1Amending Titles 74 (Transportation) and 75 (Vehicles) of the
2Pennsylvania Consolidated Statutes, in sustainable mobility
3options, further providing for definitions, for department
4authorization, for the Public Transportation Trust Fund, for
5application and approval process, for coordination, for
6operating program, for asset improvement program and for
7programs of Statewide significance and repealing provisions
8relating to capital improvements program; and in Pennsylvania
9Turnpike, repealing provisions relating to deposit and
10distribution of funds.

11The General Assembly of the Commonwealth of Pennsylvania
12hereby enacts as follows:

13Section 1.  The definition of "base operating allocation" in
14section 1503 of Title 74 of the Pennsylvania Consolidated
15Statutes is amended to read:

16§ 1503.  Definitions.

17The following words and phrases when used in this chapter
18shall have the meanings given to them in this section unless the
19context clearly indicates otherwise:

20* * *

21"Base operating allocation."  [The total amount of State
22operating assistance, reimbursement in lieu of fares for senior

1passengers and other assistance which was used for operating
2assistance as determined by the department in fiscal year 2005-
32006.] The total amount of State operating assistance, 
4reimbursement in lieu of fares for senior passengers and other 
5assistance that was used for operating assistance as determined 
6by the Department of Transportation in the last full fiscal year 
7that the qualifying local transportation organization received 
8the assistance.

9* * *

10Section 2.  Section 1504(a) of Title 74 is amended to read:

11§ 1504.  Department authorization.

12(a)  General.--The department may, within the limitations
13provided in this chapter, incur costs directly and provide
14financial assistance for the purposes and activities enumerated
15in this chapter. The operation of such programs, activities and 
16services by the department shall not be subject to the 
17jurisdiction of the Pennsylvania Public Utility Commission.

18* * *

19Section 3.  Section 1506(b)(1), (c)(1) and (e) of Title 74
20are amended and the section is amended by adding a subsection to

22§ 1506.  Fund.

23* * *

24(a.1)  Availability of funds.--Funds not expended in the
25fiscal year they were made available shall not lapse and shall
26be available until expended.

27(b)  Deposits to fund by department.--

28(1)  The following apply:

29(i)  Except as provided under subparagraph (ii), upon
30receipt, the department shall deposit into the fund the 

1revenues received by the department under 75 Pa.C.S. Ch. 
289 (relating to Pennsylvania Turnpike) and the lease 
3agreement executed between the department and the 
4Pennsylvania Turnpike Commission under 75 Pa.C.S. § 
58915.3 (relating to lease of Interstate 80; related
6agreements) as follows:

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

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

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

10(D)  For fiscal year 2010-2011 and each fiscal
11year thereafter, the amount calculated for the
12previous fiscal year, increased by 2.5%.

13(ii)  The deposits made to the fund under this
14subsection from the turnpike shall equal [$250,000,000]
15$450,000,000 annually for each fiscal year commencing 
16[after the expiration of the conversion period if the
17conversion notice is not received by the secretary prior
18to expiration of the conversion period as set forth under 
1975 Pa.C.S. § 8915.3(3)] with fiscal year 2013-2014.

20* * *

21(c)  Other deposits.--The following shall be deposited into
22the fund annually:

23(1)  [4.4%] 6.4% of the amount collected under Article II
24of the Tax Reform Code. Revenues under this paragraph shall
25be deposited into the fund by the 20th day of each month for
26the preceding month. The amount deposited under this
27paragraph is estimated to be equivalent to the money
28available to the department from the following sources:

29(i)  The Supplemental Public Transportation Account
30established under former section 1310.1 (relating to

1supplemental public transportation assistance funding).

2(ii)  The amount appropriated annually by the
3Commonwealth from the General Fund for mass transit
4programs pursuant to a General Appropriations Act.

5* * *

6(e)  Program funding amounts.--Subject to available funds,
7the programs established under this chapter shall be funded
8annually as follows:

9(1)  For the program established under section 1513
10(relating to operating program), the following amounts shall
11be allocated from the fund:

12(i)  All revenues deposited in the fund under
13subsection (b)(1).

14(ii)  All revenues deposited in the fund under
15subsection (b)(2).

