402 State Match Requirements

U.S. Department of Transportation National Highway Traffic Safety Administration
Subject:	MATCHING RATES FOR STATE AND COMMUNITY HIGHWAY SAFETY PROGRAM

1.   PURPOSE. This Order establishes the matching rates for the State and Community Highway Safety Program.

2.   EFFECT ON OTHER DIRECTIVES. This Order supersedes NHTSA Order 462-6B, dated February 20, 1991, Subject: "Matching Rates for State and Community Highway Safety Program."

3.   AUTHORITY. Authority for this Order is cited in the following sections of Title 23 United States Codes:

a. Section 120(b), Federal Share Payable (as amended by Section 1021(a) of the Intermodal Surface Transportation Efficiency Act of 1991; P.L. 102-240; December 18, 1991).

b. Section 402 (d) , Highway Safety Programs (as amended by Section 20021(c)) of the Highway Safety Act of 1991; Title II of P.L. 102-240; December 18, 1991) .

4.   BASIC RATE. Section 120(b), as amended, provides that the Federal share payable shall not exceed 80 percent for obligations incurred on or after December 18, 1991, except for those States that elect to participate in the sliding scale rates discussed in Section 5, below. The Federal share payable shall be computed on the basis of total program costs reported on the Highway Safety Program Cost Summary (HS-217), with the exception of Planning and Administration (P&A) obligations which shall be matched 50% Federal/50% State or Local funds for costs attributable to the P&A functions.

The Federal share payable for the Virgin islands, Guam, American Samoa and the Northern Mariana Islands shall be 100 percent.

5.   SLIDING SCALE RATES. Special matching rates are developed in two categories to compensate grantee States equitably for the area of the States impacted by nontaxable Indian Lands, Public Domain Lands, National Forests, and National Parks and Monuments. These are known as "Sliding Scale Rates" which are individually discussed below, with rates provided in Attachment A (Tables No. 1 and 2). Except as provided in Section 4, the maximum Federal share cannot exceed 95 percentum.

a.   Section 120"(b)(i)" rates shown in Table No. 1 are applicable to fourteen States. The rates are based on the ratio of the area of nontaxable Indian Lands and Public Domain Lands (reserved and unreserved) exclusive of National Forests and National Parks and Monuments to the total area of the State.

b.   Section 120"(b)(2)" rates shown in Table No. 2 are available to the States that desire the increased Federal share payable in lieu of the basic share of 80 percentum. These rates are based on the ratio of the area of nontaxable Indian lands. Public Domain Lands (reserved and unreserved), National Forests and National Parks and Monuments to the total area of the State.

c. Application of the rates under Paragraph(b)(2) requires the execution of annual agreements by the State and NHTSA Regional Administrators as illustrated in Attachment B. By executing the agreement, the State is committed to the following:

(1) To use the difference between the State's elected matching share and the share that would otherwise be required solely for highway safety purposes;

(2) To describe the planned utilization of such "saved" funds in the State's annual Highway Safety Plan; and

(3) To report the expenditure of "saved" funds on an annual basis showing the Problem Areas to which the funds were applied.

d. The sliding scale rates will be republished periodically as amendments to Attachment A.

Barbara D. Kernan
Associate Administrator
for Administration

Attachment A
NHTSA Order 462-6C
November 30, 1993

SLIDING SCALE RATES OF FEDERAL-AID PARTICIPATION
IN PUBLIC LAND STATES - PARAGRAPH (b)(1)

Table No. 1 - Rates for Section 402

SLIDING SCALE RATES OF FEDERAL-AID
PARTICIPATION - PARAGRAPH (b)(2)

Table No.2 - Rates for Section 402

1/ The State of Delaware is not entitled to rates over 80% or 50% because the ratio of the areas of nontaxable Indian Lands, Public Domain Lands (reserved and unreserved), National Parks and Monuments to the total area of this State is negligible.

2/ 95.00% is the maximum Federal Share.

Attachment B
NHTSA Order 462-6C
November 30, 1993

AGREEMENT - SECTION 120(b)(2) OF TITLE 23
UNITED STATES CODE

This agreement between the State of ___________________________________, acting by and through its Governor's Representative for Highway Safety, and the National Highway Traffic Safety Administration of the U.S. Department of Transportation, shall take effect on _____________________ and extend through___________________ , the end of the first full fiscal year of the State.

Whereas the State of __________________ has elected to match Federal highway safety funds in accordance with paragraph (b) (2) of Section 120 (b) of Title 23, United States Code, as amended, and NHTSA Order 462-6C;

Therefore, the State of ____________________ hereby agrees to apply the difference between the State's share as provided in paragraph (b) (2) and what its share would be if it had elected to pay the share provided in paragraph(b)(1) of Section 120(b) of Title 23, U.S.C., solely for highway safety purpose other than paying its share of highway safety projects.

The State agrees to furnish to the National Highway Traffic Safety Administration annual expenditure reports annotated to show that the savings in the State's Federal aid matching share during the period have been applied solely to highway safety in fulfillment of the terms of this agreement.

Executed this ___________________ day of ______ 19 ______ .