(a) Any state financial assistance for mass transportation projects undertaken by local governments may be used to pay up to one hundred percent (100%) of the project cost.
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Terms Used In Tennessee Code 13-10-107

  • Commissioner: means the commissioner of transportation. See Tennessee Code 13-10-101
  • Contract: A legal written agreement that becomes binding when signed.
  • Local government: means an incorporated municipality, county, agency or instrumentality of an incorporated municipality or county, two (2) or more of the foregoing acting jointly, or an authority established by law to provide mass transportation services, or a nonprofit corporation authorized to provide mass transportation services. See Tennessee Code 13-10-101
  • Mass transportation project: means the planning, acquisition, construction, reconstruction, improvement, maintenance or operation of any mass transportation system or capital equipment used in connection therewith. See Tennessee Code 13-10-101
  • Project cost: means actual or estimated cost of a mass transportation project, including relocation assistance payments, or the estimated reasonable cost thereof as approved by the commissioner, whichever is lower, less any federal assistance received or to be received for the project. See Tennessee Code 13-10-101
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
(b) No mass transportation project shall be eligible for assistance under this chapter until the project has been approved by the commissioner as consistent with the statewide comprehensive plan for transportation approved by the commissioner and reported to the general assembly.
(c) State moneys appropriated for any mass transportation project undertaken by local government shall be allotted pursuant to a contract entered into by the commissioner, in the name of the state, and the local government undertaking such project. The contract may include any provision agreed upon by the parties thereto, and shall include, in substance, the following provisions:

(1) An estimate of the reasonable cost of the project as determined by the commissioner;
(2) An agreement by the commissioner to pay to the local government, following completion of the project, or during the undertaking thereof in the form of progress payments, such financial assistance as is provided for herein;
(3) An agreement by the local government to:

(A) Proceed expeditiously with and complete the project in accordance with plans approved by the commissioner;
(B) Commence and continue operation of the project on completion of the project, and not to discontinue operation or dispose of all or part of the project without the approval of the commissioner;
(C) Apply for, and make reasonable efforts to secure, federal assistance for the project, subject to any conditions that the commissioner may require in order to maximize the amounts of such assistance received or to be received for all projects in the state; and
(D) Provide for the payment of the local government’s share of the cost of the project; and
(4) A provision that, if federal assistance which was not included in the calculation of the state payment pursuant to subdivision (c)(2) becomes available to the local government, the amount of the state payment shall be recalculated with the inclusion of such additional federal assistance, and the local government shall either:

(A) Pay to the state the amount by which the state payment actually made exceeds the state payment determined by the recalculation; or
(B) If such additional federal assistance has not been received by the local government, authorize the state to receive such amount from the federal government and to retain an appropriate amount thereof.
(d) The commissioner shall prepare and file with the general assembly an annual report on the scope and results of construction undertaken pursuant to this chapter.
(e) For each contract concerning a mass transportation project, the commissioner shall keep adequate records of the amount of the payment by the state pursuant to subdivision (c)(2), and of the amount of federal assistance received by the local government. These records shall be retained by the commissioner and shall establish the basis for application for federal reimbursement of payments made by the state. The commissioner may make such applications.
(f) The commissioner may prescribe rules and regulations to carry out this section.
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