SENATE AMENDED
        PRIOR PRINTER'S NO. 88                        PRINTER'S NO. 4159

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 84 Session of 1985


        INTRODUCED BY LIVENGOOD, HUTCHINSON, PHILLIPS, LETTERMAN, BURD,
           STEIGHNER, WASS, BELFANTI AND FRYER, JANUARY 23, 1985

        SENATOR TILGHMAN, APPROPRIATIONS, IN SENATE, RE-REPORTED AS
           AMENDED, NOVEMBER 18, 1986

                                     AN ACT

     1  Amending Title 75 (Vehicles) of the Pennsylvania Consolidated     <--
     2     Statutes, changing the methods of determining noise
     3     violations.
     4  AMENDING THE ACT OF JANUARY 22, 1968 (P.L.42, NO.8), ENTITLED,    <--
     5     AS AMENDED, "AN ACT EMPOWERING AND AUTHORIZING THE DEPARTMENT
     6     OF TRANSPORTATION TO ESTABLISH AND ADMINISTER CERTAIN GRANT
     7     PROGRAMS FOR THE BETTERMENT OF MASS TRANSPORTATION SYSTEMS
     8     AND FACILITIES THROUGHOUT THE COMMONWEALTH; PROVIDING FOR
     9     STATE GRANTS TO TRANSPORTATION COMPANIES, MUNICIPALITIES,
    10     COUNTIES, OR THEIR INSTRUMENTALITIES AND TO AGENCIES AND
    11     INSTRUMENTALITIES OF THE COMMONWEALTH FOR STUDIES, RESEARCH,
    12     DEMONSTRATION PROGRAMS, PROMOTION PROGRAMS, PURCHASE OF
    13     SERVICE PROJECTS, AND CAPITAL IMPROVEMENT PROJECTS UNDER
    14     CERTAIN CONDITIONS; AUTHORIZING GRANTS BY COUNTIES OR
    15     MUNICIPALITIES IN METROPOLITAN AREAS TO LOCAL TRANSPORTATION
    16     ORGANIZATIONS, AUTHORIZING THE CREATION OF A TRANSPORTATION
    17     AUTHORITY TO FUNCTION IN EACH METROPOLITAN AREA CONSISTING OF
    18     ANY COUNTY OF THE FIRST CLASS AND ALL NEARBY COUNTIES WITHIN
    19     A RADIUS OF TWENTY MILES OF ANY SUCH FIRST CLASS COUNTY, AS A
    20     BODY CORPORATE AND POLITIC FOR THE PURPOSE OF ESTABLISHING AN
    21     INTEGRATED MASS TRANSPORTATION SYSTEM WITH ALL PERTINENT
    22     POWERS INCLUDING, BUT NOT LIMITED TO, LEASING, ACQUIRING,
    23     OWNING, OPERATING AND MAINTAINING A SYSTEM FOR, OR OTHERWISE
    24     PROVIDING FOR, THE TRANSPORTATION OF PERSONS, AUTHORIZING THE
    25     BORROWING OF MONEY AND ISSUANCE OF BONDS THEREFOR, CONFERRING
    26     THE RIGHT OF EMINENT DOMAIN ON THE AUTHORITY; ALTERING THE
    27     JURISDICTION OF THE PUBLIC UTILITY COMMISSION, AUTHORIZING
    28     THE ACCEPTANCE OF GRANTS FROM FEDERAL, STATE AND LOCAL
    29     GOVERNMENTS, LIMITING ACTIONS AGAINST THE AUTHORITY AND
    30     EXEMPTING IT FROM TAXATION, AUTHORIZING COUNTIES AND
    31     MUNICIPALITIES TO ENTER INTO COMPACTS FOR THE FINANCING OF


     1     EACH AUTHORITY AND TO MAKE APPROPRIATIONS IN ACCORDANCE WITH
     2     SUCH COMPACTS, CREATING A CITIZEN ADVISORY COMMITTEE,
     3     CONFERRING EXCLUSIVE JURISDICTION UPON CERTAIN COURTS WITH
     4     RESPECT TO MATTERS RELATING TO SUCH AUTHORITY, EMPOWERING
     5     EACH AUTHORITY TO FUNCTION OUTSIDE OF THE METROPOLITAN AREA
     6     UNDER CERTAIN TERMS AND CONDITIONS," FURTHER DEFINING CERTAIN
     7     TRANSIT ENTITIES; REQUIRING ONE-THIRD LOCAL OR PRIVATE
     8     FUNDING MATCHES FOR STATE GRANTS WITH CERTAIN EXCEPTIONS;
     9     REMOVING CERTAIN LIMITATIONS ON STATE GRANTS; AND FURTHER
    10     PROVIDING FOR ANNUAL APPROPRIATIONS AND NEW FORMULAS FOR
    11     DISTRIBUTION OF THE APPROPRIATIONS TO TRANSPORTATION
    12     ORGANIZATIONS AND COMPANIES.

    13     The General Assembly of the Commonwealth of Pennsylvania
    14  hereby enacts as follows:
    15     Section 1.  Section 4523(a) of Title 75 of the Pennsylvania    <--
    16  Consolidated Statutes is amended to read:
    17  § 4523.  Exhaust systems, mufflers and noise control.
    18     (a)  Compliance with established sound levels.--Every motor
    19  vehicle operated on a highway shall be constructed, equipped,
    20  maintained and operated so as not to exceed the sound level for
    21  the vehicle as prescribed in regulations promulgated by the
    22  department. The test procedures and instrumentation to be
    23  utilized shall also be established by regulation. Violations of
    24  this section may be proven by the testimony of two police
    25  officers who were on the scene and who testify that the noise
    26  was, in their opinion, excessive and there was a violation of
    27  subsection (c) or (d). Violations may also be proven by means or
    28  methods prescribed by the department to enforce this section.
    29     * * *
    30     Section 2.  This act shall take effect in 60 days.
    31     SECTION 1.  SECTION 202 OF THE ACT OF JANUARY 22, 1968         <--
    32  (P.L.42, NO.8), KNOWN AS THE PENNSYLVANIA URBAN MASS
    33  TRANSPORTATION LAW, IS AMENDED BY ADDING DEFINITIONS TO READ:
    34     SECTION 202.  DEFINITIONS.--THE FOLLOWING TERMS, WHENEVER
    35  USED OR REFERRED TO IN THIS ARTICLE, SHALL HAVE THE FOLLOWING

    19850H0084B4159                  - 2 -

     1  MEANINGS, EXCEPT IN THOSE INSTANCES WHERE THE CONTEXT CLEARLY
     2  INDICATES A DIFFERENT MEANING:
     3     * * *
     4     "CLASS 1 TRANSIT ENTITY" SHALL MEAN AND INCLUDE A LOCAL
     5  TRANSPORTATION ORGANIZATION OR TRANSPORTATION COMPANY OPERATING
     6  ONE THOUSAND OR MORE TRANSIT VEHICLES IN THE PEAK PERIOD.
     7     "CLASS 2 TRANSIT ENTITY" SHALL MEAN AND INCLUDE A LOCAL
     8  TRANSPORTATION ORGANIZATION OR TRANSPORTATION COMPANY OPERATING
     9  MORE THAN THREE HUNDRED BUT LESS THAN ONE THOUSAND TRANSIT
    10  VEHICLES IN THE PEAK PERIOD.
    11     "CLASS 3 TRANSIT ENTITY" SHALL MEAN AND INCLUDE A LOCAL
    12  TRANSPORTATION ORGANIZATION OR TRANSPORTATION COMPANY OPERATING
    13  THREE HUNDRED OR LESS FIXED ROUTE TRANSIT VEHICLES IN THE PEAK
    14  PERIOD.
    15     "CLASS 3A TRANSIT ENTITY" SHALL MEAN AND INCLUDE A LOCAL
    16  TRANSPORTATION ORGANIZATION OR TRANSPORTATION COMPANY OPERATING
    17  MORE THAN TWENTY BUT NOT MORE THAN THREE HUNDRED TRANSIT
    18  VEHICLES IN THE PEAK PERIOD.
    19     "CLASS 3B TRANSIT ENTITY" SHALL MEAN AND INCLUDE A LOCAL
    20  TRANSPORTATION ORGANIZATION OR TRANSPORTATION COMPANY OPERATING
    21  TWENTY OR LESS TRANSIT VEHICLES IN THE PEAK PERIOD.
    22     * * *
    23     SECTION 2.  THE INTRODUCTORY PARAGRAPH AND SUBPARAGRAPH (III)
    24  OF PARAGRAPH (2) AND PARAGRAPH (3) OF SECTION 203 OF THE ACT,
    25  ADDED JULY 10, 1980 (P.L.427, NO.101), ARE AMENDED TO READ:
    26     SECTION 203.  PROGRAM AUTHORIZATIONS.--THE DEPARTMENT IS
    27  HEREBY AUTHORIZED, WITHIN THE LIMITATIONS HEREINAFTER PROVIDED
    28  AND IS REQUIRED WHERE THE PROVISIONS OF SECTION 204 APPLY:
    29     * * *
    30     (2)  TO MAKE [PROJECT] GRANTS TO MUNICIPALITIES, COUNTIES, OR
    19850H0084B4159                  - 3 -

