An Act amending Title 74 (Transportation) of the Pennsylvania Consolidated Statutes, in sustainable mobility options, further providing for definitions, for fund, for application and approval process, for Federal funding, for coordination and consolidation, for operating program, for asset improvement program, for new initiatives program, for programs of Statewide significance and for program oversight and administration, providing for small purchase procedures and repealing provisions relating to evaluation of private investment opportunities.

PRINTER'S NO. 761
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 597
Session of
2025
INTRODUCED BY LAUGHLIN, FLYNN, LANGERHOLC, YAW, BARTOLOTTA,
SAVAL, FONTANA, VOGEL, DUSH, PENNYCUICK, HUTCHINSON, BAKER,
KANE, STEFANO, KEARNEY, ARGALL, BOSCOLA AND COMITTA,
MAY 12, 2025
REFERRED TO TRANSPORTATION, MAY 12, 2025
AN ACT
Amending Title 74 (Transportation) of the Pennsylvania
Consolidated Statutes, in sustainable mobility options,
further providing for definitions, for fund, for application
and approval process, for Federal funding, for coordination
and consolidation, for operating program, for asset
improvement program, for new initiatives program, for
programs of Statewide significance and for program oversight
and administration, providing for small purchase procedures
and repealing provisions relating to evaluation of private
investment opportunities.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definitions of "community transportation
service" or "shared ride service," "community transportation
system," "local transportation organization," "operating
expenses" and "Public Passenger Transportation Performance
Report" in section 1503 of Title 74 of the Pennsylvania
Consolidated Statutes are amended and the section is amended by
adding definitions to read:
§ 1503. Definitions.
The following words and phrases when used in this chapter
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shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Class 1 transit entity." A local transportation
organization or transportation company, excluding PAAC,
operating 1,000 or more transit vehicles in the peak period.
"Class 2 transit entity." A local transportation
organization or transportation company, excluding SEPTA,
operating more than 300 but less than 1,000 transit vehicles in
the peak period.
"Class 3 transit entity." A local transportation
organization or transportation company, excluding SEPTA and
PAAC, operating 300 or less fixed-route transit vehicles in the
peak period serving an urbanized area. A class 3 transit entity
may also hold a class 4 designation for certain portions of its
service area for purposes of eligible funding.
"Class 4 transit entity." A local transportation
organization or transportation company, excluding SEPTA and
PAAC, which serves a nonurbanized area and, during the 1990-1991
fiscal year, received or was approved to receive funding under
the act of February 11, 1976 (P.L.14, No.10), known as the
Pennsylvania Rural and Intercity Common Carrier Surface
Transportation Assistance Act. A class 4 transit entity may also
hold a class 3 designation for certain portions of its service
area for purposes of eligible funding.
* * *
"Community transportation service" or "shared ride service."
[Door-to-door] A demand response transportation system that is
available to the general public on a nonexclusive basis,
operates on a nonfixed route basis and charges a fare to all
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riders. The term does not include exclusive ride taxi service,
charter and sightseeing service, nonpublic transportation,
school bus and limousine service.
"Community transportation system." A [person] public or
nonprofit entity or organization that provides community
transportation service designated by a county or other
governmental entity and contracts with the Department of
Transportation to receive revenue replacement funds.
* * *
"Formula Grants for Rural Areas Program." A public
transportation program, authorized by the Congress of the United
States and administered by the United States Department of
Transportation to assist states and local governmental
authorities in financing capital, operating, planning and job
access and reverse commute projects, associated with providing
public transportation in rural areas under 49 U.S.C. § 5311
(relating to formula grants for rural areas) .
"Full level of performance." The objective standard
established by the Federal Transit Administration or the
department, or both, for determining whether a capital asset is
in a state of good repair.
* * *
"Local transportation agency safety plan." The plan to
improve the safety of all public transportation systems that
receive Federal and State financial assistance under 49 U.S.C. §
5329 (relating to public transportation safety program).
