To amend title 23, United States Code, to require States to extend parking privileges to motor vehicles designated under the laws of other States for transporting certain individuals with disabilities.

SECTION 1. PARKING PRIVILEGES FOR CERTAIN INDIVIDUALS WITH 
              DISABILITIES.

    (a) In General.--Chapter 1 of title 23, United State Code, is 
amended by adding at the end the following new section:
``Sec. 161. Parking privileges for certain individuals with 
              disabilities
    ``(a) In General.--
            ``(1) Privileges granted to qualified motor vehicles.--
        Subject to subsection (b), each State, and each political 
        subdivision of a State, shall extend the same parking 
        privileges to qualified motor vehicles from other States as it 
        grants to qualified motor vehicles designated under the laws of 
        such State or political subdivision.
            ``(2) Qualified motor vehicle.--A qualified motor vehicle, 
        referred to in paragraph (1), is a motor vehicle designated 
        under the laws of any State, or any political subdivision of a 
        State, for transporting an individual with a disability that 
        limits or impairs the ability of the individual to walk.
    ``(b) Withholding of Funds for Noncompliance.--
            ``(1) First year.--The Secretary shall withhold 5 percent 
        of the amount required to be apportioned to any State under 
        each of sections 104(b)(1), 104(b)(2), 104(b)(5), and 104(b)(6) 
        on the 1st day of the 1st fiscal year succeeding fiscal year 
        1995 in which the State, or any political subdivision of the 
        State, is not in compliance with subsection (a)(1).
            ``(2) Subsequent years.--If the Secretary withholds funds 
        from any State under paragraph (1) for any fiscal year and the 
        State, or any political subdivision of the State, is not in 
        compliance with subsection (a)(1) in any subsequent fiscal 
        year, then the Secretary shall withhold 10 percent of the 
        amount required to be apportioned to the State under each of 
        sections 104(b)(1), 104(b)(2), 104(b)(5), and 104(b)(6) on the 
        1st day of such subsequent fiscal year.
    ``(c) Period of Availability; Effect of Compliance and 
Noncompliance.--
            ``(1) Period of availability of withheld funds.--
                    ``(A) Funds withheld on or before september 30, 
                1997.--Any funds withheld under this section from 
                apportionment to any State on or before September 30, 
                1997, shall remain available for apportionment to the 
                State as follows:
                            ``(i) Funds apportioned under section 
                        104(b)(5)(a).--If the funds would have been 
                        apportioned under section 104(b)(5)(A) but for 
                        this section, the funds shall remain available 
                        until the end of the fiscal year for which the 
                        funds are authorized to be appropriated.
                            ``(ii) Funds apportioned under section 
                        104(b)(5)(b).--If the funds would have been 
                        apportioned under section 104(b)(5)(B) but for 
                        this section, the funds shall remain available 
                        until the end of the 2d fiscal year following 
                        the fiscal year for which the funds are 
                        authorized to be appropriated.
                            ``(iii) Funds apportioned under section 
                        104(b)(1), 104(b)(2), or 104(b)(6).--If the 
                        funds would have been apportioned under section 
                        104(b)(1), 104(b)(2), or 104(b)(6) but for this 
                        section, the funds shall remain available until 
                        the end of the 3d fiscal year following the 
                        fiscal year for which the funds are authorized 
                        to be appropriated.
                    ``(B) Funds withheld after september 30, 1997.--No 
                funds withheld under this section from apportionment to 
                any State after September 30, 1997, shall be available 
                for apportionment to the State.
            ``(2) Apportionment of withheld funds after compliance.--
        If, before the last day of the period for which funds withheld 
        from apportionment under this section are to remain available 
        for apportionment to a State under paragraph (1)(A), the State 
        and all political subdivisions of the State are in compliance 
        with subsection (a)(1), then the Secretary shall, on the day 
        following the last day of the period, apportion to the State 
        the withheld funds remaining available for apportionment to the 
        State.
            ``(3) Period of availability of subsequently apportioned 
        funds.--
                    ``(A) Availability of funds.--Any funds apportioned 
                pursuant to paragraph (2) shall remain available for 
                expenditure as follows:
                            ``(i) Funds apportioned under section 
                        104(b)(5)(a).--Funds apportioned under section 
                        104(b)(5)(A) shall remain available until the 
                        end of the fiscal year succeeding the fiscal 
                        year in which the funds are apportioned.
                            ``(ii) Funds apportioned under section 
                        104(b)(1), 104(b)(2), 104(b)(5)(b), or 
                        104(b)(6).--Funds apportioned under section 
                        104(b)(1), 104(b)(2), 104(b)(5)(B), or 
                        104(b)(6) shall remain available until the end 
                        of the 3d fiscal year succeeding the fiscal 
                        year in which the funds are apportioned.
                    ``(B)  Lapse of funds.--Funds not obligated at the 
                end of the period shall lapse or, in the case of funds 
                apportioned under section 104(b)(5), shall lapse and be 
                made available by the Secretary for projects in 
                accordance with section 118(b).
            ``(4) Effect of noncompliance.--If, at the end of the 
        period for which funds withheld from apportionment under this 
        section are available for apportionment to a State under 
        paragraph (1), the State or any political subdivision of the 
        State is not in compliance with subsection (a)(1), then the 
        funds shall lapse or, in the case of funds withheld from 
        apportionment under section 104(b)(5), the funds shall lapse 
        and be made available by the Secretary for projects in 
        accordance with section 118(b).
    ``(d) Definitions.--For the purposes of this section:
            ``(1) Motor vehicle.--The term `motor vehicle' has the 
        meaning given such term in section 154.
            ``(2) State.--The term `State' means any entity that 
        receives apportionments under section 104.''.
    (b) Conforming Amendment.--The analysis for chapter 1 of title 23, 
United States Code, is amended by adding at the end the following new 
item:

``161. Parking privileges for certain individuals with disabilities.''.

Summary: Requires each State to extend the parking privileges it grants to motor vehicles designated for transporting an individual with a disability that limits or impairs such individual's ability to walk to such vehicles from other States. 
Directs the Secretary of Transportation to withhold specified funds for noncompliance.  Makes withheld funds available for other projects, subject to specified requirements.