[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 3134 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 3134

 To amend titles 23 and 49, United States Code, to encourage economic 
growth in the United States by increasing transportation investments in 
                  rural areas, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 17, 2002

   Mr. Baucus (for himself, Mr. Crapo, and Mr. Craig) introduced the 
 following bill; which was read twice and referred to the Committee on 
                      Environment and Public Works

_______________________________________________________________________

                                 A BILL


 
 To amend titles 23 and 49, United States Code, to encourage economic 
growth in the United States by increasing transportation investments in 
                  rural areas, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Maximum Economic Growth for America 
Through Rural Transportation Investment Act'' or the ``MEGA Rural 
Act''.

SEC. 2. ASSISTANCE IN OVERCOMING ECONOMIC AND DEMOGRAPHIC BARRIERS.

    (a) In General.--Title 23, United States Code, is amended by 
inserting after section 138 the following:
``Sec. 139. Assistance in overcoming economic and demographic barriers
    ``(a) Definitions.--In this section:
            ``(1) High-growth state.--The term `high-growth State' 
        means a State that has a population according to the 2000 
        Census that is at least 25 percent greater than the population 
        for the State according to the 1990 Census.
            ``(2) High-population-density state.--The term `high-
        population-density State' means a State in which the number of 
        individuals per principal arterial mile is greater than 75 
        percent of the number of individuals per principal arterial 
        mile in the 50 States and the District of Columbia, as 
        determined using population according to the 2000 Census.
            ``(3) Highway statistics.--
                    ``(A) In general.--The term `Highway Statistics' 
                means the Highway Statistics published by the Federal 
                Highway Administration for the most recent calendar or 
                fiscal year for which data are available, which most 
                recent calendar or fiscal year shall be determined as 
                of the first day of the fiscal year for which any 
                calculation using the Highway Statistics is made.
                    ``(B) Terms.--Any reference to a term that is used 
                in the Highway Statistics is a reference to the term as 
                used in the Highway Statistics as of September 30, 
                2002.
            ``(4) Low-income state.--The term `low-income State' means 
        a State that, according to Table PS-1 of the Highway 
        Statistics, has a per capita income that is less than the 
        national average per capita income.
            ``(5) Low-population-density state.--The term `low-
        population-density State' means a State in which the number of 
        individuals per principal arterial mile is less than 75 percent 
        of the number of individuals per principal arterial mile in the 
        50 States and the District of Columbia, as determined using 
        population according to the 2000 Census.
            ``(6) National average per capita income.--The term 
        `national average per capita income' means the average per 
        capita income for the 50 States and the District of Columbia, 
        as specified in the Highway Statistics.
            ``(7) Principal arterial miles.--The term `principal 
        arterial miles', with respect to a State, means the principal 
        arterial miles (including Interstate and other expressway or 
        freeway system miles) in the State, as specified in Table HM-20 
        of the Highway Statistics.
            ``(8) State.--The term `State' means each of the 50 States.
            ``(9) State with extensive road ownership.--The term `State 
        with extensive road ownership' means a State that owns more 
        than 80 percent of the total Federal-aid and non-Federal-aid 
        mileage in the State according to Table HM-14 of the Highway 
        Statistics.
    ``(b) Establishment.--There is established a program to assist 
States that face certain economic and demographic barriers in meeting 
transportation needs.
    ``(c) Allocation of Funds.--For each of fiscal years 2004 through 
2009, funds made available to carry out this section shall be allocated 
as follows:
            ``(1) Low-income states.--For each fiscal year, each low-
        income State shall receive an allocation under this paragraph 
        that is equal to the product obtained by multiplying--
                    ``(A) $600,000,000; and
                    ``(B) the ratio that--
                            ``(i) the difference between--
                                    ``(I) the national average per 
                                capita income; and
                                    ``(II) the per capita income of the 
                                low-income State; bears to
                            ``(ii) the sum of the differences 
                        determined under clause (i) for all low-income 
                        States.
            ``(2) High-growth states.--For each fiscal year, each high-
        growth State shall receive an allocation under this paragraph 
        that is equal to the product obtained by multiplying--
                    ``(A) $75,000,000; and
                    ``(B) the ratio that--
                            ``(i) the percentage by which the 
                        population of the high-growth State according 
                        to the 2000 Census exceeds the population of 
                        the high-growth State according to the 1990 
                        Census; bears to
                            ``(ii) the sum of the percentages 
                        determined under clause (i) for all high-growth 
                        States.
            ``(3) Low-population-density states.--
                    ``(A) In general.--Subject to subparagraph (B), for 
                each fiscal year, each low-population-density State 
                shall receive an allocation under this paragraph that 
                is equal to the product obtained by multiplying--
                            ``(i) $625,000,000; and
                            ``(ii) the ratio that--
                                    ``(I) the quotient obtained by 
                                dividing--
                                            ``(aa) the number of 
                                        principal arterial miles in the 
                                        State; by
                                            ``(bb) the population of 
                                        the low-population-density 
                                        State according to the 2000 
                                        Census; bears to
                                    ``(II) the sum of the quotients 
                                determined under subclause (I) for all 
                                low-population-density States.
                    ``(B) Maximum allocation.--
                            ``(i) In general.--If the allocation for a 
                        low-population-density State under subparagraph 
                        (A) is greater than $35,000,000, the allocation 
                        of the low-population-density State shall be 
                        reduced to $35,000,000.
                            ``(ii) Use of excess allocations.--
                                    ``(I) Reallocation.--Subject to 
                                subclause (II), the funds in addition 
                                to the $35,000,000 that would have been 
                                allocated to a low-population-density 
