In this section, the following definitions apply:

(1) Alcoholic beverage.— The term “alcoholic beverage” has the meaning given the term in section 158(c).

(2) Motor vehicle.— The term “motor vehicle” means a vehicle driven or drawn by mechanical power and manufactured primarily for use on public highways, but does not include a vehicle operated exclusively on a rail or rails.

The term “open alcoholic beverage container” means any bottle, can, or other receptacle—

(A) that contains any amount of alcoholic beverage; and

(B) (i) that is open or has a broken seal; or (ii) the contents of which are partially removed.

(4) Passenger area.— The term “passenger area” shall have the meaning given the term by the Secretary by regulation.

For the purposes of this section, if a State has in effect a law that makes unlawful the possession of any open alcoholic beverage container by the driver (but not by a passenger)—

(1) In general.— For the purposes of this section, each State shall have in effect a law that prohibits the possession of any open alcoholic beverage container, or the consumption of any alcoholic beverage, in the passenger area of any motor vehicle (including possession or consumption by the driver of the vehicle) located on a public highway, or the right-of-way of a public highway, in the State.

For the purposes of this section, if a State has in effect a law that makes unlawful the possession of any open alcoholic beverage container by the driver (but not by a passenger)—

(A) in the passenger area of a motor vehicle designed, maintained, or used primarily for the transportation of persons for compensation; or

(B) in the living quarters of a house coach or house trailer,

On October 1, 2000, and October 1, 2001, if a State has not enacted or is not enforcing an open container law described in subsection (b), the Secretary shall transfer an amount equal to 1½ percent of the funds apportioned to the State on that date under each of paragraphs (1), (2), and (4) of section 104(b) to the apportionment of the State under section 402—

On October 1, 2000, and October 1, 2001, if a State has not enacted or is not enforcing an open container law described in subsection (b), the Secretary shall transfer an amount equal to 1½ percent of the funds apportioned to the State on that date under each of paragraphs (1), (2), and (4) of section 104(b) to the apportionment of the State under section 402—

(A) to be used for alcohol-impaired driving countermeasures; or

(B) to be directed to State and local law enforcement agencies for enforcement of laws prohibiting driving while intoxicated or driving under the influence and other related laws (including regulations), including the purchase of equipment, the training of officers, and the use of additional personnel for specific alcohol-impaired driving countermeasures, dedicated to enforcement of the laws (including regulations).

As soon as practicable after the date of receipt of a certification from a State under subparagraph (A), the Secretary shall—

(A) Reservation of funds.— On October 1, 2011, and each October 1 thereafter, if a State has not enacted or is not enforcing an open container law described in subsection (b), the Secretary shall reserve an amount equal to 2.5 percent of the funds to be apportioned to the State on that date under each of paragraphs (1) and (2) of section 104(b) until the State certifies to the Secretary the means by which the State will use those reserved funds in accordance with subparagraphs (A) and (B) of paragraph (1) and paragraph (3).

(B) Transfer of funds.—As soon as practicable after the date of receipt of a certification from a State under subparagraph (A), the Secretary shall— (i) transfer the reserved funds identified by the State for use as described in subparagraphs (A) and (B) of paragraph (1) to the apportionment of the State under section 402; and (ii) release the reserved funds identified by the State as described in paragraph (3).

A State may elect to use all or a portion of the funds reserved under paragraph (2) for activities eligible under section 148.

(A) In general.— A State may elect to use all or a portion of the funds reserved under paragraph (2) for activities eligible under section 148.

(B) State departments of transportation.— If the State makes an election under subparagraph (A), the funds shall be transferred to the department of transportation of the State, which shall be responsible for the administration of the funds.

(4) Federal share.— The Federal share of the cost of a project carried out with funds transferred under paragraph (1) or (2), or used under paragraph (3), shall be 100 percent.

The amount to be transferred or released under paragraph (2) may be derived from the following:

(A) The apportionment of the State under section 104(b)(1).

(B) The apportionment of the State under section 104(b)(2).

The amount of obligation authority referred to in subparagraph (A) shall be determined by multiplying—

(A) In general.— If the Secretary transfers under this subsection any funds to the apportionment of a State under section 402 for a fiscal year, the Secretary shall transfer an amount, determined under subparagraph (B), of obligation authority distributed for the fiscal year to the State for Federal-aid highways and highway safety construction programs for carrying out projects under section 402.

(B) Amount.—The amount of obligation authority referred to in subparagraph (A) shall be determined by multiplying— (i) the amount of funds transferred under subparagraph (A) to the apportionment of the State under section 402 for the fiscal year, by (ii) the ratio that— (I) the amount of obligation authority distributed for the fiscal year to the State for Federal-aid highways and highway safety construction programs, bears to (II) the total of the sums apportioned to the State for Federal-aid highways and highway safety construction programs (excluding sums not subject to any obligation limitation) for the fiscal year.

(7) Limitation on applicability of obligation limitation.— Notwithstanding any other provision of law, no limitation on the total of obligations for highway safety programs under section 402 shall apply to funds transferred under this subsection to the apportionment of a State under such section.

(Added Pub. L. 105–178, title I, § 1405(a), as added Pub. L. 105–206, title IX, § 9005(a), July 22, 1998, 112 Stat. 843; amended Pub. L. 109–59, title I, § 1401(a)(3)(C), Aug. 10, 2005, 119 Stat. 1225; Pub. L. 112–141, div. A, title I, § 1402, July 6, 2012, 126 Stat. 556; Pub. L. 114–94, div. A, title I, § 1446(a)(8), Dec. 4, 2015, 129 Stat. 1437.)