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A01123 Summary:

BILL NOA01123
 
SAME ASSAME AS S02914
 
SPONSORGantt
 
COSPNSR
 
MLTSPNSR
 
Amd 18-b, Transp L
 
Relates to computing the service payment paid to certain public transportation systems.
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A01123 Actions:

BILL NOA01123
 
01/10/2017referred to transportation
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A01123 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A1123
 
SPONSOR: Gantt
  TITLE OF BILL: An act to amend the transportation law, in relation to computing the service payment paid to certain public transportation systems   PURPOSE OR GENERAL IDEA OF BILL: To update the State Transportation Operating Assistance (STOA) program as it relates to state support of bus authorities (not including the MTA) to provide incentives for more efficient use of public funds and better service to those who ride public buses. This legislation is designed to provide a model for the operation of all transportation authorities by ensuring optimal service and low fares to the rider while maximizing the use of state funds.   SUMMARY OF SPECIFIC PROVISIONS: This legislation will enact an updated method for the distribution of state funding to the non-MTA bus authorities. The new formula will be performance based in that it will encourage public bus systems to meet certain standards when providing public bus service to its riders. However, to ensure that no authority is penalized or treated unfairly, the new formula will take into account the need for supplemental or discretionary aid as well as a consistent level of base aid for all authorities. The three main distribution components of the performance based state aid are: Base Aid, Performance Aid and Discretionary Aid. Base Aid will consist of 80% of total service payments available. It will be distributed based upon the respective Authority's allocable percentage share of the total ridership, population of service area, and square miles of service area. Each measure is weighted based upon its relative importance. The respective weights are as follows: Ridership 85%; Population of Service Area 7.5%; and Square Miles of Service Area 7.5%. Performance Aid will consist of 15% of total service payments available. It will be distributed based upon the sum of the respective Authority's percentage share of each weighted category. The Authority's percentage share for each category shall be computed based on the rank order assigned to the Authority for each category. The following are the categories of measurement and weighted share: Ridership to revenue vehicle miles 20%; Total expenses to ridership 20%; Total expenses to total vehicle hours 20%; Service Payment to total expenses 15%; Customer Satisfaction 15%; and Fare Affordability (ratio of fare to median income) 10%. The following are the percentage share awarded for each rank: Rank 1 31%; Rank 2 27%; Rank 3 23%; and Rank 4 19%. Discretionary Aid will consist of 5% of the total service payments available. The Commissioner of the New York State Department of Trans- portation will have the flexibility and the discretion to determine the share of discretionary aid payable to each applicant, if any.   JUSTIFICATION: Historical allocations of State Transportation Operating Assistance (STOA) have been based upon a subjective needs based formula. This approach can have the unintended effect of rewarding authorities that operate in an inefficient manner and penalizes those who operate effi- ciently. Reforming the funding model is a catalyst that will support the growth of the local economy across the state. Moreover, this legislation highlights the importance of high performance and a quality return to the taxpayer. The notion of performance based state aid causes each authority to focus on measures that will drive service effectiveness, cost effectiveness, cost efficiency, service quality, service affordability, and a reduced reliance on taxpayer subsidies. Public Transportation is a lifeline for many in our communities and provides various tangible benefits far above than those to the direct customer. The investment in public transportation; promotes commerce; eases congestion; is environmentally friendly; creates and sustains jobs; affordable to the general population, and provides access to people with disabilities. The progressive approach in that allocation of STOA will send a strong message across the state that accountability can be measured. Transpor- tations Authorities will enact better financial management practices and make stronger efforts to achieve efficiencies that will provide a model for all public authorities. The distribution model has been developed so that if an agency ranks lowest in all six performance measurement categories the Commissioner can hold them harmless with a larger portion of the SW discretionary aid available.   PRIOR LEGISLATIVE HISTORY: 2011-2012: A.1342 2013-2014: A.1433 2015-2016: A.1147   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.   EFFECTIVE DATE: Immediately upon enactment.
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A01123 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          1123
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 10, 2017
                                       ___________
 
        Introduced  by M. of A. GANTT -- read once and referred to the Committee
          on Transportation
 
