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Operating program - 74 Pa. Cons. Stat. § 1513

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     § 1513.  Operating program.
        (a)  Eligible applicants.--The following may apply for
     financial assistance for operating expenses under this section:
            (1)  The governing body of a municipality or an
        instrumentality of a municipality.
            (2)  A Commonwealth agency or instrumentality.
            (3)  A local transportation organization.
        (b)  Applications.--In addition to information required under
     section 1507 (relating to application and approval process), an
     application for financial assistance under this section shall
     include the applicant's reasonable estimates of operating
     revenue and government subsidies sufficient to cover all
     projected operating expenses.
        (c)  Distribution formula.--
            (1)  No later than 15 business days after the effective
        date of this section, the department shall forward to the
        Legislative Reference Bureau for publication in the
        Pennsylvania Bulletin the base operating allocation for each
        local transportation organization.
            (1.1)  For purposes of determining the amount of
        assistance available for distribution under this subsection,
        in addition to the amounts allocated under section
        1506(e)(1)(relating to fund), an amount equal to the revenue
        in the Public Transportation Assistance Fund dedicated
        pursuant to law shall be included.
            (2)  For fiscal year 2007-2008 and each fiscal year
        thereafter, each qualifying local transportation organization
        shall receive financial assistance which shall consist of the
        following:
                (i)  Its base operating allocation multiplied by
            1.0506.
                (ii)  An additional amount which shall be allocated
            based on the following distribution formula:
                    (A)  Twenty-five percent of the award amount
                shall be based on the number of passengers. The
                actual amount received by each local transportation
                organization under this clause shall be calculated as
                follows:
                        (I)  Multiply the total amount of funding
                    available for distribution under this paragraph
                    by 0.25.
                        (II)  Multiply the product under subclause
                    (I) by the local transportation organization's
                    number of passengers.
                        (III)  Divide the product under subclause
                    (II) by the total number of passengers for all
                    local transportation organizations.
                    (B)  Ten percent of the award amount shall be
                based on the number of senior passengers to offset
                free fares for senior passengers. The actual amount
                received by each local transportation organization
                under this clause shall be calculated as follows:
                        (I)  Multiply the total amount of funding
                    available for distribution under this paragraph
                    by 0.10.
                        (II)  Multiply the product under subclause
                    (I) by the local transportation organization's
                    number of senior passengers.
                        (III)  Divide the product under subclause
                    (II) by the total number of senior passengers for
                    all local transportation organizations.
                    (C)  Thirty-five percent of the award amount
                shall be based on the number of revenue vehicle
                hours. The actual amount received by each local
                transportation organization under this clause shall
                be calculated as follows:
                        (I)  Multiply the total amount of funding
                    available for distribution under this paragraph
                    by 0.35.
                        (II)  Multiply the product under subclause
                    (I) by the local transportation organization's
                    number of revenue vehicle hours.
                        (III)  Divide the product under subclause
                    (II) by the total of the revenue vehicle hours
                    for all local transportation organizations.
                    (D)  Thirty percent of the award amount shall be
                based on the number of revenue vehicle miles. The
                actual amount received by each local transportation
                organization under this clause shall be calculated as
                follows:
                        (I)  Multiply the total amount of funding
                    available for distribution under this paragraph
                    by 0.30.
                        (II)  Multiply the product under subclause
                    (I) by the local transportation organization's
                    number of revenue vehicle miles.
                        (III)  Divide the product under subclause
                    (II) by the total number of revenue vehicle miles
                    for all local transportation organizations.
            (3)  For the 2007-2008 fiscal year, no local
        transportation organization shall receive total financial
        assistance under this subsection that would be more than 50%
        higher than the amount it receives under paragraph (2)(i).
        For each subsequent fiscal year, the increase in the total
        financial assistance provided to each local transportation
        organization shall not exceed 20% of the prior year
        allocation.
        (c.1)  Minimum.--No local transportation organization shall
     receive financial assistance under this section in an amount
     less than the amount received in the previous fiscal year.
        (d)  Local match requirements.--
            (1)  For fiscal year 2007-2008 and each fiscal year
        thereafter, except as provided under paragraph (2), financial
        assistance provided under this section shall be matched by
        local or private cash funding in an amount not less than the
        greater of:
                (i)  15% of the amount of the financial assistance
            being provided; or
                (ii)  the amount required under former section
            1311(d) (relating to use of funds distributed) for fiscal
            year 2006-2007.
            (2)  Beginning in fiscal year 2007-2008 and each fiscal
        year thereafter, if the local matching funds provided are
        less than 15% of the amount of financial assistance received,
        the local transportation organization's required local
        matching funds shall increase annually in order to meet the
        15% requirement set forth under paragraph (1)(i). The local
        matching funds shall be increased annually by a minimum of 5%
        above the amount of local matching funds provided in the
        previous fiscal year unless a lesser amount is necessary to
        meet the 15% requirement set forth under paragraph (1)(i).
