State Transportation Financing Improvement Act of 1993

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``State Transportation Financing 
Improvement Act of 1993''.

SEC. 2. STATE TRANSPORTATION INVESTMENT LOAN FUNDS.

    Chapter 1 of title 23, United States Code, is amended by adding at 
the end the following new section:
``Sec. 161. State transportation investment loan funds
    ``(a) Establishment.--
            ``(1) In general.--Subject to the requirements of this 
        section and notwithstanding any other provision of law, a State 
        may establish a transportation revolving loan fund (referred to 
        in this section as a `transportation investment loan fund') for 
        making loans and providing other assistance to public or 
        private entities constructing or proposing to construct 
        projects or programs that are eligible to receive assistance 
        under section 133(b) (referred to in this section as a 
        `qualifying project').
            ``(2) Determination of deposit and spend-out rates.--For 
        each fiscal year, not later than 90 days after the date of 
        enactment of an appropriations Act that funds the majority of 
        programs of the Department of Transportation for the fiscal 
        year, the Secretary, in consultation with the Director of the 
        Office of Management and Budget and the Director of the 
        Congressional Budget Office, in accordance with recognized 
        scorekeeping conventions, shall establish a schedule for 
        deposits and payments made by or on behalf of a State with 
        respect to a transportation investment loan fund established 
        pursuant to paragraph (1) to meet the obligations of the State 
        referred to in paragraph (3).
            ``(3) Obligations and deposits.--A State may obligate for 
        deposit in a transportation investment loan fund, from funds 
        apportioned or allocated to the State under sections 104(b)(3) 
        and 157, an amount not to exceed the sum of--
                    ``(A) the discretionary 37.5 percent of the 
                remaining 80 percent of the surface transportation 
                program funds apportioned to the State under section 
                104(b)(3), as described in the matter following clause 
                (ii) of section 133(d)(3)(A); and
                    ``(B) the difference between the amount allocated 
                to the State pursuant to section 157(a)(4) and the 
                amount that is obligated to urbanized areas of the 
                State pursuant to section 133(d)(3).
            ``(4) Treatment of deposits.--Any amounts deposited by a 
        State pursuant to paragraph (3) shall be considered an 
        expenditure by the State.
            ``(5) Applicability of cash management requirements.--
        Sections 3335 and 6503 of title 31, United States Code, shall 
        not apply to this section.
    ``(b) State Matching Requirement.--
            ``(1) Additional deposit from non-federal sources.--At the 
        same time as a State deposits funds under subsection (a) into a 
        transportation investment loan fund, the State shall deposit 
        into the transportation investment loan fund from non-Federal 
        sources an additional amount of State matching funds equal to--
                    ``(A) the sum of--
                            ``(i) the amount deposited pursuant to 
                        subsection (a); and
                            ``(ii) an amount equal to the proportional 
                        non-Federal share that the State would 
                        otherwise pay on the basis of the amount, 
                        determined in accordance with section 120(b); 
                        multiplied by
                    ``(B) the percentage amount of the non-Federal 
                share for the State for a project carried out by the 
                State, determined in accordance with section 120(b).
            ``(2) Investment income.--All investment income earned on 
        amounts deposited into the transportation investment loan fund 
        shall be--
                    ``(A) credited to the transportation investment 
                loan fund; and
                    ``(B) available for use in providing loans and 
                other assistance from the transportation investment 
                loan fund.
    ``(c) Loans and Other Assistance.--
            ``(1) General authority.--From the amounts deposited into a 
        transportation investment loan fund established by a State 
        under this section, a State may loan to a public or private 
        entity an amount equal to all or part of the cost of 
        constructing a qualifying project, or provide other assistance 
        with respect to a qualifying project.
            ``(2) Compliance with the federal transit act, federal 
        environmental laws, and other requirements.--As a condition of 
        receiving a loan or other assistance under this section, the 
        public or private entity that receives the loan or other 
        assistance shall comply with the requirements of this title and 
        any other applicable Federal law (including any applicable 
        provision of the Federal Transit Act (49 U.S.C. App. 1601 et 
        seq.) or a Federal environmental law).
            ``(3) Subordination of debt.--The amount of a loan or other 
        assistance (if applicable) received for a qualifying project 
        under this subsection may be subordinated to any other debt 
        financing for the project or program, except that amount of the 
        loan or other assistance may not be subordinated to any other 
        loan made by a State or any other public entity to the entity 
        that receives the loan or other assistance.
            ``(4) Repayment.--The repayment of a loan or other 
        assistance (if applicable) made pursuant to this subsection 
        shall commence not later than 5 years after the qualifying 
        project that is the subject of the loan or other assistance has 
        opened to traffic.
            ``(5) Term of loan.--The term of a loan made pursuant to 
        this subsection shall not exceed 30 years from the date of 
        obligation of the loan.
            ``(6) Interest.--A loan made pursuant to this subsection 
        shall bear interest at a rate at or below market interest 
        rates, as determined by the State to make the qualifying 
        project that is the subject of the loan feasible.
            ``(7) Reuse of funds.--The repayment of a loan or other 
        assistance (if applicable) provided pursuant to this subsection 
        may be credited to the transportation investment loan fund or 
        obligated for any purpose for which the funds were available.
            ``(8) Procedures and guidelines.--Not later than 180 days 
        after the date of enactment of this section, the Secretary 
        shall establish procedures and guidelines for establishing, 
        operating, and making loans and providing other assistance from 
        a transportation investment loan fund.
    ``(d) Definition of Other Assistance.--As used in this section, the 
term `other assistance' includes any use of funds--
            ``(1) to refinance outstanding debt used to finance a 
        qualifying project if the State certifies that any savings that 
        result from the refinancing shall be used to carry out the 
        purposes of this title;
            ``(2) to guarantee or purchase insurance or other forms of 
        enhancement for borrower debt in order to improve credit market 
        access or to subsidize interest rates; and
            ``(3) to provide a loan guarantee for a loan made from the 
        transportation investment loan fund.
    ``(e) Other Uses of the Transportation Investment Loan Fund.--
            ``(1) Source of revenue or security for bonds.--
        Notwithstanding any other provision of this section, a State 
        may use funds from the transportation investment loan fund of 
        the State as security for bonds and notes issued to provide 
        capital in addition to the capital referred to in subsection 
        (a)(2) for the transportation investment loan fund.
            ``(2) Administrative costs.--For each fiscal year, a State 
        may use an amount not to exceed 2 percent of the Federal funds 
        deposited by the State into the transportation investment loan 
        fund of the State to provide for the reasonable costs of 
        administering the transportation investment loan fund.''.