"Local transportation organization." Any of the following:
(1) A political subdivision or a public transportation
authority, port authority or redevelopment authority,
organized under the laws of this Commonwealth or pursuant to
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an interstate compact or otherwise empowered to render,
contract for the rendering or assist in the rendering of
transportation service in a limited area in this
Commonwealth, even though it may also render or assist in
rendering transportation service in adjacent states.
(2) A legally existing and established nonprofit
association that directly or indirectly provides public
transportation service.
(3) A legally existing and established nonprofit
association of public transportation providers operating
within this Commonwealth.
* * *
"Operating expenses." Total expenses required to continue
service to the public and to permit needed improvements in
service which are not self-supporting and otherwise for any
purpose in furtherance of public passenger transportation[,
including all State asset maintenance costs]. The term does not
include expenditures for capital projects unless specific
approval is provided by the Department of Transportation.
* * *
"PAAC." The Port Authority of Allegheny County organized and
existing under the act of April 6, 1956 (1955 P.L.1414, No.465),
known as the Second Class County Port Authority Act.
* * *
"Performance target." A quantifiable level of performance or
condition, expressed as a value for the measure to be achieved
for a fiscal year in order to reach a state of good repair.
"Preventive maintenance costs." The activities, supplies,
materials, labor, services and associated costs required to
preserve or extend the functionality and serviceability of an
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asset in a cost-effective manner, up to and including the
current state of art for maintaining the asset.
* * *
"Public Passenger Transportation Performance Report." An
annual report completed by the Department of Transportation
which shall include all of the following:
(1) Each local transportation organization's passengers,
revenue vehicle miles, revenue vehicle hours and senior
[passengers] ridership statistics for the most recently
available fiscal year.
(2) Any other statistical information that the
Department of Transportation deems necessary.
* * *
"SEPTA." The Southeastern Pennsylvania Transportation
Authority organization organized and existing under Chapter 17
(relating to metropolitan transportation authorities).
"State of good repair." The condition in which a capital
asset is able to operate at a full level of performance.
* * *
"Transit asset management plan." The federally required
transit asset management plan that includes an inventory of
capital assets, a condition assessment of inventoried assets, a
decision support tool and a prioritization of investments needed
to reach a state of good repair.
* * *
"Transportation development plan." A planning tool prepared
by a transit entity used to analyze the need for transit in a
defined area, evaluate the services that are provided and
develop strategies to match the service to the identified
transit needs.
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* * *
Section 2. Sections 1506(d)(2) and 1507(a)(6.1), (b) and (c)
of Title 74 are amended to read:
§ 1506. Fund.
* * *
(d) Use of revenues.--Money in the fund shall be used by the
department as follows:
* * *
(2) for costs incurred directly by the department, not
to exceed the amount allocated to the department under this
chapter, in the administration of public passenger
transportation programs, including under this chapter; and
* * *
§ 1507. Application and approval process.
(a) Application.--An eligible applicant that wishes to
receive financial assistance under this chapter shall submit a
written application to the department on a form developed by the
department, which shall include the following:
* * *
(6.1) [A statement of policy outlining the basic
principles for the adjustment of fare growth to meet the rate
of inflation.] A statement of policy outlining the basic
policy for fare adjustments that may be needed to meet the
financial and performance target of the transit organization
as part of the transit organization's five-year financial
projections included in the planning study or transportation
development plan update to be completed under section
1513(e).
* * *
(b) Approval and award.--Upon determining that an applicant
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has complied with this chapter, applicable rules and regulations
and any other requirement with respect to the financial
assistance requested, the department may award financial
assistance to the applicant. If the department awards financial
assistance to the applicant, the department and the applicant
shall enter into a financial assistance agreement setting forth
the terms and conditions governing the use of the financial
assistance and the timing of payment of the funds. The
department, in collaboration with and duly considering and
responding to all feedback and recommendations received from
local transportation organizations , shall develop guidelines for
the application for and awarding of financial assistance under
this chapter and shall forward them to the Legislative Reference
Bureau for publication in the next available issue of the
Pennsylvania Bulletin.
