URBANIZED AREA FORMULA GRANTS.

SEC. 3009. URBANIZED AREA FORMULA GRANTS.(a) Technical Amendments.—Section 5307 is amended—(1) by striking subsections (h), (j) and (k); and(2) by redesignating subsections (i), (l), (m), and (n) as subsections (h), (i), (j), and (k), respectively.(b) Definitions.—(1) Associated capital maintenance items.—Section 5307(a)(1) is amended—(A) by striking “means equipment, tires,” and inserting “means—“(A) equipment, tires,”;(B) in subparagraph (A) (as so designated) by striking the period at the end and inserting “; and”; and (C) by adding at the end the following:“(B) 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.”.(2) Designated recipient.—Section 5307(a)(2)(A) is amended to read as follows:“(A) an entity designated, in accordance with the planning process under sections 5303, 5304, and 5306, by the chief executive officer of a State, responsible local officials, and publicly owned operators of public transportation, to receive and apportion amounts under section 5336 that are attributable to transportation management areas identified under section 5303; or”.(c) General Authority.—Section 5307(b) is amended—(1) by striking paragraph (1) and inserting the following:“(1) Grants.—The Secretary may make grants under this section for—“(A) capital projects and associated capital maintenance items;“(B) planning;“(C) transit enhancements; “(D) operating costs of equipment and facilities for use in public transportation in an urbanized area with a population of less than 200,000;“(E) operating costs of equipment and facilities for use in public transportation in a portion or portions of an urbanized area with a population of at least 200,000, but not more than 225,000, if—119 STAT. 1569“(i) the urbanized area includes parts of more than one State;“(ii) the portion of the urbanized area includes only one State;“(iii) the population of the portion of the urbanized area is less than 30,000; and“(iv) the grants will not be used to provide public transportation outside of the portion of the urbanized area; and“(F) operating costs of equipment and facilities for use in public transportation for local governmental authorities in areas which adopted transit operating and financing plans that became a part of the Houston, Texas, urbanized area as a result of the 2000 decennial census of population, but lie outside the service area of the principal public transportation agency that serves the Houston urbanized area.”;(2) by striking paragraph (2) and inserting the following:“(2) Special rule for fiscal years 2005 through 2007.—“(A) Increased flexibility.—The Secretary may award grants under this section, from funds made available to carry out this section for each of the fiscal years 2005 through 2007, 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 by the 2000 decennial census of population, if—“(i) the urbanized area had a population of less than 200,000, as determined by the 1990 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 by the 1990 decennial census of population;“(iii) the area was not designated as an urbanized area, as determined by the 1990 decennial census of population; or“(iv) a portion of the area was not designated as an urbanized area, as determined by the 1990 decennial census, and received assistance under section 5311 in fiscal year 2002.“(B) Maximum amounts in fiscal year 2005.—In fiscal year 2005—“(i) amounts made available to any urbanized area under clause (i) or (ii) of subparagraph (A) shall be not 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 decennial census of population;“(ii) amounts made available to any urbanized area under subparagraph (A)(iii) shall be not more than the amount apportioned to the urbanized area under this section for fiscal year 2003; and“(iii) each portion of any area not designated as an urbanized area, as determined by the 1990 decennial census, and eligible to receive funds under subparagraph (A)(iv), shall receive an amount of funds to carry out this section that is not less than the 119 STAT. 1570 amount the portion of the area received under section 5311 for fiscal year 2002.“(C) Maximum amounts in fiscal year 2006.—In fiscal year 2006—“(i) amounts made available to any urbanized area under clause (i) or (ii) of subparagraph (A) shall be not more than 50 percent of the amount apportioned in fiscal year 2002 to the urbanized area with a population of less than 200,000, as determined in the 1990 decennial census of population;“(ii) amounts made available to any urbanized area under subparagraph (A)(iii) shall be not more than 50 percent of the amount apportioned to the urbanized area under this section for fiscal year 2003; and“(iii) each portion of any area not designated as an urbanized area, as determined by the 1990 decennial census, and eligible to receive funds under subparagraph (A)(iv), shall receive an amount of funds to carry out this section that is not less than 50 percent of the amount the portion of the area received under section 5311 for fiscal year 2002.“(D) Maximum amounts in fiscal year 2007.