                                 CODE OF VIRGINIA

USE OF THE COMMONWEALTH MASS TRANSIT FUND (§ 33.2-1526.1)

A. All funds deposited pursuant to &#xA7; 33.2-1524.1 into the Commonwealth Mass
Transit Fund (the Fund), established pursuant to &#xA7; 33.2-1526, shall be
allocated as set forth in this section.

B. From funds available pursuant to subsection D, up to $50 million shall be
allocated to the Washington Metropolitan Area Transit Authority as matching
funds to federal and other funds provided by the Federal Transit Administration,
the District of Columbia, and the State of Maryland. However, such funds shall
only be provided if the District of Columbia and the State of Maryland each
provide an amount equal to one-third of the funding provided by the Federal
Transit Administration to the Washington Metropolitan Area Transit Authority.
The funds provided by the Commonwealth shall not exceed the funds provided by
the District of Columbia or the State of Maryland.

C. The Board may establish policies for the implementation of this section,
including the determination of the state share of operating, capital, and
administrative costs related to mass transit. For purposes of this section,
capital costs may include debt service payments on local or agency transit
bonds. Funds may be paid to any local governing body, transportation district
commission, or public service corporation for the purposes as set forth in this
section. No funds from the Fund shall be allocated without a local match from
the recipient.

D. Each year the Director of the Department of Rail and Public Transportation
shall make recommendations to the Board for the allocation of funds from the
Fund. Such recommendations, and the final allocations approved by the Board,
shall adhere to the following, except as provided in subsection E:

   1. Twenty-four and one-half percent of the funds shall be allocated to support
   operating costs of transit providers and shall be distributed by the Board on
   the basis of service delivery factors, based on effectiveness and efficiency
   as established by the Board. Such measures and their relative weight shall be
   evaluated every three years and shall be finalized 6 months prior to the
   fiscal year of implementation. The Washington Metropolitan Area Transit
   Authority (WMATA) and the commuter rail system jointly operated by the
   Northern Virginia Transportation Commission (NVTC) and the Potomac and
   Rappahannock Transportation Commission (PRTC), established pursuant to Chapter
   19 (&#xA7; 33.2-1900 et seq.) shall not be eligible for an allocation of funds
   pursuant to this subdivision.

   2. Seventeen percent of the funds shall be allocated for capital purposes and
   distributed utilizing the transit capital prioritization process established
   by the Board pursuant to &#xA7; 33.2-214.4. WMATA and the commuter rail system
   jointly operated by NVTC and PRTC, established pursuant to Chapter 19 (&#xA7;
   33.2-1900 et seq.) shall not be eligible for an allocation of funds pursuant
   to this subdivision.

   3. Three and one-half percent of funds may be allocated to NVTC for
   distribution to the commuter rail system jointly operated by NVTC and PRTC,
   established pursuant to Chapter 19 (&#xA7; 33.2-1900 et seq.), for operating
   and capital purposes. The amount of funds distributed pursuant to this
   subdivision and the selection of systems receiving funds pursuant to this
   subdivision shall be based on service delivery factors including effectiveness
   and efficiency as established by the Board. Such measures and their relative
   weight shall be evaluated every three years and shall be finalized six months
   prior to the fiscal year of implementation. Any funds remaining after such
   distribution shall be redistributed to subdivision 2.

   4. Forty-six and one-half percent of the funds shall be allocated to the NVTC
   for distribution to WMATA for capital purposes and operating assistance, as
   determined by the Commission. All allocations pursuant to this subdivision
   shall not exceed 50 percent of the total operating and capital assistance
   required to be provided by NVTC or other Virginia entities in the approved
   WMATA budget. If the default allocation pursuant to this subdivision exceeds
   an amount equal to 50 percent of the total operating and capital assistance
   required to be provided by NVTC or other Virginia entities in the approved
   WMATA budget, the remaining funds shall be redistributed to subdivision 2. No
   contributions made to WMATA pursuant to &#xA7; 33.2-3401 by the Commonwealth
   or NVTC shall be relevant for the purposes of administering this subdivision.

   5. Six percent of the funds shall be allocated by the Board for the Transit
   Ridership Incentive Program established pursuant to &#xA7; 33.2-1526.3.

   6. Two and one-half percent of the funds shall be allocated for special
   programs, including ridesharing, transportation demand management programs,
   experimental transit, public transportation promotion, operation studies, and
   technical assistance, and may be allocated to any local governing body,
   planning district commission, transportation district commission, or public
   transit corporation. Remaining funds may also be used directly by the
   Department of Rail and Public Transportation to (i) finance a program
   administered by the Department of Rail and Public Transportation designed to
   promote the use of public transportation and ridesharing throughout the
   Commonwealth or (ii) finance up to 80 percent of the cost of development and
   implementation of projects with a purpose of enhancing the provision and use
   of public transportation services.

E. The Board may consider the transfer of funds from subdivisions D 2 and 6 to
subdivision D 1 in times of statewide economic distress or statewide special
need.

