I 

112TH CONGRESS 

1ST SESSION H. R. 1585 

To allow States to elect to receive contributions to the Highway Trust Fund 

in lieu of participating in the Federal-aid highway program or certain 

public transportation programs. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 15, 2011 

Mr. LANKFORD introduced the following bill; which was referred to the 

Committee on Transportation and Infrastructure 

A BILL 

To allow States to elect to receive contributions to the Highway Trust Fund in lieu of participating in the Federalaid highway program or certain public transportation 

programs. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘State Highway Flexi5 bility Act’’. 


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1 SEC. 2. DIRECT FEDERAL-AID HIGHWAY PROGRAM. 

2 (a) IN GENERAL.—Chapter 1 of title 23, United 

3 States Code, is amended by inserting after section 149 the 

4 following: 

5 ‘‘§ 150. Direct Federal-Aid highway program 

6 ‘‘(a) ELECTION BY STATE NOT TO PARTICIPATE.— 

7 Notwithstanding any other provision of law, a State may 

8 elect not to participate in a Federal program relating to 

9 highways, including any Federal highway program under 

10 the Safe, Accountable, Flexible, Efficient Transportation 

11 Equity Act: A Legacy for Users (Public Law 109–59), this 

12 title, or title 49. 

13 ‘‘(b) DIRECT FEDERAL-AID HIGHWAY PROGRAM.— 

14 Beginning in fiscal year 2011, the Secretary shall carry 

15 out a direct Federal-aid highway program in accordance 

16 with the requirements of this section. Under the program, 

17 the Governor or chief executive officer of a State may 

18 elect, not fewer than 90 days before the beginning of a 

19 fiscal year— 

20 ‘‘(1) to waive the right of the State to receive 

21 amounts apportioned or allocated to it under the 

22 Federal-aid highway program for the fiscal year to 

23 which the election relates; and 

24 ‘‘(2) to receive instead the amount determined 

25 under subsection (e) for that fiscal year. 

26 ‘‘(c) STATE RESPONSIBILITY.— 


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1 ‘‘(1) IN GENERAL.—The Governor or chief ex2 ecutive officer of a State making an election under 

3 subsection (b) shall— 

4 ‘‘(A) agree to maintain the Interstate Sys5 tem in accordance with its current Interstate 

6 System program; 

7 ‘‘(B) submit a plan to the Secretary de8 scribing— 

9 ‘‘(i) the purposes, projects, and uses 

10 to which amounts received under the direct 

11 Federal-aid highway program will be put; 

12 and 

13 ‘‘(ii) which programmatic require14 ments of this title the State elects to con15 tinue; 

16 ‘‘(C) agree to obligate or expend amounts 

17 received under the direct Federal-aid highway 

18 program exclusively for projects that would be 

19 eligible for funding under section 133(b) if the 

20 State was not participating in the program; and 

21 ‘‘(D) agree to report annually to the Sec22 retary on the use of amounts received under the 

23 direct Federal-aid highway program and to 

24 make the report available to the public in an 

25 easily accessible format. 


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1 ‘‘(2) NO LIMITATION ON USE OF FUNDS.—Ex2 cept as provided in paragraph (1), the expenditure 

3 or obligation of funds received by a State under the 

4 direct Federal-aid highway program shall not be 

5 subject to regulation under this title (except for this 

6 section), title 49, or any other Federal law. 

7 ‘‘(3) ELECTION IRREVOCABLE.—An election 

8 under subsection (b) shall be irrevocable during the 

9 applicable fiscal year. 

10 ‘‘(d) EFFECT ON PRE-EXISTING COMMITMENTS.— 

11 The making of an election under subsection (b) shall not 

12 affect any responsibility or commitment of the State under 

13 this title for any fiscal year with respect to— 

14 ‘‘(1) a project or program funded under this 

15 title (other than under this section); or 

16 ‘‘(2) any project or program funded under this 

17 title in any fiscal year for which an election under 

18 subsection (b) is not in effect. 

19 ‘‘(e) TRANSFERS.— 

20 ‘‘(1) IN GENERAL.—The amount to be trans21 ferred to a State under the direct Federal-aid high22 way program for a fiscal year shall be the portion 

23 of the taxes appropriated to the Highway Trust 

24 Fund under section 9503 of the Internal Revenue 

25 Code of 1986, other than for the Mass Transit AcVerDate Mar 15 2010 02:28 Apr 20, 2011 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1585.IH H1585

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1 count, for that fiscal year that is attributable to 

2 highway users in that State during that fiscal year, 

3 reduced by a pro rata share withheld by the Sec4 retary to fund contract authority for programs of 

5 the National Highway Traffic Safety Administration 

6 and the Federal Motor Carrier Safety Administra7 tion. 

