I

104TH CONGRESS

2D SESSION H. R. 3527

To provide financial assistance to Mexican border States for transportation

projects that are necessary to accommodate increased traffic resulting

from the implementation of the North American Free Trade Agreement.

IN THE HOUSE OF REPRESENTATIVES

MAY 23, 1996

Mr. KIM (for himself, Mr. BILBRAY, Mr. CUNNINGHAM, Mr. BONILLA, Mr.

HORN, Mrs. SEASTRAND, Mr. BONO, Mr. DREIER, Mr. CALVERT, Mr.

MCKEON, Mr. DOOLITTLE, and Mr. MOORHEAD) introduced the following

bill; which was referred to the Committee on Transportation and Infrastructure

A BILL

To provide financial assistance to Mexican border States

for transportation projects that are necessary to accommodate increased traffic resulting from the implementation of the North American Free Trade Agreement.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘NAFTA Infrastructure

5 Responsibility Act of 1996’’.

6 SEC. 2. FINDINGS.

7 Congress finds that—
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1 (1) the United States Customs Service collects

2 over $600,000,000 per year in duties, fees, excise

3 taxes, and fines from crossings of the border of the

4 United States and Mexico;

5 (2) although the United States Customs Service

6 has collected increased duties, merchandise fees, and

7 revenues from other commerce-related activities be8 cause of the ratification and implementation of the

9 North American Free Trade Agreement, these in10 creased revenues have not been accompanied by Fed11 eral funding for improving transportation facilities

12 along the border of the United States and Mexico to

13 ensure the free and safe flow of trade destined for

14 all States and regions of the United States;

15 (3) because of NAFTA, all 4 States along the

16 border of the United States and Mexico will require

17 significant investments in highway infrastructure ca18 pacity and motor carrier safety enforcement at a

19 time when such States face extreme difficulty in ob20 taining funds to maintain current highway condi21 tions;

22 (4) the full benefits of increased international

23 trade can be realized only if delays at the border of

24 the United States and Mexico are significantly re25 duced; and
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1 (5) the increased revenues described in para2 graph (2) should be used to provide Federal funding

3 for transportation improvements required to accom4 modate NAFTA-generated traffic, in an amount

5 above and beyond regular Federal transportation

6 funding apportionments, obligational authority, and

7 minimum allocation funds under title 23, United

8 States Code, the Intermodal Surface Transportation

9 Efficiency Act of 1991 (Public Law 102–240), and

10 other laws.

11 SEC. 3. DEFINITIONS.

12 In this Act, the following definitions apply:

13 (1) COMMERCIAL MOTOR VEHICLE.—The term

14 ‘‘commercial motor vehicle’’ means a motor vehicle

15 that is used in commerce to transport passengers or

16 property and has a gross vehicle weight rating of

17 26,001 or more pounds.

18 (2) MAJOR MEXICAN BORDER CROSSING FACIL19 ITY.—The term ‘‘major Mexican border crossing fa20 cility’’ means a Mexican border crossing facility used

21 by 150,000 or more northbound commercial motor

22 vehicles in a calendar year.

23 (3) MEXICAN BORDER CROSSING FACILITY.—

24 The term ‘‘Mexican border crossing facility’’ means
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1 a Federal facility located in the United States that

2 is used to enter the United States from Mexico.

3 (4) MEXICAN BORDER STATE.—The term

4 ‘‘Mexican border State’’ means California, Arizona,

5 New Mexico, and Texas.

6 (5) MINOR MEXICAN BORDER CROSSING FACIL7 ITY.—The term ‘‘minor Mexican border crossing fa8 cility’’ means a Mexican border crossing facility used

9 by less than 150,000 northbound commercial motor

10 vehicles in a calendar year.

11 (6) NAFTA.—The term ‘‘NAFTA’’ means the

12 North American Free Trade Agreement.

13 (7) SECRETARY.—The term ‘‘Secretary’’ means

14 the Secretary of Transportation.

15 SEC. 4. DIRECT FEDERAL ASSISTANCE FOR BORDER CON16 STRUCTION AND CONGESTION RELIEF.

17 (a) IN GENERAL.—The Secretary shall make grants

18 under subsections (b) and (c) to eligible recipients that

19 submit to the Secretary an application that demonstrates

20 need, due to increased traffic resulting from the implemen21 tation of NAFTA, for assistance in carrying out transpor22 tation projects that are necessary to relieve traffic conges23 tion and improve enforcement of motor carrier safety laws.

24 (b) GRANTS FOR CONNECTORS TO MEXICAN BORDER

25 CROSSING FACILITIES.—The Secretary shall make grants
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1 to Mexican border States and units of general purpose

2 local government in Mexican border States for the pur3 poses of—

4 (1) connecting the National Highway System

5 designated under section 103(b) of title 23, United

6 States Code, with Mexican border crossing facilities;

7 and

8 (2) upgrading connectors described in para9 graph (1) that are in existence as of the date of the

10 grant.

11 (c) GRANTS FOR COMMERCIAL MOTOR VEHICLE EN12 FORCEMENT FACILITIES.—The Secretary shall make

13 grants to Mexican border States to construct, operate, and

14 maintain commercial motor vehicle enforcement facilities.

15 (d) LOCATION OF PROJECTS.—All projects carried

16 out using amounts from grants made available under this

17 section shall be located in the United States and within

18 60 miles of the border of the United States and Mexico,

19 except as specifically approved by the Secretary.

