[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 1404 Introduced in Senate (IS)]

114th CONGRESS
  1st Session
                                S. 1404

 To free States to spend gas taxes on their transportation priorities.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 20, 2015

  Mr. Portman (for himself, Mr. McCain, Mr. Isakson, and Mr. Cornyn) 
introduced the following bill; which was read twice and referred to the 
               Committee on Environment and Public Works

_______________________________________________________________________

                                 A BILL


 
 To free States to spend gas taxes on their transportation priorities.

    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 ``State Transportation Flexibility 
Act''.

SEC. 2. DIRECT FEDERAL-AID HIGHWAY PROGRAM.

    (a) In General.--Chapter 1 of title 23, United States Code, is 
amended by inserting after section 610 the following:
``Sec. 611. 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 any 
Federal program relating to highways, including a Federal highway 
program under the Safe, Accountable, Flexible, Efficient Transportation 
Equity Act: A Legacy for Users (Public Law 109-59; 119 Stat. 1144), the 
Moving Ahead for Progress in the 21st Century Act (Public Law 112-141; 
126 Stat. 405), this title, or title 49.
    ``(b) Direct Federal-Aid Highway Program.--
            ``(1) In general.--Beginning in fiscal year 2015, the 
        Secretary shall carry out a direct Federal-aid highway program 
        in accordance with the requirements of this section under which 
        the legislature 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 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 an amount for that fiscal year 
                that is determined in accordance with subsection (e) 
                for that fiscal year.
            ``(2) Effect.--On making an election under paragraph (1), a 
        State--
                    ``(A) assumes all Federal obligations relating to 
                each program that is the subject of the election; and
                    ``(B) shall fulfill those obligations using the 
                amounts transferred to the State under subsection (e).
    ``(c) State Responsibility.--
            ``(1) In general.--The Governor of a State making an 
        election under subsection (b) shall--
                    ``(A) agree to maintain the Interstate System in 
                accordance with the current Interstate System program;
                    ``(B) submit 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) 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 Secretary 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.
            ``(2) No federal limitation on use of funds.--Except 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 any Federal 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 Preexisting 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 transferred to a State 
        under the direct Federal-aid highway 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 Account, 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 
        Secretary to fund contract authority for programs of the 
        National Highway Traffic Safety Administration and the Federal 
        Motor Carrier Safety Administration.
            ``(2) Transfers under program.--
                    ``(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 
                        estimates 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.--
                            ``(i) In general.--An adjustment under 
                        subparagraph (A)(ii) to any transfer may not 
                        exceed 5 percent of the transferred amount to 
                        which the adjustment relates.
                            ``(ii) Adjustment greater than 5 percent.--
                        If the adjustment required under subparagraph 
                        (A)(ii) exceeds the percentage described in 
                        clause (i), the excess shall be taken into 
                        account in making subsequent adjustments under 
                        subparagraph (A)(ii).
    ``(f) Application With Other Authority.--Any contract authority 
under this chapter (and any obligation limitation) authorized for a 
State for a fiscal year for which an election by that State is in 
effect under subsection (b)--
            ``(1) shall be rescinded or canceled; and
            ``(2) shall not be reallocated or distributed to any other 
        State under the Federal-aid highway 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 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 
        shall submit to the Secretary a statement identifying the 
        amount of funds the State plans to expend from State 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 appropriated to the Highway Trust Fund shall 
be transferred to a State under the program in the manner described in 
subsection (e)(1).''.
    (b) Conforming Amendment.--The analysis for title 23, United States 
Code, is amended by inserting after the item relating to section 610 
the following:

``611. Direct Federal-aid highway program.''.

SEC. 3. ALTERNATIVE FUNDING OF PUBLIC TRANSPORTATION PROGRAMS.

    (a) In General.--Chapter 53 of title 49, United States Code, is 
amended by adding at the end the following:
``Sec. 5341. Alternative funding of public transportation programs
    ``(a) Definitions.--In this section--
            ``(1) Alternative funding program.--The term `alternative 
        funding program' means the program established under subsection 
        (c).
            ``(2) Covered programs.--The term `covered programs' means 
        the programs authorized under--
                    ``(A) sections 5305, 5307, 5309, 5310, 5311, 5335, 
                5339, and 5340; and
                    ``(B) section 3038 of the Federal Transit Act of 
                1998 (49 U.S.C. 5310 note).
    ``(b) Election by State Not To Participate.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, a State may elect not to participate in all Federal 
        programs relating to public transportation funded under the 
        Mass Transit Account of the Highway Trust Fund, including the 
        Federal public transportation programs under the Safe, 
        Accountable, Flexible, Efficient Transportation Equity Act: A 
        Legacy for Users (Public Law 109-59; 119 Stat. 1144), the 
        Moving Ahead for Progress in the 21st Century Act (Public Law 
        112-141; 126 Stat. 405), title 23, or this title.
            ``(2) Effect.--On making an election under paragraph (1), a 
        State--
                    ``(A) assumes all Federal obligations relating to 
                each program that is the subject of the election; and
                    ``(B) shall fulfill those obligations using the 
                amounts transferred to the State under subsection (e).
    ``(c) Public Transportation Program.--
            ``(1) Program established.--Beginning in fiscal year 2015, 
        the Secretary shall carry out an alternative funding program 
        under which the legislature 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 receive 
                amounts apportioned or allocated to the State under the 
                covered programs for the fiscal year to which the 
                election relates; and
                    ``(B) to receive an amount for that fiscal year 
                that is determined in accordance with subsection (e).
            ``(2) Program requirements.--
                    ``(A) In general.--The Governor 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 
                                requirements 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 to the Secretary an annual 
                        report on the use of amounts received under the 
                        alternative funding program, and to make the 
                        report available to the public in an easily 
                        accessible format.
                    ``(B) No federal 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 Preexisting 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 transferred to a State 
        under the alternative funding program for a fiscal year shall 
        be the portion of the taxes transferred to the Mass Transit 
        Account of the Highway Trust Fund under section 9503(e) of the 
        Internal Revenue Code of 1986, for that fiscal year, that is 
        attributable to highway users in that State during that fiscal 
        year.
            ``(2) Transfers.--
                    ``(A) In general.--Transfers under the program--
                            ``(i) shall be made at the same time as 
                        transfers to the Mass Transit Account of the 
                        Highway Trust Fund are made by the Secretary of 
                        the Treasury; and
                            ``(ii) shall be made on the basis of 
                        estimates 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.--
                            ``(i) In general.--An adjustment under 
                        subparagraph (A)(ii) to any transfer may not 
                        exceed 5 percent of the transferred amount to 
                        which the adjustment relates.
                            ``(ii) Adjustment greater than 5 percent.--
                        If the adjustment required under subparagraph 
                        (A)(ii) exceeds the percentage described in 
                        clause (i), the excess shall be taken into 
                        account in making subsequent adjustments under 
                        subparagraph (A)(ii).
    ``(f) Contract Authority.--There shall be rescinded or canceled any 
contract authority under this chapter (and any obligation limitation) 
authorized 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 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 paragraph (1) shall 
        include a statement identifying the amount of funds the State 
        plans to expend from State sources for projects funded under 
        the alternative funding program, during the fiscal year for 
        which the State elects to participate in the alternative 
        funding program.
    ``(h) Treatment of General Revenues.--For purposes of this section, 
any general revenue funds appropriated 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.''.
                                 <all>