FORMULA GRANTS FOR SPECIAL NEEDS OF ELDERLY INDIVIDUALS AND INDIVIDUALS WITH DISABILITIES.

SEC. 3012. FORMULA GRANTS FOR SPECIAL NEEDS OF ELDERLY INDIVIDUALS AND INDIVIDUALS WITH DISABILITIES.(a) In General.—Section 5310 is amended to read as follows:“§ 5310. Formula grants for special needs of elderly individuals and individuals with disabilities“(a) General Authority.—“(1) Grants.—The Secretary may make grants to States and local governmental authorities under this section for public transportation capital projects planned, designed, and carried out to meet the special needs of elderly individuals and individuals with disabilities.“(2) Subrecipients.—A State that receives a grant under this section may allocate the amounts provided under the grant to—“(A) a private nonprofit organization, if the public transportation service provided under paragraph (1) is unavailable, insufficient, or inappropriate; or“(B) a governmental authority that—“(i) is approved by the State to coordinate services for elderly individuals and individuals with disabilities; or“(ii) certifies that there are not any nonprofit organizations readily available in the area to provide the services described under paragraph (1).119 STAT. 1590“(3) Acquiring public transportation services.—A public transportation capital project under this section may include acquisition of public transportation services as an eligible capital expense.“(4) Administrative expenses.—A State or local governmental authority may use not more than 10 percent of the amounts apportioned to the State under this section to administer, plan, and provide technical assistance for a project funded under this section.“(b) Apportionment and Transfers.—“(1) Formula.—The Secretary shall apportion amounts made available to carry out this section under a formula the Secretary administers that considers the number of elderly individuals and individuals with disabilities in each State.“(2) Transfer of funds.—Any funds apportioned to a State under paragraph (1) may be transferred by the State to the apportionments made under sections 5311(c) and 5336 if such funds are only used for eligible projects selected under this section.“(c) Government’s Share of Costs.—“(1) Capital projects.—“(A) In general.—A grant for a capital project under this section shall be for 80 percent of the net capital costs of the project, as determined by the Secretary.“(B) Exception.—A State described in section 120(b) of title 23 shall receive an increased Government share in accordance with the formula under that section.“(2) Remainder.—The remainder of the net project costs—“(A) may be provided from an undistributed cash surplus, a replacement or depreciation cash fund or reserve, a service agreement with a State or local social service agency or a private social service organization, or new capital;“(B) may be derived from amounts appropriated or otherwise made available to a department or agency of the Government (other than the Department of Transportation) that are eligible to be expended for transportation; and“(C) notwithstanding subparagraph (B), may be derived from amounts made available to carry out the Federal lands highway program established by section 204 of title 23.“(3) Use of certain funds.—For purposes of paragraph (2)(B), 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 Federal or State funds to be used for transportation purposes.“(d) Grant Requirements.—“(1) In general.—A grant under this section shall be subject to all requirements of a grant under section 5307 to the extent the Secretary determines appropriate.“(2) Certification requirements.—“(A) Fund transfers.—A grant recipient under this section that transfers funds to a project funded under section 5336 in accordance with subsection (b)(2) shall certify that the project for which the funds are requested has 119 STAT. 1591 been coordinated with private nonprofit providers of services under this section.“(B) Project selection and plan development.—Beginning in fiscal year 2007, each grant recipient under this section shall certify that—“(i) the projects selected were derived from a locally developed, coordinated public transit-human services transportation plan; and“(ii) the plan was developed through a process that included representatives of public, private, and nonprofit transportation and human services providers and participation by the public.“(C) Allocations to subrecipients.—Each grant recipient under this section shall certify that allocations of the grant to subrecipients, if any, are distributed on a fair and equitable basis.“(e) State Program of Projects.—“(1) In general.—Amounts made available to carry out this section may be used for transportation projects to assist in providing transportation services for elderly individuals and individuals with disabilities that are included in a State program of projects.“(2) Submission and approval.—A State shall submit to the Secretary annually for approval a program of projects. The program shall contain an assurance that the program provides for maximum feasible coordination of transportation services assisted under this section with transportation services assisted by other Government sources.“(f) Leasing Vehicles.—Vehicles acquired under this section may be leased to local governmental authorities to improve transportation services designed to meet the special needs of elderly individuals and individuals with disabilities.