Authority: Title 33.1, Chapter 1, Code of Virginia.

A. The Department of Transportation shall review the formulas used in determining the financial assistance to localities distributions and make recommendations to the Commonwealth Transportation Board as to the appropriate allocations based on that review. The Commonwealth Transportation Board may adjust locality maintenance allocations accordingly.

B. Out of the amounts for Financial Assistance for Planning, Access Road, and Special Projects, $7,000,000 the first year and $7,000,000 the second year from the Commonwealth Transportation Fund shall be allocated for purposes set forth in §§ 33.1-221, 33.1-221.1:1, and 33.1-223, Code of Virginia. Of this amount, the allocation for Recreational Access Roads shall be $1,500,000 the first year and $1,500,000 the second year.

C. Out of the amounts for Financial Assistance for Planning, Access Roads, and Special Projects, $50,000 the first year and $50,000 the second year from the Commonwealth Transportation Fund shall be provided to support the transportation planning activities of the Northern Virginia Transportation Authority. The Authority shall comply with all applicable federal and state regulations to receive the funds.

D.1.  To encourage local governments to assume responsibility for the management and administration of the design, acquisition, and construction of all non-interstate transportation facilities within their boundaries, $40,000,000 the first year from the general fund and $40,000,000 the second year from nongeneral funds shall be transferred to this Item from Item 493.10 of this act.  Of the total amount, up to five percent of the funds may be provided to local governments for the start-up and staffing costs related to this function.

2. As a first priority for receiving such funding, a locality must identify a project or projects scheduled for advertisement from July 1, 2005, to June 30, 2006, that are funded from federal funds allocated through the secondary and urban allocation formula.  The replaced federal funds shall be used to advance another qualifying transportation project in the same locality.

3.  As a second priority, a locality may identify a project or projects which it shall manage and administer to receive up to $750,000 in matching funds to assist in the maintenance, operation, or construction of the primary, urban, or secondary road system infrastructure.  Notwithstanding any other provision of law, such funds may be used to take certain streets into the secondary system as outlined in § 33.1-72.1, Code of Virginia.  

4.  For any city or town that assumes responsibility for its construction program as outlined in § 33.1-23.3 D, Code of Virginia, the two percent matching highway fund requirement shall be waived for all new projects as of July 1, 2005.

5. The Department of Transportation shall establish a Local Partnership Team to assist and provide technical assistance and training to localities.

6. For purposes of ensuring the effective expenditure of these funds and any deposit to the Local Partnership Fund, the requirements of § 33.1-75.2 shall apply.

7.  The Department of Transportation, working with representatives of local governments and local, regional, and state economic development agencies, will revise the definition of businesses and industry that qualify for access road funding.  Such work shall be complete so that its findings and recommendations can be considered by the Governor and General Assembly prior to the 2006 General Assembly session.