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                                                       PRINTER'S NO. 313

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 301 Session of 2005


        INTRODUCED BY GREENLEAF, LOGAN, PILEGGI, PIPPY, TOMLINSON,
           TARTAGLIONE, WONDERLING, CONTI, COSTA, STACK, KITCHEN,
           C. WILLIAMS AND RAFFERTY, FEBRUARY 15, 2005

        REFERRED TO TRANSPORTATION, FEBRUARY 15, 2005

                                     AN ACT

     1  Amending Titles 74 (Transportation) and 75 (Vehicles) of the
     2     Pennsylvania Consolidated Statutes, further providing for
     3     allocation of additional dedicated funding to public
     4     transportation systems; creating a service stabilization and
     5     state of good repair program; creating a Major Capital
     6     Initiative Program; providing for distribution of
     7     supplemental funding; further providing for use of funds
     8     distributed; providing for establishment of new formulas for
     9     public transportation funding in small urbanized areas and
    10     rural areas and for community transit; establishing a new
    11     funding mechanism for intercity passenger rail services; and
    12     providing for public transportation efforts to raise revenue
    13     by alternative means, for cooperative procurement and for
    14     special traffic rules.

    15     The General Assembly of the Commonwealth of Pennsylvania
    16  hereby enacts as follows:
    17     Section 1.  The definitions of "Class 4 transit entity" and
    18  "urban common carrier mass transportation" in section 1301 of
    19  Title 74 of the Pennsylvania Consolidated Statutes are amended
    20  and the section is amended by adding definitions to read:
    21  § 1301.  Definitions.
    22     The following words and phrases when used in this chapter
    23  shall have the meanings given to them in this section unless the


     1  context clearly indicates otherwise:
     2     * * *
     3     "Class 4 transit entity."  Any local transportation
     4  organization or transportation company which serves a
     5  nonurbanized area and, during the 1990-1991 fiscal year,
     6  received or was approved to receive funding under the act of
     7  February 11, 1976 (P.L.14, No.10), known as the Pennsylvania
     8  Rural and Intercity Common Carrier Surface Transportation
     9  Assistance Act[.], or which received demonstration funding from
    10  the planning, development, research, rural expansion and
    11  department-initiated programs in section 1310 (relating to
    12  distribution of funding) shares prior to the effective date of
    13  this definition and which is recommended for continuation of
    14  funding by the Department of Transportation.
    15     * * *
    16     "Class 5 transit entity."  A nonprofit coordinator of the
    17  shared-ride lottery program for senior citizens, excluding a
    18  nonprofit coordinator operating in a first or second class
    19  county. Notwithstanding the foregoing, a nonprofit provider in a
    20  first or second class county that operates under a brokerage
    21  license issued by the Pennsylvania Public Utility Commission
    22  prior to the effective date of this section shall be included.
    23     * * *
    24     "Non-Federal share."  The portion of a capital project not
    25  covered by a Federal grant or loan, regardless of the percentage
    26  of the total project cost covered by the Federal grant or loan
    27  or the Federal to non-Federal match ratio included in Federal
    28  statutes governing the project if the actual Federal to non
    29  Federal match ratio is different than that identified in the
    30  governing statute. Where no Federal funds are provided for the
    20050S0301B0313                  - 2 -     

     1  project, the non-Federal share is the entire project cost. The
     2  term shall apply to capital projects for which State funding is
     3  provided under any section of this title, including, but not
     4  limited to sections 1302 (relating to program authorizations),
     5  1310 (relating to distribution of funding), 1310.1 (relating to
     6  supplemental public transporation assistance funding), 1310.2
     7  (relating to service stabilization and state of good repair
     8  program) and 1310.3 (relating to Major Capital Initiative
     9  Program).
    10     * * *
    11     "Public passenger transportation."  Transportation within an
    12  area that includes a municipality or other built-up place or a
    13  nonurbanized area which is appropriate, in the judgment of the
    14  Department of Transportation, for a public passenger
    15  transportation system to serve commuters or others in the
    16  locality, taking into consideration the local patterns and
    17  trends of urban or rural growth, by bus or rail or other
    18  conveyance, either publicly or privately owned, serving the
    19  general public. The term does not include exclusive ride,
    20  charter, group and party and sightseeing service, nonpublic
    21  transportation, school bus and private limousine services.
    22     * * *
    23     ["Urban common carrier mass transportation."  Transportation
    24  within an area that includes a municipality or other built-up
    25  place which is appropriate, in the judgment of the Department of
    26  Transportation, for a common carrier transportation system to
    27  serve commuters or others in the locality, taking into
    28  consideration the local patterns and trends of urban growth, by
    29  bus or rail or other conveyance, either publicly or privately
    30  owned, serving the general public. The term does not include
    20050S0301B0313                  - 3 -     

     1  school buses or charter or sightseeing service.]
     2     * * *
     3     Section 2.  Sections 1302, 1303 and 1310 of Title 74 are
     4  amended to read:
     5  § 1302.  Program authorizations.
     6     The department is hereby authorized, within the limitations
     7  hereinafter provided, and is required where the provisions of
     8  section 1303 (relating to annual appropriation and computation
     9  of subsidy) apply:
    10         (1)  To undertake and to provide financial support for
    11     research, by contract or otherwise, concerning [urban common
    12     carrier mass] public passenger transportation.
    13         (2)  To make grants to municipalities, counties, or their
    14     instrumentalities, and to agencies and instrumentalities of
    15     the Commonwealth to supplement Federal or local or Federal
    16     and local funds for use:
    17             (i)  For the purpose of studies, analysis, planning
    18         and development of programs for [urban common carrier
    19         mass] public passenger transportation service and
    20         facilities, and for the purpose of activities related to
    21         the planning, engineering and designing of specific
    22         projects which are a part of a comprehensive program,
    23         including, but not limited to, activities such as studies
    24         related to management, operations, capital requirements
    25         and economic feasibility, to the preparation of
    26         engineering and architectural surveys, plans and
    27         specifications and to other similar or related activities
    28         preliminary to and in preparation for the construction,
    29         acquisition or improved operation of [urban common
    30         carrier mass] public passenger transportation systems,
    20050S0301B0313                  - 4 -     

     1         facilities and equipment. State funding under this
     2         subparagraph shall not exceed five-sixths of the non-
     3         Federal share of the project costs.
     4             (ii)  To provide for research, development and
     5         demonstration projects in all phases of [urban common
     6         carrier mass] public passenger transportation, including
     7         the development, testing and demonstration of new
     8         facilities, equipment, techniques and methods, to assist
     9         in the solution of urban or rural transportation
    10         problems, in the improvement of [mass] public passenger
    11         transportation service and the contribution of such
    12         service toward meeting total urban and rural
    13         transportation needs at minimum cost. State funding under
    14         this subparagraph shall not exceed five-sixths of the
    15         non-Federal share of the project costs.
    16             (iii)  To assist in providing grants to continue
    17         necessary service to the public, to permit needed
    18         improvements in service which are not self-supporting, to
    19         permit service which may be socially desirable but
    20         economically unjustified, and otherwise for any purpose
    21         in furtherance of [urban common carrier mass] public
    22         passenger transportation. The methodology for calculating
    23         the amount of the grant under this subparagraph shall be
    24         determined in accordance with section 1303. Each grant to
    25         a Class 1 transit entity, to a Class 2 transit entity or
    26         to a Class 3 transit entity made pursuant to this
    27         paragraph shall be matched by local or private funding in
    28         an amount not less than one-third of the total State
    29         grant made pursuant to section 1303(b). Any grants to
    30         Class 3 transit entities may, however, be matched by an
    20050S0301B0313                  - 5 -     

     1         amount not less than the amount of local or private
     2         funding which is specified in the State contract for the
     3         1990-1991 fiscal year if the department shall have
     4         received a certification from such Class 3 transit entity
     5         that such lower level of local or private funding is
     6         adequate to prevent significant service reductions or
     7         passenger fare increases.
     8         (3)  To make grants to any transportation company or
     9     companies for use in providing necessary service to the
    10     public, to permit needed improvements in services which are
    11     not self-supporting, to permit services which may be socially
    12     desirable but economically unjustified, and otherwise for any
    13     purpose in furtherance of [urban common carrier mass] public
    14     passenger transportation. In view of the particular
    15     sensitivity of special instrumentalities and agencies of the
    16     Commonwealth created to serve or coordinate the local
    17     transportation needs of substantial metropolitan areas, no
    18     grant moneys may be used exclusively or principally in the
    19     local service area of any such agency or instrumentality in
    20     which a city or county of the first or second class has
    21     membership, except in accordance with a system of priorities
    22     agreed upon by the department and such agency or
    23     instrumentality. In the case of a grant where the moneys
    24     granted will be used for an activity to be conducted
    25     exclusively or principally within the local service areas of
    26     such agency or instrumentality, no grant moneys may be used
    27     except in accordance with agreements by the department and
    28     such agency or instrumentality with respect to such use. In
    29     the case of a grant not falling within the scope of the
    30     preceding sentence but where moneys granted will be used both
    20050S0301B0313                  - 6 -     

     1     within and without the local service area of such agency or
     2     instrumentality, the grant shall require that the routes,
     3     schedules and fares applicable only within such service areas
     4     shall be those mutually agreed upon by the department and
     5     such agency or instrumentality. No agreement referred to in
     6     this paragraph shall impair, suspend, reduce, enlarge or
     7     extend or affect in any manner the powers of the Pennsylvania
     8     Public Utility Commission or the Interstate Commerce
     9     Commission otherwise applicable by law. Each grant to a Class
    10     1 transit entity, to a Class 2 transit entity [or], to a
    11     Class 3 transit entity or to a Class 4 transit entity made
    12     pursuant to this paragraph shall be matched by local or
    13     private funding in an amount not less than one-third of the
    14     total State grant made pursuant to section 1303(b). Any
    15     grants to Class 3 transit entities may, however, be matched
    16     by an amount not less than the amount of local or private
    17     funding which is specified in the State contract for the
    18     1990-1991 fiscal year if the department shall have received a
    19     certification from such Class 3 transit entity that such
    20     lower level of local or private funding is adequate to
    21     prevent significant service reductions and/or passenger fare
    22     increases.
    23         (4)  In connection with privately or locally assisted
    24     capital projects or capital projects financed with private or
    25     local and Federal funds, to make grants for approved capital
    26     projects to a local transportation organization or a
    27     transportation company, including the acquisition,
    28     construction, reconstruction and improvement of facilities
    29     and equipment, buses and other rolling stock, and other real
    30     or personal property, including land (but not public
    20050S0301B0313                  - 7 -     

     1     highways), needed for an efficient and coordinated [mass]
     2     public passenger transportation system for use, by operation,
     3     lease or otherwise, in [urban common carrier mass] public
     4     passenger transportation service and in coordinating such
     5     service with highway and other transportation. No capital
     6     project grant shall be made for the purpose of financing,
     7     directly or indirectly, the acquisition of any interest in,
     8     or the purchase of any facilities or other property of, a
     9     private [urban common carrier mass] public passenger
    10     transportation company. Each capital project shall be based
    11     on a program or plan approved by the department. No capital
    12     project grant shall exceed five-sixths of the non-Federal
    13     share, subject, however, to the following specific
    14     exceptions:
    15             (i)  If two or more capital projects that are
    16         receiving Federal funds are combined for financing
    17         purposes, the amount of department funds used for any one
    18         of such projects may exceed five-sixths of the non-
    19         Federal share, provided that the total amount of
    20         department funds provided for all the projects so
    21         combined does not exceed five-sixths of the total non-
    22         Federal share of all of the projects so combined.
    23             [(ii)  If a capital project is eligible to receive
    24         Federal financial assistance under the Urban Mass
    25         Transportation Act of 1964 and if the project application
    26         for such Federal financial assistance has been rejected
    27         or delayed because of a lack of Federal funds or if the
    28         normal amount of Federal grant cannot be provided because
    29         of a lack of Federal funds and if the department has
    30         determined that the capital project is essential and
    20050S0301B0313                  - 8 -     

     1         should proceed without delay, department funds for such
     2         capital project may be increased temporarily to finance
     3         the entire net project cost, with the requirement that,
     4         upon the availability of additional Federal funds and the
     5         making to the capital project of a new or an additional
     6         Federal grant, the amount of department funds in excess
     7         of five-sixths of the non-Federal share be refunded to
     8         the department or be applied as the department may direct
     9         to help meet the department's share of the cost of
    10         another project in which the department is a participant.
    11             (iii)  If a project is ineligible to receive Federal
    12         financial assistance under the Urban Mass Transportation
    13         Act of 1964 and if the department has determined that the
    14         project is essential and should proceed without delay,
    15         the amount of department funds for such project shall be
    16         limited to an amount not to exceed one-half of the net
    17         project cost.]
    18             (iv)  A transit entity may choose to use dedicated
    19         funds allocated to it under sections 1310 (relating to
    20         distribution of funding), 1310.1 (relating to
    21         supplemental public transportation assistance funding),
    22         1310.2 (relating to service stabilization and state of
    23         good repair program) and 1310.3 (relating to Major
    24         Capital Initiative Program) to increase the State share
    25         of a project to twenty-nine thirtieths of the non-Federal
    26         share of the project. Dedicated funds used for capital
    27         projects that have a Federal share shall be considered a
    28         part of the State share of the project.
    29             (v)  A transit entity may choose to accept less than
    30         five-sixths of the non-Federal share from State funds,
    20050S0301B0313                  - 9 -     

     1         either grant funds or dedicated funds, if the transit
     2         entity has available resources from local or private
     3         sources.
     4             (vi)  If a capital project is approved in a capital
     5         budget enacted by the General Assembly and signed by the
     6         Governor and if there is language in that act waiving or
     7         modifying the share of the project to be paid by the
     8         State, the Department of Transportation shall provide
     9         funding at the level specified in the adopted capital
    10         budget.
    11             (vii)  The match provisions of this subsection are
    12         applicable to Class 1, 2, 3, 4 and 5 transit entities.
    13         (5)  To make grants from the State Lottery Fund in
    14     accordance with Chapter 7 of the act of August 14, 1991
    15     (P.L.342, No.36), known as the Lottery Fund Preservation Act.
    16         (6)  To participate in a pooled bus acquisition program
    17     with transportation companies or local transportation
    18     organizations and the Federal Government for the purpose of
    19     making buses available to transportation companies or local
    20     transportation organizations for use in [urban common carrier
    21     mass] public passenger transportation service, in accordance
    22     with the following procedures:
    23             (i)  The department may apply to the [Urban Mass
    24         Transportation] Federal Transit Administration of the
    25         United States Department of Transportation for the
    26         Federal share of any pooled-bus acquisition project.
    27             (ii)  The department may, with the assistance of the
    28         Department of General Services or a special group
    29         comprised of representatives of the transportation
    30         companies or local transportation organizations within
    20050S0301B0313                 - 10 -     

     1         the Commonwealth, write specifications for and order
     2         buses on behalf of any number of transportation companies
     3         or local transportation organizations desiring bus
     4         acquisition under this program.
     5             (iii)  Before any order for buses is placed by the
     6         department with a manufacturer, the department shall
     7         secure written assurance from the Federal Government of
     8         the availability of Federal financial assistance for such
     9         bus acquisitions. The department shall also secure
    10         written obligations by the transportation companies or
    11         local transportation organizations participating in such
    12         bus acquisitions that they will accept delivery of such
    13         buses at the appropriate time and will supply local
    14         funding in accordance with subparagraph (iv).
    15             (iv)  Funding for this program shall be: four-fifths
    16         Federal, one-sixth State and one-thirtieth from local
    17         sources; however, the local share of program costs may be
    18         advanced to the manufacturer by the Commonwealth at the
    19         time of purchase. Repayments to the Commonwealth of such
    20         advancements shall be considered as augmentations to the
    21         fund from which the funds were advanced. No part of the
    22         Federal share shall be advanced by the Commonwealth in
    23         anticipation of reimbursement.
    24             (v)  The Commonwealth may take title to and delivery
    25         of vehicles acquired pursuant to this program for
    26         eventual transfer to transportation companies or local
    27         transportation organizations.
    28             (vi)  All bus acquisitions under this program shall
    29         be made in accordance with a system of competitive
    30         bidding.
    20050S0301B0313                 - 11 -     

