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AB-1543 Transportation funds: transit operators: fare revenues.(2019-2020)

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Date Published: 02/22/2019 09:00 PM
AB1543:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 1543


Introduced by Assembly Member Holden

February 22, 2019


An act to amend Section 99268.17 of the Public Utilities Code, relating to transportation.


LEGISLATIVE COUNSEL'S DIGEST


AB 1543, as introduced, Holden. Transportation funds: transit operators: fare revenues.
Existing law provides various sources of funding to public transit operators. Under the Mills-Alquist-Deddeh Act, also known as the Transportation Development Act, revenues from a 1/4% sales tax in each county are available, among other things, for allocation by the transportation planning agency to transit operators, subject to certain financial requirements for an operator to meet in order to be eligible to receive moneys. Existing law sets forth alternative ways an operator may qualify for funding, including a standard under which the allocated moneys 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 generally establishes the required farebox ratio as 20% in urbanized areas and 10% in nonurbanized areas. Existing law provides various exceptions to the definition of “operating cost” for these purposes.
This bill would require a fare paid pursuant to a reduced fare transit program to be counted as a full adult fare for purposes of calculating any required ratios of fare revenues to operating costs specified in the act, except for purposes of providing information in a specified annual report to the Controller or providing information to the entity conducting a fiscal or performance audit pursuant to specified provisions.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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


SECTION 1.

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

99268.17.
 (a) Notwithstanding subdivision (a) of Section 99247, the following costs shall be excluded from the definition of “operating cost” for the purposes of calculating any required ratios of fare revenues to operating cost specified in this article:
(1) The additional operating costs required to provide comparable complementary paratransit service as required by Section 37.121 of Title 49 of the Code of Federal Regulations, pursuant to the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.), as identified in the operator’s paratransit plan pursuant to Section 37.139 of Title 49 of the Code of Federal Regulations that exceed the operator’s costs required to provide comparable complementary paratransit service in the prior year as adjusted by the Consumer Price Index.
(2) Cost increases beyond the change in the Consumer Price Index for all of the following:
(A) Fuel.
(B) Alternative fuel programs.
(C) Power, including electricity.
(D) Insurance premiums and payments in settlement of claims arising out of the operator’s liability.
(E) State and federal mandates.
(3) Startup costs for new services for a period of not more than two years.
(b) Notwithstanding Section 99205.7, a fare paid pursuant to a reduced fare transit program shall be counted as a full adult fare for purposes of calculating any required ratios of fare revenues to operating costs specified in this article. This subdivision shall apply to any free or reduced price fare offered for students, veterans, children, senior citizens, or persons with disabilities.

(b)

(c) The exclusion of costs from the definition of operating costs in subdivision (a) applies and the calculation of fare revenues pursuant to subdivision (b) apply solely for the purpose of this article and does do not authorize an operator to report an operating cost other than as defined in subdivision (a) of Section 99247 99247, fare revenues other than as defined in Section 99205.7, or a ratio of fare revenue to operating cost other than as that ratio is described elsewhere in this article, to any of the following entities:
(1) The Controller pursuant to Section 99243.
(2) The entity conducting the fiscal audit pursuant to Section 99245.
(3) The entity conducting the performance audit pursuant to Section 99246.