I
105TH CONGRESS
2D SESSION
H. R. 4384
To amend title 49, United States Code, relating to continuation of operating
assistance for small transit operators in large urbanized areas.
IN THE HOUSE OF REPRESENTATIVES
AUGUST 3, 1998
Mr. FROST introduced the following bill; which was referred to the Committee
on Transportation and Infrastructure
A BILL
To amend title 49, United States Code, relating to continu-
ation of operating assistance for small transit operators
in large urbanized areas.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. FINDINGS.
Congress finds that—
(1) small transit operators, including those in
large urbanized areas (urbanized areas with a popu-
lation of at least 200,000), are usually more reliant
on Federal operating assistance than larger opera-
tors;
(2) Federal operating assistance has been elimi-
nated, 
from 
the 
fiscal 
year 
1995 
level 
of
$710,000,000 to $0 in fiscal year 1999;
(3) the elimination of operating assistance over
the 4-year period provided little time for many small
transit operators in large urbanized areas to adjust,
and without the resources to make up this gap,
these small transit operators might have to cut serv-
ice and raise fares;
(4) the elimination of operating assistance for
small operators in large urbanized areas could harm
the quality of transit service for their customers re-
sulting in fare increases, or substantial service cuts
to meet the anticipated shortfall in Federal operat-
ing funds;
(5) a Transportation Research Board analysis
conducted in 1996 concluded that transit riders in
some areas would see their fares double if operators
have to pass Federal operating assistance reductions
on to passengers;
(6) fare increases or service cuts would particu-
larly impact people with disabilities and the elderly;
and
(7) operating assistance funding reductions can
cause transit service to decrease, thus worsening
highway gridlock especially in large urbanized areas
where most of the Nation’s traffic congestion occurs.
SEC. 2. CONTINUATION OF OPERATING ASSISTANCE FOR
SMALL TRANSIT OPERATORS IN LARGE UR-
BANIZED AREAS.
Section 5307 of title 49, United States Code, is
amended—
(1) by adding at the end of subsection (a) the
following new paragraph:
‘‘(3) PRIMARY TRANSIT OPERATOR.—The term
‘primary transit operator’ means the designated re-
cipient for, or the largest transit operator in, an ur-
banized area with a population of at least 200,000.
‘‘(4) SMALL
TRANSIT
OPERATOR.—The term
‘small transit operator’ means an entity, other than
a primary transit operator, receiving assistance
under this section that has fewer than 20 revenue
service vehicles and operates in an urbanized area
with a population of at least 200,000.’’; and
(2) by adding at the end the following new sub-
section:
‘‘(o) CONTINUATION
OF OPERATING ASSISTANCE
FOR SMALL TRANSIT OPERATORS IN LARGE URBANIZED
AREAS.—
‘‘(1) IN GENERAL.—The Secretary may allow a
small transit operator in an urbanized area with a
population of at least 200,000 to use funds made
available under this section to fund the operating
costs of equipment, facilities, and associated capital
maintenance items for use in mass transportation if
the Secretary finds that providing no assistance to
the small transit operator for such operating costs
has caused or will cause—
‘‘(A) the small transit operator to suffer
undue hardship; or
‘‘(B) significant fare increases or cuts in
transit service.
‘‘(2) LIMITATION.—The amount of funds made
available to a small transit operator in accordance
with this subsection in a fiscal year may not exceed
the average annual amount of funds made available
under this section to, and used by, the small transit
operator in fiscal years 1992 through 1997 to fund
the operating costs of equipment, facilities, and asso-
ciated capital maintenance items for use in mass
transportation.’’.
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