET:
     9         (1)  THE APPLICANT'S CAPITAL PROJECT HAS BEEN AUTHORIZED
    10     BY A CAPITAL BUDGET PROJECT ITEMIZATION ACT.
    11         (2)  THE APPLICANT'S CAPITAL PROJECT WAS INCLUDED IN THE
    12     DEPARTMENT'S APPROVED ANNUAL RELEASE REQUEST APPROVING THE
    13     USE OF THE FUNDS FOR THE PROPOSED CAPITAL PROJECT IN THE
    14     FISCAL YEAR IN WHICH THE FUNDS ARE EXPECTED TO BE EXPENDED.
    15         (3)  THE DEPARTMENT HAS APPROVED THE UNDERLYING
    16     APPLICATION FOR THE CAPITAL PROJECT.
    17         (4)  THE CAPITAL PROJECT HAS A USEFUL LIFE OF 20 YEARS OR  <--
    18     LONGER.
    19     (E)  PRIORITIES.--THE AWARD OF FINANCIAL ASSISTANCE UNDER
    20  THIS SECTION SHALL BE SUBJECT TO THE FOLLOWING SET OF PRIORITIES
    21  IN DESCENDING ORDER OF SIGNIFICANCE UNLESS A COMPELLING RETURN
    22  ON INVESTMENT ANALYSIS FOR A PROJECT IN A LOWER CATEGORY IS
    23  PROVIDED TO AND APPROVED BY THE DEPARTMENT:
    24         (1)  REQUESTS FOR FUNDS REQUIRED TO SUPPORT EXISTING
    25     LOCAL BOND ISSUES CURRENTLY SUPPORTED WITH STATE REVENUE
    26     SOURCES, SUCH AS DEBT SERVICE AND ASSET LEASES. THE
    27     COMMONWEALTH PLEDGES TO AND AGREES WITH ANY PERSON, FIRM OR
    28     CORPORATION HOLDING ANY BONDS PREVIOUSLY ISSUED BY, OR ANY
    29     OTHER DEBT INCURRED BY, A LOCAL TRANSPORTATION ORGANIZATION,
    30     AND SECURED IN WHOLE OR PART BY A PLEDGE OF THE FUNDS
    20070H1590B2342                 - 208 -    

     1     PROVIDED TO THE LOCAL TRANSPORTATION ORGANIZATION FROM THE
     2     FUND THAT THE COMMONWEALTH WILL NOT LIMIT OR ALTER RIGHTS
     3     VESTED IN A LOCAL TRANSPORTATION ORGANIZATION IN ANY MANNER
     4     INCONSISTENT WITH OBLIGATIONS OF THE LOCAL TRANSPORTATION
     5     ORGANIZATION TO THE OBLIGEES OF THE LOCAL TRANSPORTATION
     6     ORGANIZATION UNTIL ALL BONDS PREVIOUSLY ISSUED OR OTHER DEBT
     7     INCURRED, TOGETHER WITH THE INTEREST THEREON, IS FULLY PAID
     8     OR PROVIDED FOR.
     9         (2)  REQUESTS FOR FUNDS REQUIRED TO MATCH FEDERALLY
    10     APPROVED CAPITAL PROJECTS FUNDED UNDER 49 U.S.C. §§ 5307
    11     (RELATING TO URBANIZED AREA FORMULA GRANTS) AND 5309
    12     (RELATING TO CAPITAL INVESTMENT GRANTS AND LOANS) AND OTHER
    13     FEDERALLY APPROVED CAPITAL PROJECTS.
    14         (3)  OTHER NON-FEDERAL CAPITAL PROJECTS AS DETERMINED BY
    15     THE DEPARTMENT, WHICH SHALL BE FURTHER SUBJECT TO THE
    16     FOLLOWING SET OF PRIORITIES IN DESCENDING ORDER OF
    17     SIGNIFICANCE:
    18             (I)  ESSENTIAL EMERGENCY ASSET IMPROVEMENT PROJECTS.
