Amended in Senate May 12, 2015

Amended in Senate April 27, 2015

Senate BillNo. 508


Introduced by Senator Beall

February 26, 2015


An act to amend Sections 99233.3, 99234, 99247, 99268.2, 99268.3, 99268.4, 99268.17, 99268.19, and 99314.6 of the Public Utilities Code, relating to transportation.

LEGISLATIVE COUNSEL’S DIGEST

SB 508, as amended, Beall. Transportation funds: transit operators: pedestrian safety.

(1) Existing law provides various sources of funding to public transit operators. Under the Mills-Alquist-Deddeh Act, also known as the Transportation Development Act, revenues from a 14% sales tax in each county are available, among other things, for allocation by the transportation planning agency to transit operators, subject to certain financial requirements for an operator to meet in order to be eligible to receive funds. Existing law sets forth alternative ways an operator may qualify for funding, including a standard under which the allocated funds do not exceed 50% of the operator’s total operating costs, as specified, or the maintenance by the operator of a specified farebox ratio of fare revenues to operating costs. Existing law authorizes an operator to satisfy the applicable ratio of fare revenues to operating costs by supplementing its fare revenues with local funds, as defined. Existing law generally establishes the required farebox ratio as 20% in urbanized areas and 10% in nonurbanized areas, except that an operator that exceeded those percentages in the 1978-79 fiscal year is required to maintain the higher farebox ratios in order to remain eligible for funding. Existing law provides various exceptions to the definition of “operating cost” for these purposes.

This bill would delete the requirement for transit operators to maintain higher farebox requirements based on the 1978-79 fiscal year. The bill would exempt additional categories of expenditures from the definition of “operating cost” used to determine compliance with required farebox ratios, including, among others, certain fuel, insurance, and claims settlementbegin delete costsend deletebegin insert cost increases beyond the change in the Consumer Price Indexend insert. The bill would also exempt startup costs for new transit services for up to 2 years. The bill would revise the definition of local funds. The bill would revise the definition of “operating cost” for performance audit and certain other purposes to exclude principal and interest payments on capital projects funded with certificates of participation.

(2) The Mills-Alquist-Deddeh Act, also known as the Transportation Development Act, also generally requires the allocation of 2% of available funds to cities and counties for facilities for bicycles and pedestrians. Existing law provides that a city or county may expend up to 5% of its bicycle and pedestrian allocation to supplement moneys from other sources to fund bicycle safety education programs, as long as this amount is not used to fully fund the salary of any one person.

This bill would also authorize the funding of pedestrian safety education programs from the 5% amount.

(3) Existing law creates the State Transit Assistance program, under which certain revenues in the Public Transportation Account are allocated by formula for public transportation purposes. Under that program, funds may not be allocated to a transit operator for operating purposes unless the operator meets certain efficiency standards. Compliance with the efficiency standards is based on whether the operator’s total operating cost per revenue vehicle hour is increasing by no more than the Consumer Price Index, as specified. Existing law imposes no restrictions on allocations of funds for capital purposes. Existing law provides for funds withheld from an operator to be retained by the allocating transportation planning agency for allocation in a later year if the operator can subsequently meet the efficiency standards, and in certain cases, provides for the funds to be reallocated to other transit purposes, or to revert to the Controller.

This bill, rather than making an operator ineligible to receive State Transit Assistance program funds for operating purposes for an entire year for failing to meet the efficiency standards, would instead reduce the operator’s operating allocation by a specified percentage, based on the percentage amount that the operator failed to meet the efficiency standards, as specified. The bill would delete provisions related to funds withheld, reallocated, or reverted by the transportation planning agency.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P3    1

SECTION 1.  

Section 99233.3 of the Public Utilities Code is
2amended to read:

3

99233.3.  

Two percent of the remaining money in the fund shall
4be made available to counties and cities for facilities provided for
5the exclusive use of pedestrians and bicycles unless the
6transportation planning agency finds that the money could be used
7to better advantage for the purposes stated in Article 4
8(commencing with Section 99260) and Article 4.5 (commencing
9with Section 99275), or for local street and road purposes in those
10areas where the money may be expended for those purposes, in
11the development of a balanced transportation system. Of the
12amount made available to a city or county pursuant to this section,
13 5 percent thereof may be expended to supplement moneys from
14other sources to fund bicycle and pedestrian safety education
15programs, but shall not be used to fully fund the salary of any one
16person.

17

SEC. 2.  

Section 99234 of the Public Utilities Code is amended
18to read:

19

99234.  