     1  THEIR INSTRUMENTALITIES, AND TO AGENCIES AND INSTRUMENTALITIES
     2  OF THE COMMONWEALTH TO SUPPLEMENT FEDERAL OR LOCAL OR FEDERAL
     3  AND LOCAL FUNDS FOR USE:
     4     * * *
     5     [(III)  TO ASSIST IN FINANCING PURCHASE OF SERVICE PROJECTS
     6  DESIGNED TO CONTINUE NECESSARY SERVICE TO THE PUBLIC, TO PERMIT
     7  NEEDED IMPROVEMENTS IN SERVICE WHICH ARE NOT SELF-SUPPORTING,
     8  AND TO PERMIT SERVICE WHICH MAY BE SOCIALLY DESIRABLE BUT
     9  ECONOMICALLY UNJUSTIFIED. EACH PROJECT AND PROJECT GRANT SHALL
    10  BE SUBJECT TO AN ANNUAL REVIEW AND RENEWAL. STATE FUNDING UNDER
    11  THIS SUBPARAGRAPH SHALL NOT EXCEED THREE-FOURTHS OF THE NON-
    12  FEDERAL SHARE OF PROJECT COSTS AS DEFINED BY THE DEPARTMENT
    13  WHICH CANNOT, AS DETERMINED BY THE DEPARTMENT, REASONABLY BE
    14  FINANCED FROM REVENUES. LOCAL OR PRIVATE FUNDING SHALL EQUAL AT
    15  LEAST ONE-FOURTH OF THE NON-FEDERAL SHARE OF THE PROJECT
    16  DEFICIT, AS DEFINED BY THE DEPARTMENT. THE METHODOLOGY FOR
    17  CALCULATING THE ELIGIBLE DEFICIT OF APPLICANTS UNDER THIS
    18  SUBPARAGRAPH SHALL BE DETERMINED IN ACCORDANCE WITH SECTION 204.
    19  EACH PURCHASE OF SERVICE PROJECT GRANT SHALL BE BASED ON A
    20  PROGRAM OR PLAN APPROVED BY THE DEPARTMENT AND DETERMINED BY THE
    21  DEPARTMENT TO BE IN THE PUBLIC INTEREST AND TO BE IN FURTHERANCE
    22  OF A COORDINATED MASS TRANSPORTATION PLAN FOR THE AREA. NO STATE
    23  GRANT SHALL BE MADE FOR A PARTICULAR PURCHASE OF SERVICE PROJECT
    24  THAT THE DEPARTMENT DETERMINES WILL INVOLVE UNNECESSARY AND
    25  UNFAIR COMPETITION AND NO STATE GRANT SHALL BE MADE FOR A
    26  PARTICULAR PURCHASE OF SERVICE PROJECT UNLESS THE DEPARTMENT
    27  DETERMINES AND FINDS FOR SAID PROJECT THAT:
    28     (A)  THE PURCHASE OF THE SERVICE PROJECT IS NECESSARY;
    29     (B)  THE MASS TRANSPORTATION CARRIER IS TAKING OR WILL TAKE
    30  CONTINUING ACTION TO IMPROVE THE SERVICE AND HOLD LOSSES TO A
    19850H0084B4159                  - 4 -

     1  MINIMUM.]
     2     (III)  TO ASSIST BY PROVIDING GRANTS TO CONTINUE NECESSARY
     3  SERVICE TO THE PUBLIC, TO PERMIT NEEDED IMPROVEMENTS IN SERVICE
     4  WHICH IS NOT SELF-SUPPORTING, TO PERMIT SERVICE WHICH MAY BE
     5  SOCIALLY DESIRABLE BUT ECONOMICALLY UNJUSTIFIED AND OTHERWISE
     6  FOR ANY PURPOSE IN FURTHERANCE OF URBAN COMMON CARRIER MASS
     7  TRANSPORTATION. THE METHODOLOGY FOR CALCULATING THE AMOUNT OF
     8  THE GRANT UNDER THIS SUBPARAGRAPH SHALL BE DETERMINED IN
     9  ACCORDANCE WITH SECTION 204. EACH GRANT TO A CLASS 1 TRANSIT
    10  ENTITY, TO A CLASS 2 TRANSIT ENTITY OR TO A CLASS 3 TRANSIT
    11  ENTITY MADE PURSUANT TO THIS PARAGRAPH SHALL BE MATCHED BY LOCAL
    12  OR PRIVATE FUNDING IN AN AMOUNT NOT LESS THAN ONE-THIRD OF THE
    13  TOTAL STATE GRANT MADE PURSUANT TO SECTION 204(B): PROVIDED,
    14  HOWEVER, THAT ANY GRANTS TO CLASS 3 TRANSIT ENTITIES MAY BE
    15  MATCHED BY AN AMOUNT NOT LESS THAN THE AMOUNT OF LOCAL OR
    16  PRIVATE FUNDING FURNISHED IN THE 1985-1986 FISCAL YEAR IF THE
    17  DEPARTMENT SHALL HAVE RECEIVED A CERTIFICATION FROM SUCH CLASS 3
    18  TRANSIT ENTITY THAT SUCH LOWER LEVEL OF LOCAL OR PRIVATE FUNDING
    19  IS ADEQUATE TO PREVENT SIGNIFICANT SERVICE REDUCTIONS OR
    20  PASSENGER FARE INCREASES.
    21     (3)  [TO MAKE PROJECT GRANTS TO ANY TRANSPORTATION COMPANY OR
    22  COMPANIES TO SUPPLEMENT FEDERAL, PRIVATE OR LOCAL OR FEDERAL AND
    23  PRIVATE OR LOCAL FUNDS FOR USE IN FINANCING PURCHASE OF SERVICE
    24  PROJECTS DESIGNED TO CONTINUE NECESSARY SERVICE TO THE PUBLIC,
    25  TO PERMIT NEEDED IMPROVEMENTS IN SERVICES WHICH ARE NOT SELF-
    26  SUPPORTING, AND TO PERMIT SERVICES WHICH MAY BE SOCIALLY
    27  DESIRABLE BUT ECONOMICALLY UNJUSTIFIED.] TO MAKE GRANTS TO ANY
    28  TRANSPORTATION COMPANY OR COMPANIES FOR USE IN PROVIDING
    29  NECESSARY SERVICE TO THE PUBLIC, TO PERMIT NEEDED IMPROVEMENTS
    30  IN SERVICES WHICH ARE NOT SELF-SUPPORTING, TO PERMIT SERVICES
    19850H0084B4159                  - 5 -

     1  WHICH MAY BE SOCIALLY DESIRABLE BUT ECONOMICALLY UNJUSTIFIED,
     2  AND OTHERWISE FOR ANY PURPOSE IN FURTHERANCE OF URBAN COMMON
     3  CARRIER MASS TRANSPORTATION. IN VIEW OF THE PARTICULAR
     4  SENSITIVITY OF SPECIAL INSTRUMENTALITIES AND AGENCIES OF THE
     5  COMMONWEALTH CREATED TO SERVE OR COORDINATE THE LOCAL
     6  TRANSPORTATION NEEDS OF SUBSTANTIAL METROPOLITAN AREAS, NO
     7  [PROJECT FOR USE] GRANT MONEYS MAY BE USED EXCLUSIVELY OR
     8  PRINCIPALLY IN THE LOCAL SERVICE AREA OF ANY SUCH AGENCY OR
     9  INSTRUMENTALITY IN WHICH A CITY OR COUNTY OF THE FIRST OR SECOND
    10  CLASS HAS MEMBERSHIP, [SHALL RECEIVE A PROJECT GRANT] EXCEPT IN
    11  ACCORDANCE WITH A SYSTEM OF PRIORITIES AGREED UPON BY THE
    12  DEPARTMENT AND SUCH AGENCY OR INSTRUMENTALITY. IN THE CASE OF [A
    13  PROJECT GRANT FOR A PROJECT TO BE OPERATED] A GRANT WHERE THE
    14  MONEYS GRANTED WILL BE USED FOR AN ACTIVITY TO BE CONDUCTED
    15  EXCLUSIVELY OR PRINCIPALLY WITHIN THE LOCAL SERVICE AREAS OF
    16  SUCH AGENCY OR INSTRUMENTALITY NO [PROJECT GRANT SHALL BE MADE]
    17  GRANT MONEYS MAY BE USED EXCEPT IN ACCORDANCE WITH AGREEMENTS BY
    18  THE DEPARTMENT AND SUCH AGENCY OR INSTRUMENTALITY WITH RESPECT
    19  TO SUCH USE. IN THE CASE OF A [PROJECT] GRANT NOT FALLING WITHIN
    20  THE SCOPE OF THE PRECEDING SENTENCE BUT [COVERING USE] WHERE
    21  MONEYS GRANTED WILL BE USED BOTH WITHIN AND WITHOUT THE LOCAL
    22  SERVICE AREA OF SUCH AGENCY OR INSTRUMENTALITY, THE [PROJECT]
    23  GRANT SHALL REQUIRE THAT THE ROUTES, SCHEDULES, AND FARES
    24  APPLICABLE ONLY WITHIN SUCH SERVICE AREAS SHALL BE THOSE
    25  MUTUALLY AGREED UPON BY THE DEPARTMENT AND SUCH AGENCY OR
    26  INSTRUMENTALITY. NO AGREEMENT REFERRED TO IN THIS PARAGRAPH
    27  SHALL IMPAIR, SUSPEND, REDUCE, ENLARGE OR EXTEND OR AFFECT IN
    28  ANY MANNER THE POWERS OF THE PENNSYLVANIA PUBLIC UTILITY
    29  COMMISSION OR THE INTERSTATE COMMERCE COMMISSION OTHERWISE
    30  APPLICABLE BY LAW. [STATE FUNDING UNDER THIS PARAGRAPH SHALL NOT
    19850H0084B4159                  - 6 -

