196 1 (b) Section 3 (c) (2) of such Act is amended by insert2 ing" (including grants for payment of operating expenses)" 3 after "project grants". 4 (c) Section 3 of such Act is further amended by adding 5 at the end thereof the following new subsection: 6 "(f) No financial assistance shall be provided to any 7 State or local public body or agency thereof for payment of 8 operating expenses incurred in connection with the provision 9 of mass transportation service unless the applicant State or 10 public body or agency has submitted to the Secretary a com11 prehensive mass transportation service improvement plan 12 which is approved by him and which sets forth a program 13 meeting criteria established by the Secretary for capital or 14 service improvements to be undertaken for the purpose of 15 providing more efficient, economical, and convenient mass 16 transportation service in the urban area or areas involved, 17 and for placing mass transportation operations in such area or 18 areas on a sound financial basis." 19 (d) (1) Section 4 of such Act is amended by redesignat20 ing subsection (d) as subsection (e), and by inserting after 21 subsection (c) the following new subsection: 22 "(d) To finance grants and loans to assist States and 23 local public bodies and agencies thereof in the payment of 24 operating expenses under the third sentence of section 3 (a), 25 there is authorized to be appropriated not to exceed $400, 197 1 000,000 for the fiscal year ending June 30, 1973, and 2 $400,000,000 for the fiscal year ending June 30, 1974. 3 Any amount so appropriated shall remain available until 4 expended; and any amount authorized but not appropriated 5 for either such fiscal year may be appropriated for any 6 succeeding fiscal year." 7 (2) The first sentence of section 4 (c) of such Act is 8 amended by inserting after "under sections 3, 7 (b), and 9 9 of this Act" the following: "(other than grants and loans 10 made under the third sentence of section 3 (a))". 11 (e) Section 12 of such Act is amended by adding at 12 the end thereof the following new subsection: 13 "(f) The provision of assistance for the payment of 14 operating expenses under the third sentence of section 3 (a) 15 shall not be construed as bringing within the application of 16 chapter 15 of title 5, United States Code, any nonsupervisory 17 employee of an urban mass transportation system (or of 18 any other agency or entity performing related functions) to whom such chapter is otherwise inapplicable." 19 20 21 INCREASE IN GRANT RATIO SEC. 702. (a) The fifth sentence of section 4 (a) of the 22 Urban Mass Transportation Act of 1964 is amended to 23 read as follows: "The Federal grant for any such project 24 to be assisted under section 3 (including a project for 198 1 payment of operating expenses) shall be in an amount 2 equal to 80 per centum of the net project cost." 3 (b) The amendment made by subsection (a) shall 4 apply only with respect to projects which were not subject 5 to administrative reservation on or before March 1, 1972. 6 INCREASE IN BASIC ASSISTANCE AUTHORITY 7 SEC. 703. Section 4 (c) of the Urban Mass Transpor 8 tation Act of 1964 is amended 9 10 (1) by striking out "$3,100,000,000" in the first sentence and inserting in lieu thereof "$6,000,000,000"; 11 121 13 14 15 16 17 18 19 20 21 22 23 and (2) by striking out all that follows "which amount may be increased" in the third sentence and inserting in lieu thereof "to not to exceed an aggregate of $310,000,000 prior to July 1, 1972, not to exceed an aggregate of $1,000,000,000 prior to July 1, 1973, not to exceed an aggregate of $2,000,000,000 prior to July 1, 1974, not to exceed an aggregate of $3,000,000,000 prior to July 1, 1975, not to exceed an aggregate of $4,500,000,000 prior to July 1, 1976, not to exceed an aggregate of $5,500,000,000 prior to July 1, 1977, and not to exceed an aggregate of $6,000,000,000 thereafter." 79-555 O 72 - 14 199 1 COORDINATION OF URBAN MASS TRANSIT PROGRAMS WITH 2 3 MODEL CITIES PROGRAMS SEC. 704. Section 103 (a) of the Demonstration Cities 4 and Metropolitan Development Act of 1966 is amended (1) by redesignating paragraphs (4) and (5) as paragraphs (5) and (6), respectively, and (2) by inserting after paragraph (3) the follow ing new paragraph: "(4) any program which includes a transportation component as a project or activity to be undertaken meets the requirements of section 3 (e) of the Urban Mass Transportation Act of 1964;". GRANTS FOR TECHNICAL STUDIES SEC. 705. Section 9 of the Urban Mass Transportation 15 Act of 1964 is amended (1) by striking out "to make grants" in the first sentence and inserting in lieu thereof "to contract for and make grants"; (2) by striking out "and designing" in the first sentence and inserting in lieu thereof "designing, and evaluation"; (3) by striking out "and (3)" in the second sentence and inserting in lieu thereof "(3) evaluation of previously funded projects; and (4)”; 1 2 3 200 (4) by inserting "or contract" after "A grant" in the third sentence; and (5) by striking out all that follows "Secretary" in the third sentence and inserting in lieu thereof a 4 5 period. 6 ASSISTANCE TO PRIVATE NONPROFIT ORGANIZATIONS FOR 7 USE IN PROVIDING TRANSIT SERVICE FOR THE ELDERLY 8 AND HANDICAPPED 9 SEC. 706. Section 16 (b) of the Urban Mass Transpor 10 tation Act of 1964 is amended to read as follows: 11 "(b) In addition to the grants and loans otherwise 12 provided for under this Act, the Secretary is authorized to 13 make grants and loans 14 15 16 17 18 19 20 21 22 23 24 25 "(1) to States and local public bodies and agencies thereof for the specific purpose of assisting them in providing mass transportation services which are planned, designed, and carried out so as to meet the special needs of elderly and handicapped persons, with such grants and loans being subject to all of the terms, conditions, requirements, and provisions applicable to grants and loans made under section 3 (a) and being considered for the purposes of all other laws to have been made under such section; and "(2) to private nonprofit corporations and associations for the specific purpose of assisting them in provid |