(c) Restriction on use of funds.--[Unless the department
grants the award recipient a waiver allowing the funds to be
used for a different purpose, financial assistance under this
chapter shall be used only for activities set forth under the
financial assistance agreement. The department's regulations
shall describe circumstances under which it will consider waiver
requests and shall set forth all information to be included in a
waiver request. The waiver request shall include a plan of
corrective action to demonstrate that the award recipient does
not have an ongoing need to use financial assistance funds for
activities other than those for which funds were originally
awarded. The duration of the waiver may not exceed the duration
of the plan of corrective action. The department shall monitor
implementation of the plan of corrective action. If the plan of
corrective action is not implemented by the local transportation
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organization, the department shall rescind the waiver approval.]
Financial assistance under this chapter shall be used only for
activities provided under the financial assistance agreement
unless the department grants the award recipient a waiver
allowing the funds to be used for a different purpose. The
department's regulations shall describe circumstances under
which the department will consider waiver requests and shall
provide all information to be included in a waiver request. The
maximum duration of a waiver shall be until the financial need,
project or activity is completed that warranted the waiver and
may be further extended within the discretion of the department.
Section 3. Section 1508 of Title 74 is amended by adding a
subsection to read:
§ 1508. Federal funding.
* * *
(e) Subrecipients.--Rural public transportation funding
received by the department from the Formula Grants for Rural
Areas Program under 49 U.S.C. § 5311 (relating to formula grants
for rural areas) shall be distributed to local transportation
organizations that are subrecipients of Federal funds as
provided under this subsection. The following shall apply:
(1) The department shall allocate not less than 70% of
the annual apportionment under 49 U.S.C. § 5311 that the
department receives as the direct recipient of funds from the
Formula Grants for Rural Areas Program to eligible Class 3
and Class 4 transit entities who have any form of rural
service area. The distribution may not include funding
received by the department under 49 U.S.C. § 5311(b)(3). The
department shall prepare an annual application to the Federal
Transit Administration for the full allocation of apportioned
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funds. The department's application shall outline the
operation allocations for eligible subrecipients and capital
allocations for eligible capital expenses.
(2) Eligible applicants may apply for funds on an annual
basis. The department shall maximize the use of funds under
49 U.S.C. § 5311 for operating and shall notify applicants by
April 1 of each year of the amount for their allocation.
(3) Eligible applicants may hold funds under section
1513 (relating to operating program) in reserve up to an
amount that equals 100% of operating costs of the prior year.
Allocations under section 1513 shall not be reduced if
general State operating funds under section 1513 in reserve
are less than 100% of systemwide budget operating costs of
the prior year.
(4) The Governor shall designate the department to
allocate and distribute the funds with proper oversight for
eligible activities under 49 U.S.C. § 5311 to ensure:
(i) Priority for fixed route rural public
transportation agencies.
(ii) The provision of proper technical assistance
for rural designated areas.
(iii) Fair and equitable distribution of funds.
(iv) State administration of projects required by
objectives under 49 U.S.C. § 5311.
(v) Subject to paragraph (5), development of rules
to define the process for service expansion.
(5) The following:
(i) The department shall promulgate temporary
regulations that shall expire no later than July 1, 2026,
or upon promulgation of final regulations, whichever is
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earlier. The department may promulgate temporary
regulations not subject to:
(A) Section 612 of the act of April 9, 1929
(P.L.177, No.175), known as The Administrative Code
of 1929.
(B) Sections 201, 202, 203, 204 and 205 of the
act of July 31, 1968 (P.L.769, No.240), referred to
as the Commonwealth Documents Law.
(C) Sections 204(b) and 301(10) of the act of
October 15, 1980 (P.L.950, No.164), known as the
Commonwealth Attorneys Act.
