Laws: Cases and Codes : U.S. Code : Title 49 : Section 5307


   
U.S. Code as of: 01/19/04
Section 5307. Urbanized area formula grants

      (a) Definitions. - In this section, the following definitions
    apply:
        (1) Associated capital maintenance items. - The term
      "associated capital maintenance items" means equipment, tires,
      tubes, and material, each costing at least .5 percent of the
      current fair market value of rolling stock comparable to the
      rolling stock for which the equipment, tires, tubes, and material
      are to be used.
        (2) Designated recipient. - The term "designated recipient"
      means - 
          (A) a person designated, consistent with the planning process
        under sections 5303-5306 of this title, by the chief executive
        officer of a State, responsible local officials, and publicly
        owned operators of mass transportation to receive and apportion
        amounts under section 5336 of this title that are attributable
        to transportation management areas established under section
        5305(a) of this title; or
          (B) a State or regional authority if the authority is
        responsible under the laws of a State for a capital project and
        for financing and directly providing mass transportation.

      (b) General Authority. - (1) The Secretary of Transportation may
    make grants under this section for capital projects and to finance
    the planning and improvement costs of equipment, facilities, and
    associated capital maintenance items for use in mass
    transportation, including the renovation and improvement of
    historic transportation facilities with related private investment.
    The Secretary may also make grants under this section to finance
    the operating cost of equipment and facilities for use in mass
    transportation in an urbanized area with a population of less than
    200,000.
      (2) Special rule for fiscal year 2003 and for the period of
    October 1, 2003, through February 29, 2004. - 
        (A) Increased flexibility. - The Secretary may make grants
      under this section, from funds made available to carry out this
      section for fiscal year 2003, and for the period of October 1,
      2003, through February 29, 2004 (!1) to finance the operating
      cost of equipment and facilities for use in mass transportation
      in an urbanized area with a population of at least 200,000 as
      determined under the 2000 decennial census of population if - 

          (i) the urbanized area had a population of less than 200,000
        as determined under the 1990 Federal decennial census of
        population;
          (ii) a portion of the urbanized area was a separate urbanized
        area with a population of less than 200,000 as determined under
        the 1990 Federal decennial census of population;
          (iii) the area was not designated as a urbanized area as
        determined under the 1990 Federal decennial census of
        population; and
          (iv) a portion of the area was not designated as an urbanized
        area as determined under the 1990 Federal decennial census and
        received assistance under section 5311 in fiscal year 2002.

        (B) Maximum amounts. - Amounts made available pursuant to
      subparagraphs (A)(i) and (A)(ii) shall be no more than the amount
      apportioned in fiscal year 2002 to the urbanized area with a
      population of less than 200,000 as determined in the 1990 Federal
      decennial census of population. Amounts made available pursuant
      to subparagraph (A)(iii) shall be no more than the amount
      apportioned under this section for fiscal year 2003. Each portion
      of an area not designated as an urbanized area under the 1990
      Federal decennial census and eligible to receive funds under
      subparagraph (A)(iv) shall receive an amount of funds made
      available to carry out this section that is no less than the
      amount the portion of the area received under section 5311 in
      fiscal year 2002.

      (3) In a transportation management area designated under section
    5305(a) of this title, amounts that cannot be used to pay operating
    expenses under this section also are available for a highway
    project if - 
        (A) that use is approved, in writing, by the metropolitan
      planning organization under section 5303 of this title after
      appropriate notice and an opportunity for comment and appeal is
      provided to affected mass transportation providers;
        (B) the Secretary decides the amounts are not needed for
      investment required by the Americans with Disabilities Act of
      1990 (42 U.S.C. 12101 et seq.); and
        (C) the metropolitan planning organization in approving the use
      under subparagraph (A) determines that the local transit needs
      are being addressed.

      (4) A project for the reconstruction of equipment and material,
    each of which after reconstruction will have a fair market value of
    at least .5 percent of the current fair market value of rolling
    stock comparable to the rolling stock for which the equipment and
    material will be used, is a capital project for an associated
    capital maintenance item under this section.
      (c) Public Participation Requirements. - Each recipient of a
    grant shall - 
        (1) make available to the public information on amounts
      available to the recipient under this section and the program of
      projects the recipient proposes to undertake;
        (2) develop, in consultation with interested parties, including
      private transportation providers, a proposed program of projects
      for activities to be financed;
        (3) publish a proposed program of projects in a way that
      affected citizens, private transportation providers, and local
      elected officials have the opportunity to examine the proposed
      program and submit comments on the proposed program and the
      performance of the recipient;
        (4) provide an opportunity for a public hearing in which to
      obtain the views of citizens on the proposed program of projects;
        (5) ensure that the proposed program of projects provides for
      the coordination of mass transportation services assisted under
      section 5336 of this title with transportation services assisted
      from other United States Government sources;
        (6) consider comments and views received, especially those of
      private transportation providers, in preparing the final program
      of projects; and
        (7) make the final program of projects available to the public.

