S.Amdt. 2410

1. Adds SEC. 11210. PROJECT ADMINISTRATION ACCELERATION PILOT PROGRAM on page 170, line 24

   Adds a sectionPrinted page

   Inserted: SEC. 11210. PROJECT ADMINISTRATION ACCELERATION PILOT PROGRAM.

   Inserted: (a) Establishment.--

   Inserted: (1) In general.--The Secretary shall carry out a project acceleration pilot program (referred to in this section as the "program") to allow States to test the ability of local governments by assigning to the local governments the administrative responsibilities of direct recipients of Federal-aid highway funding.

   Inserted: (2) Assumption of responsibility.--

   Inserted: (A) In general.--Subject to the requirements of this section, a State may assign, and a local government may assume, the responsibilities of the State with respect to 1 or more highway projects within the jurisdiction of the local government that are selected for Federal-aid funding through the transportation planning process in sections 134 and 135 of title 23, United States Code, on the condition that the responsibilities shall not include any responsibility assigned to a State under section 326 or 327 of that title.

   Inserted: (B) Written agreement.--An assignment and assumption of responsibility under subparagraph (A) shall require the written agreement of the Secretary, the local government, and the State in which the local government is located, in such form and including such information and terms as the Secretary may prescribe.

   Inserted: (C) Procedural, legal, and substantive requirements.--A local government selected for participation under the program shall assume responsibility under this section for compliance with all procedural and substantive requirements that would apply if that responsibility were carried out by the State, including requirements related to reporting, right-of-way acquisition, environment, engineering, civil rights, design and inspection, procurement, construction administration, financial administration, performance management, and all other applicable requirements, unless the local government or the Secretary determines that assumption of responsibility for 1 or more of the procedural or substantive requirements is not appropriate.

   Inserted: (D) Applicability.--Nothing in this section waives or modifies any requirements or

   Inserted: provisions applicable to Federal-aid programs or projects, including the apportionment of funds, suballocation of funds, and selection of projects.

   Inserted: (b) Participation.--

   Inserted: (1) Number of participating local governments.--The Secretary shall allow up to 5 local governments to participate in the program.

   Inserted: (2) Eligibility.--To be eligible for participation in the program, a local government shall--

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   Inserted: (A) have a population of 500,000 or more, according to the most recent available data from the Bureau of the Census;

   Inserted: (B) demonstrate to the satisfaction of the Secretary that the local government has the necessary organizational structure, agreements, processes, controls, and staff to ensure that project development and delivery meets all applicable Federal requirements; and

   Inserted: (C) certify that the local government has in place the necessary financial management systems and processes to carry out cost accounting, billing, certifications, improper payments review, recordkeeping, audits, and related requirements consistent with government-wide requirements described in sections 200.302 and 200.303 of title 2, Code of Federal Regulations (or successor regulations).

   Inserted: (3) Application process.--The Secretary shall establish application requirements for participation in the program.

   Inserted: (4) Selection criteria.--The Secretary may approve an application under this section if the Secretary determines the local government meets the requirements of this section and any other requirement that the Secretary may prescribe, including any requirement for a pre-audit associated with the financial management and internal controls of the local government, necessary to provide reasonable assurance that the recipient will comply with applicable Federal requirements.

   Inserted: (c) Oversight.--

   Inserted: (1) Written agreement.--A written agreement under this section shall--

   Inserted: (A) have an initial term of not more than 5 years; and

   Inserted: (B) require the local government to provide to the Secretary any information the Secretary considers necessary to ensure that the local government is carrying out the requirements of this section.

   Inserted: (2) Audit.--

   Inserted: (A) In general.--To ensure compliance by a local government participating in the program, the Secretary shall conduct annual audits during each year of the program.

   Inserted: (B) No limitations.--Subparagraph (A) does not limit the authority of the Secretary to carry out other oversight activities relating to the program or to projects or other activities carried out under the program.

   Inserted: (3) Report to congress.--The Secretary shall submit to Congress an annual report that describes the administration of the program, including results of the audits described in paragraph (2).

   Inserted: (4) Extension.--On request of a participating local government, the Secretary may extend the participation of the local government in the program for up to an additional 10 years through an extension of the initial written agreement, based on a review finding that the local government--

   Inserted: (A) met all requirements of the program; and

   Inserted: (B) ensured timely delivery of projects and proper fiscal control of Federal funds.

   Inserted: (d) Funding.--Funds for the projects for which local oversight has been approved shall be--

   Inserted: (1) deducted from the amounts apportioned for appropriate programs to the State in which the local government is located; and

   Inserted: (2) transferred to the local government.

   Inserted: (e) Administrative Expenses.--

   Inserted: (1) In general.--On October 1 of each fiscal year for the duration of the program, the Secretary may set aside up to $5,000,000 of the funds authorized to be appropriated under section 1001(a)(1) to carry out this section.

   Inserted: (2) Use of funds.--The Secretary shall use funds set aside under paragraph (1) for the Federal Highway Administration to provide oversight of the additional entities.

   Inserted: (f) Termination by Secretary.--The Secretary may terminate the participation of a local government in the program if--

   Inserted: (1) the Secretary determines that the local government is not adequately carrying out the responsibilities assumed by the local government under the program;

   Inserted: (2) the Secretary provides to the local government--

   Inserted: (A) notification of the determination of noncompliance; and

   Inserted: (B) a period of at least 30 days during which to take such corrective action as the Secretary determines is necessary to comply with the applicable written agreement; and

   Inserted: (3) the local government, after the notification provided under paragraph (2), fails to take satisfactory corrective action, as determined by the Secretary.

   Original wording

   On page 170, after line 24, insert the following:

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As printed