(D) The act of June 25, 1982 (P.L.633, No.181),
known as the Regulatory Review Act.
(ii) The department's authority to adopt temporary
regulations under subparagraph (i) shall expire 90 days
after the effective date of this subparagraph.
Regulations adopted after this period shall be
promulgated as provided by law.
(6) The department shall promulgate final-form
regulations no later than July 1, 2027.
(7) The department shall retain up to 5% of funds under
section 1513 for discretionary use and distribution by the
secretary.
(8) The department shall, as part of its annual report,
publish the amount of program funds under 49 U.S.C. § 5311
apportioned to the State, the amounts applied for and the
amounts distributed to each subrecipient.
Section 4. Section 1512(a) and (b)(1) of Title 74 are
amended and subsection (b) is amended by adding a paragraph to
read:
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§ 1512. Coordination and consolidation.
(a) Coordination.--Coordination is required in regions where
two or more award recipients have fixed route, shared ride, or
both, services or activities for which financial assistance is
being provided under this chapter to assure that the services or
activities are provided efficiently and effectively.
(b) Consolidation and mutual cooperation.--
(1) The department, [in consultation with] at the
request of local governments and local transportation
organizations, shall study the feasibility of consolidation
and mutual cooperation among local transportation
organizations as a means of reducing annual expenses without
loss of service to the communities they serve. The study
shall examine the creation of service regions or mutual
cooperation pacts to determine whether either method would
reduce annual expenses. The feasibility analysis is to
include a cost-benefit analysis and operational analysis.
* * *
(4) After the five-fiscal-year period under paragraph
(3), the department shall waive the match requirement under
sections 1513 and 1514 for an additional five fiscal years
for the local transportation organization's participation in
the recommended action under paragraph (2) in an amount not
to exceed the estimated annual net savings of the implemented
recommendations. At the end of the five-year period, the
local match shall begin at the preconsolidated level.
* * *
Section 5. Sections 1513(a)(2), (d)(3) and (4), (e), (f),
(g) and (h) and 1514(a), (b), (e) introductory paragraph and
(2), (e.1) and (f) of Title 74 are amended to read:
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§ 1513. Operating program.
(a) Eligible applicants.--The following may apply for
financial assistance for operating expenses under this section:
* * *
(2) A Commonwealth agency or instrumentality whose
primary purpose is providing public transportation.
* * *
(d) Local match requirements.--
* * *
(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] At
the discretion of the local transportation organization,
funding provided by local and private entities, including
[advertising or naming rights] non-fare transit revenue , 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 which receives
direct or indirect Federal funds 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
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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
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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
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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.]
(e) Planning studies.--
(1) Beginning January 1, 2026 , the department may
require each award recipient to conduct an independent
planning study or transportation development plan update
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every five years to evaluate the public transit services
being funded under this section. The planning study shall
include, but not be limited to, the following:
(i) A financial performance analysis of existing
services and trends.
(ii) A customer satisfaction survey.
(iii) A five-year capital improvement plan,
including a performance target consistent with the
recipient's adopted transit asset management plan for
reaching a state of good repair.
(iv) A five-year service plan based on customer and
community input and participation.
(v) A five-year financial plan based on the adopted
service plan and levels of funding.
(vi) An evaluation of safety and performance target
related to the recipient's adopted local transportation
agency safety plan.
(vii) Other analysis as may be needed.
(2) The department shall fund the planning studies
through a technical assistance grant to the award recipient
in full or in part and match Federal funds to conduct the
study.
(3) The department may utilize consultants already under
contract or solicit independently or jointly with other
transit systems for a consultant to conduct the study in
compliance with all applicable Federal and State procurement
regulations.