        AN ACT to amend the transportation law, in  relation  to  computing  the
          service payment paid to certain public transportation systems
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivision 3 of section 18-b of the transportation law, as
     2  added by chapter 56 of the laws of 1975,  paragraph  (iv)  as  added  by
     3  chapter 791 of the laws of 1975, is amended to read as follows:
     4    3.  [The]  a.  Except as set forth in paragraph b of this subdivision,
     5  the quarterly service payment made to any public  transportation  system
     6  shall  not  be  greater  than  a  sum  computed  in one of the following
     7  manners:
     8    (i) In the case of commuter rail, by adding the  certified  number  of
     9  commuter  rail  passengers multiplied by two cents per passenger and the
    10  certified number of commuter rail vehicle or  car  miles  multiplied  by
    11  twenty-five cents per vehicle or car mile.
    12    (ii)  In  the case of subway or rapid transit, by adding the certified
    13  number of subway or rapid transit passengers multiplied by two cents per
    14  passenger and the certified numbers of subway or rapid  transit  vehicle
    15  or car miles multiplied by eight cents per vehicle or car mile.
    16    (iii)  In the case of bus lines, by adding the certified number of bus
    17  passengers multiplied by two  cents  per  passenger  and  the  certified
    18  number  of  bus  miles  multiplied  by seven cents per bus mile. For the
    19  purposes of computing quarterly service payments  only  mileage  accumu-
    20  lated  in  revenue service shall be used. [Whenever] Except as set forth
    21  in paragraph b of this subdivision, whenever it  is  determined  by  the
    22  commissioner  that the amount of money appropriated for service payments
    23  is less than the total amount of money for which all public  transporta-
    24  tion systems are eligible, the commissioner may establish on a quarterly

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01378-01-7

        A. 1123                             2
 
     1  or  annual  basis,  a  maximum service payment limit which is lower than
     2  that provided for in this section.
     3    (iv)  In  the  case of commuter ferry lines with the authorization for
     4  payment thereof for the fiscal year nineteen hundred seventy-five--nine-
     5  teen hundred seventy-six to be in the discretion of the commissioner, by
     6  adding the certified number of annual ferry passengers multiplied by two
     7  cents per passenger, times the certified number of annual nautical ferry
     8  miles, times two-one hundred thousandths. [For] Except as set  forth  in
     9  paragraph b of this subdivision, for the purposes of computing quarterly
    10  service  payments  only  mileage accumulated in revenue service shall be
    11  used.
    12    b. In the case of bus lines provided or contracted for  the  provision
    13  of (under joint support arrangement) mass transportation services by the
    14  Rochester  Genesee  Regional  Transportation  Authority, the Central New
    15  York Regional Transportation Authority, the Niagara Frontier Transporta-
    16  tion Authority or the Capital  District  Transportation  Authority,  the
    17  service  payment  made to each applicant that makes application therefor
    18  shall be the amount equal to the sum of the applicant's  share  of  base
    19  aid  determined  in  accordance with subparagraph (i) of this paragraph,
    20  the amount of discretionary aid payable to the applicant  as  determined
    21  by  the  commissioner in accordance with subparagraph (ii) of this para-
    22  graph and the applicant's share of performance aid determined in accord-
    23  ance with subparagraph (iii) of this paragraph.
    24    "Applicant" shall mean the Rochester Genesee  Regional  Transportation
    25  Authority,  the  Central New York Regional Transportation Authority, the
    26  Niagara Frontier  Transportation  Authority  and  the  Capital  District
    27  Transportation Authority.
    28    "Applicant  share"  shall  mean respective amount of base aid, discre-
    29  tionary aid or performance aid payable to an applicant and  computed  in
    30  accordance with subparagraphs (i), (ii) and (iii) of this paragraph.
    31    "Base  aid" shall mean eighty percent of the aggregate amount of money
    32  appropriated for service payments for bus lines provided  or  contracted
    33  for  the provision of (under joint support arrangement) mass transporta-
    34  tion services by the Rochester Genesee Regional Transportation  Authori-
    35  ty,  the Central New York Regional Transportation Authority, the Niagara
    36  Frontier Transportation Authority or the Capital District Transportation
    37  Authority.
    38    "Discretionary aid" shall mean five percent of the aggregate amount of
    39  money appropriated for  service  payments  for  bus  lines  provided  or
    40  contracted  for  the provision of (under joint support arrangement) mass
    41  transportation services by the Rochester Genesee Regional Transportation
    42  Authority, the Central New York Regional Transportation  Authority,  the
    43  Niagara Frontier Transportation Authority or the Capital District Trans-
    44  portation Authority.
    45    "Performance  aid"  shall mean fifteen percent of the aggregate amount
    46  of money appropriated for service payments for  bus  lines  provided  or
    47  contracted  for  the provision of (under joint support arrangement) mass
    48  transportation services by the Rochester Genesee Regional Transportation
    49  Authority, the Central New York Regional Transportation  Authority,  the
    50  Niagara Frontier Transportation Authority or the Capital District Trans-
    51  portation Authority.
    52    "Service  area"  shall  mean  the  geographic area served by bus lines
    53  provided or  contracted  for  the  provision  of  (under  joint  support
    54  arrangement) mass transportation services by the applicant.

