AB 1113: State Transit Assistance Program.
- Session Year: 2017-2018
- House: Assembly
- Latest Version Date: 2017-07-21
Existing law requires the transfer of a specified portion of the sales tax on diesel fuel, in addition to various other revenues, to the Public Transportation Account, a trust fund in the State Transportation Fund. Existing law requires funds in the account to be allocated to various public transportation and transportation planning purposes, with specified revenues in the account to be allocated by the Controller to specified local transportation agencies for public transportation purposes, pursuant to the State Transit Assistance (STA) Program. Existing law requires STA funds to be allocated by formulas based 50% on population and 50% on transit operator revenues.
This bill would revise and recast the provisions governing the STA program. The bill would provide that only STA-eligible operators, as defined, are eligible to receive an allocation from the portion of program funds based on transit operator revenues. The bill would provide for each STA-eligible operator within the jurisdiction of the allocating local transportation agency to receive a proportional share of the revenue-based program funds based on the qualifying revenues of that operator, as defined. The bill would revise the duties of the Controller and the Department of Transportation in administering the program. The bill would make various other conforming changes and would delete obsolete provisions.
Existing law requires the Controller, relative to local transportation funds available for public transportation and other purposes in each county, to design and adopt a uniform system of accounts and records under which operators, as defined, prepare and submit annual reports of their operation. Existing law generally requires the annual report to be submitted within 90 days of the end of the fiscal year.
This bill would instead require the report to be submitted within 7 months after the end of the fiscal year, and to contain underlying data from audited financial statements, as specified. The bill would also require certain information to be reported by transportation agencies with respect to eligibility for funding of STA-eligible operators under the State Transit Assistance Program.
Existing law requires the Controller to calculate and publish the allocation of transit operator-based funds made pursuant to the State Transit Assistance Program for the 3rd and 4th quarters of the 201516 fiscal year and for all 4 quarters of the 201617 and 201718 fiscal years based on the same list of operators and the same individual operator ratios published by the Controller in a specified transmittal memo for the 4th quarter for the 201415 fiscal year, except as specified.
This bill would only require the Controller to calculate and publish this allocation of transit operator-based funds made pursuant the State Transit Assistance Program for the 3rd and 4th quarters of the 201516 fiscal year and for all 4 quarters of the 201617 fiscal year.
This bill would declare that it is to take effect immediately as an urgency statute.
Existing law requires the transfer of a specified portion of the sales tax on diesel fuel, in addition to various other revenues, to the Public Transportation Account, a trust fund in the State Transportation Fund. Existing law requires funds in the account to be allocated to various public transportation and transportation planning purposes, with specified revenues in the account to be allocated by the Controller to specified local transportation agencies for public transportation purposes, pursuant to the State Transit Assistance (STA) Program. Existing law requires STA funds to be allocated by formulas based 50% on population and 50% on transit operator revenues.
This bill would revise and recast the provisions governing the STA program. The bill would provide that only STA-eligible operators, as defined, are eligible to receive an allocation from the portion of program funds based on transit operator revenues. The bill would provide for each STA-eligible operator within the jurisdiction of the allocating local transportation agency to receive a proportional share of the revenue-based program funds based on the qualifying revenues of that operator, as defined. The bill would revise the duties of the Controller and the Department of Transportation in administering the program. The bill would make various other conforming changes and would delete obsolete provisions.
Existing law requires the Controller, relative to local transportation funds available for public transportation and other purposes in each county, to design and adopt a uniform system of accounts and records under which operators, as defined, prepare and submit annual reports of their operation. Existing law generally requires the annual report to be submitted within 90 days of the end of the fiscal year.
This bill would instead require the report to be submitted within 7 months after the end of the fiscal year, and to contain underlying data from audited financial statements, as specified. The bill would also require certain information to be reported by transportation agencies with respect to eligibility for funding of STA-eligible operators under the State Transit Assistance Program.
Existing law requires the Controller to calculate and publish the allocation of transit operator-based funds made pursuant to the State Transit Assistance Program for the 3rd and 4th quarters of the 201516 fiscal year and for all 4 quarters of the 201617 and 201718 fiscal years based on the same list of operators and the same individual operator ratios published by the Controller in a specified transmittal memo for the 4th quarter for the 201415 fiscal year, except as specified.
This bill would only require the Controller to calculate and publish this allocation of transit operator-based funds made pursuant the State Transit Assistance Program for the 3rd and 4th quarters of the 201516 fiscal year and for all 4 quarters of the 201617 fiscal year.
This bill would declare that it is to take effect immediately as an urgency statute.
Existing law requires the transfer of a specified portion of the sales tax on diesel fuel, in addition to various other revenues, to the Public Transportation Account, a trust fund in the State Transportation Fund. Existing law requires funds in the account to be allocated to various public transportation and transportation planning purposes, with specified revenues in the account to be allocated by the Controller to specified local transportation agencies for public transportation purposes, pursuant to the State Transit Assistance (STA) Program. Existing law requires STA funds to be allocated by formulas based 50% on population and 50% on transit operator revenues.
This bill would revise and recast the provisions governing the STA program. The bill would provide that only STA-eligible operators, as defined, are eligible to receive an allocation from the portion of program funds based on transit operator revenues. The bill would provide for each STA-eligible operator within the jurisdiction of the allocating local transportation agency to receive a proportional share of the revenue-based program funds based on the qualifying revenues of that operator, as defined. The bill would revise the duties of the Controller and the Department of Transportation in administering the program. The bill would make various other conforming changes and would delete obsolete provisions.
Existing law requires the Controller, relative to local transportation funds available for public transportation and other purposes in each county, to design and adopt a uniform system of accounts and records under which operators, as defined, prepare and submit annual reports of their operation. Existing law generally requires the annual report to be submitted within 90 days of the end of the fiscal year.
This bill would instead require the report to be submitted within 7 months after the end of the fiscal year, and to contain underlying data from audited financial statements, as specified. The bill would also require certain information to be reported by transportation agencies with respect to eligibility for funding of STA-eligible operators under the State Transit Assistance Program.
Existing law requires the Controller to calculate and publish the allocation of transit operator-based funds made pursuant to the State Transit Assistance Program for the 3rd and 4th quarters of the 201516 fiscal year and for all 4 quarters of the 201617 and 201718 fiscal years based on the same list of operators and the same individual operator ratios published by the Controller in a specified transmittal memo for the 4th quarter for the 201415 fiscal year, except as specified.
This bill would only require the Controller to calculate and publish this allocation of transit operator-based funds made pursuant the State Transit Assistance Program for the 3rd and 4th quarters of the 201516 fiscal year and for all 4 quarters of the 201617 fiscal year.
This bill would declare that it is to take effect immediately as an urgency statute.
Existing law requires the transfer of a specified portion of the sales tax on diesel fuel, in addition to various other revenues, to the Public Transportation Account, a trust fund in the State Transportation Fund. Existing law requires funds in the account to be allocated to various public transportation and transportation planning purposes, with specified revenues in the account to be allocated by the Controller to specified local transportation agencies for public transportation purposes, pursuant to the State Transit Assistance (STA) program. Program. Existing law requires STA funds to be allocated by formulas based 50% on population and 50% on transit operator revenues.
This bill would revise and recast the provisions governing the STA program. The bill would provide that only STA-eligible operators, as defined, are eligible to receive an allocation from the portion of program funds based on transit operator revenues. The bill would provide for each STA-eligible operator within the jurisdiction of the allocating local transportation agency to receive a proportional share of the revenue-based program funds based on the qualifying revenues of that operator, as defined. The bill would revise the duties of the Controller and the Department of Transportation in administering the program. The bill would make various other conforming changes and would delete obsolete provisions.
Existing law requires the Controller, relative to local transportation funds available for public transportation and other purposes in each county, to design and adopt a uniform system of accounts and records under which operators, as defined, prepare and submit annual reports of their operation. Existing law generally requires the annual report to be submitted within 90 days of the end of the fiscal year.
This bill would instead require the report to be submitted within 7 months after the end of the fiscal year, and to contain underlying data from audited financial statements, as specified. The bill would also require certain information to be reported by operators transportation agencies with respect to eligibility for funding of STA-eligible operators under the State Transit Assistance program as STA-eligible operators. Program.
This bill would declare that it is to take effect immediately as an urgency statute.
Existing law requires the transfer of a specified portion of the sales tax on diesel fuel, in addition to various other revenues, to the Public Transportation Account, a trust fund in the State Transportation Fund. Existing law requires funds in the account to be allocated to various public transportation and transportation planning purposes, with specified revenues in the account to be allocated by the Controller to specified local transportation agencies for public transportation purposes, pursuant to the State Transit Assistance (STA) program. Existing law requires STA funds to be allocated by formulas based 50% on population and 50% on transit operator revenues.
This bill would revise and recast the provisions governing the STA program. The bill would provide that only STA-eligible operators, as defined, are eligible to receive an allocation from the portion of program funds based on transit operator revenues. The bill would provide for each STA-eligible operator within the jurisdiction of the allocating local transportation agency to receive a proportional share of the revenue-based program funds based on the qualifying revenues of that operator, as defined. The bill would revise the duties of the Controller and the Department of Transportation in administering the program. The bill would make various other conforming changes and would delete obsolete provisions.
Existing law requires the Controller, relative to local transportation funds available for public transportation and other purposes in each county, to design and adopt a uniform system of accounts and records under which operators, as defined, prepare and submit annual reports of their operation. Existing law generally requires the annual report to be submitted within 90 days of the end of the fiscal year.
This bill would instead require the report to be submitted within 7 months after the end of the fiscal year, and to contain underlying data from audited financial statements, as specified. The bill would also require certain information to be reported by operators with respect to eligibility for funding under the State Transit Assistance program as STA-eligible operators.
Existing law requires the transfer of a specified portion of the sales tax on diesel fuel, in addition to various other revenues, to the Public Transportation Account, a trust fund in the State Transportation Fund. Existing law requires funds in the account to be allocated to various public transportation and transportation planning purposes, with specified revenues in the account to be allocated by the Controller to specified local transportation agencies for public transportation purposes, pursuant to the State Transit Assistance (STA) program. Existing law requires STA funds to be allocated by formulas based 50% on population and 50% on transit operator revenues.
This bill would revise and recast the provisions governing the STA program. The bill would provide that only STA-eligible operators, as defined, are eligible to receive an allocation from the portion of program funds based on transit operator revenues. The bill would provide for each STA-eligible operator within the jurisdiction of the allocating local transportation agency to receive a proportional share of the revenue-based program funds based on the qualifying revenues of that operator, as defined. The bill would revise the duties of the Controller and the Department of Transportation in administering the program. The bill would make various other conforming changes and would delete obsolete provisions.
(a)The Controller, in cooperation with the department and the operators, shall design and adopt a uniform system of accounts and records, from which the operators shall prepare and submit annual reports of their operation to transportation planning agencies, county transportation commissions, or the San Diego Metropolitan Transit Development Board having jurisdiction over them and to the Controller within seven months after the end of the fiscal year. The report shall contain underlying data from audited financial statements prepared in accordance with generally accepted accounting principles, if this data is available. The report shall specify (1) the amount of revenue generated from each source and its application for the prior fiscal year and (2) the data necessary to determine which section, with respect to Sections 99268.1, 99268.2, 99268.3, 99268.4, 99268.5, and 99268.9, the operator is required to be in compliance in order to be eligible for funds under this article.
(b)(1)For the purposes of the State Transit Assistance Program, which is governed by Sections 99312 to 99314.9, inclusive, the Controller shall provide a mechanism for each transportation planning agency, county transportation commission, and the San Diego Metropolitan Transit Development Board to report to the Controller those operators within its jurisdiction that are STA-eligible operators, as defined in paragraph (2) of subdivision (b) of Section 99312.2.
(2)The mechanism shall require each transportation planning agency, county transportation commission, and the San Diego Metropolitan Transit Development Board to report to the Controller those STA-eligible operators within its jurisdiction that are both:
(A)Eligible to claim local transportation funds under either Article 4 (commencing with Section 99260) or Article 8 (commencing with Section 99400), or under both articles.
(B)A public transportation operator, as defined in paragraph (1) of subdivision (b) of Section 99312.2.
(3)The Controller shall rely upon that verification to determine whether or not an operator is an STA-eligible operator pursuant to paragraph (2) of subdivision (b) of Section 99312.2. The transportation planning agency, county transportation commission, and the San Diego Metropolitan Transit Development Board shall provide this information to the Controller within 60 days of the enactment of the act amending this section in the 201718 Regular Session, and by June 15 of each subsequent year.
(c)As a supplement to the annual report prepared pursuant to subdivision (a), each operator shall include an estimate of the amount of revenues to be generated from each source and its proposed application for the next fiscal year, and a report on the extent to which it has contracted with the Prison Industry Authority, including the nature and dollar amounts of all contracts entered into during the reporting period and proposed for the next reporting period.
(d)The Controller shall instruct the county auditor to withhold payments from the fund to an operator that has not submitted its annual report to the Controller within the time specified by subdivision (a).
(e)In establishing the uniform system of accounts and records, the Controller shall include the data required by the United States Department of Transportation and the department.
(f)Notwithstanding any other law or any regulation, including any California Code of Regulations provision, the City of El Segundo, the City of Huntington Beach, the City of Inglewood, the City of Long Beach, or the City of South Lake Tahoe may select, for purposes of this chapter, on a one-time basis, a fiscal year that does not end on June 30. After the city has sent a written notice to the Secretary of Transportation and the Controller that the city has selected a fiscal year other than one ending on June 30, the fiscal year selected by the city shall be its fiscal year for all reports required by the state under this chapter.
SEC. 2.Section 99312 of the Public Utilities Code is amended to read:99312.Except as provided in Sections 99311 and 99311.5, and Sections 6051.8 and 6201.8 of the Revenue and Taxation Code, the funds in the account shall be made available for the following purposes:
(a)Fifty percent for purposes of Section 99315, subject to appropriation by the Legislature.
(b)To the Controller, 25 percent for allocation to transportation planning agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board pursuant to Section 99314, for the purposes of the State Transit Assistance Program. These funds are hereby continuously appropriated for these purposes.
(c)To the Controller, 25 percent for allocation to transportation planning agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board pursuant to Section 99313, for the purposes of the State Transit Assistance Program. These funds are hereby continuously appropriated for these purposes.
SEC. 3.Section 99312.1 of the Public Utilities Code is amended to read:99312.1.(a)Revenues transferred to the Public Transportation Account pursuant to Sections 6051.8 and 6201.8 of the Revenue and Taxation Code for the State Transit Assistance Program are hereby continuously appropriated to the Controller for allocation as follows:
(1)Fifty percent for allocation to transportation planning agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board pursuant to Section 99314, for purposes of the State Transit Assistance Program.
(2)Fifty percent for allocation to transportation agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board pursuant to Section 99313, for purposes of the State Transit Assistance Program.
(b)For purposes of this chapter, the revenues allocated pursuant to this section shall be subject to the same requirements as revenues allocated pursuant to subdivisions (b) and (c), as applicable, of Section 99312.
(c)The revenues transferred to the Public Transportation Account for the State Transit Assistance Program that are attributable to subdivision (a) of Section 11053 of the Revenue and Taxation Code are hereby continuously appropriated to the Controller, and, upon allocation pursuant to Sections 99313 and 99314, shall only be expended on the following:
(1)Transit capital projects or services to maintain or repair a transit operators existing transit vehicle fleet or existing transit facilities, including rehabilitation or modernization of existing vehicles or facilities.
(2)The design, acquisition, and construction of new vehicles or facilities that improve existing transit services.
(3)Transit services that complement local efforts for repair and improvement of local transportation infrastructure.
(d)(1)Prior to receiving an apportionment of funds pursuant to subdivision (c) from the Controller in a fiscal year, a recipient transit agency shall submit to the Department of Transportation a list of projects proposed to be funded with these funds. The list of projects proposed to be funded with these funds shall include a description and location of each proposed project, a proposed schedule for the projects completion, and the estimated useful life of the improvement. The project list shall not limit the flexibility of a recipient transit agency to fund projects in accordance with local needs and priorities so long as the projects are consistent with subdivision (c).
(2)The department shall report to the Controller the recipient transit agencies that have submitted a list of projects as described in this subdivision and that are therefore eligible to receive an apportionment of funds for the applicable fiscal year. The Controller, upon receipt of the report, shall apportion funds quarterly pursuant to Sections 99313 and 99314.
(e)For each fiscal year, each recipient transit agency receiving an apportionment of funds pursuant to subdivision (c) shall, upon expending those funds, submit documentation to the department that includes a description and location of each completed project, the amount of funds expended on the project, the completion date, and the estimated useful life of the improvement.
(f)The audit of transit operator finances required pursuant to Section 99245 shall verify that the revenues identified in subdivision (c) have been expended in conformance with these specific requirements and all other generally applicable requirements.
SEC. 4.Section 99312.2 of the Public Utilities Code is repealed.SEC. 5.Section 99312.2 is added to the Public Utilities Code, to read:99312.2.(a)The State Transit Assistance Program, also known as the STA program, which provides for allocations of funds made available from the Public Transportation Account pursuant to Sections 99313 and 99314, and which is governed by Sections 99312 to 99314.9, inclusive, is hereby continued in existence. The purpose of the STA program is to provide a source of state funding to eligible public transportation operators and other transportation agencies in order to support their local and regional transit operating and capital needs.
(b)For purposes of the STA program, the following terms shall have the following meanings:
(1)Public transportation operator has the same meaning as operator, as defined in Section 99210, as long as that operator operates a public transportation system, as defined in Section 99211.
(2)STA-eligible operator means a public transportation operator eligible to claim local transportation funds under either Article 4 (commencing with Section 99260) or Article 8 (commencing with Section 99400), or under both articles.
(c)The only entities eligible to receive direct allocations from the Controller under Sections 99313 and 99314 shall be transportation planning agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board. The Controller shall distribute funds attributable to transportation planning agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board to the applicable county treasurers office. Upon the request of a transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, the Controller shall instead distribute the applicable funds directly to the requesting agency.
(d)Only STA-eligible operators shall be eligible to receive STA program funds allocated by transportation planning agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board pursuant to Section 99314. An STA-eligible operator, at its discretion, may further suballocate funds it receives pursuant to Section 99314 to an entity operating local community transit services that is eligible to claim local transportation funds pursuant to Article 4.5 (commencing with Section 99275) but that is otherwise ineligible to directly receive funds allocated pursuant to Section 99314.
(e)An entity operating community transit services pursuant to Article 4.5 (commencing with Section 99275) may be allocated funds pursuant to Section 99313 as a subrecipient at the discretion of the transportation planning agency, the county transportation commission, or the San Diego Metropolitan Transit Development Board.
(f)The Los Angeles County Metropolitan Transportation Authority, which is both a county transportation commission for purposes of Sections 99313 and 99314, and an STA-eligible operator for purposes of Section 99314, may incorporate into its report pursuant to Section 99243 any operating costs for local community transit service under contract with the authority, including service provided by a consolidated transportation service agency pursuant to Section 99204.5 or by operators eligible to expend local transportation funds only under Article 4.5 (commencing with Section 99275).
SEC. 6.Section 99312.7 of the Public Utilities Code is amended to read:99312.7.(a)Not later than each January 31st, for purposes of the State Transit Assistance Program, the Controller shall compute, publish, and send to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board an estimate of the amount of funds from subdivisions (b) and (c) of Section 99312 and Section 99312.1 to be allocated to it during the next fiscal year pursuant to Sections 99313 and 99314.
(b)Not later than each August 1st, on the basis of the amounts continuously appropriated pursuant to subdivisions (b) and (c) of Section 99312 and Section 99312.1 for the applicable fiscal year for purposes of Sections 99313 and 99314, the Controller shall compute, publish, and send to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board an estimate of the amount of funds to be allocated to it during the fiscal year. Notwithstanding any other law, for the 201718 fiscal year, the Controller shall compute, publish, and send the estimate within 90 days of the enactment of the act amending this section in the 201718 Regular Session.
(c)The Controller, along with the actions taken pursuant to subdivisions (a) and (b), with respect to the allocations under Section 99314, shall also compute, publish, and send to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board the share of funds corresponding to each STA-eligible operator within the jurisdiction of each agency, commission, and board.
SEC. 7.Section 99313 of the Public Utilities Code is amended to read:99313.(a)From the funds made available pursuant to subdivision (c) of Section 99312 and subdivision (b) of Section 99312.1, an amount shall be allocated by the Controller to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board based on the ratio of the population of the area under its jurisdiction to the total population of the state. The Controller shall base these allocations on a report prepared by the Department of Transportation. On or before June 30 of each year, the Department of Transportation shall prepare and submit to the Controller a report detailing the population of each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board. For the purpose of this report, the Department of Transportation shall use the most recent population estimates of the Department of Finance and the information provided pursuant to subdivision (b).
(b)To assist the Department of Transportation in determining the populations of the San Diego Metropolitan Transit Development Board, the San Diego Association of Governments, the El Dorado County Transportation Commission, the Placer County Transportation Planning Agency, and the Tahoe Regional Planning Agency for the purpose of subdivision (c) of Section 99312 and subdivision (b) of Section 99312.1, each of those entities, on or before June 1st of each year, shall provide the department with the population of its respective jurisdiction using the most recent population estimates of the Department of Finance.
SEC. 8.Section 99313.1 of the Public Utilities Code is amended to read:99313.1.(a)A transportation planning agency, a county transportation commission, or the San Diego Metropolitan Transit Development Board may transfer any funds that it receives pursuant to Section 99313 to another transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, as applicable. Any funds transferred pursuant to this section shall be used only for the purposes authorized by this chapter and are subject to all statutes and rules and regulations applicable to funds allocated pursuant to Section 99313.
(b)If one transfer has been completed between a transportation planning agency, a county transportation commission, or the San Diego Metropolitan Transit Development Board, pursuant to this section, no other transfer may be made between the same parties.
(c)In the event of a transfer of funds to the Los Angeles County Metropolitan Transportation Authority pursuant to this section, the amount of that transfer, if any, which exceeds the amount of funds transferred at that time by the Los Angeles County Metropolitan Transportation Authority to the transferring transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, may not be used for the purpose of funding an exclusive public mass transit guideway system project. The Los Angeles County Metropolitan Transportation Authority shall report to the Senate Committee on Transportation and Housing and the Assembly Committee on Transportation on the expenditure of any funds received by it pursuant to a transfer made pursuant to this section.
SEC. 9.Section 99313.3 of the Public Utilities Code is amended to read:99313.3.The amount received by each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board, pursuant to Sections 99313 and 99314, shall be allocated for public transportation purposes. Pursuant to subdivision (d) of Section 99312.2, funds received pursuant to Section 99314 may be allocated only to STA-eligible operators. Funds received pursuant to Section 99314 may be expended by STA-eligible operators for community transit services pursuant to Section 99275, including payments or allocations to entities eligible to claim local transportation funds under Article 4.5 (commencing with Section 99275). Notwithstanding anything to the contrary in this section, Section 99285 shall continue to apply in the County of Los Angeles.
SEC. 10.Section 99313.6 of the Public Utilities Code is amended to read:99313.6.(a)Each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board shall create a state transit assistance fund and deposit therein the funds allocated to it pursuant to Sections 99313 and 99314. The funds attributable to Section 99313 shall be allocated for public transportation purposes, including for community transit services pursuant to Section 99275. Pursuant to subdivision (d) of Section 99312.2, the funds attributable to Section 99314 shall be allocated only to STA-eligible operators for public transportation purposes.
(b)From funds allocated to it pursuant to Sections 99313 and 99314, the Los Angeles County Metropolitan Transportation Authority may allocate funds to itself for the planning, design, and construction of an exclusive public mass transit guideway system.