     1             (vii)  At its discretion, the department may organize
     2         and fund, with Commonwealth funds, postacquisition
     3         studies reasonably related to any pooled-bus acquisition
     4         made pursuant to this section, including, but not limited
     5         to, a vehicle inspection study at an appropriate interval
     6         or intervals following acquisition in order to monitor
     7         the condition of any vehicle purchased pursuant to this
     8         section.
     9  § 1303.  Annual appropriation and computation of subsidy.
    10     (a)  General rule.--Beginning with the 1991-1992 fiscal year,
    11  the Commonwealth shall annually determine the level of
    12  appropriation for public transportation assistance, using the
    13  standards contained in this section, to sufficiently fund and to
    14  make fully operative section 1302(2)(iii) and (3) (relating to
    15  program authorizations).
    16     (b)  Distribution as grants.--The General Assembly shall
    17  annually make an appropriation to the department for
    18  distribution as grants to local transportation organizations and
    19  transportation companies. The total amount of moneys
    20  appropriated shall be distributed by the department as grants to
    21  local transportation organizations and transportation companies
    22  in accordance with the provisions of this section.
    23     (c)  Distribution formula.--The department shall distribute
    24  the total amount appropriated under subsection (b) in the
    25  following manner:
    26         (1)  The department shall calculate the Class 4 transit
    27     entity share for the fiscal year.
    28         (2)  The department shall then calculate the amount of
    29     grant due to each Class 4 transit entity as follows:
    30             (i)  From the Class 4 transit entity share, each
    20050S0301B0313                 - 12 -     

     1         Class 4 transit entity shall first receive an amount
     2         equal to 100% of its Class 4 transit entity adjusted base
     3         grant.
     4             (ii)  With respect to any portion of the Class 4
     5         transit entity share remaining after each Class 4 transit
     6         entity receives an amount equal to 100% of its Class 4
     7         transit entity adjusted base grant:
     8                 (A)  Fifty percent of such excess shall be
     9             distributed to Class 4 transit entities based upon
    10             the percentage of the total amount of all Class 4
    11             transit entity adjusted base grants given to Class 4
    12             transit entities which a particular Class 4 transit
    13             entity received.
    14                 (B)  Twenty-five percent of such excess shall be
    15             distributed to Class 4 transit entities based upon
    16             each transit entity's Class 4 revenue mile
    17             percentage. The actual amount received by each Class
    18             4 transit entity under this clause shall be
    19             determined by multiplying a particular Class 4
    20             transit entity's Class 4 revenue mile percentage
    21             times 25% of such excess of the Class 4 transit
    22             entity share.
    23                 (C)  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 hour
    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 hour percentage
    30             times 25% of such excess of the Class 4 transit
    20050S0301B0313                 - 13 -     

     1             entity share.
     2         (3)  All Class 3 and 4 transit entities may utilize all
     3     of the funds received pursuant to this section for any
     4     purpose in furtherance of public transportation. Each grant
     5     made to a Class 3 or 4 transit entity pursuant to this
     6     section shall, however, be matched by local or private
     7     funding in an amount not less than one-third of the total
     8     State grant made pursuant to subsection (c). Additionally,
     9     any grants to Class 3 and 4 transit entities may be matched
    10     by an amount not less than the amount of local or private
    11     funding which is specified in the State contract for the
    12     1990-1991 fiscal year if the department shall have received a
    13     certification from such Class 3 or 4 transit entity that such
    14     lower level of local or private funding is adequate to
    15     prevent significant service reductions or passenger fare
    16     increases.
    17             (i)  All funds allocated to a Class 4 transit entity
    18         under sections 1310 (relating to distribution of
    19         funding), 1310.1 (relating to supplemental public
    20         transportation assistance funding) and 1310.2 (relating
    21         to service stabilization and state of good repair
    22         program) that are not spent for operating purposes or
    23         included in the most recent five-year plan submitted to
    24         the department as part of the Class 4 transit entity's
    25         rural operating assistance application for capital
    26         purposes within three years of initial allocation shall
    27         be returned to the department.
    28             (ii)  The department shall place all such returned
    29         funds in a restricted fund to finance the capital and
    30         operational expenses of new rural transportation systems
    20050S0301B0313                 - 14 -     

     1         created after the effective date of this section and that
     2         have previously received demonstration funds and
     3         operational expenses of major expansions of existing
     4         Class 4 transit entity systems. Such funds may be used
     5         for initial start-up expenses and operating costs for a
     6         new system or a major expansion for a period up to five
     7         years and may be supplemented, at the discretion of the
     8         department, with section 1310 project management
     9         oversight or planning, development, research, rural
    10         expansion and department-initiated program funds.
    11             (iii)  At the close of each fiscal year, the
    12         department shall calculate the remaining balance in the
    13         restricted fund, by the year in which the balance was
    14         returned to the fund by a transit system. Any funds
    15         remaining unspent for new systems or major system
    16         expansions at the end of three years shall be
    17         redistributed to all Class 4 transit entities based on
    18         section 1310.2 formula.
    19             (iv)  Funds provided to Class 4 transit entities
    20         under sections 1310, 1310.1 and 1310.2 are intended to
    21         supplement rather than supplant Federal funds available
    22         for rural transit services and projects. Where there is
    23         insufficient Federal funding to provide the maximum
    24         amount for which each system is eligible, the department
    25         shall attempt to impact all recipients of Federal funds
    26         equally and may use project management oversight or
    27         planning, development, research, rural expansion and
    28         department-initiated program funds available to the
    29         department or funds provided under subparagraphs (i),
    30         (ii) and (iii) to remediate any imbalances resulting from
    20050S0301B0313                 - 15 -     

     1         allocation of Federal funds.
     2         (4)  The department shall calculate the Class 1 transit
     3     entity share, the Class 2 transit entity share and the Class
     4     3 transit entity share for the fiscal year.
     5         (5)  The department shall then calculate the amount of
     6     grant due to each local transportation organization and
     7     transportation company as follows:
     8             (i)  Each Class 1 transit entity shall receive a
     9         prorata share of the Class 1 transit entity share. If
    10         there is only one Class 1 transit entity, it shall
    11         receive the entire Class 1 transit entity share.
    12             (ii)  Each Class 2 transit entity shall receive a
    13         prorata share of the Class 2 transit entity share. If
    14         there is only one Class 2 transit entity, it shall
    15         receive the entire Class 2 transit entity share.
    16             (iii)  Each Class 3 transit entity shall receive a
    17         portion of the Class 3 transit entity share calculated as
    18         follows:
    19                 (A)  From the Class 3 transit entity share, each
    20             Class 3 transit entity shall first receive an amount
    21             equal to 100% of its Class 3 transit entity adjusted
    22             base grant.
    23                 (B)  With respect to any portion of the Class 3
    24             transit entity share remaining after each Class 3
    25             transit entity receives an amount equal to 100% of
    26             its Class 3 transit entity adjusted base grant:
    27                     (I)  Fifty percent of such excess shall be
    28                 distributed to Class 3 transit entities based
    29                 upon the percentage of all Class 3 transit entity
    30                 adjusted base grants given to Class 3 transit
    20050S0301B0313                 - 16 -     

     1                 entities which a particular Class 3 transit
     2                 entity received.
     3                     (II)  Twenty-five percent of such excess
     4                 shall be distributed to Class 3 transit entities
     5                 based upon each transit entity's Class 3 vehicle
     6                 mile percentage. The actual amount received by
     7                 each Class 3 transit entity under this subclause
     8                 shall be determined by multiplying a particular
     9                 Class 3 transit entity's Class 3 vehicle mile
    10                 percentage times 25% of such excess of the Class
    11                 3 transit entity share.
    12                     (III)  Twenty-five percent of such excess
    13                 shall be distributed to Class 3 transit entities
    14                 based upon each Class 3 transit entity's Class 3
    15                 operating revenue percentage. The actual amount
    16                 received by each Class 3 transit entity under
    17                 this subclause shall be determined by multiplying
    18                 a particular Class 3 transit entity's Class 3
    19                 operating revenue percentage times 25% of such
    20                 excess of the Class 3 transit entity share.
    21         (6)  On or about each July 1, October 1, January 1 and
    22     April 1 of each year commencing July 1, 1987, the department
    23     shall disburse 25% of the total annual amount due to each
    24     local transportation organization or transportation company
    25     calculated in accordance with this section.
    26     (d)  New organizations.--Should a new local transportation
    27  organization or transportation company be established and meet
    28  the criteria of a Class 1 transit entity, Class 2 transit
    29  entity, Class 3 transit entity or Class 4 transit entity as such
    30  criteria are set forth in section 1301 (relating to
    20050S0301B0313                 - 17 -     

     1  definitions), the department shall make an appropriate
     2  determination as to the level of grant to which such local
     3  transportation organization or transportation company shall be
     4  entitled. This determination shall include, but shall not be
     5  limited to, a determination as to an appropriate adjusted base
     6  grant for that local transportation organization or
     7  transportation company and a determination of appropriate
     8  adjustments to class percentages or transit entity shares.
     9     (e)  Change to different entity class.--If, during any fiscal
    10  year, either the number of vehicles operated by a local
    11  transportation organization or transportation company or the
    12  area served by such a local transportation organization or
    13  transportation company changes so that the local transportation
    14  organization or transportation company meets the criteria for a
    15  different transit entity class, as such criteria are set forth
    16  in section 1301, on or before July 15 of the fiscal year which
    17  follows such a change and in each fiscal year thereafter, the
    18  department shall reflect any change in the transit entity class
    19  of such a local transportation organization or transportation
    20  company in its calculation of the transit entity shares for each
    21  transit entity class for that and subsequent fiscal years. In
    22  its calculation of the transit entity shares for each transit
    23  entity class required by this section, for the fiscal year
    24  following the change in a local transportation organization or
    25  transportation company's transit entity class and thereafter,
    26  the department shall include the amount of the transit entity
    27  share allocated to such a local transportation organization or
    28  transportation company for the fiscal year prior to the change
    29  in the transit entity class, increased or decreased by the
    30  percentage by which the total appropriation being allocated has
    20050S0301B0313                 - 18 -     

     1  been increased or decreased in the new fiscal year as compared
     2  to the fiscal year just prior to the new fiscal year, in the
     3  transit entity share for the new transit entity class of such a
     4  local transportation organization or transportation company, and
     5  shall delete an equal amount from the transit entity share for
     6  the transit entity class for which such a local transportation
     7  organization or transportation company no longer meets the
     8  criteria in the new fiscal year [or thereafter]. Thereafter, the
     9  transit entity share shall be increased or decreased by the
    10  percentage by which the total appropriation being allocated has
    11  been increased or decreased in the new fiscal year as compared
    12  to the fiscal year just prior to the new fiscal year. The amount
    13  deleted from a transit entity class and added to a different
    14  entity class shall occur with appropriate adjustments to class
    15  percentages by the department.
    16     (f)  Rates, fares and charges.--
    17         (1)  Each local transportation organization or
    18     transportation company receiving moneys pursuant to this
    19     section shall annually fix such rates, fares and charges in
    20     such manner that they shall be at all times sufficient in the
    21     aggregate, and in conjunction with any moneys received from
    22     Federal or other sources, and any other income available to
    23     such organization or company, to provide funds for the
    24     payment of all operating costs and expenses which shall be
    25     incurred by such organization or company.
    26         (2)  In order to be eligible for the moneys described in
    27     paragraph (1), each local transportation organization or
    28     transportation company shall adopt an annual operating budget
    29     for each fiscal year no later than the last day of the
    30     preceding fiscal year. A copy of this operating budget shall
    20050S0301B0313                 - 19 -     

     1     be submitted to the department within ten days after its
     2     approval, along with a certification by the local
     3     transportation organization or transportation company that
     4     adequate revenues (including subsidies) are provided to
     5     support operating costs and expenses.
     6     (g)  Standards and measures.--
     7         (1)  Within one year after the effective date of this
     8     part and every year thereafter, each local transportation
     9     organization or transportation company receiving moneys
    10     pursuant to this section shall adopt a series of service
    11     standards and performance evaluation measures. Such standards
    12     and measures shall be in addition to the performance audits
    13     required by section 1315 (relating to public transportation
    14     grants management accountability) and shall consist of
    15     objectives and specific numeric performance levels to be
    16     achieved in meeting these standards and objectives. Those
    17     standards and measures adopted shall include the following,
    18     in addition to others deemed appropriate by the local
    19     transportation organization or transportation company:
    20             (i)  An automatic mechanism to review the utilization
    21         of routes.
    22             (ii)  Staffing ratios (ratio of administrative
    23         employees to operating employees; number of vehicles per
    24         mechanic).
    25             (iii)  Productivity measures (vehicle miles per
    26         employee; passenger and employee accidents per 100,000
    27         vehicle miles; on-time performance; miles between road
    28         calls).
    29             (iv)  Fiscal indicators (operating cost per
    30         passenger; subsidy per passenger and operating ratio).
    20050S0301B0313                 - 20 -     

     1             (iv.1)  Reasonable minimum prequalification standards
     2         for prospective transit service subcontractors.
     3             (v)  Any other matter desired by the governing body
     4         of such local transportation organization or
     5         transportation company.
     6         (2)  The service standards and performance evaluation
     7     measures shall be established by formal action of the
     8     governing body of such local transportation organization or
     9     transportation company following an opportunity for comment
    10     by the public and the department. Upon submission, the
    11     department will review and may make recommendations to the
    12     local transportation organization or transportation company
    13     concerning the service standards and performance evaluation
    14     measures.
    15         (3)  In the discretion of such governing body, the
    16     service standards and performance evaluation measures may be
    17     systemwide or based on a sampling.
    18         (4)  The service standards and performance evaluation
    19     measures shall only constitute goals for such local
    20     transportation organization or transportation company in
    21     providing service in the year following their adoption. At
    22     the end of such year, fiscal or calendar, as the case may be,
    23     a report shall be transmitted to the department for its
    24     consideration indicating the projected performance levels and
    25     the performance levels actually achieved. Upon submission,
    26     the department will review the report and may make
    27     recommendations to such local transportation organization or
    28     transportation company concerning the performance levels
    29     actually achieved. Such report shall be released to the
    30     public at the time of issuance.
    20050S0301B0313                 - 21 -     

     1         (5)  The department may suspend the eligibility for
     2     future discretionary transit grant funds of any transit
     3     entity which fails to comply with the provisions of this
     4     section. The department shall restore the discretionary
     5     funding eligibility of a suspended transit entity at such
     6     time as the requirements of this section are met in an
     7     amended application received by the department.
     8         (6)  Notwithstanding any other provision of law, a Class
     9     1 transit entity authorized by its enabling statute to
    10     exercise the right of eminent domain for public
    11     transportation purposes shall, when acquiring land by eminent
    12     domain for any purpose permitted under this chapter and
    13     financed in whole or in part under this chapter, be bound by
    14     the requirement contained in section 2003 of the act of April
    15     9, 1929 (P.L.177, No.175), known as The Administrative Code
    16     of 1929, to demonstrate by clear and convincing evidence that
    17     the activity contemplated on the site proposed to be
    18     appropriated could not have been conducted economically at an
    19     alternate location. In all cases, when acquiring land in any
    20     manner permitted by its enabling statute, a Class I transit
    21     entity must conduct a public hearing on the project for which
    22     the land is to be acquired, either individually on the
    23     project or as part of a hearing on its overall capital
    24     budget, and the project must be included in a capital budget
    25     submitted to the department in accordance with this chapter.
    26     The land acquired for such public transportation purpose and
    27     the transit project constructed thereon shall have the same
    28     status in relation to the provisions of the act of July 31,
    29     1968 (P.L.805, No.247), known as the Pennsylvania
    30     Municipalities Planning Code, as land acquired by the
    20050S0301B0313                 - 22 -     

