SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Indian Tribal Surface Transportation 
Act of 2001''.

SEC. 2. AMENDMENTS RELATING TO INDIAN TRIBES.

    (a) Obligation Limitation.--Section 1102(c)(1) of the 
Transportation Equity Act for the 21st Century (23 U.S.C. 104 note) is 
amended--
            (1) by striking ``Code, and'' and inserting ``Code,''; and
            (2) by inserting before the semicolon the following: ``, 
        and for each of fiscal years 2002 and 2003, amounts authorized 
        for Indian reservation roads under section 204 of title 23, 
        United States Code''.
    (b) Pilot Program.--Section 202(d)(3) of title 23, United States 
Code, is amended by adding at the end the following:
                    ``(C) Federal lands highway program demonstration 
                project.--
                            ``(i) In general.--The Secretary shall 
                        establish a demonstration project under which 
                        all funds made available under this title for 
                        Indian reservation roads and for highway 
                        bridges located on Indian reservation roads as 
                        provided for in subparagraph (A), shall be made 
                        available, upon request of the Indian tribal 
                        government involved, to the Indian tribal 
                        government for contracts and agreements for the 
                        planning, research, engineering, and 
                        construction described in such subparagraph in 
                        accordance with the Indian Self-Determination 
                        and Education Assistance Act.
                            ``(ii) Exclusion of agency participation.--
                        In accordance with subparagraph (B), all funds 
                        for Indian reservation roads and for highway 
                        bridges located on Indian reservation roads to 
                        which clause (i) applies, shall be paid without 
                        regard to the organizational level at which the 
                        Federal lands highway program has previously 
                        carried out the programs, functions, services, 
                        or activities involved.
                            ``(iii) Selection of participating 
                        tribes.--
                                    ``(I) Participants.--
                                            ``(aa) In general.--The 
                                        Secretary shall select 12 
                                        geographically diverse Indian 
                                        tribes in each fiscal year from 
                                        the applicant pool described in 
                                        subclause (II) to participate 
                                        in the demonstration project 
                                        carried out under clause (i).
                                            ``(bb) Consortia.--Two or 
                                        more Indian tribes that are 
                                        otherwise eligible to 
                                        participate in a program or 
                                        activity to which this title 
                                        applies may form a consortium 
                                        to be considered as a single 
                                        tribe for purposes of becoming 
                                        part of the applicant pool 
                                        under subclause (II).
                                            ``(cc) Funding.--An Indian 
                                        tribe participating in the 
                                        pilot program under this 
                                        subparagraph shall receive 
                                        funding in an amount equivalent 
                                        to the funding that such tribe 
                                        would otherwise receive 
                                        pursuant to the funding formula 
                                        established under section 
                                        1115(b) of the Transportation 
                                        Equity Act for the 21st 
                                        Century, plus an additional 
                                        percentage of such amount, such 
                                        additional percentage to be 
                                        equivalent to the percentage of 
                                        funds withheld during the 
                                        fiscal year involved for the 
                                        road program management costs 
                                        of the Bureau of Indian Affairs 
                                        under section 202(f)(1) of 
                                        title 23, United States Code.
                                    ``(II) Applicant pool.--The 
                                applicant pool described in this 
                                subclause shall consist of each Indian 
                                tribe (or consortium) that--
                                            ``(aa) has successfully 
                                        completed the planning phase 
                                        described in subclause (III);
                                            ``(bb) has requested 
                                        participation in the 
                                        demonstration project under 
                                        this subparagraph through the 
                                        adoption of a resolution or 
                                        other official action by the 
                                        tribal governing body; and
                                            ``(cc) has, during the 3-
                                        fiscal year period immediately 
                                        preceding the fiscal year for 
                                        which participation under this 
                                        subparagraph is being 
                                        requested, demonstrated 
                                        financial stability and 
                                        financial management capability 
                                        through a showing of no 
                                        material audit exceptions by 
                                        the Indian tribe during such 
                                        period.
                                    ``(III) Criteria for determining 
                                financial stability and financial 
                                management capacity.--For purposes of 
                                this subparagraph, evidence that, 
                                during the 3-year period referred to in 
                                subclause (II)(cc), an Indian tribe had 
                                no uncorrected significant and material 
                                audit exceptions in the required annual 
                                audit of the Indian tribe's self-
                                determination contracts or self-
                                governance funding agreements with any 
                                Federal agency shall be conclusive 
evidence of the required stability and capability.