(a) Claims for facilities provided for the exclusive use
20of pedestrians and bicycles or for bicycle and pedestrian safety
21education programs shall be filed according to the rules and
22regulations adopted by the transportation planning agency.

23(b) The money shall be allocated for the construction, including
24related engineering expenses, of those facilities pursuant to
25procedures or criteria established by the transportation planning
26agency for the area within its jurisdiction, or for bicycle and
27pedestrian safety education programs.

28(c) The money may be allocated for the maintenance of bicycling
29trails that are closed to motorized traffic pursuant to procedures
30or criteria established by the transportation planning agency for
31the area within its jurisdiction.

P4    1(d) The money may be allocated without respect to Section
299231 and shall not be included in determining the apportionments
3to a city or county for purposes of Sections 99233.7 to 99233.9,
4inclusive.

5(e) Facilities provided for the use of bicycles may include
6projects that serve the needs of commuting bicyclists, including,
7but not limited to, new trails serving major transportation corridors,
8secure bicycle parking at employment centers, park and ride lots,
9and transit terminals where other funds are unavailable.

10(f) Notwithstanding any other provision of this section, a
11planning agency established in Title 7.1 (commencing with Section
1266500) of the Government Code may allocate the money to the
13Association of Bay Area Governments for activities required by
14Chapter 11 (commencing with Section 5850) of Division 5 of the
15Public Resources Code.

16(g) Notwithstanding any other provision of this section, the
17transportation planning agencies that allocate funds, pursuant to
18this section, to the cities and counties with jurisdiction or a sphere
19of influence within the delta, as defined in Section 5852 of the
20Public Resources Code, may allocate the money to the Delta
21Protection Commission for activities required by Chapter 12
22(commencing with Section 5852) of Division 5 of the Public
23Resources Code.

24(h) Within 30 days after receiving a request for a review from
25any city or county, the transportation planning agency shall review
26its allocations made pursuant to Section 99233.3.

27(i) In addition to the purposes authorized in this section, a
28portion of the amount available to a city or county pursuant to
29Section 99233.3 may be allocated to develop a comprehensive
30bicycle and pedestrian facilities plan, with an emphasis on bicycle
31projects intended to accommodate bicycle commuters rather than
32recreational bicycle users. An allocation under this subdivision
33may not be made more than once every five years.

34(j) Up to 20 percent of the amount available each year to a city
35or county pursuant to Section 99233.3 may be allocated to restripe
36class II bicycle lanes.

37

SEC. 3.  

Section 99247 of the Public Utilities Code is amended
38to read:

39

99247.  

For purposes of Section 99246, and as used elsewhere
40in this article:

P5    1(a) “Operating cost” means all costs in the operating expense
2object classes exclusive of the costs in the depreciation and
3amortization expense object class of the uniform system of
4accounts and records adopted by the Controller pursuant to Section
599243. “Operating cost” excludes all subsidies for commuter rail
6services operated on railroad lines under the jurisdiction of the
7 Federal Railroad Administration, all direct costs for providing
8charter services, all vehicle lease costs, and principal and interest
9payments on capital projects funded with certificates of
10participation.

11(b) “Operating cost per passenger” means the operating cost
12divided by the total passengers.

13(c) “Operating cost per vehicle service hour” means the
14operating cost divided by the vehicle service hours.

15(d) “Passengers per vehicle service hour” means the total
16passengers divided by the vehicle service hours.

17(e) “Passengers per vehicle service mile” means the total
18passengers divided by the vehicle service miles.

19(f) “Total passengers” means the number of boarding passengers,
20whether revenue producing or not, carried by the public
21transportation system.

22(g) “Transit vehicle” means a vehicle, including, but not limited
23to, one operated on rails or tracks, which is used for public
24transportation services funded, in whole or in part, under this
25chapter.

26(h) “Vehicle service hours” means the total number of hours
27that each transit vehicle is in revenue service, including layover
28time.

29(i) “Vehicle service miles” means the total number of miles that
30each transit vehicle is in revenue service.

31(j) “Vehicle service hours per employee” means the vehicle
32service hours divided by the number of employees employed in
33connection with the public transportation system, based on the
34assumption that 2,000 person-hours of work in one year constitute
35one employee. The count of employees shall also include those
36individuals employed by the operator which provide services to
37the agency of the operator responsible for the operation of the
38public transportation system even though not employed in that
39agency.

P6    1

SEC. 4.  

Section 99268.2 of the Public Utilities Code is
2amended to read:

3

99268.2.  