     1     department for highway right-of-way purposes.
     2     (h)  Reduction of certain grants.--With respect to grants to
     3  Class 1 transit entities and Class 2 transit entities in any
     4  fiscal year, the department shall reduce the grant amount due to
     5  such local transportation organization or transportation company
     6  by an amount equal to 1% of such grant moneys otherwise due to
     7  such local transportation organization or transportation company
     8  for each percentage point such local transportation
     9  organization's or transportation company's operating ratio is
    10  less than 50% in the case of a Class 1 transit entity or less
    11  than 46% in the case of a Class 2 transit entity.
    12     (i)  Audits.--The department is authorized to perform
    13  independent financial audits of the financial statements of each
    14  local transportation organization or transportation company
    15  receiving moneys pursuant to this section. Such audits shall be
    16  conducted in accordance with generally accepted auditing
    17  standards. Any financial statements subject to such audit or
    18  reports resulting from such audit shall be prepared and
    19  presented in accordance with generally accepted accounting
    20  principles, consistently applied with previous statements
    21  rendered for or on behalf of such organization or company. The
    22  department may coordinate such audits in conjunction with audits
    23  undertaken by the Auditor General.
    24     (j)  Definitions.--As used in this section, the following
    25  words and phrases shall have the meanings given to them in this
    26  subsection:
    27     "Class 1 percentage."  Seventy percent.
    28     "Class 2 percentage."  Twenty-five and three-tenths percent.
    29     "Class 3 percentage."  Four and seven-tenths percent.
    30     "Class 1 to 3 allocation."  The total amount appropriated
    20050S0301B0313                 - 23 -     

     1  under subsection (b) less the Class 4 transit entity share.
     2     "Class 1 transit entity share."  The product of the Class 1
     3  percentage times the Class 1 to 3 allocation in a particular
     4  fiscal year.
     5     "Class 2 transit entity share."  The product of the Class 2
     6  percentage times the Class 1 to 3 allocation in a particular
     7  fiscal year.
     8     "Class 3 transit entity adjusted base grant."  The State
     9  subsidy which a Class 3 transit entity received during the 1990-
    10  1991 fiscal year, including Federal funds transferred from other
    11  local transportation organizations and transportation companies
    12  from the Federal fiscal year 1989-1990 pursuant to the
    13  Governor's apportionment allocation contained in the Urban Mass
    14  Transportation Act of 1964.
    15     "Class 3 transit entity share."  The product of the Class 3
    16  percentage times the Class 1 to 3 allocation in a particular
    17  fiscal year.
    18     "Class 3 vehicle mile percentage."  The percentage determined
    19  by dividing the vehicle miles of a Class 3 transit entity with
    20  respect to the most recent fiscal year as reported in the most
    21  recently issued Pennsylvania Mass Transit Statistical Report by
    22  the total number of vehicle miles of all Class 3 transit
    23  entities with respect to the most recent fiscal year as reported
    24  in the most recently issued Pennsylvania Mass Transit
    25  Statistical Report.
    26     "Class 4 revenue hour percentage."  The percentage determined
    27  by dividing the revenue hours of a Class 4 transit entity as
    28  reported with respect to the most recent fiscal year in the most
    29  recently issued Pennsylvania Rural and Small Urban Public
    30  Transportation Statistical Report by the total number of revenue
    20050S0301B0313                 - 24 -     

     1  hours of all Class 4 transit entities as reported with respect
     2  to the most recent fiscal year reported in the most recently
     3  issued Pennsylvania Rural and Small Urban Public Transportation
     4  Statistical Report.
     5     "Class 4 revenue mile percentage."  The percentage determined
     6  by dividing the revenue miles of a Class 4 transit entity as
     7  reported with respect to the most recent fiscal year in the most
     8  recently issued Pennsylvania Rural and Small Urban Public
     9  Transportation Statistical Report by the total revenue miles of
    10  all Class 4 transit entities as reported with respect to the
    11  most recent fiscal year reported in the most recently issued
    12  Pennsylvania Rural and Small Urban Public Transportation
    13  Statistical Report.
    14     "Class 4 transit entity share."  Two million three hundred
    15  thirty-five thousand dollars for the 1991-1992 fiscal year and,
    16  during the 1992-1993 fiscal year and each fiscal year
    17  thereafter, shall mean the Class 4 transit entity share for the
    18  prior fiscal year plus (or minus) the product of the Class 4
    19  transit entity share for the prior fiscal year times the
    20  percentage increase or decrease in the total operating
    21  assistance made available to local transportation organizations
    22  and transportation companies for that fiscal year as compared
    23  with the most recently completed fiscal year.
    24     "Operating ratio."  The proportion of total operating revenue
    25  (which shall include all passenger, charter and advertising
    26  revenue, fare reimbursement received from the State Lottery
    27  Fund, State funding for asset maintenance and all other receipts
    28  associated with the delivery of transit services, but shall
    29  exclude Federal grants provided to cover operating losses and
    30  State grants made pursuant to subsection (b)) divided by total
    20050S0301B0313                 - 25 -     

     1  operating expenses associated with day-to-day operation of the
     2  system [(], but excluding depreciation of capital assets[)].
     3     "Operating revenue."  The total revenue earned by a local
     4  transportation organization or transportation company through
     5  its transit operations, including, but not limited to, passenger
     6  revenue, senior citizen grant, charter revenue, school contract
     7  revenue, advertising, State funding for asset maintenance and
     8  other revenue listed with respect to the most recent fiscal year
     9  reported in the most recently issued Pennsylvania Mass Transit
    10  Statistical Report.
    11     "Operating revenue percentage."  The percentage determined by
    12  dividing the operating revenues of a local transportation
    13  organization or transportation company as reported in the most
    14  recently issued Pennsylvania Mass Transit Statistical Report by
    15  the total operating revenue of all local transportation
    16  organizations or transportation companies as reported in the
    17  most recently issued Pennsylvania Mass Transit Statistical
    18  Report.
    19  § 1310.  Distribution of funding.
    20     (a)  General rule.--All moneys made available and required to
    21  be used for capital projects, asset maintenance and other
    22  programs specified in this section shall be distributed in
    23  accordance with the formula specified in this section and used
    24  strictly in accordance with section 1311 (relating to use of
    25  funds distributed).
    26     (b)  Distribution procedure.--During each fiscal year,
    27  capital project, asset maintenance and other program funds shall
    28  be distributed as follows:
    29         (1)  On or before the fifth day of each month, the
    30     Treasury Department shall certify to the department the total
    20050S0301B0313                 - 26 -     

     1     amount then available for distribution, and the department
     2     shall make distribution of payments required under this
     3     subsection on or before the 20th day of each month.
     4         (2)  Beginning in the 1991-1992 fiscal year, each month,
     5     the Treasury Department shall pay one-twelfth of the
     6     Department of Transportation project management oversight
     7     share for that fiscal year into the General Fund. The moneys
     8     so transferred are hereby appropriated to the Department of
     9     Transportation for use by that department for expenses
    10     related to project management and oversight of capital and
    11     asset maintenance projects funded pursuant to this section.
    12         (3)  Each month, the Treasury Department shall pay one-
    13     twelfth of the community transportation program section 1310
    14     share for that fiscal year into the General Fund. The funds
    15     so transferred are hereby appropriated to the Department of
    16     Transportation to make grants to counties, pursuant to
    17     section 1312 (relating to community transportation programs),
    18     for the purpose of funding capital projects of community
    19     transportation programs.
    20         (4)  Each month, the Treasury Department shall pay the
    21     planning, development, research, rural expansion and
    22     department-initiated programs section 1310 share for that
    23     month into the General Fund. The funds so transferred are
    24     hereby appropriated to the Department of Transportation to
    25     incur costs directly or to make grants to local
    26     transportation organizations or transportation companies, or
    27     entities which seek to become local transportation
    28     organizations or transportation companies, pursuant to
    29     section 1312, for the purpose of funding planning,
    30     development, research, rural expansion and department-
    20050S0301B0313                 - 27 -     

     1     initiated programs.
     2         (5)  Each month, the department shall distribute one-
     3     twelfth of the Class 4 transit entity section 1310 share to
     4     Class 4 transit entities in the manner provided in this
     5     paragraph. Each Class 4 transit entity shall receive a
     6     portion of each monthly distribution of the Class 4 transit
     7     entity section 1310 share as follows:
     8             (i)  Fifty percent of the monthly distribution of the
     9         Class 4 transit entity section 1310 share shall be
    10         distributed to Class 4 transit entities based upon each
    11         transit entity's Class 4 operating assistance grant
    12         section 1310 percentage. The actual amount received by
    13         each Class 4 transit entity under this subparagraph shall
    14         be determined by multiplying a particular Class 4 transit
    15         entity's Class 4 operating assistance grant section 1310
    16         percentage times the total amount available for
    17         distribution under this subparagraph.
    18             (ii)  Twenty-five percent of the monthly distribution
    19         of the Class 4 transit entity section 1310 share shall be
    20         distributed to Class 4 transit entities based upon each
    21         transit entity's Class 4 revenue mile section 1310
    22         percentage. The actual amount received by each Class 4
    23         transit entity under this subparagraph shall be
    24         determined by multiplying a particular Class 4 transit
    25         entity's Class 4 revenue mile section 1310 percentage
    26         times the total amount available for distribution under
    27         this subparagraph.
    28             (iii)  Twenty-five percent of the monthly
    29         distribution of the Class 4 transit entity section 1310
    30         share shall be distributed to Class 4 transit entities
    20050S0301B0313                 - 28 -     

     1         based upon each transit entity's Class 4 revenue hour
     2         section 1310 percentage. The actual amount received by
     3         each Class 4 transit entity under this subparagraph shall
     4         be determined by multiplying a particular Class 4 transit
     5         entity's Class 4 [transit entity] revenue hour section
     6         1310 percentage times the total amount available for
     7         distribution under this subparagraph.
     8         (6)  Each month, after providing for payment of the
     9     portion of the Department of Transportation project
    10     management oversight share, the community transportation
    11     program section 1310 share, the planning, development,
    12     research, rural expansion and department-initiated programs
    13     section 1310 share and the Class 4 transit entity section
    14     1310 share to be distributed that month, the department shall
    15     distribute all remaining capital project, asset maintenance
    16     and other program funds in accordance with the formula
    17     included in this section, until the total net revenue
    18     distributed from the Pennsylvania Transportation Assistance
    19     Fund reaches a total of $200 million during a single fiscal
    20     year. Any net revenue available in the Pennsylvania
    21     Transportation Assistance Fund in excess of $200,000,000 for
    22     a single fiscal year shall be distributed under the formula
    23     contained in section 1310.2 (relating to service
    24     stabilization and state of good repair program). Funds shall
    25     be distributed according to the formulas of this section as
    26     follows:
    27             (i)  Each Class 1 transit entity shall receive a
    28         prorata share of the Class 1 transit entity section 1310
    29         share. If there is only one Class 1 transit entity, it
    30         shall receive the entire Class 1 transit entity section
    20050S0301B0313                 - 29 -     

     1         1310 share.
     2             (ii)  Each Class 2 transit entity shall receive a
     3         prorata share of the Class 2 transit entity section 1310
     4         share. If there is only one Class 2 transit entity, it
     5         shall receive the entire Class 2 transit entity section
     6         1310 share.
     7             (iii)  Each Class 3 transit entity shall receive a
     8         portion of the Class 3 transit entity section 1310 share
     9         as follows:
    10                 (A)  Sixteen and sixty-seven hundredths percent
    11             of the Class 3 transit entity section 1310 share
    12             shall be distributed to Class 3 transit entities
    13             based upon each transit entity's Class 3 vehicle mile
    14             section 1310 percentage. The actual amount received
    15             by each Class 3 transit entity under this clause
    16             shall be determined by multiplying a particular Class
    17             3 transit entity's Class 3 vehicle mile section 1310
    18             percentage times the total amount available for
    19             distribution under this clause.
    20                 (B)  Sixteen and sixty-seven hundredths percent
    21             of the Class 3 transit entity section 1310 share
    22             shall be distributed to Class 3 transit entities
    23             based upon each transit entity's Class 3 vehicle hour
    24             section 1310 percentage. The actual amount received
    25             by each Class 3 transit entity under this clause
    26             shall be determined by multiplying a particular Class
    27             3 transit entity's Class 3 vehicle hour section 1310
    28             percentage times the total amount available for
    29             distribution under this clause.
    30                 (C)  Sixteen and sixty-six hundredths percent of
    20050S0301B0313                 - 30 -     

     1             the Class 3 transit entity section 1310 share shall
     2             be distributed to Class 3 transit entities based upon
     3             each transit entity's Class 3 total passenger section
     4             1310 percentage. The actual amount received by each
     5             Class 3 transit entity under this clause shall be
     6             determined by multiplying a particular Class 3
     7             transit entity's Class 3 total passenger section 1310
     8             percentage times the total amount available for
     9             distribution under this clause.
    10                 (D)  Twenty-five percent of the Class 3 transit
    11             entity section 1310 share shall be distributed to
    12             Class 3 transit entities based upon each transit
    13             entity's Class 3 Federal operating cap percentage.
    14             The actual amount received by each Class 3 transit
    15             entity under this clause shall be determined by
    16             multiplying a particular Class 3 transit entity's
    17             Class 3 Federal operating cap percentage times the
    18             total amount available for distribution under this
    19             clause.
    20                 (E)  Twenty-five percent of the Class 3 transit
    21             entity section 1310 share shall be distributed to
    22             Class 3 transit entities based upon each transit
    23             entity's Class 3 State operating grant percentage.
    24             The actual amount received by each Class 3 transit
    25             entity under this clause shall be determined by
    26             multiplying a particular Class 3 transit entity's
    27             Class 3 State operating grant percentage times the
    28             total amount available for distribution under this
    29             clause.
    30     (c)  Change of classification.--If, during any fiscal year,
    20050S0301B0313                 - 31 -     

     1  either the number of vehicles operated by a local transportation
     2  organization or transportation company or the area served by
     3  such a local transportation organization or transportation
     4  company changes so that the local transportation organization or
     5  transportation company meets the criteria for a different
     6  transit entity class, as such criteria are set forth in section
     7  1301 (relating to definitions), on or before July 15 of the
     8  fiscal year which follows such a change and in each fiscal year
     9  thereafter, the department shall reflect any change in the
    10  transit entity class of such a local transportation organization
    11  or transportation company in the Department of Transportation
    12  certification for that and subsequent fiscal years. In its
    13  calculation of the transit entity section 1310 shares for each
    14  transit entity class required by subsection (g)(1) and the
    15  transit entity [section 1310.1] sections 1310.1 and 1310.2
    16  shares for each transit entity class required by subsection
    17  (g)(1) for the fiscal year following the change in a local
    18  transportation organization or transportation company's transit
    19  entity class and thereafter, the department shall include the
    20  amount of the transit entity sections 1310 [and 1310.1], 1310.1
    21  and 1310.2 shares allocated to such a local transportation
    22  organization or transportation company for the fiscal year prior
    23  to the change in the transit entity class, in the transit entity
    24  sections 1310 [and 1310.1], 1310.1 and 1310.2 shares for the new
    25  transit entity class of such a local transportation organization
    26  or transportation company, and shall delete an equal amount from
    27  the transit entity sections 1310 [and 1310.1], 1310.1 and 1310.2
    28  shares for the transit entity class for which such a local
    29  transportation organization or transportation company no longer
    30  meets the criteria in the new fiscal year. No local
    20050S0301B0313                 - 32 -     

     1  transportation organization or transportation company which has
     2  changed from one transit entity class to another due to either
     3  an increase in the number of vehicles operated or the United
     4  States Census Bureau's declaring its service area an urbanized
     5  area shall receive less than the amount transferred on its
     6  account by the department pursuant to this section[.] in the
     7  first year after the transfer is made. Thereafter, the amount
     8  initially transferred and made available to the local
     9  transportation organization or transportation company shall be
    10  adjusted each year by the same percentage that the transit
    11  entity sections 1310, 1310.1 and 1310.2 shares for the new
    12  transit entity class of such a local transportation organization
    13  or transportation company increase or decrease during that year.
    14         (1)  For any Class 3 or Class 4 transit entity receiving
    15     an allocation of funding through more than one transit entity
    16     section 1310 or 1310.1 shares as of the effective date of
    17     this paragraph, such system may continue to receive such
    18     multiple allocations under this section and section 1310.1
    19     (relating to supplemental public transportation assistance
    20     funding) and may also receive such multiple allocations under
    21     section 1310.2, so long as such system continues to operate
    22     services that would independently qualify under each of the
    23     classes for which that transit entity is receiving an
    24     allocation. The share such a system shall receive from each
    25     transit entity class share shall represent the share earned
    26     solely by service which qualifies under that transit entity
    27     class share's category and shall not be duplicative of
    28     service earning an allocation under any other transit entity
    29     class share.
    30         (2)  Should a new local transportation organization or
    20050S0301B0313                 - 33 -     

