Amended in Assembly July 15, 2015

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,begin delete 99268.19,end deletebegin insert and 99268.19 of,end insert andbegin insert to amend, repeal, and add Sectionend insert 99314.6begin delete ofend deletebegin insert of,end insert 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 settlement cost increases beyond the change in the Consumer Price Index. The bill would also exempt startup costs for new transit services for up to 2 years. The bill would revise the definition of local funds. The bill would revise the definition of “operating cost” for performance audit and certain other purposes to exclude principal and interest payments on capital projects funded with certificates of participation.

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

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

(3) Existing law creates the State Transit Assistance program, under which certain revenues in the Public Transportation Account are allocated by formula for public transportation purposes. Under that program,begin insert after the 2015-16 fiscal year,end insert 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,begin insert commencing July 1, 2016,end insert 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. Thebegin delete billend deletebegin insert bill, on that date,end insert 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.

P4    1(c) The money may be allocated for the maintenance of bicycling
2 trails that are closed to motorized traffic pursuant to procedures
3or criteria established by the transportation planning agency for
4the area within its jurisdiction.

5(d) The money may be allocated without respect to Section
699231 and shall not be included in determining the apportionments
7to a city or county for purposes of Sections 99233.7 to 99233.9,
8inclusive.

9(e) Facilities provided for the use of bicycles may include
10projects that serve the needs of commuting bicyclists, including,
11but not limited to, new trails serving major transportation corridors,
12secure bicycle parking at employment centers, park and ride lots,
13and transit terminals where other funds are unavailable.

14(f) Notwithstanding any other provision of this section, a
15planning agency established in Title 7.1 (commencing with Section
1666500) of the Government Code may allocate the money to the
17Association of Bay Area Governments for activities required by
18Chapter 11 (commencing with Section 5850) of Division 5 of the
19Public Resources Code.

20(g) Notwithstanding any other provision of this section, the
21transportation planning agencies that allocate funds, pursuant to
22this section, to the cities and counties with jurisdiction or a sphere
23of influence within the delta, as defined in Section 5852 of the
24Public Resources Code, may allocate the money to the Delta
25Protection Commission for activities required by Chapter 12
26(commencing with Section 5852) of Division 5 of the Public
27Resources Code.

28(h) Within 30 days after receiving a request for a review from
29any city or county, the transportation planning agency shall review
30its allocations made pursuant to Section 99233.3.

31(i) In addition to the purposes authorized in this section, a
32portion of the amount available to a city or county pursuant to
33Section 99233.3 may be allocated to develop a comprehensive
34bicycle and pedestrian facilities plan, with an emphasis on bicycle
35projects intended to accommodate bicycle commuters rather than
36recreational bicycle users. An allocation under this subdivision
37may not be made more than once every five years.

38(j) Up to 20 percent of the amount available each year to a city
39or county pursuant to Section 99233.3 may be allocated to restripe
40class II bicycle lanes.

P5    1

SEC. 3.  

Section 99247 of the Public Utilities Code is amended
2to read:

3

99247.  

For purposes of Section 99246, and as used elsewhere
4in this article:

5(a) “Operating cost” means all costs in the operating expense
6object classes exclusive of the costs in the depreciation and
7amortization expense object class of the uniform system of
8accounts and records adopted by the Controller pursuant to Section
999243. “Operating cost” excludes all subsidies for commuter rail
10services operated on railroad lines under the jurisdiction of the
11 Federal Railroad Administration, all direct costs for providing
12charter services, all vehicle lease costs, and principal and interest
13payments on capital projects funded with certificates of
14participation.

15(b) “Operating cost per passenger” means the operating cost
16divided by the total passengers.

17(c) “Operating cost per vehicle service hour” means the
18operating cost divided by the vehicle service hours.

19(d) “Passengers per vehicle service hour” means the total
20passengers divided by the vehicle service hours.

21(e) “Passengers per vehicle service mile” means the total
22passengers divided by the vehicle service miles.

23(f) “Total passengers” means the number of boarding passengers,
24whether revenue producing or not, carried by the public
25transportation system.

26(g) “Transit vehicle” means a vehicle, including, but not limited
27to, one operated on rails or tracks, which is used for public
28transportation services funded, in whole or in part, under this
29chapter.