(4) The department shall deliver an executive summary of
the planning studies to the Governor, the chairperson and
minority chairperson of the Transportation Committee of the
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Senate and the chairperson and minority chairperson of the
Transportation Committee of the House of Representatives. The
department shall develop a list of best practices documented
by the studies conducted under this subsection and post the
best practices and the executive summary on the department's
publicly accessible Internet website.
(f) Performance criteria.--A p erformance target shall be
developed by the recipient based on the current and projected
trends in service and adopted by the recipient's governing
board. The department shall review and evaluate the progress of
the performance target to determine if the service has improved
or if the performance target needs adjusted.
§ 1514. Asset improvement program.
(a) Eligible applicants.--
(1) The following may apply for financial assistance for
improvement, replacement or expansion of capital projects
under this section:
(i) A local transportation organization.
(ii) An agency or instrumentality of the
Commonwealth engaged in public transportation service.
(iii) A [person] public or nonprofit entity or
organization responsible for coordinating community
transportation program services.
(iv) Any other [person] public or nonprofit entity
or organization that provides public transportation
services the department deems to be eligible.
(2) The department and the local transportation
org anization shall develop and maintain four-year and 12-year
plans that summarize the capital projects and financial
assistance commitments for each [applicant] local
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transportation organization in accordance with the local
transportation organization's adopted transit asset
management plan and annual performance target. The department
may enter into multiyear agreements to provide financial
assistance for capital projects based upon cash flow and
revenue projections for the fund. Each capital project shall
be based on the transit asset management plan developed by
the local transportation organization in collaboration with
the department.
(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 following:
(1) Evidence satisfactory to the department that the
proposed capital project is included in the first year of the
applicant's four-year capital plan, transit asset management
plan's performance target and its federally approved
transportation improvement program.
(2) If an applicant is requesting financial assistance
for replacement of a capital project, evidence satisfactory
to the department that the capital project to be replaced has
exceeded the useful life criteria [as defined by the
department] in accordance with the applicant's transit asset
management plan's performance target. At its discretion, the
department may approve funding to replace a capital project
that does not exceed the useful life criteria if the
applicant provides documentation acceptable to the department
to justify the early replacement of the capital project.
[(3) If the applicant is requesting financial assistance
for expansion of a capital project, evidence satisfactory to
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the department that the applicant will have sufficient future
annual operating funds to support the proposed expansion.
(4) Any other information required by the department,
including a return on investment analysis or a life cycle
cost analysis, or both.]
* * *
(e) Priorities.--The award of [financial assistance under
this section] discretionary funding under subsection (e.1)(4)
shall be subject to the following set of priorities in
descending order of significance unless a compelling return on
investment analysis for a project in a lower category is
provided to and approved by the department:
* * *
(2) Requests for funds required to match federally
approved capital projects [funded under 49 U.S.C. §§ 5307
(relating to urbanized area formula grants) and 5309
(relating to capital investment grants and loans) and other
federally approved capital projects].
* * *
(e.1) [Distribution.--] Allocation and distribution
procedure .-- During each fiscal year, capital project,
preventative maintenance costs and other program funds shall be
distributed to each transit organization on a monthly basis in
accordance with the formula specified in this section and used
strictly in accordance with the use specified in this section.
The department shall allocate financial assistance under this
section on a percentage basis of available funds each fiscal
year as follows:
(1) [The local transportation organization organized and
existing under Chapter 17 (relating to metropolitan
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transportation authorities) as the primary provider of public
passenger transportation for the counties of Bucks, Chester,
Delaware, Montgomery and Philadelphia shall receive 69.4% of
the funds available for distribution under this section.]
SEPTA shall receive 69.4% of the funds available for
distribution under this section.
(2) [The local transportation organization organized and
existing under the act of April 6, 1956 (1955 P.L.1414,
No.465), known as the Second Class County Port Authority Act,
as the primary provider of public transportation for the
county of Allegheny shall receive 22.6% of the funds
available for distribution under this section.] PAAC shall
receive 22.6% of the funds available for distribution under
this section.
