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108th CONGRESS
1st Session
H. R. 2914
To amend title 49, United States Code, to provide for the establishment
of a flexibility incentive grant program.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 25, 2003
Ms. Carson of Indiana (for herself, Mr. Owens, Ms. Jackson-Lee of
Texas, Mrs. Tauscher, Mr. Rangel, Mr. Grijalva, Mr. Honda, Mr. Capuano,
Ms. Millender-McDonald, Mr. Case, Mr. Filner, and Mr. Boswell)
introduced the following bill; which was referred to the Committee on
Transportation and Infrastructure
_______________________________________________________________________
A BILL
To amend title 49, United States Code, to provide for the establishment
of a flexibility incentive grant program.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. FLEXIBILITY INCENTIVE GRANT PILOT PROGRAM.
(a) In General.--Chapter 53 of title 49, United States Code, is
amended by adding at the end the following:
``Sec. 5339. Flexibility Incentive Grant Pilot Program
``(a) Purpose.--The purpose of this section is to provide
incentives to encourage States to establish new sources of revenue for
transit projects and services and to reward States for creating more
flexibility in the use of their existing transportation funds.
``(b) Establishment of Program.--The Secretary of Transportation
shall establish a flexibility incentive grant pilot program in
accordance with this section.
``(c) Selection Process and Criteria.--Not later than 90 days after
the date of enactment of this section, the Secretary shall establish a
process and criteria for selecting States to participate in the pilot
program. Any State may apply under the process to participate in the
pilot program.
``(d) Selection of Participating States.--The Secretary shall
select States to participate in the pilot program under the selection
process, and based on the selection criteria, established by the
Secretary.
``(e) Determinations by the Secretary.--Not later than September 1
of each of calendar years 2004 through 2009, the Secretary shall
determine which of the States selected to participate in the pilot
program increased the aggregate amount of State funds (excluding funds
from Federal sources) that the State expended on transit projects and
services from the State's second fiscal year preceding such September 1
to the State's first fiscal year preceding such September 1, the amount
of such increase, and the percentage of such increase over the State's
second preceding fiscal year.
``(f) Grants for Increased Transit Funding.--
``(1) States with an increase of 10 percent or more.--
Subject to paragraph (2) and subsection (h)--
``(A) the Secretary shall make a grant for each of
fiscal years 2006 through 2010 to each State selected
to participate in the pilot program whose percentage
increase in expenditures for transit projects and
services over the preceding fiscal year of the State
was 10 percent or more, as determined by the Secretary
under subsection (e); and
``(B) the amount of the grant shall be equal to the
increase in the aggregate amount of State funds
(excluding funds from Federal sources) that the State
expended on transit projects and services from the
second preceding fiscal year of the State to the first
preceding fiscal year of the State, as determined by
the Secretary under subsection (e); except that
the amount of the grant may not exceed $5,000,000.
``(2) Large states with an increase of 1 percent or more.--
Subject to subsection (h), for each of fiscal years 2006
through 2010, the Secretary shall make a grant of $10,000,000
to each State selected to participate in the pilot program
whose percentage increase in expenditures for transit projects
and services over the preceding fiscal year of the State was 1
percent or more, and whose aggregate expenditures for such
projects and services in the State's preceding fiscal year was
more than $1,000,000,000, as determined by the Secretary under
subsection (e).
``(g) States Creating Flexible Transportation Funds.--
``(1) New dedicated source of revenue.--
``(A) In general.--Subject to subsection (h), for
each of fiscal years 2004 through 2010, the Secretary
shall make a grant of $10,000,000 to each State that
implemented in the first preceding fiscal year of the
State a dedicated source of revenue for carrying out
only transit projects and services that the Secretary--
``(i) determines was not in effect in the
second preceding fiscal year of the State; and
``(ii) projects will result in an increase
of 10 percent in State funds available for
expenditure on such projects and services
within 2 years after the date of such
implementation.
``(B) Dedicated source of revenues defined.--For
purposes of this paragraph, the term `dedicated source
of revenue' may include the dedication of a State motor
fuels tax or sales tax, interest on existing highway
funds, motor vehicle excise tax, tolls, loans to be
made out of highway funds, and such other sources of
revenue as the Secretary determines.
``(2) Unrestricted use of highway funds.--Subject to
subsection (h), for each of fiscal years 2004 through 2010, the
Secretary shall make a grant of $10,000,000 to each State that
in the preceding fiscal year of the State amended State law or
the State constitution to allow funds that were restricted for
highway purposes only to be used for transit projects and
services as well as highway purposes.
``(h) Limitation for States Eligibility for Multiple Grants.--If
the Secretary determines that a State is eligible for a grant under
more than one of subsections (f)(1), (f)(2), (g)(1), and (g)(2) for a
fiscal year, the Secretary may only make the grant to the State that is
for the greatest amount the State is eligible for under such
subsections.
``(i) Use of Grants.--A State may obligate funds granted to it
under this section for any project or activity eligible for assistance
under title 23 or chapter 53.
``(j) Grant Requirements.--Except as otherwise provided in this
section--
``(1) a grant under this section being used for a transit
project or activity shall be subject to all of the terms and
conditions to which a grant made under section 5307 is subject;
and
``(2) a grant under this section being used for a highway
project or activity shall be subject to all of the terms and
conditions that would be applicable to such project or activity
if such project or activity were being carried out under title
23, United States Code.
``(k) Federal Share.--The Federal share of the cost of a project or
activity funded under this section shall be 100 percent.
``(l) Authorizations of Appropriations.--There are authorized to be
appropriated to carry out this section for each of fiscal years 2004
through 2010 $80,000,000. Such sums shall remain available until
expended.
``(m) Program Evaluation.--Not later than 5 years after the date of
enactment of this section, the Secretary shall--
``(1) conduct a study to evaluate the pilot program
authorized by this section; and
``(2) submit to the Committee on Transportation and
Infrastructure of the House of Representatives and the
Committee on Banking, Housing and Urban Affairs of the Senate a
report describing the results of the study.''.
(b) Conforming Amendment.--The analysis for such chapter is amended
by adding at the end the following:
``5539. Flexibility incentive grant pilot program.''.
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