30(h) “Vehicle service hours” means the total number of hours
31that each transit vehicle is in revenue service, including layover
32time.

33(i) “Vehicle service miles” means the total number of miles that
34each transit vehicle is in revenue service.

35(j) “Vehicle service hours per employee” means the vehicle
36service hours divided by the number of employees employed in
37connection with the public transportation system, based on the
38assumption that 2,000 person-hours of work in one year constitute
39one employee. The count of employees shall also include those
40individuals employed by the operator which provide services to
P6    1the agency of the operator responsible for the operation of the
2public transportation system even though not employed in that
3agency.

4

SEC. 4.  

Section 99268.2 of the Public Utilities Code is
5amended to read:

6

99268.2.  

In the case of an operator required to be in compliance
7with Section 99268 under Section 99268.1, the operator may be
8allocated additional funds that could not be allocated to it because
9of those requirements, if it maintains, for the fiscal year, a ratio of
10fare revenues to operating cost, as defined by subdivision (a) of
11Section 99247, at least equal to one-fifth if serving an urbanized
12area or one-tenth if serving a nonurbanized area.

13

SEC. 5.  

Section 99268.3 of the Public Utilities Code is
14amended to read:

15

99268.3.  

(a) In the case of an operator that is serving an
16urbanized area, and that was eligible for funds under this article
17during the 1978-79 fiscal year even though not required to be in
18compliance with Section 99268 or that commenced operation after
19that fiscal year, the operator shall be eligible for those funds in
20any fiscal year, commencing with claims for the 1980-81 fiscal
21year, if it maintains, for the fiscal year, a ratio of fare revenues to
22operating cost, as defined by subdivision (a) of Section 99247, at
23least equal to one-fifth.

24(b) In the case of an operator that is serving an urbanized area,
25and that was in operation during the 1978-79 fiscal year even
26though not then eligible for funds under this article, but that has
27since become eligible for those funds, the operator shall be eligible
28for the funds in any fiscal year, commencing with the 1980-81
29fiscal year, if it complies with either of the following:

30(1) The requirements of Section 99268.

31(2) The requirements of subdivision (a).

32

SEC. 6.  

Section 99268.4 of the Public Utilities Code is
33amended to read:

34

99268.4.  

In the case of an operator that is serving a
35nonurbanized area, and that was eligible for funds under this article
36during the 1978-79 fiscal year even though not required to be in
37compliance with Section 99268 or that commenced operation after
38that fiscal year, the operator shall be eligible for those funds in
39any fiscal year, commencing with claims for the 1980-81 fiscal
40year, if it maintains, for the fiscal year, a ratio of fare revenues to
P7    1operating cost, as defined by subdivision (a) of Section 99247, at
2least equal to one-tenth.

3

SEC. 7.  

Section 99268.17 of the Public Utilities Code is
4amended to read:

5

99268.17.  

(a) Notwithstanding subdivision (a) of Section
699247, the following costs shall be excluded from the definition
7of “operating cost” for the purposes of calculating any required
8ratios of fare revenues to operating cost specified in this article:

9(1) The additional operating costs required to provide
10comparable complementary paratransit service as required by
11Section 37.121 of Title 49 of the Code of Federal Regulations,
12pursuant to the federal Americans with Disabilities Act of 1990
13(42 U.S.C. Sec. 12101 et seq.), as identified in the operator’s
14 paratransit plan pursuant to Section 37.139 of Title 49 of the Code
15of Federal Regulations that exceed the operator’s costs required
16to provide comparable complementary paratransit service in the
17prior year as adjusted by the Consumer Price Index.

18(2) Cost increases beyond the change in the Consumer Price
19Index for all of the following:

20(A) Fuel.

21(B) Alternative fuel programs.

22(C) Power, including electricity.

23(D) Insurance premiums and payments in settlement of claims
24arising out of the operator’s liability.

25(E) State and federal mandates.

26(3) Startup costs for new services for a period of not more than
27two years.

28(b) The exclusion of costs from the definition of operating costs
29in subdivision (a) applies solely for the purpose of this article and
30does not authorize an operator to report an operating cost other
31than as defined in subdivision (a) of Section 99247 or a ratio of
32fare revenue to operating cost other than as that ratio is described
33elsewhere in this article, to any of the following entities:

34(1) The Controller pursuant to Section 99243.