(3) Other local transportation organizations organized
and existing as the primary providers of public passenger
transportation for the counties of this Commonwealth not
identified under paragraph (1) or (2) shall receive 8% of the
funds available for distribution under this section. The
department shall allocate the funds under this paragraph
among the local transportation organizations.
(4) Notwithstanding paragraphs (1), (2) and (3) and
before distributing the funds under paragraph (1), (2) or
(3), the department shall set aside 5% of the funds available
for distribution under this section for discretionary use and
distribution by the secretary.
(5) The department shall promulgate regulations to
provide that each year the department shall make available to
each local transportation organization under paragraph (3)
the local transportation organization's share of capital
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funds based on the approved formula for the allocation of
funds under this section distribution as provided under this
title by April 30 of each year. Based upon local planning
efforts and board-approved projects, the department shall
make grants to a local transportation organization for the
amount applied for by the local transportation organization.
Excess funds for which a local transportation organization
does not apply shall be placed in a fund for the department
to distribute to eligible local transportation organizations
under paragraph (3).
(6) On or before the fifth day of each month, the
Treasury Department shall certify to the department the total
amount then available for distribution and the department
shall make distribution of payments required under this
subsection on or before the 20th day of each month.
(7) If, during any fiscal year, either the number of
vehicles operated by a local transportation organization or
transportation company or the area served by a local
transportation organization or transportation company changes
so that the local transportation organization or
transportation company meets the criteria for a different
transit entity class provided under section 1503 (relating to
definitions), on or before July 15 of the fiscal year which
follows the change and in each fiscal year thereafter, the
department shall reflect any change in the transit entity
class of the local transportation organization or
transportation company in the department certification for
that year and subsequent fiscal years. The following shall
apply:
(i) In the department's calculation of the transit
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entity shares under this section for each transit entity
class required by section 1508(e) (relating to Federal
funding) for the fiscal year following the change in a
local transportation organization or transportation
company's transit entity class and thereafter, the
department shall include the amount of the transit entity
shares under this section allocated to the local
transportation organization or transportation company for
the fiscal year prior to the change in the transit entity
class, in the transit entity shares under this section
for the new transit entity class of such a local
transportation organization or transportation company,
and shall delete an equal amount from the transit entity
shares under this section for the transit entity class
for which such a local transportation organization or
transportation company no longer meets the criteria in
the new fiscal year.
(ii) No local transportation organization or
transportation company which has changed from one transit
entity class to another due to either an increase in the
number of vehicles operated or due to the most recent
Federal decennial census prepared by the United States
Census Bureau declaring the transportation organization
or transportation company's service area an urbanized
area shall receive less than the amount transferred on
the account by the department under this section.
(8) No change in classification or distribution to a
Class 1, 2, 3 or 4 transit entity shall change, reduce, alter
or otherwise be done in a manner that would adversely impact
the distribution percentages under this section and amounts
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that SEPTA and PAAC are entitled to under paragraphs (1) and
(2).
(f) Bonding by award recipients.--With the approval of the
department, an award recipient that is permitted by law to issue
bonds may do so for the purpose of financing a [multiyear]
single year or multiyear capital project, as applicable. The
department shall enter into an agreement with the award
recipient providing that payments of the awarded funds
sufficient to satisfy requirements of the bonds issued be made
directly to the trustee of the bondholders until such time as
the bonds are retired.
Section 6. Section 1515(a) of Title 74 is amended and
subsection (c) is amended by adding a paragraph to read:
§ 1515. New initiatives program.
(a) Eligible applicants.--[Persons] A public or nonprofit
entity or organization eligible to apply for financial
assistance under section 1514 (relating to asset improvement
program) shall also be eligible to apply for financial
assistance for new or expansions of fixed guideway systems or
improvements of a corridor project designed to expedite bus
service under this section.
