A bill to condition the approval of Federal highway aid projects in a State on the establishment by that State of a system of identification and penalties for use in reserving parking spaces for motor vehicles used by handicapped individuals.

Prohibits the Secretary of Transportation from approving, at the end of a two year period, any Federal aid highway program in a State unless the State has: (1) established a form of identification to designate parking spaces reserved for physically handicapped individuals and which distinguishes motor vehicles used by such individuals; and (2) enacted legislation setting forth penalties for the use of such spaces by non-handicapped persons.