(c)An allocation of funds from a state transit assistance fund for a transit capital project may be used for the payment of the principal of, and interest on, equipment trust certificates, bonded or other indebtedness, or in accomplishment of a defeasance of any outstanding revenue bond indenture issued for that project.
(d)From funds allocated to it pursuant to Section 99313, the Metropolitan Transportation Commission may allocate funds to itself for projects to achieve regional transit coordination objectives.
(e)From funds allocated to the Metropolitan Transportation Commission pursuant to Section 99313, upon a request of the Solano Transportation Authority, the commission may allocate an amount of funds to the authority for public transportation purposes, including countywide transit planning and coordination relative to Solano County.
SEC. 11.Section 99313.7 of the Public Utilities Code is amended to read:99313.7.A public agency authorized to file claims with the transportation planning agency and expend funds pursuant to Section 99234.5, 99234.7, or 99234.9 may also receive allocations and expend STA program funds made available pursuant to Section 99313.
SEC. 12.Section 99314 of the Public Utilities Code is amended to read:99314.(a)From funds made available pursuant to subdivision (b) of Section 99312 and subdivision (a) of Section 99312.1, an amount shall be allocated by the Controller to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board. The allocation shall include an amount corresponding to the STA-eligible operators within the jurisdiction of each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board. The amount allocated to a transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board shall be based on the ratio that the total qualifying revenue of all STA-eligible operators in the area under jurisdiction of the agency, commission, or board bears to the total qualifying revenue of all STA-eligible operators in the state.
(b)For purposes of this section and Section 99314.3, qualifying revenue means fare revenues, including fares generated for community transit services under contract with the STA-eligible operator, and any other funds used by the operator in the delivery of transit service, except federal and state funds. The revenue amount for each STA-eligible operator shall be determined from the annual report submitted to the Controller pursuant to Section 99243. Revenue used for capital expenditures or depreciation shall not constitute qualifying revenue. The revenue share for the Altamont Corridor Express and the Southern California Regional Rail Authority shall be determined by the qualifying revenues reported to the Controller in accordance with subdivision (b) of Section 99314.1 and subdivision (b) of Section 99314.2, respectively.
(c)An STA-eligible operator qualifies to receive STA funding from Section 99314 beginning on the date when it commences revenue passenger service. A new STA-eligible operator shall notify the Controller in writing that it has commenced revenue passenger service within 10 business days of beginning the service. A new STA-eligible operator that commences revenue passenger service before August 1 of a fiscal year shall be eligible to receive funds in that fiscal year based on the qualifying revenue reported to the Controller two years prior to that fiscal year, consistent with subdivision (e). If a new STA-eligible operator commences revenue passenger service on or after August 1 of a fiscal year, the Controller shall calculate the operators pro rata share of Section 99314 STA funds for that fiscal year based on the date the operator commenced revenue passenger service. That amount shall be added as an adjustment to an operators STA funding for the subsequent fiscal year, and the adjustment shall be drawn as an off-the-top reduction from the first quarter of Section 99314 STA funds.
(d)The Controller shall determine allocation amounts pursuant to this section based on the qualifying revenue reported two years prior to the fiscal year in which the funds are allocated.
(e)Qualifying revenue for a given fiscal year shall not exceed an STA-eligible operators annual operating expenses, as reported to the Controller. Operating expenses include, but are not limited to, the direct cost of operating transit service, payments by the STA-eligible operator for community transit service provided by entities that are not eligible to receive funds directly pursuant to subdivision (a) of Section 99314.3, administrative costs, and routine maintenance. Operating expenses do not include transfers from an operating budget to a capital account.
(f)For the purpose of allocating funds pursuant to this section, Section 99314.1, and 99314.2, STA-eligible operator includes the Altamont Corridor Express and the Southern California Regional Rail Authority. The revenue share for these operators shall be based on the qualifying revenue used to operate the systems consistent with subdivision (b), including fares and the amounts contributed by the parties to the cooperative service agreement in the case of the Altamont Corridor Express, and by the member agencies in the case of the Southern California Regional Rail Authority.
(g)Funds allocated by the Controller to a transportation planning agency or county transportation commission, or the San Diego Metropolitan Transit Development Board pursuant to this section shall be allocated by the agency, commission, or board to STA-eligible operators pursuant to Section 99314.3.
SEC. 13.Section 99314.1 of the Public Utilities Code is amended to read:99314.1.(a)For purposes of this section, the following terms have the following meanings:
(1)The Altamont Corridor Express or the authority is the joint powers agency duly formed pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, by and between the Alameda Congestion Management Agency, the Santa Clara Valley Transportation Authority, and the San Joaquin Regional Rail Commission. Any reference to the Altamont Corridor Express or the authority shall be construed to include a reference to any entity that is a successor to the authority.
(2)Qualifying revenue means qualifying revenue, as defined in subdivision (b) of Section 99314, that is derived from operating as a member agency of the authority.
(b)The authority shall report to the Controller, for each fiscal year, the ratio that the qualifying revenue of each member agency of the authority bears to the total qualifying revenue of the authority during that fiscal year. The authority shall provide the ratios within the timeframe specified by subdivision (a) of Section 99243.
(c)(1)From funds made available pursuant to subdivision (b) of Section 99312 and subdivision (a) of Section 99312.1, the Controller shall allocate to the transportation planning agencies in the jurisdictions of the parties to the cooperative service agreement an amount for each member agency of the authority that is based on the ratio provided under subdivision (b), for allocation pursuant to subdivision (c) of Section 99314.3.
(2)The allocation set forth in paragraph (1) shall be in addition to any other allocation provided under this article.
(3)Allocations made under this section shall be used only for STA program purposes authorized under this chapter.
SEC. 14.Section 99314.2 of the Public Utilities Code is amended to read:99314.2.(a)For purposes of this section, the following terms have the following meanings:
(1)The Southern California Regional Rail Authority or the authority is that joint powers authority described in Section 14072 of the Government Code and includes any additional agencies that may join the authority under Section 14072.2 of that code.
(2)Qualifying revenue means qualifying revenue, as defined in subdivision (b) of Section 99314, that is derived from operating as a member agency of the authority.
(b)The Southern California Regional Rail Authority shall report to the Controller, for each fiscal year, the ratio that the qualifying revenue of each member agency of the authority bears to the total qualifying revenue of the authority during that fiscal year. The authority shall provide the ratios within the timeframe specified by subdivision (a) of Section 99243.
(c)(1)From funds made available pursuant to subdivision (b) of Section 99312 and subdivision (a) of Section 99312.1, the Controller shall allocate to the county transportation commissions in the jurisdictions of the member agencys area an amount for each member agency of the authority that is based on the ratio provided under subdivision (b), for allocation pursuant to subdivision (c) of Section 99314.3.
(2)The allocation set forth in paragraph (1) shall be in addition to any other allocation provided under this article.
(3)Allocations made under this section shall be used only for STA program purposes authorized under this chapter.
SEC. 15.Section 99314.3 of the Public Utilities Code is amended to read:99314.3.(a)The amount allocated to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board pursuant to Section 99314 shall be allocated by those entities to the STA-eligible operators in the area of their respective jurisdictions.
(b)The amount allocated by a transportation planning agency and county transportation commission, and the board to each STA-eligible operator pursuant to Section 99314 shall be based on the ratio that the operators qualifying revenue bears to the total qualifying revenue of all STA-eligible operators within the area of jurisdiction of the transportation planning agency, county transportation commission, or board. The Controller shall publish the share of funds corresponding to each STA-eligible operator as well as the total amount to be allocated to each transportation planning agency, county transportation commission, or board.
(c)The amount allocated by the Controller to a transportation planning agency corresponding to the parties to the cooperative service agreement of the Altamont Corridor Express and the member agencies of the Southern California Regional Rail Authority, pursuant to Section 99314, shall be allocated by the transportation planning agency in the jurisdiction of the parties to the cooperative services agreement or the member agencys area for STA program purposes authorized in this chapter. The allocation shall be based on the ratio that the qualifying revenues bear to the qualifying revenue of all STA-eligible operators.
(d)For purposes of subdivision (a), the City and County of San Francisco with respect to its municipal railway system, the Alameda-Contra Costa Transit District, and the San Francisco Bay Area Rapid Transit District shall be considered one operator. The amount allocated to them as one operator shall be apportioned to each of them based on the ratio of its revenue to the sum of their revenues, excluding from the determination of that ratio the amount allocated to each of them pursuant to Section 29142.2.
SEC. 16.Section 99314.4 of the Public Utilities Code is amended to read:99314.4.(a)An operator in an urbanized area having a population of less than 200,000 persons may elect to participate in the funding exchange program authorized by this subdivision. An operator electing to participate in the funding exchange program shall give notice to the director and shall indicate the amount of funds which it wants allocated for the funding exchange program.
From funds that would otherwise be allocated to an operator under the State Transit Assistance Program, an amount so designated by the participating operator shall be allocated to the department for transfer pursuant to an agreement between the department and the State of Arizona whereby California can receive federal mass transportation funds originally apportioned to the State of Arizona.
The department shall allocate the federal mass transportation funds so received to each participating operator in the same proportion as the operator contributed to the funding exchange program. Funds so received shall be used only for the purposes of the State Transit Assistance Program and are subject to all statutes and rules and regulations applicable to funds allocated pursuant to Sections 99313 and 99314.
The Legislature finds and declares that the exchange of state funds for federal mass transportation funds authorized by this section will result in a net increase in the total amount of funds to be available to the participating operators.
(b)A transportation planning agency or county transportation commission, or the San Diego Metropolitan Transit Development Board may authorize an STA-eligible operator under its jurisdiction to exchange funds allocated to it pursuant to Section 99314 for funds made available pursuant to Section 99231. Any funds allocated pursuant to Section 99314 that are exchanged pursuant to this section shall only be available to other STA-eligible operators and shall be used for STA program purposes authorized by this chapter and are subject to all statutes and rules and regulations applicable to funds allocated pursuant to Section 99314. Exchanges pursuant to this section shall be on a dollar-for-dollar basis.
SEC. 17.Section 99314.5 of the Public Utilities Code is amended to read:99314.5.(a)It is the intent of the Legislature that, in allocating the funds available pursuant to Section 99313, the transportation planning agencies and county transportation commissions, and the San Diego Metropolitan Transit Development Board give priority consideration to offsetting reductions in federal operating assistance and the unanticipated increase in the cost of fuel, to enhancing existing public transportation services, and to meeting high-priority regional, countywide, or areawide public transportation needs.
(b)Nothing in this section shall be construed to prohibit, or limit the ability of, a public transit operator to do the following:
(1)Contract with common carriers of persons operating under a franchise or license.
(2)Employ part-time drivers.
SEC. 18.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 or 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.
SEC. 19.Section 99314.8 of the Public Utilities Code is amended to read:99314.8.(a)Notwithstanding any other law, for the third and fourth quarters of the 201516 fiscal year, and for all four quarters of the 201617 fiscal year, the Controller shall calculate and publish the allocation of all funds made pursuant to Section 99314 to each transportation planning agency and county transportation commission, the San Diego Metropolitan Transit Development Board, the member agencies of the Altamont Commuter Express Authority, and the member agencies of the Southern California Regional Rail Authority based on the same list of operators and the same individual operator ratios published by the Controller in its original Fourth Quarter State Transit Assistance Allocation transmittal memo for the 201415 fiscal year, unless the Controller has subsequently published revisions or adjustments to its original Fourth Quarter State Transit Assistance Allocation transmittal memo for the 201415 fiscal year, in which case the revised or adjusted list of operators and individual operator ratios shall be used.
(b)Each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board may apply the individual operator ratios calculated for the third quarter of the 201516 fiscal year pursuant to this section to any undistributed funds remaining from the first and second quarters of the 201516 fiscal year.
(c)Upon allocation of funds pursuant to this section to each transportation planning agency and county transportation commission, the San Diego Metropolitan Transit Development Board, the member agencies of the Altamont Commuter Express Authority, and the member agencies of the Southern California Rail Authority, the Controller shall publish the amount of funding applicable to each operator.
SEC. 20.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to implement necessary reforms to the State Transit Assistance Program as quickly as possible, it is necessary for this act to take effect immediately.
(a)The Controller, in cooperation with the department and the operators, shall design and adopt a uniform system of accounts and records, from which the operators shall prepare and submit annual reports of their operation to transportation planning agencies, county transportation commissions, or the San Diego Metropolitan Transit Development Board having jurisdiction over them and to the Controller within seven months after the end of the fiscal year. The report shall contain underlying data from audited financial statements prepared in accordance with generally accepted accounting principles, if this data is available. The report shall specify (1) the amount of revenue generated from each source and its application for the prior fiscal year and (2) the data necessary to determine which section, with respect to Sections 99268.1, 99268.2, 99268.3, 99268.4, 99268.5, and 99268.9, the operator is required to be in compliance in order to be eligible for funds under this article.
(b)(1)For the purposes of the State Transit Assistance Program, which is governed by Sections 99312 to 99314.9, inclusive, the Controller shall provide a mechanism for each transportation planning agency, county transportation commission, and the San Diego Metropolitan Transit Development Board to report to the Controller those operators within its jurisdiction that are STA-eligible operators, as defined in paragraph (2) of subdivision (b) of Section 99312.2.
(2)The mechanism shall require each transportation planning agency, county transportation commission, and the San Diego Metropolitan Transit Development Board to report to the Controller those STA-eligible operators within its jurisdiction that are both:
(A)Eligible to claim local transportation funds under either Article 4 (commencing with Section 99260) or Article 8 (commencing with Section 99400), or under both articles.
(B)A public transportation operator, as defined in paragraph (1) of subdivision (b) of Section 99312.2.
(3)The Controller shall rely upon that verification to determine whether or not an operator is an STA-eligible operator pursuant to paragraph (2) of subdivision (b) of Section 99312.2. The transportation planning agency, county transportation commission, and the San Diego Metropolitan Transit Development Board shall provide this information to the Controller within 60 days of the enactment of the act amending this section in the 201718 Regular Session, and by June 15 of each subsequent year.
(c)As a supplement to the annual report prepared pursuant to subdivision (a), each operator shall include an estimate of the amount of revenues to be generated from each source and its proposed application for the next fiscal year, and a report on the extent to which it has contracted with the Prison Industry Authority, including the nature and dollar amounts of all contracts entered into during the reporting period and proposed for the next reporting period.
(d)The Controller shall instruct the county auditor to withhold payments from the fund to an operator that has not submitted its annual report to the Controller within the time specified by subdivision (a).
(e)In establishing the uniform system of accounts and records, the Controller shall include the data required by the United States Department of Transportation and the department.
(f)Notwithstanding any other law or any regulation, including any California Code of Regulations provision, the City of El Segundo, the City of Huntington Beach, the City of Inglewood, the City of Long Beach, or the City of South Lake Tahoe may select, for purposes of this chapter, on a one-time basis, a fiscal year that does not end on June 30. After the city has sent a written notice to the Secretary of Transportation and the Controller that the city has selected a fiscal year other than one ending on June 30, the fiscal year selected by the city shall be its fiscal year for all reports required by the state under this chapter.
SEC. 2.Section 99312 of the Public Utilities Code is amended to read:99312.Except as provided in Sections 99311 and 99311.5, and Sections 6051.8 and 6201.8 of the Revenue and Taxation Code, the funds in the account shall be made available for the following purposes:
(a)Fifty percent for purposes of Section 99315, subject to appropriation by the Legislature.
(b)To the Controller, 25 percent for allocation to transportation planning agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board pursuant to Section 99314, for the purposes of the State Transit Assistance Program. These funds are hereby continuously appropriated for these purposes.
(c)To the Controller, 25 percent for allocation to transportation planning agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board pursuant to Section 99313, for the purposes of the State Transit Assistance Program. These funds are hereby continuously appropriated for these purposes.
SEC. 3.Section 99312.1 of the Public Utilities Code is amended to read:99312.1.(a)Revenues transferred to the Public Transportation Account pursuant to Sections 6051.8 and 6201.8 of the Revenue and Taxation Code for the State Transit Assistance Program are hereby continuously appropriated to the Controller for allocation as follows:
(1)Fifty percent for allocation to transportation planning agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board pursuant to Section 99314, for purposes of the State Transit Assistance Program.
(2)Fifty percent for allocation to transportation agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board pursuant to Section 99313, for purposes of the State Transit Assistance Program.
(b)For purposes of this chapter, the revenues allocated pursuant to this section shall be subject to the same requirements as revenues allocated pursuant to subdivisions (b) and (c), as applicable, of Section 99312.
(c)The revenues transferred to the Public Transportation Account for the State Transit Assistance Program that are attributable to subdivision (a) of Section 11053 of the Revenue and Taxation Code are hereby continuously appropriated to the Controller, and, upon allocation pursuant to Sections 99313 and 99314, shall only be expended on the following:
(1)Transit capital projects or services to maintain or repair a transit operators existing transit vehicle fleet or existing transit facilities, including rehabilitation or modernization of existing vehicles or facilities.
(2)The design, acquisition, and construction of new vehicles or facilities that improve existing transit services.
(3)Transit services that complement local efforts for repair and improvement of local transportation infrastructure.
(d)(1)Prior to receiving an apportionment of funds pursuant to subdivision (c) from the Controller in a fiscal year, a recipient transit agency shall submit to the Department of Transportation a list of projects proposed to be funded with these funds. The list of projects proposed to be funded with these funds shall include a description and location of each proposed project, a proposed schedule for the projects completion, and the estimated useful life of the improvement. The project list shall not limit the flexibility of a recipient transit agency to fund projects in accordance with local needs and priorities so long as the projects are consistent with subdivision (c).
(2)The department shall report to the Controller the recipient transit agencies that have submitted a list of projects as described in this subdivision and that are therefore eligible to receive an apportionment of funds for the applicable fiscal year. The Controller, upon receipt of the report, shall apportion funds quarterly pursuant to Sections 99313 and 99314.
(e)For each fiscal year, each recipient transit agency receiving an apportionment of funds pursuant to subdivision (c) shall, upon expending those funds, submit documentation to the department that includes a description and location of each completed project, the amount of funds expended on the project, the completion date, and the estimated useful life of the improvement.
(f)The audit of transit operator finances required pursuant to Section 99245 shall verify that the revenues identified in subdivision (c) have been expended in conformance with these specific requirements and all other generally applicable requirements.
SEC. 4.Section 99312.2 of the Public Utilities Code is repealed.SEC. 5.Section 99312.2 is added to the Public Utilities Code, to read:99312.2.(a)The State Transit Assistance Program, also known as the STA program, which provides for allocations of funds made available from the Public Transportation Account pursuant to Sections 99313 and 99314, and which is governed by Sections 99312 to 99314.9, inclusive, is hereby continued in existence. The purpose of the STA program is to provide a source of state funding to eligible public transportation operators and other transportation agencies in order to support their local and regional transit operating and capital needs.
(b)For purposes of the STA program, the following terms shall have the following meanings:
(1)Public transportation operator has the same meaning as operator, as defined in Section 99210, as long as that operator operates a public transportation system, as defined in Section 99211.
(2)STA-eligible operator means a public transportation operator eligible to claim local transportation funds under either Article 4 (commencing with Section 99260) or Article 8 (commencing with Section 99400), or under both articles.
(c)The only entities eligible to receive direct allocations from the Controller under Sections 99313 and 99314 shall be transportation planning agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board. The Controller shall distribute funds attributable to transportation planning agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board to the applicable county treasurers office. Upon the request of a transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, the Controller shall instead distribute the applicable funds directly to the requesting agency.
(d)Only STA-eligible operators shall be eligible to receive STA program funds allocated by transportation planning agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board pursuant to Section 99314. An STA-eligible operator, at its discretion, may further suballocate funds it receives pursuant to Section 99314 to an entity operating local community transit services that is eligible to claim local transportation funds pursuant to Article 4.5 (commencing with Section 99275) but that is otherwise ineligible to directly receive funds allocated pursuant to Section 99314.
(e)An entity operating community transit services pursuant to Article 4.5 (commencing with Section 99275) may be allocated funds pursuant to Section 99313 as a subrecipient at the discretion of the transportation planning agency, the county transportation commission, or the San Diego Metropolitan Transit Development Board.
(f)The Los Angeles County Metropolitan Transportation Authority, which is both a county transportation commission for purposes of Sections 99313 and 99314, and an STA-eligible operator for purposes of Section 99314, may incorporate into its report pursuant to Section 99243 any operating costs for local community transit service under contract with the authority, including service provided by a consolidated transportation service agency pursuant to Section 99204.5 or by operators eligible to expend local transportation funds only under Article 4.5 (commencing with Section 99275).
SEC. 6.Section 99312.7 of the Public Utilities Code is amended to read:99312.7.(a)Not later than each January 31st, for purposes of the State Transit Assistance Program, the Controller shall compute, publish, and send to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board an estimate of the amount of funds from subdivisions (b) and (c) of Section 99312 and Section 99312.1 to be allocated to it during the next fiscal year pursuant to Sections 99313 and 99314.
(b)Not later than each August 1st, on the basis of the amounts continuously appropriated pursuant to subdivisions (b) and (c) of Section 99312 and Section 99312.1 for the applicable fiscal year for purposes of Sections 99313 and 99314, the Controller shall compute, publish, and send to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board an estimate of the amount of funds to be allocated to it during the fiscal year. Notwithstanding any other law, for the 201718 fiscal year, the Controller shall compute, publish, and send the estimate within 90 days of the enactment of the act amending this section in the 201718 Regular Session.
(c)The Controller, along with the actions taken pursuant to subdivisions (a) and (b), with respect to the allocations under Section 99314, shall also compute, publish, and send to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board the share of funds corresponding to each STA-eligible operator within the jurisdiction of each agency, commission, and board.
SEC. 7.Section 99313 of the Public Utilities Code is amended to read:99313.(a)From the funds made available pursuant to subdivision (c) of Section 99312 and subdivision (b) of Section 99312.1, an amount shall be allocated by the Controller to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board based on the ratio of the population of the area under its jurisdiction to the total population of the state. The Controller shall base these allocations on a report prepared by the Department of Transportation. On or before June 30 of each year, the Department of Transportation shall prepare and submit to the Controller a report detailing the population of each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board. For the purpose of this report, the Department of Transportation shall use the most recent population estimates of the Department of Finance and the information provided pursuant to subdivision (b).
(b)To assist the Department of Transportation in determining the populations of the San Diego Metropolitan Transit Development Board, the San Diego Association of Governments, the El Dorado County Transportation Commission, the Placer County Transportation Planning Agency, and the Tahoe Regional Planning Agency for the purpose of subdivision (c) of Section 99312 and subdivision (b) of Section 99312.1, each of those entities, on or before June 1st of each year, shall provide the department with the population of its respective jurisdiction using the most recent population estimates of the Department of Finance.
SEC. 8.Section 99313.1 of the Public Utilities Code is amended to read:99313.1.(a)A transportation planning agency, a county transportation commission, or the San Diego Metropolitan Transit Development Board may transfer any funds that it receives pursuant to Section 99313 to another transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, as applicable. Any funds transferred pursuant to this section shall be used only for the purposes authorized by this chapter and are subject to all statutes and rules and regulations applicable to funds allocated pursuant to Section 99313.
(b)If one transfer has been completed between a transportation planning agency, a county transportation commission, or the San Diego Metropolitan Transit Development Board, pursuant to this section, no other transfer may be made between the same parties.