* * *
(c) Source of funds and priorities.--
* * *
(3) The department may develop and implement a pilot
program to test and evaluate new models of paying and
delivering shared ride and community transportation in
collaboration with existing public transit systems and other
transportation organizations and entities in this
Commonwealth with the goal of developing a sustainable and
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need-based delivery and payment of services model.
* * *
Section 7. Sections 1516(a)(3) and (d)(3)(iv), (4) and (5)
and 1518 of Title 74 are amended to read:
§ 1516. Programs of Statewide significance.
(a) General rule.--Money in the fund allocated for programs
of Statewide significance shall be used by the department to
support public transportation programs, activities and services
not otherwise fully funded through the operating program,
capital program or asset improvement program. In addition to any
requirements contained in this section, applications must comply
with section 1507 (relating to application and approval
process). Programs of Statewide significance shall include:
* * *
(3) Community transportation capital and service
stabilization. The department shall issue a notification of
the availability of funds for the programs under this
paragraph by March 1 of each year.
* * *
(d) Community transportation.--
* * *
(3) Financial assistance for service stabilization may
only be provided for the following purposes:
* * *
(iv) Offsetting operating expenses that cannot be
covered by fare revenue due to emergencies declared by
the Governor or reauthorized by the General Assembly.
* * *
(4) The department shall give high priority to providing
financial assistance under this subsection as match for
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Federal funding to support capital projects for community
transportation systems[.] as long as the Federal funding
being matched is not reducing the amount of Federal funding
available to support existing federally funded public
transportation direct or subrecipients.
[(5) The department shall conduct a study to evaluate
the effectiveness and efficiency of community transportation
service delivery as it relates to human service programs. The
Department of Public Welfare, the Office of the Budget and
the Department of Aging and other appropriate Commonwealth
agencies identified by the department shall participate in
the study. Within two years following the effective date of
this section, these agencies shall make recommendations to
the Governor and the Majority and Minority chairpersons of
the Transportation Committee of the Senate and the Majority
and Minority chairpersons of the Transportation Committee of
the House of Representatives for improving coordination and
efficiency of human services and community transportation.]
* * *
§ 1518. Program oversight and administration.
The department is authorized to use available money in the
fund to cover the costs incurred by the department in
administering all of its public passenger transportation funding
programs, including those established under this chapter, and
incurred in the carrying out of its responsibilities with
respect to the programs[.], not to exceed the amount authorized
to the department under this chapter. The department shall
annually produce a report on the department's publicly
accessible Internet website detailing the amount of funding
received for administering the program, total funding received
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and total funds disbursed under each program to be funded in the
entire program.
Section 8. Title 74 is amended by adding a section to read:
§ 1518.1. Small purchase procedures.
A local transportation company or transportation organization
may use small purchase procedures to acquire services, supplies
or other property valued at more than the micro-purchase
threshold but less than the Federal simplified acquisition
threshold as defined under 2 CFR 200.1 (relating to
definitions).
Section 9. Section 1520 of Title 74 is repealed:
[§ 1520. Evaluation of private investment opportunities.
(a) Study.--A local transportation organization receiving
funding in an amount greater than $5,000,000 annually under this
chapter shall undertake a study to evaluate the feasibility of
utilizing partnerships with private service providers and
financial partners as a method to operate and finance new or
existing services. Within one year following the effective date
of this section, each local transportation organization required
to evaluate private participation under this section shall
submit a report to the secretary and the majority chairperson
and minority chairperson of the Transportation Committee of the
Senate and the majority chairperson and minority chairperson of
the Transportation Committee of the House of Representatives.
(b) Report.--The report shall, at a minimum, include the
results of the evaluation, a determination of the viability of
greater private partnering and any recommendations about how to
achieve greater participation from the private sector.
(c) Preclusion.--Nothing in this section shall preclude a
local transportation organization receiving less than $5,000,000
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annually under this chapter from making an evaluation of greater
private involvement in their operations.]
Section 10. This act shall take effect in 60 days.
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