16(iii)  69.99% of the revenues deposited in the fund
17under subsection (c)(1).

18(iv)  All revenues deposited into the fund under
19subsection (c)(3).

20(2)  (i)  Except as provided under subparagraph (ii), for
21the program established under section 1514 (relating to asset
22improvement program):

23(A)  By the proceeds of Commonwealth capital
24bonds deposited into the fund under subsection (c)

26(A.1)  For fiscal year 2007-2008, $50,000,000
27from the revenues received by the department under 75 
28Pa.C.S. Ch. 89 and the lease agreement executed 
29between the department and the Pennsylvania Turnpike 
30Commission under 75 Pa.C.S. § 8915.3. The amount 

1received by the department under this section shall
2be deposited into the fund prior to distribution and
3shall be in addition to the amounts received under
4subsection (b)(1).

5(B)  For fiscal year 2008-2009, $100,000,000 from 
6the revenues received by the department under 75 
7Pa.C.S. Ch. 89 and the lease agreement executed 
8between the department and the Pennsylvania Turnpike 
9Commission under 75 Pa.C.S. § 8915.3. The amount 
10received by the department under this section shall 
11be deposited into the fund prior to distribution and
12shall be in addition to the amounts received under
13subsection (b)(1).

14(C)  For fiscal year 2009-2010, $150,000,000 from
15the revenues received by the department under 75 
16Pa.C.S. Ch. 89 and the lease agreement executed 
17between the department and the Pennsylvania Turnpike 
18Commission under 75 Pa.C.S. § 8915.3. The amount 
19received by the department under this section shall
20be deposited into the fund prior to distribution and
21shall be in addition to the amounts received under
22subsection (b)(1).

23(D)  For fiscal year 2010-2011 and each fiscal
24year thereafter, the amount calculated for the prior
25fiscal year increased by 2.5% from the revenues
26received by the department under 75 Pa.C.S. Ch. 89 
27and the lease agreement executed between the 
28department and the Pennsylvania Turnpike Commission 
29under 75 Pa.C.S. § 8915.3. The amount received by the 
30department under this section shall be deposited into 

1the fund prior to distribution and shall be in 
2addition to the amounts received under subsection 

4(E)  95% of all revenues deposited in the fund
5under subsection (b)(1).

6(ii)  If the conversion notice is not received by the
7secretary prior to the end of the conversion period as
8set forth in 75 Pa.C.S. § 8915.3(3), no additional
9allocation shall be made under subparagraph (i).

10(3)  For the program established under section 1516
11(relating to programs of Statewide significance), [13.24%]
1220.63% of the revenues deposited in the fund under subsection
13(c)(1) shall be allocated from the fund plus 5% of all 
14revenue deposited in the fund under subsection (b)(1).

15[(4)  For the program established under section 1517
16(relating to capital improvements program), 16.77% of the
17revenues deposited in the fund under subsection (c)(1).
18Additional funds for this program may be provided from the
19funds allocated but not distributed based on the limitation
20set forth under section 1513(c)(3).]

21Section 4.  Sections 1507(a) and (c), 1512, 1513(c)(2)(i) and
221514(c) and (e) of Title 74 are amended to read:

23§ 1507.  Application and approval process.

24(a)  Application.--An eligible applicant that wishes to
25receive financial assistance under this chapter shall submit a
26written application to the department on a form developed by the
27department, which shall include the following:

28(1)  The name and address of the applicant.

29(2)  The name and telephone number of a contact person
30for the applicant.

1(3)  The amount and type of financial assistance
2requested and the proposed use of the funds.

3(4)  A statement as to the particular need for the
4financial assistance.

5(5)  A certified copy of a current resolution authorizing
6submission of the application if the applicant is a governing

8(6)  Evidence satisfactory to the department of the
9commitment for matching funds required under this chapter
10sufficient to match the projected financial assistance
11payments [at the same times that the financial assistance
12payments are to be provided] no later than June 30 of the 
13applicable fiscal year. If this evidence is not provided, 
14subsequent funding under section 1513 (relating to operating 
15program) shall be withheld.

16(7)  A statement of policy outlining basic principles for 
17adjustment in fare revenue growth to meet the rate of 

19(8)  Any other information the department deems necessary
20or desirable.

