I 

108TH CONGRESS 

1ST SESSION H. R. 2914

To amend title 49, United States Code, to provide for the establishment 

of a flexibility incentive grant program. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 25, 2003

Ms. CARSON of Indiana (for herself, Mr. OWENS, Ms. JACKSON-LEE of Texas, 

Mrs. TAUSCHER, Mr. RANGEL, Mr. GRIJALVA, Mr. HONDA, Mr. 

CAPUANO, Ms. MILLENDER-MCDONALD, Mr. CASE, Mr. FILNER, and Mr. 

BOSWELL) introduced the following bill; which was referred to the Committee on Transportation and Infrastructure 

A BILL

To amend title 49, United States Code, to provide for the 

establishment of a flexibility incentive grant program.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. FLEXIBILITY INCENTIVE GRANT PILOT PRO4 GRAM. 

5 (a) IN GENERAL.—Chapter 53 of title 49, United 

6 States Code, is amended by adding at the end the fol7 lowing: 
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1 ‘‘§ 5339. Flexibility Incentive Grant Pilot Program 

2 ‘‘(a) PURPOSE.—The purpose of this section is to 

3 provide incentives to encourage States to establish new 

4 sources of revenue for transit projects and services and 

5 to reward States for creating more flexibility in the use 

6 of their existing transportation funds. 

7 ‘‘(b) ESTABLISHMENT OF PROGRAM.—The Secretary 

8 of Transportation shall establish a flexibility incentive 

9 grant pilot program in accordance with this section. 

10 ‘‘(c) SELECTION PROCESS AND CRITERIA.—Not later 

11 than 90 days after the date of enactment of this section, 

12 the Secretary shall establish a process and criteria for se13 lecting States to participate in the pilot program. Any 

14 State may apply under the process to participate in the 

15 pilot program. 

16 ‘‘(d) SELECTION OF PARTICIPATING STATES.—The 

17 Secretary shall select States to participate in the pilot pro18 gram under the selection process, and based on the selec19 tion criteria, established by the Secretary. 

20 ‘‘(e) DETERMINATIONS BY THE SECRETARY.—Not 

21 later than September 1 of each of calendar years 2004 

22 through 2009, the Secretary shall determine which of the 

23 States selected to participate in the pilot program in24 creased the aggregate amount of State funds (excluding 

25 funds from Federal sources) that the State expended on 

26 transit projects and services from the State’s second fiscal 
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1 year preceding such September 1 to the State’s first fiscal 

2 year preceding such September 1, the amount of such in3 crease, and the percentage of such increase over the 

4 State’s second preceding fiscal year. 

5 ‘‘(f) GRANTS FOR INCREASED TRANSIT FUNDING.—

6 ‘‘(1) STATES WITH AN INCREASE OF 10 PER7 CENT OR MORE.—Subject to paragraph (2) and sub8 section (h)—

9 ‘‘(A) the Secretary shall make a grant for 

10 each of fiscal years 2006 through 2010 to each 

11 State selected to participate in the pilot pro12 gram whose percentage increase in expenditures 

13 for transit projects and services over the pre14 ceding fiscal year of the State was 10 percent 

15 or more, as determined by the Secretary under 

16 subsection (e); and 

17 ‘‘(B) the amount of the grant shall be 

18 equal to the increase in the aggregate amount 

19 of State funds (excluding funds from Federal 

20 sources) that the State expended on transit 

21 projects and services from the second preceding 

22 fiscal year of the State to the first preceding 

23 fiscal year of the State, as determined by the 

24 Secretary under subsection (e); except that the
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1 amount of the grant may not exceed 

2 $5,000,000. 

3 ‘‘(2) LARGE STATES WITH AN INCREASE OF 1

4 PERCENT OR MORE.—Subject to subsection (h), for 

5 each of fiscal years 2006 through 2010, the Sec6 retary shall make a grant of $10,000,000 to each 

7 State selected to participate in the pilot program 

8 whose percentage increase in expenditures for tran9 sit projects and services over the preceding fiscal 

10 year of the State was 1 percent or more, and whose 

11 aggregate expenditures for such projects and serv12 ices in the State’s preceding fiscal year was more 

13 than $1,000,000,000, as determined by the Sec14 retary under subsection (e). 