35(2) The entity conducting the fiscal audit pursuant to Section
3699245.

37(3) The entity conducting the performance audit pursuant to
38Section 99246.

39

SEC. 8.  

Section 99268.19 of the Public Utilities Code is
40amended to read:

P8    1

99268.19.  

If fare revenues are insufficient to meet the
2applicable ratio of fare revenues to operating cost required by this
3article, an operator may satisfy that requirement by supplementing
4its fare revenues with local funds. As used in this section, “local
5funds” means any nonfederal or nonstate grant funds or other
6revenues generated by, earned by, or distributed to an operator.

begin delete
7

SEC. 9.  

Section 99314.6 of the Public Utilities Code is
8amended to read:

9

99314.6.  

(a) Except as provided in Section 99314.7, the
10following eligibility standards apply:

11(1) Except as provided in paragraph (3), funds shall be allocated
12for operating or capital purposes pursuant to Sections 99313 and
1399314 to an operator if the operator meets either of the following
14efficiency standards:

15(A) The operator shall receive its entire allocation, and any or
16all of this allocation may be used for operating purposes, if the
17operator’s total operating cost per revenue vehicle hour in the latest
18year for which audited data are available does not exceed the sum
19of the preceding year’s total operating cost per revenue vehicle
20hour and an amount equal to the product of the percentage change
21in the Consumer Price Index for the same period multiplied by the
22preceding year’s total operating cost per revenue vehicle hour.

23(B) The operator shall receive its entire allocation, and any or
24 all of this allocation may be used for operating purposes, if the
25operator’s average total operating cost per revenue vehicle hour
26in the latest three years for which audited data are available does
27not exceed the sum of the average of the total operating cost per
28revenue vehicle hour in the three years preceding the latest year
29for which audited data are available and an amount equal to the
30product of the average percentage change in the Consumer Price
31Index for the same period multiplied by the average total operating
32cost per revenue vehicle hour in the same three years.

33(2) If an operator does not meet either efficiency standard under
34paragraph (1), the operator shall receive its entire allocation and
35the funds shall be allocated pursuant to this paragraph. The portion
36of the allocation that the operator may use for operations shall be
37the total allocation to the operator reduced by the lowest percentage
38by which the operator’s total operating cost per revenue vehicle
39hour for the applicable year or three-year period calculated pursuant
40to subparagraph (A) or (B) of paragraph (1) exceeded the target
P9    1amount necessary to meet the applicable efficiency standard. The
2remaining portion of the operator’s allocation shall be used only
3for capital purposes.

4(3) The transportation planning agency, county transportation
5commission, or the San Diego Metropolitan Transit Development
6Board, as the case may be, shall adjust the calculation of operating
7costs and revenue vehicle hours pursuant to paragraph (1) to
8account for either or both of the following factors:

9(A) Exclusion of cost increases beyond the change in the
10Consumer Price Index for fuel; alternative fuel programs; power,
11including electricity; insurance premiums and payments in
12settlement of claims arising out of the operator’s liability; or state
13or federal mandates, including the additional operating costs
14required to provide comparable complementary paratransit service
15as required by Section 37.121 of Title 49 of the Code of Federal
16Regulations, pursuant to the federal Americans with Disabilities
17Act of 1990 (42 U.S.C. Sec. 12101 et seq.), as identified in the
18operator’s paratransit plan pursuant to Section 37.139 of Title 49
19of the Code of Federal Regulations.

20(B) Exclusion of startup costs for new services for a period of
21not more than two years.

22(b) As used in this section, the following terms have the
23following meanings:

24(1) “Operating cost” means the total operating cost as reported
25by the operator under the Uniform System of Accounts and
26Records, pursuant to Section 99243 and subdivision (a) of Section
2799247.

28(2) “Revenue vehicle hours” has the same meaning as “vehicle
29service hours,” as defined in subdivision (h) of Section 99247.

30(3) “Consumer Price Index,” as applied to an operator, is the
31regional Consumer Price Index for that operator’s region, as
32published by the United States Bureau of Labor Statistics. If a
33regional index is not published, the index for the State of California
34applies.