SEC. 3. LOANS OF FEDERAL FUNDS FOR THE CONSTRUCTION OF NONTOLL 
              FACILITIES.

    Chapter 1 of title 23, United States Code, as amended by section 2, 
is further amended by adding at the end the following new section:
``Sec. 162. Loans of Federal funds for the construction of nontoll 
              facilities
    ``(a) In General.--
            ``(1) Loans.--A State may loan an amount equal to all or 
        part of the Federal share of a project or program to a public 
        or private entity constructing or proposing to construct a 
        nontoll facility if the repayment of the loan by the public or 
        private entity will be made from a dedicated revenue source, 
        including any excise tax, sales tax, motor vehicle use fees, 
        tax on real property, tax increment financing, or other 
        dedicated revenue sources.
            ``(2) Definition of qualifying project.--As used in this 
        section, the term `qualifying project' means a project that 
        meets the requirements of paragraph (1).
    ``(b) Compliance with the Federal Transit Act, Federal 
Environmental Laws, and Other Requirements.--As a condition of 
receiving a loan under this section, the public or private entity that 
receives the loan shall ensure that the qualifying project complies 
with the requirements of this title and any other applicable law 
(including any applicable provision of the Federal Transit Act (49 
U.S.C. App. 1601 et seq.) or a Federal environmental law).
    ``(c) Subordination of Debt.--The amount of a loan received for a 
project under this section may be subordinated to any other debt 
financing for the project, except that the amount of the loan may not 
be subordinated to the amount of any other loan made by the State or 
any other public entity to the entity constructing the project.
    ``(d) Obligation of Funds Loaned.--Funds loaned pursuant to this 
section may be obligated for qualifying projects.
    ``(e) Repayment.--The repayment of a loan made pursuant to this 
section shall commence not later than 5 years after the qualifying 
project that is the subject of the loan has opened to traffic.
    ``(f) Term of Loan.--The term of a loan made pursuant to this 
section shall not exceed 30 years from the date of obligation of the 
loan.
    ``(g) Interest.--A loan made pursuant to this section shall bear 
interest at a rate at or below market interest rates, as determined by 
the State to make the qualifying project that is the subject of the 
loan feasible.
    ``(h) Reuse of Funds.--Amounts repaid to a State from any loan made 
pursuant to this section may be obligated--
            ``(1) for any purpose for which the loaned funds were 
        available; and
            ``(2) for--
                    ``(A) the refinancing of outstanding debt used to 
                finance a qualifying project;
                    ``(B) the guarantee or purchase of insurance or 
                other forms of enhancement for borrower debt in order 
                to improve credit market access or to subsidize 
                interest rates; or
                    ``(C) the provision of a loan guarantee.
    ``(i) Guidelines.--Not later than 180 days after the date of 
enactment of this section, the Secretary shall establish procedures and 
guidelines for making loans pursuant to this section.''.

