SB 508: Transportation funds: transit operators: pedestrian safety.
- Session Year: 2015-2016
- House: Senate
- Latest Version Date: 2015-10-09
(1)Existing law provides various sources of funding to public transit operators. Under the Mills-Alquist-Deddeh Act, also known as the Transportation Development Act, revenues from a 1/4% sales tax in each county are available, among other things, for allocation by the transportation planning agency to transit operators, subject to certain financial requirements for an operator to meet in order to be eligible to receive funds. Existing law sets forth alternative ways an operator may qualify for funding, including a standard under which the allocated funds do not exceed 50% of the operators total operating costs, as specified, or the maintenance by the operator of a specified farebox ratio of fare revenues to operating costs. Existing law authorizes an operator to satisfy the applicable ratio of fare revenues to operating costs by supplementing its fare revenues with local funds, as defined. Existing law generally establishes the required farebox ratio as 20% in urbanized areas and 10% in nonurbanized areas, except that an operator that exceeded those percentages in the 197879 fiscal year is required to maintain the higher farebox ratios in order to remain eligible for funding. Existing law provides various exceptions to the definition of operating cost for these purposes.
This bill would delete the requirement for transit operators to maintain higher farebox requirements based on the 197879 fiscal year. The bill would exempt additional categories of expenditures from the definition of operating cost used to determine compliance with required farebox ratios, including, among others, certain fuel, insurance, and claims settlement cost increases beyond the change in the Consumer Price Index. The bill would also exempt startup costs for new transit services for up to 2 years. The bill would revise the definition of local funds. The bill would revise the definition of operating cost for performance audit and certain other purposes to exclude principal and interest payments on capital projects funded with certificates of participation.
(2)The Mills-Alquist-Deddeh Act, also known as the Transportation Development Act, also generally requires the allocation of 2% of available funds to cities and counties for facilities for bicycles and pedestrians. Existing law provides that a city or county may expend up to 5% of its bicycle and pedestrian allocation to supplement moneys from other sources to fund bicycle safety education programs, as long as this amount is not used to fully fund the salary of any one person.
This bill would also authorize the funding of pedestrian safety education programs from the 5% amount.
(3)Existing law creates the State Transit Assistance program, under which certain revenues in the Public Transportation Account are allocated by formula for public transportation purposes. Under that program, after the 201516 fiscal year, funds may not be allocated to a transit operator for operating purposes unless the operator meets certain efficiency standards. Compliance with the efficiency standards is based on whether the operators total operating cost per revenue vehicle hour is increasing by no more than the Consumer Price Index, as specified. Existing law imposes no restrictions on allocations of funds for capital purposes. Existing law provides for funds withheld from an operator to be retained by the allocating transportation planning agency for allocation in a later year if the operator can subsequently meet the efficiency standards, and in certain cases, provides for the funds to be reallocated to other transit purposes, or to revert to the Controller.
This bill, commencing July 1, 2016, rather than making an operator ineligible to receive State Transit Assistance program funds for operating purposes for an entire year for failing to meet the efficiency standards, would instead reduce the operators operating allocation by a specified percentage, based on the percentage amount that the operator failed to meet the efficiency standards, as specified. The bill, on that date, would delete provisions related to funds withheld, reallocated, or reverted by the transportation planning agency.
(1)Existing law provides various sources of funding to public transit operators. Under the Mills-Alquist-Deddeh Act, also known as the Transportation Development Act, revenues from a 1/4% sales tax in each county are available, among other things, for allocation by the transportation planning agency to transit operators, subject to certain financial requirements for an operator to meet in order to be eligible to receive funds. Existing law sets forth alternative ways an operator may qualify for funding, including a standard under which the allocated funds do not exceed 50% of the operators total operating costs, as specified, or the maintenance by the operator of a specified farebox ratio of fare revenues to operating costs. Existing law authorizes an operator to satisfy the applicable ratio of fare revenues to operating costs by supplementing its fare revenues with local funds, as defined. Existing law generally establishes the required farebox ratio as 20% in urbanized areas and 10% in nonurbanized areas, except that an operator that exceeded those percentages in the 197879 fiscal year is required to maintain the higher farebox ratios in order to remain eligible for funding. Existing law provides various exceptions to the definition of operating cost for these purposes.
This bill would delete the requirement for transit operators to maintain higher farebox requirements based on the 197879 fiscal year. The bill would exempt additional categories of expenditures from the definition of operating cost used to determine compliance with required farebox ratios, including, among others, certain fuel, insurance, and claims settlement cost increases beyond the change in the Consumer Price Index. The bill would also exempt startup costs for new transit services for up to 2 years. The bill would revise the definition of local funds. The bill would revise the definition of operating cost for performance audit and certain other purposes to exclude principal and interest payments on capital projects funded with certificates of participation.
(2)The Mills-Alquist-Deddeh Act, also known as the Transportation Development Act, also generally requires the allocation of 2% of available funds to cities and counties for facilities for bicycles and pedestrians. Existing law provides that a city or county may expend up to 5% of its bicycle and pedestrian allocation to supplement moneys from other sources to fund bicycle safety education programs, as long as this amount is not used to fully fund the salary of any one person.
This bill would also authorize the funding of pedestrian safety education programs from the 5% amount.
(3)Existing law creates the State Transit Assistance program, under which certain revenues in the Public Transportation Account are allocated by formula for public transportation purposes. Under that program, after the 201516 fiscal year, funds may not be allocated to a transit operator for operating purposes unless the operator meets certain efficiency standards. Compliance with the efficiency standards is based on whether the operators total operating cost per revenue vehicle hour is increasing by no more than the Consumer Price Index, as specified. Existing law imposes no restrictions on allocations of funds for capital purposes. Existing law provides for funds withheld from an operator to be retained by the allocating transportation planning agency for allocation in a later year if the operator can subsequently meet the efficiency standards, and in certain cases, provides for the funds to be reallocated to other transit purposes, or to revert to the Controller.
This bill, commencing July 1, 2016, rather than making an operator ineligible to receive State Transit Assistance program funds for operating purposes for an entire year for failing to meet the efficiency standards, would instead reduce the operators operating allocation by a specified percentage, based on the percentage amount that the operator failed to meet the efficiency standards, as specified. The bill, on that date, would delete provisions related to funds withheld, reallocated, or reverted by the transportation planning agency.
(1)Existing law provides various sources of funding to public transit operators. Under the Mills-Alquist-Deddeh Act, also known as the Transportation Development Act, revenues from a 1/4% sales tax in each county are available, among other things, for allocation by the transportation planning agency to transit operators, subject to certain financial requirements for an operator to meet in order to be eligible to receive funds. Existing law sets forth alternative ways an operator may qualify for funding, including a standard under which the allocated funds do not exceed 50% of the operators total operating costs, as specified, or the maintenance by the operator of a specified farebox ratio of fare revenues to operating costs. Existing law authorizes an operator to satisfy the applicable ratio of fare revenues to operating costs by supplementing its fare revenues with local funds, as defined. Existing law generally establishes the required farebox ratio as 20% in urbanized areas and 10% in nonurbanized areas, except that an operator that exceeded those percentages in the 197879 fiscal year is required to maintain the higher farebox ratios in order to remain eligible for funding. Existing law provides various exceptions to the definition of operating cost for these purposes.
This bill would delete the requirement for transit operators to maintain higher farebox requirements based on the 197879 fiscal year. The bill would exempt additional categories of expenditures from the definition of operating cost used to determine compliance with required farebox ratios, including, among others, certain fuel, insurance, and claims settlement cost increases beyond the change in the Consumer Price Index. The bill would also exempt startup costs for new transit services for up to 2 years. The bill would revise the definition of local funds. The bill would revise the definition of operating cost for performance audit and certain other purposes to exclude principal and interest payments on capital projects funded with certificates of participation.
(2)The Mills-Alquist-Deddeh Act, also known as the Transportation Development Act, also generally requires the allocation of 2% of available funds to cities and counties for facilities for bicycles and pedestrians. Existing law provides that a city or county may expend up to 5% of its bicycle and pedestrian allocation to supplement moneys from other sources to fund bicycle safety education programs, as long as this amount is not used to fully fund the salary of any one person.
This bill would also authorize the funding of pedestrian safety education programs from the 5% amount.
(3)Existing law creates the State Transit Assistance program, under which certain revenues in the Public Transportation Account are allocated by formula for public transportation purposes. Under that program, after the 201516 fiscal year, funds may not be allocated to a transit operator for operating purposes unless the operator meets certain efficiency standards. Compliance with the efficiency standards is based on whether the operators total operating cost per revenue vehicle hour is increasing by no more than the Consumer Price Index, as specified. Existing law imposes no restrictions on allocations of funds for capital purposes. Existing law provides for funds withheld from an operator to be retained by the allocating transportation planning agency for allocation in a later year if the operator can subsequently meet the efficiency standards, and in certain cases, provides for the funds to be reallocated to other transit purposes, or to revert to the Controller.
This bill, commencing July 1, 2016, rather than making an operator ineligible to receive State Transit Assistance program funds for operating purposes for an entire year for failing to meet the efficiency standards, would instead reduce the operators operating allocation by a specified percentage, based on the percentage amount that the operator failed to meet the efficiency standards, as specified. The bill, on that date, would delete provisions related to funds withheld, reallocated, or reverted by the transportation planning agency.
(1)Existing law provides various sources of funding to public transit operators. Under the Mills-Alquist-Deddeh Act, also known as the Transportation Development Act, revenues from a 1/4% sales tax in each county are available, among other things, for allocation by the transportation planning agency to transit operators, subject to certain financial requirements for an operator to meet in order to be eligible to receive funds. Existing law sets forth alternative ways an operator may qualify for funding, including a standard under which the allocated funds do not exceed 50% of the operators total operating costs, as specified, or the maintenance by the operator of a specified farebox ratio of fare revenues to operating costs. Existing law authorizes an operator to satisfy the applicable ratio of fare revenues to operating costs by supplementing its fare revenues with local funds, as defined. Existing law generally establishes the required farebox ratio as 20% in urbanized areas and 10% in nonurbanized areas, except that an operator that exceeded those percentages in the 197879 fiscal year is required to maintain the higher farebox ratios in order to remain eligible for funding. Existing law provides various exceptions to the definition of operating cost for these purposes.
This bill would delete the requirement for transit operators to maintain higher farebox requirements based on the 197879 fiscal year. The bill would exempt additional categories of expenditures from the definition of operating cost used to determine compliance with required farebox ratios, including, among others, certain fuel, insurance, and claims settlement cost increases beyond the change in the Consumer Price Index. The bill would also exempt startup costs for new transit services for up to 2 years. The bill would revise the definition of local funds. The bill would revise the definition of operating cost for performance audit and certain other purposes to exclude principal and interest payments on capital projects funded with certificates of participation.
(2)The Mills-Alquist-Deddeh Act, also known as the Transportation Development Act, also generally requires the allocation of 2% of available funds to cities and counties for facilities for bicycles and pedestrians. Existing law provides that a city or county may expend up to 5% of its bicycle and pedestrian allocation to supplement moneys from other sources to fund bicycle safety education programs, as long as this amount is not used to fully fund the salary of any one person.
This bill would also authorize the funding of pedestrian safety education programs from the 5% amount.
(3)Existing law creates the State Transit Assistance program, under which certain revenues in the Public Transportation Account are allocated by formula for public transportation purposes. Under that program, after the 201516 fiscal year, funds may not be allocated to a transit operator for operating purposes unless the operator meets certain efficiency standards. Compliance with the efficiency standards is based on whether the operators total operating cost per revenue vehicle hour is increasing by no more than the Consumer Price Index, as specified. Existing law imposes no restrictions on allocations of funds for capital purposes. Existing law provides for funds withheld from an operator to be retained by the allocating transportation planning agency for allocation in a later year if the operator can subsequently meet the efficiency standards, and in certain cases, provides for the funds to be reallocated to other transit purposes, or to revert to the Controller.
This bill, commencing July 1, 2016, rather than making an operator ineligible to receive State Transit Assistance program funds for operating purposes for an entire year for failing to meet the efficiency standards, would instead reduce the operators operating allocation by a specified percentage, based on the percentage amount that the operator failed to meet the efficiency standards, as specified. The bill bill, on that date, would delete provisions related to funds withheld, reallocated, or reverted by the transportation planning agency.
(1)Existing law provides various sources of funding to public transit operators. Under the Mills-Alquist-Deddeh Act, also known as the Transportation Development Act, revenues from a 1/4% sales tax in each county are available, among other things, for allocation by the transportation planning agency to transit operators, subject to certain financial requirements for an operator to meet in order to be eligible to receive funds. Existing law sets forth alternative ways an operator may qualify for funding, including a standard under which the allocated funds do not exceed 50% of the operators total operating costs, as specified, or the maintenance by the operator of a specified farebox ratio of fare revenues to operating costs. Existing law authorizes an operator to satisfy the applicable ratio of fare revenues to operating costs by supplementing its fare revenues with local funds, as defined. Existing law generally establishes the required farebox ratio as 20% in urbanized areas and 10% in nonurbanized areas, except that an operator that exceeded those percentages in the 197879 fiscal year is required to maintain the higher farebox ratios in order to remain eligible for funding. Existing law provides various exceptions to the definition of operating cost for these purposes.
This bill would delete the requirement for transit operators to maintain higher farebox requirements based on the 197879 fiscal year. The bill would exempt additional categories of expenditures from the definition of operating cost used to determine compliance with required farebox ratios, including, among others, certain fuel, insurance, and claims settlement costs cost increases beyond the change in the Consumer Price Index. The bill would also exempt startup costs for new transit services for up to 2 years. The bill would revise the definition of local funds. The bill would revise the definition of operating cost for performance audit and certain other purposes to exclude principal and interest payments on capital projects funded with certificates of participation.
(2)The Mills-Alquist-Deddeh Act, also known as the Transportation Development Act, also generally requires the allocation of 2% of available funds to cities and counties for facilities for bicycles and pedestrians. Existing law provides that a city or county may expend up to 5% of its bicycle and pedestrian allocation to supplement moneys from other sources to fund bicycle safety education programs, as long as this amount is not used to fully fund the salary of any one person.
This bill would also authorize the funding of pedestrian safety education programs from the 5% amount.
(3)Existing law creates the State Transit Assistance program, under which certain revenues in the Public Transportation Account are allocated by formula for public transportation purposes. Under that program, funds may not be allocated to a transit operator for operating purposes unless the operator meets certain efficiency standards. Compliance with the efficiency standards is based on whether the operators total operating cost per revenue vehicle hour is increasing by no more than the Consumer Price Index, as specified. Existing law imposes no restrictions on allocations of funds for capital purposes. Existing law provides for funds withheld from an operator to be retained by the allocating transportation planning agency for allocation in a later year if the operator can subsequently meet the efficiency standards, and in certain cases, provides for the funds to be reallocated to other transit purposes, or to revert to the Controller.
This bill, rather than making an operator ineligible to receive State Transit Assistance program funds for operating purposes for an entire year for failing to meet the efficiency standards, would instead reduce the operators operating allocation by a specified percentage, based on the percentage amount that the operator failed to meet the efficiency standards, as specified. The bill would delete provisions related to funds withheld, reallocated, or reverted by the transportation planning agency.
(1)Existing law provides various sources of funding to public transit operators. Under the Mills-Alquist-Deddeh Act, also known as the Transportation Development Act, revenues from a 1/4% sales tax in each county are available, among other things, for allocation by the transportation planning agency to transit operators, subject to certain financial requirements for an operator to meet in order to be eligible to receive funds. Existing law sets forth alternative ways an operator may qualify for funding, including a standard under which the allocated funds do not exceed 50% of the operators total operating costs, as specified, or the maintenance by the operator of a specified farebox ratio of fare revenues to operating costs. Existing law authorizes an operator to satisfy the applicable ratio of fare revenues to operating costs by supplementing its fare revenues with local funds, as defined. Existing law generally establishes the required farebox ratio as 20% in urbanized areas and 10% in nonurbanized areas, except that an operator that exceeded those percentages in the 197879 fiscal year is required to maintain the higher farebox ratios in order to remain eligible for funding. Existing law provides various exceptions to the definition of operating cost for these purposes.
This bill would delete the requirement for transit operators to maintain higher farebox requirements based on the 197879 fiscal year. The bill would exempt additional categories of expenditures from the definition of operating cost used to determine compliance with required farebox ratios, including, among others, certain health coverage, pension, fuel, insurance, and claims settlement costs. The bill would also exempt startup costs for new transit services for up to 2 years. The bill would revise the definition of local funds. The bill would revise the definition of operating cost for performance audit and certain other purposes to exclude principal and interest payments on capital projects funded with certificates of participation or other lease financing mechanisms. participation.
(2)The Mills-Alquist-Deddeh Act, also known as the Transportation Development Act, also generally requires the allocation of 2% of available funds to cities and counties for facilities for bicycles and pedestrians. Existing law provides that a city or county may expend up to 5% of its bicycle and pedestrian allocation to supplement moneys from other sources to fund bicycle safety education programs, as long as this amount is not used to fully fund the salary of any one person.
This bill would also authorize the funding of pedestrian safety education programs from the 5% amount.
(2)
(3)Existing law also creates the State Transit Assistance program, under which certain revenues in the Public Transportation Account are allocated by formula for public transportation purposes. Under that program, funds may not be allocated to a transit operator for operating purposes unless the operator meets certain efficiency standards. Compliance with the efficiency standards is based on whether the operators total operating cost per revenue vehicle hour is increasing by no more than the Consumer Price Index, as specified. Existing law imposes no restrictions on allocations of funds for capital purposes. Existing law provides for funds withheld from an operator to be retained by the allocating transportation planning agency for allocation in a later year if the operator can subsequently meet the efficiency standards, and in certain cases, provides for the funds to be reallocated to other transit purposes, or to revert to the Controller.
This bill, rather than making an operator ineligible to receive State Transit Assistance program funds for operating purposes for an entire year for failing to meet the efficiency standards, would instead reduce the operators operating allocation by a specified percentage, based on the percentage amount that the operator failed to meet the efficiency standards, as specified. The bill would exclude certain health coverage and pension costs from the definition of operating costs used to calculate compliance with the efficiency standards. The bill would delete provisions related to funds withheld, reallocated, or reverted by the transportation planning agency.
(1)Existing law provides various sources of funding to public transit operators. Under the Mills-Alquist-Deddeh Act, also known as the Transportation Development Act, revenues from a 1/4% sales tax in each county are available, among other things, for allocation by the transportation planning agency to transit operators, subject to certain financial requirements for an operator to meet in order to be eligible to receive funds. Existing law sets forth alternative ways an operator may qualify for funding, including a standard under which the allocated funds do not exceed 50%of the operators total operating costs, as specified, or the maintenance by the operator of a specified farebox ratio of fare revenues to operating costs. Existing law generally establishes the required farebox ratio as 20% in urbanized areas and 10% in nonurbanized areas, except that an operator that exceeded those percentages in the 197879 fiscal year is required to maintain the higher farebox ratios in order to remain eligible for funding. Existing law provides various exceptions to the definition of operating cost for these purposes.
This bill would delete the requirement for transit operators to maintain higher farebox requirements based on the 197879 fiscal year. The bill would exempt additional categories of expenditures from the definition of operating cost used to determine compliance with required farebox ratios, including, among others, certain health coverage, pension, fuel, insurance, and claims settlement costs. The bill would also exempt startup costs for new transit services for up to 2 years. The bill would revise the definition of operating cost for performance audit and certain other purposes to exclude principal and interest payments on capital projects funded with certificates of participation or other lease financing mechanisms.
(2)Existing law also creates the State Transit Assistance program, under which certain revenues in the Public Transportation Account are allocated by formula for public transportation purposes. Under that program, funds may not be allocated to a transit operator for operating purposes unless the operator meets certain efficiency standards. Compliance with the efficiency standards is based on whether the operators total operating cost per revenue vehicle hour is increasing by no more than the Consumer Price Index, as specified. Existing law imposes no restrictions on allocations of funds for capital purposes. Existing law provides for funds withheld from an operator to be retained by the allocating transportation planning agency for allocation in a later year if the operator can subsequently meet the efficiency standards, and in certain cases, provides for the funds to be reallocated to other transit purposes, or to revert to the Controller.
This bill, rather than making an operator ineligible to receive State Transit Assistance program funds for operating purposes for an entire year for failing to meet the efficiency standards, would instead reduce the operators operating allocation by a specified percentage, based on the percentage amount that the operator failed to meet the efficiency standards, as specified. The bill would exclude certain health coverage and pension costs from the definition of operating costs used to calculate compliance with the efficiency standards. The bill would delete provisions related to funds withheld, reallocated, or reverted by the transportation planning agency.
Two percent of the remaining money in the fund shall be made available to counties and cities for facilities provided for the exclusive use of pedestrians and bicycles unless the transportation planning agency finds that the money could be used to better advantage for the purposes stated in Article 4 (commencing with Section 99260) and Article 4.5 (commencing with Section 99275), or for local street and road purposes in those areas where the money may be expended for those purposes, in the development of a balanced transportation system. Of the amount made available to a city or county pursuant to this section, 5 percent thereof may be expended to supplement moneys from other sources to fund bicycle and pedestrian safety education programs, but shall not be used to fully fund the salary of any one person.
SEC. 2.Section 99234 of the Public Utilities Code is amended to read:99234.(a)Claims for facilities provided for the exclusive use of pedestrians and bicycles or for bicycle and pedestrian safety education programs shall be filed according to the rules and regulations adopted by the transportation planning agency.
(b)The money shall be allocated for the construction, including related engineering expenses, of those facilities pursuant to procedures or criteria established by the transportation planning agency for the area within its jurisdiction, or for bicycle and pedestrian safety education programs.
(c)The money may be allocated for the maintenance of bicycling trails that are closed to motorized traffic pursuant to procedures or criteria established by the transportation planning agency for the area within its jurisdiction.
(d)The money may be allocated without respect to Section 99231 and shall not be included in determining the apportionments to a city or county for purposes of Sections 99233.7 to 99233.9, inclusive.
(e)Facilities provided for the use of bicycles may include projects that serve the needs of commuting bicyclists, including, but not limited to, new trails serving major transportation corridors, secure bicycle parking at employment centers, park and ride lots, and transit terminals where other funds are unavailable.