     1     transportation company be established and meet the criteria
     2     of a Class 1 transit entity, Class 2 transit entity, Class 3
     3     transit entity or Class 4 transit entity as such criteria are
     4     set forth in this section and sections 1310.1 and 1310.2, the
     5     department shall make an appropriate adjustment in its
     6     calculation of the transit entity 1310 share, the 1310.1
     7     share and the 1310.2 share for each transit entity class to
     8     which such local transportation organization or
     9     transportation company shall be entitled. This determination
    10     shall include, but shall not be limited to, an appropriate
    11     adjusted based grant for that local transportation
    12     organization or transportation company and a determination of
    13     appropriate adjustments to class percentages or transit
    14     entity shares.
    15     (d)  Oversight.--The department shall initiate and maintain a
    16  program of review and oversight for any projects receiving funds
    17  distributed pursuant to this section [and section 1310.1
    18  (relating to supplemental public transportation assistance
    19  funding)] and sections 1310.1, 1310.2 and 1310.3 (relating to
    20  major capital initiative program). The department is authorized
    21  to perform independent financial audits of the financial
    22  statements of each local transportation organization,
    23  transportation company or community transportation program
    24  receiving moneys pursuant to this section. These audits shall be
    25  conducted in accordance with generally accepted auditing
    26  standards. Any financial statements subject to the audit or
    27  reports resulting from the audit shall be prepared and presented
    28  in accordance with generally accepted accounting principles,
    29  consistently applied with previous statements rendered for or on
    30  behalf of such organization or company. The department may
    20050S0301B0313                 - 34 -     

     1  coordinate such audits in conjunction with audits undertaken by
     2  the Auditor General.
     3     (e)  Fiscal year and capital budget.--
     4         (1)  The governing body of each local transportation
     5     organization or transportation company shall establish a
     6     fiscal year for capital programs. No later than the last day
     7     of each fiscal year for capital programs, each local
     8     transportation organization or transportation company
     9     receiving moneys pursuant to this section shall adopt a
    10     capital budget and an asset maintenance spending plan for
    11     submission to the department.
    12         (2)  The capital budget shall include the following:
    13             (i)  A description of any such project.
    14             (ii)  The projected cost of any project to be
    15         undertaken, including supporting cash flow.
    16             (iii)  The duration of any such project, including
    17         the projected starting date, completion date and
    18         projected useful life of the project.
    19             (iv)  The proposed funding sources for any project.
    20             (v)  A description of projects completed in the prior
    21         fiscal year and their impact on operations.
    22             (vi)  A description of progress to date on projects
    23         initiated in the prior fiscal year but not yet completed.
    24             (vii)  An explanation of any significant project
    25         delays.
    26             (viii)  The use of funds under this section in the
    27         prior fiscal year, including projects for which they were
    28         used.
    29             (ix)  A multiyear plan for future use of funds
    30         received under this section for a period of not less than
    20050S0301B0313                 - 35 -     

     1         five years.
     2             (x)  Any other matter desired by the governing body
     3         of such local transportation organization or
     4         transportation company.
     5         (3)  The asset maintenance spending plan shall include:
     6             (i)  The amount of moneys expended for asset
     7         maintenance costs.
     8             (ii)  The purposes for which such funds were
     9         expended.
    10             (iii)  Those asset maintenance costs which are
    11         projected to be funded during the subsequent twelve
    12         months by the local transportation organization or
    13         transportation company.
    14             (iv)  A multiyear plan for future use of funds
    15         received under this section for a period of not less than
    16         five years.
    17         (4)  The capital budget and the asset maintenance
    18     spending plan shall be established by formal action of the
    19     governing body of such local transportation organization or
    20     transportation company following an opportunity for comment
    21     by the public and the department. Upon submission, the
    22     department will review and may make recommendations to the
    23     local transportation organization or transportation company
    24     concerning the capital budget and asset maintenance spending
    25     plan.
    26         (5)  The capital budget and the asset maintenance
    27     spending plan may be amended by formal action of the
    28     governing body of such local transportation organization or
    29     transportation company from time to time. Any amendments to
    30     the capital budget and the asset maintenance spending plan
    20050S0301B0313                 - 36 -     

     1     shall be transmitted to the department for its review, and
     2     the department may make recommendations to the local
     3     transportation organization or transportation company
     4     concerning any amendments to the capital budget and the asset
     5     maintenance spending plan.
     6     (f)  Definitions.--As used in this section, the following
     7  words and phrases shall have the meanings given to them in this
     8  subsection:
     9     "Capital project, asset maintenance and other program funds."
    10  Moneys made available to finance capital projects and asset
    11  maintenance costs of local transportation organizations,
    12  transportation companies or community transportation programs or
    13  to fund other programs specified in this section from:
    14         (1)  any fund of the Commonwealth where the legislation
    15     creating such fund references this part and states that some
    16     or all of the moneys in such fund are to be used to finance
    17     capital projects and asset maintenance costs of local
    18     transportation organizations, transportation companies or
    19     community transportation programs and to fund certain other
    20     programs; or
    21         (2)  any other source, where such moneys are made
    22     available specifically to finance capital projects and asset
    23     maintenance costs of local transportation organizations,
    24     transportation companies or community transportation programs
    25     in accordance with this section.
    26     "Class 1 section 1310 percentage."  Seventy and three-tenths
    27  percent.
    28     "Class 2 section 1310 percentage."  Twenty-five and four-
    29  tenths percent.
    30     "Class 3 section 1310 percentage."  Four and three-tenths
    20050S0301B0313                 - 37 -     

     1  percent.
     2     "Class 1 to 3 section 1310 allocation."  The total amount of
     3  capital project, asset maintenance and other program funds
     4  available for distribution by the Treasury Department during a
     5  particular month, less:
     6         (1)  the amount of the Department of Transportation
     7     project management oversight share to be paid each month
     8     under subsection (b)(2);
     9         (2)  the amount of the community transportation program
    10     section 1310 share to be paid each month under subsection
    11     (b)(3);
    12         (3)  the amount of the planning, development, research,
    13     rural expansion and department-initiated programs section
    14     1310 share; and
    15         (4)  the amount of the Class 4 transit entity section
    16     1310 share to be paid each month under subsection (b)(5).
    17     "Class 1 transit entity section 1310 share."  The product of
    18  the Class 1 section 1310 percentage times the Class 1 to 3
    19  section 1310 allocation.
    20     "Class 2 transit entity section 1310 share."  The product of
    21  the Class 2 section 1310 percentage times the monthly Class 1 to
    22  3 allocation.
    23     "Class 3 transit entity section 1310 share."  The product of
    24  the Class 3 section 1310 percentage times the monthly Class 1 to
    25  3 allocation.
    26     "Class 4 transit entity section 1310 share."  Four million
    27  dollars during the 1991-1992 fiscal year and $4,160,000 during
    28  the 1992-1993 fiscal year. During the 1993-1994 through 1996-
    29  1997 fiscal years, the term shall mean the Class 4 transit
    30  entity section 1310 share for the prior fiscal year plus (or
    20050S0301B0313                 - 38 -     

     1  minus) the product of the Class 4 transit entity section 1310
     2  share for the prior fiscal year times the percentage increase or
     3  decrease in the total funds available for distribution pursuant
     4  to this section received by the Treasury Department in the most
     5  recently completed fiscal year as compared with the prior fiscal
     6  year. For the 1997-1998 fiscal year and each fiscal year
     7  thereafter, the term shall mean 2.8% of the total amount of
     8  capital project, asset maintenance and other program funds
     9  projected by the department to be available under this section
    10  for distribution during the subject fiscal year.
    11     "Class 3 Federal operating cap percentage."  The percentage
    12  determined by dividing the Federal operating ceiling for a Class
    13  3 transit entity by the total Federal operating ceilings for all
    14  Class 3 transit entities.
    15     "Class 3 State operating grant percentage."  The percentage
    16  determined by dividing the State subsidy received pursuant to
    17  section 1303 (relating to annual appropriation and computation
    18  of subsidy) during fiscal year 1990-1991 by a Class 3 transit
    19  entity as stated in the latest Department of Transportation
    20  certification by the total State subsidies received pursuant to
    21  section 1303 during fiscal year 1990-1991 by all Class 3 transit
    22  entities as stated in the latest Department of Transportation
    23  certification. For purposes of calculating the amount received
    24  by a Class 3 transit entity pursuant to section 1303, any
    25  Federal funds transferred from other local transportation
    26  organizations and transportation companies from the Federal
    27  fiscal year 1990-1991 Governor's apportionment allocation,
    28  contained in the Urban Mass Transportation Act of 1964, shall be
    29  considered to be amounts received pursuant to section 1303.
    30     "Class 3 total passenger section 1310 percentage."  The
    20050S0301B0313                 - 39 -     

     1  percentage determined by dividing the total passengers
     2  transported by a Class 3 transit entity as stated in the latest
     3  Department of Transportation certification by the total number
     4  of passengers transported by all Class 3 transit entities as
     5  stated in the latest Department of Transportation certification.
     6     "Class 3 vehicle hour section 1310 percentage."  The
     7  percentage determined by dividing the vehicle hours of a Class 3
     8  transit entity as stated in the latest Department of
     9  Transportation certification by the total number of vehicle
    10  hours of all Class 3 transit entities as stated in the latest
    11  Department of Transportation certification.
    12     "Class 3 vehicle mile section 1310 percentage."  The
    13  percentage determined by dividing the vehicle miles of a Class 3
    14  transit entity as stated in the latest Department of
    15  Transportation certification by the total number of vehicle
    16  miles of all Class 3 transit entities as stated in the latest
    17  Department of Transportation certification.
    18     "Class 4 operating assistance grant section 1310 percentage."
    19  The percentage determined by dividing the Class 4 transit entity
    20  adjusted base grant received by a Class 4 transit entity or,
    21  only for purposes of calculating the distribution of funding
    22  under section 1310.2 (relating to service stabilization and
    23  state of good repair program), the amount received in the most
    24  recent fiscal year prior to the effective date of this
    25  definition from the planning, development, research, rural
    26  expansion and department-initiated programs section 1310 shares
    27  adjusted by the Department of Transportation to account for
    28  Federal participation by the total Class 4 transit entity
    29  adjusted base grants received pursuant to such act by all Class
    30  4 transit entities during fiscal year 1990-1991 as stated in the
    20050S0301B0313                 - 40 -     

     1  Department of Transportation certification[.] plus, only for
     2  purposes of calculating the distribution of funding under
     3  section 1310.2, the total Class 4 grants received in the most
     4  recent fiscal year prior to the effective date of this
     5  definition from the planning, development, research, rural
     6  expansion and department-initiated programs section 1310 shares
     7  adjusted by the department to account for Federal participation
     8  for start-up and operations of transit services by systems
     9  qualified as Class 4 transit entities.
    10     "Class 4 revenue hour section 1310 percentage."  The
    11  percentage determined by dividing the revenue hours of a Class 4
    12  transit entity as stated in the latest Department of
    13  Transportation certification by the total number of revenue
    14  hours of all Class 4 transit entities as stated in the latest
    15  Department of Transportation certification.
    16     "Class 4 revenue mile section 1310 percentage."  The
    17  percentage determined by dividing the revenue miles of a Class 4
    18  transit entity as stated in the latest Department of
    19  Transportation certification by the total number of revenue
    20  miles of all Class 4 transit entities as stated in the latest
    21  Department of Transportation certification.
    22     "Community transportation program section 1310 share."  One
    23  million seven hundred thousand dollars during the 1991-1992
    24  fiscal year, $1,768,000 during the 1992-1993 fiscal year and,
    25  during the 1993-1994 fiscal year and each fiscal year
    26  thereafter, shall mean the community transportation program
    27  section 1310 share for the prior fiscal year plus (or minus) the
    28  product of the community transportation program section 1310
    29  share for the prior fiscal year times the percentage increase or
    30  decrease in the total funds available for distribution pursuant
    20050S0301B0313                 - 41 -     

     1  to this section received by the Treasury Department in the most
     2  recently completed fiscal year as compared with the prior fiscal
     3  year. However, in any fiscal year in which the total funds
     4  authorized to be expended from the State Lottery Fund for
     5  purposes enumerated in section 1312 (relating to community
     6  transportation programs) is less than $600,000, the community
     7  transportation program section 1310 share shall be increased so
     8  that the sum of the community transportation program section
     9  1310 share plus the total amount of such moneys paid from the
    10  State Lottery Fund for purposes enumerated in section 1312 shall
    11  equal $2,300,000. The combined funding to any county for
    12  community transportation under sections 1310 (relating to
    13  distribution of funding) and 1312 shall not exceed $250,000 in
    14  any fiscal year.
    15     "Department of Transportation project management oversight
    16  share."  One million dollars during the 1991-1992 fiscal year
    17  and, during the 1992-1993 fiscal year and each fiscal year
    18  thereafter, shall mean $1,000,000 or 0.25% of the total amount
    19  of capital project, asset maintenance and other program funds
    20  available for distribution pursuant to this section received by
    21  the Treasury Department during the prior fiscal year, whichever
    22  is greater. These funds may be used at the discretion of the
    23  department for the following purposes: projects and services
    24  that contribute to the enhancement of public passenger
    25  transportation in this Commonwealth, including, but not limited
    26  to, project management oversight, planning, development,
    27  research, rural expansion, department-initiated programs and
    28  special projects.
    29     "Department of Transportation certification."  The
    30  certification by the Department of Transportation to the
    20050S0301B0313                 - 42 -     

     1  Treasury Department under subsection (g).
     2     "Department-initiated programs."  Mass transportation
     3  programs with a regional or Statewide application, including,
     4  without limitation, capital projects in support of intercity
     5  rail passenger service, capital projects in support of intercity
     6  bus service, transit safety initiatives, public-private
     7  transportation partnerships, rider sharing incentive programs,
     8  transportation management associations and other multimodal
     9  transportation management projects.
    10     "Federal operating ceiling."  The maximum amount of Federal
    11  funds permitted to be used by a Class 3 transit entity to
    12  subsidize transit operations, as published in the November 23,
    13  1990, Federal Register (or, where there is more than one transit
    14  entity in a region, the maximum amount of Federal funds which
    15  such Class 3 transit entity could have utilized to subsidize
    16  transit operations pursuant to the subregional allocation as
    17  specified in the applicable transportation improvement program)
    18  for fiscal year 1990-1991.
    19     "Planning, development, research, rural expansion and
    20  department-initiated programs section 1310 shares."  The sum of
    21  $83,333.33 plus 0.25% of the total capital project, asset
    22  maintenance and other program funds available for distribution
    23  by the Treasury Department during a particular month[.] pursuant
    24  to this section. These funds may be used at the discretion of
    25  the Department of Transportation for the following purposes:
    26  projects and services that contribute to the enhancement of
    27  public passenger transportation in this Commonwealth, including,
    28  but not limited to, project management oversight, planning,
    29  development, research, rural expansion, department-initiated
    30  programs and special projects.
    20050S0301B0313                 - 43 -     

     1     "Total passengers."  The total of all revenue passengers plus
     2  transfer passengers on second and successive rides of a local
     3  transportation organization or transportation company, which are
     4  funded in whole or in part by this part, with respect to the
     5  most recent fiscal year reported in the most recently issued
     6  Pennsylvania Mass Transit Statistical Report.
     7     "Transportation enrichment funds."  Funds provided through
     8  either the Department of Transportation project management
     9  oversight share or the planning, development, research, rural
    10  expansion and department-initiated programs section 1310 share.
    11     "Treasury Department."  The State Treasurer and the Treasury
    12  Department of the Commonwealth.
    13     (g)  Certification to Treasury Department.--On or before July
    14  15 of each fiscal year, the Department of Transportation shall
    15  calculate and certify to the Treasury Department the following:
    16         (1)  The Department of Transportation project management
    17     oversight share, the community transportation program
    18     sections 1310 [and 1310.1], 1310.1, 1310.2 and 1310.3 shares,
    19     the Class 1 transit entity sections 1310 [and 1310.1],
    20     1310.1, 1310.2 and 1310.3 shares, the Class 2 transit entity
    21     sections 1310 [and 1310.1], 1310.1, 1310.2 and 1310.3 shares,
    22     the Class 3 transit entity sections 1310 [and 1310.1], 1310.1
    23     and 1310.2 shares [and], the Class 4 transit entity sections
    24     1310 [and 1310.1 shares], 1310.1 and 1310.2 shares, the Class
    25     3 and Class 4 transit entities 1310.3 share and the Class 5
    26     transit entity 1310.2 share [and], the planning, development,
    27     research, rural expansion and department-initiated programs
    28     sections 1310 and 1310.1 shares and the intercity passenger
    29     rail service share.
    30         (2)  The names and addresses of each Class 1 transit
    20050S0301B0313                 - 44 -     

