A bill to permit a State to elect to receive the State's contributions to the Highway Trust Fund in lieu of its Federal-aid Highway program apportionment for the next fiscal year, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Highway Fairness and Reform Act of 
2009''.

SEC. 2. ELECTION TO RECEIVE STATE CONTRIBUTION TO HIGHWAY TRUST FUND IN 
              LIEU OF PARTICIPATING IN FEDERAL-AID HIGHWAY PROGRAM.

    (a) In General.--Chapter 1 of title 23, United States Code, is 
amended by inserting after section 149 the following:
``150. Direct Federal-aid highway program
    ``(a) In General.--Beginning with fiscal year 2011, the Secretary 
shall carry out a direct Federal-aid highway program in accordance with 
the requirements of this section. Under the program, the Governor or 
chief executive officer of a State may elect, not less than 90 days 
before the beginning of the fiscal year, to have the State waive its 
right to receive amounts apportioned or allocated to it under the 
Federal-aid highway program for the fiscal year to which the election 
relates; and to receive instead the amount determined under subsection 
(d) for that fiscal year. The election shall be made in such form and 
manner as the Secretary may require and shall be irrevocable.
    ``(b) State Responsibility.--
            ``(1) In general.--The Secretary shall accept an election 
        under subsection (a) if the Secretary determines that the 
        State--
                    ``(A) has an interstate maintenance program and 
                agrees to maintain the interstate in accordance with 
                that program;
                    ``(B) submits a plan to the Secretary describing--
                            ``(i) the purposes, projects, and uses to 
                        which amounts received under the program will 
                        be put; and
                            ``(ii) which programmatic requirements of 
                        this title the State elects to continue;
                    ``(C) agrees to obligate or expend amounts received 
                under the program exclusively for projects that would 
                be eligible for funding under section 133(b) of this 
                title if the State were not participating in the 
                program; and
                    ``(D) agrees to report annually to the Secretary on 
                the use of amounts received under the program and to 
                make the report available to the public in an easily 
                accessible format.
            ``(2) Safety requirements.--The Secretary may determine 
        that requirements important for transportation safety continue 
        to apply to a State that makes an election under subsection 
        (a).
            ``(3) Surface transportation program.--A State that makes 
        an election under subsection (a) shall continue to suballocate 
        funds to urbanized areas and other areas using the formulae and 
        rules under section 133(d)(3) of this title.
            ``(4) No limitation on use of funds.--Except as provided in 
        paragraphs (1), (2), and (3), the expenditure or obligation of 
        funds received by the State under the program are not subject 
        to regulation under this title or title 49.
    ``(c) Effect on Pre-existing Obligations.--The making of an 
election under subsection (a) shall not affect any obligation, 
responsibility, or commitment of the State under this title for any 
fiscal year with respect to--
            ``(1) a project or program funded under this title (other 
        than under this section); or
            ``(2) any project or program funded under this title in any 
        fiscal year for which an election under subsection (a) is not 
        in effect.
    ``(d) Transfers.--
            ``(1) In general.--The amount to be transferred to a State 
        under the program for a fiscal year shall be the portion of the 
        taxes appropriated to the Highway Trust Fund under section 9503 
        of the Internal Revenue Code of 1986, other than for the Mass 
        Transit Account, for a fiscal year for which an election is in 
        effect under subsection (a) that is attributable to highway 
        users in that State during that fiscal year, reduced by a pro 
        rata share withheld by the Secretary to fund contract authority 
        for programs of the National Highway Traffic Safety 
        Administration and the Federal Motor Carrier Safety 
        Administration.
            ``(2) General fund amounts.--For purposes of paragraph (1), 
        any amounts deposited in or credited to the Highway Trust Fund 
        from the general fund of the Treasury shall be treated as if 
        they were taxes appropriated to the Fund.
            ``(3) Transfers.--
                    ``(A) In general.--Transfers under the program--
                            ``(i) shall be made at the same time as 
                        deposits to the Highway Trust Fund are made by 
                        the Secretary of the Treasury;
                            ``(ii) shall be made on the basis of 
                        estimates by the Secretary, in consultation 
                        with the Secretary of the Treasury, and proper 
                        adjustments shall be made in amounts 
                        subsequently transferred to the extent prior 
                        estimates were in excess of, or less than, the 
                        amounts required to be transferred.
                    ``(B) Limitation.--An adjustment under subparagraph 
                (A)(ii) to any transfer may not exceed 5 percent of the 
                transferred amount to which the adjustment relates. If 
                the adjustment required under subparagraph (A)(ii) 
                exceeds that percentage, the excess shall be taken into 
                account in making subsequent adjustments under 
                subparagraph (A)(ii).
    ``(e) Application with Other Authority.--The Secretary shall 
rescind or cancel any contract authority under this chapter (and any 
obligation limitation) for a State for a fiscal year for which an 
election by that State is in effect under subsection (a).''.
    (b) Clerical Amendment.--The chapter analysis for chapter 1 of 
title 23, United States Code, is amended by inserting after the item 
relating to section 149 the following:

``150. Direct Federal-aid highway program.''.

Summary: Highway Fairness and Reform Act of 2009 - Directs the Secretary of Transportation, beginning with FY2011, to carry out a direct federal-aid highway program to permit a state governor or chief executive officer, at least 90 days before the beginning of a fiscal year, to elect to: (1) waive the state's right to receive apportioned or allocated funds under the federal-aid highway program. And (2) receive instead a prorated amount of the taxes appropriated to the Highway Trust Fund which are attributable to highway users in the state. Requires a pro rata reduction of such tax-equivalent amount in order to fund contract authority for programs of the National Highway Traffic Safety Administration (NHTSA) and the Federal Motor Carrier Safety Administration (FMCSA). Requires the Secretary to accept a state's election if: (1) the state has an interstate maintenance program. (2) it submits a plan describing the purposes, projects, and uses to which such amounts will be put and the federal-aid highway programmatic requirements the state elects to continue. (3) the state agrees to obligate program amounts exclusively for projects that would be eligible for surface transportation program funding. And (4) it continues to suballocate surface transportation program funds to urbanized and other areas using certain formulae and rules.