[Code of Federal Regulations]
[Title 49, Volume 7]
[Revised as of October 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 49CFR659.7]

[Page 74]
 
                        TITLE 49--TRANSPORTATION
 
CHAPTER VI--FEDERAL TRANSIT ADMINISTRATION, DEPARTMENT OF TRANSPORTATION
 
PART 659_RAIL FIXED GUIDEWAY SYSTEMS; STATE SAFETY OVERSIGHT--Table of Contents
 
                       Subpart B_Role of the State
 
Sec.  659.7  Withholding of funds for noncompliance.


    (a) The Administrator of the FTA may withhold up to five percent of 
the amount required to be distributed to any state or affected urbanized 
area in such state under FTA's formula program for urbanized areas, if:
    (1) The state in the previous fiscal year has not met the 
requirements of this part; and
    (2) The Administrator determines that the state is not making 
adequate efforts to comply with this part.
    (b) The Administrator may agree to restore withheld formula funds, 
if compliance is achieved within two years (See 49 U.S.C. 5330).