In the case of an operator required to be in compliance
4with Section 99268 under Section 99268.1, the operator may be
5allocated additional funds that could not be allocated to it because
6of those requirements, if it maintains, for the fiscal year, a ratio of
7fare revenues to operating cost, as defined by subdivision (a) of
8Section 99247, at least equal to one-fifth if serving an urbanized
9area or one-tenth if serving a nonurbanized area.

10

SEC. 5.  

Section 99268.3 of the Public Utilities Code is
11amended to read:

12

99268.3.  

(a) In the case of an operator that is serving an
13urbanized area, and that was eligible for funds under this article
14during the 1978-79 fiscal year even though not required to be in
15compliance with Section 99268 or that commenced operation after
16that fiscal year, the operator shall be eligible for those funds in
17any fiscal year, commencing with claims for the 1980-81 fiscal
18year, if it maintains, for the fiscal year, a ratio of fare revenues to
19operating cost, as defined by subdivision (a) of Section 99247, at
20least equal to one-fifth.

21(b) In the case of an operator that is serving an urbanized area,
22and that was in operation during the 1978-79 fiscal year even
23though not then eligible for funds under this article, but that has
24since become eligible for those funds, the operator shall be eligible
25for the funds in any fiscal year, commencing with the 1980-81
26fiscal year, if it complies with either of the following:

27(1) The requirements of Section 99268.

28(2) The requirements of subdivision (a).

29

SEC. 6.  

Section 99268.4 of the Public Utilities Code is
30amended to read:

31

99268.4.  

In the case of an operator that is serving a
32nonurbanized area, and that was eligible for funds under this article
33during the 1978-79 fiscal year even though not required to be in
34compliance with Section 99268 or that commenced operation after
35that fiscal year, the operator shall be eligible for those funds in
36any fiscal year, commencing with claims for the 1980-81 fiscal
37year, if it maintains, for the fiscal year, a ratio of fare revenues to
38operating cost, as defined by subdivision (a) of Section 99247, at
39least equal to one-tenth.

P7    1

SEC. 7.  

Section 99268.17 of the Public Utilities Code is
2amended to read:

3

99268.17.  

(a) Notwithstanding subdivision (a) of Section
499247, the following costs shall be excluded from the definition
5of “operating cost” for the purposes of calculating any required
6ratios of fare revenues to operating cost specified in this article:

7(1) The additional operating costs required to provide
8comparable complementary paratransit service as required by
9Section 37.121 of Title 49 of the Code of Federal Regulations,
10pursuant to the federal Americans with Disabilities Act of 1990
11(42 U.S.C. Sec. 12101 et seq.), as identified in the operator’s
12 paratransit plan pursuant to Section 37.139 of Title 49 of the Code
13of Federal Regulations that exceed the operator’s costs required
14to provide comparable complementary paratransit service in the
15prior year as adjusted by the Consumer Price Index.

begin delete

16(2) Fuel.

end delete
begin delete

17(3) Alternative fuel programs.

end delete
begin delete

18(4) Power, including electricity.

end delete
begin delete

19(5) Insurance premiums and payments in settlement of claims
20arising out of the operator’s liability.

end delete
begin delete

21(6) State or federal mandates.

end delete
begin insert

22(2) Cost increases beyond the change in the Consumer Price
23Index for all of the following:

end insert
begin insert

24(A) Fuel.

end insert
begin insert

25(B) Alternative fuel programs.

end insert
begin insert

26(C) Power, including electricity.

end insert
begin insert

27(D) Insurance premiums and payments in settlement of claims
28arising out of the operator’s liability.

end insert
begin insert

29(E) State and federal mandates.

end insert
begin delete

30(7)

end delete

31begin insert(3)end insert Startup costs for new services for a period of not more than
32two years.

33(b) The exclusion of costs from the definition of operating costs
34in subdivision (a) applies solely for the purpose of this article and
35does not authorize an operator to report an operating cost other
36than as defined in subdivision (a) of Section 99247 or a ratio of
37fare revenue to operating cost other than as that ratio is described
38elsewhere in this article, to any of the following entities:

39(1) The Controller pursuant to Section 99243.

P8    1(2) The entity conducting the fiscal audit pursuant to Section
299245.

3(3) The entity conducting the performance audit pursuant to
4Section 99246.

5

SEC. 8.  

Section 99268.19 of the Public Utilities Code is
6amended to read:

7

99268.19.  

