PUBLIC LAW 103-272—JULY 5, 1994 108 STAT. 821 § 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 I'UBLIC 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
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