     1  EXCEED THREE-FOURTHS OF THE NON-FEDERAL SHARE OF PROJECT COSTS
     2  AS DEFINED BY THE DEPARTMENT WHICH CANNOT, AS DETERMINED BY THE
     3  DEPARTMENT, REASONABLY BE FINANCED FROM REVENUES. LOCAL OR
     4  PRIVATE FUNDING SHALL EQUAL AT LEAST ONE-FOURTH OF THE NON-
     5  FEDERAL SHARE OF THE PROJECT DEFICIT, AS DEFINED BY THE
     6  DEPARTMENT.] EACH GRANT TO A CLASS 1 TRANSIT ENTITY, TO A CLASS
     7  2 TRANSIT ENTITY OR TO A CLASS 3 TRANSIT ENTITY MADE PURSUANT TO
     8  THIS PARAGRAPH SHALL BE MATCHED BY LOCAL OR PRIVATE FUNDING IN
     9  AN AMOUNT NOT LESS THAN ONE-THIRD OF THE TOTAL STATE GRANT MADE
    10  PURSUANT TO SECTION 204(B): PROVIDED, HOWEVER, THAT ANY GRANTS
    11  TO CLASS 3 TRANSIT ENTITIES MAY BE MATCHED BY AN AMOUNT NOT LESS
    12  THAN THE AMOUNT OF LOCAL OR PRIVATE FUNDING FURNISHED IN THE
    13  1985-1986 FISCAL YEAR IF THE DEPARTMENT SHALL HAVE RECEIVED A
    14  CERTIFICATION FROM SUCH CLASS 3 TRANSIT ENTITY THAT SUCH LOWER
    15  LEVEL OF LOCAL OR PRIVATE FUNDING IS ADEQUATE TO PREVENT
    16  SIGNIFICANT SERVICE REDUCTIONS OR PASSENGER FARE INCREASES. THE
    17  METHODOLOGY FOR CALCULATING THE ELIGIBLE DEFICIT OF APPLICANTS
    18  UNDER THIS PARAGRAPH SHALL BE DETERMINED IN ACCORDANCE WITH
    19  SECTION 204. EACH PURCHASE OF SERVICE PROJECT GRANT SHALL BE
    20  BASED UPON A PROGRAM OR PLAN APPROVED BY THE DEPARTMENT AND
    21  DETERMINED BY THE DEPARTMENT TO BE IN THE PUBLIC INTEREST, TO BE
    22  IN FURTHERANCE OF A COORDINATED MASS TRANSPORTATION PLAN FOR THE
    23  AREA, AND NOT TO INVOLVE UNNECESSARY AND UNFAIR COMPETITION. NO
    24  STATE GRANT SHALL BE MADE FOR A PARTICULAR PURCHASE OF SERVICE
    25  PROJECT UNLESS THE DEPARTMENT DETERMINES AND FINDS FOR SAID
    26  PROJECT THAT:
    27     (I)  THE PURCHASE OF SERVICE PROJECT IS NECESSARY IN THE
    28  PUBLIC INTEREST; AND
    29     (II)  THE MASS TRANSPORTATION CARRIER IS TAKING OR WILL TAKE
    30  CONTINUING ACTION TO IMPROVE THE SERVICE AND HOLD LOSSES TO A
    19850H0084B4159                  - 7 -

     1  MINIMUM.
     2     * * *
     3     SECTION 3.  SECTION 204 OF THE ACT, AMENDED MAY 1, 1984
     4  (P.L.226, NO.49), IS AMENDED TO READ:
     5     SECTION 204.  ANNUAL APPROPRIATION, COMPUTATION OF SUBSIDY.--
     6  (A)  THE COMMONWEALTH SHALL ANNUALLY DETERMINE THE LEVEL OF
     7  APPROPRIATION FOR URBAN COMMON CARRIER MASS TRANSPORTATION
     8  ASSISTANCE, USING THE STANDARDS CONTAINED IN THIS SECTION, TO
     9  SUFFICIENTLY FUND AND TO MAKE FULLY OPERATIVE SECTION
    10  203(2)(III) AND (3).
    11     [(B)  THE GENERAL ASSEMBLY SHALL ANNUALLY APPROPRIATE TO THE
    12  DEPARTMENT FOR DISTRIBUTION AN AMOUNT BASED UPON THE INDIVIDUAL
    13  PROJECTED SUBSIDIES OF THE LOCAL TRANSPORTATION ORGANIZATIONS OR
    14  TRANSPORTATION COMPANIES PARTICIPATING IN THE PROGRAM. EACH
    15  LOCAL TRANSPORTATION ORGANIZATION AND TRANSPORTATION COMPANY
    16  SHALL BE ENTITLED TO RECEIVE A STATE SUBSIDY OF AT LEAST TWO-
    17  THIRDS BUT NOT MORE THAN THREE-QUARTERS OF ITS CONSTRAINED
    18  DEFICIT: PROVIDED, HOWEVER, THAT IF AMOUNT OF MONEYS ACTUALLY
    19  APPROPRIATED BY THE GENERAL ASSEMBLY IS GREATER OR LESSER THAN
    20  THE LUMP SUM APPROPRIATION REQUEST, THE INDIVIDUAL CALCULATED
    21  GRANTS SHALL BE PRORATED AMONG ALL RECIPIENTS IN ACCORDANCE WITH
    22  THE PROVISIONS OF THIS ARTICLE USING A RATIO DETERMINED BY
    23  APPLYING THE ACTUAL LUMP SUM APPROPRIATION TO THE LUMP SUM
    24  APPROPRIATION REQUEST.
    25     (C)  THE CONSTRAINED DEFICIT SHALL BE AN AMOUNT EQUAL TO
    26  ELIGIBLE OPERATING COSTS REDUCED BY ASSUMED REVENUES AND FEDERAL
    27  OPERATING SUBSIDIES. FOR PURPOSES OF THIS SUBSECTION:
    28     (1)  ELIGIBLE OPERATING COSTS FOR THE BUDGET YEAR SHALL NOT
    29  EXCEED THE PRIOR YEAR'S OPERATING COSTS FOR THE SAME LEVEL OF
    30  SERVICE INCREASED BY A PERCENTAGE EQUAL TO THE PERCENTAGE
    19850H0084B4159                  - 8 -