                                State but for clause (i) shall be 
                                reallocated among the low-population-
                                density States that were allocated less 
                                than $35,000,000 under subparagraph (A) 
                                in accordance with the proportionate 
                                shares of those low-population-density 
                                States under subparagraph (A).
                                    ``(II) Additional reallocations.--
                                If a reallocation under subclause (I) 
                                would result in the receipt by any low-
                                population-density State of an amount 
                                greater than $35,000,000 under this 
                                paragraph--
                                            ``(aa) the allocation for 
                                        the low-population-density 
                                        State shall be reduced to 
                                        $35,000,000; and
                                            ``(bb) the amounts in 
                                        excess of $35,000,000 shall be 
                                        subject to 1 or more further 
                                        reallocations in accordance 
                                        with that subclause so that no 
                                        low-population-density State is 
                                        allocated more than $35,000,000 
                                        under this paragraph.
            ``(4) High-population-density states.--
                    ``(A) In general.--Subject to subparagraph (B), for 
                each fiscal year, each high-population-density State 
                shall receive an allocation under this paragraph that 
                is equal to the product obtained by multiplying--
                            ``(i) $625,000,000; and
                            ``(ii) the ratio that--
                                    ``(I) the quotient obtained by 
                                dividing--
                                            ``(aa) the population of 
                                        the high-population-density 
                                        State according to the 2000 
                                        Census; by
                                            ``(bb) the number of 
                                        principal arterial miles in the 
                                        State; bears to
                                    ``(II) the sum of the quotients 
                                determined under subclause (I) for all 
                                high-population-density States.
                    ``(B) Maximum allocation.--
                            ``(i) In general.--If the allocation for a 
                        high-population-density State under 
                        subparagraph (A) is greater than $35,000,000, 
                        the allocation of the high-population-density 
                        State shall be reduced to $35,000,000.
                            ``(ii) Use of excess allocations.--
                                    ``(I) Reallocation.--Subject to 
                                subclause (II), the funds in addition 
                                to the $35,000,000 that would have been 
                                allocated to a high-population-density 
                                State but for clause (i) shall be 
                                reallocated among the high-population-
                                density States that were allocated less 
                                than $35,000,000 under subparagraph (A) 
                                in accordance with the proportionate 
                                shares of those high-population-density 
                                States under subparagraph (A).
                                    ``(II) Additional reallocations.--
                                If a reallocation under subclause (I) 
                                would result in the receipt by any 
                                high-population-density State of an 
                                amount greater than $35,000,000 under 
                                this paragraph--
                                            ``(aa) the allocation for 
                                        the high-population-density 
                                        State shall be reduced to 
                                        $35,000,000; and
                                            ``(bb) the amounts in 
                                        excess of $35,000,000 shall be 
                                        subject to 1 or more further 
                                        reallocations in accordance 
                                        with that subclause so that no 
                                        high-population-density State 
                                        is allocated more than 
                                        $35,000,000 under this 
                                        paragraph.
            ``(5) States with extensive road ownership.--For each 
        fiscal year, each State with extensive road ownership shall 
        receive an allocation under this paragraph that is equal to the 
        product obtained by multiplying--
                    ``(A) $75,000,000; and
                    ``(B) the ratio that--
                            ``(i) the total Federal-aid and non-
                        Federal-aid mileage owned by each State with 
extensive road ownership according to Table HM-14 of the Highway 
Statistics; bears to
                            ``(ii) the sum of the mileages determined 
                        under clause (i) for all States with extensive 
                        road ownership.
    ``(d) Treatment of Allocated Funds.--
            ``(1) In general.--Subject to paragraph (2), funds 
        allocated to a State under this section for a fiscal year shall 
        be treated for program administrative purposes as if the 
        funds--
                    ``(A) were funds apportioned to the State under 
                sections 104(b)(1), 104(b)(2), 104(b)(3), 104(b)(4), 
                and 144; and
                    ``(B) were apportioned to the State in the same 
                ratio that the State is apportioned funds under the 
                sections specified in paragraph (1) for the fiscal 
                year.
            ``(2) Program administrative purposes.--Program 
        administrative purposes referred to in paragraph (1)--
                    ``(A) include--
                            ``(i) the Federal share;
                            ``(ii) availability for obligation; and
                            ``(iii) except as provided in subparagraph 
                        (B), applicability of deductions; and
                    ``(B) exclude--
                            ``(i) calculation of the minimum guarantee 
                        under section 105; and
                            ``(ii) applicability of the deduction for 
                        the future strategic highway research program 
                        under section 104(m).''.
    (b) Assistance in Overcoming Economic and Demographic Barriers.--
For the program to provide assistance in overcoming economic and 
demographic barriers under section 139 of title 23, United States Code, 
there is authorized to be appropriated out of the Highway Trust Fund 
(other than the Mass Transit Account) $2,000,000,000 for each of fiscal 
years 2004 through 2009.
    (c) Conforming Amendment.--The analysis for subchapter I of chapter 
1 of title 23, United States Code, is amended by inserting after the 
item relating to section 138 the following:

``139. Assistance in overcoming economic and demographic barriers.''.

SEC. 3. RURAL LOCAL ROADS SAFETY PILOT PROGRAM.

    (a) Definitions.--In this section:
            (1) In general.--
                    (A) Eligible activity.--
                            (i) In general.--The term ``eligible 
                        activity'' means a project or activity that--
                                    (I) is carried out only on public 
                                roads that are functionally classified 
                                as rural local roads or rural minor 
                                collectors (and is not carried out on a 
                                Federal-aid highway); and
                                    (II) provides a safety benefit.
                            (ii) Inclusions.--The term ``eligible 
                        activity'' includes--
                                    (I) a project or program such as 
                                those described in section 133(d)(1) of 
                                title 23, United States Code;
                                    (II) road surfacing or resurfacing;
                                    (III) improvement or maintenance of 
                                local bridges;
                                    (IV) road reconstruction or 
                                improvement;
                                    (V) installation or improvement of 
                                signage, signals, or lighting;
                                    (VI) a maintenance activity that 
                                provides a safety benefit (including 
                                repair work, striping, surface marking, 
                                or a similar safety precaution); or
                                    (VII) acquisition of materials for 
                                use in projects described in any of 
                                subclauses (I) through (VI).
                    (B) Program.--The term ``program'' means the rural 
                local roads safety pilot program established under 
                subsection (b).
                    (C) State.--The term ``State'' does not include the 
                District of Columbia or Puerto Rico.
            (2) Other terms.--Except as otherwise provided, terms used 
        in this section have the meanings given those terms in title 
        23, United States Code.
    (b) Establishment.--The Secretary shall establish a rural local 
roads safety pilot program to carry out eligible activities.
    (c) Allocation of Funds With Respect to States.--For each fiscal 
year, funds made available to carry out this section shall be allocated 
by the Secretary to the State transportation department in each of the 
States in the ratio that--
            (1) the relative share of the State under section 105 of 
        title 23, United States Code, for a fiscal year; bears to
            (2) the total shares of all 50 States under that section 
        for the fiscal year.
    (d) Allocation of Funds Within States.--Each State that receives 
funds under subsection (c) shall allocate those funds within the State 
as follows:
            (1) Counties.--Except as provided in paragraph (2) and 
        subject to paragraph (3), a State shall allocate to each county 
        in the State an amount in the ratio that--
                    (A) the public road miles within the county that 
                are functionally classified as rural local roads or 
                rural minor collectors; bears to
                    (B) the total of all public road miles within all 
                counties in the State that are functionally classified 
                as rural local roads or rural minor collectors.
            (2) Alternative formula for allocation.--Paragraph (1) 
        shall not apply to a State if the State transportation 
        department certifies to the Secretary that the State has in 
        effect an alternative formula or system for allocation of funds 
        received under subsection (c) (including an alternative formula 
        or system that permits allocations to political subdivisions or 
        groups of political subdivisions, in addition to individual 
        counties, in the State) that--
                    (A) was developed under the authority of State law; 
                and
                    (B) provides that funds allocated to the State 
                transportation department under this section will be 
                allocated within the State in accordance with a program 
                that includes selection by local governments of 
                eligible activities funded under this section.
            (3) Administrative expenses.--Before allocating amounts 
        under paragraph (1) or (2), as applicable, a State 
        transportation department may retain not more than 10 percent 
        of an amount allocated to the State transportation department 
        under subsection (c) for administrative costs incurred in 
        carrying out this section.
    (e) Project Selection.--
            (1) By county.--If an allocation of funds within a State is 
        made under subsection (d)(1), counties within the State to 
        which the funds are allocated shall select eligible activities 
        to be carried out using the funds.
            (2) By state alternative.--If an allocation of funds within 
        a State is made under subsection (d)(2), eligible activities to 
        be carried out using the funds shall be selected in accordance 
        with the State alternative.
    (f) Federal Share.--The Federal share of the cost of an eligible 
activity carried out under this section shall be 100 percent.
    (g) Report.--Not later than January 1, 2009, after providing 
States, local governments, and other interested parties an opportunity 
for comment, the Secretary shall submit to the Committee on Environment 
and Public Works of the Senate and the Committee on Transportation and 
Infrastructure of the House of Representatives a report that--
            (1) describes progress made in carrying out the program; 
        and
            (2) includes recommendations as to whether the program 
        should be continued or modified.
    (h) Contract Authority.--Funds made available to carry out this 
section shall be available for obligation in the same manner as if the 
funds were apportioned under chapter 1 of title 23, United States Code, 
except that the Federal share of the cost of an eligible activity under 
this section shall be determined in accordance with this section.
    (i) Authorization of Appropriations.--There is authorized to be 
appropriated out of the Highway Trust Fund (other than the Mass Transit 
Account) to carry out this section $200,000,000 for each of fiscal 
years 2004 through 2009.