(f)Notwithstanding any other provision of this section, a planning agency established in Title 7.1 (commencing with Section 66500) of the Government Code may allocate the money to the Association of Bay Area Governments for activities required by Chapter 11 (commencing with Section 5850) of Division 5 of the Public Resources Code.
(g)Notwithstanding any other provision of this section, the transportation planning agencies that allocate funds, pursuant to this section, to the cities and counties with jurisdiction or a sphere of influence within the delta, as defined in Section 5852 of the Public Resources Code, may allocate the money to the Delta Protection Commission for activities required by Chapter 12 (commencing with Section 5852) of Division 5 of the Public Resources Code.
(h)Within 30 days after receiving a request for a review from any city or county, the transportation planning agency shall review its allocations made pursuant to Section 99233.3.
(i)In addition to the purposes authorized in this section, a portion of the amount available to a city or county pursuant to Section 99233.3 may be allocated to develop a comprehensive bicycle and pedestrian facilities plan, with an emphasis on bicycle projects intended to accommodate bicycle commuters rather than recreational bicycle users. An allocation under this subdivision may not be made more than once every five years.
(j)Up to 20 percent of the amount available each year to a city or county pursuant to Section 99233.3 may be allocated to restripe class II bicycle lanes.
SEC. 3.Section 99247 of the Public Utilities Code is amended to read:99247.For purposes of Section 99246, and as used elsewhere in this article:
(a)Operating cost means all costs in the operating expense object classes exclusive of the costs in the depreciation and amortization expense object class of the uniform system of accounts and records adopted by the Controller pursuant to Section 99243. Operating cost excludes all subsidies for commuter rail services operated on railroad lines under the jurisdiction of the Federal Railroad Administration, all direct costs for providing charter services, all vehicle lease costs, and principal and interest payments on capital projects funded with certificates of participation.
(b)Operating cost per passenger means the operating cost divided by the total passengers.
(c)Operating cost per vehicle service hour means the operating cost divided by the vehicle service hours.
(d)Passengers per vehicle service hour means the total passengers divided by the vehicle service hours.
(e)Passengers per vehicle service mile means the total passengers divided by the vehicle service miles.
(f)Total passengers means the number of boarding passengers, whether revenue producing or not, carried by the public transportation system.
(g)Transit vehicle means a vehicle, including, but not limited to, one operated on rails or tracks, which is used for public transportation services funded, in whole or in part, under this chapter.
(h)Vehicle service hours means the total number of hours that each transit vehicle is in revenue service, including layover time.
(i)Vehicle service miles means the total number of miles that each transit vehicle is in revenue service.
(j)Vehicle service hours per employee means the vehicle service hours divided by the number of employees employed in connection with the public transportation system, based on the assumption that 2,000 person-hours of work in one year constitute one employee. The count of employees shall also include those individuals employed by the operator which provide services to the agency of the operator responsible for the operation of the public transportation system even though not employed in that agency.
SEC. 4.Section 99268.2 of the Public Utilities Code is amended to read:99268.2.In the case of an operator required to be in compliance with Section 99268 under Section 99268.1, the operator may be allocated additional funds that could not be allocated to it because of those requirements, if it maintains, for the fiscal year, a ratio of fare revenues to operating cost, as defined by subdivision (a) of Section 99247, at least equal to one-fifth if serving an urbanized area or one-tenth if serving a nonurbanized area.
SEC. 5.Section 99268.3 of the Public Utilities Code is amended to read:99268.3.(a)In the case of an operator that is serving an urbanized area, and that was eligible for funds under this article during the 197879 fiscal year even though not required to be in compliance with Section 99268 or that commenced operation after that fiscal year, the operator shall be eligible for those funds in any fiscal year, commencing with claims for the 198081 fiscal year, if it maintains, for the fiscal year, a ratio of fare revenues to operating cost, as defined by subdivision (a) of Section 99247, at least equal to one-fifth.
(b)In the case of an operator that is serving an urbanized area, and that was in operation during the 197879 fiscal year even though not then eligible for funds under this article, but that has since become eligible for those funds, the operator shall be eligible for the funds in any fiscal year, commencing with the 198081 fiscal year, if it complies with either of the following:
(1)The requirements of Section 99268.
(2)The requirements of subdivision (a).
SEC. 6.Section 99268.4 of the Public Utilities Code is amended to read:99268.4.In the case of an operator that is serving a nonurbanized area, and that was eligible for funds under this article during the 197879 fiscal year even though not required to be in compliance with Section 99268 or that commenced operation after that fiscal year, the operator shall be eligible for those funds in any fiscal year, commencing with claims for the 198081 fiscal year, if it maintains, for the fiscal year, a ratio of fare revenues to operating cost, as defined by subdivision (a) of Section 99247, at least equal to one-tenth.
SEC. 7.Section 99268.17 of the Public Utilities Code is amended to read:99268.17.(a)Notwithstanding subdivision (a) of Section 99247, the following costs shall be excluded from the definition of operating cost for the purposes of calculating any required ratios of fare revenues to operating cost specified in this article:
(1)The additional operating costs required to provide comparable complementary paratransit service as required by Section 37.121 of Title 49 of the Code of Federal Regulations, pursuant to the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.), as identified in the operators paratransit plan pursuant to Section 37.139 of Title 49 of the Code of Federal Regulations that exceed the operators costs required to provide comparable complementary paratransit service in the prior year as adjusted by the Consumer Price Index.
(2)Cost increases beyond the change in the Consumer Price Index for all of the following:
(A)Fuel.
(B)Alternative fuel programs.
(C)Power, including electricity.
(D)Insurance premiums and payments in settlement of claims arising out of the operators liability.
(E)State and federal mandates.
(3)Startup costs for new services for a period of not more than two years.
(b)The exclusion of costs from the definition of operating costs in subdivision (a) applies solely for the purpose of this article and does not authorize an operator to report an operating cost other than as defined in subdivision (a) of Section 99247 or a ratio of fare revenue to operating cost other than as that ratio is described elsewhere in this article, to any of the following entities:
(1)The Controller pursuant to Section 99243.
(2)The entity conducting the fiscal audit pursuant to Section 99245.
(3)The entity conducting the performance audit pursuant to Section 99246.
SEC. 8.Section 99268.19 of the Public Utilities Code is amended to read:99268.19.If fare revenues are insufficient to meet the applicable ratio of fare revenues to operating cost required by this article, an operator may satisfy that requirement by supplementing its fare revenues with local funds. As used in this section, local funds means any nonfederal or nonstate grant funds or other revenues generated by, earned by, or distributed to an operator.
SEC. 9.Section 99314.6 of the Public Utilities Code is amended to read:99314.6.(a)Except as provided in Section 99314.7, the following eligibility standards apply:
(1)Except as provided in paragraph (2), funds shall not be allocated for operating purposes pursuant to Sections 99313 and 99314 to an operator unless the operator meets either of the following efficiency standards:
(A)The operators total operating cost per revenue vehicle hour in the latest year for which audited data are available does not exceed the sum of the preceding years total operating cost per revenue vehicle hour and an amount equal to the product of the percentage change in the Consumer Price Index for the same period multiplied by the preceding years total operating cost per revenue vehicle hour.
(B)The operators average total operating cost per revenue vehicle hour in the latest three years for which audited data are available does not exceed the sum of the average of the total operating cost per revenue vehicle hour in the three years preceding the latest year for which audited data are available and an amount equal to the product of the average percentage change in the Consumer Price Index for the same period multiplied by the average total operating cost per revenue vehicle hour in the same three years.
(2)The transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, as the case may be, shall adjust the calculation of operating costs and revenue vehicle hours pursuant to paragraph (1) to account for either or both of the following factors:
(A)Exclusion of costs increases beyond the change in the Consumer Price Index for fuel; alternative fuel programs; power, including electricity; insurance premiums and payments in settlement of claims arising out of the operators liability; or state or federal mandates, including the additional operating costs required to provide comparable complementary paratransit service as required by Section 37.121 of Title 49 of the Code of Federal Regulations, pursuant to the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.), as identified in the operators paratransit plan pursuant to Section 37.139 of Title 49 of the Code of Federal Regulations.
(B)Exclusion of startup costs for new services for a period of not more than two years.
(3)Funds withheld from allocation to an operator pursuant to paragraph (1) shall be retained by the transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, as the case may be, for reallocation to that operator for two years following the year of ineligibility. In a year in which an operators funds are allocated pursuant to paragraph (1), funds withheld from allocation during a preceding year shall also be allocated. Funds not allocated before the commencement of the third year following the year of ineligibility shall be reallocated to cost effective high priority regional transit activities, as determined by the transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, as the case may be. If that agency or commission, or the board, determines that no cost effective high priority regional transit activity exists, the unallocated funds shall revert to the Controller for reallocation.
(b)As used in this section, the following terms have the following meanings:
(1)Operating cost means the total operating cost as reported by the operator under the Uniform System of Accounts and Records, pursuant to Section 99243 and subdivision (a) of Section 99247.
(2)Revenue vehicle hours has the same meaning as vehicle service hours, as defined in subdivision (h) of Section 99247.
(3)Consumer Price Index, as applied to an operator, is the regional Consumer Price Index for that operators region, as published by the United States Bureau of Labor Statistics. If a regional index is not published, the index for the State of California applies.
(4)New service has the same meaning as extension of public transportation services as defined in Section 99268.8.
(c)The restrictions in this section do not apply to allocations made for capital purposes.
(d)The exclusion of costs increases described in paragraph (2) of subdivision (a) applies solely for the purpose of calculating an operators eligibility to claim funds pursuant to this section and does not authorize an operator to report an operating cost per revenue vehicle hour other than as described in this section and in Section 99247, to any of the following entities:
(1)The Controller pursuant to Section 99243.
(2)The entity conducting the fiscal audit pursuant to Section 99245.
(3)The entity conducting the performance audit pursuant to Section 99246.
(e)The restrictions in this section shall not apply to the allocation of funds made pursuant to Sections 99313 and 99314 after January 1, 2010, and through the 201516 fiscal year.
(f)This section shall become inoperative on July 1, 2016, and, as of January 1, 2017, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2017, deletes or extends the dates on which it becomes inoperative and is repealed.
SEC. 10.Section 99314.6 is added to the Public Utilities Code, to read:99314.6.(a) Except as provided in Section 99314.7, the following eligibility standards apply:
(1)Except as provided in paragraph (3), funds shall be allocated for operating or capital purposes pursuant to Sections 99313 and 99314 to an operator if the operator meets either of the following efficiency standards:
(A)The operator shall receive its entire allocation, and any or all of this allocation may be used for operating purposes, if the operators total operating cost per revenue vehicle hour in the latest year for which audited data are available does not exceed the sum of the preceding years total operating cost per revenue vehicle hour and an amount equal to the product of the percentage change in the Consumer Price Index for the same period multiplied by the preceding years total operating cost per revenue vehicle hour.
(B)The operator shall receive its entire allocation, and any or all of this allocation may be used for operating purposes, if the operators average total operating cost per revenue vehicle hour in the latest three years for which audited data are available does not exceed the sum of the average of the total operating cost per revenue vehicle hour in the three years preceding the latest year for which audited data are available and an amount equal to the product of the average percentage change in the Consumer Price Index for the same period multiplied by the average total operating cost per revenue vehicle hour in the same three years.
(2)If an operator does not meet either efficiency standard under paragraph (1), the operator shall receive its entire allocation and the funds shall be allocated pursuant to this paragraph. The portion of the allocation that the operator may use for operations shall be the total allocation to the operator reduced by the lowest percentage by which the operators total operating cost per revenue vehicle hour for the applicable year or three-year period calculated pursuant to subparagraph (A) or (B) of paragraph (1) exceeded the target amount necessary to meet the applicable efficiency standard. The remaining portion of the operators allocation shall be used only for capital purposes.
(3)The transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, as the case may be, shall adjust the calculation of operating costs and revenue vehicle hours pursuant to paragraph (1) to account for either or both of the following factors:
(A)Exclusion of cost increases beyond the change in the Consumer Price Index for fuel; alternative fuel programs; power, including electricity; insurance premiums and payments in settlement of claims arising out of the operators liability; or state or federal mandates, including the additional operating costs required to provide comparable complementary paratransit service as required by Section 37.121 of Title 49 of the Code of Federal Regulations, pursuant to the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.), as identified in the operators paratransit plan pursuant to Section 37.139 of Title 49 of the Code of Federal Regulations.
(B)Exclusion of startup costs for new services for a period of not more than two years.
(b)As used in this section, the following terms have the following meanings:
(1)Operating cost means the total operating cost as reported by the operator under the uniform system of accounts and records, pursuant to Section 99243 and subdivision (a) of Section 99247.
(2)Revenue vehicle hours has the same meaning as vehicle service hours, as defined in subdivision (h) of Section 99247.
(3)Consumer Price Index, as applied to an operator, is the regional Consumer Price Index for that operators region, as published by the United States Bureau of Labor Statistics. If a regional index is not published, the index for the State of California applies.
(4)New service has the same meaning as extension of public transportation services as defined in Section 99268.8.
(c)The restrictions in this section do not apply to allocations made for capital purposes.
(d)The exclusion of cost increases described in paragraph (3) of subdivision (a) applies solely for the purpose of calculating an operators eligibility to claim funds pursuant to this section and does not authorize an operator to report an operating cost per revenue vehicle hour, other than as described in this section and in Section 99247, to any of the following entities:
(1)The Controller pursuant to Section 99243.
(2)The entity conducting the fiscal audit pursuant to Section 99245.
(3)The entity conducting the performance audit pursuant to Section 99246.
(e)This section shall become operative on July 1, 2016.
Two percent of the remaining money in the fund shall be made available to counties and cities for facilities provided for the exclusive use of pedestrians and bicycles unless the transportation planning agency finds that the money could be used to better advantage for the purposes stated in Article 4 (commencing with Section 99260) and Article 4.5 (commencing with Section 99275), or for local street and road purposes in those areas where the money may be expended for those purposes, in the development of a balanced transportation system. Of the amount made available to a city or county pursuant to this section, 5 percent thereof may be expended to supplement moneys from other sources to fund bicycle and pedestrian safety education programs, but shall not be used to fully fund the salary of any one person.
SEC. 2.Section 99234 of the Public Utilities Code is amended to read:99234.(a)Claims for facilities provided for the exclusive use of pedestrians and bicycles or for bicycle and pedestrian safety education programs shall be filed according to the rules and regulations adopted by the transportation planning agency.
(b)The money shall be allocated for the construction, including related engineering expenses, of those facilities pursuant to procedures or criteria established by the transportation planning agency for the area within its jurisdiction, or for bicycle and pedestrian safety education programs.
(c)The money may be allocated for the maintenance of bicycling trails that are closed to motorized traffic pursuant to procedures or criteria established by the transportation planning agency for the area within its jurisdiction.
(d)The money may be allocated without respect to Section 99231 and shall not be included in determining the apportionments to a city or county for purposes of Sections 99233.7 to 99233.9, inclusive.
(e)Facilities provided for the use of bicycles may include projects that serve the needs of commuting bicyclists, including, but not limited to, new trails serving major transportation corridors, secure bicycle parking at employment centers, park and ride lots, and transit terminals where other funds are unavailable.
(f)Notwithstanding any other provision of this section, a planning agency established in Title 7.1 (commencing with Section 66500) of the Government Code may allocate the money to the Association of Bay Area Governments for activities required by Chapter 11 (commencing with Section 5850) of Division 5 of the Public Resources Code.
(g)Notwithstanding any other provision of this section, the transportation planning agencies that allocate funds, pursuant to this section, to the cities and counties with jurisdiction or a sphere of influence within the delta, as defined in Section 5852 of the Public Resources Code, may allocate the money to the Delta Protection Commission for activities required by Chapter 12 (commencing with Section 5852) of Division 5 of the Public Resources Code.
(h)Within 30 days after receiving a request for a review from any city or county, the transportation planning agency shall review its allocations made pursuant to Section 99233.3.
(i)In addition to the purposes authorized in this section, a portion of the amount available to a city or county pursuant to Section 99233.3 may be allocated to develop a comprehensive bicycle and pedestrian facilities plan, with an emphasis on bicycle projects intended to accommodate bicycle commuters rather than recreational bicycle users. An allocation under this subdivision may not be made more than once every five years.
(j)Up to 20 percent of the amount available each year to a city or county pursuant to Section 99233.3 may be allocated to restripe class II bicycle lanes.
SEC. 3.Section 99247 of the Public Utilities Code is amended to read:99247.For purposes of Section 99246, and as used elsewhere in this article:
(a)Operating cost means all costs in the operating expense object classes exclusive of the costs in the depreciation and amortization expense object class of the uniform system of accounts and records adopted by the Controller pursuant to Section 99243. Operating cost excludes all subsidies for commuter rail services operated on railroad lines under the jurisdiction of the Federal Railroad Administration, all direct costs for providing charter services, all vehicle lease costs, and principal and interest payments on capital projects funded with certificates of participation.
(b)Operating cost per passenger means the operating cost divided by the total passengers.
(c)Operating cost per vehicle service hour means the operating cost divided by the vehicle service hours.
(d)Passengers per vehicle service hour means the total passengers divided by the vehicle service hours.
(e)Passengers per vehicle service mile means the total passengers divided by the vehicle service miles.
(f)Total passengers means the number of boarding passengers, whether revenue producing or not, carried by the public transportation system.
(g)Transit vehicle means a vehicle, including, but not limited to, one operated on rails or tracks, which is used for public transportation services funded, in whole or in part, under this chapter.
(h)Vehicle service hours means the total number of hours that each transit vehicle is in revenue service, including layover time.
(i)Vehicle service miles means the total number of miles that each transit vehicle is in revenue service.
(j)Vehicle service hours per employee means the vehicle service hours divided by the number of employees employed in connection with the public transportation system, based on the assumption that 2,000 person-hours of work in one year constitute one employee. The count of employees shall also include those individuals employed by the operator which provide services to the agency of the operator responsible for the operation of the public transportation system even though not employed in that agency.
SEC. 4.Section 99268.2 of the Public Utilities Code is amended to read:99268.2.In the case of an operator required to be in compliance with Section 99268 under Section 99268.1, the operator may be allocated additional funds that could not be allocated to it because of those requirements, if it maintains, for the fiscal year, a ratio of fare revenues to operating cost, as defined by subdivision (a) of Section 99247, at least equal to one-fifth if serving an urbanized area or one-tenth if serving a nonurbanized area.
SEC. 5.Section 99268.3 of the Public Utilities Code is amended to read:99268.3.(a)In the case of an operator that is serving an urbanized area, and that was eligible for funds under this article during the 197879 fiscal year even though not required to be in compliance with Section 99268 or that commenced operation after that fiscal year, the operator shall be eligible for those funds in any fiscal year, commencing with claims for the 198081 fiscal year, if it maintains, for the fiscal year, a ratio of fare revenues to operating cost, as defined by subdivision (a) of Section 99247, at least equal to one-fifth.
(b)In the case of an operator that is serving an urbanized area, and that was in operation during the 197879 fiscal year even though not then eligible for funds under this article, but that has since become eligible for those funds, the operator shall be eligible for the funds in any fiscal year, commencing with the 198081 fiscal year, if it complies with either of the following:
(1)The requirements of Section 99268.
(2)The requirements of subdivision (a).
SEC. 6.Section 99268.4 of the Public Utilities Code is amended to read:99268.4.In the case of an operator that is serving a nonurbanized area, and that was eligible for funds under this article during the 197879 fiscal year even though not required to be in compliance with Section 99268 or that commenced operation after that fiscal year, the operator shall be eligible for those funds in any fiscal year, commencing with claims for the 198081 fiscal year, if it maintains, for the fiscal year, a ratio of fare revenues to operating cost, as defined by subdivision (a) of Section 99247, at least equal to one-tenth.
SEC. 7.Section 99268.17 of the Public Utilities Code is amended to read:99268.17.(a)Notwithstanding subdivision (a) of Section 99247, the following costs shall be excluded from the definition of operating cost for the purposes of calculating any required ratios of fare revenues to operating cost specified in this article:
(1)The additional operating costs required to provide comparable complementary paratransit service as required by Section 37.121 of Title 49 of the Code of Federal Regulations, pursuant to the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.), as identified in the operators paratransit plan pursuant to Section 37.139 of Title 49 of the Code of Federal Regulations that exceed the operators costs required to provide comparable complementary paratransit service in the prior year as adjusted by the Consumer Price Index.
(2)Cost increases beyond the change in the Consumer Price Index for all of the following:
(A)Fuel.
(B)Alternative fuel programs.
(C)Power, including electricity.
(D)Insurance premiums and payments in settlement of claims arising out of the operators liability.
(E)State and federal mandates.
(3)Startup costs for new services for a period of not more than two years.
(b)The exclusion of costs from the definition of operating costs in subdivision (a) applies solely for the purpose of this article and does not authorize an operator to report an operating cost other than as defined in subdivision (a) of Section 99247 or a ratio of fare revenue to operating cost other than as that ratio is described elsewhere in this article, to any of the following entities:
(1)The Controller pursuant to Section 99243.
(2)The entity conducting the fiscal audit pursuant to Section 99245.
(3)The entity conducting the performance audit pursuant to Section 99246.
SEC. 8.Section 99268.19 of the Public Utilities Code is amended to read:99268.19.If fare revenues are insufficient to meet the applicable ratio of fare revenues to operating cost required by this article, an operator may satisfy that requirement by supplementing its fare revenues with local funds. As used in this section, local funds means any nonfederal or nonstate grant funds or other revenues generated by, earned by, or distributed to an operator.
SEC. 9.Section 99314.6 of the Public Utilities Code is amended to read:99314.6.(a)Except as provided in Section 99314.7, the following eligibility standards apply:
(1)Except as provided in paragraph (2), funds shall not be allocated for operating purposes pursuant to Sections 99313 and 99314 to an operator unless the operator meets either of the following efficiency standards:
(A)The operators total operating cost per revenue vehicle hour in the latest year for which audited data are available does not exceed the sum of the preceding years total operating cost per revenue vehicle hour and an amount equal to the product of the percentage change in the Consumer Price Index for the same period multiplied by the preceding years total operating cost per revenue vehicle hour.