8 ‘‘(2) TRANSFERS.— 

9 ‘‘(A) IN GENERAL.—Transfers under the 

10 program— 

11 ‘‘(i) shall be made at the same time as 

12 deposits to the Highway Trust Fund are 

13 made by the Secretary of the Treasury; 

14 and 

15 ‘‘(ii) shall be made on the basis of es16 timates by the Secretary, in consultation 

17 with the Secretary of the Treasury, based 

18 on the most recent data available, and 

19 proper adjustments shall be made in 

20 amounts subsequently transferred to the 

21 extent prior estimates were in excess of, or 

22 less than, the amounts required to be 

23 transferred. 

24 ‘‘(B) LIMITATION.—An adjustment under 

25 subparagraph (A)(ii) to any transfer may not 


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1 exceed 5 percent of the transferred amount to 

2 which the adjustment relates. If the adjustment 

3 required under subparagraph (A)(ii) exceeds 

4 that percentage, the excess shall be taken into 

5 account in making subsequent adjustments 

6 under subparagraph (A)(ii). 

7 ‘‘(f) APPLICATION WITH OTHER AUTHORITY.— 

8 There shall be rescinded or canceled any contract author9 ity under this chapter (and any obligation limitation) for 

10 a State for a fiscal year for which an election by that State 

11 is in effect under subsection (b). 

12 ‘‘(g) MAINTENANCE OF EFFORT.— 

13 ‘‘(1) IN GENERAL.—Not later than 30 days 

14 after the date on which an amount is distributed to 

15 a State or State agency under the State Highway 

16 Flexibility Act or an amendment made by that Act, 

17 the Governor or chief executive officer of the State 

18 shall certify to the Secretary that the State will 

19 maintain the effort of the State with regard to State 

20 funding for the types of projects that are funded by 

21 the amounts. 

22 ‘‘(2) AMOUNTS.—As part of the certification, 

23 the Governor or chief executive officer shall submit 

24 to the Secretary a statement identifying the amount 

25 of funds the State plans to expend from State 


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1 sources during the covered period, for the types of 

2 projects that are funded by the amounts. 

3 ‘‘(h) TREATMENT OF GENERAL REVENUES.—For 

4 purposes of this section, any general revenue funds appro5 priated to the Highway Trust Fund shall be transferred 

6 to a State under the program in the manner described 

7 in subsection (e).’’. 

8 (b) CONFORMING AMENDMENT.—The analysis for 

9 title 23, United States Code, is amended by inserting after 

10 the item relating to section 149 the following: 

‘‘150. Direct Federal-aid highway program.’’. 

11 SEC. 3. ALTERNATIVE FUNDING OF PUBLIC TRANSPOR12 TATION PROGRAMS. 

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

14 States Code, is amended by adding at the end the fol15 lowing: 

16 ‘‘§ 5341. Alternative funding of public transportation 

17 programs 

18 ‘‘(a) DEFINITIONS.—In this section— 

19 ‘‘(1) the term ‘alternative funding program’ 

20 means the program established under subsection (c); 

21 and 

22 ‘‘(2) the term ‘covered programs’ means the 

23 programs authorized under— 


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1 ‘‘(A) sections 5305, 5307, 5308, 5309, 

2 5310, 5311, 5316, 5317, 5320, 5335, 5339, 

3 and 5340 of title 49, United States Code; and 

4 ‘‘(B) section 3038 of the Federal Transit 

5 Act of 1998 (49 U.S.C. 5310 note). 

6 ‘‘(b) ELECTION BY STATE NOT TO PARTICIPATE.— 

7 Notwithstanding any other provision of law, a State may 

8 elect not to participate in a Federal program relating to 

9 public transportation, including any Federal public trans10 portation program under the Safe, Accountable, Flexible, 

11 Efficient Transportation Equity Act: A Legacy for Users 

12 (Public Law 109–59; 119 Stat. 1144), title 23, or this 

13 title. 

14 ‘‘(c) PUBLIC TRANSPORTATION PROGRAM.— 

15 ‘‘(1) PROGRAM ESTABLISHED.—Beginning in 

16 fiscal year 2011, the Secretary shall carry out an al17 ternative funding program under which the Governor 

18 or chief executive officer of a State may elect, not 

19 fewer than 90 days before the beginning of a fiscal 

20 year— 

21 ‘‘(A) to waive the right of the State to re22 ceive amounts apportioned or allocated to it 

23 under the covered programs for the fiscal year 

24 to which the election relates; and 


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1 ‘‘(B) to receive an amount for that fiscal 

2 year that is determined in accordance with sub3 section (e). 

