SECTIONS 99260-99273

99260.  Claims may be filed with the transportation planning agencyby operators under this article for the following purposes: (a) The support of public transportation systems. (b) Aid to public transportation research and demonstrationprojects. (c) Contributions for the construction of grade separationprojects specified in Section 99318.3.99260.2.  (a) Claims may be filed with the transportation planningagency by operators to contract with common carriers of personsoperating under a franchise or license to provide transportationservices during peak hours. "Peak hours" means the period of time during a day which have aclearly greater-than-average level of patronage, typically the twoperiods of time which reflect the influx of home-work and work-homepatronage on a transportation system. (b) Claims may be filed with the transportation planning agency bya transit district to make bulk purchases of passenger tickets forpassenger rail services, if it is authorized to make such purchasesby its enabling legislation.99260.5.  (a) Claims may also be filed with the transportationplanning agency by a city and county or a transit district under thisarticle for payments to be made to a railroad corporation subject tothe jurisdiction of the Public Utilities Commission and engaged inthe transportation of persons, as defined in Section 208, foroperating losses incurred in such transportation of persons betweenpoints within the city and county or the district, as the case maybe, and for that portion of the operating losses incurred in suchtransportation of persons in the city and county or the district, asthe case may be, whose origin or destination, or both, are outsidethe city and county or district. (b) A city and county or a transit district receiving funds undera claim filed pursuant to subdivision (a) shall use those funds forthe purposes specified in that subdivision.99260.6.  Public agencies authorized to file claims pursuant toSection 99234.9 may file claims under this article.99260.7.  In order to provide, or to contract to provide,transportation services using vehicles for the exclusive use ofelderly or handicapped persons, a city or a county, which iscontributing funds it is eligible to receive under this article to ajoint powers agency of which it is a member to operate a publictransportation system, may also file a claim under this article andmay also file a claim for funds made available pursuant to Section99313.99261.  The transportation planning agency may adopt rules andregulations supplemental to, and consistent with, those of thedepartment to further delineate procedures for the submission ofclaims and stating criteria by which they will be analyzed andevaluated. The criteria may include a statement of intent to disallow anyportion of an operator's claim which calls for moneys to financeunreasonable or arbitrary increases in executive level salaries basedon consideration of executive level salaries in other publicagencies and in the public transportation industry, both nationallyand within the state. To the extent necessary to perform its duties under this article,the transportation planning agency has full access to the books,records, and accounts of claimant operators.99261.5.  The San Diego Metropolitan Transit Development Board shalladopt rules and regulations for its area of jurisdiction. The transportation planning agency may include in its rules andregulations any rule and regulation of the transit development board.99262.  Claims for public transportation systems may include claimsfor money for all purposes necessary and convenient to thedevelopment and operation of the system, including planning andcontributions to the transportation planning process, acquisition ofreal property, construction of facilities and buildings, purchase andreplacement of vehicles (including those usable by handicappedpersons), and system operation, maintenance, and repair, payment forany of which purposes may take the form of direct expenditures orpayment of principal and interest on equipment trust certificates,bonded or other indebtedness, or any amounts in accomplishment of adefeasance of any outstanding revenue bond indenture.99262.5.  Any transit district whose formation was approved in anelection held in June 1972 may include in its claim an amount toreimburse any city in the district for financial support the city hasprovided to a regularly scheduled transportation service availableto the public from July 1, 1972, through December 31, 1972.99263.  An approved claim may include an amount to pay the principaland interest on bonds of the applicant for a public transportationsystem. This section shall not be construed as an authorization to anyapplicant to pledge revenues received from the county's localtransportation fund, unless approved by the voters of the countyunder Article 7 (commencing with Section 99320) of this chapter.99264.  