(B)The operators average total operating cost per revenue vehicle hour in the latest three years for which audited data are available does not exceed the sum of the average of the total operating cost per revenue vehicle hour in the three years preceding the latest year for which audited data are available and an amount equal to the product of the average percentage change in the Consumer Price Index for the same period multiplied by the average total operating cost per revenue vehicle hour in the same three years.
(2)The transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, as the case may be, shall adjust the calculation of operating costs and revenue vehicle hours pursuant to paragraph (1) to account for either or both of the following factors:
(A)Exclusion of costs increases beyond the change in the Consumer Price Index for fuel; alternative fuel programs; power, including electricity; insurance premiums and payments in settlement of claims arising out of the operators liability; or state or federal mandates, including the additional operating costs required to provide comparable complementary paratransit service as required by Section 37.121 of Title 49 of the Code of Federal Regulations, pursuant to the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.), as identified in the operators paratransit plan pursuant to Section 37.139 of Title 49 of the Code of Federal Regulations.
(B)Exclusion of startup costs for new services for a period of not more than two years.
(3)Funds withheld from allocation to an operator pursuant to paragraph (1) shall be retained by the transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, as the case may be, for reallocation to that operator for two years following the year of ineligibility. In a year in which an operators funds are allocated pursuant to paragraph (1), funds withheld from allocation during a preceding year shall also be allocated. Funds not allocated before the commencement of the third year following the year of ineligibility shall be reallocated to cost effective high priority regional transit activities, as determined by the transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, as the case may be. If that agency or commission, or the board, determines that no cost effective high priority regional transit activity exists, the unallocated funds shall revert to the Controller for reallocation.
(b)As used in this section, the following terms have the following meanings:
(1)Operating cost means the total operating cost as reported by the operator under the Uniform System of Accounts and Records, pursuant to Section 99243 and subdivision (a) of Section 99247.
(2)Revenue vehicle hours has the same meaning as vehicle service hours, as defined in subdivision (h) of Section 99247.
(3)Consumer Price Index, as applied to an operator, is the regional Consumer Price Index for that operators region, as published by the United States Bureau of Labor Statistics. If a regional index is not published, the index for the State of California applies.
(4)New service has the same meaning as extension of public transportation services as defined in Section 99268.8.
(c)The restrictions in this section do not apply to allocations made for capital purposes.
(d)The exclusion of costs increases described in paragraph (2) of subdivision (a) applies solely for the purpose of calculating an operators eligibility to claim funds pursuant to this section and does not authorize an operator to report an operating cost per revenue vehicle hour other than as described in this section and in Section 99247, to any of the following entities:
(1)The Controller pursuant to Section 99243.
(2)The entity conducting the fiscal audit pursuant to Section 99245.
(3)The entity conducting the performance audit pursuant to Section 99246.
(e)The restrictions in this section shall not apply to the allocation of funds made pursuant to Sections 99313 and 99314 after January 1, 2010, and through the 201516 fiscal year.
(f)This section shall become inoperative on July 1, 2016, and, as of January 1, 2017, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2017, deletes or extends the dates on which it becomes inoperative and is repealed.
SEC. 10.Section 99314.6 is added to the Public Utilities Code, to read:99314.6.(a) Except as provided in Section 99314.7, the following eligibility standards apply:
(1)Except as provided in paragraph (3), funds shall be allocated for operating or capital purposes pursuant to Sections 99313 and 99314 to an operator if the operator meets either of the following efficiency standards:
(A)The operator shall receive its entire allocation, and any or all of this allocation may be used for operating purposes, if the operators total operating cost per revenue vehicle hour in the latest year for which audited data are available does not exceed the sum of the preceding years total operating cost per revenue vehicle hour and an amount equal to the product of the percentage change in the Consumer Price Index for the same period multiplied by the preceding years total operating cost per revenue vehicle hour.
(B)The operator shall receive its entire allocation, and any or all of this allocation may be used for operating purposes, if the operators average total operating cost per revenue vehicle hour in the latest three years for which audited data are available does not exceed the sum of the average of the total operating cost per revenue vehicle hour in the three years preceding the latest year for which audited data are available and an amount equal to the product of the average percentage change in the Consumer Price Index for the same period multiplied by the average total operating cost per revenue vehicle hour in the same three years.
(2)If an operator does not meet either efficiency standard under paragraph (1), the operator shall receive its entire allocation and the funds shall be allocated pursuant to this paragraph. The portion of the allocation that the operator may use for operations shall be the total allocation to the operator reduced by the lowest percentage by which the operators total operating cost per revenue vehicle hour for the applicable year or three-year period calculated pursuant to subparagraph (A) or (B) of paragraph (1) exceeded the target amount necessary to meet the applicable efficiency standard. The remaining portion of the operators allocation shall be used only for capital purposes.
(3)The transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, as the case may be, shall adjust the calculation of operating costs and revenue vehicle hours pursuant to paragraph (1) to account for either or both of the following factors:
(A)Exclusion of cost increases beyond the change in the Consumer Price Index for fuel; alternative fuel programs; power, including electricity; insurance premiums and payments in settlement of claims arising out of the operators liability; or state or federal mandates, including the additional operating costs required to provide comparable complementary paratransit service as required by Section 37.121 of Title 49 of the Code of Federal Regulations, pursuant to the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.), as identified in the operators paratransit plan pursuant to Section 37.139 of Title 49 of the Code of Federal Regulations.
(B)Exclusion of startup costs for new services for a period of not more than two years.
(b)As used in this section, the following terms have the following meanings:
(1)Operating cost means the total operating cost as reported by the operator under the uniform system of accounts and records, pursuant to Section 99243 and subdivision (a) of Section 99247.
(2)Revenue vehicle hours has the same meaning as vehicle service hours, as defined in subdivision (h) of Section 99247.
(3)Consumer Price Index, as applied to an operator, is the regional Consumer Price Index for that operators region, as published by the United States Bureau of Labor Statistics. If a regional index is not published, the index for the State of California applies.
(4)New service has the same meaning as extension of public transportation services as defined in Section 99268.8.
(c)The restrictions in this section do not apply to allocations made for capital purposes.
(d)The exclusion of cost increases described in paragraph (3) of subdivision (a) applies solely for the purpose of calculating an operators eligibility to claim funds pursuant to this section and does not authorize an operator to report an operating cost per revenue vehicle hour, other than as described in this section and in Section 99247, to any of the following entities:
(1)The Controller pursuant to Section 99243.
(2)The entity conducting the fiscal audit pursuant to Section 99245.
(3)The entity conducting the performance audit pursuant to Section 99246.
(e)This section shall become operative on July 1, 2016.
Two percent of the remaining money in the fund shall be made available to counties and cities for facilities provided for the exclusive use of pedestrians and bicycles unless the transportation planning agency finds that the money could be used to better advantage for the purposes stated in Article 4 (commencing with Section 99260) and Article 4.5 (commencing with Section 99275), or for local street and road purposes in those areas where the money may be expended for those purposes, in the development of a balanced transportation system. Of the amount made available to a city or county pursuant to this section, 5 percent thereof may be expended to supplement moneys from other sources to fund bicycle and pedestrian safety education programs, but shall not be used to fully fund the salary of any one person.
SEC. 2.Section 99234 of the Public Utilities Code is amended to read:99234.(a)Claims for facilities provided for the exclusive use of pedestrians and bicycles or for bicycle and pedestrian safety education programs shall be filed according to the rules and regulations adopted by the transportation planning agency.
(b)The money shall be allocated for the construction, including related engineering expenses, of those facilities pursuant to procedures or criteria established by the transportation planning agency for the area within its jurisdiction, or for bicycle and pedestrian safety education programs.
(c)The money may be allocated for the maintenance of bicycling trails that are closed to motorized traffic pursuant to procedures or criteria established by the transportation planning agency for the area within its jurisdiction.
(d)The money may be allocated without respect to Section 99231 and shall not be included in determining the apportionments to a city or county for purposes of Sections 99233.7 to 99233.9, inclusive.
(e)Facilities provided for the use of bicycles may include projects that serve the needs of commuting bicyclists, including, but not limited to, new trails serving major transportation corridors, secure bicycle parking at employment centers, park and ride lots, and transit terminals where other funds are unavailable.
(f)Notwithstanding any other provision of this section, a planning agency established in Title 7.1 (commencing with Section 66500) of the Government Code may allocate the money to the Association of Bay Area Governments for activities required by Chapter 11 (commencing with Section 5850) of Division 5 of the Public Resources Code.
(g)Notwithstanding any other provision of this section, the transportation planning agencies that allocate funds, pursuant to this section, to the cities and counties with jurisdiction or a sphere of influence within the delta, as defined in Section 5852 of the Public Resources Code, may allocate the money to the Delta Protection Commission for activities required by Chapter 12 (commencing with Section 5852) of Division 5 of the Public Resources Code.
(h)Within 30 days after receiving a request for a review from any city or county, the transportation planning agency shall review its allocations made pursuant to Section 99233.3.
(i)In addition to the purposes authorized in this section, a portion of the amount available to a city or county pursuant to Section 99233.3 may be allocated to develop a comprehensive bicycle and pedestrian facilities plan, with an emphasis on bicycle projects intended to accommodate bicycle commuters rather than recreational bicycle users. An allocation under this subdivision may not be made more than once every five years.
(j)Up to 20 percent of the amount available each year to a city or county pursuant to Section 99233.3 may be allocated to restripe class II bicycle lanes.
SEC. 3.Section 99247 of the Public Utilities Code is amended to read:99247.For purposes of Section 99246, and as used elsewhere in this article:
(a)Operating cost means all costs in the operating expense object classes exclusive of the costs in the depreciation and amortization expense object class of the uniform system of accounts and records adopted by the Controller pursuant to Section 99243. Operating cost excludes all subsidies for commuter rail services operated on railroad lines under the jurisdiction of the Federal Railroad Administration, all direct costs for providing charter services, all vehicle lease costs, and principal and interest payments on capital projects funded with certificates of participation.
(b)Operating cost per passenger means the operating cost divided by the total passengers.
(c)Operating cost per vehicle service hour means the operating cost divided by the vehicle service hours.
(d)Passengers per vehicle service hour means the total passengers divided by the vehicle service hours.
(e)Passengers per vehicle service mile means the total passengers divided by the vehicle service miles.
(f)Total passengers means the number of boarding passengers, whether revenue producing or not, carried by the public transportation system.
(g)Transit vehicle means a vehicle, including, but not limited to, one operated on rails or tracks, which is used for public transportation services funded, in whole or in part, under this chapter.
(h)Vehicle service hours means the total number of hours that each transit vehicle is in revenue service, including layover time.
(i)Vehicle service miles means the total number of miles that each transit vehicle is in revenue service.
(j)Vehicle service hours per employee means the vehicle service hours divided by the number of employees employed in connection with the public transportation system, based on the assumption that 2,000 person-hours of work in one year constitute one employee. The count of employees shall also include those individuals employed by the operator which provide services to the agency of the operator responsible for the operation of the public transportation system even though not employed in that agency.
SEC. 4.Section 99268.2 of the Public Utilities Code is amended to read:99268.2.In the case of an operator required to be in compliance with Section 99268 under Section 99268.1, the operator may be allocated additional funds that could not be allocated to it because of those requirements, if it maintains, for the fiscal year, a ratio of fare revenues to operating cost, as defined by subdivision (a) of Section 99247, at least equal to one-fifth if serving an urbanized area or one-tenth if serving a nonurbanized area.
SEC. 5.Section 99268.3 of the Public Utilities Code is amended to read:99268.3.(a)In the case of an operator that is serving an urbanized area, and that was eligible for funds under this article during the 197879 fiscal year even though not required to be in compliance with Section 99268 or that commenced operation after that fiscal year, the operator shall be eligible for those funds in any fiscal year, commencing with claims for the 198081 fiscal year, if it maintains, for the fiscal year, a ratio of fare revenues to operating cost, as defined by subdivision (a) of Section 99247, at least equal to one-fifth.
(b)In the case of an operator that is serving an urbanized area, and that was in operation during the 197879 fiscal year even though not then eligible for funds under this article, but that has since become eligible for those funds, the operator shall be eligible for the funds in any fiscal year, commencing with the 198081 fiscal year, if it complies with either of the following:
(1)The requirements of Section 99268.
(2)The requirements of subdivision (a).
SEC. 6.Section 99268.4 of the Public Utilities Code is amended to read:99268.4.In the case of an operator that is serving a nonurbanized area, and that was eligible for funds under this article during the 197879 fiscal year even though not required to be in compliance with Section 99268 or that commenced operation after that fiscal year, the operator shall be eligible for those funds in any fiscal year, commencing with claims for the 198081 fiscal year, if it maintains, for the fiscal year, a ratio of fare revenues to operating cost, as defined by subdivision (a) of Section 99247, at least equal to one-tenth.
SEC. 7.Section 99268.17 of the Public Utilities Code is amended to read:99268.17.(a)Notwithstanding subdivision (a) of Section 99247, the following costs shall be excluded from the definition of operating cost for the purposes of calculating any required ratios of fare revenues to operating cost specified in this article:
(1)The additional operating costs required to provide comparable complementary paratransit service as required by Section 37.121 of Title 49 of the Code of Federal Regulations, pursuant to the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.), as identified in the operators paratransit plan pursuant to Section 37.139 of Title 49 of the Code of Federal Regulations that exceed the operators costs required to provide comparable complementary paratransit service in the prior year as adjusted by the Consumer Price Index.
(2)Cost increases beyond the change in the Consumer Price Index for all of the following:
(A)Fuel.
(B)Alternative fuel programs.
(C)Power, including electricity.
(D)Insurance premiums and payments in settlement of claims arising out of the operators liability.
(E)State and federal mandates.
(3)Startup costs for new services for a period of not more than two years.
(b)The exclusion of costs from the definition of operating costs in subdivision (a) applies solely for the purpose of this article and does not authorize an operator to report an operating cost other than as defined in subdivision (a) of Section 99247 or a ratio of fare revenue to operating cost other than as that ratio is described elsewhere in this article, to any of the following entities:
(1)The Controller pursuant to Section 99243.
(2)The entity conducting the fiscal audit pursuant to Section 99245.
(3)The entity conducting the performance audit pursuant to Section 99246.
SEC. 8.Section 99268.19 of the Public Utilities Code is amended to read:99268.19.If fare revenues are insufficient to meet the applicable ratio of fare revenues to operating cost required by this article, an operator may satisfy that requirement by supplementing its fare revenues with local funds. As used in this section, local funds means any nonfederal or nonstate grant funds or other revenues generated by, earned by, or distributed to an operator.
SEC. 9.Section 99314.6 of the Public Utilities Code is amended to read:99314.6.(a)Except as provided in Section 99314.7, the following eligibility standards apply:
(1)Except as provided in paragraph (2), funds shall not be allocated for operating purposes pursuant to Sections 99313 and 99314 to an operator unless the operator meets either of the following efficiency standards:
(A)The operators total operating cost per revenue vehicle hour in the latest year for which audited data are available does not exceed the sum of the preceding years total operating cost per revenue vehicle hour and an amount equal to the product of the percentage change in the Consumer Price Index for the same period multiplied by the preceding years total operating cost per revenue vehicle hour.
(B)The operators average total operating cost per revenue vehicle hour in the latest three years for which audited data are available does not exceed the sum of the average of the total operating cost per revenue vehicle hour in the three years preceding the latest year for which audited data are available and an amount equal to the product of the average percentage change in the Consumer Price Index for the same period multiplied by the average total operating cost per revenue vehicle hour in the same three years.
(2)The transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, as the case may be, shall adjust the calculation of operating costs and revenue vehicle hours pursuant to paragraph (1) to account for either or both of the following factors:
(A)Exclusion of costs increases beyond the change in the Consumer Price Index for fuel; alternative fuel programs; power, including electricity; insurance premiums and payments in settlement of claims arising out of the operators liability; or state or federal mandates, including the additional operating costs required to provide comparable complementary paratransit service as required by Section 37.121 of Title 49 of the Code of Federal Regulations, pursuant to the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.), as identified in the operators paratransit plan pursuant to Section 37.139 of Title 49 of the Code of Federal Regulations.
(B)Exclusion of startup costs for new services for a period of not more than two years.
(3)Funds withheld from allocation to an operator pursuant to paragraph (1) shall be retained by the transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, as the case may be, for reallocation to that operator for two years following the year of ineligibility. In a year in which an operators funds are allocated pursuant to paragraph (1), funds withheld from allocation during a preceding year shall also be allocated. Funds not allocated before the commencement of the third year following the year of ineligibility shall be reallocated to cost effective high priority regional transit activities, as determined by the transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, as the case may be. If that agency or commission, or the board, determines that no cost effective high priority regional transit activity exists, the unallocated funds shall revert to the Controller for reallocation.
(b)As used in this section, the following terms have the following meanings:
(1)Operating cost means the total operating cost as reported by the operator under the Uniform System of Accounts and Records, pursuant to Section 99243 and subdivision (a) of Section 99247.
(2)Revenue vehicle hours has the same meaning as vehicle service hours, as defined in subdivision (h) of Section 99247.
(3)Consumer Price Index, as applied to an operator, is the regional Consumer Price Index for that operators region, as published by the United States Bureau of Labor Statistics. If a regional index is not published, the index for the State of California applies.
(4)New service has the same meaning as extension of public transportation services as defined in Section 99268.8.
(c)The restrictions in this section do not apply to allocations made for capital purposes.
(d)The exclusion of costs increases described in paragraph (2) of subdivision (a) applies solely for the purpose of calculating an operators eligibility to claim funds pursuant to this section and does not authorize an operator to report an operating cost per revenue vehicle hour other than as described in this section and in Section 99247, to any of the following entities:
(1)The Controller pursuant to Section 99243.
(2)The entity conducting the fiscal audit pursuant to Section 99245.
(3)The entity conducting the performance audit pursuant to Section 99246.
(e)The restrictions in this section shall not apply to the allocation of funds made pursuant to Sections 99313 and 99314 after January 1, 2010, and through the 201516 fiscal year.
(f)This section shall become inoperative on July 1, 2016, and, as of January 1, 2017, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2017, deletes or extends the dates on which it becomes inoperative and is repealed.
SEC. 10.Section 99314.6 is added to the Public Utilities Code, to read:99314.6.(a)Except as provided in Section 99314.7, the following eligibility standards apply:
(1)Except as provided in paragraph (2), funds shall not be allocated for operating purposes pursuant to Sections 99313 and 99314 to an operator unless the operator meets either of the following efficiency standards:
(A)The operators total operating cost per revenue vehicle hour in the latest year for which audited data are available does not exceed the sum of the preceding years total operating cost per revenue vehicle hour and an amount equal to the product of the percentage change in the Consumer Price Index for the same period multiplied by the preceding years total operating cost per revenue vehicle hour.
(B)The operators average total operating cost per revenue vehicle hour in the latest three years for which audited data are available does not exceed the sum of the average of the total operating cost per revenue vehicle hour in the three years preceding the latest year for which audited data are available and an amount equal to the product of the average percentage change in the Consumer Price Index for the same period multiplied by the average total operating cost per revenue vehicle hour in the same three years.
(2)The transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, as the case may be, shall adjust the calculation of operating costs and revenue vehicle hours pursuant to paragraph (1) to account for either or both of the following factors:
(A)Exclusion of costs increases beyond the change in the Consumer Price Index for fuel; alternative fuel programs; power, including electricity; insurance premiums and payments in settlement of claims arising out of the operators liability; or state or federal mandates, including the additional operating costs required to provide comparable complementary paratransit service as required by Section 37.121 of Title 49 of the Code of Federal Regulations, pursuant to the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.), as identified in the operators paratransit plan pursuant to Section 37.139 of Title 49 of the Code of Federal Regulations.
(B)Exclusion of startup costs for new services for a period of not more than two years.
(3)Funds withheld from allocation to an operator pursuant to paragraph (1) shall be retained by the transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, as the case may be, for reallocation to that operator for two years following the year of ineligibility. In a year in which an operators funds are allocated pursuant to paragraph (1), funds withheld from allocation during a preceding year shall also be allocated. Funds not allocated before the commencement of the third year following the year of ineligibility shall be reallocated to cost effective high priority regional transit activities, as determined by the transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, as the case may be. If that agency or commission, or the board, determines that no cost effective high priority regional transit activity exists, the unallocated funds shall revert to the Controller for reallocation.
(b)As used in this section, the following terms have the following meanings:
(1)Operating cost means the total operating cost as reported by the operator under the Uniform System of Accounts and Records, pursuant to Section 99243 and subdivision (a) of Section 99247.
(2)Revenue vehicle hours has the same meaning as vehicle service hours, as defined in subdivision (h) of Section 99247.
(3)Consumer Price Index, as applied to an operator, is the regional Consumer Price Index for that operators region, as published by the United States Bureau of Labor Statistics. If a regional index is not published, the index for the State of California applies.
(4)New service has the same meaning as extension of public transportation services as defined in Section 99268.8.
(c)The restrictions in this section do not apply to allocations made for capital purposes.
(d)The exclusion of costs increases described in paragraph (2) of subdivision (a) applies solely for the purpose of calculating an operators eligibility to claim funds pursuant to this section and does not authorize an operator to report an operating cost per revenue vehicle hour other than as described in this section and in Section 99247, to any of the following entities:
(1)The Controller pursuant to Section 99243.
(2)The entity conducting the fiscal audit pursuant to Section 99245.
(3)The entity conducting the performance audit pursuant to Section 99246.
(e)This section shall become operative on July 1, 2016.
SEC. 10.Section 99314.6 is added to the Public Utilities Code, to read:99314.6.(a) Except as provided in Section 99314.7, the following eligibility standards apply:
(1)Except as provided in paragraph (3), funds shall be allocated for operating or capital purposes pursuant to Sections 99313 and 99314 to an operator if the operator meets either of the following efficiency standards:
(A)The operator shall receive its entire allocation, and any or all of this allocation may be used for operating purposes, if the operators total operating cost per revenue vehicle hour in the latest year for which audited data are available does not exceed the sum of the preceding years total operating cost per revenue vehicle hour and an amount equal to the product of the percentage change in the Consumer Price Index for the same period multiplied by the preceding years total operating cost per revenue vehicle hour.
