II 112th CONGRESS 1st Session S. 252 IN THE SENATE OF THE UNITED STATES Mrs. Hutchison introduced the following bill; which was read twice and referred to the Committee on Environment and Public Works A BILL To permit a State to elect to receive the contributions of the State to the Highway Trust Fund in lieu of the Federal-aid highway program apportionment of the State for the subsequent fiscal year, and for other purposes.

1.

Short title

This Act may be cited as the Highway Fairness and Reform Act of 2011.

2.

Election to receive State contribution to Highway Trust Fund in lieu of participating in 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)

Program

(1)

In general

Beginning with fiscal year 2011, the Secretary shall carry out a direct Federal-aid highway program in accordance with this section under which the Governor or chief executive officer of a State may elect, not less than 90 days before the beginning of each fiscal year— (A)to have the State waive the right of the State to receive amounts apportioned or allocated to the State under the Federal-aid highway program for the fiscal year to which the election relates; and (B)to receive instead the amount determined under subsection (d) for that fiscal year. (2)

Form and nature of election

An election under this subsection shall be made in such form and manner as the Secretary may require and shall be irrevocable. (b)

State responsibility

(1)

In general

The Secretary shall accept an election under subsection (a) if the Secretary determines that the State making the election— (A)has an Interstate maintenance program and agrees to maintain the portions of the Interstate System in the State in accordance with that program; (B)submits a plan to the Secretary describing— (i)the purposes, projects, and uses to which amounts received under the program will be put; and (ii)which programmatic requirements of this title the State elects to continue; (C)agrees to obligate or expend amounts received under the program exclusively for projects that would be eligible for funding under section 133(b) if the State were not participating in the program; and (D)agrees to report annually to the Secretary on the use of amounts received under the program and to make the report available to the public in an easily accessible format. (2)

Safety requirements

The Secretary may determine that requirements important for transportation safety continue to apply to a State that makes an election under subsection (a). (3)

Surface transportation program

A State that makes an election under subsection (a) shall continue to suballocate funds to urbanized areas and other areas using the formulae and rules under section 133(d)(3). (4)

No limitation on use of funds

Except as provided in paragraphs (1), (2), and (3), the expenditure or obligation of funds received by the State under the program is not subject to regulation under this title or title 49. (c)

Effect on pre-Existing obligations

The making of an election under subsection (a) shall not affect any obligation, 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 (a) is not in effect. (d)

Transfers

(1)

In general

The amount to be transferred to a State under the program for a fiscal year shall be the portion of the tax revenue appropriated to the Highway Trust Fund under section 9503 of the Internal Revenue Code of 1986, other than for the Mass Transit Account, for a fiscal year for which an election is in effect under subsection (a) that is attributable to highway users in that State during that fiscal year, reduced by a pro rata share withheld by the Secretary to fund contract authority for programs of the National Highway Traffic Safety Administration and the Federal Motor Carrier Safety Administration. (2)

General fund amounts

For purposes of paragraph (1), any amounts deposited in or credited to the Highway Trust Fund from the general fund of the Treasury shall be treated as if the amounts were amounts received as tax revenue and appropriated to the Fund. (3)

Transfers

(A)

In general

Transfers under the program shall be made— (i)at the same time as deposits to the Highway Trust Fund are made by the Secretary of the Treasury; and (ii)on the basis of estimates by the Secretary, in consultation with the Secretary of the Treasury. (B)

Adjustments

Subject to subparagraph (C), proper adjustments shall be made in amounts subsequently transferred under this paragraph to the extent prior estimates were in excess of, or less than, the amounts required to be transferred. (C)

Limitation

With respect to an adjustment under subparagraph (B) to any transfer— (i)the adjustment may not exceed 5 percent of the transferred amount to which the adjustment relates; and (ii)if the adjustment required exceeds that percentage, the excess shall be taken into account in making subsequent adjustments under that subparagraph. (e)

Application with other authority

The Secretary shall rescind or cancel any contract authority 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 (a).

. (b)

Conforming amendment

The analysis for chapter 1 of title 23, United States Code, is amended by inserting after the item relating to section 149 the following: 150. Direct Federal-aid highway program. .