(c)In the event of a transfer of funds to the Los Angeles County Metropolitan Transportation Authority pursuant to this section, the amount of that transfer, if any, which exceeds the amount of funds transferred at that time by the Los Angeles County Metropolitan Transportation Authority to the transferring transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, may not be used for the purpose of funding an exclusive public mass transit guideway system project. The Los Angeles County Metropolitan Transportation Authority shall report to the Senate Committee on Transportation and Housing and the Assembly Committee on Transportation on the expenditure of any funds received by it pursuant to a transfer made pursuant to this section.
SEC. 9.Section 99313.3 of the Public Utilities Code is amended to read:99313.3.The amount received by each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board, pursuant to Sections 99313 and 99314, shall be allocated for public transportation purposes. Pursuant to subdivision (d) of Section 99312.2, funds received pursuant to Section 99314 may be allocated only to STA-eligible operators. Funds received pursuant to Section 99314 may be expended by STA-eligible operators for community transit services pursuant to Section 99275, including payments or allocations to entities eligible to claim local transportation funds under Article 4.5 (commencing with Section 99275). Notwithstanding anything to the contrary in this section, Section 99285 shall continue to apply in the County of Los Angeles.
SEC. 10.Section 99313.6 of the Public Utilities Code is amended to read:99313.6.(a)Each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board shall create a state transit assistance fund and deposit therein the funds allocated to it pursuant to Sections 99313 and 99314. The funds attributable to Section 99313 shall be allocated for public transportation purposes, including for community transit services pursuant to Section 99275. Pursuant to subdivision (d) of Section 99312.2, the funds attributable to Section 99314 shall be allocated only to STA-eligible operators for public transportation purposes.
(b)From funds allocated to it pursuant to Sections 99313 and 99314, the Los Angeles County Metropolitan Transportation Authority may allocate funds to itself for the planning, design, and construction of an exclusive public mass transit guideway system.
(c)An allocation of funds from a state transit assistance fund for a transit capital project may be used for the payment of the principal of, and interest on, equipment trust certificates, bonded or other indebtedness, or in accomplishment of a defeasance of any outstanding revenue bond indenture issued for that project.
(d)From funds allocated to it pursuant to Section 99313, the Metropolitan Transportation Commission may allocate funds to itself for projects to achieve regional transit coordination objectives.
(e)From funds allocated to the Metropolitan Transportation Commission pursuant to Section 99313, upon a request of the Solano Transportation Authority, the commission may allocate an amount of funds to the authority for public transportation purposes, including countywide transit planning and coordination relative to Solano County.
SEC. 11.Section 99313.7 of the Public Utilities Code is amended to read:99313.7.A public agency authorized to file claims with the transportation planning agency and expend funds pursuant to Section 99234.5, 99234.7, or 99234.9 may also receive allocations and expend STA program funds made available pursuant to Section 99313.
SEC. 12.Section 99314 of the Public Utilities Code is amended to read:99314.(a)From funds made available pursuant to subdivision (b) of Section 99312 and subdivision (a) of Section 99312.1, an amount shall be allocated by the Controller to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board. The allocation shall include an amount corresponding to the STA-eligible operators within the jurisdiction of each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board. The amount allocated to a transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board shall be based on the ratio that the total qualifying revenue of all STA-eligible operators in the area under jurisdiction of the agency, commission, or board bears to the total qualifying revenue of all STA-eligible operators in the state.
(b)For purposes of this section and Section 99314.3, qualifying revenue means fare revenues, including fares generated for community transit services under contract with the STA-eligible operator, and any other funds used by the operator in the delivery of transit service, except federal and state funds. The revenue amount for each STA-eligible operator shall be determined from the annual report submitted to the Controller pursuant to Section 99243. Revenue used for capital expenditures or depreciation shall not constitute qualifying revenue. The revenue share for the Altamont Corridor Express and the Southern California Regional Rail Authority shall be determined by the qualifying revenues reported to the Controller in accordance with subdivision (b) of Section 99314.1 and subdivision (b) of Section 99314.2, respectively.
(c)An STA-eligible operator qualifies to receive STA funding from Section 99314 beginning on the date when it commences revenue passenger service. A new STA-eligible operator shall notify the Controller in writing that it has commenced revenue passenger service within 10 business days of beginning the service. A new STA-eligible operator that commences revenue passenger service before August 1 of a fiscal year shall be eligible to receive funds in that fiscal year based on the qualifying revenue reported to the Controller two years prior to that fiscal year, consistent with subdivision (e). If a new STA-eligible operator commences revenue passenger service on or after August 1 of a fiscal year, the Controller shall calculate the operators pro rata share of Section 99314 STA funds for that fiscal year based on the date the operator commenced revenue passenger service. That amount shall be added as an adjustment to an operators STA funding for the subsequent fiscal year, and the adjustment shall be drawn as an off-the-top reduction from the first quarter of Section 99314 STA funds.
(d)The Controller shall determine allocation amounts pursuant to this section based on the qualifying revenue reported two years prior to the fiscal year in which the funds are allocated.
(e)Qualifying revenue for a given fiscal year shall not exceed an STA-eligible operators annual operating expenses, as reported to the Controller. Operating expenses include, but are not limited to, the direct cost of operating transit service, payments by the STA-eligible operator for community transit service provided by entities that are not eligible to receive funds directly pursuant to subdivision (a) of Section 99314.3, administrative costs, and routine maintenance. Operating expenses do not include transfers from an operating budget to a capital account.
(f)For the purpose of allocating funds pursuant to this section, Section 99314.1, and 99314.2, STA-eligible operator includes the Altamont Corridor Express and the Southern California Regional Rail Authority. The revenue share for these operators shall be based on the qualifying revenue used to operate the systems consistent with subdivision (b), including fares and the amounts contributed by the parties to the cooperative service agreement in the case of the Altamont Corridor Express, and by the member agencies in the case of the Southern California Regional Rail Authority.
(g)Funds allocated by the Controller to a transportation planning agency or county transportation commission, or the San Diego Metropolitan Transit Development Board pursuant to this section shall be allocated by the agency, commission, or board to STA-eligible operators pursuant to Section 99314.3.
SEC. 13.Section 99314.1 of the Public Utilities Code is amended to read:99314.1.(a)For purposes of this section, the following terms have the following meanings:
(1)The Altamont Corridor Express or the authority is the joint powers agency duly formed pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, by and between the Alameda Congestion Management Agency, the Santa Clara Valley Transportation Authority, and the San Joaquin Regional Rail Commission. Any reference to the Altamont Corridor Express or the authority shall be construed to include a reference to any entity that is a successor to the authority.
(2)Qualifying revenue means qualifying revenue, as defined in subdivision (b) of Section 99314, that is derived from operating as a member agency of the authority.
(b)The authority shall report to the Controller, for each fiscal year, the ratio that the qualifying revenue of each member agency of the authority bears to the total qualifying revenue of the authority during that fiscal year. The authority shall provide the ratios within the timeframe specified by subdivision (a) of Section 99243.
(c)(1)From funds made available pursuant to subdivision (b) of Section 99312 and subdivision (a) of Section 99312.1, the Controller shall allocate to the transportation planning agencies in the jurisdictions of the parties to the cooperative service agreement an amount for each member agency of the authority that is based on the ratio provided under subdivision (b), for allocation pursuant to subdivision (c) of Section 99314.3.
(2)The allocation set forth in paragraph (1) shall be in addition to any other allocation provided under this article.
(3)Allocations made under this section shall be used only for STA program purposes authorized under this chapter.
SEC. 14.Section 99314.2 of the Public Utilities Code is amended to read:99314.2.(a)For purposes of this section, the following terms have the following meanings:
(1)The Southern California Regional Rail Authority or the authority is that joint powers authority described in Section 14072 of the Government Code and includes any additional agencies that may join the authority under Section 14072.2 of that code.
(2)Qualifying revenue means qualifying revenue, as defined in subdivision (b) of Section 99314, that is derived from operating as a member agency of the authority.
(b)The Southern California Regional Rail Authority shall report to the Controller, for each fiscal year, the ratio that the qualifying revenue of each member agency of the authority bears to the total qualifying revenue of the authority during that fiscal year. The authority shall provide the ratios within the timeframe specified by subdivision (a) of Section 99243.
(c)(1)From funds made available pursuant to subdivision (b) of Section 99312 and subdivision (a) of Section 99312.1, the Controller shall allocate to the county transportation commissions in the jurisdictions of the member agencys area an amount for each member agency of the authority that is based on the ratio provided under subdivision (b), for allocation pursuant to subdivision (c) of Section 99314.3.
(2)The allocation set forth in paragraph (1) shall be in addition to any other allocation provided under this article.
(3)Allocations made under this section shall be used only for STA program purposes authorized under this chapter.
SEC. 15.Section 99314.3 of the Public Utilities Code is amended to read:99314.3.(a)The amount allocated to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board pursuant to Section 99314 shall be allocated by those entities to the STA-eligible operators in the area of their respective jurisdictions.
(b)The amount allocated by a transportation planning agency and county transportation commission, and the board to each STA-eligible operator pursuant to Section 99314 shall be based on the ratio that the operators qualifying revenue bears to the total qualifying revenue of all STA-eligible operators within the area of jurisdiction of the transportation planning agency, county transportation commission, or board. The Controller shall publish the share of funds corresponding to each STA-eligible operator as well as the total amount to be allocated to each transportation planning agency, county transportation commission, or board.
(c)The amount allocated by the Controller to a transportation planning agency corresponding to the parties to the cooperative service agreement of the Altamont Corridor Express and the member agencies of the Southern California Regional Rail Authority, pursuant to Section 99314, shall be allocated by the transportation planning agency in the jurisdiction of the parties to the cooperative services agreement or the member agencys area for STA program purposes authorized in this chapter. The allocation shall be based on the ratio that the qualifying revenues bear to the qualifying revenue of all STA-eligible operators.
(d)For purposes of subdivision (a), the City and County of San Francisco with respect to its municipal railway system, the Alameda-Contra Costa Transit District, and the San Francisco Bay Area Rapid Transit District shall be considered one operator. The amount allocated to them as one operator shall be apportioned to each of them based on the ratio of its revenue to the sum of their revenues, excluding from the determination of that ratio the amount allocated to each of them pursuant to Section 29142.2.
SEC. 16.Section 99314.4 of the Public Utilities Code is amended to read:99314.4.(a)An operator in an urbanized area having a population of less than 200,000 persons may elect to participate in the funding exchange program authorized by this subdivision. An operator electing to participate in the funding exchange program shall give notice to the director and shall indicate the amount of funds which it wants allocated for the funding exchange program.
From funds that would otherwise be allocated to an operator under the State Transit Assistance Program, an amount so designated by the participating operator shall be allocated to the department for transfer pursuant to an agreement between the department and the State of Arizona whereby California can receive federal mass transportation funds originally apportioned to the State of Arizona.
The department shall allocate the federal mass transportation funds so received to each participating operator in the same proportion as the operator contributed to the funding exchange program. Funds so received shall be used only for the purposes of the State Transit Assistance Program and are subject to all statutes and rules and regulations applicable to funds allocated pursuant to Sections 99313 and 99314.
The Legislature finds and declares that the exchange of state funds for federal mass transportation funds authorized by this section will result in a net increase in the total amount of funds to be available to the participating operators.
(b)A transportation planning agency or county transportation commission, or the San Diego Metropolitan Transit Development Board may authorize an STA-eligible operator under its jurisdiction to exchange funds allocated to it pursuant to Section 99314 for funds made available pursuant to Section 99231. Any funds allocated pursuant to Section 99314 that are exchanged pursuant to this section shall only be available to other STA-eligible operators and shall be used for STA program purposes authorized by this chapter and are subject to all statutes and rules and regulations applicable to funds allocated pursuant to Section 99314. Exchanges pursuant to this section shall be on a dollar-for-dollar basis.
SEC. 17.Section 99314.5 of the Public Utilities Code is amended to read:99314.5.(a)It is the intent of the Legislature that, in allocating the funds available pursuant to Section 99313, the transportation planning agencies and county transportation commissions, and the San Diego Metropolitan Transit Development Board give priority consideration to offsetting reductions in federal operating assistance and the unanticipated increase in the cost of fuel, to enhancing existing public transportation services, and to meeting high-priority regional, countywide, or areawide public transportation needs.
(b)Nothing in this section shall be construed to prohibit, or limit the ability of, a public transit operator to do the following:
(1)Contract with common carriers of persons operating under a franchise or license.
(2)Employ part-time drivers.
SEC. 18.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 or 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.
SEC. 19.Section 99314.8 of the Public Utilities Code is amended to read:99314.8.(a)Notwithstanding any other law, for the third and fourth quarters of the 201516 fiscal year, and for all four quarters of the 201617 fiscal year, the Controller shall calculate and publish the allocation of all funds made pursuant to Section 99314 to each transportation planning agency and county transportation commission, the San Diego Metropolitan Transit Development Board, the member agencies of the Altamont Commuter Express Authority, and the member agencies of the Southern California Regional Rail Authority based on the same list of operators and the same individual operator ratios published by the Controller in its original Fourth Quarter State Transit Assistance Allocation transmittal memo for the 201415 fiscal year, unless the Controller has subsequently published revisions or adjustments to its original Fourth Quarter State Transit Assistance Allocation transmittal memo for the 201415 fiscal year, in which case the revised or adjusted list of operators and individual operator ratios shall be used.
(b)Each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board may apply the individual operator ratios calculated for the third quarter of the 201516 fiscal year pursuant to this section to any undistributed funds remaining from the first and second quarters of the 201516 fiscal year.
(c)Upon allocation of funds pursuant to this section to each transportation planning agency and county transportation commission, the San Diego Metropolitan Transit Development Board, the member agencies of the Altamont Commuter Express Authority, and the member agencies of the Southern California Rail Authority, the Controller shall publish the amount of funding applicable to each operator.
SEC. 20.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to implement necessary reforms to the State Transit Assistance Program as quickly as possible, it is necessary for this act to take effect immediately.
(a)The Controller, in cooperation with the department and the operators, shall design and adopt a uniform system of accounts and records, from which the operators shall prepare and submit annual reports of their operation to transportation planning agencies, county transportation commissions, or the San Diego Metropolitan Transit Development Board having jurisdiction over them and to the Controller within seven months after the end of the fiscal year. The report shall contain underlying data from audited financial statements prepared in accordance with generally accepted accounting principles, if this data is available. The report shall specify (1) the amount of revenue generated from each source and its application for the prior fiscal year and (2) the data necessary to determine which section, with respect to Sections 99268.1, 99268.2, 99268.3, 99268.4, 99268.5, and 99268.9, the operator is required to be in compliance in order to be eligible for funds under this article.
(b)(1)For the purposes of the State Transit Assistance Program, which is governed by Sections 99312 to 99314.9, inclusive, the Controller shall provide a mechanism for each transportation planning agency, county transportation commission, and the San Diego Metropolitan Transit Development Board to report to the Controller those operators within its jurisdiction that are eligible STA-eligible operators, as defined in paragraph (2) of subdivision (b) of Section 99312.2.
(2)The mechanism shall require each transportation planning agency, county transportation commission, and the San Diego Metropolitan Transit Development Board to report to the Controller those STA-eligible operators within its jurisdiction that are both:
(A)Eligible to claim local transportation funds under either Article 4 (commencing with Section 99260) or Article 8 (commencing with Section 99400), or under both articles. The
(B)A public transportation operator, as defined in paragraph (1) of subdivision (b) of Section 99312.2.
(3)The Controller shall rely upon that verification to determine whether or not an operator is an STA-eligible operator pursuant to paragraph (2) of subdivision (b) of Section 99312.2. The transportation planning agency, county transportation commission, and the San Diego Metropolitan Transit Development Board shall provide this information to the Controller within 60 days of the enactment of the act amending this section in the 201718 Regular Session, and by June 15 of each subsequent year.
(c)As a supplement to the annual report prepared pursuant to subdivision (a), each operator shall include an estimate of the amount of revenues to be generated from each source and its proposed application for the next fiscal year, and a report on the extent to which it has contracted with the Prison Industry Authority, including the nature and dollar amounts of all contracts entered into during the reporting period and proposed for the next reporting period.
(d)The Controller shall instruct the county auditor to withhold payments from the fund to an operator that has not submitted its annual report to the Controller within the time specified by subdivision (a).
(e)In establishing the uniform system of accounts and records, the Controller shall include the data required by the United States Department of Transportation and the department.
(f)Notwithstanding any other law or any regulation, including any California Code of Regulations provision, the City of El Segundo, the City of Huntington Beach, the City of Inglewood, the City of Long Beach, or the City of South Lake Tahoe may select, for purposes of this chapter, on a one-time basis, a fiscal year that does not end on June 30. After the city has sent a written notice to the Secretary of Transportation and the Controller that the city has selected a fiscal year other than one ending on June 30, the fiscal year selected by the city shall be its fiscal year for all reports required by the state under this chapter.
SEC. 2.Section 99312 of the Public Utilities Code is amended to read:99312.Except as provided in Sections 99311 and 99311.5, and Sections 6051.8 and 6201.8 of the Revenue and Taxation Code, the funds in the account shall be made available for the following purposes:
(a)Fifty percent for purposes of Section 99315, subject to appropriation by the Legislature.
(b)To the Controller, 25 percent for allocation to transportation planning agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board pursuant to Section 99314, for the purposes of the State Transit Assistance Program. These funds are hereby continuously appropriated for these purposes.
(c)To the Controller, 25 percent for allocation to transportation planning agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board pursuant to Section 99313, for the purposes of the State Transit Assistance Program. These funds are hereby continuously appropriated for these purposes.
SEC. 3.Section 99312.1 of the Public Utilities Code is amended to read:99312.1.(a)Revenues transferred to the Public Transportation Account pursuant to Sections 6051.8 and 6201.8 of the Revenue and Taxation Code for the State Transit Assistance Program are hereby continuously appropriated to the Controller for allocation as follows:
(1)Fifty percent for allocation to transportation planning agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board pursuant to Section 99314, for purposes of the State Transit Assistance Program.
(2)Fifty percent for allocation to transportation agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board pursuant to Section 99313, for purposes of the State Transit Assistance Program.
(b)For purposes of this chapter, the revenues allocated pursuant to this section shall be subject to the same requirements as revenues allocated pursuant to subdivisions (b) and (c), as applicable, of Section 99312.
(c)The revenues transferred to the Public Transportation Account for the State Transit Assistance Program that are attributable to subdivision (a) of Section 11053 of the Revenue and Taxation Code are hereby continuously appropriated to the Controller, and, upon allocation pursuant to Sections 99313 and 99314, shall only be expended on the following:
(1)Transit capital projects or services to maintain or repair a transit operators existing transit vehicle fleet or existing transit facilities, including rehabilitation or modernization of existing vehicles or facilities.
(2)The design, acquisition, and construction of new vehicles or facilities that improve existing transit services.
(3)Transit services that complement local efforts for repair and improvement of local transportation infrastructure.
(d)(1)Prior to receiving an apportionment of funds pursuant to subdivision (c) from the Controller in a fiscal year, a recipient transit agency shall submit to the Department of Transportation a list of projects proposed to be funded with these funds. The list of projects proposed to be funded with these funds shall include a description and location of each proposed project, a proposed schedule for the projects completion, and the estimated useful life of the improvement. The project list shall not limit the flexibility of a recipient transit agency to fund projects in accordance with local needs and priorities so long as the projects are consistent with subdivision (c).
(2)The department shall report to the Controller the recipient transit agencies that have submitted a list of projects as described in this subdivision and that are therefore eligible to receive an apportionment of funds for the applicable fiscal year. The Controller, upon receipt of the report, shall apportion funds quarterly pursuant to Sections 99313 and 99314.
(e)For each fiscal year, each recipient transit agency receiving an apportionment of funds pursuant to subdivision (c) shall, upon expending those funds, submit documentation to the department that includes a description and location of each completed project, the amount of funds expended on the project, the completion date, and the estimated useful life of the improvement.
(f)The audit of transit operator finances required pursuant to Section 99245 shall verify that the revenues identified in subdivision (c) have been expended in conformance with these specific requirements and all other generally applicable requirements.
SEC. 4.Section 99312.2 of the Public Utilities Code is repealed.SEC. 5.Section 99312.2 is added to the Public Utilities Code, to read:99312.2.(a)The State Transit Assistance Program, also known as the STA program, which provides for allocations of funds made available from the Public Transportation Account pursuant to Sections 99313 and 99314, and which is governed by Sections 99312 to 99314.8, 99314.9, inclusive, is hereby continued in existence. The purpose of the STA program is to provide a source of state funding to eligible public transportation operators and other transportation agencies in order to support their local and regional transit operating and capital needs.
(b)For purposes of the STA program, the following terms shall have the following meanings:
(1)Public transportation operator has the same meaning as operator, as defined in Section 99210, as long as that operator operates a public transportation system, as defined in Section 99211.
(2)STA-eligible operator means a public transportation operator eligible to claim local transportation funds under either Article 4 (commencing with Section 99260) or Article 8 (commencing with Section 99400), or under both articles.
(c)The only entities eligible to receive direct allocations from the Controller under Sections 99313 and 99314 shall be transportation planning agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board. The Controller shall distribute funds attributable to transportation planning agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board to the applicable county treasurers office. Upon the request of a transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, the Controller shall instead distribute the applicable funds directly to the requesting agency.
(d)Only STA-eligible operators shall be eligible to receive STA program funds allocated by transportation planning agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board pursuant to Section 99314. An STA-eligible operator, at its discretion, may further suballocate funds it receives pursuant to Section 99314 to an entity operating local community transit services that is eligible to claim local transportation funds pursuant to Article 4.5 (commencing with Section 99275) but that is otherwise ineligible to directly receive funds allocated pursuant to Section 99314.
(e)An entity operating community transit services pursuant to Article 4.5 (commencing with Section 99275) may be allocated funds pursuant to Section 99313 as a subrecipient at the discretion of the transportation planning agency, the county transportation commission, or the San Diego Metropolitan Transit Development Board.
(f)The Los Angeles County Metropolitan Transportation Authority, which is both a county transportation commission for purposes of Sections 99313 and 99314, and an STA-eligible operator for purposes of Section 99314, may incorporate into its report pursuant to Section 99243 any operating costs for local community transit service under contract with the authority, including service provided by a consolidated transportation service agency pursuant to Section 99204.5 or by operators eligible to expend local transportation funds only under Article 4.5 (commencing with Section 99275).
SEC. 6.Section 99312.7 of the Public Utilities Code is amended to read:99312.7.(a)Not later than each January 31st, for purposes of the State Transit Assistance Program, the Controller shall compute, publish, and send to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board an estimate of the amount of funds from subdivisions (b) and (c) of Section 99312 and Section 99312.1 to be allocated to it during the next fiscal year pursuant to Sections 99313 and 99314.
(b)Not later than each August 1st, on the basis of the amounts continuously appropriated pursuant to subdivisions (b) and (c) of Section 99312 and Section 99312.1 for the applicable fiscal year for purposes of Sections 99313 and 99314, the Controller shall compute, publish, and send to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board an estimate of the amount of funds to be allocated to it during the fiscal year. Notwithstanding any other law, for the 201718 fiscal year, the Controller shall compute, publish, and send the estimate with within 90 days of the enactment of the act amending this section in the 201718 Regular Session.
(c)The Controller, along with the actions taken pursuant to subdivisions (a) and (b), with respect to the allocations under Section 99314, shall also compute, publish, and send to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board the share of funds corresponding to each STA-eligible operator within the jurisdiction of each agency, commission, and board.