(B)The operator shall receive its entire allocation, and any or all of this allocation may be used for operating purposes, if the operators average total operating cost per revenue vehicle hour in the latest three years for which audited data are available does not exceed the sum of the average of the total operating cost per revenue vehicle hour in the three years preceding the latest year for which audited data are available and an amount equal to the product of the average percentage change in the Consumer Price Index for the same period multiplied by the average total operating cost per revenue vehicle hour in the same three years.
(2)If an operator does not meet either efficiency standard under paragraph (1), the operator shall receive its entire allocation and the funds shall be allocated pursuant to this paragraph. The portion of the allocation that the operator may use for operations shall be the total allocation to the operator reduced by the lowest percentage by which the operators total operating cost per revenue vehicle hour for the applicable year or three-year period calculated pursuant to subparagraph (A) or (B) of paragraph (1) exceeded the target amount necessary to meet the applicable efficiency standard. The remaining portion of the operators allocation shall be used only for capital purposes.
(3)The transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, as the case may be, shall adjust the calculation of operating costs and revenue vehicle hours pursuant to paragraph (1) to account for either or both of the following factors:
(A)Exclusion of cost increases beyond the change in the Consumer Price Index for fuel; alternative fuel programs; power, including electricity; insurance premiums and payments in settlement of claims arising out of the operators liability; or state or federal mandates, including the additional operating costs required to provide comparable complementary paratransit service as required by Section 37.121 of Title 49 of the Code of Federal Regulations, pursuant to the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.), as identified in the operators paratransit plan pursuant to Section 37.139 of Title 49 of the Code of Federal Regulations.
(B)Exclusion of startup costs for new services for a period of not more than two years.
(b)As used in this section, the following terms have the following meanings:
(1)Operating cost means the total operating cost as reported by the operator under the uniform system of accounts and records, pursuant to Section 99243 and subdivision (a) of Section 99247.
(2)Revenue vehicle hours has the same meaning as vehicle service hours, as defined in subdivision (h) of Section 99247.
(3)Consumer Price Index, as applied to an operator, is the regional Consumer Price Index for that operators region, as published by the United States Bureau of Labor Statistics. If a regional index is not published, the index for the State of California applies.
(4)New service has the same meaning as extension of public transportation services as defined in Section 99268.8.
(c)The restrictions in this section do not apply to allocations made for capital purposes.
(d)The exclusion of cost increases described in paragraph (3) of subdivision (a) applies solely for the purpose of calculating an operators eligibility to claim funds pursuant to this section and does not authorize an operator to report an operating cost per revenue vehicle hour, other than as described in this section and in Section 99247, to any of the following entities:
(1)The Controller pursuant to Section 99243.
(2)The entity conducting the fiscal audit pursuant to Section 99245.
(3)The entity conducting the performance audit pursuant to Section 99246.
(e)This section shall become operative on July 1, 2016.
Two percent of the remaining money in the fund shall be made available to counties and cities for facilities provided for the exclusive use of pedestrians and bicycles unless the transportation planning agency finds that the money could be used to better advantage for the purposes stated in Article 4 (commencing with Section 99260) and Article 4.5 (commencing with Section 99275), or for local street and road purposes in those areas where the money may be expended for those purposes, in the development of a balanced transportation system. Of the amount made available to a city or county pursuant to this section, 5 percent thereof may be expended to supplement moneys from other sources to fund bicycle and pedestrian safety education programs, but shall not be used to fully fund the salary of any one person.
SEC. 2.Section 99234 of the Public Utilities Code is amended to read:99234.(a)Claims for facilities provided for the exclusive use of pedestrians and bicycles or for bicycle and pedestrian safety education programs shall be filed according to the rules and regulations adopted by the transportation planning agency.
(b)The money shall be allocated for the construction, including related engineering expenses, of those facilities pursuant to procedures or criteria established by the transportation planning agency for the area within its jurisdiction, or for bicycle and pedestrian safety education programs.
(c)The money may be allocated for the maintenance of bicycling trails that are closed to motorized traffic pursuant to procedures or criteria established by the transportation planning agency for the area within its jurisdiction.
(d)The money may be allocated without respect to Section 99231 and shall not be included in determining the apportionments to a city or county for purposes of Sections 99233.7 to 99233.9, inclusive.
(e)Facilities provided for the use of bicycles may include projects that serve the needs of commuting bicyclists, including, but not limited to, new trails serving major transportation corridors, secure bicycle parking at employment centers, park and ride lots, and transit terminals where other funds are unavailable.
(f)Notwithstanding any other provision of this section, a planning agency established in Title 7.1 (commencing with Section 66500) of the Government Code may allocate the money to the Association of Bay Area Governments for activities required by Chapter 11 (commencing with Section 5850) of Division 5 of the Public Resources Code.
(g)Notwithstanding any other provision of this section, the transportation planning agencies that allocate funds, pursuant to this section, to the cities and counties with jurisdiction or a sphere of influence within the delta, as defined in Section 5852 of the Public Resources Code, may allocate the money to the Delta Protection Commission for activities required by Chapter 12 (commencing with Section 5852) of Division 5 of the Public Resources Code.
(h)Within 30 days after receiving a request for a review from any city or county, the transportation planning agency shall review its allocations made pursuant to Section 99233.3.
(i)In addition to the purposes authorized in this section, a portion of the amount available to a city or county pursuant to Section 99233.3 may be allocated to develop a comprehensive bicycle and pedestrian facilities plan, with an emphasis on bicycle projects intended to accommodate bicycle commuters rather than recreational bicycle users. An allocation under this subdivision may not be made more than once every five years.
(j)Up to 20 percent of the amount available each year to a city or county pursuant to Section 99233.3 may be allocated to restripe class II bicycle lanes.
SEC. 3.Section 99247 of the Public Utilities Code is amended to read:99247.For purposes of Section 99246, and as used elsewhere in this article:
(a)Operating cost means all costs in the operating expense object classes exclusive of the costs in the depreciation and amortization expense object class of the uniform system of accounts and records adopted by the Controller pursuant to Section 99243. Operating cost excludes all subsidies for commuter rail services operated on railroad lines under the jurisdiction of the Federal Railroad Administration, all direct costs for providing charter services, all vehicle lease costs, and principal and interest payments on capital projects funded with certificates of participation.
(b)Operating cost per passenger means the operating cost divided by the total passengers.
(c)Operating cost per vehicle service hour means the operating cost divided by the vehicle service hours.
(d)Passengers per vehicle service hour means the total passengers divided by the vehicle service hours.
(e)Passengers per vehicle service mile means the total passengers divided by the vehicle service miles.
(f)Total passengers means the number of boarding passengers, whether revenue producing or not, carried by the public transportation system.
(g)Transit vehicle means a vehicle, including, but not limited to, one operated on rails or tracks, which is used for public transportation services funded, in whole or in part, under this chapter.
(h)Vehicle service hours means the total number of hours that each transit vehicle is in revenue service, including layover time.
(i)Vehicle service miles means the total number of miles that each transit vehicle is in revenue service.
(j)Vehicle service hours per employee means the vehicle service hours divided by the number of employees employed in connection with the public transportation system, based on the assumption that 2,000 person-hours of work in one year constitute one employee. The count of employees shall also include those individuals employed by the operator which provide services to the agency of the operator responsible for the operation of the public transportation system even though not employed in that agency.
SEC. 4.Section 99268.2 of the Public Utilities Code is amended to read:99268.2.In the case of an operator required to be in compliance with Section 99268 under Section 99268.1, the operator may be allocated additional funds that could not be allocated to it because of those requirements, if it maintains, for the fiscal year, a ratio of fare revenues to operating cost, as defined by subdivision (a) of Section 99247, at least equal to one-fifth if serving an urbanized area or one-tenth if serving a nonurbanized area.
SEC. 5.Section 99268.3 of the Public Utilities Code is amended to read:99268.3.(a)In the case of an operator that is serving an urbanized area, and that was eligible for funds under this article during the 197879 fiscal year even though not required to be in compliance with Section 99268 or that commenced operation after that fiscal year, the operator shall be eligible for those funds in any fiscal year, commencing with claims for the 198081 fiscal year, if it maintains, for the fiscal year, a ratio of fare revenues to operating cost, as defined by subdivision (a) of Section 99247, at least equal to one-fifth.
(b)In the case of an operator that is serving an urbanized area, and that was in operation during the 197879 fiscal year even though not then eligible for funds under this article, but that has since become eligible for those funds, the operator shall be eligible for the funds in any fiscal year, commencing with the 198081 fiscal year, if it complies with either of the following:
(1)The requirements of Section 99268.
(2)The requirements of subdivision (a).
SEC. 6.Section 99268.4 of the Public Utilities Code is amended to read:99268.4.In the case of an operator that is serving a nonurbanized area, and that was eligible for funds under this article during the 197879 fiscal year even though not required to be in compliance with Section 99268 or that commenced operation after that fiscal year, the operator shall be eligible for those funds in any fiscal year, commencing with claims for the 198081 fiscal year, if it maintains, for the fiscal year, a ratio of fare revenues to operating cost, as defined by subdivision (a) of Section 99247, at least equal to one-tenth.
SEC. 7.Section 99268.17 of the Public Utilities Code is amended to read:99268.17.(a)Notwithstanding subdivision (a) of Section 99247, the following costs shall be excluded from the definition of operating cost for the purposes of calculating any required ratios of fare revenues to operating cost specified in this article:
(1)The additional operating costs required to provide comparable complementary paratransit service as required by Section 37.121 of Title 49 of the Code of Federal Regulations, pursuant to the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.), as identified in the operators paratransit plan pursuant to Section 37.139 of Title 49 of the Code of Federal Regulations that exceed the operators costs required to provide comparable complementary paratransit service in the prior year as adjusted by the Consumer Price Index.
(2)Cost increases beyond the change in the Consumer Price Index for all of the following:
(A)Fuel.
(B)Alternative fuel programs.
(C)Power, including electricity.
(D)Insurance premiums and payments in settlement of claims arising out of the operators liability.
(E)State and federal mandates.
(3)Startup costs for new services for a period of not more than two years.
(b)The exclusion of costs from the definition of operating costs in subdivision (a) applies solely for the purpose of this article and does not authorize an operator to report an operating cost other than as defined in subdivision (a) of Section 99247 or a ratio of fare revenue to operating cost other than as that ratio is described elsewhere in this article, to any of the following entities:
(1)The Controller pursuant to Section 99243.
(2)The entity conducting the fiscal audit pursuant to Section 99245.
(3)The entity conducting the performance audit pursuant to Section 99246.
SEC. 8.Section 99268.19 of the Public Utilities Code is amended to read:99268.19.If fare revenues are insufficient to meet the applicable ratio of fare revenues to operating cost required by this article, an operator may satisfy that requirement by supplementing its fare revenues with local funds. As used in this section, local funds means any nonfederal or nonstate grant funds or other revenues generated by, earned by, or distributed to an operator.
SEC. 9.Section 99314.6 of the Public Utilities Code is amended to read:99314.6.(a)Except as provided in Section 99314.7, the following eligibility standards apply:
(1)Except as provided in paragraph (3), funds shall be allocated for operating or capital purposes pursuant to Sections 99313 and 99314 to an operator if the operator meets either of the following efficiency standards:
(A)The operator shall receive its entire allocation, and any or all of this allocation may be used for operating purposes, if the operators total operating cost per revenue vehicle hour in the latest year for which audited data are available does not exceed the sum of the preceding years total operating cost per revenue vehicle hour and an amount equal to the product of the percentage change in the Consumer Price Index for the same period multiplied by the preceding years total operating cost per revenue vehicle hour.
(B)The operator shall receive its entire allocation, and any or all of this allocation may be used for operating purposes, if the operators average total operating cost per revenue vehicle hour in the latest three years for which audited data are available does not exceed the sum of the average of the total operating cost per revenue vehicle hour in the three years preceding the latest year for which audited data are available and an amount equal to the product of the average percentage change in the Consumer Price Index for the same period multiplied by the average total operating cost per revenue vehicle hour in the same three years.
(2)If an operator does not meet either efficiency standard under paragraph (1), the operator shall receive its entire allocation and the funds shall be allocated pursuant to this paragraph. The portion of the allocation that the operator may use for operations shall be the total allocation to the operator reduced by the lowest percentage by which the operators total operating cost per revenue vehicle hour for the applicable year or three-year period calculated pursuant to subparagraph (A) or (B) of paragraph (1) exceeded the target amount necessary to meet the applicable efficiency standard. The remaining portion of the operators allocation shall be used only for capital purposes.
(3)The transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, as the case may be, shall adjust the calculation of operating costs and revenue vehicle hours pursuant to paragraph (1) to account for either or both of the following factors:
(A)Exclusion of cost increases beyond the change in the Consumer Price Index for fuel; alternative fuel programs; power, including electricity; insurance premiums and payments in settlement of claims arising out of the operators liability; or state or federal mandates, including the additional operating costs required to provide comparable complementary paratransit service as required by Section 37.121 of Title 49 of the Code of Federal Regulations, pursuant to the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.), as identified in the operators paratransit plan pursuant to Section 37.139 of Title 49 of the Code of Federal Regulations.
(B)Exclusion of startup costs for new services for a period of not more than two years.
(b)As used in this section, the following terms have the following meanings:
(1)Operating cost means the total operating cost as reported by the operator under the Uniform System of Accounts and Records, pursuant to Section 99243 and subdivision (a) of Section 99247.
(2)Revenue vehicle hours has the same meaning as vehicle service hours, as defined in subdivision (h) of Section 99247.
(3)Consumer Price Index, as applied to an operator, is the regional Consumer Price Index for that operators region, as published by the United States Bureau of Labor Statistics. If a regional index is not published, the index for the State of California applies.
(4)New service has the same meaning as extension of public transportation services as defined in Section 99268.8.
(c)The restrictions in this section do not apply to allocations made for capital purposes.
(d)The exclusion of cost increases described in paragraph (3) of subdivision (a) applies solely for the purpose of calculating an operators eligibility to claim funds pursuant to this section and does not authorize an operator to report an operating cost per revenue vehicle hour other than as described in this section and in Section 99247, to any of the following entities:
(1)The Controller pursuant to Section 99243.
(2)The entity conducting the fiscal audit pursuant to Section 99245.
(3)The entity conducting the performance audit pursuant to Section 99246.
SEC. 9.Section 99314.6 of the Public Utilities Code is amended to read:99314.6.(a)Except as provided in Section 99314.7, the following eligibility standards apply:
(1)Except as provided in paragraph (2), funds shall not be allocated for operating purposes pursuant to Sections 99313 and 99314 to an operator unless the operator meets either of the following efficiency standards:
(A)The operators total operating cost per revenue vehicle hour in the latest year for which audited data are available does not exceed the sum of the preceding years total operating cost per revenue vehicle hour and an amount equal to the product of the percentage change in the Consumer Price Index for the same period multiplied by the preceding years total operating cost per revenue vehicle hour.
(B)The operators average total operating cost per revenue vehicle hour in the latest three years for which audited data are available does not exceed the sum of the average of the total operating cost per revenue vehicle hour in the three years preceding the latest year for which audited data are available and an amount equal to the product of the average percentage change in the Consumer Price Index for the same period multiplied by the average total operating cost per revenue vehicle hour in the same three years.
(2)The transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, as the case may be, shall adjust the calculation of operating costs and revenue vehicle hours pursuant to paragraph (1) to account for either or both of the following factors:
(A)Exclusion of costs increases beyond the change in the Consumer Price Index for fuel; alternative fuel programs; power, including electricity; insurance premiums and payments in settlement of claims arising out of the operators liability; or state or federal mandates, including the additional operating costs required to provide comparable complementary paratransit service as required by Section 37.121 of Title 49 of the Code of Federal Regulations, pursuant to the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.), as identified in the operators paratransit plan pursuant to Section 37.139 of Title 49 of the Code of Federal Regulations.
(B)Exclusion of startup costs for new services for a period of not more than two years.
(3)Funds withheld from allocation to an operator pursuant to paragraph (1) shall be retained by the transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, as the case may be, for reallocation to that operator for two years following the year of ineligibility. In a year in which an operators funds are allocated pursuant to paragraph (1), funds withheld from allocation during a preceding year shall also be allocated. Funds not allocated before the commencement of the third year following the year of ineligibility shall be reallocated to cost effective high priority regional transit activities, as determined by the transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, as the case may be. If that agency or commission, or the board, determines that no cost effective high priority regional transit activity exists, the unallocated funds shall revert to the Controller for reallocation.
(b)As used in this section, the following terms have the following meanings:
(1)Operating cost means the total operating cost as reported by the operator under the Uniform System of Accounts and Records, pursuant to Section 99243 and subdivision (a) of Section 99247.
(2)Revenue vehicle hours has the same meaning as vehicle service hours, as defined in subdivision (h) of Section 99247.
(3)Consumer Price Index, as applied to an operator, is the regional Consumer Price Index for that operators region, as published by the United States Bureau of Labor Statistics. If a regional index is not published, the index for the State of California applies.
(4)New service has the same meaning as extension of public transportation services as defined in Section 99268.8.
(c)The restrictions in this section do not apply to allocations made for capital purposes.
(d)The exclusion of costs increases described in paragraph (2) of subdivision (a) applies solely for the purpose of calculating an operators eligibility to claim funds pursuant to this section and does not authorize an operator to report an operating cost per revenue vehicle hour other than as described in this section and in Section 99247, to any of the following entities:
(1)The Controller pursuant to Section 99243.
(2)The entity conducting the fiscal audit pursuant to Section 99245.
(3)The entity conducting the performance audit pursuant to Section 99246.
(e)The restrictions in this section shall not apply to the allocation of funds made pursuant to Sections 99313 and 99314 after January 1, 2010, and through the 201516 fiscal year.
(f)This section shall become inoperative on July 1, 2016, and, as of January 1, 2017, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2017, deletes or extends the dates on which it becomes inoperative and is repealed.
SEC. 10.Section 99314.6 is added to the Public Utilities Code, to read:99314.6.(a)Except as provided in Section 99314.7, the following eligibility standards apply:
(1)Except as provided in paragraph (2), funds shall not be allocated for operating purposes pursuant to Sections 99313 and 99314 to an operator unless the operator meets either of the following efficiency standards:
(A)The operators total operating cost per revenue vehicle hour in the latest year for which audited data are available does not exceed the sum of the preceding years total operating cost per revenue vehicle hour and an amount equal to the product of the percentage change in the Consumer Price Index for the same period multiplied by the preceding years total operating cost per revenue vehicle hour.
(B)The operators average total operating cost per revenue vehicle hour in the latest three years for which audited data are available does not exceed the sum of the average of the total operating cost per revenue vehicle hour in the three years preceding the latest year for which audited data are available and an amount equal to the product of the average percentage change in the Consumer Price Index for the same period multiplied by the average total operating cost per revenue vehicle hour in the same three years.
(2)The transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, as the case may be, shall adjust the calculation of operating costs and revenue vehicle hours pursuant to paragraph (1) to account for either or both of the following factors:
(A)Exclusion of costs increases beyond the change in the Consumer Price Index for fuel; alternative fuel programs; power, including electricity; insurance premiums and payments in settlement of claims arising out of the operators liability; or state or federal mandates, including the additional operating costs required to provide comparable complementary paratransit service as required by Section 37.121 of Title 49 of the Code of Federal Regulations, pursuant to the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.), as identified in the operators paratransit plan pursuant to Section 37.139 of Title 49 of the Code of Federal Regulations.
(B)Exclusion of startup costs for new services for a period of not more than two years.
(3)Funds withheld from allocation to an operator pursuant to paragraph (1) shall be retained by the transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, as the case may be, for reallocation to that operator for two years following the year of ineligibility. In a year in which an operators funds are allocated pursuant to paragraph (1), funds withheld from allocation during a preceding year shall also be allocated. Funds not allocated before the commencement of the third year following the year of ineligibility shall be reallocated to cost effective high priority regional transit activities, as determined by the transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, as the case may be. If that agency or commission, or the board, determines that no cost effective high priority regional transit activity exists, the unallocated funds shall revert to the Controller for reallocation.
(b)As used in this section, the following terms have the following meanings:
(1)Operating cost means the total operating cost as reported by the operator under the Uniform System of Accounts and Records, pursuant to Section 99243 and subdivision (a) of Section 99247.
(2)Revenue vehicle hours has the same meaning as vehicle service hours, as defined in subdivision (h) of Section 99247.
(3)Consumer Price Index, as applied to an operator, is the regional Consumer Price Index for that operators region, as published by the United States Bureau of Labor Statistics. If a regional index is not published, the index for the State of California applies.
(4)New service has the same meaning as extension of public transportation services as defined in Section 99268.8.
(c)The restrictions in this section do not apply to allocations made for capital purposes.
(d)The exclusion of costs increases described in paragraph (2) of subdivision (a) applies solely for the purpose of calculating an operators eligibility to claim funds pursuant to this section and does not authorize an operator to report an operating cost per revenue vehicle hour other than as described in this section and in Section 99247, to any of the following entities:
(1)The Controller pursuant to Section 99243.
(2)The entity conducting the fiscal audit pursuant to Section 99245.
(3)The entity conducting the performance audit pursuant to Section 99246.
(e)This section shall become operative on July 1, 2016.
Two percent of the remaining money in the fund shall be made available to counties and cities for facilities provided for the exclusive use of pedestrians and bicycles unless the transportation planning agency finds that the money could be used to better advantage for the purposes stated in Article 4 (commencing with Section 99260) and Article 4.5 (commencing with Section 99275), or for local street and road purposes in those areas where the money may be expended for those purposes, in the development of a balanced transportation system. Of the amount made available to a city or county pursuant to this section, 5 percent thereof may be expended to supplement moneys from other sources to fund bicycle and pedestrian safety education programs, but shall not be used to fully fund the salary of any one person.
SEC. 2.Section 99234 of the Public Utilities Code is amended to read:99234.(a)Claims for facilities provided for the exclusive use of pedestrians and bicycles or for bicycle and pedestrian safety education programs shall be filed according to the rules and regulations adopted by the transportation planning agency.