    19             (II)  STANDARD REPLACEMENT OF EXISTING ASSETS THAT
    20         HAVE EXCEEDED THEIR USEFUL LIFE.
    21             (III)  ASSET IMPROVEMENT PROJECTS TO EXTEND THE
    22         USEFUL LIFE OF THE AFFECTED ASSETS.
    23             (IV)  ACQUISITION OF NEW ASSETS AND OTHER ACCEPTABLE
    24         PURPOSES, OTHER THAN PROJECTS TO BE FUNDED UNDER THE NEW
    25         INITIATIVES PROGRAM DESCRIBED IN SECTION 1515 (RELATING
    26         TO NEW INITIATIVES PROGRAM), AS DETERMINED BY THE          <--
    27         DEPARTMENT.
    28     (F)  BONDING BY AWARD RECIPIENTS.--WITH THE APPROVAL OF THE
    29  DEPARTMENT, AN AWARD RECIPIENT THAT IS PERMITTED BY LAW TO ISSUE
    30  BONDS MAY DO SO FOR THE PURPOSE OF FINANCING A MULTIYEAR CAPITAL
    20070H1590B2342                 - 209 -    

     1  PROJECT. THE DEPARTMENT SHALL ENTER INTO AN AGREEMENT WITH THE
     2  AWARD RECIPIENT PROVIDING THAT PAYMENTS OF THE AWARDED FUNDS
     3  SUFFICIENT TO SATISFY REQUIREMENTS OF THE BONDS ISSUED BE MADE
     4  DIRECTLY TO THE TRUSTEE OF THE BOND HOLDERS UNTIL SUCH TIME AS
     5  THE BONDS ARE RETIRED.
     6  § 1515.  NEW INITIATIVES PROGRAM.
     7     (A)  ELIGIBLE APPLICANTS.--PERSONS ELIGIBLE TO APPLY FOR
     8  FINANCIAL ASSISTANCE UNDER SECTION 1514 (RELATING TO ASSET
     9  IMPROVEMENT PROGRAM) SHALL ALSO BE ELIGIBLE TO APPLY FOR
    10  FINANCIAL ASSISTANCE FOR NEW OR EXPANSIONS OF FIXED GUIDEWAY
    11  SYSTEMS UNDER THIS SECTION.
    12     (B)  APPLICATIONS.--IN ADDITION TO THE INFORMATION REQUIRED
    13  UNDER SECTION 1507 (RELATING TO APPLICATION AND APPROVAL
    14  PROCESS), AN APPLICATION FOR FINANCIAL ASSISTANCE UNDER THIS
    15  SECTION SHALL INCLUDE ALL OF THE INFORMATION REQUIRED IN AN
    16  APPLICATION FOR FINANCIAL ASSISTANCE UNDER SECTION 1514
    17  (RELATING TO ASSET IMPROVEMENT PROGRAM). IF THE APPLICATION IS
    18  FOR A PROPOSED EXPANSION OF A CAPITAL PROJECT, THE APPLICATION
    19  SHALL ALSO INCLUDE EVIDENCE SATISFACTORY TO THE DEPARTMENT THAT
    20  THE APPLICANT WILL HAVE SUFFICIENT FUTURE ANNUAL OPERATING FUNDS
    21  TO SUPPORT THE PROPOSED EXPANSION.
    22     (C)  SOURCE OF FUNDS AND PRIORITIES.--
    23         (1)  SUMS ALLOCATED FOR THE ASSET IMPROVEMENT PROGRAM
    24     UNDER SECTION 1506(E)(2) (RELATING TO FUND), UP TO A MAXIMUM
    25     OF $50,000,000 ANNUALLY, MAY BE USED BY THE DEPARTMENT TO
    26     PROVIDE FINANCIAL ASSISTANCE UNDER THIS SECTION.
    27         (2)  IN AWARDING FINANCIAL ASSISTANCE UNDER THIS SECTION,
    28     THE DEPARTMENT SHALL GIVE PRIORITY TO APPLICANTS THAT INTEND
    29     TO USE THE FUNDS TO SATISFY THE LOCAL MATCHING PORTION OF
    30     FEDERALLY APPROVED NEW STARTS PROJECTS FUNDED PURSUANT TO 49
    20070H1590B2342                 - 210 -    