20 (e) APPORTIONMENT OF AMOUNTS.—

21 (1) IN GENERAL.—The Secretary shall appor22 tion the amounts appropriated for a fiscal year for

23 making grants under this section among the Mexi24 can border States as follows:
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1 (A) 90 percent in the ratio which the num2 ber of major Mexican border crossing facilities

3 in each Mexican border State bears to the total

4 number of major Mexican border crossing facili5 ties in all Mexican border States, as determined

6 by the Secretary under paragraph (2).

7 (B) 10 percent in the ratio which the num8 ber of minor Mexican border crossing facilities

9 in each Mexican border State bears to the total

10 number of minor Mexican border crossing facili11 ties in all Mexican border States, as determined

12 by the Secretary under paragraph (2).

13 (2) DETERMINATIONS.—The Secretary shall

14 make each determination required by paragraph (1)

15 concerning the number of commercial motor vehicles

16 using a Mexican border crossing facility on an an17 nual basis using the most recent calendar year infor18 mation that can be obtained from the United States

19 Customs Service.

20 (f) COST SHARING.—A grant under this section shall

21 be used to pay the Federal share of the cost of a project.

22 The Federal share shall be 80 percent.

23 (g) AUTHORIZATION OF APPROPRIATIONS.—There is

24 authorized to be appropriated to carry out this section

25 $100,000,000 for each of fiscal years 1997 through 2002.
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1 SEC. 5. BORDER INFRASTRUCTURE INNOVATIVE FINANC2 ING.

3 (a) PURPOSES.—The purposes of this section are—

4 (1) to encourage the establishment and oper5 ation of State infrastructure banks in accordance

6 with section 350 of the National Highway System

7 Designation Act of 1995 (109 Stat. 618; 23 U.S.C.

8 101 note); and

9 (2) to advance transportation infrastructure

10 projects supporting international trade and com11 merce.

12 (b) FEDERAL LINE OF CREDIT.—Section 350 of the

13 National Highway System Designation Act of 1995 (109

14 Stat. 618; 23 U.S.C. 101 note) is amended—

15 (1) by redesignating subsection (l) as subsection

16 (m); and

17 (2) by inserting after subsection (k) the follow18 ing:

19 ‘‘(l) FEDERAL LINE OF CREDIT.—

20 ‘‘(1) IN GENERAL.—There is authorized to be

21 appropriated from the general fund of the Treasury

22 $98,000,000 to be used by the Secretary to enter

23 into agreements with Mexican border States that

24 have established infrastructure banks under this sec25 tion to make lines of credit available to the States.
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1 ‘‘(2) AMOUNT.—The line of credit available to

2 each participating Mexican border State shall be

3 equal to the product of—

4 ‘‘(A) the amount appropriated under para5 graph (1); and

6 ‘‘(B) the quotient obtained by dividing—

7 ‘‘(i) the contributions of the Mexican

8 border State to the Highway Trust Fund

9 during the preceding fiscal year; and

10 ‘‘(ii) the total contributions of all par11 ticipating Mexican border States with in12 frastructure banks to the Highway Trust

13 Fund during the preceding fiscal year.

14 ‘‘(3) USE OF LINE OF CREDIT.—The line of

15 credit under this subsection shall be available to pro16 vide Federal support in accordance with this sub17 section to a State infrastructure bank engaged in

18 providing credit enhancement for projects to con19 struct Federal-aid highways which will support a sig20 nificant amount of traffic resulting from NAFTA.

21 ‘‘(4) LIMITATIONS.—

22 ‘‘(A) IN GENERAL.—A line of credit under

23 this subsection may be drawn on only—

24 ‘‘(i) with respect to a completed

25 project described in paragraph (3) that is
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1 receiving credit enhancement through an

2 infrastructure bank;

3 ‘‘(ii) when the cash balance available

4 in the infrastructure bank is insufficient to

5 pay a claim for payment relating to the

6 project; and

7 ‘‘(iii) when all subsequent revenues of

8 the project have been pledged to the infra9 structure bank.

10 ‘‘(B) THIRD PARTY CREDITOR RIGHTS.—

11 No third party creditor of a public or private

12 entity carrying out a project eligible for assist13 ance from an infrastructure bank shall have

14 any right against the Federal Government with

15 respect to a line of credit under this subsection,

16 including any guarantee that the proceeds of a

17 line of credit will be available for the payment

18 of any particular cost of the public or private

19 entity that may be financed under this sub20 section.

21 ‘‘(5) INTEREST RATE AND REPAYMENT PE22 RIOD.—Any draw on a line of credit under this sub23 section shall—

24 ‘‘(A) accrue, beginning on the date the

25 draw is made, interest at a rate equal to the
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1 current (as of the date the draw is made) mar2 ket yield on outstanding, marketable obligations

3 of the United States with maturities of 30

4 years; and

5 ‘‘(B) shall be repaid within a period of not

6 more than 30 years.

7 ‘‘(6) RELATIONSHIP TO STATE APPORTION8 MENT.—Funds made available to States to carry out

9 this subsection shall be in addition to funds appor10 tioned to States under section 104 of title 23, Unit11 ed States Code.

12 ‘‘(7) MEXICAN BORDER STATE DEFINED.—The

13 term ‘Mexican border State’ means California, Ari14 zona, New Mexico, and Texas.’’.

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