SEC. 4. TOLL ROADS.

    Paragraph (7) of section 129(a) of title 23, United States Code, is 
amended to read as follows:
            ``(7) Loans.--
                    ``(A) In general.--A State may loan an amount equal 
                to all or part of the Federal share of a toll project 
                under this section to a public or private entity 
                constructing or proposing to construct a toll project. 
                As used in this paragraph, the term `qualifying 
                project' means a project referred to in the preceding 
                sentence.
                    ``(B) Compliance with the federal transit act, 
                federal environmental laws, and other requirements.--As 
                a condition to receiving a loan under this paragraph, 
                the public or private entity that receives the loan 
                shall ensure that the qualifying project complies with 
                the requirements of this title and any other applicable 
                law (including any applicable provision of the Federal 
                Transit Act (49 U.S.C. App. 1601 et seq.) or a Federal 
                environmental law).
                    ``(C) Subordination of debt.--The amount of a loan 
                received for a qualifying project under this paragraph 
                may be subordinated to any other debt financing for the 
                project, except that the amount of the loan may not be 
                subordinated to the amount of any other loan made by 
                the State or any other public entity to the entity 
                constructing the project.
                    ``(D) Obligation of funds loaned.--Funds loaned 
                pursuant to this paragraph may be obligated for 
                qualifying projects.
                    ``(E) Repayment.--The repayment of a loan made 
                pursuant to this paragraph shall commence not later 
                than 5 years after the facility that is the subject of 
                the loan has opened to traffic.
                    ``(F) Term of loan.--The term of a loan to a 
                private or public entity shall not exceed 30 years from 
                the time that the loan was obligated.
                    ``(G) Interest.--A loan made pursuant to this 
                paragraph shall bear interest at a rate at or below 
                market interest rates, as determined by the State to 
                make the qualifying project that is the subject of the 
                loan feasible.
                    ``(H) Reuse of funds.--Amounts repaid to a State 
                from a loan made under this paragraph may be 
                obligated--
                            ``(i) for any purpose for which the loaned 
                        funds were available; and
                            ``(ii) for--
                                    ``(I) the refinancing of 
                                outstanding debt used to finance a 
                                qualifying project;
                                    ``(II) the guarantee or purchase of 
                                insurance or other forms of enhancement 
                                for borrower debt in order to improve 
                                credit market access or to subsidized 
                                interest rates; or
                                    ``(III) the provision of a loan 
                                guarantee.
                    ``(I) Guidelines.--Not later than 180 days after 
                the date of enactment of the State Transportation 
                Financing Improvement Act of 1993, the Secretary shall 
                establish procedures and guidelines for making loans 
                pursuant to this paragraph.''.

SEC. 5. CONFORMING AMENDMENT TO TABLE OF CONTENTS.

    The chapter analysis at the beginning of chapter 1 of title 23, 
United States Code, is amended by adding at the end the following new 
items:

``161. State transportation investment loan funds.
``162. Loans of Federal funds for the construction of nontoll 
                            facilities.''.

Summary: State Transportation Financing Improvement Act of 1993 - Amends Federal transportation law to authorize a State to establish a transportation revolving investment loan fund to make loans and provide other assistance to public or private entities constructing projects eligible to receive assistance under the surface transportation program. Requires the Secretary of Transportation to establish each fiscal year a schedule for deposits and payments made by or on behalf of a State with respect to the fund. Authorizes a State to use the fund as security for bonds or notes issued to provide capital for the fund. Authorizes a State to loan an amount equal to all or part of the Federal share of a project to a public or private entity constructing: (1) a nontoll facility if loan repayment will be made from a dedicated revenue source, including any excise tax, sales tax, motor vehicle use fees, tax on real property, tax increment financing, or other dedicated revenue sources. Or (2) a toll project. Requires the public or private entity, as a condition of receiving loans or other assistance, to comply with the requirements of this Act, the Federal Transit Act, and any Federal environmental laws.