(b)The money shall be allocated for the construction, including related engineering expenses, of those facilities pursuant to procedures or criteria established by the transportation planning agency for the area within its jurisdiction, or for bicycle and pedestrian safety education programs.
(c)The money may be allocated for the maintenance of bicycling trails that are closed to motorized traffic pursuant to procedures or criteria established by the transportation planning agency for the area within its jurisdiction.
(d)The money may be allocated without respect to Section 99231 and shall not be included in determining the apportionments to a city or county for purposes of Sections 99233.7 to 99233.9, inclusive.
(e)Facilities provided for the use of bicycles may include projects that serve the needs of commuting bicyclists, including, but not limited to, new trails serving major transportation corridors, secure bicycle parking at employment centers, park and ride lots, and transit terminals where other funds are unavailable.
(f)Notwithstanding any other provision of this section, a planning agency established in Title 7.1 (commencing with Section 66500) of the Government Code may allocate the money to the Association of Bay Area Governments for activities required by Chapter 11 (commencing with Section 5850) of Division 5 of the Public Resources Code.
(g)Notwithstanding any other provision of this section, the transportation planning agencies that allocate funds, pursuant to this section, to the cities and counties with jurisdiction or a sphere of influence within the delta, as defined in Section 5852 of the Public Resources Code, may allocate the money to the Delta Protection Commission for activities required by Chapter 12 (commencing with Section 5852) of Division 5 of the Public Resources Code.
(h)Within 30 days after receiving a request for a review from any city or county, the transportation planning agency shall review its allocations made pursuant to Section 99233.3.
(i)In addition to the purposes authorized in this section, a portion of the amount available to a city or county pursuant to Section 99233.3 may be allocated to develop a comprehensive bicycle and pedestrian facilities plan, with an emphasis on bicycle projects intended to accommodate bicycle commuters rather than recreational bicycle users. An allocation under this subdivision may not be made more than once every five years.
(j)Up to 20 percent of the amount available each year to a city or county pursuant to Section 99233.3 may be allocated to restripe class II bicycle lanes.
SEC. 3.Section 99247 of the Public Utilities Code is amended to read:99247.For purposes of Section 99246, and as used elsewhere in this article:
(a)Operating cost means all costs in the operating expense object classes exclusive of the costs in the depreciation and amortization expense object class of the uniform system of accounts and records adopted by the Controller pursuant to Section 99243. Operating cost excludes all subsidies for commuter rail services operated on railroad lines under the jurisdiction of the Federal Railroad Administration, all direct costs for providing charter services, all vehicle lease costs, and principal and interest payments on capital projects funded with certificates of participation.
(b)Operating cost per passenger means the operating cost divided by the total passengers.
(c)Operating cost per vehicle service hour means the operating cost divided by the vehicle service hours.
(d)Passengers per vehicle service hour means the total passengers divided by the vehicle service hours.
(e)Passengers per vehicle service mile means the total passengers divided by the vehicle service miles.
(f)Total passengers means the number of boarding passengers, whether revenue producing or not, carried by the public transportation system.
(g)Transit vehicle means a vehicle, including, but not limited to, one operated on rails or tracks, which is used for public transportation services funded, in whole or in part, under this chapter.
(h)Vehicle service hours means the total number of hours that each transit vehicle is in revenue service, including layover time.
(i)Vehicle service miles means the total number of miles that each transit vehicle is in revenue service.
(j)Vehicle service hours per employee means the vehicle service hours divided by the number of employees employed in connection with the public transportation system, based on the assumption that 2,000 person-hours of work in one year constitute one employee. The count of employees shall also include those individuals employed by the operator which provide services to the agency of the operator responsible for the operation of the public transportation system even though not employed in that agency.
SEC. 4.Section 99268.2 of the Public Utilities Code is amended to read:99268.2.In the case of an operator required to be in compliance with Section 99268 under Section 99268.1, the operator may be allocated additional funds that could not be allocated to it because of those requirements, if it maintains, for the fiscal year, a ratio of fare revenues to operating cost, as defined by subdivision (a) of Section 99247, at least equal to one-fifth if serving an urbanized area or one-tenth if serving a nonurbanized area.
SEC. 5.Section 99268.3 of the Public Utilities Code is amended to read:99268.3.(a)In the case of an operator that is serving an urbanized area, and that was eligible for funds under this article during the 197879 fiscal year even though not required to be in compliance with Section 99268 or that commenced operation after that fiscal year, the operator shall be eligible for those funds in any fiscal year, commencing with claims for the 198081 fiscal year, if it maintains, for the fiscal year, a ratio of fare revenues to operating cost, as defined by subdivision (a) of Section 99247, at least equal to one-fifth.
(b)In the case of an operator that is serving an urbanized area, and that was in operation during the 197879 fiscal year even though not then eligible for funds under this article, but that has since become eligible for those funds, the operator shall be eligible for the funds in any fiscal year, commencing with the 198081 fiscal year, if it complies with either of the following:
(1)The requirements of Section 99268.
(2)The requirements of subdivision (a).
SEC. 6.Section 99268.4 of the Public Utilities Code is amended to read:99268.4.In the case of an operator that is serving a nonurbanized area, and that was eligible for funds under this article during the 197879 fiscal year even though not required to be in compliance with Section 99268 or that commenced operation after that fiscal year, the operator shall be eligible for those funds in any fiscal year, commencing with claims for the 198081 fiscal year, if it maintains, for the fiscal year, a ratio of fare revenues to operating cost, as defined by subdivision (a) of Section 99247, at least equal to one-tenth.
SEC. 7.Section 99268.17 of the Public Utilities Code is amended to read:99268.17.(a)Notwithstanding subdivision (a) of Section 99247, the following costs shall be excluded from the definition of operating cost for the purposes of calculating any required ratios of fare revenues to operating cost specified in this article:
(1)The additional operating costs required to provide comparable complementary paratransit service as required by Section 37.121 of Title 49 of the Code of Federal Regulations, pursuant to the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.), as identified in the operators paratransit plan pursuant to Section 37.139 of Title 49 of the Code of Federal Regulations that exceed the operators costs required to provide comparable complementary paratransit service in the prior year as adjusted by the Consumer Price Index.
(2)Fuel.
(3)Alternative fuel programs.
(4)Power, including electricity.
(5)Insurance premiums and payments in settlement of claims arising out of the operators liability.
(6)State or federal mandates.
(2)Cost increases beyond the change in the Consumer Price Index for all of the following:
(A)Fuel.
(B)Alternative fuel programs.
(C)Power, including electricity.
(D)Insurance premiums and payments in settlement of claims arising out of the operators liability.
(E)State and federal mandates.
(7)
(3)Startup costs for new services for a period of not more than two years.
(b)The exclusion of costs from the definition of operating costs in subdivision (a) applies solely for the purpose of this article and does not authorize an operator to report an operating cost other than as defined in subdivision (a) of Section 99247 or a ratio of fare revenue to operating cost other than as that ratio is described elsewhere in this article, to any of the following entities:
(1)The Controller pursuant to Section 99243.
(2)The entity conducting the fiscal audit pursuant to Section 99245.
(3)The entity conducting the performance audit pursuant to Section 99246.
SEC. 8.Section 99268.19 of the Public Utilities Code is amended to read:99268.19.If fare revenues are insufficient to meet the applicable ratio of fare revenues to operating cost required by this article, an operator may satisfy that requirement by supplementing its fare revenues with local funds. As used in this section, local funds means any nonfederal or nonstate grant funds or other revenues generated by, earned by, or distributed to an operator.
SEC. 9.Section 99314.6 of the Public Utilities Code is amended to read:99314.6.(a)Except as provided in Section 99314.7, the following eligibility standards apply:
(1)Except as provided in paragraph (3), funds shall be allocated for operating or capital purposes pursuant to Sections 99313 and 99314 to an operator if the operator meets either of the following efficiency standards:
(A)The operator shall receive its entire allocation, and any or all of this allocation may be used for operating purposes, if the operators total operating cost per revenue vehicle hour in the latest year for which audited data are available does not exceed the sum of the preceding years total operating cost per revenue vehicle hour and an amount equal to the product of the percentage change in the Consumer Price Index for the same period multiplied by the preceding years total operating cost per revenue vehicle hour.
(B)The operator shall receive its entire allocation, and any or all of this allocation may be used for operating purposes, if the operators average total operating cost per revenue vehicle hour in the latest three years for which audited data are available does not exceed the sum of the average of the total operating cost per revenue vehicle hour in the three years preceding the latest year for which audited data are available and an amount equal to the product of the average percentage change in the Consumer Price Index for the same period multiplied by the average total operating cost per revenue vehicle hour in the same three years.
(2)If an operator does not meet either efficiency standard under paragraph (1), the operator shall receive its entire allocation and the funds shall be allocated pursuant to this paragraph. The portion of the allocation that the operator may use for operations shall be the total allocation to the operator reduced by the lowest percentage by which the operators total operating cost per revenue vehicle hour for the applicable year or three-year period calculated pursuant to subparagraph (A) or (B) of paragraph (1) exceeded the target amount necessary to meet the applicable efficiency standard. The remaining portion of the operators allocation shall be used only for capital purposes.
(3)The transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, as the case may be, shall adjust the calculation of operating costs and revenue vehicle hours pursuant to paragraph (1) to account for either or both of the following factors:
(A)Exclusion of cost increases beyond the change in the Consumer Price Index for fuel; alternative fuel programs; power, including electricity; insurance premiums and payments in settlement of claims arising out of the operators liability; or state or federal mandates, including the additional operating costs required to provide comparable complementary paratransit service as required by Section 37.121 of Title 49 of the Code of Federal Regulations, pursuant to the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.), as identified in the operators paratransit plan pursuant to Section 37.139 of Title 49 of the Code of Federal Regulations.
(B)Exclusion of startup costs for new services for a period of not more than two years.
(b)As used in this section, the following terms have the following meanings:
(1)Operating cost means the total operating cost as reported by the operator under the Uniform System of Accounts and Records, pursuant to Section 99243 and subdivision (a) of Section 99247.
(2)Revenue vehicle hours has the same meaning as vehicle service hours, as defined in subdivision (h) of Section 99247.
(3)Consumer Price Index, as applied to an operator, is the regional Consumer Price Index for that operators region, as published by the United States Bureau of Labor Statistics. If a regional index is not published, the index for the State of California applies.
(4)New service has the same meaning as extension of public transportation services as defined in Section 99268.8.
(c)The restrictions in this section do not apply to allocations made for capital purposes.
(d)The exclusion of cost increases described in paragraph (3) of subdivision (a) applies solely for the purpose of calculating an operators eligibility to claim funds pursuant to this section and does not authorize an operator to report an operating cost per revenue vehicle hour other than as described in this section and in Section 99247, to any of the following entities:
(1)The Controller pursuant to Section 99243.
(2)The entity conducting the fiscal audit pursuant to Section 99245.
(3)The entity conducting the performance audit pursuant to Section 99246.
Two percent of the remaining money in the fund shall be made available to counties and cities for facilities provided for the exclusive use of pedestrians and bicycles unless the transportation planning agency finds that the money could be used to better advantage for the purposes stated in Article 4 (commencing with Section 99260) and Article 4.5 (commencing with Section 99275), or for local street and road purposes in those areas where the money may be expended for such those purposes, in the development of a balanced transportation system. Of the amount made available to a city or county pursuant to this section, 5 percent thereof may be expended to supplement moneys from other sources to fund bicycle and pedestrian safety education programs, but shall not be used to fully fund the salary of any one person.
SEC. 2.Section 99234 of the Public Utilities Code is amended to read:99234.(a)Claims for facilities provided for the exclusive use of pedestrians and bicycles or for bicycle and pedestrian safety education programs shall be filed according to the rules and regulations adopted by the transportation planning agency.
(b)The money shall be allocated for the construction, including related engineering expenses, of those facilities pursuant to procedures or criteria established by the transportation planning agency for the area within its jurisdiction, or for bicycle and pedestrian safety education programs.
(c)The money may be allocated for the maintenance of bicycling trails that are closed to motorized traffic pursuant to procedures or criteria established by the transportation planning agency for the area within its jurisdiction.
(d)The money may be allocated without respect to Section 99231 and shall not be included in determining the apportionments to a city or county for purposes of Sections 99233.7 to 99233.9, inclusive.
(e)Facilities provided for the use of bicycles may include projects that serve the needs of commuting bicyclists, including, but not limited to, new trails serving major transportation corridors, secure bicycle parking at employment centers, park and ride lots, and transit terminals where other funds are unavailable.
(f)Notwithstanding any other provision of this section, a planning agency established in Title 7.1 (commencing with Section 66500) of the Government Code may allocate the money to the Association of Bay Area Governments for activities required by Chapter 11 (commencing with Section 5850) of Division 5 of the Public Resources Code.
(g)Notwithstanding any other provision of this section, the transportation planning agencies that allocate funds, pursuant to this section, to the cities and counties with jurisdiction or a sphere of influence within the delta, as defined in Section 5852 of the Public Resources Code, may allocate the money to the Delta Protection Commission for activities required by Chapter 12 (commencing with Section 5852) of Division 5 of the Public Resources Code.
(h)Within 30 days after receiving a request for a review from any city or county, the transportation planning agency shall review its allocations made pursuant to Section 99233.3.
(i)In addition to the purposes authorized in this section, a portion of the amount available to a city or county pursuant to Section 99233.3 may be allocated to develop a comprehensive bicycle and pedestrian facilities plan, with an emphasis on bicycle projects intended to accommodate bicycle commuters rather than recreational bicycle users. An allocation under this subdivision may not be made more than once every five years.
(j)Up to 20 percent of the amount available each year to a city or county pursuant to Section 99233.3 may be allocated to restripe class II bicycle lanes.
SECTION 1.SEC. 3.Section 99247 of the Public Utilities Code is amended to read:99247.For purposes of Section 99246, and as used elsewhere in this article:
(a)Operating cost means all costs in the operating expense object classes exclusive of the costs in the depreciation and amortization expense object class of the uniform system of accounts and records adopted by the Controller pursuant to Section 99243. Operating cost excludes all subsidies for commuter rail services operated on railroad lines under the jurisdiction of the Federal Railroad Administration, all direct costs for providing charter services, all vehicle lease costs, and principal and interest payments on capital projects funded with certificates of participation or other lease financing mechanisms. participation.
(b)Operating cost per passenger means the operating cost divided by the total passengers.
(c)Operating cost per vehicle service hour means the operating cost divided by the vehicle service hours.
(d)Passengers per vehicle service hour means the total passengers divided by the vehicle service hours.
(e)Passengers per vehicle service mile means the total passengers divided by the vehicle service miles.
(f)Total passengers means the number of boarding passengers, whether revenue producing or not, carried by the public transportation system.
(g)Transit vehicle means a vehicle, including, but not limited to, one operated on rails or tracks, which is used for public transportation services funded, in whole or in part, under this chapter.
(h)Vehicle service hours means the total number of hours that each transit vehicle is in revenue service, including layover time.
(i)Vehicle service miles means the total number of miles that each transit vehicle is in revenue service.
(j)Vehicle service hours per employee means the vehicle service hours divided by the number of employees employed in connection with the public transportation system, based on the assumption that 2,000 person-hours of work in one year constitute one employee. The count of employees shall also include those individuals employed by the operator which provide services to the agency of the operator responsible for the operation of the public transportation system even though not employed in that agency.
SEC. 2.SEC. 4.Section 99268.2 of the Public Utilities Code is amended to read:99268.2.In the case of an operator required to be in compliance with Section 99268 under Section 99268.1, the operator may be allocated additional funds that could not be allocated to it because of those requirements, if it maintains, for the fiscal year, a ratio of fare revenues to operating cost, as defined by subdivision (a) of Section 99247, at least equal to one-fifth if serving an urbanized area or to one-tenth if serving a nonurbanized area.
SEC. 3.SEC. 5.Section 99268.3 of the Public Utilities Code is amended to read:99268.3.(a)In the case of an operator that is serving an urbanized area, and that was eligible for funds under this article during the 197879 fiscal year even though not required to be in compliance with Section 99268 or that commenced operation after that fiscal year, the operator shall be eligible for those funds in any fiscal year, commencing with claims for the 198081 fiscal year, if it maintains, for the fiscal year, a ratio of fare revenues to operating cost, as defined by subdivision (a) of Section 99247, at least equal to one-fifth.
(b)In the case of an operator that is serving an urbanized area, and that was in operation during the 197879 fiscal year even though not then eligible for funds under this article, but that has since become eligible for those funds, the operator shall be eligible for the funds in any fiscal year, commencing with the 198081 fiscal year, if it complies with either of the following:
(1)The requirements of Section 99268.
(2)The requirements of subdivision (a).
SEC. 4.SEC. 6.Section 99268.4 of the Public Utilities Code is amended to read:99268.4.In the case of an operator that is serving a nonurbanized area, and that was eligible for funds under this article during the 197879 fiscal year even though not required to be in compliance with Section 99268 or that commenced operation after that fiscal year, the operator shall be eligible for those funds in any fiscal year, commencing with claims for the 198081 fiscal year, if it maintains, for the fiscal year, a ratio of fare revenues to operating cost, as defined by subdivision (a) of Section 99247, at least equal to one-tenth.
SEC. 5.SEC. 7.Section 99268.17 of the Public Utilities Code is amended to read:99268.17.(a)Notwithstanding subdivision (a) of Section 99247, the following costs shall be excluded from the definition of operating cost for the purposes of calculating any required ratios of fare revenues to operating cost specified in this article:
(1)The additional operating costs required to provide comparable complementary paratransit service as required by Section 37.121 of Title 49 of the Code of Federal Regulations, pursuant to the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.), as identified in the operators paratransit plan pursuant to Section 37.139 of Title 49 of the Code of Federal Regulations that exceed the operators costs required to provide comparable complementary paratransit service in the prior year as adjusted by the Consumer Price Index.
(2)The additional costs of health insurance premiums, or contributions to self-insurance programs, that exceed the operators cost of health insurance premiums or self-insurance contributions in the prior year as adjusted by the Consumer Price Index.
(3)The additional costs of pension contributions, or related defined benefit programs, that exceed the operators cost of pension contributions or defined benefit programs in the prior year as adjusted by the Consumer Price Index.
(4)
(2)Fuel.
(5)
(3)Alternative fuel programs.
(6)
(4)Power, including electricity.
(7)
(5)Insurance premiums and payments in settlement of claims arising out of the operators liability.
(8)
(6)State or federal mandates.
(9)
(7)Startup costs for new services for a period of not more than two years.
(b)The exclusion of costs from the definition of operating costs in subdivision (a) applies solely for the purpose of this article and does not authorize an operator to report an operating cost other than as defined in subdivision (a) of Section 99247 or a ratio of fare revenue to operating cost other than as that ratio is described elsewhere in this article, to any of the following entities:
(1)The Controller pursuant to Section 99243.
(2)The entity conducting the fiscal audit pursuant to Section 99245.
(3)The entity conducting the performance audit pursuant to Section 99246.
SEC. 8.Section 99268.19 of the Public Utilities Code is amended to read:99268.19.If fare revenues are insufficient to meet the applicable ratio of fare revenues to operating cost required by this article, an operator may satisfy that requirement by supplementing its fare revenues with local funds. Local As used in this section, local funds means revenues derived from taxes imposed by the operator or by a county transportation commission created pursuant to Division 12 (commencing with Section 130000) of the Public Utilities Code. any nonfederal or nonstate grant funds or other revenues generated by, earned by, or distributed to an operator.
SEC. 6.SEC. 9.Section 99314.6 of the Public Utilities Code is amended to read:99314.6.(a)Except as provided in Section 99314.7, the following eligibility standards apply:
(1)Except as provided in paragraph (3), funds shall be allocated for operating or capital purposes pursuant to Sections 99313 and 99314 to an operator if the operator meets either of the following efficiency standards:
(A)The operator shall receive its entire allocation, and any or all of this allocation may be used for operating purposes, if the operators total operating cost per revenue vehicle hour in the latest year for which audited data are available does not exceed the sum of the preceding years total operating cost per revenue vehicle hour and an amount equal to the product of the percentage change in the Consumer Price Index for the same period multiplied by the preceding years total operating cost per revenue vehicle hour.
(B)The operator shall receive its entire allocation, and any or all of this allocation may be used for operating purposes, if the operators average total operating cost per revenue vehicle hour in the latest three years for which audited data are available does not exceed the sum of the average of the total operating cost per revenue vehicle hour in the three years preceding the latest year for which audited data are available and an amount equal to the product of the average percentage change in the Consumer Price Index for the same period multiplied by the average total operating cost per revenue vehicle hour in the same three years.
(2)If an operator does not meet either efficiency standard under paragraph (1), the operator shall receive its entire allocation and the funds shall be allocated pursuant to this paragraph. The portion of the allocation that the operator may use for operations shall be the total allocation to the operator reduced by the lowest percentage by which the operators total operating cost per revenue vehicle hour for the applicable year or three-year period calculated pursuant to subparagraph (A) or (B) of paragraph (1) exceeded the target amount necessary to meet the applicable efficiency standard. The remaining portion of the operators allocation may shall be used only for capital purposes.
(3)The transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, as the case may be, shall adjust the calculation of operating costs and revenue vehicle hours pursuant to paragraph (1) to account for either or both of the following factors:
(A)Exclusion of cost increases beyond the change in the Consumer Price Index for fuel; alternative fuel programs; power, including electricity; insurance premiums and payments in settlement of claims arising out of the operators liability; health insurance premiums or contributions to self-insurance programs; pension contributions or related defined benefit programs; or state or federal mandates, including the additional operating costs required to provide comparable complementary paratransit service as required by Section 37.121 of Title 49 of the Code of Federal Regulations, pursuant to the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.), as identified in the operators paratransit plan pursuant to Section 37.139 of Title 49 of the Code of Federal Regulations.
(B)Exclusion of startup costs for new services for a period of not more than two years.
(b)As used in this section, the following terms have the following meanings:
(1)Operating cost means the total operating cost as reported by the operator under the Uniform System of Accounts and Records, pursuant to Section 99243 and subdivision (a) of Section 99247.
(2)Revenue vehicle hours has the same meaning as vehicle service hours, as defined in subdivision (h) of Section 99247.