     1  INCREASE IN OPERATING COSTS FOR ALL LOCAL TRANSPORTATION
     2  ORGANIZATIONS AND TRANSPORTATION COMPANIES FOR THE MOST RECENTLY
     3  COMPLETED STATE FISCAL YEAR AS COMPARED TO THE FISCAL YEAR
     4  IMMEDIATELY PRECEDING SUCH YEAR PLUS FIFTEEN PERCENT OF SUCH
     5  INCREASE.
     6     (2)  (I)  ASSUMED REVENUES SHALL BE A PERCENTAGE OF ELIGIBLE
     7  OPERATING COSTS AS DETERMINED BY REFERENCE TO THE FOLLOWING
     8  TABLE:
     9         FISCAL YEAR         (A)         (B)         (C)
    10           1980-81           48%         38%
    11           1981-82           48%         38%
    12           1983-84
    13           AND THEREAFTER    48%         46%         34%
    14     (II)  COLUMN (A) IS TO BE USED FOR LOCAL TRANSPORTATION
    15  ORGANIZATIONS OR TRANSPORTATION COMPANIES OPERATING MORE THAN
    16  ONE THOUSAND TRANSIT VEHICLES IN THE PEAK PERIOD, COLUMN (B) IS
    17  TO BE USED FOR TRANSPORTATION ORGANIZATIONS AND COMPANIES
    18  OPERATING BETWEEN TWENTY-ONE AND NINE HUNDRED AND NINETY-NINE
    19  VEHICLES IN THE PEAK PERIOD AND COLUMN (C) IS TO BE USED FOR
    20  LOCAL TRANSPORTATION ORGANIZATIONS OR TRANSPORTATION COMPANIES
    21  OPERATING TWENTY OR FEWER TRANSIT VEHICLES IN THE PEAK PERIOD.
    22     (III)  IN ANY CASE WHERE A LOCAL TRANSPORTATION ORGANIZATION
    23  OR TRANSPORTATION COMPANY INCREASES OR DECREASES THE NUMBER OF
    24  TRANSIT VEHICLES OPERATING DURING THE PEAK PERIOD SO AS TO MOVE
    25  TO OR FROM COLUMN (A), (B) OR (C), THE DEPARTMENT MAY MAKE
    26  APPROPRIATE ADJUSTMENTS REGARDING ASSUMED REVENUES DURING A
    27  REASONABLE PERIOD FOLLOWING SUCH INCREASE OR DECREASE.
    28     (3)  FEDERAL OPERATING SUBSIDIES SHALL MEAN THE TOTAL
    29  OPERATING ASSISTANCE FUNDS IN THE BUDGET YEAR WHICH THE ELIGIBLE
    30  GRANTEE ACTUALLY RECEIVES UNDER THE FEDERAL URBAN MASS
    19850H0084B4159                  - 9 -

     1  TRANSPORTATION ACT OF 1964, PUBLIC LAW 88-365 (49 U.S.C. § 1601,
     2  ET SEQ.) OR ANY OTHER FEDERAL LAW.
     3     (D)  THE BASIC SUBSIDY FOR WHICH EACH LOCAL TRANSPORTATION
     4  ORGANIZATION OR TRANSPORTATION COMPANY SHALL BE ENTITLED SHALL
     5  BE EQUAL TO SIXTY-SIX AND TWO-THIRDS PERCENT OF ITS CONSTRAINED
     6  DEFICIT.
     7     (E)  EACH LOCAL TRANSPORTATION ORGANIZATION OR TRANSPORTATION
     8  COMPANY SHALL RECEIVE, IN ADDITION TO THE BASIC SUBSIDY, AN
     9  INCENTIVE GRANT SUBSIDY OF UP TO EIGHT AND ONE-THIRD PERCENT OF
    10  ITS CONSTRAINED DEFICIT BASED UPON A FINDING THAT THE LOCAL
    11  TRANSPORTATION ORGANIZATION OR TRANSPORTATION COMPANY FOR THE
    12  MOST RECENTLY COMPLETED STATE FISCAL YEAR AS COMPARED TO THE
    13  FISCAL YEAR IMMEDIATELY PRECEDING SUCH YEAR HAS MET OR EXCEEDED
    14  THE FOLLOWING PERFORMANCE FACTORS. EACH FACTOR WHICH A LOCAL
    15  TRANSPORTATION ORGANIZATION OR TRANSPORTATION COMPANY MEETS
    16  SHALL RESULT IN AN ADDITIONAL INCREASE IN STATE FUNDING OF ITS
    17  CONSTRAINED DEFICIT. THE FACTORS TO BE CONSIDERED BY THE
    18  DEPARTMENT IN AWARDING INCENTIVE GRANT SUBSIDIES ARE AS FOLLOWS:
    19     (1)  NO DECREASE IN THE SYSTEM'S REVENUE/COST RATIO FROM THE
    20  PREVIOUS FISCAL YEAR.
    21     (2)  HIGHER RIDERSHIP PER VEHICLE HOUR IN THE SYSTEM THAN IN
    22  THE PREVIOUS FISCAL YEAR.
    23     (3)  HIGHER OPERATING REVENUE PER VEHICLE HOUR IN THE SYSTEM
    24  THAN IN PREVIOUS FISCAL YEAR.
    25     (4)  LOWER OPERATING COSTS PER VEHICLE HOUR IN THE SYSTEM
    26  (ADJUSTED FOR INFLATION) THAN IN THE PREVIOUS FISCAL YEAR.
    27     (F)  NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, NO
    28  LOCAL TRANSPORTATION ORGANIZATION OR TRANSPORTATION COMPANY
    29  SHALL BE ENTITLED TO RECEIVE AN AMOUNT WITH RESPECT TO ANY
    30  FISCAL YEAR GREATER THAN SEVENTY-FIVE PERCENT OF ITS ACTUAL
    19850H0084B4159                 - 10 -

     1  OPERATING COSTS LESS ACTUAL REVENUES, EXCLUDING EXCESS REVENUES
     2  DETERMINED IN ACCORDANCE WITH SUBSECTION (G), AND FEDERAL
     3  SUBSIDIES FOR THAT FISCAL YEAR.
     4     (G)  A LOCAL TRANSPORTATION ORGANIZATION OR TRANSPORTATION
     5  COMPANY MAY UTILIZE REVENUES WHICH THE DEPARTMENT DETERMINES TO
     6  BE IN EXCESS OF ASSUMED REVENUES FOR ANY PURPOSE IN FURTHERANCE
     7  OF URBAN COMMON CARRIER MASS TRANSPORTATION IN ITS SERVICE AREAS
     8  EXCEPT THAT SUCH EXCESS REVENUES MAY NOT BE USED TO REDUCE LOCAL
     9  MATCHING FUNDS FOR ANY STATE OPERATING GRANT. ALL EXCESS
    10  REVENUES EXCEEDING TWELVE PERCENT OF ACTUAL REVENUES SHALL BE
    11  USED TO REDUCE OPERATING DEFICITS FOR GRANT DETERMINATIONS BY
    12  THE DEPARTMENT. EXPENSES WHICH ARE INELIGIBLE FOR REIMBURSEMENT
    13  BY THE DEPARTMENT UNDER SECTIONS 203(2)(III) AND 204, INCLUDING
    14  DEBT SERVICE, RENEWAL AND REPLACEMENT AND VEHICLE OVERHAUL, MAY
    15  BE FUNDED BY TRANSPORTATION COMPANIES OR LOCAL TRANSPORTATION
    16  ORGANIZATIONS THROUGH EXCESS REVENUES.
    17     (H)  A LOCAL TRANSPORTATION ORGANIZATION OR TRANSPORTATION
    18  COMPANY MAY AT ITS OPTION SUBMIT AN APPLICATION FOR PROJECT
    19  GRANTS COVERING MODES OR OPERATING SUBSIDIARIES ON AN INDIVIDUAL
    20  BASIS OR ON A COLLECTIVE BASIS.
    21     (I)  EACH RECIPIENT OF FUNDS UNDER THIS SECTION SHALL SUBMIT
    22  TO THE DEPARTMENT BETWEEN AUGUST 15 AND SEPTEMBER 15 OF EACH
    23  CALENDAR YEAR A PROPOSED BUDGET FOR THE BUDGET YEAR BEGINNING
    24  JULY 1 TOGETHER WITH BUDGET PROJECTIONS FOR FOUR SUCCEEDING
    25  BUDGET YEARS. BUDGET PROPOSALS, BASED UPON INFORMATION SUBMITTED
    26  BY INDIVIDUAL RECIPIENTS, SHALL APPEAR AS LINE ITEMS IN THE
    27  DEPARTMENT'S BUDGET REQUEST, SUBJECT TO THE PROVISIONS OF
    28  SUBSECTION (B): PROVIDED, HOWEVER, THAT THE DEPARTMENT BUDGET
    29  REQUEST FOR FUNDS UNDER THIS SECTION SHALL BE MADE AS A LUMP SUM
    30  APPROPRIATION REQUEST WHICH SHALL BE THE TOTAL OF SUCH LINE
    19850H0084B4159                 - 11 -

