General provisions on assistance

§ 5323. General provisions on assistance (a) Interests in Property.—(1) Financial assistance provided under this chapter to a State or a local governmental authority may be used to acquire an interest in, or buy property of, a private mass transportation company, for a capital project for property acquired from a private mass transportation company after July 9, 1964, or to operate mass transportation equipment or a mass transportation facility in competition with, or in addition to, transportation service provided by an existing mass transportation company, only if— (A) the Secretary of Transportation finds the assistance is essential to a program of projects required under sections 5303–5306 of this title; (B) the Secretary of Transportation finds that the program, to the maximum extent feasible, provides for the participation of private mass transportation companies; (C) just compensation under State or local law will be paid to the company for its franchise or property; and (D) the Secretary of Labor certifies that the assistance complies with section 5333(b) of this title. (2) A governmental authority may not use financial assistance of the United States Government to acquire land, equipment, or a facility used in mass transportation from another governmental authority in the same geographic area. (b) Notice and Public Hearing.—(1) An application for a grant or loan under this chapter (except section 5307) for a capital project that will affect substantially a community, or the mass transportation service of a community, must include a certificate of the applicant that the applicant has— (A) provided an adequate opportunity for a public hearing with adequate prior notice; (B) held that hearing unless no one with a significant economic, social, or environmental interest requested one; (C) considered the economic, social, and environmental effects of the project; and (D) found that the project is consistent with official plans for developing the urban area. (2) Notice of a hearing under this subsection shall include a concise description of the proposed project and shall be published in a newspaper of general circulation in the geographic area the project will serve. If a hearing is held, a copy of the transcript of the hearing shall be submitted with the application. (c) Acquiring New Bus Models.—Amounts appropriated or made available under this chapter (except section 5307) after September 30, 1989, may be obligated or expended to acquire a new bus model only if a bus of the model has been tested at the facility established under section 5318 of this title. (d) Buying and Operating Buses.—(1) Financial assistance under this chapter may be used to buy or operate a bus only if the applicant, governmental authority, or publicly owned operator that receives the assistance agrees that, except as provided in the agreement, the governmental authority or an operator of mass transportation for the governmental authority will not provide charter bus transportation service outside the urban area in which it provides regularly scheduled mass transportation service. An agreement shall provide for a fair arrangement the Secretary of Transportation considers appropriate to ensure that the assistance 108 STAT. 822will not enable a governmental authority or an operator for a governmental authority to foreclose a private operator from providing intercity charter bus service if the private operator can provide the service. (2) On receiving a complaint about a violation of an agreement, the Secretary of Transportation shall investigate and decide whether a violation has occurred. If the Secretary decides that a violation has occurred, the Secretary shall correct the violation under terms of the agreement. In addition to a remedy specified in the agreement, the Secretary may bar a recipient under this subsection or an operator from receiving further assistance when the Secretary finds a continuing pattern of violations of the agreement. (e) Bus Passenger Seat Functional Specifications.—The initial advertising by a State or local governmental authority for bids to acquire buses using financial assistance under this chapter (except section 5307) may include passenger seat functional specifications that are at least equal to performance specifications the Secretary of Transportation prescribes. The specifications shall be based on a finding by the State or local governmental authority of local requirements for safety, comfort, maintenance, and life cycle costs. (f) Schoolbus Transportation.—(1) Financial assistance under this chapter may be used for a capital project, or to operate mass transportation equipment or a mass transportation facility, only if the applicant agrees not to provide schoolbus transportation that exclusively transports students and school personnel in competition with a private schoolbus operator. This subsection does not apply— (A) to an applicant that operates a school system in the area to be served and a separate and exclusive schoolbus program for the school system; (B) unless a private schoolbus operator can provide adequate transportation that complies with applicable safety standards at reasonable rates; and (C) to a State or local governmental authority if it or a direct predecessor in interest from which it acquired the duty of transporting school children and personnel, and facilities to transport them, provided schoolbus transportation at any time after November 25, 1973, but before November 26, 1974. (2) An applicant violating an agreement under this subsection may not receive other financial assistance under this chapter. (g) Buying Buses Under Other Laws.—Subsections (d) and (f) of this section apply to financial assistance to buy a bus under sections 103(e)(4) and 142(a) or (c) of title 23. However, subsection (f)(1)(C) of this section applies to sections 103(e)(4) and 142(a) or (c) only if schoolbus transportation was provided at any time after August 12, 1972, but before August 13, 1973. (h) Grant and Loan Prohibitions.—A grant or loan may not be used to— (1) pay ordinary governmental or nonproject operating expenses; or (2) support a procurement that uses an exclusionary or discriminatory specification. (i) Government s Share of Costs for Certain Projects.—A Government grant for a project to be assisted under this chapter 108 STAT. 823that involves acquiring vehicle-related equipment required by the Clean Air Act (42 U.S.C. 7401 et seq.) or the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) is for 90 percent of the net project cost of the equipment that is attributable to complying with those Acts. The Secretary of Transportation, through practicable administrative procedures, may determine the costs attributable to that equipment. (j) Buy American.—(1) The Secretary of Transportation may obligate an amount that may be appropriated to carry out this chapter for a project only if the steel, iron, and manufactured goods used in the project are produced in the United States. (2) The Secretary of Transportation may waive paragraph (1) of this subsection if the Secretary finds that— (A) applying paragraph (1) would be inconsistent with the public interest; (B) the steel, iron, and goods produced in the United States are not produced in a sufficient and reasonably available amount or are not of a satisfactory quality; (C) when procuring rolling stock (including train control, communication, and traction power equipment) under this chapter— (i) the cost of components and subcomponents produced in the United States is more than 60 percent of the cost of all components of the rolling stock; and (ii) final assembly of the rolling stock has occurred in the United States; or (D) including domestic material will increase the cost of the overall project by more than 25 percent. (3) In this subsection, labor costs involved in final assembly are not included in calculating the cost of components. (4) The Secretary of Transportation may not make a waiver under paragraph (2) of this subsection for goods produced in a foreign country if the Secretary, in consultation with the United States Trade Representative, decides that the government of that foreign country— (A) has an agreement with the United States Government under which the Secretary has waived the requirement of this subsection; and (B) has violated the agreement by discriminating against goods to which this subsection applies that are produced in the United States and to which the agreement applies. (5) A person is ineligible under subpart 9.4 of chapter 1 of title 48, Code of Federal Regulations, to receive a contract or subcontract made with amounts authorized under the Intermodal Surface Transportation Efficiency Act of 1991 (Public Law 102–240, 105 Stat. 1914) if a court or department, agency, or instrumentality of the Government decides the person intentionally— (A) affixed a “Made in America” label, or a label with an inscription having the same meaning, to goods sold in or shipped to the United States that are used in a project to which this subsection applies but not produced in the United States; or (B) represented that goods described in clause (A) of this paragraph were produced in the United States. (6) The Secretary of Transportation may not impose any limitation on assistance provided under this chapter that restricts a State from imposing more stringent requirements than this sub-108 STAT. 824section on the use of articles, materials, and supplies mined, produced, or manufactured in foreign countries in projects carried out with that assistance or restricts a recipient of that assistance from complying with those State-imposed requirements. (7) Not later than January 1, 1995, the Secretary of Transportation shall submit to Congress a report on purchases from foreign entities waived under paragraph (2) of this subsection in the fiscal years ending September 30, 1992, and September 30, 1993. The report shall indicate the dollar value of items for which waivers were granted. (k) Application of Section 135 of Title 23.—The planning and programming requirements of section 135 of title 23 apply to a grant made under sections 5307–5311 of this title.