        A. 1123                             3
 
     1    "Service  payment"  shall  mean  the  amount  of state assistance made
     2  available to an eligible public transportation system by the commission-
     3  er, within the provisions and limits of this section and appropriations.
     4    (i)  Base  aid. The applicant's share of base aid shall be the sum of:
     5  (A) the applicant's allocable share of ridership;  (B)  the  applicant's
     6  allocable share of service area; and (C) the applicant's allocable share
     7  of population of service area.
     8    "Allocable share of population of service area" shall mean the product
     9  of:  (A) a percentage equal to the population of the service area of the
    10  applicant divided by the aggregate population of the  service  areas  of
    11  all  applicants;  and (B) the amount equal to seven and one-half percent
    12  of base aid.
    13    "Allocable share of ridership" shall mean with respect to each  appli-
    14  cant the product of:  (A) a percentage equal to an applicant's ridership
    15  divided by the aggregate ridership of all applicants; and (B) the amount
    16  equal to eighty-five percent of base aid.
    17    "Allocable  share  of  service  area" shall mean the product of: (A) a
    18  percentage equal to the aggregate square miles of an applicant's service
    19  area divided by the aggregate square miles of the service areas  of  all
    20  applicants;  and  (B)  the amount equal to seven and one-half percent of
    21  base aid.
    22    (ii) Discretionary aid. The commissioner shall determine the share  of
    23  discretionary aid payable to each applicant.
    24    (iii)  Performance aid. The applicant's share of performance aid shall
    25  be an amount equal to the sum of the  applicant's  percentage  share  of
    26  each  category.  The applicant's percentage share of each category shall
    27  be computed based on the rank order assigned to the applicant  for  each
    28  category.
    29    "Bus  vehicle" shall mean a bus vehicle provided or contracted for the
    30  provision of  (under  joint  support  arrangement)  mass  transportation
    31  services by the applicant.
    32    "Category"  shall  mean  with  respect  to  performance aid: (A) total
    33  expenses to ridership; (B) total expenses to total  vehicle  hours;  (C)
    34  service payment to total expenses; (D) fare affordability; (E) ridership
    35  to revenue vehicle miles; and (F) customer satisfaction.
    36    "Customer  satisfaction"  shall mean the percentage of satisfaction of
    37  applicant's customers as measured by customer surveys conducted annually
    38  by an independent person with sampling and methods customarily used  and
    39  reasonably  determined  by  the commissioner to be sufficient to measure
    40  customer satisfaction. Customer surveys shall measure  the  satisfaction
    41  of  customers  by  the  percentages of customers surveyed reporting that
    42  they are not satisfied, somewhat satisfied, satisfied or very  satisfied
    43  in  the  areas of: (A) overall performance; (B) bus on time arrival; (C)
    44  driver courtesy and helpfulness; (D) buses stopping and not passing  by;
    45  (E) cleanliness of buses; (F) clarity and timeliness of announcements of
    46  stops;  (G) ease of paying fare; (H) ease of purchasing passes; (I) ease
    47  of reading route maps and bus schedules;  and  (J)  ease  of  contacting
    48  applicant.  The  percentages  of  satisfaction  in  each  area  shall be
    49  reported by the applicant to the commissioner pursuant to paragraph c of
    50  subdivision four of this section. The portion of performance aid alloca-
    51  ble to the category of customer satisfaction shall equal the product of:
    52  (X) the percentage share assigned to the applicant  based  on  its  rank
    53  order in the category of customer satisfaction; and (Y) the amount equal
    54  to fifteen percent of aggregate performance aid.
    55    "Deadhead  mileage"  shall  have the meaning given to such term in the
    56  regulations of the commissioner.