     1  ITEMS.
     2     (J)  LOCAL TRANSPORTATION ORGANIZATIONS AND TRANSPORTATION
     3  COMPANIES SHALL BE PREPARED TO APPEAR INDIVIDUALLY BEFORE THE
     4  APPROPRIATION COMMITTEES OF THE SENATE AND THE HOUSE OF
     5  REPRESENTATIVES TO JUSTIFY BUDGET REQUESTS.]
     6     (B)  THE GENERAL ASSEMBLY SHALL ANNUALLY MAKE AN
     7  APPROPRIATION TO THE DEPARTMENT FOR DISTRIBUTION AS GRANTS TO
     8  LOCAL TRANSPORTATION ORGANIZATIONS AND TRANSPORTATION COMPANIES.
     9  THE TOTAL AMOUNT OF MONEYS APPROPRIATED SHALL BE DISTRIBUTED BY
    10  THE DEPARTMENT AS GRANTS TO LOCAL TRANSPORTATION ORGANIZATIONS
    11  AND TRANSPORTATION COMPANIES IN ACCORDANCE WITH THE PROVISIONS
    12  OF THIS SECTION.
    13     (C)  THE DEPARTMENT SHALL DISTRIBUTE THE TOTAL AMOUNT
    14  APPROPRIATED UNDER SUBSECTION (B) IN THE FOLLOWING MANNER:
    15     (1)  THE DEPARTMENT SHALL CALCULATE THE CLASS 1 PERCENTAGE,
    16  THE CLASS 2 PERCENTAGE AND THE CLASS 3 PERCENTAGE. IN MAKING ITS
    17  CALCULATIONS, THE DEPARTMENT SHALL CALCULATE EACH CATEGORY
    18  (HISTORICAL PERCENTAGE, REVENUE PERCENTAGE AND OPERATING REVENUE
    19  PERCENTAGE) TO FOUR DECIMAL PLACES AND THEN ROUND THE FINAL
    20  DETERMINATION OF THE CLASS 1 PERCENTAGE, THE CLASS 2 PERCENTAGE
    21  AND THE CLASS 3 PERCENTAGE TO ONE DECIMAL PLACE. ONCE CALCULATED
    22  FOR THE 1986-1987 FISCAL YEAR, THESE PERCENTAGES SHALL NOT VARY
    23  FROM YEAR TO YEAR.
    24     (2)  THE DEPARTMENT SHALL THEN CALCULATE THE CLASS 1 TRANSIT
    25  ENTITY SHARE, THE CLASS 2 TRANSIT ENTITY SHARE AND THE CLASS 3
    26  TRANSIT ENTITY SHARE FOR THAT FISCAL YEAR. FROM THE CLASS 3
    27  TRANSIT ENTITY SHARE, THE DEPARTMENT SHALL CALCULATE THE CLASS
    28  3A TRANSIT ENTITY SHARE AND THE CLASS 3B TRANSIT ENTITY SHARE.
    29     (3)  THE DEPARTMENT SHALL THEN CALCULATE THE AMOUNT OF GRANT
    30  DUE TO EACH LOCAL TRANSPORTATION ORGANIZATION AND TRANSPORTATION
    19850H0084B4159                 - 12 -

     1  COMPANY AS FOLLOWS:
     2     (I)  EACH CLASS 1 TRANSIT ENTITY SHALL RECEIVE A PRO RATA
     3  SHARE OF THE CLASS 1 TRANSIT ENTITY SHARE. IF THERE IS ONLY ONE
     4  CLASS 1 TRANSIT ENTITY, IT SHALL RECEIVE THE ENTIRE CLASS 1
     5  TRANSIT ENTITY SHARE.
     6     (II)  EACH CLASS 2 TRANSIT ENTITY SHALL RECEIVE A PRO RATA
     7  SHARE OF THE CLASS 2 TRANSIT ENTITY SHARE. IF THERE IS ONLY ONE
     8  CLASS 2 TRANSIT ENTITY, IT SHALL RECEIVE THE ENTIRE CLASS 2
     9  TRANSIT ENTITY SHARE.
    10     (III)  EACH CLASS 3A TRANSIT ENTITY SHALL RECEIVE A PORTION
    11  OF THE CLASS 3A TRANSIT ENTITY SHARE CALCULATED AS FOLLOWS:
    12     (A)  FROM THE CLASS 3A TRANSIT ENTITY SHARE, EACH CLASS 3A
    13  TRANSIT ENTITY SHALL FIRST RECEIVE AN AMOUNT EQUAL TO ONE
    14  HUNDRED PERCENT OF ITS ADJUSTED BASE GRANT.
    15     (B)  WITH RESPECT TO ANY PORTION OF THE CLASS 3A TRANSIT
    16  ENTITY SHARE REMAINING AFTER EACH CLASS 3A TRANSIT ENTITY
    17  RECEIVES AN AMOUNT EQUAL TO ONE HUNDRED PERCENT OF ITS ADJUSTED
    18  BASE GRANT:
    19     (I)  FIFTY PERCENT OF SUCH EXCESS SHALL BE DISTRIBUTED TO
    20  CLASS 3A TRANSIT ENTITIES BASED UPON THE PERCENTAGE OF ALL
    21  ADJUSTED BASE GRANTS GIVEN TO CLASS 3A TRANSIT ENTITIES WHICH A
    22  PARTICULAR CLASS 3A TRANSIT ENTITY RECEIVED.
    23     (II)  TWENTY-FIVE PERCENT OF SUCH EXCESS SHALL BE DISTRIBUTED
    24  TO CLASS 3A TRANSIT ENTITIES BASED UPON EACH TRANSIT ENTITY'S
    25  CLASS 3A VEHICLE MILE PERCENTAGE. THE ACTUAL AMOUNT RECEIVED BY
    26  EACH CLASS 3A TRANSIT ENTITY UNDER THIS CLAUSE SHALL BE
    27  DETERMINED BY MULTIPLYING A PARTICULAR CLASS 3A TRANSIT ENTITY'S
    28  CLASS 3A VEHICLE MILE PERCENTAGE TIMES TWENTY-FIVE PERCENT OF
    29  SUCH EXCESS OF THE CLASS 3A TRANSIT ENTITY SHARE.
    30     (III)  TWENTY-FIVE PERCENT OF SUCH EXCESS SHALL BE
    19850H0084B4159                 - 13 -

     1  DISTRIBUTED TO CLASS 3A TRANSIT ENTITIES BASED UPON EACH CLASS
     2  3A TRANSIT ENTITY'S CLASS 3A OPERATING REVENUE PERCENTAGE. THE
     3  ACTUAL AMOUNT RECEIVED BY EACH CLASS 3A TRANSIT ENTITY UNDER
     4  THIS CLAUSE SHALL BE DETERMINED BY MULTIPLYING A PARTICULAR
     5  CLASS 3A TRANSIT ENTITY'S CLASS 3A OPERATING REVENUE PERCENTAGE
     6  TIMES TWENTY-FIVE PERCENT OF SUCH EXCESS OF THE CLASS 3A TRANSIT
     7  ENTITY SHARE.
     8     (IV)  EACH CLASS 3B TRANSIT ENTITY SHALL RECEIVE A PORTION OF
     9  THE CLASS 3B TRANSIT ENTITY SHARE CALCULATED AS FOLLOWS:
    10     (A)  FROM THE CLASS 3B TRANSIT ENTITY SHARE, EACH CLASS 3B
    11  TRANSIT ENTITY SHALL FIRST RECEIVE AN AMOUNT EQUAL TO ONE
    12  HUNDRED PERCENT OF ITS ADJUSTED BASE GRANT.
    13     (B)  WITH RESPECT TO ANY PORTION OF THE CLASS 3B TRANSIT
    14  ENTITY SHARE REMAINING AFTER EACH CLASS 3B TRANSIT ENTITY
    15  RECEIVES AN AMOUNT EQUAL TO ONE HUNDRED PERCENT OF ITS ADJUSTED
    16  BASE GRANT:
    17     (I)  FIFTY PERCENT OF SUCH EXCESS SHALL BE DISTRIBUTED TO
    18  CLASS 3B TRANSIT ENTITIES BASED UPON THE PERCENTAGE OF ALL
    19  ADJUSTED BASE GRANTS GIVEN TO CLASS 3B TRANSIT ENTITIES WHICH A
    20  PARTICULAR CLASS 3B TRANSIT ENTITY RECEIVED.
    21     (II)  TWENTY-FIVE PERCENT OF SUCH EXCESS SHALL BE DISTRIBUTED
    22  TO CLASS 3B TRANSIT ENTITIES BASED UPON EACH TRANSIT ENTITY'S
    23  CLASS 3B VEHICLE MILE PERCENTAGE. THE ACTUAL AMOUNT RECEIVED BY
    24  EACH CLASS 3B TRANSIT ENTITY UNDER THIS CLAUSE SHALL BE
    25  DETERMINED BY MULTIPLYING A PARTICULAR CLASS 3B TRANSIT ENTITY'S
    26  CLASS 3B VEHICLE MILE PERCENTAGE TIMES TWENTY-FIVE PERCENT OF
    27  SUCH EXCESS OF THE CLASS 3B TRANSIT ENTITY SHARE.
    28     (III)  TWENTY-FIVE PERCENT OF SUCH EXCESS SHALL BE
    29  DISTRIBUTED TO CLASS 3B TRANSIT ENTITIES BASED UPON EACH CLASS
    30  3B TRANSIT ENTITY'S CLASS 3B OPERATING REVENUE PERCENTAGE. THE
    19850H0084B4159                 - 14 -

