text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Highway Fairness and Reform Act of 
  2009''.
  
  SEC. 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) In General.--Beginning with fiscal year 2011, the Secretary 
  shall carry out a direct Federal-aid highway program in accordance with 
  the requirements of this section. Under the program, the Governor or 
  chief executive officer of a State may elect, not less than 90 days 
  before the beginning of the fiscal year, to have the State waive its 
  right to receive amounts apportioned or allocated to it under the 
  Federal-aid highway program for the fiscal year to which the election 
  relates; and to receive instead the amount determined under subsection 
  (d) for that fiscal year. The election 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--
                      ``(A) has an interstate maintenance program and 
                  agrees to maintain the interstate 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) of this 
                  title 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) of this title.
              ``(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 are 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 
          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 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 
          they were taxes appropriated to the Fund.
              ``(3) Transfers.--
                      ``(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;
                              ``(ii) shall be made on the basis of 
                          estimates by the Secretary, in consultation 
                          with the Secretary of the Treasury, 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.--An adjustment under subparagraph 
                  (A)(ii) to any transfer may not exceed 5 percent of the 
                  transferred amount to which the adjustment relates. If 
                  the adjustment required under subparagraph (A)(ii) 
                  exceeds that percentage, the excess shall be taken into 
                  account in making subsequent adjustments under 
                  subparagraph (A)(ii).
      ``(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) Clerical Amendment.--The chapter 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.''.
target: Highway Fairness and Reform Act of 2009 - Directs the Secretary of Transportation, beginning with FY2011, to carry out a direct federal-aid highway program to permit a state governor or chief executive officer, at least 90 days before the beginning of a fiscal year, to elect to: (1) waive the state's right to receive apportioned or allocated funds under the federal-aid highway program; and (2) receive instead a prorated amount of the taxes appropriated to the Highway Trust Fund (other than from the Mass Transit Account) which are attributable to highway users in the state. Requires a pro rata reduction of such tax-equivalent amount in order to fund contract authority for programs of the National Highway Traffic Safety Administration (NHTSA) and the Federal Motor Carrier Safety Administration (FMCSA).
  
  Requires the Secretary to accept a state's election if: (1) the state has an interstate maintenance program; (2) it submits a plan describing the purposes, projects, and uses to which such amounts will be put and the federal-aid highway programmatic requirements the state elects to continue; (3) the state agrees to obligate program amounts exclusively for projects that would be eligible for surface transportation program funding; and (4) it continues to suballocate surface transportation program funds to urbanized and other areas using certain formulae and rules.
feat_title: A bill to permit a State to elect to receive the State's contributions to the Highway Trust Fund in lieu of its Federal-aid Highway program apportionment for the next fiscal year, and for other purposes.