     1     U.S.C. § 5309 (RELATING TO CAPITAL INVESTMENT GRANTS AND
     2     LOANS). THE DEPARTMENT MAY FUND PROJECTS THAT DO NOT RECEIVE
     3     FUNDING FROM THE FEDERAL NEW STARTS PROGRAM IF THE APPLICANT
     4     CAN PROVIDE SUFFICIENT EVIDENCE THAT THE PROJECT CAN MEET ALL
     5     OF THE FOLLOWING REQUIREMENTS:
     6         (I)  INVESTMENTS IN EXISTING SERVICE AREAS HAVE BEEN
     7     OPTIMIZED.
     8         (II)  AN ANALYSIS REVEALS A REASONABLE RETURN ON
     9     INVESTMENT.
    10         (III)  THE PUBLIC BENEFIT OF THE PROJECT HAS BEEN
    11     IDENTIFIED.
    12         (IV)  THERE EXISTS A LOCAL DEDICATED FUNDING COMMITMENT
    13     TO PAY ANY REQUIRED LOCAL MATCH FOR THE PROJECT AND ONGOING
    14     OPERATING COSTS.
    15         (V)  THERE EXISTS LOCAL TECHNICAL ABILITY AND CAPACITY TO
    16     MANAGE, CONSTRUCT AND OPERATE THE PROJECT.
    17         (VI)  THE PROJECT IS SUPPORTED BY THE ADOPTION OF AN
    18     INTEGRATED LAND USE PLAN BY LOCAL MUNICIPALITIES.
    19     (D)  LOCAL MATCH REQUIREMENT.--FINANCIAL ASSISTANCE UNDER
    20  THIS SECTION SHALL BE MATCHED BY LOCAL OR PRIVATE CASH FUNDING
    21  IN AN AMOUNT NOT LESS THAN 3.33% OF THE AMOUNT OF THE FINANCIAL
    22  ASSISTANCE BEING PROVIDED. THE SOURCE OF FUNDS FOR THIS LOCAL     <--
    23  MATCH SHALL BE SUBJECT TO THE REQUIREMENTS OF SECTION 1513(D)(3)
    24  (RELATING TO OPERATING PROGRAM).
    25  § 1516.  PROGRAMS OF STATEWIDE SIGNIFICANCE.
    26     (A)  GENERAL RULE.--MONEY IN THE FUND ALLOCATED FOR PROGRAMS
    27  OF STATEWIDE SIGNIFICANCE SHALL BE USED BY THE DEPARTMENT TO
    28  SUPPORT PUBLIC TRANSPORTATION PROGRAMS, ACTIVITIES AND SERVICES
    29  NOT OTHERWISE FULLY FUNDED THROUGH THE OPERATING PROGRAM,
    30  CAPITAL PROGRAM OR ASSET IMPROVEMENT PROGRAM. IN ADDITION TO ANY
    20070H1590B2342                 - 211 -    

     1  REQUIREMENTS CONTAINED IN THIS SECTION, APPLICATIONS MUST COMPLY
     2  WITH THE SECTION 1507 (RELATING TO APPLICATION AND APPROVAL       <--
     3  PROCESS). PROGRAMS OF STATEWIDE SIGNIFICANCE SHALL INCLUDE:
     4         (1)  THE PERSONS WITH DISABILITIES PROGRAM.
     5         (2)  INTERCITY PASSENGER RAIL AND BUS SERVICES.            <--
     6         (3)  COMMUNITY TRANSPORTATION CAPITAL AND SERVICE
     7     STABILIZATION.
     8         (4)  THE WELFARE TO WORK PROGRAM AND MATCHING FUNDS FOR
     9     FEDERAL PROGRAMS WITH SIMILAR INTENT.
    10         (5)  DEMONSTRATION AND RESEARCH PROJECTS.
    11         (6)  TECHNICAL ASSISTANCE.
    12         (7)  OTHER PROGRAMS AS DETERMINED BY THE DEPARTMENT.
    13         (8)  THE DEPARTMENT'S COSTS UNDER SECTION 1510(B)