15 ‘‘(g) STATES CREATING FLEXIBLE TRANSPOR16 TATION FUNDS.—

17 ‘‘(1) NEW DEDICATED SOURCE OF REVENUE.—

18 ‘‘(A) IN GENERAL.—Subject to subsection 

19 (h), for each of fiscal years 2004 through 2010, 

20 the Secretary shall make a grant of 

21 $10,000,000 to each State that implemented in 

22 the first preceding fiscal year of the State a 

23 dedicated source of revenue for carrying out 

24 only transit projects and services that the Sec25 retary—
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1 ‘‘(i) determines was not in effect in 

2 the second preceding fiscal year of the 

3 State; and 

4 ‘‘(ii) projects will result in an increase 

5 of 10 percent in State funds available for 

6 expenditure on such projects and services 

7 within 2 years after the date of such imple8 mentation. 

9 ‘‘(B) DEDICATED SOURCE OF REVENUES

10 DEFINED.—For purposes of this paragraph, the 

11 term ‘dedicated source of revenue’ may include 

12 the dedication of a State motor fuels tax or 

13 sales tax, interest on existing highway funds, 

14 motor vehicle excise tax, tolls, loans to be made 

15 out of highway funds, and such other sources of 

16 revenue as the Secretary determines. 

17 ‘‘(2) UNRESTRICTED USE OF HIGHWAY

18 FUNDS.—Subject to subsection (h), for each of fiscal 

19 years 2004 through 2010, the Secretary shall make 

20 a grant of $10,000,000 to each State that in the 

21 preceding fiscal year of the State amended State law 

22 or the State constitution to allow funds that were re23 stricted for highway purposes only to be used for 

24 transit projects and services as well as highway pur25 poses. 
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1 ‘‘(h) LIMITATION FOR STATES ELIGIBILITY FOR

2 MULTIPLE GRANTS.—If the Secretary determines that a 

3 State is eligible for a grant under more than one of sub4 sections (f)(1), (f)(2), (g)(1), and (g)(2) for a fiscal year, 

5 the Secretary may only make the grant to the State that 

6 is for the greatest amount the State is eligible for under 

7 such subsections. 

8 ‘‘(i) USE OF GRANTS.—A State may obligate funds 

9 granted to it under this section for any project or activity 

10 eligible for assistance under title 23 or chapter 53. 

11 ‘‘(j) GRANT REQUIREMENTS.—Except as otherwise 

12 provided in this section—

13 ‘‘(1) a grant under this section being used for 

14 a transit project or activity shall be subject to all of 

15 the terms and conditions to which a grant made 

16 under section 5307 is subject; and 

17 ‘‘(2) a grant under this section being used for 

18 a highway project or activity shall be subject to all 

19 of the terms and conditions that would be applicable 

20 to such project or activity if such project or activity 

21 were being carried out under title 23, United States 

22 Code. 

23 ‘‘(k) FEDERAL SHARE.—The Federal share of the 

24 cost of a project or activity funded under this section shall 

25 be 100 percent. 
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1 ‘‘(l) AUTHORIZATIONS OF APPROPRIATIONS.—There 

2 are authorized to be appropriated to carry out this section 

3 for each of fiscal years 2004 through 2010 $80,000,000. 

4 Such sums shall remain available until expended. 

5 ‘‘(m) PROGRAM EVALUATION.—Not later than 5 

6 years after the date of enactment of this section, the Sec7 retary shall—

8 ‘‘(1) conduct a study to evaluate the pilot pro9 gram authorized by this section; and 

10 ‘‘(2) submit to the Committee on Transpor11 tation and Infrastructure of the House of Represent12 atives and the Committee on Banking, Housing and 

13 Urban Affairs of the Senate a report describing the 

14 results of the study.’’. 

15 (b) CONFORMING AMENDMENT.—The analysis for 

16 such chapter is amended by adding at the end the fol17 lowing:

‘‘5539. Flexibility incentive grant pilot program.’’.

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