Relating to highways; and declaring an emergency.

Directs Department of Transportation to establish local transportation program to provide state funding in exchange for federal surface transportation funding available to cities and counties. ] Directs Department of Transportation each year to allocate moneys to local governments and replace state moneys made available to local governments with federal surface transportation funding on dollar for dollar basis. Provides that moneys allocated to local governments must be spent on uses consistent with restrictions described in Oregon Constitution. Declares emergency, effective on passage.