     1  ACTUAL AMOUNT RECEIVED BY EACH CLASS 3B TRANSIT ENTITY UNDER
     2  THIS CLAUSE SHALL BE DETERMINED BY MULTIPLYING A PARTICULAR
     3  CLASS 3B TRANSIT ENTITY'S CLASS 3B OPERATING REVENUE PERCENTAGE
     4  TIMES TWENTY-FIVE PERCENT OF SUCH EXCESS OF THE CLASS 3B TRANSIT
     5  ENTITY SHARE.
     6     (V)  IN ANY CASE WHERE A LOCAL TRANSPORTATION ORGANIZATION OR
     7  TRANSPORTATION COMPANY INCREASES OR DECREASES THE NUMBER OF
     8  TRANSIT VEHICLES OPERATING DURING THE PEAK PERIOD SO AS TO MOVE
     9  FROM BEING A CLASS 3B TRANSIT ENTITY TO BEING A CLASS 3A TRANSIT
    10  ENTITY, THE DEPARTMENT SHALL MAKE APPROPRIATE ADJUSTMENTS
    11  REGARDING THE AMOUNT OF GRANT WHICH SUCH LOCAL TRANSPORTATION
    12  ORGANIZATION OR TRANSPORTATION COMPANY SHALL RECEIVE.
    13     (D)  ON OR BEFORE APRIL 1 OF EACH CALENDAR YEAR, THE
    14  DEPARTMENT SHALL PUBLISH THE PENNSYLVANIA MASS TRANSIT REPORT
    15  WHICH SHALL INCLUDE A SUMMARY OF FINANCIAL AND OPERATING DATA
    16  CONCERNING LOCAL TRANSPORTATION ORGANIZATIONS AND TRANSPORTATION
    17  COMPANIES IN SUBSTANTIALLY THE FORM AND CONTAINING AT A MINIMUM
    18  SUBSTANTIALLY THE SAME FINANCIAL AND STATISTICAL DATA AS HAS
    19  BEEN PUBLISHED BY THE DEPARTMENT IN SUCH A PUBLICATION SINCE THE
    20  1973-1974 FISCAL YEAR.
    21     (E)  SHOULD A NEW LOCAL TRANSPORTATION ORGANIZATION OR
    22  TRANSPORTATION COMPANY BE ESTABLISHED, THE DEPARTMENT SHALL MAKE
    23  AN APPROPRIATE DETERMINATION AS TO LEVEL OF GRANT TO WHICH SUCH
    24  LOCAL TRANSPORTATION ORGANIZATION OR TRANSPORTATION COMPANY
    25  SHALL BE ENTITLED. SUCH DETERMINATION SHALL INCLUDE, BUT SHALL
    26  NOT BE LIMITED TO, A DETERMINATION AS TO AN APPROPRIATE ADJUSTED
    27  BASE GRANT FOR THAT LOCAL TRANSPORTATION ORGANIZATION OR
    28  TRANSPORTATION COMPANY.
    29     (F)  IN THE EVENT THAT SIGNIFICANT CHANGES OCCUR IN LEVELS OF
    30  FEDERAL FUNDING AMONG CLASS 1 TRANSIT ENTITIES, CLASS 2 TRANSIT
    19850H0084B4159                 - 15 -

     1  ENTITIES AND CLASS 3 TRANSIT ENTITIES, THE GENERAL ASSEMBLY
     2  SHALL IMMEDIATELY REVIEW THE FUNDING MECHANISM SET FORTH IN THIS
     3  SECTION AND MAKE ANY CHANGES WHICH IN THE JUDGMENT OF THE
     4  GENERAL ASSEMBLY ARE NECESSARY AND APPROPRIATE IN LIGHT OF THE
     5  CHANGED CIRCUMSTANCES.
     6     (G)  AS USED IN THIS SECTION THE FOLLOWING WORDS AND PHRASES
     7  SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SUBSECTION:
     8     "ADJUSTED BASE GRANT" SHALL MEAN THE STATE SUBSIDY A CLASS 3
     9  TRANSIT ENTITY RECEIVED DURING THE 1985-1986 FISCAL YEAR
    10  ADJUSTED TO REFLECT THE AMOUNT OF STATE SUBSIDY CERTAIN CLASS 3
    11  TRANSIT ENTITIES WOULD HAVE RECEIVED IN THAT FISCAL YEAR BUT FOR
    12  RECEIPT OF A ONE-TIME FEDERAL GRANT DURING THE 1985-1986 FISCAL
    13  YEAR AND ALSO ADJUSTED FOR OTHER FACTORS WHICH, IN THE JUDGMENT
    14  OF THE DEPARTMENT, CAUSED SIGNIFICANT DECREASES IN THE AMOUNT OF
    15  THE STATE SUBSIDY TO SUCH CLASS 3 TRANSIT ENTITY DURING THE
    16  1985-1986 FISCAL YEAR.
    17     "CLASS 1 PERCENTAGE" SHALL BE THE SUM OF FIFTY PERCENT OF THE
    18  HISTORICAL PERCENTAGE FOR CLASS 1 TRANSIT ENTITIES; PLUS FIFTY
    19  PERCENT OF THE REVENUE PASSENGER PERCENTAGE FOR CLASS 1 TRANSIT
    20  ENTITIES.
    21     "CLASS 2 PERCENTAGE" SHALL BE THE SUM OF EIGHTY PERCENT OF
    22  THE HISTORICAL PERCENTAGE FOR CLASS 2 TRANSIT ENTITIES; PLUS TEN
    23  PERCENT OF THE REVENUE PASSENGER PERCENTAGE FOR CLASS 2 TRANSIT
    24  ENTITIES; PLUS TEN PERCENT OF THE OPERATING REVENUE PERCENTAGE
    25  FOR CLASS 2 TRANSIT ENTITIES FOR THE 1984-1985 FISCAL YEAR AS
    26  REPORTED IN THE PENNSYLVANIA MASS TRANSIT STATISTICAL REPORT FOR
    27  THE 1984-1985 FISCAL YEAR.
    28     "CLASS 3 PERCENTAGE" SHALL BE EQUAL TO ONE HUNDRED PERCENT
    29  MINUS THE SUM OF THE CLASS 1 PERCENTAGE PLUS THE CLASS 2
    30  PERCENTAGE.
    19850H0084B4159                 - 16 -

     1     "CLASS 1 TRANSIT ENTITY SHARE" SHALL BE THE PRODUCT OF THE
     2  CLASS 1 PERCENTAGE TIMES THE TOTAL AMOUNT APPROPRIATED UNDER
     3  SUBSECTION (B) IN A PARTICULAR FISCAL YEAR.
     4     "CLASS 2 TRANSIT ENTITY SHARE" SHALL BE THE PRODUCT OF THE
     5  CLASS 2 PERCENTAGE TIMES THE TOTAL AMOUNT APPROPRIATED UNDER
     6  SUBSECTION (B) IN A PARTICULAR FISCAL YEAR.
     7     "CLASS 3 TRANSIT ENTITY SHARE" SHALL BE THE PRODUCT OF THE
     8  CLASS 3 PERCENTAGE TIMES THE TOTAL AMOUNT APPROPRIATED UNDER
     9  SUBSECTION (B) IN A PARTICULAR FISCAL YEAR.
    10     "CLASS 3A TRANSIT ENTITY SHARE" SHALL BE SIXTY AND SIXTY-NINE
    11  ONE HUNDREDTHS PERCENT OF THE TOTAL CLASS 3 TRANSIT ENTITY
    12  SHARE.
    13     "CLASS 3B TRANSIT ENTITY SHARE" SHALL BE THIRTY-NINE AND
    14  THIRTY-ONE ONE HUNDREDTHS PERCENT OF THE TOTAL CLASS 3 TRANSIT
    15  ENTITY SHARE.
    16     "HISTORICAL PERCENTAGE" SHALL MEAN THE AVERAGE PERCENTAGE OF
    17  THE TOTAL AMOUNT OF STATE SUBSIDIES RECEIVED BY A LOCAL
    18  TRANSPORTATION ORGANIZATION OR TRANSPORTATION COMPANY FOR THE
    19  1982-1983, 1983-1984, 1984-1985 AND 1985-1986 FISCAL YEARS. FOR
    20  FISCAL YEARS 1982-1983, 1983-1984 AND 1984-1985, THE PERCENTAGE
    21  OF STATE SUBSIDIES RECEIVED BY A LOCAL TRANSPORTATION
    22  ORGANIZATION OR TRANSPORTATION COMPANY SHALL BE DETERMINED FROM
    23  THE TABLE LABELED "GOVERNMENT SUBSIDIES" CONTAINED IN THE
    24  PENNSYLVANIA MASS TRANSIT STATISTICAL REPORT FOR THE APPLICABLE
    25  FISCAL YEAR. FOR THE 1982-1983 FISCAL YEAR, THE PERCENTAGE OF
    26  STATE SUBSIDIES RECEIVED SHALL BE DETERMINED FROM THE 1983-1984
    27  PENNSYLVANIA MASS TRANSIT STATISTICAL REPORT. FOR THE 1983-1984
    28  AND THE 1984-1985 FISCAL YEARS, THE PERCENTAGE OF STATE
    29  SUBSIDIES RECEIVED SHALL BE DETERMINED FROM THE 1984-1985
    30  PENNSYLVANIA MASS TRANSIT STATISTICAL REPORT. THE PERCENTAGE OF
    19850H0084B4159                 - 17 -

