(a) In General.--Section 406 of title 23, United States Code, is amended to read as follows:
``Sec. 406. Safety belt performance grants
``(a) In General.--The Secretary shall make grants to States in accordance with the provisions of this section to encourage the enactment and enforcement of laws requiring the use of safety belts in passenger motor vehicles.
``(b) Grants for Enacting Primary Safety Belt Use Laws.--
``(1) In general.--The Secretary shall make a single grant to each State that either--
``(A) enacts for the first time after December 31, 2002, and has in effect and is enforcing a conforming primary safety belt use law for all passenger motor vehicles; or
``(B) in the case of a State that does not have such a primary safety belt use law, has after December 31, 2005, a State safety belt use rate of 85 percent or more for each of the 2 calendar years immediately preceding the fiscal year of a grant, as measured under criteria determined by the Secretary.
``(2) Amount.--The amount of a grant available to a State in fiscal year 2006 or in a subsequent fiscal year under paragraph (1) shall equal 475 percent of the amount apportioned to the State under section 402(c) for fiscal year 2003.
``(3) July 1 cut-off.--For the purpose of determining the eligibility of a State for a grant under paragraph (1)(A), a conforming primary safety belt use law enacted after June 30th of any year shall--
``(A) not be considered to have been enacted in the Federal fiscal year in which that June 30th falls; but
``(B) be considered as if it were enacted after October 1 of the next Federal fiscal year.
``(4) Shortfall.--If the total amount of grants provided for by this subsection for a fiscal year exceeds the amount of funds available for such grants for that fiscal year, the Secretary shall make grants under this subsection to States in the orderin which--
``(A) the conforming primary safety belt use law came into effect; or
``(B) the State's safety belt use rate was 85 percent or more for 2 consecutive calendar years (as measured under by criteria determined by the Secretary), whichever first occurs.
``(5) Catch-up grants.--The Secretary shall make a grant to any State eligible for a grant under this subsection that did not receive a grant for a fiscal year because of the application of paragraph (4), in the next fiscal year if the State's conforming primary safety belt use law remains in effect or its safety belt use rate is 85 percent or more for the 2 consecutive calendar years preceding such next fiscal year (subject to the condition in paragraph (4)).
``(c) Grants for Pre-2003 Laws.--
``(1) In general.--To the extent that amounts made available for grants under this section for any of fiscal years 2006 through 2009 exceed the total amount of grants to be awarded under subsection (b) for the fiscal year, including amounts to be awarded for catch-up grants under subsection (b)(5), the Secretary shall make a single grant to each State that enacted, has in effect, and is enforcing a conforming primary safety belt use law for all passenger motor vehicles that was in effect before January 1, 2003.
``(2) Amount; installments.--The amount of a grant available to a State under this subsection shall be equal to 200 percent of the amount of funds apportioned to the State under section 402(c) for fiscal year 2003. The Secretary may award the grant in annual installments.
``(d) Allocation of Unallocated Funds.--
``(1) Additional grants.--The Secretary shall make additional grants under this section of any amounts made available for grants under this section that, on July 1, 2009, have not been allocated to States under this section.
``(2) Allocation.--The additional grants made under this subsection shall be allocated among all States that, as of that date, have enacted, have in effect, and are enforcing conforming primary safety belt laws for all passenger motor vehicles. The allocations shall be made in accordance with the formula for apportioning funds among the States under section 402(c).
``(e) Use of Grant Funds.--�
``(1) In general.--Subject to paragraph (2), a State may use a grant under this section for any safety purpose under this title or for any project that corrects or improves a hazardous roadway location or feature or proactively addresses highway safety problems, including--
``(A) intersection improvements;
``(B) pavement and shoulder widening;
``(C) installation of rumble strips and other warning devices;
``(D) improving skid resistance;
``(E) improvements for pedestrian or bicyclist safety;
``(F) railway-highway crossing safety;
``(G) traffic calming;
``(H) the elimination of roadside obstacles;
``(I) improving highway signage and pavement marking;
``(J) installing priority control systems for emergency vehicles at signalized intersections;
``(K) installing traffic control or warning devices at locations with high accident potential;
``(L) safety-conscious planning; and
``(M) improving crash data collection and analysis.
``(2) Safety activity requirement.--Notwithstanding paragraph (1), the Secretary shall ensure that at least $1,000,000 of amounts received by States under this section are obligated for safety activities under this chapter.
``(3) Support activity.--The Secretary or his designee may engage in activities with States and State legislators toconsider proposals related to safety belt use laws.
``(f) Carry-Forward of Excess Funds.--If the amount available for grants under this section for any fiscal year exceeds the sum of the grants made under this section for that fiscal year, the excess amount and obligational authority shall be carried forward and made available for grants under this section in the succeeding fiscal year.
``(g) Federal Share.--The Federal share payable for grants under this section shall be 100 percent.
``(h) Passenger Motor Vehicle Defined.--In this section, the term `passenger motor vehicle' means--
``(1) a passenger car;
``(2) a pickup truck; and
``(3) a van, minivan, or sport utility vehicle with a gross vehicle weight rating of less than 10,000 pounds.''.
(b) Clerical Amendment.--The analysis for chapter 4 of such title is amended by striking the item relating to section 406 and inserting the following:
``406. Safety belt performance grants.''.