    14     (RELATING TO PROGRAM OVERSIGHT AND ADMINISTRATION) AND
    15     SECTION 1518 (RELATING TO PROGRAM OVERSIGHT AND
    16     ADMINISTRATION).
    17     (B)  PERSONS WITH DISABILITIES.--THE DEPARTMENT SHALL
    18  ESTABLISH AND ADMINISTER A PROGRAM PROVIDING REDUCED FARES TO
    19  PERSONS WITH DISABILITIES ON COMMUNITY TRANSPORTATION SERVICES
    20  AND TO PROVIDE FINANCIAL ASSISTANCE FOR START-UP, ADMINISTRATIVE
    21  AND CAPITAL EXPENSES RELATED TO REDUCED FARES FOR PERSONS WITH
    22  DISABILITIES. ALL OF THE FOLLOWING SHALL APPLY:
    23         (1)  A COMMUNITY TRANSPORTATION SYSTEM OPERATING IN THE
    24     COMMONWEALTH OTHER THAN IN COUNTIES OF THE FIRST AND SECOND
    25     CLASS MAY APPLY FOR FINANCIAL ASSISTANCE UNDER THIS
    26     SUBSECTION.
    27         (2)  THE DEPARTMENT MAY AWARD FINANCIAL ASSISTANCE UNDER
    28     THIS SUBSECTION FOR PROGRAM START-UP AND FOR CONTINUING
    29     CAPITAL EXPENSES TO OFFSET ADMINISTRATIVE AND CAPITAL
    30     EXPENSES. FOR COMMUNITY TRANSPORTATION TRIPS MADE BY ELIGIBLE
    20070H1590B2342                 - 212 -    

     1     PERSONS WITH DISABILITIES, FINANCIAL ASSISTANCE MAY BE
     2     AWARDED TO AN ELIGIBLE COMMUNITY TRANSPORTATION SYSTEM TO
     3     REIMBURSE THE SYSTEM FOR UP TO 85% OF THE FARE ESTABLISHED
     4     FOR THE GENERAL PUBLIC FOR EACH TRIP WHICH IS OUTSIDE OF A
     5     FIXED-ROUTE AND PARATRANSIT SERVICE AREAS AND NOT ELIGIBLE
     6     FOR FUNDING FROM ANY OTHER PROGRAM OR FUNDING SOURCE. THE
     7     PERSON MAKING THE TRIP OR AN APPROVED THIRD-PARTY SPONSOR
     8     SHALL CONTRIBUTE THE GREATER OF 15% OF THE FARE ESTABLISHED
     9     FOR THE GENERAL PUBLIC OR THE AMERICANS WITH DISABILITIES ACT
    10     COMPLEMENTARY PARATRANSIT FARE.
    11     (C)  INTERCITY TRANSPORTATION.--THE DEPARTMENT IS AUTHORIZED
    12  TO PROVIDE FINANCIAL ASSISTANCE FOR AN EFFICIENT AND COORDINATED
    13  INTERCITY COMMON CARRIER SURFACE TRANSPORTATION PROGRAM,
    14  CONSISTING OF BOTH INTERCITY RAIL PASSENGER RAIL SERVICE AND      <--
    15  INTERCITY BUS SERVICE TRANSPORTATION, WITH THE INTENT OF          <--
    16  SUSTAINING STRONG INTERCITY CONNECTIONS. ALL OF THE FOLLOWING
    17  SHALL APPLY:
    18         (1)  AN INTERCITY PASSENGER RAIL SERVICE PROVIDER, A
    19     LOCAL TRANSPORTATION ORGANIZATION, AN AGENCY OR
    20     INSTRUMENTALITY OF THE COMMONWEALTH OR A TRANSPORTATION
    21     COMPANY THAT PROVIDES INTERCITY PUBLIC TRANSPORTATION SERVICE
    22     MAY APPLY FOR FINANCIAL ASSISTANCE UNDER THIS SUBSECTION. THE
    23     DEPARTMENT IS AUTHORIZED TO ENTER INTO JOINT SERVICE
    24     AGREEMENTS WITH A RAILROAD COMPANY, ANY OTHER AGENCY OR
    25     INSTRUMENTALITY OF THE COMMONWEALTH, A FEDERAL AGENCY OR AN
    26     AGENCY OR INSTRUMENTALITY OF ANY OTHER JURISDICTION RELATING
    27     TO PROPERTY, BUILDINGS, STRUCTURES, FACILITIES, SERVICES,
    28     RATES, FARES, CLASSIFICATIONS, DIVIDENDS, ALLOWANCES OR
    29     CHARGES, INCLUDING CHARGES BETWEEN INTERCITY RAIL PASSENGER
    30     SERVICE FACILITIES, OR RULES OR REGULATIONS PERTAINING
    20070H1590B2342                 - 213 -    