     1     entity, Class 2 transit entity, Class 3 transit entity [and],
     2     Class 4 transit entity and Class 5 transit entity and whether
     3     such program or entity is a Class 1 transit entity, Class 2
     4     transit entity, Class 3 transit entity [or], Class 4 transit
     5     entity[.] or Class 5 transit entity and for a Class 3 transit
     6     entity shall certify whether it is operating within the
     7     boundaries of a separate Class 1 transit entity's or Class 2
     8     transit entity's urbanized area for purposes of section
     9     1310.2(b)(5)(iii).
    10         (3)  The vehicle miles of each Class 3 transit entity,
    11     the total vehicle miles of all Class 3 transit entities, the
    12     Class 3 vehicle mile sections 1310 and 1310.1 percentages for
    13     each Class 3 transit entity, the vehicle hours of each Class
    14     3 transit entity, total vehicle hours of all Class 3 transit
    15     entities, the Class 3 vehicle hour sections 1310 and 1310.1
    16     percentages for each Class 3 transit entity, total passengers
    17     for each Class 3 transit entity, the total passengers for all
    18     Class 3 transit entities, the Class 3 total passenger
    19     sections 1310 and 1310.1 percentages for each Class 3 transit
    20     entity, the Federal operating ceiling for each Class 3
    21     transit entity, the Federal operating ceiling for all Class 3
    22     transit entities, the Federal operating cap percentage for
    23     each Class 3 transit entity, the State subsidy received
    24     pursuant to section 1303 (relating to annual appropriation
    25     and computation of subsidy) as described in the definition of
    26     "Class 3 State operating grant percentage" for each Class 3
    27     transit entity, the State subsidy received pursuant to
    28     section 1303 as described in the definition of "Class 3 State
    29     operating grant percentage" for all Class 3 transit entities,
    30     [and] the Class 3 State grant percentage for each Class 3
    20050S0301B0313                 - 45 -     

     1     transit entity[.], the amount of Federal formula funds
     2     received by each Class 3 transit entity during Federal fiscal
     3     year 2002-2003, the amount of Federal formula funds received
     4     by all Class 3 transit entities during Federal fiscal year
     5     2002-2003, the amount of Federal formula funds to be received
     6     by each Class 3 transit entity during the year in which
     7     section 1310.2 funds are to be distributed, the amount of
     8     Federal formula funds to be received by all Class 3 transit
     9     entities during the year in which section 1310.2 funds are to
    10     be distributed, the Class 3 transit entity section 1310.2
    11     Federal funding loss percentage for each Class 3 transit
    12     entity and the Class 3 transit entity section 1310.2 Federal
    13     funding loss for all Class 3 transit entities, the Class 3
    14     section 1310.2 Federal funding loss percentage for the fiscal
    15     year, the Class 3 section 1310.2 system growth percentage,
    16     the Class 3 entity section 1310.2 fixed-route revenue vehicle
    17     hour percentage for each Class 3 transit entity, the Class 3
    18     transit entity section 1310.2 fixed-route revenue vehicle
    19     hour percentage for all Class 3 transit entities, the Class 3
    20     transit entity section 1310.2 total revenue vehicle hour
    21     percentage for each Class 3 transit entity, and the Class 3
    22     transit entity section 1310.2 total revenue vehicle hour
    23     percentage for all Class 3 transit entities; the Class 4
    24     transit entity Class 4 operating assistance grant section
    25     1310 percentage; for each Class 4 transit entity the Class 4
    26     transit entity revenue mile section 1310 percentage; the
    27     Class 4 transit entity revenue hour section 1310 percentage;
    28     the Class 5 total annual bus, minivan, sedan, station wagon,
    29     van and vehicle inventory values; the Class 5 section 1310.2
    30     limited eligibility bus, minivan, sedan, station wagon, van
    20050S0301B0313                 - 46 -     

     1     total annual bus, minivan, sedan, station wagon, van and
     2     vehicle inventory values; and the limited eligibility Class 5
     3     transit entity section 1310.2 bus, minivan, sedan, station
     4     wagon, van and vehicle inventory values.
     5         (4)  The operating assistance grant received by each
     6     Class 4 transit entity during fiscal year 1990-1991 pursuant
     7     to the act of February 11, 1976 (P.L.14, No.10), known as the
     8     Pennsylvania Rural and Intercity Common Carrier Surface
     9     Transportation Assistance Act, the operating assistance grant
    10     received by all Class 4 transit entities during fiscal year
    11     1990-1991 pursuant to that act, the Class 4 operating
    12     assistance grant sections 1310 and 1310.1 percentages for
    13     each Class 4 transit entity, the revenue miles of each Class
    14     4 transit entity, the revenue miles of all Class 4 transit
    15     entities, the Class 4 revenue mile sections 1310 and 1310.1
    16     percentages of each Class 4 transit entity, the revenue hours
    17     for each Class 4 transit entity, the revenue hours for all
    18     Class 4 transit entities and the Class 4 revenue hour
    19     sections 1310 and 1310.1 percentages for each Class 4 transit
    20     entity.
    21     Section 3.  Section 1310.1(a) of Title 74 and the definition
    22  of "Class 4 operating assistance grant section 1310.1
    23  percentage" in subsection (c) are amended to read:
    24  § 1310.1.  Supplemental public transportation assistance
    25             funding.
    26     (a)  [General rule.--] Deposit of tax revenue.--
    27         (1)  Beginning July 1, 1997, through June 30, 2004, 1.22%
    28     of the money collected from the tax imposed under Article II
    29     of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
    30     Reform Code of 1971, up to a maximum of $75,000,000, shall be
    20050S0301B0313                 - 47 -     

     1     deposited in the Supplemental Public Transportation Account,
     2     which is established in the State Treasury. Within 30 days of
     3     the close of a calendar month, 1.22% of the taxes received in
     4     the prior calendar month shall be transferred to the account.
     5     [No funds in excess of $75,000,000 may be transferred to the
     6     account in any one fiscal year.]
     7         (2)  Beginning July 1, 2004, 1.22% of the money collected
     8     from the tax shall be deposited in the Supplemental Public
     9     Transportation Account. Any funds allocated to the account
    10     during a single fiscal year in excess of $75,000,000 shall be
    11     distributed according to the formula set forth in section
    12     1310.2 (relating to service stabilization and state of good
    13     repair program).
    14         (3)  The money in the account shall be used by the
    15     department for supplemental public transportation
    16     assistance[,] to be distributed under this section. Transit
    17     entities may use supplemental assistance moneys for any of
    18     the purposes enumerated in section 1311 (relating to use of
    19     funds distributed). In addition to those enumerated purposes,
    20     Class 1, 2 and 3 transit entities also may use the base
    21     supplemental assistance share for general operations. Class 4
    22     transit entities may use all supplemental assistance moneys
    23     for general operations.
    24     * * *
    25     (c)  Definitions.--As used in this section, the following
    26  words and phrases shall have the meanings given to them in this
    27  subsection. Any term used in this section but not defined in
    28  this subsection shall have the meaning given in section 1310(f):
    29     * * *
    30     "Class 4 operating assistance grant section 1310.1
    20050S0301B0313                 - 48 -     

     1  percentage."  The percentage determined by dividing the Class 4
     2  transit entity adjusted base grant received by a Class 4 transit
     3  entity, as stated in the latest Department of Transportation
     4  certification, or, only for purposes of calculating the
     5  distribution of funding under section 1310.2 (relating to
     6  service stabilization and state of good repair program), the
     7  amount received in the most recent fiscal year prior to the
     8  effective date of section 1310.2 from the planning, development,
     9  research, rural expansion and department-initiated programs
    10  section 1310 shares adjusted by the Department of Transportation
    11  to account for Federal participation by the total Class 4
    12  transit entity adjusted base grants received by all Class 4
    13  transit entities during fiscal year 1990-1991, as stated in the
    14  latest Department of Transportation certification[.] plus, only
    15  for purposes of calculating the distribution of funding under
    16  section 1310.2, the total Class 4 grants received in the most
    17  recent fiscal year prior to the effective date of this
    18  definition from the planning, development, research, rural
    19  expansion and department-initiated programs section 1310 shares
    20  adjusted by the Department of Transportation to account for
    21  Federal participation for start-up and operations of transit
    22  services by systems qualified as Class 4 transit entities.
    23     * * *
    24     Section 4.  Title 74 is amended by adding sections to read:
    25  § 1310.2.  Service stabilization and state of good repair
    26             program.
    27     (a)  Deposit of tax revenue.--
    28         (1)  Upon the effective date of this section, 3.3221% of
    29     the tax imposed under Article II of the act of March 4, 1971
    30     (P.L.6, No.2), known as the Tax Reform Code of 1971, shall be
    20050S0301B0313                 - 49 -     

     1     deposited in the Service Stabilization and State of Good
     2     Repair Account, which is established in the State Treasury.
     3     Within 30 days of the close of the calendar month, the taxes
     4     received in the prior calendar month shall be transferred to
     5     the account.
     6         (2)  The money in the account shall be used by the
     7     department for the service stabilization and state of good
     8     repair program. Transit entities may use service
     9     stabilization and state of good repair funds to finance
    10     public transportation services, stabilize service and fare
    11     levels, maintain transportation vehicles and facilities in a
    12     state of good repair, fund routine capital repair,
    13     rehabilitation, replacement and expansion of vehicles and
    14     facilities, asset maintenance programs and any other purpose
    15     enumerated in section 1311 (relating to use of funds
    16     distributed). A Class 1, Class 2, Class 3 or Class 4 transit
    17     entity may use the entire section 1310.2 share allocated to
    18     the transit entity for service stabilization or state of good
    19     repair programs at the discretion of the transit entity after
    20     notice of its plan for use of the funds, including a list of
    21     capital projects to be funded, is submitted to the department
    22     in accordance with section 1310.3(c)(i) (relating to major
    23     capital initiative program). A Class 5 entity may use funds
    24     as specified in section 1312(d) and (e) (relating to
    25     community transportation programs).
    26         (3)  Except where provisions of this chapter permit
    27     otherwise, funds provided in this section shall be matched by
    28     local or private funds in an amount equal to at least one-
    29     thirtieth of the project cost when funds are used for
    30     operating purposes and by local or private funds in an amount
    20050S0301B0313                 - 50 -     

     1     equal to at least one-thirtieth of the non-Federal share when
     2     funds are used for capital purposes. For capital projects,
     3     dedicated funds under sections 1310 (relating to distribution
     4     of funding), 1310.1 (relating to supplemental public
     5     transportation assistance funding), 1310.3 and this section
     6     may be used in combination with funds provided through an
     7     approved State capital budget or with each other to fund up
     8     to twenty-nine-thirtieths of the non-Federal share.
     9     (b)  Distribution procedure.--During each fiscal year,
    10  service stabilization and state of good repair program funds
    11  shall be distributed as 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 then available for distribution, and the department
    15     shall make distribution of payments required under this
    16     subsection on or before the 20th day of each month.
    17         (2)  Each month, the Treasury Department shall transfer
    18     one-twelfth of intercity passenger rail service section
    19     1310.2 percentage for that fiscal year into the General Fund.
    20     The moneys so transferred are hereby appropriated to the
    21     Department of Transportation for use by the department for
    22     expenses related to the support of intercity rail services
    23     throughout this Commonwealth pursuant to this section.
    24         (3)  Each month, the Treasury department shall transfer
    25     one-twelfth of the "jobs access/reverse commute project
    26     section 1310.2 share" for that fiscal year into the General
    27     Fund. The moneys so transferred are hereby appropriated to
    28     the Department of Transportation for use by that department
    29     for expenses related to the support of jobs access/reverse
    30     commute projects. These funds shall be used to match Federal
    20050S0301B0313                 - 51 -     

     1     funds provided for this purpose at a match ratio of $1 of
     2     State funds for each dollar of Federal funds. If the Federal
     3     program changes the required match amount, funds provided
     4     under this paragraph shall be provided to meet the new match
     5     requirement. In any year in which the entire amount
     6     appropriated under this paragraph is not needed to match
     7     available Federal funds, the remainder shall be distributed
     8     to Class 1, 2, 3, 4 and 5 transit entities under the formula
     9     included in this section.
    10         (4)  Each month, the department shall distribute one-
    11     twelfth of the Class 5 section 1310.2 percentage to Class 5
    12     transit entities in the manner provided in this paragraph.
    13     Each Class 5 transit entity shall receive a portion of each
    14     monthly distribution of the Class 5 transit entity section
    15     1310.2 percentage as follows:
    16             (i)  Class 5 transit entity annual total vehicle
    17         share. Fifty percent of the monthly distribution of the
    18         Class 5 section 1310.2 percentage shall be distributed
    19         among all eligible Class 5 transit entities based upon
    20         the formula below:
    21                 (A)  The department shall first calculate for the
    22             year for which the most recently submitted shared-
    23             ride vehicle inventory report has been submitted:
    24                     (I)  the Class 5 section 1310.2 total annual
    25                 bus inventory value;
    26                     (II)  the Class 5 section 1310.2 total annual
    27                 minivan inventory value;
    28                     (III)  the Class 5 section 1310.2 total
    29                 annual sedan inventory value;
    30                     (IV)  the Class 5 section 1310.2 total annual
    20050S0301B0313                 - 52 -     

     1                 station wagon inventory value;
     2                     (V)  the Class 5 section 1310.2 total annual
     3                 van inventory value; and
     4                     (VI)  the Class 5 section 1310.2 total annual
     5                 vehicle inventory value.
     6                 (B)  The department shall then calculate for each
     7             eligible Class 5 transit entity:
     8                     (I)  the Class 5 transit entity section
     9                 1310.2 total annual bus inventory;
    10                     (II)  the Class 5 transit entity section
    11                 1310.2 total annual minivan inventory value;
    12                     (III)  the Class 5 transit entity section
    13                 1310.2 total annual sedan inventory value;
    14                     (IV)  the Class 5 transit entity section
    15                 1310.2 total annual station wagon inventory
    16                 value;
    17                     (V)  the Class 5 transit entity section
    18                 1310.2 total annual van inventory value; and
    19                     (VI)  the Class 5 transit entity section
    20                 1310.2 total annual vehicle inventory value,
    21                 which is the sum of subclauses (I) through (V).
    22                 (C)  The department shall then divide each Class
    23             5 transit entity section 1310.2 annual vehicle
    24             inventory value calculated in clause (B) by the Class
    25             5 section 1310.2 total annual vehicle inventory value
    26             calculated in clause (A) to determine each Class 5
    27             transit entity's total vehicle inventory percentage.
    28                 (D)  The department shall then apply this
    29             percentage to the total available for distribution
    30             under subsection (b)(3)(i) and the result will be
    20050S0301B0313                 - 53 -     

