Appendix E to Part 1200 - Participation by Political Subdivisions
23:1.0.2.13.1.9.1.1.37 : Appendix E
Appendix E to Part 1200 - Participation by Political Subdivisions
(a) Policy. To ensure compliance with the provisions of 23
U.S.C. 402(b)(1)(C) and 23 U.S.C. 402(h)(2), which require that at
least 40 percent or 95 percent of all Federal funds apportioned
under Section 402 to the State or the Secretary of Interior,
respectively, will be expended by political subdivisions of the
State, including Indian tribal governments, in carrying out local
highway safety programs, the NHTSA Approving Official will
determine if the political subdivisions had an active voice in the
initiation, development and implementation of the programs for
which funds apportioned under 23 U.S.C. 402 are expended.
(b) Terms.
Local participation refers to the minimum 40 percent or
95 percent (Indian Nations) that must be expended by or for the
benefit of political subdivisions.
Political subdivision includes Indian tribes, for purpose
and application to the apportionment to the Secretary of
Interior.
(c) Determining local share.
(1) In determining whether a State meets the local share
requirement in a fiscal year, NHTSA will apply the requirement
sequentially to each fiscal year's apportionments, treating all
apportionments made from a single fiscal year's authorizations as a
single entity for this purpose. Therefore, at least 40 percent of
each State's apportionments (or at least 95 percent of the
apportionment to the Secretary of Interior) from each year's
authorizations must be used in the highway safety programs of its
political subdivisions prior to the period when funds would
normally lapse. The local participation requirement is applicable
to the State's total federally funded safety program irrespective
of Standard designation or Agency responsibility.
(2) When Federal funds apportioned under 23 U.S.C. 402 are
expended by a political subdivision, such expenditures are clearly
part of the local share. Local highway safety-project-related
expenditures and associated indirect costs, which are reimbursable
to the grantee local governments, are classifiable as local share.
Illustrations of such expenditures are the costs incurred by a
local government in planning and administration of highway safety
project-related activities, such as occupant protection, traffic
records system improvements, emergency medical services, pedestrian
and bicycle safety activities, police traffic services, alcohol and
other drug countermeasures, motorcycle safety, and speed
control.
(3) When Federal funds apportioned under 23 U.S.C. 402 are
expended by a State agency for the benefit of a political
subdivision, such funds may be considered as part of the local
share, provided that the political subdivision has had an active
voice in the initiation, development, and implementation of the
programs for which such funds are expended. A State may not
arbitrarily ascribe State agency expenditures as “benefitting local
government.” Where political subdivisions have had an active voice
in the initiation, development, and implementation of a particular
program or activity, and a political subdivision which has not had
such active voice agrees in advance of implementation to accept the
benefits of the program, the Federal share of the cost of such
benefits may be credited toward meeting the local participation
requirement. Where no political subdivisions have had an active
voice in the initiation, development, and implementation of a
particular program, but a political subdivision requests the
benefits of the program as part of the local government's highway
safety program, the Federal share of the cost of such benefits may
be credited toward meeting the local participation requirement.
Evidence of consent and acceptance of the work, goods or services
on behalf of the local government must be established and
maintained on file by the State until all funds authorized for a
specific year are expended and audits completed.
(4) State agency expenditures which are generally not classified
as local are within such areas as vehicle inspection, vehicle
registration and driver licensing. However, where these areas
provide funding for services such as driver improvement tasks
administered by traffic courts, or where they furnish computer
support for local government requests for traffic record searches,
these expenditures are classifiable as benefitting local
programs.
(d) Waivers. While the local participation requirement may be
waived in whole or in part by the NHTSA Administrator, it is
expected that each State program will generate political
subdivision participation to the extent required by the Act so that
requests for waivers will be minimized. Where a waiver is
requested, however, it must be documented at least by a conclusive
showing of the absence of legal authority over highway safety
activities at the political subdivision levels of the State and
must recommend the appropriate percentage participation to be
applied in lieu of the local share.