     1     THERETO, FOR OR IN CONNECTION WITH OR INCIDENTAL TO
     2     TRANSPORTATION IN WHOLE OR IN PART UPON INTERCITY RAIL
     3     PASSENGER SERVICE FACILITIES.
     4         (2)  OPERATING ASSISTANCE AND CAPITAL ASSISTANCE MAY BE
     5     PROVIDED FOR INTERCITY BUS AND RAIL SERVICES SERVICE AND       <--
     6     INTERCITY PASSENGER RAIL SERVICE AS DETERMINED BY THE
     7     DEPARTMENT.
     8         (3)  FOR FINANCIAL ASSISTANCE TO A TRANSPORTATION
     9     COMPANY, ELIGIBLE MATCHING FUNDS SHALL CONSIST ONLY OF CASH
    10     INCOME GENERATED BY THE TRANSPORTATION COMPANY FROM ITS
    11     ACTIVITIES, OTHER THAN THE PROVISION OF SUBSIDIZED PUBLIC
    12     PASSENGER TRANSPORTATION SERVICE, AND CONTRIBUTED BY THE
    13     TRANSPORTATION COMPANY IN THE AMOUNT AND FOR THE TIME PERIOD
    14     SPECIFIED IN THE FINANCIAL ASSISTANCE AGREEMENT.
    15         (4)  LOCAL MATCH REQUIREMENTS ARE AS FOLLOWS:
    16             (I)  FOR INTERCITY BUS SERVICE OPERATING AND CAPITAL   <--
    17         ASSISTANCE, FINANCIAL ASSISTANCE SHALL REQUIRE A LOCAL
    18         MATCH BY LOCAL OR PRIVATE CASH FUNDING IN AN AMOUNT EQUAL
    19         TO AT LEAST 100% OF THE AMOUNT OF THE FINANCIAL
    20         ASSISTANCE BEING PROVIDED.
    21             (II)  FOR INTERCITY RAIL PASSENGER RAIL SERVICE        <--
    22         OPERATING AND CAPITAL ASSISTANCE, FINANCIAL ASSISTANCE
    23         SHALL REQUIRE A LOCAL MATCH ON A CASE-BY-CASE BASIS,
    24         TAKING INTO ACCOUNT THE BEST INTERESTS OF THE
    25         COMMONWEALTH.
    26         (5)  FOR PURPOSES OF THIS SUBSECTION, "LOCAL MATCH" IS
    27     DEFINED AS LOCAL REVENUE OBTAINED FROM OTHER NONSUBSIDIZED
    28     SERVICES, SUCH AS CHARTER, SCHOOL BUS OR PROFITS REALIZED
    29     FROM OTHER INTERCITY BUS SERVICES. LOCAL MATCH SHALL NOT
    30     INCLUDE ANY FUNDS RECEIVED FROM FEDERAL OR STATE SOURCES.
    20070H1590B2342                 - 214 -    

     1     (D)  COMMUNITY TRANSPORTATION.--
     2         (1)  THE DEPARTMENT IS AUTHORIZED TO PROVIDE FINANCIAL
     3     ASSISTANCE UNDER THIS SECTION FOR ALL OF THE FOLLOWING:
     4             (I)  CAPITAL EXPENDITURES FOR THE PROVISION OF
     5         COMMUNITY TRANSPORTATION SERVICE; AND
     6             (II)  SERVICE STABILIZATION, INCLUDING:
     7                 (A)  STABILIZING CURRENT SERVICE AND FARES.
     8                 (B)  PROVIDING ADVICE OR TECHNICAL ASSISTANCE TO
     9             ANALYZE AND ENHANCE COMMUNITY TRANSPORTATION SYSTEM
    10             RESOURCES AND SERVICES.
    11                 (C)  MAXIMIZING AVAILABLE FUNDING INCLUDING
    12             FEDERAL DOLLARS.
    13                 (D)  ENSURING EQUITABLE COST SHARING.
    14         (2)  SUBJECT TO THE LIMITATIONS OF THIS SUBSECTION, THE
    15     FOLLOWING MAY APPLY FOR FINANCIAL ASSISTANCE UNDER THIS
    16     SUBSECTION:
    17             (I)  THE GOVERNING BODY OF A COUNTY, OTHER THAN A
    18         COUNTY OF THE FIRST OR SECOND CLASS.
    19             (II)  A TRANSPORTATION COMPANY DESIGNATED BY THE
    20         GOVERNING BODY OF THE COUNTY AS THE COORDINATOR OF
    21         COMMUNITY TRANSPORTATION SERVICE.
    22             (III)  AN AGENCY OR INSTRUMENTALITY OF THE
    23         COMMONWEALTH.                                              <--
    24         (2.1)  EACH ELIGIBLE APPLICANT SHALL BE SUBJECT TO ALL OF
    25     THE FOLLOWING REQUIREMENTS:
    26             (I)  AN APPLICANT FOR FINANCIAL ASSISTANCE FOR
    27         CAPITAL EXPENDITURES FOR THE PROVISION OF PUBLIC
    28         COMMUNITY TRANSPORTATION SERVICE SHALL CERTIFY TO THE
    29         DEPARTMENT THAT IT HAS TAKEN ALL REASONABLE STEPS TO
    30         COORDINATE LOCAL SERVICE FOR THE ELDERLY AND PERSONS WITH
    20070H1590B2342                 - 215 -