PARRIS N. GLENDENING, Governor

Ch. 655

(2) (i) 1. [For] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF
THIS PARAGRAPH, FOR fiscal years 1988 through 1992 and each fiscal year thereafter,
the Administration shall recover from fares and other operating revenues at least 50
percent of the total operating costs for the mass transit bus and rail services under its
jurisdiction. It is the intent of the General Assembly that the provisions of this paragraph
shall apply on a system-wide basis and not on an individual transit line basis. However,
given the anticipated efficiency of light rail technology, the Department is encouraged,
after 2 years of light rail operation, to recover from fares and other operating revenues at
least 60 percent of the total operating costs for light rail services.

[(ii)] 2. The Administration shall obtain the fare recovery ratio
through the establishment of reasonable fares in the Baltimore region and the
implementation of cost containment measures as deemed necessary to meet the standard
required under this paragraph.

(II) 1. THE ADMINISTRATION MAY EXEMPT A MASS TRANSIT
BUS OR RAIL SERVICE THAT HAS BEEN IN OPERATION FOR LESS THAN 3 2 YEARS
FROM THE REQUIREMENTS OF SUBPARAGRAPH (I) OF THIS PARAGRAPH.

2. THE ADMINISTRATION MAY EXEMPT A NEW MASS
TRANSIT BUS SERVICE THAT HAS BEEN IN OPERATION FOR LESS THAN 2 YEARS
FROM THE REQUIREMENTS OF SUBPARAGRAPH (I) OF THIS PARAGRAPH, PROVIDED
THAT THE ANNUAL COST OF BUS SERVICE EXEMPTED MAY NOT EXCEED 1 PERCENT
IN FISCAL YEAR 1907 AND 2 PERCENT IN FISCAL YEARS 1998 AND 1909 OF THE TOTAL
ANNUAL COST OF BUS SERVICE PROVIDED.

(III) THE ANNUAL COST OF ALL MASS TRANSIT BUS AND RAIL
SERVICE, INCLUDING THE MASS TRANSIT BUS AND RAIL SERVICES DESCRIBED IN
SUBPARAGRAPH (II) OF THIS PARAGRAPH, MAY NOT EXCEED THE LEGISLATIVE
BUDGET APPROPRIATION FOR THE FISCAL YEAR.

(II) 1. THE ADMINISTRATION MAY EXEMPT, FROM THE
REQUIREMENTS OF SUBPARAGRAPH (I) OF THIS PARAGRAPH NEW LIGHT RAIL TRANSIT
SERVICE THAT HAS BEEN IN OPERATION FOR LESS THAN 18 MONTHS.

2. SUBJECT TO SUB-SUBPARAGRAPH 3 OF THIS
SUBPARAGRAPH THE ADMINISTRATION MAY EXEMPT, FROM THE REQUIREMENTS OF
SUBPARAGRAPH (I) OF THIS PARAGRAPH, NEW MASS TRANSIT BUS SERVICE THAT HAS
BEEN IN OPERATION FOR LESS THAN 18 MONTHS.

3. THE ANNUAL COST OF MASS TRANSIT BUS SERVICE
EXEMPTED UNDER SUB-SUBPARAGRAPH 2 OF THIS SUBPARAGRAPH MAY NOT EXCEED,
ASA PERCENTAGE OF THE TOTAL ANNUAL COST OF MASS TRANSIT BUS SERVICE I
PERCENT IN FISCAL YEAR 1997, 2 PERCENT IN FISCAL YEAR 1998, AND 2 PERCENT IN
FISCAL YEAR 1999.

(III) THE OPERATING COST OF ALL MASS TRANSIT BUS AND RAIL
SERVICES, INCLUDING THOSE EXCLUDED FROM THE FAREBOX RECOVERY
CALCULATION, SHALL NOT EXCEED THE LEGISLATIVE BUDGET APPROPRIATIONS FOR
THE FISCAL YEAR.

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