“(g) Meal Delivery for Homebound Individuals.—Public transportation service providers receiving assistance under this section or section 5311(c) may coordinate and assist in regularly providing meal delivery service for homebound individuals if the delivery service does not conflict with providing public transportation service or reduce service to public transportation passengers.“(h) Transfers of Facilities and Equipment.—With the consent of the recipient in possession of a facility or equipment acquired with a grant under this section, a State may transfer the facility or equipment to any recipient eligible to receive assistance under this chapter if the facility or equipment will continue to be used as required under this section.” .(b) Elderly Individuals and Individuals With Disabilities Pilot Program.—(1) In general.—In fiscal year 2006, the Secretary shall establish a pilot program that will allow Wisconsin, Alaska, Minnesota, Oregon, and 3 other States selected by the Secretary to use not more than 33 percent of the funds apportioned to each State to carry out section 5310 of title 49, United States Code, for operating costs associated with public transportation projects planned, designed, and carried out to meet the special needs of elderly individuals and individuals with disabilities under such section. The Secretary may base the selection of participating States on a State’s exemplary coordination of public transit-human services transportation. The Secretary 119 STAT. 1592 may require participants to collect data necessary to support the report to Congress required by paragraph (7). (2) Planning coordination.—Recipients of funds made available consistent with this subsection shall certify that—(A) the projects selected were derived from a locally developed, coordinated public transit-human services transportation plan; and(B) the plan was developed through a process that included representatives of public, private, and nonprofit transportation and human services providers and participation by the public.(3) Government’s share of costs.—Operating assistance under this subsection may not exceed 50 percent of the net operating costs of the project, as determined by the Secretary. The credit for any non-Federal share provided under this subsection shall not reduce nor replace State funds required to match Federal funds for formula grants for the special needs of elderly individuals and individuals with disabilities program authorized under section 5310 of title 49, United States Code.(4) Remainder.—The remainder of the net project costs—(A) may be provided from an undistributed cash surplus, a replacement or depreciation cash fund or reserve, a service agreement with a State or local social service agency or a private social service organization, or new capital; and(B) may be derived from amounts appropriated to or made available to a department or agency of the Government (other than the Department of Transportation) that are eligible to be expended for transportation.(5) Use of certain funds.—For purposes of paragraph (4)(B), 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 Federal or State funds to be used for transportation purposes.(6) Eligible activities.—Projects eligible under the pilot program may include the collection of data necessary to support the report to Congress required by paragraph (7).(7) Report.—Not later than 2 years after the date of enactment of this Act, the Secretary shall transmit 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 pilot program, which may include—(A) the extent to which funds were used to subsidize existing paratransit service provided in compliance with the Americans with Disabilities Act of 1990;(B) whether States participating in the pilot program use the funds to provide services to persons with disabilities that exceed those services required by the Americans with Disabilities Act of 1990 differently than States not in the pilot program;(C) whether States participating in this pilot program use the funds to provide services to individuals with disabilities that exceed those services required by the Americans with Disabilities Act of 1990 to the detriment of other eligible projects;119 STAT. 1593(D) the percentage of funds used to assist elderly individuals;(E) the percentage of funds used to assist individuals with disabilities;(F) the extent to which States participating in this pilot program serve a wider range of elderly, low income, and persons with disabilities populations;(G) whether the pilot program improves services to elderly individuals and individuals with disabilities;(H) the extent to which States participating in the pilot program were able to expand the range of transportation alternatives available to elderly individuals and individuals with disabilities; and(I) whether the pilot program facilitates or discourages coordination with or integration of other funding sources.(8) Sunset.—This subsection shall cease to be effective on September 30, 2009.(c) Chapter Analysis.—The analysis for chapter 53 is amended by striking the item relating to section 5310 and inserting the following: “5310. Formula grants for special needs of elderly individuals and individuals with disabilities.”.