To amend title 23, United States Code, relating to the minimum guarantee program.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Highway Funding Equity Act of 
2003''.

SEC. 2. MINIMUM GUARANTEE.

    Section 105 of title 23, United States Code, is amended--
            (1) by striking subsection (a) and subsections (c) through 
        (f);
            (2) by redesignating subsection (b) as subsection (e);
            (3) by inserting after the section heading the following:
    ``(a) In General.--
            ``(1) Basic minimum guarantee.--
                    ``(A) In general.--For each of fiscal years 2004 
                through 2009, the Secretary shall allocate among the 
                States amounts sufficient to ensure that the percentage 
                for each State of the total apportionments for the 
                fiscal year for the National Highway System under 
                section 103(b), the high priority projects program 
                under section 117, the Interstate maintenance program 
                under section 119, the surface transportation program 
                under section 133, metropolitan planning under section 
                134, the highway bridge replacement and rehabilitation 
                program under section 144, the congestion mitigation 
                and air quality improvement program under section 149, 
                the recreational trails program under section 206, the 
                Appalachian development highway system under subtitle 
                IV of title 40, and the basic minimum guarantee under 
                this paragraph, equals or exceeds the percentage 
                determined for the State under subparagraph (B).
                    ``(B) State percentages.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the percentage for each State 
                        referred to in subparagraph (A) is the 
                        percentage that is equal to 95 percent of the 
                        ratio that--
                                    ``(I) the estimated tax payments 
                                attributable to highway users in the 
                                State paid into the Highway Trust Fund 
                                (other than the Mass Transit Account) 
                                in the most recent fiscal year for 
                                which data are available; bears to
                                    ``(II) the estimated tax payments 
                                attributable to highway users in all 
                                States paid into the Highway Trust Fund 
                                (other than the Mass Transit Account) 
                                in the most recent fiscal year for 
                                which data are available.
                            ``(ii) Exception.--In the case of a State 
                        having a population density of less than 50 
                        individuals per square mile according to the 
                        2000 decennial census, the percentage referred 
                        to in subparagraph (A) shall be the greater 
                        of--
                                    ``(I) the percentage determined 
                                under clause (i); or
                                    ``(II) the percentage specified in 
                                subsection (e).
            ``(2) Discretionary minimum guarantee.--
                    ``(A) Allocation.--
                            ``(i) In general.--Except as provided in 
                        subparagraph (B), for each of fiscal years 2004 
                        through 2009, on or before September 30 of the 
                        fiscal year, the Secretary shall allocate among 
                        the States amounts sufficient to ensure that, 
                        when all allocations from the Highway Trust 
                        Fund (other than allocations from the Mass 
                        Transit Account, for emergency relief, for the 
                        programs specified in paragraph (1)(A), and for 
                        the discretionary minimum guarantee under this 
                        paragraph) for the fiscal year have been 
                        identified, the percentage for each State of 
                        all of those allocations for the fiscal year 
                        equals or exceeds the percentage that is equal 
                        to 95 percent of the tax payments ratio 
                        determined under clause (ii).
                            ``(ii) Tax payments ratio.--The tax 
                        payments ratio referred to in clause (i) for a 
                        State is equal to the ratio that--
                                    ``(I) the estimated tax payments 
                                attributable to highway users in the 
                                State paid into the Highway Trust Fund 
                                (other than the Mass Transit Account) 
                                in the most recent fiscal year for 
                                which data are available; bears to
                                    ``(II) the estimated tax payments 
                                attributable to highway users in all 
                                States paid into the Highway Trust Fund 
                                (other than the Mass Transit Account) 
                                in the most recent fiscal year for 
                                which data are available.
                    ``(B) Exception.--
                            ``(i) In general.--For any fiscal year, no 
                        additional amounts shall be allocated to a 
                        State under subparagraph (A) if the ratio 
                        determined under clause (ii) for the State 
                        exceeds 95 percent of the tax payments ratio 
                        determined under subparagraph (A)(ii).
                            ``(ii) Ratio.--The ratio referred to in 
                        clause (i) for a State is equal to the ratio 
                        that--
                                    ``(I) the sum of--
                                            ``(aa) the apportionments 
                                        to the State for the fiscal 
                                        year for the National Highway 
                                        System under section 103(b), 
                                        the high priority projects 
                                        program under section 117, the 
                                        Interstate maintenance program 
                                        under section 119, the surface 
                                        transportation program under 
                                        section 133, metropolitan 
                                        planning under section 134, the 