        A. 1123                             4
 
     1    "Expenses" shall mean the aggregate expenses, as may be determined  by
     2  the  commissioner,  either directly or indirectly incurred by the appli-
     3  cant from, or in connection with, the operation of public transportation
     4  services during the applicant's fiscal year, including but not necessar-
     5  ily  limited to:  transportation expenses (wages, fringe benefits, fuel,
     6  oil, etc.); maintenance and  garage  expenses  (repairs,  tires,  etc.);
     7  station  expenses  (supplies  and  expenses  relating  thereto); traffic
     8  expenses (tickets, advertising, etc.); insurance  and  safety  expenses;
     9  marketing, advertising and other reasonable expenses directly related to
    10  the  provision of public transportation service and a reasonable portion
    11  of general administration expenses  including  auditing  costs.  Capital
    12  expenses, and depreciation on the portion of plant assets purchased with
    13  government funds, are not considered allowable expenses for the purposes
    14  of this program.
    15    "Fare"  shall  mean  the  highest  one-way  cash fare paid by an adult
    16  passenger upon boarding a bus vehicle.
    17    "Fare affordability" shall mean the ratio determined by  dividing  the
    18  fare  by  median  income of the applicant's service area. The portion of
    19  performance aid allocable to the category of  fare  affordability  shall
    20  equal the product of: (A) the percentage share assigned to the applicant
    21  based  on  its rank order in the category of fare affordability; and (B)
    22  the amount equal to ten percent of aggregate performance aid.
    23    "Median income" shall mean the average of the median  income  reported
    24  by  the  United  States  census  bureau in the most recent United States
    25  census for all census tracts within the service area.
    26    "Population of service area" shall mean the population of the  service
    27  area  as  estimated in July of the applicant's fiscal year by the United
    28  States census bureau or if the United States census bureau  shall  esti-
    29  mate population of the service area in a different month than July, such
    30  month.
    31    "Rank  order" shall mean the rank of one, two, three, or four assigned
    32  to each applicant for each category. There shall  be  assigned  to  each
    33  applicant a rank order from one to four in each of the following catego-
    34  ries  with the lowest ratio in each category being assigned a rank order
    35  of one, the next lowest in each category being assigned a rank order  of
    36  two,  the  highest ratio in each category being assigned a rank order of
    37  four and so on: ratio of total expenses to  ridership;  ratio  of  total
    38  expenses  to  total  vehicle  hours;  ratio  of service payment to total
    39  expenses; and fare affordability. There shall be assigned to each appli-
    40  cant a rank order from one to four in the category of ratio of ridership
    41  to revenue vehicle miles with the lowest ratio in  such  category  being
    42  assigned  a  rank  order of four, the next lowest ratio in such category
    43  being assigned a rank order of three, the highest ratio in such category
    44  being assigned a rank order of one and  so on. There shall  be  assigned
    45  to  each  applicant  a  rank  order  from one to four in the category of
    46  customer satisfaction with the applicant reporting the highest  percent-
    47  age  of  satisfied  or  very  satisfied  customers  in the area of total
    48  performance being assigned a rank order of one, the applicant  reporting
    49  the  next highest percentage of satisfied or very satisfied customers in
    50  the area of total performance being assigned a rank order of two, and so
    51  on. Each applicant shall receive a percentage share of  performance  aid
    52  allocated to a category based on the rank order assigned to such catego-
    53  ry as follows:
    54  Rank Order                         Percentage Share of Category
    55       1                                        31%
    56       2                                        27%