An operator shall not be eligible for allocation under thisarticle if it routinely staffs with two or more persons a vehicle forpublic transportation purposes designed to be operated by oneperson.99266.  No moneys may be allocated to an operator whose claimincludes funds for an increase in operating budget in excess of 15percent above the preceding year or substantial increase or decreasein scope of operations or capital budget provisions for major newfixed facilities, unless the operator's claim is accompanied bystatements, reports, and such other supporting data as may bereasonably required to substantiate such change.99267.  If an operator ceases operations, any capital acquisitionsmade by that operator from funds allocated to it pursuant to thisarticle may be transferred to any claimant to provide transportationservices under this chapter.99268.  The expenditure of the funds received under this article byan operator may in no year exceed 50 percent of the amount requiredto meet operating, maintenance, and capital and debt servicerequirements of the system after deduction therefrom of approvedfederal grants estimated to be received and funds estimated to beallocated pursuant to Section 99314.5. Notwithstanding the 50-percent limitation, the amount budgeted forcapital requirements in any year or other period up to five years,less the amount of federal and other state funds granted or approvedtherefor, may be allocated and expended for capital improvements to agrade-separated mass transit system, if construction of suchfacilities has been found to be not inconsistent with the regionaltransportation plan of the transportation planning agency. Withinsuch five-year period, the transportation planning agency may orderthe amount of the allocation in any year to be set aside andaccumulated for accomplishment of the particular project.99268.1.  Commencing with claims for the 1980-81 fiscal year, anoperator that was in compliance with Section 99268 during the 1978-79fiscal year in order to be eligible for funds under this articleshall be eligible for such funds in any fiscal year, if it remains incompliance with that section during the fiscal year. Thedetermination of compliance for any fiscal year shall be made in thesame manner as the determination was made for the 1978-79 fiscalyear, except for the exemption provided under Section 99267.5. Anallowance for depreciation shall be made in the same manner asprovided in the 1978-79 fiscal year. For purposes of this section, an operator granted a waiver fromthe requirements of Section 99268 pursuant to Section 99268.8, as itread on January 1, 1979, shall not be deemed in compliance with thatsection.99268.2.  (a) In the case of an operator required to be incompliance with Section 99268 under Section 99268.1, the operator maybe allocated additional funds that could not be allocated to itbecause of such requirements, if it maintains, for the fiscal year, aratio of fare revenues to operating cost, as defined by subdivision(a) of Section 99247, at least equal (1) to one-fifth if serving anurbanized area or to one-tenth if serving a nonurbanized area or (2)to the ratio it had during the 1978-79 fiscal year, whichever isgreater. (b) In addition, such an operator having a ratio of the sum offare revenues and local support to operating cost greater thanone-fifth if serving an urbanized area, or one-tenth if serving anonurbanized area, during the 1978-79 fiscal year shall, at least,maintain that ratio in order to be eligible for additional fundspursuant to this section.99268.3.  (a) In the case of an operator which is serving anurbanized area, and which was eligible for funds under this articleduring the 1978-79 fiscal year even though not required to be incompliance with Section 99268 or which commenced operation after thatfiscal year, the operator shall be eligible for such funds in anyfiscal year, commencing with claims for the 1980-81 fiscal year, ifit maintains, for the fiscal year, a ratio of fare revenues tooperating cost, as defined by subdivision (a) of Section 99247, atleast equal to one-fifth or to the ratio it had during the 1978-79fiscal year, whichever is greater. (b) In addition, such an operator having a ratio of the sum offare revenues and local support to operating cost greater thanone-fifth during the 1978-79 fiscal year shall, at least, maintainthat ratio in order to be eligible for funds under this article. (c) In the case of an operator serving an urbanized area, andwhich was in operation during the 1978-79 fiscal year even though notthen eligible for funds under this article, but which has sincebecome eligible for such funds, the operator shall be eligible forsuch funds in any fiscal year, commencing with the 1980-81 fiscalyear, if it complies with either of the following: (1) The requirements of Section 99268. (2) The requirements of subdivisions (a) and (b).99268.4.  (a) In the case of an operator which is serving anonurbanized area, and which was eligible for funds under thisarticle during the 1978-79 fiscal year even though not required to bein compliance with Section 99268 or which commenced operation afterthat fiscal year, the operator shall be eligible for such funds inany fiscal year, commencing with claims for the 1980-81 fiscal year,if it maintains, for the fiscal year, a ratio of fare revenues tooperating cost, as defined by subdivision (a) of Section 99247, atleast equal to one-tenth or to the ratio it had during the 1978-79fiscal year, whichever is greater. (b) In addition, such an operator having a ratio of the sum offare revenues and local support to operating cost greater thanone-tenth during the 1978-79 fiscal year shall, at least, maintainthat ratio in order to be eligible for funds under this article.99268.5.  (a) Commencing with claims for the 1980-81 fiscal year, nofunds shall be allocated under this article in any fiscal year to anoperator providing services using vehicles for the exclusive use ofelderly and handicapped persons, unless the operator maintains, forthe fiscal year, a ratio of fare revenues to operating cost, asdefined by subdivision (a) of Section 99247, for those services atleast equal to one-tenth or to the ratio it had for those servicesduring the 1978-79 fiscal year, whichever is greater. (b) Notwithstanding subdivision (a), an operator which providesboth exclusive transportation services for elderly and handicappedpersons and regular scheduled public transportation services may beallocated funds under this article for the exclusive service if thecombined services qualify under Section 99268.1, 99268.2, 99268.3, or99268.4, as the case may be, and the ratio of fare revenues tooperating cost for the combined service shall not be less than theratio required in order to make allocations to the operator for itsregular scheduled services. (c) In a county which had less than 500,000 population asdetermined by the 1970 federal decennial census and more than 500,000in population as determined by the 1980 or 1990 federal decennialcensus, an operator in the county shall maintain a ratio of farerevenues to operating cost, as defined by subdivision (a) of Section99247, at least equal to one-fifth if serving an urbanized area orone-tenth if serving a nonurbanized area.99268.6.  (a) If a joint powers entity providing publictransportation services was funded at any time under this article andis subsequently dissolved, any succeeding entity providing suchservices shall not be eligible for funding, unless it conforms toSection 99268.1, 99268.2, 99268.3, 99268.4, 99268.5, or 99268.9, asthe case may be, which applied to its predecessor. (b) Except a city or a county filing a claim pursuant to Section99260.7, no public agency providing public transportation services,after withdrawing from, or while remaining in, a joint powers entityproviding public transportation services, shall be eligible forfunding under this article, unless it conforms to Section 99268.1,99268.2, 99268.3, 99268.4, or 99268.9, as the case may be, that thejoint powers entity is required to conform with in order to beeligible for such funding at the time the public agency commences itspublic transportation services. The public agency is an operator andshall be subject to Section 99268.9.99268.7.  Any unallocated funds resulting from the limitations ofSection 99268 may be used for capital intensive transit-relatedimprovements. Every effort shall be made to obtain federal funds forthe purposes of this section. Such improvements shall include, butnot be limited to, park-and-ride lots, terminal facilities, buswaiting shelters, exclusive lanes for buses, and the acquisition ofvehicles and rolling stock for replacement purposes.99268.8.  The required ratios of fare revenues to operating costprescribed by this article shall not apply to an extension of publictransportation services until two years after the end of the fiscalyear in which the extension of services was put into operation. Asused in this section, "extension of public transportation services"includes additions of geographical areas or route miles, orimprovements in service frequency or hours of service greater than 25percent of the route total, or the addition of new days of service,and for transit service claimants also includes the addition of a newtype of service, such as van, taxi, or bus. Within 90 days after the end of the first year of implementation,the operator shall submit to the transportation planning agency, thecounty transportation commission, or the San Diego MetropolitanTransit Development Board having jurisdiction over it, a report onthe extension of public transportation services, including, but notlimited to, the area served, the revenues generated, and the cost toprovide the extended services.99268.9.  (a) Except as otherwise provided in subdivision (b), if anoperator was allocated funds under this article during a fiscal yearin which it did not maintain the required ratio of fare revenues tooperating cost, the operator's eligibility to receive moneys from thelocal transportation fund and allocations pursuant to Sections99313.3 and 99314.3 shall be reduced during a subsequent penalty yearby the amount of the difference between the required fare revenuesand the actual fare revenues for the fiscal year that the requiredratio was not maintained. The penalty year shall be the fiscal yearthat begins one year after the end of the fiscal year during whichthe required ratio was not maintained. An operator subject to this subdivision shall demonstrate to thetransportation planning agency, the county transportation commission,or the San Diego Metropolitan Transit Development Board how it willachieve the required ratio of fare revenues during any penalty year. (b) The first fiscal year for which an operator does not maintainthe required ratio of fare revenues to operating cost is deemed agrace year, and shall not result in any penalty nor loss ofeligibility for funds under this article.99268.11.  Sections 99268.3, 99268.4, and 99268.9 may be waived bythe transportation planning agency with respect to an operator duringany fiscal year in which both of the following occurred, if thewaiver is necessary to enable the operator to provide vital publictransportation services: (a) The operator sustained two separate work stoppages for 15 daysor longer due to labor disputes. (b) At least one of the work stoppages was not related to a labordispute with the operator.99268.12.  Notwithstanding Sections 99268.2 and 99268.3, thetransportation planning agency or the county transportationcommission may set the required ratio of fare revenue to operatingcost at not less than three-twentieths for an operator in a countywith a population of 500,000 or less and serving an urbanized areawhere funds may be allocated under Article 8 (commencing with Section99400). Prior to setting the required ratio, the transportationplanning agency or the county transportation commission shall makefindings specifying the reasons for its action.99268.16.  Notwithstanding subdivision (a) of Section 99247, thecosts of providing ridesharing services are excluded from operatingcosts.99268.17.  (a) Notwithstanding subdivision (a) of Section 99247, theadditional operating costs required to provide comparablecomplementary paratransit service as required by Section 37.121 ofTitle 49 of the Code of Federal Regulations, pursuant to theAmericans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 etseq.), as identified in the operator's paratransit plan pursuant toSection 37.139 of Title 49 of the Code of Federal Regulations thatexceed the operator's costs required to provide comparablecomplementary paratransit service in the prior year as adjusted bythe Consumer Price Index, shall be excluded from the definition ofoperating cost for the purposes of calculating any required ratios offare revenues to operating cost specified in this article. (b) The exclusion of costs from the definition of operating costsin subdivision (a) applies solely for the purpose of this section anddoes not authorize an operator to report an operating cost otherthan as defined in subdivision (a) of Section 99247 or a ratio offare revenue to operating cost other than as that ratio is describedelsewhere 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 Section99245. (3) The entity conducting the performance audit pursuant toSection 99246. (c) This section shall become operative on January 1, 2007.99268.18.  The exclusions contained in Sections 99268.10, 99268.16,and 99268.17 shall not be applicable for purposes of determining anoperator's compliance with Section 99268.99268.19.  If fare revenues are insufficient to meet the applicableratio of fare revenues to operating cost required by this article, anoperator may satisfy that requirement by supplementing its farerevenues with local funds. "Local funds" means revenues derived fromtaxes imposed by the operator or by a county transportationcommission created pursuant to Division 12 (commencing with Section130000) of the Public Utilities Code.99269.  (a) Notwithstanding any other provision of this article, alloperators providing service within the area under the jurisdictionof the San Diego Metropolitan Transit Development Board and filingclaims pursuant to Section 99260 shall be considered a singleoperator. In order for all those operators to be eligible for fundsunder this article, an areawide ratio of fare revenues to operatingcost, as defined by subdivision (a) of Section 99247, shall bedetermined on the basis of the total operating cost and total farerevenues of all the operators, which ratio shall not be less than theareawide ratio for the 1978-79 fiscal year. (b) In calculating the areawide ratio for the 1978-79 fiscal year,only the fare revenues and the operating costs of those operatorsthat are in compliance with Section 99268, 99268.1, 99268.2, or99268.3, whichever section was applicable to the operator during the1978-79 fiscal year, are to be used. (c) During the period of the first two years of operation, a newoperator subject to this section shall claim each year no more than75 percent of its total operating cost for that year.99270.  On or after the first day of any fiscal year, an operatormay engage in temporary borrowing pursuant to Article 7.6 (commencingwith Section 53850), Chapter 4, Part 1, Division 2, Title 5 of theGovernment Code and for such purposes "revenues" as defined inSections 53856 and 53858 of that code may include the amount of anyclaim permitted under this article if a claim has been filed andapproved. The amount of any claim for the purposes of this sectionshall be subject to the limitations on claims specified in thischapter; provided that the calculations of the limitations referredto herein may be based upon estimates of the operator. The payments made for temporary borrowing authorized under thissection shall not be deemed capital expenditures for purposes ofSection 99267. The power of an operator to levy taxes shall not be a prerequisiteto its power to issue notes as general obligations pursuant toArticle 7.6.99270.1.  If an operator serves urbanized and nonurbanized areas inthe area of jurisdiction of a transportation planning agency, thetransportation planning agency shall adopt rules and regulations todetermine what portion of the public transportation services of theoperator serves urbanized areas and what portion serves nonurbanizedareas to determine its required ratio of fare revenues to operatingcost, as defined by subdivision (a) of Section 99247, or its requiredratio of the sum of fare revenues and local support to operatingcost, or both. The transportation planning agency shall submit the rules andregulations to the department for approval.99270.2.  If an operator serves an area that was first designated asan urbanized area in the 1980 or a subsequent federal census, thetransportation planning agency or the county transportationcommission may grant the operator time, but not more than five yearsfrom July 1 of the year following the year of the census, to meet theratio of fare revenues to operating cost required of an operatorserving an urbanized area.99270.5.  In determining whether there is compliance with Section99268.1, 99268.2, 99268.3, 99268.4, 99268.5, or 99268.9, as the casemay be, by operators serving the area of the San Francisco Bay AreaRapid Transit District, excluding the City and County of SanFrancisco, the Metropolitan Transportation Commission may make thatdetermination for all or some of the operators as a group, if theMetropolitan Transportation Commission finds that the publictransportation services of the operators grouped are coordinated.99271.  (a) An operator shall be eligible for allocations under thisarticle, on and after July 1, 1976, only if the current cost of itsretirement system is fully funded with respect to the officers andemployees of its public transportation system, or if the operator isimplementing a plan approved by the transportation planning agencywhich will fully fund the retirement system for such officers andemployees within 40 years. (b) "Fully funded" with respect to the retirement system, meansthat the system, at any particular time, has assets determined to besufficient to provide for the payment of all pension and otherbenefits to such officers and employees then entitled, or who maybecome entitled, under terms of the system to an immediate ordeferred benefit in respect to service rendered by such officers andemployees.99272.  An operator that has a private pension plan shall beeligible for allocations under this article, on and after July 1,1976, only if the operator does both of the following: (a) Conducts periodic actuarial studies of its employee pensionplans to determine the annual cost of future pension benefits. (b) Sets aside and invests, on a current basis, funds sufficientto provide for the payment of future pension benefits.99273.  An operator that has a private pension plan shall beeligible for allocations under this article, on and after July 1,1976, only if the operator reports in its financial statements, atleast annually, all of the following: (a) The actuarially determined amount of pension liability. (b) The amount of cash funds set aside and invested to meet thepension liability. (c) The amount of any deficit in the pension fund. (d) The financial plan adopted to eliminate the deficit in thepension fund.