SEC. 7.Section 99313 of the Public Utilities Code is amended to read:99313.(a)From the funds made available pursuant to subdivision (c) of Section 99312 and subdivision (b) of Section 99312.1, an amount shall be allocated by the Controller to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board based on the ratio of the population of the area under its jurisdiction to the total population of the state. The Controller shall base these allocations on a report prepared by the Department of Transportation. On or before June 30 of each year, the Department of Transportation shall prepare and submit to the Controller a report detailing the population of each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board. For the purpose of this report, the Department of Transportation shall use the most recent population estimates of the Department of Finance and the information provided pursuant to subdivision (b).
(b)To assist the Department of Transportation in determining the populations of the San Diego Metropolitan Transit Development Board, the San Diego Association of Governments, the El Dorado County Transportation Commission, the Placer County Transportation Planning Agency, and the Tahoe Regional Planning Agency for the purpose of subdivision (c) of Section 99312 and subdivision (b) of Section 99312.1, each of those entities, on or before June 1st of each year, shall provide the department with the population of its respective jurisdiction using the most recent population estimates of the Department of Finance.
SEC. 8.Section 99313.1 of the Public Utilities Code is amended to read:99313.1.(a)A transportation planning agency, a county transportation commission, or the San Diego Metropolitan Transit Development Board may transfer any funds that it receives pursuant to Section 99313 to another transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, as applicable. Any funds transferred pursuant to this section shall be used only for the purposes authorized by this chapter and are subject to all statutes and rules and regulations applicable to funds allocated pursuant to Section 99313.
(b)If one transfer has been completed between a transportation planning agency, a county transportation commission, or the San Diego Metropolitan Transit Development Board, pursuant to this section, no other transfer may be made between the same parties.
(c)In the event of a transfer of funds to the Los Angeles County Metropolitan Transportation Authority pursuant to this section, the amount of that transfer, if any, which exceeds the amount of funds transferred at that time by the Los Angeles County Metropolitan Transportation Authority to the transferring transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, may not be used for the purpose of funding an exclusive public mass transit guideway system project. The Los Angeles County Metropolitan Transportation Authority shall report to the Senate Committee on Transportation and Housing and the Assembly Committee on Transportation on the expenditure of any funds received by it pursuant to a transfer made pursuant to this section.
SEC. 9.Section 99313.3 of the Public Utilities Code is amended to read:99313.3.The amount received by each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board, pursuant to Sections 99313 and 99314, shall be allocated for public transportation purposes. Pursuant to subdivision (d) of Section 99312.2, funds received pursuant to Section 99314 may be allocated only to STA-eligible operators. Funds received pursuant to Section 99314 may be expended by STA-eligible operators for community transit services pursuant to Section 99275, including payments or allocations to entities eligible to claim local transportation funds under Article 4.5 (commencing with Section 99275). Notwithstanding anything to the contrary in this section, Section 99285 shall continue to apply in the County of Los Angeles.
SEC. 10.Section 99313.6 of the Public Utilities Code is amended to read:99313.6.(a) Each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board shall create a state transit assistance fund and deposit therein the funds allocated to it pursuant to Sections 99313 and 99314. The funds attributable to Section 99313 shall be allocated for public transportation purposes, including for community transit services pursuant to Section 99275. Pursuant to subdivision (d) of Section 99312.2, the funds attributable to Section 99314 shall be allocated only to STA-eligible operators for public transportation purposes.
(b)From funds allocated to it pursuant to Sections 99313 and 99314, the Los Angeles County Metropolitan Transportation Authority may allocate funds to itself for the planning, design, and construction of an exclusive public mass transit guideway system.
(c)An allocation of funds from a state transit assistance fund for a transit capital project may be used for the payment of the principal of, and interest on, equipment trust certificates, bonded or other indebtedness, or in accomplishment of a defeasance of any outstanding revenue bond indenture issued for that project.
(d)From funds allocated to it pursuant to Section 99313, the Metropolitan Transportation Commission may allocate funds to itself for projects to achieve regional transit coordination objectives.
(e)From funds allocated to the Metropolitan Transportation Commission pursuant to Section 99313, upon a request of the Solano Transportation Authority, the commission may allocate an amount of funds to the authority for public transportation purposes, including countywide transit planning and coordination relative to Solano County.
SEC. 11.Section 99313.7 of the Public Utilities Code is amended to read:99313.7.A public agency authorized to file claims with the transportation planning agency and expend funds pursuant to Section 99234.5, 99234.7, or 99234.9 may also receive allocations and expend STA program funds made available pursuant to Section 99313.
SEC. 12.Section 99314 of the Public Utilities Code is amended to read:99314.(a)From funds made available pursuant to subdivision (b) of Section 99312 and subdivision (a) of Section 99312.1, an amount shall be allocated by the Controller to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board. The allocation shall include an amount corresponding to the STA-eligible operators within the jurisdiction of each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board. The amount allocated to a transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board shall be based on the ratio that the total qualifying revenue of all STA-eligible operators in the area under jurisdiction of the agency, commission, or board bears to the total qualifying revenue of all STA-eligible operators in the state.
(b)For purposes of this section and Section 99314.3, qualifying revenue means fare revenues, including fares generated for community transit services under contract with the STA-eligible operator, and any other funds used by the operator in the delivery of transit service, except federal and state funds. The revenue amount for each STA-eligible operator shall be determined from the annual report submitted to the Controller pursuant to Section 99243. Revenue used for capital expenditures or depreciation shall not constitute qualifying revenue. The revenue share for the Altamont Corridor Express and the Southern California Regional Rail Authority shall be determined by the qualifying revenues reported to the Controller in accordance with subdivision (b) of Section 99314.1 and subdivision (b) of Section 99314.2, respectively.
(c)An STA-eligible operator qualifies to receive STA funding from Section 99314 beginning on the date when it commences revenue passenger service. A new STA-eligible operator shall notify the Controller in writing that it has commenced revenue passenger service within 10 business days of beginning the service. A new STA-eligible operator that commences revenue passenger service before August 1 of a fiscal year shall be eligible to receive funds in that fiscal year based on the qualifying revenue reported to the Controller two years prior to that fiscal year, consistent with subdivision (e). If a new STA-eligible operator commences revenue passenger service on or after August 1 of a fiscal year, the Controller shall calculate the operators pro rata share of Section 99314 STA funds for that fiscal year based on the date the operator commenced revenue passenger service. That amount shall be added as an adjustment to an operators STA funding for the subsequent fiscal year, and the adjustment shall be drawn as an off-the-top reduction in the total from the first quarter of Section 99314 STA funds anticipated for the year of the adjustment. funds.
(d)The Controller shall determine allocation amounts pursuant to this section based on the qualifying revenue reported two years prior to the fiscal year in which the funds are allocated.
(e)Qualifying revenue for a given fiscal year shall not exceed an STA-eligible operators annual operating expenses, as reported to the Controller. Operating expenses include, but are not limited to, the direct cost of operating transit service, payments by the STA-eligible operator for community transit service provided by entities that are not eligible to receive funds directly pursuant to subdivision (a) of Section 99314.3, administrative costs, and routine maintenance. Operating expenses do not include transfers from an operating budget to a capital account.
(f)For the purpose of allocating funds pursuant to this section, Section 99314.1, and 99314.2, STA-eligible operator includes the Altamont Corridor Express and the Southern California Regional Rail Authority. The revenue share for these operators shall be based on the qualifying revenue used to operate the systems consistent with subdivision (b), including fares and the amounts contributed by the parties to the cooperative service agreement in the case of the Altamont Corridor Express, and by the member agencies in the case of the Southern California Regional Rail Authority.
(g)Funds allocated by the Controller to a transportation planning agency or county transportation commission, or the San Diego Metropolitan Transit Development Board pursuant to this section shall be allocated by the agency, commission, or board to STA-eligible operators pursuant to Section 99314.3.
SEC. 13.Section 99314.1 of the Public Utilities Code is amended to read:99314.1.(a)For purposes of this section, the following terms have the following meanings:
(1)The Altamont Corridor Express or the authority is the joint powers agency duly formed pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, by and between the Alameda Congestion Management Agency, the Santa Clara Valley Transportation Authority, and the San Joaquin Regional Rail Commission. Any reference to the Altamont Corridor Express or the authority shall be construed to include a reference to any entity that is a successor to the authority.
(2)Qualifying revenue means qualifying revenue, as defined in subdivision (b) of Section 99314, that is derived from operating as a member agency of the authority.
(b)The authority shall report to the Controller, for each fiscal year, the ratio that the qualifying revenue of each member agency of the authority during the prior fiscal year bears to the total qualifying revenue of the authority during that fiscal year. The authority shall provide the ratios within the timeframe specified by subdivision (a) of Section 99243.
(c)(1)From funds made available pursuant to subdivision (b) of Section 99312 and subdivision (a) of Section 99312.1, the Controller shall allocate to the transportation planning agencies in the jurisdictions of the parties to the cooperative service agreement an amount for each member agency of the authority that is based on the ratio provided under subdivision (b), for allocation pursuant to subdivision (c) of Section 99314.3.
(2)The allocation set forth in paragraph (1) shall be in addition to any other allocation provided under this article.
(3)Allocations made under this section shall be used only for STA program purposes authorized under this chapter.
SEC. 14.Section 99314.2 of the Public Utilities Code is amended to read:99314.2.(a)For purposes of this section, the following terms have the following meanings:
(1)The Southern California Regional Rail Authority or the authority is that joint powers authority described in Section 14072 of the Government Code and includes any additional agencies that may join the authority under Section 14072.2 of that code.
(2)Qualifying revenue means qualifying revenue, as defined in subdivision (b) of Section 99314, that is derived from operating as a member agency of the authority.
(b)The Southern California Regional Rail Authority shall report to the Controller Controller, for each fiscal year year, the ratio that the qualifying revenue of each member agency of the authority during the prior fiscal year bears to the total qualifying revenue of the authority during that fiscal year. The authority shall provide the ratios within the timeframe specified by subdivision (a) of Section 99243.
(c)(1)From funds made available pursuant to subdivision (b) of Section 99312 and subdivision (a) of Section 99312.1, the Controller shall allocate to the county transportation commissions in the jurisdictions of the member agencys area an amount for each member agency of the authority that is based on the ratio provided under subdivision (b), for allocation pursuant to subdivision (c) of Section 99314.3.
(2)The allocation set forth in paragraph (1) shall be in addition to any other allocation provided under this article.
(3)Allocations made under this section shall be used only for STA program purposes authorized under this chapter.
SEC. 15.Section 99314.3 of the Public Utilities Code is amended to read:99314.3.(a)The amount allocated to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board pursuant to Section 99314 shall be allocated by those entities to the STA-eligible operators in the area of their respective jurisdictions.
(b)The amount allocated by a transportation planning agency and county transportation commission, and the board to each STA-eligible operator pursuant to Section 99314 shall be based on the ratio that the operators qualifying revenue bears to the total qualifying revenue of all STA-eligible operators within the area of jurisdiction of the transportation planning agency, county transportation commission, or board. The Controller shall publish the share of funds corresponding to each STA-eligible operator as well as the total amount to be allocated to each transportation planning agency, county transportation commission, or board.
(c)The amount allocated by the Controller to a transportation planning agency corresponding to the parties to the cooperative service agreement of the Altamont Corridor Express and the member agencies of the Southern California Regional Rail Authority, pursuant to Section 99314, shall be allocated by the transportation planning agency in the jurisdiction of the parties to the cooperative services agreement or the member agencys area for STA program purposes authorized in this chapter. The allocation shall be based on the ratio that the qualifying revenues bear to the qualifying revenue of all STA-eligible operators.
(d)For purposes of subdivision (a), the City and County of San Francisco with respect to its municipal railway system, the Alameda-Contra Costa Transit District, and the San Francisco Bay Area Rapid Transit District shall be considered one operator. The amount allocated to them as one operator shall be apportioned to each of them based on the ratio of its revenue to the sum of their revenues, excluding from the determination of that ratio the amount allocated to each of them pursuant to Section 29142.2.
SEC. 16.Section 99314.4 of the Public Utilities Code is amended to read:99314.4.(a)An operator in an urbanized area having a population of less than 200,000 persons may elect to participate in the funding exchange program authorized by this subdivision. An operator electing to participate in the funding exchange program shall give notice to the director and shall indicate the amount of funds which it wants allocated for the funding exchange program.
From funds that would otherwise be allocated to an operator under the State Transit Assistance Program, an amount so designated by the participating operator shall be allocated to the department for transfer pursuant to an agreement between the department and the State of Arizona whereby California can receive federal mass transportation funds originally apportioned to the State of Arizona.
The department shall allocate the federal mass transportation funds so received to each participating operator in the same proportion as the operator contributed to the funding exchange program. Funds so received shall be used only for the purposes of the State Transit Assistance Program and are subject to all statutes and rules and regulations applicable to funds allocated pursuant to Sections 99313 and 99314.
The Legislature finds and declares that the exchange of state funds for federal mass transportation funds authorized by this section will result in a net increase in the total amount of funds to be available to the participating operators.
(b)A transportation planning agency or county transportation commission, or the San Diego Metropolitan Transit Development Board may authorize an STA-eligible operator under its jurisdiction to exchange funds allocated to it pursuant to Section 99314 for funds made available pursuant to Section 99231. Any funds allocated pursuant to Section 99314 that are exchanged pursuant to this section shall only be available to other STA-eligible operators and shall be used for STA program purposes authorized by this chapter and are subject to all statutes and rules and regulations applicable to funds allocated pursuant to Section 99314. Exchanges pursuant to this section shall be on a dollar-for-dollar basis.
SEC. 17.Section 99314.5 of the Public Utilities Code is amended to read:99314.5.(a)It is the intent of the Legislature that, in allocating the funds available pursuant to Section 99313, the transportation planning agencies and county transportation commissions, and the San Diego Metropolitan Transit Development Board give priority consideration to offsetting reductions in federal operating assistance and the unanticipated increase in the cost of fuel, to enhancing existing public transportation services, and to meeting high-priority regional, countywide, or areawide public transportation needs.
(b)Nothing in this section shall be construed to prohibit, or limit the ability of, a public transit operator to do the following:
(1)Contract with common carriers of persons operating under a franchise or license.
(2)Employ part-time drivers.
SEC. 18.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 or 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.
SEC. 19.Section 99314.8 of the Public Utilities Code is amended to read:99314.8.(a)Notwithstanding any other law, for the third and fourth quarters of the 201516 fiscal year, and for all four quarters of the 201617 and 201718 fiscal years, year, the Controller shall calculate and publish the allocation of all funds made pursuant to Section 99314 to each transportation planning agency and county transportation commission, the San Diego Metropolitan Transit Development Board, the member agencies of the Altamont Commuter Express Authority, and the member agencies of the Southern California Regional Rail Authority based on the same list of operators and the same individual operator ratios published by the Controller in its original Fourth Quarter State Transit Assistance Allocation transmittal memo for the 201415 fiscal year, unless the Controller has subsequently published revisions or adjustments to its original Fourth Quarter State Transit Assistance Allocation transmittal memo for the 201415 fiscal year, in which case the revised or adjusted list of operators and individual operator ratios shall be used.
(b)Each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board may apply the individual operator ratios calculated for the third quarter of the 201516 fiscal year pursuant to this section to any undistributed funds remaining from the first and second quarters of the 201516 fiscal year.
(c)Upon allocation of funds pursuant to this section to each transportation planning agency and county transportation commission, the San Diego Metropolitan Transit Development Board, the member agencies of the Altamont Commuter Express Authority, and the member agencies of the Southern California Rail Authority, the Controller shall publish the amount of funding applicable to each operator.
SEC. 19.SEC. 20.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to implement necessary reforms to the State Transit Assistance Program as quickly as possible, it is necessary for this act to take effect immediately.
(a)The Controller, in cooperation with the department and the operators, shall design and adopt a uniform system of accounts and records, from which the operators shall prepare and submit annual reports of their operation to transportation planning agencies, county transportation commissions, or the San Diego Metropolitan Transit Development Board having jurisdiction over them and to the Controller within seven months after the end of the fiscal year. The report shall contain underlying data from audited financial statements prepared in accordance with generally accepted accounting principles, if this data is available. The report shall specify (1) the amount of revenue generated from each source and its application for the prior fiscal year and (2) the data necessary to determine which section, with respect to Sections 99268.1, 99268.2, 99268.3, 99268.4, 99268.5, and 99268.9, the operator is required to be in compliance in order to be eligible for funds under this article.
(b)For the purposes of the State Transit Assistance Program, which is governed by Sections 99312 to 99314.8, 99314.9, inclusive, before an operator submits the report required by subdivision (a) to the Controller, the transportation planning agency, county transportation commission, or San Diego Metropolitan Transit Development Board having jurisdiction over the operator shall first verify that operator correctly reflected in its proposed report that the operator is eligible, for purposes of subdivision (d) of Section 99312.2, to claim local transportation funds under either Article 4 (commencing with Section 99400) or Article 8 (commencing with Section 99400), or under both articles. The Controllers system of reporting the Controller shall provide a mechanism for the each transportation planning agency, county transportation commission, or and the San Diego Metropolitan Transit Development Board to reflect that verification on the operators report. report to the Controller those operators within its jurisdiction that are eligible to claim local transportation funds under either Article 4 (commencing with Section 99260) or Article 8 (commencing with Section 99400), or under both articles. The Controller shall rely upon that verification to determine whether or not an operator is an STA-eligible operator pursuant to paragraph (2) of subdivision (b) of Section 99312.2. The transportation planning agency, county transportation commission, and the San Diego Metropolitan Transit Development Board shall provide this information to the Controller within 60 days of the enactment of the act amending this section in the 201718 Regular Session, and by June 15 of each subsequent year.
(c)As a supplement to the annual report prepared pursuant to subdivision (a), each operator shall include an estimate of the amount of revenues to be generated from each source and its proposed application for the next fiscal year, and a report on the extent to which it has contracted with the Prison Industry Authority, including the nature and dollar amounts of all contracts entered into during the reporting period and proposed for the next reporting period.
(d)The Controller shall instruct the county auditor to withhold payments from the fund to an operator that has not submitted its annual report to the Controller within the time specified by subdivision (a).
(e)In establishing the uniform system of accounts and records, the Controller shall include the data required by the United States Department of Transportation and the department.
(f)Notwithstanding any other law or any regulation, including any California Code of Regulations provision, the City of El Segundo, the City of Huntington Beach, the City of Inglewood, the City of Long Beach, or the City of South Lake Tahoe may select, for purposes of this chapter, on a one-time basis, a fiscal year that does not end on June 30. After the city has sent a written notice to the Secretary of Transportation and the Controller that the city has selected a fiscal year other than one ending on June 30, the fiscal year selected by the city shall be its fiscal year for all reports required by the state under this chapter.
SEC. 2.Section 99312 of the Public Utilities Code is amended to read:99312.Except as provided in Sections 99311 and 99311.5, and Sections 6051.8 and 6201.8 of the Revenue and Taxation Code, the funds in the account shall be made available for the following purposes:
(a)Fifty percent for purposes of Section 99315, subject to appropriation by the Legislature.
(b)To the Controller, 25 percent for allocation to transportation planning agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board pursuant to Section 99314, for the purposes of the State Transit Assistance program. Program. These funds are hereby continuously appropriated for these purposes.
(c)To the Controller, 25 percent for allocation to transportation planning agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board pursuant to Section 99313, for the purposes of the State Transit Assistance program. Program. These funds are hereby continuously appropriated for these purposes.
SEC. 3.Section 99312.1 of the Public Utilities Code is amended to read:99312.1.Revenues transferred to the Public Transportation Account pursuant to Sections 6051.8 and 6201.8 of the Revenue and Taxation Code are hereby continuously appropriated to the Controller for allocation as follows:(a)Fifty percent for allocation to transportation planning agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board pursuant to Section 99314, for the purposes of the State Transit Assistance program.(b)Fifty percent for allocation to transportation planning agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board pursuant to Section 99313, for the purposes of the State Transit Assistance program.For purposes of this chapter, the revenues allocated pursuant to this section shall be subject to the same requirements as revenues allocated pursuant to subdivisions (b) and (c), as applicable, of Section 99312.SEC. 3.Section 99312.1 of the Public Utilities Code is amended to read:99312.1.(a)Revenues transferred to the Public Transportation Account pursuant to Sections 6051.8 and 6201.8 of the Revenue and Taxation Code for the State Transit Assistance Program are hereby continuously appropriated to the Controller for allocation as follows:
(1)Fifty percent for allocation to transportation planning agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board pursuant to Section 99314. 99314, for purposes of the State Transit Assistance Program.
(2)Fifty percent for allocation to transportation agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board for purposes of pursuant to Section 99313. 99313, for purposes of the State Transit Assistance Program.
(b)For purposes of this chapter, the revenues allocated pursuant to this section shall be subject to the same requirements as revenues allocated pursuant to subdivisions (b) and (c), as applicable, of Section 99312.
(c)The revenues transferred to the Public Transportation Account for the State Transit Assistance Program that are attributable to subdivision (a) of Section 11053 of the Revenue and Taxation Code are hereby continuously appropriated to the Controller, and, upon allocation pursuant to Sections 99313 and 99314, shall only be expended on the following:
(1)Transit capital projects or services to maintain or repair a transit operators existing transit vehicle fleet or existing transit facilities, including rehabilitation or modernization of existing vehicles or facilities.
(2)The design, acquisition, and construction of new vehicles or facilities that improve existing transit services.
(3)Transit services that complement local efforts for repair and improvement of local transportation infrastructure.
(d)(1)Prior to receiving an apportionment of funds pursuant to subdivision (c) from the Controller in a fiscal year, a recipient transit agency shall submit to the Department of Transportation a list of projects proposed to be funded with these funds. The list of projects proposed to be funded with these funds shall include a description and location of each proposed project, a proposed schedule for the projects completion, and the estimated useful life of the improvement. The project list shall not limit the flexibility of a recipient transit agency to fund projects in accordance with local needs and priorities so long as the projects are consistent with subdivision (c).
(2)The department shall report to the Controller the recipient transit agencies that have submitted a list of projects as described in this subdivision and that are therefore eligible to receive an apportionment of funds for the applicable fiscal year. The Controller, upon receipt of the report, shall apportion funds quarterly pursuant to Sections 99313 and 99314.
(e)For each fiscal year, each recipient transit agency receiving an apportionment of funds pursuant to subdivision (c) shall, upon expending those funds, submit documentation to the department that includes a description and location of each completed project, the amount of funds expended on the project, the completion date, and the estimated useful life of the improvement.
(f)The audit of transit operator finances required pursuant to Section 99245 shall verify that the revenues identified in subdivision (c) have been expended in conformance with these specific requirements and all other generally applicable requirements.
SEC. 4.Section 99312.2 of the Public Utilities Code is repealed.SEC. 5.Section 99312.2 is added to the Public Utilities Code, to read:99312.2.(a)The State Transit Assistance program, Program, also known as the STA program, which provides for allocations of funds made available from the Public Transportation Account pursuant to Sections 99313 and 99314, and which is governed by Sections 99312 to 99314.8, inclusive, is hereby continued in existence. The purpose of the STA program is to provide a source of state funding to eligible public transportation operators and other transportation agencies in order to support their local and regional transit operating and capital needs.
(b)For purposes of the STA program, the following terms shall have the following meanings:
(1)Public transportation operator has the same meaning as operator, as defined in Section 99210, as long as that operator operates a public transportation system, as defined in Section 99211.
(2)STA-eligible operator means a public transportation operator eligible to claim local transportation funds under either Article 4 (commencing with Section 99260) or Article 8 (commencing with Section 99400), or under both articles.
(c)The only entities eligible to receive direct allocations from the Controller under Sections 99313 and 99314 shall be transportation planning agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board. The Controller shall distribute funds attributable to transportation planning agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board to the applicable county treasurers office. Upon the request of a transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, the Controller shall instead distribute the applicable funds directly to the requesting agency.
