such as laying off and furloughing employees (in-
cluding public safety personnel), cancelling or post-
poning planned capital improvements, deferring nec-
essary maintenance, cutting equipment inventories, 
and in some cases declaring bankruptcy. 
(12) The costs of employee benefits continue to 
rise and local governments have to devote more re-
sources to keep up with inflation. 
(13) States are passing along the costs of serv-
ices to local governments as a method to balance 
their budgets. 
(14) The outlook for recovery appears to be at 
least 5 years away given that, even when the econ-
omy recovers, local governments experience a delay 
in increased tax collections due to the nature of 
property tax collections. 
SEC. 3. RETROREFLECTIVITY LEVEL STANDARDS APPLICA-
BLE TO TRAFFIC SIGNS. 
(a) IN GENERAL.—The Secretary of Transportation 
shall modify the target compliance dates for minimum 
retroreflectivity level standards set forth in section 2A.08 
of the Manual on Uniform Traffic Control Devices for 
Streets and Highways, 2009 Edition (incorporated by ref-
erence in subpart F of part 655 of title 23, Code of Fed-
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eral Regulations) so that the following target compliance 
dates apply: 
(1) A target compliance date of January 22, 
2012, for implementation and continued use of an 
assessment or management method that is designed 
to maintain traffic sign retroreflectivity at or above 
the established minimum levels. 
(2) A target compliance date of January 22, 
2018, for replacement of regulatory, warning, and 
post-mounted guide (except street name) signs that 
are identified using the assessment or management 
method as failing to meet the established minimum 
levels. 
(3) A target compliance date of January 22, 
2021, for replacement of street name signs and over-
head guide signs that are identified using the assess-
ment or management method as failing to meet the 
established minimum levels. 
(b) EFFECT
ON PROPOSED REGULATIONS.—The 
Secretary shall revise the notice of proposed amendments 
published in the Federal Register on August 31, 2011 (76 
Fed. Reg. 54156), to incorporate the target compliance 
dates specified in subsection (a). 
(c) FUNDING.—The Secretary may use funds avail-
able to the Secretary to carry out this section notwith-
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standing any funding limitation enacted before the date 
of enactment of this Act. 
SEC. 4. HIGHWAY SAFETY IMPROVEMENT PROGRAM. 
(a) HIGHWAY SIGNS AND PAVEMENT MARKINGS.— 
Section 148(a)(3)(B)(xi) of title 23, United States Code, 
is amended to read as follows: 
‘‘(xi) Installation, replacement, and 
upgrade of highway signs and pavement 
markings, including any upgrade of mate-
rials and the implementation of any assess-
ment or management method designed to 
meet 
a 
State-established 
performance 
standard, Federal regulation, or require-
ment contained in the Manual on Uniform 
Traffic Control Devices relating to min-
imum levels of retroreflectivity.’’. 
(b) 
MAINTAINING
MINIMUM
LEVELS
OF 
RETROREFLECTIVITY.— 
(1) DEFINITION.—Section 148(a) of such title 
is amended by adding at the end the following: 
‘‘(7) PROJECT TO MAINTAIN MINIMUM LEVELS 
OF
RETROREFLECTIVITY.—The term ‘project to 
maintain minimum levels of retroreflectivity’ means 
a project undertaken pursuant to the Manual on 
Uniform Traffic Control Devices requiring public 
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agencies to use an assessment or management meth-
od that is designed to maintain highway sign or 
pavement marking retroreflectivity at or above pre-
scribed minimum levels.’’. 
(2) ELIGIBLE PROJECTS.—Section 148(d)(1) of 
such title is amended— 
(A) by striking ‘‘or’’ at the end of subpara-
graph (A); 
(B) by redesignating subparagraph (B) as 
subparagraph (C); and 
(C) by inserting after subparagraph (A) 
the following: 
‘‘(B) any project to maintain minimum lev-
els of retroreflectivity on a public road, whether 
or not such project is included in the State 
strategic highway safety plan; or’’. 
(3) INCREASED
FEDERAL
SHARE.—The first 
sentence of section 120(c)(1) of such title is amend-
ed by inserting ‘‘maintaining minimum levels of 
retroreflectivity of highway signs or pavement mark-
ings,’’ after ‘‘signalization,’’. 
(c) STANDARDS FOR PROJECTS TO UPGRADE HIGH-
WAY SIGNS AND PAVEMENT MARKINGS.—Section 148 of 
such title is amended by adding at the end the following: 
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‘‘(i) STANDARDS FOR PROJECTS TO UPGRADE HIGH-
WAY SIGNS AND PAVEMENT MARKINGS.—The Secretary 
shall issue standards for the use of funds apportioned to 
a State under section 104(b)(5) for highway safety im-
provement projects to upgrade highway signs and pave-
ment markings in order to meet or exceed minimum main-
tained levels of retroreflectivity. Such standards shall en-
sure that the projects are carried out so as to meet defined 
criteria, consistent with other safety upgrades, using a 
systematic approach. Such standards shall permit the use 
of the funds for an initial upgrade of highway signs and 
pavement markings in the State, but shall prohibit the 
funds from being used for maintenance activities.’’. 
Æ 
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