     1  STATE SUBSIDIES RECEIVED SHALL BE OBTAINED BY DIVIDING THE
     2  AMOUNT OF STATE SUBSIDIES RECEIVED IN THAT FISCAL YEAR BY AN
     3  INDIVIDUAL LOCAL TRANSPORTATION ORGANIZATION OR TRANSPORTATION
     4  COMPANY BY THE TOTAL AMOUNT OF STATE SUBSIDIES RECEIVED IN THAT
     5  FISCAL YEAR BY ALL LOCAL TRANSPORTATION ORGANIZATIONS AND
     6  TRANSPORTATION COMPANIES. FOR THE 1985-1986 FISCAL YEAR, THE
     7  PERCENTAGE OF STATE SUBSIDIES RECEIVED BY A LOCAL TRANSPORTATION
     8  ORGANIZATION OR TRANSPORTATION COMPANY SHALL BE DETERMINED BASED
     9  UPON THE TOTAL AMOUNT OF STATE SUBSIDIES AWARDED TO A LOCAL
    10  TRANSPORTATION ORGANIZATION OR TRANSPORTATION COMPANY DURING THE
    11  1985-1986 FISCAL YEAR BY DIVIDING SUCH AMOUNT BY THE TOTAL
    12  AMOUNT OF STATE SUBSIDIES AWARDED TO ALL LOCAL TRANSPORTATION
    13  ORGANIZATIONS AND TRANSPORTATION COMPANIES IN THE 1985-1986
    14  FISCAL YEAR.
    15     "OPERATING REVENUE" SHALL MEAN THE TOTAL REVENUE EARNED BY A
    16  LOCAL TRANSPORTATION ORGANIZATION OR TRANSPORTATION COMPANY
    17  THROUGH ITS TRANSIT OPERATIONS, INCLUDING BUT NOT LIMITED TO,
    18  PASSENGER REVENUE, SENIOR CITIZEN GRANT, CHARTER REVENUE, SCHOOL
    19  CONTRACT REVENUE, ADVERTISING AND OTHER REVENUE AS REPORTED FOR
    20  THE MOST RECENT YEAR IN THE MOST RECENTLY PUBLISHED PENNSYLVANIA
    21  MASS TRANSIT STATISTICAL REPORT.
    22     "OPERATING REVENUE PERCENTAGE" SHALL MEAN THE PERCENTAGE OF
    23  OPERATING REVENUES A LOCAL TRANSPORTATION ORGANIZATION OR
    24  TRANSPORTATION COMPANY HAS DURING A PARTICULAR FISCAL YEAR
    25  COMPARED TO THE TOTAL OPERATING REVENUE OF ALL LOCAL
    26  TRANSPORTATION ORGANIZATIONS OR TRANSPORTATION COMPANIES DURING
    27  THAT FISCAL YEAR AS REPORTED IN THE PENNSYLVANIA MASS TRANSIT
    28  STATISTICAL REPORT. "CLASS 3A OPERATING REVENUE PERCENTAGE"
    29  SHALL MEAN THE PERCENTAGE OF OPERATING REVENUES A CLASS 3A
    30  TRANSIT ENTITY HAS DURING A PARTICULAR FISCAL YEAR COMPARED TO
    19850H0084B4159                 - 18 -

     1  THE TOTAL OPERATING REVENUE OF ALL CLASS 3A TRANSIT ENTITIES
     2  DURING THAT PARTICULAR FISCAL YEAR AS REPORTED IN THE
     3  PENNSYLVANIA MASS TRANSIT STATISTICAL REPORT. "CLASS 3B
     4  OPERATING REVENUE PERCENTAGE" SHALL MEAN THE PERCENTAGE OF
     5  OPERATING REVENUES A CLASS 3B TRANSIT ENTITY HAS DURING A
     6  PARTICULAR FISCAL YEAR COMPARED TO THE TOTAL OPERATING REVENUE
     7  OF ALL CLASS 3B TRANSIT ENTITIES DURING THAT PARTICULAR FISCAL
     8  YEAR AS REPORTED IN THE PENNSYLVANIA MASS TRANSIT STATISTICAL
     9  REPORT.
    10     "PENNSYLVANIA MASS TRANSIT STATISTICAL REPORT" SHALL MEAN THE
    11  SUMMARY OF SELECTED FINANCIAL AND OPERATING DATA CONCERNING
    12  LOCAL TRANSPORTATION ORGANIZATIONS AND TRANSPORTATION COMPANIES
    13  ANNUALLY PUBLISHED BY THE DEPARTMENT SINCE THE 1973-1974 FISCAL
    14  YEAR AND WHICH IS TO BE PUBLISHED BY THE DEPARTMENT IN THE
    15  FUTURE PURSUANT TO SUBSECTION (D).
    16     "REVENUE PASSENGER PERCENTAGE" SHALL MEAN THE PERCENTAGE OF
    17  REVENUE PASSENGERS RIDING ON VEHICLES OF A LOCAL TRANSPORTATION
    18  ORGANIZATION OR TRANSPORTATION COMPANY DURING THE 1984-1985
    19  FISCAL YEAR COMPARED TO THE TOTAL NUMBER OF REVENUE PASSENGERS
    20  RIDING ON VEHICLES OF ALL LOCAL TRANSPORTATION ORGANIZATIONS OR
    21  TRANSPORTATION COMPANIES DURING THE 1984-1985 FISCAL YEAR AS
    22  REPORTED IN THE PENNSYLVANIA MASS TRANSIT STATISTICAL REPORT FOR
    23  THE 1984-1985 FISCAL YEAR.
    24     "REVENUE PASSENGERS" SHALL MEAN THE NUMBER OF TRANSIT RIDES
    25  ON VEHICLES OF A LOCAL TRANSPORTATION ORGANIZATION OR
    26  TRANSPORTATION COMPANY BY INITIAL BOARD PATRONS ONLY (INCLUDING
    27  SENIOR CITIZENS BUT EXCLUDING TRANSFERS) AS REPORTED IN THE
    28  PENNSYLVANIA MASS TRANSIT STATISTICAL REPORT FOR THE 1984-1985
    29  FISCAL YEAR.
    30     "VEHICLE MILE PERCENTAGE" SHALL MEAN THE PERCENTAGE OF
    19850H0084B4159                 - 19 -

     1  VEHICLE MILES OF A LOCAL TRANSPORTATION ORGANIZATION OR
     2  TRANSPORTATION COMPANY FOR A PARTICULAR FISCAL YEAR COMPARED TO
     3  THE TOTAL NUMBER OF VEHICLE MILES OF ALL LOCAL TRANSPORTATION
     4  ORGANIZATIONS AND TRANSPORTATION COMPANIES FOR THAT FISCAL YEAR.
     5  "CLASS 3A VEHICLE MILE PERCENTAGE" SHALL MEAN THE PERCENTAGE OF
     6  VEHICLE MILES OF A CLASS 3A LOCAL TRANSPORTATION ORGANIZATION OR
     7  TRANSPORTATION COMPANY FOR A PARTICULAR FISCAL YEAR COMPARED TO
     8  THE TOTAL NUMBER OF VEHICLE MILES OF ALL CLASS 3A LOCAL
     9  TRANSPORTATION ORGANIZATIONS AND TRANSPORTATION COMPANIES FOR
    10  THAT FISCAL YEAR. "CLASS 3B VEHICLE MILE PERCENTAGE" SHALL MEAN
    11  THE PERCENTAGE OF VEHICLE MILES OF A CLASS 3B LOCAL
    12  TRANSPORTATION ORGANIZATION OR TRANSPORTATION COMPANY FOR A
    13  PARTICULAR FISCAL YEAR COMPARED TO THE TOTAL NUMBER OF VEHICLE
    14  MILES OF ALL CLASS 3B LOCAL TRANSPORTATION ORGANIZATION AND
    15  TRANSPORTATION COMPANIES FOR THAT FISCAL YEAR.
    16     "VEHICLE MILES" SHALL MEAN THE TOTAL DISTANCE, CALCULATED IN
    17  MILES, TRAVELED BY VEHICLES OF A LOCAL TRANSPORTATION
    18  ORGANIZATION OR TRANSPORTATION COMPANY AS REPORTED FOR THE MOST
    19  RECENT YEAR IN THE MOST RECENTLY PUBLISHED PENNSYLVANIA MASS
    20  TRANSIT STATISTICAL REPORT.
    21     (H)  PENALTY FOR FAILURE TO MEET PRODUCTIVITY REQUIREMENTS:
    22     (1)  WITH RESPECT TO GRANTS TO CLASS 1 TRANSIT ENTITIES AND
    23  CLASS 2 TRANSIT ENTITIES IN ANY FISCAL YEAR, THE DEPARTMENT
    24  SHALL REDUCE THE GRANT AMOUNT AWARDED TO SUCH LOCAL
    25  TRANSPORTATION ORGANIZATION OR TRANSPORTATION COMPANY BY ONE
    26  PERCENT FOR EACH PERCENTAGE POINT SUCH LOCAL TRANSPORTATION
    27  ORGANIZATION'S OR TRANSPORTATION COMPANY'S OPERATING RATIO IS
    28  LESS THAN FIFTY PERCENT IN THE CASE OF CLASS 1 TRANSIT ENTITIES,
    29  OR LESS THAN FORTY-SIX PERCENT IN THE CASE OF CLASS 2 TRANSIT
    30  ENTITIES.
    19850H0084B4159                 - 20 -

