A State is eligible to receive financial assistance under this chapter only when the State complies with regulations the Secretary of Transportation prescribes under this chapter and the Secretary decides that—

1. (1) the State has an adequate plan for rail transportation in the State and a suitable process for updating, revising, and modifying the plan;
2. (2) the State plan is administered or coordinated by a designated State authority and provides for a fair distribution of resources;

3. (3) the State authority—

   1. (A) is authorized to develop, promote, supervise, and support safe, adequate, and efficient rail transportation;
   2. (B) employs or will employ sufficient qualified and trained personnel;
   3. (C) maintains or will maintain adequate programs of investigation, research, promotion, and development with opportunity for public participation; and
   4. (D) is designated and directed to take all practicable steps (by itself or with other State authorities) to improve rail transportation safety and reduce energy use and pollution related to transportation; and
4. (4) the State has ensured that it maintains or will maintain adequate procedures for financial control, accounting, and performance evaluation for the proper use of assistance provided by the United States Government.

(Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 895.)

In this section, before clause (1), the words “and the Secretary decides that” are substituted for “and the Secretary determines that such State meets or exceeds the requirements of paragraphs (1) through (4) of this subsection” to eliminate unnecessary words. In clauses (2) and (3), the word “authority” is substituted for “agency” for consistency in the revised title. In clause (2), the word “fair” is substituted for “equitable” for consistency in the revised title. In clause (3)(A), the words “is authorized” are substituted for “has authority and administrative jurisdiction” to eliminate unnecessary words. In clause (3)(B), the words “directly or indirectly” are omitted as surplus. In clause (4), the word “adopt” is omitted as being included in “maintain”.