(d)Only STA-eligible operators shall be eligible to receive STA program funds allocated by transportation planning agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board pursuant to Section 99314. A An STA-eligible operator, at its discretion, may further suballocate funds it receives pursuant to Section 99314 to an entity operating local community transit services that is eligible to claim local transportation funds pursuant to Article 4.5 (commencing with Section 99275) but that is otherwise ineligible to directly receive funds allocated pursuant to Section 99314.
(e)An entity operating community transit services pursuant to Article 4.5 (commencing with Section 99275) may be allocated funds pursuant to Section 99313 as a subrecipient at the discretion of the transportation planning agency, the county transportation commission, or the San Diego Metropolitan Transit Development Board.
(f)The Los Angeles County Metropolitan Transportation Authority, which is both a county transportation commission for purposes of Sections 99313 and 99314, and an STA-eligible operator for purposes of Section 99314, may incorporate into its report pursuant to Section 99243 any operating costs for local community transit service under contract with the authority, including service provided by a consolidated transportation service agency pursuant to Section 99204.5 or by operators eligible to expend local transportation funds only under Article 4.5 (commencing with Section 99275).
SEC. 6.Section 99312.7 of the Public Utilities Code is amended to read:99312.7.(a)Not later than each January 31st, for purposes of the State Transit Assistance program, Program, the Controller shall compute, publish, and send to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board an estimate of the amount of funds from subdivisions (b) and (c) of Section 99312 and Section 99312.1 to be allocated to it during the next fiscal year pursuant to Sections 99313 and 99314.
(b)Not later than each August 1st, on the basis of the amounts continuously appropriated pursuant to subdivisions (b) and (c) of Section 99312 and Section 99312.1 for the applicable fiscal year for purposes of Sections 99313 and 99314, the Controller shall compute, publish, and send to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board an estimate of the amount of funds to be allocated to it during the fiscal year. Notwithstanding any other law, for the 201718 fiscal year, the Controller shall compute, publish, and send the estimate with 90 days of the enactment of the act amending this section in the 201718 Regular Session.
(c)The Controller, along with the actions taken pursuant to subdivisions (a) and (b), with respect to the allocations under Section 99314, shall also compute, publish, and send to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board the share of funds corresponding to each STA-eligible operator within the jurisdiction of each agency, commission, and board.
SEC. 7.Section 99313 of the Public Utilities Code is amended to read:99313.(a)From the funds made available pursuant to subdivision (c) of Section 99312 and subdivision (b) of Section 99312.1, an amount shall be allocated by the Controller to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board based on the ratio of the population of the area under its jurisdiction to the total population of the state. The Controller shall base these allocations on a report prepared by the Department of Transportation. On or before June 30 of each year, the Department of Transportation shall prepare and submit to the Controller a report detailing the population of each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board. For the purpose of this report, the Department of Transportation shall use the most recent population estimates of the Department of Finance and the information provided pursuant to subdivision (b).
(b)To assist the Department of Transportation in determining the populations of the San Diego Metropolitan Transit Development Board, the San Diego Association of Governments, the El Dorado County Transportation Commission, the Placer County Transportation Planning Agency, and the Tahoe Regional Planning Agency for the purpose of subdivision (c) of Section 99312 and subdivision (b) of Section 99312.1, each of those entities, on or before June 1st of each year, shall provide the department with the population of its respective jurisdiction using the most recent population estimates of the Department of Finance.
SEC. 8.Section 99313.1 of the Public Utilities Code is amended to read:99313.1.(a)A transportation planning agency, a county transportation commission, or the San Diego Metropolitan Transit Development Board may transfer any funds that it receives pursuant to Section 99313 to another transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, as applicable. Any funds transferred pursuant to this section shall be used only for the purposes authorized by this chapter and are subject to all statutes and rules and regulations applicable to funds allocated pursuant to Section 99313.
(b)If one transfer has been completed between a transportation planning agency, a county transportation commission, or the San Diego Metropolitan Transit Development Board, pursuant to this section, no other transfer may be made between the same parties.
(c)In the event of a transfer of funds to the Los Angeles County Metropolitan Transportation Authority pursuant to this section, the amount of that transfer, if any, which exceeds the amount of funds transferred at that time by the Los Angeles County Metropolitan Transportation Authority to the transferring transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, may not be used for the purpose of funding an exclusive public mass transit guideway system project. The Los Angeles County Metropolitan Transportation Authority shall report to the Senate Committee on Transportation and Housing and the Assembly Committee on Transportation on the expenditure of any funds received by it pursuant to a transfer made pursuant to this section.
SEC. 9.Section 99313.3 of the Public Utilities Code is amended to read:99313.3.The amount received by each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board, pursuant to Sections 99313 and 99314, shall be allocated for public transportation purposes. Pursuant to subdivision (d) of Section 99312.2, funds received pursuant to Section 99314 may be allocated only to STA-eligible operators. Funds received pursuant to Section 99314 may be expended by STA-eligible operators for community transit services pursuant to Section 99275, including payments or allocations to entities eligible to claim local transportation funds under Article 4.5 (commencing with Section 99275). Notwithstanding anything to the contrary in this section, Section 99285 shall continue to apply in the County of Los Angeles.
SEC. 10.Section 99313.6 of the Public Utilities Code is amended to read:99313.6.(a) Each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board shall create a state transit assistance fund and deposit therein the funds allocated to it pursuant to Sections 99313 and 99314. The funds attributable to Section 99313 shall be allocated for public transportation purposes, including for community transit services pursuant to Section 99275. Pursuant to subdivision (d) of Section 99312.2, the funds attributable to Section 99314 shall be allocated only to STA-eligible operators for public transportation purposes.
(b)From funds allocated to it pursuant to Sections 99313 and 99314, the Los Angeles County Metropolitan Transportation Authority may allocate funds to itself for the planning, design, and construction of an exclusive public mass transit guideway system.
(c)An allocation of funds from a state transit assistance fund for a transit capital project may be used for the payment of the principal of, and interest on, equipment trust certificates, bonded or other indebtedness, or in accomplishment of a defeasance of any outstanding revenue bond indenture issued for that project.
(d)From funds allocated to it pursuant to Section 99313, the Metropolitan Transportation Commission may allocate funds to itself for projects to achieve regional transit coordination objectives.
(e)From funds allocated to the Metropolitan Transportation Commission pursuant to Section 99313, upon a request of the Solano Transportation Authority, the commission may allocate an amount of funds to the authority for public transportation purposes, including countywide transit planning and coordination relative to Solano County.
SEC. 11.Section 99313.7 of the Public Utilities Code is amended to read:99313.7.A public agency authorized to file claims with the transportation planning agency and expend funds pursuant to Section 99234.5, 99234.7, or 99234.9 may also receive allocations and expend STA program funds made available pursuant to Section 99313.
SEC. 12.Section 99314 of the Public Utilities Code is amended to read:99314.(a)From funds made available pursuant to subdivision (b) of Section 99312 and subdivision (a) of Section 99312.1, an amount shall be allocated by the Controller to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board. The allocation shall include an amount corresponding to the STA-eligible operators within the jurisdiction of each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board. The amount allocated to a transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board shall be based on the ratio that the total qualifying revenue of all STA-eligible operators in the area under jurisdiction of the agency, commission, or board bears to the total qualifying revenue of all STA-eligible operators in the state.
(b)For purposes of this section and Section 99314.3, qualifying revenue means fare revenues, including fares generated for community transit services under contract with the STA-eligible operator, and any other funds used by the operator in the delivery of transit service, except federal and state funds. The revenue amount for each STA-eligible operator shall be determined from the annual report submitted to the Controller pursuant to Section 99243. Revenue used for capital expenditures or depreciation shall not constitute qualifying revenue. The revenue share for the Altamont Corridor Express and the Southern California Regional Rail Authority shall be determined by the qualifying revenues reported to the Controller in accordance with subdivision (b) of Section 99314.1 and subdivision (b) of Section 99314.2, respectively. A STA-eligible operator has qualifying revenue beginning on the date when it commences revenue passenger service.
(c)An STA-eligible operator qualifies to receive STA funding from Section 99314 beginning on the date when it commences revenue passenger service. A new STA-eligible operator shall notify the Controller in writing that it has commenced revenue passenger service within 10 business days of beginning the service. A new STA-eligible operator that commences revenue passenger service before August 1 of a fiscal year shall be eligible to receive funds in that fiscal year based on the qualifying revenue reported to the Controller two years prior to that fiscal year, consistent with subdivision (e). If a new STA-eligible operator commences revenue passenger service after August 1 of a fiscal year, the Controller shall calculate the operators pro rata share of Section 99314 STA funds for that fiscal year based on the date the operator commenced revenue passenger service. That amount shall be added as an adjustment to an operators STA funding for the subsequent fiscal year, and the adjustment shall be drawn as an off-the-top reduction in the total Section 99314 STA funds anticipated for the year of the adjustment.
(c)(d)The Controller shall determine allocation amounts pursuant to this section based on the qualifying revenue reported two years prior to the fiscal year in which the funds are allocated.
(d)(e)Qualifying revenue for a given fiscal year shall not exceed a an STA-eligible operators annual operating expenses, as reported to the Controller. Operating expenses include, but are not limited to, the direct cost of operating transit service, payments by the STA-eligible operator for community transit service provided by entities that are not eligible to receive funds directly pursuant to subdivision (a) of Section 99314.3, administrative costs, and routine maintenance. Operating expenses do not include transfers from an operating budget to a capital account.
(e)(f)For the purpose of allocating funds pursuant to this section, Section 99314.1, and 99314.2, STA-eligible operator includes the Altamont Corridor Express and the Southern California Regional Rail Authority. The revenue share for these operators shall be based on the qualifying revenue used to operate the systems consistent with subdivision (b), including fares and the amounts contributed by the parties to the cooperative service agreement in the case of the Altamont Corridor Express, and by the member agencies in the case of the Southern California Regional Rail Authority.
(f)(g)Funds allocated by the Controller to a transportation planning agency or county transportation commission, or the San Diego Metropolitan Transit Development Board pursuant to this section shall be allocated by the agency, commission, or board to STA-eligible operators pursuant to Section 99314.3.
SEC. 13.Section 99314.1 of the Public Utilities Code is amended to read:99314.1.(a)For purposes of this section, the following terms have the following meanings:
(1)The Altamont Corridor Express or the authority is the joint powers agency duly formed pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, by and between the Alameda Congestion Management Agency, the Santa Clara Valley Transportation Authority, and the San Joaquin Regional Rail Commission. Any reference to the Altamont Corridor Express or the authority shall be construed to include a reference to any entity that is a successor to the authority.
(2)Qualifying revenue means qualifying revenue, as defined in subdivision (b) of Section 99314, that is derived from operating as a member agency of the authority.
(b)The authority shall report to the Controller, for each fiscal year, the ratio that the qualifying revenue of each member agency of the authority during the prior fiscal year bears to the total qualifying revenue of the authority during that fiscal year. The authority shall provide the ratios within the timeframe specified by subdivision (a) of Section 99243.
(c)(1)From funds made available pursuant to subdivision (b) of Section 99312 and subdivision (a) of Section 99312.1, the Controller shall allocate to the transportation planning agency agencies in the jurisdictions of the parties to the cooperative service agreement an amount for each member agency of the authority that is based on the ratio provided under subdivision (b), for allocation pursuant to subdivision (c) of Section 99314.3.
(2)The allocation set forth in paragraph (1) shall be in addition to any other allocation provided under this article.
(3)Allocations made under this section shall be used only for STA program purposes authorized under this chapter.
SEC. 14.Section 99314.2 of the Public Utilities Code is amended to read:99314.2.(a)For purposes of this section, the following terms have the following meanings:
(1)The Southern California Regional Rail Authority or the authority is that joint powers authority described in Section 14072 of the Government Code and includes any additional agencies that may join the authority under Section 14072.2 of that code.
(2)Qualifying revenue means qualifying revenue, as defined in subdivision (b) of Section 99314, that is derived from operating as a member agency of the authority.
(b)The Southern California Regional Rail Authority shall report to the Controller, on an annual basis, Controller for each fiscal year the ratio that the qualifying revenue of each member agency of the authority during the prior fiscal year bears to the total qualifying revenue of the authority during that fiscal year. The authority shall provide the ratios within the timeframe specified by subdivision (a) of Section 99243.
(c)(1)From funds made available pursuant to subdivision (b) of Section 99312 and subdivision (a) of Section 99312.1, the Controller shall allocate to the county transportation commission commissions in the jurisdictions of the member agencys area an amount for each member agency of the authority that is based on the ratio provided under subdivision (b), for allocation pursuant to subdivision (c) of Section 99314.3.
(2)The allocation set forth in paragraph (1) shall be in addition to any other allocation provided under this article.
(3)Allocations made under this section shall be used only for STA program purposes authorized under this chapter.
SEC. 15.Section 99314.3 of the Public Utilities Code is amended to read:99314.3.(a)The amount allocated to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board pursuant to Section 99314 shall be allocated by those entities to the STA-eligible operators in the area of their respective jurisdictions.
(b)The amount allocated by a transportation planning agency and county transportation commission, and the board to each STA-eligible operator pursuant to Section 99314 shall be based on the ratio that the operators qualifying revenue bears to the total qualifying revenue of all STA-eligible operators within the area of jurisdiction of the transportation planning agency, county transportation commission, or board. The Controller shall publish the share of funds corresponding to each STA-eligible operator as well as the total amount to be allocated to each transportation planning agency, county transportation commission, or board.
(c)The amount allocated by the Controller to a transportation planning agency corresponding to the parties to the cooperative service agreement of the Altamont Corridor Express and the member agencies of the Southern California Regional Rail Authority, pursuant to Section 99314, shall be allocated by the transportation planning agency in the jurisdiction of the parties to the cooperative services agreement or the member agencys area for STA program purposes authorized in this chapter. The allocation shall be based on the ratio that the qualifying revenues bear to the qualifying revenue of all STA-eligible operators.
(d)For purposes of subdivision (a), the City and County of San Francisco with respect to its municipal railway system, the Alameda-Contra Costa Transit District, and the San Francisco Bay Area Rapid Transit District shall be considered one operator. The amount allocated to them as one operator shall be apportioned to each of them based on the ratio of its revenue to the sum of their revenues, excluding from the determination of that ratio the amount allocated to each of them pursuant to Section 29142.2.
SEC. 16.Section 99314.4 of the Public Utilities Code is amended to read:99314.4.(a)An operator in an urbanized area having a population of less than 200,000 persons may elect to participate in the funding exchange program authorized by this subdivision. An operator electing to participate in the funding exchange program shall give notice to the director and shall indicate the amount of funds which it wants allocated for the funding exchange program.
From funds that would otherwise be allocated to an operator under the State Transit Assistance Program, an amount so designated by the participating operator shall be allocated to the department for transfer pursuant to an agreement between the department and the State of Arizona whereby California can receive federal mass transportation funds originally apportioned to the State of Arizona.
The department shall allocate the federal mass transportation funds so received to each participating operator in the same proportion as the operator contributed to the funding exchange program. Funds so received shall be used only for the purposes of the State Transit Assistance Program and are subject to all statutes and rules and regulations applicable to funds allocated pursuant to Sections 99313 and 99314.
The Legislature finds and declares that the exchange of state funds for federal mass transportation funds authorized by this section will result in a net increase in the total amount of funds to be available to the participating operators.
(b)A transportation planning agency or county transportation commission, or the San Diego Metropolitan Transit Development Board may authorize a an STA-eligible operator under its jurisdiction to exchange funds allocated to it pursuant to Section 99314 for funds made available pursuant to Section 99231. Any funds allocated pursuant to Section 99314 that are exchanged pursuant to this section shall only be available to other STA-eligible operators and shall be used for STA program purposes authorized by this chapter and are subject to all statutes and rules and regulations applicable to funds allocated pursuant to Section 99314. Exchanges pursuant to this section shall be on a dollar-for-dollar basis.
SEC. 17.Section 99314.5 of the Public Utilities Code is amended to read:99314.5.(a)It is the intent of the Legislature that, in allocating the funds available pursuant to Section 99313, the transportation planning agencies and county transportation commissions, and the San Diego Metropolitan Transit Development Board give priority consideration to offsetting reductions in federal operating assistance and the unanticipated increase in the cost of fuel, to enhancing existing public transportation services, and to meeting high-priority regional, countywide, or areawide public transportation needs.
(b)Nothing in this section shall be construed to prohibit, or limit the ability of, a public transit operator to do the following:
(1)Contract with common carriers of persons operating under a franchise or license.
(2)Employ part-time drivers.
SEC. 18.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 or 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.
SEC. 19.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to implement necessary reforms to the State Transit Assistance Program as quickly as possible, it is necessary for this act to take effect immediately.
(a)The Controller, in cooperation with the department and the operators, shall design and adopt a uniform system of accounts and records, from which the operators shall prepare and submit annual reports of their operation to the transportation planning agencies agencies, county transportation commissions, or the San Diego Metropolitan Transit Development Board having jurisdiction over them and to the Controller within 90 days of seven months after the end of the fiscal year. If the report is filed in electronic format as prescribed by the Controller, the report shall be furnished within 110 days after the close of each fiscal year. The report shall contain underlying data from audited financial statements prepared in accordance with generally accepted accounting principles, if this data is available. The report shall specify (1) the amount of revenue generated from each source and its application for the prior fiscal year and (2) the data necessary to determine which section, with respect to Sections 99268.1, 99268.2, 99268.3, 99268.4, 99268.5, and 99268.9, the operator is required to be in compliance in order to be eligible for funds under this article.
(b)For the purposes of the State Transit Assistance Program, which is governed by Sections 99312 to 99314.8, inclusive, before an operator submits the report required by subdivision (a) to the Controller, the transportation planning agency, county transportation commission, or San Diego Metropolitan Transit Development Board having jurisdiction over the operator shall first verify that operator correctly reflected in its proposed report that the operator is eligible, for purposes of subdivision (d) of Section 99312.2, to claim local transportation funds under either Article 4 (commencing with Section 99400) or Article 8 (commencing with Section 99400), or under both articles. The Controllers system of reporting shall provide for the transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board to reflect that verification on the operators report.
(b)(c)As a supplement to the annual report prepared pursuant to subdivision (a), each operator shall include an estimate of the amount of revenues to be generated from each source and its proposed application for the next fiscal year, and a report on the extent to which it has contracted with the Prison Industry Authority, including the nature and dollar amounts of all contracts entered into during the reporting period and proposed for the next reporting period.
(c)(d)The Controller shall instruct the county auditor to withhold payments from the fund to an operator that has not submitted its annual report to the Controller within the time specified by subdivision (a).
(d)(e)In establishing the uniform system of accounts and records, the Controller shall include the data required by the United States Department of Transportation and the department.
(e)(f)Notwithstanding any other law or any regulation, including any California Code of Regulations provision, the City of El Segundo, the City of Huntington Beach, the City of Inglewood, the City of Long Beach, or the City of South Lake Tahoe may select, for purposes of this chapter, on a one-time basis, a fiscal year that does not end on June 30. After the city has sent a written notice to the Secretary of Transportation and the Controller that the city has selected a fiscal year other than one ending on June 30, the fiscal year selected by the city shall be its fiscal year for all reports required by the state under this chapter.
SECTION 1.SEC. 2.Section 99312 of the Public Utilities Code is amended to read:99312.Except as provided in Sections 99311 and 99311.5, and Sections 6051.8 and 6201.8 of the Revenue and Taxation Code, the funds in the account shall be made available for the following purposes:
(a)Fifty percent for purposes of Section 99315, subject to appropriation by the Legislature.
(b)To the Controller, 25 percent for allocation to transportation planning agencies agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board pursuant to Section 99314, for the purposes of the State Transit Assistance program. These funds are hereby continuously appropriated for these purposes.
(c)To the Controller, 25 percent for allocation to transportation planning agencies agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board pursuant to Section 99313, for the purposes of the State Transit Assistance program. These funds are hereby continuously appropriated for these purposes.
SEC. 2.SEC. 3.Section 99312.1 of the Public Utilities Code is amended to read:99312.1.Revenues transferred to the Public Transportation Account pursuant to Sections 6051.8 and 6201.8 of the Revenue and Taxation Code are hereby continuously appropriated to the Controller for allocation as follows:
(a)Fifty percent for allocation to transportation planning agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board pursuant to Section 99314, for the purposes of the State Transit Assistance program.
(b)Fifty percent for allocation to transportation planning agencies agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board pursuant to Section 99313, for the purposes of the State Transit Assistance program.
For purposes of this chapter, the revenues allocated pursuant to this section shall be subject to the same requirements as revenues allocated pursuant to subdivisions (b) and (c), as applicable, of Section 99312.
SEC. 3.SEC. 4.Section 99312.2 of the Public Utilities Code is repealed.SEC. 4.SEC. 5.Section 99312.2 is added to the Public Utilities Code, to read:99312.2.(a)The State Transit Assistance program, also known as the STA program, which provides for allocations of funds made available from the Public Transportation Account pursuant to Sections 99313 and 99314, and which is governed by Sections 99312 to 99314.8, inclusive, is hereby continued in existence. The purpose of the STA program is to provide a source of state funding to eligible public transportation operators and other transportation agencies in order to support their local and regional transit operating and capital needs.
(b)For purposes of the STA program, the following terms shall have the following meanings:
(1)Transportation planning agency has the meaning as defined in Section 99214.(2)(1)Public transportation operator has the same meaning as operator, as defined in Section 99210, as long as that operator operates a public transportation system, as defined in Section 99211.
(3)(2)STA-eligible operator means a public transportation operator eligible to claim local transportation funds under either Article 4 (commencing with Section 99260) or Article 8 (commencing with Section 99400), or under both articles.
(c)The only entities eligible to receive direct allocations from the Controller under Sections 99313 and 99314 shall be transportation planning agencies agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board.
(d)Only STA-eligible operators shall be eligible to receive STA program funds allocated by transportation planning agencies agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board pursuant to Section 99314. A STA-eligible operator, at its discretion, may further suballocate funds it receives pursuant to Section 99314 to an entity operating local community transit services that is eligible to claim local transportation funds pursuant to Article 4.5 (commencing with Section 99275) but that is otherwise ineligible to directly receive funds allocated pursuant to Section 99314.
(e)An entity operating community transit services pursuant to Article 4.5 (commencing with Section 99275) may be allocated funds pursuant to Section 99313 as a subrecipient at the discretion of the transportation planning agency agency, the county transportation commission, or the San Diego Metropolitan Transit Development Board.
(f)The Los Angeles County Metropolitan Transportation Authority, which is both a transportation planning agency county transportation commission for purposes of Sections 99313 and 99314, and an STA-eligible operator for purposes of Section 99314, may incorporate into its report pursuant to Section 99243 any operating costs for local community transit service under contract with the authority, including service provided by a consolidated transportation service agency pursuant to Section 99204.5 or by operators eligible to expend local transportation funds only under Article 4.5 (commencing with Section 99275).
SEC. 5.SEC. 6.Section 99312.7 of the Public Utilities Code is amended to read:99312.7.(a)Not later than each January 31st, for purposes of the State Transit Assistance program, the Controller shall compute, publish, and send to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board an estimate of the amount of funds from subdivisions (b) and (c) of Section 99312 and Section 99312.1 to be allocated to it during the next fiscal year pursuant to Sections 99313 and 99314.
(b)Not later than each August 1st, on the basis of the amounts continuously appropriated pursuant to subdivisions (b) and (c) of Section 99312 and Section 99312.1 for the applicable fiscal year for purposes of Sections 99313 and 99314, the Controller shall compute, publish, and send to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board the amount of funds to be allocated to it during the fiscal year.