F. The Department of Rail and Public Transportation may reserve a balance of up
to five percent of the Fund revenues in order to ensure stability in providing
operating and capital funding to transit entities from year to year, provided
that such balance shall not exceed five percent of revenues in a given biennium.

G. The Board may allocate up to 3.5 percent of the funds set aside for the Fund
to support costs of project development, project administration, and project
compliance incurred by the Department of Rail and Public Transportation in
implementing rail, public transportation, and congestion management grants and
programs.

H. Funds allocated to the Northern Virginia Transportation Commission (NVTC) for
WMATA pursuant to subdivision D 4 shall be credited to the Counties of
Arlington, Fairfax, and Loudoun and the Cities of Alexandria, Fairfax, and Falls
Church. Funds allocated pursuant to this subsection shall be credited as
follows:

   1. Local obligations for debt service for WMATA rail transit bonds apportioned
   to each locality using WMATA&#8217;s capital formula shall be paid first by
   NVTC, which shall use 95 percent state aid for these payments.

   2. The remaining funds shall be apportioned to reflect WMATA&#8217;s
   allocation formulas by using the related WMATA-allocated subsidies and
   relative shares of local transit subsidies. Capital costs shall include 20
   percent of annual local bus capital expenses. Local transit subsidies and
   local capital costs of Loudoun County shall not be included. Hold harmless
   protections and obligations for NVTC&#8217;s jurisdictions agreed to by NVTC
   on November 5, 1998, shall remain in effect.

I. Appropriations from the Fund are intended to provide a stable and reliable
source of revenue, as defined by P.L. 96-184.

J. Notwithstanding any other provision of law, funds allocated to WMATA may be
disbursed by the Department of Rail and Public Transportation directly to WMATA
or to any other transportation entity that has an agreement to provide funding
to WMATA.

K. In any year that the total Virginia operating assistance in the approved
WMATA budget increases by more than three percent from the total operating
assistance in the prior year&#8217;s approved WMATA budget, the Board shall
withhold an amount equal to 35 percent of the funds available under subdivision
D 4. The following items shall not be included in the calculation of any WMATA
budget increase: (i) any service, equipment, or facility that is required by any
applicable law, rule, or regulation; (ii) any capital project approved by the
WMATA Board before or after the effective date of this provision; (iii) any
payments or obligations of any kind arising from or related to legal disputes or
proceedings between or among WMATA and any other person or entity; and (iv) any
service increases approved by the WMATA Board.

L. The Board shall withhold 20 percent of the funds available pursuant to
subdivision D 4 if (i) any alternate directors participate or take action at an
official WMATA Board meeting or committee meeting as Board directors for a WMATA
compact member when both directors appointed by that same WMATA compact member
are present at the WMATA Board meeting or committee meeting or (ii) the WMATA
Board of Directors has not adopted bylaws that would prohibit such participation
by alternate directors.

M. The Board shall withhold 20 percent of the funds available pursuant to
subdivision D 4 unless (i) WMATA has adopted a detailed capital improvement
program covering the current fiscal year and, at a minimum, the next five fiscal
years, and at least one public hearing on such capital improvement program has
been held in a locality embraced by the Northern Virginia Transportation
Commission (NVTC), and (ii) WMATA has adopted or updated a strategic plan within
the preceding 36 months, and at least one public hearing on such plan or updated
plan has been held in a locality embraced by NVTC.
			The strategic plan shall require (a) an assessment of state of good repair
needs; (b) a review of the performance of fixed-route bus service, including
schedules, route design, connectivity, and vehicle sizes; (c) an evaluation of
opportunities to improve operating efficiency of the transit network, including
reliability of trips and travel speed; (d) an examination and identification of
opportunities to share services where multiple transit providers&#8217; services
overlap; and (e) an examination of opportunities to improve service in
underserved areas.

N. The Board shall withhold 20 percent of the funds available pursuant to
subdivision D 4 unless WMATA prepares and submits a proposed detailed annual
operating budget and any proposed capital expenditures and projects for the
following fiscal year to the Board by April 1 of each year. The budget shall
include information on expenditures, indebtedness, pensions and other
liabilities, and other information as prescribed by the Board. Additionally such
funds shall be withheld if the Commonwealth&#8217;s and Northern Virginia
Transportation Commission&#8217;s representatives to the WMATA Board of
Directors and the WMATA General Manager fail to annually address the
Commonwealth Transportation Board regarding the WMATA budget, system
performance, and utilization of the Commonwealth&#8217;s investment in the WMATA
system.

O. The Board shall withhold 20 percent of the funds available pursuant to
subdivision D 3 unless the commuter rail system jointly operated by Northern
Virginia Transportation Commission and the Potomac and Rappahannock
Transportation Commission, established pursuant to Chapter 19 (&#xA7; 33.2-1900
et seq.), submits a detailed annual operating budget and any proposed capital
expenditures and projects for the following fiscal year to the Board by February
1 of each year. The operating plan and budget shall include information on
expenditures, indebtedness, and other information as prescribed by the Board.

HISTORY: 2018, cc. 854, 856; 2020, cc. 1133, 1230, 1275; 2023, cc. 362, 363.