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number of full-time employees of an air carrier within a 12-month period. Any particular reduction of less than 7% percent may be found by the Board to be part of a major contraction of an air carrier if the Board determines that other reductions are likely to occur such that within a 12-month period in which such particular reduction occurs the total reduction will exceed 7% percent. In computing a 7%-percent reduction under this paragraph, the Board shall not include employees who are deprived of employment because of a strike or who are terminated for cause.

(i) Transfer of authority of Board

The authority of the Board under this section is transferred to the Department of Transportation on January 1, 1985.

(j) Termination

The provisions of this section shall terminate on the last day the Secretary is required to make a payment under this section.

(Pub. L. 95-504, § 43, Oct. 24, 1978, 92 Stat. 1750.)

REFERENCES IN TEXT

The Airline Deregulation Act of 1978, referred to in subsec. (h)(2), is Pub. L. 95-504, Oct. 24, 1978, 92 Stat. 1705, as amended. For complete classification of this Act to the Code, see Short Title of 1978 Amendment note set out under section 1301 of this Appendix and Tables.

CODIFICATION

Section was enacted as part of the Airline Deregulation Act of 1978, and not as part of the Federal Aviation Act of 1958 which comprises this chapter.

TRANSFER OF FUNCTIONS

All functions, powers, and duties of the Civil Aeronautics Board were terminated or transferred by section 1551 of this Appendix, effective in part on Dec. 31, 1981, in part on Jan. 1, 1983, and in part on Jan. 1, 1985.

For transfer of certain enforcement functions of the Secretary or other official of the Department of Transportation relating to compliance with this chapter and the authorizations and regulations issued thereunder to the Federal Inspector, Office of Federal Inspector of the Alaska Natural Gas Transportation System, see Transfer of Functions note set out under section 1301 of this Appendix.

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Sec.

1602.

1602-1.

1602a.

1603.

1604.

Federal financial assistance. (a) Grants or loans to States and local public agencies; uses of funds; eligibility of applicant; real property ac quisition; prohibition on uses of grant or loan funds; intention to obligate by letter of intent to applicant; considerations related to ac quisition of rail lines and related facilities; emphasis on labor inten sive projects.

(b) Acquisition of real property; uses, provisions of loan agreement; re

payment and forgiveness of loans; submission of applications to the Secretary and the comprehensive planning agency of the community affected and consideration of comments of such agency by the Secre tary.

(c) Loan restrictions and limitations; in

terest.

(d) Notice and public hearings.

(e) Private transit operators.

(f) Purchase or operation of buses.

(g) Schoolbus operations.

(h) Expenditure of funds in connection with acquisition of buses, bus equipment, or bus related facilities. Conversion of equipment and facilities loans to grants for public transportation proj ects.

Federal financial assistance agreements. (a) Assistance for bus purchases subject to agreement against charter bus operations outside of regularly scheduled mass transportation service area; exceptions. (b) Assistance for bus purchases subject to agreement against competitive school bus operations with private school bus operators; nonapplica tion of restriction under certain circumstances.

Long-range program.

(a) "Net project costs" defined; Federal grant for two-thirds and non-Feder

al funds for one-third of net project cost; refunds.

(b) Appropriations; advance or progress payments.

(c) Appropriations for Federal financial assistance and grants for technical studies.

(d) Appropriations for grants for research and training in urban transportation problems.

(e) Appropriations to finance grants to reimburse States and local agencies for cost of financially supporting or operating rail passenger service. (f) Miscellaneous appropriations. (g) Appropriations for transportation projects substituted for withdrawn interstate segments.

(h) Annual report to Congress. (i) Grants to States and local agencies for deployment of innovative techniques and methods in the management and operation of public transportation services. Urban mass transit grant program. (a) Grants for construction or operating assistance; apportionment of funds; authorization of appropriations. (b) Designation of recipients to receive and dispense funds; annual report to Secretary.

Sec.

(c) Grants, contracts, etc., obligations for financing grants; maximum amount; authorization of appropriations for liquidation of obligations; additional appropriations available for apportionment; availability of apportioned sums for obligation; lapse of apportionments. (d) Approval of projects for acquisition, construction, and improvement of facilities and equipment, and payment of operating expenses; terms and conditions; regulations.

(e) Limitation on amount of grants for construction and operating expense projects; source of remainder of funds for projects.

