New York Codes, Rules and Regulations › Title 17 - DEPARTMENT OF TRANSPORTATION › Chapter VI - Transportation Regulations › Subchapter G - Mass Transportation Operating Assistance › Part 975 - Statewide Mass Transportation Operating Assistance Program › Section 975.17 - Determination of maximum operating assistance for private bus operators

Current through Register Vol. 46, No. 28, July 10, 2024
In accordance with legislation, the commissioner will
					 annually establish a maximum service payment limit for each private bus
					 operator that reflects a reasonable return on equity or operating expenses and
					 revenues. In establishing, the maximum service payment limit, consideration may
					 be given to prior years as well as the current fiscal year's return on equity
					 or operating revenues and expenses. Additional criteria are also specified
					 below regarding the profit provided to private operators that are part of a
					 system where the local government provides local government funds in excess of
					 mandated levels to further improve the utility, effectiveness, and/or
					 coordination of its system of services.
All private transit operator financial records must conform
					 to the uniform system of accounts, and their Annual Report to the Commissioner
					 must be consistent with the uniform system of accounts as identified in section
					 975.5.
					 Annually, the Department will evaluate the financial position of each private
					 operator and establish a maximum service payment limit (cap) pursuant to the
					 guidelines established by the Department's Carrier Certification and Compliance
					 Bureau by regulatory process (profit cap case). Financial data not conforming
					 to these regulatory case guidelines will be adjusted by the Department and may
					 result in a lower payment limit.
The annual limit established for one year may be used in
					 the following year until a new limit is established based on the previous
					 year's actual data. The Department may amend an established annual maximum
					 service payment limit when circumstances that will substantially change
					 estimated expenses and revenues (such as a fare increase) warrant such an
					 updating.
Any public transportation system that proposes to
					 distribute, or has been found to have distributed, to any individual private
					 bus operator (or for all operators in the system where the requirements of
					 section
					 975.15(3) 
					 regarding profit cap on a system level have been met) a total amount of
					 operating assistance that would exceed, or has exceeded, its individual maximum
					 operating assistance allowance, as determined by the current regulatory case
					 issued by the Department, and which seeks to allow such profits to be retained
					 by the operator and not result in reduced State transit operating assistance
					 payments to the public transportation system, shall comply with the following
					 requirements:
(a) Submit a report that
				  describes the methodology employed by the sponsor to allocate operating
				  expenses for STOA eligible services, and includes an explanation of the
				  rationale for making an adjustment to any category of expense that is
				  inconsistent with any determination made by the Department in the final profit
				  cap case for those operators that they propose to provide a profit in excess of
				  the established statewide standard. Such report shall also include an
				  explanation and reconciliation of any differences in expenses, revenues, and
				  subsidies shown on any other financial report submitted to the Department by
				  the sponsor to fulfill STOA program reporting requirements (ex. the annual
				  estimates and projections prepared pursuant to section 17-a  of the Transportation Law and annual
				  appropriation language).
(b)
				  Demonstrate that the amount of local voluntary aid is at least equal to the
				  profit paid to private bus operators that is in excess of the operator's
				  maximum operating assistance allowance as calculated by the
				  Department.
(c) Demonstrate that
				  the individual private bus operator(s) is more economic than provision of
				  service of comparable quality and quantity by a comparable public authority or
				  public municipal system. Operator cost per revenue vehicle hour is an
				  acceptable comparable measure. The Department will assist in providing data on
				  comparable public systems, if requested.
(d) Certify that the profit level being
				  provided has been reviewed and is reasonable, consistent with maintaining
				  adequate service to the public.
The certification must be made by the chief executive
					 officer of the public transportation system. The public transportation system
					 must indicate its intent in writing to make a submission under this provision
					 not later than 45 days after the issuance of the final profit cap case in order
					 to avoid recovery of state aid equal to the amount of profits in excess of the
					 profit standard established by the Department.
The deadline for submission of the documentation specified
					 above shall be 60 days from the date of issuance of the final profit cap case
					 by the Department.