     1             distributed to each Class 5 transit entity as its
     2             Class 5 transit entity total vehicle inventory share.
     3             (ii)  Limited eligibility Class 5 transit entity
     4         annual vehicle share. Fifty percent of the monthly
     5         distribution of the Class 5 section 1310.2 percentage
     6         shall be distributed among limited eligibility Class 5
     7         transit entities.
     8                 (A)  The department shall first calculate for the
     9             year for which the most recently submitted shared-
    10             ride vehicle inventory report has been submitted:
    11                     (I)  the Class 5 section 1310.2 limited
    12                 eligibility annual bus inventory value;
    13                     (II)  the Class 5 section 1310.2 limited
    14                 eligibility annual minivan inventory value;
    15                     (III)  the Class 5 section 1310.2 limited
    16                 eligibility annual sedan inventory value;
    17                     (IV)  the Class 5 section 1310.2 limited
    18                 eligibility annual station wagon inventory value;
    19                     (V)  the Class 5 section 1310.2 limited
    20                 eligibility annual van inventory value; and
    21                     (VI)  the Class 5 section 1310.2 limited
    22                 eligibility annual vehicle inventory value.
    23                 (B)  The department shall then calculate for each
    24             limited eligibility Class 5 transit entity:
    25                     (I)  the limited eligibility Class 5 transit
    26                 entity section 1310.2 annual bus inventory value;
    27                     (II)  the limited eligibility Class 5 transit
    28                 entity section 1310.2 annual minivan inventory
    29                 value;
    30                     (III)  the limited eligibility Class 5
    20050S0301B0313                 - 54 -     

     1                 transit entity 1310.2 annual sedan inventory
     2                 value;
     3                     (IV)  the limited eligibility Class 5 transit
     4                 entity section section 1310.2 annual station
     5                 wagon inventory value;
     6                     (V)  the Class 5 transit entity section
     7                 1310.2 limited annual van inventory value; and
     8                     (VI)  the limited eligibility Class 5 transit
     9                 entity section 1310.2 annual vehicle inventory
    10                 value, which is the sum of subclauses (I) through
    11                 (V).
    12                 (C)  The department shall then divide each Class
    13             5 transit entity section 1310.2 limited vehicle
    14             inventory value calculated in clause (B) by the Class
    15             5 section 1310.2 total limited vehicle inventory
    16             value calculated in clause (A) to determine each
    17             Class 5 transit entity's limited vehicle inventory
    18             percentage.
    19                 (D)  The department shall then apply this
    20             percentage to the total available for distribution
    21             under subsection (b)(3)(ii) and the result will be
    22             distributed to each limited eligibility Class 5
    23             transit entity as its Class 5 transit entity limited
    24             vehicle inventory share.
    25             (iii)  Each transit entity's Class 5 transit entity
    26         section 1310.2 share shall be the total of the results of
    27         the calculations performed in subparagraphs (i) and (ii).
    28         (5)  Each month, the department shall distribute one-
    29     twelfth of the Class 4 transit entity section 1310.2
    30     percentage to Class 4 transit entities in the manner provided
    20050S0301B0313                 - 55 -     

     1     in this paragraph. Each Class 4 transit entity shall receive
     2     a portion of each monthly distribution of the Class 4 transit
     3     entity section 1310.2 percentage in accordance with the
     4     formula defined in section 1310(b)(5).
     5         (6)  Each month, the department shall distribute one-
     6     twelfth of the Class 3 transit entity section 1310.2
     7     percentage to Class 3 transit entities in the manner provided
     8     in this paragraph. Each Class 3 transit entity shall receive
     9     a portion of each monthly distribution of the Class 3 transit
    10     entity section 1310.2 percentage as follows:
    11             (i)  Eighty percent of the monthly distribution of
    12         the Class 3 transit entity section 1310.2 share shall be
    13         distributed among Class 3 transit entities based upon the
    14         formula contained in section 1310(b)(6)(iii).
    15             (ii)  Ten percent of the monthly distribution of the
    16         Class 3 transit entity section 1310.2 share shall be
    17         distributed among Class 3 transit entities on the basis
    18         of loss of Federal funding, as follows:
    19                 (A)  To each Class 3 transit entity that has been
    20             subjected to a cut in Federal formula funds
    21             distributed under 49 U.S.C. § 5307 (relating to
    22             urbanized area formula grants) between the fiscal
    23             year prior to the fiscal year in which the section
    24             1310.2 funds are being distributed and Federal fiscal
    25             year 2002-2003 based on that Class 3 transit entity's
    26             Class 3 transit entity section 1310.2 Federal funding
    27             loss percentage.
    28                 (B)  In any year in which the total loss of
    29             Federal formula funds distributed under 49 U.S.C. §
    30             5307 experienced by all Class 3 transit entities
    20050S0301B0313                 - 56 -     

     1             between the fiscal year prior to the fiscal year in
     2             which the section 1310.2 funds are being distributed
     3             and Federal fiscal year 2002-2003 is less than 10% of
     4             the Class 3 transit entity section 1310.2 share, the
     5             remainder of such funds shall be added to the system
     6             growth set-aside and distributed under the formula in
     7             subparagraph (iii).
     8             (iii)  Ten percent of the monthly distribution of the
     9         Class 3 transit entity section 1310.2 share plus any
    10         excess identified in subparagraph (ii)(B) shall be
    11         distributed on the basis of growth of revenue vehicle
    12         hours, as follows:
    13                 (A)  Fifty percent of the system growth set-aside
    14             shall be distributed to each Class 3 transit entity
    15             based on that transit entity's Class 3 section 1310.2
    16             total revenue vehicle hour percentage. Every Class 3
    17             transit entity shall be deemed to have at least a 10%
    18             increase in total revenue vehicle hours during the
    19             relevant period. For Class 3 transit entities
    20             operating within the boundaries of a separate Class 1
    21             transit entity's or Class 2 entity's urbanized area,
    22             an additional 10% shall be added to the growth rate
    23             calculated after applying the calculation defined in
    24             this clause.
    25                 (B)  Fifty percent of the system growth set-aside
    26             shall be distributed to each Class 3 transit entity
    27             based on that transit entity's Class 3 section 1310.2
    28             fixed-route revenue vehicle hour percentage. Every
    29             Class 3 transit entity shall be deemed to have at
    30             least a 10% increase in fixed-route revenue vehicle
    20050S0301B0313                 - 57 -     

     1             hours during the relevant period. For Class 3 transit
     2             entities operating within the boundaries of a
     3             separate Class 1 transit entity's or Class 2 entity's
     4             urbanized area, an additional 10% shall be added to
     5             the growth rate calculated after applying the
     6             calculation defined in this clause.
     7                 (C)  For purposes of calculating each Class 3
     8             transit entity's share of the system growth set-
     9             aside, Class 3 transit entities operating public
    10             transportation services within the boundaries of a
    11             separate Class 1 transit entity's or Class 2 transit
    12             entity's urbanized area shall be included in the
    13             calculation and receive the appropriate share of the
    14             set-aside funds.
    15         (7)  Each month, the department shall distribute one-
    16     twelfth of the Class 2 transit entity section 1310.2
    17     percentage to Class 2 transit entities in the manner provided
    18     in this paragraph. Each Class 2 transit entity shall receive
    19     a pro rata share of the Class 2 transit entity section 1310.2
    20     percentage. If there is only one Class 2 transit entity, it
    21     shall receive the entire Class 2 transit entity section
    22     1310.2 percentage.
    23         (8)  Each month, the department shall distribute one-
    24     twelfth of the Class 1 transit entity section 1310.2
    25     percentage to Class 1 transit entities in the manner provided
    26     in this paragraph. Each Class 1 transit entity shall receive
    27     a pro rata percentage of the Class 1 transit entity section
    28     1310.2 percentage. If there is only one Class 1 transit
    29     entity, it shall receive the entire Class 1 transit entity
    30     section 1310.2 percentage.
    20050S0301B0313                 - 58 -     

     1     (c)  Alternative means of raising revenue or reducing
     2  expenses.--
     3         (1)  In conjunction with the use of funds allocated under
     4     the authority of this section for purposes of service
     5     stabilization and in order to maximize the benefit of such
     6     funds, a transit entity shall explore alternative means of
     7     raising revenue, including, but not limited to, real estate
     8     leases and rentals, equipment leases and rentals, contracting
     9     of services, the solicitation of competitive bids and
    10     awarding of contracts to the highest responsible bidder for
    11     both interior and exterior advertising on all transit entity
    12     equipment on which the public is charged a fare for riding.
    13         (2)  Notwithstanding any other provision of law, a
    14     transit entity may, at the option of its governing board,
    15     include the use of advertising on rail vehicles, both
    16     interior and exterior.
    17         (3)  Any activity undertaken in conformance with this
    18     section or any other provision concerning the use of
    19     alternative means of raising revenue shall and will be, in
    20     all respects and for all purposes, the performance of an
    21     essential governmental function conducted in furtherance of
    22     the public purposes of the transit entity and within the
    23     powers granted to it and any immunities which it enjoys. No
    24     activity undertaken in conformance with this section or any
    25     other provision concerning the use of alternative means of
    26     raising revenue shall subject a transit entity to pay any
    27     property taxes or assessments of any kind or nature
    28     whatsoever, now in existence or to be enacted in the future,
    29     whether imposed by the Commonwealth or by any political
    30     subdivision thereof, or by any other taxing authority.
    20050S0301B0313                 - 59 -     

     1         (4)  In no event shall a transit entity be required to
     2     pay any taxes or assessments of any kind whatsoever upon any
     3     property or the income therefrom acquired or used or
     4     permitted to be used for the purposes of this section.
     5     (d)  Definitions.--As used in this section, the following
     6  words and phrases shall have the meanings given to them in this
     7  subsection. Any term used in this section but not defined in
     8  this subsection shall have the meaning given in section 1301
     9  (relating to definitions), 1310(f) (relating to distribution of
    10  funding) or 1310.1(c) (relating to supplemental public
    11  transportation assistance funding), depending on where it
    12  appears.
    13     "All eligible Class 5 transit entities."  All nonprofit
    14  coordinators of the shared-ride lottery program for senior
    15  citizens excluding Class 1 and 2 transit entities but including
    16  nonprofit providers operating in the service area of a Class 1
    17  transit entity utilizing a brokerage license issued by the
    18  Pennsylvania Public Utility Commission, provided that a
    19  nonprofit provider operating in the service area of a Class 1
    20  transit entity utilizing a brokerage license issued by the
    21  Pennsylvania Public Utility Commission shall only be eligible if
    22  it has filed the same form with the Department of Transportation
    23  at the same time as other Class 5 entities. For the first year
    24  after the effective date of this section, however, such system
    25  shall be allowed to file a report for the year for which the
    26  department will use data from the other eligible Class 5
    27  entities within 30 days of the effective date.
    28     "Class 1 section 1310.2 percentage."  Sixty-one point eight
    29  percent.
    30     "Class 2 section 1310.2 percentage."  Twenty-two point five
    20050S0301B0313                 - 60 -     

     1  percent.
     2     "Class 3 section 1310.2 Federal funding loss percentage."
     3  Ten percent of the Class 3 section 1310.2 percentage up to a
     4  maximum of the total dollar amount of loss of Federal formula
     5  funds distributed under 49 U.S.C. § 5307 (relating to urbanized
     6  area formula grants) experienced by all Class 3 transit entities
     7  between the fiscal year prior to the fiscal year in which the
     8  section 1310.2 funds are being distributed and Federal fiscal
     9  year 2002-2003 divided by the total Class 3 section 1310.2
    10  percentage.
    11     "Class 3 section 1310.2 fixed-route revenue vehicle hour
    12  percentage."  Fifty percent of the Class 3 section 1310.2 system
    13  growth percentage.
    14     "Class 3 section 1310.2 percentage."  Five point six percent.
    15  Each Class 3 entity that is a recipient of these funds may use
    16  the funds for either service stabilization or capital projects,
    17  at its discretion so long as the requirements of section 1311
    18  are met.
    19     "Class 3 section 1310.2 revenue vehicle hour percentage."
    20  Fifty percent of the Class 3 section 1310.2 system growth
    21  percentage.
    22     "Class 3 section 1310.2 system growth percentage."  Ten
    23  percent of the Class 3 section 1310.2 percentage plus, for any
    24  fiscal year, the amount by which the Class 3 section 1310.2
    25  Federal funding loss percentage is less than 10% of the Class 3
    26  section 1310.2 percentage, divided by the Class 3 section 1310.2
    27  percentage.
    28     "Class 3 section 1310.2 total revenue vehicle hour
    29  percentage."  Fifty percent of the Class 3 section 1310.2 system
    30  growth percentage.
    20050S0301B0313                 - 61 -     

     1     "Class 3 transit entity section 1310.2 Federal funding loss
     2  percentage."  The number derived by subtracting the amount of
     3  funds received by each Class 3 transit entity that has been
     4  subjected to a cut in Federal formula funds distributed under 49
     5  U.S.C. § 5307 (relating to urbanized area formula grants) in the
     6  fiscal year prior to the fiscal year in which the section 1310.2
     7  funds are being distributed from the amount of funds received by
     8  that Class 3 transit entity during Federal fiscal year 2002-
     9  2003, divided by the total reduction in Federal formula funds
    10  for all Class 3 transit entities subjected to such a loss
    11  between the fiscal year prior to which the section 1310.2 funds
    12  are being distributed and Federal fiscal year 2002-2003.
    13     "Class 3 transit entity section 1310.2 fixed-route revenue
    14  vehicle hour percentage."  The number derived by subtracting a
    15  Class 3 transit entity's fixed-route revenue vehicle hours
    16  operated during fiscal year 1990-1991 from the fixed-route
    17  revenue vehicle hours operated by that Class 3 transit entity
    18  during the fiscal year two years prior to the fiscal year for
    19  which funding is being distributed and dividing that figure by
    20  the number derived by subtracting the total fixed-route revenue
    21  vehicle hours operated by all Class 3 transit entities during
    22  the fiscal year 1990-1991 from the total fixed-route revenue
    23  vehicle hours of service operated by all Class 3 transit
    24  entities during the fiscal year two years prior to the fiscal
    25  year for which funding is being distributed, except that every
    26  Class 3 transit entity shall be deemed to have at least a 10%
    27  increase in total fixed-route revenue vehicle hours and all
    28  Class 3 transit entities operating within the boundaries of a
    29  separate Class 1 transit entity's or Class 2 transit entity's
    30  urbanized area shall be credited an additional 10% of growth
    20050S0301B0313                 - 62 -     

     1  prior to performing the calculation. Data is to be based upon
     2  information published in the most recent Department of
     3  Transportation statistical report.
     4     "Class 3 transit entity section 1310.2 total revenue vehicle
     5  hour percentage."  The number derived by subtracting a Class 3
     6  transit entity's total revenue vehicle hours operated during
     7  fiscal year 1990-1991 from the total revenue vehicle hours
     8  operated by that Class 3 transit entity during the fiscal year
     9  two years prior to the fiscal year for which funding is being
    10  distributed and dividing that figure by the number derived by
    11  subtracting the total revenue vehicle hours operated by all
    12  Class 3 transit entities during the fiscal year 1990-1991 from
    13  the total revenue vehicle hours of service operated by all Class
    14  3 transit entities during the fiscal year two years prior to the
    15  fiscal year for which funding is being distributed, except that
    16  every Class 3 transit entity shall be deemed to have at least a
    17  10% increase in total revenue vehicle hours and all Class 3
    18  transit entities operating within the boundaries of a separate
    19  Class 1 transit entity's or Class 2 transit entity's urbanized
    20  area shall be credited an additional 10% of growth prior to
    21  performing the calculation. Data is to be based upon information
    22  published in the most recent Department of Transportation
    23  statistical report.
    24     "Class 4 section 1310.2 percentage."  Two point three
    25  percent. Each Class 4 transit entity that is a recipient of
    26  these funds may use the funds for either service stabilization
    27  or capital projects at its discretion so long as the
    28  requirements of section 1311 (relating to use of funds
    29  distributed) are met.
    30     "Class 5 section 1310.2 limited eligibility annual bus
    20050S0301B0313                 - 63 -     