(f) Federal funds available for expenditure for mass transportation projects supplementary to average amount of State and local government funds, etc., expended for operations; reduction of State and local government funds.

(g) Project as part of approved program of projects prior to approval; eligibility of recipient.

(h) Submission by Governor or designated recipient and approval by Secretary of surveys, plans, etc., of proposed projects; grant or contract agreement as contractual obligation of Federal Government; criteria for approval of projects. (i) Certification by Governor or designated recipient to Secretary of compliance with procedures for determination of environmental, etc., impact of proposed projects; report. (j) Acceptance of certification as discharge of Secretary's responsibilities; final inspection or review and report of projects; guidelines and regulations; rescission of acceptance of certification; Secretary's responsibilities under other Federal laws not affected.

(k) Formal project agreements between Secretary and Governor or designated recipient; arrangements for local funding or cooperation in construction of project; advance grant or contract payments.

(1) Criteria for approval and undertaking of projects.

(m) Maximum amount of fares for elderly and handicapped persons utilizing project facilities and equipment receiving assistance.

(n) Applicability of other provisions. (0) Availability of sums apportioned before October 1, 1982.

Sec.

1607a.

(d) Contracts and grants to States and local agencies for planning, etc., of transportation projects.

(e) Participation of private enterprise. Block grants.

(a) Amounts appropriated from the general fund of the Treasury for urbanized areas.

(b) Apportionment according to fixed guideway revenue vehicle or route miles.

(c) Apportionment according to formulas based on bus revenue vehicle miles, bus passenger miles, and population.

(d) Formula for apportionment among urban areas of less than 200,000 population.

(e) Applicability of provisions of this chapter; submission by recipient of final program of projects; submission of annual certification.

(f) Responsibilities of recipients relating to preparation of program of projects; availability to public.

(g) Reviews and audits; review and evaluation of recipient by Secretary; adjustments in amount of annual grants; certification as prerequisite to grant.

(h) Applicability of fraud and false state-
ment provisions; termination and
reimbursement of grants.

(i) Approval of procurement system.
(j) Availability of grants to finance mass
transportation; "associated capital
maintenance items" defined.

(k) Limitations on grants for construc-
tion projects and operating assist-

ance.

(1) Transfer of capital apportionment for use for operating assistance; certification; discretionary grants; termination of authority.

(m) Designation of recipients; sums not
made available for expenditure by
designated recipients.

(n) Transfer of apportionment by Gover-
nor; transfer of apportionment by
designated recipient to Governor.
(0) Availability of apportionment for ob-
ligation of recipient.

1607a-1. Mass Transit Account distribution.
(a) Apportionment among urbanized

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Sec.

1609.

1610.

1611.

1612.

1613.

1614.

1615.

1616.

1617.

1618.

TITLE 49, APPENDIX-TRANSPORTATION

(d) Regulation of operation of system,
rates, rentals, or other charges;
compliance with undertakings.
(e) Prohibition on use of Federal finan-
cial assistance for transfer of land,
etc., between public bodies in geo-
graphical proximity.

(f) Petition for exemption from inter-
state commerce provisions; proce-
dure.

(g) Bids for passenger seats functional
specifications.

Labor standards.

(a) Action of Secretary.

(b) Authority of Secretary of Labor.
(c) Interests of employees; protective ar-
rangements; terms and conditions.

Environmental protection.
(a) National policy; cooperation with
other Federal departments and
agencies.

(b) Review of hearing transcripts.
(c) Findings; inadequate record; notice
and hearing.
Reporting system and uniform system of ac-
counts; development, testing, etc.; pur-
poses; implementation; coverage as precon-
dition for future award of grants; report to
Congress.

Planning and design of mass transportation
facilities to meet special needs of the elder-
ly and the handicapped.

(a) Congressional declaration of policy.
(b) Grants and loans for special projects
to meet needs of elderly and handi-
capped persons.

(c) Financing of research, development,
and demonstration projects.
(c) Publication of proposed regulations;
promulgation of final regulations;
notice and opportunity for com-
ment.

Emergency financial assistance.

(a) Purposes of reimbursement.
(b) Nonapplicability.

(c) Terms and conditions; exceptions;
waivers.

(d) Federal share of costs of rail passen

ger service; duration.