If fare revenues are insufficient to meet the
8applicable ratio of fare revenues to operating cost required by this
9article, an operator may satisfy that requirement by supplementing
10its fare revenues with local funds. As used in this section, “local
11funds” means any nonfederal or nonstate grant funds or other
12revenues generated by, earned by, or distributed to an operator.

13

SEC. 9.  

Section 99314.6 of the Public Utilities Code is
14amended to read:

15

99314.6.  

(a) Except as provided in Section 99314.7, the
16following eligibility standards apply:

17(1) Except as provided in paragraph (3), funds shall be allocated
18for operating or capital purposes pursuant to Sections 99313 and
1999314 to an operator if the operator meets either of the following
20efficiency standards:

21(A) The operator shall receive its entire allocation, and any or
22all of this allocation may be used for operating purposes, if the
23operator’s total operating cost per revenue vehicle hour in the latest
24year for which audited data are available does not exceed the sum
25of the preceding year’s total operating cost per revenue vehicle
26hour and an amount equal to the product of the percentage change
27in the Consumer Price Index for the same period multiplied by the
28preceding year’s total operating cost per revenue vehicle hour.

29(B) The operator shall receive its entire allocation, and any or
30 all of this allocation may be used for operating purposes, if the
31operator’s average total operating cost per revenue vehicle hour
32in the latest three years for which audited data are available does
33not exceed the sum of the average of the total operating cost per
34revenue vehicle hour in the three years preceding the latest year
35for which audited data are available and an amount equal to the
36product of the average percentage change in the Consumer Price
37Index for the same period multiplied by the average total operating
38cost per revenue vehicle hour in the same three years.

39(2) If an operator does not meet either efficiency standard under
40paragraph (1), the operator shall receive its entire allocation and
P9    1the funds shall be allocated pursuant to this paragraph. The portion
2of the allocation that the operator may use for operations shall be
3the total allocation to the operator reduced by the lowest percentage
4by which the operator’s total operating cost per revenue vehicle
5hour for the applicable year or three-year period calculated pursuant
6to subparagraph (A) or (B) of paragraph (1) exceeded the target
7amount necessary to meet the applicable efficiency standard. The
8remaining portion of the operator’s allocation shall be used only
9for capital purposes.

10(3) The transportation planning agency, county transportation
11commission, or the San Diego Metropolitan Transit Development
12Board, as the case may be, shall adjust the calculation of operating
13costs and revenue vehicle hours pursuant to paragraph (1) to
14account for either or both of the following factors:

15(A) Exclusion of cost increases beyond the change in the
16Consumer Price Index for fuel; alternative fuel programs; power,
17including electricity; insurance premiums and payments in
18settlement of claims arising out of the operator’s liability; or state
19or federal mandates, including the additional operating costs
20required to provide comparable complementary paratransit service
21as required by Section 37.121 of Title 49 of the Code of Federal
22Regulations, pursuant to the federal Americans with Disabilities
23Act of 1990 (42 U.S.C. Sec. 12101 et seq.), as identified in the
24operator’s paratransit plan pursuant to Section 37.139 of Title 49
25of the Code of Federal Regulations.

26(B) Exclusion of startup costs for new services for a period of
27not more than two years.

28(b) As used in this section, the following terms have the
29following meanings:

30(1) “Operating cost” means the total operating cost as reported
31by the operator under the Uniform System of Accounts and
32Records, pursuant to Section 99243 and subdivision (a) of Section
3399247.

34(2) “Revenue vehicle hours” has the same meaning as “vehicle
35service hours,” as defined in subdivision (h) of Section 99247.

36(3) “Consumer Price Index,” as applied to an operator, is the
37regional Consumer Price Index for that operator’s region, as
38published by the United States Bureau of Labor Statistics. If a
39regional index is not published, the index for the State of California
40applies.

P10   1(4) “New service” has the same meaning as “extension of public
2transportation services” as defined in Section 99268.8.

3(c) The restrictions in this section do not apply to allocations
4made for capital purposes.

5(d) The exclusion of cost increases described in paragraph (3)
6of subdivision (a) applies solely for the purpose of calculating an
7operator’s eligibility to claim funds pursuant to this section and
8does not authorize an operator to report an operating cost per
9revenue vehicle hour other than as described in this section and in
10Section 99247, to any of the following entities:

11(1) The Controller pursuant to Section 99243.

12(2) The entity conducting the fiscal audit pursuant to Section
1399245.

14(3) The entity conducting the performance audit pursuant to
15Section 99246.



O

    97