21* * *

22(c)  Restriction on use of funds.--[Financial assistance
23under this chapter shall be used only for activities set forth
24under the financial assistance agreement unless the department
25grants the award recipient a waiver allowing the funds to be
26used for a different purpose. The department's regulations shall
27describe circumstances under which it will consider waiver
28requests and shall set forth all information to be included in a
29waiver request. The maximum duration of a waiver shall be one
30year, and a waiver request shall include a plan of corrective

1action to demonstrate that the award recipient does not have an
2ongoing need to use financial assistance funds for activities
3other than those for which funds were originally awarded.]
4Unless the department grants the award recipient a waiver 
5allowing the funds to be used for a different purpose, financial 
6assistance under this chapter may be used only for activities 
7set forth under the financial assistance agreement. The 
8regulations of the department shall describe circumstances under 
9which it will consider waiver requests and shall set forth the 
10information to be included in a waiver request. The waiver 
11request shall include a plan of corrective action to demonstrate 
12that the award recipient does not have an ongoing need to use 
13financial assistance funds for activities other than those for 
14which funds were originally awarded. The duration of the waiver 
15may not exceed the duration of the plan of corrective action. 
16The department shall monitor implementation of the plan of 
17corrective action. If the plan of corrective action is not 
18implemented by the local transportation organization, the 
19department shall rescind the waiver approval.

20§ 1512.  Coordination.

21(a)  Coordination.--Coordination is required in regions where 
22two or more award recipients have services or activities for 
23which financial assistance is being provided under this chapter 
24to assure that the services or activities are provided 
25efficiently and effectively.

26(b)  Consolidation.--The department may study consolidation
27of local transportation organizations as a means of reducing
28annual expenses. Consolidation shall not occur until the
29department and the affected transportation organizations have
30jointly conducted a study. The study shall examine the creation

1of service regions to determine whether consolidation would
2reduce annual expenses. If the results of the study estimate
3annual savings, the transportation organizations and local
4governments shall either implement the recommended actions or
5provide increased local matching funds equal to the projected
6annual savings.

7(c)  Funding for merger and consolidation incentives.--
8Capital projects that are needed to support local transportation
9organizations that have agreed to merge and consolidate
10operations and administration to achieve cost and service
11efficiencies shall be eligible for financial assistance under
12this chapter. The application for financial assistance shall
13identify the efficiencies in a merger and consolidation plan and
14shall include the expected dollar savings that will result from
15the merger and consolidation.

16§ 1513.  Operating program.

17* * *

18(c)  Distribution formula.--

19* * *

20(2)  For fiscal year 2007-2008 and each fiscal year
21thereafter, each qualifying local transportation organization
22shall receive financial assistance which shall consist of the

24(i)  Its base operating allocation [multiplied by

26* * *

27§ 1514.  Asset improvement program.

28* * *

29(c)  Local match requirements.--Financial assistance under
30this section shall be matched by local or private cash funding

1in an amount not less than [3.33% of the amount of the financial
2assistance being provided] 10% of the non-Federal share of the 
3project cost. The source of funds for the local match shall be
4subject to the requirements of section 1513(d)(3) (relating to
5operating program).

6* * *

7[(e)  Priorities.--The award of financial assistance under
8this section shall be subject to the following set of priorities
9in descending order of significance unless a compelling return
10on investment analysis for a project in a lower category is
11provided to and approved by the department:

12(1)  Requests for funds required to support existing
13local bond issues currently supported with State revenue
14sources, such as debt service and asset leases. The
15Commonwealth pledges to and agrees with any person, firm or
16corporation holding any bonds previously issued by, or any
17other debt incurred by, a local transportation organization
18and secured in whole or part by a pledge of the funds
19provided to the local transportation organization from the
20fund that the Commonwealth will not limit or alter rights
21vested in a local transportation organization in any manner
22inconsistent with obligations of the local transportation
23organization to the obligees of the local transportation
24organization until all bonds previously issued or other debt
25incurred, together with the interest thereon, is fully paid
26or provided for.

27(2)  Requests for funds required to match federally
28approved capital projects funded under 49 U.S.C. §§ 5307
29(relating to urbanized area formula grants) and 5309
30(relating to capital investment grants and loans) and other

1federally approved capital projects.