(3)Consumer Price Index, as applied to an operator, is the regional Consumer Price Index for that operators region, as published by the United States Bureau of Labor Statistics. If a regional index is not published, the index for the State of California applies.
(4)New service has the same meaning as extension of public transportation services as defined in Section 99268.8.
(c)The restrictions in this section do not apply to allocations made for capital purposes.
(d)The exclusion of cost increases described in paragraph (3) of subdivision (a) applies solely for the purpose of calculating an operators eligibility to claim funds pursuant to this section and does not authorize an operator to report an operating cost per revenue vehicle hour other than as described in this section and in Section 99247, to any of the following entities:
(1)The Controller pursuant to Section 99243.
(2)The entity conducting the fiscal audit pursuant to Section 99245.
(3)The entity conducting the performance audit pursuant to Section 99246.
For purposes of Section 99246, and as used elsewhere in this article:
(a)Operating cost means all costs in the operating expense object classes exclusive of the costs in the depreciation and amortization expense object class of the uniform system of accounts and records adopted by the Controller pursuant to Section 99243, and exclusive of all. 99243. Operating cost excludes all subsidies for commuter rail services operated on railroad lines under the jurisdiction of the Interstate Commerce Commission and of Federal Railroad Administration, all direct costs for providing charter services, and exclusive of all vehicle lease costs, and principal and interest payments on capital projects funded with certificates of participation or other lease financing mechanisms.
(b)Operating cost per passenger means the operating cost divided by the total passengers.
(c)Operating cost per vehicle service hour means the operating cost divided by the vehicle service hours.
(d)Passengers per vehicle service hour means the total passengers divided by the vehicle service hours.
(e)Passengers per vehicle service mile means the total passengers divided by the vehicle service miles.
(f)Total passengers means the number of boarding passengers, whether revenue producing or not, carried by the public transportation system.
(g)Transit vehicle means a vehicle, including, but not limited to, one operated on rails or tracks, which is used for public transportation services funded, in whole or in part, under this chapter.
(h)Vehicle service hours means the total number of hours that each transit vehicle is in revenue service, including layover time.
(i)Vehicle service miles means the total number of miles that each transit vehicle is in revenue service.
(j)Vehicle service hours per employee means the vehicle service hours divided by the number of employees employed in connection with the public transportation system, based on the assumption that 2,000 person-hours of work in one year constitute one employee. The count of employees shall also include those individuals employed by the operator which provide services to the agency of the operator responsible for the operation of the public transportation system even though not employed in that agency.
SEC. 2.Section 99268.2 of the Public Utilities Code is amended to read:99268.2.(a)In the case of an operator required to be in compliance with Section 99268 under Section 99268.1, the operator may be allocated additional funds that could not be allocated to it because of such those requirements, if it maintains, for the fiscal year, a ratio of fare revenues to operating cost, as defined by subdivision (a) of Section 99247, at least equal (1)to one-fifth if serving an urbanized area or to one-tenth if serving a nonurbanized area or (2)to the ratio it had during the 197879 fiscal year, whichever is greater. area.
(b)In addition, such an operator having a ratio of the sum of fare revenues and local support to operating cost greater than one-fifth if serving an urbanized area, or one-tenth if serving a nonurbanized area, during the 197879 fiscal year shall, at least, maintain that ratio in order to be eligible for additional funds pursuant to this section.
SEC. 3.Section 99268.3 of the Public Utilities Code is amended to read:99268.3.(a)In the case of an operator which that is serving an urbanized area, and which that was eligible for funds under this article during the 197879 fiscal year even though not required to be in compliance with Section 99268 or which that commenced operation after that fiscal year, the operator shall be eligible for such those funds in any fiscal year, commencing with claims for the 198081 fiscal year, if it maintains, for the fiscal year, a ratio of fare revenues to operating cost, as defined by subdivision (a) of Section 99247, at least equal to one-fifth or to the ratio it had during the 197879 fiscal year, whichever is greater. one-fifth.
(b)In addition, such an operator having a ratio of the sum of fare revenues and local support to operating cost greater than one-fifth during the 197879 fiscal year shall, at least, maintain that ratio in order to be eligible for funds under this article.
(c)
(b)In the case of an operator that is serving an urbanized area, and which that was in operation during the 197879 fiscal year even though not then eligible for funds under this article, but which that has since become eligible for such those funds, the operator shall be eligible for such the funds in any fiscal year, commencing with the 198081 fiscal year, if it complies with either of the following:
(1)The requirements of Section 99268.
(2)The requirements of subdivisions subdivision (a) and (b).
SEC. 4.Section 99268.4 of the Public Utilities Code is amended to read:99268.4.(a)In the case of an operator which that is serving a nonurbanized area, and which that was eligible for funds under this article during the 197879 fiscal year even though not required to be in compliance with Section 99268 or which that commenced operation after that fiscal year, the operator shall be eligible for such those funds in any fiscal year, commencing with claims for the 198081 fiscal year, if it maintains, for the fiscal year, a ratio of fare revenues to operating cost, as defined by subdivision (a) of Section 99247, at least equal to one-tenth or to the ratio it had during the 197879 fiscal year, whichever is greater. one-tenth.
(b)In addition, such an operator having a ratio of the sum of fare revenues and local support to operating cost greater than one-tenth during the 197879 fiscal year shall, at least, maintain that ratio in order to be eligible for funds under this article.
SEC. 5.Section 99268.17 of the Public Utilities Code is amended to read:99268.17.(a)Notwithstanding subdivision (a) of Section 99247, the following costs shall be excluded from the definition of operating cost for the purposes of calculating any required ratios of fare revenues to operating cost specified in this article:
(1)The additional operating costs required to provide comparable complementary paratransit service as required by Section 37.121 of Title 49 of the Code of Federal Regulations, pursuant to the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.), as identified in the operators paratransit plan pursuant to Section 37.139 of Title 49 of the Code of Federal Regulations that exceed the operators costs required to provide comparable complementary paratransit service in the prior year as adjusted by the Consumer Price Index, shall be excluded from the definition of operating cost for the purposes of calculating any required ratios of fare revenues to operating cost specified in this article. Index.
(2)The additional costs of health insurance premiums, or contributions to self-insurance programs, that exceed the operators cost of health insurance premiums or self-insurance contributions in the prior year as adjusted by the Consumer Price Index.
(3)The additional costs of pension contributions, or related defined benefit programs, that exceed the operators cost of pension contributions or defined benefit programs in the prior year as adjusted by the Consumer Price Index.
(4)Fuel.
(5)Alternative fuel programs.
(6)Power, including electricity.
(7)Insurance premiums and payments in settlement of claims arising out of the operators liability.
(8)State or federal mandates.
(9)Startup costs for new services for a period of not more than two years.
(b)The exclusion of costs from the definition of operating costs in subdivision (a) applies solely for the purpose of this section article and does not authorize an operator to report an operating cost other than as defined in subdivision (a) of Section 99247 or a ratio of fare revenue to operating cost other than as that ratio is described elsewhere in this article, to any of the following entities:
(1)The Controller pursuant to Section 99243.
(2)The entity conducting the fiscal audit pursuant to Section 99245.
(3)The entity conducting the performance audit pursuant to Section 99246.
(c)This section shall become operative on January 1, 2007.
SEC. 6.Section 99314.6 of the Public Utilities Code is amended to read:99314.6.(a)Except as provided in Section 99314.7, the following eligibility standards apply:
(1)Except as provided in paragraph (2) (3), funds shall not be allocated for operating or capital purposes pursuant to Sections 99313 and 99314 to an operator unless if the operator meets either of the following efficiency standards:
(A)The operator shall receive its entire allocation, and any or all of this allocation may be used for operating purposes, if the operators total operating cost per revenue vehicle hour in the latest year for which audited data are available does not exceed the sum of the preceding years total operating cost per revenue vehicle hour and an amount equal to the product of the percentage change in the Consumer Price Index for the same period multiplied by the preceding years total operating cost per revenue vehicle hour.
(B)The operator shall receive its entire allocation, and any or all of this allocation may be used for operating purposes, if the operators average total operating cost per revenue vehicle hour in the latest three years for which audited data are available does not exceed the sum of the average of the total operating cost per revenue vehicle hour in the three years preceding the latest year for which audited data are available and an amount equal to the product of the average percentage change in the Consumer Price Index for the same period multiplied by the average total operating cost per revenue vehicle hour in the same three years.
(2)If an operator does not meet either efficiency standard under paragraph (1), the operator shall receive its entire allocation and the funds shall be allocated pursuant to this paragraph. The portion of the allocation that the operator may use for operations shall be the total allocation to the operator reduced by the lowest percentage by which the operators total operating cost per revenue vehicle hour for the applicable year or three-year period calculated pursuant to subparagraph (A) or (B) of paragraph (1) exceeded the target amount necessary to meet the applicable efficiency standard. The remaining portion of the operators allocation may be used only for capital purposes.
(2)
(3)The transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, as the case may be, shall adjust the calculation of operating costs and revenue vehicle hours pursuant to paragraph (1) to account for either or both of the following factors:
(A)Exclusion of costs cost increases beyond the change in the Consumer Price Index for fuel; alternative fuel programs; power, including electricity; insurance premiums and payments in settlement of claims arising out of the operators liability; health insurance premiums or contributions to self-insurance programs; pension contributions or related defined benefit programs; or state or federal mandates, including the additional operating costs required to provide comparable complementary paratransit service as required by Section 37.121 of Title 49 of the Code of Federal Regulations, pursuant to the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.), as identified in the operators paratransit plan pursuant to Section 37.139 of Title 49 of the Code of Federal Regulations.
(B)Exclusion of startup costs for new services for a period of not more than two years.
(3)Funds withheld from allocation to an operator pursuant to paragraph (1) shall be retained by the transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, as the case may be, for reallocation to that operator for two years following the year of ineligibility. In a year in which an operators funds are allocated pursuant to paragraph (1), funds withheld from allocation during a preceding year shall also be allocated. Funds not allocated before the commencement of the third year following the year of ineligibility shall be reallocated to cost effective high priority regional transit activities, as determined by the transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, as the case may be. If that agency or commission, or the board, determines that no cost effective high priority regional transit activity exists, the unallocated funds shall revert to the Controller for reallocation.
(b)As used in this section, the following terms have the following meanings:
(1)Operating cost means the total operating cost as reported by the operator under the Uniform System of Accounts and Records, pursuant to Section 99243 and subdivision (a) of Section 99247.
(2)Revenue vehicle hours has the same meaning as vehicle service hours, as defined in subdivision (h) of Section 99247.
(3)Consumer Price Index, as applied to an operator, is the regional Consumer Price Index for that operators region, as published by the United States Bureau of Labor Statistics. If a regional index is not published, the index for the State of California applies.
(4)New service has the same meaning as extension of public transportation services as defined in Section 99268.8.
(c)The restrictions in this section do not apply to allocations made for capital purposes.
(d)The exclusion of costs cost increases described in paragraph (2) (3) of subdivision (a) applies solely for the purpose of calculating an operators eligibility to claim funds pursuant to this section and does not authorize an operator to report an operating cost per revenue vehicle hour other than as described in this section and in Section 99247, to any of the following entities:
(1)The Controller pursuant to Section 99243.
(2)The entity conducting the fiscal audit pursuant to Section 99245.
(3)The entity conducting the performance audit pursuant to Section 99246.
(e)The restrictions in this section shall not apply to the allocation of funds made pursuant to Sections 99313 and 99314 after January 1, 2010, and through the 201415 fiscal year.
|
Date
|
Status
|
|---|---|
| Jul 14, 2015 | From committee: Do pass as amended. (Ayes 16. Noes 0.) (July 13). |
| Oct 9, 2015 | Chaptered by Secretary of State. Chapter 716, Statutes of 2015. |
| Oct 9, 2015 | Approved by the Governor. |
| Sep 3, 2015 | Enrolled and presented to the Governor at 5:45 p.m. |
| Sep 1, 2015 | Assembly amendments concurred in. (Ayes 31. Noes 9.) Ordered to engrossing and enrolling. |
| Sep 1, 2015 | Assembly amendments concurred in. (Ayes 31. Noes 9. Page 2370.) Ordered to engrossing and enrolling. |
| Aug 31, 2015 | Read third time. Passed. (Ayes 66. Noes 14. Page 2682.) Ordered to the Senate. |
| Aug 31, 2015 | Read third time. Passed. Ordered to the Senate. |
| Aug 31, 2015 | In Senate. Concurrence in Assembly amendments pending. |
| Aug 20, 2015 | Read third time and amended. |
| Aug 20, 2015 | Ordered to third reading. |
| Jul 16, 2015 | Read second time. Ordered to third reading. |
| Jul 15, 2015 | Read second time and amended. Ordered to second reading. |
| Feb 26, 2015 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
| May 28, 2015 | Referred to Com. on TRANS. |
| May 18, 2015 | Read third time. Passed. (Ayes 28. Noes 8.) Ordered to the Assembly. |
| May 18, 2015 | Read third time. Passed. (Ayes 28. Noes 8. Page 1023.) Ordered to the Assembly. |
| May 18, 2015 | In Assembly. Read first time. Held at Desk. |
| May 12, 2015 | Read second time and amended. Ordered to third reading. |
| May 11, 2015 | From committee: Do pass as amended. (Ayes 8. Noes 0.) (May 5). |
| May 11, 2015 | From committee: Do pass as amended. (Ayes 8. Noes 0. Page 907.) (May 5). |
| Apr 27, 2015 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on T. & H. |
| Apr 2, 2015 | Set for hearing May 5. |
| Mar 12, 2015 | Referred to Com. on T. & H. |
| Feb 27, 2015 | From printer. May be acted upon on or after March 29. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Sep 1, 2015 | Unfinished Business SB508 Beall Concurrence | Senate Floor |
Passed |
|
| Aug 31, 2015 | SB 508 Beall Senate Third Reading By FRAZIER | Assembly Floor |
Passed |
|
| Jul 13, 2015 | Do pass as amended. | Assembly Standing Committee on Transportation |
Passed |
|
| May 18, 2015 | Senate 3rd Reading SB508 Beall | Senate Floor |
Passed |
|
| May 5, 2015 | Do pass as amended | Senate Standing Committee on Transportation and Housing |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| California Transit Association | ** Support | Aug 31, 2015 |
| Central Contra Costa Transit Authority | ** Support | Aug 20, 2015 |
| Gold Coast Transit | ** Support | Aug 20, 2015 |
| Gold Coast Transit District | ** Support | Aug 31, 2015 |
| Mendocino Transit Authority | ** Support | Aug 31, 2015 |
| Monterey-Salinas Transit | ** Support | Aug 31, 2015 |
| Orange County Transportation Authority | ** Support | Aug 31, 2015 |
| Planning And Conservation League | ** Support | Aug 31, 2015 |
| Sacramento Area Council Of Governments | ** Support | Aug 31, 2015 |
| San Bernardino Associated Governments | ** Support | Aug 31, 2015 |
| San Luis Obispo Council of Governments | ** Support | Aug 31, 2015 |
| Santa Clara Valley Transportation Authority | ** Support | Aug 31, 2015 |
| Santa Cruz Metropolitan Transit District | ** Support | Aug 31, 2015 |
| Solano County Transit | ** Support | Aug 31, 2015 |
| Transform | ** Support | Aug 31, 2015 |
| Transportation Agency For Monterey County | ** Support | Aug 31, 2015 |
| United Transportation Union | ** Support | Aug 31, 2015 |
| Ventura County Transportation Commission | ** Support | Aug 31, 2015 |
SB 508
Page 6
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
UNFINISHED BUSINESS
Bill No: SB 508
Amended: 8/20/15
SENATE TRANS. & HOUSING COMMITTEE: 8-0, 5/5/15
AYES: Beall, Allen, Galgiani, Leyva, McGuire, Mendoza, Roth, Wieckowski
NO VOTE RECORDED: Cannella, Bates, Gaines
SENATE FLOOR: 28-8, 5/18/15
AYES: Allen, Bates, Beall, Block, Cannella, De León, Galgiani, Hancock, Hernandez, Hertzberg, Hill, Hueso, Huff, Jackson, Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning, Nguyen, Pan, Roth, Vidak, Wieckowski, Wolk
NOES: Anderson, Fuller, Gaines, Moorlach, Morrell, Nielsen, Runner, Stone
NO VOTE RECORDED: Berryhill, Hall, Pavley
ASSEMBLY FLOOR: 66-14, 8/31/15 - See last page for vote
SUBJECT: Transportation funds: transit operators: pedestrian safety
SOURCE: California Transit Association
DIGEST: This bill makes changes to performance metrics tied to state grants for transit operators.
Assembly Amendments make technical changes to improve the implementation of the bill.
Existing law:
Creates the Transportation Development Act (TDA). The TDA provides two state funding sources for public transit:
Local Transportation Fund (LTF) revenue is derived from a one-fourth-cent of the general sales tax collected statewide. These funds are distributed to each county according to the amount of tax collected in that county. LTF funds a wide variety of transportation programs, including planning and program activities, pedestrian and bicycle facilities, community transit services, public transportation, and bus and rail projects. In limited cases, counties may also use LTF moneys for local streets and roads construction and maintenance.
State Transit Assistance (STA) revenue is derived from the statewide sales tax on diesel fuel. STA funds are appropriated by the Legislature and are allocated by formula to planning agencies and other selected agencies. Existing law requires that 50% of STA funds be allocated according to population and 50% be allocated according to transit operator revenues from the prior fiscal year.
Requires transit operators to maintain a specified ratio of fare revenues to operating costs in order to be eligible to receive TDA funds. The required ratio varies. For operators that began providing service after 1979, their ratio is either 20% or 10%, depending on whether the service area is urban or non-urban. For operators that provided service prior to 1979, the required ratio is 20% or 10% (depending on whether the service area is urban or non-urban) or the ratio they attained in fiscal year 1978-79, whichever is greater.
Authorizes a transit operator to meet the fare box recovery ratio by combining fare revenues with certain local funds.
Defines "operating expenses" for purposes of calculating a transit operator's fare box recovery ratio; specifically excludes from the definition costs associated with depreciation and amortization, subsidies for commuter rail services, direct costs for providing charter services, and all vehicle lease costs.
Authorizes transit operators to use STA funds for operating expenses if their total operating costs per revenue vehicle-hour increases by no more than the changes in the Consumer Price Index (CPI); excludes from this calculation costs beyond the CPI related to fuel, alternative fuel programs, power, insurance premiums and settlement payments, and federal and state mandates. Startup costs for new services are also excluded for two years.
Provides a one year extension, through the 2015-16 fiscal year, of an exemption to allow transit operators whose cost increases have exceeded the CPI to continue using STA funding for both operating and capital expenditures.
This bill:
Adds pedestrian safety education programs to the list of eligible uses of LTF moneys.
Excludes the principal and interest payments on all capital projects funded with certificates of participation from the definition of "operating cost" used to calculate a transit operator's fare box recovery ratio.
Simplifies fare box recovery ratio requirements used to determine a transit operator's eligibility to receive state transit funds.
Excludes from the calculation of fare box recovery ratios increased costs that are beyond the change in the CPI for all of the following:
Fuel;
Alternative fuel programs;
Power, including electricity;
Insurance premiums and settlement payments; and
State and federal mandates.
Excludes, for two years, further from the fare box recovery ratio equation startup costs for new services.
Provides transit operators greater flexibility in the use of local funds to satisfy fare box recovery ratio requirements.
Authorizes transit operators to use a portion of STA funds for operations even if they do not meet specified performance standards, beginning July 1, 2016.
Comments
Purpose. According to the author, cost increases over the years — sudden, unplanned and unavoidable — have threatened the continued receipt of transit operators’ TDA and STA funding. Local economic conditions, operating environments, the various built landscapes, and even political preferences with regard to transit affordability: all these factors change dynamically year to year. A more predictable, flexible system of accountability is needed with regard to the eligibility criteria for transit operators to receive funding. This bill is intended to amend existing accountability measures to create that more predictable, flexible system for local transit systems.
What is this bill really about? As described in the existing law section, the state calculates two relatively ineffective performance metrics against which transit operators are judged to determine state funding eligibility. The farebox recovery ratio is essentially based on the percentage of operating costs that are borne by the transit riders, while the STA eligibility criteria is intended to force operators to keep operating costs from growing more quickly than general inflation. Over time, these performance metrics have been diluted due to changes in existing law to allow for exemptions from what can be included in operating costs. They are, however, the closest thing the state has to holding transit operators accountable for effectively spending state dollars.
In many ways, this bill seeks to rationalize these performance metrics, for example, by attempting to apply the same operating cost exemptions to both of them. In addition, this bill clarifies a few terms that should help ensure expectations are applied uniformly to transit operators across the state. These seem like relatively responsible changes to existing law.
Ultimately, however, the Legislature and the Administration need to reevaluate how the state should hold transit grant recipients accountable for managing their costs. Some argue that it may be irresponsible of the state to provide ever-increasing subsidies to operators simply to fund higher pay for transit operators who already earn fair wages.
Fixing the STA eligibility criteria. The STA performance criteria require operators to keep operating costs from growing more quickly than CPI, a measure of inflation. Of significance, this bill eliminates the yes/no test of STA eligibility criteria, allowing transit operators who miss the criteria by an insignificant margin to continue to use most of their funds for operations.
Certificates of participation (COPs). COPs are defined as lease financing agreements in the form of tax-exempt securities, similar to bonds. In COP financing, title to a leased asset is assigned by the lessor to a trustee (non-profit corporation) that holds it for the benefit of the investors, the certificate holders. This financing technique provides long-term financing through a lease or lease-purchase agreement that legally does not constitute indebtedness under the state constitutional debt limitation. It is not subject to other statutory requirements applicable to bonds, including the requirement of a vote of citizens. In many ways, COPs payments are similar to an individual’s mortgage payments: The debt is securitized against the property, but still requires payment in order to guarantee use of the property.
A key characteristic of using COPs that distinguishes it from bond indebtedness is a nonappropriation clause. The nonappropriation or fiscal funding clause means that payments of the lease are dependent upon an annual appropriation by the governing body. This differentiates the lease from indebtedness such as that created by the sale of bonds because, with the nonappropriation provision, the present-year government’s action does not bind succeeding ones to pay the obligation. However, the non-debt classification of lease-purchase financing does not eliminate the need to fund lease payment expenditures nor does it eliminate the responsibility of the government to disclose the obligation in its financial statements.