(c)The Controller, along with the actions taken pursuant to subdivisions (a) and (b), with respect to the allocations under Section 99314, shall also compute, publish, and send to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board the share of funds corresponding to each STA-eligible operator within the jurisdiction of each agency agency, commission, and board.
SEC. 6.SEC. 7.Section 99313 of the Public Utilities Code is amended to read:99313.(a)From the funds made available pursuant to subdivision (c) of Section 99312 and subdivision (b) of Section 99312.1, an amount shall be allocated by the Controller to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board based on the ratio of the population of the area under its jurisdiction to the total population of the state. The Controller shall base these allocations on a report prepared by the Department of Transportation. On or before June 30 of each year, the Department of Transportation shall prepare and submit to the Controller a report detailing the population of each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board. For the purpose of this report, the Department of Transportation shall use the most recent population estimates of the Department of Finance and the information provided pursuant to subdivision (b).
(b)To assist the Department of Transportation in determining the populations of the San Diego Metropolitan Transit Development Board, the San Diego Association of Governments, the El Dorado County Transportation Commission, the Placer County Transportation Planning Agency, and the Tahoe Regional Planning Agency for the purpose of subdivision (c) of Section 99312 and subdivision (b) of Section 99312.1, each of those entities, on or before June 1st of each year, shall provide the department with the population of its respective jurisdiction using the most recent population estimates of the Department of Finance.
SEC. 7.SEC. 8.Section 99313.1 of the Public Utilities Code is amended to read:99313.1.(a)A transportation planning agency agency, a county transportation commission, or the San Diego Metropolitan Transit Development Board may transfer any funds that it receives pursuant to Section 99313 to another transportation planning agency agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, as applicable. Any funds transferred pursuant to this section shall be used only for the purposes authorized by this chapter and are subject to all statutes and rules and regulations applicable to funds allocated pursuant to Section 99313.
(b)If one transfer has been completed between a transportation planning agency agency, a county transportation commission, or the San Diego Metropolitan Transit Development Board, pursuant to this section, no other transfer may be made between the same parties.
(c)In the event of a transfer of funds to the Los Angeles County Metropolitan Transportation Authority pursuant to this section, the amount of that transfer, if any, which exceeds the amount of funds transferred at that time by the Los Angeles County Metropolitan Transportation Authority to the transferring transportation planning agency agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, may not be used for the purpose of funding an exclusive public mass transit guideway system project. The Los Angeles County Metropolitan Transportation Authority shall report to the Senate Committee on Transportation and Housing and the Assembly Committee on Transportation on the expenditure of any funds received by it pursuant to a transfer made pursuant to this section.
SEC. 8.SEC. 9.Section 99313.3 of the Public Utilities Code is amended to read:99313.3.The amount received by each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board, pursuant to Sections 99313 and 99314, shall be allocated for public transportation purposes. Pursuant to subdivision (d) of Section 99312.2, funds received pursuant to Section 99314 may be allocated only to STA-eligible operators. Funds received pursuant to Section 99314 may be expended by STA-eligible operators for community transit services pursuant to Section 99275, including payments or allocations to entities eligible to claim local transportation funds under Article 4.5 (commencing with Section 99275). Notwithstanding anything to the contrary in this section, Section 99285 shall continue to apply in the County of Los Angeles.
SEC. 9.SEC. 10.Section 99313.6 of the Public Utilities Code is amended to read:99313.6.(a) Each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board shall create a state transit assistance fund and deposit therein the funds allocated to it pursuant to Sections 99313 and 99314. The funds attributable to Section 99313 shall be allocated for public transportation purposes, including for community transit services pursuant to Section 99275. Pursuant to subdivision (d) of Section 99312.2, the funds attributable to Section 99314 shall be allocated only to STA-eligible operators for public transportation purposes.
(b)From funds allocated to it pursuant to Sections 99313 and 99314, the Los Angeles County Metropolitan Transportation Authority may allocate funds to itself for the planning, design, and construction of an exclusive public mass transit guideway system.
(c)An allocation of funds from a state transit assistance fund for a transit capital project may be used for the payment of the principal of, and interest on, equipment trust certificates, bonded or other indebtedness, or in accomplishment of a defeasance of any outstanding revenue bond indenture issued for that project.
(d)From funds allocated to it pursuant to Section 99313, the Metropolitan Transportation Commission may allocate funds to itself for projects to achieve regional transit coordination objectives.
(e)From funds allocated to the Metropolitan Transportation Commission pursuant to Section 99313, upon a request of the Solano Transportation Authority, the commission may allocate an amount of funds to the authority for public transportation purposes, including countywide transit planning and coordination relative to Solano County.
SEC. 10.SEC. 11.Section 99313.7 of the Public Utilities Code is amended to read:99313.7.A public agency authorized to file claims with the transportation planning agency and expend funds pursuant to Section 99234.5, 99234.7, or 99234.9 may also receive allocations and expend STA program funds made available pursuant to Section 99313.
SEC. 11.SEC. 12.Section 99314 of the Public Utilities Code is amended to read:99314.(a)From funds made available pursuant to subdivision (b) of Section 99312 and subdivision (a) of Section 99312.1, an amount shall be allocated by the Controller to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board. The allocation shall include an amount corresponding to the STA-eligible operators within the jurisdiction of each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board. The amount allocated to a transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board shall be based on the ratio that the total qualifying revenue of all STA-eligible operators in the area under jurisdiction of the agency agency, commission, or board bears to the total qualifying revenue of all STA-eligible operators in the state.
(b)For purposes of this section and Section 99314.3, qualifying revenue means fare revenues, including fares generated for community transit services under contract with the STA-eligible operator, and any other funds used by the operator in the delivery of transit service, except federal and state funds. The revenue amount for each STA-eligible operator shall be determined from the annual report submitted to the Controller pursuant to Section 99243. Revenue used for capital expenditures or depreciation shall not constitute qualifying revenue. The revenue share for the Altamont Corridor Express and the Southern California Regional Rail Authority shall be determined by the qualifying revenues reported to the Controller in accordance with subdivision (b) of Section 99314.1 and subdivision (b) of Section 99314.2, respectively. A STA-eligible operator has qualifying revenue beginning on the date when it commences revenue passenger service.
(c)The Controller shall determine allocation amounts pursuant to this section based on the qualifying revenue reported two years prior to the fiscal year in which the funds are allocated.
(d)Qualifying revenue for a given fiscal year shall not exceed a STA-eligible operators annual operating expenses, as reported to the Controller. Operating expenses include, but are not limited to, the direct cost of operating transit service, payments by the STA-eligible operator for community transit service provided by entities that are not eligible to receive funds directly pursuant to subdivision (d) (a) of Section 99312.2, 99314.3, administrative costs, and routine maintenance. Operating expenses do not include transfers from an operating budget to a capital account.
(e)For the purpose of allocating funds pursuant to this section, Section 99314.1, and 99314.2, STA-eligible operator includes the Altamont Corridor Express and the Southern California Regional Rail Authority. The revenue share for these operators shall be based on the qualifying revenue used to operate the systems consistent with subdivision (b), including fares and the amounts contributed by the parties to the cooperative service agreement in the case of the Altamont Corridor Express, and by the member agencies in the case of the Southern California Regional Rail Authority.
(f)Funds allocated by the Controller to a transportation planning agency or county transportation commission, or the San Diego Metropolitan Transit Development Board pursuant to this section shall be allocated by the agency agency, commission, or board to STA-eligible operators pursuant to Section 99314.3.
(g)A STA-eligible operator receiving funds under this section shall submit to the Controller an audited Transit Operators Financial Transaction Report within 180 days following the end of each fiscal year. Submission of the report is a requirement to receive funds under this section. However, the Controller may exempt STA-eligible operators with revenue of less than ten million dollars ($10,000,000) in annual revenues from the audit requirement.SEC. 12.SEC. 13.Section 99314.1 of the Public Utilities Code is amended to read:99314.1.(a)For purposes of this section, the following terms have the following meanings:
(1)The Altamont Corridor Express or the authority is the joint powers agency duly formed pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, by and between the Alameda Congestion Management Agency, the Santa Clara Valley Transportation Authority, and the San Joaquin Regional Rail Commission. Any reference to the Altamont Corridor Express or the authority shall be construed to include a reference to any entity that is a successor to the authority.
(2)Qualifying revenue means qualifying revenue, as defined in subdivision (b) of Section 99314, that is derived from operating as a member agency of the authority.
(b)The authority shall report to the Controller, for each fiscal year, the ratio that the qualifying revenue of each member agency of the authority during the prior fiscal year bears to the total qualifying revenue of the authority during that fiscal year.
(c)(1)From funds made available pursuant to subdivision (b) of Section 99312 and subdivision (a) of Section 99312.1, the Controller shall allocate to the transportation planning agency an amount for each member agency of the authority that is based on the ratio provided under subdivision (b), for allocation pursuant to subdivision (c) of Section 99314.3.
(2)The allocation set forth in paragraph (1) shall be in addition to any other allocation provided under this article.
(3)Allocations made under this section shall be used only for STA program purposes authorized under this chapter.
SEC. 13.SEC. 14.Section 99314.2 of the Public Utilities Code is amended to read:99314.2.(a)For purposes of this section, the following terms have the following meanings:
(1)The Southern California Regional Rail Authority or the authority is that joint powers authority described in Section 14072 of the Government Code and includes any additional agencies that may join the authority under Section 14072.2 of that code.
(2)Qualifying revenue means qualifying revenue, as defined in subdivision (b) of Section 99314, that is derived from operating as a member agency of the authority.
(b)The Southern California Regional Rail Authority shall report to the Controller, on an annual basis, the ratio that the qualifying revenue of each member agency of the authority during the prior fiscal year bears to the total qualifying revenue of the authority during that fiscal year.
(c)(1)From funds made available pursuant to subdivision (b) of Section 99312 and subdivision (a) of Section 99312.1, the Controller shall allocate to the transportation planning agency county transportation commission an amount for each member agency of the authority that is based on the ratio provided under subdivision (b), for allocation pursuant to subdivision (c) of Section 99314.3.
(2)The allocation set forth in paragraph (1) shall be in addition to any other allocation provided under this article.
(3)Allocations made under this section shall be used only for STA program purposes authorized under this chapter.
SEC. 14.SEC. 15.Section 99314.3 of the Public Utilities Code is amended to read:99314.3.(a)The amount allocated to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board pursuant to Section 99314 shall be allocated by those entities to the STA-eligible operators in the area of their respective jurisdictions.
(b)The amount allocated by a transportation planning agency and county transportation commission, and the board to each STA-eligible operator pursuant to Section 99314 shall be based on the ratio that the operators qualifying revenue bears to the total qualifying revenue of all STA-eligible operators within the area of jurisdiction of the transportation planning agency agency, county transportation commission, or board. The Controller shall publish the share of funds corresponding to each STA-eligible operator as well as the total amount to be allocated to each transportation planning agency agency, county transportation commission, or board.
(c)The amount allocated by the Controller to a transportation planning agency corresponding to the parties to the cooperative service agreement of the Altamont Corridor Express and the member agencies of the Southern California Regional Rail Authority, pursuant to Section 99314, shall be allocated by the transportation planning agency in the jurisdiction of the parties to the cooperative services agreement or the member agencys area for STA program purposes authorized in this chapter. The allocation shall be based on the ratio that the qualifying revenues bear to the qualifying revenue of all STA-eligible operators.
(d)For purposes of subdivision (a), the City and County of San Francisco with respect to its municipal railway system, the Alameda-Contra Costa Transit District, and the San Francisco Bay Area Rapid Transit District shall be considered one operator. The amount allocated to them as one operator shall be apportioned to each of them based on the ratio of its revenue to the sum of their revenues, excluding from the determination of that ratio the amount allocated to each of them pursuant to Section 29142.2.
SEC. 15.SEC. 16.Section 99314.4 of the Public Utilities Code is amended to read:99314.4.(a)An operator in an urbanized area having a population of less than 200,000 persons may elect to participate in the funding exchange program authorized by this subdivision. An operator electing to participate in the funding exchange program shall give notice to the director and shall indicate the amount of funds which it wants allocated for the funding exchange program.
From funds that would otherwise be allocated to an operator under the State Transit Assistance Program, an amount so designated by the participating operator shall be allocated to the department for transfer pursuant to an agreement between the department and the State of Arizona whereby California can receive federal mass transportation funds originally apportioned to the State of Arizona.
The department shall allocate the federal mass transportation funds so received to each participating operator in the same proportion as the operator contributed to the funding exchange program. Funds so received shall be used only for the purposes of the State Transit Assistance Program and are subject to all statutes and rules and regulations applicable to funds allocated pursuant to Sections 99313 and 99314.
The Legislature finds and declares that the exchange of state funds for federal mass transportation funds authorized by this section will result in a net increase in the total amount of funds to be available to the participating operators.
(b)A transportation planning Agency agency or county transportation commission, or the San Diego Metropolitan Transit Development Board may authorize a STA-eligible operator under its jurisdiction to exchange funds allocated to it pursuant to Section 99314 for funds made available pursuant to Section 99231. Any funds allocated pursuant to Section 99314 that are exchanged pursuant to this section shall only be available to other STA-eligible operators and shall be used for STA program purposes authorized by this chapter and are subject to all statutes and rules and regulations applicable to funds allocated pursuant to Section 99314. Exchanges pursuant to this section shall be on a dollar-for-dollar basis.
SEC. 16.SEC. 17.Section 99314.5 of the Public Utilities Code is amended to read:99314.5.(a)It is the intent of the Legislature that, in allocating the funds available pursuant to Section 99313, the transportation planning agencies and county transportation commissions, and the San Diego Metropolitan Transit Development Board give priority consideration to offsetting reductions in federal operating assistance and the unanticipated increase in the cost of fuel, to enhancing existing public transportation services, and to meeting high-priority regional, countywide, or areawide public transportation needs.
(b)Nothing in this section shall be construed to prohibit, or limit the ability of, a public transit operator to do the following:
(1)Contract with common carriers of persons operating under a franchise or license.
(2)Employ part-time drivers.
SEC. 17.SEC. 18.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 or 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.
Except as provided in Sections 99311 and 99311.5, and Sections 6051.8 and 6201.8 of the Revenue and Taxation Code, and except as otherwise provided in subdivisions (d) and (e), the funds in the account shall be made available for the following purposes:
(a)Fifty percent for purposes of Section 99315, subject to appropriation by the Legislature.
(b)To the Controller, 25 percent for allocation to transportation planning agencies, county transportation commissions, agencies and the San Diego Metropolitan Transit Development Board pursuant to Section 99314. Commencing with the 201112 fiscal year, these 99314, for the purposes of the State Transit Assistance program. These funds are hereby continuously appropriated for purposes of this subdivision. these purposes.
(c)To the Controller, 25 percent for allocation to transportation agencies, county transportation commissions, planning agencies and the San Diego Metropolitan Transit Development Board for purposes of pursuant to Section 99313. Commencing with the 201112 fiscal year, these 99313, for the purposes of the State Transit Assistance program. These funds are hereby continuously appropriated for purposes of this subdivision. these purposes.
(d)(1)For the 200910 fiscal year, notwithstanding any other provision of this section or any other provision of law, the sum of four hundred million dollars ($400,000,000) is hereby appropriated from the account to the Controller for immediate allocation pursuant to paragraph (2). These funds are intended to cover the two-year period of the 200910 and 201011 fiscal years. The remaining funds in the account subject to this section shall be available for the purposes of Section 99315, subject to appropriation by the Legislature.(2)(A)Fifty percent of the amount appropriated to the Controller pursuant to paragraph (1) shall be allocated to transportation planning agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board pursuant to Section 99314.(B)Fifty percent of the amount appropriated to the Controller pursuant to paragraph (1) shall be allocated to transportation planning agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board pursuant to Section 99313.(e)For the 201011 fiscal year, notwithstanding any other provision of this section or any other provision of law, the funds in the account subject to this section shall be made available only for purposes of Section 99315, subject to appropriation by the Legislature.SEC. 2.Section 99312.1 of the Public Utilities Code is amended to read:99312.1.Revenues transferred to the Public Transportation Account pursuant to Sections 6051.8 and 6201.8 of the Revenue and Taxation Code are hereby continuously appropriated to the Controller for allocation as follows:
(a)Fifty percent for allocation to transportation planning agencies, county transportation commissions, agencies, and the San Diego Metropolitan Transit Development Board pursuant to Section 99314. 99314, for the purposes of the State Transit Assistance program.
(b)Fifty percent for allocation to transportation planning agencies, county transportation commissions, agencies and the San Diego Metropolitan Transit Development Board for purposes of Section 99313. pursuant to Section 99313, for the purposes of the State Transit Assistance program.
For purposes of this chapter, the revenues allocated pursuant to this section shall be subject to the same requirements as revenues allocated pursuant to subdivisions (b) and (c), as applicable, of Section 99312.
SEC. 3.Section 99312.2 of the Public Utilities Code is repealed.99312.2.Notwithstanding any other provision of law, twenty-three million dollars ($23,000,000) is hereby appropriated from the Public Transportation Account to the Controller for allocation to local agencies for the 201112 fiscal year, with eleven million five hundred thousand dollars ($11,500,000) to be allocated pursuant to Section 99313 and eleven million five hundred thousand dollars ($11,500,000) to be allocated pursuant to Section 99314. For purposes of this chapter, the revenues allocated pursuant to this section shall be subject to the same requirements as revenues allocated pursuant to subdivisions (b) and (c), as applicable, of Section 99312.SEC. 4.Section 99312.2 is added to the Public Utilities Code, to read:99312.2.(a)The State Transit Assistance program, also known as the STA program, which provides for allocations of funds made available from the Public Transportation Account pursuant to Sections 99313 and 99314, and which is governed by Sections 99312 to 99314.8, inclusive, is hereby continued in existence. The purpose of the STA program is to provide a source of state funding to eligible public transportation operators and other transportation agencies in order to support their local and regional transit operating and capital needs.
(b)For purposes of the STA program, the following terms shall have the following meanings:
(1)Transportation planning agency has the meaning as defined in Section 99214.
(2)Public transportation operator has the same meaning as operator, as defined in Section 99210, as long as that operator operates a public transportation system, as defined in Section 99211.
(3)STA-eligible operator means a public transportation operator eligible to claim local transportation funds under either Article 4 (commencing with Section 99260) or Article 8 (commencing with Section 99400), or under both articles.
(c)The only entities eligible to receive direct allocations from the Controller under Sections 99313 and 99314 shall be transportation planning agencies and the San Diego Metropolitan Transit Development Board.
(d)Only STA-eligible operators shall be eligible to receive STA program funds allocated by transportation planning agencies and the San Diego Metropolitan Transit Development Board pursuant to Section 99314. A STA-eligible operator, at its discretion, may further suballocate funds it receives pursuant to Section 99314 to an entity operating local community transit services that is eligible to claim local transportation funds pursuant to Article 4.5 (commencing with Section 99275) but that is otherwise ineligible to directly receive funds allocated pursuant to Section 99314.
(e)An entity operating community transit services pursuant to Article 4.5 (commencing with Section 99275) may be allocated funds pursuant to Section 99313 as a subrecipient at the discretion of the transportation planning agency or the San Diego Metropolitan Transit Development Board.
(f)The Los Angeles County Metropolitan Transportation Authority, which is both a transportation planning agency for purposes of Sections 99313 and 99314, and an STA-eligible operator for purposes of Section 99314, may incorporate into its report pursuant to Section 99243 any operating costs for local community transit service under contract with the authority, including service provided by a consolidated transportation service agency pursuant to Section 99204.5 or by operators eligible to expend local transportation funds only under Article 4.5 (commencing with Section 99275).
SEC. 5.Section 99312.7 of the Public Utilities Code is amended to read:99312.7.(a)Not later than each January 31st, for purposes of the State Transit Assistance program, the Controller shall compute, publish, and send to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board, Board an estimate of the amount of funds from subdivisions (b) and (c) of Section 99312 and Section 99312.1 to be allocated to it during the next fiscal year pursuant to Sections 99313 and 99314.
(b)Not later than each August 1st, on the basis of the amount appropriated in the Budget Act amounts continuously appropriated pursuant to subdivisions (b) and (c) of Section 99312 and Section 99312.1 for the applicable fiscal year for purposes of Sections 99313 and 99314, the Controller shall compute, publish, and send to each of the entities transportation planning agency and the San Diego Metropolitan Transit Development Board an estimate of the amount of funds to be allocated to it during the fiscal year.
(c)No notification shall be required for a fiscal year if funding for Sections 99313 and 99314 allocations is suspended pursuant to subdivision (f) of Section 99312 or any other provision of law.(c)The Controller, along with the actions taken pursuant to subdivisions (a) and (b), with respect to the allocations under Section 99314, shall also compute, publish, and send to each transportation planning agency and the San Diego Metropolitan Transit Development Board the share of funds corresponding to each STA-eligible operator within the jurisdiction of each agency and board.
SEC. 6.Section 99313 of the Public Utilities Code is amended to read:99313.(a)From the funds made available pursuant to subdivision (c) of Section 99312 and subdivision (b) of Section 99312.1, an amount shall be allocated by the Controller to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board, Board based on the ratio of the population of the area under its jurisdiction to the total population of the state. The Controller shall base these allocations on a report prepared by the Department of Transportation. On or before June 30 of each year, the Department of Transportation shall prepare and submit to the Controller a report detailing the population of each transportation planning agency and the San Diego Metropolitan Transit Development Board. For the purpose of this report, the Department of Transportation shall use the most recent population estimates of the Department of Finance and the information provided pursuant to subdivision (b).
(b)To assist the Department of Transportation in determining the populations of the San Diego Metropolitan Transit Development Board, the San Diego Association of Governments, the El Dorado County Transportation Commission, the Placer County Transportation Planning Agency, and the Tahoe Regional Planning Agency for the purpose of subdivision (c) of Section 99312 and subdivision (b) of Section 99312.1, each of those entities, on or before June 1st of each year, shall provide the department with the population of its respective jurisdiction using the most recent population estimates of the Department of Finance.
SEC. 7.Section 99313.1 of the Public Utilities Code is amended to read:99313.1.(a)A transportation planning agency, a county transportation commission, or the San Diego Metropolitan Transit Development Board may transfer any funds that it receives pursuant to Section 99313 to another transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board. Board, as applicable. Any funds transferred pursuant to this section shall be used only for the purposes authorized by this chapter and are subject to all statutes and rules and regulations applicable to funds allocated pursuant to Section 99313.
(b)If one transfer has been completed between a transportation planning agency, a county transportation commission, or the San Diego Metropolitan Transit Development Board, pursuant to this section, no other transfer may be made between the same parties.
(c)In the event of a transfer of funds to the Los Angeles County Metropolitan Transportation Authority pursuant to this section, the amount of that transfer, if any, which exceeds the amount of funds transferred at that time by the Los Angeles County Metropolitan Transportation Authority to the transferring transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board, may not be used for the purpose of funding an exclusive public mass transit guideway system project. The Los Angeles County Metropolitan Transportation Authority shall report to the Senate Committee on Transportation and Housing and the Assembly Committee on Transportation on the expenditure of any funds received by it pursuant to a transfer made pursuant to this section.
SEC. 8.Section 99313.3 of the Public Utilities Code is amended to read:99313.3.The amount received by each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board, pursuant to Sections 99313 and 99314, shall be allocated for public transportation purposes, including community transit services. purposes. Pursuant to subdivision (d) of Section 99312.2, funds received pursuant to Section 99314 may be allocated only to STA-eligible operators. Funds received pursuant to Section 99314 may be expended by STA-eligible operators for community transit services pursuant to Section 99275. 99275, including payments or allocations to entities eligible to claim local transportation funds under Article 4.5 (commencing with Section 99275). Notwithstanding anything to the contrary in this section, Section 99285 shall continue to apply in the County of Los Angeles.