        A. 1123                             5
 
     1       3                                        23%
     2       4                                        19%
     3    "Revenue  vehicle  mile"  shall  mean  the movement of one bus vehicle
     4  providing mass transportation services for a distance  of  one  mile  of
     5  revenue  service.  Deadhead  mileage  is  not  eligible  for calculating
     6  service payments.
     7    "Ridership" shall mean the aggregate number of  passengers  who  board
     8  bus  vehicles  during  the  fiscal year of the applicant. Passengers are
     9  counted each time they board bus vehicles no matter how many  bus  vehi-
    10  cles they use to travel from their origin to their destination.
    11    "Ridership  to  revenue vehicle miles" shall mean the ratio determined
    12  by dividing ridership by aggregate  revenue  vehicle  miles  during  the
    13  applicant's fiscal year. The portion of performance aid allocable to the
    14  category  of  ridership to revenue vehicle miles shall equal the product
    15  of: (A) the percentage share assigned to the applicant based on its rank
    16  order in the category of ridership to revenue vehicle miles; and (B) the
    17  amount equal to twenty percent of aggregate performance aid.
    18    "Service payment to total expenses" shall mean the ratio determined by
    19  dividing the annual service payment received by the applicant during its
    20  fiscal year divided by expenses for such fiscal  year.  The  portion  of
    21  performance  aid  allocable  to the category of service payment to total
    22  expenses shall equal the product of: (A) the percentage  share  assigned
    23  to  the  applicant  based  on  its rank order in the category of service
    24  payment to total expenses; and (B) the amount equal to  fifteen  percent
    25  of aggregate performance aid.
    26    "Total  expenses  to  ridership"  shall  mean  the ratio determined by
    27  dividing expenses by ridership. The portion of performance aid allocable
    28  to the category of total expenses to ridership shall equal  the  product
    29  of: (A) the percentage share assigned to the applicant based on its rank
    30  order in the category of total expenses to ridership; and (B) the amount
    31  equal to twenty percent of aggregate performance aid.
    32    "Total  expenses  to  total vehicle hours" shall mean the ratio deter-
    33  mined by dividing expenses by aggregate vehicle hours during the  appli-
    34  cant's  fiscal  year.  The  portion  of performance aid allocable to the
    35  category of total expenses to total vehicle hours shall equal the  prod-
    36  uct  of: (A) the percentage share assigned to the applicant based on its
    37  rank order in the category of total expenses to total vehicle hours; and
    38  (B) the amount equal to twenty percent of performance aid.
    39    "Vehicle hours" shall mean the hours a bus vehicle  travels  from  the
    40  time it pulls out from its garage to go into revenue service to the time
    41  it pulls in from revenue service.
    42    § 2. Subdivision 4 of section 18-b of the transportation law, as added
    43  by chapter 56 of the laws of 1975, is amended to read as follows:
    44    4.  a.   [All] Except as set forth in paragraph c of this subdivision,
    45  all service payments shall be made upon an  application  of  the  public
    46  transportation  system.  Such  application  shall  be  filed between the
    47  second and the seventeenth day of the first month of each quarter.  Upon
    48  application, the chief executive officer of each  public  transportation
    49  system shall certify to the commissioner, the total number of passengers
    50  such system estimates that it will carry and the total number of vehicle
    51  or  car  miles  such  system estimates that its equipment will travel in
    52  revenue service during the quarter for which such installment is  to  be
    53  paid.
    54    Upon  receipt  and approval of such application and certifications the
    55  commissioner shall, by the tenth day of the next succeeding  month,  pay
    56  to the public transportation operator, the quarterly service payment.

        A. 1123                             6
 
     1    b.  [The]  Except as set forth in paragraph c of this subdivision, the
     2  chief executive officer of each public transportation system receiving a
     3  quarterly service payment pursuant to this section shall certify to  the
     4  commissioner, within fifteen days after the end of the quarter for which
     5  a  service  payment  was received, the actual total number of passengers
     6  carried by the system during such quarter and the actual  total  vehicle
     7  or  car  miles the system's equipment traveled in revenue service during
     8  such quarter, and based upon such actual totals, the commissioner  shall
     9  make such adjustments as may be appropriate in the amount of the service
    10  payment for such system for the succeeding quarter.
    11    c.  In  the case of bus lines provided or contracted for the provision
    12  of (under joint support arrangement) mass transportation services by the
    13  Rochester Genesee Regional Transportation  Authority,  the  Central  New
    14  York Regional Transportation Authority, the Niagara Frontier Transporta-
    15  tion  Authority  or  the  Capital District Transportation Authority, all
    16  service payments shall be made upon application of the public  transpor-
    17  tation  system. Such application shall be filed within ninety days after
    18  the end of each fiscal year of the public transportation system accompa-
    19  nied by the audited annual financial report of the public transportation
    20  system. The application shall contain the information required by  para-
    21  graph  b  of  subdivision  three  of  this section and shall compute the
    22  public transportation system's share of base aid  and  performance  aid.
    23  The  chief  executive officer of each public transportation system shall
    24  certify to the commissioner the information set forth in the application
    25  and applicant's share of base aid and performance aid computed  therein.
    26  Upon receipt of the application and certification the commissioner shall
    27  determine  the  applicant's share of discretionary aid to be paid to the
    28  public transportation system. The quarterly   service  payment  for  the
    29  following fiscal year of the public transportation system shall be equal
    30  to  the  sum  of  one-quarter  of  the applicant's share of base aid and
    31  performance aid based on the information set forth  in  the  application
    32  and one-quarter of the applicant's share of discretionary aid determined
    33  by the commissioner.  The commissioner shall, by the tenth day of April,
    34  July,  October  and  January  in  the next succeeding fiscal year of the
    35  public transportation system, pay to the public  transportation  system,
    36  the quarterly service payment.
    37    § 3. This act shall take effect immediately.
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