(e) Applicability of other statutory pro-
visions.

(f) Funding authority; authorization of
appropriations for liquidation of
obligations funding assistance pro-
grams.
Formula grant program for areas other than
urbanized areas.

(a) Apportionment

sums.

of

appropriated

(b) Use of funds for transportation proj-
ects included in a State program of
projects for public transportation
services; approval of program.
(c) Availability of sums apportioned for
obligation by States.

(d) Use of funds for administration and
technical assistance.

(e) Federal share of construction proj-
ects.

(f) Terms and conditions of grants; ap-
plication of other laws.

(g) Evaluation of escalation of insurance
rates for operators of public trans-
portation; report to Congress.

Nondiscrimination.

Human resources programs in public trans

portation activities.

Authorization of appropriations.

Safety authority.

Page 1250

CHAPTER REFERRED TO IN OTHER SECTIONS This chapter is referred to in title 23 sections 103, 142; title 40 section 819; title 42 section 7506.

§ 1601. Declaration of findings and purposes

(a) The Congress finds

(1) that the predominant part of the Na tion's population is located in its rapidly expanding metropolitan and other urban areas which generally cross the boundary lines of local jurisdictions and often extend into two or more States;

(2) that the welfare and vitality of urban areas, the satisfactory movement of people and goods within such areas, and the effec tiveness of housing, urban renewal, highway, and other federally aided programs are being jeopardized by the deterioration or inad equate provision of urban transportation facilities and services, the intensification of traffic congestion, and the lack of coordinat ed transportation and other development planning on a comprehensive and continuing basis; and

(3) that Federal financial assistance for the development of efficient and coordinated mass transportation systems is essential to the solution of these urban problems.

(b) The purposes of this chapter are

(1) to assist in the development of improved mass transportation facilities, equipment, techniques, and methods, with the cooperation of mass transportation companies both public and private;

(2) to encourage the planning and establishment of areawide urban mass transportation systems needed for economical and desirable urban development, with the cooperation of mass transportation companies both public and private; and

(3) to provide assistance to State and local governments and their instrumentalities in financing such systems, to be operated by public or private mass transportation companies as determined by local needs. (Pub. L. 88-365, § 2, July 9, 1964, 78 Stat. 302.)

SHORT TITLE OF 1983 AMENDMENT

Pub. L. 97-424, title III, § 301, Jan. 6, 1983, 96 Stat. 2140, provided that: "This title [enacting sections 1601c, 1607a, 1607a-1, 1617, and 1618 of this Appendix, amending sections 1602, 1603, 1604, 1607c, 1608, 1611, 1612, and 1614 of this Appendix, repealing sections 1604a, 1617, and 1618 of this Appendix, and enacting a provision set out as a note under section 1612 of this Appendix] may be cited as the 'Federal Public Transportation Act of 1982'."

SHORT TITLE OF 1978 AMENDMENT

Pub. L. 95-599, title III, § 301, Nov. 6, 1978, 92 Stat. 2735, provided that: "This title [enacting sections 1602-1, 1607, 1614, 1615, 1616, 1617 and 1618 of this Appendix, amending sections 1602, 1603, 1604, 1607b, 1607c, 1608, 1611, 1612, 1613 of this Appendix and sec tion 1418 of Title 15, Commerce and Trade, repealing sections 1607, 1607a, and 1614 of this Appendix, and enacting provisions set out as notes under sections 1604, 1605, 1607, and 1612 of this Appendix] may be

cited as the 'Federal Public Transportation Act of 1978'."

SHORT TITLE OF 1974 AMENDMENT

Pub. L. 93-503, § 1, Nov. 26, 1974, 88 Stat. 1566, provided "That this Act [enacting sections 1601b, 1604a, and 1604b of this Appendix, amending sections 1602, 1603, 1604, and 1611 of this Appendix and section 3303 of Title 42, The Public Health and Welfare, and enacting provisions set out as notes under section 1605 of this Appendix] may be cited as the 'National Mass Transportation Assistance Act of 1974'."

SHORT TITLE OF 1970 AMENDMENT

Pub. L. 91-453, § 14, Oct. 15, 1970, 84 Stat. 969, provided that: "This Act [enacting sections 1601a and 1612 of this Appendix, amending sections 1602 to 1605, 1608, 1610, and 1611 of this Appendix and section 5316 of Title 5, Government Organization and Employees, and enacting provisions set out as notes under sections 1602 and 1605 of this Appendix] may be cited as the 'Urban Mass Transportation Assistance Act of 1970'."

