SEC. 2. ELECTION TO RECEIVE STATE’S CONTRIBUTIONS 
TO HIGHWAY TRUST FUND IN LIEU OF PAR-
TICIPATING IN FEDERAL-AID HIGHWAY PRO-
GRAM. 
(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 sec-
tion. 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 de-
termines that the State— 
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‘‘(A) has an interstate maintenance pro-
gram and agrees to maintain the interstate in 
accordance with that program; 
‘‘(B) submits a plan to the Secretary de-
scribing— 
‘‘(i) the purposes, projects, and uses 
to which amounts received under the pro-
gram will be put; and 
‘‘(ii) which programmatic require-
ments of this title the State elects to con-
tinue; 
‘‘(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 Sec-
retary 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). 
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‘‘(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.—Ex-
cept 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 regula-
tion 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 trans-
ferred 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 In-
ternal Revenue Code of 1986, other than for the 
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Mass Transit Account, for a fiscal year for which an 
election is in effect under subsection (a) that is at-
tributable 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 pro-
grams of the National Highway Traffic Safety Ad-
ministration and the Federal Motor Carrier Safety 
Administration. 
‘‘(2) GENERAL FUND AMOUNTS.—For purposes 
of paragraph (1), any amounts deposited in or cred-
ited 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 es-
timates 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 
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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 fol-
lowing: 
‘‘150. Direct Federal-aid highway program.’’. 
Æ 
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