SEC. 9.Section 99313.6 of the Public Utilities Code is amended to read:99313.6.(a)Except as provided in subdivision (b), each Each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board, Board shall create a state transit assistance fund and deposit therein the funds allocated to it pursuant to Sections 99313 and 99314 for 99314. The funds attributable to Section 99313 shall be allocated for allocations to operators, and to claimants public transportation purposes, including for the purposes specified in community transit services pursuant to Section 99275 and in subdivisions (b), (c), (d), and (e) of Section 99400, within the area on which its allocation was determined. 99275. Pursuant to subdivision (d) of Section 99312.2, the funds attributable to Section 99314 shall be allocated only to STA-eligible operators for public transportation purposes.
(b)From funds allocated to it pursuant to Sections 99313 and 99314, the Los Angeles County Metropolitan Transportation Authority may allocate funds to itself for the planning, design, and construction of an exclusive public mass transit guideway system.
(c)An allocation of funds from a state transit assistance fund for a transit capital project may be used for the payment of the principal of, and interest on, equipment trust certificates, bonded or other indebtedness, or in accomplishment of a defeasance of any outstanding revenue bond indenture issued for that project.
(d)From funds allocated to it pursuant to Section 99313, the Metropolitan Transportation Commission may allocate funds to itself for projects to achieve regional transit coordination objectives.
(e)From funds allocated to the Metropolitan Transportation Commission pursuant to Section 99313, upon a request of the Solano Transportation Authority, the commission may allocate an amount of funds to the authority for public transportation purposes, including countywide transit planning and coordination relative to Solano County.
SEC. 10.Section 99313.7 of the Public Utilities Code is amended to read:99313.7.A public agency authorized to file claims with the transportation planning agency and expend funds pursuant to Section 99234.5, 99234.7, or 99234.9 may also file claims, receive allocations, allocations and expend state transit assistance STA program funds made available pursuant to Sections 99313 and 99314. Section 99313.
SEC. 11.Section 99314 of the Public Utilities Code is amended to read:99314.(a)From funds made available pursuant to subdivision (b) of Section 99312 and subdivision (a) of Section 99312.1, an amount shall be allocated by the Controller to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board. Board. The allocation shall include an amount corresponding to each of the member agencies of the Altamont Commuter Express Authority and the Southern California Regional Rail Authority. The amount of funds allocated shall be based on the ratio of the total revenue of all the operators and the member agencies of the Altamont Commuter Express Authority and the Southern California Regional Rail Authority in the area under their respective jurisdictions during the prior fiscal year to the total revenue of all the operators in the state and the member agencies of the Altamont Commuter Express Authority and the member agencies of the Southern California Regional Rail Authority during the prior fiscal year. the STA-eligible operators within the jurisdiction of each transportation planning agency and the San Diego Metropolitan Transit Development Board. The amount allocated to a transportation planning agency and the San Diego Metropolitan Transit Development Board shall be based on the ratio that the total qualifying revenue of all STA-eligible operators in the area under jurisdiction of the agency or board bears to the total qualifying revenue of all STA-eligible operators in the state.
(b)For purposes of this section and Section 99314.3, revenue qualifying revenue means fare revenues revenues, including fares generated for community transit services under contract with the STA-eligible operator, and any other funds used by the operator for its transit operation, and the revenue that is derived from operating as a member of the authority pursuant to Section 99314.1, except federal and state funds which may only be used for transportation purposes and funds allocated pursuant to Section 99233. The revenue amount for each operator shall be determined from the annual report submitted to the Legislature by the Controller pursuant to Section 99243.5. The revenue amount for each member agency of the Altamont Commuter Express Authority and the Southern California Regional Rail Authority shall be determined by the revenues reported to the Controller by the respective authorities in accordance to subdivision (b) of Section 99314.1 and subdivision (b) of Section 99314.2, respectively. in the delivery of transit service, except federal and state funds. The revenue amount for each STA-eligible operator shall be determined from the annual report submitted to the Controller pursuant to Section 99243. Revenue used for capital expenditures or depreciation shall not constitute qualifying revenue. The revenue share for the Altamont Corridor Express and the Southern California Regional Rail Authority shall be determined by the qualifying revenues reported to the Controller in accordance with subdivision (b) of Section 99314.1 and subdivision (b) of Section 99314.2, respectively. A STA-eligible operator has qualifying revenue beginning on the date when it commences revenue passenger service.
(c)For the purposes of this section, any reference to the Altamont Commuter Express Authority shall be construed to include a reference to any entity that is a successor to the authority.(c)The Controller shall determine allocation amounts pursuant to this section based on the qualifying revenue reported two years prior to the fiscal year in which the funds are allocated.
(d)Qualifying revenue for a given fiscal year shall not exceed a STA-eligible operators annual operating expenses, as reported to the Controller. Operating expenses include, but are not limited to, the direct cost of operating transit service, payments by the STA-eligible operator for community transit service provided by entities that are not eligible to receive funds directly pursuant to subdivision (d) of Section 99312.2, administrative costs, and routine maintenance. Operating expenses do not include transfers from an operating budget to a capital account.
(e)For the purpose of allocating funds pursuant to this section, Section 99314.1, and 99314.2, STA-eligible operator includes the Altamont Corridor Express and the Southern California Regional Rail Authority. The revenue share for these operators shall be based on the qualifying revenue used to operate the systems consistent with subdivision (b), including fares and the amounts contributed by the parties to the cooperative service agreement in the case of the Altamont Corridor Express, and by the member agencies in the case of the Southern California Regional Rail Authority.
(f)Funds allocated by the Controller to a transportation planning agency or the San Diego Metropolitan Transit Development Board pursuant to this section shall be allocated by the agency or board to STA-eligible operators pursuant to Section 99314.3.
(g)A STA-eligible operator receiving funds under this section shall submit to the Controller an audited Transit Operators Financial Transaction Report within 180 days following the end of each fiscal year. Submission of the report is a requirement to receive funds under this section. However, the Controller may exempt STA-eligible operators with revenue of less than ten million dollars ($10,000,000) in annual revenues from the audit requirement.
SEC. 12.Section 99314.1 of the Public Utilities Code is amended to read:99314.1.(a)For purposes of this section, the following terms have the following meanings:
(1)The Altamont Commuter Express Authority Corridor Express or the authority is the joint powers agency duly formed pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, by and between the Alameda Congestion Management Agency, the Santa Clara Valley Transportation Authority, and the San Joaquin Regional Rail Commission. Any reference to the Altamont Commuter Express Authority Corridor Express or the authority shall be construed to include a reference to any entity that is a successor to the authority.
(2)RevenueQualifying revenue means qualifying revenue, as defined in subdivision (b) of Section 99314, that is derived from operating as a member agency of the authority.
(b)The Altamont Commuter Express Authority authority shall report to the Controller, for each fiscal year, the ratio that the qualifying revenue of each member agency of the authority during the prior fiscal year bears to the total qualifying revenue of the authority during that fiscal year.
(c)(1)From funds made available pursuant to subdivision (b) of Section 99312, 99312 and subdivision (a) of Section 99312.1, the Controller shall allocate to the transportation planning agency an amount for each member agency of the authority an amount that is based on the ratio provided under subdivision (b).(b), for allocation pursuant to subdivision (c) of Section 99314.3.
(2)The allocation set forth in paragraph (1) shall be in addition to any other allocation provided under this article.
(3)Allocations made under this section shall be used only for STA program purposes authorized under this chapter.
SEC. 13.Section 99314.2 of the Public Utilities Code is amended to read:99314.2.(a)For purposes of this section, the following terms have the following meanings:
(1)The Southern California Regional Rail Authority or the authority is that joint powers authority described in Section 14072 of the Government Code and includes any additional agencies that may join the authority under Section 14072.2 of that code.
(2)RevenueQualifying revenue means qualifying revenue, as defined in subdivision (b) of Section 99314, that is derived from operating as a member agency of the authority.
(b)The Southern California Regional Rail Authority shall report to the Controller, on an annual basis, the ratio that the qualifying revenue of each member agency of the authority during the prior fiscal year bears to the total qualifying revenue of the authority during that fiscal year.
(c)(1)From funds made available pursuant to subdivision (b) of Section 99312, 99312 and subdivision (a) of Section 99312.1, the Controller shall allocate to the transportation planning agency an amount for each member agency of the authority an amount that is based on the ratio provided under subdivision (b). (b), for allocation pursuant to subdivision (c) of Section 99314.3.
(2)The allocation set forth in paragraph (1) shall be in addition to any other allocation provided under this article.
(3)Allocations made under this section shall be used only for STA program purposes authorized under this chapter.
SEC. 14.Section 99314.3 of the Public Utilities Code is amended to read:99314.3.(a)The amount received by allocated to each transportation planning agency and county transportation commission, and the San Diego Metropolitan Transit Development Board, Board pursuant to Section 99314 shall be allocated by those entities to the operators STA-eligible operators in the area of its jurisdiction. their respective jurisdictions.
(b)The amount allocated by a transportation planning agency and the board to each STA-eligible operator pursuant to Section 99314 shall be based on the ratio that the operators qualifying revenue bears to the total qualifying revenue of all STA-eligible operators within the area of jurisdiction of the transportation planning agency or board. The Controller shall publish the share of funds corresponding to each STA-eligible operator as well as the total amount to be allocated to each transportation planning agency or board.
(b)(c)The amount of funds allocated by the Controller to a transportation planning agency corresponding to each of the member agencies the parties to the cooperative service agreement of the Altamont Commuter Corridor Express Authority and the member agencies of the Southern California Regional Rail Authority, pursuant to Section 99314, shall be allocated by the transportation planning agency having jurisdiction over the member agencys area, in the jurisdiction of the parties to the cooperative services agreement or the member agencys area for STA program purposes authorized in this chapter. The allocation shall be based on the ratio of that the qualifying revenues of each of the member agencies and of all the operators during the prior fiscal year within the area of jurisdiction of the allocating agency, commission, or board as the case may be. bear to the qualifying revenue of all STA-eligible operators.
(c)The amount allocated to each operator pursuant to this section shall be based on the ratio of its revenue of all the operations and the member agencies of the Altamont Commuter Express Authority and the member agencies of the Southern California Rail Authority during the prior fiscal year to the total revenue of all the operators during the prior fiscal year within the area of jurisdiction of the allocating agency, commission, or board, as the case may be.(d)For purposes of subdivision (a), the City and County of San Francisco with respect to its municipal railway system, the Alameda-Contra Costa Transit District, and the San Francisco Bay Area Rapid Transit District shall be considered one operator. The amount allocated to them as one operator shall be apportioned to each of them based on the ratio of its revenue to the sum of their revenues, excluding from the determination of that ratio the amount allocated to each of them pursuant to Section 29142.2.
SEC. 15.Section 99314.4 of the Public Utilities Code is amended to read:99314.4.(a)An operator in an urbanized area having a population of less than 200,000 persons may elect to participate in the funding exchange program authorized by this subdivision. An operator electing to participate in the funding exchange program shall give notice to the director and shall indicate the amount of funds which it wants allocated for the funding exchange program.
From funds that would otherwise be allocated to an operator pursuant to Sections 99313.3, 99314, and 99314.3, under the State Transit Assistance Program, an amount so designated by the participating operator shall be allocated to the department for transfer pursuant to an agreement between the department and the State of Arizona whereby California can receive federal mass transportation funds originally apportioned to the State of Arizona.
The department shall allocate the federal mass transportation funds so received to each participating operator in the same proportion as the operator contributed to the funding exchange program. Funds so received shall be used only for the purposes authorized by this chapter of the State Transit Assistance Program and are subject to all statutes and rules and regulations applicable to funds allocated pursuant to Sections 99313 and 99314.
The Legislature finds and declares that the exchange of state funds for federal mass transportation funds authorized by this section will result in a net increase in the total amount of funds to be available to the participating operators.
(b)A transportation planning agency, county transportation commission, or transit development board Agency or the San Diego Metropolitan Transit Development Board may authorize an operator a STA-eligible operator under its jurisdiction to exchange funds allocated to it pursuant to Section 99314.3 99314 for funds made available pursuant to Section 99231. Any funds allocated pursuant to Section 99314.3 99314 that are exchanged pursuant to this subdivision section shall only be available to other operators STA-eligible operators and shall be used for the STA program purposes authorized by this chapter and are subject to all statutes and rules and regulations applicable to funds allocated pursuant to Section 99314.3. 99314. Exchanges pursuant to this subdivision section shall be on a dollar-for-dollar basis.
SEC. 16.Section 99314.5 of the Public Utilities Code is amended to read:99314.5.(a)No funds allocated pursuant to Section 99313.3 or 99314.3 shall be allocated to an operator unless it is eligible for allocations under Article 4 (commencing with Section 99260), without considering any funds to be allocated to it pursuant to those sections, or it is in a county in which funds may be allocated for purposes specified in Section 99400.(b)No funds allocated pursuant to Section 99313.3 shall be allocated to a city or county for the purposes specified in subdivisions (b), (c), (d), and (e) of Section 99400 unless it is eligible for allocations under Article 8 (commencing with Section 99400) for those purposes, without considering any funds to be allocated to it pursuant to that section.(c)99314.5.(a)It is the intent of the Legislature that, in allocating the funds, funds available pursuant to Section 99313, the transportation planning agencies and the county transportation commissions, and the San Diego Metropolitan Transit Development Board, Board give priority consideration to claims to offset offsetting reductions in federal operating assistance and the unanticipated increase in the cost of fuel, to enhance enhancing existing public transportation services, and to meet meeting high-priority regional, countywide, or areawide public transportation needs.
(d)No funds allocated pursuant to Section 99313.3 or 99314.3 shall be allocated to a claimant for the purposes specified in Section 99275 unless it is eligible for allocation under Article 4.5 (commencing with Section 99275) for those purposes, without considering any funds to be allocated to it pursuant to those sections.(e)(b)Nothing in this section shall be construed to prohibit, or limit the ability of, a public transit operator to do the following:
(1)Contract with common carriers of persons operating under a franchise or license.
(2)Employ part-time drivers.
SEC. 17.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, agency 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.
|
Date
|
Status
|
|---|---|
| Jul 21, 2017 | Chaptered by Secretary of State - Chapter 86, Statutes of 2017. |
| Jul 21, 2017 | Approved by the Governor. |
| Jul 12, 2017 | Enrolled and presented to the Governor at 11:30 a.m. |
| Jul 6, 2017 | Urgency clause adopted. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 76. Noes 0. Page 2468.). |
| Jul 3, 2017 | In Assembly. Concurrence in Senate amendments pending. May be considered on or after July 5 pursuant to Assembly Rule 77. |
| Jul 3, 2017 | Read third time. Urgency clause adopted. Passed. Ordered to the Assembly. |
| Jun 27, 2017 | Read second time. Ordered to Consent Calendar. |
| Jun 26, 2017 | From committee: Be placed on second reading file pursuant to Senate Rule 28.8 and ordered to consent calendar. |
| Jun 20, 2017 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on APPR. |
| Jun 6, 2017 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 13. Noes 0.) (June 6). Re-referred to Com. on APPR. |
| May 31, 2017 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on T. & H. |
| May 18, 2017 | Referred to Com. on T. & H. |
| May 4, 2017 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 4, 2017 | Read third time. Passed. Ordered to the Senate. (Ayes 76. Noes 0. Page 1393.) |
| Apr 27, 2017 | Read second time. Ordered to Consent Calendar. |
| Apr 26, 2017 | From committee: Do pass. To Consent Calendar. (Ayes 16. Noes 0.) (April 26). |
| Apr 18, 2017 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 13. Noes 0.) (April 17). Re-referred to Com. on APPR. |
| Mar 29, 2017 | Re-referred to Com. on TRANS. |
| Mar 28, 2017 | From committee chair, with author's amendments: Amend, and re-refer to Com. on TRANS. Read second time and amended. |
| Mar 9, 2017 | Referred to Com. on TRANS. |
| Feb 19, 2017 | From printer. May be heard in committee March 21. |
| Feb 17, 2017 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Jul 6, 2017 | AB 1113 BLOOM Concurrence - Urgency Added | Assembly Floor |
Passed |
|
| Jul 3, 2017 | Consent Calendar 2nd AB1113 Bloom Urgency Clause | Senate Floor |
Passed |
|
| Jun 6, 2017 | Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar | Senate Standing Committee on Transportation and Housing |
Passed |
|
| May 4, 2017 | AB 1113 BLOOM Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
|
| Apr 26, 2017 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 17, 2017 | Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar | Assembly Standing Committee on Transportation |
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 Association of Councils of Government | ** Support | Jun 30, 2017 |
| California Transit Association | ** Support | Jun 30, 2017 |
| Foothill Transit | ** Support | Jun 30, 2017 |
| Livermore Amador Valley Transit Authority | ** Support | Jun 30, 2017 |
| Metropolitan Transportation Commission | ** Support | Jun 30, 2017 |
| Monterey-Salinas Transit | ** Support | Jun 30, 2017 |
| Orange County Transportation Authority | ** Support | Jun 30, 2017 |
| San Francisco Bay Area Rapid Transit District | ** Support | Jun 30, 2017 |
| Ventura County Transportation Commission | ** Support | Jun 30, 2017 |
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 1113
Author:(Bloom)
As Amended Ver:June 20, 2017
2/3 vote. Urgency
ASSEMBLY: | 76-0 | (May 4, 2017) | SENATE: | 33-0 | (July 3, 2017) |
Original Committee Reference: TRANS.
SUMMARY: Revises and recasts the provisions governing the State Transit Assistance (STA) program.
The Senate amendments:
- Further defines the process for a regional transportation planning agency (RTPA) with jurisdiction over a transit operator to verify for the State Controller's Office (SCO) that the transit operator is eligible for funding under the STA program.
- Make technical, non-substantive changes to reflect the passage of SB 1 (Beall), Chapter 5, Statutes of 2017.
- Make technical changes to provisions added by the SB 838 (Budget and Fiscal Review Committee), Chapter 339, Statutes of 2016, to ensure this bill applies to the 2017-18 fiscal year.
- Add an urgency clause.
EXISTING LAW:
- Provides funding for public transportation through the Transportation Development Act (TDA), including STA, which is derived from the statewide sales tax on diesel fuel.
- Requires STA funds be allocated by the SCO by formula with 50% being allocated according to population and 50% being allocated according to transit operator revenues from the prior fiscal year.
- Requires the SCO to allocate funds to specified RTPAs for public transportation purposes.
- Requires the SCO to design and adopt a uniform system of accounts and records under which operators, as defined, prepare and submit annual reports of their operation.
- Requires the annual report to be submitted within 90 days of the end of the fiscal year.
AS PASSED BY THE ASSEMBLY, this bill:
- Changed the timeframe for transit operators to submit annual reports to the State Controller's Office (SCO) to within seven months after the end of the fiscal year, and required the reports contain underlying data from audited financial statements.
- Required the RTPA with jurisdiction over a transit operator to verify the operator is eligible for funding under the STA program prior to the operator submitting its report to SCO, and requires SCO reflect the verification on the operator's report.
- Recast current SCO estimations and reports to RTPAs for current and future fiscal years of STA funding and the share of funds for each STA-eligible operator, including requiring the SCO to publish the reports.
- Updated definitions for the STA program, including public transportation operator and STA- eligible operator, and provides that only STA-eligible operators are eligible to receive an allocation from the portion of program funds based on transit operator revenues. Further authorized an STA-eligible operator to suballocate funds it receives to community transit service providers. Clarified that funding allocated to RTPAs based on population can also fund community transit services.
- Required the Department of Transportation (Caltrans) to prepare a report for the SCO by June 30th each year detailing the population of each RTPA area using the most recent population estimates of the Department of Finance.
- Updated the SCO computing requirements for funding allocation amounts for RTPAs for revenue-based program funds to be calculated based on the STA-eligible operators in each jurisdiction, and required those STA-eligible operators receive a proportional share of the revenue-based program funds based on the qualifying revenues of that operator.
- Clarified the definition of qualifying revenues to include fares generated for community transit services and not to include capital expenditures or depreciation.
- Clarified that qualifying revenue shall not exceed a STA-eligible operator's annual operating expenses. Defined operating expenses to include the direct cost of operating transit service, payments for community transit services, administrative costs, and routine maintenance.
- Recast provisions relating to the Altamont Corridor Express and the Southern California Regional Rail Authority and defining them as STA-eligible operators for purposes of allocating funds from the revenue-based program funds.
- Made various other conforming changes and deletes obsolete provisions.
FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS: The TDA provides two major sources of funding for public transportation: the Local Transportation Fund (LTF) and the STA. These funds are for the development and support of public transportation needs that exist in California. STA funds are allocated to areas of each RTPA based on population and transit performance. STA funds are generated by the sales tax on diesel fuel, and the amount of money available for transit agencies varies from year to year based on the ups and downs of diesel prices. The SCO allocates STA funds to the 26 RTPAs across the state as follows:
- Fifty percent of STA funds are allocated based on their share of the population; and,
- Fifty percent of STA funds are allocated based on transit operators' revenues.
The RTPAs sub-allocate the funds to the transit operators. Operators have full discretion over the use of STA funds apportioned to them. Funds may be used by transit operators for both capital projects and transit operations. For many smaller transit agencies, STA and TDA are their main sources of operating funds.
In the 2015-16 Fiscal Year, the SCO reinterpreted the statutes that define how STA funds are distributed and implemented a significant change in the way STA program funds were allocated. This change went into effect the first quarter of 2015-16 for payments which were issued in January of 2016. The change altered the way STA funds have been distributed for decades. The long held understanding of eligible STA program funding recipients had been an agency providing transportation service to the general public for which as fare is collected. The reinterpretation included new entities into the STA funding pot, including many that do not operate transit services such as the Transbay Joint Powers Authority. Other examples of new entities included providers of community transit services, or specialized providers, that are not open to general public. Although these providers had not previously received any direct STA allocation, they have received STA funding, as sub-recipients at the discretion of the RTPA or an STA-eligible operator.
To facilitate the development of a long term solution, last year the Legislature included language in the state budget, SB 838 (Budget and Fiscal Review Committee), Chapter 339, Statutes of 2016, to require the SCO to use the long standing methodology for the distribution of funds through the 2017-18 Fiscal Year. The California Transit Association (CTA) then embarked on a process of convening stakeholders to develop a policy proposal to give clarity to the eligibilities and requirements of the STA program, which is reflected in this bill.
According to the author, the statutes governing the STA program contain numerous ambiguities. While there was a longstanding recognition of how the program was to operate, these ambiguities had unintended consequences when they recently led to a reinterpretation of which entities are eligible to receive STA program funds. This bill is intended to clear up all of those ambiguities and allow the program to continue operating as it was designed to.
In writing as the sponsors of the bill, CTA states they believe this bill adds clarity and needed specificity to the statutes, ensuring future administrators of the STA program will understand today's legislative intent.
Also writing in in support of this bill, the Orange County Transportation Authority (OCTA) states that recognizing that STA is the only existing source of state transit funding that can be used for both operations and capital purposes, it is important that the safeguards proposed by this bill be implemented to ensure that STA funds are only expended on services that they were intended to support. Further they state that if implemented, this bill will ensure more accurate and manageable revenue reporting practices under the program going forward.
With the recent passage SB 1 (Beall), Chapter 5, Statutes of 2017, funding for the STA program is estimated to grow by roughly 130%. It is important the STA program be clearly defined for state managers, RTPAs and transit providers. Additionally, accurate and timely reporting is critical to the oversight of public transit in the state.