SHORT TITLE

Section 1 of Pub. L. 88-365 provided: "That this Act [enacting this chapter] may be cited as the 'Urban Mass Transportation Act of 1964'."

§ 1601a. Additional Congressional findings

The Congress finds that the rapid urbanization and the continued dispersal of population and activities within urban areas has made the ability of all citizens to move quickly and at a reasonable cost an urgent national problem; that it is imperative, if efficient, safe, and convenient transportation compatible with soundly planned urban areas is to be achieved, to continue and expand the provisions of this chapter; and that success will require a Federal commitment for the expenditure of at least $10,000,000,000 over a twelve-year period to permit confident and continuing local planning, and greater flexibility in program administration. It is the purpose of this Act to create a partnership which permits the local community, through Federal financial assistance, to exercise the initiative necessary to satisfy its urban mass transportation requirements. (Pub. L. 91-453, § 1, Oct. 15, 1970, 84 Stat. 962.) REFERENCES IN TEXT

This Act, referred to in text, is Pub. L. 91-453, Oct. 15, 1970, 84 Stat. 962, known as the Urban Mass Transportation Assistance Act of 1970, which enacted this section and section 1612 of this Appendix, amended sections 1602 to 1605, 1608, 1610 and 1611 of this Appendix and section 5316 of Title 5, Government Organization and Employees, and enacted provisions set out as notes under sections 1602 and 1605 of this Appendix. For complete classification of this Act to the Code, see Short Title of 1970 Amendment note set out under section 1601 of this Appendix and Tables.

CODIFICATION

Section was enacted as part of the Urban Mass Transportation Assistance Act of 1970, and not as part of the Urban Mass Transportation Act of 1964 which comprises this chapter.

§ 1601b. Additional Congressional findings The Congress finds that

(1) over 70 per centum of the Nation's population lives in urban areas;

(2) transportation is the lifeblood of an urbanized society and the health and welfare of

that society depends upon the provision of efficient economical and convenient transportation within and between its urban area;

(3) for many years the mass transportation industry satisfied the transportation needs of the urban areas of the country capably and profitably;

(4) in recent years the maintenance of even minimal mass transportation service in urban areas has become so financially burdensome as to threaten the continuation of this essential public service;

(5) the termination of such service or the continued increase in its cost to the user is undesirable, and may have a particularly serious adverse effect upon the welfare of a substantial number of lower income persons;

(6) some urban areas are now engaged in developing preliminary plans for, or are actually carrying out, comprehensive projects to revitalize their mass transportation operations; and

(7) immediate substantial Federal assistance is needed to enable many mass transportation systems to continue to provide vital service.

(Pub. L. 93-503, § 2, Nov. 26, 1974, 88 Stat. 1566.)

CODIFICATION

Section was enacted as part of the National Mass Transportation Assistance Act of 1974, and not as part of the Urban Mass Transportation Act of 1964 which comprises this chapter.

§ 1601c. Performance reports

(a) Public mass transportation systems; recommendations for administrative or legislative revisions The Secretary of Transportation shall report to Congress in January of 1984 and in January of every second year thereafter his estimates of the current performance and condition of public mass transportation systems together with recommendations for any necessary administrative or legislative revisions.

(b) Assessment of public transportation facilities and future needs for such facilities; estimate of future capital, operation, and maintenance requirements In reporting to Congress pursuant to this section, the Secretary shall prepare a comprehensive assessment of public transportation facilities in the United States. The Secretary shall also assess future needs for such facilities and estimate future capital requirements and operation and maintenance requirements for one-, five-, and ten-year periods at specified levels of service.

(Pub. L. 97-424, title III, § 310, Jan. 6, 1983, 96 Stat. 2151.)

CODIFICATION

Section was enacted as part of the Federal Public Transportation Act of 1982, and not as part of the Urban Mass Transportation Act of 1964 which comprises this chapter.

'So in original. Probably should be followed by a comma.