                                        highway bridge replacement and 
                                        rehabilitation program under 
                                        section 144, the congestion 
                                        mitigation and air quality 
                                        improvement program under 
                                        section 149, the recreational 
                                        trails program under section 
                                        206, the Appalachian 
                                        development highway system 
                                        under subtitle IV of title 40, 
                                        and the basic minimum guarantee 
                                        under paragraph (1); and
                                            ``(bb) the allocations to 
                                        the State for the fiscal year 
                                        from the Highway Trust Fund 
                                        (other than allocations from 
                                        the Mass Transit Account and 
                                        allocations for emergency 
                                        relief); bears to
                                    ``(II) the sum of the 
                                apportionments and allocations 
                                specified in subclause (I) to all 
                                States for the fiscal year.
                    ``(C) Obligation limitations.--Obligation 
                limitations for Federal-aid highways and highway safety 
                construction programs established by the Act enacting 
                this subparagraph or any subsequent Act shall not apply 
                to apportionments for the discretionary minimum 
                guarantee under this paragraph.
    ``(b) Treatment of Funds.--
            ``(1) Programmatic distribution.--The Secretary shall 
        apportion the amounts made available under this section that 
        exceed $2,800,000,000 so that the amount apportioned to each 
State under this paragraph for each program referred to in subsection 
(a)(1)(A) (other than the high priority projects program, metropolitan 
planning, the recreational trails program, the Appalachian development 
highway system, and the minimum guarantee under subsection (a)) is 
equal to the product obtained by multiplying--
                    ``(A) the amount to be apportioned under this 
                paragraph; and
                    ``(B) the ratio that--
                            ``(i) the amount of funds apportioned to 
                        the State for each program referred to in 
                        subsection (a)(1)(A) (other than the high 
                        priority projects program, metropolitan 
                        planning, the recreational trails program, the 
                        Appalachian development highway system, and the 
                        minimum guarantee under subsection (a)) for a 
                        fiscal year; bears to
                            ``(ii) the total amount of funds 
                        apportioned to the State for that program for 
                        the fiscal year.
            ``(2) Remaining distribution.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                Secretary shall apportion the remainder of funds made 
                available under this section to the States, and 
                administer those funds, in accordance with section 
                104(b)(3).
                    ``(B) Inapplicable requirements.--Paragraphs (1), 
                (2), and (3) of section 133(d) shall not apply to 
                amounts apportioned in accordance with this paragraph.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated out of the Highway Trust Fund (other than the Mass Transit 
Account) such sums as are necessary to carry out this section for each 
of fiscal years 2004 through 2009.
    ``(d) Guarantee of 95 Percent Return.--
            ``(1) In general.--For each of fiscal years 2004 through 
        2009, before making any apportionment under this title, the 
        Secretary shall--
                    ``(A) determine whether the sum of the percentages 
                determined under subsection (a)(1)(B) for the fiscal 
                year exceeds 100 percent; and
                    ``(B) if the sum of the percentages exceeds 100 
                percent, proportionately adjust the percentages 
                specified in the table contained in subsection (e) to 
                ensure that the sum of the percentages determined under 
                subsection (a)(1)(B) for the fiscal year equals 100 
                percent.
            ``(2) Eligibility threshold for adjustment.--The Secretary 
        may make an adjustment under paragraph (1) for a State for a 
        fiscal year only if the percentage for the State in the table 
        contained in subsection (e) is equal to or exceeds 95 percent 
        of the ratio determined for the State under subsection 
        (a)(1)(B)(i) for the fiscal year.
            ``(3) Limitation on adjustments.--Adjustments of the 
        percentages in the table contained in subsection (e) in 
        accordance with this subsection shall not result in a total of 
        the percentages determined under subsection (a)(1)(B) that 
        exceeds 100 percent.''; and
            ``(4) in subsection (e) (as redesignated by paragraph (2)), 
        by striking ``subsection (a)'' and inserting ``subsections 
        (a)(1)(B)(ii)(II) and (d)''.

Summary: Highway Funding Equity Act of 2003 - Revises Federal highway funding minimum guarantee provisions. Requires the Secretary of Transportation, for each of FY 2004 through 2009, to allocate among the States amounts sufficient to ensure that: (1) the percentage for each State of the total apportionments for the fiscal year for the National Highway System (NHS), the high priority projects program, the Interstate maintenance program, the surface transportation program, metropolitan planning, the highway bridge replacement and rehabilitation program, the congestion mitigation and air quality improvement program, the recreational trails program, the Appalachian development highway system, and the basic minimum guarantee equals or exceeds 95 percent of the ratio that the estimated tax payments to the Highway Trust Fund (HTF) attributable to highway users in the State bears to such payments attributable to highway users in all States. And (2) when HTF allocations for the fiscal year have been identified, the percentage for each State of all of those allocations for the fiscal year equals or exceeds the percentage that is equal to 95 percent of such tax payments ratio. Sets forth provisions regarding: (1) the programmatic distribution of NHS funds exceeding $2.8 billion. (2) the apportionment of the remainder of funds to the States. And (3) required adjustments where the sum of State percentages exceeds 100.