Public Transportation Reorganization and Coordination Act

An Act to privatize the public transportation systems in the Kodiak Republic, specifically the bus and high speed rail services, in order to reduce government expenditure, increase efficiency, and lower transportation fees for the citizens.

Sections

Section 1: Definitions

1. Public Transportation: Includes all bus and rail services provided by the state itself or by a state-owned company for the transportation of people or goods.
2. Private Companies: Entities or organizations that are privately owned and operate for profit.
3. State Transportation Coordination Agency (STCA): A government body established to oversee and coordinate the activities of private transportation companies.

Section 2: Establishment of the State Transportation Coordination Agency (STCA)

1. Establish the State Transportation Coordination Agency (STCA) under the Ministry of Transportation.
2. The State Transportation Coordination Agency shall cover the following functions:
   1. Regulate and oversee the activities of private transportation companies.
   2. Ensure compliance with national safety and service standards.
   3. Coordinate schedules and services to prevent overlap and ensure comprehensive coverage.
   4. Mediate between private companies and the government.
   5. Monitor fare prices and prevent monopolistic practices.
   6. Coordinating the maintenance and construction of railways as a shared project between the state and the private rail transport businesses.
3. A total of 500 million florins annually will be used to fund all operations and pay for the salaries of the workers of the SCA.

Section 3: Privatization Process

1. The bus transportation services of the National Motor Vehicle Service (NMVS) will undergo a process of transition to a Public Private Partnership, sharing ownership, budget, revenue and management by 50% from the public sector with other private entities, each managing its share in one region.
2. It will be allowed for private companies to apply for licenses to operate bus, air, and rail services in all current and future public routes, while ensuring fair competition and equal opportunity for all bidders.
3. The cost of license shall be determined by the STCA depending on the scale of operations for each private business and shall be an appropriate amount to cover costs for public facilities usage.
4. Issued licenses will need renewal each 5 years or less if said private entity is suspected of violation of national safety and service standards.
5. Any projects to build new routes shall be a coordinated project between the private entity and the STCA, as mentioned in 2.6.

Section 4: Regulatory Framework

1. Private companies must adhere to national safety standards for all transportation services determined by the Ministry of Transportation. Surprise regular inspections and audits by the STCA shall be done so the standards are followed thoroughly in order to provide a safe service.
2. Set maximum fare limits decided between the STCA and private entities for main essential routes to ensure affordability for the public. Allow for periodic fare adjustments based on inflation and operational costs, subject to both parties' aproval.

Section 5: Financial Framework

1. Offer tax incentives for private companies investing in green and sustainable transportation technologies such as transportation using only renewable energy and financially supporting research of said technologies reducing the Capital Gains Tax to 10%.
2. Offer tax incentives for the following two years in order to promote the private sector entrance to the industry, reducing the Capital Gains Tax to 10% and Corporate Tax to 5% to any business that forms or enters the transportation industry.
3. Offer tax incentives for private companies who support research projects on new transportation technology reducing the Capital Gains Tax to 10%.

Section 6: Monitoring and Evaluation

1. Develop key performance indicators (KPIs) for the PPP.
2. Private companies involved in the privatization transition are mandated to provide quarterly reports, such as financials, metrics, and publish documentation to the STCA.
3. Implement a platform for public feedback and suggestions regularly reviewed by a team of STCA and companies' representatives to improve services.
4. Impose penalties for private companies failing to meet regulatory standards, ranging from fines due to small infringements of the standards to revoking licenses for repeated or severe non-compliance.

Section 7: Transition Period

1. The transition plan for the transfer of services shall be done in no more than three years. The Transportation Ministry together with the STCA shall ensure minimal disruption to existing services during the transition period.
2. Facilitate the transition of public sector employees to private companies where possible. The Transportation Ministry shall offer retraining programs and severance packages for affected employees for the total amount of 6 months.
3. Any employees who are unable to establish themselves in the private companies after the severance packages end shall be offered a fitting position to their previous role in the STCA, or if not possible, in the public service where avaliable.

Section 8: Urban Public Transport

1. Local governments of municipalities and cities are granted the discretion to determine wether they shall apply the same reorganization for public transportation within their jurisdictions.
2. It is suggested that local governments conduct public consultations through transparent means to gather input from residents, businesses, and other stakeholders on the interested private entities in order to make the preferred reforms in the preferred way the local citizens wish.
3. Local governments must coordinate with the STCA to ensure alignment with the Act if they are to transition to a PPP system, while being provided guidance, support, and oversight by the agency.

Authored by MGA Antonio Recio Rufián.