35(4) “New service” has the same meaning as “extension of public
36transportation services” as defined in Section 99268.8.

37(c) The restrictions in this section do not apply to allocations
38made for capital purposes.

39(d) The exclusion of cost increases described in paragraph (3)
40of subdivision (a) applies solely for the purpose of calculating an
P10   1operator’s eligibility to claim funds pursuant to this section and
2does not authorize an operator to report an operating cost per
3revenue vehicle hour other than as described in this section and in
4Section 99247, to any of the following entities:

5(1) The Controller pursuant to Section 99243.

6(2) The entity conducting the fiscal audit pursuant to Section
799245.

8(3) The entity conducting the performance audit pursuant to
9Section 99246.

end delete
10begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 99314.6 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is amended
11to read:end insert

12

99314.6.  

(a) Except as provided in Section 99314.7, the
13following eligibility standards apply:

14(1) Except as provided in paragraph (2), funds shall not be
15allocated for operating purposes pursuant to Sections 99313 and
1699314 to an operator unless the operator meets either of the
17following efficiency standards:

18(A) The operator’s total operating cost per revenue vehicle hour
19in the latest year for which audited data are available does not
20exceed the sum of the preceding year’s total operating cost per
21revenue vehicle hour and an amount equal to the product of the
22percentage change in the Consumer Price Index for the same period
23multiplied by the preceding year’s total operating cost per revenue
24vehicle hour.

25(B) The operator’s average total operating cost per revenue
26vehicle hour in the latest three years for which audited data are
27available does not exceed the sum of the average of the total
28operating cost per revenue vehicle hour in the three years preceding
29the latest year for which audited data are available and an amount
30equal to the product of the average percentage change in the
31Consumer Price Index for the same period multiplied by the
32average total operating cost per revenue vehicle hour in the same
33three years.

34(2) The transportation planning agency, county transportation
35commission, or the San Diego Metropolitan Transit Development
36Board, as the case may be, shall adjust the calculation of operating
37costs and revenue vehicle hours pursuant to paragraph (1) to
38account for either or both of the following factors:

39(A) Exclusion of costs increases beyond the change in the
40Consumer Price Index for fuel; alternative fuel programs; power,
P11   1including electricity; insurance premiums and payments in
2settlement of claims arising out of the operator’s liability; or state
3or federal mandates, including the additional operating costs
4required to provide comparable complementary paratransit service
5as required by Section 37.121 of Title 49 of the Code of Federal
6Regulations, pursuant to the Americans with Disabilities Act of
71990 (42 U.S.C. Sec. 12101 et seq.), as identified in the operator’s
8paratransit plan pursuant to Section 37.139 of Title 49 of the Code
9of Federal Regulations.

10(B) Exclusion of startup costs for new services for a period of
11not more than two years.

12(3) Funds withheld from allocation to an operator pursuant to
13paragraph (1) shall be retained by the transportation planning
14agency, county transportation commission, or the San Diego
15Metropolitan Transit Development Board, as the case may be, for
16reallocation to that operator for two years following the year of
17ineligibility. In a year in which an operator’s funds are allocated
18pursuant to paragraph (1), funds withheld from allocation during
19a preceding year shall also be allocated. Funds not allocated before
20the commencement of the third year following the year of
21ineligibility shall be reallocated to cost effective high priority
22regional transit activities, as determined by the transportation
23planning agency, county transportation commission, or the San
24Diego Metropolitan Transit Development Board, as the case may
25be. If that agency or commission, or the board, determines that no
26cost effective high priority regional transit activity exists, the
27unallocated funds shall revert to the Controller for reallocation.

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.

P12   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 costs increases described in paragraph (2)
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.