                                    ``(IV) Planning phase.--An Indian 
                                tribe (or consortium) requesting 
                                participation in the project under this 
                                subparagraph shall complete a planning 
                                phase that shall include legal and 
                                budgetary research and internal tribal 
                                government and organization 
                                preparation. The tribe (or consortium) 
                                shall be eligible to receive a grant 
                                under this subclause to plan and 
                                negotiate participation in such 
                                project.''.
    (c) Administration.--Section 202 of title 23, United States Code, 
is amended by adding at the end thereof the following:
    ``(f) Indian Reservation Roads, Administration.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, not to exceed 6 percent of the contract authority amounts 
        made available from the Highway Trust Fund to the Bureau of 
        Indian Affairs shall be used to pay the administrative expenses 
        of the Bureau for the Indian reservation roads program and the 
        administrative expenses related to individual projects that are 
        associated with such program. Such administrative funds shall 
        be made available to an Indian tribal government, upon the 
        request of the government, to be used for the associated 
        administrative functions assumed by the Indian tribe under 
        contracts and agreements entered into pursuant to the Indian 
        Self-Determination and Education Assistance Act.
            ``(2) Health and safety assurances.--Notwithstanding any 
        other provision of law, an Indian tribe or tribal organization 
        may commence road and bridge construction under the 
        Transportation Equity Act for the 21st Century (25 U.S.C. 104) 
        that is funded through a contract or agreement under the Indian 
        Self-Determination and Education Assistance Act so long as the 
        Indian tribe or tribal organization has--
                    ``(A) provided assurances in the contract or 
                agreement that the construction will meet or exceed 
                proper health and safety standards;
                    ``(B) obtained the advance review of the plans and 
                specifications from a licensed professional who has 
                certified that the plans and specifications meet or 
                exceed the proper health and safety standards; and
                    ``(C) provided a copy of the certification under 
                subparagraph (B) to the Bureau of Indian Affairs.
    ``(g) Indian Reservation Roads Program, Safety Incentive Grants.--
            ``(1) Seat belt safety incentive grant eligibility.--
        Notwithstanding any other provision of law, an Indian tribe 
        that is eligible to participate in the Indian reservation roads 
        program under subsection (d) shall be deemed to be a State for 
        purposes of being eligible for safety incentive allocations 
        under section 157 to assist Indian communities in developing 
        innovative programs to promote increased seat belt use rates.
            ``(2) Intoxicated driver safety incentive grant 
        eligibility.--Notwithstanding any other provision of law, an 
        Indian tribe that is eligible to participate in the Indian 
        reservation roads program under subsection (d) shall be deemed 
        to be a State for purposes of being eligible for safety 
        incentive grant funding under section 163 to assist Indian 
        communities in the prevention of the operation of motor 
        vehicles by intoxicated persons.
            ``(3) Grant funding procedures and eligibility criteria.--
        The Secretary, in consultation with Indian tribal governments, 
        may develop funding procedures and eligibility criteria 
        applicable to Indian tribes with respect to allocations or 
        grants described in paragraphs (1) and (2). The Secretary shall 
        ensure that any such procedures or criteria are published 
        annually in the Federal Register.''.
Indian Tribal Surface Transportation Act of 2001 - Amends the Transportation Equity Act for the 21st Century (TEA-21) to prohibit the Secretary of Transportation from distributing the obligation authority for Federal-aid highway and highway safety construction programs for FY 2002 and 2003 with respect to amounts authorized for Indian reservation roads under the Federal Lands Highways Program.Directs the Secretary of Transportation to establish a demonstration project under which all funds made available for Indian reservation roads and highway bridges located on such roads shall be made available to an Indian tribal government, upon its request, for contracts and agreements for planning, research, engineering, and construction of any highway, road, bridge, parkway, or transit facility that provides access to or is located within the reservation or community of the Indian tribe.Deems an Indian tribe eligible to participate in the Indian reservation roads program to be a State eligible for: (1) safety incentive allocations to assist Indian communities in developing innovative programs to promote increased seat belt use rates; and (2) safety incentive grant funding to assist such communities in the prevention of the operation of motor vehicles by intoxicated persons.
A bill to amend the Transportation Equity Act for the 21st Century to make certain amendments with respect to Indian tribes.