1. (a) If an operator or transit service claimant fails to maintain, for a fiscal year, the ratio of fare revenues to operating cost it is required to maintain in accordance with Section 6633.2 and 6633.5, and if it is not the first year for which the claimant has failed to maintain that ratio which is considered the one time grace year, the claimant's eligibility to receive Transportation Development Act funds would be determined as follows:

   1. (1) In the fiscal year that the claimant fails to maintain the required ratio which is the noncompliance year, there is no change in its eligibility.
   2. (2) In the subsequent fiscal year or determination year there is no change in eligibility, however the audited amount of the difference between the required and actual fare revenue to operating cost ratio as reported in the claimant's fiscal and compliance audit for the fiscal year for which the required ratio was not met must be determined.
   3. (3) In the third or penalty year, the operator's or transit service claimant's eligibility to receive monies from the local transportation and state transit assistance funds shall be reduced, for one year only, by the amount of the difference between the required fare revenues and the actual fare revenues for the fiscal year that the required ratio was not maintained.
   4. (4) A claimant subject to the penalty in this section shall demonstrate to the transportation planning agency, the county transportation commission or the San Diego Metropolitan Transit Development Board how it will achieve the required ratio during any penalty year.
2. (b) Any increase in fare revenue to operating cost ratio as a result of this section prior to July 1, 1987 is no longer applicable.

3. (c) An example of the penalty process which is calculated in accordance with Section 6634 is as follows:

   3-Year Penalty Cycle

   One-Time Grace Year

   Noncompliance Year

   Determination Year

   Penalty Year for Noncompliance Year

   Operating Cost

   $100,000

   $100,000

   $100,000

   $100,000

   Required Fares at 20%

   $20,000

   $20,000

   $20,000

   $20,000

   Actual Fares

   $15,000

   $18,000

   $23,000

   $28,000

   Reduced Eligibility

   0

   0

   0

   ($2,000)

   Transportation Development Act/State Transit Assistance Claimant's Eligibility

   $85,000

   $82,000

   $77,000

   $70,000

Note: Authority cited: Section 99241, Public Utilities Code. Reference: Sections 99241, 99268.9, Public Utilities Code.

History

1. New section filed 12-24-79 as an emergency; effective upon filing. Certificate of Compliance included (Register 79, No. 52).

2. Repealer and new section filed 9-1-87; operative 10-1-87 (Register 87, No. 37).