SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rural Transit Improvement and 
Flexibility Act of 2009''.

SEC. 2. FORMULA GRANTS FOR OTHER THAN URBANIZED AREAS.

    Section 5311(c)(2) of title 49, United States Code, is amended--
            (1) in subparagraph (A), by striking ``20 percent'' and 
        inserting ``25 percent''; and
            (2) in subparagraph (B), by striking ``80 percent'' and 
        inserting ``75 percent''.

SEC. 3. FLEXIBLE USE OF ELDERLY AND DISABLED FUNDING.

    Section 5310 of title 49, United States Code, is amended by--
            (1) in subsection (a), by adding at the end the following:
            ``(5) Operating costs.--A State may use not more than 25 
        percent of the amounts apportioned to the State under this 
        section for operating costs of equipment and facilities that 
        are or have been funded in whole or part under this section.''; 
        and
            (2) in subsection (c)--
                    (A) by redesignating paragraphs (2) and (3) as 
                paragraphs (3) and (4), respectively; and
                    (B) by inserting after paragraph (1) the following:
            ``(2) Operating assistance.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a grant made under this section for 
                operating assistance may not exceed 50 percent of the 
                net operating costs of the project, as determined by 
                the Secretary.
                    ``(B) Exception.--A State described in section 
                120(b) of title 23 shall receive a Government share of 
                the net operating costs equal to 62.5 percent of the 
                Government share provided for under paragraph 
                (1)(B).''.

SEC. 4. PILOT PROGRAM FOR TRANSIT CENTERS IN SMALLER CITIES AND TOWNS.

    (a) In General.--Chapter 53 of title 49, United States Code, is 
amended by inserting after section 5311 the following:
``Sec. 5311a. Pilot program for transit centers in smaller cities and 
              towns
    ``(a) In General.--The Secretary shall establish a program 
(referred to in this section as the `program') of grants to eligible 
States for the purpose of establishing transit centers in urbanized 
areas with a population of less than 200,000 and in areas other than 
urbanized areas. Such transit centers may include multimodal 
transportation centers that include transit centers.
    ``(b) Purpose.--The purpose of the program is to facilitate the 
development of transit service in areas that, historically, may not 
have received adequate attention to the development of transit service 
by providing facilities that have the potential to be transformational 
with respect to the provision of improved transit service in a 
community.
    ``(c) Definitions.--In this section--
            ``(1) the term `eligible State' means a State with a 
        population density of less than 100 persons per square mile of 
        land area, based on the most recent decennial census at the 
        time an application is filed; and
            ``(2) the definitions of `recipient' and `subrecipient' in 
        section 5311(a) shall apply.
    ``(d) Procedures.--
            ``(1) In general.--The Secretary shall develop 
        administrative procedures and requirements for the 
        implementation of this section, including any application 
        procedures, and may pattern such procedures and requirements 
        after requirements applicable to discretionary bus grants under 
        section 5309, but shall streamline such processes and limit 
        requirements to the maximum extent possible, to facilitate 
        prompt implementation of the program and to minimize the 
        regulatory burden on grant recipients and subrecipients.
            ``(2) Development.--The Secretary shall develop proposed 
        procedures under this subsection and publish them in the 
        Federal Register for comment within 60 days of the date of 
        enactment of this section. Final procedures shall be adopted 
        within 60 days of the close of said comment period.
    ``(e) Distribution.--In distributing funds pursuant to this 
section--
            ``(1) the Secretary shall, prior to the completion of 
        fiscal year 2012, award grants to establish at least one such 
        center in each eligible State, provided that satisfactory 
        applications have been filed from each eligible State in a 
        timely manner to enable such distribution; and
            ``(2) prior to the completion of fiscal year 2015, shall 
        award grants to establish at least 2 such centers in each 
        eligible State, provided that satisfactory applications have 
        been filed from each eligible State in a timely manner to 
        enable such distribution.
    ``(f) Administration Costs.--A recipient may use not more than 10 
percent of amounts awarded under this section for a project to 
administer, plan, and provide technical assistance for that project 
funded under this section. A recipient may allocate to a subrecipient 
all or part of the amount the recipient may use under this subsection 
to administer, plan, and provide technical assistance for a project.
    ``(g) Eligible Expenses and Government Share.--Except for 
administrative expenses authorized under subsection (f), grants under 
this program shall be only for capital expenses, including buildings, 
facilities for the maintenance and repair of buses and other transit 
vehicles, off street transit vehicle stop space and transit vehicle 
parking space, passenger seating areas, and other capital expenditures 
as the Secretary may determine appropriate. The Government share of 
capital costs under this section shall be 100 percent.''.
    (b) Funding.--From the Mass Transit Account of the Highway Trust 
Fund there shall be made available to carry out the program established 
pursuant to section 5311a of title 49, United States Code, $25,000,000 
for fiscal year 2010 and $50,000,000 for each of fiscal years 2011 
through 2015. All such amounts are to remain available until expended.
Rural Transit Improvement and Flexibility Act of 2009 - Revises the apportionment of nonurbanized formula grants for amounts remaining after apportionment for grants to Indian tribes for public transportation on Indian reservations for FY2006-FY2009. Increases from 20% to 25% the amount of remaining funds to be apportioned to a state based on its land area. Decreases correspondingly from 80% to 75% the amount of remaining funds to be apportioned to a state based on population in nonurbanized areas.

Limits to 25% of its apportionment for a formula grant for a capital project for the special needs of elderly individuals and individuals with disabilities the amount a state may use for operating costs of equipment and facilities.

Limits a grant for operating assistance from exceeding 50% of the net operating project costs. Increases such limit to 62.5% of the government share of project costs in the case of a state containing nontaxable Indian lands, individual and tribal, and public domain lands (both reserved and unreserved), national forests, and national parks and monuments.

Requires the Secretary of Transportation to establish a pilot program for the award of grants to states to establish transit centers to improve transit service (buses and other transit vehicles) in urbanized areas with a population of less than 200,000 and in nonurbanized areas.
A bill to improve transit services, including in rural States.