16(e) The restrictions in this section shall not apply to the
17allocation of funds made pursuant to Sections 99313 and 99314
18after January 1, 2010, and through the 2015-16 fiscal year.

begin insert

19(f) This section shall become inoperative on July 1, 2016, and,
20as of January 1, 2017, is repealed, unless a later enacted statute,
21that becomes operative on or before January 1, 2017, deletes or
22extends the dates on which it becomes inoperative and is repealed.

end insert
23begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 99314.6 is added to the end insertbegin insertPublic Utilities Codeend insertbegin insert,
24to read:end insert

begin insert
25

begin insert99314.6.end insert  

(a) Except as provided in Section 99314.7, the
26following eligibility standards apply:

27(1) Except as provided in paragraph (2), funds shall not be
28allocated for operating purposes pursuant to Sections 99313 and
2999314 to an operator unless the operator meets either of the
30following efficiency standards:

31(A) The operator’s total operating cost per revenue vehicle hour
32in the latest year for which audited data are available does not
33exceed the sum of the preceding year’s total operating cost per
34revenue vehicle hour and an amount equal to the product of the
35percentage change in the Consumer Price Index for the same
36period multiplied by the preceding year’s total operating cost per
37revenue vehicle hour.

38(B) The operator’s average total operating cost per revenue
39vehicle hour in the latest three years for which audited data are
40available does not exceed the sum of the average of the total
P13   1operating cost per revenue vehicle hour in the three years
2preceding the latest year for which audited data are available and
3an amount equal to the product of the average percentage change
4in the Consumer Price Index for the same period multiplied by the
5average total operating cost per revenue vehicle hour in the same
6three years.

7(2) The transportation planning agency, county transportation
8commission, or the San Diego Metropolitan Transit Development
9Board, as the case may be, shall adjust the calculation of operating
10costs and revenue vehicle hours pursuant to paragraph (1) to
11account for either or both of the following factors:

12(A) Exclusion of costs increases beyond the change in the
13Consumer Price Index for fuel; alternative fuel programs; power,
14including electricity; insurance premiums and payments in
15settlement of claims arising out of the operator’s liability; or state
16or federal mandates, including the additional operating costs
17required to provide comparable complementary paratransit service
18as required by Section 37.121 of Title 49 of the Code of Federal
19Regulations, pursuant to the Americans with Disabilities Act of
201990 (42 U.S.C. Sec. 12101 et seq.), as identified in the operator’s
21paratransit plan pursuant to Section 37.139 of Title 49 of the Code
22of Federal Regulations.

23(B) Exclusion of startup costs for new services for a period of
24not more than two years.

25(3) Funds withheld from allocation to an operator pursuant to
26paragraph (1) shall be retained by the transportation planning
27agency, county transportation commission, or the San Diego
28Metropolitan Transit Development Board, as the case may be, for
29reallocation to that operator for two years following the year of
30ineligibility. In a year in which an operator’s funds are allocated
31pursuant to paragraph (1), funds withheld from allocation during
32a preceding year shall also be allocated. Funds not allocated
33before the commencement of the third year following the year of
34ineligibility shall be reallocated to cost effective high priority
35regional transit activities, as determined by the transportation
36planning agency, county transportation commission, or the San
37Diego Metropolitan Transit Development Board, as the case may
38be. If that agency or commission, or the board, determines that no
39cost effective high priority regional transit activity exists, the
40unallocated funds shall revert to the Controller for reallocation.

P14   1(b) As used in this section, the following terms have the following
2meanings:

3(1) “Operating cost” means the total operating cost as reported
4by the operator under the Uniform System of Accounts and
5Records, pursuant to Section 99243 and subdivision (a) of Section
699247.

7(2) “Revenue vehicle hours” has the same meaning as “vehicle
8service hours,” as defined in subdivision (h) of Section 99247.

9(3) “Consumer Price Index,” as applied to an operator, is the
10regional Consumer Price Index for that operator’s region, as
11published by the United States Bureau of Labor Statistics. If a
12regional index is not published, the index for the State of California
13applies.

14(4) “New service” has the same meaning as “extension of public
15transportation services” as defined in Section 99268.8.

16(c) The restrictions in this section do not apply to allocations
17made for capital purposes.

18(d) The exclusion of costs increases described in paragraph (2)
19of subdivision (a) applies solely for the purpose of calculating an
20operator’s eligibility to claim funds pursuant to this section and
21does not authorize an operator to report an operating cost per
22revenue vehicle hour other than as described in this section and
23in Section 99247, to any of the following entities:

24(1) The Controller pursuant to Section 99243.

25(2) The entity conducting the fiscal audit pursuant to Section
2699245.

27(3) The entity conducting the performance audit pursuant to
28Section 99246.

29(e) This section shall become operative on July 1, 2016.

end insert


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