Analysis Prepared by: Melissa White / TRANS. / (916) 319-2093 FN: 0001065
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
CONSENT
Bill No: AB 1113
:
SENATE TRANS. & HOUSING COMMITTEE: 13-0, 6/6/17
AYES: Beall, Cannella, Allen, Atkins, Bates, Gaines, McGuire, Mendoza, Morrell, Roth, Skinner, Wieckowski, Wiener
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 76-0, 5/4/17 (Consent) - See last page for vote
SOURCE: California Transit Association
DIGEST:
This bill revises and recasts the provisions governing the State Transit Assistance (STA) program.
Existing law:
- Provides funding for public transportation through the Transportation Development Act (TDA), including STA, which is derived from the statewide sales tax on diesel fuel.
- Requires STA funds be allocated by the State Controller’s Office (SCO) by formula with 50% being allocated according to population and 50% being allocated according to transit operator revenues from the prior fiscal year.
- Requires the SCO to allocate funds to specified Regional Transportation Planning Agencies (RTPA) for public transportation purposes.
- Requires the SCO to design and adopt a uniform system of accounts and records under which operators, as defined, prepare and submit annual reports of their operation.
- Requires the annual report to be submitted within 90 days of the end of the fiscal year.
This bill:
- Changes the timeframe for transit operators to submit annual reports to the SCO to within seven months after the end of the fiscal year, and requires the reports to contain underlying data from audited financial statements.
- Requires the RTPA with jurisdiction over a transit operator to verify the operator is eligible for funding under the STA program prior to the operator submitting its report to the SCO, and requires the SCO reflect the verification on the operator’s report. Further requires the SCO to develop a process for RTPA’s to transfer information relative of verified transit operators to the SCO.
- Recasts current SCO estimations and reports to RTPAs for current and future fiscal years of STA funding and the share of funds for each STA-eligible operator. Further recasts the provisions requiring the SCO to publish specified reports.
- Updates various definitions for the STA program, including public transportation operator and STA-eligible operator. Specifically, this bill defines “public transportation operator” as any transit district, municipal operator, included municipal operator, or transit development board. Further defines “STA-eligible operator” as a public transportation operator eligible to receive TDA funds for operating and/or supporting public transportation systems, as specified.
- Provides that only STA-eligible operators are eligible to receive an allocation from the portion of STA funds based on transit operator revenues. Further authorizes an STA-eligible operator to suballocate funds it receives to community transit service providers. Clarifies that funding allocated to RTPAs based on population can also fund community transit services.
- Requires the Department of Transportation (Caltrans) to prepare a report for the SCO by June 30th each year detailing the population of each RTPA area using the most recent population estimates of the Department of Finance.
- Updates the SCO computing requirements for funding allocations to RTPAs for revenue-based STA funds to be calculated based on the STA-eligible operators in each jurisdiction, and requires those STA-eligible operators receive a proportional share of the revenue-based STA funds based on the qualifying revenues of that operator.
- Clarifies the definition of qualifying revenues to include fares generated for community transit services and not to include capital expenditures or depreciation.
- Provides a process for new STA-eligible transit operators to be incorporated into STA and be accurately calculated its STA allocations.
- Clarifies that qualifying revenue shall not exceed a STA-eligible operator’s annual operating expenses. Defines operating expenses to include the direct cost of operating transit service, payments for community transit services, administrative costs, and routine maintenance.
- Recasts provisions relating to the Altamont Corridor Express and the Southern California Regional Rail Authority and defining them as STA-eligible operators for purposes of allocating funds from the revenue-based program funds.
- Makes various other conforming changes and deletes obsolete provisions.
- Provides an urgency clause.
Comments
- Purpose. According to the author, “The statutes governing the State Transit Assistance Program contain numerous ambiguities. While there was a longstanding recognition of how the program was to operate, these ambiguities had unintended consequences when they recently led to a reinterpretation of which entities are eligible to receive STA program funds. This bill is intended to clear up all of those ambiguities and allow the program to continue operating as it was designed to.”
- What is the TDA? The Mills-Alquist-Deddeh Act, otherwise known as the Transportation Development Act of 1971, was enacted to improve existing public transportation services and encourage regional transportation coordination. The TDA allocates funding for transit and transit-related purposes that comply with regional transportation plans. Specifically, TDA is derived from two funding sources:
- Local Transportation Fund (LTF), which is derived from a ¼ cent of the general sales tax collected statewide.
- STA fund, which is derived from the statewide sales tax on diesel fuel.
In regards to the LTF, the State Board of Equalization, based on sales tax collected in each county, returns the general sales tax revenues to each county’s LTF. For the STA, funds are appropriated by the Legislature to the SCO. The SCO then allocates the tax revenue, by formula, to RTPAs and other selected transportation agencies. Current law requires that 50% of STA funds be allocated according to population and 50% be allocated according to operator revenues, as specified.
Overall, TDA provides funding for 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. Additionally, provided that certain transit conditions are met, counties with a population under 500,000 (according to the 1970 federal census) may also use the LTF for local streets and roads, construction and maintenance. On the other hand, STA funding can only be used for transportation planning and mass transportation purposes.
Relative to STA, RTPAs sub-allocate funding shares to the transit operators within their jurisdiction. Operators that receive funds have discretion over the use of STA dollars apportioned to them – allowing funds to be used for both capital projects and transit operations if specific conditions are met. For many smaller transit agencies throughout the state, STA and LTF are their primary sources of operating funds.
- Allocation changes. In the 2015-16 Fiscal Year, the SCO reinterpreted the statutes that define how STA funds are distributed and further implemented a significant change in the way STA program funds were allocated. This change went into effect the first quarter of 2015-16 for payments which were issued in January of 2016, altering the way STA funds have been distributed for decades. The longtime structure had been that an agency providing transportation service to the general public for which fare is collected was eligible for STA funds. The reinterpretation included new entities into the STA funding pot, including many that do not operate transit services such as the Transbay Joint Powers Authority, which is constructing a modernized regional transit hub but not providing direct public transportation services. Other examples of new entities included providers of community transit services and specialized providers that are not open to general public. Although these providers had not previously received any direct STA allocation, they have received STA funding as sub-recipients at the discretion of the RTPA or an STA-eligible operator.
- Temporary hold. Last year, the Legislature included language in the State Budget, SB 838 (Committee on Budget and Fiscal Review, Chapter 339, Statutes of 2016), to require the SCO to use the long standing methodology for the distribution of funds through the 2017-18 Fiscal Year. Since that time, the sponsor of this bill, the California Transit Association (CTA), has embarked on a process of convening stakeholders to develop a policy proposal to give clarity to the eligibilities and requirements of the STA program. The provisions specified in this bill reflect the yearlong dialogue between CTA, transit stakeholders, and SCO.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
California Transit Association (source)
California Association of Councils of Government
Foothill Transit
Livermore Amador Valley Transit Authority
Metropolitan Transportation Commission
Monterey-Salinas Transit
Orange County Transportation Authority
San Francisco Bay Area Rapid Transit District
Ventura County Transportation Commission
OPPOSITION: (Verified 6/27/17)
None received
ASSEMBLY FLOOR: 76-0, 5/4/17
AYES: Acosta, Aguiar-Curry, Arambula, Baker, Berman, Bloom, Bocanegra, Bonta, Brough, Burke, Caballero, Calderon, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dababneh, Dahle, Daly, Eggman, Flora, Fong, Frazier, Friedman, Gallagher, Eduardo Garcia, Gipson, Gloria, Gomez, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Quirk, Quirk-Silva, Reyes, Ridley-Thomas, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon
NO VOTE RECORDED: Travis Allen, Bigelow, Cristina Garcia, Patterson
6/30/17 13:24:03
**** END ****
SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
Senator Jim Beall, Chair
2017 - 2018 Regular
Bill No: Hearing Date: 6/6/2017
Author: | Bloom | ||
Version: | 5/31/2017 | ||
Urgency: | Yes | Fiscal: | Yes |
Consultant: | Manny Leon | ||
SUBJECT:
DIGEST: This bill revises and recasts the provisions governing the State Transit Assistance (STA) program.
ANALYSIS:
Existing law:
- Provides funding for public transportation through the Transportation Development Act (TDA), including STA, which is derived from the statewide sales tax on diesel fuel.
- Requires STA funds be allocated by the State Controller’s Office (SCO) by formula with 50% being allocated according to population and 50% being allocated according to transit operator revenues from the prior fiscal year.
- Requires the SCO to allocate funds to specified Regional Transportation Planning Agencies (RTPA) for public transportation purposes.
- Requires the SCO to design and adopt a uniform system of accounts and records under which operators, as defined, prepare and submit annual reports of their operation.
- Requires the annual report to be submitted within 90 days of the end of the fiscal year.
This bill:
- Changes the timeframe for transit operators to submit annual reports to the State Controller’s Office (SCO) to within seven months after the end of the fiscal year, and requires the reports to contain underlying data from audited financial statements.
- Requires the regional transportation planning agency (RTPA) with jurisdiction over a transit operator to verify the operator is eligible for funding under the STA program prior to the operator submitting its report to SCO, and requires SCO reflect the verification on the operator’s report. Further requires the SCO to develop a process for RTPA’s to transfer information relative of verified transit operators to the SCO.
- Recasts current SCO estimations and reports to RTPAs for current and future fiscal years of STA funding and the share of funds for each STA-eligible operator. Further recasts the provisions requiring the SCO to publish specified reports.
- Updates various definitions for the STA program, including public transportation operator and STA-eligible operator. Specifically, this bill defines “public transportation operator” as any transit district, municipal operator, included municipal operator, or transit development board. Further defines “STA-eligible operator” as a public transportation operator eligible to receive TDA funds for operating and/or supporting public transportation systems, as specified.
- Provides that only STA-eligible operators are eligible to receive an allocation from the portion of STA funds based on transit operator revenues. Further authorizes an STA-eligible operator to suballocate funds it receives to community transit service providers. Clarifies that funding allocated to RTPAs based on population can also fund community transit services.
- Requires the Department of Transportation (Caltrans) to prepare a report for the SCO by June 30th each year detailing the population of each RTPA area using the most recent population estimates of the Department of Finance.
- Updates the SCO computing requirements for funding allocations to RTPAs for revenue-based STA funds to be calculated based on the STA-eligible operators in each jurisdiction, and requires those STA-eligible operators receive a proportional share of the revenue-based STA funds based on the qualifying revenues of that operator.
- Clarifies the definition of qualifying revenues to include fares generated for community transit services and not to include capital expenditures or depreciation.
- Provides a process for new STA-eligible transit operators to be incorporated into STA and be accurately calculated its STA allocations.
- Clarifies that qualifying revenue shall not exceed a STA-eligible operator’s annual operating expenses. Defines operating expenses to include the direct cost of operating transit service, payments for community transit services, administrative costs, and routine maintenance.
- Recasts provisions relating to the Altamont Corridor Express and the Southern California Regional Rail Authority and defining them as STA-eligible operators for purposes of allocating funds from the revenue-based program funds.
- Makes various other conforming changes and deletes obsolete provisions.
- Provides an urgency clause.
COMMENTS:
- Purpose. According to the author, “The statutes governing the State Transit Assistance Program contain numerous ambiguities. While there was a longstanding recognition of how the program was to operate, these ambiguities had unintended consequences when they recently led to a reinterpretation of which entities are eligible to receive STA program funds. This bill is intended to clear up all of those ambiguities and allow the program to continue operating as it was designed to.”
- What is the TDA? The Mills-Alquist-Deddeh Act, otherwise known as the as the Transportation Development Act (TDA) of 1971, was enacted to improve existing public transportation services and encourage regional transportation coordination. The TDA allocates funding for transit and transit-related purposes that comply with regional transportation plans. Specifically, TDA is derived from two funding sources:
- Local Transportation Fund (LTF), which is derived from a ¼ cent of the general sales tax collected statewide.
- State Transit Assistance fund (STA), which is derived from the statewide sales tax on diesel fuel.
In regards to the LTF, the State Board of Equalization, based on sales tax collected in each county, returns the general sales tax revenues to each county’s LTF. For the STA, funds are appropriated by the Legislature to the State Controller’s Office (SCO). The SCO then allocates the tax revenue, by formula, to RTPAs and other selected transportation agencies. Current law requires that 50% of STA funds be allocated according to population and 50% be allocated according to operator revenues, as specified.
Overall, TDA provides funding for 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. Additionally, provided that certain transit conditions are met, counties with a population under 500,000 (according to the 1970 federal census) may also use the LTF for local streets and roads, construction and maintenance. On the other hand, STA funding can only be used for transportation planning and mass transportation purposes.
Relative to STA, RTPAs sub-allocate funding shares to the transit operators within their jurisdiction. Operators that receive funds have discretion over the use of STA dollars apportioned to them – allowing funds to be used for both capital projects and transit operations if specific conditions are met. For many smaller transit agencies throughout the state, STA and LTF are their primary sources of operating funds.
- Allocation changes. In the 2015-16 Fiscal Year, the SCO reinterpreted the statutes that define how STA funds are distributed and further implemented a significant change in the way STA program funds were allocated. This change went into effect the first quarter of 2015-16 for payments which were issued in January of 2016, altering the way STA funds have been distributed for decades. The longtime structure had been that an agency providing transportation service to the general public for which fare is collected was eligible for STA funds. The reinterpretation included new entities into the STA funding pot, including many that do not operate transit services such as the Transbay Joint Powers Authority, which is constructing a modernized regional transit hub but not providing direct public transportation services. Other examples of new entities included providers of community transit services and specialized providers that are not open to general public. Although these providers had not previously received any direct STA allocation, they have received STA funding as sub-recipients at the discretion of the RTPA or an STA-eligible operator.
- Temporary hold. Last year the Legislature included language in the state budget, SB 838 (Committee on Budget and Fiscal Review), Chapter 339, Statutes of 2016, to require the SCO to use the long standing methodology for the distribution of funds through the 2017-18 Fiscal Year. Since that time, the sponsors of this bill, the California Transit Association (CTA), have embarked on a process of convening stakeholders to develop a policy proposal to give clarity to the eligibilities and requirements of the STA program. The provisions specified in this bill reflect the yearlong dialogue between CTA, transit stakeholders, and SCO.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
POSITIONS: (Communicated to the committee before noon on Wednesday,
May 31, 2017.)
SUPPORT:
California Transit Association (Sponsor)
California Association of Councils of Government
Foothill Transit
Livermore Amador Valley Transit Authority
Metropolitan Transportation Commission
Monterey-Salinas Transit
Orange County Transportation Authority
San Francisco Bay Area Rapid Transit District.
Ventura County Transportation Commission
OPPOSITION:
None received.
-- END --
Date of Hearing: April 26, 2017
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez Fletcher, Chair
ABPCA Bill Id:AB 1113
Author:(Bloom) – As Amended Ver:March 28, 2017
Policy Committee: | Transportation | Vote: | 13 - 0 |
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill revises and recasts the provisions governing the State Transit Assistance (STA) program. Specifically, this bill:
- Updates the distribution formulas used by the State Controller’s Office (SCO) to allocate STA funds, and updates the definitions of which public transportation operators are eligible to receive funds.
- Changes the timeframe for transit operators to submit annual reports to the SCO to within seven months after the end of the fiscal year, and requires the reports to contain underlying data from audited financial statements.
- Requires the Department of Transportation (Caltrans) to prepare a report for the SCO by June 30th each year detailing the population of each RTPA area using the most recent population estimates of the Department of Finance.
FISCAL EFFECT:
- Minor and absorbable costs to Caltrans to provide Department of Finance population estimates to SCO each year.
- No costs to SCO to distribute funding according to updated formulas and requirements, because the SCO already has resources in place for the ongoing distribution of STA funds.
- No fiscal effect from the changed allocation formulas or definitions, as these provisions allocate existing dollars differently and do not change the total level of funding for the STA program.
COMMENTS:
- Background. Existing law creates the STA program to provide funding to local transit operators. These funds are allocated by SCO according to formulas established in state law. In 2015-16, SCO changed its longstanding interpretation of the statutory distribution formulas governing the allocation of STA funds. As a result of this changed interpretation of the law, SCO began distributing funds differently and to a different mix of transit operators than was previously the case. In response to the unintended change in the distribution of STA funds, the Legislature passed SB 838 (Committee on Budget and Fiscal Review), Chapter 339, Statutes of 2016, that requires SCO to use the longstanding methodology and interpretation of the distribution formulas to allocate STA dollars through the 2017-18 Fiscal Year. The intent was to provide sufficient time for the Legislature to consider the allocation formula for the STA program and develop a long-term approach to updating the STA formula.
- Purpose. According to the author, “AB 1113 amends the statutes governing the SRA program to clarify several ambiguities and restore operation of the program to how it was intended to run.”
Analysis Prepared by: Jessica Peters / APPR. / (916) 319-2081
Date of Hearing: April 17, 2017
ASSEMBLY COMMITTEE ON TRANSPORTATION
Jim Frazier, Chair
ABPCA Bill Id:AB 1113 (
Author:Bloom) – As Amended Ver:March 28, 2017
SUBJECT: State Transit Assistance program
SUMMARY: Revises and recasts the provisions governing the State Transit Assistance (STA) program. Specifically, this bill:
- Changes the timeframe for transit operators to submit annual reports to the State Controller’s Office (SCO) to within seven months after the end of the fiscal year, and requires the reports to contain underlying data from audited financial statements.
- Requires the regional transportation planning agency (RTPA) with jurisdiction over a transit operator to verify the operator is eligible for funding under the STA program prior to the operator submitting its report to SCO, and requires SCO reflect the verification on the operator’s report.
- Recasts current SCO estimations and reports to RTPAs for current and future fiscal years of STA funding and the share of funds for each STA-eligible operator, including requiring the SCO to publish the reports.
- Updates definitions for the STA program, including public transportation operator and STA- eligible operator, and provides that only STA-eligible operators are eligible to receive an allocation from the portion of program funds based on transit operator revenues. Further authorizes an STA-eligible operator to suballocate funds it receives to community transit service providers. Clarifies that funding allocated to RTPAs based on population can also fund community transit services.
- Requires the Department of Transportation (Caltrans) to prepare a report for the SCO by June 30th each year detailing the population of each RTPA area using the most recent population estimates of the Department of Finance.
- Updates the SCO computing requirements for funding allocation amounts for RTPAs for revenue-based program funds to be calculated based on the STA-eligible operators in each jurisdiction, and requires those STA-eligible operators receive a proportional share of the revenue-based program funds based on the qualifying revenues of that operator.
- Clarifies the definition of qualifying revenues to include fares generated for community transit services and not to include capital expenditures or depreciation.
- Clarifies that qualifying revenue shall not exceed a STA-eligible operator’s annual operating expenses. Defines operating expenses to include the direct cost of operating transit service, payments for community transit services, administrative costs, and routine maintenance.
- Recasts provisions relating to the Altamont Corridor Express and the Southern California Regional Rail Authority and defining them as STA-eligible operators for purposes of allocating funds from the revenue-based program funds.
- Makes various other conforming changes and deletes obsolete provisions.
EXISTING LAW:
- Provides funding for public transportation through the Transportation Development Act (TDA), including STA, which is derived from the statewide sales tax on diesel fuel.
- Requires STA funds be allocated by the SCO by formula with 50% being allocated according to population and 50% being allocated according to transit operator revenues from the prior fiscal year.
- Requires the SCO to allocate funds to specified RTPAs for public transportation purposes.
- Requires the SCO to design and adopt a uniform system of accounts and records under which operators, as defined, prepare and submit annual reports of their operation.
- Requires the annual report to be submitted within 90 days of the end of the fiscal year.
FISCAL EFFECT: Unknown
COMMENTS: The TDA provides two major sources of funding for public transportation: the Local Transportation Fund (LTF) and the STA. These funds are for the development and support of public transportation needs that exist in California. STA funds are allocated to areas of each RTPA based on population and transit performance. STA funds are generated by the sales tax on diesel fuel, and the amount of money available for transit agencies varies from year to year based on the ups and downs of diesel prices. The SCO allocates STA funds to the 26 RTPAs across the state as follows:
- 50% of STA funds are allocated based on their share of the population; and,
- 50% of STA funds are allocated based on transit operators’ revenues.
The RTPAs sub-allocate the funds to the transit operators. Operators have full discretion over the use of STA funds apportioned to them. Funds may be used by transit operators for both capital projects and transit operations. For many smaller transit agencies, STA and TDA are their main sources of operating funds.
In the 2015-16 Fiscal Year, the SCO reinterpreted the statutes that define how STA funds are distributed and implemented a significant change in the way STA program funds were allocated. This change went into effect the first quarter of 2015-16 for payments which were issued in January of 2016. The change altered the way STA funds have been distributed for decades. The long held understanding of eligible STA program funding recipients had been an agency providing transportation service to the general public for which as fare is collected. The reinterpretation included new entities into the STA funding pot, including many that do not operate transit services such as the Transbay Joint Powers Authority. Other examples of new entities included providers of community transit services, or specialized providers, that are not open to general public. Although these providers had not previously received any direct STA allocation, they have received STA funding, as sub-recipients at the discretion of the RTPA or an STA-eligible operator.
To facilitate the development of a long term solution, last year the Legislature included language in the state budget, SB 838 (Committee on Budget and Fiscal Review), Chapter 339, Statutes of 2016, to require the SCO to use the long standing methodology for the distribution of funds through the 2017-18 Fiscal Year. The California Transit Association (CTA) then embarked on a process of convening stakeholders to develop a policy proposal to give clarity to the eligibilities and requirements of the STA program, which is reflected in this bill.
According to the author, the statutes governing the STA program contain numerous ambiguities. While there was a longstanding recognition of how the program was to operate, these ambiguities had unintended consequences when they recently led to a reinterpretation of which entities are eligible to receive STA program funds. This bill is intended to clear up all of those ambiguities and allow the program to continue operating as it was designed to.
In writing as the sponsors of the bill, CTA states they believe this bill adds clarity and needed specificity to the statutes, ensuring future administrators of the STA program will understand today’s legislative intent.
Also writing in in support of this bill, the Orange County Transportation Authority (OCTA) states that recognizing that STA is the only existing source of state transit funding that can be used for both operations and capital purposes, it is important that the safeguards proposed by this bill be implemented to ensure that STA funds are only expended on services that they were intended to support. Further they state that if implemented, this bill will ensure more accurate and manageable revenue reporting practices under the program going forward.
With the recent passage and anticipated signature by Governor Brown of SB 1 (Beall), funding for the STA program is estimated to grow by roughly 130%. It is important the STA program be clearly defined for state managers, RTPAs and transit providers. Additionally, accurate and timely reporting is critical to the oversight of public transit in the state. The committee notes that technical amendments will be needed to accommodate the changes approved by the Legislature in SB 1 (Beall), including additional reporting requirements for some STA funds to be used only for transit “state of good repair” maintenance.
Related legislation: SB 1 (Beall), increases several taxes and fees to raise the equivalent of roughly $52.4 billion over ten years in new transportation revenues, including new funding for STA. SB 1 also updates reporting to the SCO for the expenditure of new STA revenues.
SB 1 (Beall) was approved by the Senate and Assembly on April 6, 2017, and is expected to be signed by Governor Brown.
REGISTERED SUPPORT / OPPOSITION:
Support
California Transit Association (Sponsor)
Foothill Transit
Livermore Amador Valley Transit Authority
Monterey-Salinas Transit
Orange County Transportation Authority
Opposition
None on file
Analysis Prepared by: Melissa White / TRANS. /
Bill Author
Bill Co-Author(s):