     1  inventory value."  The total number of qualified buses reported
     2  to the Department of Transportation by limited eligibility Class
     3  5 transit entities on the most recently submitted vehicle
     4  inventory report multiplied by the value designated for that
     5  type of vehicle by the department.
     6     "Class 5 section 1310.2 limited eligibility annual minivan
     7  inventory value."  The total number of qualified minivans
     8  reported to the Department of Transportation by limited
     9  eligibility Class 5 transit entities on the most recently
    10  submitted vehicle inventory report multiplied by the value
    11  designated for that type of vehicle by the department.
    12     "Class 5 section 1310.2 limited eligibility annual sedan
    13  inventory value."  The total number of qualified sedans reported
    14  to the Department of Transportation by limited eligibility Class
    15  5 transit entities on the most recently submitted vehicle
    16  inventory report multiplied by the value designated for that
    17  type of vehicle by the department.
    18     "Class 5 section 1310.2 limited eligibility annual station
    19  wagon inventory value."  The total number of qualified station
    20  wagons reported to the Department of Transportation by limited
    21  eligibility Class 5 transit entities on the most recently
    22  submitted vehicle inventory report multiplied by the value
    23  designated for that type of vehicle by the department.
    24     "Class 5 section 1310.2 limited eligibility annual van
    25  inventory value."  The total number of qualified vans reported
    26  to the Department of Transportation by limited eligibility Class
    27  5 transit entities on the most recently submitted vehicle
    28  inventory report multiplied by the value designated for that
    29  type of vehicle by the department.
    30     "Class 5 section 1310.2 limited eligibility annual vehicle
    20050S0301B0313                 - 64 -     

     1  inventory value."  For a given year, the total of the Class 5
     2  section 1310.2 limited annual bus inventory value, the Class 5
     3  section 1310.2 limited annual minivan inventory value, the Class
     4  5 section 1310.2 limited annual sedan inventory value, the Class
     5  5 section 1310.2 limited annual station wagon inventory value
     6  and the Class 5 section 1310.2 limited annual van inventory
     7  value.
     8     "Class 5 section 1310.2 percentage."  Four point five percent
     9  Each Class 5 transit entity that is a recipient of these funds
    10  may use the funds for capital projects and for asset maintenance
    11  and emergency situation recovery to the extent permitted by
    12  section 1312 (relating to community transportation programs).
    13     "Class 5 section 1310.2 total annual bus inventory value."
    14  The total number of all qualified buses reported to the
    15  Department of Transportation on the most recently submitted
    16  vehicle inventory report multiplied by the value designated for
    17  that type of vehicle by the department.
    18     "Class 5 section 1310.2 total annual minivan inventory
    19  value."  The total number of all qualified minivans reported to
    20  the Department of Transportation on the most recently submitted
    21  vehicle inventory report multiplied by the value designated for
    22  that type of vehicle by the department.
    23     "Class 5 section 1310.2 total annual sedan inventory value."
    24  The total number of all qualified sedans reported to the
    25  Department of Transportation on the most recently submitted
    26  vehicle inventory report multiplied by the value designated for
    27  that type of vehicle by the department.
    28     "Class 5 section 1310.2 total annual station wagon inventory
    29  value."  The total number of all qualified station wagons
    30  reported to the Department of Transportation on the most
    20050S0301B0313                 - 65 -     

     1  recently submitted vehicle inventory report multiplied by the
     2  value designated for that type of vehicle by the department.
     3     "Class 5 section 1310.2 total annual van inventory value."
     4  The total number of all qualified vans reported to the
     5  Department of Transportation on the most recently submitted
     6  vehicle inventory report multiplied by the value designated for
     7  that type of vehicle by the department.
     8     "Class 5 section 1310.2 total annual vehicle inventory
     9  value."  For a given year, the total of the Class 5 section
    10  1310.2 total annual bus inventory value, the Class 5 section
    11  1310.2 total annual minivan inventory value, the Class 5 section
    12  1310.2 total annual sedan inventory value, the Class 5 section
    13  1310.2 total annual station wagon inventory value and the Class
    14  5 section 1310.2 total annual van inventory value.
    15     "Class 5 transit entity section 1310.2 share."  The total of
    16  the results of the calculations performed in subsection (b)(3).
    17     "Class 5 transit entity section 1310.2 total annual bus
    18  inventory value."  The total number of all qualified buses
    19  reported by an individual Class 5 transit entity to the
    20  Department of Transportation on the most recently submitted
    21  vehicle inventory report multiplied by the value designated for
    22  that type of vehicle by the department divided by the Class 5
    23  section 1310.2 total annual bus inventory value.
    24     "Class 5 transit entity section 1310.2 total annual minivan
    25  inventory value."  The total number of all qualified minivans
    26  reported by an individual Class 5 transit entity to the
    27  Department of Transportation on the most recently submitted
    28  vehicle inventory report multiplied by the value designated for
    29  that type of vehicle by the department divided by the Class 5
    30  section 1310.2 total annual minivan inventory value.
    20050S0301B0313                 - 66 -     

     1     "Class 5 transit entity section 1310.2 total annual sedan
     2  inventory value."  The total number of all qualified sedans
     3  reported by an individual Class 5 transit entity to the
     4  Department of Transportation on the most recently submitted
     5  vehicle inventory report multiplied by the value designated for
     6  that type of vehicle by the department divided by the Class 5
     7  section 1310.2 total annual sedan inventory value.
     8     "Class 5 transit entity section 1310.2 total annual station
     9  wagon inventory value."  The total number of all qualified
    10  station wagons reported by an individual Class 5 transit entity
    11  to the Department of Transportation on the most recently
    12  submitted vehicle inventory report multiplied by the value
    13  designated for that type of vehicle by the department divided by
    14  the Class 5 section 1310.2 total annual station wagon inventory
    15  value.
    16     "Class 5 transit entity section 1310.2 total annual van
    17  inventory value."  The total number of all qualified vans
    18  reported by an individual Class 5 transit entity to the
    19  Department of Transportation on the most recently submitted
    20  vehicle inventory report multiplied by the value designated for
    21  that type of vehicle by the department divided by the Class 5
    22  section 1310.2 total annual van inventory value.
    23     "Class 5 transit entity section 1310.2 annual vehicle
    24  inventory value."  For each Class 5 transit entity, for a given
    25  year, the sum of the total Class 5 transit entity section 1310.2
    26  annual bus inventory value, the total Class 5 transit entity
    27  section 1310.2 annual minivan inventory value, the total Class 5
    28  transit entity section 1310.2 annual sedan inventory value, the
    29  total Class 5 transit entity section 1310.2 annual station wagon
    30  inventory value and the total Class 5 transit entity section
    20050S0301B0313                 - 67 -     

     1  1310.2 annual van inventory value.
     2     "Fixed-route revenue vehicle hours."  The total number of
     3  hours operated in total public transportation revenue service by
     4  all vehicles belonging to or under contract to a Class 3 transit
     5  entity during a fiscal year.
     6     "Intercity passenger rail service."  Passenger railroad
     7  service connecting two or more urbanized areas and determined by
     8  the Department of Transportation to qualify as intercity service
     9  rather than commuter rail service.
    10     "Intercity passenger rail service section 1310.2 percentage."
    11  Three point four percent.
    12     "Intercity passenger rail service program."  Funds allocated
    13  to the Department of Transportation to support intercity
    14  passenger rail service. Program funds may be expended directly
    15  by the department, expended through contracts with outside
    16  entities or expended through grants in support of intercity
    17  passenger rail service. Eligible expenditures include, but are
    18  not limited to, program administration, studies, marketing,
    19  operating subsidies, contracts for service, preconstruction
    20  planning, engineering and design, capital projects, acquisition
    21  of right-of-way and project oversight and accountability.
    22     "Jobs access/reverse commute project."  A project funded by
    23  the Federal Transit Administration under the provisions of 49
    24  U.S.C. § 5309 (relating to discretionary grants and loans)
    25  related to the development or operation of transportation
    26  services designed to transport welfare recipients and eligible
    27  low-income individuals to and from jobs and activities related
    28  to their employment or to transport residents of urban areas,
    29  urbanized areas and areas other than urbanized areas to suburban
    30  workplaces.
    20050S0301B0313                 - 68 -     

     1     "Jobs access/reverse commute project section 1310.2 share."
     2  Ten million dollars.
     3     "Limited eligibility Class 5 transit entity."  All nonprofit
     4  coordinators of the shared-ride lottery program for senior
     5  citizens except for a coordinator operating in a county of the
     6  first or second class, nonprofit providers operating in a city
     7  of the first class utilizing a brokerage license issued by the
     8  Pennsylvania Public Utility Commission or any otherwise-
     9  qualified Class 5 transit entity that contracts with a private
    10  for-profit operator which is regulated by the Pennsylvania
    11  Public Utility Commission if the Class 5 transit entity utilizes
    12  an approved fare structure developed by the for-profit operator
    13  with the intention of generating a profit.
    14     "Limited eligibility Class 5 transit entity section 1310.2
    15  annual bus inventory value."  The total number of qualified
    16  buses reported by an individual limited eligibility Class 5
    17  transit entity to the Department of Transportation on the most
    18  recently submitted vehicle inventory report multiplied by the
    19  value designated for that type of vehicle by the department
    20  divided by the Class 5 section 1310.2 limited annual bus
    21  inventory value.
    22     "Limited eligibility Class 5 transit entity section 1310.2
    23  annual minivan inventory value."  The total number of qualified
    24  minivans reported by an individual limited eligibility Class 5
    25  transit entity to the Department of Transportation on the most
    26  recently submitted vehicle inventory report multiplied by the
    27  value designated for that type of vehicle by the department
    28  divided by the Class 5 section 1310.2 limited annual bus
    29  inventory value.
    30     "Limited eligibility Class 5 transit entity section 1310.2
    20050S0301B0313                 - 69 -     

     1  annual sedan inventory value."  The total number of qualified
     2  sedans reported by an individual limited eligibility Class 5
     3  transit entity to the Department of Transportation on the most
     4  recently submitted vehicle inventory report multiplied by the
     5  value designated for that type of vehicle by the department
     6  divided by the Class 5 section 1310.2 limited annual sedan
     7  inventory value.
     8     "Limited eligibility Class 5 transit entity section 1310.2
     9  annual station wagon inventory value."  The total number of all
    10  qualified station wagons reported by an individual limited
    11  eligibility Class 5 transit entity to the Department of
    12  Transportation on the most recently submitted vehicle inventory
    13  report multiplied by the value designated for that type of
    14  vehicle by the department divided by the Class 5 section 1310.2
    15  limited annual station wagon inventory value.
    16     "Limited eligibility Class 5 transit entity section 1310.2
    17  annual van inventory value."  The total number of all qualified
    18  vans reported by an individual limited eligibility Class 5
    19  transit entity to the Department of Transportation on the most
    20  recently submitted vehicle inventory report multiplied by the
    21  value designated for that type of vehicle by the department
    22  divided by the Class 5 section 1310.2 limited annual van
    23  inventory value.
    24     "Limited eligibility Class 5 transit entity section 1310.2
    25  annual vehicle inventory value."  For each limited eligibility
    26  Class 5 transit entity, for a given year, the sum of the limited
    27  eligibility Class 5 transit entity section 1310.2 annual bus
    28  inventory value, the limited eligibility Class 5 transit entity
    29  section 1310.2 annual minivan inventory value, the limited
    30  eligibility Class 5 transit entity section 1310.2 annual sedan
    20050S0301B0313                 - 70 -     

     1  inventory value, the limited eligibility Class 5 transit entity
     2  section 1310.2 annual station wagon inventory value and the
     3  limited eligibility Class 5 transit entity section 1310.2 annual
     4  van inventory value.
     5     "Public transportation entity."  A Class 1, 2, 3, 4 or 5
     6  transit entity as defined in this chapter.
     7     "Qualified vehicle."  A qualified vehicle for purposes of
     8  calculating a Class 5 transit entity's section 1310.2 share
     9  shall be a bus, minivan, sedan, station wagon or van that is
    10  included on the most recently submitted Shared Ride Vehicle
    11  Inventory Report, is actively engaged in the provision of
    12  community transit services during the year in which it is
    13  reported and is insured during that year
    14     "Service stabilization."  The ability to retain adequate
    15  levels of service to meet passenger demand and maintain vehicles
    16  and facilities in safe, attractive condition at fares that will
    17  not result in ridership losses.
    18     "State of good repair programs."  Investment designed to
    19  ensure an existing transit entity remains in safe, operational,
    20  attractive condition, including, but not limited to, capital
    21  projects, vehicle overhaul, asset maintenance, infrastructure
    22  safety and renewal projects and environmental cleanup.
    23     "Total revenue vehicle hours."  The total number of hours
    24  operated in revenue service by all vehicles belonging to or
    25  under contract to a Class 3 transit entity during a fiscal year,
    26  regardless of the type of service offered by those vehicles.
    27     "Vehicle inventory report."  A listing of all vehicles used
    28  by Class 5 transit entities, by vehicle type, in a given year
    29  which must be submitted to the Department of Transportation in
    30  the format specified by the department to qualify as a recipient
    20050S0301B0313                 - 71 -     

     1  for section 1310.2 Class 5 funding.
     2  § 1310.3.  Major Capital Initiative Program.
     3     (a)  General rule.--Any funds dedicated for the use of public
     4  passenger transit entities out of General Fund revenues, the
     5  expenditure of which is permitted exclusively for major capital
     6  initiatives as defined in this section, shall be deposited in
     7  the Major Capital Initiative Account, which is established in
     8  the State Treasury. The money in the account shall be used by
     9  the Department of Transportation for the Major Capital
    10  Initiative Program and shall be distributed in accordance with
    11  this section. Transit entities may use major capital initiative
    12  funds to finance public transportation improvements that fit
    13  within the definition of "major capital initiative" in
    14  subsection (d).
    15     (b)  Distribution procedure.--During each fiscal year, major
    16  capital initiative program funds shall be distributed as
    17  follows:
    18         (1)  On or before the fifth day of each month, the
    19     Treasury Department shall certify to the department the total
    20     amount then available for distribution, and the department
    21     shall make distribution of payments required under this
    22     subsection on or before the 20th day of each month.
    23         (2)  Each month, the department shall distribute one-
    24     twelfth of the Class 1 transit entity section 1310.3
    25     percentage available during the fiscal year in which it is
    26     distributed to Class 1 transit entities in the manner
    27     provided in this paragraph. Each Class 1 transit entity shall
    28     receive a pro rata share of the Class 1 transit entity
    29     section 1310.3 percentage. If there is only one Class 1
    30     transit entity, it shall receive the entire Class 1 transit
    20050S0301B0313                 - 72 -     

     1     entity section 1310.3 percentage.
     2         (3)  Each month, the department shall distribute one-
     3     twelfth of the Class 2 transit entity section 1310.3
     4     percentage available during the fiscal year in which it is
     5     distributed to Class 2 transit entities in the manner
     6     provided in this paragraph. Each Class 2 transit entity shall
     7     receive a pro rata percentage of the class 2 transit entity
     8     section 1310.3 percentage. If there is only one Class 1
     9     transit entity, it shall receive the entire Class 1 transit
    10     entity section 1310.3 percentage.
    11         (4)  Each month, the department shall distribute one-
    12     twelfth of the Class 3 and Class 4 transit entity section
    13     1310.3 percentage available during the fiscal year in which
    14     it is distributed to the department. The department shall
    15     further distribute the funds to each Class 3 or Class 4
    16     transit entity that has a Major Capital Initiative Project
    17     included in the approved Major Capital Initiative Program
    18     plan for the fiscal year during which the funds are being
    19     distributed. Each Class 3 and Class 4 transit entity that
    20     receives major capital initiative funds under this subsection
    21     shall each month receive a percentage of the one-twelfth of
    22     the Class 3 and Class 4 transit entity section 1310.3
    23     percentage being distributed that is equal to the percentage
    24     its approved project represents of the total Major Capital
    25     Initiative Program for Class 3 and Class 4 transit entities
    26     approved for that fiscal year by the department.
    27     (c)  Program requirements.--
    28         (1)  The department shall develop an application process
    29     and criteria to evaluate requests for section 1310.3 major
    30     capital initiative program funds submitted by Class 3 and
    20050S0301B0313                 - 73 -     

