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 High-
way Trust Fund in lieu of participating in the Federal- 
aid highway program or certain public transportation 
programs. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘State Highway Flexi-
bility Act’’. 
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SEC. 2. DIRECT FEDERAL-AID HIGHWAY PROGRAM. 
(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) ELECTION BY STATE NOT TO PARTICIPATE.— 
Notwithstanding any other provision of law, a State may 
elect not to participate in a Federal program relating to 
highways, including any Federal highway program under 
the Safe, Accountable, Flexible, Efficient Transportation 
Equity Act: A Legacy for Users (Public Law 109–59), this 
title, or title 49. 
‘‘(b) DIRECT FEDERAL-AID HIGHWAY PROGRAM.— 
Beginning in fiscal year 2011, the Secretary shall carry 
out a direct Federal-aid highway program in accordance 
with the requirements of this section. Under the program, 
the Governor or chief executive officer of a State may 
elect, not fewer than 90 days before the beginning of a 
fiscal year— 
‘‘(1) to waive the right of the State to receive 
amounts apportioned or allocated to it under the 
Federal-aid highway program for the fiscal year to 
which the election relates; and 
‘‘(2) to receive instead the amount determined 
under subsection (e) for that fiscal year. 
‘‘(c) STATE RESPONSIBILITY.— 
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‘‘(1) IN GENERAL.—The Governor or chief ex-
ecutive officer of a State making an election under 
subsection (b) shall— 
‘‘(A) agree to maintain the Interstate Sys-
tem in accordance with its current Interstate 
System program; 
‘‘(B) submit a plan to the Secretary de-
scribing— 
‘‘(i) the purposes, projects, and uses 
to which amounts received under the direct 
Federal-aid highway program will be put; 
and 
‘‘(ii) which programmatic require-
ments of this title the State elects to con-
tinue; 
‘‘(C) agree to obligate or expend amounts 
received under the direct Federal-aid highway 
program exclusively for projects that would be 
eligible for funding under section 133(b) if the 
State was not participating in the program; and 
‘‘(D) agree to report annually to the Sec-
retary on the use of amounts received under the 
direct Federal-aid highway program and to 
make the report available to the public in an 
easily accessible format. 
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‘‘(2) NO LIMITATION ON USE OF FUNDS.—Ex-
cept as provided in paragraph (1), the expenditure 
or obligation of funds received by a State under the 
direct Federal-aid highway program shall not be 
subject to regulation under this title (except for this 
section), title 49, or any other Federal law. 
‘‘(3) ELECTION
IRREVOCABLE.—An election 
under subsection (b) shall be irrevocable during the 
applicable fiscal year. 
‘‘(d) EFFECT ON PRE-EXISTING COMMITMENTS.— 
The making of an election under subsection (b) shall not 
affect any 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 (b) is not in effect. 
‘‘(e) TRANSFERS.— 
‘‘(1) IN GENERAL.—The amount to be trans-
ferred to a State under the direct Federal-aid high-
way program for a fiscal year shall be the portion 
of the taxes appropriated to the Highway Trust 
Fund under section 9503 of the Internal Revenue 
Code of 1986, other than for the Mass Transit Ac-
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count, for that fiscal year that is attributable to 
highway users in that State during that fiscal year, 
reduced by a pro rata share withheld by the Sec-
retary to fund contract authority for programs of 
the National Highway Traffic Safety Administration 
and the Federal Motor Carrier Safety Administra-
tion. 
‘‘(2) 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; 
and 
‘‘(ii) shall be made on the basis of es-
timates by the Secretary, in consultation 
with the Secretary of the Treasury, based 
on the most recent data available, and 
proper adjustments shall be made in 
amounts subsequently transferred to the 
extent prior estimates were in excess of, or 
less than, the amounts required to be 
transferred. 
‘‘(B) LIMITATION.—An adjustment under 
subparagraph (A)(ii) to any transfer may not 
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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). 
‘‘(f) APPLICATION
WITH
OTHER
AUTHORITY.— 
There shall be rescinded or canceled any contract author-
ity 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 (b). 
‘‘(g) MAINTENANCE OF EFFORT.— 
‘‘(1) IN
GENERAL.—Not later than 30 days 
after the date on which an amount is distributed to 
a State or State agency under the State Highway 
Flexibility Act or an amendment made by that Act, 
the Governor or chief executive officer of the State 
shall certify to the Secretary that the State will 
maintain the effort of the State with regard to State 
funding for the types of projects that are funded by 
the amounts. 
‘‘(2) AMOUNTS.—As part of the certification, 
the Governor or chief executive officer shall submit 
to the Secretary a statement identifying the amount 
of funds the State plans to expend from State 
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sources during the covered period, for the types of 
projects that are funded by the amounts. 
‘‘(h) TREATMENT
OF GENERAL REVENUES.—For 
purposes of this section, any general revenue funds appro-
priated to the Highway Trust Fund shall be transferred 
to a State under the program in the manner described 
in subsection (e).’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
title 23, United States Code, is amended by inserting after 
the item relating to section 149 the following: 
‘‘150. Direct Federal-aid highway program.’’. 