This bill excludes principal and interest costs for COPs from the definition of operating costs when calculating a transit operator’s farebox recovery ratio.
FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No
California Transit Association (source)
Gold Coast Transit District
Mendocino Transit Authority
Monterey-Salinas Transit
Orange County Transportation Authority
Planning and Conservation League
Sacramento Area Council of Governments
San Bernardino Associated Governments
San Luis Obispo Council of Governments
Santa Clara Valley Transportation Authority
Santa Cruz Metropolitan Transit District
Solano County Transit
Transform
Transportation Agency for Monterey County
United Transportation Union
Ventura County Transportation Commission
OPPOSITION: (Verified 8/31/15)
None received
ASSEMBLY FLOOR: 66-14, 8/31/15
AYES: Achadjian, Alejo, Baker, Bloom, Bonilla, Bonta, Brown, Burke, Calderon, Campos, Chang, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Daly, Dodd, Eggman, Frazier, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Hadley, Roger Hernández, Holden, Irwin, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Waldron, Weber, Williams, Wood, Atkins
NOES: Travis Allen, Bigelow, Brough, Chávez, Dahle, Beth Gaines, Gallagher, Grove, Harper, Jones, Mathis, Patterson, Wagner, Wilk
Prepared by: Eric Thronson / T. & H. / (916) 651-4121
8/31/15 20:01:10
SB 508
Page 4
SENATE THIRD READING
SB 508
(Beall)
As Amended August 20, 2015
Majority vote
SENATE VOTE: 28-8
Committee |
Votes |
Ayes |
Noes |
Transportation |
16-0 |
Frazier, Achadjian, Baker, Bloom, Campos, Chu, Daly, Dodd, Eduardo Garcia, Gomez, Kim, Linder, Medina, Melendez, Nazarian, O'Donnell |
|
SUMMARY: Modifies performance metrics related to state funding for public transit and updates related provisions. Specifically, this bill:
Adds pedestrian safety education programs to the list of eligible uses of Local Transportation Fund (LTF) moneys.
Excludes the principal and interest payments on all capital projects funded with certificates of participation from the definition of "operating cost" used to calculate a transit operator's fare box recovery ratio.
Simplifies fare box recovery ratio requirements used to determine a transit operator's eligibility to receive state transit funds.
Excludes from the calculation of fare box recovery ratios increased costs that are beyond the change in the Consumer Price Index (CPI) for all of the following:
Fuel;
Alternative fuel programs;
Power, including electricity;
Insurance premiums and settlement payments; and
State and federal mandates.
Further excludes, for two years, from the fare box recovery ratio equation startup costs for new services.
Provides transit operators greater flexibility in the use of local funds to satisfy fare box recovery ratio requirements.
Authorizes transit operators to use a portion of State Transit Assistance (STA) funds for operations even if they do not meet specified performance standards, beginning July 1, 2016.
EXISTING LAW:
The Transportation Development Act (TDA) provides two state funding sources for public transit:
LTF revenue is derived from a one-fourth-cent of the general sales tax collected statewide. These funds are distributed to each county according to the amount of tax collected in that county. LTF funds a wide variety of transportation programs, including planning and program activities, pedestrian and bicycle facilities, community transit services, public transportation, and bus and rail projects. In limited cases, counties may also use LTF moneys for local streets and roads construction and maintenance.
STA revenue is derived from the statewide sales tax on diesel fuel. STA funds are appropriated by the Legislature and are allocated by formula to planning agencies and other selected agencies. Existing law requires that 50% of STA funds be allocated according to population and 50% be allocated according to transit operator revenues from the prior fiscal year.
Requires transit operators to maintain a specified ratio of fare revenues to operating costs in order to be eligible to receive TDA funds. The required ratio varies. For operators that began providing service after 1979, their ratio is either 20% or 10%, depending on whether the service area is urban or non-urban. For operators that provided service prior to 1979, the required ratio is 20% or 10% (depending on whether the service area is urban or non-urban) or the ratio they attained in fiscal year 1978-79, whichever is greater.
Authorizes a transit operator to meet the fare box recovery ratio by combining fare revenues with certain local funds.
Defines "operating expenses" for purposes of calculating a transit operator's fare box recovery ratio; specifically excludes from the definition costs associated with depreciation and amortization, subsidies for commuter rail services, direct costs for providing charter services, and all vehicle lease costs.
Authorizes transit operators to use STA funds for operating expenses if their total operating costs per revenue vehicle-hour increases by no more than the changes in the CPI; excludes from this calculation costs beyond the CPI related to fuel, alternative fuel programs, power, insurance premiums and settlement payments, and federal and state mandates. Startup costs for new services are also excluded for two years.
Provides a one year extension, through the 2015-16 Fiscal Year, of an exemption to allow transit operators whose cost increases have exceeded the CPI to continue using STA funding for both operating and capital expenditures.
FISCAL EFFECT: None
COMMENTS: The primary performance measure related to state transit funding is the fare box recovery ratio. Simply put, the fare box recovery ratio compares revenue from passenger fares to operating costs, as defined. Generally, to be eligible for state transit funding, transit operators in urban areas are required to recover at least 20% of their operating costs via fares; for rural transit operators, the required fare box recovery ratio is 10%. However, different standards apply to older transit operators, some of which are required to use whatever their ratio was in the 1978-79 Fiscal Year. Furthermore, the basis for calculating operating costs has morphed over the years in response to, for instance, insurance premium spikes after 9/11 and gas price spikes last decade.
The state uses another performance measure for transit operators that want to use STA funds for operating expenses. To be eligible for these funds, an operator's total operating costs per revenue vehicle hour must be maintained at or less than the previous year's costs, as adjusted by the CPI. Any increase in costs beyond the previous year, after adjusting for CPI, can cause an operator to forfeit the use of all STA funds for operating expenses.
These performance measures served the state well when they were established decades ago by ensuring that the state's then-new investment in public transit was appropriately leveraged with local funds and that state funds went to transit operators that could establish at least minimum levels of efficiency.
Now, however, these measures complicate operators' ability to deliver reliable services year to year because, for example:
Sudden, unplanned, and unavoidable cost increases jeopardize transit operators' LTF and STA funding.
LTF funding eligibility criteria are outdated and no longer reflect or allow for, for example, changing local economic conditions or political preferences, such as a desire to offer free or reduced transit for students.
Existing STA funding eligibility criteria impose an unforgiving and unreasonable "pass/fail" standard. A transit operator that fails to cap operating expenses by even 1% loses 100% of STA funds for operating expenses.
The author has introduced this bill to chip away at these problems that, left unchecked, would continue to threaten transit operators' receipt of LTF and STA funding. Specifically, this bill:
Makes fare box recovery ratios uniform, regardless of when a transit operator began providing service. Transit operators will be required to meet a fare box recovery ratio of 20% if they serve an urban area and 10% if they serve a non-urban area.
Synchronizes LTF and STA eligibility criteria and operating cost exclusions, thus making it easier to administer both programs and to comply with program requirements.
Minimizes the impact to operators that fail to comply with the all-or-nothing STA performance measure for operating funds. Establishes instead a proportional scale whereby some, but not all, of an operator's STA funds may be withheld for operating purposes if the transit operator fails to restrain operating costs from one year to the next. For example, an operator that exceeds allowable growth by 5% will lose 5% of its STA funds for operating expenses.
Makes other, non-substantive modifications to update provisions governing LTF and STA.
Given the evolving role of transit in the context of state priorities (e.g., greenhouse gas emission reductions), it may be that even the simplified fare box recovery ratios proposed by this bill are obsolete. Nonetheless, rather than abandon performance measures all together, the simplified fare box recovery ratio requirements proposed in this bill are an incremental step in the right direction.
Furthermore, provisions governing the LTF and STA programs are unnecessarily complicated. Aligning the eligibility criteria for both programs, including consistent calculations for operating expenses, is reasonable and should make it easier to administer the programs and for transit operators to comply with performance standards. Moreover, updating other provisions that provide transit operators greater flexibility in the use of state transit dollars, such as broadening the source of supplemental local funds, are similarly reasonable.
Undoubtedly, there will be a downside to relaxing fare box recovery ratio requirements and to authorizing a proportional use of STA funds for operating expenses in the event a transit operator fails to cap operating expense growth. The impacts of these changes should be closely monitored. Relative benefits of greater uniformity and flexibility should be weighed against any unintentional consequences that might arise, such as unreasonable growth in transit operating expenses. In the meantime, however, the state's transit performance metrics are broken and this bill proposes a reasonable approach to improving them.
Analysis Prepared by: Janet Dawson / TRANS. / (916) 319-2093 FN: 0001383
SB 508
Page 4
SENATE THIRD READING
SB 508
(Beall)
As Amended July 15, 2015
Majority vote
SENATE VOTE: 28-8
Committee |
Votes |
Ayes |
Noes |
Transportation |
16-0 |
Frazier, Achadjian, Baker, Bloom, Campos, Chu, Daly, Dodd, Eduardo Garcia, Gomez, Kim, Linder, Medina, Melendez, Nazarian, O'Donnell |
|
SUMMARY: Modifies performance metrics related to state funding for public transit and updates related provisions. Specifically, this bill:
Adds pedestrian safety education programs to the list of eligible uses of Local Transportation Fund (LTF) moneys.
Excludes the principal and interest payments on all capital projects funded with certificates of participation (COPs) from the definition of "operating cost" used to calculate a transit operator's fare box recovery ratio.
Simplifies fare box recovery ratio requirements used to determine a transit operator's eligibility to receive state transit funds.
Excludes from the calculation of fare box recovery ratios increased costs that are beyond the change in the Consumer Price Index (CPI) for all of the following:
Fuel;
Alternative fuel programs;
Power, including electricity;
Insurance premiums and settlement payments; and
State and federal mandates.
Further excludes, for two years, from the fare box recovery ratio equation startup costs for new services.
Provides transit operators greater flexibility in the use of local funds to satisfy fare box recovery ratio requirements.
Authorizes transit operators to use a portion of State Transit Assistance (STA) funds for operations even if they do not meet specified performance standards, beginning July 1, 2016.
EXISTING LAW:
The Transportation Development Act (TDA) provides two state funding sources for public transit:
LTF revenue is derived from a one-fourth-cent of the general sales tax collected statewide. These funds are distributed to each county according to the amount of tax collected in that county. LTF funds a wide variety of transportation programs, including planning and program activities, pedestrian and bicycle facilities, community transit services, public transportation, and bus and rail projects. In limited cases, counties may also use LTF moneys for local streets and roads construction and maintenance.
STA revenue is derived from the statewide sales tax on diesel fuel. STA funds are appropriated by the Legislature and are allocated by formula to planning agencies and other selected agencies. Existing law requires that 50% of STA funds be allocated according to population and 50% be allocated according to transit operator revenues from the prior fiscal year.
Requires transit operators to maintain a specified ratio of fare revenues to operating costs in order to be eligible to receive TDA funds. The required ratio varies. For operators that began providing service after 1979, their ratio is either 20% or 10%, depending on whether the service area is urban or non-urban. For operators that provided service prior to 1979, the required ratio is 20% or 10% (depending on whether the service area is urban or non-urban) or the ratio they attained in Fiscal Year 1978-79, whichever is greater.
Authorizes a transit operator to meet the fare box recovery ratio by combining fare revenues with certain local funds.
Defines "operating expenses" for purposes of calculating a transit operator's fare box recovery ratio; specifically excludes from the definition costs associated with depreciation and amortization, subsidies for commuter rail services, direct costs for providing charter services, and all vehicle lease costs.
Authorizes transit operators to use STA funds for operating expenses if their total operating costs per revenue vehicle-hour increases by no more than the changes in the CPI; excludes from this calculation costs beyond the CPI related to fuel, alternative fuel programs, power, insurance premiums and settlement payments, and federal and state mandates. Startup costs for new services are also excluded for two years.
Provides a one year extension, through the 2015-16 Fiscal Year, of an exemption to allow transit operators whose cost increases have exceeded the CPI to continue using STA funding for both operating and capital expenditures.
FISCAL EFFECT: None
COMMENTS: The primary performance measure related to state transit funding is the fare box recovery ratio. Simply put, the fare box recovery ratio compares revenue from passenger fares to operating costs, as defined. Generally, to be eligible for state transit funding, transit operators in urban areas are required to recover at least 20% of their operating costs via fares; for rural transit operators, the required fare box recovery ratio is 10%. However, different standards apply to older transit operators, some of which are required to use whatever their ratio was in the 1978-79 Fiscal Year. Furthermore, the basis for calculating operating costs has morphed over the years in response to, for instance, insurance premium spikes after 9/11 and gas price spikes last decade.
The state uses another performance measure for transit operators that want to use STA funds for operating expenses. To be eligible for these funds, an operator's total operating costs per revenue vehicle hour must be maintained at or less than the previous year's costs, as adjusted by the CPI. Any increase in costs beyond the previous year, after adjusting for CPI, can cause an operator to forfeit the use of all STA funds for operating expenses.
These performance measures served the state well when they were established decades ago by ensuring that the state's then-new investment in public transit was appropriately leveraged with local funds and that state funds went to transit operators that could establish at least minimum levels of efficiency.
Now, however, these measures complicate operators' ability to deliver reliable services year to year because, for example:
Sudden, unplanned, and unavoidable cost increases jeopardize transit operators' LTF and STA funding.
LTF funding eligibility criteria are outdated and no longer reflect or allow for, for example, changing local economic conditions or political preferences, such as a desire to offer free or reduced transit for students.
Existing STA funding eligibility criteria impose an unforgiving and unreasonable "pass/fail" standard. A transit operator that fails to cap operating expenses by even 1% loses 100% of STA funds for operating expenses.
The author has introduced this bill to chip away at these problems that, left unchecked, would continue to threaten transit operators' receipt of LTF and STA funding. Specifically, this bill:
Makes fare box recovery ratios uniform, regardless of when a transit operator began providing service. Transit operators will be required to meet a fare box recovery ratio of 20% if they serve an urban area and 10% if they serve a non-urban area.
Synchronizes LTF and STA eligibility criteria and operating cost exclusions, thus making it easier to administer both programs and to comply with program requirements.
Minimizes the impact to operators that fail to comply with the all-or-nothing STA performance measure for operating funds. Establishes instead a proportional scale whereby some, but not all, of an operator's STA funds may be withheld for operating purposes if the transit operator fails to restrain operating costs from one year to the next. For example, an operator that exceeds allowable growth by 5% will lose 5% of its STA funds for operating expenses.
Makes other, non-substantive modifications to update provisions governing LTF and STA.
Given the evolving role of transit in the context of state priorities (e.g., greenhouse gas emission reductions), it may be that even the simplified fare box recovery ratios proposed by this bill are obsolete. Nonetheless, rather than abandon performance measures all together, the simplified fare box recovery ratio requirements proposed in this bill are an incremental step in the right direction.
Furthermore, provisions governing the LTF and STA programs are unnecessarily complicated. Aligning the eligibility criteria for both programs, including consistent calculations for operating expenses, is reasonable and should make it easier to administer the programs and for transit operators to comply with performance standards. Moreover, updating other provisions that provide transit operators greater flexibility in the use of state transit dollars, such as broadening the source of supplemental local funds, are similarly reasonable.
Undoubtedly, there will be a downside to relaxing fare box recovery ratio requirements and to authorizing a proportional use of STA funds for operating expenses in the event a transit operator fails to cap operating expense growth. The impacts of these changes should be closely monitored. Relative benefits of greater uniformity and flexibility should be weighed against any unintentional consequences that might arise, such as unreasonable growth in transit operating expenses. In the meantime, however, the state's transit performance metrics are broken and this bill proposes a reasonable approach to improving them.
Analysis Prepared by: Janet Dawson / TRANS. / (916) 319-2093 FN: 0001267
SB 508
Page 5
Date of Hearing: July 13, 2015
ASSEMBLY COMMITTEE ON TRANSPORTATION
Jim Frazier, Chair
SB 508
(Beall) – As Amended May 12, 2015
SENATE VOTE: 28-8
SUBJECT: Transportation funds: transit operators: pedestrian safety.
SUMMARY: Modifies performance metrics related to state funding for public transit and updates related provisions. Specifically, this bill:
Adds pedestrian safety education programs to the list of eligible uses of Local Transportation Fund (LTF) moneys.
Excludes the principal and interest payments on all capital projects funded with certificates of participation (COPs) from the definition of "operating cost" used to calculate a transit operator’s fare box recovery ratio.
Simplifies fare box recovery ratio requirements used to determine a transit operator's eligibility to receive state transit funds.
Excludes from the calculation of fare box recovery ratios increased costs that are beyond the change in the Consumer Price Index (CPI) for all of the following:
Fuel;
Alternative fuel programs;
Power, including electricity;
Insurance premiums and settlement payments; and
State and federal mandates.
Further excludes, for two years, from the fare box recovery ratio equation startup costs for new services.
Provides transit operators greater flexibility in the use of local funds to satisfy fare box recovery ratio requirements.
Authorizes transit operators to use a portion of State Transit Assistance (STA) funds for operations even if they do not meet specified performance standards.
EXISTING LAW:
The Transportation Development Act (TDA) provides two state funding sources for public transit:
LTF revenue is derived from a ¼-cent of the general sales tax collected statewide. These funds are distributed to each county according to the amount of tax collected in that county. LTF funds a wide variety of transportation programs, including planning and program activities, pedestrian and bicycle facilities, community transit services, public transportation, and bus and rail projects. In limited cases, counties may also use LTF moneys for local streets and roads construction and maintenance.
STA revenue is derived from the statewide sales tax on diesel fuel. STA funds are appropriated by the Legislature and are allocated by formula to planning agencies and other selected agencies. Existing law requires that 50% of STA funds be allocated according to population and 50% be allocated according to transit operator revenues from the prior fiscal year.
Requires transit operators to maintain a specified ratio of fare revenues to operating costs in order to be eligible to receive TDA funds. The required ratio varies. For operators that began providing service after 1979, their ratio is either 20% or 10%, depending on whether the service area is urban or non-urban. For operators that provided service prior to 1979, the required ratio is 20% or 10% (depending on whether the service area is urban or non-urban) or the ratio they attained in fiscal year 1978-79, whichever is greater.
Authorizes a transit operator to meet the fare box recovery ratio by combining fare revenues with certain local funds.
Defines "operating expenses" for purposes of calculating a transit operator's fare box recovery ratio; specifically excludes from the definition costs associated with depreciation and amortization, subsidies for commuter rail services, direct costs for providing charter services, and all vehicle lease costs.
Authorizes transit operators to use STA funds for operating expenses if their total operating costs per revenue vehicle-hour increases by no more than the changes in the CPI; excludes from this calculation costs beyond the CPI related to fuel, alternative fuel programs, power, insurance premiums and settlement payments, and federal and state mandates. Startup costs for new services are also excluded for two years.
Provides a one year extension, through the 2015–16 fiscal year, of an exemption to allow transit operators whose cost increases have exceeded the CPI to continue using STA funding for both operating and capital expenditures.
FISCAL EFFECT: The bill is keyed non-fiscal.
COMMENTS: The primary performance measure related to state transit funding is the fare box recovery ratio. Simply put, the fare box recovery ratio compares revenue from passenger fares to operating costs, as defined. Generally, to be eligible for state transit funding, transit operators in urban areas are required to recover at least 20% of their operating costs via fares; for rural transit operators, the required fare box recovery ratio is 10%. However, different standards apply to older transit operators, some of which are required to use whatever their ratio was in the 1978-79 fiscal year. Furthermore, the basis for calculating operating costs has morphed over the years in response to, for instance, insurance premium spikes after 9/11 and gas price spikes last decade.
The state uses another performance measure for transit operators that want to use STA funds for operating expenses. To be eligible for these funds, an operator's total operating costs per revenue vehicle hour must be maintained at or less than the previous year's costs, as adjusted by the CPI. Any increase in costs beyond the previous year, after adjusting for CPI, can cause an operator to forfeit the use of all STA funds for operating expenses.
These performance measures served the state well when they were established decades ago by ensuring that the state's then-new investment in public transit was appropriately leveraged with local funds and that state funds went to transit operators that could establish at least minimum levels of efficiency.
Now, however, these measures complicate operators' ability to deliver reliable services year to year because, for example:
Sudden, unplanned, and unavoidable cost increases jeopardize transit operators' LTF and STA funding.
LTF funding eligibility criteria are outdated and no longer reflect or allow for, for example, changing local economic conditions or political preferences, such as a desire to offer free or reduced transit for students.
Existing STA funding eligibility criteria impose an unforgiving and unreasonable "pass/fail" standard. A transit operator that fails to cap operating expenses by even 1% loses 100% of STA funds for operating expenses.
The author has introduced SB 508 to chip away at these problems that, left unchecked, would continue to threaten transit operators' receipt of LTF and STA funding. Specifically, SB 508:
Makes fare box recovery ratios uniform, regardless of when a transit operator began providing service. Transit operators will be required to meet a fare box recovery ratio of 20% if they serve an urban area and 10% if they serve a non-urban area.
Synchronizes LTF and STA eligibility criteria and operating cost exclusions, thus making it easier to administer both programs and to comply with program requirements.
Minimizes the impact to operators that fail to comply with the all-or-nothing STA performance measure for operating funds. Establishes instead a proportional scale whereby some, but not all, of an operator's STA funds may be withheld for operating purposes if the transit operator fails to restrain operating costs from one year to the next. For example, an operator that exceeds allowable growth by 5% will lose 5% of its STA funds for operating expenses.
Makes other, non-substantive modifications to update provisions governing LTF and STA.
Given the evolving role of transit in the context of state priorities (e.g., greenhouse gas emission reductions), it may be that even the simplified fare box recovery ratios proposed by SB 508 are obsolete. Nonetheless, rather than abandon performance measures all together, the simplified fare box recovery ratio requirements proposed in SB 508 are an incremental step in the right direction.