SEC. 4. MINIMUM LEVEL OF FUNDING FOR ELDERLY AND DISABLED PROGRAM.

    Section 5310 of title 49, United States Code, is amended--
            (1) in subsection (b), in the first sentence, by striking 
        the period at the end and inserting the following: ``, provided 
        that, for fiscal years 2004, 2005, and 2006, each State shall 
        receive annually, of the amounts apportioned under this 
        section, a minimum of double the amount apportioned to the 
        State in fiscal year 2003 or $1,000,000, whichever is greater, 
        and that for fiscal years 2007, 2008, and 2009, each State 
        shall receive annually, of the amounts apportioned under this 
        section, a minimum equal to the minimum required to be 
        apportioned to the State for fiscal year 2006 plus $500,000.''; 
        and
            (2) by adding at the end the following:
    ``(k) Amounts for Operating Assistance.--Amounts made available 
under this section may be used for operating assistance.
    ``(l) Available Funds.--Notwithstanding any other provision of law, 
of the aggregate amounts made available by and appropriated under this 
chapter, the amount made available to provide transportation services 
to elderly individuals and individuals with disabilities under this 
section in each of fiscal years 2004 through 2009, shall be not less 
than the amount necessary to match the minimum apportionment levels 
required by subsection (b).''.

SEC. 5. MINIMUM LEVEL OF FUNDING FOR RURAL PROGRAM.

    Section 5311 of title 49, United States Code, is amended--
            (1) in subsection (c), in the first sentence, by striking 
        the period at the end and inserting the following: ``, provided 
        that none of the 50 States shall receive, from the amounts 
        annually apportioned under this section, an apportionment of 
        less than $5,000,000 for each of fiscal years 2004, 2005, and 
        2006, and $5,500,000 for each of fiscal years 2007, 2008, and 
        2009.''; and
            (2) by adding at the end the following:
    ``(k) Amounts.--Notwithstanding any other provision of law, of the 
aggregate amounts made available by and appropriated under this 
chapter, the amount made available for the program established by this 
section in each of fiscal years 2004 through 2009 shall be not less 
than the sum of--
            ``(1) the amount made available for all States for such 
        purpose for fiscal year 2003; and
            ``(2)(A) for each of fiscal years 2004, 2005, and 2006, the 
        amount equal to the difference between $5,000,000 and the 
        apportionment for fiscal year 2003, for each of those 
        individual States that were apportioned less than $5,000,000 
        under this section for fiscal year 2003; or
            ``(B) for each of fiscal years 2007, 2008, and 2009, the 
        amount equal to the difference between $5,500,000 and the 
        apportionment for fiscal year 2003, for each of those 
        individual States that were apportioned less than $5,500,000 
        under this section for fiscal year 2003.''.

SEC. 6. ESSENTIAL BUS SERVICE.