      (d) Grant Recipient Requirements. - A recipient may receive a
    grant in a fiscal year only if - 
        (1) the recipient, within the time the Secretary prescribes,
      submits a final program of projects prepared under subsection (c)
      of this section and a certification for that fiscal year that the
      recipient (including a person receiving amounts from a chief
      executive officer of a State under this section) - 
          (A) has or will have the legal, financial, and technical
        capacity to carry out the program;
          (B) has or will have satisfactory continuing control over the
        use of equipment and facilities;
          (C) will maintain equipment and facilities;
          (D) will ensure that elderly and handicapped individuals, or
        an individual presenting a medicare card issued to that
        individual under title II or XVIII of the Social Security Act
        (42 U.S.C. 401 et seq., 1395 et seq.), will be charged during
        non-peak hours for transportation using or involving a facility
        or equipment of a project financed under this section not more
        than 50 percent of the peak hour fare;
          (E) in carrying out a procurement under this section - 
            (i) will use competitive procurement (as defined or
          approved by the Secretary);
            (ii) will not use a procurement that uses exclusionary or
          discriminatory specifications; and
            (iii) will comply with applicable Buy America laws in
          carrying out a procurement;

          (F) has complied with subsection (c) of this section;
          (G) has available and will provide the required amounts as
        provided by subsection (e) of this section;
          (H) will comply with sections 5301(a) and (d), 5303-5306, and
        5310(a)-(d) of this title;
          (I) has a locally developed process to solicit and consider
        public comment before raising a fare or carrying out a major
        reduction of transportation; and
          (J)(i) will expend for each fiscal year for mass
        transportation security projects, including increased lighting
        in or adjacent to a mass transportation system (including bus
        stops, subway stations, parking lots, and garages), increased
        camera surveillance of an area in or adjacent to that system,
        providing an emergency telephone line to contact law
        enforcement or security personnel in an area in or adjacent to
        that system, and any other project intended to increase the
        security and safety of an existing or planned mass
        transportation system, at least one percent of the amount the
        recipient receives for each fiscal year under section 5336 of
        this title; or
          (ii) has decided that the expenditure for security projects
        is not necessary; and

        (2) the Secretary accepts the certification.

      (e) Government's Share of Costs. - A grant of the Government for
    a capital project (including associated capital maintenance items)
    under this section is for 80 percent of the net project cost of the
    project. A recipient may provide additional local matching amounts.
    A grant for operating expenses may not be more than 50 percent of
    the net project cost of the project. The remainder of the net
    project cost shall be provided in cash from sources other than
    amounts of the Government or revenues from providing mass
    transportation (excluding revenues derived from the sale of
    advertising and concessions that are more than the amount of those
    revenues in the fiscal year that ended September 30, 1985). Transit
    system amounts that make up the remainder shall be from an
    undistributed cash surplus, a replacement or depreciation cash fund
    or reserve, or new capital.
      (f) Statewide Operating Assistance. - (1) A State authority that
    is a designated recipient and providing mass transportation in at
    least 2 urbanized areas may apply for operating assistance in an
    amount not more than the amount for all urbanized areas in which it
    provides transportation.
      (2) When approving an application under paragraph (1) of this
    subsection, the Secretary may not reduce the amount of operating
    assistance approved for another State or a local transportation
    authority within the affected urbanized areas.
      (g) Undertaking Projects in Advance. - (1) When a recipient
    obligates all amounts apportioned to it under section 5336 of this
    title and then carries out a part of a project described in this
    section (except a project for operating expenses) without amounts
    of the Government and according to all applicable procedures and
    requirements (except to the extent the procedures and requirements
    limit a State to carrying out a project with amounts of the
    Government previously apportioned to it), the Secretary may pay to
    the recipient the Government's share of the cost of carrying out
    that part when additional amounts are apportioned to the recipient
    under section 5336 if - 
        (A) the recipient applies for the payment;
        (B) the Secretary approves the payment; and
        (C) before carrying out that part, the Secretary approves the
      plans and specifications for the part in the same way as for
      other projects under this section.