     1     Class 4 transit entities. The application process and
     2     criteria shall be the same for both classes, and projects
     3     submitted by Class 3 and Class 4 transit entities shall be
     4     considered as one pool for purposes of evaluation.
     5         (2)  Within 90 days of the effective date of this
     6     section, each Class 3 and Class 4 transit entity that
     7     receives funds under section 1310.2 (relating to service
     8     stabilization and state of good repair) shall submit to the
     9     department a five-year plan for use of those funds,
    10     delineating which funds will be used for capital purposes and
    11     which funds will be used for operating purposes. When funding
    12     is made available for the purposes of this section, each
    13     Class 3 and Class 4 transit entity shall identify its
    14     projected need for major capital initiative funding during
    15     the five-year period in conjunction with its five-year plan
    16     for use of service stabilization and state of good repair
    17     funds. This plan may be amended at any time but must be
    18     updated at least once per year after the initial submission.
    19         (3)  Each year, by January 30, any Class 3 or Class 4
    20     transit entity that wishes to receive funds from the Class 3
    21     and Class 4 major capital initiative section 1310.3
    22     percentage during the following fiscal year shall submit to
    23     the department an application for such funds, including such
    24     information and in such form as the department shall require,
    25     except that a transit entity that wishes to receive major
    26     capital initiative funding during a period that exceeds one
    27     year shall only be required to submit a full application
    28     during the first year it seeks funds. Thereafter, it need
    29     only submit a progress report, an accounting of the funds
    30     spent and an estimate of the funding needed during the
    20050S0301B0313                 - 74 -     

     1     upcoming fiscal year.
     2         (4)  Major capital initiative funds may be used to match
     3     Federal funds available for capital purposes. For all
     4     federally funded programs distributed on a formula basis or
     5     individually through Congressional earmarks under
     6     discretionary funding programs other than the Federal New
     7     Start Program, section 1310.3 funds may provide local match-
     8     up to five-sixths of the required non-Federal match. For
     9     Federal funds provided through the Federal New Start Program,
    10     section 1310.3 funds may provide up to five-sixths of the
    11     non-Federal match currently required to meet the competitive
    12     requirements imposed by the United States Department of
    13     Transportation or the United States Congress, whichever is
    14     greater. Section 1310.3 funds may be combined with other
    15     funds provided under this title or through State bond funds
    16     to meet non-Federal matching requirements.
    17         (5)  All moneys distributed pursuant to section 1310.3
    18     shall be matched by local or private funding in an amount
    19     equal to at least one-thirtieth of the total project cost.
    20     Notwithstanding the above match requirement, however, a Class
    21     3 or Class 4 system may provide a lower level of local or
    22     private funding match, if and as approved by the department
    23     so long as the local or private funding equals at least one-
    24     thirtieth of the non-Federal share of the project.
    25     (d)  Definitions.--As used in this section, the following
    26  words and phrases shall have the meanings given to them in this
    27  subsection. Any term used in this section but not defined in
    28  this subsection shall have the meaning given in section 1301,
    29  1310(f), 1310.1(c) or 1310.2(c), depending on where it appears:
    30     "Class 1 section 1310.3 percentage."  Sixty percent.
    20050S0301B0313                 - 75 -     

     1     "Class 2 section 1310.3 percentage."  Twenty-four percent.
     2     "Classes 3 and 4 section 1310.3 percentage."  Sixteen
     3  percent.
     4     "Federal New Start Program."  The funding program authorized
     5  in 49 U.S.C. § 5309 (relating to capital investment grants and
     6  loans), permitting the Secretary of Transportation to make
     7  grants and loans for capital projects for new fixed guideway
     8  systems and extensions to existing fixed guideway systems, in
     9  accordance with the guidelines specified in 49 U.S.C. § 5309(e).
    10     "Major capital initiative."  A major capital project or
    11  program of projects designed to significantly expand or enhance
    12  an existing transit system for which funding under section 1310,
    13  1310.1 or 1310.2 programs is insufficient, including, but not
    14  limited to, the establishment of a new fixed guideway line or
    15  system or extension of a fixed guideway line or system under the
    16  Federal New Start Program; major construction or reconstruction
    17  of facilities; major fleet replacement; significant fleet
    18  expansion or other major capital projects.
    19  § 1310.4.  Keystone Initiative.
    20     (a)  General rule.--Upon the effective date of this section,
    21  0.378% of the money collected from the tax imposed under Article
    22  III of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
    23  Reform Code of 1971, shall be dedicated to the Keystone
    24  Initiative and shall be allocated to the Department of
    25  Transportation and expended for the purpose of bringing the
    26  Keystone Corridor into a state of good repair, maintaining it in
    27  such a state and making improvements if the level of funding
    28  exceeds the amount needed to maintain a state of good repair.
    29     (b)  Eligible projects.--Eligible projects include repair and
    30  improvement to all facets of the Keystone Corridor, including,
    20050S0301B0313                 - 76 -     

     1  but not limited to, track, track bed, catenary, power
     2  distribution, signals, stations and parking. Projects may
     3  benefit intercity and commuter rail systems operating in the
     4  Keystone Corridor.
     5     (c)  State share.--The State may provide up to twenty-nine
     6  thirtieths of total project cost. The remainder shall be
     7  provided by the operator of the rail system that is the primary
     8  beneficiary of the particular improvement. Where more than one
     9  rail system benefits from the improvement, each shall contribute
    10  to the non-State share in proportion to the benefits to that
    11  system. If the rail systems cannot agree on an apportionment of
    12  benefit, the department shall make that determination.
    13     (d)  Distribution of funds.--Eighty percent of the funds
    14  provided under this program shall be allocated on the basis of
    15  miles of rail service operated on the Keystone Corridor in the
    16  year prior to the distribution of funds and made available for
    17  improvements benefiting the rail system that operated those
    18  miles. The remainder of the funds may be allocated at the
    19  discretion of the department for projects in the Keystone
    20  Corridor. Projects that benefit more than one rail system may be
    21  combined. If there is an agreement between or among rail
    22  systems, any portion of this program may be reallocated
    23  temporarily, with the percentages restored to the donating rail
    24  system at the completion of the agreement, under the terms of
    25  the agreement.
    26     (e)  Definitions.--As used in this section, the following
    27  words and phrases shall have the meanings given to them in this
    28  subsection:
    29     "Keystone Corridor."  The rail line between Harrisburg,
    30  Pennsylvania and Philadelphia, Pennsylvania, including all
    20050S0301B0313                 - 77 -     

     1  facilities and stations within that distance.
     2     "Rail system."  A system operating passenger service on the
     3  Keystone Corridor, including both intercity passenger service
     4  and commuter rail service.
     5     Section 5.  Section 1311(b), (d) and (e)(3) of Title 74 are
     6  amended and the section is amended by adding a subsection to
     7  read:
     8  § 1311.  Use of funds distributed.
     9     * * *
    10     (b)  Funding purposes enumerated.--Moneys distributed
    11  pursuant to [section 1310] sections 1310, 1310.1 (relating to
    12  supplemental public transportation assistance funding), 1310.2
    13  (relating to service stabilization and state of good repair
    14  program) and 1310.3 (relating to Major Capital Initiative
    15  Program) shall be used by local transportation organizations and
    16  transportation companies for purposes of paying:
    17         (1)  all costs of capital projects, including, without
    18     limitation, the costs of acquisition, construction,
    19     installation, start-up costs of operations, improvement and
    20     all work and materials incident thereto, provided that funds
    21     expended for capital projects pursuant to [section 1310]
    22     sections 1310, 1310.1, 1310.2 and 1310.3 shall be matched by
    23     local or private funding in an amount equal to at least one-
    24     thirtieth of the [project cost] non-Federal share;
    25         (2)  debt service and the cost of issuance of bonds,
    26     notes and other evidences of indebtedness which a local
    27     transportation organization or transportation company is
    28     permitted to issue under any law of this Commonwealth; and
    29         (3)  to the extent permitted by this section, asset
    30     maintenance costs. Community transportation programs shall
    20050S0301B0313                 - 78 -     

     1     use moneys distributed pursuant to this section only for
     2     purposes enumerated in section 1312 (relating to community
     3     transportation programs).
     4     (b.1)  Utilization of funds.--All Class 3 and 4 transit
     5  entities may utilize all of the funds received pursuant to
     6  section 1310, 1310.1 or 1310.2 for any purpose in furtherance of
     7  public transportation, including capital, asset maintenance and
     8  operating.
     9     * * *
    10     (d)  Management of funds.--
    11         (1)  Each local transportation organization or
    12     transportation company receiving moneys pursuant to sections
    13     1310 and 1310.1 [(relating to supplemental public
    14     transportation assistance funding)] shall hold such moneys in
    15     an account separate from other funds of the local
    16     transportation organization or transportation company and
    17     shall invest such moneys until such funds are used in
    18     accordance with this section, with such funds being invested
    19     in accordance with the limits on investment of the local
    20     transportation organization or transportation company.
    21     Notwithstanding any other provisions of this chapter, any
    22     interest earned shall be used for capital projects and asset
    23     maintenance costs during any period as determined by the
    24     local transportation organization or transportation company.
    25         (2)  All moneys distributed pursuant to [section 1310]
    26     sections 1310, 1310.1 and 1310.2 and utilized for asset
    27     maintenance under subsection (e) shall be matched by local or
    28     private funding in an amount equal to at least 1/30 of the
    29     amount expended for such purposes, except that, in the case
    30     of Class 3 and 4 transit entities, no matching funds shall be
    20050S0301B0313                 - 79 -     

     1     required if the department shall have received from the local
     2     governmental funding source which would otherwise provide the
     3     matching funds a certification that compliance with the
     4     matching requirement would create an undue financial burden
     5     upon the local governmental funding source such that a
     6     curtailment of government services endangering public health
     7     and safety would ensue. Funds allocated to a Class 5 entity
     8     under section 1310.2 and utilized by that Class 5 transit
     9     entity for asset maintenance under section 1312 shall be
    10     matched by local or private funding in an amount equal to at
    11     least one-thirtieth of the amount expended for such purposes,
    12     except that no matching funds shall be required for funds
    13     utilized by a Class 5 transit entity for asset maintenance
    14     under section 1312 if the county in which the Class 5 transit
    15     entity is operating, provided that the county that subsidizes
    16     the service, or the nongovernmental entity that provides the
    17     largest amount of funds to the Class 5 transit entity and the
    18     board of the Class 5 transit entity provide a certification
    19     that compliance with the matching requirement would create an
    20     undue financial burden such that essential services of the
    21     county or nongovernmental entity would be curtailed.
    22         [(3)  All moneys distributed pursuant to section 1310.1
    23     and utilized under this section shall be matched by local or
    24     private funding in an amount equal to at least 1/30 of the
    25     amount expended for such purposes, except that, in the case
    26     of Class 3 and 4 transit entities, no funds utilized for
    27     asset maintenance under subsection (e) shall require a local
    28     match if the department shall have received from the local
    29     governmental funding source which would otherwise provide the
    30     matching funds a certification that compliance with the
    20050S0301B0313                 - 80 -     

     1     matching requirement would create an undue financial burden
     2     upon the local governmental funding source such that a
     3     curtailment of government services endangering public health
     4     and safety would ensue.]
     5     (e)  Asset maintenance.--
     6         * * *
     7         (3)  On or before March 1 of each year, the department
     8     shall certify to each local transportation organization or
     9     transportation company the amount of capital project, asset
    10     maintenance, base supplemental assistance and other program
    11     funds which the department estimates each local
    12     transportation organization or transportation company will be
    13     entitled to receive during the ensuing fiscal year. Each
    14     local transportation organization or transportation company
    15     may expend moneys distributed pursuant to sections 1310 and
    16     1310.1 shares to fund asset maintenance costs up to the
    17     following maximum percentages of the estimate from the
    18     department, including accrued interest, the amount received
    19     during the prior fiscal year or the amount actually received
    20     in the current fiscal year, whichever is greater:
    21             (i)  Class 1 transit entities may utilize for asset
    22         maintenance costs up to a maximum of 30% of the funds
    23         received pursuant to sections 1310 and 1310.1 shares.
    24             (ii)  Class 2 [and 3] transit entities may utilize
    25         for asset maintenance costs up to a maximum of 50% of the
    26         funds received pursuant to sections 1310 [and 1310.1],
    27         1310.1 and 1310.2.
    28             [(iv)  Class 4 transit entities may utilize for asset
    29         maintenance costs up to a maximum of 50% of the funds
    30         received pursuant to sections 1310 and 1310.1.]
    20050S0301B0313                 - 81 -     

     1     * * *
     2     Section 6.  Sections 1312 and 1315 of Title 74 are amended by
     3  adding subsections to read:
     4  § 1312.  Community transportation programs.
     5     * * *
     6     (d)  Class 5 transit entities.--A Class 5 transit entity may
     7  use all of its section 1310.2 funds for capital purposes, or at
     8  its option a limited eligibility Class 5 transit entity may use
     9  up to 50% of funds received pursuant to section 1310.2 (relating
    10  to service stabilization and state of good repair program) for
    11  asset maintenance purposes. In any year in which a limited
    12  eligibility Class 5 transit entity incurs a loss of passenger
    13  revenue and/or subsidy provided on the basis of number of
    14  passengers carried as a result of severe weather conditions or
    15  another extreme emergency, as determined by the department, that
    16  system may apply a sufficient portion of the funds it receives
    17  pursuant to section 1310.2 and which are eligible for use for
    18  asset maintenance purposes to cover the additional and/or
    19  unsubsidized expenses that it incurred as a result of such
    20  emergency. A Class 5 transit entity shall certify to the
    21  department each year, as part of its application, that the
    22  section 1310.2 funds made available to that Class 5 transit
    23  entity shall not be used to replace previously available funding
    24  provided by another source, including, but not limited to, the
    25  Medical Assistance Transportation Program.
    26  § 1315.  Public transportation grants management accountability.
    27     * * *
    28     (g)  Procurement.--A transit entity that receives funding
    29  under this chapter may participate in, sponsor, conduct or
    30  administer a cooperative purchasing agreement for the
    20050S0301B0313                 - 82 -     

     1  procurement of supplies, services, equipment or construction
     2  with one or more transit entity or other public procurement unit
     3  or with a mass transit entity or external procurement unit not
     4  located in this Commonwealth consistent with the provisions of
     5  62 Pa.C.S. Ch. 19 (relating to intergovernmental relations).
     6  Where Federal funds provide a portion of the funds to implement
     7  such a purchase, a transit entity must also comply with any
     8  Federal procurement requirements that exceed those contained in
     9  62 Pa.C.S. Ch. 19.
    10     Section 7.  Title 75 is amended by adding a section to read:
    11  § 3315.  Special traffic rules.
    12     (a)  Passing and overtaking streetcars.--
    13         (1)  Notwithstanding any other provision in this
    14     subchapter, the driver of a vehicle may not overtake and pass
    15     to the left of a streetcar proceeding in the same direction,
    16     whether the streetcar is actually in motion or temporarily
    17     halted to receive or discharge passengers, if overtaking or
    18     passing requires driving in a lane normally used by traffic
    19     moving in the opposite direction.
    20         (2)  The driver of a vehicle may not overtake and pass a
    21     streetcar which has stopped to receive or discharge
    22     passengers on the side on which the passengers board or
    23     alight until the doors of the streetcar are closed and
    24     passengers who are discharged have reached the side of the
    25     highway onto which they are discharged.
    26         (3)  This subsection shall not apply to those locations
    27     where streetcars are operating on tracks which are located
    28     within a median section of the roadway, when that median
    29     section is separated from the roadway by curbs or physical
    30     barriers.
    20050S0301B0313                 - 83 -     

     1     (b)  Right-of-way of certain public transportation vehicles
     2  reentering traffic.--
     3         (1)  Notwithstanding any other provision in this
     4     subchapter, the driver of a nonemergency vehicle shall yield
     5     the right-of-way to any public transportation vehicle,
     6     provided that:
     7             (i)  The driver operates a vehicle that is in a
     8         position to overtake the bus from its rear.
     9             (ii)  The bus, after exiting an active traffic lane
    10         for the purpose of stopping to receive or discharge
    11         passengers, attempts to reenter the lane from which it
    12         exited and to enter the traffic lane occupied by the
    13         driver by signaling its intention to do so. No other lane
    14         changes shall be permitted.
    15         (2)  The department in cooperation with public
    16     transportation systems throughout this Commonwealth, shall
    17     conduct a public education program to inform motorists of the
    18     requirements imposed by this section relating to bus rights-
    19     of-way.
    20     (c)  Definition.--As used in this section, the term "public
    21  transportation vehicle" means and includes all autobuses of
    22  whatever size or configuration operated by or under contract for
    23  any public transportation system subject to 74 Pa.C.S. Pt. II
    24  (relating to public transportation), so long as the vehicle
    25  clearly identifies that it is operated by or on behalf of the
    26  public transportation system.
    27     Section 8.  This act shall take effect immediately.


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