    (a) In General.--Chapter 53 of title 49, United States Code, is 
amended by adding at the end the following:
``Sec. 5339. Essential bus service
    ``(a) In General.--The Secretary shall establish a program under 
which States shall provide essential bus service between rural areas 
and primary airports, as defined in section 47102, and between rural 
areas and stations for intercity passenger rail service, and 
appropriate intermediate or nearby points.
    ``(b) Eligible Activities.--Eligible activities under the program 
established by this section shall include--
            ``(1) planning and marketing for intercity bus 
        transportation;
            ``(2) capital grants for intercity bus shelters, park and 
        ride facilities, and joint use facilities;
            ``(3) operating grants, including direct assistance, 
        purchase of service agreements, user-side subsidies, 
        demonstration projects, and other means; and
            ``(4) enhancement of connections between bus service and 
        commercial air passenger service and intercity passenger rail 
        service.
    ``(c) Availability of Funds.--Amounts made available pursuant to 
this section shall remain available until expended.
    ``(d) Relationship to Section 5311.--Amounts for the program 
established by this section shall be apportioned to the States in the 
same proportion as amounts apportioned to the States under section 
5311. Section 5311(j) applies to this section.
    ``(e) Funds.--Notwithstanding any other provision of law, of the 
aggregate amounts made available by and appropriated under this 
chapter--
            ``(1) for fiscal years 2004, 2005, and 2006, $30,000,000 of 
        the total for each fiscal year shall be for the implementation 
        of this section; and
            ``(2) for fiscal years 2007, 2008, and 2009, $35,000,000 of 
        the total for each fiscal year shall be for the implementation 
        of this section.''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 53 of title 49, United States Code, is amended by adding at the 
end the following:

``5339. Essential bus service.''.

SEC. 7. MINIMUM LEVEL OF FUNDING FOR URBANIZED AREAS WITH A POPULATION 
              OF LESS THAN 200,000.

    (a) Minimum Apportionment.--Section 5336(a)(1) of title 49, United 
States Code, is amended by striking ``mile; and'' and inserting the 
following: ``mile,
        provided that the apportionments under this paragraph shall be 
        modified to the extent required so that urbanized areas that 
        are eligible under this paragraph and are located in a State in 
        which all urbanized areas in the State eligible under this 
        paragraph collectively receive apportionments totaling less 
        than $5,000,000 in any of fiscal years 2004, 2005, or 2006, or 
        less than $5,500,000 in any of fiscal years 2007, 2008, or 
        2009, shall each have their apportionments increased, 
        proportionately, to the extent that, collectively, all of the 
        urbanized areas in the State that are eligible under this 
        paragraph receive, of the amounts apportioned annually under 
        this paragraph, $5,000,000 for each of fiscal years 2004, 2005, 
        and 2006, and $5,500,000 for each of fiscal years 2007, 2008, 
        and 2009; and''.
    (b) Funds.--Section 5307 of title 49, United States Code, is 
amended by adding at the end the following:
    ``(o) Funds.--Notwithstanding any other provision of law, of the 
aggregate amounts made available by and appropriated under this 
chapter, in each of fiscal years 2004 through 2009, the amount made 
available for the program established by this section shall be not less 
than the sum of--
            ``(1) the amount made available for such purpose for fiscal 
        year 2003; and
            ``(2) the amount equal to the sum of the increase in 
        apportionments for that fiscal year over fiscal year 2003, to 
        urbanized areas with a population of less than 200,000, in 
        affected States, attributable to the operation of section 
        5336(a)(1).''.

SEC. 8. LEVEL PLAYING FIELD FOR GOVERNMENT SHARE.

    (a) In General.--Chapter 53 of title 49, United States Code (as 
amended by section 6) is amended by adding at the end the following:
``Sec. 5340. Government share
    ``With respect to amounts apportioned or otherwise distributed for 
fiscal year 2004 and each subsequent fiscal year, the Government share 
of eligible transit project costs or eligible operating costs, shall be 
the greater of--
            ``(1) the share applicable under other provisions of this 
        chapter; or
            ``(2) the share that would apply, in the State in which the 
        transit project or operation is located, to a highway project 
        under section 133 of title 23.''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 53 of title 49, United States Code, is amended by adding at the 
end the following:

``5340. Government share.''.

SEC. 9. INTEREST CREDITED TO MASS TRANSIT ACCOUNT.

    Section 9503(f)(2) of the Internal Revenue Code of 1986 (relating 
to the Highway Trust Fund) is amended by striking the period at the end 
and inserting the following: ``, provided that after September 30, 
2003, interest accruing on the balance in the Mass Transit Account 
shall be credited to such account.''.
                                 <all>