Furthermore, provisions governing the LTF and STA programs are unnecessarily complicated. Aligning the eligibility criteria for both programs, including consistent calculations for operating expenses, is reasonable and should make it easier to administer the programs and for transit operators to comply with performance standards. Moreover, updating other provisions that provide transit operators greater flexibility in the use of state transit dollars, such as broadening the source of supplemental local funds, are similarly reasonable.
Undoubtedly,
there will be a downside to relaxing fare box recovery ratio
requirements and to authorizing a proportional use of STA funds for
operating expenses in the event a transit operator fails to cap
operating expense growth. The impacts of these changes should be
closely monitored. Relative benefits of greater uniformity and
flexibility should be weighed against any unintentional consequences
that might arise, such as unreasonable growth in transit operating
expenses. In the meantime, however, the state's transit performance
metrics are broken and
SB 508 proposes a reasonable approach to
improving them.
Technical
amendment: Recently enacted legislation related to the budget
[AB 95 (Committee on Budget), Chapter 12, Statutes of 2015], extended
by one year, through the 2015-16 fiscal year, an exemption to allow
transit operators whose cost increases have exceeded the CPI to
continue using STA funding for both operating and capital
expenditures. SB 508 (specifically Section 99314.6 of the Public
Utilities Code) should be amended to delay, until July 1, 2016, the
operative date of provisions that authorize a portion of STA funds to
be used for operations even if a transit operator exceeds last year's
operating costs so that SB 508 does not conflict with
AB 95.
Previous legislation: AB 95 (Committee on Budget), Chapter 12, Statutes of 2015, extended by one year, through the 2015–16 fiscal year, of an exemption to allow transit operators whose cost increases have exceeded the CPI to continue using STA funding for both operating and capital expenditures.
REGISTERED SUPPORT / OPPOSITION:
Support
California Transit Association (Sponsor)
Central Contra Costa Transit Authority
Gold Coast Transit
Mendocino Transit Authority
Monterey-Salinas Transit
Orange County Transportation Authority
Planning and Conservation League
Sacramento Area Council of Governments
Santa Clara Valley Transportation Authority
Santa Cruz Metropolitan Transit District
TransForm
Transportation
Agency for Monterey County
United Transportation Union
Ventura County Transportation Commission
Opposition
None on file
Analysis Prepared by: Janet Dawson / TRANS. / (916) 319-2093
SB 508
Page 7
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
THIRD READING
Bill No: SB 508
Amended: 5/12/15
SENATE TRANS. & HOUSING COMMITTEE: 8-0, 5/5/15
AYES: Beall, Allen, Galgiani, Leyva, McGuire, Mendoza, Roth, Wieckowski
NO VOTE RECORDED: Cannella, Bates, Gaines
SUBJECT: Transportation funds: transit operators: pedestrian safety
SOURCE: California Transit Association
DIGEST: This bill makes changes to performance metrics tied to state grants for transit operators.
ANALYSIS: In 1971, the Legislature enacted the Transportation Development Act (TDA), SB 325 (Mills, Chapter 1400), which dedicated a statewide 0.25% sales tax to local transportation in order to ensure “the efficient and orderly movement of people and goods in the urban areas of the state.” That 0.25% sales tax, now known as the Local Transportation Fund (LTF), generates over $1 billion primarily for public transit. Later, the Legislature created a second state funding source for public transit under the TDA called the State Transit Assistance (STA). The STA, generating more than $400 million annually, is derived from the sales tax on diesel and is distributed to local agencies based on population and transit operator revenues.
LTF
To be eligible to receive its full share of LTF, existing law requires a transit operator to meet a specified ratio of fare revenues to operating cost, called the farebox recovery ratio. Generally, existing law defines the minimum ratio necessary to receive all LTF funding as the higher of either:
What the ratio was for any given operator in the 1978-79 fiscal year, or
20% for urban operators, or 10% for operators in a non-urbanized area
In addition, if an operator receives funds from some other local revenue sources, it may be able to meet its farebox recovery ratio by combining fare revenues with that local support. If a transit operator fails to meet its specified farebox recovery ratio, existing law requires the regional transportation planning agency to withhold a percentage of the LTF equal to the percentage by which the operator missed its expected ratio.
STA
Existing law defines a transit operator’s total “revenue vehicle-hours” as the sum of all hours in which all transit vehicles in the system are making money for transporting customers. In order to use STA funding for operation of its system, a transit operator must meet qualifying criteria based on a calculation dividing total operating cost by total revenue vehicle-hours in the previous year, taking into consideration the change in the region’s Consumer Price Index (CPI). If an operator does not meet this qualifying criteria, it still receives all STA funds it is due, but can only spend the funds on capital expenditures. SB 565 (DeSaulnier, Chapter 341, Statutes of 2011) removed the qualifying criteria on STA funds until June 30, 2015.
Exemptions from the Definition of Operating Costs
A transit operator’s total operating costs is a critical component in the formulas calculating both performance metrics. The State Controller’s Office requires transit operators to report annually on their revenues and expenditures, and adopts a uniform system of accounts and records for these reports. Existing law defines operating cost for calculating a transit operator’s farebox recovery ratio as all costs in the Controller’s uniform system, excluding:
Depreciation and amortization expenses
All subsidies for commuter rail services
All direct costs for providing charter services
All vehicle lease costs
Separately, existing law excludes from the calculation determining STA qualifying criteria both the startup costs for new services and any cost increases beyond the change in CPI for:
Fuel, alternative fuel programs, and power, including electricity
Insurance premiums and settlement payments
State and federal mandates
This bill:
Excludes from the definition of operating costs when calculating a transit operator’s farebox recovery ratio the following costs:
Fuel, alternative fuel programs, and power, including electricity
Insurance premiums and settlement payments
State and federal mandates
Allows transit operators to use STA funds for operations even if they do not meet existing qualifying criteria, but reduces the amount available for operations proportionally by the percentage an operator fails to meet that criteria.
Eliminates the requirement for operators to meet the farebox recovery ratio they maintained during the 1978-79 fiscal year, leaving only the requirement that operators in urbanized areas maintain a 20% ratio and operators in nonurbanized areas maintain a 10% ratio.
Excludes the principal and interest payments on all capital projects funded with certificates of participation (COPs) from the definition of operating cost used to calculate a transit operator’s farebox recovery ratio.
Clarifies that local funds, when used to meet a transit operator’s farebox recovery ratio, includes any nonfederal or nonstate grants or other revenues generated by an operator.
Clarifies that a portion of LTF funds is available for education programs related to not only bicycle but also pedestrian safety.
Comments
Purpose. According to the author, cost increases over the years — sudden, unplanned and unavoidable — have threatened the continued receipt of transit operators’ TDA and STA funding. Local economic conditions, operating environments, the various built landscapes, and even political preferences with regard to transit affordability: all these factors change dynamically year to year. A more predictable, flexible system of accountability is needed with regard to the eligibility criteria for transit operators to receive funding. This bill is intended to amend existing accountability measures to create that more predictable, flexible system for local transit systems.
What is this bill really about? As described in the existing law section, the state calculates two relatively ineffective performance metrics against which transit operators are judged to determine state funding eligibility. The farebox recovery ratio is essentially based on the percentage of operating costs that are borne by the transit riders, while the STA eligibility criteria is intended to force operators to keep operating costs from growing more quickly than general inflation. Over time, these performance metrics have been diluted due to changes in existing law to allow for exemptions from what can be included in operating costs. They are, however, the closest thing the state has to holding transit operators accountable for effectively spending state dollars.
In many ways, this bill seeks to rationalize these performance metrics, for example, by attempting to apply the same operating cost exemptions to both of them. In addition, this bill clarifies a few terms that should help ensure expectations are applied uniformly to transit operators across the state. These seem like relatively responsible changes to existing law.
Ultimately, however, the Legislature and the administration need to reevaluate how the state should hold transit grant recipients accountable for managing their costs. Some argue that it may be irresponsible of the state to provide ever-increasing subsidies to operators simply to fund higher pay for transit operators who already earn fair wages.
Fixing the STA eligibility criteria. As mentioned earlier, the STA performance criteria require operators to keep operating costs from growing more quickly than CPI, a measure of inflation. Of significance, this bill eliminates the yes/no test of STA eligibility criteria, allowing transit operators who miss the criteria by an insignificant margin to continue to use most of their funds for operations. This seems like a reasonable aim, as it may be unfair to make all STA funds unavailable for operations if an operator does a good job of controlling costs but can’t quite keep costs in line with inflation.
There may be some new challenges created by the way this bill addresses this issue, however. Currently, this bill reduces the amount of STA funds available for operation by the percentage an operator allows costs to grow beyond CPI. For example, let’s assume this year’s CPI growth is 2%. If a transit operator’s costs grow 3% this year, then 99% of STA funds would still be available for operations. That might seem reasonable, as 3% isn’t much more than 2% and therefore the operator has done a relatively good job of controlling costs. Let’s assume, instead, that an operator does a poor job of controlling costs and its operating budget grows 10% in one year. That operator would still be able to use 92% of its STA funds for operations, which doesn’t seem like much of a penalty for not complying with the intent of the law.
Another concern which arises from this bill’s current proposal for changing the STA performance criteria is its potential long-term ramifications. This metric is based on annual growth; therefore, if every year an operator is allowing its operating cost growth to exceed CPI, then over time these costs compound to potentially become grossly out of line with what they are today. This could also potentially encourage behavior that might not hold true to the intent of the metric. To go back to a previous example, let’s say an operator is having trouble keeping cost growth within CPI growth, so in one year that operator just allows costs to grow 10%. In this bill’s current scheme, that operator would lose 10% of its STA funds for operations in one year, but for the next several years may have no trouble keeping cost growth down because it inflated growth in one year. It was penalized once, but had little incentive over the following years to manage cost growth because of the “room” it created in the one year it suffered the penalty.
At some point, the Legislature may need to consider whether this is the best approach to require transit operators to control cost growth, and whether there might be unintended consequences to the changes proposed in this bill.
Certificates of participation. COPs are defined as lease financing agreements in the form of tax-exempt securities, similar to bonds. In COP financing, title to a leased asset is assigned by the lessor to a trustee (non-profit corporation) that holds it for the benefit of the investors, the certificate holders. This financing technique provides long-term financing through a lease or lease-purchase agreement that legally does not constitute indebtedness under the state constitutional debt limitation. It is not subject to other statutory requirements applicable to bonds, including the requirement of a vote of citizens. In many ways, COPs payments are similar to an individual’s mortgage payments: The debt is securitized against the property, but still requires payment in order to guarantee use of the property.
A key characteristic of using COPs that distinguishes it from bond indebtedness is a nonappropriation clause. The nonappropriation or fiscal funding clause means that payments of the lease are dependent upon an annual appropriation by the governing body. This differentiates the lease from indebtedness such as that created by the sale of bonds because, with the nonappropriation provision, the present-year government’s action does not bind succeeding ones to pay the obligation. However, the non-debt classification of lease-purchase financing does not eliminate the need to fund lease payment expenditures nor does it eliminate the responsibility of the government to disclose the obligation in its financial statements.
This bill excludes principal and interest costs for COPs from the definition of operating costs when calculating a transit operator’s farebox recovery ratio. In some ways this is reasonable; if one considers COPs a debt instrument applicable to financing capital projects, then some accountants wouldn’t consider the debt service as a general operating cost and instead consider it a capital cost. Some may argue otherwise, however. For example, in the case where COPs might have been used to construct a building, and that building is occupied by the transit operator’s administration, replacing a cost to rent space an operator might have otherwise incurred, it seems reasonable to count COP payments as a general operating cost. Because it is unknown what types of projects transit operators are using COPs to fund, it is unclear what impact this bill will have on how the state ultimately holds transit operators accountable for the expenditure of state funds.
FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No
California Transit Association (source)
Monterey-Salinas Transit
Santa Clara Valley Transportation Authority
Transportation Agency for Monterey County
United Transportation Union
Ventura County Transportation Commission
OPPOSITION: (Verified 5/13/15)
None received
Prepared by: Eric Thronson / T. & H. / (916) 651-4121
5/13/15 17:26:22
**** END ****
SB 508 (Beall) Page 7 of 7
SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
Senator Jim Beall, Chair
2015 - 2016 Regular
Bill No: SB 508 Hearing Date: 5/5/2015
Author: |
Beall |
||
Version: |
4/27/2015 |
||
Urgency: |
No |
Fiscal: |
No |
Consultant: |
Eric Thronson |
||
SUBJECT: Transportation funds: transit operators: pedestrian safety.
DIGEST: This bill makes changes to performance metrics tied to state grants for transit operators.
ANALYSIS:
In 1971, the Legislature enacted the Transportation Development Act (TDA), Senate Bill 325, Chapter 1400, which dedicated a statewide ¼ percent sales tax to local transportation in order to ensure “the efficient and orderly movement of people and goods in the urban areas of the state.” That ¼ percent sales tax, now known as the Local Transportation Fund (LTF), generates over $1 billion primarily for public transit. Later, the Legislature created a second state funding source for public transit under the TDA called the State Transit Assistance (STA). The STA, generating more than $400 million annually, is derived from the sales tax on diesel and is distributed to local agencies based on population and transit operator revenues.
LTF
To be eligible to receive its full share of LTF, existing law requires a transit operator to meet a specified ratio of fare revenues to operating cost, called the farebox recovery ratio. Generally, existing law defines the minimum ratio necessary to receive all LTF funding as the higher of either:
What the ratio was for any given operator in the 1978-79 fiscal year, or
20% for urban operators, or 10% for operators in a non-urbanized area
In addition, if an operator receives funds from some other local revenue sources, it may be able to meet its farebox recovery ratio by combining fare revenues with that local support. If a transit operator fails to meet its specified farebox recovery ratio, existing law requires the regional transportation planning agency to withhold a percentage of the LTF equal to the percentage by which the operator missed its expected ratio.
STA
Existing law defines a transit operator’s total “revenue vehicle-hours” as the sum of all hours in which all transit vehicles in the system are making money for transporting customers. In order to use STA funding for operation of its system, a transit operator must meet qualifying criteria based on a calculation dividing total operating cost by total revenue vehicle-hours in the previous year, taking into consideration the change in the region’s Consumer Price Index (CPI). If an operator does not meet this qualifying criteria, it still receives all STA funds it is due, but can only spend the funds on capital expenditures. SB 565 (DeSaulnier), Chapter 341, Statutes of 2011, removed the qualifying criteria on STA funds until June 30, 2015.
Exemptions from the definition of operating costs
A transit operator’s total operating costs is a critical component in the formulas calculating both performance metrics. The State Controller’s Office requires transit operators to report annually on their revenues and expenditures, and adopts a uniform system of accounts and records for these reports. Existing law defines operating cost for calculating a transit operator’s farebox recovery ratio as all costs in the Controller’s uniform system, excluding:
Depreciation and amortization expenses
All subsidies for commuter rail services
All direct costs for providing charter services
All vehicle lease costs
Separately, existing law excludes from the calculation determining STA qualifying criteria both the startup costs for new services and any cost increases beyond the change in CPI for:
Fuel, alternative fuel programs, and power, including electricity
Insurance premiums and settlement payments
State and federal mandates
This bill:
Excludes from the definition of operating costs when calculating a transit operator’s farebox recovery ratio the following costs:
Fuel, alternative fuel programs, and power, including electricity
Insurance premiums and settlement payments
State and federal mandates
Allows transit operators to use STA funds for operations even if they do not meet existing qualifying criteria, but reduces the amount available for operations proportionally by the% an operator fails to meet that criteria.
Eliminates the requirement for operators to meet the farebox recovery ratio they maintained during the 1978-79 fiscal year, leaving only the requirement that operators in urbanized areas maintain a 20% ratio and operators in nonurbanized areas maintain a 10% ratio.
Excludes the principal and interest payments on all capital projects funded with certificates of participation (COPs) from the definition of operating cost used to calculate a transit operator’s farebox recovery ratio.
Clarifies that local funds, when used to meet a transit operator’s farebox recovery ratio, includes any nonfederal or nonstate grants or other revenues generated by an operator.
Clarifies that a portion of LTF funds is available for education programs related to not only bicycle but also pedestrian safety.
COMMENTS:
Purpose. According to the author, cost increases over the years — sudden, unplanned and unavoidable — have threatened the continued receipt of transit operators’ TDA and STA funding. Local economic conditions, operating environments, the various built landscapes, and even political preferences with regard to transit affordability: all these factors change dynamically year to year. A more predictable, flexible system of accountability is needed with regard to the eligibility criteria for transit operators to receive funding. This bill is intended to amend existing accountability measures to create that more predictable, flexible system for local transit systems.
What is going on here? As described in the existing law section, the state calculates two relatively ineffective performance metrics against which transit operators are judged to determine state funding eligibility. The farebox recovery ratio is essentially based on the percentage of operating costs that are borne by the transit riders, while the STA eligibility criteria is intended to force operators to keep operating costs from growing more quickly than general inflation. Over time, these performance metrics have been diluted due to changes in existing law to allow for exemptions from what can be included in operating costs. They are, however, the closest thing the state has to holding transit operators accountable for effectively spending state dollars.
In many ways, this bill seeks to rationalize these performance metrics, for example, by attempting to apply the same operating cost exemptions to both of them. In addition, this bill clarifies a few terms that should help ensure expectations are applied uniformly to transit operators across the state. These seem like relatively responsible changes to existing law.
Ultimately, however, the committee and the administration need to reevaluate how the state should hold transit grant recipients accountable for managing their costs. Some argue that it may be irresponsible of the state to provide ever-increasing subsidies to operators simply to fund higher pay for transit operators who already earn fair wages.
Fixing the STA eligibility criteria. As mentioned earlier, the STA performance criteria require operators to keep operating costs from growing more quickly than CPI, a measure of inflation. Of significance, this bill eliminates the yes/no test of STA eligibility criteria, allowing transit operators who miss the criteria by an insignificant margin to continue to use most of their funds for operations. This seems like a reasonable aim, as it may be unfair to make all STA funds unavailable for operations if an operator does a good job of controlling costs but can’t quite keep costs in line with inflation.
There may be some new challenges created by the way this bill addresses this issue, however. Currently, this bill reduces the amount of STA funds available for operation by the percentage an operator allows costs to grow beyond CPI. For example, let’s assume this year’s CPI growth is 2 percent. If a transit operator’s costs grow 3% this year, then 99% of STA funds would still be available for operations. That might seem reasonable, as 3% isn’t much more than 2% and therefore the operator has done a relatively good job of controlling costs. Let’s assume, instead, that an operator does a poor job of controlling costs and its operating budget grows 10% in one year. That operator would still be able to use 92% of its STA funds for operations, which doesn’t seem like much of a penalty for not complying with the intent of the law.
Another concern which arises from this bill’s current proposal for changing the STA performance criteria is its potential long-term ramifications. This metric is based on annual growth; therefore, if every year an operator is allowing its operating cost growth to exceed CPI, then over time these costs compound to potentially become grossly out of line with what they are today. This could also potentially encourage behavior that might not hold true to the intent of the metric. To go back to a previous example, let’s say an operator is having trouble keeping cost growth within CPI growth, so in one year that operator just allows costs to grow 10%. In this bill’s current scheme, that operator would lose 10% of its STA funds for operations in one year, but for the next several years may have no trouble keeping cost growth down because it inflated growth in one year. It was penalized once, but had little incentive over the following years to manage cost growth because of the “room” it created in the one year it suffered the penalty.
At some point, the Legislature may need to consider whether this is the best approach to require transit operators to control cost growth, and whether there might be unintended consequences to the changes proposed in this bill.
Certificates of participation. COPs are defined as lease financing agreements in the form of tax-exempt securities, similar to bonds. In COP financing, title to a leased asset is assigned by the lessor to a trustee (non-profit corporation) that holds it for the benefit of the investors, the certificate holders. This financing technique provides long-term financing through a lease or lease-purchase agreement that legally does not constitute indebtedness under the state constitutional debt limitation. It is not subject to other statutory requirements applicable to bonds, including the requirement of a vote of citizens. In many ways, COPs payments are similar to an individual’s mortgage payments: The debt is securitized against the property, but still requires payment in order to guarantee use of the property.
A key characteristic of using COPs that distinguishes it from bond indebtedness is a nonappropriation clause. The nonappropriation or fiscal funding clause means that payments of the lease are dependent upon an annual appropriation by the governing body. This differentiates the lease from indebtedness such as that created by the sale of bonds because, with the nonappropriation provision, the present-year government’s action does not bind succeeding ones to pay the obligation. However, the non-debt classification of lease-purchase financing does not eliminate the need to fund lease payment expenditures nor does it eliminate the responsibility of the government to disclose the obligation in its financial statements.
This bill excludes principal and interest costs for COPs from the definition of operating costs when calculating a transit operator’s farebox recovery ratio. In some ways this is reasonable; if you consider COPs a debt instrument applicable to financing capital projects, then some accountants wouldn’t consider the debt service as a general operating cost and instead consider it a capital cost. Some may argue otherwise, however. For example, in the case where COPs might have been used to construct a building, and that building is occupied by the transit operator’s administration, replacing a cost to rent space an operator might have otherwise incurred, it seems reasonable to count COP payments as a general operating cost. Because it is unknown what types of projects transit operators are using COPs to fund, it is unclear what impact this bill will have on how the state ultimately holds transit operators accountable for the expenditure of state funds.
Drafting error. This bill attempts to harmonize the various exclusions from the definition of operating costs. Unfortunately, it appears that a drafting error mischaracterizes the harmonization of existing law. The author has agreed to make the following change to appropriately apply one set of exclusions to another section of existing law:
On page 7, strike lines 32 through 40
On page 8, strike lines 1 through 2
Insert the following:
(2) cost increases beyond the change in the Consumer Price Index for:
Fuel.
Alternative fuel programs.
Insurance premiums and payments in settlement of claims arising out of the operator’s liability.
State and federal mandates.
FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No
POSITIONS: (Communicated to the committee before noon on Wednesday,
April 29, 2015.)
SUPPORT:
California Transit Association (sponsor)
Monterey-Salinas Transit
United Transportation Union
Ventura County Transportation Commission
OPPOSITION:
None received
-- END --
Discussed in Hearing
2MIN
Senate Floor
1MIN
Assembly Floor
56SEC
Assembly Floor
2MIN
Senate Floor
Bill Author
Bill Co-Author(s):