§ 1602. Federal financial assistance
(a) Grants or loans to States and local public agen-
cies; uses of funds; eligibility of applicant; real
property acquisition; prohibition on uses of grant
or loan funds; intention to obligate by letter of
intent to applicant; considerations related to ac-
quisition of rail lines and related facilities; em-
phasis on labor intensive projects

(1) The Secretary is authorized, in accordance with the provisions of this chapter and on such terms and conditions as the Secretary may prescribe, to make grants or loans (directly, through the purchase of securities or equipment trust certificates, or otherwise) to assist States and local public bodies and agencies thereof in financing—

(A) the construction of new fixed guideway systems and extensions to existing fixed guideway systems, including the acquisition of real property, the initial acquisition of rolling stock needed for such systems, the detailed alternative analyses relating to the development of such systems, and the acquisition of rights-of-way, and relocation, for fixed guideway corridor development for projects in advanced stages of any such detailed alternatives analyses or preliminary engineering;

(B) the acquisition, construction, reconstruction, and improvement of facilities and equipment for use, by operation or lease or otherwise, in mass transportation service and the coordination of such service with highway and other transportation. Eligible facilities and equipment may include personal property such as buses and other rolling stock, and rail and bus facilities, and real property and improvements (but not public highways other than fixed guideway facilities) needed for an efficient and coordinated public transportation system. No project for the replacement or purchase of buses and related equipment or the construction of busrelated facilities shall be approved unless the Secretary finds that such project cannot be reasonably funded out of the apportionments under section 1604(a)(4) of this Appendix;

(C) the introduction into public transportation service of new technology in the form of innovative and improved products;

(D) transportation projects which enhance the effectiveness of any mass transportation project and are physically or functionally related to such mass transportation project or which create new or enhanced coordination between public transportation and other forms of transportation, either of which enhance urban economic development or incorporate private investment including commercial and residential development. The term "eligible costs" includes property acquisition, demolition of existing structures, site preparation, utilities, building foundations, walkways, open space, and the acquisition, construction, and improvement of facilities and equipment for intermodal transfer facilities and transit malls, but does not include the construction of commercial revenue-producing facilities, whether publicly or privately owned, or of those portions of public facilities not related to mass transportation. The Sec

Page 1252

retary shall require that all grants and loans under this paragraph be subject to such terms, conditions, requirements, and provi sions as the Secretary determines necessary or appropriate for purposes of this section, including requirements for the disposition of net increases in value of real property result ing from the project assisted under this sec tion. The Secretary shall require in all grants and loans under this subparagraph that any person or entity that contracts to occupy space in facilities funded under this subparagraph shall pay a fair share of the cost of such facilities, through rental payments and other means;

(E) the modification of equipment and fixed facilities (other than stations) which the Sec retary determines to be necessary to avoid any adverse effects resulting from the implementation of the Northeast Corridor project pursuant to title VII of Public Law 94-210. Notwithstanding the Federal share provisions of section 1603(a) of this Appendix, the Secre tary is authorized to make grants for 100 per centum of the net project cost of projects assisted under this subparagraph.

(2)(A) No grant or loan shall be provided under this section unless the Secretary deter mines that the applicant has or will have

(i) the legal, financial, and technical capac ity to carry out the proposed project;

(ii) satisfactory continuing control, through operation or lease or otherwise, over the use of the facilities and the equipment; and

(iii) sufficient capability to maintain the facilities and equipment.

(B) The Secretary may make loans for real property acquisition pursuant to subsection (b) of this section upon a determination, which shall be in lieu of the determination required by subparagraph (A), that the real property is reasonably expected to be required in connec tion with a mass transportation system and that it will be used for that purpose within & reasonable period.

(C) No grant or loan funds shall be used for payment of ordinary governmental or nonproj. ect operating expenses, nor shall any grant or loan funds be used to support procurements utilizing exclusionary or discriminatory specifi cations.

(3) The Secretary shall not approve a grant or loan for a project under this section unless the Secretary finds that such project is part of an approved program of projects required by section 1607 of this Appendix.

(4) The Secretary is authorized to announce an intention to obligate for a project under this section through the issuance of a letter of intent to the applicant. At least thirty days prior to the issuance of a letter of intent under this paragraph, the Secretary shall notify, in writing, the Committee on Public Works and Transportation of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, of the proposed issuance of such letter of intent. Such an action shall not be deemed an obligation as defined under sections 1108(c) and (d), 1501, and

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