SEC. 3. ALTERNATIVE FUNDING OF PUBLIC TRANSPOR-
TATION PROGRAMS. 
(a) IN GENERAL.—Chapter 53 of title 49, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘§ 5341. Alternative funding of public transportation 
programs 
‘‘(a) DEFINITIONS.—In this section— 
‘‘(1) the term ‘alternative funding program’ 
means the program established under subsection (c); 
and 
‘‘(2) the term ‘covered programs’ means the 
programs authorized under— 
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‘‘(A) sections 5305, 5307, 5308, 5309, 
5310, 5311, 5316, 5317, 5320, 5335, 5339, 
and 5340 of title 49, United States Code; and 
‘‘(B) section 3038 of the Federal Transit 
Act of 1998 (49 U.S.C. 5310 note). 
‘‘(b) ELECTION BY STATE NOT TO PARTICIPATE.— 
Notwithstanding any other provision of law, a State may 
elect not to participate in a Federal program relating to 
public transportation, including any Federal public trans-
portation program under the Safe, Accountable, Flexible, 
Efficient Transportation Equity Act: A Legacy for Users 
(Public Law 109–59; 119 Stat. 1144), title 23, or this 
title. 
‘‘(c) PUBLIC TRANSPORTATION PROGRAM.— 
‘‘(1) PROGRAM
ESTABLISHED.—Beginning in 
fiscal year 2011, the Secretary shall carry out an al-
ternative funding program under which the Governor 
or chief executive officer of a State may elect, not 
fewer than 90 days before the beginning of a fiscal 
year— 
‘‘(A) to waive the right of the State to re-
ceive amounts apportioned or allocated to it 
under the covered programs for the fiscal year 
to which the election relates; and 
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‘‘(B) to receive an amount for that fiscal 
year that is determined in accordance with sub-
section (e). 
‘‘(2) PROGRAM REQUIREMENTS.— 
‘‘(A) IN GENERAL.—The Governor or chief 
executive officer of a State that participates in 
the alternative funding program shall— 
‘‘(i) submit a plan to the Secretary 
describing— 
‘‘(I) the purposes, projects, and 
uses to which amounts received under 
the alternative funding program will 
be put; and 
‘‘(II) which programmatic re-
quirements of this title the State 
elects to continue; 
‘‘(ii) agree to obligate or expend 
amounts received under the alternative 
funding program exclusively for projects 
that would be eligible for funding under 
the covered programs if the State was not 
participating in the alternative funding 
program; and 
‘‘(iii) submit an annual report to the 
Secretary on the use of amounts received 
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under the alternative funding program, 
and to make the report available to the 
public in an easily accessible format. 
‘‘(B) NO LIMITATION ON USE OF FUNDS.— 
Except as provided in subparagraph (A), the 
expenditure or obligation of funds received by a 
State under the alternative funding program 
shall not be subject to the provisions of this 
title (except for this section), title 23, or any 
other Federal law. 
‘‘(3) ELECTION
IRREVOCABLE.—An election 
under paragraph (1) shall be irrevocable during the 
applicable fiscal year. 
‘‘(d) EFFECT ON PRE-EXISTING COMMITMENTS.— 
Participation in the alternative funding program shall not 
affect any 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 the State elects not 
to participate in the alternative funding program. 
‘‘(e) TRANSFERS.— 
‘‘(1) IN GENERAL.—The amount to be trans-
ferred to a State under the alternative funding pro-
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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). 
‘‘(f) CONTRACT AUTHORITY.—There shall be re-
scinded or canceled any contract authority under this 
chapter (and any obligation limitation) for a State for a 
fiscal year for which the State elects to participate in the 
alternative funding program. 
‘‘(g) MAINTENANCE OF EFFORT.— 
‘‘(1) IN
GENERAL.—Not later than 30 days 
after the date on which an amount is distributed to 
a State or State agency under the State Highway 
Flexibility Act or an amendment made by that Act, 
the Governor or chief executive officer of the State 
shall certify to the Secretary that the State will 
maintain the effort of the State with regard to State 
funding for the types of projects that are funded by 
the amounts. 
‘‘(2) AMOUNTS.—The certification under para-
graph (1) shall include a statement identifying the 
amount of funds the State plans to expend from 
State sources for projects funded under the alter-
native funding program, during the fiscal year for 
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which the State elects to participate in the alter-
native funding program. 
‘‘(h) TREATMENT
OF GENERAL REVENUES.—For 
purposes of this section, any general revenue funds appro-
priated to the Highway Trust Fund shall be transferred 
to a State under the program in the manner described 
in subsection (e).’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
title 49, United States Code, is amended by inserting after 
the item relating to section 5340 the following: 
‘‘5341. Alternative funding of public transportation programs.’’. 
Æ 
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