Public Transportation Reorganization and Coordination Act: Difference between revisions

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''An Act to privatize the public transportation systems in Imaginaryland, specifically the bus, air, and rail services, in order to reduce government expenditure, increase efficiency, and lower transportation fees for the citizens.''
''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 ==
== Sections ==
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=== Section 1: Definitions ===
=== Section 1: Definitions ===


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


# Establish the State Coordination Agency (SCA) under the Ministry of Transportation.
# Establish the State Transportation Coordination Agency (STCA) under the Ministry of Transportation.
# The State Coordination Agency shall cover the following functions:
# The State Transportation Coordination Agency shall cover the following functions:
## Regulate and oversee the activities of private transportation companies.
## Regulate and oversee the activities of private transportation companies.
## Ensure compliance with national safety and service standards.
## Ensure compliance with national safety and service standards.
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## Mediate between private companies and the government.
## Mediate between private companies and the government.
## Monitor fare prices and prevent monopolistic practices.
## Monitor fare prices and prevent monopolistic practices.
## Coordinating the maintenance and construction of railways as a shared project between the state and the private rail transport businesses.
# A total of 650 million florins will be used to fund all operations and pay for the salaries of the workers of the SCA.
# 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 ===
=== Section 3: Privatization Process ===


# The National Motor Vehicle Service (NMVS) and Kodiak State Railway Management Company will undergo privatization, transferring ownership and management from the public sector to private entities.
# 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.
# Conduct a transparent bidding process to allow private companies to apply for licenses to operate bus, air, and rail services, while ensuring fair competition and equal opportunity for all bidders.
# 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.
# 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.
# Issue licenses to qualified private companies for specified durations that comply with the national safety and safety standards. Include provisions for periodic review and renewal based on performance.
# Issued licenses will need renewal each 5 years or less if said private entity is suspected of violation of national safety and service standards.
# Transfer existing public transportation assets to private companies through a regulated process. Ensure that assets are used for public transportation purposes and maintain their value and condition.
# 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 ===
=== Section 4: Regulatory Framework ===


# Private companies must adhere to strict national safety standards for all transportation services determined by the Ministry of Transportation. Surprise regular inspections and audits by the SCA shall be done so the standards are followed thoroughly in order to provide a safe service.
# 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.
# Set maximum fare limits to ensure affordability for the public set by the SCA. Allow for periodic fare adjustments based on inflation and operational costs, subject to SCA approval.
# 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 ===
=== Section 5: Financial Framework ===


# 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%.
# Subsidies shall be provided to private companies for operating unprofitable routes essential for public convenience.
# 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.
## A total budget of 250 million florins shall be provided to the SCA to provide said subsidies.
# Offer tax incentives for private companies investing in green and sustainable transportation technologies to a maximum of 15% reduction of the capital gains tax.
# 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 ===
=== Section 6: Monitoring and Evaluation ===


# Develop key performance indicators (KPIs) for private companies. Conduct annual performance reviews and publish reports.
# Develop key performance indicators (KPIs) for the PPP.
# Private companies involved in the privatization transition are mandated to provide quarterly reports, such as financials, metrics, and publish documentation to the STCA.
# Implement a platform for public feedback and suggestions regularly reviewed by a team of SCA and companies' representatives to improve services.
# Implement a platform for public feedback and suggestions regularly reviewed by a team of STCA and companies' representatives to improve services.
# 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.
# 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 ===
=== Section 7: Transition Period ===


# The transitiontransition plan for the transfer of services from public to private entities shall be done in no more than four years. The Transportation Ministry together with the SCA shall ensure minimal disruption to existing services during the transition period.
# 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.
# 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.
# 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.
# 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 ===

# 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.
# 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.
# 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.






Latest revision as of 13:58, 2 July 2024

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.

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