State Infrastructure Banks Act of 1995

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``State Infrastructure Banks Act of 
1995''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) there are new financial concepts for transportation 
        programs which cannot be accommodated within the structure of 
        traditional Federal reimbursement programs; and
            (2) States need more freedom in developing methods to 
        provide low-cost support for the public half of developing 
        public-private transportation partnerships.
    (b) Purpose.--The purpose of this Act is to provide States the 
option of using State infrastructure banks for financing transportation 
projects.

SEC. 3. DEFINITIONS.

    In this Act, the following definitions apply:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of Transportation.
            (2) State.--The term ``State'' has the meaning such term 
        has under section 401 of title 23, United States Code.
            (3) State infrastructure bank.--The term ``State 
        infrastructure bank'' means an infrastructure investment fund 
        created at the State or multi-State level to provide the State 
        with a variety of methods of financing transportation projects.

SEC. 4. STATE INFRASTRUCTURE BANKS.

    (a) Consent to Interstate Compacts.--Congress grants consent to the 
States to establish State infrastructure banks and to enter into 
interstate compacts establishing State infrastructure banks to promote 
regional or multi-State investment in transportation infrastructure and 
thereby improve economic productivity.
    (b) Assistance for Transportation Projects, Programs, and 
Activities.--A State or State infrastructure bank established under 
this Act may make loans, issue debt under the authority of the bank's 
State jurisdictions either jointly or separately as the bank and its 
jurisdictions determine and provide other assistance to public or 
private entities constructing, or proposing to construct or initiate, 
transportation projects, programs, or activities that are eligible to 
receive financial assistance under title 23, United States Code, or 
under the Intermodal Surface Transportation Efficiency Act of 1991.
    (c) Forms of Assistance.--A State infrastructure bank may loan or 
provide other assistance to a public or private entity in an amount 
equal to all or part of the cost of construction or capital cost of a 
qualifying transportation project. The amount of any loan or other 
assistance received for a qualifying project under this Act may be 
subordinated to any other debt financing for the project. For purposes 
of this subsection, the term ``other assistance'' includes any use of 
funds for the purpose of credit enhancements, use as a capital reserve 
for bond or debt instrument financing, bond or debt instrument 
financing issuance costs, bond or debt issuance financing insurance, 
subsidizing of interest rates, letters of credit, credit instruments, 
bond or debt financing instrument security, other forms of debt 
financing that relate to the qualifying project, and other leveraging 
tools approved by the Secretary.
    (d) State Infrastructure Bank Requirements.--In order to qualify as 
a State infrastructure bank under this section, each participating 
State shall--
            (1) ensure that the bank maintains on a continuing basis an 
        investment grade rating on its debt issuances or has a 
        sufficient level of bond or debt financing instrument insurance 
        to maintain the viability of the bank;
            (2) ensure that investment income generated by the funds 
        deposited into the bank will be--
                    (A) credited to the bank;
                    (B) available for use in providing loans and other 
                assistance to qualifying transportation projects, 
                programs, and activities from the bank; and
                    (C) invested in United States Treasury securities, 
                bank deposits, or such other financing instruments as 
                the Secretary may provide to earn interest to enhance 
                the leveraging of qualifying transportation projects, 
programs, and activities;
            (3) provide that the repayment of a loan or other 
        assistance to a State from any loan under this Act may be 
        credited to the bank or obligated for any purpose for which the 
        loaned funds were available under such title 23;
            (4) ensure that any loan from the bank will bear any 
        positive interest the bank determines appropriate to make the 
        qualifying project, program, or activity feasible;
            (5) ensure that repayment of any loan from the bank will 
        commence not later than 5 years after the facility has opened 
        to traffic or the project, program, or activity has been 
        completed;
            (6) ensure that the term for repaying any loan will not 
        exceed 30 years from the date of obligation of the loan;
            (7) limit any assignment, transfer, or loan to the bank to 
        not more than the amount which a State transfers under 
        subsection (f); and
            (8) require the bank to make an annual report to the 
        Secretary on its status no later than September 30 of each 
        year.
    (e) Secretarial Requirements.--In administering this Act, the 
Secretary shall--
            (1) ensure that Federal disbursements for capital reserves 
        shall be at a rate consistent with historic rates for the 
        Federal-aid highway program; and
            (2) specify procedures and guidelines for establishing, 
        operating, and making loans from a State infrastructure bank 
        under this Act.
    (f) Contributions From Title 23 Apportionments.--(1) 
Notwithstanding the provisions of title 23, United States Code, and the 
Intermodal Surface Transportation Efficiency Act of 1991, a State may 
transfer to a State infrastructure bank not to exceed 15 percent of 
Federal funds apportioned under sections 104(b)(1), 104(b)(3), and 
104(b)(5)(B) of such title and a corresponding amount of obligational 
authority. A State may not transfer funds that are suballocated under 
such title.
    (2) A State may disburse funds transferred under paragraph (1) to a 
State infrastructure bank at a rate that does not exceed the 
traditional rate of disbursement for the Federal-aid highway program.
    (g)  United States Not Obligated.--The deposit of Federal 
apportionments into a State infrastructure bank shall not be construed 
as a commitment, guarantee, or obligation on the part of the United 
States to any third party, nor shall any third party have any right 
against the United States for payment solely by virtue of the deposit. 
Furthermore, any security or debt financing instrument issued by a 
State infrastructure bank shall expressly state that the security or 
instrument does not constitute a commitment, guarantee, or obligation 
of the United States.
    (h) Management of Federal Funds.--Sections 3335 and 6503 of title 
31, United States Code, shall not apply to funds used as a capital 
reserve under this Act.
    (i) Program Administration.--For each fiscal year, a State may 
contribute to a State infrastructure bank an amount not to exceed 2 
percent of the Federal funds deposited into the bank by the State to 
provide for the reasonable costs of administering the bank.

Summary: State Infrastructure Banks Act of 1995 - Grants the consent of the Congress to the States to establish State infrastructure banks, and to enter into interstate compacts establishing such banks to promote regional or multi-State investment in transportation infrastructure and thereby improve economic activity. Authorizes a State or State infrastructure bank to make loans, issue debt, and provide other assistance to public and private entities constructing transportation projects, programs, or activities that are eligible to receive assistance under specified Federal provisions. Sets forth provisions regarding: (1) the forms of State infrastructure bank assistance, and (2) State infrastructure bank requirements.