—In fiscal year 2007—“(i) amounts made available to any urbanized area under clause (i) or (ii) of subparagraph (A) shall be not more than 25 percent of the amount apportioned in fiscal year 2002 to the urbanized area with a population of less than 200,000, as determined in the 1990 decennial census of population;“(ii) amounts made available to any urbanized area under subparagraph (A)(iii) shall be not more than 25 percent of the amount apportioned to the urbanized area under this section for fiscal year 2003; and“(iii) each portion of any area not designated as an urbanized area, as determined by the 1990 decennial census, and eligible to receive funds under subparagraph (A)(iv), shall receive an amount of funds to carry out this section that is not less than 25 percent of the amount the portion of the area received under section 5311 in fiscal year 2002.”; and(3) by striking paragraph (4).(d) Grant Recipient Requirements.—Section 5307(d)(1) is amended—(1) in subparagraph (A) by inserting “, including safety and security aspects of the program” after “program”;(2) in subparagraph (E)—(A) by striking “and” at the end of clause (ii);(B) by inserting “and” at the end of clause (iii); and(C) by adding at the end the following:“(iv) will comply with sections 5323 and 5325;”;(3) in subparagraph (H) by striking “sections 5301(a) and (d), 5303–5306, and 5310(a)–(d) of this title” and inserting “section 5301(a), section 5301(d), and sections 5303 through 5306”;(4) in subparagraph (I) by striking “and” at the end;(5) by adding at the end the following:119 STAT. 1571 “(K) in the case of a recipient for an urbanized area with a population of at least 200,000—“(i) will expend not less than 1 percent of the amount the recipient receives each fiscal year under this section for transit enhancements, as defined in section 5302(a); and“(ii) will submit an annual report listing projects carried out in the preceding fiscal year with those funds; and”.(e) Government’s Share of Costs.—Section 5307(e) is amended to read as follows:“(e) Government’s Share of Costs.—“(1) Capital projects.—A grant for a capital project (including associated capital maintenance items) under this section shall be for 80 percent of the net project cost of the project. The recipient may provide additional local matching amounts.“(2) Operating expenses.—A grant for operating expenses under this section may not exceed 50 percent of the net project cost of the project.“(3) Remaining costs.—Subject to paragraph (4), the remainder of the net project cost shall be provided—“(A) in cash from non-Government sources other than revenues from providing public transportation services;“(B) from revenues derived from the sale of advertising and concessions;“(C) from an undistributed cash surplus, a replacement or depreciation cash fund or reserve, or new capital; and“(D) from amounts received under a service agreement with a State or local social service agency or private social service organization.“(4) Use of certain funds.—The prohibitions on the use of funds for matching requirements under section 403(a)(5)(C)(vii) of the Social Security Act (42 U.S.C. 603(a)(5)(C)(vii)) shall not apply to the remainder.”.(f) Undertaking Projects in Advance.—Section 5307(g) is amended by striking paragraph (4).(g) Relationship to Other Laws.—Section 5307(k) (as redesignated by subsection (a)(2) of this section) is amended to read as follows:“(k) Relationship to Other Laws.—“(1) Applicable provisions.—Sections 5301, 5302, 5303, 5304, 5306, 5315(c), 5318, 5319, 5323, 5325, 5327, 5329, 5330, 5331, 5332, 5333, and 5335 apply to this section and to any grant made under this section.“(2) Inapplicable provisions.—“(A) In general.—Except as provided by this section, no other provision of this chapter applies to this section or to a grant made under this section.“(B) Title 5.—The provision of assistance under this chapter shall not be construed as bringing within the application of chapter 15 of title 5 any nonsupervisory employee of a public transportation system (or any other agency or entity performing related functions) to which such chapter is otherwise inapplicable.”.(h) Treatment.—Section 5307 is amended by adding at the end the following:119 STAT. 1572 “(l) Treatment.—For the purposes of this section, the United States Virgin Islands shall be treated as an urbanized area, as defined in section 5302.”.(i) Contracted Paratransit Pilot.—(1) In general.—Notwithstanding section 5302(a)(1)(I) of title 49, United States Code, for fiscal years 2005 through 2009, a recipient of assistance under section 5307 of such title in urbanized areas with a population of 558,329 or 747,003 according to the 2000 decennial census of population may use not more than 20 percent of such recipient’s annual formula apportionment under section 5307 of such title for the provision of nonfixed route paratransit services in accordance with section 223 of the Americans with Disabilities Act of 1990 (42 U.S.C. 12143), but only if the grant recipient is in compliance with applicable requirements of that Act, including both fixed route and demand responsive service and the service is acquired by contract.(2) Report.—Not later than January 1, 2009, the Secretary shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a report on the implementation of this subsection and any recommendations of the Secretary regarding the application of this subsection.