SECTION 1. USE OF SAFETY BELTS AND CHILD RESTRAINT SYSTEMS BY CHILDREN.

    (a) In General.--Subchapter I of chapter 1 of title 23, United 
States Code, is amended by adding at the end the following:
``Sec. 165. Use of safety belts and child restraint systems by children
    ``(a) Definitions.--In this section, the following definitions 
apply:
            ``(1) Child safety restraint law.--The term `child safety 
        restraint law' means a State law that prohibits the driver of a 
        passenger motor vehicle from driving the vehicle whenever there 
        is in the vehicle a child under the age of 16 who does not have 
        a safety belt properly fastened about the child's body, except 
        if the child is under the age of 9 and is properly secured in a 
        child safety seat or other appropriate restraint system in 
        accordance with the instructions of the manufacturer of such 
        seat or system.
            ``(2) Child safety seat.--The term `child safety seat' 
        means a specially designed seating system (including booster 
        and child safety seats) which meets the Federal motor vehicle 
        safety standards set forth in section 571.213 of title 49 of 
        the Code of Federal Regulations, as such section may be amended 
        from time to time, and which is either permanently affixed to a 
        passenger motor vehicle or is affixed to a passenger motor 
        vehicle by a safety belt or a universal attachment system.
            ``(3) Motor vehicle.--The term `motor vehicle' means a 
        vehicle driven or drawn by mechanical power and manufactured 
        primarily for use on public streets, roads, and highways, but 
        does not include a vehicle operated only on a rail line.
            ``(4) Multipurpose passenger vehicle.--The term 
        `multipurpose passenger vehicle' means a motor vehicle with 
        motive power (except a trailer), designed to carry not more 
        than 10 individuals, that is constructed either on a truck 
        chassis or with special features for occasional off-road 
        operation.
            ``(5) Passenger car.--The term `passenger car' means a 
        motor vehicle with motive power (except a multipurpose 
        passenger vehicle, motorcycle, or trailer) designed to carry 
        not more than 10 individuals.
            ``(6) Passenger motor vehicle.--The term `passenger motor 
        vehicle' means a passenger car or a multipurpose passenger 
        vehicle.
            ``(7) Safety belt.--The term `safety belt' means--
                    ``(A) with respect to open-body passenger motor 
                vehicles, including convertibles, an occupant restraint 
                system consisting of a lap belt or a lap belt and a 
                detachable shoulder belt meeting applicable Federal 
                motor vehicle safety standards; and
                    ``(B) with respect to other passenger motor 
                vehicles, an occupant restraint system consisting of 
                integrated lap and shoulder belts meeting applicable 
                Federal motor vehicle standards.
    ``(b) Transfer of Funds.--
            ``(1) Fiscal year 2005.--On October 1, 2004, if a State has 
        not enacted a child safety restraint law, the Secretary shall 
        transfer an amount equal to 4 percent of the funds apportioned 
        to the State on that date under each of paragraphs (1), (3), 
        and (4) of section 104(b) to the apportionment of the State 
        under section 402 to be used to implement a statewide 
        comprehensive child and other passenger protection education 
        program to promote child and other passenger safety, including 
        education programs about proper seating positions for children 
        in air bag equipped motor vehicles and instruction that 
        increases the proper use of child restraint systems.
            ``(2) Fiscal year 2006.--On October 1, 2005, if a State has 
        not enacted a child safety restraint law, the Secretary shall 
        transfer an amount equal to 6 percent of the funds apportioned 
        to the State on that date under each of paragraphs (1), (3), 
        and (4) of section 104(b) to the apportionment of the State 
        under section 402 to be used as described in paragraph (1) of 
        this subsection.
            ``(3) Fiscal year 2007.--On October 1, 2006, if a State has 
        not enacted a child safety restraint law, the Secretary shall 
        transfer an amount equal to 8 percent of the funds apportioned 
        to the State on that date under each of paragraphs (1), (3), 
        and (4) of section 104(b) to the apportionment of the State 
        under section 402 to be used as described in paragraph (1) of 
        this subsection.
            ``(4) Fiscal year 2008 and thereafter.--On October 1, 2007, 
        and each October 1 thereafter, if a State has not enacted a 
        child safety restraint law, the Secretary shall transfer an 
        amount equal to 10 percent of the funds apportioned to the 
        State on that date under each of paragraphs (1), (3), and (4) 
        of section 104(b) to the apportionment of the State under 
        section 402 to be used as described in paragraph (1) of this 
        subsection.
    ``(c) Federal Share.--The Federal share of the cost of a project 
carried out with funds transferred under subsection (b) shall be 100 
percent.
    ``(d) Derivation of Amount To Be Transferred.--The amount to be 
transferred under subsection (b)(1), (b)(2), (b)(3), or (b)(4) may be 
derived from 1 or more of the following:
            ``(1) The apportionment of the State under section 
        104(b)(1).
            ``(2) The apportionment of the State under section 
        104(b)(3).
            ``(3) The apportionment of the State under section 
        104(b)(4).
    ``(f) Transfer of Obligation Authority.--
            ``(1) In general.--If the Secretary transfers under this 
        section any funds to the apportionment of a State under section 
        402 for a fiscal year, the Secretary shall transfer an amount, 
        determined under paragraph (2), of obligation authority 
        distributed for the fiscal year to the State for Federal-aid 
        highways and highway safety construction programs for carrying 
        out projects under section 402.
            ``(2) Amount.--The amount of obligation authority referred 
        to in paragraph (1) shall be determined by multiplying--
                    ``(A) the amount of funds transferred under this 
                section to the apportionment of the State under section 
                402 for the fiscal year; by
                    ``(B) the ratio that--
                            ``(i) the amount of obligation authority 
                        distributed for the fiscal year to the State 
                        for Federal-aid highways and highway safety 
                        construction programs; bears to
                            ``(ii) the total of the sums apportioned to 
                        the State for Federal-aid highways and highway 
                        safety construction programs (excluding sums 
                        not subject to any obligation limitation) for 
                        the fiscal year.
    ``(g) Limitation on Applicability of Obligation Limitation.--
Notwithstanding any other provision of law, no limitation on the total 
of obligations for highway safety programs under section 402 shall 
apply to funds transferred under this section to the apportionment of a 
State under such section.''.
    (b) Conforming Amendment.--The analysis for such subchapter is 
amended by adding at the end the following:

``165. Use of safety belts and child restraint systems by children.''.
Output: Amends Federal highway provisions to direct that, if by specified dates (starting on October 1, 2004) a State has not enacted a child safety restraint law, the Secretary of Transportation shall transfer specified percentages of State highway funds to implement a statewide comprehensive child and other passenger protection education program to promote safety, including education programs about proper seating positions for children in air bag equipped motor vehicles and instruction that increases the proper use of child restraint systems.