     1     (2)  "OPERATING RATIO" SHALL BE THE PROPORTION OF TOTAL
     2  OPERATING REVENUE (INCLUDING ALL PASSENGER, CHARTER AND
     3  ADVERTISING REVENUE, FARE REIMBURSEMENTS RECEIVED FROM THE STATE
     4  LOTTERY FUND, AND ALL OTHER RECEIPTS ASSOCIATED WITH THE
     5  DELIVERY OF TRANSIT SERVICES, BUT EXCLUDING FEDERAL GRANTS
     6  PROVIDED TO COVER OPERATING LOSSES AND STATE GRANTS MADE
     7  PURSUANT TO SUBSECTION (B) OVER TOTAL OPERATING EXPENSES
     8  ASSOCIATED WITH THE DAY-TO-DAY OPERATION OF THE SYSTEM (BUT
     9  EXCLUDING DEPRECIATION OF CAPITAL ASSETS).
    10     SECTION 4.  SECTION 205 OF THE ACT, ADDED JULY 10, 1980
    11  (P.L.427, NO.101), IS AMENDED TO READ:
    12     SECTION 205.  GRANT PROPOSALS.--(A)  GRANTS MAY BE MADE
    13  HEREUNDER WITH REFERENCE TO ANY APPROPRIATE PROJECT IRRESPECTIVE
    14  OF WHEN IT WAS FIRST COMMENCED OR CONSIDERED AND REGARDLESS OF
    15  WHETHER COSTS WITH RESPECT THERETO SHALL HAVE BEEN INCURRED
    16  PRIOR TO THE TIME THE GRANT IS APPLIED FOR OR MADE.
    17     (B)  THE GOVERNING BODIES OF MUNICIPALITIES, COUNTIES OR
    18  THEIR INSTRUMENTALITIES, AND AGENCIES AND INSTRUMENTALITIES OF
    19  THE COMMONWEALTH MAY, BY FORMAL RESOLUTION, APPLY AND
    20  TRANSPORTATION COMPANIES BY APPLICATION MAY APPLY TO THE
    21  DEPARTMENT FOR STATE GRANT FUNDS PROVIDED BY THIS ARTICLE. IF
    22  SUCH ACTION IS TAKEN BY ANY SUCH GOVERNING BODY, A CERTIFIED
    23  COPY OF THE RESOLUTION AND IN THE CASE OF TRANSPORTATION
    24  COMPANIES, AN APPLICATION SHALL BE FORWARDED TO THE DEPARTMENT
    25  WITH A PROPOSAL OF THE GOVERNING BODY OR COMPANY, WHICH SHALL
    26  SET FORTH THE USE TO BE MADE OF STATE GRANT FUNDS AND THE AMOUNT
    27  OF FUNDS REQUIRED; OR, IN THE CASE OF GRANTS UNDER SECTION 204,
    28  WHICH SHALL SET FORTH A REQUEST THAT THE GRANT PROVIDED FOR
    29  UNDER SECTION 204 BE MADE.
    30     (C)  THE DEPARTMENT SHALL GIVE PREFERENCE TO ANY PROPOSAL
    19850H0084B4159                 - 21 -

     1  WHICH WILL ASSIST IN CARRYING OUT A PLAN, MEETING CRITERIA
     2  ESTABLISHED BY THE DEPARTMENT, FOR A UNIFIED OR OFFICIALLY
     3  COORDINATED URBAN TRANSPORTATION SYSTEM AS A PART OF THE
     4  COMPREHENSIVELY PLANNED DEVELOPMENT OF THE URBAN AREA, WHICH IS
     5  NECESSARY FOR THE SOUND, ECONOMIC AND DESIRABLE DEVELOPMENT OF
     6  SUCH AREA, AND WHICH SHALL ENCOURAGE TO THE MAXIMUM EXTENT
     7  FEASIBLE THE PARTICIPATION OF PRIVATE ENTERPRISE. THIS
     8  SUBSECTION SHALL NOT APPLY TO GRANTS MADE PURSUANT TO SECTION
     9  204.
    10     (D)  THE USE OF THE STATE GRANT FUNDS SHALL BE FOR THE
    11  PURPOSES SET FORTH IN SECTION 203, AND WITHOUT LIMITING THE
    12  GENERALITY OF THE FOREGOING, MAY BE USED FOR LOCAL CONTRIBUTIONS
    13  REQUIRED BY THE FEDERAL URBAN MASS TRANSPORTATION ACT OF 1964,
    14  AS AMENDED, OR OTHER FEDERAL LAW CONCERNING COMMON CARRIER MASS
    15  TRANSPORTATION.
    16     (E)  THE DEPARTMENT SHALL REVIEW THE PROPOSAL AND, IF
    17  SATISFIED THAT THE PROPOSAL IS IN ACCORDANCE WITH THE PURPOSES
    18  OF THIS ARTICLE, SHALL ENTER INTO A GRANT AGREEMENT SUBJECT TO
    19  THE CONDITION THAT THE GRANT BE USED IN ACCORDANCE WITH THE
    20  TERMS OF THE PROPOSAL. WITH RESPECT TO GRANTS MADE PURSUANT TO
    21  SECTION 204, THE DEPARTMENT SHALL MAKE SUCH GRANTS SUBJECT TO
    22  THE CONDITION THAT THE GRANTS BE USED FOR THE PURPOSES SET FORTH
    23  IN SECTION 203 AND, WHERE APPLICABLE, ONLY AFTER THE
    24  CERTIFICATION REQUIRED IN SECTION 203(2)(III) AND (3) SHALL HAVE
    25  BEEN MADE.
    26     (F)  THE TIME OF PAYMENT OF THE GRANT AND ANY CONDITIONS
    27  CONCERNING SUCH PAYMENT SHALL BE SET FORTH IN THE GRANT
    28  AGREEMENT.
    29     SECTION 5.  (A)  THE SUM OF $30,000,000 IS HEREBY
    30  APPROPRIATED TO THE DEPARTMENT OF TRANSPORTATION PURSUANT TO
    19850H0084B4159                 - 22 -

     1  SECTION 204(B) OF THE ACT.
     2     (B)  THE DEPARTMENT OF TRANSPORTATION SHALL CALCULATE THE
     3  AMOUNT OF THE GRANT TO EACH LOCAL TRANSPORTATION ORGANIZATION
     4  AND TRANSPORTATION COMPANY PURSUANT TO SECTION 204 OF THE ACT
     5  FOR THE PERIOD JULY 1, 1986, TO JUNE 30, 1987. THE DEPARTMENT OF
     6  TRANSPORTATION SHALL DISBURSE THE $30,000,000 APPROPRIATION IN
     7  SUBSECTION (A) ON JULY 1, 1987, OR AS SOON AS POSSIBLE
     8  THEREAFTER.
     9     SECTION 6.  THE PROVISIONS OF THIS ACT ARE NONSEVERABLE. IF
    10  ANY PROVISION OF THIS ACT OR ITS APPLICATION TO ANY PERSON OR
    11  CIRCUMSTANCE IS HELD INVALID, OR IF THE GOVERNOR DISAPPROVES, IN
    12  WHOLE OR IN PART, THE APPROPRIATION CONTAINED IN SECTION 5 OF
    13  THIS ACT, THE REMAINING PROVISIONS OR APPLICATIONS OF THIS ACT
    14  ARE VOID.
    15     SECTION 7.  THIS ACT SHALL APPLY TO FISCAL YEARS COMMENCING
    16  JULY 1, 1986, AND THEREAFTER.
    17     SECTION 8.  THIS ACT SHALL TAKE EFFECT AS FOLLOWS:
    18     (1)  SECTION 5(A) OF THIS ACT SHALL TAKE EFFECT JULY 1, 1987.
    19     (2)  THE REMAINDER OF THIS ACT SHALL TAKE EFFECT IMMEDIATELY.








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