4 ‘‘(2) PROGRAM REQUIREMENTS.— 

5 ‘‘(A) IN GENERAL.—The Governor or chief 

6 executive officer of a State that participates in 

7 the alternative funding program shall— 

8 ‘‘(i) submit a plan to the Secretary 

9 describing— 

10 ‘‘(I) the purposes, projects, and 

11 uses to which amounts received under 

12 the alternative funding program will 

13 be put; and 

14 ‘‘(II) which programmatic re15 quirements of this title the State 

16 elects to continue; 

17 ‘‘(ii) agree to obligate or expend 

18 amounts received under the alternative 

19 funding program exclusively for projects 

20 that would be eligible for funding under 

21 the covered programs if the State was not 

22 participating in the alternative funding 

23 program; and 

24 ‘‘(iii) submit an annual report to the 

25 Secretary on the use of amounts received 


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1 under the alternative funding program, 

2 and to make the report available to the 

3 public in an easily accessible format. 

4 ‘‘(B) NO LIMITATION ON USE OF FUNDS.— 

5 Except as provided in subparagraph (A), the 

6 expenditure or obligation of funds received by a 

7 State under the alternative funding program 

8 shall not be subject to the provisions of this 

9 title (except for this section), title 23, or any 

10 other Federal law. 

11 ‘‘(3) ELECTION IRREVOCABLE.—An election 

12 under paragraph (1) shall be irrevocable during the 

13 applicable fiscal year. 

14 ‘‘(d) EFFECT ON PRE-EXISTING COMMITMENTS.— 

15 Participation in the alternative funding program shall not 

16 affect any responsibility or commitment of the State under 

17 this title for any fiscal year with respect to— 

18 ‘‘(1) a project or program funded under this 

19 title (other than under this section); or 

20 ‘‘(2) any project or program funded under this 

21 title in any fiscal year for which the State elects not 

22 to participate in the alternative funding program. 

23 ‘‘(e) TRANSFERS.— 

24 ‘‘(1) IN GENERAL.—The amount to be trans25 ferred to a State under the alternative funding proVerDate Mar 15 2010 02:28 Apr 20, 2011 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H1585.IH H1585

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1 gram for a fiscal year shall be the portion of the 

2 taxes transferred to the Mass Transit Account of the 

3 Highway Trust Fund under section 9503(e) of the 

4 Internal Revenue Code of 1986, for that fiscal year, 

5 that is attributable to highway users in that State 

6 during that fiscal year. 

7 ‘‘(2) TRANSFERS.— 

8 ‘‘(A) IN GENERAL.—Transfers under the 

9 program— 

10 ‘‘(i) shall be made at the same time as 

11 transfers to the Mass Transit Account of 

12 the Highway Trust Fund are made by the 

13 Secretary of the Treasury; and 

14 ‘‘(ii) shall be made on the basis of es15 timates by the Secretary, in consultation 

16 with the Secretary of the Treasury, based 

17 on the most recent data available, and 

18 proper adjustments shall be made in 

19 amounts subsequently transferred, to the 

20 extent prior estimates were in excess of, or 

21 less than, the amounts required to be 

22 transferred. 

23 ‘‘(B) LIMITATION.—An adjustment under 

24 subparagraph (A)(ii) to any transfer may not 

25 exceed 5 percent of the transferred amount to 


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1 which the adjustment relates. If the adjustment 

2 required under subparagraph (A)(ii) exceeds 

3 that percentage, the excess shall be taken into 

4 account in making subsequent adjustments 

5 under subparagraph (A)(ii). 

6 ‘‘(f) CONTRACT AUTHORITY.—There shall be re7 scinded or canceled any contract authority under this 

8 chapter (and any obligation limitation) for a State for a 

9 fiscal year for which the State elects to participate in the 

10 alternative funding program. 

11 ‘‘(g) MAINTENANCE OF EFFORT.— 

12 ‘‘(1) IN GENERAL.—Not later than 30 days 

13 after the date on which an amount is distributed to 

14 a State or State agency under the State Highway 

15 Flexibility Act or an amendment made by that Act, 

16 the Governor or chief executive officer of the State 

17 shall certify to the Secretary that the State will 

18 maintain the effort of the State with regard to State 

19 funding for the types of projects that are funded by 

20 the amounts. 

21 ‘‘(2) AMOUNTS.—The certification under para22 graph (1) shall include a statement identifying the 

23 amount of funds the State plans to expend from 

24 State sources for projects funded under the alter25 native funding program, during the fiscal year for 


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1 which the State elects to participate in the alter2 native funding program. 

3 ‘‘(h) TREATMENT OF GENERAL REVENUES.—For 

4 purposes of this section, any general revenue funds appro5 priated to the Highway Trust Fund shall be transferred 

6 to a State under the program in the manner described 

7 in subsection (e).’’. 

8 (b) CONFORMING AMENDMENT.—The analysis for 

9 title 49, United States Code, is amended by inserting after 

10 the item relating to section 5340 the following: 

‘‘5341. Alternative funding of public transportation programs.’’. 

Æ 


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