2(3)  Other non-Federal capital projects as determined by
3the department, which shall be further subject to the
4following set of priorities in descending order of

6(i)  Essential emergency asset improvement projects.

7(ii)  Standard replacement of existing assets that
8have exceeded their useful life.

9(iii)  Asset improvement projects to extend the
10useful life of the affected assets.

11(iv)  Acquisition of new assets and other acceptable
12purposes, other than projects to be funded under the new
13initiatives program described in section 1515 (relating
14to new initiatives program), as determined by the

16(e)  Distribution.--The department shall allocate financial
17assistance under this section on a percentage basis of available
18funds each fiscal year as follows:

19(1)  The local transportation organization currently
20organized and existing under Chapter 17 (relating to
21metropolitan transportation authorities) as the primary
22provider of public passenger transportation for the counties
23of Philadelphia, Bucks, Chester, Delaware and Montgomery
24shall receive 69.4% of the funds available for distribution
25under this section.

26(2)The local transportation organization currently 
27organized and existing under the act of April 6, 1956 (1955 
28P.L.1414, No.465), known as the Second Class County Port 
29Authority Act, as the primary provider of public 
30transportation for the county of Allegheny shall receive 

122.6% of the funds available for distribution under this 

3(3)  Other local transportation organizations organized
4and existing as the primary providers of public passenger
5transportation for the counties of this Commonwealth not
6identified in paragraph (1) or (2) shall receive 8% of the
7funds available for distribution under this section. The
8department shall allocate the funds under this paragraph
9among the local transportation organizations.

10(4)  Notwithstanding paragraphs (1), (2) and (3) and
11before distributing the funds under paragraph (1), (2) or
12(3), the department shall set aside 5% of the funds available
13for distribution under this section for discretionary use and
14distribution by the department.

15* * *

16Section 5.  Section 1516(b)(1) and (e)(2) and (3) of Title 74
17are amended and subsection (e) is amended by adding a paragraph
18to read:

19§ 1516.  Programs of Statewide significance.

20* * *

21(b)  Persons with disabilities.--The department shall
22establish and administer a program providing reduced fares to
23persons with disabilities on community transportation services
24and to provide financial assistance for start-up, administrative
25and capital expenses related to reduced fares for persons with
26disabilities. All of the following shall apply:

27(1)  A community transportation system operating in the
28Commonwealth other than in counties of the first [and second]
29class may apply for financial assistance under this

1* * *

2(e)  Technical assistance and demonstration.--The department
3is authorized to provide financial assistance under this section
4for technical assistance, research and short-term demonstration
5projects. All of the following shall apply:

6* * *

7(2)  Financial assistance provided under this subsection
8may be used for reimbursement for any approved operating or
9capital costs related to technical assistance and
10demonstration program projects. Financial assistance for
11short-term demonstration projects may be provided at the
12department's discretion on an annual basis based on the level
13of financial commitment provided by the award recipient to
14provide ongoing future funding for the project as soon as the
15project meets the criteria established by the department and
16the award recipient. Financial assistance for this purpose
17shall not be provided for more than three fiscal years.
18[Financial assistance may be provided to meet any short-term
19emergency need that requires immediate attention and cannot
20be funded through other sources.]

21(3)  Financial assistance under this subsection provided
22to a local transportation organization shall be matched by
23local or private cash funding in an amount not less than
243.33% of the [amount of the financial assistance being
25provided] non-Federal share of project costs. The sources of
26funds for the local match shall be subject to the
27requirements of section 1513(d)(3) (relating to operating

29(4)  For short-term demonstration projects awarded
30financial assistance under paragraph (2), the department