      (2) The Secretary may approve an application under paragraph (1)
    of this subsection only if an authorization for this section is in
    effect for the fiscal year to which the application applies. The
    Secretary may not approve an application if the payment will be
    more than - 
        (A) the recipient's expected apportionment under section 5336
      of this title if the total amount authorized to be appropriated
      for the fiscal year to carry out this section is appropriated;
      less
        (B) the maximum amount of the apportionment that may be made
      available for projects for operating expenses under this section.

      (3) The cost of carrying out that part of a project includes the
    amount of interest earned and payable on bonds issued by the
    recipient to the extent proceeds of the bonds are expended in
    carrying out the part. However, the amount of interest allowed
    under this paragraph may not be more than the most favorable
    financing terms reasonably available for the project at the time of
    borrowing. The applicant shall certify, in a manner satisfactory to
    the Secretary, that the applicant has shown reasonable diligence in
    seeking the most favorable financing terms.
      (4) The Secretary shall consider changes in capital project cost
    indices when determining the estimated cost under paragraph (3) of
    this subsection.
      (h) Streamlined Administrative Procedures. - The Secretary shall
    prescribe streamlined administrative procedures for complying with
    the certification requirement under subsection (d)(1)(B) and (C) of
    this section for track and signal equipment used in existing
    operations.
      (i) Reviews, Audits, and Evaluations. - (1)(A) At least annually,
    the Secretary shall carry out, or require a recipient to have
    carried out independently, reviews and audits the Secretary
    considers appropriate to establish whether the recipient has
    carried out - 
        (i) the activities proposed under subsection (d) of this
      section in a timely and effective way and can continue to do so;
      and
        (ii) those activities and its certifications and has used
      amounts of the Government in the way required by law.

      (B) An audit of the use of amounts of the Government shall comply
    with the auditing procedures of the Comptroller General.
      (2) At least once every 3 years, the Secretary shall review and
    evaluate completely the performance of a recipient in carrying out
    the recipient's program, specifically referring to compliance with
    statutory and administrative requirements and the extent to which
    actual program activities are consistent with the activities
    proposed under subsection (d) of this section and the planning
    process required under sections 5303-5306 of this title. To the
    extent practicable, the Secretary shall coordinate such reviews
    with any related State or local reviews.
      (3) The Secretary may take appropriate action consistent with a
    review, audit, and evaluation under this subsection, including
    making an appropriate adjustment in the amount of a grant or
    withdrawing the grant.
      (j) Reports. - A recipient (including a person receiving amounts
    from a chief executive officer of a State under this section) shall
    submit annually to the Secretary a report on the revenues the
    recipient derives from the sale of advertising and concessions.
      (k) Transit Enhancement Activities. - 
        (1) In general. - One percent of the funds apportioned to
      urbanized areas with a population of at least 200,000 under
      section 5336 for a fiscal year shall be made available for
      transit enhancement activities in accordance with section
      5302(a)(15).
        (2) Period of availability. - Funds apportioned under paragraph
      (1) shall be available for obligation for 3 years following the
      fiscal year in which the funds are apportioned. Funds that are
      not obligated at the end of such period shall be reapportioned
      under the urbanized area formula program of section 5336.
        (3) Report. - A recipient of funds apportioned under paragraph
      (1) shall submit, as part of the recipient's annual certification
      to the Secretary, a report listing the projects carried out
      during the preceding fiscal year with those funds.

      (l) Procurement System Approval. - A recipient may request the
    Secretary to approve its procurement system. The Secretary shall
    approve the system for use for procurements financed under section
    5336 of this title if, after consulting with the Administrator for
    Federal Procurement Policy, the Secretary decides the system
    provides for competitive procurement. Approval of a system under
    this subsection does not relieve a recipient of the duty to certify
    under subsection (d)(1)(E) of this section.
      (m) Operating Ferries Outside Urbanized Areas. - A vessel used in
    ferryboat operations financed under section 5336 of this title that
    is part of a State-operated ferry system may be operated
    occasionally outside the urbanized area in which service is
    provided to accommodate periodic maintenance if existing ferry
    service is not reduced significantly by operating outside the area.
      (n) Relationship to Other Laws. - (1) Section 1001 of title 18
    applies to a certificate or submission under this section. The
    Secretary may end a grant under this section and seek
    reimbursement, directly or by offsetting amounts available under
    section 5336 of this title, when a false or fraudulent statement or
    related act within the meaning of section 1001 is made in
    connection with a certification or submission.
      (2) Sections 5302, 5318, 5319, 5323(a)(1), (d), and (f), 5332,
    and 5333 of this title apply to this section and to a grant made
    under this section. Except as provided in this section, no other
    provision of this chapter applies to this section or to a grant
    made under this section.



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