Pub. Util. Code, § 99314.4

(a) An operator in an urbanized area having a population of less than 200,000 persons may elect to participate in the funding exchange program authorized by this subdivision. An operator electing to participate in the funding exchange program shall give notice to the director and shall indicate the amount of funds which it wants allocated for the funding exchange program.

From funds that would otherwise be allocated to an operator under the State Transit Assistance Program, an amount so designated by the participating operator shall be allocated to the department for transfer pursuant to an agreement between the department and the State of Arizona whereby California can receive federal mass transportation funds originally apportioned to the State of Arizona.

The department shall allocate the federal mass transportation funds so received to each participating operator in the same proportion as the operator contributed to the funding exchange program. Funds so received shall be used only for the purposes of the State Transit Assistance Program and are subject to all statutes and rules and regulations applicable to funds allocated pursuant to Sections 99313 and 99314.

The Legislature finds and declares that the exchange of state funds for federal mass transportation funds authorized by this section will result in a net increase in the total amount of funds to be available to the participating operators.

(b) A transportation planning agency or county transportation commission, or the San Diego Metropolitan Transit Development Board may authorize an STA-eligible operator under its jurisdiction to exchange funds allocated to it pursuant to Section 99314 for funds made available pursuant to Section 99231. Any funds allocated pursuant to Section 99314 that are exchanged pursuant to this section shall only be available to other STA-eligible operators and shall be used for STA program purposes authorized by this chapter and are subject to all statutes and rules and regulations applicable to funds allocated pursuant to Section 99314. Exchanges pursuant to this section shall be on a dollar-for-dollar basis.