            (3)  Eligible local matching funds shall consist only of
        cash contributions provided by one or more municipalities or
        counties. The amount of the match and the time period during
        which the match must continue to be available shall be
        specified in the financial assistance agreement. Funding
        provided by local and private entities, including advertising
        or naming rights, may qualify as local matching funds to the
        extent they provide for the cost of transit service that is
        open to the public. The following shall not be considered
        local matching funds:
                (i)  Any form of transit operating revenue or other
            forms of transit income provided by the local
            transportation organization.
                (ii)  Funds used to replace fares.
            (4)  A municipality in a metropolitan area which is a
        member of a local transportation organization is authorized
        to provide annual financial assistance from current revenues
        to the local transportation organization of which it is a
        member or enter into a long-term agreement for payment of
        money to assist in defraying the costs of operation,
        maintenance and debt service of the local transportation
        organization or of a particular public transportation project
        of a local transportation organization. The obligation of a
        municipality under an agreement pursuant to this paragraph
        shall not be considered to be a part of the indebtedness of
        the municipality, nor shall the obligation be deemed to
        impair the status of any indebtedness of the municipality
        which would otherwise be considered self-sustaining.
        (e)  Performance reviews.--
            (1)  The department may conduct performance reviews of an
        award recipient under this section to determine the
        effectiveness of the financial assistance. Reviews shall be
        conducted at regular intervals as established by the
        department in consultation with the management of the award
        recipient. After completion of a review, the department shall
        issue a report that:
                (i)  highlights exceptional performance and
            identifies any problems that need to be resolved;
                (ii)  assesses performance, efficiency and
            effectiveness of the use of the financial assistance;
                (iii)  makes recommendations on follow-up actions
            required to remedy any problem identified; and
                (iv)  provides an action plan documenting who should
            perform the recommended actions and a time frame within
            which they should be performed.
            (2)  The department shall deliver the report to the
        Governor, to the chairman and minority chairman of the
        Transportation Committee of the Senate and to the chairman
        and minority chairman of the Transportation Committee of the
        House of Representatives. The department's regulations shall
        contain a description of the impact on both the amount of,
        and future eligibility for, financial assistance under this
        chapter based upon the degree to which the local
        transportation organization complies with the recommendations
        in the report. The department shall develop a list of best
        practices revealed by the reports issued under this
        subsection and shall post them on the department's Internet
        website.
        (f)  Performance criteria.--Criteria used for the reviews
     conducted under subsection (e) shall consist of passengers per
     revenue vehicle hour, operating costs per revenue vehicle hour,
     operating revenue per revenue vehicle hour, operating costs per
     passenger and other items as the department may establish. The
     department's regulations shall set forth the minimum system
     performance criteria based upon comparison of the award
     recipient to its past performance and to its peers that an award
     recipient must satisfy.
        (g)  Failure to satisfy minimum performance criteria.--
            (1)  If a performance review conducted under subsection
        (e) reveals that the performance of an award recipient's
        transportation system has decreased compared to performance
        determined through a prior review, the department may, upon
        the written request of an award recipient, waive any
        requirement for a reduction in the amount of financial
        assistance to be awarded under this section for a reasonable
        time period to allow the award recipient to bring the system
        back to the required performance level. The award recipient
        shall provide written justification for providing a time
        period longer than two years. In order to obtain the waiver
        for the period requested, the award recipient must do all of
        the following:
                (i)  Develop an action plan to improve system
            performance that contains key measurable milestones. The
            action plan must be acceptable to the department and must
            be approved by the department in writing.
                (ii)  Submit quarterly progress reports on the action
            plan to the department.
            (2)  The department shall review and evaluate the award
        recipient's progress to determine if the system has improved.
        If the system has improved, the award recipient will remain
        eligible for full formula funding as determined under
        subsection (c). If the system has not improved by the end of
        the waiver period, the waiver will be withdrawn. Expenses
        incurred by the award recipient as a result of the failure of
        the award recipient's system to meet the minimum performance
        criteria shall be borne by the award recipient.
        (h)  Adjustments to minimum performance criteria.--Upon
     written request of an award recipient, the department may adjust
     the minimum performance criteria described in subsection (g) in
     a given year if the performance of the award recipient's system
     is adversely affected by circumstances which are beyond the
     award recipient's control. Examples are labor strikes,
     infrastructure failures and natural disasters. The request must
     include the award recipient's reasons for seeking the
     adjustment.

        Cross References.  Section 1513 is referred to in sections
     1506, 1514, 1515, 1516 of this title.
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Last modified: November 27, 2007