1shall determine if the demonstration project was successful
2based upon the performance criteria established at the outset
3of the demonstration project. If the department, in its
4reasonable and sole discretion, determines that the
5demonstration project was successful, the local
6transportation organization or agency or instrumentality of
7the Commonwealth that conducted the demonstration project
8shall be eligible to apply for and receive funds under
9section 1513 to sustain and transition the demonstration
10project into its permanent public passenger transportation
11service. During the first year of the demonstration project's 
12eligibility for and transition to applying for and being 
13awarded funds under section 1513, the local transportation
14agency or agency or instrumentality of the Commonwealth that
15conducted the demonstration project and transitions it into
16its permanent transportation service shall be eligible to
17receive financial assistance of up to 65% of the
18transportation service's prior fiscal year operating costs or
19expenses for the service. The formula for the service will be
20provided from the new growth funding prior to the full
21funding distribution, creating a base for the service. Every
22year thereafter that the transportation service continues in
23operation, the local transportation agency or agency or
24instrumentality of the Commonwealth providing the
25transportation service shall only be eligible for increased
26financial assistance in accordance with section 1513 and all
27other relevant provisions, limitations and requirements of
28section 1513. Local transportation agencies or agencies or
29instrumentalities of the Commonwealth with well-established
30public passenger transportation systems shall be eligible for

1section 1513 operating assistance for successful
2demonstration projects where the project's revenue vehicle
3miles or revenue vehicle service are equal to or exceed 20%
4of the agency's or instrumentality's service that is
5receiving funding under section 1513 when the department
6determines that the demonstration project is successful.

7Section 6.  Section 1517 of Title 74 is repealed:

8[§ 1517.  Capital improvements program.

9(a)  Eligibility.--A local transportation organization may
10apply for financial assistance under this section.

11(b)  Applications.--The department shall establish the
12contents of the application for the program established under
13this section. The information shall be in addition to
14information required under section 1507 (relating to application
15and approval process).

16(c)  Distribution formula.--The department shall award
17financial assistance under this section based on the number of
18passengers. The actual amount awarded to a local transportation
19organization under this subsection shall be calculated as

21(1)  Multiply the local transportation organization's
22passengers by the total amount of funding available under
23this section.

24(2)  Divide the product under paragraph (1) by the sum of
25the passengers for all qualifying local transportation

27(d)  Payments.--Financial assistance under this section shall
28be paid to local transportation organizations at least

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

1provided to a local transportation organization under this
2section shall be reduced by any financial assistance received
3previously under this section which has not been spent or
4committed in a contract within three years of its receipt.]

5Section 7.  Section 8915.6 of Title 75 is repealed:

6[§ 8915.6.  Deposit and distribution of funds.

7(a)  Deposits.--Upon receipt by the department, the following
8amounts from the scheduled annual commission contribution shall
9be deposited in the Motor License Fund:

10(1)  For fiscal year 2007-2008, $450,000,000.

11(2)  For fiscal year 2008-2009, $500,000,000.

12(3)  For fiscal year 2009-2010, $500,000,000.

13(4)  For fiscal year 2010-2011 and each fiscal year
14thereafter, the amount calculated for the previous year
15increased by 2.5%.

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

17(1)  Annually, 15% of the amount deposited in any fiscal
18year under subsection (a) shall be distributed at the
19discretion of the secretary.

20(2)  Annually, $5,000,000 of the amount deposited in any
21fiscal year under subsection (a) shall be distributed to

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

24(A)  the square footage of deck area of a
25county's county-owned bridges; to

26(B)  the total square footage of deck area of
27county-owned bridges throughout this Commonwealth.

28(ii)  The amount of square footage under subparagraph
29(i) shall be that reported as part of the National Bridge
30Inspection Standards Program.

1(3)  Annually, $30,000,000 of the amount deposited in any
2fiscal year under subsection (a) shall be distributed to
3municipalities pursuant to the act of June 1, 1956 (1955 
4P.L.1944, No.655), referred to as the Liquid Fuels Tax
5Municipal Allocation Law.

6(4)  Any funds deposited under subsection (a) but not
7distributed under paragraphs (1), (2) and (3) shall be
8distributed in accordance with needs-based formulas that are
9developed and subject to periodic revision based on
10consultation and collaboration among metropolitan planning
11organizations, rural planning organizations and the

13(c)  Definitions.--The following words and phrases when used
14in this section shall have the meanings given to them in this
15subsection unless the context clearly indicates otherwise:

16"Metropolitan planning organization."  The policy board of an
17organization created and designated to carry out the
18metropolitan transportation planning process.

19"Rural planning organization."  The organization of counties
20with populations of less than 50,000 created and designated as
21local development districts and which carry out the rural
22transportation planning process.]

23Section 8.  This act shall take effect in 60 days.